Management Assistance Report: Department of State Guidance Does Not Comply With Federal Travel Regulations

Summary of Review
The Federal Travel Regulation (FTR)—41 Code of Federal Regulations (C.F.R.), Chapters 300– 304—implements statutory requirements and Executive branch policies for travel by Federal civilian employees and others authorized to travel at Government expense.¹ The FTR requires all Government employees to use Government contractor-issued travel charge cards to pay for all official travel expenses, unless exempted.² The FTR was modified in September 2016, removing some of the exemptions that were previously allowed. During a mandated risk assessment of the Department of State (Department) charge card program, the Office of Inspector General (OIG) discovered that relevant sections in the Department’s Foreign Affairs Manual (FAM) and Foreign Affairs Handbook (FAH) had not been updated since 2014.³ Therefore, the exemptions currently allowed in the FAM and the FAH regarding the use of travel charge cards do not comply with the 2016 FTR requirements.

OIG made two recommendations in this report to ensure that the FAM and the FAH are updated to reflect the 2016 FTR requirements. OIG provided a draft of this report to the Bureau of the Comptroller and Global Financial Services (CGFS) and requested a response to the recommendations offered. CGFS did not provide a response for inclusion in the final report. Any subsequent response by CGFS to the recommendations will be considered during the audit compliance follow-up process. Currently, OIG considers both recommendations unresolved, but will continue to work with CGFS to ensure the FAM and the FAH are updated to reflect the 2016 FTR requirements.

¹ _{41 C.F.R. § 300-1.1.}
² _{41 C.F.R. § 300-51.1. The FTR generally does not apply to travel of Foreign Service employees (see 14 FAM 511.2- 2).}
³ _{4 FAM 463.3-2, “Travelers With Government-Contracted Individual Charge Cards (Charge Cards),” 4 FAH-3 H466.2, “Applicability.”}