Travel Pay Other Defense Organization (ODO) – Defense Travel System (DTS)
Program level Payment Integrity results
Sponsoring agency: Department of War
PROGRAM METRICS
$415 M
in FY 2025 outlays, with a
89.0%
payment accuracy rate
-
Improper payment estimates over time
View as:
Chart toggle amounts:Proper paymentsOverpaymentUnderpaymentTechnically improperUnknown
Payment Integrity results
-
FY 2025 improper payment estimates
Chart legend and breakdown
Payment accuracy rate
Improper payment rate
Unknown payment rate
Sampling & estimation methodology details
Sampling timeframe:
07/2024 - 06/2025
Confidence interval:
90% to <95%
Margin of error:
+/-1.4
Causes
A significant root cause across multiple DoW components involves policy and guidance deficiencies. The Defense Health Agency – Military Treatment Facilities (DHA-MTF), for example, identified multiple sources of policy as a key issue, with different travel sections maintaining separate repositories for policy and guidance. This lack of a unified and easily accessible policy framework can lead to inconsistent application of travel regulations and increased instances of improper payments. Similarly, the Defense Intelligence Agency (DIA) points to a lack of clear guidance as a contributing factor, suggesting that ambiguities in existing policies make it difficult for travelers and approving officials to navigate the DTS process correctly.
Process and procedural breakdowns also contribute significantly to improper payments. The Defense Information Systems Agency (DISA) identified that the largest percentage of exceptions was attributable to travel beginning prior to DTS authorization. DHA-MTF highlights missing information on travel authorizations, particularly for emergency patient travel, where non-standardized documentation requirements lead to incomplete records. This lack of standardized procedures and internal controls, including inadequate segregation of duties in some cases, results in inconsistent review and approval processes, increasing the risk of improper payments.
Human error and inadequate training are also consistently identified as major factors. The DIA identified instances of insufficient training for travelers, Organization Defense Travel Administrators (ODTAs), and Approving Officials (AOs) on DTS requirements and Joint Travel Regulations (JTR) compliance. This knowledge gap leads to documentation errors and improper payment approvals. DHA-MTF notes that travel preparers often omit itemized actual cost reimbursements on Form 1351-2 when travelers cannot sign their own authorizations, indicating a failure to follow established guidelines and utilize the Defense Travel Management Office (DTMO) Travel Guide 1351-2 effectively.
Data issues further exacerbate the problem. DIA identifies incomplete or inaccurate data entry in DTS vouchers as a root cause, leading to calculation errors and improper payments. The DHA-MTF identified missing information on who authorized travel on travel documents for emergency medical care. These data-related deficiencies often stem from a combination of inadequate training, process breakdowns, and system limitations, ultimately contributing to the overall rate of improper and unknown payments.
Overall, these findings demonstrate that improper and unknown payments in the DoD Travel Pay ODO – DTS program are multifaceted and stem from systemic issues within the DTS process, including policy inconsistencies, procedural deficiencies, human error, and data inaccuracies.
| Overpayment root cause | Overpayment amount |
|---|---|
| Amount of overpayments within the agency's control | $7.17 M |
| Amount of overpayments outside the agency's control | $0.0 M |
| Amount of overpayments that occurred because the data/information needed to validate payment accuracy prior to making a payment does not exist | $0.0 M |
| Amount of overpayments that occurred because of an inability to access the data/information needed to validate payment accuracy prior to making a payment | $0.0 M |
| Amount of overpayments that occurred because of a failure to access data/information needed to validate payment accuracy prior to making a payment | $7.17 M |
| Underpayment root cause | Underpayment amount |
|---|---|
| Amount of underpayments | $0.46 M |
| The amount of underpayments that occurred because the data/information needed to validate payment accuracy prior to making a payment does not exist | $0.0 M |
| The amount of underpayments that occurred because of an inability to access the data/information needed to validate payment accuracy prior to making a payment | $0.0 M |
| The amount of underpayments that occurred because of a failure to access data/information needed to validate payment accuracy prior to making a payment | $0.46 M |
| The amount of improper payments that were paid to the right recipient for the correct amount but were considered technically improper because of failure to follow statute or regulation | $23.02 M |
| The amount that could either be proper or improper but the agency is unable to determine whether it was proper or improper as a result of insufficient or lack of documentation | $14.96 M |
Prevention
A key area of focus is improving policy and guidance. The Defense Health Agency (DHA) is establishing a single repository for policy and guidance related to travel, aiming to bridge the gap between different sections such as Direct Care, Active-Duty Care, and Patient Travel. This includes establishing quarterly sync meetings between section leaders to discuss ongoing issues and create unified policy where applicable. Milestones for this include reviewing SharePoint access, additional training materials, and distribution email contact lists and conducting quarterly DHA-MTF Townhall sync meetings starting in April 2026, with full PIIA compliance projected by FY 2026. This initiative directly addresses the current issue of multiple, disparate policy sources that lead to inconsistent application of travel regulations.
To address process and procedural weaknesses, DHA is standardizing the Patient Authorization Document (PAD) memo for patient travel and making it accessible to all Military Treatment Facilities (MTFs). This aims to ensure that all necessary information is included on travel authorizations, particularly for emergency patient travel. For the Defense Intelligence Agency (DIA), a comprehensive corrective action plan includes establishing a standardized process for handling Travel Pay - ODO DTS Payment Integrity Reviews with a documented 4-step process targeted for completion by December 2025. DIA is also defining stakeholder roles and responsibilities with a detailed responsibility matrix for travelers, ODTAs, AOs, and Branch Chiefs, targeted for completion by January 2026, to ensure clear accountability.
Further corrective actions focus on training and addressing data issues. DIA is implementing enhanced training requirements for all DTS stakeholders, with a mandated training curriculum targeted for completion by May 2026 to improve knowledge of JTR and DTS requirements. This includes establishing a Travel Assistance Center (TAC) outreach program with bi-monthly outreach calls starting in January 2026, to educate DTS users. DISA is working with the White House Communications Agency (WHCA) training academy to retrain DTS Action Officers, highlighting the Secretary of Defense’s priority of financial accountability. They also plan internal audits after each trip and briefing WHCA leadership with the goal of identifying and correcting infractions. To combat data issues, DHA will standardize the PAD memo to include a program coordinator or doctor as authorizer and the date of evacuation. DISA is implementing internal controls, including retraining DTS Action Officers, to address issues regarding financial accountability for travel prior to authorization, with training completed in August 2025. These combined efforts across the DoW aim to correct the causes of improper payments and prevent future occurrences, with a projected timeline for achieving full PIIA compliance by FY 2027 for the DoD Travel Pay ODO – DTS program.
The DoW's Corrective Action Plans (CAPs) demonstrate a multi-layered approach to addressing improper and unknown payments, aligning the level of planned and completed actions with the severity of the associated root causes. For instance, DISA's primary issue is invalid DTS authorizations due to travel occurring prior to approval, accounting for 68% of its improper payments, largely within the White House Military Office (WHMO). In response, DISA is directly engaging WHCA through retraining DTS Action Officers, implementing internal audits, and hiring additional DTS civilians for oversight. These actions are proportional as they target the specific unit with the highest error rate and address the root cause of lacking financial accountability.
Similarly, DHA's CAP acknowledges multiple sources of policy as a significant issue and is tackling this with a centralized repository and regular sync meetings to ensure consistent application of travel policies. This centralized approach, involving quarterly sync meetings and updated training materials, is justified considering the broad impact inconsistent policies can have across different DHA travel sections. For DHA and DIA, issues with missing information on travel authorizations are being addressed by standardizing forms and processes, ensuring essential data like authorization sources are readily available. The DIA is implementing a 4-step process for handling DFAS reviews, defining roles and responsibilities, and providing enhanced training, these initiatives are proportional to address documentation errors and a lack of understanding of travel regulations identified as root causes in DIA's payment integrity reviews.
Moreover, the plans address human error and data inaccuracies through targeted training programs and clear communication channels. The DIA's initiative to establish a Travel Assistance Center (TAC) and conduct regular outreach calls exemplifies this. The continued monitoring of error rates and payment amounts after CAP implementation, with bi-monthly touchpoints between the Defense Health Agency-Military Treatment Facility (DHA-MTF) Travel Pay Team and the Office of the Under Secretary of Defense (Comptroller) Payment Integrity Team, validates the effectiveness of these plans and enables iterative adjustments to further improve accuracy and reduce improper payments. This reflects a continuous improvement cycle driven by observed results from payment integrity data.
The corrective actions are targeted towards the core drivers of improper payments. In DIA's case, the focus includes establishing standardized DFAS DD16 review process and clear roles and responsibilities for all DTS stakeholders, aimed at minimizing documentation errors and non-compliance with travel regulations. DISA, where a significant portion of improper payments is linked to travel occurring prior to authorization (68%) within the White House Military Office (WHMO), is focusing on targeted retraining of DTS Action Officers, internal audits, and hiring additional DTS civilians with oversight, demonstrating actions specifically targeted at the root cause. All three components have bi-monthly touchpoints with the OUSD (Comptroller) Payment Integrity Team to ensure proper implementation.
The adequacy of these corrective actions is assessed through ongoing monitoring and data analysis. DHA plans bi-monthly touchpoints with the DHA-MTF Travel Pay Team and OUSD(C) Payment Integrity Team to discuss current testing results and the effectiveness of implemented corrective actions. DISA is implementing monthly review and validation of monthly DFAS DTS reports to measure the effectiveness of the internal controls and actions. DoW Components plan to evaluate the effectiveness of the measures after implementation through compliance assessments. These mechanisms, including regular feedback loops, should, over time, translate into reduced improper payments and enhanced payment integrity, as they drive continuous improvement and refinement of corrective measures based on observed results.
| Payment type | Mitigation strategies taken | Mitigation strategies planned |
|---|---|---|
| Overpayments | Change Process, Cross Enterprise Sharing, Training | Change Process, Cross Enterprise Sharing, Training |
| Underpayments | Change Process, Cross Enterprise Sharing, Training | Change Process, Cross Enterprise Sharing, Training |
| Technically improper payments | Change Process, Cross Enterprise Sharing, Training | Change Process, Cross Enterprise Sharing, Training |
| Unknown payments | Change Process,Cross Enterprise Sharing,Training | Change Process,Cross Enterprise Sharing,Training |
| Eligibility element/information needed | Description of the eligbility element/information |
|---|---|
| Address/location | Information regarding where the applicant/recipient lived, owned property, or was physically present in a specific location |
Additional information
Reduction target
8.81 %The Department of War (DoW) asserts that the DoD Travel Pay ODO – DTS program possesses the requisite internal controls, human capital, information systems, and infrastructure necessary to effectively mitigate improper and unknown payments to a level where further reduction expenditures would exceed the value of prevented or recovered improper payments, aligning with the Payment Integrity Information Act of 2019 and OMB A-123 Appendix C reporting requirements. A key strategy for sustained improvement involves enhanced focus on individual processor performance, driving overall team efficiency and accuracy in payment processing. The program leverages currently available resources to identify targeted training needs and opportunities for personnel, and increased collaboration claim processors and submitters. These initiatives are anticipated to sufficiently curtail the occurrence and financial impact of improper and unknown payments. Furthermore, the DoW is actively exploring the integration of Artificial Intelligence (AI) into payment review processes and committed to continuously strengthening existing internal controls, demonstrating a proactive approach to ensuring payment integrity within the DoD Travel Pay ODO – DTS.
Based on current information available to the Office of the Under Secretary of War (Comptroller) Payment Integrity Team, the Department did not include specific budget submissions explicitly dedicated to payment integrity enhancements in the most recent budget cycle. The Department acknowledges that ongoing system upgrades and maintenance across various financial management systems contribute indirectly to improving payment accuracy and reducing improper payments. The Department's budget strategy emphasizes leveraging existing resources and planned system enhancements to strengthen internal controls and improve data quality related to payments. Future budget submissions will continue to prioritize enhancements that promote payment integrity, incorporating lessons learned and evolving best practices.
Pursuant to the January 20, 2025, Presidential Memorandum entitled “Restoring Accountability for Career Senior Executives” and consistent with the President’s direction U.S. Office of Personnel Management (OPM) established new Senior Executive Service (SES) performance plans that all agencies must adopt beginning with the FY 2026 performance cycle. The “Faithful Administration of the Law and the President’s Policies” critical performance element has the highest weighted rating. Part of implementing these new directives that DoW mandates additional performance requirements specific to Financial Improvement and Audit Remediation (FIAR) standards.
SES members within the Secretary of War with ownership of the financial statement audit priorities will include specific performance requirements aligned to one or more of the annual audit priorities in their Achieving Organizational Goals critical elements. These requirements articulate specific, measurable, attainable, relevant and time-based performance measures that will support each organizational performance goal. As an example “Supports the annual financial statement audit by accelerating the path to an unmodified audit opinion.” SES members with a direct role must comply with the policies and regulations, implement internal control procedures, document transactions, submit auditor-requested materials timely, remediate high risk/priority material weaknesses, develop/update audit roadmaps and drive remediation strategy and plans targeted at achieving an unmodified opinion. They further direct continuous process and internal control improvements, identifies root cause(s) of issues and sustains up-to-date system internal controls. Additionally, SES members are accountable for driving government efficiencies within their organization to streamline proficiencies, quality work and cost-effective use of government resources. SES members with an indirect role must implement timely, effective and measurable corrective actions plans and maintain key supporting documentation to substantiate financial transactions to ensure their workforce is properly trained on their business effectiveness and are held accountable. All of which either directly and/or indirectly equips the DoW with the inherent ability and organizational leadership structure to achieve compliance with the Payment Integrity Information Act.
Furthermore, to provide high-level strategic direction and oversight, the Department of War Payment Integrity Senior Accountable Officials Steering Committee (the Committee) was established in FY 2018. This Committee, institutionalizes a forum of accountability designed to oversee and guide the Department’s actions required by Appendix C of OMB Circular A-123, aiming for full compliance with the PIIA. The Committee is chaired by the Office of the Under Secretary of War (Comptroller)/Deputy Chief Financial Officer and co-chaired by the Defense Finance and Accounting Service, Deputy Director of Operations and has SES representatives from the Military Services and War Agencies. The Committee evaluates the status of improper payment testing, analyzes the root causes of improper payments, oversees payment recovery activities, and drives the resolution of DoW-wide audit findings and recommendations related to improper payments. In addition, the Committee supports related audits, reviews audit recommendations, oversees risk assessments and supervises the identification of root causes and the development/implementation of corrective actions to address areas of non-compliance.