1. GSA SmartPay2 Purchase Card Basics
Introduce self – First and Last name.
Explain your role in Office of Charge Card Management. Years with OCCM
Explain your background and any relevant previous experience
Roberto Devarie
Milton Vazquez
Office of Charge Card Management (OCCM)
12th Annual GSA SmartPay Training Conference
August 10 – 12, 2010

2. Value to the Customer Learn about the GSA SmartPay2 Purchase Card
Understand specific roles and responsibilities
Discover and share leading practices of purchase card program management
Find out about general resources (e.g., training, reporting, contact information)
Explain the purpose of the presentation and what you hope that the attendees will gain from it.

3. Agenda GSA SmartPay2 Purchase Card Overview
Purchase Card Roles and Responsibilities
Purchase Card Leading Practices
General Resources
Questions
Briefly go over the agenda, and how you want the discussion to flow. Explain the audience that there are a series of questions throughout the presentation to gauge who is in the audience and their understanding of the purchase card program. Explain that you will allow time for questions and answers at the end of the presentation

4. ? Polling the Audience How many audience members are:
A. Level 1 A/OPCs
B. Level 2 A/OPCs
C. Level 3 A/OPCs
D. Unsure
How many audience members are new to the GSA SmartPay Training Conference this year?
A. Yes, this is my first year
B. No, I have attended the GSA SmartPay Training Conference before ?
Before we get started, we want to get a better idea of our audience today.
How many audience members are Level 1 A/OPCs, Level 2 A/OPCs, Level 3 A/OPCs, or unsure. If you are unsure what your title is, by the end of this presentation you should have a better idea.
How many audience members are new to the GSA SmartPay Training Conference this year?
Welcome to all that are new this year! – we’re excited to have you! And welcome back for those who have attended the conference in previous years. We hope you find the conference insightful and take away a lot of information for your purchase card program.

5. GSA SmartPay2 Program Overview
DID YOU KNOW…
$943 was spent using Federal charge cards every second in FY09
Enables over 350 Federal agencies/organizations to obtain charge card products and services through master contracts that GSA established with three banks: Citibank, JPMorgan Chase, and U.S. Bank
Agencies/organizations issued task orders against these master contracts to obtain charge card products and services
Agencies/organizations pay no direct fees to use the program
Period of performance for existing contracts is through 2018
GSA SmartPay is the federal government’s charge card program. In general, the charge card is used as a mechanism by the government to pay for commercial goods and services, travel and travel related expenses and vehicle fleet expenses (fuel and maintenance).
The contract with each of the banks is collectively referred to as the “Master Contract”. It is administered by GSA. Other agencies utilize the master contract by placing task orders against it, or tagging onto existing task orders.
The charge cards are on either a VISA or MasterCard platform. Visa and MasterCard are commonly referred to as “associations.” Merchants who accept VISA and MasterCard can also accept the GSA SmartPay charge card.

6. GSA SmartPay2 Purchase Card Program Benefits
Safety – improves financial controls and eliminates the need for cash
Electronic Access to Data – contractor banks' Electronic Access Systems (EAS) provide agencies/organizations with accurate, comprehensive transaction detail with a few clicks of a button
Refunds – provides refunds to agencies/organizations based upon dollar volume of transactions; In fiscal year 2009, refunds totaled over $255 million program-wide
Administrative Savings – provides significant administrative cost avoidance and efficiency; In fiscal year 2009, agencies/organizations avoided $1.5 billion in administrative processing costs using the GSA SmartPay purchase card*
In addition to the listed benefits of the governmentwide purchase card program, the GSA SmartPay purchase card program provides cards and associated services in support of official government purchases
-streamlines the ordering, payment and procurement procedures, and reduces administrative costs under the simplified acquisition threshold
-improves government operations by simplifying the financial processes
-allows a platform to improve government operations and accountability
-Worldwide Acceptance – The GSA SmartPay2 Charge Cards provide greater access to merchants because they are accepted worldwide
Refunds:
The government saves on processing costs and generates revenue through volume refunds:
Productivity refunds: based on the timeliness and/or frequency of payments to the bank (faster payments = higher refunds)
Sales refunds: based on the dollar or spend volume during a specified time period
Corrective refunds: payments made to the agency/organization to correct improper or erroneous payments on an invoice
* Source: Palmer, R., & Gupt, M. (2007). The 2005 Purchasing Card Benchmark Survey Results

7. Polling the Audience
What was the amount of total spend for the purchase card in FY09?
A. $30 billion
B. $19 billion
C. $9 billion
D. $15 billion ?
Total FY 09 spend on the purchase card was $19 billion, which amounted for 65% of overall program spend in FY09.
The entire program total spend was $30 billion in FY09, with a total of $255 million in agency/organization refunds as a net of GSA fees.
ANSWER:
B. $19 billion! Total purchase card spend amounted for 65% of overall program spend in FY09.

8. GSA SmartPay Purchase Card – By the Numbers
Top 10 Agencies by Purchase Card Spend (FY09)
Dept. of Defense
$8.3 Billion
Dept. of Veterans Affairs
$7.2 Billion*
Dept. of Justice
$712.0 Million
Dept. of Health & Human Services
$554.8 Million
Dept. of Agriculture
$549.0 Million
Dept. of Homeland Security
$517.2 Million
U.S. Postal Service
$264.5 Million
Dept. of Transportation
$196.0 Million
Dept. of Commerce
$135.2 Million
Dept. of Treasury
$97.5 Million
FY08
FY09
% Change
Spend
$19.8 B
$19.3 B
-3%
Transactions
25.5 M
21. 8 M
-14%
Cards
276,021
269,913
-2.2%
Listed are FY09 program statistics for the Purchase Card.
Spend: $19.3 billion, down 3% from FY08
Transactions: 21.8 million, down 14% from FY08
Cardholders: 269,913, down 2.2% from FY08
The 14% decrease in transactions might be an indicator that cardholders are learning how to use their purchase cards more effectively
Also listed are the Top 10 Agencies by Purchase Card Spend in FY09. DoD remains the largest.
DID YOU KNOW…
Agencies/organizations have received $1.3 billion in gross refunds since the start of GSA SmartPay?!
Refunds:
Refunds: $255 million
GSA SmartPay agency/organization refunds totaled $255 million in FY09, a 36% increase over the FY08 total of $187 million, despite a 3% reduction in program spend from FY08 to FY09
This increase is a result in improved refund rates from the GSA SmartPay2 transition
Agencies/organizations have received $1.3 billion in refunds since 1997
Based on the refund opportunities in the GSA SmartPay2 Master Contract, GSA OCCM estimates that over the next 10 years agencies/organizations have the potential to receive an even greater number of refunds
GSA OCCM has reported this data to the White House
*Includes Prime Vendor program

9. Purchase Card Overview
Now we will discuss the purchase card program overview.

10. Polling the Audience
What are some uses of the GSA SmartPay Purchase Card?
A. Supplies
B. Services
C. Travel-related expenses
D. A (Supplies) and B (Services)
E. All of the Above ?
The purchase card program provides cards to federal employees to make official government purchases for supplies, goods, and services under the micro-purchase threshold of $3,000 per Federal Acquisition Regulation (FAR)
There are exceptions to the micro-purchase threshold, which we will discuss shortly.
ANSWER:
D. Supplies and Services, and more! In accordance with the Federal Acquisition Regulation (FAR) the GSA SmartPay2 Purchase card is used for making official government purchases for supplies, goods, and services under the micro-purchase threshold of $3,000.

11. GSA SmartPay Purchase Charge Card
The GSA SmartPay Purchase Charge Card provides cards to federal employees to make official government purchases for supplies, goods, and services under the micro-purchase threshold of $3,000 per Federal Acquisition Regulation (FAR)
The purchase charge card is both a procurement and payment mechanism for micro-purchases
For purchases above the micro-purchase threshold, the purchase card may be used as an ordering and payment mechanism, but not a contracting mechanism
The following items may not be purchased with the purchase card, as per the GSA SmartPay2 Master Contract:
Long-term rental or leasing of land or buildings
Travel or travel-related expenses
Cash advances
How can you use your GSA SmartPay purchase card and what does it provide?
The purchase charge card is both a procurement and payment mechanism for micro-purchases
For purchases above the micro-purchase threshold, the purchase card may be used as an ordering and payment mechanism, but not a contracting mechanism
How should you NOT use your GSA SmartPay purchase card?
Long-term rental or leasing of land or buildings
Travel or travel-related expenses
Cash advances

12. GSA SmartPay Purchase Charge Card (cont’d)
All purchase card accounts are Centrally Billed Accounts (CBA), and the liability for transactions made by authorized cardholders is borne by the government
The government is not liable for transactions on the card when the use of the card is by a person who does not have actual, implied, or apparent authority for such use
If the card is used by an authorized cardholder to make an unauthorized purchase, the agency/organization is responsible for taking appropriate action against the cardholder such as:
Counseling
Cancellation of Purchase Card
Notation in employee performance evaluation
Suspension and or termination of employment
Here are some key points about the GSA SmartPay purchase card:
All purchase card accounts are Centrally Billed Accounts (CBA), and the liability for transactions made by authorized cardholders is borne by the government
The government is not liable for transactions on the card when the use of the card is by a person who does not have actual, implied, or apparent authority for such use
If the card is used by an authorized cardholder to make an unauthorized purchase, the government is liable for payment and the agency/organization is responsible for taking appropriate action against the cardholder such as:
Counseling
Cancellation of Purchase Card
Notation in employee performance evaluation
Suspension and or termination of employment
Note: the GSA SmartPay website offers resources for protecting your charge card.

13. Polling the Audience
What is the micro-purchase threshold for contingency operations within the U.S?
A. $3,000
B. $10,000
C. $15,000
D. There is no micro-purchase threshold for contingency operations ?
$15,000. In accordance with the Federal Acquisition Regulation (FAR) the GSA SmartPay2 Purchase card is used for making official government purchases for contingency operations within the U.S. under a micro-purchase threshold of $15,000.
ANSWER:
C. $15,000. In accordance with the Federal Acquisition Regulation (FAR) the GSA SmartPay2 Purchase card is used for making official government purchases for contingency operations within the U.S. under a micro-purchase threshold of $15,000.

14. Understanding the “Micro-purchase” threshold
“Micro-purchase” means an acquisition of supplies, goods or services in which the amount does not exceed $3,000 (source: FAR 13.2)
The limit is $2,000 in the case of construction
The limit is $15,000 in the case of contingency operations inside the U.S.
The limit is $25,000 in the case of contingency operations outside the U.S.
Cardholders cannot split purchases in order to stay below the authorized spend limit
For purchases above the micro-purchase threshold, the purchase card may be used as an ordering and payment mechanism, not a contracting mechanism
Here we will make sure everybody understands the micro purchase threshold. Micro-purchase means an acquisition of supplies or services in which the amount does not exceed $3,000.
A few exceptions:
-For construction, the micro-purchase threshold is $2,000
-For acquisitions of supplies or services that, as determined by the head of the agency, are to be used to support a contingency operation or to facilitate defense against or recovery from nuclear, biological, chemical, or radiological attack, the micro-purchase threshold is —
(i) $15,000 in the case of any contract to be awarded and performed, or purchase to be made, inside the United States; and
(ii) $25,000 in the case of any contract to be awarded and performed, or purchase to be made, outside the United State
For purchases above the micro-purchase threshold, the purchase card may be used as an ordering and payment mechanism, not a contracting mechanism.
For example, an order has been placed with a contractor on GSA Federal Supply Schedule for $15,000; the award was made using the ordering procedures in accordance with FAR The contractor agrees to accept the purchase card as payment, so when the order is delivered, the contractor bills the purchase card account instead of issuing an invoice directly to the agency/organization

15. Purchase Card Roles & Responsibilities
Now we will discuss the purchase card program stakeholders and their roles and responsibilities.

16. GSA SmartPay2 Program Stakeholders
Office of Management and Budget (OMB)
Perform oversight of the government-wide charge card program
Agencies/ Organizations
Use charge card products and services to support their missions and operations
Office of Charge Card Management (OCCM)
Provides overall program management and advocacy
MasterCard/ VISA
Provides the transaction network for GSA SmartPay2 charge cards
This slide covers the main list of stakeholders for the governmentwide charge card program. Additionally, each agency may have their own stakeholders which play an important role in the management of their charge card program. E.g., IT offices, internal policy offices, finance…
Banks
Provide charge card products and services through GSA SmartPay2 Master Contracts; partner with MasterCard/VISA to issue cards

17. Office of Charge Card Management Responsibilities
Provide a comprehensive and flexible master contract
Offer strong customer orientation and frequent customer contact/support through:
Test and share best practices
Engage in continuous market research and regular meetings with industry
Deliver “Beyond Plastics” strategy and conferences
Provide balanced customer advocacy and program leadership
Training workshops, guides and GSA SmartPay Annual Training Conference
GetSmart quarterly newsletters
Monthly meetings
Agency POCs
Strong web presence
Ad hoc working groups
Customer satisfaction surveys
Social Networking exploration
The Office of Charge Card Management Provides overall program management and advocacy

18. Polling the Audience
True or False: A/OPCs are required to maintain an up-to-date list of account names, account numbers, addresses, addresses, telephone numbers, etc., of all current cardholders and accounts
True
False ?
ANSWER:
A. TRUE. As outlined in the master contract, A/OPCs are required to maintain this information for all current cardholders and accounts. One of the keys to an effective charge card programs is maintaining the most current and up-to-date information.

19. Roles & Responsibilities of A/OPCs
Serve as the liaison between agency/organization management, GSA SmartPay2 contractor banks, purchase cardholder, and the Office of Charge Card Management (OCCM)
Manage agency/organization purchase card program, in support of agency/ organization mission and operations
Promote appropriate use of purchase card
Take appropriate action regarding charge card fraud, misuse or abuse
Resolve technical and operational problems between GSA SmartPay2 contracting bank and the cardholders as required
Develop agency/organization-specific policies and procedures as necessary
Keep lines of communication open with all key program participants
Note: A/OPC responsibilities may vary among agencies/organizations
It is the responsibility of the A/OPC to make sure that all cardholders are appropriately using the cards. It is important to monitor every day transactions in order to make sure that the cardholder being responsible. If the cardholder is not using the card appropriately, the A/OPC must work with the bank to make sure disciplinary actions are taken appropriately.
We are going to walk through the responsibilities of A/OPCs, cardholders, and Approving Officials (AOs), and contractor banks. A key factor in managing your purchase card program is to have the responsibilities and roles of the key players clearly defined and established. Training and education is important for AOPCs. Agency policy should include direction regarding separation of duties to minimize the risk of fraud. Assignment of duties such as authorizing, approving and recording transactions; receiving assets; approving cardholder statements, certifying funding, etc. should be assigned to separate individuals to the greatest extent possible.

20. Polling the Audience
True or False: Cardholders have their own responsibilities for managing their GSA SmartPay2 charge card(s) appropriately.
True
False ?
ANSWER:
A. TRUE. As outlined in the Master Contract, cardholders are required to follow specific rules and responsibilities, a number of which are defined in GSA SmartPay cardholder training and agency/ organization specific training.
Now we will poll the audience

21. Roles & Responsibilities of Cardholders
Use the charge card appropriately for authorized purchases, in accordance with agency/organization policy, laws, and governmental regulations
Keep up-to-date with required program and agency/organization specific training, including refresher training
Be aware of communications from A/OPCs and take appropriate action
Understand preventative measures to avoid fraud and misuse
Understand GSA SmartPay Charge Card liabilities
Shop and purchase smarter
Use GSA Advantage!® to conduct quick and easy market research and to order already negotiated low-price items
Take advantage of the Blanket Purchase Agreements (BPAs) your agency has negotiated to get better prices
Always ask for discounts at the register - whether or not point-of-sale discounts are given
Buy green products in support of The President’s green purchasing program
Cardholders have their own responsibilities for managing their charge card(s) appropriately. Always make sure that the most current training is taken to make sure that the basis is covered. Are there any additional agency/organization-specific responsibilities that you entrust to your cardholders?
-Keep up on the latest news: Look out for communications from A/OPCs and take appropriate action
-Minimize your agency’s fraud and misuse
-Understand your liabilities
It is the responsibility of the A/OPC to make sure that all cardholders are appropriately using the cards. It is important to monitor every day transactions in order to make sure that the cardholder being responsible. If the cardholder is not using the card appropriately, the A/OPC must work with the bank to make sure disciplinary actions are taken appropriately.

22. Responsibilities for using the Purchase Card (cont’d)
Do’s
Keep the card in a secure and safe place
Maintain a log of all your purchases
Use the purchase card only to make informed buys of approved goods and services
Observe all dollar limits on purchases
Reconcile all transactions
Resolve disputes in a timely manner
Use the card ethically
Immediately report a lost or stolen card to you’re A/OPC and card issuer
Destroy any lost or stolen cards that are recovered
Be aware of identity theft schemes attempting to gain access to financial information
Return your purchase card to you’re a/OPC if you leave your agency/organization or retire
Don’ts
Use the purchase card to purchase long-term rentals, travel or travel-related expenses, cash advances, personal items, or items that exceed the government’s actual need
Allow others to use your card (it is assigned to you and is your responsibility)
Split purchases in order to stay below your authorized spend limit
Purchase charge card holders have the ability to decide what to purchase, when to buy it, and from whom. Having this card provides your agency/organization numerous benefits as we already reviewed, but these benefits come with responsibilities.
Here we have listed a brief reference for “Do’s and Don’ts” to using the purchase card. A full list of Purchase Card Do’s and Don’ts can be found in the “Helpful Hints for Purchase Card Use” brochure
A full list of Purchase Card Do’s and Don’ts can be found
in the “Helpful Hints for Purchase Card Use” brochure

23. Roles & Responsibilities of Approving Officials (AO)
Review and approve all purchases made on the Fleet Card and ensure that they are appropriate and necessary for accomplishing the agency’s/organization’s mission
Resolve all questionable charges
Certify the monthly invoice resulting from the purchases of the cardholders within his/her account structure
Verify receipt of the purchase/transaction
Serve as the front lines of defense against misuse/abuse and fraud
Approving Officials are a critical part of the charge card program. Proper care must be taken to ensure that Approving Officials completely understand their role and responsibilities, and that they assist in monitoring card use appropriately. Approving Officials are often the front lines of defense against misuse/abuse and fraud.

24. Roles & Responsibilities of Banks
Allow the AO or A/OPC to view current statements, payment history, and account information to make payments electronically
Issue required reports to A/OPCs
Provide assistance with audits and investigations
Provide sales and productivity refunds
Citibank: (customer service)
JPMorgan Chase: (customer service)
U.S. Bank: (customer service)
GSA SmartPay2 Purchase Card Service Providers
Citibank
MasterCard
VISA
JPMorgan Chase
US Bank
Listed are roles and responsibilities of GSA SmartPay2 contractor banks.
Contractor banks provide charge card products and services to agencies/organizations through the Master Contract and partner with MasterCard/Visa to issue cards
Provide training and training support
Issue required reports, data analysis, and additional reporting support
Provide assistance with audits and investigations
Provide sales and productivity refunds
Offer commercial billing and automated payment systems
Provide controls for preventing card misuse
Allow the cardholder to view current statements, payment history, and account information to make payments electronically
Please note the bank contact info:
Bank Contact Info:
Citibank: (customer service)
JP Morgan Chase: (customer service)
U.S. Bank: (customer service)

25. General Purchase Card Management
Now we will discuss leading practices for managing the purchase card program

26. Poll the Audience
                                                        
Are the purchasing procedures with the GSA SmartPay Purchase Card clearly defined at your agency/organization?
A. Yes
B. No
Do you run ad hoc reports for your GSA SmartPay Purchase Card program?
Do you know how to set authorization controls on the GSA SmartPay Purchase Card? ?
Do you understand the hallmarks of an effective charge card program?
We would like ask a few questions for the audience to gauge your understanding on how to lead an effective charge card program
Reach out to your GSA SmartPay point of contact
Utilize bank provided training and other services
NOTE: Interact with the audience to obtain their answers to these questions.

27. Leading Practices: Purchase Card Management Establish Internal Policies
Agencies/organizations should define a list of A/OPC duties and responsibilities in their written policy and A/OPC training material to ensure that all parties understand their role
A/OPCs should establish clear policies for their agency/organization for purchase cardholders by:
Setting authorization controls on purchase cards – dollars per transaction limit, transactions per day limit, Merchant Category Codes (MCCs), etc.
Outlining eligibility for using the purchase card
Designating who should have authority to make changes to accounts
A/OPCs and cardholders should review Office of Management and Budget (OMB) Circular A-123, Appendix B “Best Practices”
Responsibilities of cardholders, AOs, and A/OPCs should not overlap to ensure that management controls are not circumvented
Agencies/organizations should define a list of A/OPC duties and responsibilities in their written policy and A/OPC training material to ensure that all parties understand their role – this is particularly important in situations where there is frequent turn over of A/OPCs
Consistent and clear communications is key to successfully managing the purchase card program, this could include creating a monthly newsletter and publishing frequently asked questions (FAQs). These best practices can be found in the purchase card program guides and resources provided online.
Setting up clear and accurate internal policies could be the first defense in identify and minimizing cardholder fraud and misuse. Some of these are:
Timeframes for cancelling inactive cards and cards for exiting/retiring employees
Controls on cards – credit, single purchase limit, Merchant Category Codes (MCCs), etc.
Cash advances and convenience check limits
Who should receive a card
Who should have authority to make changes to accounts
Assignment of duties (such as authorizing, approving, and recording transactions), receiving assets, approving cardholder statements, making payments, certifying funding, and reviewing or auditing should be assigned to separate individuals to the greatest extent possible
-when appointing A/OPCs, Aos, consider factors such as grade, position, training , etc. to ensure they can successfully perform their duties

28. Leading Practices: Purchase Card Management Establish Internal Procedures
A/OPCs should establish clear procedures by explicitly outlining the following:
How to determine if unauthorized users have access to cards
How to obtain, change, and close an account
Reconciliation process
How to perform an annual review of all issued cards
Audit process and frequency
Authorization controls
Process for identifying an alternate point of contact to receive and accept Purchase Card related material
Cardholders should be aware of agency/organization procedures
Internal procedures should be defined to assist program coordinators with enforcing the policies. Some are:
How to cancel GSA SmartPay charge cards
How to determine if unauthorized users have access to cards
How to obtain, change, and close an account
Policy and refresher trainings for cardholders and users
Reconciliation process
Audit process and frequency
Authorization controls

29. Leading Practices: Preventing Misuse/Abuse & Fraud
Establish agency/organization policies and procedures to prevent misuse
Address standards of conduct/ethics and clearly state consequences for misuse
Set reasonable charge and transaction amount limits
Restrict spend use through Merchant Category Code (MCC) Blocks
Deactivate cards as appropriate – cards with little or no activity should be considered for cancellation
Manage delinquency
Implement proper training
Review card activity through reports generated from bank Electronic Access Systems
DID YOU KNOW…
Misuse by employees impacts the performance of agency/organization program and refund earnings potential
Misuse/Abuse involves the use of a purchase card for anything other than official government goods and services
Non-cardholder fraud involves use of the card or cardholder data by an unauthorized person
How can you prevent fraud and misuse?
Establish agency/organization policies and procedures to prevent misuse
Address standards of conduct/ethics and clearly state consequences for misuse
Set reasonable credit, transaction, and cash access limits
Monthly credit limits should correspond to historical spend patterns and the requirements of the job
Limits may be raised easily to accommodate special circumstances
Higher credit limits increase risk of fraud and misuse/abuse
Restrict spend use through Merchant Category Code (MCC) Blocks
Block certain merchant category codes (MCC) to prevent unauthorized use
Remember: MCC blocks are NOT foolproof! Work with merchants/contractors to correct inaccurate MCCs
We encourage you to work with merchants/contractors to correct inaccurate MCCs
Deactivate cards as appropriate
Review cardholder activity through reports generated from bank Electronic Access Systems
Manage delinquency
Implement proper training
Note:
More information on this topic will be provided during the “Effective Oversight” presentation during this conference
Check out the new GSA SmartPay® website for resources on preventing fraud and misuse. And provide comments/feedback on our Blog, which discusses this hot topic.
More information on this topic will be provided during the “Conduct Effective Oversight of Your GSA SmartPay Program” (Session 7, Wednesday 12:30pm, GA Ballroom and Session 14, Thursday 3:30pm, GA Ballroom

30. Polling the Audience
                                                        
Have you identified cases of misuse/abuse and/or fraud with the Purchase Card in your agency/organization?
A. Yes
B. No ?
Please share with us how you have addressed the situation
Report any suspected fraud to your contracting bank or agency’s/organization’s Inspector General Office
Contact your GSA SmartPay2 contracting bank to see what tools and resources they provide for eliminating misuse/abuse and fraud
Many agencies/organizations provide a fraud hotline number for reporting misuse/abuse and fraud
For those of you who have identified cases of misuse/abuse and/or fraud in your agency/organization, would you please share with us how you have addressed the situation?
If a cardholder reports fraud, it is your responsibility to contact the issuing bank for further investigation.  They will block/cancel the card and replace it immediately.  If you suspect a cardholder is guilty of fraud, you can file a complaint with your agency’s Inspector General.  Investigations are initiated upon receipt of a complaint or other information that gives a reasonable account of the wrongful or fraudulent act.  Many agencies provide fraud hotline numbers to help reporting of fraud.  Be as specific as possible when calling or sending a complaint.  The following should be provided:
The employees’ full name
Rank or pay grade
Duty station
Specific suspected fraudulent act or wrong doing
Specific dates and times
Specific location of where the suspected fraudulent act occurred
How the individual completed the alleged fraudulent act.
Based on the findings of the investigation, you may be required to notify an employee’s supervisor and human resources office for further internal administrative action.  Depending on the action you may also need to contact other organizations including:
The bank’s fraud unit
The IG
The Fraud Hotline
The DOD Criminal Investigative Service (DCIS)
The Federal Bureau of Investigation (FBI)
The Naval Criminal Investigation Service (NCIS)
The U.S. Army Criminal Investigation Service (USACIDC)
The Air Force Office of Special Investigators (AFOSI)
**Note this information is provided on the GSA SmartPay website, under “Program & Card Basics: What happens if fraud has already taken place?”

31. Leading Practices: Deactivation
Deactivate purchase cards when not in frequent use by cardholders
A/OPCs may quickly deactivate/reactivate cards electronically or through the bank’s customer service
If a card is deactivated, authorizations will be declined at the point of sale
Notify cardholder of deactivation, and communicate procedures to re-activate (e.g., who to call, when to call)
Be wary of automatic billing (e.g. magazine subscriptions) and forced transactions (e.g. vendor manually charges card)
Close purchase charge card accounts for employees/cardholders who leave the agency
When cards are not in frequent use it is important to deactivate those cards. If a card is deactivated, authorizations will be declined at the point of sale. Remember to cancel recurring charges (e.g. magazine subscriptions) when you are deactivating cards.
REMIND those cardholders who move to a new residence to contact the bank to change their home address(es)…
This is a best practice….one that is often forgotten!!

32. Leading Practices: Reporting
GSA SmartPay2 contractor banks are required to issue a set of reports to A/OPCs (determined by the agency/organization) that cover topics such as transactions, payments, disputes, delinquencies
Benefits of Reports:
Allow A/OPCs to oversee their GSA SmartPay Purchase Card program’s overall financial condition
Monitor for potential misuse/abuse and fraud
Provide invoice and payment data
Supply necessary data to fulfill OMB requirements
A/OPCs should:
Monitor reports regularly
Use reports proactively, not reactively
Understand and familiarize yourself with all available reports
Develop ad hoc reports
Save reports in a shared folder so all A/OPCs can access them
Listed are leading practices for reporting. The reporting section of the Master Contract is Broken out into two sections: Agency Reports and GSA Reports. There are 38 reports available to agencies. Some of these reports are specific to each business line.
Monitor reports regularly
Become familiar with all of the available reports
Do not completely ignore a particular report – it may contain very relevant information
Use reports proactively, not reactively
These reports are very useful at documenting things that have happened in the past
Careful examination of these reports can also reveal trends as they develop
Utilizing reports proactively can help to prevent fraud/waste/abuse, or assist in identifying potential strategic sourcing opportunities
Develop ad hoc reports
Eliminate performing manual data analysis by developing reports that can be generated as needed
Automation of the process increases reliability of analysis while also saving you time

33. Using Reporting Tools for Cardholder Activity Review
Account Activity Report
Declined Authorizations Report
Dispute Report
Unusual Spending Activity Report
Master File
Ad Hoc Report
Account Activity Report – allows A/OPC to sort transactions by dollar size, merchant, date, or type
Declined Authorizations Report – identifies cardholders who have attempted to use a card to buy an item for which they are not authorized, exceeds their single-purchase or monthly purchase limits, falls under a blocked MCC
Dispute Report – identifies cardholders with excessive disputes
Unusual Spending Activity Report – identify transactions that may warrant further review
Master File – should be reviewed periodically to eliminate cardholders who are no longer employed at the agency/organization, correct addresses, verify appropriate card limits and authorization controls
Ad Hoc Report – check with your contractor bank to see what is available
Audits:
Audits are performed to ensure compliance with policy and to detect fraud and misuse. Audits may review internal and external operations and are general in nature—not focused on specific actions or individuals. While investigations tend to look at more specific areas or individuals inside and outside an organization. A strong bond between your purchase card program and the Office of the Inspector General is key to successful management of your purchase card program. While *audits* are often seen as a negative action, they can be used as a positive *preventative measure* in managing your program.
A full listing of agency reports can be found in section C of the GSA SmartPay2 Master Contract

34. Leading Practices: Training
Ensure cardholders and A/OPCs fulfill the required refresher training requirements at a minimum every three years, or more frequently per agency/organization policy; purchase-specific GSA SmartPay online training:
Cardholders:
A/OPCs:
Provide a comprehensive face-to-face training as orientation for new cardholders
Engage in bank-provided training
Attend other courses offered at the Annual GSA SmartPay Training Conference
Attend GSA SmartPay Courses offered at GSA Expo
Ensure that training is easily accessible
Address standards of conduct/ethics and clearly state consequences for misuse
In accordance with the OMB Circular A-123, Appendix B, training is required for A/OPCs, Approving Officials, and cardholders. Keep in mind that in accordance to the OMB Circular, *refresher* training is required at a minimum every 3 years, or more frequently depending on your agency policy.
Here are some questions to ask when managing your purchase charge card program and developing *training* requirements:
Has training been received prior to appointment—for AOs and/or A/OPCs or prior to issuance of a purchase card—for cardholders?
Are copies of training certificates kept on file in a centralized location?
How often is refresher training provided?
How do you track training completion?
Are learning objectives properly defined and tested?
Training resources can be found online on the GSA SmartPay website

35. General Resources
Thank you!

36. General Resources GSA SmartPay website: www.gsa.gov/gsasmartpay
Office of Management and Budget (OMB) Circular A-123 Appendix B
Establishes standard minimum requirements and best practices for improving the management of government charge card programs
For more information, visit:
Federal Acquisition Regulations (FAR)
Agency/Organization specific policies and established procedures
For more information, visit:
Information using your purchase card to buy “green” products available on the Office of the Federal Environmental Executive website:
Guides and brochures available online, and hard copies may be ordered by visiting the
Blueprint for Success: A Guide for Purchase Card Oversight
Mini card-sized brochure – “Helpful Hints for Purchase Card Use”
Listed are general resources that A/OPCs, cardholders should familiarize themselves with.

37. Other GSA SmartPay Courses being offered
GSA SmartPay2 Fleet Card Basics
GSA SmartPay2 Travel Card Basics
GSA SmartPay2 Master Contract Basics
GSA SmartPay Program Update
GSA SmartPay in More than One Flavor: Innovative Products & Services
Conduct Effective Oversight of Your GSA SmartPay Program
Basic Charge Card Payment Reconciliation
Navigating the GSA SmartPay Website
Listed are additional GSA SmartPay courses being offered during this Conference.
Master Contract Basics
Fleet Card Basics
Travel Card Basics
GSA SmartPay Program Update
GSA SmartPay in More than One Flavor: Innovative Products & Services
Effective Oversight of Your GSA SmartPay Program
Basic Charge Card Payment Reconciliation
Navigating the GSA SmartPay Website

38. Roberto Devarie, roberto.devarie@gsa.gov, (571) 289-6110
Questions
Please provide your feedback and thoughts about the current
and future program at:
under “GSA SmartPay Program Feedback Form”
Contact Us
Roberto Devarie, (571)
Milton Vazquez, (703)
GSA SmartPay Program Support  Phone: (703)  
Information provided in this course as well as additional information regarding the purchase card program can be found on our website at:
Our contact information is also listed on this slide. At this time, we are happy to answer any questions you may have.
Allow approximately minutes for questions.

39. Thank you!
Thank you!