DoD Centrally Billed Account Reconciliation · PDF fileDoD Centrally Billed Account Reconciliation Process ... phone number are kept up to date in bank’s account profile ... setup

GSA SmartPay® 2010 Conference

DoD Centrally Billed Account Reconciliation Process

Mr. Jay Darnell

Defense Travel Management Office


Office 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 Process

2



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 1.3 million IBA cardholders

– Comprised 62% of total government-wide spending in FY08

3



Regulations

• Financial Management Regulation (FMR), Vol. 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 allowances

4



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 accounts

5



Delinquency Timelines

6

• 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 accomplished


Office 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 GTCC



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; 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 rebates

8



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 bank

9



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 payment

10



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 33

11



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 manager

12



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:

• 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 efficiently

13



Account Setup Process – Request Approved

14

CBA Request

Sent to CPM

CPM Reviews

Request Request

Approved

CPM sends

Bank Application to

activity/unit

Activity/unit

completes

application and

sends to CPM

CPM signs

application and

sends to bank

CPM coordinates

account set up

with bank

Bank sets up new

account and

notifies activity/unit

Bank distributes CBA to

designated individuals

If necessary,

CPM contacts

applying

activity/unit for

clarification

CPM/APC will coordinate

setup within DTS, if

necessary



Account Setup Process – Request Denied

15

CBA Request

Sent to CPM

CPM Reviews

Request

Request

Denied

If necessary, CPM

contacts applying

activity/unit for

clarification

CPM notifies

activity/unit and

explains reason

for denial of

request



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 AO

16



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 payment

17



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 within

60 days, bank may not honor

the dispute request

18




• During the dispute process, the bank:

– Issues temporary credits for correctly filed

and 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 account

19




• 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 dispute

20



CBA Invoice Reconciliation

21



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)

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 account

22



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



“CBA Register” and Reconciliation

• CBA Register allows you to keep an accurate

balance with which to reconcile with the bank’s

monthly invoice ending balance

24



Sample CBA Register

25



Where Does a CBA Register Fit into the

Reconciliation Process?

• Before entering any data onto your CBA Register, ALL

Unmatched” 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 Final Reports!

26



Reports Used for Your CBA Register

• All debit (charge) transactions on the bank’s electronic file that match with the CTO’s file

Reconciled Debit Transaction Report

• All credit transactions on the bank’s electronic file that match with the CTO’s file

Reconciled Credit Transaction Report

• Lists all unmatched transactions and shows action during reconciliation

• Resolved: Right hand column will be zero

• Unresolved: Right hand column shows discrepancy

Billing Discrepancy Report

27



Example #1: A New Account

28



CBA Register – New Account

29

• Since this is a new account, the “Previous Balance” entry is

blank



CBA Register – Data Sources

30



Preparing Your CBA Register

• Once the data has been entered in your CBA Register, begin

your CBA Reconciliation

Reconciled Debit

Transaction Report

Reconciled Credit

Transaction Report

Bank’s Ending

Balance

CBA Register

31



CBA Register – New Account

32



Credits on CTO Reports Not Recorded by Bank

33



Now They Match!

• The “Book Ending Account Balance” and the “Bank’s

Ending Balance” have been Reconciled34

Reconciliation Complete



What Happens Next Month?

• To perform the next month’s reconciliation, do the

following:– Prepare CBA Register for new month

– Pull last month’s reconciliation to identify all items that

were carried forward that were not reconciled

– Check the new bank statement to ensure those items

appear

• If they did, that item is not included on the new month’s

reconciliation

• If they didn’t, it remains un-reconciled and will need to be

carried forward pending resolution on next month’s bill

35



Next Month’s Register

36



Next Month’s Reconciliation

37



The “Book Ending Account Balance” & the “Bank’s Ending Balance” match

38

Next Month’s Reconciliation

Now They Match!



Example #2: Existing Account

39



Reconciling An Existing Account for the

First Time

• First, create an Account Register

and enter:

– Previous Balance

– Amount of the last payment made

(assuming all other payments

have been made)

• This is what you thought you

owed

• The rest of the process is the

same

Let’s look at the previous account using the actual statement figures…..

40



Is This Account In Balance?

41



Enter Data onto Account Register

Reconciled DebitTransaction Report

Bank Invoice

42



CBA Monthly Reconciliation

43



Reconciliation Complete

• The “Book Ending Account Balance” and the “Bank’s Ending

Balance” have been Reconciled44

Now They Match!



Why Did We Deduct The Old Difference?

• Since we paid LESS than what the bank stated we

owed, the bank balance is higher than what we thought

• Need to deduct it to reconcile to our “lower” balance

45



What About Next Month?

• Next month, if none of the old items are discovered and

resolved, the same amount will appear on the

reconciliation as an un-reconciled or disputed item

• This continues until the old items are resolved

46



Documentation to “Bundle”

• CBA Monthly Reconciliation Form

• CBA Account Register

• Month’s FULL bank statement

• Initial and final CTO Reports (Label as “Final”)

• Communications with Command POC and the CTO

concerning the reconciliation

• All correspondence initiated awaiting resolution (to the

travel card vendor or airline)

• Other relevant reconciliation documents

• Place in a folder labeled with the invoice number

• Retain for 6 years, 3 months

• Copy of travel orders, if required

47



CBA Reconciliation Tips

• Be prepared before cycle date

• Examine the Unbilled Report

• Understand the importance of Statement Remarks

• Look for Unauthorized Charges

• Be Aware of Successful Reconciliation

Requirements

48



Common Mistakes

49

• Missing Standard Document Numbers (SDNs)

– Approving Official is responsible for ensuring SDNs are

included

• Incorrect Lines of Accounting (LOAs)

– Approving Official is responsible for

ensuring LOAs are correct

• Missing Travel Orders

– Transportation Office is

responsible for ensuring TOs

are included when necessary



CBA Exception Process

• Process by which an authorized APC may request a

temporary reprieve on the suspension of a CBA

• CBA Exception requests generally require 3 business days to

process.

• URGENT requests will be reviewed within 24 hours (the word

URGENT must be included in the subject line of the email)

• Exception status can be requested on suspended CBAs

• Canceled accounts DO NOT qualify for CBA exception.

• Exception period will not exceed 30 days per request

• No more than 3 requests in a rolling 12 month period.

• Requests must be in writing to [email protected]

• Phone requests WILL NOT be considered50

mailto:[email protected]



CBA Exception Process

• All requests must include:

– Last 6 digits of account number

– Date of last payment

– Current days past due

– Reason for delinquency

– Expected full reconciliation date

– Expected payment date/amount

– Exception Justification

• All requests will be reviewed on a case-by-case basis

• Citi reserves the right to decline any request

51



Resources

• DTMO - www.defensetravel.dod.mil

• Component Websites

– USMC

http://www.marines.mil/units/hqmc/pandr/gtcc

– Army

www.asafm.army.mil

– Air Force

https://www.my.af.mil/afknprod/afgtc

– Department of Navy

https://www.navsup.navy.mil/ccpmd

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http://www.defensetravel.dod.mil/


http://www.asafm.army.mil/


https://www.my.af.mil/afknprod/afgtc

https://www.navsup.navy.mil/ccpmd

Documents

DoD Centrally Billed Account Reconciliation · PDF fileDoD Centrally Billed Account Reconciliation Process ... phone number are kept up to date in bank’s account profile ... setup