Charge Rule Frustrates, Confuses Travelers
ome government travelers and travel managers have been thrown for a loop by a new law that requires use of a government-issued charge card for official travel. They're worrying about things like:
- What happens if the bill is due and the government hasn't reimbursed me?
- How will having a government charge card affect my credit rating?
- What if I can't use a charge card - because it's not accepted, or the system is down, or for some other reason - will I not be reimbursed?
- Does this mean I can't get a cash advance and pay with cash?
- What will happen to travelers who have bad credit ratings?
The General Services Administration regulations originally were scheduled to go into effect Jan. 1. On Jan. 5, GSA pushed back the start date to Feb. 29 to allow agencies more time to prepare travelers for the change. Two days after the Feb. 29 deadline, DoD announced its own delay, giving its civilian employees and service members until May 1 to get ready for mandatory card use. GSA made it clear that that will be the final extension granted.
Charge cards are not required for expenses that cannot be paid with a charge card - such as laundry, parking, local transportation and tips - or for meals and incidentals in places where the card is not accepted. Each agency also can grant its own exemptions.
To allay travelers' concerns, GSA requires agencies to reimburse employees within 30 calendar days of receiving a voucher. Agencies that don't reimburse promptly must pay interest to the traveler at the current Treasury rate and pay the late fee that appears on the card.
But some federal employees point out that travel schedules and billing cycles often coincide to make a 30-day reimbursement too late, forcing them to pay bills with personal funds.
Others are worried about the times when a card, while accepted, doesn't work. Army engineer James Barnett, for example, says he's run into trouble many times when on travel from Fort Huachuca, Ariz. It usually happens when the phone lines or computers are busy and won't allow approval of government-issued cards or when a card's magnetic strip won't work.
"The attendant expects you to either pull out another card or to pay cash," says Barnett. Once, when he asked the clerk to manually key in the numbers, the clerk told Barnett he would have to wait for the manager. That would have meant missing his plane, so he handed over a personal card.
Some federal travelers object to the card requirement as an invasion of privacy or because they don't want to take on a government financial obligation. "It could create a tremendous financial burden on the employee," says Washington-based Navy lawyer Mark Wilkoff. "This transfer of obligation from the government to the employee is at best unfair and at its worst may be an unconstitutional taking of property. In any case, it is sure to result in litigation and demoralize government employees."
And Air Force Maj. David Hidinger of Kirtland Air Force Base in New Mexico is embroiled in a dispute about charge card fees. The accounting and finance office and the charge card company disagree about the fees charged for a cash advance. "I find it incredibly unfair," says Hidinger, "that I am ordered to use the government charge card in lieu of my own resources or credit cards, and am then expected to pay additional fees for the privilege."
Rep. Steve Horn, R-Calif., sponsor of the 1998 Travel and Transportation Reform Act, asks federal workers to be patient. "This is a new procedure that will require some adjusting for those who travel on the government's business," says Horn. "But over the long run, this new policy will simplify the reimbursement process, reduce paperwork and give the government greater access to volume discounts, saving taxpayers as much as $20 million a year."
"Although that may seem like small savings in the vast federal budget, it is the kind of practical, common-sense approach that can . . . allow us to focus limited tax dollars on genuine priorities," Horn adds.
2000 Per Diem: Looking Up
Federal travelers attending conferences can pay up to 25 percent more than the standard lodging per diem rate under regulations that went into effect Jan. 14. GSA designed the rule to make it easier for federal travelers to stay at hotels where conferences are being held. Conferences typically take place at three- and four-star hotels, while federal per diem rates are based on lodging costs at two- and three-star hotels. In the past, federal travelers often had to book rooms in less expensive hotels and commute to the pricier hotels to attend conferences.
Under the new rule, a traveler going to a conference in Washington could be reimbursed for a hotel room that cost $147.50, even though the standard maximum lodging rate for Washington is $118.
GSA also revised its rule on refreshments at government-sponsored conferences. Under previous rules, agencies couldn't provide light refreshments for employees at government expense. Under the new regulation, the government can provide light refreshments at no cost to conference attendees.
Overall, per diem rates for 2000 increased in 59 percent of locations; rates stayed the same in 25 percent of locations and decreased in 16 percent.
Per diem rates in some of the most popular federal travel destinations changed little from 1999 rates. The lodging per diem rate for Washington went up $3, from $115 to $118. In Orlando, Fla., the lodging rate rose from $75 to $77.
GSA also is looking at moving the per diem schedule to coincide with the fiscal, rather than the calendar, year. This change would put the rates in sync with agency budgets and with hotel pricing structures, and would ease the jobs of meeting planners, who typically set up conferences in the fall.
GSA has developed a database of hotels and motels around the country that fall within government per diem rates and meet the requirements of the 1990 Hotel and Motel Fire Safety Act. Federal travelers are required to stay in fire-safe lodging. More than 2,000 hotels across the country will be included in the GSA list, which is posted at http://policyworks.gov/perdiem. Click on any state's page and look under "prop. list."
For a full list of 2000 per diem rates and hotels that meet them, go to www.govexec.com/travel.
Travel on the Web
Here are two sites that help government business travelers find their way through the trip-planning maze :
The Innovata (previously Patriot) site provides information on the intranet-based version of the Federal Travel Directory. The subscription information service helps federal offices and individual government travelers manage travel and travel costs with a step-by-step process that stores travelers' preferences and guides them through trip arrangements.
OAG's site provides government and military travelers with information on its "Official Traveler" products and services. Included is free trial access to all published direct and connecting flights worldwide from more than 800 airlines (including GSA contract flights and fares) and more than 73,000 hotels, government car rental rates, maps and more. OAG's Official Traveler products are available via intranet, extranet, LAN and CD-ROM by subscription only.
Mileage Rate Up
The mileage reimbursement rate for federal travelers who use their own cars went back up to 32.5 cents per mile on Jan. 14. Since April 1999 the rate had been 31 cents per mile.
The mileage reimbursement rate was 32.5 cents per mile from October 1998 to April 1999, but lower gas prices pushed it down. The General Services Administration sets the rate for federal employees. The rate cannot exceed the Internal Revenue Service rate, which went from 31 cents per mile to 32.5 cents per mile on Jan. 1.
Under federal travel regulations, an employee may use a personal vehicle for official travel if authorized by his or her agency. If an agency authorizes travel by another means, such as airplane, and an employee drives his or her own car, the employee's reimbursement is limited to the cost of the authorized means of travel.
- Brian Friel contributed to this report
COMMENTS
- It is said in the Marine Corps that you can not use your Government Charge Card on Conference fees, however if the Traveler is on Travel already and unaware there is a fee what is the traveler to do if they personally do not have the income to carry the fee. Travelers should be allowed to use their GOVCC if this matter occurs. Darrell fulmore Posted July 15, 2008 5:49 PM
