U.S. General Services Administration. How Do I Manage My Centrally Billed Purchase Program Adam Jackson Account Manager Citi

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1 U.S. General Services Administration How Do I Manage My Centrally Billed Purchase Program Adam Jackson Account Manager Citi July 2012

2 This material is intended for use by the GSA only 2012 GSA SmartPay Conference Fine Tune Your Payments Program with GSA SmartPay

3 House Rules Purchase (agency Attendees name) To ensure the best possible learning experience for participants, please adhere to the following house rules: Turn electronic devices to vibrate No video-taping or audio recording is allowed Hold questions till the end of the session Ensure your participant badge is scanned to receive CLP credits For each course Take advantage of opportunities to provide feedback Please select the Citi Q&A icon on any Citi PC at the conference Answers to be ed after the conference within 60 days 3

4 Schedules Available at the Welcome Center 4

5 Reminders Visit the Citibank Welcome Center Governor s Lobby Visit the Citibank One-on-One Lab Governor s Chambers D&E Citi Q&A Link Tell us your thoughts 5

6 Interactive Training Events - Purchase Citi offers Computer-Based Training (CBT) via the Citi Commercial Card Learning and System Support (CLASS) in CitiManager. Visit home.cards.citidirect.com and from the Web Tools tab select the CLASS link Please contact your Account or Client Manager if you are interested in setting up a training session. Training can be conducted at a Citi Training Location, on-site at your office or via the web. Regional Citi Training Locations Norfolk, VA Washington, DC 6

Goals & Objectives Department of Defense This course is designed to achieve the following objectives: Help APCs to better manage their CBP program by enhancing their capabilities with Citi s online

7 Goals & Objectives Department of Defense This course is designed to achieve the following objectives: Help APCs to better manage their CBP program by enhancing their capabilities with Citi s online tools Help APCs to more efficiently manage their programs by knowing where to go to locate helpful resources Help APCs to more efficiently support their program personnel by providing Citi suggested best practices 7

8 How Do I Manage my CBA Purchase Program The How Do I Series Purchase Travel Attendees A/OPCs The How Do I.. series is a unique education series designed to provide your learning experience with policy guidelines, roles and responsibilities, with instruction on Citi s tools and technology. How Do I Manage My CBA Travel Program Guidance and Policy How Do I Manage My IBA Travel Program How Do I Manage My Online Users and APCs Roles and Responsibilities Tools and Technology How Do I Learning Guideposts Useful Information and Tips Warnings and things to watch out for Additional information and resources 8

Agenda 1. Roles and Duties of an AO vs. AOPC 2. OMB Quarterly Reporting Requirements 3. Card Applications and Closures 4. Use of the Citi Purchase Log for Tracking and Reconciliation 5.

9 Agenda 1. Roles and Duties of an AO vs. AOPC 2. OMB Quarterly Reporting Requirements 3. Card Applications and Closures 4. Use of the Citi Purchase Log for Tracking and Reconciliation 5. Use of Program Audit Tool (PAT) 6. Intro to Transaction Reallocation and Fiscal Year- End Activities 7. Effective Use of Convenience Checks 8. Preventing Misuse and Abuse 9. Disputes and Refunds 9

10 1. Roles and Duties of an AO vs. AOPC 10

11 Roles and Duties of an AO vs. AOPC AOPC is the liaison between the agency/organization management, GSA SmartPay2 contractor banks, cardholders and GSA OCCM. Roles may differ with each organization, but could include: Managing all agency/organization GSA SmartPay Card programs Promoting appropriate use of GSA SmartPay Charge Cards Monitoring and taking appropriate action for fraud, waste or abuse Resolving technical and operational problems between GSA SmartPay2 contracting bank and cardholders, as required Developing agency/organization-specific policies and procedures, as necessary Maintaining open lines of communication 11

12 Roles and Duties of an AO vs. AOPC Approving Officials (AO) are often the first line of defense against fraud, waste and abuse. Roles may differ with each agency/organization, but could include: Review and approve all GSA SmartPay Charge Card transactions and verify transactions are appropriate and necessary for accomplishing the agency/organization s mission Monitor for and resolve all questionable charges Monitor employee compliance with charge card regulations/guidance Certify monthly invoices Verify receipt of purchases and/or transactions 12

13 Roles and Duties of an AO vs. AOPC Best practices that may help AOs and AOPCs to more effectively manage their GSA SmartPay Charge Card Program. Monitor appropriate reports and remind cardholders to pay their 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 agency/organization travel policies and procedures Develop automated reports, to eliminate manually performing data analysis Frequent interaction throughout your hierarchy across all AOPCs to ensure communication, best practices and synchronicity Useful Information and Tips 13

14 2. OMB Quarterly Reporting Requirements 14

15 OMB Circular A-123, Appendix B Reporting Requirements OMB Circular A-123, Appendix B Prescribes policies and procedures to agencies regarding how to maintain internal controls that reduce the risk of fraud, waste, and error in government charge card programs. Chapter 5 of this appendix (Performance Metrics and Data Requirements) establishes guidelines for the Travel Card Program, as well as the Purchase Card Program Financial Management Regulations, Volume 9, Chapter 3 Prescribes policies and procedures specific to DoD regarding the management of the DOD Travel Card Program Depending on Agency status, reporting to OMB and the OFFM is either required quarterly or annually 15 Updated and maintained by the DTMO

16 Meeting Reporting Requirements Shared Reports > Government Standard Reports 16

17 Meeting Reporting Requirements 17

18 3. Card Applications and Closures 18

19 Card Applications and Closures Billing (Corporate) accounts are established via the submission of paper applications. These can be found via the below Citi web site: jsp Billing accounts can be closed by contacting your respective CAS. 19

20 Card Applications and Closures 20 SmartPay2 Federal Agencies> Appendix B Program Forms

21 Card Applications and Closures 21 Government Billing Account Setup Form

22 Card Applications and Closures Key Application Information Reporting Hierarchy Billing Information Authorization Parameters (Controls) AOPC Signature 22

Card Applications and Closures Cardholder accounts should be established and closed via CitiManager: http://www.citigroup.

23 Card Applications and Closures Cardholder accounts should be established and closed via CitiManager: l_cards/index.jsp Exceptions: Closure due to lost/stolen cards should be reported directly to Citi s Customer Service. 23

How Do I Manage My Centrally Billed Purchase Program Billing Account Suspension & Closure It is important to pay your Billing Account on time Subject to Prompt Payment Act interest if paid more than

24 How Do I Manage My Centrally Billed Purchase Program Billing Account Suspension & Closure It is important to pay your Billing Account on time Subject to Prompt Payment Act interest if paid more than 30 days after receipt of the statement Will suspend at 61 days past billing statement date Will cancel at 121 days past billing statement date Do you monitor delinquency reports? You don t want these accounts to suspend! Multiple CHs within the organization can be impacted 24

25 How Do I Manage My Centrally Billed Purchase Program Billing Account Suspension & Closure 25

26 How Do I Manage My Centrally Billed Purchase Program Mission Critical Exceptions Mission Critical exceptions can be requested for a temporary reprieve of suspension Requests should be directed your CAS Exceptions granted do not change Prompt Payment interest due Canceled accounts do not qualify for exception Citi reserves the right to deny any exception request There may be agency specific policies in place check with your higher level APC 26 Mission Critical designed specifically for Purchase Card programs

27 4. Use of Citi Purchase Log 27

28 How Do I Manage My Centrally Billed Purchase Program CCMS Purchase Log Allows users to enter purchases made, either manually or via a file upload Reconcile purchases to their card statement. Automatic reconciliation feature will try to match purchases entered into the purchase log with those from the card statements, but the users also are able to match up entries manually. Configurable Each client has the option to turn on this feature by product type if it meets the needs of their program and management objectives. 28

How Do I Manage My Centrally Billed Purchase Program CCMS Purchase Log Tools CARDHOLDER TOOLS

Upload View/Update Purchases Voiding Purchases Reconciling Purchases Annual Funding Authorization

Reports Monthly Statistics Purchase Log Purchase Log Exception Purchase Log Contingency Merchant

29 How Do I Manage My Centrally Billed Purchase Program CCMS Purchase Log Tools CARDHOLDER TOOLS APPROVING OFFICIAL TOOLS PROGRAM ADMINISTRATOR ROLE REPORTING Purchase Uploads Online/Manual File Upload View/Update Purchases Voiding Purchases Reconciling Purchases Annual Funding Authorization Purchase Uploads Online/Manual File Upload View/Update Purchases Voiding Purchases Reconciling Purchases Annual Funding Authorization Enter Purchases View/Delete Purchase Log Entries Cardholder Reports Monthly Statistics Purchase Log Purchase Log Exception Purchase Log Contingency Merchant List 29

30 5. Use of Citi Program Audit Tool (PAT) 30

31 What is PAT PAT is a web-based application that allows our clients to monitor and manage their Citi Commercial Card programs. Integrated within our reporting portal, the Custom Reporting System (CCRS) PAT can assist in reducing fraud and misuse by identifying and flagging transactions based on a defined set of rules. Includes a standard rule set that can be further refined according to the client s existing internal policy. Users with access to CitiManager and CCRS will be able to view the PAT icon and PAT reports. 31

PAT Filters Applying Custom Filters to Your Transactions Allows You to Detect and Analyze Filters are Business rules based on policy Managed by hierarchy and are best applied at the AO

32 PAT Filters Applying Custom Filters to Your Transactions Allows You to Detect and Analyze Filters are Business rules based on policy Managed by hierarchy and are best applied at the AO level Adjusted periodically and tuned to fit the work of the command There are 2 Types Summary Filters focus on program management activities Transaction Filters focus on charge card actions 32

33 PAT Roles and Workflow There are three primary roles that can be assigned to users: 1. Administrator Program Administrator Grants access to additional users Creates, edits, deletes, activates and deactivates rule sets 2. Reviewer Reviews flagged transactions Provides comments for transactions and account-based rules 3. Final Reviewer Provides the final review over audited transactions Has the ability to reject or approve transactions 33

34 Data Mining Tools PAT Available for all Citi Government Customers PAT (DON) Customized For DON PCard Program IntelliLink Available for all Citi Government Customers Offered by Visa Check your schedules for training on all three data mining tools 34

35 6. Transaction Reallocation and Fiscal Year-End Activities 35

36 Transaction Reallocation and Fiscal Year-End Activities CCMS Management of Accounting Codes ASC/LOAs support transaction reallocation within CCMS ASC / LOA Management Features Clients may define more than one ASC/LOA Sub Field Definition May set up ASC templates to govern custom ASC creation May set up data validation and cross validation rules ASC/LOA Sub-Field definitions are made up of one or more segments. For example: Appropriation Project Code Cost Center Fund Code Fiscal Year Division 36

37 Transaction Reallocation and Fiscal Year-End Activities When should values be changed in the system? Select a date to roll accounting codes that minimizes the number of transaction reallocations. In general, purchases made on or before 30 September must be allocated to the prior fiscal year s accounting codes. The optimum date may be different for each agency or even for each business unit within an agency. Analyze the purchase data from the previous year and compare the Transaction Date and the Transaction Post Dates for the October cycle. What is the average number of days are between them? How do weekends affect this? Cross-reference the transaction dates with the purchase documentation. Visit Citi s Class on the Fiscal Year Rollover Process for More Information Were the majority of transactions posted prior to _October for purchases made on or before 30 September? If so, then you have the optimum date. 37

38 7. Effective Use of Convenience Checks 38

Effective use of Convenience Checks OMB Circular A-123, Appendix B Convenience Checks Can be written to vendors not accepting purchase card, emergency incident response and compliance with Public Law

39 Effective use of Convenience Checks OMB Circular A-123, Appendix B Convenience Checks Can be written to vendors not accepting purchase card, emergency incident response and compliance with Public Law Convenience checks May Not be written to: Vendors accepting purchase card Vendors under another payment mechanism Employee reimbursements Cash advances Salary payments, cash awards Travel-related transportation tickets Meals or lodging for employee travel except emergency incident response 39

40 Effective Use of Convenience Checks OMB Circular A-123, Appendix B Convenience Checks Must follow Federal Acquisition Regulations (FAR) Section 2.1 Supplies $3,000 Services $2,500 Construction $10,000 Must be written for exact amount of purchase Applicable 1099 requirements apply Agency must maintain written policies and procedures for convenience checks 40

41 s 8. Misuse and Abuse Helpful Information 41

transactions not permitted per policy In the case of government charge cards, intentional use of the government charge card for other

42 Misuse & Abuse Helpful Information Fraud: A person or entity other than the cardholder makes transaction(s) using the cardholder s account Data Mining tools help to identify and track cases of fraud and misuse Misuse: Cardholder uses his/her own card for transactions not permitted per policy In the case of government charge cards, intentional use of the government charge card for other than official government transactions constitutes misuse, and may involve fraud The cardholder is liable for all transactions classified as misuse 42

43 Prevention of misuse by employees Employee misuse impacts agency/organization charge card performance and refund earning potential. Some best practices to mitigate this risk include: Establish policies and procedures to detect and mitigate the risk of fraud, waste and abuse, and emphasize standards of conduct/ethics and clearly state consequences for misuse Monitor authorization controls and set reasonable transaction limits Review card activity through bank EAS reports and restrict spend use through Merchant Category Code (MCC) blocks Deactivate cards as appropriate cards with little or no activity should be considered for closure Manage delinquency and implement proper training Establish internal controls to ensure accounts are closed, when necessary 43

44 Misuse and Abuse Helpful Information Tools to assist in the fight to prevent fraud, misuse and abuse PAT CCRS specific reports: Declined Authorizations Card Delinquency Pre-Suspension Lost, Stolen, Invalid or Cancelled Accounts Transaction Dispute Association Tools Visa IntelliLink MasterCard Expert Monitoring System 44

45 s 9. Disputes and Refunds 45

46 Disputes How to identify? Cardholders need to consistently monitor their charges: Check for unbilled or unmatched items against their purchase log Check for unauthorized charges Immediately contact merchants when unsure Follow-up with Citi based on feedback from merchant Incorporate into your monthly reconciliation process 46

47 Disputes For accepted disputes Citi will: Provide a provisional credit while the dispute is being researched Promptly investigate items and use best efforts to resolve; includes working with merchants and the transaction dispute officer If the dispute is found in favor of the government, Citi will chargeback (re-bill) the merchant where appropriate If the dispute is found in favor of the merchant, Citi will remove the provisional credit and re-bill the charges *Remember: Disputes must be filed within 90 days of the date on which the transaction posted to the account or disputes rights may be relinquished. 47

48 Refunds APCs & AOs should monitor for credit balances as they do delinquency Credit balance represents an out of balance condition Credit balances can remain on an account for years Basically lost (while on the account as a credit) funds to the agency AOs can identify a credit balance in less than 1 minute by reviewing their monthly statement: 48

49 Adam Jackson Department o Defense 49

50 IRS Circular 230 Disclosure: Citigroup Inc. and its affiliates do not provide tax or legal advice. Any discussion of tax matters in these materials (i) is not intended or written to be used, and cannot be used or relied upon, by you for the purpose of avoiding any tax penalties and (ii) may have been written in connection with the "promotion or marketing" of any transaction contemplated hereby ("Transaction"). Accordingly, you should seek advice based on your particular circumstances from an independent tax advisor. Any terms set forth herein are intended for discussion purposes only and are subject to the final terms as set forth in separate definitive written agreements. This presentation is not a commitment to lend, syndicate a financing, underwrite or purchase securities, or commit capital nor does it obligate us to enter into such a commitment, nor are we acting as a fiduciary to you. 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As a sustainability leader in the financial sector, Citi has taken concrete steps to address this important issue of climate change by: (a) targeting $50 billion over 10 years to address global climate change: includes significant increases in investment and financing of alternative energy, clean technology, and other carbonemission reduction activities; (b) committing to reduce GHG emissions of all Citi owned and leased properties around the world by 10% by 2011; (c) purchasing more than 52,000 MWh of green (carbon neutral) power for our operations in 2006; (d) creating Sustainable Development Investments (SDI) that makes private equity investments in renewable energy and clean technologies; (e) providing lending and investing services to clients for renewable energy development and projects; (f) producing equity research related to climate issues that helps to inform investors on risks and opportunities associated with the issue; and (g) engaging with a broad range of stakeholders on the issue of climate change to help advance understanding and solutions. Citi works with its clients in greenhouse gas intensive industries to evaluate emerging risks from climate change and, where appropriate, to mitigate those risks. efficiency, renewable energy & mitigation

U.S. General Services Administration. What s New Federal Agencies. Steve Babine Vice President Citi

U.S. General Services Administration What s New Federal Agencies Steve Babine Vice President Citi July 2012 This material is intended for use by the GSA only 2012 GSA SmartPay Conference Fine Tune Your