# Presentation: 244970

##     U.S. Department of the InteriorSmartPay     Integrated Charge Card

**DOI Business Management Conference**
**Cynthia Martin**
**DOI Integrated Charge Card, Program Manager**

**Notes:**
For those I don’t know
I’m Cynthia Martin
Office of Acquisition and Property Management
Department’s integrated charge card program manager
Over 30 years
Involved w/the charge card program since 1986

Interior’s integrated charge card program is UNIQUE in the government – OVERVIEW
Share BEST PROGRAM that saves program dollars and reduces employee liability
MANAGEMENT CONTROLS the important role of the APPROVING OFFICIAL actually it is probably the most important management control
How to minimize waste and abuse
Something we hear almost everyday now in the news IDENTITY THEFT and INTERNET SCAMS
Where you can get technical assistance

## About: The DOI Integrated Charge Card

- Small purchases, travel and fleet functions
- Individual accountability with central financial management
- Streamlines administrative process
- Leverages buying power
- Maximizes tax exemption

**Notes:**

Prior to designing our current card program, we SURVEYED EMPLOYEES and based on the survey and past experience we had the following goals:
Improved card acceptance (issues with former AMEX for travel; Wright Express for fuel)
Streamline administrative processes
Pursue one-card solution (employees said they didn’t want to deal with more than one card)
Maximize tax exemption recognition

Interior’s Integrated Charge Card Program is the largest integrated charge card program in the world (public or private).
purchase, travel and fleet business lines are combined in one system.

## State Tax Exemption

- When does the government pay taxes for goods and/or services? ...even though it’s against the Constitution
- Bill paid directly by the government
- Bill paid by employee (government charge card) to be reimbursed by the government
- To find a particular state’s policy:
- 	_[www.gsa.gov](http://www.gsa.gov/)__ search “state tax exemption forms overview”_

**Notes:**
The general rule on the Federal government paying taxes for goods or services is 
	Directly by the government
	By the employee even on a government card to be reimbursed by the government
The Federal government pays the tax in accordance with the particular states tax policy

State policy varies
	GSA SmartPay website if you have a question about a particular state

## Best Practice: Centrally  Billed Lodging

- Bureau of Reclamation
- Minerals Management Service
- U.S. Geological Survey
- Office of Special Trust (June 19, 2006)
- Office of Surface Mining (July 19, 2006)

**Notes:**
Several bureaus direct bill lodging

Bureau of Reclamation
	Was the pilot they have been centrally billing lodging since the beginning of the current contract
	We really appreciate all they’ve done
	Being the first they were highly scrutinized; they’ve been reviewed by the OIG and no problems have been reported

	Minerals Management Service
	U.S. Geological Survey
		were next and have had great success

	OST and OSM are scheduled to convert to central billed lodging in June and July

## Typical Travel Costs

**Typical Travel Costs**

- Transportation 30%

- Rental Car/ Parking 25%

- Hotel  30%

- Meals 15%

- Direct Billed-Other Agencies

- Direct Billed-Interior

- Interior Direct Billing with Hotel

- Individually Billed

**Notes:**
Interior employees make about 300,000 trips a year.  

Most federal agencies only bill airfare and other transportation for direct government payment -  about 30% of the average trip

At Interior, we pay directly for
Airfare (or other transportation)
Rental cars and fuel
Parking, tolls, taxi fares and other miscellaneous transportation expenses
And for the bureaus I told you about we also centrally bill lodging

This accounts for about 55% of the average trip, with hotel central billing, 85%
This reduces our employees’ personal liability to 15% or less
The bureaus that centrally bill lodging typically have a 0% delinquency rate.

Also where other agencies direct bill air fare to a central account, Interior’s airline tickets are direct billed to the government but tied to the individual cardholder account – 

Eliminating the need to reconcile a huge monthly statement
This also allowed us to negotiate better price with new travel agency contractor and provides more accountability.

## Trip Cost Comparison typical 4-day trip Washington, D.C. to New Orleans, Louisiana

**Centrally billed lodging**
- Airfare                $365.00
- Agent fee               10.50
- Rental car/parking 375 .00
- Lodging                **360.00**
- M&IE                   _100.00_
- Employee liability     **$100.00**
- (Payment due bank regardless
-  receipt of travel reimbursement)

**No centrally billed lodging**
- Airfare               $365.00
- Agent fee              10.50
- Rental car/parking 375.00
- Lodging               **418.00**
- M&IE                   _100.00_
- Employee liability     **$518.00**
- (Payment due bank regardless of
- receipt of travel reimbursement)

**Notes:**
With central billing of lodging all travel charges bill to the agency except meals and some incidental expenses

Employees claim reimbursement only for meals and incidentals, unless the card was not accepted

Travel claims show the centrally billed expenses for reconciliation

You can see from this cost comparison that employees in bureaus that centrally bill lodging owe considerably less to file a claim for to be reimbursed

You can also see the cost avoidance savings to the government of not paying taxes and lodging.  Multiple this saving by 300,00 trips a year and there is significant savings to your budget...money that is available for accomplishing direct mission work.

## What’s New: OMB Circular A-123, Appendix B

- Issued August 2005
- Requires Agencies to maintain internal controls that reduce the risk of fraud, waste, and error in government charge card programs.
- Required credit checks on all new purchase and travel card applicants prior to issuing a card.
- Revised April 28, 2006
- P.L. 109-115 revised requirement for credit check
- DOI all or none because of integrated card program

**Notes:**

We’ve all seen the headlines
	 Employee Misuse of Credit Cards Cited - GAO Report Says Oversight is Weak
		Washington Post, The Federal Page, April 29, 2004

Thieving Pentagon Employee Promoted
           Washington Post, March 13, 2002

Identity Theft:  Bank data on 1.2 million feds missing—are you safe?

OMB issued OMB Circular A-123, Appendix B on the management of government charge cards

	The Circular requires agencies maintain internal controls that reduce the risk of fraud, waste, and error in government charge card programs.
	Congress and OMB are also very concerned about government employees not paying their bills on time, so they established a requirement credit checks.

	They recently revised that requirement for credit checks on centrally billed accounts but that doesn’t affect Interior because all of our accounts have the potential ability to centrally or individually bill.

## Management Control:Taking Charge of Charge Cards

- What must you do
- Approving officials/supervisors
- Cardholders
- Up-to-date records
- On-line training
- Cardholders
- Approving officials
- Agency/Organization Program Coordinators

**Notes:**
Approving Officials who are usually the cardholder’s supervisor critical.  The approving official knows if an item purchased is authorized

If the employee was travel

It’s important that records are maintained and supporting documents are filed with the statement
Statements must be signed by both the cardholder and the approving official

We have on-line self pace training programs to ensure that you know your role and responsibilities
These training programs can also be printed as a desk reference.

## Drilling for Data

- Management control tools
- Data mining
- Exception reports

**Notes:**
Listing of everyone in an office that has a card or who had transactions
ATM cash withdrawals
Reports of multiple fuelings for a vehicle in a single day
Delinquency reports
Lists of convenience checks written
Suspicious convenience checks

These are just a few of the reports available for managing the cards you are responsible for

## Fraud, Waste or Abuse:What are the Penalties?

- Departmental Manual 370 DM 752
- 	Departmental Personnel Program
- 	Discipline and Adverse Actions
- Offenses related to Government travel charge card and/or purchase card.
- Misuse of travel card (i.e., personal/unauthorized purchases) or delinquent in payment
- Misuse of travel card (i.e., personal/unauthorized purchases) **and **delinquent in payment
- Unauthorized use of or failure to appropriately monitor use of Government purchase card; “micropurchasing” violations.

**Notes:**
What happens if misuse is found?

Penalties are prescribed in Departmental Manual 370 DM 752 – Discipline and Adverse Actions that was formerly called the Table of Penalties.

Prescribed penalties range from a warning or counseling to removal

## Paying the Penalty

- What happens if fraud or abuse does occur?
- Oz (Oswald State Correctional Facility,
- 	      Level Four--aka, Emerald City)
- Over approximately a 2-year period:
- 11 suspensions
- 17 resignations/retirements
- 5 convictions
- 1 removal
- Numerous letters of warning, counseling, reprimands, and reassignment/transfers

## Phishing 

**	****Main Entry:**  phishing **Part of Speech:**  *noun ***Definition:**  the practice of luring unsuspecting Internet users to a fake Web site by using authentic-looking email with the real organization's logo, in an attempt to steal passwords, financial or personal information, or introduce a virus attack; the creation of a Web site replica for fooling unsuspecting Internet users into submitting personal or financial information or passwords
**	****Etymology:**  1996; as in 'fish' for users **Usage:**  phish, v; phisher, n

**Notes:**
Read definition

## Phishing

**What should I do if I receive an email from Bank of America asking me to provide information?**
**What action should I take if I suspect an email from Bank of America or any other institution or organization may be fraudulent?**
- _www.Abuse@BankofAmerica.com_
**Call 800 number on the back of your charge card**
**What should I do if I receive a phone call requesting information asking to confirm my personal information?**
**How can I tell if a website is secure?**
**Where can I get additional information regarding phishing scams?**
- _[www.fraudwatchinternation.com/main.shtml](http://www.fraudwatchinternation.com/main.shtml)_
**Bank of America will never randomly ask you to validate personal or account information via email or Internet link.**

## DETER-DETECT-DEFEND

- Identity Theft
- 33% of all identify thefts involve a family member – over trust leads to opportunity
- 52% of wireless networks in New York City were not secure
- Phishing duped 2.4 million people in 2005 to give out information
- Arizona is the leading state in check fraud; also leads in methanol amphetamines
- Common Ways Identity Theft Happens:
- Dumpster Diving
- Skimming
- Phishing
- Changing Your Address
- “Old-Fashioned” Stealing
*Exercise doubt*

**Notes:**
Read slide

We all heard this week about the laptop that was stolen with the personal information of our Veterans and their families 

## Charge Card Technical Help

- Charge Card Support Center Help Desk 303 969-5588, Kristine Prael, Director
- BIA 	Jeneane Dufour	503 231-2211
- BLM	Lloyd Fread	303 236-5927
- BOR	Alexa Flezer	303 445-3092
- FWS	Randy Van Pelt	303 984-6806
- USGS	Lisa Zukowski	703 648-7347
- MMS 	Robin Robinson	703 787-1302
- NBC	Dawn Smith	303 969-6630 x2561
- NPS	Dyra Johnson	202 354-1947
- OIG	Joseph Gregory	703 487-5381
- OS		Charles Washington	202 208-5550
- OST	Shirley Vanderburg	505 816-1295

**Notes:**
Need technical help? Running reports or other technical assistance call your APC or the Charge Card Support Center help desk.

## Future Plans

- SmartPay contract awarded in November 1998 will expire November 2008
- Polled employees
- Improved card acceptance
- Streamline administrative processes
- Pursue one-card solution
- Maximize tax exemptions

**Notes:**
In 1998, GSA awarded five contracts to provide federal agencies with a way to pay for commercial goods and services, as well as travel and fleet-related expenses. That master governmentwide contract program is called SmartPay

## We Want YOUR Comments

- What do you like?
- What could be improved?
- New uses?

## Send your comments to:

- 		            Cynthia Martin
- 		   _[cynthia_martin@ios.doi.gov](mailto:cynthia_martin@ios.doi.gov)_
- 		   DOI Integrated Charge Card
- 			Program Manager
- 		       202 606-3144 (voice)
-   		        202 219-4244 (fax)