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Transportation Audits Prepayment Audits

The federal government spends billions of dollars each year transporting passengers and goods by air, sea, and land. In the 1940's, legislation was passed requiring all federal agencies to pay transportation bills upon presentation. Since that time, GSA has been auditing bills after payment. Funds recovered as a result of postpayment audits have been returned to the Treasury.

The passage of Public Law 99-627 granted GSA the authority to audit bills prior to payment and authorized GSA to delegate this authority to other agencies. By auditing prior to payment, agencies can avoid excess transportation charges up front, using the resultant savings to procure additional transportation services. Effective October 2000, Public Law 105-264 required that all federal agencies must conduct prepayment audits of all transportation billings.

The Financial and Business Solutions (FABS) Schedule 520 provides the tools needed to fulfill this requirement. Under this schedule is Special Item Number 520-10  which identifies experienced GSA contractors capable of conducting recovery audit services. Agencies can conduct prepayment audits on their own, but utilizing a contractor under this schedule will make completion of the task quicker, easier, and more efficient.

GSA has issued instructions and guidelines on the mandatory prepayment audit procedures. Any request for a waiver to these requirements must be made in writing to the General Services Administration, Office of Governmentwide Policy (M), 1800 F Street, NW, Washington, DC 20405. 


Doc ID Name Format Size Publish Date
  Public Law 105-264 Travel and Transportation Reform Act of 1998 PDF 132k 10/19/1998
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Last Modified 6/15/2004