Travel Pay Other Defense Organization (ODO) – Integrated Automated Travel System (IATS)
Program level Payment Integrity results
Sponsoring agency: Department of War
PROGRAM METRICS
$15 M
in FY 2025 outlays, with a
86.9%
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:
10/2023 - 09/2024
Confidence interval:
90% to <95%
Margin of error:
+/-2.78
Causes
A significant portion of the improper payments stems from calculation errors during claims processing. These errors frequently involved the application of incorrect rates in determining reimbursement amounts. This is partly due to inconsistent guidance regarding pre-computed claims, which often bypass vital validation. Challenging production performance standards within the complex DoD Travel Pay ODO - IATS workload, coupled with high employee turnover, exacerbates human error. New and less experienced processors struggle with travel regulations and system functionalities, leading to mistakes in rate calculations. Processors also fail to rigorously validate rates against official sources, a deficiency arising from inadequate training or a perceived pressure to expedite claim processing. Lack of adherence to Standard Operating Procedure (SOP) guidelines during claim computation also plays a role, indicating a need for improved training and enhanced monitoring.
Missing supporting documentation and the payment of unauthorized entitlements further contribute to improper payments. These shortcomings often arise from submission of incomplete or inaccurate travel claim packets, frequently originating from deficiencies within order writing systems. These systems may not consistently generate travel orders that adhere to regulatory requirements, placing a burden on payment processors. Processing oversight also contributes, as processors sometimes fail to identify and address documentation gaps or authorize entitlements without the required supporting documentation. Underpayments are primarily due to miscalculation of meal rates. Regarding unknown payments, the root cause lies in the inability to access or verify critical data, specifically the failure to ascertain the existence of advance payments prior to deducting them from the total reimbursement. This data inaccessibility hinders payment reconciliation and the identification of discrepancies.
Addressing these causes is critical. The DoW must focus on strengthening training programs, emphasizing proper rate validation, adherence to SOP guidelines, and thorough documentation review. Improved communication and collaboration with order writing system administrators are essential to ensure the accuracy and completeness of travel orders. Furthermore, enhancing data accessibility and developing robust verification mechanisms will be crucial in minimizing unknown payments. By addressing these underlying factors, the DoW can significantly reduce the rate of improper and unknown payments within the Travel Pay ODO - IATS program, ensuring greater financial integrity, responsible stewardship of taxpayer dollars, and strengthened compliance with OMB A-123 Appendix C reporting requirements. A comprehensive remediation plan will be developed and implemented to address these identified weaknesses and will be tracked through regular monitoring and reporting to ensure continuous improvement.
| Overpayment root cause | Overpayment amount |
|---|---|
| Amount of overpayments within the agency's control | $0.25 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 | $0.25 M |
| Underpayment root cause | Underpayment amount |
|---|---|
| Amount of underpayments | $0.68 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 | $0.68 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 | $0.18 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 | $0.82 M |
Prevention
One primary focus is improving the accuracy and accountability of voucher examiners and auditors. To achieve this, several initiatives are underway, centered on augmenting internal controls and enhancing individual proficiency. Management is implementing an "Audit the Auditor" process, designed to systematically detect errors, analyze trends, and identify the underlying root causes more effectively. This proactive monitoring will enable timely feedback to processors, minimizing the recurrence of errors and informing necessary updates to both initial and refresher training programs. Crucially, in conjunction with the "Audit the Auditor" process, the program will establish an auditor accuracy performance standard, defining clear expectations for performance. To further support adherence to these standards, an Auditor Checklist is being developed to guide examiners through critical review steps. The anticipated implementation date for the Auditor accuracy performance standard, Auditor Checklist, and the "Audit the Auditor" process is prior to December 31, 2025. Additionally, management is planning to conduct "back-to-basics" training sessions, specifically targeting high-dollar and recurring error types.
Further enhancement of internal processes involves collaboration with the Defense Finance and Accounting Service (DFAS) Learning and Development (L&D) team to optimize training materials and delivery methods. This includes exploring the utilization of eLearning opportunities to provide accessible and engaging training. Management anticipates identifying a list of eLearning training courses specifically aligned with DoW Travel Payment processing by June 30, 2026. The implementation of these eLearning modules, where appropriate, will provide easily accessible and effective training for travel pay personnel. This collaborative approach with DFAS L&D aims to ensure that training is current, relevant, and effectively equips personnel with the knowledge and skills necessary to accurately process travel payments.
To address errors originating from incorrect submissions by travel claimants, the program is adopting a dual-pronged strategy. First, management will establish recurring touchpoint meetings with personnel to emphasize the importance of submitting "pay-ready" claims, as outlined in the Mission Work Agreement (MWA). These recurring meetings will focus on educating claimants on proper claim submission procedures and clarifying requirements, aiming to improve the overall quality and completeness of submitted documentation. These meetings are scheduled to begin prior to December 2025. Secondly, and perhaps most significantly, the program is deploying the SmartVoucher tool. The SmartVoucher tool is a significant systemic control designed to mitigate common submission errors by incorporating built-in validation and data integrity checks. The SmartVoucher Tool for Temporary Duty (TDY) Travel Claims is scheduled for deployment by December 2025, with Civilian Permanent Change of Station (PCS) Travel Claims implementation planned for December 2027. The deployment of SmartVoucher will significantly improve the accuracy of initial claim submissions, thereby reducing the complexity of the payment process and minimizing the need for processors to adjudicate improperly authorized entitlements.
In accordance with the Payment Integrity Information Act of 2019 reporting requirements, the corrective actions outlined within the Travel Pay ODO – IATS program demonstrably address the identified causes of improper and unknown payments and are proportional to the severity of their associated financial impact and occurrence rates. As Travel Pay falls under the People Pay Mission Area, ensuring proper payments is a paramount concern for the Department. The planned and implemented corrective actions are specifically designed to mitigate recurring errors and facilitate timely, targeted training that directly addresses the root causes of discrepancies as they emerge.
A key strategic initiative involves the automation of payment processes, which aims to enhance the accuracy of payment request submissions. This automation significantly reduces the complexity inherent in manual processing and minimizes instances where payment processors must interpret entitlement eligibility, thereby proactively preventing errors. Notably, underpayments stemming from incorrect meal rate reimbursements constituted the most significant category of improper payments based on both impact and rate of occurrence. Concurrently, the reimbursement of higher-than-authorized per diem rates, attributable to processor errors, drove the largest monetary losses within the improper payment category. Similarly, the deduction of unverified advances from payment amounts impacted both the rate and dollar amount of unknown payments.
To address these specific issues, the corrective action plan emphasizes enhanced engagement and accuracy among payment processors and auditors through focused training programs. Furthermore, expanded utilization of the SmartVoucher tool is projected to increase the rate of pay-ready claim submissions, ultimately minimizing errors and streamlining the payment process. These measures are deemed proportional to the impact and effectively target the root causes of the aforementioned improper and unknown payments. Addressing statutory improper payments, primarily caused by customer submission of invalid travel orders undetected by payment processors, the implementation of SmartVoucher, coupled with intensified collaboration with customers regarding the submission of complete and accurate, pay-ready claims, is considered a sufficient and appropriately scaled response to mitigate the impact of these improper payments.
Corrective actions within the Travel Pay ODO – IATS program are meticulously focused on addressing the root causes of Improper and Unknown Payments. A key strategy involves targeted training initiatives designed to reduce recurring errors. By focusing training on the specific causes of identified errors, the Department aims to equip payment processors and auditors with the knowledge and skills necessary to prevent future errors. Furthermore, the implementation of automation tools, such as the SmartVoucher tool, is designed to improve the accuracy of payment request submissions. This automation streamlines the payment process, reduces complexity, and diminishes the reliance on payment processors to interpret entitlement authorizations, thereby minimizing the potential for human error. The adequacy of these corrective actions is evident in their direct targeting of the primary drivers of improper and unknown payments. For instance, addressing the largest impact improper payments related to incorrect meal rate reimbursements and unauthorized per diem rates involves enhanced training and stricter adherence to travel order authorizations. Similarly, addressing unknown payments related to unverified advances involves strengthened verification procedures and reconciliation processes.
The corrective actions implemented within the IATS program demonstrably aim to reduce both Improper and Unknown Payments. By increasing processor and auditor engagement and accuracy through focused training, expanding the use of the SmartVoucher tool to improve the rate of pay-ready claim submissions, and fostering greater collaboration with customers regarding the submission of complete and accurate documentation, the DoW is actively mitigating the root causes of payment errors. The emphasis on preventing statutory improper payments, primarily caused by the submission of invalid travel orders, through the combined efforts of SmartVoucher implementation and improved customer communication further underscores the proactive and comprehensive approach taken to enhance payment integrity. The effectiveness of these measures is continuously monitored through the monthly reporting structure, allowing for adjustments and refinements as needed to ensure that the program consistently moves toward reducing improper and unknown payment rates.
| Payment type | Mitigation strategies taken | Mitigation strategies planned |
|---|---|---|
| Overpayments | Automation, Change Process, Predictive Analytics, Training | Automation, Change Process, Predictive Analytics, Training |
| Underpayments | Automation, Change Process, Predictive Analytics, Training | Automation, Change Process, Predictive Analytics, Training |
| Technically improper payments | Automation, Change Process, Predictive Analytics, Training | Automation, Change Process, Predictive Analytics, Training |
| Unknown payments | Automation,Change Process,Predictive Analytics,Training | Automation,Change Process,Predictive Analytics,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
8.4 %The Department of War (DoW) asserts that the Travel Pay ODO – IATS 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, coupled with planned enhancements to the SmartVoucher tool, 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 Travel Pay ODO – IATS program.
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.