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CitiBank Travel Card Program

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					CitiBank Travel Card
      Program
       March 2011
  CitiBank Travel Card Program
• State of Texas Comptroller has awarded a
  contract for Procurement and Corporate
  Travel Charge Card services to Citibank.
• The initial term of contract is through
  August 31, 2013, with three one-year
  renewal options.
  CitiBank Travel Card Program
• This program provides a convenient means
  of charging travel-related expenses
  incurred while conducting official
  University business.
• Recommended changes have been
  approved by CMO
   CitiBank Travel Card Program
• Travel “Credit” Card Types:
   – Individual Billed Account (IBA)
   – Central Bill Account (CBA)
   – Corporate Liability Individual Billed Account
     (CLIBA)

Note: Currently, the UTSA Procurement card (ProCard)
      program is separate from the Travel card program.
 Individual Billed Account (IBA)
• Cardholder responsible for protection &
  proper use of the card & timely payment.
• The employee bears responsibility for
  account repayment in full.
  – Card is issued with the expectation it is used for official
    business travel only
  – Issuance is based on individual’s personal credit history
  – Not a revolving credit card; any amounts not paid within
    60 days are suspended and subject to finance charges
  Individual Billed Account (IBA)
• 319 UTSA employees have IBA cards issued
  from JP Morgan Chase Bank

• Recommendation: that UTSA no longer
  administer this program
  – There is limited value-added to UTSA
     • Many universities that issue these cards do so
       because they do not provide travel advances.
  Individual Billed Account (IBA)
• We will notify affected employees of the
  date when the current Chase IBA card will
  no longer be valid.
  – After August 31, 2011, all cards will be deactivated
   Central Bill Account (CBA)
• Payment is guaranteed by UTSA and
  issued in the name of a department
  – Card issuance was done without establishing
    explicit responsibilities, e.g. on time
    payment in full
• A central bill account administered by
  DTS was also established for
  departments who did not have a CBA.
    Central Bill Account (CBA)
• This program has many problems:
  – Originally implemented for airfare only; some
    cards were later opened up for other charges
     • Since 2003 when the program began, we have
       significantly increased the number of cards
        – unpaid charges have also increased significantly
  – Bank considers all CBA’s issued to UTSA
    departments to be one account
     • Reporting is limited
     • All data is consolidated
     • Standard reports for monitoring activity such as
       ‘aging’ or ‘spending history’ are unavailable
      Central Bill Account (CBA)
• This program has many problems:
  – Difficult to reconcile:
     • Charges are consolidated on one single statement
       for the entire university and not tied to authorized
       travelers
     • Memo statements are provided to department with
       only current charges.
        – Doesn’t show total amount outstanding
     • Manual process
     • Full payment is frequently late because of
       departmental delays for many reasons
   Central Bill Account (CBA)
• Recommendation:
  Discontinue all CBA cards and issue
  CLIBA cards upon receipt of authorized
  application packets
 Corporate Liability Individual
    Billed Account (CLIBA)
• Payment is guaranteed by UTSA but
  issued in the name of an individual, not
  department
• Credit limit will be based on estimated
  monthly requirements as approved by
  Financial Affairs
 Corporate Liability Individual
    Billed Account (CLIBA)
• Department can have one or many CLIBA
  cards but an individual (typically the
  department head) will be responsible and
  required to sign a cardholder agreement:
  – Individual will agree that each month’s charges will be
    paid in full unless formally disputed through vendor
    established process
  – Account on file for the card will be charged for
    amount due to assure timely payment
 Corporate Liability Individual Billed
         Accounts (CLIBA)
• Benefits:
  – Individual will receive separate monthly statement
     • Allows future opportunity to automate payment process
  – Similar to CBA, university guarantees payment and
    assumes liability
  – Eliminates reconciliation issues experienced with
    CBA
  – Individual can contact Citibank directly while
    traveling
     • Declined card             Currently issues must be
                                  resolved through DTS!
     • Disputed amounts
   Proposed Features of UTSA
        CLIBA Program

• General CLIBA Card –used for Hotel, Airfare,
 Transportation, and Conference Registration
  CLIBA Implementation Activities
• Timeline is in flux
  – CitiBank is inundated with other agencies
  – Have just been learning details – not all are well
    understood
  – State wanted the transition to be completed by
    2/28/2011
     • Due to delays by CitiBank, we have more time to
       implement. Extended to 8/31/11 but we will convert
       before that time.
CLIBA Implementation Activities
We will:
• Complete Cardholder agreement form,
  internal application, guideline, FAQ
  documents
• Schedule a launch meeting & begin
  transitioning from JP Morgan/Chase to
  Citibank
• Develop a training class on payment
  requirements & online access to Citibank
            Travel Advances
• Processing checks is costly and inefficient
  – Discussion that the state will mandate ACH and
    direct deposit for all employee transactions
• It is recommended (CMO approved) that
  in the future all travel advances be issued
  only as:
  – Direct Deposit to the employee’s bank
    account, or
  – CitiBank Travel Advance Debit Card
              CitiBank Travel
              Advance Card
• Features:
  – Card is activated with credit limit established
    from an approved travel advance form
  – Issued in traveler’s name with a fixed activity
    length and appropriate MCC codes
  – Statement is received, reconciled and paid
  – Card can be refreshed for additional future
    authorized travel for an individual
              CitiBank Travel
              Advance Card
• Benefits:
  – Traveler will not have to bear out of pocket
    expense
  – Alternative to CLIBA Card for employee who
    does not frequently travel and or does not
    want to use his/her own credit card
  – Increased efficiency and control
             Travel Advances
Recommendation:
  After reasonable notification and direct
  deposit set-up campaign, we will:
  1. Transition to Travel Advance Cards as the
     preferred method of providing travel advances
     (when practical)
    •   Requires guideline, training class and form changes
  2. No longer issue checks for travel advances
    •   will allow direct deposit to employee’s bank account
        when travel advance card is impractical
    •   Exceptions for hardship or unique circumstances

				
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