[Federal Register Volume 60, Number 216 (Wednesday, November 8, 1995)]
[Rules and Regulations]
[Pages 56246-56248]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-27475]



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GENERAL SERVICES ADMINISTRATION

41 CFR Part 101-41

[FPMR Amendment G-110]
RIN 3090-AF53


Use of Cash To Procure Official Passenger Transportation Services

AGENCY: Federal Supply Service, GSA.

ACTION: Final rule.

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SUMMARY: This regulation amends the Federal Property Management 
Regulations (FPMR) to grant agency heads or their designated 
representatives authority to approve all cash purchases of passenger 
transportation services. Although agency heads or their designated 
representatives currently have permanent authority to approve emergency 
cash purchases, their authority to approve nonemergency cash purchases 
of transportation services in excess of $100 was temporary and expired 
on July 31, 1995 (see FPMR Temporary Regulation G-57, Supp. 1). This 
amendment gives agencies permanent authority to approve all cash 
purchases of passenger transportation services.

EFFECTIVE DATE: August 1, 1995.

FOR FURTHER INFORMATION CONTACT:
John W. Sandfort, Chief, Policy, Procedures, and Liaison Branch, Office 
of Transportation Audits (202-219-3164).

SUPPLEMENTARY INFORMATION: FPMR Temporary Regulation G-57, published in 
the Federal Register on July 26, 1993 (58 FR 39664), invited agency 
comments through December 31, 1993, concerning the revised cash policy. 
Comments were 

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received from one Federal agency which asked that GSA clarify the 
policy in Secs. 101-41.203-1 and 101-41.203-2(d) by indicating the 
limitations to be applied against a traveler for purchasing 
transportation tickets from other than a carrier or Travel Management 
Center (TMC) under GSA contract. This agency also suggested that the 
cash limit be raised from $100 to $300.
    The Federal Travel Regulation contains in 41 CFR Part 301-15 the 
general policy regarding use of travel agents and TMC's by Federal 
executive agencies and specifies in Sec. 301-3.4 when a one-time 
exception may be granted, the reimbursement amount allowed, and when 
reimbursement denial is appropriate. We believe incorporation of this 
policy by reference in Sec. 101-41.203-1 is sufficient and that 
verbatim repetition is not needed.
    Additionally, we are concerned that raising the cash limit would 
increase the likelihood of more travelers using cash to avoid use of 
contract fares, make audit of passenger transportation costs 
impracticable, and conflict with the Government's overall policy of 
reducing the use of cash. For these reasons, we have determined that it 
would not be prudent to raise the cash limit. Agencies should be 
mindful that a cash purchase which exceeds the established limit should 
be the occasional exception and not the standard.
    The General Services Administration (GSA) has determined that this 
rule is not a significant regulatory action for the purposes of 
Executive Order 12866.

Regulatory Flexibility Act

    Pursuant to the Regulatory Flexibility Act, it is determined that 
this rule will not have a significant economic impact on a substantial 
number of small entities. Therefore, no regulatory flexibility analysis 
has been prepared.
    The reporting forms required by this regulation are not subject to 
the provisions of Pub. L. 96-511, the Paperwork Reduction Act of 1980, 
and Subpart 201-45.6 of this title.

List of Subjects in 41 CFR Part 101-41

    Accounting, Air carriers, Claims, Maritime carriers, Passenger 
services, Railroads, Transportation.

    For the reasons set out in the preamble, 41 CFR Part 101-41 is 
amended as follows:

PART 101-41--TRANSPORTATION DOCUMENTATION AND AUDIT

    1. The authority citation for Part 101-41 continues to read as 
follows:

    Authority: 31 U.S.C. 3726 and 40 U.S.C. 486(c).

Subpart 101-41.2--Passenger Transportation Services Furnished for 
the Account of the United States

    2. Section 101-41.203-1 is amended by revising the heading and 
paragraph (a) to read as follows:


Sec. 101-41.203-1  Procurement from carriers.

    (a) All passenger transportation services shall be procured with a 
GTR, Government contractor-issued charge card, or centrally billed 
account unless otherwise provided in Sec. 101-41.203-2 of this subpart. 
Agency heads or their designees may specify which of these Government-
provided methods of payment, or combination thereof, travelers will use 
to procure official passenger transportation services. Such services, 
regardless of the procurement method specified by the agency, must be 
procured directly from either a carrier or a travel agent. A travel 
agent may be used only as prescribed in the Federal Travel Regulation 
(FTR), 41 CFR chapters 301-304 or applicable regulations of the 
Department of Defense (DOD).
* * * * *
    3. Section 101-41.203-2 is revised to read as follows:


Sec. 101-41.203-2  Use of cash.

    (a) A GTR or Government excess baggage authorization ticket (GEBAT) 
shall not be used to procure passenger transportation services costing 
$10 or less, exclusive of Federal transportation tax, and to pay air 
excess baggage charges of $15 or less for each leg of a trip (see 
Sec. 101-41.203-6), unless special circumstances justify their use. The 
contractor-issued charge card or centrally billed account shall be used 
for these purchases when practical. When not practical, use of cash may 
be authorized or approved. To procure passenger transportation services 
costing more than $10 but not more than $100, exclusive of Federal 
transportation tax, the GTR, Government contractor-issued charge card, 
or centrally billed account shall be used. Cash may be used for these 
purchases only when none of the other procurement methods is practical. 
For passenger transportation services costing more than $100, excluding 
Federal transportation tax, only a GTR, Government contractor-issued 
charge card, or centrally billed account may be used unless otherwise 
exempted in this subpart.
    (1) When the use of cash is authorized to purchase the services set 
forth in paragraph (a) of this section, cash payment may be made with a 
travel advance in accordance with provisions of the FTR (41 CFR 301-
10.3).
    (2) Any credit card, other than the Government contractor-issued 
charge card, and all travelers checks shall be considered the 
equivalent of cash and subject to the $100 limitation provided in 
paragraph (a) of this section.

(Note--To protect the integrity of the Government charge card 
program designed for payment of allowable travel and transportation 
expenses incurred in connection with official travel, travelers 
shall be discouraged from using personal credit cards.)

    (3) Procurement of passenger transportation services under the 
group or charter provisions of the FTR (41 CFR 301-3.4(b)(2)) is not 
subject to the provisions of this subpart.
    (4) Authorization under paragraph (b) of this section to use cash 
in excess of $100 should be obtained prior to travel. In the absence of 
advance written authorization or approval, passenger transportation 
services exceeding $100 shall be purchased in accordance with policies 
and procedures prescribed in applicable Government travel regulations. 
It is a traveler's responsibility to know that use of a GTR, Government 
contractor-issued charge card, or centrally billed account may be 
required to obtain certain discount fares and to comply with the 
mandatory provisions of the FTR governing the use of contract airline 
service. Cash shall not be used to circumvent the regulations governing 
airline contracts.
    (b) Cash purchases of transportation services in excess of $100 
shall be discouraged and each agency shall establish procedures to 
encourage Federal travelers to use a Government contractor-issued 
charge card, centrally billed account, or GTR instead of cash to 
purchase passenger transportation services. Agencies shall monitor and 
control cash purchases of transportation services in a manner that will 
ensure such purchases are kept to a minimum.
    (1) When a Federal traveler does not use a GTR, Government 
contractor-issued charge card, or centrally billed account, heads of 
agencies, or their designated representatives, may in limited instances 
authorize travelers to exceed the $100 limitation when procuring 
passenger transportation services.
    (i) Each agency shall establish guidelines for approval of cash 
purchases in excess of $100 and determine if the use of cash is due to:
    (A) emergency circumstances (where use of a GTR, Government 
contractor-issued charge card, or centrally billed account was not 
possible); or

[[Page 56248]]

    (B) agency failure to advise a new employee and/or invited or 
infrequent traveler of proper procedures for purchasing transportation 
services.
    (ii) If a cash purchase is determined to have been made under a 
nonemergency circumstance, reimbursement shall not exceed the cost 
which would have been properly chargeable to the Government if the 
transportation services had been procured using one of the Government-
provided methods of procurement. Should a Federal employee make cash 
purchases without just cause or deliberately attempt to circumvent use 
of GSA air or rail service programs for personal convenience or some 
other reason not consistent with sound travel management practices, the 
agency may, as provided in 31 U.S.C. 3702, send all documents related 
to the travel to the Comptroller General, General Accounting Office, 
Claims Section, Washington, DC 20548, for a decision on the traveler's 
right to reimbursement.
    (2) Delegation of authority for authorizing and approving the use 
of cash in excess of $100 for the procurement of transportation 
services shall be held to as high an administrative level as 
practicable to ensure adequate consideration and review of the 
circumstances. Any such delegation shall be made in writing and copies 
shall be retained to permit monitoring of the system. The agency shall 
make delegation of authority records available for examination by GSA 
auditors.
    (3) To justify the use of cash in excess of $100 when procuring 
passenger transportation services, both the agency head, or the 
designated representative, and the traveler shall certify on the travel 
voucher the necessity for such use.
    (4) After a traveler has been reimbursed for a cash purchase, 
copies of travel authorizations, ticket coupons, and any ticket refund 
applications, or SF's 1170, Redemption of Unused Tickets, shall be 
forwarded for audit to the General Services Administration, 
Transportation Audit Division (FWA), Attention: Code E, Washington, DC 
20405.
    (5) The agency shall maintain travel vouchers and make them 
available for site audit by GSA auditors. General Records Schedule 9, 
Travel and Transportation Records (see 36 CFR 1228.22), provides 
instructions for the disposal of travel vouchers.
    (c) GSA (FWA) will report to the appropriate military or civilian 
agency travel manager for appropriate action suspected travel 
management errors and/or misroutings which result in higher travel 
costs to the Government.
    (d) A traveler who uses cash to purchase individual passenger 
transportation services shall procure such services directly from the 
carrier or from a travel agent under GSA or DOD contract (see Sec. 101-
41.203-1), and shall account for those expenses on their travel 
vouchers, furnishing passenger coupons or other evidence as appropriate 
in support thereof. Moreover, travelers shall assign to the Government 
the right to recover any excess payments involving carriers' use of 
improper rates. That assignment must be preprinted or otherwise 
annotated on the travel voucher and shall be initialed by the traveler.
    (e) Travelers using cash to procure passenger transportation 
services shall be made aware by their employing agencies of the 
provisions of Sec. 101-41.209-4 concerning a carrier's liability for 
liquidated damages because of failure to provide confirmed reserved 
space. Also, travelers using cash shall adhere to the regulations of 
the General Accounting Office (4 CFR 52.2) regarding the use of U.S.-
flag vessels and air carriers (see Sec. 101-41.203-1(b)).

Appendix to Subchapter G [Amended]

    4. The appendix to subchapter G is amended by removing FPMR Temp. 
Reg. G-57 and G-57 Supp. 1.

    Dated: October 26, 1995.
Roger W. Johnson,
Administrator of General Services.
[FR Doc. 95-27475 Filed 11-7-95; 8:45 am]
BILLING CODE 6820-24-M