OMB Sets New Policies on Card Use

OMB has sent a memo to agencies telling them to crack down on abuse of government-issued purchasing cards, although adding that it believes that misuse of the cards "is the exception rather than the rule and most federal employees are using government charge cards responsibly." The April 15 memo followed a recent GAO report, the latest in a long line, finding wasteful and inappropriate use of the cards, which generally are meant to simplify procurements for items under $2,500. The memo reminded agencies about previously issued controls and said that in addition, by June 30 they must take steps including restricting the use of "convenience checks"; requiring cardholders to obtain prior approval or subsequent review of purchases under the threshold; develop and carry out disciplinary policies including dismissal for fraud and other abuse; make sure they document independent receipt of items purchased; and inventory items that are easily stolen or converted to personal use. OMB said it further is considering additional restrictions in light of GAO’s recommendations.