FAM 1995-38
FINANCIAL ADMINISTRATION MEMORANDUM NO. 95-038 (II.J.)
To: Bureau Assistant Directors, Administration
Director, Administrative Services
Bureau Finance Officers
Chief Division of Fiscal Services
From: Acting Chief, Division of Financial Administration
Office of Financial Management
Subject: Extension of Alternative Payment Processing Methods to
Centrally Billed Travel Charge Card (GTA) Billings
The purpose of this Financial Administration Memorandum (FAM) is to
describe an additional streamlining opportunity using alternate payment
methods for both VISA small purchase card and American Express GTA
billings.
As you know, on September 19, 1994, the General Accounting Office (GAO)
provided a positive response to the Department's request to use fast pay
procedures for Rocky Mountain Bankcard payments. The GAO decision was
distributed via FAM No. 94-064 (II.J.) on October 5, 1994.
Use of the alternate payment process has allowed bureaus to reduce
Prompt Payment Act interest penalties while redistributing payment
associated workload over a broader period of time. Further streamlining
in the payment area is timely due to downsizing.
The criteria for processing payment prior to verification of receipt and
acceptance of all billed items are:
1) wide geographic dispersion of bureau field offices,
2) the contractor is providing a financial service,
3) third party vendors provide the goods and services purchased, and
4) the contract between the Government and the vendor has a provision
for resolving account disputes after payment.
A preliminary copy of proposed revisions to OMB Circular A-125 on Prompt
Payment was issued with FAM No 95-028, September 18, 1995. It should be
noted that the proposed revision includes language that allows agencies
to pay credit card obligations prior to statement reconciliation.
The payment process for GTA accounts is very similar to that of Rocky
Mountain Bankcard. Therefore, bureaus are encouraged to consider using
the alternate payment process for GTA billings. Moreover, it should be
noted that the government-wide contract with American Express includes
specific language (copy attached) for resolving billing discrepancies
after payment.
Should you have questions or require additional information regarding
this FAM, please contact me on (202) 208-5684.
William E. Webber
Attachment
Prior Financial Administration Memorandums on this Subject:
No. 94-064 (II.J.) October 5, 1994
No. 95-028 (II.J.) September 18, 1995
