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GSA SmartPay ® Program Update

GSA SmartPay ® Program Update. David J. Shea, CPCM, PMP Program Director, Office of Charge Card Management (OCCM) Federal Acquisition Service 11 th Annual GSA SmartPay® Training Conference July 28-30, 2009. Welcome . What are your objectives for this session?

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GSA SmartPay ® Program Update

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  1. GSA SmartPay® Program Update David J. Shea, CPCM, PMP Program Director, Office of Charge Card Management (OCCM) Federal Acquisition Service11th Annual GSA SmartPay® Training ConferenceJuly 28-30, 2009

  2. Welcome • What are your objectives for this session? • What issues would you like to discuss? • What questions would you like to have answered as a result of this session?

  3. Training Session – Value to the Customer • Gain a general understanding of the GSA SmartPay® Program and its current initiatives: • The value of charge cards to government agencies/organizations • The value of the GSA SmartPay® Program to its customers • The new products and services offered under GSA SmartPay® 2 • The future of the GSA SmartPay® Program

  4. Agenda • The GSA Office of Charge Card Management Overview • GSA SmartPay® 2 Transition • GSA SmartPay® Program Performance • Relevant Legislation and Regulation • Charge Card Management Best Practices • The Future of the GSA SmartPay® Program • Training Resources • Q&A

  5. Congratulations! On Completing a Successful Transition to GSA SmartPay® 2 5

  6. GSA Office of Charge Card Management (OCCM) Overview 6

  7. Jim Williams Commissioner (Q) Tyree Varnado Deputy Commissioner Bruce E. Caughman Chief of Staff Office of Strategic Business Planning and Process Improvement (QP) Amanda G. Fredriksen Acting Assistant Commissioner Office of Administration (QA) Karen J. Hampel Assistant Commissioner Office of General Supplies and Services (QS) Joseph H. Jeu Assistant Commissioner Office of Travel, Motor Vehicle, and Card Services (QM) William F. Webster Assistant Commissioner Office of Integrated Technology Services (QT) Edward J. O’Hare Assistant Commissioner Office of Assisted Acquisition Services (QF) Mary A. Davie Assistant Commissioner Office of the Controller (QB) Jon A. Jordan Controller Office of the Chief Information Officer (QI) Elizabeth F. DelNegro Acting Chief Information Officer Office of Customer Accounts and Research (QC) Gary Feit Assistant Commissioner Office of Acquisition Management (QV) Steven J. Kempf Assistant Commissioner Office of Acquisition Operations (QMA) Rebecca A. Koses Director Office of Charge Card Management (QMB) David J. Shea Director Travel and Transportation Services (QMC) Timothy J. Burke Director Office of Motor Vehicle Management (QMD) William A. Toth Director Where does the Office of Charge Card Management (OCCM) fit into GSA? 7

  8. Office of Charge Card Management (OCCM) Organization David J. Shea Office of Charge Card Management Director Erin VanDagna Service Delivery Division Director Perry Hampton Utilization and Analysis Division Director Beverly Craig Charge Card Acquisition Support Division Director 8

  9. GSA SmartPay® Program Overview • The GSA SmartPay® program office currently manages three Master Contracts with charge card providers: Citibank, JPMorgan Chase, and U.S. Bank. Through these contracts, agencies/organizations can obtain a number of different types of charge card products and services to support their mission needs, including: • Purchase Cards:  For purchasing general supplies and services; • Travel Cards:  For travel expenses related to official government travel (airline, hotel, meals, incidentals); • Fleet Cards:  For fuel and supplies for government vehicles; and • Integrated Cards:  Two or more business lines (card types) whose processes are integrated into one card. DID YOU KNOW… $970 was charged on the GSA SmartPay® charge card every second in FY08 • The GSA SmartPay® Program is the largest government charge card program in the world

  10. Transition to GSA SmartPay® 2

  11. GSA SmartPay® 2 Transition Statistics • 100% of agencies’/organizations’ cardholders transitioned successfully to the GSA SmartPay® 2 Program • To ensure a smooth transition to the next Master Contract, GSA OCCM has collected and documented numerous transition lessons learned 11

  12. GSA SmartPay® 2 Transition Lessons Learned 12

  13. GSA SmartPay® 2 Transition Lessons Learned Continued 13

  14. GSA SmartPay® 2 Transition Lessons Learned Continued 14

  15. GSA SmartPay® Program Performance

  16. Q. What was the approximate amount of program spend, number of transactions and number of cardholders in FY08? • $30 billion, 50 million, 1 million • $20 billion, 100 million, 1 million • $30 billion, 100 million, 3 million • $40 billion, 150 million, 3 million

  17. Q. Each year the GSA SmartPay® Training Conference is conducted to provide training to Agency/Organization Program Coordinators (A/OPCs). This year, approximately how many of your colleagues are here to share the latest trends in charge card management? • 4,000 • 5,400 • 8,000 • 2,500 17

  18. Q. In FY08 agencies/organizations received this net amount of refunds from program banks. • $10 million • $187 million • $500,000 • $1 million 18

  19. Q. In terms of total charge card spend in FY08, the Purchase Card program is the largest business line within the GSA SmartPay® program. Of the 10 agencies/organizations that make up 95% of the total Purchase Card spend, which is the second largest? • Department of Agriculture • Department of Defense • Department of Veterans Affairs • U.S. Postal Service • Department of Interior 19

  20. Relevant Legislation and Regulation

  21. Q. What is the public law passed in February 2009 that includes over $787 billion in stimulus spending? This public law delays the Tax Increase Prevention and Reconciliation Act of 2005 (TIPRA) implementation of withholding on payments made to government contractors until after December 31, 2011. • Tax Increase Prevention and Reconciliation Act of 2005 (P.L. 109-222) • Omnibus Appropriations Act of 2009 (P.L. 111-8) • The American Recovery and Reinvestment Act of 2009 (P.L. 111-5) http://www.recovery.gov/

  22. Q. Which of the following payments would be subject to 3% withholding under the Tax Increase Prevention and Reconciliation Act of 2005 (TIPRA)? • $5,000 recurring utility payment paid using the Purchase Card • $8,000 in CBA Travel expenses • $9,000 emergency Purchase Card payment • $11,000 non-emergency Purchase Card payment • All of the above 22 http://www.thomas.gov

  23. Q. The Tax Increase Prevention and Reconciliation Act of 2005 (TIPRA) 3% withholding applies to all GSA SmartPay® 2 charge cards. • True • False Most payments for individual travel, lodging, and meal expenses would fall beneath the $10,000 payment threshold 23 http://www.irs.gov/pub/irs-tege/2008_0104_0001_1.pdf

  24. Q. Your agency/organization has received Recovery Act funding, what are some guiding principles you may want to consider when using the GSA SmartPay® 2 Purchase Card for your Recovery Act purchases? • GSA SmartPay® 2 Purchase Cards can be used for official purchases in support of the Recovery Act, consistent with OMB Circular A-123, Appendix B, and agency/organization policy • Additional Purchase Card accounts can be established with a Recovery Act accounting code as a default • Cardholders should follow typical transaction reconciliation procedures, but must reconcile purchases to the accounting code(s) and provide appropriate Recovery Act transaction description(s) (if applicable) as specified by agency/organization policy for Recovery Act transactions • All of the above http://www.omb.gov

  25. Q. What is the micro-purchase threshold for contingency operations? • $10,000 • $5,000 • $15,000 • There is no micro-purchase threshold for contingency operations 25 http://acquisition.gov/far/loadmainre.html

  26. Q. Senator Charles Grassley is sponsoring a bill, S.942, “The Government Charge Card Abuse Prevention Act of 2009.” Which of the following is NOT addressed in the bill: • Agencies/organizations with annual program spend of $10 million or more are required to report all charge-card related violations to the Office of Management and Budget (OMB) • Purchase cardholders must review and reconcile their card statements and forward to the appropriate certifying official • Penalties are enforced for violations of improper charge card use • Risk assessments and audits are required by the Inspector General • The executive agency/organization is not responsible for disputing centrally-billed unallowable and erroneous charges 26 http://www.govtrack.us/congress/bill.xpd?bill=s111-942

  27. Q. Which of the following findings from the March 2008 Government Accountability Office (GAO) report on Governmentwide Purchase Cards did the GSA Office of Charge Card Management (OCCM) agree with: • GSA OCCM has the authority to help agencies/organizations improve controls over independent receipt and acceptance • GSA OCCM has the authority to help agencies/organizations with asset accountability • GSA OCCM has the authority to impose financial liability for unauthorized purchases • None of the above http://www.gao.gov

  28. Charge Card Management Best Practices

  29. Q. Your agency/organization Fleet Card can be used for a vehicle leased through GSA Fleet. • True • False Only the GSA Fleet Services Card can be used for vehicles leased through GSA Fleet

  30. Q. According to OMB Circular A-123, Appendix B, what specific risk management controls, policies, and practices are required for addressing payment delinquencies? • Split disbursement • Salary offset • Split disbursement and salary offset procedures • Due process requirements prior to salary offset • All of the above www.whitehouse.gov/omb/circulars/a123/a123_appendix_b.pdf 30

  31. Q. A purchase cardholder is asked to make a $4,000 transaction in a non-emergency. What should the cardholder do? • The cardholder should not make the purchase and should refer the purchase to their servicing contracting officer because the amount is over the micro-purchase threshold • Request the merchant to manually authorize (force) the transaction • The cardholder should split the transaction into two separate transactions under the micro-purchase threshold • None of the above 31

  32. Q. An agency/organization needs to issue a card to an employee who does not meet the minimum FICO 660 credit score required to obtain a Travel Card. Which GSA SmartPay® 2 card could they issue? • GSA SmartPay® Travel Card with normal agency/organization defined transaction limits • Debit Card • Stored-value Card • Contactless Card 32

  33. Q. When can a government employee use their Purchase Card to buy an iPod? • Anytime, as long as the iPod is paid for with agency/organization funds • Never • Only when the iPod supports an agency’s/organization’s mission • When you are buying a gift for a co-worker 33

  34. Q. According to the Federal Acquisition Regulation (FAR), when an agency/organization head or designee determines that a contractor provided gratuities to government personnel, the government may: • Terminate the contractor’s right to proceed • Initiate suspension measures • Take no action • Terminate the contractor’s right to proceed and initiate suspension measures (A and B) 34 http://www.acquisition.gov/FAR/current/html/Subpart%203_2.html#wp1085016

  35. Q. If you are on travel in Arizona using your GSA SmartPay® 2 Travel Card to pay for your lodging, are you required to pay Arizona lodging and occupancy taxes? • Yes • No Each state has different tax exemption rules. Please refer to the GSA SmartPay® website (www.gsa.gov/smartpay) to view a full listing of state tax information. In Arizona, individuals are exempt from lodging and occupancy taxes if they stay for 30 consecutive days. 35

  36. Q. According to the OMB Circular A-123, Appendix B, which of the following is a required element of an agency’s/organization’s charge card management plan? • Identification of key management officials and their responsibilities for each charge card program • Establishment of a process for formal appointment of cardholders and approving officials, where applicable • Implementation of a process to ensure the credit worthiness of new charge card applicants • Description of agency/organization training requirements • Management controls, policies, and practices for ensuring appropriate charge card and convenience check usage and oversight of payment delinquencies, fraud, misuse, or abuse • All of the above 36 www.whitehouse.gov/omb/circulars/a123/a123_appendix_b.pdf

  37. The Future of the GSA SmartPay® Program

  38. The Future of the GSA SmartPay® Program The future of GSA SmartPay® will focus on: • Encouraging contractors to continuously upgrade offerings to create a dynamic marketplace from now until 2018 that provides agencies/organizations the opportunity to change banks and brands more readily than they do today • Exploring the following initiatives: • Grants funding card • Emergency cards • State and local government cards • Strategic sourcing • Standard interface between banks and agency/organization financial systems

  39. Training Resources • GSA SmartPay® Annual Training Conference • GSA SmartPay® online training: • Cardholders: Charting the Course http://www.gsa.gov/sppurchasetraining • A/OPCs: http://www.gsa.gov/Portal/gsa/ep/contentView.do?contentType=GSA_BASIC&contentId=13032 • Agency/organization-provided training • Bank-provided training • Materials available online, and hard copies may be ordered by visiting the http://apps.fss.gsa.gov/cmls/index.cfm • Mini card-sized brochure – “Helpful Hints for Purchase Card Use,” “Helpful Hints for Travel Card Use,” and “Helpful Hints for Fleet Card Use”

  40. Thanks for Your Time and Attention! David J. Shea, CPCM, PMP david.shea@gsa.gov (703) 605-2867 Please provide your feedback and thoughts about the current and future program at: www.gsa.gov/gsasmartpay under “GSA SmartPay® Program Feedback Form” www.gsa.gov/gsasmartpay

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