Particularly in heavily franchised industries, the dissemination of rudimentary information explaining proper invoicing could prove useful. From within the hotel industry alone, a large corporate client or government agency representing significant CONUS travel spend could face the prospect of working with hundreds of individual corporate structures due to the popularity of the franchise model. While most franchise operations are professionally run with sophisticated accounting systems in place, many still struggle to understand and implement fundamentally sound accounting practices. Basic literature and/or a single online resource highlighting the basic requirements of the different reconciliation processes would go a long way toward helping the brands guide these franchise locations to better operations, thereby resulting in an improved final step in the travel transaction.

Enhancing the ease of access to any such existing information also would prove beneficial to both the traveler and the vendor. Encouraging local workshops through Convention & Visitors Bureaus, Chambers of Commerce, Economic Development Commissions, Small Business Administrations, and other community-based organizations would help reach those smaller businesses and franchisees who might otherwise not have the resources to attend trade conferences to obtain similar information.

By: Mark Feggeler

http://www.fms.treas.gov/news/split_travel_disbursement_waiver.pdf

Split disbursement offers a higher level of convenience by eliminating the hassles of writing a personal check, the cost of a stamp, and the worry of getting the payment in by the due date.

The traveler remains responsible for timely payment of all charges to the Government travel charge card and should verify that payments have been credited properly on subsequent statements. The traveler should contact the charge card provider if payments were not credited as expected. Collection of any overpayments made to the credit card company is the responsibility of the traveler.

For my agency, these expenses are set up in the travel system to be paid to the individual credit card account via split disbursement:

• All airfare, lodging, and rental car reservations made in the travel system are automatically paid to the traveler’s credit card account (including TMC fees).
• All TAV fees for vouchers and local vouchers are automatically paid to the traveler’s credit card account.
• Non-mileage expenses (Optional: Travelers may change the method of reimbursement in the system if they want these expenses to be paid to their credit card account).
• Travelers may also request additional amounts be paid to their credit card account by indicating the amount in the appropriate field in the travel system. Travelers use this option for expenses that were charged to their credit card such as meals, parking, incidental expenses, etc.

Many travelers have access to their IBA on-line which allows them to easily calculate the split disbursement payment amounts in order to pay their account in full each month.

by Julie Gilchrist

“The contents of this message are mine personally and do not reflect any position of the Government or my agency.

Performance of a credit worthiness evaluation only applies to new card applicants and must be performed prior to issuing the card.  To meet this requirement our credit card provider obtains the credit score on all new applicants as part of the application process.  The new applicant must have a FICO credit score of 660 or greater to receive an “unrestricted” status; a score of less than 660 will result in the issuance of a “restricted” card.

Split disbursement offers travelers a higher level of convenience by sending their credit card payment directly to the credit card company. This eliminates the need to write a personal check, the cost of a stamp, and the worry of not getting the payment in by the due date.  Split disbursement works by splitting the voucher amount claimed into two payments.  The payment going to the credit card includes charged items such as airfare, hotel and rental car and the payment that goes to the traveler is for M&IE and out of pocket expenses such as parking and taxi.  Split disbursement is an effective tool to reduce delinquency and improve refunds paid to the agency.

Both of these requirements reduce the risk to the credit card company by ensuring that applicants have a proven record for paying their bills timely and ensuring that payments are made to the card companies at the same time the traveler is reimbursed for their trip.

by Diana Bonnell

Disclaimer: The contents of this message are mine personally and do not reflect any position of the Government or my agency.  Use of this equipment is consistent with the agency’s policy governing limited personal use.

I’ve seen this become a tense situation when several travelers were left without travel reimbursement for almost two months, despite their submission of a travel voucher.  At the time our ETS system was being interfaced with a new financial system.  There were technical problems between the two systems which halted voucher payments to a number of travelers.  Understandably we received a lot of hostility from travelers who were being contacted by the travel charge card provider to pay their bill.  The bank was unwilling to delay delinquency notification for these travelers.  Due to the policy that the Government must reimburse all travelers after the submission of their voucher within thirty days, many travelers were given a small percentage of interest for each day that their reimbursement was late.  In the end, most just paid their bill, or were just late with the payment.  While I’m not sure of the solution, I think that there must be a way to put less of a burden on the traveler.

By Kelvin Dawson

By Stacey Clark

SmartPay program cards can be issued to either individuals or agencies.  Individual Billed Accounts or IBA’s are issued to individuals for use during official travel.  These credit cards are issued in the travelers name with the traveler having full responsibility for payment and reconciliation.  A Centrally Billed Account (CBA) is issued to organizations and is generally used when a traveler does not have an IBA.  The account is usually only an account number and not an actual card.  The responsibility for reconciliation lies with the agency, with payments paid directly from the Government to the bank.    Most agencies require prior approval for use of the CBA.

The GSA SmartPay 2 program offers many benefits and expanded services to the Government.  Among the services offered are: built-in credit evaluations and enhanced security options.  The cards are numbered for vendor recognition and look different with new anti-misuse features.  The cards are accepted worldwide and have improved tracking capabilities.  Another advantage of the SmartPay program is the reporting capabilities.  The improved reporting capabilities assist agencies with budget planning, projected travel activity, and better control over misuse of the card.

By:  Chanda Garrett

The contents of this message are mine personally and do not reflect any position of the Government or my agency.

We can issue reimbursements in four ways: electronic funds transfer (EFT), individually billed accounts (IBA), centrally billed accounts (CBA) and checks.  The flexibility is necessary to accommodate different travel situations.

The following three scenarios show three travelers going on the same trip.  All of the travelers need a flight on Tuesday from Washington, DC to Atlanta, GA for a three day conference.  Each traveler will take a taxi to and from the airport and stay in the same Atlanta hotel, but their method of reimbursement will be different.

Traveler 1 will start to work at his government agency on Monday.  Since he needs to fly out on Tuesday morning, his agency does not have time to get him an individual government credit card (IBA).  Therefore they charged his airfare and hotel to their CBA.  Traveler 1 will pay for all of his meals and taxi cab expense.  When Traveler 1 vouchers for his trip, we will reimburse the agency’s CBA and the traveler’s bank account.  Both reimbursements will be made by EFT.

Traveler 2 has been issued a government credit card so his airfare and hotel will be charged to his IBA.  He will pay for some of his meals in cash and charge the rest of his meals and taxi cab to his government credit card.  When Traveler 2 vouchers for his trip, we will reimburse his IBA for his airfare and hotel.  The reimbursement for his meals and taxi cab expense will be based on how he enters them into the E-Gov Travel System.  He can have the travel system reimburse him for all of the meals and taxi cab and he will be responsible for paying the IBA for the meals and taxi or he can change the method of reimbursement on his voucher to have us pay for the specific meals he charged to his IBA and submit the balance to his bank account.  Both reimbursements will be made by EFT.

Traveler 3 is not a government employee.  He lives in a foreign country and is in the United States giving speeches.  He does not have a bank account in the United States.  Since his last speech was in Washington, the government agency agreed to pay for his flight from Washington, DC to Georgia to give a presentation at the conference.  The agency will charge the airfare and hotel to their CBA.  Traveler 3 will be responsible for paying his expenses on the trip and will be reimbursed after he signs a paper voucher.  Since his foreign bank is not affiliated with a bank in the United States, we will reimburse him by check for his meals and taxi.  The CBA method of reimbursement will be by EFT and the check will be mailed.

Why the flexibility in methods of reimbursement . . .  because we need them. 

 by Dean Cox 

“The views expressed are those of the author and do not reflect any position of the Government or my agency.”

The vendors also charge a fee on a transactional basis for the use of the eGov travel system. The Travel Authorization and Voucher (TAV) fee is assessed on the authorization and local voucher when the document is signed. When the corresponding voucher or local voucher is approved, the fee is charged to the individual government-issued charge card. If the individual government-issued card number is not available in the system, then the centrally billed account that was used to purchase the ticket is charged.

Some travelers find these fees to be cumbersome when reconciling their individual billed account (IBA) statements especially the TAV fee. The TMC fee normally appears on the IBA statements around the trip dates when other charges for the trip are being charged, such as hotel, rental car, meals, etc. However, the TAV fee is charged to the IBA when the traveler submits a voucher for approval and payment. If the traveler does not voucher timely, then it could cause issues when the traveler reconciles their IBA statement.

At my agency, we are currently working with the vendor on an enhancement to the system that will direct the payment of the TAV fee to the vendor rather than it being charged to the traveler. This enhancement will reduce issues that the travelers encounter when reconciling their IBA statement.

by Julie Gilchrist

“The contents of this message are mine personally and do not reflect any position of the Government or my agency.

We can issue reimbursements in four ways: electronic funds transfer (EFT), individually billed accounts (IBA), centrally billed accounts (CBA) and checks.  We also receive funds from travelers when they have been overpaid.  The flexibility is necessary to accommodate different travel situations.

The following scenarios show travelers going on the same trip.  All of the travelers need a flight on Tuesday from Washington, DC to Atlanta, GA for a three day conference.  Each traveler will take a taxi to and from the airport, stay in the same Atlanta hotel and eat the same meals, but their method of reimbursement will be different.

Traveler 1 will start to work at his government agency on Monday.  Since he needs to fly out on Tuesday morning, his agency does not have time to get him an individual government credit card (IBA).  Therefore they charged his airfare and hotel to their CBA.  Traveler 1 will pay for all of his meals and taxi cab expenses.  When Traveler 1 vouchers for his trip, we will reimburse the agency’s CBA and the traveler’s bank account.  Both reimbursements will be made by EFT.

Traveler 2 is a government employee who has been issued a government credit card.  Therefore, his airfare and hotel will be charged to his IBA.  He will pay for some of his meals in cash and charge the rest of his meals and taxi cab to his government credit card.  When Traveler 2 vouchers for his trip, we will reimburse his IBA for his airfare and hotel.  The reimbursement for his meals and taxi cab expenses will be based on how he enters them into the E-Gov Travel System.  For instance, he can have the travel system reimburse him for all of the meals and taxi expenses and then he would be responsible for paying the IBA for the meals and taxi.  He could also change the method of reimbursement on his voucher to have us pay for the specific meals he charged to his IBA and then submit the balance to his bank account.  Both reimbursements will be made by EFT.

Traveler 3 is a government employee.  Due to his personal credit history, he is not eligible to receive an individual government credit card.  His airfare and hotel are charged to the CBA so he doesn’t have any out of pocket expense, but he still needs cash for meals and the taxi to and from the airport.  Traveler 3 can request his agency give him an advance for 80% of the meals and incidental (M&IE) per diem and estimated taxi expenses he has on his authorization.  His agency will send an email to our Travel office requesting we add the advance to Traveler 3′s authorization.  Five days before Traveler 3′s trip, the requested advance will be deposited by EFT into his bank account.  When Traveler 3 returns from his trip and vouchers, he will be reimbursed by EFT for the amount of his M&IE and actual taxi expenses less the amount of the advance he had already received to cover the expenses.

Traveler 4 is not a government employee.  He lives in a foreign country and is in the United States giving speeches.  He does not have a bank account in the United States.  Since his last speech was in Washington, the government agency agreed to pay for his flight from Washington, DC to Georgia to give a presentation at the conference.  The agency will charge the airfare and hotel to their CBA.  Traveler 4 will be responsible for paying his expenses on the trip and will be reimbursed after he signs a paper voucher.  Since his foreign bank is not affiliated with a bank in the United States, we will reimburse him by check for his meals and taxi.  The CBA method of reimbursement will be by EFT and the check will be mailed.

Sometimes travelers forget to update their travel voucher to the amount they actually incur.  This can result in an underpayment or overpayment.  If the traveler needs to be reimbursed for an additional expense after he has voucher, then he can create a supplemental voucher.  Travel will reimburse the additional expense amount according to the method selected in the voucher.  If the traveler over estimated an expense and forgot to update the amount on the voucher, then he can send a check to his agency for the amount of the overpayment.

Why the flexibility in payment methods . . .  because we need them.

By: Dean Ann Cox

“The views expressed are those of the author and do not reflect any position of the Government or my agency.”

There are many benefits of the Government Rental Car Program.  One of the most significant benefits to government personnel on official business is the collision damage waiver (CDW) insurance.  This insurance is included at no extra charge.  Besides attractive rates, other benefits include unlimited mileage, age restriction reduced from 25 to 18, and much more.

Rental cars can be reserved using the E-Gov Travel System (ETS) or by contacting the Travel Management Center (TMC).  The preferred method of payment is the traveler’s individually billed government charge card (IBA).  If the traveler does not have a government charge card, the car rental company will accept cash, personal check, or a personal credit card belonging to the traveler.

If the traveler is combining personal travel with official government business, the rental car company needs to be notified so the contract can be written accordingly.  The Federal Travel Regulation (FTR) contains guidelines for travelers to follow concerning personal use of a vehicle that was rented for the purpose of conducting official government business.  The FTR gives instructions concerning any additional costs resulting from the unauthorized use of a rental vehicle is the responsibility of the traveler.

Whether renting a car for business or pleasure, the following guidelines should be followed:

1. Always treat a rental car as if it were your personal vehicle.
2. Return the car to the rental company with a full tank of gas.
3. Review the receipt before leaving the drop-off site.  If there are questionable charges on the receipt, it is best to resolve the issue in person rather than trying to deal with it later by telephone.

By: Sue Burton

The contents of this message are mine personally and do not reflect any position of the Government or my agency.