VA Travel: Better Budgeting and Stronger Controls Needed (Letter Report,
08/23/1999, GAO/GGD-99-137).

The Department of Veterans Affairs' (VA) total budget requests for
travel, as found in the President's budget submissions to Congress, were
formulated on the basis of the prior year's actual travel expenditures,
adjustments for inflation, and expected initiatives or program changes.
VA's travel budget requests have exceeded its actual travel expenditures
by millions of dollars in recent years. VA reprogrammed excess travel
funds, representing the difference between the amounts included for
travel in VA's appropriations accounts and expenditures--more than $61
million for fiscal years 1993 through 1998. VA spent the excess travel
money on general operating expenses, such as salaries and equipment. VA
is required to inform the Senate Appropriations Committee before
reprogramming more than $250,0000. VA did not inform the Committee of
the excess travel reprogrammings because it did not consider switching
excess travel funds to other object classes, in this instance, to
constitute reprogramming. The Comptroller General's internal control
standards require continuous supervision to ensure proper review and
approval of employees' activities, as well as separation of duties and
responsibilities in authorizing transactions. However, GAO found that
VA's limited open travel authorizations were being issued to many
employees without the required supervisory reviews to determine whether
they were frequent travelers. GAO also found that VA's policy on
delegated travel authority was being implemented without a system of
controls to compensate for the lack of separation of duties inherent in
self-authorization and approval of travel. At the 23 VA field
facilities, GAO found five officials who authorized their own travel and
approved their own travel vouchers that exceeded the applicable per-diem
allowances without any justification.

--------------------------- Indexing Terms -----------------------------

 REPORTNUM:  GGD-99-137
     TITLE:  VA Travel: Better Budgeting and Stronger Controls Needed
      DATE:  08/23/1999
   SUBJECT:  Travel
	     Internal controls
	     Reporting requirements
	     Funds management
	     Noncompliance
	     Federal employees
	     Travel allowances
	     Reprogramming of appropriated funds
IDENTIFIER:  VA Veterans Integrated Service Network

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    United States General Accounting Office GAO               Report
    to the Chairman, Subcommittee on Oversight and Investigations,
    Committee on Veterans' Affairs, House of Representatives August
    1999       VA TRAVEL Better Budgeting and Stronger Controls Needed
    GAO/GGD-99-137 United States General Accounting Office GAO
    Washington, D.C.  20548 General Government Division B-283221
    August 23, 1999 The Honorable Terry Everett Chairman, Subcommittee
    on Oversight and Investigations Committee on Veterans' Affairs
    House of Representatives Dear Mr. Chairman: This report responds
    to your request for information on travel-related issues at the
    Department of Veterans Affairs (VA).1  As agreed with your office,
    our specific objectives were to provide information on (1) how VA
    formulates its travel budget request; (2) whether VA's use of
    excess travel funds is in accordance with guidance from the Senate
    Appropriations Committee regarding the reprogramming of funds
    between programs, activities, or elements; and (3) whether VA has
    adequate internal controls over the authority it grants to certain
    employees to authorize their own travel and approve their own
    travel vouchers, as well as whether it has adequate control over
    employees who are issued limited open travel authorizations, which
    allow them to travel without additional authorization.  Your
    office asked that we address these issues out of concern about the
    accuracy of VA's travel budget request and the adequacy of VA's
    internal controls over travel.  As agreed, we focused our review
    on temporary duty travel by field employees. VA's total budget
    requests for travel, as contained in the President's budget
    Results in Brief    submissions to Congress, were comprised of
    estimates developed separately for six appropriations accounts and
    four revolving funds.  In formulating their travel budget
    requests, managers of these accounts and revolving funds reported
    that they generally considered the prior year's actual travel
    expenditures, adjustments for inflation, and expected initiatives
    or program changes.  VA budget officials said that the provision
    in VA's appropriations act limiting the department's travel
    expenditures to the amounts requested for travel in the
    President's budget submission for various appropriations accounts
    affected the way they formulated their travel budget requests.
    The officials also said that the limitation caused 1 For a
    February 11, 1999, House appropriations hearing on VA, we provided
    the subcommittee information about VA's statutory travel budget
    limitation (which limits the amount that VA may spend on travel to
    the estimates for travel contained in the President's budget
    submission to Congress), travel budget requests, and actual travel
    expenditures for fiscal years 1993 through 1999.  The data from
    that request are also provided in appendix I of this report. Page
    1
    GAO/GGD-99-137 VA Travel B-283221 them to formulate travel budget
    requests that were large enough to ensure that the legal
    limitations would not be exceeded. VA's travel budget requests
    have exceeded its actual travel expenditures by millions of
    dollars in recent years.  For the six appropriations accounts,
    VA's travel budget requests exceeded actual travel expenditures by
    about $28 million in 1996, over $11 million in 1997, and over $5
    million in fiscal year 1998.   VA's travel appropriations have
    also exceeded actual travel expenditures for these accounts by at
    least $9 million in each of the last 3 fiscal years. VA
    reprogrammed excess travel funds, representing the difference
    between the amounts included for travel in VA's appropriations
    accounts and travel expenditures-over $61 million in total for
    fiscal year 1993 through 1998.  VA spent the excess travel funds
    on general operating expenses, such as salaries and equipment.  A
    recurring directive in Senate Appropriations Committee reports
    directs VA to inform the committee prior to any reprogramming that
    exceeds $250,000 between programs, activities, or elements.  VA
    did not inform the Senate Appropriations Committee of the excess
    travel reprogrammings because it did not consider switching excess
    travel funds to other object classes, in this instance, to
    constitute reprogramming.  We believe that VA's switching of
    excess travel funds constitutes reprogramming that is covered by
    language in the committee's report.  However, this failure to
    inform the committee of reprogrammings above the $250,000
    threshold does not constitute a violation of law. The Comptroller
    General's internal control standards require, among other things,
    continuous supervision to ensure proper review and approval of
    employees' activities, as well as separation of duties and
    responsibilities in authorizing transactions.  Our review of
    travel files within 4 Veterans Integrated System Networks (VISNs)
    and 4 Veterans Benefits Administration (VBA) regional offices
    (representing 23 facilities) found that VA's limited open travel
    authorizations were being issued to many employees without the
    required supervisory review to determine whether they were
    frequent travelers.  Although neither the Federal Travel
    Regulation (FTR) nor VA's travel policy defines frequent traveler,
    VA's travel policy chief defined a frequent traveler in the
    context of limited open travel authorizations as one who travels
    an average of at least once per month.  Using this definition, we
    found that 220 of 239 employees (92 percent) at the 23 facilities
    with limited open travel authorizations were not frequent
    travelers.  We also found instances where administrative personnel
    were not obligating the funds associated with limited open Page 2
    GAO/GGD-99-137 VA Travel B-283221 travel authorizations in
    accordance with VA policy, resulting in a possible loss of control
    over expenditures.  In addition, we found some other practices
    with respect to the processing of travel vouchers that raised
    questions about compliance with VA's travel policy and the FTR. We
    also found that VA's policy on delegated travel authority was
    being implemented without a system of controls to compensate for
    the lack of separation of duties inherent in self-authorization
    and approval of travel. At the 23 VA field facilities, we found 5
    officials who authorized their own travel and approved their own
    travel vouchers that exceeded the applicable per-diem allowances
    without any justification, contrary to VA travel policy.
    Moreover, we found that no VA Central Office staff monitored the
    travel of field employees who had limited open travel
    authorizations or delegated travel authority, except for when
    their travel was the subject of complaints made to the
    department's Inspector General. This lack of internal controls
    over open travel authorizations and delegated travel authority
    increases the potential for abuse and has hindered VA's ability to
    prevent and detect noncompliance with travel requirements. We are
    making recommendations to VA to address the problems we
    identified. VA operates a nationwide program of healthcare,
    benefit services, and Background    national cemeteries for
    veterans.   The fiscal year 1998 budget authority for VA was $42.8
    billion.  VA's largest components are (1) the Veterans Health
    Administration (VHA), which provides healthcare services to 2.7
    million veterans and performs medical research and (2) VBA, which
    administers veterans' benefits in the form of disability
    compensation and pension income, educational support, vocational
    rehabilitation, and housing credit assistance.  To provide these
    services and administer benefits, VA staff travel to provide
    healthcare, meet with veterans' groups, receive training, visit
    departmental facilities, conduct research, and attend professional
    meetings. As of April 30, 1999, VA had 194,932 full-time
    employees; VHA had 176,536 full-time employees; and VBA had 11,231
    full-time employees.  In October 1995, VHA was reorganized into 22
    healthcare networks, or VISNs.  In connection with this
    reorganization, VHA headquarters (Central Office) in Washington,
    D.C., downsized its staff by more than 20 percent and
    decentralized much of its operational decisionmaking authority to
    the field.  VHA's 22 VISNs oversee 172 medical centers.  VBA has
    58 regional offices. Page 3
    GAO/GGD-99-137 VA Travel B-283221 Chapter 57 of title 5 of the
    U.S. Code authorizes the payment of travel and transportation
    expenses of government employees.  Under this authority, the
    General Services Administration (GSA) has issued the FTR to
    implement statutory requirements and executive branch policies for
    travel. In July 1998, GSA revised the FTR into a question-and-
    answer format.2 Under the revised FTR, agencies were given greater
    discretion to determine their travel policies and procedures.
    However, since the FTR was revised, VA has not amended its travel
    policy, dated February 28, 1995, with respect to the department's
    policies on employees authorizing and approving their own travel
    and on those who are issued limited open travel authorizations. VA
    has a travel policy office that disseminates travel policies to
    all facilities, but it has no central travel office that makes
    travel arrangements or processes travel departmentwide.  VA
    administers employee travel in a decentralized manner, and each
    field facility processes travel for employees working onsite.
    Some VA facilities have their own travel policies that supplement
    the department's travel policy. The primary forms for completing
    employee travel are travel authorizations and vouchers.   Under VA
    travel policy, travelers normally must complete travel
    authorizations prior to travel.  These documents must be
    authorized by "officials . . . cognizant of travel plans."  After
    the travel is completed, employees must submit vouchers
    documenting expenses incurred.  These vouchers are to be approved
    by "the traveler's supervisor who has knowledge of the facts
    involved in the travel."  In each VA field facility,
    administrative personnel prepare travel authorizations and process
    vouchers for their employees and other VA employees working at
    their facilities.3  According to a VA Central Office official,
    less than one-half of all VA offices use automated travel-
    processing systems, allowing travel authorizations and vouchers to
    be prepared and processed on computer. In reimbursing employee
    travel, VA follows rates established by GSA known as the per-diem
    allowance, which is a daily payment for lodging, meals, and
    related incidental expenses.4  Reimbursement for actual travel 2
    FTR, chapter 300, parts 1-3, previously 41 C.F.R. 301-304. 3 VA
    refers to other VA employees working at facilities as "tenants."
    Some VA facilities process travel vouchers for their tenants. 4
    GSA issues per-diem allowances for domestic travel and the
    Department of State issues per-diem allowances for foreign
    destinations. Page 4
    GAO/GGD-99-137 VA Travel B-283221 expenses up to 300 percent of
    per diem is also permitted under special circumstances with proper
    justification. To describe how VA formulates its travel budget
    requests, we asked Scope and      officials representing six
    appropriations accounts5 and four revolving Methodology    funds6
    with travel budgets to explain how they formulated their travel
    budget requests from fiscal year 1993 through 1999.  We also
    interviewed VHA and VBA budget officials, and reviewed OMB budget
    guidance. Because VA's travel appropriations are not specifically
    identified in the department's appropriations act, VA provided us
    the amounts for travel included in its appropriations accounts
    after appropriations were enacted, as well as actual travel
    expenditures.  We did not verify this information. To determine
    whether VA's use of excess travel funds was in accordance with the
    Senate Appropriations Committee's guidance regarding
    reprogramming, we reviewed VA appropriations statutes,
    congressional appropriations committee reports, reprogramming
    guidance, and decisions of the Comptroller General regarding
    reprogramming.  We also interviewed appropriations committee staff
    and VA budget and general counsel officials. To gain an
    understanding of VA's internal controls over temporary duty
    travel, we interviewed VA's travel policy chief and officials
    involved in preparing the department's internal controls reports
    and officials from VBA's Office of the Chief Financial Officer and
    VHA's Office of the Chief Network Officer.  We also interviewed
    GSA travel management policy officials and reviewed the FTR for
    temporary duty travel and travel system requirements reports
    issued by the Joint Financial Management Improvement Program
    (JFMIP).7  In addition, we reviewed VA's Federal Managers'
    Financial Integrity Act reports and the Office of Management and
    Budget's (OMB) and our guidance on internal control standards.
    Further, we reviewed our previous reports issued on travel and
    internal controls matters.  We also contacted VA OIG officials
    about their investigations of employee travel and reviewed related
    OIG reports. 5 The six appropriations accounts are VHA Medical
    Care; VHA Medical and Prosthetic Research; VHA Medical
    Administration and Miscellaneous Operating Expenses; General
    Operating Expenses, including VBA, the Office of General Counsel,
    Board of Veterans' Appeals, and Board of Contract Appeals;
    National Cemetery Administration; and the Office of Inspector
    General (OIG). 6 The four revolving funds are VHA Medical Care
    Cost Recovery (MCCR) Fund, Supply Fund, Canteen Service, and
    Franchise Fund. 7 JFMIP is a joint cooperative undertaking of the
    Office of Management and Budget, GAO, and the Office of Personnel
    Management to improve financial management in the government. Page
    5
    GAO/GGD-99-137 VA Travel B-283221 To determine whether VA has
    adequate internal controls over the authority it grants to certain
    officials to authorize and approve their own travel (delegated
    travel authority) and employees who are issued limited open travel
    authorizations, we reviewed the FTR and VA's travel policies on
    delegated travel authority and limited open travel authorizations.
    We reviewed travel files of officials who exercised their
    delegated travel authority and/or employees who had limited open
    travel authorizations at facilities within 4 VISNs, which included
    15 medical centers, and 4 VBA regional offices (representing 23 VA
    field facilities) to determine the adequacy of internal controls
    over these authorities.  The travel files we reviewed covered a
    16-month period during fiscal years 1998 and 1999 (through January
    31, 1999).  In reviewing the travel files of officials who
    exercised delegated travel authority, we compared their travel
    practices to VA's travel policies and the FTR. To assess internal
    controls over the issuance and usage of limited open travel
    authorizations, we collected data on the number of employees who
    were issued limited open travel authorizations and their frequency
    of travel.  We reviewed the frequency of travel by all employees
    with limited open travel authorizations at the locations included
    in our review, except for at one location where we selected a
    random sample of travelers.  We compared the issuance of limited
    open travel authorizations to VA's travel policy and the FTR.  In
    the instance when we found a conflict between VA travel policy and
    the FTR regarding the period of revalidating limited open travel
    authorizations, we used the FTR, which takes precedence in this
    instance. We reviewed the travel files of officials who may have
    exercised delegated travel authority and employees who were issued
    limited open travel authorizations for this 16-month period and
    interviewed travel and financial staff on site at VHA medical
    centers in Baltimore, MD; Bay Pines, FL; Dallas, TX; Loma Linda,
    CA; Long Beach, CA; Los Angeles, CA; Martinsburg, WV; San Diego,
    CA; and Tampa, FL; VISN executive offices in Linthicum, MD; Bay
    Pines, FL; Grand Prairie, TX; and Long Beach, CA; and VBA regional
    offices in Bay Pines, FL; Los Angeles, CA; Roanoke, VA; and Waco,
    TX.  At our request, six other VHA facilities that were part of
    the four VISNs we selected provided travel files for our review
    regarding officials who may have exercised delegated travel
    authority and data on the frequency of travel by employees with
    limited open travel authorizations.  These six facilities included
    VHA medical centers in Gainesville, FL; Lake City, FL; Las Vegas,
    NV; Miami, FL; San Juan, Puerto Rico; and West Palm Beach, FL.
    The sites included in our review were selected judgmentally to
    achieve geographic dispersion and to meet the Page 6
    GAO/GGD-99-137 VA Travel B-283221 subcommittee's request that we
    visit certain offices.  The results of our travel file reviews,
    both at the facilities we visited and from those sites that
    provided data at our request, are not projectable to the
    department. We also surveyed all of VHA's 22 VISN offices, which
    included 172 medical centers, 58 VBA regional offices, and the VHA
    and VBA Central Office to determine the extent to which limited
    open travel authorizations had been issued to employees during the
    16-month period.  We received a 100 percent response rate to our
    survey. We did our work at VA's Central Office in Washington,
    D.C., and its field facilities, which we visited from October 1998
    through June 1999, in accordance with generally accepted
    government auditing standards.  We provided a draft of this report
    to the Secretary of VA for review and comment.  We received
    written comments from VA's Assistant Secretary for Planning and
    Analysis that are reprinted in appendix II.  We discuss these
    comments in the report where appropriate and in the agency comment
    section at the end of this report. VA's total budget requests for
    travel, as contained in the President's budget VA Travel Budget
    submissions to Congress,8 were comprised of estimates developed
    Requests            separately for six appropriations accounts and
    four revolving funds.  In formulating their travel budget
    requests, managers of these accounts and revolving funds reported
    that they generally considered the prior year's actual travel
    expenditures, adjustments for inflation, and expected initiatives
    or workloads.  VA budget officials said that the provision of VA's
    appropriations act limiting the department's travel expenditures
    to the amounts requested for travel in the President's budget
    submissions affected the way they formulated their travel budget
    requests.  The officials also said that the limitation caused them
    to formulate travel budget requests that were large enough to
    ensure that the legal limitations would not be exceeded.9  VA's
    travel budget requests have exceeded the department's actual
    travel expenditures by millions of dollars in recent years.
    However, as travel expenditures have increased in recent years,
    the 8 Hereafter in this report, VA's total funding estimate for
    travel will be referred to as "VA's travel budget request." 9 For
    many years, the annual appropriations acts that contain VA's
    appropriations have included a general provision that limits the
    amounts VA and other agencies covered by the act can spend on
    travel expenses.  For example, the fiscal year 1998 Appropriations
    Act containing VA's appropriation, P. L. No. 105-65, 11 Stat.
    1344, 1381, provides that VA's travel expenditures may not exceed
    the amounts set forth in the budget requests submitted for the
    various appropriations accounts.  If actual appropriations
    exceeded the amount requested, expenditures may exceed the budget
    request by the same proportion.  The VA OIG is specifically exempt
    from the limitation.  VA's revolving funds are also not subject to
    the limitation because they do not receive direct appropriations.
    Page 7
    GAO/GGD-99-137 VA Travel B-283221 gap between VA's travel budget
    requests and actual travel expenditures has narrowed. VA's travel
    budget request was comprised of estimates prepared for six VA's
    Formulation of its      appropriations accounts:  (1) VHA Medical
    Care, (2) VHA Medical and Travel Budget Request        Prosthetic
    Research, (3) VHA Medical Administration and Miscellaneous
    Operating Expenses, (4) VA General Operating Expenses, including
    VBA, (5) National Cemetery Administration, and (6) OIG, and four
    revolving funds that do not receive direct appropriations: (1)
    VHA's Medical Care Cost Recovery Fund (MCCR), (2) Supply Fund, (3)
    Canteen Service, and (4) Franchise Fund.  At our request, managers
    of these accounts and revolving funds provided written
    explanations of how they formulate their travel budget requests.
    Generally, they reported that they mainly consider the prior
    year's actual travel expenditures, adjustments for inflation, and
    expected initiatives or program changes.  Representatives from
    these accounts and funds provided the following descriptions of
    how their travel budgets were prepared: *  VHA, which requested 81
    percent of VA's total travel budget request in fiscal year 1998,10
    reported that it considers projected inflation, historical
    obligation trends, and the impact of requested initiatives for its
    three appropriations accounts and one revolving fund.11  VHA also
    noted that VA budget policy guidance does not provide any specific
    instruction on preparation of travel budget requests.  In
    addition, VHA budget officials said that the provision of VA's
    appropriations act, which limits the department's travel
    expenditures to the amounts requested for travel in the
    President's budget submission for the various appropriations
    accounts, affected the way they formulated their travel budget
    requests.  The officials also said that the limitation caused them
    to formulate travel budget requests that were large enough to
    ensure that the legal limitations would not be exceeded. *  The
    Office of the Deputy Assistant Secretary for Budget reported that
    its formulation of the General Administration portion of the
    General Operating Expenses appropriation (excluding VBA) is based
    primarily on the prior year's travel budget request, plus
    adjustments for inflation.  VBA did not identify any specific
    method of formulating its travel budget 10 Excluding the revolving
    funds. 11 These are the Medical Care, Medical and Prosthetic
    Research, Medical Administration and Miscellaneous Operating
    Expenses accounts, and the MCCR revolving fund. VHA reported that
    the travel budget for MCCR, which was terminated in 1997, was
    based on estimated needs for managing and completing specific
    projects or initiatives. Page 8
    GAO/GGD-99-137 VA Travel B-283221 request but said it was based on
    the department's "call memorandum" for the internal budget.  The
    call memorandum requires travel estimates to be broken out by
    category of travel, such as conferences, training, and program
    travel, and supported with narrative justification. *  The
    National Cemetery Administration (NCA) said it considers recurring
    operational requirements and key management initiatives requiring
    travel funds, plus actual travel expenses from prior years. *  The
    OIG indicated that its travel budget request is influenced by many
    factors, including personnel strength, tactical and strategic
    plans, external demand for services, economic assumptions on cost,
    and historical experience.  OIG noted that formulating its travel
    budget is difficult because of unanticipated work that can result
    from hotline complaints or congressional requests. *  The Supply
    Fund's manager said that its travel budget is based primarily on
    the prior year's travel budget, plus adjustments for inflation and
    program initiatives. *  The Franchise Fund's manager reported that
    it considers the prior year's actual travel expenditures, plus
    current and future business and customer service needs. *  The
    Canteen Service's manager said the starting point for its travel
    budget is what was actually spent in the prior year, which may be
    adjusted for workload and training needs, as well as additional
    personnel. VA's travel budget requests have exceeded its actual
    travel expenditures Travel Budget Requests,       by millions of
    dollars in recent years.  Although VA's travel budget request
    Actual Expenditures, and      has averaged about $70 million
    annually since 1996,12 the department's Appropriations
    travel expenditures have increased from about $44 million in
    fiscal year 1996 to nearly $62 million in fiscal year 1998.  These
    increased travel expenditures have narrowed the difference between
    VA's travel budget request and actual travel expenditures.  VA's
    travel budget requests exceeded actual travel expenditures by
    about $28 million in 1996, over $11 million in 1997, and over $5
    million in fiscal year 1998.   VA's travel appropriations have
    also exceeded actual travel expenditures by at least $9 million in
    each of the last 3 fiscal years.  VA's budget requests,
    appropriations, and actual expenditures for travel from fiscal
    year 1993 through 1999 are contained in appendix I. 12 Excluding
    the revolving funds, which do not receive direct appropriations.
    Page 9
    GAO/GGD-99-137 VA Travel B-283221 In analyzing the most recent
    travel budget requests for individual VA appropriations accounts,
    the differences between travel budget requests and actual travel
    expenditures have been greater for VA's three VHA appropriations
    accounts (Medical Care, Medical and Prosthetic Research, and
    Medical Administration and Miscellaneous Operating Expenses)13
    than for VA's three other appropriations accounts (General
    Operating Expenses, including VBA; National Cemetery
    Administration, and OIG).  In fiscal year 1998, for example, the
    travel budget request for VHA's Medical Care account exceeded
    actual travel expenditures by $6.3 million, or 14 percent ($51.7
    million budget request versus actual travel expenditures of $45.4
    million).  Also in fiscal year 1998, VHA's travel budget request
    for Medical Administration and Miscellaneous Operating Expenses
    account exceeded actual travel expenditures by $139,000, or 18
    percent ($903,000 budget request versus actual travel expenditures
    of $764,000). By comparison to VHA's appropriations accounts, VA's
    General Operating Expenses account (including VBA) had a budget
    request that was about 6 percent or $641,000 less than actual
    travel expenditures in fiscal year 1998 ($10.7 million budget
    request versus actual travel expenditures of $11.3 million).14
    The National Cemetery Administration account had a budget request
    in fiscal year 1998 that was 7 percent or $42,000 more than it
    spent on travel ($625,000 budget request versus actual travel
    expenditures of $583,000). From fiscal year 1993 through 1998,
    managers of VA's appropriations VA's travel appropriations
    Reprogramming                 accounts switched (reprogrammed)
    over $61 million in excess travel funds have also exceeded actual
    Excess Travel Funds           to other object classes.15
    Reprogramming is the utilization of funds in an appropriation
    account for purposes other than those budgeted or projected at the
    time the appropriation was made (e.g., it is shifting funds from
    one object class to another within an appropriation.)16
    Therefore, VA's reprogrammed funds represented the difference
    between the amounts included for travel in VA's appropriations
    accounts and actual travel expenditures.  Tables 1 and 2 show the
    amount of excess travel 13 Since fiscal year 1993, VHA represented
    at least 67 percent of VA's travel budget requests.  Moreover,
    VHA's Medical Care account's share of VA's travel budget requests
    has increased from 60 percent in fiscal year 1993 to 77 percent in
    fiscal year 1998. 14 VA's General Operating Expenses account
    received an appropriation of $11.6 million in fiscal year 1998--
    $943,000 more than it had requested in its budget submission to
    Congress. 15 Object class codes identify the obligations of the
    federal government by the types of goods or services purchased and
    are a means of monitoring how agencies spend their money. 16 See
    unpublished Comptroller General Decision, B-278121, Nov. 7, 1997.
    Page 10
    GAO/GGD-99-137 VA Travel B-283221 funds reprogrammed by
    appropriation account in each year from fiscal year 1993 through
    1998 in nominal and constant dollars, respectively. Table 1: VA
    Excess Travel Funds Reprogrammed From Fiscal Years 1993 Through
    1998 (In nominal dollars) Accounts/Funds                  FY 1993
    FY 1994          FY 1995            FY 1996           FY 1997
    FY 1998              Total VHA Medical Care
    $944,000     $1,301,000        $4,350,000       $19,372,000
    $9,985,000         $9,197,000       $45,149,000 Medical &
    Prosthetic Research                       1,387,000      (24,000)a
    429,000         1,360,000            192,000            (88,000)a
    $3,256,000 Medical Administration and Miscellaneous Operating
    Expenses                         91,000        296,000
    (28,000)b        (140,000)b          (13,000)b            139,000
    $345,000 VHA subtotal:                   $2,422,000    $1,573,000
    $4,751,000       $20,592,000        $10,164,000         $9,248,000
    $48,750,000 General Operating Expenses (includes VBA)
    1,031,000     2,693,000          1,563,000         3,496,000
    1,437,000             302,000     $10,522,000 National Cemetery
    Admin.           31,000          30,000            18,000
    133,000             10,000              42,000         $264,000
    Office of Inspector General       439,000        787,000
    467,000           340,000          (156,000)c          (234,000)c
    $1,643,000 Total                           $3,923,000
    $5,083,000        $6,799,000       $24,561,000        $11,455,000
    $9,358,000       $61,179,000 aAlthough VA budget data provided
    indicated that $24,000 in fiscal year 1994 and $88,000 in fiscal
    year 1998 were reprogrammed into travel for Medical and Prosthetic
    Research, those amounts were available for obligation for 2-year
    periods and therefore did not exceed the statutory limitation.
    bVA's statutory limit on travel expenditures was not exceeded in
    this year because the budget submission for this account was
    larger than actual appropriations. cVA's OIG is exempt from the
    statutory limitation on travel expenditures. Source:  VA Budget
    Office and GAO calculations of reprogrammed funds. Table 2:  VA
    Excess Travel Funds Reprogrammed From Fiscal Year 1993 Through
    1998 (In constant 1999 dollars) Accounts/Funds                  FY
    1993       FY 1994          FY 1995            FY 1996
    FY 1997            FY 1998              Total VHA Medical Care
    $1,052,000    $1,416,000        $4,623,000       $20,200,000
    $10,220,000         $9,299,000       $46,810,000 Medical &
    Prosthetic Research                       1,546,000      (26,000)a
    456,000         1,418,000            197,000            (89,000)a
    $3,502,000 Medical Administration and Miscellaneous Operating
    Expenses                        101,000        322,000
    (30,000)b        (146,000)b          (13,000)b            141,000
    $375,000 VHA subtotal:                   $2,699,000    $1,712,000
    $5,049,000       $21,472,000        $10,404,000         $9,351,000
    $50,687,000 General Operating Expenses (includes VBA)
    1,149,000     2,930,000          1,661,000         3,645,000
    1,471,000             305,000     $11,161,000 National Cemetery
    Admin.           35,000          33,000            19,000
    139,000             10,000              42,000         $278,000
    Office of Inspector General       489,000        856,000
    496,000           355,000          (160,000)c          (237,000)c
    $1,799,000 Total                           $4,372,000
    $5,531,000        $7,225,000       $25,611,000        $11,725,000
    $9,461,000       $63,925,000 aAlthough VA budget data provided
    indicated that $26,000 in fiscal year 1994 and $89,000 in fiscal
    year 1998 were reprogrammed into travel for Medical and Prosthetic
    Research, those amounts were available for obligation for 2-year
    periods and therefore did not exceed the statutory limitation.
    bVA's statutory limit on travel expenditures was not exceeded in
    this year because the budget submission for this account was
    larger than actual appropriations. cVA's OIG is exempt from the
    statutory limitation on travel expenditures. Source:  VA Budget
    Office and GAO calculations of reprogrammed funds. Page 11
    GAO/GGD-99-137 VA Travel B-283221 As shown in tables 1 and 2,
    VHA's Medical Care account generally represented the largest share
    of reprogrammed funds, compared with other VA accounts that
    received appropriated funds.  From fiscal years 1993 through 1998,
    over $45 million in excess travel funds was reprogrammed from
    VHA's Medical Care account, or about 74 percent of the over $61
    million that all VA appropriations accounts reprogrammed during
    that 6-year period.  The next largest amount reprogrammed was over
    $10 million, or about 18 percent, from VA's General Operating
    Expenses account during the same 6-year period. Between fiscal
    year 1993 and 1999, the General Operating Expenses account
    experienced the largest difference between its travel budget
    request and actual travel expenditures in fiscal year 1996, when
    the General Operating Expenses travel budget request exceeded
    actual travel expenditures by more than $7 million, or 80 percent.
    According to VBA, which is included in the General Operating
    Expenses account, VA was funded through Continuing Resolutions
    during the first 6 months of fiscal year 1996 and travel was held
    to a minimum.  During fiscal year 1996, VHA's Medical Care account
    had a $19 million, or a 63 percent, difference between its travel
    budget request and actual expenditures.  VHA budget officials said
    this difference occurred because of the unknown impact of VHA's
    reorganization into VISNs and because of the government's
    temporary shutdown in 1996.   However, VHA's Medical Care travel
    budget request continued to exceed actual travel expenditures
    after fiscal year 1996, by nearly $10 million in fiscal year 1997
    and $6.3 million in fiscal year 1998. In commenting on the
    reprogramming of excess travel funds for the Medical Care account,
    VHA indicated that the issue should be viewed in the context of
    overall Medical Care obligations.  VHA noted, for example, that
    the $9.2 million it reprogrammed in 1998 represented only 0.05
    percent of total Medical Care obligations.  Further, VHA officials
    said they believed their managers should have the flexibility to
    determine how these funds should best be spent on providing
    healthcare for veterans. Excess travel funds in the VA accounts
    listed in tables 1 and 2 were reprogrammed into other object
    classes, where the funds were disbursed for expenses such as
    salaries and equipment.  VA officials said that specific uses or
    purchases with the excess travel funds could not be identified
    because (1) each account's spending plans for general operating
    expenses are not fixed and the money can be moved around between
    categories of spending; (2) spending needs change throughout the
    fiscal year, and changes in spending plans may not be attributable
    to excess travel funds; Page 12
    GAO/GGD-99-137 VA Travel B-283221 and (3) general operating
    expense accounts are very large, compared with the amount of
    excess travel funds. A recurring directive that appears in Senate
    Appropriations Committee reports directs VA to "notify the
    chairman of the Committee prior to each reprogramming of funds in
    excess of $250,000 between programs, activities, or elements . . .
    ."17  In commenting on a draft of this report, VA officials said
    that VA does not view switching excess travel funds to other
    object classes to be reprogramming that is covered by the Senate
    Committee report language; and, therefore, VA has not notified the
    committee when such switches occur. We do not agree with VA for
    several reasons.  First, as defined by the Glossary of Terms Used
    in the Federal Budget Process,18 reprogramming is the "[s]hifting
    of funds within an appropriation or fund account to use them for
    different purposes than that contemplated at the time of
    appropriation (for example, obligating budgetary resources for a
    different object class from the one originally planned)."  Second,
    although the language in the Senate committee reports directs VA
    to notify the committee of reprogramming of programs, activities,
    or elements exceeding $250,000, there is nothing in the committee
    report to indicate that the committee used such language in an
    attempt to modify the generally accepted definition of
    reprogramming set forth above, or otherwise to exclude
    reprogramming of funds from one object class to another that
    exceeded the $250,000 threshold.  Third, congressional concern
    about VA's travel and the way in which it uses those funds is
    evident from its long-standing inclusion of a provision in VA's
    annual appropriations acts that limits VA's travel expenditures to
    the amounts requested for travel in the President's budget
    submission. It should be noted that the committee report language
    regarding reprogramming, which directs the agency to notify the
    committee of reprogrammings above the $250,000 threshold, does not
    have the force and effect of law and is not legally binding on an
    agency.19  We also note that VA plans to reconfirm with the
    committee the activities for reprogramming notification as well as
    discuss an adjustment to the thresholds. 17 For example, see
    Senate Report 105-53, July 17, 1997, for the fiscal year 1998
    appropriation for VA. 18 U.S. General Accounting Office
    (GAO/AFMD-2.1.1, Jan. 1993) (Exposure Draft). 19 See Blackhawk
    Heating and Plumbing Co. v. United States, 622 F 2d 539,548 (Ct.
    Cl. 1980). Page 13
    GAO/GGD-99-137 VA Travel B-283221 VA's travel policy allows
    employees who are frequent travelers to be Internal Controls Over
    issued limited open travel authorizations, which permit them to
    travel Limited Open Travel              without preparing travel
    authorizations on a trip-by-trip basis.   Our review of travel
    files within four VISNs and four VBA regional offices indicated
    Authorizations and               that these facilities had issued
    limited open travel authorizations to Delegated Travel
    employees who were not frequent travelers.  Our review also
    revealed that Authority                        the frequency of
    employees' travel was not being reevaluated before reissuing the
    limited open authorizations, which violates VA travel policy. VA's
    travel policy also delegates authority to many of its top
    officials to authorize and approve their own travel.  We found
    that no VA Central Office officials monitored the travel files of
    field employees who had limited open travel authorizations or
    those who were delegated travel authority, except when the
    employees' travel was the subject of an investigation that
    resulted from allegations of wrongdoing made to the OIG.  This
    lack of review suggests internal control weaknesses that could
    hinder VA's ability to prevent or detect abuse or noncompliance
    with its travel policies. According to VA's travel policy, limited
    open travel authorizations20  may Limited Open Travel
    be issued to employees whose "duties require frequent travel of a
    Authorizations                   repetitive nature."21  VA's
    travel policy does not define "frequent travel," but the
    department's travel policy chief defined frequent travel in the
    context of limited open travel authorizations to be at least an
    average of one trip per month.22   The policy also states that "an
    employee named in a limited open authorization is permitted to
    perform temporary duty travel without further authorization under
    certain specified conditions, which 20 VA's travel policy also
    allows certain top officials to have unlimited open travel
    authorizations. Under the policy, an employee with an unlimited
    open travel authorization is permitted to "perform temporary duty
    travel without further authorization."  Unlimited open travel
    authorizations are restricted to top officials in VA's Central
    Office.  VA reported that three VHA Central Office top officials
    and three VBA Central Office top officials had unlimited open
    travel authorizations in fiscal year 1999. Officials who may use
    unlimited open travel authorizations include the Secretary and
    assistants; Deputy Secretary and assistants; Under Secretaries,
    their deputies and executive assistants; Assistant Secretaries;
    Director, National Cemetery Administration; Medical Inspector, and
    other key officials. According to VA's travel policy chief, "other
    key officials" include the General Counsel, Inspector General,
    Chairman of the Board of Veterans Appeals, and the Chairman of the
    Board of Contract Appeals. 21 The policy indicates that open
    authorizations will not be used for foreign travel, entitlement or
    permanent change of station travel, preemployment interview
    travel, or to attend national meetings, conferences, and
    conventions of national service organizations as representatives
    of VA. 22 Under the FTR before it was revised in July 1998,
    limited open travel authorizations could be issued to employees
    whose duties required "frequent repetitive travel."  The FTR
    contained no specific definition of frequent repetitive travel,
    and, according to GSA, it was incumbent upon agencies to determine
    what constituted frequent repetitive travel.  The term "frequent
    repetitive travel" was removed from the revised travel
    regulations. Page 14
    GAO/GGD-99-137 VA Travel B-283221 should include realistic
    limitations on purposes, geographic areas, trip duration, and
    costs."23 VA's travel policy requires that "all limited open
    authorizations must be reviewed at the beginning of each fiscal
    year, and, if it is determined that the authorization is still
    necessary, it will be revalidated by the designated official."
    VA's yearly revalidation requirement conflicted with the FTR,
    which, prior to its July 1998 revision, provided that limited open
    travel authorizations should be revalidated quarterly.24  VA's
    policy also did not indicate that limited open travel
    authorizations should specify the number of permissible trips, as
    was required under the FTR before July 1998. VA did not maintain
    data on the number of VA employees who were issued limited open
    travel authorizations.  However, we surveyed all VHA and VBA
    facilities, which reported that 986 VHA field employees and 981
    VBA field employees were issued limited open travel authorizations
    in fiscal year 1998.  VA reported that no Central Office VHA or
    VBA employees had limited open travel authorizations.  Responses
    to our survey also indicated that VA employees who were issued
    limited open travel authorizations were employed at grade levels
    ranging from General Service (GS)5 to executive-level officials.
    The limited open travel authorizations that we reviewed indicated
    that they were issued so that employees could perform the duties
    of their positions or were to be used by employees for specific
    purposes, such as making site visits, providing home-health care
    to patients, and conducting training.  Geographic limitations
    contained in the limited open travel authorizations restricted
    employees from traveling to areas within the VISN or region;
    particular cities, counties, or states; or the continental United
    States.   The authorized duration of trips ranged from 2 to 31
    days. 23 Before the FTR was revised in July 1998, under section
    301-1.102 (a)(2), agencies were instructed that a limited open
    authorization should include realistic limitations on purpose(s),
    geographic area(s), number of trips(s), trip duration, and costs.
    This requirement was removed from the revised regulations.
    However, the revised regulations in FTR section 301-71.103 provide
    that open authorizations should include an estimate of the travel
    costs over the period covered. 24 Although the FTR was revised in
    July 1998, VA is still following a 1995 travel policy that
    implemented the prior set of federal travel regulations.  Since
    1995, VA has issued revisions to the travel policy manual, but
    none related to delegated travel authority or limited open travel
    authorizations.  The revised FTR states that agencies must
    determine what internal policies and procedures must be
    established for travel authorizations (FTR section 301-71.108)
    consistent with the guidelines in the regulations.  Therefore,
    according to GSA, under the revised FTR, agencies have the
    discretion to determine if and when it will review and revalidate
    open travel authorizations.  Although the revised FTR does provide
    agencies with greater discretion in this regard, VA has not
    exercised this discretion by revising its travel policy regarding
    limited open travel authorizations. Page 15
    GAO/GGD-99-137 VA Travel B-283221 Of the 23 VA field facilities in
    our review,25 we found that 3 facilities issued limited open
    travel authorizations on a quarterly basis, 9 issued them yearly,
    and the remaining 11 facilities did not issue any limited open
    travel authorizations in fiscal year 1998.   The facilities that
    issued limited open travel authorizations on a quarterly basis
    limited travelers to spending between a range of $9.50 to $10,000
    per quarter, while those facilities that issued the limited open
    travel authorizations on a yearly basis limited travelers to
    spending from a range of not specifying any cost limits to $10,000
    per year. Our review of travel files from the 23 VA field
    facilities indicated that many employees with limited open travel
    authorizations were not frequent travelers.  VA's travel policy
    manual does not define "frequent travel," but we used the
    definition of frequent travel provided to us by VA's travel policy
    chief.  The travel policy chief defined frequent travel in the
    context of limited open travel authorizations as an average of at
    least one trip per month. The 23 VA field facilities in our review
    issued limited open travel authorizations to 296 employees in
    fiscal year 1998.  We collected data on the frequency of travel on
    23926 of the 296 employees during fiscal year 1998 and found that
    220 of the 239 employees (92 percent) traveled less than an
    average of once per month. Included in our review of the 239
    limited open travel authorizations were the following examples of
    limited open travel authorizations being issued to employees who
    were not frequent travelers in fiscal year 1998: *  At one VBA
    regional office, 65 of 67 employees with these authorizations
    traveled less than an average of once a month. *  At another VBA
    regional office, we reviewed a random sample of 15 of those 72
    employees' travel files and found that 14 of the 15 employees took
    2 or fewer trips during the fiscal year. *  At a medical center,
    all 26 employees with this authorization traveled less than an
    average of once a month.  Moreover, 17 of these 26 employees 25
    The 23 field facilities comprised the 4 VISNs, which included 15
    medical centers, and 4 VBA regional offices. 26 We collected data
    on a random sample of employees at one facility that had issued
    limited open travel authorizations to 72 employees.  At that
    facility, we reviewed the frequency of travel by every fifth
    employee. Page 16
    GAO/GGD-99-137 VA Travel B-283221 took no trips during that fiscal
    year. *  At another medical center, 23 of 25 employees with these
    authorizations traveled less than an average of once a month.
    Further, 16 of the 25 employees traveled 4 times or less during
    the fiscal year. *  At a third medical center, 31 of 32 employees
    took 3 or fewer trips during the fiscal year. VA officials at the
    facilities we visited where limited open travel authorizations
    were issued said the purpose of issuing them was to save time by
    avoiding the preparation of travel authorizations for each trip or
    to allow for travel on a moment's notice.  They said in the past,
    travel authorizations were prepared in a time-consuming manner
    using a typewriter and required making several carbon copies.
    Some officials acknowledged that certain employees were being
    issued limited open travel authorizations who were not frequent
    travelers.  The officials explained that some limited open travel
    authorizations continued to be issued to employees whose positions
    involved travel in the past, but no longer did.  They added that
    the practice of issuing the limited open travel authorizations had
    continued without reevaluating the employees' current travel
    requirements or the relative ease of preparing travel
    authorizations on a per-trip basis using an automated travel
    system. At VA facilities where few or no limited open travel
    authorizations were issued, officials said they discouraged using
    this type of authorization because (1) funds expended under the
    authorizations are difficult to track and (2) employees may not be
    knowledgeable about federal travel regulations and per-diem rates,
    which could result in violations of the FTR and claims for
    nonreimbursable expenses.  Other VA officials said their employees
    were not considered to be frequent travelers and did not ask to be
    issued limited open travel authorizations. Other Problems
    Associated With We also found the following examples of other
    problems associated with Limited Open Travel
    limited open travel authorizations, which violated VA travel
    policy: Authorizations                  *  An official at one VBA
    regional office said the office did not obligate all of the funds
    contained in the limited open travel authorizations.  Rather, the
    official said the office obligated the amount of money contained
    in its travel budget, which was a smaller amount than the sum of
    all of the amounts contained in the limited open travel
    authorizations.  Before its 1998 revision, the FTR required
    agencies to obligate travel cost estimates Page 17
    GAO/GGD-99-137 VA Travel B-283221 contained in open travel
    authorizations.27 Under the current FTR, travel authorizations are
    to "provide financial information necessary for budgetary
    planning."28  Although not stated explicitly in VA's travel policy
    manual, according to VA's travel policy chief and VBA's Finance
    Director, funds contained in limited open travel authorizations
    must be obligated when the authorizations are issued. *  One
    medical center allowed its tenant employees with limited open
    travel authorizations to exceed the amounts contained in their
    limited open travel authorizations, and the medical center had to
    obligate additional funds after the travel was taken. *  Another
    medical center allowed employees with limited open travel
    authorizations to redelegate their authority to other employees,
    which violates federal travel regulations.  Before the FTR's 1998
    revision, travel authorizations could be issued only to an
    employee and not to a position. The revised travel regulations
    state that agencies must determine what internal policies and
    procedures must be established for travel authorizations,
    including the circumstances under which different types of travel
    authorizations will be used.  However, the regulations also state
    that all travel authorizations must include the name of the
    employee authorized to travel.29 *  At 2 of the 23 VA facilities
    included in our review, limited open travel authorizations were
    issued for $350 or less per year.  Two other facilities issued
    limited open travel authorizations for less than $100 per quarter.
    This appeared to conflict with VA's travel policy requirement that
    limited open travel authorizations be issued to frequent
    travelers, given the costs of travel. *  Of the 23 VA facilities
    included in our review, 3 issued limited open travel
    authorizations that did not contain any monetary limitations; 6
    issued them without geographic limitations; 3 facilities issued
    limited open travel authorizations without specifying the trip
    duration; and none of the facilities issued limited open travel
    authorizations specifying the permissible number of trips.  These
    authorizations conflicted with VA's travel policy requirement that
    limited open travel authorizations contain realistic limitations
    on costs, geographic travel areas, and duration of trips. 27 FTR
    section 301-1.102(d). 28 FTR section 301-71.100 (c). 29 FTR
    section 301-71.103(a). Page 18
    GAO/GGD-99-137 VA Travel B-283221 The FTR before its July 1998
    revision required that limited open travel authorizations specify
    the permissible number of trips. *  In fiscal year 1998, 9 of the
    23 facilities in our review issued limited open travel
    authorizations yearly, rather than being reviewed and revalidated
    at least quarterly, as was required by the FTR before July 1998.30
    In this case, we applied the requirement in the FTR, rather than
    the VA's policy, since the FTR's more stringent requirement is
    controlling.  Under the revised FTR, agencies have the discretion
    to determine if and when it will review and revalidate open travel
    authorizations.  Therefore, currently, VA's travel policy
    regarding the annual review requirement is permissible. VA's
    travel policy delegates authority to many officials holding top
    Delegated Travel Authority      positions to approve their own
    travel authorizations prior to travel and to approve their own
    travel vouchers to claim reimbursement for expenses incurred.
    These officials include VA's field facility directors, such as the
    directors of VHA's 172 medical centers and 22 VISN offices, as
    well as VBA's 58 regional offices.  At our request, VA also
    provided data indicating that officials holding 100 Central Office
    positions have delegated travel authority.  Table 3 lists the VA
    positions with delegated travel authority. 30 FTR Section 301-
    1.102(a)(2). Page 19
    GAO/GGD-99-137 VA Travel B-283221 Table 3: VA Officials With
    Delegated    Title
    Salary levela Travel Authority                        Deputy
    Secretary                                     EX-II Chief of Staff
    SES-6 Under Secretaries                                    EX-III
    Under Secretaries' Deputies, VHA Assistant Under Secretaries, and
    VBA Associate Deputy Under Secretaries
    SES or GS-15 Assistant Secretaries
    EX-IV Deputy Assistant Secretaries                         SES 5-6
    Other Key Officialsb and their Deputies              EX-IV, SES 4-
    6, or GS-15 VHA and VBA Chief Office Directors, VBA Chief of Staff
    SES 4-6 VHA and VBA Service Directors                        GS
    14-15 VHA VISN Directors, NCA Area Directors, and their Deputies
    SES 4-5, GS 14-15 Veterans Canteen Service Director
    Own pay system; equivalent of GS 13-14 Regional Counsels
    GS-15 Field Facility Directorsc and Chief of Staff at VHA
    Facilities when designated by the Director
    SES 1-4 Field Facility Directors' Associates and Assistants
    GS 14-15 Note:  The Secretary also may authorize and approve
    his/her own travel. aEX is Executive Schedule.  SES is Senior
    Executive Service. bIncludes the General Counsel, Inspector
    General, Chairman of the Board of Veterans Appeals, and the
    Chairman of the Board of Contract Appeals. cIncludes directors of
    medical centers, regional offices, regional and insurance centers,
    automation center, finance center, domicilliaries, outpatient
    clinics, supply depots and the National Acquisition Center.
    Source:  VA travel policy office. VA does not maintain data on the
    number of top officials who actually authorize or approve their
    own travel.  Our review of travel files from 23 field facilities
    indicated that 12 of those facilities' directors approved their
    own travel.  The other 11 directors had their travel vouchers
    approved by other officials, such as their associate directors or
    operations staff. VA travel policy provides that travelers may
    spend up to 150 percent of the per-diem rate under special
    circumstances and that "procedures shall be established by each
    authorizing official to ensure that actual subsistence expense
    reimbursement . . . is properly administered to prevent abuse . .
    . " The policy also states that "an appropriate review of the
    justification for travel on an actual subsistence expense basis
    shall be made."  However, our review of travel files from 23
    facilities found 5 officials who approved their own travel
    vouchers making claims for actual expenses that Page 20
    GAO/GGD-99-137 VA Travel B-283221 exceeded per-diem allowances
    without providing any justification.31  These vouchers only listed
    the actual expenses claimed and did not justify or explain the
    circumstances for exceeding per diem.  We found no written
    procedures in place at these facilities to ensure that actual
    subsistence expense reimbursement was properly administered.
    Further, although the claims were processed for reimbursement by
    travel clerks, the vouchers were not reviewed by the travelers'
    supervisors. An amendment to VA's travel policy, dated August 7,
    1997, allows authorization and approval of up to 300 percent of
    the per-diem rate within the continental United States on an
    actual subsistence basis and may only be used when "special or
    unusual circumstances result in an extreme increase in subsistence
    costs for a temporary period."  The policy also states that
    amounts exceeding 150 percent of per diem "shall not be authorized
    or approved without technical advice from the travel policy
    section." However, of the four VISN Directors' travel files we
    reviewed, we found that two VISN Directors exceeded 150 percent of
    per diem in lodging without receiving approval from VA's travel
    policy section, as required. One VISN Director, who approved his
    own travel vouchers, claimed hotel expenses of $260 per night in
    Washington, D.C., in June 1998, when the lodging allowance was
    $126; and $191 per night in New Orleans in October 1998, when the
    lodging allowance was $88.32  This VISN Director's travel vouchers
    did not provide any explanation for incurring expenses over the
    per-diem allowance.  Another VISN Director who did not approve his
    own travel voucher, claimed a hotel expense of $174 per night in
    New Orleans in October 1998, when the lodging allowance was $88.33
    During an interview with VA's travel policy chief, we were told
    that field facilities must make their requests to exceed 150
    percent of per diem to her office in writing and that a file was
    maintained of these requests.  We reviewed the travel policy
    office's files regarding requests to exceed 150 percent of per
    diem and found only four such requests during fiscal years 1998
    and 1999, and none of the requests for approval to exceed 150
    percent of per diem were from the two VISN Directors whom we found
    had exceeded 150 percent of per diem. 31 These officials also
    signed their own travel authorizations for these trips. 32 This
    VISN Director took 30 trips in fiscal year 1998 and 9 in fiscal
    year 1999 (through January 31, 1999). 33 This VISN Director took
    18 trips in fiscal year 1998 and 8 in fiscal year 1999 (through
    January 31, 1999). Page 21
    GAO/GGD-99-137 VA Travel B-283221 Further, we found that another
    VISN Director had issued a blanket temporary authorization for all
    employees of that VISN traveling to a particular county to incur
    lodging expenses up to 200 percent of the lodging allowance for
    that county.  This action was taken in response to action by GSA
    to lower the lodging allowance in that county.34   The travel
    policy section's files of requests to exceed 150 percent of per
    diem did not contain a request from this VISN regarding this
    matter.  VA's travel policy chief said this VISN Director should
    have sought approval from the travel policy section regarding this
    temporary blanket authorization. The Federal Managers' Financial
    Integrity Act (FMFIA) of 198235 requires Internal Controls
    agencies to establish internal accounting and administrative
    controls in accordance with standards prescribed by the
    Comptroller General and evaluate these controls in accordance with
    guidelines issued by OMB.  The act also requires that (1) the
    Comptroller General issue standards for federal agencies internal
    accounting and administrative control systems and (2) the Director
    of OMB issue guidelines for agencies to use in evaluating these
    systems. In 1982, OMB issued these guidelines in Circular A-123
    (updated in 1995), which indicated, among other things, that
    agency managers should continuously monitor and improve the
    effectiveness of management controls.  According to VA internal
    control staff, travel has never been reported as a material
    internal control weakness under FMFIA, and no VA staff offices or
    components have done a systematic review of internal controls over
    travel.  Further, OMB issued Circular A-127,36 which requires
    federal agencies to conduct annual studies of their automated
    information systems to identify material internal control
    weaknesses.  We found that VA used at least three different
    automated systems37 to process employee travel, but it had not
    conducted annual studies of these systems to detect possible
    weaknesses. In 1983, the Comptroller General issued standards for
    internal controls in the federal government that contained the
    criteria we used to assess VA's internal controls over delegated
    travel authority and limited open travel 34 The blanket
    authorization was issued for 4 months.  GSA reconsidered and
    increased the lodging allowance for that county. 35 P.L. 97-255.
    36 OMB Circular No. A-127, Revised July 23, 1993. 37 These systems
    included PC Travel Enterprise, developed by VA; Travel Manager,
    developed by GSA; and PerDiemAzing, developed by a private
    contractor.  One of the VA facilities we visited for our review
    also had developed its own automated travel system. Page 22
    GAO/GGD-99-137 VA Travel B-283221 authorizations.  Under the
    Comptroller General's internal control standards,38 separation of
    duties is a key internal control that applies to employee travel.
    These standards require that key duties and responsibilities in
    authorizing, processing, recording, and reviewing transactions
    should be separated among individuals.  To reduce the risk of
    error, waste, or wrongful acts, or to reduce the risk of them
    going undetected, no one individual should control all key aspects
    of a transaction.  Rather, duties and responsibilities should be
    assigned systematically to a number of different individuals to
    ensure that effective checks and balances exist.  Similarly,
    JFMIP's document entitled "Travel System Requirements" also
    established a mandatory requirement that agencies' travel systems
    maintain adequate separation of duties.39  Because VA operates in
    a decentralized environment, it has delegated management of
    internal controls to the Administrations (e.g., VHA and VBA, and
    staff offices).  In this regard, VHA and VBA are responsible for
    ensuring that their field facilities adhere to VA travel policy.
    VA's travel policy provides for many of its top officials to be
    delegated authority to authorize and approve their own travel.  We
    found that this policy was being implemented in the field without
    compensating controls, which increases the likelihood that errors
    and abuses may occur and not be detected.   Our review determined
    that no VA Central Office staff, including VHA and VBA Central
    Office staff, monitored the travel of field employees who had
    limited open travel authorizations or delegated travel authority,
    except when their travel was the subject of complaints made to the
    OIG.  An OIG official said that the OIG previously conducted
    audits of VA field facilities, including travel, but that the site
    audits ceased about 10 years ago.40  However, we believe that
    compensating internal controls, such as periodically checking the
    travel vouchers of officials who approve their own travel with an
    oversight staff could compensate for the lack of separation of
    duties inherent in VA's delegated travel policy. The Comptroller
    General's internal control standards also state that qualified and
    continuous supervision is to be provided to ensure that 38
    Although these standards remain conceptually sound and are used
    throughout the federal government, they are being updated and
    enhanced to recognize recent internal control evaluation guidance
    developed by the private sector with assistance from us and other
    as well as to give greater recognition to the increasing use of
    information technology. 39 Mandatory requirements are based on
    federal laws and regulations.  Agencies heads evaluate their
    systems against these requirements to determine compliance with
    system requirements under FMFIA. 40 An OIG official said that the
    OIG has conducted reviews of Central Office senior officials'
    travel as part of the Financial Statement Audit.  These reviews
    were of a sample of Central Office senior officials' travel. Page
    23
    GAO/GGD-99-137 VA Travel B-283221 internal control objectives are
    achieved.  Assignment, review, and approval of a staff's work
    should result in the proper processing of transactions and events,
    including (1) following approved procedures and requirements; (2)
    detecting and eliminating errors, misunderstandings, and improper
    practices; and (3) discouraging wrongful acts from occurring or
    from recurring.  VA's travel policy also requires that limited
    open travel authorizations be reviewed at the beginning of each
    fiscal year, and, if it is determined that the authorizations are
    still necessary, revalidated by the designated official. As stated
    earlier in this report, VA's travel policy, which requires that
    limited open travel authorizations be revalidated annually,
    conflicted with the FTR, which required a quarterly revalidation
    prior to its revision in July 1998.  Although 12 of the 23
    facilities in our review issued limited open travel authorizations
    in fiscal year 1998, only 3 of the 12 issued them quarterly; this
    conflict between VA's travel policy and the FTR may explain why 9
    other facilities in our review issued these authorizations
    annually. However, regardless of whether the limited open travel
    authorizations were issued quarterly or annually, we found that
    limited open travel authorizations were being reissued routinely
    without periodic supervisory reevaluation of whether the employees
    were frequent travelers.  For example, at one medical center, we
    found that 31 of the 32 employees who were issued limited open
    travel authorizations had taken 3 or fewer trips in fiscal year
    1998. We found one VBA regional office had its own travel policy
    that appeared to contain opportunities for implementing
    supervisory internal controls over the use of limited open travel
    authorizations both before and after the travel occurred.
    According to the policy, employees with limited open travel
    authorizations were required to submit itineraries to their
    supervisors prior to travel.  The policy further required that
    those itineraries, the limited open travel authorizations, and
    approved travel vouchers must be maintained for 2 years.
    According to the policy, "the documents will be reviewed
    periodically to satisfy the requirements for internal controls and
    related systematic analyses."41 Other Travel Policy Compliance
    During the course of review regarding internal controls over VA's
    Issues                            delegated travel policy and the
    issuance of limited open travel authorizations, we found some
    other practices that raised questions about compliance with the
    department's travel policy and the FTR: 41 This office had not
    issued limited open travel authorizations to any of its employees
    in recent years, so we were unable to observe how this policy was
    being implemented. Page 24
    GAO/GGD-99-137 VA Travel B-283221 Vouchers contained improper
    signatures for the traveler and the approving official or were not
    approved for payment by a certifying officer.  They included the
    following: *  At one VBA facility, an assistant to the regional
    director (a GS-13) was signing as the traveler on the director's
    travel vouchers.  Federal travel regulations require the traveler
    to affirm by signature or initials that the voucher is correct.42
*  At a medical center, we observed that fiscal staff, rather than
    the traveler's supervisors, were signing travel vouchers as the
    approving officials.  VA travel policy requires employee travel
    vouchers to be "examined and approved by the employee's supervisor
    having knowledge of the facts involved in the travel."43 *
    Another medical center was using an automated travel processing
    system that did not generate travel vouchers that included space
    for approval by a certifying officer, and the vouchers were not
    signed by a certifying official.  However, under VA travel policy,
    a certifying officer should be responsible for reviewing vouchers
    before payment is made. VA's travel budget requests have
    substantially exceeded its actual travel Conclusions
    expenditures in recent years.  Travel budget requests for VHA's
    Medical Care account, in particular, do not appear to be realistic
    estimates of travel expenditures.  We recognize that the
    appropriations provisions that limit VA's travel expenditures to
    the amounts set forth in the budget requests may have caused VA to
    overstate its annual travel budget requests.  We also recognize
    that OMB does not provide any specific guidance on the formulation
    of travel budget requests.  However, we believe that the
    difference between VA's travel budget requests and actual travel
    expenditures in recent years, particularly in VA's Medical Care
    appropriations account, has been larger than appears reasonable to
    avoid exceeding the ceiling on travel expenditures. By
    reprogramming millions of dollars in excess travel funds in recent
    years without notifying the Senate Appropriations Committee, VA
    has not 42 41 C.F.R. part 301-52.3. 43 VA policy manual, chapter
    2, paragraph 18 (b)(1). Page 25
    GAO/GGD-99-137 VA Travel B-283221 adhered to the guidance from
    that committee directing VA to notify it prior to any
    reprogramming that exceeds $250,000.  Although VA's failure to
    notify the committee of reprogrammings that exceed the $250,000
    threshold does not give the committee an adequate opportunity to
    review VA's plans to use funds in a manner different from the
    manner proposed when it requested those funds, VA's failure to
    notify the committee does not constitute a violation of law. VA
    lacks adequate internal controls over its limited open travel
    authorizations and delegated travel authority, resulting in the
    potential for abuse or noncompliance with requirements.  We found
    instances of limited open travel authorizations not being
    administered in accordance with VA policy, with respect to the
    obligation of funds and limitations on purposes, number of trips,
    geographic areas, trip duration, and costs.  We also found a lack
    of separation of duties and supervision inherent in these policies
    and that compensating internal controls were not in place to
    mitigate the risk of abuse or noncompliance with requirements.
    Compensating controls, such as periodic monitoring or supervisory
    review, should enable VA to assess whether top officials who are
    authorizing and approving their own travel are following VA travel
    policies and making proper expense claims.  Another compensating
    control, periodic reevaluations, should enable VA to determine
    whether employees with limited open travel authorizations are
    frequent travelers. We recommend that the Secretary of VA direct
    appropriate officials to Recommendations *  reexamine the budget
    formulation process, particularly with respect to VHA's Medical
    Care appropriations account, to determine what steps can be taken
    to improve the accuracy of the travel budget requests. *  follow
    congressional guidance directing VA to inform the Senate
    Appropriations Committee prior to reprogramming more than $250,000
    in excess travel funds and see that any new agreements reached
    with the committee regarding the activities or amounts subject to
    reprogramming rules be documented. *  periodically monitor travel
    taken by employees who may authorize and approve their own travel
    and employees who have limited open travel authorizations to
    assess compliance with travel policies and regulations. *
    reevaluate the manner in which limited open travel authorizations
    are administered, including (1) whether funds are being obligated
    in accordance with VA policy; (2) whether the authorizations
    contain Page 26
    GAO/GGD-99-137 VA Travel B-283221 reasonable limitations on
    purposes, geographic areas, trip duration, and costs; and (3)
    whether the employees who have been issued limited open travel
    authorizations are expected to be frequent travelers, and if not,
    revoke or not renew those authorizations. We requested comments on
    a draft of this report from VA.  In a letter dated Agency Comments
    and August 3, 1999, VA provided us with comments on the draft,
    which we Our Evaluation                  have reprinted in
    appendix II.  VA disagreed with our first two recommendations to
    reexamine its travel budget formulation process and to inform the
    Senate Appropriations Committee regarding the reprogramming of
    excess travel funds.   It agreed with our recommendation to
    monitor the travel of employees who may authorize and approve
    their own travel and who have limited open travel authorization.
    Finally, VA agreed in principle with our recommendation to
    reevaluate the manner in which limited open travel authorizations
    are administered. Reexamine Budget Formulation    VA did not
    concur with our recommendation to reexamine its budget Process
    formulation process.  The department indicated that its current
    means of developing a travel estimate for expenditures several
    years into the future is sound and ensures that funds are
    available for travel activities affecting areas of immediate
    importance to veterans or their direct service providers.  VA said
    that its current process considers the department's full range of
    potential travel needs and to do otherwise could jeopardize travel
    activities.  For example, VA said that with the recent advent of
    community and hospital-based home care, VA expects an increased
    use of travel funds. VA stated that because Congress limits travel
    expenditures to the amounts contained in the President's travel
    budget requests, VA's travel budget requests invariably result in
    overstatements of travel needs.  In addition, VA stated that
    events or circumstances beyond the department's control
    contributed to revised travel estimates after the budget requests
    were submitted, such as the 1996 government shutdown and the
    reorganization of VHA.  Moreover, VA stated that the amounts of
    the excess travel funds must be kept in perspective with the
    overall $17 billion appropriation that Congress provides for
    veterans' health care. We recognize that VA would like to ensure
    that the limitation on travel expenditures does not have a
    potentially negative effect on the services provided to veterans
    and on those who provide such service and that VA's travel
    limitation can result in some overstatement of travel needs.  We
    also do not disagree with the possible need for increased travel
    expenses to provide veterans' health care.  However, we continue
    to believe that the size of the difference between VA's travel
    budget requests and actual travel Page 27
    GAO/GGD-99-137 VA Travel B-283221 expenditures, particularly with
    respect to VA's Medical Care appropriations account, has been
    larger than might be considered reasonable to avoid exceeding the
    limitation.  In fiscal year 1998, for example, the travel budget
    request for VHA's Medical Care account, which represented 77
    percent of VA's total budget request for that year, exceeded
    actual travel expenditures by $6.3 million, or by about 14
    percent.  Despite that difference, VA increased the travel budget
    request for Medical Care by $3.5 million in fiscal year 1999.
    Further, our report contained VA's views that the amounts of the
    excess travel funds should be viewed in relation to the size of
    the overall Medical Care appropriation and that events in 1996
    such as the government shutdown affected travel expenditures that
    year. VA also indicated that reexamining its budget formulation
    process was unnecessary because its travel cap has been "straight-
    lined" for fiscal years 1999 and 2000 and that it proposes to
    maintain that level in future budget requests until actual
    expenditures are closer to the budget request.  We note that only
    the budget request for the Medical Care account is at a constant
    level for fiscal years 1999 and 2000, while travel budget requests
    for VA's other appropriations accounts increased by a total of
    $8.5 million from $17.9 million to $26.4 million during that same
    period, or a 48 percent increase. We believe that VA's proposal to
    achieve a smaller difference between its actual travel
    expenditures and budget requests is the appropriate goal. However,
    a constant-level Medical Care travel budget request for fiscal
    years 1999 and 2000 suggests that VA is not formulating its
    request for that account based on a thorough consideration of
    prior years' expenditures and future needs.  We are concerned that
    in the future, after VA ceases use of a constant-level budget
    request for Medical Care, no assurance exists that a smaller
    difference will be maintained.  Although we focused on increases
    in travel budget requests for the Medical Care account, we are
    also concerned about the 48 percent increase in the travel budget
    request for the other appropriations accounts in fiscal year 2000.
    Since 1993, the largest annual increase in actual travel
    expenditures for the other appropriations accounts was 14 percent
    in fiscal year 1997.  Therefore, we question whether this 48
    percent increase is based on a realistic estimate of travel
    expenditures and needs.  We continue to believe that VA should
    reexamine its budget formulation process to improve the accuracy
    of its budget requests. VA also indicated that in 1997, VHA's
    travel expenditures under its Medical Care account increased by
    over $10 million to $41.4 million, which the department said it
    would not have been able to achieve if the travel Page 28
    GAO/GGD-99-137 VA Travel B-283221 limitation had not been
    increased starting in 1995.  We recognize that VA increased its
    Medical Care travel budget request by $6.8 million in fiscal year
    1995, by $10 million in fiscal year 1996, and by $1.4 million in
    fiscal years 1997.  However, these increases appear to have been
    larger than needed, since the Medical Care travel budget request
    in fiscal year 1997 ($51.4 million) was $10 million more than
    actual travel expenditures ($41.4 million) that year. Follow
    Congressional      VA also did not concur with our recommendation
    that the Secretary of VA Reprogramming Guidance    direct VA
    officials to follow congressional guidance to inform the committee
    prior to any reprogrammings of more than $250,000 in excess travel
    funds.  VA stated that for several reasons, it does not view
    switching excess travel funds to other object classes to be
    reprogramming covered by the Senate report language and that it
    therefore has not violated congressional guidance regarding
    reprogramming.  First, it stated that the Appropriations
    Committees have always been aware of the status of travel funds
    because VA submits an annual report to the committee staffs that
    compares budgeted, appropriated, and actual travel expenditures to
    ensure compliance with the statutory restriction limiting amounts
    that VA can spend on travel to the amounts requested for travel in
    the President's budget submission.  VA further maintained that it
    has agreed with the committee staffs that reprogramming only
    applies to the major program activity components listed in the
    Program and Financing Schedule contained in the Budget Appendix,
    which is defined in terms of major program activities, not in
    terms of objects of expense. VA stated that its interpretation of
    congressional expectations regarding reprogramming has not been
    challenged by the committee.  VA also stated that redefining
    reprogramming requirements to apply to an object class level is
    inconsistent with objectives of the Government Performance and
    Results Act (Results Act) and other reinvention efforts that
    encourage managerial flexibility.   VA maintained that it has been
    extremely efficient in using travel funds and should not be held
    to an unprecedented degree of oversight. Finally, VA noted that
    the $250,000 reprogramming threshold was developed many years ago
    when budgets were smaller.  VA proposed to meet with committee
    staff to reach a mutual agreement concerning both the activities
    within each VA appropriation that need to be subject to
    reprogramming and realistic reprogramming thresholds.  VA
    acknowledged this had not been done in recent years and that
    clarification of the reprogramming process would be beneficial to
    both VA and Congress. Page 29
    GAO/GGD-99-137 VA Travel B-283221 With respect to VA's proposal to
    meet with committee staff to reach mutual agreement concerning the
    activities within each VA appropriation that will be subject to
    the reprogramming rules and agree on more realistic reprogramming
    thresholds, we agree that this is desirable and would be
    beneficial to both VA and Congress.  We also believe that any
    agreements reached on the activities subject to reprogramming
    should be documented to provide a record of the agreement reached
    and prevent future misunderstandings.  However, unless or until
    such an agreement is reached with the committee, VA should comply
    with the existing guidelines set forth in the committee reports.
    While VA maintains that the Appropriations Committees were fully
    aware of and concurred in VA's interpretation of the reprogramming
    guidelines, it provided no documentation supporting this or
    showing that it informed the committee of how it planned to use
    the funds that were shifted from the travel account.  Further, we
    believe that VA's proposal to meet with the committee staffs to
    clarify these guidelines and the circumstances in which they would
    apply would be consistent with our recommendation. Nonetheless,
    unless or until a contrary documented understanding is reached
    under the applicable congressional guidance, VA should notify the
    Senate Committee whenever it shifts $250,000 or more in travel
    funds to other object classes.  Such shifts fall within the
    definition of reprogramming contained in the Glossary of Terms
    Used in the Federal Budget Process as the "[s]hifting funds within
    an appropriation or fund account to use them for different
    purposes than those contemplated at the time of appropriation (for
    example, obligating budgetary resources for a different object
    class from the one originally planned)."44 VA said that redefining
    reprogramming to apply to travel expenditures-an object class
    level-is inconsistent with the objectives of the Results Act and
    other reinvention efforts encouraging managerial flexibility and
    would hold VA to an unprecedented degree of oversight.  Under the
    generally accepted definition of reprogramming quoted in the
    previous paragraph, we do not agree that we are redefining
    reprogramming requirements. Further, while managerial flexibility
    is a desirable objective, nothing in the Results Act provides
    agencies with a basis for not adhering to congressional guidance
    or directives.  Moreover, while we recognize that the travel
    expenditures in question comprise a relatively small percentage of
    VA's overall budget, over $61 million in excess travel funds were
    reprogrammed from fiscal years 1993 through 1998.  Further, 44
    U.S. General Accounting Office, A Glossary of Terms Used in the
    Federal Budget Process (GAO/AFMD-2.1.1, Jan. 1993 ) (Exposure
    Draft). Page 30
    GAO/GGD-99-137 VA Travel B-283221 congressional concern about VA's
    travel budget and the way in which it uses those travel funds is
    evident from its long-standing inclusion of a provision in VA's
    annual appropriations acts that limits VA's travel expenditures to
    the amounts requested for travel in the President's budget
    submission. Monitor Travel Taken by         VA concurred with our
    recommendation to periodically monitor the travel Employees With
    Delegated        of employees with delegated travel authority and
    those who have limited Travel Authority and Open       open travel
    authorizations.  VA said that it recognized that its management
    Travel Authorizations           of self-approved travel and open
    travel authorities needed improvement and said that periodic
    monitoring of employees' travel could be done without
    significantly raising overhead costs. VA suggested that we clarify
    in the report that VA operates in a decentralized environment and
    has delegated management of internal controls to the
    Administrations (e.g., VHA and VBA, and staff offices, typically
    to the facility level).  In this regard, VHA and VBA are
    responsible for ensuring that their field facilities adhere to VA
    travel policy.  We clarified the report on this matter where
    appropriate.  VA also indicated that VHA's Chief Network Office
    will coordinate with VHA field and headquarters offices to devise
    a plan to initiate monitoring of travel.  In addition, VA
    indicated that, among other actions, VBA's (1) Central Office will
    perform periodic reviews of travel documents and conduct on-site
    reviews and (2) Office of Field Operations will review the travel
    of employees with delegated travel authority and those with
    limited open travel authorizations.  These proposed actions appear
    to respond to our recommendation on this matter. Reevaluate
    Administration of    Finally, VA concurred in principle with our
    recommendation to reevaluate Limited Open Travel             the
    manner in which limited open travel authorizations are
    administered. Authorizations                  VA indicated that
    this recommendation will be accomplished through the monitoring of
    travel and that if significant problems are found, it will
    initiate additional action.  According to VA, these reviews will
    determine whether limited open travel authorizations are being
    properly issued, documented, and reviewed, and whether funds are
    being properly obligated.  We believe this is a reasonable
    approach to implementing our recommendation. While agreeing in
    principle with this recommendation, VA also said that it defines
    "frequent traveler" by many methods.  For the purposes of
    obtaining a travel card, for example, VA said that an employee who
    travels twice a year would be a frequent traveler.  We recognized
    that VA may define a frequent traveler in different ways and
    indicated throughout this Page 31
    GAO/GGD-99-137 VA Travel B-283221 report that the definition used
    ( i.e., an employee who travels at least once a month) was
    provided by VA's travel policy manager in the context of issuing
    limited open travel authorizations. VA said that another reason
    for issuing limited open travel authorizations, in addition to
    facilitating the travel of frequent travelers, is to allow
    employees to travel without notice.  According to VA's travel
    policy manager, employees whose jobs require travel without notice
    may be issued limited open travel authorizations.  We note that
    the FTR states that agencies should establish procedures for
    travel situations where it is not practical or possible to issue a
    written travel authorization in advance.45 However, VA's travel
    policy manual does not contain any provisions that permit the
    issuance of limited open travel authorizations to employees who
    must travel without notice. Finally, VA said that although it has
    not issued a revised travel policy manual since 1995, the policy
    has been updated through field faxes and messages from the
    Secretary.  We added this information to the report but also
    indicated that none of the travel policy updates related to
    delegated travel authority or limited open travel authorizations.
    We are sending copies of this report to Senator Robert Byrd,
    Senator John Rockefeller, Senator Ted Stevens, and Senator Arlen
    Specter, and to Representative Corrine Brown, Representative Lane
    Evans, Representative David Obey, Representative Bob Stump, and
    Representative Bill Young in their capacities as Chair or Ranking
    Minority Member of Senate and House Committees and Subcommittees.
    We are also sending copies of this report to the Honorable Togo
    West, the Secretary of Veterans Affairs.  Copies will also be made
    available to others upon request. 45 Note to FTR section 301-
    71.105. Page 32
    GAO/GGD-99-137 VA Travel B-283221 Major contributors to this
    report were Gerald Barnes and Robert Homan. If you have any
    questions, please contact me on (202) 512-8387 or at
    [email protected] Sincerely yours, Bernard L. Ungar Director,
    Government Business Operations Issues Page 33
    GAO/GGD-99-137 VA Travel Contents 1 Letter 36 Appendix I VA
    Employee Travel 45 Appendix II Comments From the Department of
    Veterans Affairs Table 1: VA Excess Travel Funds Reprogrammed From
    11 Tables                  Fiscal Years 1993 Through 1998 (In
    nominal dollars) Table 2:  VA Excess Travel Funds Reprogrammed
    From                         11 Fiscal Year 1993 Through 1998 (In
    constant 1999 dollars) Table 3: VA Officials With Delegated Travel
    Authority                      20 Table I.1: Fiscal Year 1993 VA
    Employee Travel                             36 Table I.2: Fiscal
    Year 1994 VA Employee Travel                             37 Table
    I.3: Fiscal Year 1995 VA Employee Travel
    38 Table I.4:  Fiscal Year 1996 VA Employee Travel
    39 Table I.5:  Fiscal Year 1997 VA Employee Travel
    40 Table I.6:  Fiscal Year 1998 VA Employee Travel
    41 Table I.7:  Fiscal Years 1999 and 2000 VA Employee
    42 Travel Table I.8:  Differences Between VA's Travel Budget and
    42 Actual Expenditures From Fiscal Year 1993 to 1998 (In nominal
    dollars) Table I.9:  Differences Between VA's Travel Budget and
    43 Actual Expenditures From Fiscal Year 1993 to 1998 (In constant
    1999 dollars) Table I.10:  Differences Between VA's Travel
    43 Appropriations and Actual Expenditures From Fiscal Year 1993
    to1998 (In nominal dollars) Table I.11:  Differences Between VA's
    Travel                               44 Appropriations and Actual
    Expenditures From Fiscal Year 1993 to 1998 (In constant 1999
    dollars) Page 34
    GAO/GGD-99-137 VA Travel Contents Abbreviations FMFIA
    Federal Managers' Financial Integrity Act FTR         Federal
    Travel Regulation GS          General Service GSA         General
    Services Administration JFMIP       Joint Financial Management
    Improvement Program NCA         National Cemetery Administration
    OIG         Office of the Inspector General OMB         Office of
    Management and Budget VA          Department of Veterans Affairs
    VBA         Veterans Benefits Administration VHA         Veterans
    Health Administration VISN        Veterans Integrated Service
    Network Page 35
    GAO/GGD-99-137 VA Travel Appendix I VA Employee Travel Table I.1:
    Fiscal Year 1993 VA Employee Travel
    Fiscal year 1993 (Nominal dollars)
    (Constant 1999 dollars) Accounts/Funds                   Budgeta
    Appropriatedb        Actual               Budget
    Appropriated          Actual VHA Medical Care
    $30,046,000       $31,501,000       $30,557,000
    $33,496,000          $35,118,000          $34,066,000 Medical and
    Prosthetic Research                          2,719,000
    2,807,000       1,420,000              3,031,000
    3,129,000            1,583,000 Medical Administration and
    Miscellaneous Operating Expenses
    843,000           1,191,000       1,100,000                940,000
    1,328,000            1,226,000 General Operating Expenses
    (includes Veterans Benefits Administration (VBA)
    13,299,000       13,079,000        12,048,000
    14,826,000            14,581,000           13,431,000 National
    Cemetery Admin.             650,000            650,000
    619,000               725,000              725,000
    690,000 Office of Inspector General        2,429,000
    2,425,000       1,990,000              2,708,000
    2,703,000            2,219,000 Subtotal for Appropriations
    Accounts                          49,986,000       51,653,000
    47,734,000             55,726,000            57,584,000
    53,215,000 Revolving funds: Medical Care Cost Recovery Fund (MCCR)
    2,160,000                           2,174,000
    2,408,000                                 2,424,000 Supply Fund
    1,421,000                           1,817,000
    1,584,000                                 2,026,000 Canteen
    Service                      875,000
    928,000               975,000
    1,035,000 Subtotal for Revolving Funds       4,456,000
    4,919,000              4,967,000
    5,485,000 Total travel                    $54,442,000
    $51,653,000       $52,653,000            $60,693,000
    $57,584,000          $58,700,000 aAs requested in the President's
    budget submission to Congress. b"Appropriated" refers to
    information VA provided to us on the amounts for travel included
    in its appropriations accounts after appropriations were enacted.
    Source:  VA Budget Office. Page 36
    GAO/GGD-99-137 VA Travel Appendix I VA Employee Travel Table I.2:
    Fiscal Year 1994 VA Employee Travel
    Fiscal year 1994 (Nominal dollars)
    (Constant 1999 dollars) Accounts/Funds                   Budgeta
    Appropriatedb           Actual               Budget
    Appropriated          Actual VHA Medical Care
    $33,240,000        $33,240,000           $31,939,000
    $36,170,000         $36,170,000        $34,754,000 Medical and
    Prosthetic Research                          2,723,000
    2,153,000           2,177,000            2,963,000
    2,343,000          2,369,000 Medical Administration and
    Miscellaneous Operating Expenses
    1,293,000            1,113,000            817,000
    1,407,000           1,211,000             889,000 General
    Operating Expenses (includes VBA)                    10,834,000
    13,401,000          10,708,000           11,789,000
    14,582,000          11,652,000 National Cemetery Admin.
    585,000              585,000            555,000
    637,000             637,000             604,000 Office of
    Inspector General        2,405,000            2,105,000
    1,618,000            2,617,000           2,291,000
    1,761,000 Subtotal for Appropriations Accounts
    51,080,000           52,597,000          47,814,000
    55,583,000         57,234,000          52,029,000 Revolving funds:
    MCCR                               2,330,000
    1,751,000            2,535,000
    1,905,000 Supply Fund                        1,063,000
    1,707,000            1,157,000
    1,857,000 Canteen Service                      800,000
    688,000               871,000
    749,000 Subtotal for Revolving Funds       4,193,000
    4,146,000            4,563,000
    4,511,000 Total travel                     $55,273,000
    $52,597,000           $51,960,000         $60,146,000
    $57,234,000        $56,540,000 aAs requested in the President's
    budget submission to Congress. b"Appropriated" refers to
    information VA provided to us on the amounts for travel included
    in its appropriations accounts after appropriations were enacted.
    Source:  VA Budget Office. Page 37
    GAO/GGD-99-137 VA Travel Appendix I VA Employee Travel Table I.3:
    Fiscal Year 1995 VA Employee Travel
    Fiscal year 1995 (Nominal dollars)
    (Constant 1999 dollars) Accounts/Funds                   Budgeta
    Appropriatedb           Actual               Budget
    Appropriated            Actual VHA Medical Care
    $40,000,000           $40,275,000        $35,925,000
    $42,508,000         $42,800,000        $38,177,000 Medical and
    Prosthetic Research                          1,803,000
    2,153,000          1,724,000            1,916,000
    2,288,000          1,832,000 Medical Administration and
    Miscellaneous Operating Expenses
    1,200,000              795,000            823,000
    1,275,000             845,000             875,000 General
    Operating Expenses (includes VBA)                    13,502,000
    14,182,000         12,619,000           14,349,000
    15,071,000          13,410,000 National Cemetery Admin.
    650,000              650,000            632,000
    691,000             691,000             672,000 Office of
    Inspector General        2,099,000             1,857,000
    1,632,000            2,231,000           1,973,000
    1,734,000 Subtotal for Appropriations Accounts
    59,254,000            59,912,000         53,355,000
    62,670,000         63,668,000          56,700,000 Revolving funds:
    MCCR                               2,400,000
    1,758,000            2,550,000
    1,868,000 Supply Fund                        1,455,000
    1,455,000            1,546,000
    1,546,000 Canteen Service                      900,000
    645,000               956,000
    685,000 Subtotal for Revolving Funds       4,755,000
    3,858,000            5,052,000
    4,099,000 Total travel                     $64,009,000
    $59,912,000        $57,213,000         $68,022,000
    $63,668,000        $60,799,000 aAs requested in the President's
    budget submission to Congress. b"Appropriated" refers to
    information VA provided to us on the amounts for travel included
    in its appropriations accounts after appropriations were enacted.
    Source:  VA Budget Office. Page 38
    GAO/GGD-99-137 VA Travel Appendix I VA Employee Travel Table I.4:
    Fiscal Year 1996 VA Employee Travel
    Fiscal year 1996 (Nominal dollars)
    (Constant 1999 dollars) Accounts/Funds                   Budgeta
    Appropriatedb             Actual               Budget
    Appropriated            Actual VHA Medical Care
    $50,000,000           $50,000,000        $30,628,000
    $52,138,000         $52,138,000        $31,937,000 Medical and
    Prosthetic Research                         $2,153,000
    2,900,000          1,540,000            2,245,000
    3,024,000          1,606,000 Medical Administration and
    Miscellaneous Operating Expenses
    826,000              426,000            566,000
    861,000             444,000             590,000 General Operating
    Expenses (includes VBA)                    16,093,000
    12,412,000          8,916,000           16,781,000
    12,943,000           9,297,000 National Cemetery Admin.
    680,000              600,000            467,000
    709,000             626,000             487,000 Office of
    Inspector General        1,859,000             1,690,000
    1,519,000            1,938,000           1,762,000
    1,584,000 Subtotal for Appropriations Accounts
    71,611,000            68,028,000         43,636,000
    74,672,000         70,937,000          45,501,000 Revolving funds:
    MCCR                               2,778,000
    2,610,000            2,897,000
    2,722,000 Supply Fund                        2,082,000
    1,910,000            2,171,000
    1,992,000 Canteen Service                    1,000,000
    943,000             1,043,000
    983,000 Subtotal for Revolving Funds       5,860,000
    5,463,000            6,111,000
    5,697,000 Total travel                     $77,471,000
    $68,028,000        $49,099,000         $80,783,000
    $70,936,000        $51,198,000 aAs requested in the President's
    budget submission to Congress. b"Appropriated" refers to
    information VA provided to us on the amounts for travel included
    in its appropriations accounts after appropriations were enacted.
    Source:  VA Budget Office. Page 39
    GAO/GGD-99-137 VA Travel Appendix I VA Employee Travel Table I.5:
    Fiscal Year 1997 VA Employee Travel
    Fiscal year 1997 (Nominal dollars)
    (Constant 1999 dollars) Accounts/Funds                   Budgeta
    Appropriatedb             Actual               Budget
    Appropriated            Actual VHA Medical Care
    $51,365,000           $51,365,000        $41,380,000
    $52,574,000         $52,574,000        $42,354,000 Medical and
    Prosthetic Research                          1,701,000
    2,153,000          1,961,000            1,741,000
    2,204,000          2,007,000 Medical Administration and
    Miscellaneous Operating Expenses
    878,000              700,000            713,000
    899,000             716,000             730,000 General Operating
    Expenses (includes VBA)                    11,568,000
    11,361,000          9,924,000           11,840,000
    11,628,000          10,158,000 National Cemetery Admin.
    630,000              592,000            582,000
    645,000             606,000             596,000 Office of
    Inspector General        1,434,000             1,461,000
    1,590,000            1,468,000           1,495,000
    1,627,000 Subtotal for Appropriations Accounts
    67,576,000            67,632,000         56,150,000
    69,167,000         69,223,000          57,472,000 Revolving funds:
    MCCR                               2,873,000
    2,560,000            2,941,000
    2,620,000 Supply Fund                        2,082,000
    1,919,000            2,131,000
    1,964,000 Franchise Fundc                    2,000,000
    504,000             2,047,000
    516,000 Canteen Service                    1,000,000
    905,000             1,024,000
    926,000 Subtotal for Revolving Funds       7,955,000
    5,888,000            8,143,000
    6,026,000 Total travel                     $75,531,000
    $67,632,000        $62,038,000         $77,309,000
    $69,223,000        $63,498,000 aAs requested in the President's
    budget submission to Congress. b"Appropriated" refers to
    information VA provided to us on the amounts for travel included
    in its appropriations accounts after appropriations were enacted.
    cVA's franchise fund was established in 1997. Source:  VA Budget
    Office. Page 40
    GAO/GGD-99-137 VA Travel Appendix I VA Employee Travel Table I.6:
    Fiscal Year 1998 VA Employee Travel
    Fiscal year 1998 (Nominal dollars)
    (Constant 1999 dollars) Accounts/Funds                   Budgeta
    Appropriatedb             Actual               Budget
    Appropriated             Actual VHA Medical Care
    $51,691,000           $54,599,000        $45,402,000
    $52,266,000         $55,206,000         $45,907,000 Medical and
    Prosthetic Research                          1,750,000
    2,031,000         2,119,000c             1,769,000
    2,054,000           2,143,000 Medical Administration and
    Miscellaneous Operating Expenses
    903,000                903,000           764,000
    913,000             913,000             772,000 General Operating
    Expenses (includes VBA)                    10,681,000
    11,624,000         11,322,000           10,800,000
    11,753,000          11,448,000 National Cemetery Admin.
    625,000                625,000           583,000
    632,000             632,000             589,000 Office of
    Inspector General        1,574,000             1,616,000
    1,808,000             1,592,000           1,634,000
    1,828,000 Subtotal for Appropriations Accounts
    67,224,000            71,398,000         61,998,000
    67,972,000          72,192,000          62,687,000 Revolving
    funds: MCCR                               2,908,000
    d           2,940,000
    c Supply Fund                        3,778,000
    2,467,000             3,820,000
    2,494,000 Franchise Fund                     2,539,000
    552,000             2,567,000
    558,000 Canteen Service                    1,000,000
    969,000             1,011,000
    980,000 Subtotal for Revolving Funds      10,225,000
    3,988,000           10,338,000
    4,032,000 Total travel                     $77,449,000
    $71,398,000        $65,986,000          $78,310,000
    $72,192,000         $66,719,000 aAs requested in the President's
    budget submission to Congress. b"Appropriated" refers to
    information VA provided to us on the amounts for travel included
    in its appropriations accounts after appropriations were enacted.
    cAccording to VA officials, the amount actually expended for
    travel in fiscal year 1998 "Medical and Prosthetic Research"
    appropriations account includes unobligated amounts from the 1997
    Appropriations Act for travel, which are available for obligation
    for 2 years.  Therefore, based on this information, VA's
    expenditures for that purpose in fiscal year 1998 did not exceed
    the applicable ceiling on employee travel in the 1998
    Appropriations Act. dStarting in fiscal year 1998, MCCR was
    terminated and the Medical Care Collections Fund was established.
    Source:  VA Budget Office. Page 41
    GAO/GGD-99-137 VA Travel Appendix I VA Employee Travel Table I.7:
    Fiscal Years 1999 and 2000 VA Employee Travel Fiscal year 1999
    Fiscal year 2000 (In nominal dollars)
    (In nominal dollars) Accounts/Funds
    Budgeta                      Appropriatedb
    Budgeta VHA Medical Care
    $55,143,000                     $55,143,000
    $55,143,000 Medical and Prosthetic Research
    2,137,000                      2,244,000
    3,102,000 Medical Administration and Miscellaneous Operating
    Expenses                                                 923,000
    969,000                            1,400,000 General Operating
    Expenses (includes VBA)                       12,254,000
    15,746,000                           18,651,000 National Cemetery
    Admin.                                            795,000
    795,000                               947,000 Office of Inspector
    General                                       1,766,000
    2,085,000                            2,271,000 Subtotal for
    Appropriations Accounts                            73,018,000
    76,982,000                           81,514,000 Revolving funds:
    Supply Fund
    3,891,000
    3,800,000 Franchise Fund
    664,000
    869,000 Canteen Service
    1,000,000
    1,000,000 Subtotal for Revolving Funds
    5,555,000
    5,669,000 Total travel
    $78,573,000                     $76,982,000
    87,183,000 aAs requested in the President's budget submission to
    Congress. b"Appropriated" refers to information VA provided to us
    on the amounts for travel included in its appropriations accounts
    after appropriations were enacted. Source:  VA Budget Office.
    Table I.8:  Differences Between VA's Travel Budget and Actual
    Expenditures From Fiscal Year 1993 to 1998 (In nominal dollars)
    Difference between budget and actual Fiscal year
    Budgeta          Actual expenditures
    expenditures           Percentage difference 1993
    $49,986,000                      $47,734,000
    $2,252,000                              4.5 1994
    51,080,000                        47,814,000
    3,266,000                              6.4 1995
    59,254,000                        53,355,000
    5,899,000                             10.0 1996
    71,611,000                        43,636,000
    27,975,000                             39.1 1997
    67,576,000                        56,150,000
    11,426,000                             16.9 1998
    67,224,000                        61,998,000
    5,226,000                              7.8 1999
    73,018,000                                  b 2000
    $81,514,000                                  b Note:  This table
    excludes VA's four revolving funds:  Canteen Service, Franchise
    Fund, MCCR, and Supply Fund. aAs requested in the President's
    budget submission to Congress. bFiscal years 1999 and 2000 actual
    expenditures not yet available. Source:  VA Budget Office and GAO
    calculations of differences. Page 42
    GAO/GGD-99-137 VA Travel Appendix I VA Employee Travel Table I.9:
    Differences Between VA's Travel Budget and Actual Expenditures
    From Fiscal Year 1993 to 1998 (In constant 1999 dollars)
    Difference between budget and actual Fiscal year
    Budgeta         Actual expenditures
    expenditures         Percentage difference 1993
    $55,726,000                   $53,215,000
    $2,511,000                                4.5 1994
    55,582,000                    52,028,000
    3,554,000                               6.4 1995
    62,969,000                    56,700,000
    6,269,000                              10.0 1996
    74,673,000                    45,502,000
    29,171,000                               39.1 1997
    69,167,000                    57,472,000
    11,695,000                               16.9 1998
    67,972,000                    62,688,000
    5,284,000                               7.8 1999
    73,018,000                                 b 2000
    $81,514,000                                 b Note:  This table
    excludes VA's four revolving funds:  Canteen Service, Franchise
    Fund, MCCR, and Supply Fund. aAs requested in the President's
    budget submission to Congress. bFiscal years 1999 and 2000 actual
    expenditures not yet available. Source:  VA Budget Office and GAO
    calculations of differences. Table I.10:  Differences Between VA's
    Travel Appropriations and Actual Expenditures From Fiscal Year
    1993 to1998 (In nominal dollars)
    Difference between appropriated and actual Fiscal year
    Appropriateda         Actual expenditures
    expenditures         Percentage difference 1993
    $51,653,000                   $47,734,000
    $3,919,000                                7.6 1994
    52,597,000                    47,814,000
    4,783,000                               9.1 1995
    59,912,000                    53,355,000
    6,557,000                              10.9 1996
    68,028,000                    43,636,000
    24,392,000                               35.9 1997
    67,632,000                    56,150,000
    11,482,000                               17.0 1998
    71,398,000                    61,998,000
    9,400,000                              13.2 1999
    $76,982,000                                 b Note: This table
    excludes VA's four revolving funds:  Canteen Service, Franchise
    Fund, MCCR, and Supply Fund. a"Appropriated" refers to information
    VA provided to us on the amounts for travel included in its
    appropriations accounts after appropriations were enacted. bFiscal
    year 1999 actual expenditures not yet available. Source:  VA
    Budget Office and GAO calculations of differences. Page 43
    GAO/GGD-99-137 VA Travel Appendix I VA Employee Travel Table I.11:
    Differences Between VA's Travel Appropriations and Actual
    Expenditures From Fiscal Year 1993 to 1998 (In constant 1999
    dollars)
    Difference between appropriated and actual Fiscal year
    Appropriateda         Actual expenditures
    expenditures         Percentage difference 1993
    $57,584,000                   $53,215,000
    $4,369,000                                7.6 1994
    57,233,000                    52,028,000
    5,205,000                               9.1 1995
    63,668,000                    56,700,000
    6,968,000                              10.9 1996
    70,936,000                    45,502,000
    25,434,000                               35.9 1997
    69,224,000                    57,472,000
    11,752,000                               17.0 1998
    72,192,000                    62,688,000
    9,504,000                              13.2 1999
    $76,982,000                                 b Note: This table
    excludes VA's four revolving funds:  Canteen Service, Franchise
    Fund, MCCR, and Supply Fund. a"Appropriated" refers to information
    VA provided to us on the amounts for travel included in its
    appropriations accounts after appropriations were enacted. bFiscal
    year 1999 actual expenditures not yet available. Source:  VA
    Budget Office and GAO calculations of differences. Page 44
    GAO/GGD-99-137 VA Travel Appendix II Comments From the Department
    of Veterans Affairs Page 45          GAO/GGD-99-137 VA Travel
    Appendix II Comments From the Department of Veterans Affairs Page
    46                                             GAO/GGD-99-137 VA
    Travel Appendix II Comments From the Department of Veterans
    Affairs Page 47
    GAO/GGD-99-137 VA Travel Appendix II Comments From the Department
    of Veterans Affairs Page 48
    GAO/GGD-99-137 VA Travel Appendix II Comments From the Department
    of Veterans Affairs Page 49
    GAO/GGD-99-137 VA Travel Appendix II Comments From the Department
    of Veterans Affairs Page 50
    GAO/GGD-99-137 VA Travel Page 51    GAO/GGD-99-137 VA Travel Page
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