DOT Did Not Properly Record All Katrina Costs, Report Says

he Department of Transportation did not properly record hurricane-relief expenses incurred under a contract with truckload carrier Landstar System, DOT’s inspector general's office said in a report released Monday.

The Federal Aviation Administration — part of DOT and tasked with tracking the expenses — did not record in advance the costs of Landstar's hurricane-related trucking services, DOT said in the report, posted on the department's Web site.

“The specifics are related to the FAA's internal reporting processes and have nothing to do with Landstar's reporting,” Henry Gerkens, Landstar’s chief executive officer, told Transport Topics on Monday.

Landstar is ranked No. 14 on the Transport Topics 100 list of the largest U.S. and Canadian trucking companies.

The error raises a risk that a law requiring prior congressional approval for federal spending may be violated, DOT said.

U.S. inspectors said Oct. 7 they planned to examine DOT spending in the aftermath of Hurricane Katrina, including a contract with Landstar’s Express America unit, which arranges shipments using trucks and planes, provides emergency logistics services to the department under a 2002 contract, Bloomberg reported.

The FAA asked Landstar for $289 million in services as of Sept. 30 and recorded only $72 million in obligations, according to a DOT memo. The FAA also incurred $157 million in obligations as of Sept. 30 that weren't recorded, Bloomberg reported, citing DOT officials.