Use of Cash To Procure Official Passenger Transportation Services

GENERAL SERVICES ADMINISTRATION

41 CFR Part 101-41

[FPMR Amendment G-110]

RIN 3090-AF53

Use of Cash To Procure Official Passenger Transportation Services

AGENCY: Federal Supply Service, GSA.

ACTION: Final rule.

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SUMMARY: This regulation amends the Federal Property Management

Regulations (FPMR) to grant agency heads or their designated

representatives authority to approve all cash purchases of passenger

transportation services. Although agency heads or their designated

representatives currently have permanent authority to approve emergency

cash purchases, their authority to approve nonemergency cash purchases

of transportation services in excess of $100 was temporary and expired

on July 31, 1995 (see FPMR Temporary Regulation G-57, Supp. 1). This

amendment gives agencies permanent authority to approve all cash

purchases of passenger transportation services.

EFFECTIVE DATE: August 1, 1995.

FOR FURTHER INFORMATION CONTACT:

John W. Sandfort, Chief, Policy, Procedures, and Liaison Branch, Office

of Transportation Audits (202-219-3164).

SUPPLEMENTARY INFORMATION: FPMR Temporary Regulation G-57, published in

the Federal Register on July 26, 1993 (58 FR 39664), invited agency

comments through December 31, 1993, concerning the revised cash policy.

Comments were

[[Page 56247]]

received from one Federal agency which asked that GSA clarify the

policy in Secs. 101-41.203-1 and 101-41.203-2(d) by indicating the

limitations to be applied against a traveler for purchasing

transportation tickets from other than a carrier or Travel Management

Center (TMC) under GSA contract. This agency also suggested that the

cash limit be raised from $100 to $300.

The Federal Travel Regulation contains in 41 CFR Part 301-15 the

general policy regarding use of travel agents and TMC's by Federal

executive agencies and specifies in Sec. 301-3.4 when a one-time

exception may be granted, the reimbursement amount allowed, and when

reimbursement denial is appropriate. We believe incorporation of this

policy by reference in Sec. 101-41.203-1 is sufficient and that

verbatim repetition is not needed.

Additionally, we are concerned that raising the cash limit would

increase the likelihood of more travelers using cash to avoid use of

contract fares, make audit of passenger transportation costs

impracticable, and conflict with the Government's overall policy of

reducing the use of cash. For these reasons, we have determined that it

would not be prudent to raise the cash limit. Agencies should be

mindful that a cash purchase which exceeds the established limit should

be the occasional exception and not the standard.

The General Services Administration (GSA) has determined that this

rule is not a significant regulatory action for the purposes of

Executive Order 12866.

Regulatory Flexibility Act

Pursuant to the Regulatory Flexibility Act, it is determined that

this rule will not have a significant economic impact on a substantial

number of small entities. Therefore, no regulatory flexibility analysis

has been prepared.

The reporting forms required by this regulation are not subject to

the provisions of Pub. L. 96-511, the Paperwork Reduction Act of 1980,

and Subpart 201-45.6 of this title.

List of Subjects in 41 CFR Part 101-41

Accounting, Air carriers, Claims, Maritime carriers, Passenger

services, Railroads, Transportation.

For the reasons set out in the preamble, 41 CFR Part 101-41 is

amended as follows:

PART 101-41--TRANSPORTATION DOCUMENTATION AND AUDIT

1. The authority citation for Part 101-41 continues to read as

follows:

Authority: 31 U.S.C. 3726 and 40 U.S.C. 486(c).

Subpart 101-41.2--Passenger Transportation Services Furnished for

the Account of the United States

2. Section 101-41.203-1 is amended by revising the heading and

paragraph (a) to read as follows:

Sec. 101-41.203-1 Procurement from carriers.

(a) All passenger transportation services shall be procured with a

GTR, Government contractor-issued charge card, or centrally billed

account unless otherwise provided in Sec. 101-41.203-2 of this subpart.

Agency heads or their designees may specify which of these Government-

provided methods of payment, or combination thereof, travelers will use

to procure official passenger transportation services. Such services,

regardless of the procurement method specified by the agency, must be

procured directly from either a carrier or a travel agent. A travel

agent may be used only as prescribed in the Federal Travel Regulation

(FTR), 41 CFR chapters 301-304 or applicable regulations of the

Department of Defense (DOD).

* * * * *

3. Section 101-41.203-2 is revised to read as follows:

Sec. 101-41.203-2 Use of cash.

(a) A GTR or Government excess baggage authorization ticket (GEBAT)

shall not be used to procure passenger transportation services costing

$10 or less, exclusive of Federal transportation tax, and to pay air

excess baggage charges of $15 or less for each leg of a trip (see

Sec. 101-41.203-6), unless special circumstances justify their use. The

contractor-issued charge card or centrally billed account shall be used

for these purchases when practical. When not practical, use of cash may

be authorized or approved. To procure passenger transportation services

costing more than $10 but not more than $100, exclusive of Federal

transportation tax, the GTR, Government contractor-issued charge card,

or centrally billed account shall be used. Cash may be used for these

purchases only when none of the other procurement methods is practical.

For passenger transportation services costing more than $100, excluding

Federal transportation tax, only a GTR, Government contractor-issued

charge card, or centrally billed account may be used unless otherwise

exempted in this subpart.

(1) When the use of cash is authorized to purchase the services set

forth in paragraph (a) of this section, cash payment may be made with a

travel advance in accordance with provisions of the FTR (41 CFR 301-

10.3).

(2) Any credit card, other than the Government contractor-issued

charge card, and all travelers checks shall be considered the

equivalent of cash and subject to the $100 limitation provided in

paragraph (a) of this section.

(Note--To protect the integrity of the Government charge card

program designed for payment of allowable travel and transportation

expenses incurred in connection with official travel, travelers

shall be discouraged from using personal credit cards.)

(3) Procurement of passenger transportation services under the

group or charter provisions of the FTR (41 CFR 301-3.4(b)(2)) is not

subject to the provisions of this subpart.

(4) Authorization under paragraph (b) of this section to use cash

in excess of $100 should be obtained prior to travel. In the absence of

advance written authorization or approval, passenger transportation

services exceeding $100 shall be purchased in accordance with policies

and procedures prescribed in applicable Government travel regulations.

It is a traveler's responsibility to know that use of a GTR, Government

contractor-issued charge card, or centrally billed account may be

required to obtain certain discount fares and to comply with the

mandatory provisions of the FTR governing the use of contract airline

service. Cash shall not be used to circumvent the regulations governing

airline contracts.

(b) Cash purchases of transportation services in excess of $100

shall be discouraged and each agency shall establish procedures to

encourage Federal travelers to use a Government contractor-issued

charge card, centrally billed account, or GTR instead of cash to

purchase passenger transportation services. Agencies shall monitor and

control cash purchases of transportation services in a manner that will

ensure such purchases are kept to a minimum.

(1) When a Federal traveler does not use a GTR, Government

contractor-issued charge card, or centrally billed account, heads of

agencies, or their designated representatives, may in limited instances

authorize travelers to exceed the $100 limitation when procuring

passenger transportation services.

(i) Each agency shall establish guidelines for approval of cash

purchases in excess of $100 and determine if the use of cash is due to:

(A) emergency circumstances (where use of a GTR, Government

contractor-issued charge card, or centrally billed account was not

possible); or

[[Page 56248]]

(B) agency failure to advise a new employee and/or invited or

infrequent traveler of proper procedures for purchasing transportation

services.

(ii) If a cash purchase is determined to have been made under a

nonemergency circumstance, reimbursement shall not exceed the cost

which would have been properly chargeable to the Government if the

transportation services had been procured using one of the Government-

provided methods of procurement. Should a Federal employee make cash

purchases without just cause or deliberately attempt to circumvent use

of GSA air or rail service programs for personal convenience or some

other reason not consistent with sound travel management practices, the

agency may, as provided in 31 U.S.C. 3702, send all documents related

to the travel to the Comptroller General, General Accounting Office,

Claims Section, Washington, DC 20548, for a decision on the traveler's

right to reimbursement.

(2) Delegation of authority for authorizing and approving the use

of cash in excess of $100 for the procurement of transportation

services shall be held to as high an administrative level as

practicable to ensure adequate consideration and review of the

circumstances. Any such delegation shall be made in writing and copies

shall be retained to permit monitoring of the system. The agency shall

make delegation of authority records available for examination by GSA

auditors.

(3) To justify the use of cash in excess of $100 when procuring

passenger transportation services, both the agency head, or the

designated representative, and the traveler shall certify on the travel

voucher the necessity for such use.

(4) After a traveler has been reimbursed for a cash purchase,

copies of travel authorizations, ticket coupons, and any ticket refund

applications, or SF's 1170, Redemption of Unused Tickets, shall be

forwarded for audit to the General Services Administration,

Transportation Audit Division (FWA), Attention: Code E, Washington, DC

20405.

(5) The agency shall maintain travel vouchers and make them

available for site audit by GSA auditors. General Records Schedule 9,

Travel and Transportation Records (see 36 CFR 1228.22), provides

instructions for the disposal of travel vouchers.

(c) GSA (FWA) will report to the appropriate military or civilian

agency travel manager for appropriate action suspected travel

management errors and/or misroutings which result in higher travel

costs to the Government.

(d) A traveler who uses cash to purchase individual passenger

transportation services shall procure such services directly from the

carrier or from a travel agent under GSA or DOD contract (see Sec. 101-

41.203-1), and shall account for those expenses on their travel

vouchers, furnishing passenger coupons or other evidence as appropriate

in support thereof. Moreover, travelers shall assign to the Government

the right to recover any excess payments involving carriers' use of

improper rates. That assignment must be preprinted or otherwise

annotated on the travel voucher and shall be initialed by the traveler.

(e) Travelers using cash to procure passenger transportation

services shall be made aware by their employing agencies of the

provisions of Sec. 101-41.209-4 concerning a carrier's liability for

liquidated damages because of failure to provide confirmed reserved

space. Also, travelers using cash shall adhere to the regulations of

the General Accounting Office (4 CFR 52.2) regarding the use of U.S.-

flag vessels and air carriers (see Sec. 101-41.203-1(b)).

Appendix to Subchapter G [Amended]

4. The appendix to subchapter G is amended by removing FPMR Temp.

Reg. G-57 and G-57 Supp. 1.

Dated: October 26, 1995.

Roger W. Johnson,

Administrator of General Services.

[FR Doc. 95-27475 Filed 11-7-95; 8:45 am]

BILLING CODE 6820-24-M