## You Need to Know...

This quick guide assists cardholders in carrying out their authority and
responsibility in using the purchase card and is to be used in
conjunction with *Departmental Regulation (DR) 5013-6* and the
*PCMS/Micro-Purchase Guide*. These documents, providing complete details
of all information contained in this quick guide, are located at
[http://www.usda.gov/procurement/card/guide.html](http://www.usda.gov/procure).

## Purchase Card and Convenience Check Security

The cardholder is responsible for safeguarding the purchase card account
number and checks at all times. **Never allow anyone to use your
card/checks or account number and never use the card/check to procure
personal items.**

### **Lost/Stolen Cards/Checks**

When a purchase card is lost or stolen, the cardholder should contact
Bank of America's Government Card Services Unit (GCSU) by telephone at
1-800-472-1424 to report the lost/stolen card.

If the cardholder finds the card after having reported it lost or
stolen, it should be cut in half and given to the LAPC.

### **Card Receipt Verification/Activation** {#card-receipt-verificationactivation .unnumbered}

As a security measure, new cards and replacement cards for lost, stolen,
or reissued accounts are not usable until the cardholder calls Customer
Service at 1-800-227-6736 to activate their account.

### **Stop Payment Requests**

A cardholder that needs to stop payment on a check is to contact their
LAPC and the bank immediately.

### **Separation of Cardholder** {#separation-of-cardholder .unnumbered}

Prior to separation from an agency or assignment to another function
that does not require cardholder authority, the cardholder will
surrender the card and, if issued, unused convenience checks, to their
LAPC who will destroy them. The cardholder will review with their LAPC
the status of any unreconciled, questionable, partially approved,
unresolved, and disputed transactions, and identify any supplies and/or
services which have been ordered but not yet received, so appropriate
action can be taken to complete these activities.

### **Card Misuse/Fraud** {#card-misusefraud .unnumbered}

Procurement laws, regulations, and procedures place upon the cardholder
direct responsibility for the proper and lawful execution of procurement
actions. Any act exceeding the cardholder's authority is no longer an
act of the government but becomes a personal responsibility. Misuse of
the purchase card will require the purchase card to be withdrawn from
the cardholder. Disciplinary actions may be taken against the
cardholder. The cardholder may be liable for payment of the purchase.
**This may include financial liability and consideration of disciplinary
action up to and including removal from position and possible criminal
prosecution**.

## Unauthorized Use of the Card and Checks (Cont'd.)

-   Long-term (more than 180 days) rental or lease of land or buildings
    except by warranted real property leasing or contracting officers.

-   Purchase of hazardous items such as firearms, ammunition,
    explosives, or hazardous biological and radioactive substances.

-   Purchase of airline, bus, train, or other travel-related tickets and
    purchase of meals, lodging, or subsistence costs unless authorized
    by the agency. The Government Travel Card should be used for these
    items.

-   Personal purchases or identification. Items purchased with the card
    are for official government use only. Additionally, the card must
    not be used for identification for personal purchases (e.g., while
    paying for a personal purchase by check), or security for personal
    purchases.

-   Purchase of telecommunications (telephone) services, i.e., major
    systems such as FTS2001 or DSN. However,
    telephone/telecommunications equipment may be purchased unless
    restricted by an agency.

-   Splitting requirements into several purchases merely to avoid the
    cardholder's delegated single purchase limit.

-   Fuel and related supplies and services for government-owned and
    leased vehicles, aircraft, and other motorized equipment, unless a
    cardholder cannot reasonably find a vendor for these items that will
    accept the fleet card or aviation fuel card.

-   Personal services unless authorized by statute. Personal services
    are those where an employer-employee relationship occurs such as
    when there is continuous supervision of the contractor's employees
    by the government.

-   Writing checks to self or for cash.

-   Advance payment to a merchant prior to receipt of goods/services,
    unless authorized by law (i.e., subscriptions, registration fees,
    and training).

-   Acquisition from commercial sources of products or services
    available from a required source in time to meet the agency need.

-   Other unauthorized purchases include, but are not limited to:

```{=html}
<!-- -->
```
-   Greeting cards

-   Memberships in an individual's (as opposed to an organization's)
    name

-   Parking tickets against a government vehicle

-   Insurance of items being shipped to or for the government (the
    Government is self-insuring)

```{=html}
<!-- -->
```
-   Shipment of household goods

```{=html}
<!-- -->
```
-   Meals for federal employees at office or agency functions, unless
    authorized by law (purchasing food for government employees for a
    bona fide awards ceremony is permitted by law)

![](media/image1.wmf){width="3.20625in" height="0.12430555555555556in"}

*Purchase Card*\
QUICK GUIDE

*to\
Proper Use of the\
Card and Convenience Checks*

![](media/image2.wmf){width="1.34375in" height="1.3854166666666667in"}

######### 

######### 

######### ![](media/image3.wmf){width="1.5729166666666667in" height="1.0625in"}

######### 

######### 

######### 

######### 

######### 

######### 

######### Originated: January 2001

Updated: February 2001

![](media/image4.png)

Prepared by:

Office of Procurement\
and Property Management,\
Procurement Modernization Team

![](media/image1.wmf){width="3.20625in" height="0.12430555555555556in"}

## Cardholder Responsibilities

-   Make purchases within authorized spending limits and funds
    availability.

```{=html}
<!-- -->
```
-   Micro-purchase limit is \$2,500 for supplies and services/\$2,000
    for construction for non-procurement personnel.

-   Warranted individuals can use card/convenience checks for up to \$2
    million if within their delegated authority and single purchase
    limit.

```{=html}
<!-- -->
```
-   Use the card or convenience check only for purchasing items in
    accordance with agency/department policies.

-   All employees must maintain the highest standards of conduct in a
    manner above reproach. Any conflict of interest or appearance
    thereof, between government responsibilities and personal lives must
    be avoided.

```{=html}
<!-- -->
```
-   Solicit prompt payment discounts from vendors prior to accepting an
    offer. Discount for prompt payment means an invoice payment
    reduction offered by the contractor if payment is made prior to the
    due date. Vendors normally receive payment from the bank within
    three days of the purchase.

-   Maintain adequate documentation of all purchase card and convenience
    check transactions. This responsibility includes documentation of
    funds availability, receipts, packing lists, invoices, Claims for
    Reimbursement for Actual Expenses (SF-1164), spot award approvals
    (AD Form 287-2), emergency salary payment documentation (AD Form
    343), and other appropriate or agency-required
    documentation/approvals.

-   Reconcile purchase card and convenience check transactions using
    PCMS in a timely manner, ensure entry of proper accounting codes,
    budget object classification codes, and, for convenience checks,
    TINs or SSNs, as appropriate.

-   Ensure that accountable and sensitive property is entered into the
    USDA accountable property system. Also ensure that any dangerously
    radioactive and other hazardous materials acquired are disposed of
    in accordance with applicable regulations (refer to Subchapter H,
    Part 104-42 of the *Agriculture Property Management Regulations*
    entitled, *Utilization and Disposal of Hazardous Materials and
    Certain Categories of Property*. See DR 5013-6 for restrictions on
    use of the purchase card to acquire firearms, ammunition,
    explosives, or hazardous biological and radioactive substances.

-   Pay the sales tax if the merchant refuses to waive it. The
    cardholder must first inform the merchant that the purchase is for
    \"official U.S. Government business" and is not subject to state or
    local sales tax. The card is imprinted with the statement, "US
    Government Tax Exempt." For large purchases where the merchant
    refuses to waive the tax, the cardholder can present a state tax
    exemption letter. Cardholders can printout state tax exemption
    letters from the GSA SmartPay web site at
    <http://www.fss.gsa.gov/services/gsa-smartpay/taxletter/>.

-   Maintain purchase cards and convenience checks in a secure fashion
    and preventing unauthorized charges against the account.

### **Authorized Use of the Card**

-   Use the purchase card first; checks are only to be used if the
    vendor does not accept the card or in other limited instances in
    accordance with DR5013-6.

```{=html}
<!-- -->
```
-   In purchasing supplies and services, use required sources first
    (e.g., JWOD Program).

-   Rent, on a short-term basis (up to 180 days), meeting and conference
    rooms, parking for government-owned or leased vehicles, storage, and
    other special purpose space to be used on a temporary or emergency
    basis.

-   Business cards, if authorized by your agency. To order, refer to the
    Javits-Wagner-O\'Day (JWOD) Program at
    [http://www.jwod.gov](http://www.jwod.gov/).

-   For warranted contracting personnel, orders within their delegated
    authority.

### **Authorized Use of the Convenience Check**

Convenience checks are utilized for purchases only when: (1) vendor or
merchant will not accept the purchase card, (2) emergencies where the
purchase card is not a viable solution, (3) transactions with small
and/or rural businesses that are not yet able to accept the purchase
card, (4) other properly approved transactions for which the imprest
funds were previously used which cannot be addressed using the purchase
card, and (5) at least one of the DCIA waivers are satisfied.
Convenience checks, when appropriate, can be used by unwarranted series
personnel for transactions at or below the micro-purchase threshold and
by warranted personnel up to and including the limit of their delegated
authority.

Convenience checks are also authorized for the following situations:

-   Issue checks for spot awards. Cardholders may issue checks to
    employees for payment of spot awards not exceeding \$500. Before
    issuing checks, form **AD-287-2, Recommendation & Approval of Award
    (Att. 2-1)** must be approved by an authorized official other than
    the cardholder.

-   Reimburse employees for local travel expenses. Cardholders may issue
    checks to employees for reimbursement of local travel expenses, such
    as mileage, parking, and taxis, authorized by their agency while on
    official business. Local travel is official travel performed in the
    vicinity of the employee's official duty station. Before issuing
    checks, form **SF-1164, Claim for Reimbursement for Expenditures on
    Official Business (Att. 2-2)** must be approved by an authorized
    official other than the cardholder.

-   Reimburse employees for miscellaneous expenditures. Cardholders may
    issue checks to employees for reimbursement of miscellaneous
    expenditures (e.g., supplies, services, registration fees, and
    telephone use for official business) that were cleared with the
    cardholder before the purchase was made. Before issuing a check,
    form **SF-1164, Claim for Reimbursement for Expenditures on Official
    Business (Att. 2-2)** must be approved by an authorized official
    other than the cardholder.

-   Reimburse employees for tuition, books, and related expenses.
    Cardholders may issue checks to employees for reimbursement for
    tuition, books, and related expenses. Before issuing a check, form
    **SF-182, Request, Authorization, Agreement and Certification of
    Training (Att. 2-3**) must be approved by an authorized official
    other than the cardholder.

-   Issue emergency salary payments. Cardholders may issue checks to
    employees for emergency salary payments in hardship cases when they
    do not receive a scheduled paycheck. Before issuing a check, form
    **AD-343, Payroll Action Request (Att. 2-4)** must first be approved
    by an authorized official other than the cardholder.

### ***DCIA Waivers***

DCIA Waivers require the government to maximize electronic transactions.
Purchase card transactions are considered electronic, and are therefore
in conformance with DCIA. Convenience checks are not considered
electronic, and are not DCIA compliant unless one of the following
criteria are met:

-   An individual determines, in his/her sole discretion, that use of
    the purchase card would cause a financial hardship or impose a
    hardship due to a physical or mental disability, or a geographic,
    language, or literacy barrier. Note: Agency personnel may not
    challenge an individual's hardship determination.

-   The agency does not expect to make more than one payment to the same
    recipient within a one-year period (e.g., spot cash awards).

-   The infrastructure of a foreign country does not support electronic
    transfers.

-   The transaction is with a vendor/recipient in a declared disaster
    area.

-   A threat may be posed to national security, the life of physical
    safety of any individual may be endangered, or a law enforcement
    action may be compromised.

-   An agency's need for goods and services is of such unusual and
    compelling urgency that the government would be seriously injured
    unless the transaction is processed by other than electronic means.

## Unauthorized Use of the Card and Checks

The purchase card and convenience checks will not be used for:

-   Cash advances and/or travel advances (except emergency salary
    payments as authorized by the agency)

    (Continued on back panel.)