Background The Selected Reserve comprises over 811,000 full- and part-time  members from the military services’ respective National Guard and  reserve components, whom DOD can call to active duty to augment  military forces in time of war or national emergency. DOD requires these  reservists to maintain readiness by participating regularly in training to  maintain the military skills needed to perform their mission. About 91  percent of the members of the Selected Reserve, or 735,876 reservists,  are part-time, performing military service in addition to their civilian  employment and careers. Reservists typically train for about 1 weekend  a month and 2 weeks a year. Reservists may also be required to  participate in longer duration training to develop and maintain specialized  skills related to their military occupation, such as cyber specialists, or to  perform other activities such as backfilling positions in other reserve or  active units. The following are descriptions of reservists’ required  training and other duties: Annual Training: All six reserve components require an annual  training period, typically 2 weeks, to acquire and maintain required  military skills. Inactive Duty Training: This training is commonly referred to as the  “1 weekend a month” commitment, and reservists fulfill this  commitment in connection with prescribed training or maintenance  activities of the units to which they are assigned. Active Duty for Training: So that reservists acquire and maintain  required military skills, individuals serving as reservists participate in  training programs such as initial basic training and advanced  individual training, and may attend full time specialized schools. The  duration of Active Duty for Training varies considerably, from days to  several months. Active Duty Other than Training: All six reserve components may  require that reservists perform other support activities, such as  backfilling a position in a reserve or active unit. For a variety of reasons, reservists may not live in the same location  where they train. For example, reservists may relocate for their civilian  occupation, and officials told us that as reservists are promoted,  command opportunities are more geographically dispersed. As a result,  travel may be necessary to facilitate their service. DOD’s six reserve  components reported paying or reimbursing over $925 million in travel  costs for reservists in fiscal year 2015, representing about 4.3 percent of  the total obligations identified in the Reserve Personnel accounts. With  an actual part-time endstrength of 742,683 reservists in fiscal year 2015,  DOD spent an average cost of about $1,246 per reservist. Officials told us that DOD does not specifically collect and track data on reservists’  unreimbursed travel expenses, which are therefore unknown. Officials  told us that reservists process their travel claims through DOD-wide or  military-service-based electronic data systems, such as the Defense  Travel Service or the Air Force’s Reserve Travel System, or sometimes  using hard-copy forms, depending on the type of duty performed, the  reserve component, and other factors. DOD’s Joint Travel Regulations  govern the extent to which reservists are eligible to be reimbursed for  travel expenses to participate in required training or in other duties. The  regulations authorize the reimbursement of different types of expenses  depending on the nature and duration of the assignment. Eligible  reimbursements include: Per diem, which includes reimbursement for food, temporary lodging, Transportation expenses, ranging from reimbursement for mileage  traveled in reservists’ private vehicles to reimbursement for  commercial flights; Permanent Change of Station reimbursements related to reservists  changing their home of record to the location of the assignment, such  as reimbursement for the movement of household goods; and Basic Allowance for Housing, which is based on the costs of adequate  rental properties for civilians with comparable income levels in the  same location as the permanent duty station, which in the case of  reservists is generally the location of their home; is received when  reservists are in an active duty status, which includes Active Duty for  Training and Active Duty Other than Training; and is determined  based on the duration of reservists’ active duty assignments. Reservists also receive cash compensation for the various types of  training and other duties they perform; non-cash compensation, such as  access to TRICARE Reserve Select and education benefits; and deferred  compensation, such as participation in the military retirement system. In  addition, reservists may be able to take advantage of a federal tax  deduction for out-of-pocket travel expenses associated with their  service. Reservists May Incur  Out-of-Pocket Travel  Expenses under  Certain Conditions Reservists may incur expenses under certain conditions in connection  with their service that are not reimbursable under DOD’s travel  regulations. Officials responsible for travel regulations and reserve policy  issues told us that this can occur because: (1) the cost to attend Inactive  Duty Training is a reservist’s responsibility, except in limited  circumstances; and (2) DOD designates longer duration training or  assignments as a Permanent Change of Station—a change in a  reservist’s home of record—and not as temporary travel. Travel Expenses to Attend  Inactive Duty Training Are  the Responsibility of  Reservists Except for in  Limited Circumstances Under most circumstances, travel expenses to and from the 1 weekend a  month training commitment are reservists’ responsibility with no  reimbursement provided, and as a result reservists may incur  unreimbursed travel expenses to attend this training. Specifically, the  Joint Travel Regulations states that a reserve component member  performing Inactive Duty Training ordinarily receives no travel or  transportation allowances, particularly when the training duty is performed  at the reservist’s assigned unit location. This principle is reflected in  travel policy such as the Navy Reserve’s requirement that reservists who  live more than 100 miles from their Inactive Duty Training site sign a  waiver acknowledging that they will not be reimbursed for travel  expenses. Navy travel policy, citing a previous version of the Joint  Travel Regulations, states that as part of the requirement to perform  Inactive Duty Training, “inherent to this obligation is the travel between  the member’s home and the location at which the member normally  performs drills” with no reimbursement provided. To mitigate expenses incurred by reservists traveling long distances, the  National Defense Authorization Act for Fiscal Year 2008 established a  reimbursement program for Inactive Duty Training whereby each  component may, at the discretion of the service Secretary and under  certain circumstances, provide reimbursement of up to $300 in expenses  for each roundtrip to the training location. The Joint Travel Regulations  further specifies that reservists must travel no fewer than 150 miles or  greater one way from their primary residence to their normal drilling site to  be eligible. DOD spent nearly $33.5 million on Inactive Duty Training  travel costs in fiscal year 2015. While each service Secretary decides  whether an individual component can participate in the program, the Joint  Travel Regulations requires such programs to make servicemembers  eligible for reimbursement when they meet one of the following criteria:  They are qualified in a skill designated as critically short by the Secretary assigned to a unit of the Selected Reserve with a critical staffing  shortage, or in a pay grade in the reservists’ component with a critical  staffing shortage; or assigned to a unit or position that is disestablished or relocated as a  result of Base Realignment and Closure or other force structure  reallocation. See table 1 for scenarios illustrating reimbursement eligibility for Inactive  Duty Training expenses in the Army Reserve. Three of the six reserve components have established policies to allow  for reimbursement of expenses of travel related to Inactive Duty Training,  according to component-specific criteria. The Marine Corps Reserve and  the Air Force Reserve authorize Inactive Duty Training reimbursement for  several occupations, and in the case of the Marine Corps Reserve, entire  rank levels. The Army Reserve authorizes reimbursement, but according  to its policy targets reimbursements to soldiers and units with the highest  payoff in achieving readiness. Specifically, Army Reserve commanders  establish Inactive Duty Training reimbursement policy that designates and  prioritizes positions, units, and occupational specialties eligible to  participate. Both Air National Guard and Army National Guard officials  told us that their respective components do not authorize Inactive Duty  Training reimbursement. Similarly, Navy officials told us that the Navy  does not participate in the reimbursement program, primarily because  under its training construct Navy reservists conduct most Inactive Duty  Training at a Navy Operational Support Center close to their homes,  thereby limiting the training that may occur at a further distance from their  homes to a minority of sessions. Travel distances for reservists to their drilling site may have increased  over time. For example, the 2012 Report of the Eleventh Quadrennial  Review of Military Compensation noted that reservists traditionally lived  near a reserve site or drilling location, but reported that at the time of its  review more than 100,000 reservists lived more than 100 miles from their  drilling locations. Further, according to a 2008 report by the Commission  on the National Guard and Reserves, after Base Realignment and  Closure actions some reservists may have fewer locations available to  them to perform such training. As a result, reservists may be travelling  greater distances to attend such training. Officials also told us that the  travel distances required to attend Inactive Duty Training can be further  increased as reservists progress in their careers in certain occupational  specialties or ranks. For example, officials from the Marine Corps  Reserve told us that as reservists are promoted to higher ranks, there are  fewer positions, which can result in long-distance travel by reservists,  while Army Reserve officials told us that some reservists may turn down  command positions to avoid long-distance travel. DOD’s Joint Travel  Regulations Treats Long- Duration Training and  Other Assignments of  Long-Duration as a  Permanent Change of  Station DOD’s Joint Travel Regulations treats Active Duty for Training and other  assignments of long-duration as a Permanent Change of Station, or a  change in a reservist’s home of record, generally his or her civilian home,  and not as Temporary Duty. The treatment of long-duration training or  other assignments as a Permanent Change of Station applies equally to  reservists and active component members, as DOD travel regulations  require all military personnel at a given training or assignment to be in the  same status. However, officials told us that due to the interim nature of  such assignments reservists are unlikely to move their families, and  reservists may incur unreimbursed expenses due to the cost of  maintaining two homes. For example, according to a reserve policy  official, based on an internal analysis, about two-thirds of Air Reserve  members on long-duration training do not move from their civilian homes.  Further, the 2012 Report of the Eleventh Quadrennial Review of Military  Compensation concluded that reservists would likely return to their civilian  homes and employers at the conclusion of their assignments. In addition,  officials stated that long-duration training is becoming more common. For  example, Army language or medical training can routinely last longer than  140 days and require a Permanent Change of Station. The treatment of long-duration training and other assignments as a  Permanent Change of Station and not as Temporary Duty affects the type  of expenses that will be reimbursed and the Basic Allowance for Housing  rate received by reservists. A Permanent Change of Station is triggered  when Active Duty for Training assignments last 140 days or longer and  Active Duty for Other than Training assignments last 181 days or longer.  The changes in eligibility for reimbursement discussed below can affect  the amounts of reservists’ unreimbursed expenses: Per diem: Reservists on training or other assignments that are  treated as a Permanent Change of Station are not eligible for  reimbursement of per diem expenses, including for temporary lodging  and meals. Reservists are unlikely to relocate their civilian homes for  such long-duration, though interim, training and assignments. They  may therefore incur expenses typically associated with a Temporary  Duty assignment, such as temporary lodging expenses, but for which  they cannot be reimbursed. Basic Allowance for Housing: Reservists on training or other  assignments that are treated as a Permanent Change of Station  receive an adjusted Basic Allowance for Housing based on the  location of their new duty station. This adjusted housing allowance  applies regardless of whether a reservist actually moves his or her  civilian home and family to the new duty station. Depending on the  new duty location, a reservist may receive Basic Allowance for  Housing at a higher or lower rate than the allowance amount based  on the location of their civilian home. If a reservist were in Temporary  Duty status—training for 139 days or fewer, or an assignment for 180  days or fewer—he or she would continue to receive Basic Allowance  for Housing based on the cost of maintaining his or her civilian home. If reservists decide not to relocate themselves and their families to the  location of the long-duration training or assignment, reservists may face  unreimbursed costs for maintaining two homes. Once a Permanent  Change of Station has been triggered, a reservist is no longer in a  Temporary Duty status and may no longer receive per diem for temporary  lodging. Reservists must either (1) move to government lodging and  forego any Basic Allowance for Housing, or (2) receive Basic Allowance  for Housing based on the location of the assignment, which may be  higher or lower than the allowance based on the location of their home of  record, generally their civilian home. In the first situation, reservists must  maintain their civilian home without payment of a Basic Allowance for  Housing, and thus may face unreimbursed costs associated with the  home’s maintenance. In the second situation, reservists must maintain  both their civilian home and a new home with a Basic Allowance for  Housing adjusted for the location of the home at the new duty station.  Unreimbursed costs may result if the Basic Allowance for Housing  adjusted for the location of the new duty station is significantly lower than  the housing costs in the area of the reservist’s civilian home. As shown in  the 2017 illustrative example in figure 1, reservists receive different levels  of payment for the temporary lodging allowance and the Basic Allowance  for Housing based on the duration of their Active Duty for Training  assignments. A service Secretary may grant a waiver for individuals attending a training  course to maintain Temporary Duty status beyond the 140-day time limit,  which normally would require a Permanent Change of Station. However,  such waivers apply to all course attendees, whether they are members of  the active or reserve components. DOD maintains data on the number of  these waivers, but not for the discrete number of waivers for reserve  component training. Individual reservists can also apply for a waiver for  the rate of their Basic Allowance for Housing payment to be based on the  location of their dependents, effectively allowing payment at the  geographic rate of a reservist’s civilian home. However, this option is not  available to reservists without dependents. DOD Has Not Fully  Assessed the  Potential Effect of  Unreimbursed Out-of- Pocket Travel  Expenses on the  Retention of  Reservists Within the last decade, DOD and the services have conducted a few  limited assessments of the potential effect of unreimbursed out-of-pocket  travel expenses incurred by reservists to perform required training and  other reserve activities on retention of reservists. Although various entities  have raised concerns regarding reservists’ out-of-pocket travel expenses,  the available information is either anecdotal or applicable to only one  reserve component or one aspect of travel policy. DOD reports have  noted that such unreimbursed travel expenses, among other factors, may  be a challenge for reservists and may therefore affect retention. For  example, in 2008, the Commission on the National Guard and Reserves  reported that travel requirements and associated costs had a negative  effect on DOD’s ability to recruit and retain qualified personnel,  particularly for leadership positions. In addition, in minutes of its  meetings, the Air Reserve Forces Policy Committee has called for  changes to the Permanent Change of Station requirement for long- duration training, noting in 2015 that it, “frequently creates financial  hardship for RC  Airmen who typically maintain a  residence near their assigned unit or civilian employer.” Three DOD studies have explored potential links between reservists’  unreimbursed travel expenses and retention: A 2012 survey commissioned by the Army Reserve of a small sample  of reservist officers potentially eligible for battalion command positions  reported that unreimbursed travel costs were among several factors  that could influence their decision to apply for these positions. A 2014 study commissioned by the Marine Corps found that, based  on a statistical model of a sample of Marines eligible to participate in  its Inactive Duty Training travel reimbursement program between May  2012 and September 2013, the program had increased the Marine  Corps’ ability to fill critical positions. The study also included an  assessment of the cost of increasing the level of reimbursement for  Inactive Duty Training and its possible effect on staffing. A 2016 survey commissioned by the Army Reserve, drawn from a  non-generalizable sample of a few thousand reservists, reported that  a significant majority of respondents in 2015 viewed the Inactive Duty  Training travel reimbursement program as an incentive for soldier  retention. In addition, during our review, officials from most of the reserve  components told us that despite the establishment of the reimbursement  program for travel costs associated with Inactive Duty Training, such  expenses continue to be a challenge for some reservists. In particular,  officials noted that this especially affects personnel who do not qualify for  reimbursement. One official noted that, in extreme cases, reservists may  find that the cost to attend Inactive Duty Training may exceed drill pay,  effectively requiring them to pay out-of-pocket to perform military service. While these reports and studies have alerted DOD to a potential problem,  DOD has not yet assessed the effect of unreimbursed travel expenses on  retention of reservists in a comprehensive manner and the related overall  cost to the federal government. For example, DOD has not yet  systematically collected data and assessed the potential effect of current  travel reimbursement policy on retention across all services, as measured  by outcomes such as fill rates for critical positions and other metrics, or  collected more basic information such as the number of reservists who do  not move their home during long-duration training, the distances traveled  for Inactive Duty Training, and the amount of unreimbursed expenses  incurred by reservists. The 2014 Marine Corps’ study on Inactive Duty  Training reimbursement did explore fill rates for its potential effect on  critical positions. However, its findings are not necessarily applicable to  the other reserve components. In addition, DOD has not conducted an assessment on the issue of Permanent Change of Station rules for long- duration training or other assignments. While travel policy officials noted  that there is no requirement for such an assessment, some agreed that  more robust information would allow for a better understanding of the  situation as well as any potential changes that are necessary in DOD’s  travel policy. One travel official stated that until a direct connection  between unreimbursed travel expenses and retention or related areas is  observed within their component, change is unnecessary. As of July 2017, DOD and the reserve components were considering  changes to reserve travel policy to mitigate the effect of out-of-pocket  expenses on reservists. Specifically, these changes include (1)  requesting that Congress increase reimbursement for Inactive Duty  Training travel expenses from $300 to $500 and (2) increasing the length  of time of Temporary Duty travel for training courses or other assignments  before such travel is considered a Permanent Change of Station. The  Marine Corps Reserve has developed a draft proposal for congressional  consideration for an increase in Inactive Duty Training reimbursement,  which an official stated was necessary to address the challenge of filling  critical occupations. The Military Advisory Panel, which advises on  defense travel issues, has considered an increase in the length of time of  Temporary Duty travel for training courses or other assignments before a  Permanent Change of Station would be required, but no specific  proposals have been developed. Federal internal control standards state that management requires quality  information to make informed decisions and evaluate an entity’s  performance in achieving key objectives and addressing risk. They  further require that management identify, analyze, and respond to risks  related to achieving the defined objectives. However, without collecting  more comprehensive information on the potential effect of the current  travel policy on the retention of reservists, DOD would be considering  alternative proposals with only the limited data and analysis available to  date. Further, the lack of comprehensive data and analysis on the  influence of current travel policies will limit DOD’s ability to reach an  analytically based decision which weighs the costs and benefits of any  potential changes. In deciding to continue or change current travel  policies relating to travel reimbursement without the benefit of quality  information, DOD risks not managing the potential influence of these  policies on reservists’ retention or agency expenditures. Conclusions Reservists often maintain civilian careers and homes that in some cases  can require them to travel long distances to perform their part-time  military service. In some instances, such as when performing Inactive  Duty Training and long-duration Active Duty for Training or other active  duty assignments, such service can result in expenses that cannot be  reimbursed to the reservist under DOD’s travel policy. Despite long- standing concerns that out-of-pocket travel expenses reservists incur to  perform their service may be increasing, DOD does not have sufficient  data and analysis on how reservists’ incurring these expenses could  negatively affect DOD’s ability to achieve its mission, the overall costs  and benefits of DOD’s travel policy, and how various proposed changes  to the travel policy could potentially mitigate any of its possible negative  effects. As a result, DOD is not well positioned to move forward with  possible changes to travel policy absent further analysis. Recommendation for  Executive Action We recommend that the Under Secretary of Defense for Personnel and  Readiness collect quality information and conduct an analysis of the  potential effects of unreimbursed travel expenses incurred by reservists to  perform military service on DOD’s ability to retain reservists in the force,  and respond to these risks by considering the costs and benefits of any  possible actions to address the identified issues. Agency Comments  and Our Evaluation We provided a draft of this report to DOD for review and comment. In its  written comments, reproduced in appendix II, DOD concurred with our  recommendation. We are sending copies of this report to appropriate congressional  committees, the Secretary of Defense, the Under Secretary of Defense  for Personnel and Readiness, the Secretaries of the military departments,  and other interested parties. In addition, the report is available at no  charge on the GAO website at http://www.gao.gov. If you or your staff have any questions about this report, please contact  me at (213) 830-1011 or vonaha@gao.gov. Contact points for our Offices  of Congressional Relations and Public Affairs may be found on the last  page of this report. GAO staff who made key contributions to this report  are listed in appendix III. Appendix I: Reserve Components’ Reported  Travel Costs for Fiscal Year 2015 To determine DOD’s travel costs for the reserve components, we  obtained and reviewed fiscal year 2015 execution cost data, the most  recent complete data available, that each reserve component reported on  travel costs for training and other activities. These costs are reported in a  travel cost exhibit included in each component’s annual Reserve  Personnel budget justification document. We did not include any travel  costs not included in the reserve components’ Reserve Personnel  accounts, such as any travel costs in the components’ respective  Operations and Maintenance accounts. We did not include travel costs for  the Active Guard and Reserve because individuals serving these  components are responsible for the full-time administration of the reserve  components and differ significantly from part-time drilling reservists in  their responsibilities and associated travel. We also did not include costs  for the Individual Ready Reserve because these reservists have different  training patterns than other reservists. In table 2, we summarize the costs  reported by DOD’s six reserve components for Annual Training, Inactive  Duty Training, and all other travel costs for fiscal year 2015 by  component. Appendix II: Comments from the Department  of Defense Appendix III: GAO Contact and Staff  Acknowledgments GAO Contact Staff  Acknowledgments In addition to the contact named above, Margaret Best (Assistant  Director), Patricia Donahue, Mae Jones, Linda Keefer, Felicia Lopez,  Carol Petersen, and Adam Smith made major contributions to this report.
About 91 percent of DOD's 811,000 reservists are part-time, performing military service in addition to civilian employment and careers. These reservists may have to travel to perform required military training or other duties. The National Defense Authorization Act for Fiscal Year 2017 contains a provision for GAO to review the cost of travel for members of the reserve components. This report (1) describes the conditions under which reservists may incur unreimbursed out-of-pocket travel expenses in connection with their service, and (2) addresses the extent to which DOD has assessed the effect of reservists' unreimbursed out-of-pocket travel expenses on retention. GAO reviewed DOD's Joint Travel Regulations and interviewed officials to determine conditions under which reservists might incur unreimbursed travel expenses. It also compared DOD's efforts to analyze the effect of such expenses with federal internal control standards, which state that management requires quality information to make informed decisions and evaluate an entity's performance in achieving key objectives. Reservists may incur unreimbursed out-of-pocket expenses under certain conditions in connection with their service. Although the Department of Defense's (DOD) six reserve components reported paying or reimbursing $925 million in travel costs for reservists in fiscal year 2015, the most recent year for which data were available, reservists may still incur various expenses that are not reimbursable under DOD's travel regulations. Officials responsible for travel regulations told us that unreimbursed travel expenses for reservists generally arise because it is DOD's policy to: (1) not provide reimbursement, except in limited circumstances, for the cost of travel to attend Inactive Duty Training (i.e., the “1 weekend a month” training commitment for reservists) and (2) consider longer duration training or assignments as a Permanent Change of Station—a change in reservists' home of record—and not as temporary travel. The National Defense Authorization Act for 2008 established a reimbursement program for Inactive Duty Training travel costs, but reservists must meet certain eligibility criteria, such as serving in a critical occupation, and not all service Secretaries have chosen to participate. Under the program, reimbursement is limited to $300 for each roundtrip to the training location. Further, DOD's policy to consider longer duration training or assignments as a Permanent Change of Station may also result in unreimbursed expenses. Specifically, according to DOD officials, reservists may have to maintain two households if, because of their part-time status, they decide not to move themselves and their families to the location of Active Duty Training for 140 days or longer, or of other active duty assignments for 181 days or longer. DOD and the services have conducted a few limited assessments of the potential effect of reservists' unreimbursed travel expenses on the retention of reservists. However, several DOD reports and studies and officials whom GAO interviewed have expressed concern that such unreimbursed expenses may, among other factors, be a challenge for reservists and may therefore negatively affect retention. For example, a 2012 survey commissioned by the Army Reserve of a small sample of reservist officers potentially eligible for battalion command positions reported that unreimbursed travel costs were among several factors that could influence their decision to apply for these positions. DOD and the reserve components are considering changes to reserve travel policy to mitigate the effect of unreimbursed expenses on reservists, by, for example, increasing the $300 limit for Inactive Duty Training reimbursement. However, without the benefit of quality information, DOD risks not managing the potential influence of these policies on reservists' retention or agency expenditures.