B-162840, MAY 20, 1968
Highlights
CANNOT BE PERFORMED WITHOUT CLEAR EVIDENCE OF THE ACTUAL AIR AND SURFACE ROUTE OF MOVEMENT ON EACH SHIPMENT FOR WHICH THE GOVERNMENT IS BILLED. AIR FREIGHT FORWARDING COMPANIES HAVE RECEIVED AND WILL CONTINUE TO RECEIVE FROM THIS OFFICE CLAIMS FOR REFUND OF OVERCHARGES OR REQUESTS FOR ADDITIONAL EVIDENCE TO SUPPORT CHARGES BILLED. BECAUSE THE AVAILABLE AUDIT RECORD INDICATES THAT THE ACTUAL ROUTE AND SERVICES PROVIDED ARE SUBJECT TO A LOWER CHARGE THAN WAS BILLED AND PAID. UNDER PRESENT CONDITIONS WE HAVE NO RECOURSE BUT TO INVESTIGATE THE FACTS RELATING TO EACH SHIPMENT AND TO STATE OVERCHARGES. IT WOULD FACILITATE THE HANDLING OF THE PERTINENT ACCOUNTS IF EACH AIR FREIGHT FORWARDER SHIPMENT BILLED TO THE GOVERNMENT WAS SUPPORTED BY DOCUMENTARY EVIDENCE OF THE ACTUAL ROUTE OF MOVEMENT.
B-162840, MAY 20, 1968
TO THE HEADS OF DEPARTMENTS, INDEPENDENT ESTABLISHMENT AND OTHERS CONCERNED:
SUBJECT: DOCUMENTARY SUPPORT FOR AIR FREIGHT FORWARDERS BILLS FOR GOVERNMENT TRAFFIC
THE GENERAL ACCOUNTING OFFICE HAS COMPLETED A STUDY OF THE PERTINENT FACTORS THAT MUST BE CONSIDERED IN AUDITING CHARGES OF AIR FREIGHT FORWARDING COMPANIES FOR MOVING GOVERNMENT FREIGHT. OUR STUDY INCLUDED ANALYSES OF: THE FEDERAL AVIATION ACT OF 1958; RULES, REGULATIONS, ORDERS, AND DECISIONS OF THE CIVIL AERONAUTICS BOARD RELATING TO AIR FREIGHT FORWARDER OPERATIONS; AIR FREIGHT FORWARDER TARIFFS; CERTAIN COURT DECISIONS PERTAINING TO AIR FREIGHT CARRIAGE; AND GOVERNMENT BILLS OF LADING AND OTHER SUPPORTING INFORMATION ON SPECIFIC AIR FREIGHT FORWARDER SHIPMENTS. WE ALSO CONSULTED THE STAFF OF THE BUREAU OF ENFORCEMENT OF THE CIVIL AERONAUTICS BOARD, AND EXAMINED TRANSPORTATION RECORDS AND DISCUSSED VARIOUS AIR FREIGHT FORWARDER SHIPMENTS WITH TRANSPORTATION OFFICERS AT SELECTED MILITARY INSTALLATIONS.
FROM OUR STUDY, WE CONCLUDE THAT A SATISFACTORY AUDIT OF AIR FREIGHT FORWARDER BILLS FOR GOVERNMENT TRAFFIC, CONSISTENT WITH OUR RESPONSIBILITIES UNDER 31 U.S.C. 71, 49 U.S.C. 66, AND OTHER PROVISIONS OF LAW, CANNOT BE PERFORMED WITHOUT CLEAR EVIDENCE OF THE ACTUAL AIR AND SURFACE ROUTE OF MOVEMENT ON EACH SHIPMENT FOR WHICH THE GOVERNMENT IS BILLED. AIR FREIGHT FORWARDING COMPANIES HAVE RECEIVED AND WILL CONTINUE TO RECEIVE FROM THIS OFFICE CLAIMS FOR REFUND OF OVERCHARGES OR REQUESTS FOR ADDITIONAL EVIDENCE TO SUPPORT CHARGES BILLED, BECAUSE THE AVAILABLE AUDIT RECORD INDICATES THAT THE ACTUAL ROUTE AND SERVICES PROVIDED ARE SUBJECT TO A LOWER CHARGE THAN WAS BILLED AND PAID. IN STILL OTHER CASES, WE FIND IT NECESSARY TO OBTAIN ADDITIONAL INFORMATION ON AIR FREIGHT FORWARDER SHIPMENTS FROM FIELD SURVEYS AND CORRESPONDENCE WITH GOVERNMENT SHIPPING OFFICES. UNDER PRESENT CONDITIONS WE HAVE NO RECOURSE BUT TO INVESTIGATE THE FACTS RELATING TO EACH SHIPMENT AND TO STATE OVERCHARGES, IF SO DETERMINED, ON THE BEST AVAILABLE EVIDENCE.
ON FUTURE SHIPMENTS, IT WOULD FACILITATE THE HANDLING OF THE PERTINENT ACCOUNTS IF EACH AIR FREIGHT FORWARDER SHIPMENT BILLED TO THE GOVERNMENT WAS SUPPORTED BY DOCUMENTARY EVIDENCE OF THE ACTUAL ROUTE OF MOVEMENT. THE BEST SUCH EVIDENCE FOR EACH SHIPMENT IS A COPY OF THE AIR WAYBILL ISSUED BY THE DIRECT AIR CARRIER TO THE AIR FREIGHT FORWARDER FOR THE AIR MOVEMENT, SHOWING ORIGINA AND DESTINATION AIRPORT AND THE RELATED GOVERNMENT BILL OF LADING NUMBER OF THE SHIPMENT/S) IT IS SUPPORTING.
ACCORDINGLY, BEGINNING WITH BILLS PRESENTED ON AND AFTER JULY 1, 1968, EVERY SHIPMENT BILLED BY AN AIR FREIGHT FORWARDER TO THE GOVERNMENT MUST BE ACCOMPANIED BY A COPY OF THE PERTINENT DIRECT AIR CARRIER'S AIR WAYBILL ATTACHED TO THE ORIGINAL RELATED GOVERNMENT BILL OF LADING. ALL RESPONSIBLE GOVERNMENT OFFICERS ARE HEREBY NOTIFIED NOT TO APPROVE FOR PAYMENT ANY AIR FREIGHT FORWARDER BILLS DATED JULY 1, 1968, OR LATER COVERING SHIPMENTS NOT SUPPORTED BY THE UNDERLYING DIRECT AIR CARRIER'S AIR WAYBILL, BUT TO RETURN SUCH BILLS TO THE FORWARDER FOR REBILLING WITH PROPER SUPPORT. ALL INTERESTED AIR FREIGHT FORWARDING COMPANIES HAVE BEEN NOTIFIED OF THIS REQUIREMENT.