Federal Manager's Daily Report

The Office of Management and Budget has issued guidance

in an effort to return the limit for government credit

card purchases to pre-Katrina levels from the current

$250,000 limit authorized under the second Katrina

emergency supplemental appropriations bill.

A bill was introduced on September 30 by Senators Byron

Dorgan, D-N.D., and Ron Wyden, D-Ore., aimed at rolling

back the higher purchase limits to prevent them from

becoming “a tool for widespread fraud,” as the senators

warned in a statement.

While Dorgan and Wyden praised OMB’s guidance as “exactly

the kind of common-sense step we’ve called for to fight

waste and fraud with government credit cards,” they

also said they would push through with the bill in order

to affirm OMB’s rules.

OMB announced that purchasing limits higher than $2,500

for normal purchases, and $15,000 for contingency

operations, would only be authorized in exceptional

circumstances.

“To further strengthen the protections that we have put

in place to guard against fraud and abuse, we are asking

that agencies operate under pre-hurricane levels unless

they can justify to us that there are exceptional

circumstances,” said OMB Deputy Director for Management

Clay Johnson III.