Need To Better Control and Account for Refunds for Unused Transportation Services

AFMD-83-83: Published: Jul 27, 1983. Publicly Released: Jul 27, 1983.

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GAO reviewed the results of Army and Navy central systems for controlling and accounting for refunds from passenger carriers for unused transportation services.

GAO found that, although the Department of Defense requires efficient handling and cancellation of unused tickets, the review identified certain recurring problems, including: (1) unused tickets were not promptly submitted to the central refund processing center which unnecessarily delayed collections; (2) transportation officers were not always voiding unused tickets; and (3) ticket refund receivables were not always accounted for. GAO believes that the accounting system can be improved by periodically providing feedback to appropriate headquarters on unused tickets that are submitted late or have not been canceled. Further, the Army and the Navy should establish accounts receivable for refunds from carriers.

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