United States Department of Agriculture Office of Procurement & Property Management Charge Card Service Center USDA Purchase Card Coordinators Policy Training Part I & II 2010 GSA SmartPay2 ® Conference Tuesday August 10, :30 - 1:40pm & 2:00 - 3:00pm Building B, Room B 308, Georgia World Congress Center

– USDA Charge Card Service Center – Purchase Card Training Agenda - Discussion Topics  Welcome  Introductions  CCSC Purchase Card Program Updates  New Initiatives  Purchase Policy Updates DR Required Reviews Administrative Actions  Convenience Checks  Comments Fields  Alerts EDN Visa IntelliLink  Training  Questions 2

– USDA Charge Card Service Center – Purchase Card Training Welcome & Introductions  Welcome  CCSC Purchase Card Team  John McCain- Program Manager  Frank Hodo- IT & Process Improvement Lead  Damien Sisca – A-123 Compliance & Fraud Detection Lead  Linda Wilson- Agency Advocate & Policy Support  Henry Hansen- Agency Advocate & Policy Support  Clara Hickerson- Communications, Policy & Training (DRT Strategies)  Yadira Stamp- CCSC Inbox Management (DRT Strategies)  Lynn Anderson- Technology Management (DRT Strategies)  Geoff Schrager- Data Support (DRT Strategies)  Merabell Puwo- Data Support (DRT Strategies) 3

– USDA Charge Card Service Center – Purchase Card Training CCSC Purchase Card Program Updates New Initiatives  Agency Incentive Program (Agency of the Quarter)  Criteria: The CCSC tracks performance measures for each Agency and selects one to spotlight each quarter on the CCSC Website. The ‘Agency of the Quarter’ should have 100% clean hierarchies and excel in one or more performance measures such as : Lowest percentage of ‘pending transactions’ (to encourage timely final approval of transactions) Greatest reduction in percentage of convenience check use Greatest percentage increase in spend (based on previous year spending)  The ‘Agency of the Quarter’ will be featured on the CCSC Homepage with a link to the CCSC ‘Agency of the Quarter’ Spotlight page (as depicted on the following slide) displaying: The Agency logo APC and/or HCA photo (optional), name, and Description of accomplishments Archive list of links to previous Agency honorees 4

– USDA Charge Card Service Center – Purchase Card Training CCSC Purchase Card Program Updates New Initiatives Congratulations to the Agency of the Quarter – Q3APHIS Animal & Plant Health Inspection Service who has achieved: Honorable Mention Agencies Rural Development (RD) Office of the Inspector General (OIG) Variance Convenience Checks usage 000% Spend increase $5,834,496.66$9,437, % Transactions Approved within 60 days 7,049 (19.8%) 38,772 (98.5%) 400%

– USDA Charge Card Service Center – Purchase Card Training CCSC Purchase Card Program Updates New Initiatives  APC Quarterly Newsletter  In May 2010, the CCSC launched the APC Quarterly Newsletter which includes Charge Card Program updates, news, and notices  Newsletters are posted on the CCSC website at: ccsc/ ccsc/  Contributions from Agencies  Agencies may submit news and updates  Ideas for content for the newsletter What kind of information would you like to see featured in the newsletter? 6

– USDA Charge Card Service Center – Purchase Card Training CCSC Purchase Card Program Updates New Initiatives  CCSC on Twitter Follow the CCSC on Twitter at CCSC_USDA. In 2010, the CCSC has joined the popular social networking site Twitter, so that we may quickly and efficiently disperse alerts to the Charge Card Community. The benefits of following CCSC on Twitter include:  Easier dissemination of information to the local and field level.  An interactive way to stay abreast of information.  A timely way to get questions answered and concerns addressed. 7 Twitter Sign-Up: Log on to and click ‘Sign up now’ if you do not already havewww.twitter.com a current twitter account.

– USDA Charge Card Service Center – Purchase Card Training CCSC Purchase Card Program Updates New Initiatives  Fraud Detection Hotline The CCSC has established a Fraud Detection Hotline number to grant program participants the ability to anonymously call the hotline and leave a message about potential fraud, misuse, or abuse of a government purchase card. The number is: USDA (8732) 8  Cases of fraud, misuse, and abuse are often exposed either by a program participant reporting suspicious card usage and/or through the use of reporting tools in account management and oversight by Coordinators and the CCSC.  The Fraud Detection Hotline will give program participants an outlet to report fraud and serve as an additional tool for the CCSC to proactively govern the program.

– USDA Charge Card Service Center – Purchase Card Training CCSC Purchase Card Program Updates New Initiatives  CCSC Website Updates  Addition of ‘Agency of the Quarter’ Spotlight for Purchase Main CCSC page Purchase Section  Forms - A new link has been added to the CCSC website (main page) with all charge card program forms. Forms for the Purchase Card Program include: Cardholder Request for New Purchase Card Reporting Hierarchy Setup Point of Contact (POC) Maintenance Form  FAQs Purchase (Coordinators, AOs, cardholders) Fleet Travel 9

– USDA Charge Card Service Center – Purchase Card Training CCSC Purchase Card Program Updates New Initiatives  Questionable Transactions Report (QTR)  The QTR is a report compiled and distributed by the CCSC (Damien Sisca) to assist Coordinators in flagging questionable transactions in an effort to reduce fraud, waste and abuse. The CCSC works directly with APCs on QTRs and resolutions. The QTR provides increased/ additional management and oversight. 10

– USDA Charge Card Service Center – Purchase Card Training CCSC Purchase Card Program Updates New Initiatives  Questionable Transactions Report (QTR), continued  QTR Process CCSC analyzes reports and lists all questionable transactions in the QTR, detailing the exact reasons the transactions were included in the QTR. CCSC enters ‘QTR to APC’ under the ‘Resolution’ Field and s it to the APC. Once the APC receives the QTR, they are required to obtain a valid explanation from the cardholder, explain the steps taken to resolve the questionable transaction and enter the information into the ‘Resolution Field.’ As depicted in the sample below, once the CCSC receives the response from the APC, the CCSC will convert the ‘Resolution Status’ box from ‘Yellow’ status to ‘Green’ status and successfully close the questionable transaction and the QTR. 11

– USDA Charge Card Service Center – Purchase Card Training CCSC Purchase Card Program Updates New Initiatives  Questionable Transactions Report (QTR), continued The CCSC Compliance and Oversight Division will analyze nine subject areas susceptible to fraud, misuse, and abuse. The CCSC selects a category and applies this area of research across the entire agency, generating reports on all cardholder transactions. These nine subject areas are:  Convenience Checks  Written > $2500 (Waiver #, Waiver Description, etc.)  Written to Visa Merchants  Written to an individual (people’s names)  Illegible Payee  Split Transactions (splitting transactions so total purchases are below single purchase limit)  Blocked Merchant Category Codes (MCC) (Casino, etc.)  Duplicate Transactions (same merchant/day)  Manual Override  Cash Advances 12

– USDA Charge Card Service Center – Purchase Card Training CCSC Purchase Card Program Updates New Initiatives  Questionable Transactions Reports (QTR), continued The CCSC is allotting a total time of three weeks from the initial QTR transmission to the final ‘Resolution’ from the APC to the CCSC.  CCSC is requesting all APCs to send any additional correspondence related to their QTRs in an attachment when submitting their final QTR ‘Resolution.’  This communication channel and flow of QTRs, via , between the CCSC and the APCs and the subsequent confirmation by the APCs with their entry into the ‘Resolution’ Status Box, validates receipt and review by the APCs, which adequately satisfies an A-123 Corrective Action Plan (CAP Component). Clean Status Letter  When the CCSC discovers the agency has a ‘Clean’ status, a letter is sent to the APC recognizing their high-level of compliance and oversight in managing their agency’s Charge Card Program in that particular oversight area. 13

– USDA Charge Card Service Center – Purchase Card Training CCSC Purchase Card Program Updates  Purchase Policy Updates  DR Check Waiver Process o Removed policy on: Required check waivers from agencies to request use of convenience checks. Independent Receipt o Previously read: Prior approval and subsequent review of purchase card activity is required for all purchase card transactions. This includes documenting independent receipt and acceptance of goods/services obtained with the purchase card or related alternative payment method. Purchases at or below the “de minimus” amount ($300) do not require independent receipt and acceptance. o Added to the policy: Agencies shall provide guidance for handling instances (e.g., emergency incidents and remote working conditions) where independent receipt and acceptance is so impractical as to be essentially impossible. Telecommunications o Removed policy on: Prohibition on Acquiring Telecommunications with the purchase card and/or the related alternative payment methods to acquire or pay for telecommunications services, supplies, or equipment in excess of $350, except as provided in AGAR Advisory No. 58A. 14

– USDA Charge Card Service Center – Purchase Card Training CCSC Purchase Card Program Updates  Purchase Policy Updates, continued…  Purchase Guides All policy updates will be added to the necessary Purchase Guides and updated version will be posted on the CCSC website and Coordinators will be notified.  Required Reviews (detailed on following slides) APC LAPC Agency-issued supplements for required reviews 15

16  APC Annual Purchase Card Program Review Newly Revised  Reduced from 2pgs to 1 pg Agency issued supplements for required reviews

17  LAPC Quarterly Review Checklist (pg. 1) Newly Revised  Reduced from 7pgs to 3 pgs Agency issued supplements for required reviews

18  LAPC Quarterly Review Checklist (pg. 2)

19  LAPC Quarterly Review Checklist (pg. 3)

– USDA Charge Card Service Center – Purchase Card Training CCSC Purchase Card Program Updates  Administrative Actions  APCs/LAPCs are responsible for communicating the importance of the cardholder’s responsibility in using the purchase card/convenience checks as well as the consequences and administrative actions for misuse, abuse, and fraud which may include: The immediate cancellation of the employee’s purchase card and/or convenience checks Suspension and/or removal of cards for a specific time and/or permanent termination of accounts for repeat or first time serious violations which include blatant violations of purchase card policy, splitting purchases, and/or allowing another employee to use purchase card. An employee (cardholder and/or AO) will be personally liable to the Government for the amount of any unauthorized transaction and may be subject to a fine of not more than $10,000 or imprisonment for not more than 5 years, or both, under 18 U.S.C  All instances of suspected fraud or abuse must be reported. The LAPC must forward all documentation related to the suspected fraud or abuse to the APC who will then involve the appropriate offices as necessary. 20

21  ‘Recommended Administrative Actions’ are listed in Exhibit 13 of the ‘Coordinator’s Purchase Card Program Guide’  This exhibit merely provides guidance for disciplinary and administrative penalties; each matter should be handled on a case by case basis.  OMB has further clarified the terms “fraud” and “erroneous or improper” purchase which can also be viewed in the Coordinator’s Guide

– USDA Charge Card Service Center – Purchase Card Training CCSC Purchase Card Program Updates  Convenience Checks  Reduction of the use of convenience checks CCSC Goal for FY11 is 25% Strategy for how to reduce the use of convenience checks APCs have been provided a list of vendors who accept the Visa-issued Purchase Card and were paid via check  Comments Fields AXOL has designated comments fields where users should enter additional information regarding each transaction to capture important transaction information and data. The chart below outlines the 5 Comment Fields located in AXOL within the Transaction Management – Transaction Detail screen:  Issues After a transaction is reallocated, you cannot edit or add comments 22

– USDA Charge Card Service Center – Purchase Card Training CCSC Purchase Card Program Updates  Alerts  Event Driven Notifications (EDN) Implementation The CCSC and US Bank Technical teams have identified some issues during the preliminary testing of the Access Online functionality of EDNs (initial testing began in April 2010). EDN is part of the CCSC next generation reporting and oversight functionality in AXOL. Functionality enhancements are planned throughout the Summer and Fall of 2010 with implementation in calendar-year EDNs will provide appropriate personnel with automated notifications of changes in cardholder status.  Visa IntelliLink Currently using it at a high-level at CCSC for fraud detection Agency use of IntelliLink will be decided at the APC level 23

– USDA Charge Card Service Center – Purchase Card Training CCSC Purchase Card Program Updates  Training  AgLearn Transition of Purchase policy training for Purchase from WBT to AgLearn is in process  Validation Testing for LAPC Training Takes place in 2011 (more detail to come, date set by A-123 project team)  Live/ In-person Training Requests Coordinators may submit requests for CCSC-led ‘webinar’ or local ‘in-person’ trainings, as needed (in-person trainings for larger groups only). Topics may include: Refresher on AXOL ‘How to Run Reports in AXOL’ Purchase Card Policy & Procedures 24

– USDA Charge Card Service Center – Purchase Card Training Questions 25

United States Department of Agriculture Office of Procurement & Property Management Charge Card Service Center Additional information on the Charge Card Service Center including News, Notices, POC Lists, Guides & Reference Material, Training Information, etc… can be accessed at