The GSA SmartPay master contracts contain provisions for disputing any billing discrepancies after payment of the invoices, as long as the charge card contractor is notified within 90 calendar days of the transaction date. The designated billing office pays the consolidated invoice in a timely manner even if all statements of accounts are not received (see subsection 4535.10). The designated billing office should make adjustments to the consolidated invoice, based on the statement of accounts received. The cardholder must forward this report to certifying officials within a time frame that allows them to process and pay the consolidated invoice within the Prompt Payment Act deadline. Summary level information reflecting all relevant (consolidated) federal entity cardholder transactions is forwarded to the certifying official, within the designated billing office, to ensure that the federal government ultimately pays only for valid charges that are consistent with the terms of the applicable GSA SmartPay master contracts. The cardholder reviews and reconciles the statement of account received at the end of each billing cycle with receipts and supporting documentation, and the approving official verifies reconciled transaction records to ensure that all purchases were proper. The government paying federal entity then reimburses the charge card contractor in accordance with the terms and conditions of the GSA SmartPay master contracts and the Prompt Payment Act. When using a government purchase card the vendor providing the goods or service to the federal entity is paid by the charge card contractor. Section 4535-Review and Approval of Billing Statement for Payment
Use refunds for any legitimate purchase by the appropriation or account to which they were returned, or as otherwise authorized by statute. Unless specific statutory authority exists that allows refunds to be used for other purposes, refunds must be returned to the appropriation or account from which the purchase was made that generated the refund. A-123, Appendix B, Chapter 7: Refund Management. Federal entities must take steps to maximize sales and productivity refunds in accordance with OMB Circular No. Refund minimums are included in the current GSA SmartPay master contracts, and federal entity specific refunds are stated in each federal entity specific task order. Sales refunds are based on the dollar or “spend” volume during a specified time period, and productivity refunds are based on the timeliness and/or frequency of payments to the charge card contractor.
Federal entity policies should address the following areas to ensure that clear guidance is provided to the Agency/Organization Program Coordinator (A/OPC)s, Approving Official (AO)s, and cardholders: For more information on the micro-purchase threshold, see the FAR Subpart 13.2.įor terms and definitions related to this chapter, please view the TFM Glossary.Įach federal entity develops its own internal procedures for using the purchase card. While the government purchase card is the preferred method for making purchases at or below the micro-purchase threshold, federal entities should not limit the use of the government-wide commercial purchase card to micro-purchases. Federal entity procedures should encourage the use of purchase cards by contracting officers for greater dollar amounts, to place orders and to pay for purchases against contracts. These procedures include program controls and invoice payments. This chapter prescribes procedures for all departments and federal entities that use the government purchase card.
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