Since the enactment of the Transportation Act of 1940, GSA’s Transportation Audits Division has been required to perform a postpayment audit on all federal agency paid transportation bills. A postpayment audit is a thorough review and validation of transportation related bills. During an audit, bills are examined for validity, propriety, and conformity of the charges using tariffs, quotations, agreements, or tenders as appropriate.
Federal agencies are required to submit all paid transportation bills to GSA in compliance with agency submissions as instructed in the U.S. Government Freight Transportation [PDF, 17MB] and U.S. Passenger Transportation [PDF, 1105K] handbooks. Upon receipt of agency paid transportation bills, GSA examines and audits them to confirm that they contain the lowest charges applicable. A postpayment audit ensures that the bills are valid and proper, while in compliance with rates, tariffs, quotations, agreements, tenders, and/or other applicable rate authorities.
GSA’s postpayment audit include, but is not limited to:
- Audit selected TSP bills after payment;
- Audit selected TSP bills before payment, as needed to protect the Government’s interest (i.e.; bankruptcy, fraud);
- Examine, settle, and adjust accounts involving payment for transportation and related services for the account of agencies;
- Adjudicate and settle transportation claims by and against agencies;
- Offset an overcharge by any TSP from an amount subsequently found to be due that TSP;
- Issue a Notice of Overcharge stating that a TSP owes a debt to the agency; and
- Issue a GSA Notice of Indebtedness when a TSP owes an ordinary debt to an agency.
The Transportation Audits Division, in conjunction with three audit contracting companies, review an average of over 12 million transportation invoices per year, recovering millions of dollars in the process. Funds recovered because of post payment audits are returned to the Treasury Department.