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AFMD-82-33 1 (1981-12-18)

handle is hein.gao/gaobabcud0001 and id is 1 raw text is: RELEASED .NIT . ...... COMPTROLLER GENERAL OF THE UNI1ED STATES WASHINGTON O.C. 20548 B-153862 DECEMBER 18, 1981 The Honorable Charles McC. Mathias Chairman, Subcommittee on Governmental Efficiency and the District of Columbia Committee on Governmental Affairs 117236 United States Senate Dear Mr. Chairman: Subject: General Services Administration's Actions to Collect and Improve Controls Over Refunds Owed by the Airline Industry (AFMD-82-33) In your July 13, 1981, letter (encl. I) you asked us to re- view procedures for airlines to reimburse the Federal Government when Federal employees exchange their tickets for lower cost travel accommodations. The Civil Aeronautics Board (CAB) estimated the amount of such refunds due but not paid to be about $8 million at the time of your request. Your office specifically asked us to es- tablish why such a large amount was outstanding and what actions have been taken to recover refunds by the General Services Admin- istration (GSA), since it has Government-wide responsibility for the travel program. In summary, we have found that since at least the early 1970s the Nation's airlines have failed to promptly remit millions of dollars in refunds due the Federal Government. We have verified the following: --Some airlines are still holding substantial amounts of re- funds due the U.S. Treasury. We estimated that, as of Sep- tember 1981, three of the four airlines we visited were holding refunds totaling over $1 million which accumulated between July 1976 and December 1980. GSA may have diffi- culty identifying the number of unpaid refunds as well as the amounts because the airlines do not have uniform record retention policies. --This situation exists primarily because Federal agencies, Government travelers, and the airlines fail to follow a special procedure set up to refund money owed the Federal Government. This procedure is basically the same as that available to the general public, except that the airlines do not give cash to Government travelers. Instead, the travelers are given data for their agencies to use in re- questing the refunds. The procedure permits voluntary (905057)

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