If travel costs are significant, auditors are instructed to review procedures related to travel and select a sample of expense reports to review.  Procedures examined should include instructions detailing travel that authorization and approval of the trip is made, the duration of the trip and number of travelers involved.  The procedures should provide that advanced planning of travel is made to assure (1) required visits to the same geographic area is combined into a single trip (2) maximum use is made of the lowest customary standard, coach or equivalent during business hours and (3) coordination between organizational units are made to minimize the number of trips.

Auditors are told to review individual trips to determine if (1) the contractor is complying with its travel policies and procedures (2) the trip is for an allowable purpose and (3) the incurred travel costs are documented in accordance with FAR 31.205-46.  The auditor is also to review the contractor’s accounting procedures to determine whether they provide adequate controls for segregating unallowable travel costs (e.g. internal review of expense reports, accounts for unallowable costs).  For individual trips reviewed, the auditor will determine if required information exists such as (1) date and place of the expense (city, town, etc.) (2) purpose of the trip and (3) name of person on trip and that person’s title or relationship to the contractor.  They are told that such information may be obtained from a book, diary, account book or expense report along with cancelled checks, credit card receipts and hotel billing.

Auditors are also given information about many of the items discussed above such as FTRs applying only to definitions, maximum per diem rates and special or unusual circumstances, flexibility in using actual versus per diem costs, establishing and following contractor rules for partial day travel, efforts to obtain lowest possible fares and frequent flyer rules.        

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