Reimbursement of Vendors for Prepaid Freight Charges

The Air Force requested that GAO modify a prior decision which authorized Government agencies discretionary authority to reimburse vendors, without documentation, for prepaid freight charges of less than $25. The Air Force asked that the $25 limit be increased to $100 because the costs of transportation and administrative processing have risen significantly in recent years. While GAO prescribed the audit and documentation requirements for reimbursement of the shipping charges cited, the function has since been transferred to the General Services Administration (GSA). Since 1975, GSA, in consultation with the internal GAO organization, has reviewed such questions. Thus, GAO concluded that GSA would have the authority to grant exceptions to the Air Force request.