DoD Centrally Billed Account Reconciliation Process

Transcription

1 GSA SmartPay 2010 Conference DoD Centrally Billed Account Reconciliation Process Mr. Jay Darnell

2 Agenda Government Travel Charge Card (GTCC) Program Overview Roles and Responsibilities Account Setup Process CBA Reconciliation Process Checkbook Approach to Reconciliation Dispute Process Document Retention CBA Exception Process 2

3 GTCC Program Overview Policy The Travel and Transportation Reform Act (TTRA) of 1998 (Public Law ) mandates the use of the travel card for all Official Business Travel Card use is required IAW DoD FMR Vol. 9, Chapter 3 Benefits to government Facilitates access to airline City Pair Program fares Saves travel processing costs for DoD Improves DoD cash management Reduces DoD and traveler administrative workloads DoD has approximately 1.3 million IBA cardholders Comprised 62% of total government-wide spending in FY08 3

4 Regulations Financial Management Regulation (FMR), Vol. 9, Chapter 3 Sets policies and outlines procedures for GTCC program Financial Management Regulation (FMR), Vol. 5, Chapter 33 Establishes government liability payment and outlines policies and procedures Financial Management Regulation (FMR), Vol. 10 Sets policies, outlines procedures for contract payment Joint Federal Travel Regulation (JFTR), Vol. 1 and Joint Travel Regulation (JTR), Vol. 2 Identifies official travel-related entitlements and allowances 4

5 Centrally Billed Accounts (CBA) Used to support travelers who do not have or cannot use an individually billed account (IBA) Transportation accounts used for air, rail, or bus tickets Unit Travel Cards used to support group travel requirements Paid by the government, not the individual Commercial Travel Offices (CTOs) charge authorized, official government travel-related expenses to CBAs For the purposes of this briefing, we will only speak to transportation accounts 5

6 Delinquency Timelines APCs need to be aware of the status of CBAs even if they do not reconcile the account Once an account hits 55 days past due, an APC needs to take steps to ensure the account is being worked aggressively to ensure payment is made before the account suspends Once a CBA suspends, the mission cannot be accomplished 6

7 DTMO Roles and Responsibilities Program oversight and management of DoD task order Face of DoD GTCC program Coordinate with GSA, DoD Components and card vendor Develop travel card policy and procedures Facilitate travel card training for DoD Review or initiate component review of card processes Represent DoD at meetings/conferences Report on program compliance to OSD-C, OMB, and others as directed Respond to Congressional inquiries about GTCC 7

8 Roles and Responsibilities Component Program Managers (CPM) designated in writing Serve as liaison with DTMO Establish, manage, and oversee components travel card program, to include CBA Ensure CBAs are: Properly approved; reasonable credit limits are established and maintained; reviews are performed to monitor credit limits and card utilization Ensure compliance with all appropriate regulations and policy Ensure reconciliation and payments are timely in order to avoid account delinquency and suspension Monitor quarterly rebates 8

9 CBA Roles and Responsibilities Agency Program Coordinator (APC)/Account Manager (AM) Each DoD command or activity appoints an APC or AM to oversee and manage CBA accounts Establish new accounts only as required by mission needs Validate all charges are proper and authorized (supported by approved travel authorization) Ensure prompt invoice payment; NLT 30 days from the receipt of the invoice Ensure account information, such as name, address, and phone number are kept up to date in bank s account profile Notify CPMs of any changes in cardholder, APC/AM or Unit/Activity information to ensure the accuracy of CBA data maintained by bank 9

10 CBA Roles and Responsibilities Certifying Officers Review invoice payment packages that have been reviewed, reconciled, and assembled for payment by APCs/AMs Each invoice payment package contains the approved CBA billing invoice and supporting documentation Certify that invoice payment packages are correct and proper for payment Coordinate with APCs/AMs immediately if payment package cannot be certified/paid Forward the certified invoice to the appropriate disbursing location for payment 10

11 Pecuniary Liability Form of personal and financial liability APCs/AMs, AOs, and Certifying Officers maybe held financially liable for misuse, abuse, fraudulent activity or misrepresentation involving their travel card program duties Guidance on Pecuniary Liability FMR, Vol. 5, Chapter 33 11

12 Central and Transaction Account Numbers Every CBA has: Central account number (sometimes referred to as a parent or summary account) Used by the bank to record and track payments Transaction account number (sometimes referred to as a child or feeder account) Used by a CTO to charge air, rail, and bus tickets, as required Transportation accounts only have one central and one transportation account Transportation accounts have a white card that is mailed to and maintained by the account manager 12

13 Account Setup Process All CBA requests must be made in writing & approved by the APCs/AMs respective CPM Request should be made on official DoD letterhead of the requesting activity/unit and contain: Purpose for the CBA Names of the personnel responsible for the account s use, management, and oversight (APC/AM, Approving Officer, Certifying Officer) Credit limit needed to meet mission goals Statement explaining proposed reconciliation and payment process to ensure timely payments Statement explaining how a CBA will help the activity/unit meet its mission more effectively and efficiently 13

14 CBA Request Sent to CPM Account Setup Process Request Approved CPM Reviews Request Request Approved If necessary, CPM contacts applying activity/unit for clarification CPM sends Bank Application to activity/unit Activity/unit completes application and sends to CPM CPM signs application and sends to bank CPM coordinates account set up with bank Bank sets up new account and notifies activity/unit Bank distributes CBA to designated individuals CPM/APC will coordinate setup within DTS, if necessary 14

15 Account Setup Process Request Denied CBA Request Sent to CPM CPM Reviews Request If necessary, CPM contacts applying activity/unit for clarification Request Denied CPM notifies activity/unit and explains reason for denial of request 15

16 CBA Reconciliation and Payment Certification Proper invoice reconciliation and payment is one of the major responsibilities assumed upon receiving approval for a CBA Typically, an APC/AM receives invoice within 7-12 days of the CBA account s billing cycle end date Billing invoice statement includes all transactions Supporting documentation from CTO verifies if charges are authorized and are reimbursable official government travel-related expenses Reconciled invoices and supporting documentation should be forwarded to AO 16

17 CBA Reconciliation and Payment Certification (continued) Unrecognized charges are disputed by filing a dispute form with the bank no later than 60 days from the date on the invoice where the charge originally appeared (per association guidelines Visa ) Certifying officer reviews invoice package and signs a statement of certification for payment 17

18 Transaction Dispute Process Invoices containing an incorrect, unrecognized, or unauthorized charge can be disputed APC/AM must file a formal dispute with the bank using the official dispute form Form obtained via the bank s website or by contacting the bank directly All disputes must be filed within 60 days of the date of the invoice that contained the charge If the dispute is not filed within 60 days, bank may not honor the dispute request 18

19 Transaction Dispute Process During the dispute process, the bank: Issues temporary credits for correctly filed and valid disputed charges Researches/reviews disputed charges Resolves disputes in favor of either the merchant or account holder If it is in the cardholder s favor, temporary credit becomes a permanent credit If it is in the merchant s favor, the original charge is reapplied to cardholder s account 19

20 Transaction Dispute Process Program participants must: Keep accurate records of all disputes Monitor invoices Ensure correct temporary credits are received Annotate the original dispute forms, referencing invoices showing temporary credits or recharge amounts Responsibility usually falls on the individual who files the dispute 20

21 CBA Invoice Reconciliation 21

22 Importance of Reconciliation Reconciliation is the same basic monthly process used to balance a personal checking account CBA accounts need to be reconciled monthly Many CBA AMs dismiss the back-end process of the monthly reconciliation because they think that CTOprovided reports (printed, certified and sent to DFAS) complete the process Must tie into the bank s ending balance on each monthly statement If it doesn t, it increases the risk of having a growing difference that can suspend an account 22

23 Importance of Reconciliation (continued) CTO Unmatched report shows what the bank has that does not match CTO s system Unbilled report shows transactions the CTO has but the bank has not yet billed Monthly Reconciliation Worksheet must be kept to record CTO errors needing credit, transfers or payments, unauthorized charges, and all other discrepancies that must be carried forward Each month, the balance on CBA register should be reconciled to the bank s ending balance 23

24 CBA Register and Reconciliation CBA Register allows you to keep an accurate balance with which to reconcile with the bank s monthly invoice ending balance 24

25 Sample CBA Register 25

26 Where Does a CBA Register Fit into the Reconciliation Process? Before entering any data onto your CBA Register, ALL Unmatched items on Unmatched Report must be resolved When resolved, CTO is notified and FINAL reports are then run, and CTO closes the file Data for CBA Register comes from CTO Final Reports! 26

27 Reports Used for Your CBA Register Reconciled Debit Transaction Report All debit (charge) transactions on the bank s electronic file that match with the CTO s file Reconciled Credit Transaction Report All credit transactions on the bank s electronic file that match with the CTO s file Billing Discrepancy Report Lists all unmatched transactions and shows action during reconciliation Resolved: Right hand column will be zero Unresolved: Right hand column shows discrepancy 27

28 Example #1: A New Account 28

29 CBA Register New Account Since this is a new account, the Previous Balance entry is blank 29

30 CBA Register Data Sources 30

31 Preparing Your CBA Register Once the data has been entered in your CBA Register, begin your CBA Reconciliation Reconciled Debit Transaction Report Reconciled Credit Transaction Report Bank s Ending Balance CBA Register 31

32 CBA Register New Account 32

33 Credits on CTO Reports Not Recorded by Bank 33

34 Reconciliation Complete Now They Match! 34 The Book Ending Account Balance and the Bank s Ending Balance have been Reconciled

35 What Happens Next Month? To perform the next month s reconciliation, do the following: Prepare CBA Register for new month Pull last month s reconciliation to identify all items that were carried forward that were not reconciled Check the new bank statement to ensure those items appear If they did, that item is not included on the new month s reconciliation If they didn t, it remains un-reconciled and will need to be carried forward pending resolution on next month s bill 35

36 Next Month s Register 36

37 Next Month s Reconciliation 37

38 Next Month s Reconciliation Now They Match! The Book Ending Account Balance & the Bank s Ending Balance match 38

39 Example #2: Existing Account 39

40 Reconciling An Existing Account for the First Time First, create an Account Register and enter: Previous Balance Amount of the last payment made (assuming all other payments have been made) This is what you thought you owed The rest of the process is the same Let s look at the previous account using the actual statement figures.. 40

41 Is This Account In Balance? 41

42 Enter Data onto Account Register Bank Invoice Reconciled Debit Transaction Report 42

43 CBA Monthly Reconciliation 43

44 Reconciliation Complete Now They Match! 44 The Book Ending Account Balance and the Bank s Ending Balance have been Reconciled

45 Why Did We Deduct The Old Difference? Since we paid LESS than what the bank stated we owed, the bank balance is higher than what we thought Need to deduct it to reconcile to our lower balance 45

46 What About Next Month? Next month, if none of the old items are discovered and resolved, the same amount will appear on the reconciliation as an un-reconciled or disputed item This continues until the old items are resolved 46

47 Documentation to Bundle CBA Monthly Reconciliation Form CBA Account Register Month s FULL bank statement Initial and final CTO Reports (Label as Final ) Communications with Command POC and the CTO concerning the reconciliation All correspondence initiated awaiting resolution (to the travel card vendor or airline) Other relevant reconciliation documents Place in a folder labeled with the invoice number Retain for 6 years, 3 months Copy of travel orders, if required 47

48 CBA Reconciliation Tips Be prepared before cycle date Examine the Unbilled Report Understand the importance of Statement Remarks Look for Unauthorized Charges Be Aware of Successful Reconciliation Requirements 48

49 Common Mistakes Missing Standard Document Numbers (SDNs) Approving Official is responsible for ensuring SDNs are included Incorrect Lines of Accounting (LOAs) Approving Official is responsible for ensuring LOAs are correct Missing Travel Orders Transportation Office is responsible for ensuring TOs are included when necessary 49

50 CBA Exception Process Process by which an authorized APC may request a temporary reprieve on the suspension of a CBA CBA Exception requests generally require 3 business days to process. URGENT requests will be reviewed within 24 hours (the word URGENT must be included in the subject line of the ) Exception status can be requested on suspended CBAs Canceled accounts DO NOT qualify for CBA exception. Exception period will not exceed 30 days per request No more than 3 requests in a rolling 12 month period. Requests must be in writing to dod.collections@citi.com Phone requests WILL NOT be considered 50

51 CBA Exception Process All requests must include: Last 6 digits of account number Date of last payment Current days past due Reason for delinquency Expected full reconciliation date Expected payment date/amount Exception Justification All requests will be reviewed on a case-by-case basis Citi reserves the right to decline any request 51

52 Resources DTMO - Component Websites USMC Army Air Force Department of Navy 52