Outstanding Travel Orders (OTO) are defined as travel orders that are what?

• A. unliquidated (obligation > liquidation)
• B. fully liquidated
• C. not yet incurred
• D. requiring audit review

Answer: (A)

In government travel accounting, money is obligated when the travel is approved and the funds are set aside, and it is liquidated when the actual payment is processed and the liability is settled. An Outstanding Travel Order is one where the obligation has been created but the liquidation has not yet occurred. In other words, it is unliquidated—the government owes the traveler money, but the payment hasn’t been settled yet. This is why unliquidated is the best fit. If it were fully liquidated, there would be no outstanding balance. If it were not yet incurred, there would be no obligation at all. If it required audit review, that indicates a control concern, not the defining status. For example, a travel order with a $2,000 obligation but only $1,200 liquidated leaves $800 unliquidated, which is an Outstanding Travel Order.