Briefing Template Governmentwide Commercial Purchase Card SemiAnnual Head

Briefing Template Governmentwide Commercial Purchase Card Semi-Annual Head of Activity (HA) Review • This slide deck is a template to use during the Semi-Annual HA (SAHA) Review process, when preparing for and briefing HAs at all levels. DPC recommends using it as a Best Practice as part of your SAHA Review process, providing a framework that will ease your workload and promote consistency across HA briefings. You may tailor it to meet your needs. • Red text is used to call attention to content that you will need to update. • We recommend bringing the following documents to the SAHA Review: – Semi-Annual HA Review Report for the current period – Findings and Determinations Report – This slide deck 1

GOVERNMENTWIDE COMMERCIAL PURCHASE CARD SEMI-ANNUAL HEAD OF ACTIVITY REVIEW COMPONENT NAME REVIEW PERIOD

AGENDA 1. 2. 3. 4. 5. Smart. Pay® 3 Mandatory Program Oversight Procedures GPC Program Dashboard Backlog Analysis (Delete this item if you do not have a backlog) Semi-Annual HA Report, Best Practices / Lessons Learned, and Next Steps Appendix A. B. C. D. E. Monthly Spend and Transaction Volume Monthly Refunds (Delete this item if it is not applicable for you) Monthly DM Cases Billing Cycle and Reporting Period Dates Glossary For Official Use Only 3

SP 3 MANDATORY PROGRAM OVERSIGHT PROCEDURES Daily DM Case Reviews by A/BO and A/OPC Identify and prevent improper purchases. Monthly Reviews by A/OPC, OA/OPC, and CPM Promote and measure compliance with internal controls. Semi-Annual HA Review Ensure leadership insight and enable decision-making. Process • DM tool identifies transactions at risk of being noncompliant. • Act to close every DM case. Product • Closed cases, documentation of corrective action Timing • A/BO and A/OPC complete DM Case Reviews throughout the cycle: o Should be done within 10 calendar days of billing cycle end date o Must be done within 30 calendar days of billing cycle end date • A/OPC monitors completion of A/BO DM Case Reviews o A/OPC can suspend Master Account (MA) within 30 calendar days of billing cycle end date if all cases are not adjudicated timely. Process • Validate that 100% of DM cases open during the billing cycle are closed/deferred. • Perform summary assessment of transactions not flagged by DM. Product • Monthly A/OPC Review Report Timing • Monthly Reviews are completed by: o A/OPC within 40 calendar days of billing cycle end date o OA/OPCs perform spot checks within 50 calendar days of billing cycle end date o CPM within 55 calendar days of billing cycle end date • MA suspension if non-deferred DM cases are not closed timely: o A/OPC can suspend within 30 calendar days of billing cycle end date o OA/OPC Level 1 can suspend within 40 calendar days of billing cycle end date o OA/OPC Level 2 can suspend within 50 calendar days of billing cycle end date o CPM shall suspend within 55 calendar days of billing cycle end date Process • HAs at each level receive program briefings from A/OPCs, OA/OPCs, or CPMs and sign off. • A/OPCs, OA/OPCs, or CPMs affirm completion. • CPMs provide review results (SAHA Report run at HL 2) to OUSD(A&S)/DPC/Ce. B (PMO). Product • Signed SAHA Review Report Timing • HA reviews are due to CPM by June 15 / Dec. 15. • CPM briefing to Component HA is due by July 15 / Jan. 15; results are due to PMO by the same date. 4

PERIOD GPC PROGRAM STATISTICS: DASHBOARD Number of Data Mining Cases Closed for Period Volume of Transactions and Total Spend for Period 80 000 70 000 60 000 50 000 40 000 30 000 20 000 10 000 0 $80 000 $70 000 $60 000 $50 000 $40 000 $30 000 $20 000 $10 000 $0 Oct Nov Dec Jan Volume of Transactions Feb Mar Total Spend 10 000 9 000 8 000 7 000 6 000 5 000 4 000 3 000 2 000 1 000 0 Closed with No Determination* Closed with Determination* Charts are for illustrative purposes only. Replace with charts for your Component for the period. Oct Nov Dec Jan Feb Mar 6 171 8 196 7 184 7 345 9 375 8 605 325 523 299 469 493 359 *See Slide 9 for details Total Refunds for Period If refunds are not applicable for you, delete this graph. Total Delinquencies** for Period $700 000 $14 000 $600 000 $12 000 $500 000 $10 000 $400 000 $8 000 $300 000 $6 000 $200 000 $4 000 $100 000 $2 000 $0 $0 Oct Nov Dec Jan Feb Mar Oct Nov Dec Jan **See Glossary for definition of delinquency Feb Mar 5

PERIOD GPC PROGRAM STATISTICS: DELINQUENCIES Balance at Cycle Current Past Due # Past Due Accounts $83, 617, 586 $67, 861, 632 $15, 755, 954 507 Total Delinquencies Total Prompt Payment Interest Penalty Paid XXXX Balance at Cycle 19% 81% Current $67, 861, 632 Past Due $15, 755, 954 Charts are for illustrative purposes only. Replace with charts for your Component for the period. Past Due Analysis 100, 00% 90, 00% 80, 00% 70, 00% 60, 00% 50, 00% 40, 00% 30, 00% 20, 00% 10, 00% 1 -30 Days 31 -60 Days 61 -90 Days Past Due Accounts Per Bucket 91 -120 121 -150 151 -180 Days 180+ Days Past Due Value Per Bucket 6

PERIOD GPC PROGRAM STATISTICS: DASHBOARD Item Average Percent for the Semi-Annual Period Percent of Cardholders to approve their monthly billing statement within 3 business days of the billing cycle end date XX Percent of Certifying Officers to certify their Master Account Billing Statement within 5 business days of the billing cycle end date XX Charts are for illustrative purposes only. Replace with charts for your Component for the period. Note: • The Account Approval Status Report in Access Online provides the data requested in the table above. For directions on how to run the Report, view the Notes Page for this slide. To view the Notes Page, select View and then Notes Page from the Power. Point ribbon at the top of the screen. • It is strongly recommended as a best practice to calculate this data monthly. It will greatly ease your workload at the Semi-Annual Review. Discussion of What the Data Shows • List talking points for discussion 7

PERIOD GPC PROGRAM STATISTICS: DASHBOARD (CONTINUED) Impact of Tier 2 Tailoring on DM Cases Flagged by the System 12 000 10 000 8 000 6 000 4 000 2 000 0 60 000 50 000 40 000 30 000 20 000 10 000 Oct Running Total of DM Cases Flagged 7 471 by the System for Period DM Cases Auto Closed by Tier Two 975 Tailoring DM Cases Remaining Open After 6 496 Tier Two Tailoring Nov Dec Jan Feb Mar 17 816 26 437 35 633 47 128 57 473 1 626 1 138 1 382 1 626 1 382 8 719 7 483 7 814 9 869 8 963 Running Total DM Cases Flagged Data Mining Cases Flagged by the System 14% 0 DM Cases Flagged by the System that Remain Open After Tier 2 Tailoring Manually Created DM Cases Randomly Reopened After Tier Two Tailoring Total # % DM Cases Remaining Open After Tier 2 Tailoring 86% *Effective Number of DM Cases for the Period Sources of DM Cases for the Period Source % DM Cases Auto Closed by Tier 2 Tailoring Charts are for illustrative purposes only. Replace with charts for your Component for the period. % 49, 344 99. 55% 101 . 20% 10 000 *Effective Number of DM Cases = Number of Cases Flagged by the System - DM Cases Auto Closed by Tier 2 Tailoring + Tier 2 Cases Randomly Reopened + Manually Created DM Cases 8 000 6 000 4 000 124 . 25% 49, 569 100% 2 000 0 Oct Nov Dec Jan Feb Mar 8

PERIOD DM CASES BY DISCIPLINARY CATEGORY Period OMB Disciplinary Category # $ % Abuse (Intentional) Misuse (Unintentional) Potential Internal Fraud (Malicious Intent) Administrative Discrepancy (Unintentional) External Fraud (Malicious Intent) No Disciplinary Category Determination Necessary (Case Closed) Total Note: Delinquencies are a type of disciplinary category determination. However, they are not associated with DM cases because they are identified at the Managing Account level, not the transaction level. When the capability exists, they will be reported within the A/OPC Monthly and Semi-Annual Head of Activity Review reports. 9

PERIOD GPC PROGRAM STATISTICS: DASHBOARD Open and Closed Backlog* Cases by Month Since Smart. Pay 3 Inception 16 000 14 000 12 000 10 000 8 000 6 000 4 000 2 000 0 Total Number of Cases in Backlog Open Backlog Cases Closed Backlog Cases Dec 18 12 895 451 12 444 Jan 19 15 930 558 15 372 Feb 19 12 137 425 11 712 Mar 19 14 412 504 13 908 Apr 19 8 344 292 8 052 May 19 9 861 345 9 516 Jun 19 8 723 305 8 418 Jul 19 9 482 332 9 150 Aug 19 6 827 239 6 588 Sep 19 9 094 310 8 784 Oct 19 10 620 372 10 248 Proportion of Open and Closed Backlog Cases Since Smart. Pay 3 Inception 3% Open Backlog Cases Closed Backlog Cases Nov 19 7 575 265 7 310 Dec 19 8 344 292 8 052 Jan 20 6 827 239 6 588 Feb 20 4 551 159 4 392 Mar 20 6 068 212 5 856 Have you finished processing the Backlog? If so, this slide may not be needed. If not, present statistics on the Backlog and your plan to finish processing it. 97% *See Glossary for definition of backlog 10

PERIOD SEMI-ANNUAL HA REVIEW REPORT This slide is a placeholder. Review the Semi-Annual HA Review Report with your HA. Bring the Semi-Annual HA Review Report and the Findings and Determinations Report for review during the meeting. Semi-Annual Head of Activity Report Review 11

PERIOD SEMI-ANNUAL HA REVIEW REPORT: BEST PRACTICES / LESSONS LEARNED Best Practices Lessons Learned Provide bullet points on best practices and lessons learned from this period that will be taken forward into the next period. Note: You can include these bullet points in the User Notes field on the Semi. Annual Head of Activity Review Report and on the Monthly A/OPC Review Report. 12

PERIOD SEMI-ANNUAL HA REVIEW REPORT: NEXT STEPS List specific issues encountered and how they will be resolved going forward. Issue Corrective Action 13

PERIOD SEMI-ANNUAL HA REPORT: NEXT STEPS (CONTINUED) Position the star next to your current step in the process. Step 1. A/OPC • Brief HA. • Obtain wet signature on Semi-Annual HA Review Report. • Certify completion in IOD. • Provide signed report and documents to next level. Step 2. OA/OPC • Review results from A/OPCs and O/AOPCs in tiers below with HA. • Obtain wet signature on Semi-Annual HA Review Report. • Certify completion in IOD. • Provide signed report and documents to next level. Step 3. CPM • Receive reports and documents from tiers below by June 15 / Dec. 15. • Brief Component HA by July 15 / Jan. 15. • Obtain Component HA Endorsement on the Semi-Annual HA Review Report. • Provide review results to PMO by July 15 / Jan. 15. 14

Appendix • Comparison of Current Semi-Annual Period Versus Fiscal Year • Billing Cycle and Reporting Period Dates • Glossary 15

PERIOD MONTHLY SPEND AND TRANSACTION VOLUME $120 Total Spend in First Semi-Annual Period for FYXX Versus FYXY $110 Volume of Transactions in First Semi. Annual Period for FYXX Versus FYXY Thousands Millions Note: Use these charts for the first semi-annual period each fiscal year, when you have data for that period for the current fiscal year plus data for both periods in the previous fiscal year. Delete the set of charts that you are not using. $100 $90 110 100 90 80 $80 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep FYXX FYXY $120 Volume of Transactions FYXX and FYXY Total Spend FYXX and FYXY $110 Thousands Millions Note: Use these charts for the second semi-annual period each fiscal year, when you have data for both periods in the current fiscal year and in the previous fiscal year. Delete the set of charts that you are not using. $100 $90 110 100 Charts are for illustrative purposes only to compare current SAHA cycle to past fiscal year(s). Replace with charts for your Component for the period. Note: FYXX represents the current fiscal year and FYXY represents the previous fiscal year. 90 80 $80 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep FYXX FYXY 16

PERIOD MONTHLY REFUNDS Month October November December January February March FYXX Refunds $ Percent of Total Spend Current FY FYXY Refunds $ Percent of Total Spend Previous FY If refunds are not applicable for you, please delete this slide. Note: FYXX represents the current fiscal year and FYXY represents the previous fiscal year. First Semi-Annual Period Total April May For the first semiannual period of the current fiscal year, fill these cells with N/A. June July August September Second Semi-Annual Period Total FY Total 17

PERIOD MONTHLY DM CASES FYXX Month October November December # Spend # Closed with Determination FYXY # Closed with No Determination # Spend # Closed with Determination Note: FYXX represents # Closed with the current fiscal year and No Determination FYXY represents the previous fiscal year. January February March Total April For the first semiannual period of the current fiscal year, fill these cells with N/A. May June July August September Total FY Total 18

BILLING CYCLE AND REPORTING PERIOD DATES Term Dates Billing Cycle March 20 – September 19 September 20 – March 19 Reporting Period October – March April – September 19

GLOSSARY Abbreviation Term Description A/BO Approving/Billing Official Program Officials responsible for reviewing and approving Governmentwide Purchase Card Managing Account (MA) Billing Statements (GPC Bank Invoices) and transaction supporting data for compliance with applicable Acquisition Policies. Individuals serving as A/BOs in every Do. D Component, except the Air Force and a handful of sites authorized to use pay and confirm procedures, are required to have both an A/BO and Certifying Officer Appointment. A/OPC Agency/Organization Program Coordinator Program official responsible for day-to-day management and oversight of Cardholder and Managing Accounts (also called Billing Accounts). The A/OPC is an individual who has responsibility for implementing, maintaining, monitoring, and overseeing GPC programs under their cognizance in accordance with governing statute, regulations, policies, and procedures. Backlog As a result of both US Bank hierarchy and system interface challenges, numerous Service transactions were not subject to data mining (DM) in a timely manner. This resulted in a case “backlog” (i. e. , cases that were not referred to a GPC program official for action in a timely manner). Cases that were not referred in a timely manner at the initiation of Smart. Pay® (SP) 3 due to technical issues, sometimes referred to as “backlog cases” are considered aged cases. CPM Component Program Manager GPC Lead(s) for each Defense Component (Service, Defense Agency/Activity). They are Level 2 s in the PIEE Hierarchy. DM Data Mining An automated process used to scan databases to detect patterns, trends, and/or anomalies for use in risk management, spend patterns, and other areas of analysis. 20

GLOSSARY (CONTINUED) Abbreviation Term Description Delinquency An undisputed charge card account balance that is more than 61 days past the statement date. GPC Governmentwide The charge card account established with the issuing bank that enables properly authorized Commercial Purchase Government personnel to buy and pay for supplies and services in support of official Government Card business. HA Head of Activity The HA is the senior-most person in an organization that employs Agency/Organization Program Managers (A/OPCs). The HA can delegate his or her GPC oversight functions no lower than the Commanding Officer’s deputy, the Chief of Contracts or Head of Procurement, or the Chief of Contracts’ deputy or Head of Procurement’s deputy. Each Component must determine which of its roles will serve as the HA and document that determination in Component/local procedures. If a Defense Agency or Activity has been designated Head of Contracting Activity (HCA) authority as defined in FAR Part 2, their HA is the HCA or the HCA's deputy, who must be an individual in a management position not to exceed one level below the HCA. Under no circumstances can a CPM serve as the HA. IOD Insights on Demand Insights On Demand (IOD) by Oversight is an artificial intelligence DM platform that automatically analyzes Do. D’s GPC data to identify and disposition high-risk transactions (i. e. , transactions that are at risk of nonconformity with existing regulations, policies, and/or procedures), and conduct oversight reporting. 21

GLOSSARY (CONTINUED) Abbreviation Term Description OA/OPC Oversight Agency/Organization Program Coordinator Primary and Alternate A/OPCs with responsibility for managing / overseeing other A/OPCs. PMO GPC Do. D Program Management Office of the Undersecretary of Defense (OUSD) / Acquisition and Sustainment (A&S) / Defense Pricing and Contracting (DPC) / Contracting e-Business (Ce. B). The PIEE Hierarchy Level 1. SP 3 General Services Administration Smart. Pay® 3 A GSA program that provides users with card-based tools to simplify procuring needs in three operational areas. The fleet card allows users to efficiently fuel and maintain vehicles, boats, planes, or equipment. The travel card allows users to purchase common carrier transportation, car rentals, lodging, and meals for official travel and travel-related expenses. The purchase card enables users to make day-to-day purchases of supplies and services to satisfy official business needs. The SP 3 contract transactional period of performance commenced November 30, 2018 and has base and option periods comprising a possible 13 -year period of performance through November 29, 2031. 22