ARMY TRAVEL CARD PROGRAM FRANK RAGO ARMY PROGRAM MANAGER OFFICE, ASSISTANT SECRETARY OF THE ARMY (FINANCIAL MANAGEMENT & COMPTROLLER)

CONTRACT & TASK ORDER: CONTRACT STRUCTURE: GSA MASTER CONTRACT FOR ALL FEDERAL AGENCIES DOD TASK ORDER WITH CITI EFFECTIVE NOV 30, 2008 PERIOD COVERED: FOUR YEAR CONTRACT (NOV 2008 – NOV 2012) THREE TWO YEAR OPTIONS (DEC 2012 – NOV 2018) INCLUDES SERVICES FOR: INDIVIDUALLY BILLED ACCOUNTS (IBA) CENTRALLY BILLED ACCOUNTS (CBA)

PROGRAM FEATURES: VISA CARD W/ WIDE ACCEPTANCE ON-LINE MANAGEMENT SYSTEM CONTROLS: CREDIT CHECKS, MERCHANT CODES, CARD TYPES W/ CHARGE LIMITS: STANDARD CARD: $665 ATM CASH/$7500 TOTAL RESTRICTED CARD: $365 ATM CASH/$4000 TOTAL FEES: ATM CASH FEE OF 2% (REIMBURSABLE) RETURNED CHECK FEE OF $29, LATE FEE OF $29 BANK REBATES: BASED ON CHARGE VOLUME AND SPEED OF PAY FOR IBA and CBA Regarding rebates, you should know that -- at this point -- rebates to the Army are a thing of the past. This is due to: Our high delinquency rate -- enough said. A change to the basic contract that the Bank negotiated with GSA: Rebates are based on our total charge volume, adjusted for the amount of debt the Bank has to write-off at 210 days past due Before, our write-offs were deducted from our charge volume and then the rebate was calculated Now, a portion of our write-off (over 30 basis points) is deducted directly from our rebate on a dollar-for-dollar basis. This is like the Bank getting a tax credit rather than just a reduction in its taxable income.

TRAVEL & TRANSPORTATION REFORM ACT: EMPLOYEE MUST USE TRAVEL CARD FOR OFFICIAL TRAVEL EXPENSES AGENCY CAN EXEMPT TYPES OF PERSONNEL OR EXPENSE AGENCY MUST REIMBURSE TRAVEL EXPENSES W/IN 30 DAYS AFTER CLAIM AGENCY MAY COLLECT DELINQUENCY FROM PAY UNDISPUTED AMOUNTS ONLY AFTER NOTIFICATION/DUE PROCESS COLLECTION NTE 15% OF DISPOSABLE PAY For us, the TTRA came out of no-where. It was hard to find someone’s finger-prints on it, but it’s clear that the card industry was involved. Of course, because no one TALKED to the folks who had to execute this, there were some problems: Mandate to use the card for official travel: Sounds good, but DOD isn’t your typical Federal agency -- young troops, TDY vs. deployments, PCS. We took full advantage of provision for exemptions. Irony: Later, the Bank told us they wanted to reduce the number of accounts, as those infrequently used were costing them money (fixed expense to maintain, but with minimal charges, there wasn’t enough revenue) Reimburse within 30 days of claim or pay interest: Sounds good, but few settlements take more than 30 days & those that do rarely generate more than $1.00 in interest -- and payments under a dollar, we write off. Collecting delinquency from pay: THIS is what TTRA was really all about! Initially, DOD choose not to exercise the authority in TTRA to collect from pay. Later, as we were negotiating with the Bank to modify our DOD Task Order, we agreed to re-look this and eventually agreed to implement it. I have some concerns, however, about how this feature is perceived by some commanders -- more on this later. Note: disposable pay is the amount after taxes, retirement and insurance

PROGRAM GUIDANCE DODFMR VOLUME 9 CHAPTER 3 ARMY POLICY GUIDANCE OVERALL PROGRAM GUIDANCE DOD POLICY RESPONSIBILITY IBA AND CBA REQUIREMENTS EXEMPTIONS ARMY POLICY GUIDANCE AUGMENTS DOD GUIDANCE ASA (FM&C) POLICY MEMORANDUM

POLICY GUIDANCE ASA (FM&C) MEMORANDUM REQUIRES ADEQUATELY RESOURCED APC FUNCTION MONTHLY REVIEW OF TRANSACTIONS APC/CARDHOLDER TRAINING CLOSING OF INACTIVE ACCOUNTS DISCIPLINARY ACTION FOR ABUSE, MISUSE DISCOURAGE USE FOR DEPLOYMENT TRAVEL SECURITY CLEARANCE REVIEW NON SUFFICIENT (NSF) CHECK REPORTING

CARDHOLDER RESPONSIBILITIES USE TRAVEL CARD FOR ALL OFFICIAL TRAVEL EXPENSES EXPENSES ARE LIMITED TO THOSE NORMALLY REIMBURSED AT TRAVEL SETTLEMENT CARDHOLDER ONLY EXPENSES LIMIT CASH USAGE. USE TRAVEL CARD WHENEVER POSSIBLE

CARDHOLDER RESPONSIBILITIES RETAIN ALL RECEIPTS SUBMIT TRAVEL VOUCHER WITHIN 5 DAYS OF RETURN OR EVERY 30 DAYS IF TDY IS OVER 45 DAYS DURATION USE SPLIT DISBURSEMENT OPTION TO PAY CONTRACTOR. PAY BALANCE IN FULL AND ON TIME.

CARDHOLDER RESPONSIBILITIES UNDISPUTED CHARGES MUST BE PAID BY DUE DATE DISPUTES ARE THE RESPONSIBILITY OF THE CARDHOLDER CONTACT MERCHANT IMMEDIATELY OR CONTRACTOR WITHIN 60 DAYS OF STATEMENT DATE ON WHICH CHARGE APPEARS CHARGES NOT PAID OR DISPUTED WILL BECOME DELINQUENT

DELINQUENCY CYCLE 30 DAYS - PAST DUE 60 DAYS - DELINQUENT - CARD SUSPENDED 75 DAYS - $29 LATE FEE CHARGED TO ACCOUNT 90 DAYS - DUE PROCESS LETTER SENT TO CARDHOLDER ADVISING THEY HAVE 30 DAYS TO SETTLE ACCOUNT OR IT WILL BE SENT FOR COLLECTION VIA SALARY OFFSET 120 DAYS - CARD CANCELLED 210 DAYS - ACCOUNT CHARGED OFF/CREDIT BUREAU NOTIFIED

TRAINING Cardholder EAS Training: APC Training: Electronic Account System (CITIDIRECT) Classes at SmartPay 2 On-site when requested CBT training (www.defensetravel.dod.mil/passport) Cardholder EAS Training: CBT or in person by APC Cardholder initial and refresher training on GTCC use is located at the DoD TCPMO web site (www.defensetravel.dod.mil/passport)

ACCOUNTABILITY PERSONAL FINANCIAL RESPONSIBILITY VIOLATION OF PUBLIC LAW: PL105-264 CARDHOLDER AGREEMENT OUTLINES CONTRACTOR REMEDIES (LATE FEES, ETC.) STATEMENT OF UNDERSTANDING NEGATIVE CREDIT BUREAU REPORTING SALARY OFFSET OR INDEPENDENT COLLECTION AGENCY REFERRAL

CITI CUSTOMER SERVICE Dedicated representatives for each Service/Defense Agency at program manager level Dedicated customer service phone number for APCs 40% of cardholder customer service staff are prior BoA customer service employees

PROGRAM OVERSIGHT DOD INITIATIVES DATA MINING DOD ESTABLISHED INDICATORS VISA DATAMINING TOOL AVAILABLE SEP 2009 ARMY INTERNAL REVIEW OFFICE/AAA AUDITS CBA AND IBA DATA REPORTS TO SERVICE FOR ACTION EXPANDS ARMY ACCOUNT REVIEW REQUIREMENT REPORT ON RESULT OF TRANSACTION REVIEW TO INCLUDE ANY ADMINISTRATIVE/DISCIPLINARY ACTION TAKEN

PROGRAM OVERSIGHT DOD INITIATIVE (CONT’D) CREDITWORTHINESS CODIFIED BY FY 04 DEFENSE AUTHORIZATION ACT DOD WILL DETERMINE CREDITWORTHINESS BEFORE ISSUING CHARGE CARD S-1744 AND H.R. 3329 (Two new bills currently pending in this session) EXPANDS THE PROVISION GOVERNMENT WIDE DOD POLICY/OMB CIRCULAR 123 PART B CREDIT CHECK SELF CERTIFICATION MINIMUM FICO SCORE FAILURE TO MEET MINIMUM FICO SCORE OR SATISFACTORILY COMPLETE SELF CERTIFICATION WILL MAKE INDIVIDUAL INELLIGIBLE FOR CARD TRAVEL ADVANCE, PERSONAL FUNDS, CBA FOR TRANSPORTATION COST CAN RE-APPLY IN 24 MONTHS

PDT PROGRAM ALL AUTHORIZED RELOCATION EXPENSES EXCEPT HHG AND REAL ESTATE MUST REGISTER WITH APC PRIOR TO DEPARTURE ACCOUNT WILL BE PLACED IN MISSION CRITICAL STATUS/PDT WITH START AND END DATE ACCOUNT WILL NOT AGE OR INCUR LATE FEES WHILE IN STATUS ACCOUNT AGES CURRENT AT END DATE AND WILL NOT GO DELINQUENT FOR 60 DAYS

SUMMARY TRAVEL CARD MAKES TRAVEL CONVENIENT AND EASY. TRAVEL CARD IS FOR OFFICIAL TRAVEL EXPENSES ONLY. CARDHOLDER IS RESPONSIBLE FOR USE & PAYMENT. COMMANDER & SUPERVISORS MUST BE INVOLVED. WWW.ASAFM.ARMY.MIL