Improper Payments - PowerPoint

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					OMB Update on Charge Card
Management


Kim Farington, CPA
Susan Truslow
U.S. Office of Management and Budget

12th Annual Smart Pay Training Conference
August 11-13, 2010
  Agenda
• Office of Federal Procurement Policy

• Office of Federal Financial Management

• TIPRA

• Charge Card Working Group




                                           2
    Organization Hierarchy

Executive Office of the President (EOP)

  Office of Management and Budget (OMB)



 Office of Federal     Office of Federal
      Financial        Procurement Policy
Management (OFFM)            (OFPP)

                                            3
               OFPP--Scope
•   $550 billion obligated in FY 2009
•   8+ million contract actions
•   26+ million purchase card actions
•   112 Departments and agencies
•   3,300 contracting offices
•   30,000 contracting officers
•   300,000 purchase card holders


                                        4
                 OFPP Roles
•   Lead the Chief Acquisition Officers Council
•   Direct the Federal Acquisition Institute
•   Chair the Federal Acquisition Regulatory Council
•   Chair the Cost Accounting Standards Board
•   Direct activities supporting the Federal
    Procurement Data System and the IAE




                                                   5
    Presidential Memorandum
• Acquisition Savings Plans
  – Agencies must save 3.5% of baseline contract
    spending in FY 2010 and a further 3.5% in FY 2011
• High Risk Contracting
  – Agencies must reduce by 10% the dollars obligated
    through non-competitive, one-bid, cost-
    reimbursement, and T&M/LH contracts
• Multi-Sector Workforce Pilots
  – Agencies must analyze their reliance on contractors
• Acquisition Workforce
  – Civilian agencies must increase the capability and
    capacity of their acquisition workforce

                                                          6
          Other OFPP Goals

• Use Strategic Sourcing Leverage the buying
  power of the Federal government
• FSSI Office Supplies solution
  www.gsa.gov/fssiofficesupplies
• 15 BPA Holders
• POS Feature – use your GSA SmartPay card and
  automatically get the negotiated BPA price
  – Save $4M/annually
• POC: Michel Kareis michel.kareis@gsa.gov
• Training POC: judy.poskanzer@gsa.gov

                                                 7
                      OFFM Scope

• The Office of Federal Financial Management (OFFM)
   • Improves financial management and systems to
     reduce improper payments
   • Improves grants management
   • “Right-size” Federal real property
   • Coordinates the activities of the Chief Financial
     Officers and Senior Real Property Officers




                                                         8
              Tax Increase Prevention and
               Reconciliation Act (TIPRA)
•   Requires a “tax” withholding at a rate of 3% on all government
    payments for products and services over $10,000 made by the
    federal government, state governments, and local governments

       i.e. - Invoice for $100, government only pays $97

       The 3% withheld is allocated to the company’s or individual’s tax
        liability

•   Impacts payments under government contracts as well as Medicare
    payments, Farm payments, and grants to for-profit companies

•   Applies to all payments starting in 2012 (change made from 2011 to
    2012 in P. L. 111-5, the Economic Stimulus bill)

                                                                         9
                      TIPRA (cont’d)

Reasons for TIPRA:

 In 2001, IRS estimated tax gap to be $345 billion

 GAO report: Abuse of tax system by contractors
  ◦ GSA contractors owe $1.4 billion in taxes
  ◦ DOD and civilian contractors owe $6 billion in taxes

 Expected to increase revenue by $7 billion between 2011-
  2015 (revenue offset provision)



                                                           10
       TIPRA (cont’d)


Three working groups

   1. Business Process Changes
   2. Systems Alternatives
   3. Charge Cards




                                 11
     TIPRA Charge Card Working Group
Role: Propose policy and procedures to address TIPRA requirements

• Led by staff from GSA’s Office of Charge Card Management

• Plans for moving forward:
    • Meet weekly to resolve issues raised related to charge cards
    • FAR Cases may be required to address some payment issues
    • Make recommendations to Steering Committee and
      Treasury

• Communication of efforts on OMB MAX Portal
   • max.omb.gov
   • “Financial Management” link => “TIPRA” link
                                                                     12
Blank




        Questions?
              Kim Farington
        kfarington@omb.eop.gov

          Susan M.M. Truslow
        struslow@omb.eop.gov

				
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