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HHS Chapter 9-00-00
Travel Manual
HHS Transmittal 2000.02 - December 15, 2000
Subject: Travel and Transportation Reform Act of 1998
9-00-10 Mandatory Travel Card Usage
9-00-20 Late Payment Penalties for Travel Vouchers
9-00-30 Collection of Undisputed, Delinquent Travel Card Debts
9-00-40 Income Tax Reimbursement Allowances for Long-term Temporary Duty Travel
9-00-50 HHS Travel and Relocation Test Programs
9-00-60 Payment Audits of Transportation Bills
Exhibit
9-00-A Sample Individual Exemption
Memoradum from Mandatory Travel Card Use
9-00-00 PURPOSE
This chapter provides supplemental policy guidance to HHS Operating Divisions
(OPDIVs) and Staff Divisions (STAFFDIVs) concerning implementation of specific
GSA regulations stemming from the Travel and Transportation Reform Act of
1998. It applies to HHS civilian employees, as defined in 5 U.S.C. 5701(2)
and in Federal Travel Regulation 301-1.2.
The Travel and Transportation Reform Act of 1998 (Public Law 105-264) was signed into law on October 19, 1998. One of its chief purposes is to reduce federal travel costs and to streamline federal travel processes. Among its provisions, it requires employees to use Federal travel charge cards for payments of official travel expenses. It provides for the payment of a late payment fee to employees when an agency fails to reimburse them for approved expenses within 30 days after submission of a proper voucher. It gives agencies the authority to collect undisputed, delinquent travel charge card debts through salary offset. It authorizes GSA to approve a limited number of agency pilot programs for cutting travel and relocation administrative expenses. It requires agencies to audit transportation bills for accuracy prior to payment, instead of after payment. It authorizes the payment of income tax reimbursement allowances to employees, when their reimbursements for travel expenses become taxable after one year of continuous duty at a temporary duty location.
Note 1: Commissioned officers of the Public Health Service are covered
under the Department of Defense's Joint Federal Travel Regulations. The
HHS Division of Commissioned Personnel, a component of the Program Support
Center, issues separate travel policy guidance for Commissioned Officers.
Note 2: There are some categories of individuals who perform work for the agency but do not fit the definitions of "employees" in 5 U.S.C. 5701(2)(d)(3)(B) and 41 C.F.R. 301-1.2. Such categories include, but are not necessarily limited to, research trainees (appointed pursuant to 42 C.F.R. Part 63) and regular research fellows (hired pursuant to 42 C.F.R. Part 61, Subpart B). These categories of individuals, who do not fall under the applicable definitions of "employees," are not covered by these guidelines.
9-00-10 MANDATORY TRAVEL CARD USAGE
HHS civilian employees are required to use the Government contractor-issued
travel charge card for all official travel expenses, including cash advances
through an ATM machine, unless they have an exemption. Exception: It is
HHS policy that the travel charge card may not be used for local travel
expenses (see Paragraph I. in this section). Employees must pay bills for
use of the travel charge card in accordance with the terms of the cardholder's
agreement they sign with the bank. Employees may not use the travel charge
card for purposes other than those associated with official travel. Employees
who do not adhere to these mandatory travel card usage policies may be subject
to disciplinary action for violating Standards of Ethical Conduct for employees.
Effective Date: Travel after February 29, 2000
Federal Travel Regulation Guidelines:
A. Granting Exemptions in HHS
The Federal Travel Regulation grants authority to the head of a Federal
agency or his/her designee to exempt any payment, person, type or class
of payments, or type or class of agency personnel if the exemption is determined
to be necessary in the interest of the agency. Exemptions must be in writing.
In HHS,
•Name and Signature of Exemption Authorizing Official
Within OPDIVs and STAFFDIVs, authority to grant mandatory travel card exemptions
on an individual case basis should be consistent with other travel authority
delegations. HHS officials who grant exemptions will retain the original
written exemption in their travel administrative files for the life of the
exemption and if it is canceled or limited to a single trip, retain an additional
six years for audit purposes. Exemption memoranda should be maintained in
an "exemption" travel file with separate "current" and "inactive" folders,
in which the memoranda are filed alphabetically by the employees' last name.
If a long-term or indefinite exemption is canceled, mark "canceled" on the
document, initial and date, and move from the "current" to the "inactive"
folder.
Note: if an OPDIV uses a Government contractor-issued centrally-billed account for certain types or classes of travel payments (such as airline tickets), such payments meet mandatory travel card use requirements and should not be listed as an exemption.
HHS officials with exemption authority will provide written notification
within 30 days after granting new exemptions directly to the Administrator
of General Services (Attention: MTT), 1800 F Street, NW, Washington, DC
20405.
Note: The Division of Financial Management Policy, Office of the Assistant Secretary for Management and Budget (ASMB), will provide written notification of Departmentwide exemptions to GSA on behalf of all HHS components. OPDIV and STAFFDIV officials are responsible for providing written notification to GSA for any individual exemptions they grant; do not send a copy to ASMB.
Federal Travel Regulation 301-51.2 specifies governmentwide exemptions
to mandatory travel card use:
Exemptions of Agency Employees:
Exemptions of Types or Classes of Payments:
In addition to the governmentwide exemptions specified in the Federal Travel Regulation, the Deputy Assistant Secretary for Finance grants the following exemptions to HHS civilian employees:
Exemptions of Agency Employees:
Exemptions of Types or Classes of Payments:
Employees who have a government travel card may use the card for types or classes of official travel payments which have been given an exemption from mandatory travel card use. Use of the travel card, where an exemption has been given, is discretionary.
Employees who refuse to apply for and/or use the travel charge card for official travel and are not covered by an exemption will not be authorized a cash travel advance. Note: this modifies HHS Travel Manual Chapter 3, Advances of Funds, Section 3-20-20, issued November 1, 1988.
Employees are responsible for reading and adhering to the policies and
procedures specified in the cardholder agreement they sign in order to obtain
a Government contractor-issued travel charge card. Under the cardholder
agreement currently in effect, the travel charge card bill is due and payable
in full when delivered at the employee's billing address. The employee is
liable to the travel card bank for full payment of all charges authorized
by the employee, independent of any agreement or program for reimbursement
that may exist between the employee and the HHS OPDIV or STAFFDIV. Under
Federal Travel Regulation 301-52.24, employees must pay amounts owed to
the travel card bank in accordance with the cardholder agreement, even if
the HHS OPDIV or STAFFDIV fails to reimburse the employee within 30 days
of submission of a proper voucher.
Note: the cardholder agreement informs employees about how to handle disputed charges on a travel charge card bill. The employee should follow these procedures by submitting a signed Cardholder Statement of Questioned Item form to the bank within 60 days of the statement date on which the original transaction appears. Once the form is received, the bank will issue a temporary credit to the employee's account while the dispute is being researched. While the bank is conducting this investigation, the cardholder does not need to pay the amount of the disputed charge and it will not be considered past due.
Employees may not use the travel charge card to make personal purchases or ATM withdrawals unrelated to official travel. The travel charge card may only be used for official travel and official travel related expenses.
It is HHS policy that the travel charge card may only be used for official travel and official travel related expenses connected with temporary duty travel or relocation. The travel charge card may not be used for local travel expenses, with one exception. HHS offices who authorize rental cars for local travel site visits shall allow their employees to use the travel charge card for renting the car.
Heads of OPDIVs and STAFFDIVs or their designees are responsible for establishing
appropriate management controls over the travel card program to ensure compliance
with Federal Travel Regulation requirements, the supplemental HHS guidance
contained in this chapter, and the HHS task order with the bank.
They are also responsible for providing guidance to their managers on disciplinary
issues, including when employees violate mandatory travel card usage policies.
As part of this internal control system, each OPDIV and STAFFDIV will establish
a network of employees designated as Agency/Organization Points of Contact
(A/OPCs) and issue supplemental procedural guidelines to handle the internal
administration of the travel charge card program within their organization.
A/OPC basic duties will typically include:
9-00-20 LATE PAYMENT PENALTIES FOR
TRAVEL VOUCHERS
HHS employees must submit a travel voucher
to their designated reviewing official: (a) within five working days after
they complete their trip or period of travel; or, (b) every 30 days if they
are on continuous travel status. When an employee submits a travel voucher,
the HHS reviewing or approving official must notify the employee as soon
as practicable (May 1, 2002 performance requirement is within seven working
days) after submission to the first-level reviewing official of any error
(i.e., improper voucher or disallowed expense item) that will prevent payment
within 30 calendar days after submission. If an error is detected when the
voucher is forwarded to the HHS payment office, the HHS payment office must
notify the employee and the approving official of the error within five
business days of receipt. HHS must pay employees for approved expense items
within 30 calendar days after the employee submits a proper travel voucher
to the first-level reviewing official or pay a late payment fee, in addition
to the vouchered amount. All temporary duty and local travel claims are
subject to this requirement. Most relocation allowances are exempt from
this requirement effective for travel on or after May 1, 2000; however,
en route travel expenses and househunting trips are subject to this requirement.
Effective Date: Travel after February 29,
2000
Federal Travel Regulation Guidelines:
The employee will submit a travel voucher
in accordance with OPDIV or STAFFDIV administrative procedures and systems,
such as a hard copy SF-1012 Travel Voucher or an electronic voucher created
through a travel management system. A proper travel voucher will include
the elements specified in the Federal Travel Regulation (FTR), Sections
301-52.1 through 301-52.4, and Appendix C to Chapter 301 - Travel Expense
Information. FTR Sections 301-52.8 through 301-52.11 provide guidance on
when agencies can disallow a travel claim and steps an employee should follow
when a claim is disallowed. In preparing or approving vouchers, employees
and approving officials should review and follow these FTR guidelines and
any supplemental guidance issued by their OPDIV or STAFFDIV.
Typical travel voucher elements (not all inclusive) are:
Common supporting attachments (not all inclusive) include:
Proper travel vouchers must be in the specific format required by the employee's HHS OPDIV or STAFFDIV. Hard copy vouchers must be signed and dated by the traveler and approving official in ink. Electronic vouchers must be submitted under the electronic signature or password controls established by the employee's OPDIV or STAFFDIV.
B. Late Payment Penalties
OPDIVs and STAFFDIVs must establish manual and/or electronic methods for tracking: a) the date when a proper travel voucher is submitted by an employee to his/her first-level reviewing official and b) the date when payment is made, so the payment office will be able to determine if a late payment penalty is due and how much. HHS payment offices will pay late payment penalties on travel voucher amounts under the following conditions: (a) the travel claim has been submitted on a proper voucher, (b) the claimed expense amount has not been disallowed, (c) payment has not been made within 30 calendar days of the employee's submission of a proper voucher to the first-level reviewing official, and (d) the claim is not for a relocation allowance exempted from this requirement in the FTR. Payment will be considered to be made on the settlement date for an electronic funds transfer (EFT) payment or the date of the check for a check payment. If a claimed expense is disallowed by the reviewing/approving official or payment office and, subsequently, is reconsidered and allowed due to the provision of additional supporting facts or documentation by the traveler, the 30-day window for payment will begin on the date when the traveler submits the required, additional supporting facts or documentation to the approving official or payment office, as indicated.
Late payment fees may consist of two elements:
Note: delay or failure by an employee to respond to a finance office's request for banking information to enable voucher payment by EFT, instead of check, will not delay or stop the 30-day window for payment and the assessment of late payment fees.
C. Calculation of Late Payment Fee Equivalent to Card Contractor Late Payment Charges
Under the current bank card contract, the bank may impose a monthly 2.5 percent late fee on outstanding balances for accounts which meet cancellation criteria, when they are between 120 and 180 days old. After 180 days, they are required under banking regulations to charge off the account and refer it to a collection agency; no additional late fees are imposed. This means that when the account reaches 120+ days old, a 2.5 percent late fee may be imposed on the outstanding balance for that billing period. If the account status does not change when it is 150+ days old, a new 2.5 percent late fee may be imposed on the outstanding balance for the next billing period (the balance includes any outstanding late fee from the previous billing period). No additional late fees will be imposed for future billing periods because the account will be charged off by the bank and sent to a collection agency. Therefore, a maximum of two monthly late fees can be used for purposes of calculating this late payment fee.
The payment office will use the following formula to determine if a late payment charge is due under this provision and the amount:
a) if it is less than 120 calendar days since the traveler submitted a proper voucher,
no late payment fee is due under this provision.
b) if it is 120 to 149 calendar days since the traveler submitted a proper voucher, one month's late payment fee under this provision is:
($ amount of allowed expenses on voucher) times (2.5 percent).
EXAMPLE: $2,500 times .025 equals a late payment fee of $62.50.
c) if it is 150 or more calendar days since the traveler submitted a proper voucher,
the maximum two monthly late payment fees under this provision are:
($ amount of allowed expenses on voucher) times 1.025 times 1.025 minus
($ amount of allowed expenses on voucher)
EXAMPLE: $2,500 times 1.025 times 1.025 minus $2,500 equals a late payment
fee of $126.56.
D. Late Payment Fees of Less Than One Dollar
HHS will not pay late payment fees of less than one dollar.
E. Finance Office Tax Reporting of Late Payment FeesThe Internal Revenue Service requires different tax reporting treatment for the two types of late payment fees for travel vouchers:
9-00-30 COLLECTION OF UNDISPUTED, DELINQUENT TRAVEL CARD DEBTS
The Federal Travel Regulation allows, but does not require, agencies to collect undisputed, delinquent travel card debts from their employees' pay for the bank contractor. HHS will not perform this debt collection activity for the bank at this time. Therefore, HHS OPDIVs and STAFFDIVs may not initiate any action to collect undisputed delinquent amounts owed by employees, if requested in writing by the travel card bank contractor.
Effective Date: Travel after February 29, 2000
Federal Travel Regulation Guidelines:
- FTR Amendment 90, Part 301-54 and Part 301-76 Collection of Undisputed Delinquent Amounts Owed to the Contractor Issuing the Individually Billed Travel Charge Card
9-00-40 INCOME TAX REIMBURSEMENT ALLOWANCES FOR LONG-TERM TEMPORARY DUTY TRAVEL
HHS employees (and spouse, if filing jointly) are eligible to receive an Income Tax Reimbursement Allowance (ITRA) if: (a) the employee is in a temporary duty travel status at one location for a period exceeding one year and (b) the employee (and spouse, if filing jointly) incur Federal, State, or local income taxes on amounts received as reimbursement for official travel expenses. Also, for tax years 1993 and 1994 only, HHS employees are eligible for reimbursement of an income tax penalty and/or interest payment due to incorrect income tax withholdings by HHS. Eligible employees must file a travel claim with their HHS OPDIV or STAFFDIV in accordance with their procedural requirements to be reimbursed.
Effective Date: January 1, 1993. It applies to all employees on a long term temporary duty assignment who incurred income taxes on money received for travel expenses.
Federal Travel Regulation Guidelines:
- FTR Interim Rule 7, Part 301-11, Subpart E-Income Tax Reimbursement Allowance (ITRA), Tax years 1993 and 1994
- FTR Interim Rule 7, Part 301-11, Subpart F-Income Tax Reimbursement Allowance (ITRA), Tax Years 1995 and Thereafter
- Chapter 302-11.10 Claims for payment and supporting documentation and verification (Relocation Income Tax Allowances)
A. Documentation Required to Support ITRA Claims
Employees will submit their claims on a travel voucher in accordance with the HHS OPDIV's or STAFFDIV's travel management system's procedures. They will provide standard documentation required to support an income tax allowance claim, as defined in Federal Travel Regulation Chapter 302-11.10:
- Certified Statement concerning income tax information being reported to HHS on this claim (see FTR 302-11.10 (a) for sample wording), signed by employee (and spouse, if filing jointly)
- Supporting Documentation (copies of W-2 and 1099 forms, and completed IRS Tax Return-Form 1040 if the claim is for a past tax year)
For claims involving income taxes for tax years prior to 1999, employees should provide information or documentation (such as employee's copy of pertinent travel orders) to enable the HHS reviewing office to associate the claim with applicable HHS travel orders.
For claims involving reimbursement of tax penalties and interest resulting from incorrect income tax withholdings by HHS for tax years 1993 and 1994 only, employees should provide documentation received from the IRS identifying the tax penalty and/or interest.
B. Obligation of Funds for ITRA Claims
ITRA claims should be charged to the appropriation of the fiscal year in which the taxable temporary duty expenses associated with the ITRA were incurred, regardless of when the ITRA claim is vouchered or paid.
Example 1: ITRA claim is filed January 2000 for taxes incurred on temporary duty travel extending from July 1999 through November 1999. You will fund that part of the allowance pertaining to the July 1999 - September 1999 period from the FY 1999 appropriation and fund that part of the allowance pertaining to October 1999 - November 1999 from the FY 2000 appropriation.
Example 2: ITRA claim is filed January 2000 for taxes incurred on temporary duty travel extending from March 1996 through July 1996. You will fund the ITRA from the FY 1996 expired appropriation, which is available for upward adjustments of obligations.
Example 3: ITRA claim is filed January 2000 for taxes incurred on temporary duty travel extending from January 1993 through August 1993. This appropriation is closed and no longer available for obligations or payments. Therefore, you will fund the ITRA from the current appropriation (FY 2000) in accordance with 31 U.S.C. 1553.
9-00-50 HHS TRAVEL AND RELOCATION TEST PROGRAMS
Subject: Requests to GSA for authority to conduct a travel or relocation test program.
Effective Date: May 27, 1999
Federal Travel Regulation Guidelines:
- FTR Amendment 83, Part 300-80 Travel and Relocation Expenses Test Programs
A. Requests for Permission from GSA to Administer a Test Program
- For test programs within the Office of the Secretary, requests will be submitted to GSA under the signature of the Assistant Secretary for Management and Budget.
- For test programs within OPDIVs, requests will be submitted to GSA under the signature of the Head of the OPDIV or his/her senior level designee. An advance draft copy will be submitted via memorandum to the Director, Office of Financial Policy, Office of the Assistant Secretary for Management and Budget (ASMB), for review and comment prior to submission to GSA. OPDIVs should allow approximately 21 calendar days for a response from ASMB.
- OPDIVs whose travel management system is administered by the Program Support Center (PSC) must obtain concurrence by the PSC's CFO before forwarding their request to GSA. This is to ensure that the travel management system will be able to support the travel or relocation program changes being proposed.
- OPDIVs will comply with labor-management requirements to obtain union concurrence if the pilot program will involve bargaining unit employees.
9-00-60 PAYMENT AUDITS OF TRANSPORTATION BILLS
HHS OPDIVs, which pay transportation bills, must establish and/or maintain an approved prepayment audit program or obtain a waiver of this requirement from GSA in accordance with GSA regulations. Transportation bills cover services for the movement of products, people, household goods, and any other object as well as activities directly related to or supporting that movement, such as: storage, crating, or connecting appliances. They include express, courier, and small package shipments of objects. Transportation audits entail a thorough review and validation of bills by examining the validity, propriety, and conformity of the charges with tariffs, quotations, agreements, or tenders, as appropriate. Audit procedures must prevent duplicate payments and only allow payment for authorized services when the bill is complete with required documentation.
OPDIVs who perform prepayment audits must audit all transportation bills and payments that are not covered by an approved waiver. Exception: OPDIVs may use a statistical sampling technique to audit transportation bills at or below $2,500. Prepayment audit documentation must be forwarded monthly to GSA Audit Division, which will store it for 3 years under the General Records Schedule 9, Travel and Transportation.
Under the Prompt Payment Act, OPDIVs must notify the transportation service provider of any billing errors and related adjustments it will make in payment via an electronic or written statement of difference within 7 days of receipt of a transportation bill. This notice must contain the information elements specified in the GSA regulation.
OPDIVs, which have a waiver for some or all transportation bills, must forward all paid, unaudited transportation bills, with required information annotated on the bills, to the GSA Audit Division for a postpayment audit.
If the OPDIV conducts prepayment audits of its transportation bills, the Finance Office certifying officer is liable for verifying transportation rates, freight classifications, and other information on the bill and for any overpayment made. If the OPDIV has a waiver from GSA and forwards bills for postpayment audit to GSA Audit Division, the Finance Office certifying officer has no liability for verifying transportation rates, freight classifications, and other information on the bill or for any overpayment made.
Effective Date: October 1, 2000.
Federal Management Regulation Guidelines:
- Federal Property Management Regulation Amendment G-115, Transportation Payment and Audit
- Federal Management Regulation Part 102-118, Subpart D, Prepayment Audits of Transportation Services
- Federal Management Regulation Part 102-118, Subpart E, Postpayment Transportation Audits
A. Coordination with the Department for Approval of Prepayment Audit Program Plans or Requests to GSA for Waiver
The Chief Financial Officer (CFO) for each HHS OPDIV, which pays transportation bills, is responsible for the development and implementation of a Prepayment Audit Program Plan that meets the requirements of the Federal Management Regulation, Subpart D, Prepayment Audits of Transportation Services, unless a waiver is being requested or has been granted. It is HHS policy that CFOs may establish a minimum dollar threshold for transportation bills subject to prepayment audit up to $2,500. The initial Prepayment Audit Program Plan and any future planned changes to approved Plans should be submitted by the CFO to the Deputy Assistant Secretary for Finance (DASF) for review and submission to the GSA Audit Division for final approval.
The Chief Financial Officer (CFO) for each HHS OPDIV, which pays transportation bills, is responsible for determining whether or not a waiver for some or all bills is justified and for submitting a written Request for Waiver through the Deputy Assistant Secretary for Finance to the GSA Audit Division for approval. The Request for Waiver must meet the requirements of the Federal Management Regulation, Subpart D, Prepayment Audits of Transportation Services. It must identify the mode or modes of transportation to which the waiver will apply and a detailed explanation as to why a waiver should be granted, such as: cost-effectiveness, Government efficiency, public interest, agency mission, or not feasible for the OPDIV to implement. GSA will provide a written response to the HHS request within 30 days of receipt. Waivers cannot exceed a two-year period. CFOs of OPDIVs must reapply with a new Request for Waiver every two years to document to the Department and GSA that conditions still warrant a waiver.
Sample Individual Exemption Memorandum
(HHS Operating Division Name on Letterhead)
Date: Month, Day, Year
To: Employee A
From: Director, Division X
Subject: Exemption from Mandatory Travel Card Use
This is to document that you are granted an indefinite exemption from mandatory travel card use for the following reason: your individual government travel card was canceled because of non-payment of undisputed, delinquent account balances. This exemption will continue as long as you are not eligible to have your government travel card reinstated into active status.
Please be advised that you still must use a government contract city-pair fare for airline and other common carrier transportation according to Federal Travel Regulation 301-10.107. City-pair fares can be purchased through our agency's centrally-billed charge card account. Please contact Employee B, our office's designated travel card point of contact, if you need assistance with using the centrally-billed account.
Official C