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General Services Administration's Actions To Collect and Improve Controls Over Refunds Owed by the Airline Industry

AFMD-82-33 Published: Dec 18, 1981. Publicly Released: Jan 06, 1982.
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Highlights

GAO was asked to review the system used by the Nation's air carriers to reimburse the Government when higher priced tickets purchased with Government Transportation Requests were exchanged for tickets of lower values. Specifically, GAO was asked to establish why over $3 million due the Government was outstanding and what actions have been taken by the General Services Administration (GSA) to recover refunds since it has Government-wide responsibility for the travel program. Consistent with this request, GAO limited its review to those refunds owed the Government because Federal travelers changed their itinerary or changed from a higher to a lower class of service. GAO did not address the problem of entirely unused tickets.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
General Services Administration The Administrator of General Services should establish from records available to the Federal agencies and the airlines the refund amounts owed by each carrier and require carriers to make prompt payment.
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
General Services Administration The Administrator of General Services should make sure affected travelers know their responsibilities regarding refunds due the Government, and hold them accountable for complying with established refund procedures.
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
General Services Administration The Administrator of General Services should confer with individual airlines or airline associations about the need for carriers to obtain refund application documents associated with ticket downgrades and routing changes, bearing in mind the applicable statute of limitations.
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
General Services Administration The Administrator of General Services should monitor agencies' refund policies, programs, and procedures to determine their adequacy and effectiveness to ensure that all refunds due the Government are paid promptly.
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
General Services Administration The Administrator of General Services should work with Federal agencies to establish refund receivables in accordance with accrual accounting requirements and encourage them to aggressively pursue collection of all refunds not paid promptly.
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.

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Topics

Air travel allowancesAirlinesCollection proceduresCommercial aviationFare discountsFederal fundsFinancial managementRefunds to governmentTransportation ratesFederal agencies