OMB issues rules curbing premium travel

The Office of Management and Budget has released a memorandum laying out new policies to curb federal employees' abuse of premium travel that were revealed in a September report.

The Government Accountability Office report (GAO-07-1268) showed that 67 percent of first- and business-class travel by federal employees was not properly authorized or justified and workers spent at least $146 million on improper premium-class air travel between July 2005 and June 2006. The watchdog agency charged OMB and the General Services Administration with guiding agencies to increase internal controls and oversight.

OMB Deputy Director for Management Clay Johnson wrote that the memo served as "a reminder to the heads of departments and agencies of the premium-class travel requirements, and to reinforce the importance of having clearly defined internal controls in place regarding when the use of premium-class accommodations is appropriate."

Johnson asked agencies to implement several new premium-class travel policies immediately. One would require all requests to be approved by an employee who was at least at the same job level as the traveler or by an office designated for travel approval. The GAO report found that some senior-level executives had their travel approved by subordinates.

The memo also instructed agencies to issue internal guidelines on when mission criteria and intent call for premium travel, and unless the traveler has a lifelong disability, to require annual certifications of a disability and to prohibit blanket premium-travel authorizations. Additionally, agencies must restrict premium travel for both temporary duty and relocation if the employee is not required to report for duty the next day.

The memo stated that agencies must confirm implementation of these new policies no later than March 31.

Agencies are anticipating further regulations on premium travel from GSA and OMB. GSA is revising its Federal Travel Regulations in light of GAO's recommendations and preparing agency guidance to collect and report on business-class travel.

In the memo Johnson added that OMB will begin working with agencies to develop a risk-based approach to reviewing, auditing and reporting on premium-class travel, as recommended in the GAO report.

While GAO has deemed more regulations and oversight were necessary, Johnson wrote that "agency personnel (e.g., the approving official) also have a responsibility to ensure that other conditions surrounding the request for and use of premium-class accommodations are reasonable and necessary given the circumstances of the travel and/or the cost of the travel."

Lawmakers took note of the GAO report when it was released in September 2007, and provisions to curb air travel abuse emerged from both chambers of Congress. The Senate passed a provision from Sens. Jim DeMint, R-S.C., and Claire McCaskill, D-Mo., that would prohibit federal employees from using appropriated funds to purchase premium-class plan tickets unless justified under existing regulations. The provision was included in the fiscal 2008 omnibus spending bill but will apply only to employees of certain agencies, including the Commerce and Justice departments, NASA, and the National Science Foundation.