Federal Manager's Daily Report

A bipartisan bill (HR-5215) sponsored by members of the House Veterans Affairs oversight subcommittee would require the department to revoke a purchase card from any employee who is found to have knowingly misused their card or approval authority.

“Purchase cards are generally an efficient payment mechanism, but with such a large volume of spending, the potential for misuse is always a concern. VA’s purchase card spending is roughly $4 billion annually and will likely increase as the individual transaction limit rises from $3,500 to $10,000 later this year, as a result of the 2018 National Defense Authorization Act. While this will give VA and other agencies tremendous new flexibility in using purchase cards, it will also pose greater risk for misuse,” sponsors said in announcing the bill.

They cited testimony at a hearing regarding purchases of medical equipment that, while needed, cost more than would have been charged through formal procurements. The inspector general at the VA meanwhile issued several reports within the last year finding that cardholders had split purchases to avoid limits on the amount that may be charged on the cards; IGs of other agencies, including IRS, Commerce and USPS have found similar problems recently.

The bill would not change existing penalties for misuse of cards but would increase enforcement of those penalties, sponsors said.