DoD Centrally Billed Account Reconciliation Process

1 GSA SmartPay 2010 ConferenceDoD Centrally Billed Account Reconciliation ProcessMr. Jay DarnellDefense Travel Management OfficeDefense Travel Management OfficeOffice of the Under Secretary of Defense (Personnel and Readiness)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 Process2 Defense Travel Management OfficeOffice of the Under Secretary of Defense (Personnel and Readiness)GTCC Program Overview Policy The Travel and Transportation Reform Act (TTRA) of 1998 (Public Law 105-264) 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 million IBA cardholders Comprised 62% of total government-wide spending in FY083 Defense Travel Management OfficeOffice of the Under Secretary of Defense (Personnel and Readiness)Regulations Financial Management Regulation (FMR), Vol.

2 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 allowances4 Defense Travel Management OfficeOffice of the Under Secretary of Defense (Personnel and Readiness) 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 accounts5 Defense Travel Management OfficeOffice of the Under Secretary of Defense (Personnel and Readiness)

3 Delinquency Timelines6 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 accomplishedDefense Travel Management OfficeOffice of the Under Secretary of Defense (Personnel and Readiness)7 Roles and Responsibilities DTMO 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 GTCCD efense Travel Management OfficeOffice of the Under Secretary of Defense (Personnel and Readiness)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.

4 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 rebates8 Defense Travel Management OfficeOffice of the Under Secretary of Defense (Personnel and Readiness)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 bank9 Defense Travel Management OfficeOffice of the Under Secretary of Defense (Personnel and Readiness)

5 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 payment10 Defense Travel Management OfficeOffice of the Under Secretary of Defense (Personnel and Readiness)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 3311 Defense Travel Management OfficeOffice of the Under Secretary of Defense (Personnel and Readiness)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 manager12 Defense Travel Management OfficeOffice of the Under Secretary of Defense (Personnel and Readiness) 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.

6 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 efficiently13 Defense Travel Management OfficeOffice of the Under Secretary of Defense (Personnel and Readiness) Account Setup Process Request Approved14 CBA Request Sent to CPMCPM ReviewsRequestRequest ApprovedCPM sends Bank Application to activity/unitActivity/unit completes application and sends to CPMCPM signs application and sends to bankCPM coordinates Account set upwith bankBank sets up new Account and notifies activity/unitBank distributes CBA to designated individualsIf necessary, CPM contacts applying activity/unit for clarificationCPM/APC will coordinate setup within DTS, if necessaryDefense Travel Management OfficeOffice of the Under Secretary of Defense (Personnel and Readiness) Account Setup Process Request Denied15 CBA Request Sent to CPMCPM ReviewsRequestRequest DeniedIf necessary, CPM contacts applying activity/unit for clarificationCPM notifies activity/unit and explains reason for denial of requestDefense Travel Management OfficeOffice of the Under Secretary of Defense (Personnel and Readiness)

7 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 AO16 Defense Travel Management OfficeOffice of the Under Secretary of Defense (Personnel and Readiness)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 payment17 Defense Travel Management OfficeOffice of the Under Secretary of Defense (Personnel and Readiness)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 within60 days, bank may not honorthe dispute request18 Defense Travel Management OfficeOffice of the Under Secretary of Defense (Personnel and Readiness)Transaction Dispute Process During the dispute Process , the bank.

8 Issues temporary credits for correctly filedand 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 account19 Defense Travel Management OfficeOffice of the Under Secretary of Defense (Personnel and Readiness)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 dispute20 Defense Travel Management OfficeOffice of the Under Secretary of Defense (Personnel and Readiness)CBA Invoice Reconciliation21 Defense Travel Management OfficeOffice of the Under Secretary of Defense (Personnel and Readiness)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 CTO-provided reports (printed, certified and sent to DFAS)

9 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 account22 Defense Travel Management OfficeOffice of the Under Secretary of Defense (Personnel and Readiness)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 Defense Travel Management OfficeOffice of the Under Secretary of Defense (Personnel and Readiness) CBA Register and Reconciliation CBA Register allows youto keep an accurate balancewith whichto reconcilewith the bank s monthly invoiceending balance24 Defense Travel Management OfficeOffice of the Under Secretary of Defense (Personnel and Readiness)Sample CBA Register25 Defense Travel Management OfficeOffice of the Under Secretary of Defense (Personnel and Readiness)Where Does a CBA Register Fit into the Reconciliation Process ?

10 Before entering any data onto your CBA Register, ALLU nmatched 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 FinalReports!26 Defense Travel Management OfficeOffice of the Under Secretary of Defense (Personnel and Readiness)Reports Used for Your CBA Register All debit(charge) transactions on the bank s electronic file that matchwith the CTO s fileReconciled Debit Transaction Report All credittransactions on the bank s electronic file that matchwith the CTO s fileReconciled Credit Transaction Report Lists all unmatched transactions and shows action during Reconciliation Resolved: Right hand column will be zero Unresolved: Right hand column shows discrepancyBilling Discrepancy Report27 Defense Travel Management OfficeOffice of the Under Secretary of Defense (Personnel and Readiness)Example #1: A New Account28 Defense Travel Management OfficeOffice of the Under Secretary of Defense (Personnel and Readiness)CBA Register New Account29 Since this is a new Account , the Previous Balance entry is blankDefense Travel Management OfficeOffice of the Under Secretary of Defense (Personnel and Readiness)CBA Register Data Sources30 Defense Travel Management OfficeOffice of the Under Secretary of Defense (Personnel and Readiness)Preparing Your CBA Register Once the data has been entered in your CBA Register, begin your CBA ReconciliationReconciled DebitTransaction ReportReconciled Credit Transaction ReportBank s EndingBalanceCBA Register31 Defense Travel Management OfficeOffice of the Under Secretary of Defense (Personnel and Readiness)CBA Register New Account32 Defense Travel Management OfficeOffice of the Under Secretary of Defense (Personnel and Readiness)