GENERAL SERVICES ADMINISTRATION

Washington, DC 20405

December 2, 2005

FEDERAL TRAVEL REGULATION\
GSA BULLETIN FTR 05-08

TO: Heads of Federal Agencies

SUBJECT: New requirements for the issuance and management of the
Governmentwide travel charge card---Office of Management and Budget
(OMB) Circular A-123 (revised).

1\. [Purpose.]{.underline} This Bulletin informs agencies that in
accordance with the OMB Circular A-123 (revised), Appendix B, issued
August 5, 2005, new travel charge card policies are issued to Executive
Branch departments and agencies in order to help reduce the risk of
fraud, misuse, and late payments. OMB Circular A-123, Appendix B is
effective October 1, 2005. An amendment to the FTR on the use of the
government issued travel charged card is forthcoming.

2\. [Background.]{.underline} OMB Circular A-123, Appendix B,
establishes guidance for Executive branch agencies for improving the
management of government charge card programs. The requirements in OMB
Circular A-123, Appendix B pertain to the use of charge card programs by
agencies and their employees and must be included in internal agency
regulations, procedures, and training materials. This Bulletin serves as
guidance to agencies on implementing those policies and guidelines that
are related to the official travel charge card stated below:

3\. [Travel Charge Card]{.underline}:

OMB Circular A-123, Chapter 3 requires that each agency provide training
on the use of the official travel charge card. Training for the travel
card holders must provide general information on traveling for the
government and review of how to use the travel card, including agency
travel card policy and procedures, and proper card use. This training
must also inform travelers of the requirements of the Federal Travel
Regulation (FTR), specifically Part 301-51---*Paying Travel Expenses*
and Part 301-54---*Collection of Undisputed Delinquent Amounts Owed to
the Contractor Issuing the Individually Billed Travel Charge Card*. If
the travel approving official is not a cardholder, he or she must take
the same training as cardholders.

> The A/OPC (the Agency/Organization Program Coordinator) is the
> official responsible for overseeing the card program for the agency
> and establishing agency guidelines. The A/OPC must receive training on
> his or her role and responsibilities prior to appointment as the
> A/OPC. Such training must cover FTR part 301-70, subpart H (sections
> 301-70.700 through 301-70.708). The A/OPC must also receive the same
> training as the cardholders

4\. [Risk Management::]{.underline}

Chapter 4 of OMB Circular A-123 requires all agencies to implement risk
management controls, policies, and practices for the travel charge card.
Risk management controls, policies, and practices are a critical tool
for ensuring the efficiency and the integrity of charge card programs by
eliminating payment delinquencies, charge card misuse, fraud, and other
forms of waste and abuse. Responsibilities and risk management controls,
policies, and practices for addressing payment delinquencies are
contained under sections 4.3 and 4.4 of OMB Circular A-123, Appendix B.
Notably, section 4.3 requires agencies to maintain policies ensuring
that administrative and/or disciplinary actions are initiated against
cardholders who fail to use the card properly or make timely payment.

5\. [Split Disbursement/Salary Offset:]{.underline}

Section 4.4.3 of OMB Circular A-123, Appendix B mandates split
disbursement and salary offset for travel charge card holders. However,
agencies may request exemptions when they determine that the cost of
implementing split disbursement and/or salary offset exceeds the
benefits. Agency heads must request such exemptions from the Director of
the Office of Management and Budget (OMB) in writing, and provide the
reasons therein. The Director of OMB, in consultation with the
Administrator or General Services Administration (GSA), will respond no
later than 30 days after receiving the request for waiver or exemption.
Due process requirements for salary offset are contained under section
4.4.4 of Chapter 4 OMB Circular A-123.

6\. [Performance Metrics and Data Requirements:]{.underline}

Chapter 5 of OMB Circular A-123, Appendix B requires agencies to
maintain and report data and performance metrics for their charge card
programs. Data reporting is a critical tool for improving charge card
management and charge card managers and other stakeholders need timely
and accurate data to assess:

a)  Compliance with legal requirements;

b)  The effectiveness of efforts to mitigate risks of fraud, waste, and
    abuse; and

c)  Performance trends in managing costs and other relevant indicators
    of the program's success.

Data requirements and performance metrics are contained in sections 5.3
and 5.5 of OMB Circular A-123, Appendix B.

7\. [Credit Worthiness:]{.underline}

Credit worthiness assessments are an important internal control to
ensure that charge cardholders are financially responsible. Chapter 6 of
OMB Circular A-123, Appendix B states that pursuant to Section 639 of
the Consolidated Appropriations Act, 2005 (Pub.L. 108-447) that agencies
must assess the credit worthiness of all **new** travel card applicants
prior to issuing a card. Current cardholders are not subject to this
requirement. See Chapter 6 of OMB Circular A-123 for information on
obtaining credit scores for applicants, sources for obtaining charge
card applicant credit scores, when a re-evaluation of credit worthiness
is required, and other options for agencies.

For more information and guidance pertained within this circular refer
to OMB Circular A-123, Appendix B, issued August 5, 2005.

8\. [Expiration date]{.underline}. This Bulletin remains in effect until
further notice.

9\. [For further information contact]{.underline}. Ms. Umeki Gray
Thorne, Travel Management Policy at (202) 208-7636.

By delegation of the Administrator,

General Services Administration

G. Martin Wagner

Associate Administrator

# Office of Governmentwide Policy