Presentation on theme: "ARMY TRAVEL CARD PROGRAM"— Presentation transcript:
1 ARMY TRAVEL CARD PROGRAM FRANK RAGOARMY PROGRAM MANAGEROFFICE, ASSISTANT SECRETARY OF THE ARMY(FINANCIAL MANAGEMENT & COMPTROLLER)
2 CONTRACT & TASK ORDER: CONTRACT STRUCTURE: GSA MASTER CONTRACT FOR ALL FEDERAL AGENCIESDOD TASK ORDER WITH CITI EFFECTIVE NOV 30, 2008PERIOD COVERED:FOUR YEAR CONTRACT (NOV 2008 – NOV 2012)THREE TWO YEAR OPTIONS (DEC 2012 – NOV 2018)INCLUDES SERVICES FOR:INDIVIDUALLY BILLED ACCOUNTS (IBA)CENTRALLY BILLED ACCOUNTS (CBA)
3 PROGRAM FEATURES: VISA CARD W/ WIDE ACCEPTANCE ON-LINE MANAGEMENT SYSTEMCONTROLS: CREDIT CHECKS, MERCHANT CODES, CARD TYPES W/ CHARGE LIMITS:STANDARD CARD: $665 ATM CASH/$7500 TOTALRESTRICTED CARD: $365 ATM CASH/$4000 TOTALFEES:ATM CASH FEE OF 2% (REIMBURSABLE)RETURNED CHECK FEE OF $29, LATE FEE OF $29BANK REBATES: BASED ON CHARGE VOLUME AND SPEED OF PAY FOR IBA and CBARegarding rebates, you should know that -- at this point -- rebates to the Army are a thing of the past. This is due to:Our high delinquency rate -- enough said.A change to the basic contract that the Bank negotiated with GSA:Rebates are based on our total charge volume, adjusted for the amount of debt the Bank has to write-off at 210 days past dueBefore, our write-offs were deducted from our charge volume and then the rebate was calculatedNow, a portion of our write-off (over 30 basis points) is deducted directly from our rebate on a dollar-for-dollar basis. This is like the Bank getting a tax credit rather than just a reduction in its taxable income.
4 TRAVEL & TRANSPORTATION REFORM ACT: EMPLOYEE MUST USE TRAVEL CARD FOR OFFICIAL TRAVEL EXPENSESAGENCY CAN EXEMPT TYPES OF PERSONNEL OR EXPENSEAGENCY MUST REIMBURSE TRAVEL EXPENSES W/IN 30 DAYS AFTER CLAIMAGENCY MAY COLLECT DELINQUENCY FROM PAYUNDISPUTED AMOUNTS ONLYAFTER NOTIFICATION/DUE PROCESSCOLLECTION NTE 15% OF DISPOSABLE PAYFor us, the TTRA came out of no-where. It was hard to find someone’s finger-prints on it, but it’s clear that the card industry was involved. Of course, because no one TALKED to the folks who had to execute this, there were some problems:Mandate to use the card for official travel: Sounds good, but DOD isn’t your typical Federal agency -- young troops, TDY vs. deployments, PCS. We took full advantage of provision for exemptions.Irony: Later, the Bank told us they wanted to reduce the number of accounts, as those infrequently used were costing them money (fixed expense to maintain, but with minimal charges, there wasn’t enough revenue)Reimburse within 30 days of claim or pay interest: Sounds good, but few settlements take more than 30 days & those that do rarely generate more than $1.00 in interest -- and payments under a dollar, we write off.Collecting delinquency from pay: THIS is what TTRA was really all about! Initially, DOD choose not to exercise the authority in TTRA to collect from pay. Later, as we were negotiating with the Bank to modify our DOD Task Order, we agreed to re-look this and eventually agreed to implement it.I have some concerns, however, about how this feature is perceived by some commanders -- more on this later.Note: disposable pay is the amount after taxes, retirement and insurance
5 PROGRAM GUIDANCE DODFMR VOLUME 9 CHAPTER 3 ARMY POLICY GUIDANCE OVERALL PROGRAM GUIDANCEDOD POLICYRESPONSIBILITYIBA AND CBA REQUIREMENTSEXEMPTIONSARMY POLICY GUIDANCEAUGMENTS DOD GUIDANCEASA (FM&C) POLICY MEMORANDUM
6 POLICY GUIDANCE ASA (FM&C) MEMORANDUM REQUIRES ADEQUATELY RESOURCED APC FUNCTIONMONTHLY REVIEW OF TRANSACTIONSAPC/CARDHOLDER TRAININGCLOSING OF INACTIVE ACCOUNTSDISCIPLINARY ACTION FOR ABUSE, MISUSEDISCOURAGE USE FOR DEPLOYMENT TRAVELSECURITY CLEARANCE REVIEWNON SUFFICIENT (NSF) CHECK REPORTING
7 CARDHOLDER RESPONSIBILITIES USE TRAVEL CARD FOR ALL OFFICIAL TRAVELEXPENSESEXPENSES ARE LIMITED TO THOSE NORMALLYREIMBURSED AT TRAVEL SETTLEMENTCARDHOLDER ONLY EXPENSESLIMIT CASH USAGE. USE TRAVEL CARDWHENEVER POSSIBLE
8 CARDHOLDER RESPONSIBILITIES RETAIN ALL RECEIPTSSUBMIT TRAVEL VOUCHER WITHIN 5 DAYS OFRETURN OR EVERY 30 DAYS IF TDY IS OVER 45DAYS DURATIONUSE SPLIT DISBURSEMENT OPTION TO PAY CONTRACTOR.PAY BALANCE IN FULL AND ON TIME.
9 CARDHOLDER RESPONSIBILITIES UNDISPUTED CHARGES MUST BE PAID BY DUE DATEDISPUTES ARE THE RESPONSIBILITY OF THE CARDHOLDERCONTACT MERCHANT IMMEDIATELY OR CONTRACTOR WITHIN 60 DAYS OF STATEMENT DATE ON WHICH CHARGE APPEARSCHARGES NOT PAID OR DISPUTED WILL BECOME DELINQUENT
10 DELINQUENCY CYCLE 30 DAYS - PAST DUE 60 DAYS - DELINQUENT - CARD SUSPENDED75 DAYS - $29 LATE FEE CHARGED TO ACCOUNT90 DAYS - DUE PROCESS LETTER SENT TO CARDHOLDER ADVISING THEY HAVE 30 DAYS TO SETTLE ACCOUNT OR IT WILL BE SENT FOR COLLECTION VIA SALARY OFFSET120 DAYS - CARD CANCELLED210 DAYS - ACCOUNT CHARGED OFF/CREDIT BUREAU NOTIFIED
11 TRAINING Cardholder EAS Training: APC Training:Electronic Account System (CITIDIRECT)Classes at SmartPay 2On-site when requestedCBT training (www.defensetravel.dod.mil/passport)Cardholder EAS Training:CBT or in person by APCCardholder initial and refresher training on GTCC use is located at the DoD TCPMO web site(www.defensetravel.dod.mil/passport)
12 ACCOUNTABILITY PERSONAL FINANCIAL RESPONSIBILITY VIOLATION OF PUBLIC LAW: PLCARDHOLDER AGREEMENT OUTLINES CONTRACTORREMEDIES (LATE FEES, ETC.)STATEMENT OF UNDERSTANDINGNEGATIVE CREDIT BUREAU REPORTINGSALARY OFFSET OR INDEPENDENT COLLECTION AGENCY REFERRAL
13 CITI CUSTOMER SERVICEDedicated representatives for each Service/Defense Agency at program manager levelDedicated customer service phone number for APCs40% of cardholder customer service staff are prior BoA customer service employees
14 PROGRAM OVERSIGHT DOD INITIATIVES DATA MINING DOD ESTABLISHED INDICATORSVISA DATAMINING TOOL AVAILABLE SEP 2009ARMY INTERNAL REVIEW OFFICE/AAA AUDITSCBA AND IBA DATAREPORTS TO SERVICE FOR ACTIONEXPANDS ARMY ACCOUNT REVIEW REQUIREMENTREPORT ON RESULT OF TRANSACTION REVIEW TO INCLUDE ANY ADMINISTRATIVE/DISCIPLINARY ACTION TAKEN
15 PROGRAM OVERSIGHT DOD INITIATIVE (CONT’D) CREDITWORTHINESS CODIFIED BY FY 04 DEFENSE AUTHORIZATION ACTDOD WILL DETERMINE CREDITWORTHINESS BEFORE ISSUING CHARGE CARDS-1744 AND H.R (Two new bills currently pending in this session)EXPANDS THE PROVISION GOVERNMENT WIDEDOD POLICY/OMB CIRCULAR 123 PART BCREDIT CHECKSELF CERTIFICATIONMINIMUM FICO SCOREFAILURE TO MEET MINIMUM FICO SCORE OR SATISFACTORILY COMPLETE SELF CERTIFICATION WILL MAKE INDIVIDUAL INELLIGIBLE FOR CARDTRAVEL ADVANCE, PERSONAL FUNDS, CBA FOR TRANSPORTATION COSTCAN RE-APPLY IN 24 MONTHS
16 PDT PROGRAMALL AUTHORIZED RELOCATION EXPENSES EXCEPT HHG AND REAL ESTATEMUST REGISTER WITH APC PRIOR TO DEPARTUREACCOUNT WILL BE PLACED IN MISSION CRITICAL STATUS/PDT WITH START AND END DATEACCOUNT WILL NOT AGE OR INCUR LATE FEES WHILE IN STATUSACCOUNT AGES CURRENT AT END DATE AND WILL NOT GO DELINQUENT FOR 60 DAYS
17 SUMMARY TRAVEL CARD MAKES TRAVEL CONVENIENT AND EASY. TRAVEL CARD IS FOR OFFICIAL TRAVEL EXPENSES ONLY.CARDHOLDER IS RESPONSIBLE FOR USE & PAYMENT.COMMANDER & SUPERVISORS MUST BE INVOLVED.