Fundamentals of Program Management - Citi.com · Fundamentals of Program Management. Heelay Yaftali. Vice President. 12. th. Annual GSA SmartPay Conference. Atlanta, GA August 10-12,

GSA SmartPay® 2010 Conference

Fundamentals of Program Management

Heelay Yaftali

Vice President

12th

Annual GSA SmartPay

Conference

Atlanta, GA August 10-12, 2010

®

To ensure the best possible learning experience for participants, please adhere to the following house rules:

•

Turn cell phones and pagers to vibrate•

Hold questions to end of session

•

Ensure your participant badge is scanned to receive CLP credits− For each course−Must leave room and re-enter

•

Take advantage of opportunities to provide feedback − Please select the “Ask Citi”

icon on any Citi PC at the conference− Answers to be emailed after the conference within 45 days

House Rules

®


Federal Agencies

This course is designed to assist you in achieving the following objectives:

•

Gain a basic understanding of the card transaction process

•

Role as a coordinator•

Interacting with Citi to manage your program more efficiently

Goals & Objectives

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Federal Agencies

1.

Credit Card Processing Basics

2.

AOPC rolea.

Agency mission-policies and proceduresb.

OMB requirements c.

Cardholder Management

3.

Interacting with Citi support teama.

Customer serviceb.

Help Desk c.

Client Account Specialist (CAS)d.

Account Manager

Agenda

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Federal Agencies

1. Credit Card Processing Basics

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Who is involved in the transaction flow?

•

Cardholder

•

Issuing Bank

•

Merchant

•

Acquiring Bank

•

Card Association

•

Processor

Credit Card Basics

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Federal Agencies


This is the 1st

step when a cardholder attempts to initiate a purchase goods or

services.

Cardholder presents card at merchant

The merchant through the terminal or online/phone telephone order passes the auth request to the acquirer bank. The acquirer or

their process sends the request to the association (visa/MC).

Visa/MC act as the gateway to route that transaction request based on the first 6 digits of the card and other specific parameters specific to that card to the issuer. The information is then

passed to the issuer or issuer processor for either the approval

or decline request.

Credit Card Basics - Authorization Request Federal Agencies

CardholderCardholderPresents Card forPresents Card for

PurchasePurchase

MERCHANTMERCHANT

AuthorizationAuthorization

RequestRequest

ACQUIRERACQUIRERAuthorizationAuthorization

RequestRequest

Association BrandAssociation Brand


RequestRequest ISSUERISSUER


This slide overviews the auth request and it’s corresponding response back to the cardholder. Once the issuer

receives the request for authorization they return a response based on the account parameters or controls that an AOPC sets up at the account and card levels. As we go through the presentations with the basic and advanced classes we will in great detail discuss what controls and parameters you can set to control the transaction at this level.

So the flow of the response follows back through the chain to the merchant and the cardholder either gets their merchandise or service requested or they get a

decline or a referral.

Credit Card Basics - Authorization Response Federal Agencies

Presents Card forPresents Card for

PurchasePurchase


RequestRequest

CardholderCardholder

MERCHANTMERCHANT

ACQUIRERACQUIRERAuthorizationAuthorization

RequestRequest

Brand NetworkBrand Network


RequestRequest ISSUERISSUER

AuthorizationAuthorizationResponseResponse



ReceivesReceivesMerchandiseMerchandise


Merchant to their acquirer/processor.

Acquirer passes the message to visa/mc and they gateway the transaction to the correct issuer based on bin and bank information to the issuer or CITI/processor for response.

Credit Card Basics - Transaction Data Flow Federal Agencies

MERCHANTMERCHANT

ACQUIRERACQUIRERISSUERISSUER

TransactionTransactionDataData





A cardholder selects his or her goods, agrees to pay the retail price to the merchant and presents his or her card

for payment.

•

The merchant submits the purchase details, including the Visa/MC card information, to its financial institution/acquire for approval through their terminal at swipe.

•

The merchant’s financial institution/acquirer sends the purchase details to the issuer through the association network.

•

Assuming it has correctly followed the procedures required by its financial institution, the merchant receives a “payment guarantee,”

and the cardholder receives the goods.

•

The cardholder’s financial institution/issuer remits to the merchant’s financial institution/acquirer the retail price less the interchange rate. This interchange rate may be a unique rate that has been negotiated directly between the issuer and acquirer, or it may be the default rate that is set by Visa.

•

The merchant’s financial institution/acquirer remits to the merchant the retail price less the Merchant Discount or Merchant Service fee, which may include interchange; the cost of transaction processing, terminal rental and customer service;

and the merchant financial institution’s or processor’s margin, among other costs. This charge is negotiated directly between the

acquirer and the merchant.

Who pays interchange?

The acquirer generally pays interchange. Merchants make a payment to their financial institution for Visa/MC transactions, frequently referred to as a Merchant Discount or Merchant Service fee. This is a market-based fee set by

each merchant’s financial institution operating in a competitive marketplace —

merchants can choose their financial

institution in the same way cardholders can choose the financial

institution that issues their Visa/MC card.

Credit Card Basics -

Settlement to Merchant Federal Agencies

MERCHANTMERCHANT





CreditCredit

SettlementSettlement SettlementSettlement

PaysPaysInterchangeInterchange

FeesFees

ReceivesReceivesInterchangeInterchange

FeesFeesBrand NetworkBrand Network



Final Settlement

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Federal Agencies

MERCHANTMERCHANT





CreditCredit

SettlementSettlement SettlementSettlement

PaymentPayment

StatementStatement

PaysPaysInterchangeInterchange

FeesFees

RecievesRecievesInterchangeInterchange

FeesFees

CardholderCardholder



Level 1–

Merchant name–

Purchase date–

Total purchase amount–

Merchant category code (MCC)

Level 2–

Sales tax amount–

Point of sale code

Level 3–

Item quantities, unit of measure, item pricing–

Product codes, description–

Ship to zip–

Freight amount, duty amount


Levels of Transaction Detail

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Federal Agencies


This chart shows you the flow as it relates to your specific card programs. Once we receive the request or application from you

a card is requested and sent. We can either send it to an individual or the agency for distribution. When a purchase or request for goods and services on behalf of the agency is needed the cardholder/employee provides the information to a merchant. The merchant through their terminal swipes the card or enters data online. The information flows to visa/mc. They pass to Citi’s issuer processor. The Issuer Processor checks the card # against their database which houses the card limit and various authorizations parameters. The merchant then receives an approval or decline.

the red arrows trace the response back to the merchant.

Approving Official provides authorization to cardholder to use account Federal Agencies

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Customer Database & Limits

Customer Database & Limits

8

Citibank issues Visa/Master Card Citibank issues

Visa/Master Card1Organization distributes

Cards Organization distributes

Cards2Employees provide Card/

account number to merchant for payment

Employees provide Card/ account number to

merchant for payment3

Merchant inputs or swipes card to obtain

approval code

Merchant inputs or swipes card to obtain

approval code4

Merchant / Acquiring Bank

Merchant / Acquiring Bank5

Visa / MasterCard network carries data to

processor (TSYS)

Visa / MasterCard network carries data to

processor (TSYS)6

TSYS checks customer database & returns

authorization or decline

TSYS checks customer database & returns

authorization or decline7

2. A/OPC Role

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Agency/Organization Program Administrator responsibilities includes:•

Agency mission

•

Agency policies and procedures at agency, department, or cardholder levels

•

Establishment of key roles and responsibilities•

Communication and Training

•

Internal audit requirements•

Preventing misuse and controlling delinquency

•

Payments and reconciliation (Centrally billed vs. Individually billed)

•

Reporting tools

AOPC Role – Focal point

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Federal Agencies


A set of guidelines to assist agencies in establishing internal procedures and annual reporting requirements•

Maintain and communicate internal guidelines

•

Establish Controls•

Monitor

•

Report -

delinquency, misuse, performance metrics•

Training

AOPC Role – Agency Mission

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Federal Agencies


Circular emphasizes integration and coordination of internal control assessments with control-related activities•

Effective Fiscal Year 2006

•

Appendix A, B, C •

Applies to Executive Agencies

−Exception of requirements in Appendix−Appendix A requirements apply to 24 CFO Act

Agencies•

Management’s responsibility to develop and maintain internal controls

•

Starts with Senior Management –

ends up on your desk•

Should have been implemented at your agency already

AOPC Role – OMB Requirements

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Federal Agencies


General Requirements

Internal Control Objectives–

Effectiveness and efficiency of operations–

Reliability of financial reporting–

Compliance with applicable laws and regulations

Standards to meet the objectives–

Control Environment–

Risk Assessment–

Control Activities–

Information and Communications–

Monitoring


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Federal Agencies


General Requirements

•

Federal Agencies fall under numerous legislative and regulatory requirementsFederal Managers’ Financial Integrity Act (FMFIA) –accounting and administrative controlsThis circular is a best practices document for managing your financial activities including SmartPay2 CardsYour agency may not be subject to Circular as a requirement – still drives for efficiencies and controlGreater detail in later session


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Federal Agencies


Citi controls that can assist AOPC to control, maintain, monitor

and report •

Cardholder Demographics

•

Credit Limits•

Cash Limits

•

MCC restrictions•

Activate/Deactivate

•

Closure of inactive cards•

Email Alerts

•

Disputes•

Reporting

AOPC Role – Cardholder Management

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Federal Agencies


Training Tools to help you manage and communicate

•

Cardholder Training–User guides http://www.citimanager.com

•

AOPC Training–Onsite Training–Webcast

Training–Online Help Functions–CLASS–User Guides http://www.citimanager.com

AOPC Role – Cardholder Management

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Federal Agencies

http://www.citimanager.com/

http://www.citimanager.com/

3. Interacting with Citi

®



Citi Support Team •

Customer Service

•

Help Desk•

Client Account Specialist (CAS)

•

Account Manager

Interacting with Citi

®

Federal Agencies


Customer Service handles inquiries from merchants, cardholders, Program Managers, Approving Officials, third parties, and is staffed to

handle all emergency situations.• 24/7 Support•

The below options are available after entering an account number

–Option 1 –

Automated account information–Option 2 –

Payment address and to submit an online payment

–Option 3 –

Last 5 transactions–Option 4 –

Change Personal Identification Number (PIN)–Option 5 –

Customer ServiceAOPCChange credit lines, cash lines for individualsChange single-purchase limitsClose and reopen accounts of individualsForce authorizations in emergency situations

Interacting with Citi – Customer Service(800) 790-7206 Collect (904) 954-7850

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Federal Agencies


Citi Help Desk is available for technical assistance •

7 am –

11pm EST•

This option is available prior

to entering an account number

•

Option 1 -

System support and file delivery Help Desk–Password resets (Available 24/7)–File Delivery–Electronic Access Tools

CitiManagerCCMSCCRSCSPLibrary (CERS)

Interacting with Citi – Help Desk(800) 790-7206 Collect (904) 954-7850

®

Federal Agencies

Ken Fudge

Kellee Glover

Shadara Reed

Shameki Daniels

Dan Deal

Michael Wilson

Rosiland Jones

Tammatha Campbell

Don Altman

Dina Haynes

Kaylen Woodard

(Rear) George Farrar, Dustin Reed, Jim Radford

(Front) Elaine Vansant, Kim Bouttavong


Know Your CAS Managers 5 Digit Extension!

Interact

with AOPCs

and Account Manager to ensure the program is working well•

Complete Set-Up Documentation

•

Build Hierarchy•

Establish Accounts

•

Card Delivery•

Account Maintenance

•

Billing Inquiries •

Special Report Requests

•

Reconciliation•

Projects

Interacting with Citi – Client Account Specialists (CAS)888-836-5011 collect at 904-954-7850

®

Federal Agencies


CAS is the group of specialists who are there to help you with your program needs.

•

Option 1 –

Help Desk –

all your electronic access and reporting needs•

Option 2 –

The first available CAS Representative•

Option 3 –

Allows you to enter CAS Manager Extension

Be sure to ask your CAS managers extension!

Interacting with Citi – Client Account Specialists (CAS)888-836-5011 or thru CS by dialing 904-954-7850 collect

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Federal Agencies


Know Your Account Manager •

Strategic Relationship Manager

•

Account Reviews•

Business development

•

Ensures Citi Resources•

Introduces products

•

Special Projects

Interacting with Citi – Account Manager

®

Federal Agencies)


What objectives and goals were met in this session ? •

Learned the basic flow of a transaction

•

Macro level overview of the AOPC role•

Citi designated team to service and meet your ongoing needs

Wrap up

®

Federal Agencies


Heelay Yaftali / Donald Altman

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Federal Agencies

Thank you for attending!

Visit the Citibank Welcome Center–

Across from Room#B212–

National Industries for the Blind will have a display of products

–

Conference Slide Show –

come see yourself shine!

Visit the Citibank One-on-One Lab - B210

Visit the Citibank Mini Sessions – B209

Ask Citi Link – Tell us your thoughts

®

Reminders Federal Agencies


®

Interactive Training Events Federal Agencies


Citi offers onsite training at no cost for agencies meeting the required minimum participant level of 20 or more as set forth in the GSA SmartPay2 Master Contract.

Please contact your Account or Client Manager if you are interested in setting up a training session. Training can be conducted at a Citi Training Location or On-site at your office.

Regional Citi Training Locations–

Norfolk, VA–

Washington, DC

On-Site at your office–

20 participant minimum

Distance Learning – Computer Based Training is available via the CLASS icon in CitiManager.

Terms & Disclosures

Tuesday, July 28, 2009

®

IRS Circular 230 Disclosure: Citigroup Inc. and its affiliates do not provide tax or legal advice. Any discussion of tax matters in these materials (i) is not intended or written to be used, and cannot be used or relied upon, by you for the purpose of avoiding any tax penalties and (ii) may have been written in connection with the "promotion or marketing" of any transaction contemplated hereby ("Transaction"). Accordingly, you should seek advice based on your particular circumstances from an independent tax advisor.

Any terms set forth herein are intended for discussion purposes only and are subject to the final terms as set forth in separate

definitive written agreements. This presentation is not a commitment to lend, syndicate a financing, underwrite or purchase securities, or commit capital nor does it obligate us to enter into such a commitment. Nor are we acting in any other capacity as a fiduciary to you. By accepting this presentation, subject to applicable law or regulation, you agree to keep confidential the existence of and proposed terms for any Transaction.

Prior to entering into any Transaction, you should determine, without reliance upon us or our affiliates, the economic risks and

merits (and independently determine that you are able to assume

these risks) as well as the legal, tax and accounting characterizations and consequences

of any such Transaction. In this regard, by accepting this presentation, you acknowledge that (a) we are not in the business of providing (and you are not relying on us

for) legal, tax or accounting advice, (b) there may be legal, tax or accounting risks associated with any Transaction, (c) you should receive (and rely on) separate and qualified legal, tax and accounting advice and (d) you should apprise senior management in your organization as to such legal, tax and accounting advice (and any risks associated with any Transaction) and our disclaimer as to these matters. By acceptance of these materials, you and we hereby agree that from the commencement of discussions with respect to any Transaction, and notwithstanding any other provision in this presentation, we hereby confirm that no participant in any Transaction shall be limited from disclosing the U.S. tax treatment or U.S. tax structure of such Transaction.

We are required to obtain, verify and record certain information

that identifies each entity that enters into a formal business relationship with us. We will ask for your complete name, street address, and taxpayer ID number. We may also request corporate formation documents, or other forms of identification, to verify information provided.

Any prices or levels contained herein are preliminary and indicative only and do not represent bids or offers. These indications are provided solely for your information and consideration, are subject to change at any time

without notice and are not intended as a solicitation with respect to the purchase or sale of any instrument. The information contained in this presentation may include results of analyses from a quantitative model which represent potential future events that may or may not be realized, and is not a complete analysis of every material fact representing any product. Any estimates included herein constitute our judgment as of the date hereof represent potential future events that may

or may not be realized, and is not a complete analysis of every

material fact representing any product. Any estimates included

herein constitute our judgment as of the date hereof and are subject to change without

any notice. We and/or our affiliates may make a market in these instruments for our customers and for our own account. Accordingly, we may have a position in any such instrument at any time.

Although this material may contain publicly available information about Citi corporate bond research, fixed income strategy or economic and market analysis, Citi policy (i) prohibits employees

from offering, directly or indirectly, a favorable or negative research opinion or offering

to change an opinion as consideration or inducement for the receipt of business or for compensation and (ii) prohibits analysts

from being compensated for specific recommendations or views contained in research reports. So as to reduce the potential for conflicts of interest, as well as to reduce any appearance of conflicts of interest, Citi has enacted policies and procedures designed to limit communications between its investment banking and research personnel to specifically prescribed circumstances.

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©2010 Citibank, N.A. All rights reserved. Citi, Citi and Arc Design and CitiDirect

are trademarks and service marks of Citigroup Inc., used and registered throughout the world.

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Documents

Fundamentals of Program Management - Citi.com · Fundamentals of Program Management. Heelay Yaftali. Vice President. 12. th. Annual GSA SmartPay Conference. Atlanta, GA August 10-12,