TREASURY DIRECTIVE: 74-12
DATE: April 27, 2007
SUBJECT: Use of Government Contractor-Issued Travel Charge Cards
1. PURPOSE. This Directive sets forth policy for the use of Government contractor-issued travel charge cards.
2. POLICY. It is the policy of the Department of the Treasury that the Departmental Offices (DO), Office of Inspector General (OIG), Treasury Inspector General for Tax Administration (TIGTA), and all bureaus are required to participate in the General Services Administration (GSA) Government Contractor-Issued Travel Charge Card (Travel Card) Program. The authority of the Inspectors General is set forth in Section 3 of the Inspector General Act and the Internal Revenue Service Restructuring and Reform Act, and defined in Treasury Order 114-01 (OIG) and Treasury Order 115-01 (TIGTA), or successor orders. The provisions of this directive shall not be construed to interfere with that authority.
3. BACKGROUND. There are two types of travel card accounts: The individually billed travel (IBT) card is a contractor-issued card used by travelers to pay for passenger transportation services, subsistence expenses, and other travel expenses incurred in connection with official travel. Charges are billed directly to the employee. Centrally billed accounts (CBA) are established to pay for official travel charges and for other official travel-related expenses under special circumstances (e.g., conferences, invitational travel). Normally, plastic cards are not issued in conjunction with CBAs. Charges are billed directly to the agency.
4. REQUIREMENTS.
a. The travel card must be used for all official travel-related expenses, unless an exemption applies (see paragraph 6). Employees shall use the travel card only for expenses incurred in connection with official travel. Employees who use the travel card for other purposes are subject to appropriate disciplinary action.
b. Bureaus and offices will conduct their program in accordance with the GSA SmartPay Contract, Federal Travel Regulation (FTR), and OMB Circular A-123, Appendix B, Improving the Management of Government Charge Card Programs, taking advantage of services, technology, and rebates offered.
5. RESPONSIBILITIES.
a. The Assistant Secretary for Management and Chief Financial Officer (CFO) has the primary responsibility for managing the Department’s Travel Card Program.
b. The Departmental Deputy CFO (Departmental DCFO) shall:
(1) Develop Treasury policy for the Travel Card Program.
(2) Monitor the activities of bureaus and major offices to ensure that the policies and standards in this directive are carried out.
(3) Serve as the liaison to the contractor and GSA, with the assistance of the contracting officer, on issues dealing with the program.
(4) Promote correct and efficient use of the card. Encourage standardization, centralization, and automation in the program throughout the Department.
c. Bureau Heads as it relates to their respective bureaus and offices shall:
(1) Establish internal procedures and controls for the operation of the Travel Card Program.
(a) Promote use of the travel card and monitor fraud, waste, and abuse, including reviewing and acting upon the activity, suspension, and cancellation reports supplied by the contractor.
(b) Monitor account delinquencies and follow up with delinquent cardholders as necessary. Electronic and web based reports should be used whenever possible to eliminate unnecessary paperwork.
(c) Copies of these procedures shall be sent to the Departmental Deputy CFO when initially published and revised.
(2) Obtain creditworthiness checks for all first-time IBT card applicants in accordance with OMB Circular A-123, Appendix B. Checks must be performed prior to IBT card issuance. If obtaining a credit score is not possible, the bureau may issue a “restricted” IBT card, but must conduct an alternative credit worthiness assessment. The bureau must review the applicant’s most recent Standard Form (SF) 85P, Section 22, Questionnaire for Public Trust Positions, or SF 86, Section 27, or use a similar vehicle containing the same type of questions as in the forms and sections noted. The information relied on must not be older than one year. A credit worthiness assessment must be conducted for restricted IBT cardholders before the cardholder is issued a renewed card.
(3) Prior to new IBT card issuance, ensure employees receive training on how the program operates, proper use of the cards, and responsibilities for safeguarding the cards and paying the charge card bills.
(a) This training should also cover the bureaus basic policy pertaining to travel.
(b) Cardholders must receive refresher training at least every 3 years.
(c) Copies of training certificates must be maintained in accordance with the applicable United States National Archives Records Administration (NARA), General Records Schedule.
(4) Ensure the Bureau Agency/Organization Program Coordinators (A/OPC) are trained and aware of their program responsibilities.
(a) A/OPCs must receive refresher training at least every 3 years.
(b) Copies of training certificates must be maintained in accordance with the applicable NARA, General Records Schedule.
(5) Work with the travel card contractor to determine and establish appropriate travel card spending limits and Merchant Category Code (MCC) blocks.
(6) Utilize Mandatory Salary Offset.
(a) Upon written request from the travel card contractor, assist in collecting undisputed delinquent amounts owed on employees IBT card accounts in accordance with the FTR and the GSA SmartPay Contract.
(b) Fifteen percent of employees’ disposable pay (or more if agreed to in writing by the employee) may be deducted for reimbursed undisputed delinquent amounts.
(c) The employee must be given due process in compliance with 41 CFR 301-54.100 prior to salary offset.
(d) Treasury assumes no liability for charges incurred on IBT card accounts.
(e) Request for waivers or exemptions from salary offset must be submitted to the Departmental DCFO’s office.
(7) Utilize Mandatory Split Disbursement. Split disbursement is the process of dividing a travel voucher reimbursement between the travel card contractor and traveler. The balance owed to each is sent directly to the appropriate party. Request for temporary waivers or exemptions from split disbursement must be submitted to the Departmental DCFO’s office.
(8) When an employee holding a card terminates employment, retrieve the IBT card from the employee as part of the checkout process, and promptly cancel the IBT card with the contractor. Remind employees that they are still responsible for outstanding charges and must pay directly in full by the billing due date.
(9) Ensure that cash limits for automated teller machine (ATM) access are commensurate with the employee’s assignment and limited to anticipated official travel cash transactions.
(10) Encourage establishment of centrally billed accounts (CBA) when cost effective. First preference should be given to reconcile and pay the CBA invoice within established prompt payment guidelines. If feasible, pay CBA invoice immediately upon receipt and then reconcile the payment “pay and chase method.” The “pay and chase method” is where the CBA invoice is reconciled after payment has been made. All bills must be paid by the billing due date.
(11) Establish procedures outlining appropriate disciplinary action for undisputed delinquencies and non-official use of the IBT card by employees.
(12) Establish designated approving officials. This official must authorize issuance of both IBT cards and CBA accounts.
d. Employees:
(1) Employees shall use the IBT card only for expenses incurred in connection with official travel. Possession of the IBT card does not exempt the employee from using Government contract carriers or travel management centers (TMC) when required. Use of the IBT card does not relieve the employee of the responsibility to employ prudent travel practices and to observe rules and regulations governing travel as set forth in the FTR and implementing Treasury and bureau regulations.
(2) Employees who have an IBT card are responsible for all charges and must pay directly in full by the billing due date. Timely payment is still required even if employees have not been reimbursed.
(3) Employees must comply with the bureau’s internal procedures, and terms and conditions of the Cardholder Agreement.
(4) If a bill contains a disputed charge, the employee must ensure that the incorrect charge is disputed correctly to stop the aging of the charge.
(5) Employees must submit a proper travel voucher within 5 working days after completion of the trip. Employees must be notified by the bureau of any error that would prevent timely payment within 7 days of the receipt of the travel voucher, and the reasons the voucher is not proper. If employees are not reimbursed within 30 calendar days after submitting a proper voucher to their designated approving office, the employees will receive a late payment fee in addition to the amount due, as long as the fee is $1.00 or greater. Late payment fees are calculated using the prevailing Prompt Payment Act Interest Rate beginning on the 31st day after submission of a proper travel claim and ending on the date on which payment is made, or a flat fee of not less than the prompt payment amount (may be based on a bureauwide average of travel claim payments). In addition to this fee, employees shall be paid an amount equivalent to any late payment charge that the travel card contractor would have been able to charge had the employee not paid the bill.
6. EXEMPTIONS.
a. GSA has exempted the following official travel expenses and/or classes of employees from the mandatory use of the travel card:
(1) Expenses incurred at a vendor that does not accept the travel card.
(2) Laundry/dry cleaning.
(3) Parking.
(4) Local transportation system.
(5) Taxi.
(6) Tips.
(7) Meals (when use of the travel card is impractical, e.g., group meals or when the Government contractor-issued travel card is not accepted).
(8) Phone calls (when a Government calling card is available for use in accordance with Departmental policy).
(9) An employee who has an application pending for the IBT card.
(10) Individuals traveling on invitational travel.
(11) New appointees.
(12) Relocation allowances, except for en-route travel and house hunting trip expenses.
(13) Employees who travel 5 times or less a year. Bureaus may enforce a stricter limit (e.g. 2 times or less a year).
Where feasible and otherwise permissible, the travel card may be used in the above situations.
b. The Bureau Head may request an exemption for use of the travel card in accordance with the FTR criteria. The request must be forwarded to the Departmental DCFO. The Departmental DCFO’s office will review to determine if the exemption will be granted. If the exemption is granted, the bureau must establish procedures authorizing other methods of payment.
7. REPORTING: All bureaus are required to submit a quarterly travel card report to the Departmental DCFO’s office. Bureaus will be notified by the Departmental DCFO’s office of the data required to be submitted and the report due date. Data submitted from the bureaus will be reviewed and consolidated into one report for submission by Treasury to the Office of Management and Budget (OMB).
8. PRIVACY ACT: Travel card records are covered by the Privacy Act System of Record GSA/GOVT-3, Travel Charge Card Program.
9. AUTHORITIES.
a. The Travel and Transportation Reform Act of 1998, Pub L. 105-264, 112 Stat. 2350.
b. 41 CFR parts 301-51, 301-52, 301-54, 301-70, 301-71, and 301-76.
c. GSA Smart Pay Contract.
d. OMB Circular A-123, Appendix B.
10. CANCELLATION. Treasury Directive 74-12, Use of Government Contractor-Issued Travel Charge Cards, dated October 20, 2000, is superseded.
11. OFFICE OF PRIMARY INTEREST. Office of Accounting and Internal Control, Office of the Deputy Chief Financial Officer, and the Office of the Assistant Secretary for Management and Chief Financial Officer.
/s/
Wesley T. Foster
Acting Assistant Secretary for Management