U.S. General Services Administration Travel Management Essentials

U.S. General Services Administration Travel Management Essentials GSA SmartPay Erin VanDagna

GSA SmartPay Training Agenda Introduction to the GSA SmartPay Travel Card Travel Card Legislation and Policies Types of GSA SmartPay Travel Cards Roles and Responsibilities Best Practices in Travel Card Management

Introduction to the GSA SmartPay Travel Card

FY22 Program Statistics Spend Total Spend: Total Transactions: 32.8B 78.5M 12.9% vs. FY21. 12.2% vs. FY21. Total Refunds: Total Accounts: 426.5 9.4% vs. FY21. M Transactions 6.6M 5.46% vs. FY21. Accounts 4,699,11 5000000 4 4000000 3000000 2000000 1,083,246 1000000 780,044 0 Travel Purchase Series1 Fleet

Travel Card Legislation and Policies

Local Travel Policy Federal Travel Regulation (FTR): Optional use of the card for local travel will be at the discretion of agencies – DoD Joint Travel Regulations already permits use of the travel card for local travel expenses – Examples of local travel include -- but are not limited to -- taxi fares, public transportation, and ferry tickets Recommend that agencies develop and issue internal policies addressing oversight and internal controls for managing use of the travel card for local travel FTR Amendment 2016-01 included updates to ensure that the Government contractor-issued travel charge card is used as often as practicable. In addition, it strengthens card issuance and use policies and provides the agency head/designee with waiver authority. To visit the FTR and related files, go to: http://www.gsa.gov/portal/content/102886.

Laws and Governing Policies OMB Circular A-123, Appendix B A Risk Management Framework for Government Charge Card Programs Updated – Chapter 2 Internal Controls – Travel cards – New tools available under GSA SmartPay 3 Updated – Chapter 3 Charge Card Management Plan – Every 2 years Updated – Chapter 5 Performance Metrics and Data Requirements – Now requires CFO Act agencies to submit their Narrative & Statistical Reports to GSA (not OMB) in January each year Updated – Attachment 6 Disciplinary Category Definitions

Laws and Governing Policies OMB Memorandum M-13-21, Implementation of Charge Card Abuse Preventi on Act of 2012 Serves as a response to the Government Charge Card Abuse Prevention Act and provides supplemental guidance to OMB Circular A-123, Appendix B Provides an overview of the following aspects of compliance: – Safeguards and internal controls – Reports on violations and penalties for violators – Inspector General (IG) risk assessments/audits* Effective date September 6, 2013 Part of the most recent Circular update

Laws and Governing Policies Government Charge Card Abuse Prevention Act of 2012 (P.L. 112-194) Requires that all federal agencies establish certain safeguards and internal controls for government charge card programs Requires that all federal agencies establish penalties for violations, including dismissal when circumstances warrant Increases oversight by requiring that each agency’s Inspector General (IG) periodically conduct risk assessments/audits to identify fraud and improper use of government payment solutions Effective date October 5, 2012 Now part of the most current Circular update

Laws and Governing Policies Travel and Transportation Reform Act of 1998 (P.L. 105-264) Mandates that employees use the government travel card for all payments of expenses related to official government travel Some exemptions from mandatory use of the travel card may be granted in accordance with the Federal Travel Regulation (FTR), 41 Code of Federal Regulations (CFR) §§ 300 – 304 Effective date October 19, 1998

FY18 NDAA Title XVIII Laws and Governing Policies FY18 National Defense Authorization Act (NDAA) Sec. 1806. Reporting Requirements: “The head of each Federal Agency shall submit a report to the Director of the Office of Management and Budget on that agency’s activities to implement this title.” CCCM provided a reporting template for agency use due to OMB on December 12, 2018. The report template addresses an agency’s implementation actions described in FY18 NDAA Title XVIII in the following areas: How the agency is expanding the use of data analytics. What the agency has done to improve information sharing. How improper payments have been addressed at the agency.

Laws and Governing Policies P.L. 115-34 – Modernizing Government Travel Act – enacted May 16, 2017 Requires the head of each federal agency to report information on travel and transportation expenditures, relocation expenditures, and number of trips for official Government travel. Effective date May 16, 2017

Types of GSA SmartPay Travel Cards

Types of GSA SmartPay Travel Cards Individually Billed Accounts (IBA) Established by the bank at the request of the program coordinator for an individual traveler Bank sends the individual traveler a Cardholder Agreement with the travel card Billing statement mailed directly to the cardholder Cardholder responsible for making payment in full to the bank by the due date of each billing statement Government reimburses IBA cardholders to pay for authorized expenses related to official Government travel Liability for all charges rests with the individual cardholder

Types of GSA SmartPay Travel Cards Standard IBA Travel Cards Minimum credit score required Higher credit/cash advance limits Split disbursement mandatory Billing statement mailed to cardholder's address Restricted IBA Travel Cards Credit score below required minimum or credit check declined Lower credit/cash advance limits Split disbursement mandatory Billing statements mailed to cardholder's address A/OPC "Activation/Deactivation required"

Types of GSA SmartPay Travel Cards Centrally Billed Accounts (CBA) Established to pay for official Government travel expenses Limit consistent with agency mission Typically used for transportation carriers (i.e. airplane, train, bus, etc.) Government directly pays the bank Government accepts liability only for proper charges made by an authorized CBA cardholders Agency is responsible for management and reconciliation

Types of GSA SmartPay Travel Cards Tax Advantage Card New product offering that combines an Individually Billed Account (IBA) and Centrally Billed Account (CBA) Provides a means to obtain tax exemption automatically at the point of sale for rental cars and lodging charges. Charges for other travel-related purchases such as meals and incidentals are billed to the IBA portion of the account, will still incur tax, and the individual traveler will still be liable for payment to the bank for those charges. Allows traveler to use one card that simplifies tax-exemption procedures by automatically diverting tax-exempt charges at the point of sale.

Types of GSA SmartPay Travel Cards Virtual Cards New product offering that generates a unique account number for travel purchases made via an agency’s eTravel system. Unique card for every purchase Specific to employee and purpose Spend amount, MCC and date restricted Rich centralized data on total corporate spend Automated reconciliation

Roles and Responsibilities

Agency Roles and Responsibilities When establishing a GSA SmartPay Travel Card Program, agencies: Designate an Agency/Organization Program Coordinator (A/OPC) Identify account holders Designate a billing and disputes office

A/OPC Roles and Responsibilities Agency/Organization Program Coordinators (A/OPC) are responsible for the overall management/oversight of the accounts. They act as 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 Auditing travel card accounts 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

AO Roles and Responsibilities Approving Officials (AO) are typically the account holder’s supervisor and assures proper use of the travel card. They play key roles in preventing fraud, abuse, and misuse. Roles may differ, but responsibilities could include: Reviewing and approving all GSA SmartPay travel vouchers Verifying charges were within scope of government travel Monitoring for and resolving all questionable charges Verifying receipt of purchases and/or transactions

Cardholder Roles and Responsibilities Cardholders must use the GSA SmartPay travel card in accordance with agency policy and government regulations. Cardholders should: Secure the travel card and immediately report a lost or stolen card Monitor and track expenses, as well as maintain receipts, in accordance with agency policy Use the card ethically - for official travel expenses only Ensure vouchers are submitted in a timely manner and submit full payment for each undisputed bill Keep up to date with program and agency-specific training requirements and communications from A/OPCs (and take appropriate action, as necessary)

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 expenses Write Personal Identification Numbers (PIN) on the GSA SmartPay charge card

Bank Roles and Responsibilities The GSA SmartPay Program contractor banks (Citibank, and U.S. Bank) have important responsibilities, which include: Paying the merchants for credit card transactions Establishing accounts and issuing charge cards Preparing monthly statements for the cardholders Providing A/OPC or AO with the ability to view current statements, payment history, and account information to make payments electronically Issuing required reports to A/OPCs Providing assistance with audits and investigations

Best Practices in Travel Card Management

Communicate with Cardholders Successful GSA SmartPay Travel Card Programs communicate travel policy, procedures, and updates with their cardholders. For example, consider: Publishing “Frequently Asked Questions” on the agency/organization’s internal website Creating a monthly newsletter for updates on travel policies and procedures

Opportunities for Increased Savings By using the GSA SmartPay travel card, there are opportunities for increased savings to the Federal government. Agencies should: Emphasize that use of the GSA SmartPay travel card for official Federal government travel expenses is required by the Federal Travel Regulations and benefits agencies from a refund perspective Leverage GSA SmartPay contract bank processes to reduce improperly assessed state taxes on IBA travel cards

Tax Exemption Savings GSA’s Center for Charge Card Management (CCCM) maintains a list of taxexempt states. For a complete listing of states, requirements, and forms, visit the GSA SmartPay website. Please note: In accordance with the Supremacy clause of the U.S. Constitution, CBA charge cards are always exempt from taxes in all 50 states and U.S. territories; however, some states require CBA tax exemption forms for CBA travel cards IBA charge cards are exempt from taxes in some states

Mitigating Abuse and Misuse Abuse and misuse impacts travel card performance and refund earning potential. Mitigation strategies include: Implementing proper training Emphasizing standards of conduct/ethics and clearly state consequences for misuse Monitoring authorization controls and setting reasonable credit and transaction limits Reviewing card activity and restricting spend use through Merchant Category Code (MCC) blocks Managing delinquency Deactivating cards, as appropriate

Fulfilling Training Requirements OMB Circular A-123, Appendix B discusses training requirements. Cardholders must take mandatory training and A/OPCs should: Ensure cardholders fulfill training requirements Provide comprehensive in-person training/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

GSA SmartPay Online Training GSA’s Center for Charge Card Management (CCCM) offers free online travel card training for cardholders and A/OPCs. Please note: Cardholders are able to register, set up a profile, and manage their online training courses and certificates Level 1 A/OPCs have access to run reports and search for cardholders within agencies https://training.smartpay.gsa.gov

Available Reporting Resources There are a number of reports available from GSA SmartPay contractor banks to help A/OPCs review transactions, payments, disputes, and delinquencies. It is suggested that A/OPCs: Regularly monitor bank reports for fraud, abuse, and misuse Use bank reports proactively, not reactively for payment Understand available reports** Request ad hoc 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

Account 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. Please note: A/OPCs can quickly deactivate/reactivate cards electronically or by contacting the bank’s designated representative A/OPCs should close charge card accounts for cardholders who leave the agency (will vary by agency policy and business line) If a card is deactivated, authorizations are declined at the point of sale

Contact Information

GSA Contact Information GSA SmartPay Program Helpline: (703) 605-2808 Website: http://www.smartpay.gsa.gov Email: gsa [email protected] GSA SmartPay ’s Social Media Pages: Twitter Facebook LinkedIn

Bank Contact Information Bank Contact Information: Citibank Customer Service: (800) 790-7206 U.S. Bank Customer Service: (888) 994-6722

Audience Questions

Thank you for your time and attention! Contact Information Erin VanDagna [email protected]

GSA Starmark