The reconciliation process for agency centrally billed accounts (CBA) varies widely across government. Agencies have developed a best practice for what currently works for them. Some agencies have an all manual process and use nothing but paper. Some use electronic reports provided by their Travel Management Center (TMC) and their charge card vendor. Others make use of a CBA reconciliation module within their eTravel system (ETS). I don’t believe there is an agency that is totally electronic in the reconciliation and payment process as there is probably a manual interruption somewhere in the process.
How many individuals or departments are involved in the reconciliation and payment process? In some agencies, the reconciliation consists of matching a transaction on the CBA invoice to a travel order by the Agency/Organization Program Coordinator (A/OPC) and sent to an accounting department for payment. The accounting department may enter the transaction data into an accounting system to generate the payment. Other agencies may have the complete process done in the charge card arena. Some agencies may have very few transactions on the CBA invoice while others will have several hundred transactions.
The “Pay and Chase” method of payment is also used by some agencies. This involves paying the invoice immediately upon receipt and following up later with the reconciliation. A problem that can occur is when an agency becomes lax in the reconciliation because the payment to the charge card vendor has been completed. Travel orders could have been cancelled or changed and an agency could lose track of unused or partially used tickets. Reconciling timely can avoid the possibility of spending hours researching problems later.
An Online Booking Engine (OBE) is embedded in the ETS. The ETS will also contain the agency’s CBA number(s). CBA can be selected as the method of payment for common carrier arrangements. While the traveler cannot see the card number, it is transmitted to the TMC to use for the transaction. Problems occur when travel arrangements are booked outside the ETS with the CBA and the correct method of reimbursement (MOR) is not selected in the transportation module of the system. The traveler or document preparer might select a MOR that would send the reimbursement to the individual travel card or directly to the traveler. In these cases, the traveler owes the money to the agency and a billing document would need to be established.
The inappropriate MOR could happen when hotel arrangements are made outside the ETS and charged to the CBA. In the ETS, the lodging expenses generally default to the individual charge card. Travelers need to be reminded to change the MOR to CBA or the traveler will end up owing the agency the funds for the lodging.
While a travel order is an estimate of expenses, often times the amount obligated for the common carrier is substantially less than the true costs. Also, the TMC fee is often left off the order. Agencies could experience insufficient funds when the voucher is processed against the travel order.
Several agencies have multiple CBAs and the organizational structure of the accounting system may require a dispute. Upon occasion, a legitimate transaction (debit or credit) might be placed on the wrong CBA. Limitations in accounting systems would result in the charge being disputed and then placed on the correct CBA.
In the case of a cancelled travel order where the CBA was used to book the common carrier, the charge could appear on the invoice. A credit would be expected. Individuals with access to the electronic CBA statements could see the credit on the interim statement.
It is common knowledge that travel orders must be approved prior to beginning travel. In reality, we know that doesn’t always happen. Travel orders that have been prepared using the embedded TMC will not have reservations ticketed if the order has not been approved. Once a travel order is approved, it is interfaced or manually entered into an accounting system. The obligation has been appropriately processed and funds set aside for the trip. Often times, a travel order will be started in the ETS but will not be approved by the time the CBA invoice arrives for reconciliation and payment. This is generally the case where common carrier arrangements are made outside of the ETS. When the order is not approved, an obligation is not created and can result in a funding issue.
A common misconception is that the traveler does not have to provide receipts if charges are put on the CBA. Regardless of the MOR, our agency requires receipts for lodging, common carrier, rental cars, and any other necessary expense in excess of $75.
Currently, our agency uses a mixture of electronic reports, Excel spreadsheets, and manual entry into the accounting system. In an attempt to do away with the manual entry into the accounting system, a data loader was provided by the accounting department. However, it only took the data to be off by one space somewhere in the loader to bomb in the system. It took longer to find that one space than to manually enter the data.
Our charge card staff is very diligent in reconciling and paying the CBAs. They always meet the prompt pay deadline. I hope in time we will come upon a much more efficient and less labor intensive process. Meanwhile, the search for that better “best practice” continues.
By Pam Enlow, CGTP
The contents of this message are mine personally and do not reflect any position of the Government or my agency.