1. U.S. General Services Administration Federal Acquisition Service Travel Management Essentials Perry Hampton Office of Charge Card Management General Services Administration 2014 GSA SmartPay Training Forum July 29 to July 31, 2014

2. Federal Acquisition Service 2 Introduction to the GSA SmartPay Travel Card

3. Federal Acquisition Service 3 GSA SmartPay Travel Card Overview SmartPay Travel Accounts totaled 2.4 Million Total SmartPay Accounts 3.3 Million Travel Card Spend totaled $4.9 Billion Total SmartPay Spend $18.1 Billion Travel Card Transactions totaled 26.0 Million Total SmartPay Transactions 60.1 Million 64%27%9% YTD FY-14

4. Federal Acquisition Service 4 OMB Memorandum M-13-21 To help agencies comply with P.L. 112-194, the Office of Management and Budget (OMB) released OMB Memo M-13-21, Implementation of Charge Card Abuse and Prevention Act. The memo requires the following reports:  Agency Assurance Statement  IG Report on Audit Recommendation Implementation  Statistical Report - See OMB Circular A-123, Appendix B, Chapter 5.3.1  Narrative Report - See OMB Circular A-123, Appendix B, Chapter 5.3.2  IG Risk Assessments

5. Federal Acquisition Service 5 Governing laws and policies for travel card use:  Travel and Transportation Reform Act of 1998 (P.L. 105-264) mandates Travel Card for expense payment, exemptions listed in the Federal Travel Regulations (FTR)  Consolidated Appropriations Act of 2008 (P.L. 110- 161) requires credit checks for employees  Office of Management and Budget Circular A-123, Appendix B requires a charge card management plan for training, risk management controls, and managing refunds Laws and Governing Policies

6. Federal Acquisition Service 6 Special Note About Local Travel Below is guidance for the use of the GSA SmartPay Travel Card for local travel, in accordance with the FTR:  Optional use of the card for local travel will be for agencies, at their discretion o DoD Joint Travel Regulations already permits use of the Travel Card for local travel expenses o Examples of local travel include -- but are not limited to -- taxi fares, public transportation, and ferry tickets  Recommend agencies/organizations develop and issue internal policies addressing oversight and internal controls for managing use of the Travel Card for local travel

7. Federal Acquisition Service 7 Types of GSA SmartPay Travel Cards Centrally Bill Accounts (CBA) and Individually Billed Accounts (IBA) Travel Cards:  Standard Travel Cards (Individually Billed) o Limits based on agency policy and spilt disbursement is mandatory o Billing statement mailed to cardholder’s address  Restricted Travel Cards(Individually Billed) o Limits based on agency policy and spilt disbursement is mandatory o A/OPC “Activation/Deactivation” may be required o Billing statement mailed to cardholder’s address  Centrally Billed Accounts o Limited use – government liability o Limit consistent with agency mission o Agency is responsible for management and reconciliation

8. Federal Acquisition Service 8 Travel Card Management

9. Federal Acquisition Service 9 Management Leading Practices Leading practices for more effectively managing a GSA SmartPay Travel Card Program:  Monitor reports and remind cardholders to pay bills in a timely manner, to avoid becoming delinquent  Publish “Frequently Asked Questions” on the agency/organization’s internal website  Create a monthly newsletter for updates to travel policies and procedures  Develop automated reports, to eliminate manually performing data analysis

10. Federal Acquisition Service 10 A/OPC Roles and Responsibilities Agency/Organization Program Coordinators (A/OPC) are liaisons between agency management, GSA SmartPay contractor banks, and cardholders. Roles may differ, but responsibilities could include:  Managing the GSA SmartPay Travel Card program and promoting the proper use of travel cards  Monitoring for and taking appropriate action in the instances of fraud, waste, or abuse  Resolving travel card issues, as required  Developing agency/organization-specific policies and procedures, as necessary

11. Federal Acquisition Service 11 AO Roles and Responsibilities Approving Officials (AO) play key roles in preventing fraud, abuse, and misuse. Roles may differ, but responsibilities could include:  Review and approve all GSA SmartPay travel vouchers and verify charges were within scope of government travel  Monitor for and resolve all questionable charges  Verify receipt of purchases and/or transactions

12. Federal Acquisition Service 12 Cardholder Roles and Responsibilities Cardholders must use the GSA SmartPay Travel Card card in accordance with agency policy and government regulations.  Keep up to date with program and agency- specific training requirements and communications from A/OPCs (and take appropriate action)  Immediately report a lost or stolen card  Monitor and track expenses, as well as maintain receipts, in accordance with agency policy  Ensure vouchers are submitted in a timely manner and submit full payment for each undisputed bill

13. Federal Acquisition Service 13 Cardholder Roles and Responsibilities Cardholders must NEVER:  Use the GSA SmartPay Travel Card for personal use  Obtain ATM advances that exceed expected out- of pocket-expenditures  Allow monthly bill to become overdue; this could result in suspension or cancellation  Wait for receipt of the monthly bill to file claims  Pay for another employee’s travel card expense(s)  Write Personal Identification Numbers (PIN) on the GSA SmartPay Charge Card

14. Federal Acquisition Service 14 Bank Roles and Responsibilities The GSA SmartPay Program contractor banks – Citibank, JP Morgan Chase, and U.S. Bank – have important responsibilities, which include:  Provide AO or A/OPC the ability 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

15. Federal Acquisition Service 15 Travel Card Leading Practices

16. Federal Acquisition Service 16 Opportunities for Efficiencies Some leading practices for the GSA SmartPay Travel Card include:  Emphasize that use of the GSA SmartPay Travel Card for expenses on official Federal government travel is required by the Federal Travel Regulations and that it benefits agencies from a refund perspective  Leverage GSA SmartPay contract bank processes to reduce improperly assessed State taxes on IBA Travel Cards (currently 11 States do not tax these cards)

17. Federal Acquisition Service 17 Mitigating Abuse and Misuse Abuse and misuse impacts travel card performance and refund earning potential. Mitigation strategies:  Emphasize standards of conduct/ethics and clearly state consequences for misuse  Monitor authorization controls and set reasonable transaction limits  Review card activity and restrict spend use through Merchant Category Code (MCC) blocks  Deactivate cards as appropriate  Manage delinquency and implement proper training

18. Federal Acquisition Service 18 Travel Card Reporting There are a number of reports available from GSA SmartPay contractor banks to help A/OPCs address transactions, payments, disputes, and delinquencies.  Monitor bank reports regularly to monitor for fraud, abuse, and misuse  Use bank reports proactively, not reactively for payment  Understand available reports**  Develop automated reports Available Reports Reports include, but are not limited to: Account Activity Report Declined Authorizations Report Pre-Suspension Report Transaction Dispute Report Renewal Report ** A full list of reports is available in section C.3.3.1 of the GSA SmartPay2 Master Contract

19. Federal Acquisition Service 19 Travel Card Deactivation To help streamline travel card programs and mitigate the risk of fraud, abuse, and misuse, please remember to deactivate accounts that are no longer in use:  A/OPCs can quickly deactivate/reactivate cards electronically or by contacting the bank’s designated representative  If a card is deactivated, authorizations are declined at point of sale  Close charge card accounts for cardholders who leave the agency (will vary by agency policy and business line)

20. Federal Acquisition Service 20 Training Cardholders must take mandatory training and A/OPCs should:  Ensure cardholders fulfill training requirements  Provide a comprehensive face-to-face training as orientation for new cardholders, if possible  Engage in bank-sponsored training  Ensure training is easily accessible  Address standards of conduct/ethics and clearly state consequences for misuse

21. Federal Acquisition Service 21 GSA SmartPay Online Training OCCM offers free online travel card training for cardholders and A/OPCs :  Cardholders can register, set up a profile, and manage online training courses and certificates  Level 1 A/OPCs can run reports and search for cardholders within agencies https://training.smartpay.gsa.gov

22. Federal Acquisition Service 22 Tax Exemption OCCM maintains a list of tax exempt States. As of March 2013, there are 11 States and 1 U.S. territory that exempt individually billed charge cards from taxes.++  Alaska  Delaware  Florida*  Kansas  Massachusetts*  Missouri For a complete listing of States and requirements, please visit: https://smartpay.gsa.gov/about-gsa-smartpay/tax-information/state-response-letter ++ CBAs are always exempt from taxes in accordance with the Supremacy clause of the U.S. Constitution.  New York*  Oregon  Pennsylvania*  Texas*  Wisconsin*  Puerto Rico* *denotes form required

23. Federal Acquisition Service 23 CBA Tax Exemption All 50 states and U.S. territories exempt direct taxes on CBA cards, however 13 States require CBA tax exemption forms, including:  Florida, Georgia, Louisiana, Michigan, Minnesota, Rhode Island, South Dakota, Tennessee, Texas, Utah, West Virginia, Wisconsin, Wyoming Additionally, 2 States require forms for CBA travel cards:  North Dakota (all CBA travel)  Pennsylvania (hotel only)

24. Federal Acquisition Service 24 Resources

25. Federal Acquisition Service 25 What's New Program Statistics New Legislation State Tax Information Managing Your Program GSA SmartBlog Accepting GSA SmartPay® Cards Online Training for Cardholders and A/OPCs http://smartpay.gsa.gov GSA SmartPay Website and Blog

26. Federal Acquisition Service 26 General Contact Information GSA Contact Information:  GSA SmartPay Program Support (http://www.smartpay.gsa.gov) Helpline: (703) 605-2808 Bank Contact Information:  Citibank (http://www.cards.citidirect.com/welcome.asp)http://www.cards.citidirect.com/welcome.asp Customer Service: (800) 790-7206  JP Morgan Chase (https://www.paymentnet.com/Login.asp)https://www.paymentnet.com/Login.asp Customer Service: (888) 297-0781  U.S. Bank (https://access.usbank.com/cpsApp1/index.jsp)https://access.usbank.com/cpsApp1/index.jsp Customer Service: (888) 994-6722

27. Federal Acquisition Service 27 Additional GSA SmartPay Courses GSA SmartPay 2 Program Update Conduct Effective Oversight of Your GSA SmartPay Program GSA SmartPay 2 Master Contract Basics GSA SmartPay Saves: Innovative Payment Solutions GSA SmartPay Purchase Management Essentials GSA SmartPay Travel Management Essentials GSA SmartPay Fleet Management Essentials GSA SmartTax: What You Should Know About State Taxes GSA SmartPay Website

28. Federal Acquisition Service 28 Audience Questions

29. Federal Acquisition Service 29 Thank you for your time and attention! Contact Information Perry Hampton Perry.Hampton@gsa.gov Please provide your feedback and thoughts on our website, available at http://smartpay.gsa.gov/feedback. Don’t forget to visit the GSA SmartBlog at: https://smartpay.gsa.gov/blogs.