OMB director Jim Nussle has issued a memo reminding agencies of their responsibilities to maintain internal controls to reduce the risk of waste, fraud and abuse of government charge cards and for taking administrative or disciplinary actions in response to misuse.
It cites existing guidance agencies are to follow in Appendix B to OMB circular A-123 – "Improving the Management of Government Charge Card Programs" — but the memo also outlines additional actions agencies must take by June 30.
The memo follows only the latest GAO report to identify lax controls government-wide over charge card purchases and documenting cases of flagrant abuse.
The Senate Homeland Security and Government Affairs Committee just passed a measure to curb abuses by calling for tighter controls and tougher penalties.
While noting that abuse is the exception rather than the rule, the memo calls on agencies to implement the following charge card policies to their card management plans and training:
Extend internal controls over purchase card activities to convenience checks and further remind cardholders that the use of convenience checks issued on the purchase card should be minimized;
Require cardholders to obtain prior approval or subsequent review of transactions under the micro-purchase threshold;
Develop and implement guidance for ensuring that disciplinary actions are imposed for fraud and other egregious abuse;
Develop and implement guidance for documenting independent receipt and acceptance of items obtained with a purchase card;
Inventory tempting items such as handheld electronics purchased with government cards.