BUREAU OF RECLAMATION

**[INTEGRATED CHARGE CARD]{.smallcaps}**

**[PURCHASE LINE HANDBOOK]{.smallcaps}**

**(PURLBOOK)**

October 13, 2004

[http://www.usbr.gov/pmts/acquisitions/purlbook.html](http://www.usbr.gov/aamsden/purlbook.html)

**[Table of Contents]{.smallcaps}**

[INTRODUCTION 3](#introduction)

[I. PURCHASE AUTHORITIES 4](#purchase-authorities)

[A. Micro-purchases. 4](#micro-purchases.)

[B. Simplified Acquisitions for Warranted Personnel.
4](#simplified-acquisitions-for-warranted-personnel.)

[II. PROGRAM CONTACTS AND RESPONSIBILITIES
6](#program-contacts-and-responsibilities)

[A. Contacts 6](#contacts)

[B. Responsibilities 7](#responsibilities)

[III. OBTAINING PURCHASE AUTHORITY 13](#obtaining-purchase-authority)

[A. Training Requirements. 13](#training-requirements.)

[B. Application. 13](#application.)

[C. Delegation of Authority - Cardholder.
13](#delegation-of-authority---cardholder.)

[D. Delegation of Appointment Memorandum -- Approving official.
13](#delegation-of-appointment-memorandum-approving-official.)

[IV. HOW TO USE THE PURCHASE LINE AUTHORITY
14](#how-to-use-the-purchase-line-authority)

[A. Making Purchases. 14](#making-purchases.)

[B. Required Sources of Supply. 14](#required-sources-of-supply.)

[C. When purchasing from Federal Supply Schedules be sure you:
14](#when-purchasing-from-federal-supply-schedules-be-sure-you)

[D. Over-the-Counter Purchases 15](#over-the-counter-purchases)

[E. Purchases by Telephone. 15](#purchases-by-telephone.)

[F. Purchases by Internet. 16](#purchases-by-internet.)

[G. Documentation. 16](#documentation.)

[H. Account Reconciliation/Purchase Disputes.
17](#account-reconciliationpurchase-disputes.)

[I. Separation of a Cardholder/Exit Procedures.
17](#separation-of-a-cardholderexit-procedures.)

[J. Convenience Checks. 17](#convenience-checks.)

[K. Card and Convenience Checks Security.
20](#card-and-convenience-checks-security.)

[V. PROPER AND IMPROPER USES OF THE PURCHASE LINE
22](#proper-and-improper-uses-of-the-purchase-line)

[A. Prohibited Transactions for the Purchase Business Line.
22](#prohibited-transactions-for-the-purchase-business-line.)

[B. Special Handling or Otherwise Controlled Purchases
24](#special-handling-or-otherwise-controlled-purchases)

[C. Use of Purchase Line When On Travel
28](#use-of-purchase-line-when-on-travel)

[D. Frequently Asked Questions 30](#frequently-asked-questions)

[VI. CONSEQUENCES OF PURCHASE LINE MISUSE
32](#consequences-of-purchase-line-misuse)

[A. Unauthorized Use/Penalties. 32](#unauthorized-usepenalties.)

[B. Consequences: Suspension or Termination of Purchase Line Authority
32](#consequences-suspension-or-termination-of-purchase-line-authority)

[ATTACHMENTS 35](#attachments)

Attachment A - List of Acronyms 36

Attachment B - List of Deficiencies 37

ILUSTRATIONS 38

Illustration 1 - Charge Card Application 39

[Illustration 2 - Delegation of Approving Official Memorandum
40](#illustration-2---delegation-of-approving-official-memorandum)

[Illustration 3 -- IRS Form 1099 MISC
43](#illustration-3-irs-form-1099-misc)

# INTRODUCTION {#introduction .unnumbered}

The Department of the Interior awarded the Government charge card
contract to Bank of America effective November 30, 1998. Bank of America
MasterCard is an \"integrated\" card that can be programmed to service
purchase, travel, fleet, or a combination of these business lines with
the same card.

This handbook contains supplemental Bureau of Reclamation (Reclamation)
specific guidance and instruction on the use of the purchase business
line of the Integrated Charge Card Program.

Refer to the Department of the Interior Integrated Charge Card
Guidelines, for complete guidance: <http://www.doi.gov/pam/chargecard/>

#   {#section .unnumbered}

#  PURCHASE AUTHORITIES

## Micro-purchases.

### Personnel without a Contracting Officer's warrant are authorized to use the charge card as a means of making and/or paying for micro-purchases (up to \$2,500) of supplies and services as follows:

#### Charge supplies, equipment, short-term rental of equipment, some services, and repairs except construction, up to \$2,500; 

#### Construction purchases up to \$2,000.

### This authorization may include authority to issue convenience checks. Payment is limited to \$2,500 total transaction, not each individual payment against the transaction. As cited by Federal Acquisition Regulations, FAR, 1.603‑3(b), (www.arnet.gov/FAR/current/html) delegation of micro-purchase authority to charge cardholders without a Contracting Officer's warrant is encouraged. Employees must have their supervisor's approval and meet all training requirements before being authorized to make purchase transactions. Periodic refresher training will be required.

### Micro-purchase authority may be terminated for the following reasons: improper use of micro-purchase authority, splitting purchases, job no longer requires it, cancellation of charge card privileges due to failure to pay Bank of America, and/or misuse. 

## Simplified Acquisitions for Warranted Personnel. 

### Except as indicated below, the Government-wide commercial purchase card is to be used as a payment mechanism, not as a contracting mechanism, for purchases above the \$2,500 micro-purchase dollar threshold. The use of the Government-wide commercial purchase card does not substitute for the acquisition process. All the applicable requirements of the Competition in Contracting Act, other statutes and Executive orders, and the Federal Acquisition Regulations apply to purchases made using the purchase card for payment (see FAR 13.301). (www.arnet.gov/FAR/current/html)

### In addition to being able to use the charge card to make and pay for micro-purchases, personnel with a Contracting Officer\'s warrant may also use the charge card, up to their individual warrant limit to: (1) place and pay for orders against Federal Supply Schedules (no additional clauses are required beyond the terms and conditions already included in the master contract/schedule); or (2) to make payments against open market simplified acquisitions or contract actions when the contractor agrees to accept payment by the charge card and the appropriate terms and conditions are incorporated in the order or contract.

### When placing and paying for orders against Federal Supply Schedules, personnel with a Contracting Officer\'s warrant may order up to the ordering limit established for their respective warrant level for acquisitions against \"Established Sources\" in the Department of the Interior Contracting Officers Warrant System Manual (see section entitled \"Contracting Officers Warrant Levels\") or \$100,000, whichever is less. Warranted contracting personnel are urged to \"buy smart\" and increase their buying power by using the charge card to place or pay for orders against established sources such as the Federal Supply Schedules. Warranted individuals shall ensure that purchases from other Government agencies made under authority of the Economy Act are supported by the determination and finding required by (FAR) 17.503.

### Warranted contracting personnel shall:

#### Reserve purchases over the micro-purchase threshold for small business concerns in accordance with Public Law 95‑507 (see FAR 13.003(b));

#### Solicit competition for purchases over the micro-purchase threshold. Such competition shall be obtained and documented pursuant to FAR requirements; and

#### Ensure that purchases from other Government agencies made under authority of the Economy Act are supported by the determination and finding required by Federal Acquisition Regulation (FAR) 17.503 

# PROGRAM CONTACTS AND RESPONSIBILITIES

## Contacts

### Bureau of Reclamation Agency/Organization Program Coordinator (A/OPC). 

> The A/OPC is the primary liaison with the charge card contractor,
> Office of Acquisition and Property Management, Office of Financial
> Management, and National Business Center regarding technical and
> policy matters relating to the DOI charge card contract and
> bureau/office charge card use. This individual is also responsible
> for, EAGLS account maintenance, oversight, and overall tracking of
> misuse within the Purchase, Travel and Fleet business lines. The
> Bureau of Reclamation A/OPC is:

Kaye Johnson

Bureau of Reclamation, D‑7736

PO Box 25007

Finance and Accounting Division

Denver, CO 80225‑0007

Phone: 303‑445‑3439

### Bureau of Reclamation Purchase Line Card Coordinator (PLCC). The PLCC is located in the Acquisition and Assistance Management Division and is responsible for policy and oversight of the purchase business line and developing and maintaining the Bureau of Reclamation Integrated Charge Card Purchase Line Handbook (PURLBOOK). The Reclamation PLCC is:

Robert McMillen

Bureau of Reclamation, D-7800

Acquisition & Assistance Management Division

PO Box 25007

Denver, CO 80225‑0007

\(303\) 445-2446

Rmcmillen@do.usbr.gov

### Regional Agency/Office Program Coordinators. These individuals act as the liaison with the Reclamation A/OPC for the entire charge card program. A listing of these individuals is available at <http://intra.do.usbr.gov/fas>.

### Regional and Denver Office Purchase Line Card Coordinators. These individuals oversee the regional and area office purchase line program. This responsibility is delegated to the Chiefs of the Contracting Offices (CCOs) who can delegate this authority to a qualified individual on their staff.

### Approving Official. This is the supervisor of the cardholder.

### Cardholder. The individual who has been delegated purchase line authority.

## Responsibilities

### Agency/Organization Program Coordinator (A/OPC). The A/OPC:

#### Sends the PLCC a copy of the application, signed by the supervisor, for a new charge card requesting the purchase line or the e-mail received by the supervisor requesting the addition of purchase authority to an existing card. The PLCC validates training and sends the application to the CCO who will assign the appropriate spending limits and sign the application copy, thus delegating the purchasing authority to the cardholder. The CCO will then notify the A/OPC to process the application or to add purchase line authority to an existing card.

#### Tracks misuse of the purchase line authority and notifies the PLCC of any such misuse. 

#### Responds to inquiries on disputed transactions and rejected transactions, and reviews EAGLS reports for purchase card usage including convenience checks. 

#### Notifies cardholders regarding charge card "scams" by vendors and other parties, moves charges from Individually Billed Accounts (IBA) to Centrally Billed Accounts (CBA) or CBA to IBA upon request from the cardholder or supervisor, and makes changes to the card such as removing purchase authority if requested by the CCO or if the card has been suspended due to delinquency, with notification to the CCO.

### Reclamation PLCC. The PLCC:

#### Develops and maintains bureau‑specific training on the use of the purchase line of the Integrated Charge Card; 

#### Establishes policy and/or reporting requirements which may be necessary for internal control;

#### Annually briefs the Bureau Procurement Chief on the status of the management review of procedures and controls of the purchase function of the credit cards.

### Regional /Area Office Program Coordinator. This individual is responsible for:

#### Reviewing and processing applications for the travel/fleet or fleet business lines and approved purchase/fleet business line authority, upon receipt of the purchase line application signed by the CCO, as explained under B.1. above. 

#### 

#### Disposition of unresolved purchase disputes and credit or billing errors.

#### Prompt notification to the PLCC of any reported misuse by a cardholder with purchase line authority.

#### Distributing changes issued to the PURLBOOK to each regional PLCC, A/OPC, Approving Official and cardholder with purchasing authority.

### Regional and Denver Purchase Line Card Coordinators (PLCC) Responsibilities. The Regional/Denver PLCC: 

#### Has responsibility over the purchase business line of the Integrated Charge Card.

#### Receives and reviews nominations for potential Charge Card Purchase Line cardholders from the A/OPC.

#### Issues the CCO's delegation of purchasing authority with the purchase cycle spending limit to designated cardholders, with a copy to the A/OPC. 

#### Arranges and may conduct required purchase line training for cardholders. The PLCC should ensure that the prospective cardholder understands the correct answers to any wrong answers on the test, and issues a PURLBOOK to all new purchase line cardholders. 

#### Identifies and tracks misuse of purchase cards or convenience checks, and makes recommendations to the CCO to revoke authority as necessary. If purchase authority is revoked, such action shall be in writing from the CCO and sent to the approving official and the A/OPC. Any instances of abuse must be reported to the A/OPC.

#### Provides advice and guidance, and responds to inquiries from cardholders and Approving Officials on issues such as allowable purchases, purchase misuse, questionable invoices, recommended merchants/vendors, etc. and works with purchase card vendors, as necessary. 

#### Reviews reports of purchase card usage, analyzes cost data, and monitors expenditures to ensure that acquisitions are made within guidelines and contract provisions.

#### Ensures that Approving Officials examine purchase activity for compliance with acquisition requirements, e.g., FAR Part 8, required sources of supplies and services.

#### Completes the required annual reviews of the Purchase Line charge card program (as directed by the CCO), which requires review of usage reports to detect questionable purchases, dollar amounts, etc. Through these reviews the PLCC may identify unauthorized expenditures, split purchases, record-keeping errors, or other potential problems. A written report with any necessary corrective actions and recommendation for resolution and prevention of future problems will be provided to the Acquisition and Assistance Services Division (D-7800) and the A/OPC. To ensure proper utilization of the purchase line, these annual review requirements are as follows:

##### A required representative sampling of a minimum of one-third of all Approving Officials' offices shall be reviewed each year. The sampling population shall include a minimum of 25 percent of the cardholders within each Approving Official's area of control. The PLCC, or other CCO designee, shall select the Approving Officials offices and the cardholders within those offices for review. All Approving Officials must be reviewed at least once every 3 years. The number of cardholders reviewed within an office may be expanded, based upon the judgment of the PLCC, or other CCO designee.

##### The focus of the review shall include at a minimum, the following areas:

###### Documentation, including signed and dated monthly statements, and transaction receipts;

###### Use of required sources;

###### Splitting purchase requirement to avoid the micropurchase threshold;

###### Unauthorized purchases;

###### Evidence of monthly reviews of each cardholder by his/her Approving Official;

###### Proper use of convenience checks;

###### Timeliness in reporting statement of account errors and discrepancies; and

###### IRS Form 1099 MISC for convenience checks if appropriate.

##### Those cardholder accounts found deficient shall be reviewed subject to the penalties described in this handbook (see Part VI. CONSEQUENCES OF PURCHASE LINE MISUSE).

##### A report shall be prepared by the PLCC which identifies problem areas, recommended solutions and an overall summary of findings. The report shall be submitted by February 1 of each year to:

###### Bureau of Reclamation Acquisition and Assistance Management Services, D‑7800 P.O. Box 25007 Denver CO 80225‑0007

###### Kaye Johnson P.O. Box 25508, D7736

######  Finance and Accounting Division {#finance-and-accounting-division .unnumbered}

######  Denver, CO 80225-0007 {#denver-co-80225-0007 .unnumbered}

######  {#section-2 .unnumbered}

### Approving Officials. The Approving Official:

#### Must obtain training associated with the charge card as a prerequisite to assuming Approving Official duties. The required training and on-line quiz are located on the Department of Interior webpage at <http://training.nbc.gov/charge>. Upon completion of training, will receive an "Appointment as Integrated Charge Card Approving Official" memorandum from the Office of Acquisition and Property Management.

#### Is responsible for oversight and monitoring of cardholder's accounts, to ensure that all purchase transactions were made in accordance with FAR, DIAR, RAR, and the procedures stated in this handbook. 

#### Is expected to perform a monthly physical hard copy review of all transactions and supporting documentation and sign and date each cardholder's monthly statement after completing the review. The EAGLS on‑line system provides a series of standard and ad hoc exception reports that may also be used to ensure that charge cards are being used only for their intended, official purposes. 

#### Must be the Cardholder's supervisor. 

#### Must approve credit card requests before they are forwarded to the A/OPC for submission to Bank of America (and for the purchase line, forward to the PLCC for processing the delegation of authority).

#### Must review all anticipated software purchases, and communicate with the Information Technology Office on potential compatibility and support issues.

#### Is responsible for assuring that all disputes filed by any cardholder under his/her group have been properly resolved and documented.

#### Is responsible for assuring that the cardholder's account is not past due.

> i\. Authority is delegated to an individual, and not a position. An
> individual acting for another Approving Official must have his/her own
> written Departmental Approving Official delegation.

### Cardholders. Cardholders are responsible for:

#### Making micro-purchases in accordance with FAR Part 13, Department of Interior Acquisition Regulations (DIAR) Part 1413, and Reclamation Acquisition Regulations (RAR) Part WBR 1413. Purchases can be made for supplies or services as authorized, but are limited to the restrictions in this handbook. The Integrated Charge Card is the preferred method for purchases up to \$2,500 (micro-purchase). Requisitions submitted to the Contracting Office, in the micro-purchase range, should be by exception only. Micro-purchases are exempt from the Buy American Act (41 U.S.C. 10a‑l0c) and the small business reserve of the Small Business Act (15 U.S.C. 644 (j). However, the Commissioner has stressed the importance of first seeking a small business source in each and every instance when using the charge card, and using a large business only when it offers significant time or monetary savings. The cardholder should inquire about and use any available rebates or incentives, when it is in the Government's best interest. All rebates and incentives belong to Reclamation.

#### Using their charge card only for official, authorized purposes, verifying all transactions posted to their account, and ensuring that they are within the limits of their delegated authority. The unique charge card that the cardholder receives has his/her name embossed on it and may be used only by that cardholder. No other person is authorized to use the card. 

#### Reviewing all charges from all business lines to ensure that charges are properly charged to either IBA or CBA. Any errors must be reported to the A/OPC. Errors and discrepancies should be promptly identified, and dispute procedures initiated. 

#### Signing and dating their monthly statement and giving it to their Approving Official along with invoices or packing slips supporting each purchase.

#### Compliance with Federal and Departmental regulations, policy, and guidelines related to micro-purchases and the charge card program. 

#### Restricting their purchases and payments to those made within the organizational control of their approving official (except for warranted Contracting Officers).

#### Exercising proper business practices including payment of their individually billed balances on time.

> h\. Your Master Card should only be charged when items are shipped or
> after services are received. If purchases have not been received, but
> appear on the cardholder's Statement of Account, then the cardholder
> should attempt to resolve the matter with the supplier by following
> the normal dispute resolution process.

# OBTAINING PURCHASE AUTHORITY

## Training Requirements. 

### Completion of training in micro-purchase and/or simplified acquisition procedures associated with the charge card is a prerequisite to charge card use. Upon completion of this training, the A/OPC must receive notification from the PLCC prior to adding purchase line authority to any cardholder's account. Reclamation may require periodic refresher charge card training to remind and update cardholders concerning Reclamation specific requirements and procedures, and more recent regulatory changes.

### When micro-purchase authority and/or convenience check authority has been requested for a cardholder, the cardholder must complete Reclamation‑specific training and the on‑line quiz located on the D‑7800, Acquisition and Assistance Management Services website at: [**http://www.usbr.gov/aamsden/BankMain.html**](http://www.usbr.gov/aamsden/BankMain.html) .

## Application.

> An application (Illustration 1) must be completed and forwarded to the
> A/OPC. The A/OPC will notify the PLCC when purchase business line is
> requested. The supervisor must e-mail the A/OPC when purchase line
> authority is requested for an existing charge card or if they want to
> add convenience check authority.

## Delegation of Authority - Cardholder. 

##  {#section-3 .unnumbered}

> The Head of the Contracting Activity has delegated authority to the
> Chief of the Contracting Office (CCO) to issue, amend, or rescind
> delegation of purchase authority to cardholders. Upon completion of
> required training, the CCO shall sign the application copy and notify
> the AOPC via e-mail (designating purchase authority), and assign the
> purchase line credit limit and any usage limitations unique to that
> cardholder. This limit cannot be exceeded unless a revised delegation
> of authority is issued to raise the limit. A single purchase using the
> card may include multiple items. Warranted acquisition cardholders do
> not require a separate delegation beyond their Contracting Officer
> Warrant. Under no circumstances shall a non-warranted cardholder use
> the Integrated Charge Card to make purchases without receiving the
> Delegation of Authority letter.

## Delegation of Appointment Memorandum -- Approving official. 

##  {#section-4 .unnumbered}

> The Department of Interior, Director of Acquisition and Property
> Management will issue an Appointment as Integrated Charge Card
> Approving Official memorandum to all supervisors (see Illustration 2),
> who have 45 days to complete the DOI Integrated Charge Card Approving
> Official Training. The training may be accessed at:
> <http://training.nbc.gov/chargecard> . Approving Officials cannot
> redelegate their appointment or responsibilities.

# HOW TO USE THE PURCHASE LINE AUTHORITY

## Making Purchases.

##  {#section-5 .unnumbered}

> When making purchases with the Integrated Charge Card, all applicable
> Federal, Departmental, and Reclamation acquisition regulations apply.
> Regardless of whether the purchase is made using over‑the‑counter,
> Internet, or telephone procedures, the cardholder shall:

### Ensure that funds are available to pay for the items being purchased prior to making the actual purchase; and

### Purchase from required sources of supply.

## Required Sources of Supply. 

##  {#section-6 .unnumbered}

> The requirement in FAR Part 8, to make purchases from required sources
> of supply shall be followed before purchasing from open market
> sources. These sources, in order of priority, are as follows:

### Supplies carried in the Reclamation warehouse. You cannot purchase any item from outside sources if carried in the Reclamation warehouse. An inventory of items carried in the warehouse may be obtained from your local property office.

### Excess from agency inventory or other agencies.

### Federal Prison Industries (UNICOR): http://www.unicor.gov

### Committee for Purchase from the Blind and Other Severely Handicapped (JWOD) (warehouse supports these): http://www.jwod.gov

### Wholesale supply sources, such as stock programs of the GSA, Defense Logistics Agency, Department of Veteran Affairs, and Military Inventory Control Points Mandatory Federal Supply Schedules: http://www.gsa.gov

## When purchasing from Federal Supply Schedules be sure you:

### Maintain required documentation;

### Distribute repeat buys equitably among qualified suppliers;

### Verify that the quantity, quality, and prices of the items or services furnished by the vendor are in accordance with the sales agreement; and

### Notify the vendor that the purchase is tax exempt (the tax exempt number is on the face of the charge card).

##  Over-the-Counter Purchases

### Do not split requirements to stay within the single micropurchase threshold or the single purchase limit of an individual cardholder (see Splitting Purchases in Part V. A.1.). This includes making several individual purchases by multiple cardholders to avoid consolidating the requirements of an office or location into a larger procurement.

### Ensure that all items purchased over‑the‑counter using the Integrated Charge Card are available immediately.

## Purchases by Telephone. 

##  {#section-7 .unnumbered}

> Oral purchasing may be used to acquire supplies or services that can
> be described in sufficient detail so that the parties to the agreement
> have a clear understanding of what is being acquired. The following
> procedures apply:

### Confirm that the vendor agrees to charge the card only when shipment is made.

### Instruct the vendor that the shipment should be shipped directly to the cardholder or the government location designated by the cardholder and to include the following information on the shipping document or packing slip:

#### cardholder name and office code;

#### building number, room number, street address, city, state and zip for shipment or delivery;

#### cardholder telephone number; and

#### the term \"Charge Card.\" (Inform the vendor not to include your account number on the document.)

### Document the information about the transaction (i.e., date, what was purchased, amount of the purchase.) This information will alert the receiving office and the requisitioner that the supplies or services have been purchased with a purchase card. The cardholder should be aware of express mailed items that do not arrive in the designated time frame and should check with property personnel to see if the item was mistakenly delivered there.

### Ensure that back‑ordered items are placed as a separate order and monitored monthly to assure receipt of product and that the government is not billed until the order is shipped.

### Ensure that all items purchased during one telephone transaction are delivered by the merchant in a single delivery within the 30‑day billing cycle or by the agreed delivery date.

## Purchases by Internet.

##  {#section-8 .unnumbered}

> The Department of the Interior and Reclamation allow the use of the
> charge card over the Internet with thorough oversight and review.
> Internet transactions should be conducted with vendors who have secure
> communications. Know your vendors. Cardholders may check unknown
> vendors through the Better Business Bureau of the state attorney
> general's office. Order only on a secure server. Protect privacy.
> Provide personal information only if it is known who is collecting it,
> why, and how it's going to be used. Guard passwords. When making a
> purchase use different passwords than you use to log onto your
> computer or network. Check shipping and handling fees and do not
> forget to factor these into the cost of the order. Print the internet
> order form with the pricing and confirmation information and retain in
> the purchase file. Periodically, follow up by telephone to make sure
> the transaction was received by the vendor and everything appears to
> be secure. Check your monthly charge card statements carefully.
> Whenever there is a discrepancy, report it to your Approving Official
> and the A/OPC, and complete the "Dispute Form" and fax it to the Bank
> of America.

## Documentation.

### General. Purchase logs are not required if the cardholder attaches all transaction invoices, receipts, copy of the 1099 form when required, and supporting documentation to the corresponding monthly statement. Convenience check carbons should be retained in the check register. This documentation must be submitted monthly to the Approving Official for review and signature. Such documentation shall also be retained for reviews by the PLCC and appropriate officials. All purchases, whether made by the charge card or by check, are counted toward a cardholder's monthly limit. This does not in any way eliminate the requirement for the cardholder to properly account for non‑expendable personal property with the property officer, nor the need for funds control approval.

### Monthly Statement. Each cardholder is required to retain a printed copy of their monthly statement of charges for three (3) years. If, however, Environmental Protection Agency (EPA) funding is used, the statements must be retained for an additional seven (7) years, or ten (10) years total.

### Receipts. It is the cardholder\'s responsibility to retain signed statements and attach all charge slips, register receipts, original receipts, copies of Internal Revenue Service Form 1099 MISC, approval documentation, etc. Among other important purposes, MasterCard charge card receipts are required in order to take advantage of the Master purchase Retail Protection Services, i.e., Purchase Assurance and Extended Warranty (product insurance programs) provided by MasterCard.

### Supplemental Documentation. It is the cardholder\'s responsibility to retain documentation as applicable, including, but not limited to, receipts, packing slips, internet confirmation, receiving reports, waivers, Personnel and Safety Offices\' concurrences/approvals, and when required, determination that appropriated funds may be used. This must be retained with the corresponding monthly charge card statement. This documentation shall be kept for a minimum of 3 years following final payment. Statements, receipts, and other documentation must be made available for audit or review within 48 hours after a request has been received.

### Environmental Protection Agency (EPA) Funds. Documentation for purchases made with Environmental Protection Agency funds must be maintained by Finance for an additional 7 years as required by law. Contact the \"Review and Analysis Team\" in the Finance Office for further requirements on this subject.

## Account Reconciliation/Purchase Disputes.

##  {#section-9 .unnumbered}

> Employees with procurement/payment authority in the purchase business
> line are responsible for timely verification of the accuracy and
> validity of all expenses posted to their charge accounts. Errors and
> discrepancies should be promptly identified and disputed with the
> vendor as appropriate.

## Separation of a Cardholder/Exit Procedures.

##  {#section-10 .unnumbered}

> Notify the A/OPC and the PLCC, if you have purchase line authority, as
> soon as you know you are leaving. Documents will stay with the
> Approving Official when leaving Reclamation. All statements must be
> signed and dated by both the cardholder and approving official.
> Departmental policy requires that charge cards and convenience checks
> be canceled and destroyed, and outstanding balances paid in full as
> part of the exit clearance process. Exit clearance processes shall not
> be considered complete until all outstanding balances on individually
> billed accounts are paid in full. As part of the clearance process,
> Reclamation employees shall surrender their Bank of America
> MasterCard. Unused convenience checks must be returned to the PLCC to
> be destroyed (shredded). The check register should be retained by the
> Approving Official in the cardholder's purchase records and annotated
> that the checks were returned to the PLCC.

## Convenience Checks. 

##  {#section-11 .unnumbered}

> A convenience check is a check provided by Bank of America and issued
> to select purchase cardholders. The convenience check is to be used as
> a means of paying for supplies and services within the micropurchase
> threshold of less than or equal to \$2,500 only to vendors that do not
> accept credit cards, or for other approved purposed that comply with
> the Debt Collection Improvement Act. Payment is limited to \$2,500
> total transaction, not individual payment. This feature will only be
> available to select cardholders who are specifically identified and
> who have completed both the Reclamation online training and/or
> specific training provided by the PLCCs. Existing purchase cardholders
> who subsequently request convenience check authority do not need to
> repeat previously completed training. The check will show the bureau
> name, cardholder\'s name, office address, and a \"not to exceed\"
> amount. Convenience check transactions will appear on the cardholder's
> monthly statement. Because of the fees associated with convenience
> check use, convenience checks shall only be used where a merchant does
> not accept charge cards. Each check issued is assessed a service fee
> at the rate of 1.9 percent of the value of the check.

### Convenience checks may not be used:

#### to make payments against contracts or purchase orders;

#### on online auction sites such as E-bay (to preserve disputes rights afforded with the use of the card);

#### for third party pickup of goods where the charge card is accepted;

#### to write checks to yourself, cash, or any other government employee;

#### for salary payment or cash awards, or any transaction required to be processed through the payroll system;

#### for employee reimbursements;

#### for cash advances, travel related tickets, meals, and lodging related to employee or contractor travel, or rental or lease of vehicles when in travel status;

#### as payments for anything over \$2,500; or

#### to vendors who accept the charge card.

### Only as a last resort may a convenience check be used for:

#### purchase of telephone services;

#### fuel or oil for Reclamation vehicles.

### Staying within your purchase limits. It is imperative that single purchase and monthly limits not be exceeded! Because checks are not subject to electronic approval (swiping through an electronic authorization box) at the point of purchase, it is possible for a vendor to accept a check that exceeds the single purchase and/or monthly limit. This will result in a \"bounced\" check when it is presented to the bank and will be returned for non-sufficient funds. Important Note: This account is different than your personal checking account because unused balances do not accumulate.

### Knowing what your balance is. You are responsible for tracking your individual available balance. Remember any transactions made with your credit card or issued by check will also be counted toward your balance. Checks count against the monthly limit when they actually clear the bank, not when they are written. Therefore, it is important to:

#### allow time for each check to clear, which may overlap billing cycles;

#### ensure you do not exceed your monthly dollar limit in the event all checks clear at once.

#### annotate all destroyed checks in the check register.

### Internal Revenue Service Form 1099 MISC. Information for reporting income to the Internal Revenue Service (IRS) must be obtained when a convenience check is used to purchase services with certain Budget Object Codes (BOC) regardless of the amount.

#### To facilitate the collection of this information, use IRS Form 1099 MISC (Illustration 3). A supply of 1099 forms will be provided with each convenience check account set‑up. Additional supplies are available from your local A/OPC.

#### Complete the Form1099s by filling in all the information as soon as the check is written regardless of the amount and forward the originals to Finance and Accounting Division (FAD), D‑7730, where the information will be entered into the 1099 program in the Federal Financial System (FFS). The FAD must have received all Form 1099s no later than January 5 for the prior calendar year in order to mail the individual Form 1099s to the vendors. 

#### Verifying compliance of the requirement for Internal Revenue Service Form 1099 MISC will be accomplished at the annual review of the purchase line.

#### **Completing Form 1099 MISC**

Most people using convenience checks will not have had any experience
completing IRS Form 1099 MISC. Please note the proper way to fill out
the form. It MUST be completed for each convenience check written using
any of the specified BOCs listed in Illustration 3 except for:

>  Nonprofit organizations
>
>  State or city colleges or universities
>
>  Government entities; local, State or Federal

*RECIPIENT\'S ID:*

The "Recipients ID" is a tax identification number (TIN) which must be
provided by the vendor. This could be either a Social Security Number
(SSN) or an Employer Identification Number (EIN). Individuals should
provide a Social Security Number. A sole proprietor may provide either,
but does not have to provide both. All others should provide an EIN.

*RECIPIENT\'S' NAME, STREET ADDRESS, CITY, STATE, AND ZIP CODE:*

1.  For corporations, enter the business name and address.

2.  For individuals and sole proprietors, use their business or trade
    name if they have one. Also include their legal name and complete
    the address where a Form 1099 should be mailed. If two or more
    individuals own a business, but it is not an IRS‑recognized
    partnership, the names of both are placed in the \"Recipient\'s
    Name\" box. Only the address of the individual to whom the reported
    SSN belongs is to be placed in the \"Address\" box. Income can be
    reported only under one TIN.

3.  For partnerships that do not use a business name, place the names of
    the partners in the "Recipient\'s Name\" box, with the partner to
    whom the IRS assigned the EIN listed first. Enter the address where
    the Form 1099 should be mailed.

*ACCOUNT NUMBER:*

Enter the FFS vendor code number or DUNS Number, if you know what it is.
If not, then leave blank.

*BUSINESS CATEGORY:*

Check the appropriate category.

C*HECK WRITER\'S NAME AND PHONE NUMBER:*

Enter your name and phone number. This is important if FAD needs to ask
a question when entering data in the FFS.

## Card and Convenience Checks Security. 

##  {#section-12 .unnumbered}

> Proper use and safeguarding of charge cards and convenience checks are
> the responsibility of each cardholder. Accordingly, cardholders should
> take appropriate precautions comparable to those they would take to
> secure their personal checks, credit cards or cash. Improper and
> unauthorized use of the charge card or convenience checks may render
> the user personally liable for payment, charge card withdrawal and/or
> disciplinary action pursuant to Federal, Department, and bureau
> standards. (See 370 DM 752, Appendix A, as revised.)

### Lost or Stolen Cards or Convenience Checks. If charge cards or convenience checks are lost or stolen, the cardholder must:

> Notify Bank of America at 1‑800‑472‑1424 (domestic‑toll free call) or
> 1‑757‑472‑4124 (international‑call collect) as soon as they are aware
> of the loss or theft;

#### Notify their supervisor as soon as they are aware of the theft; and

#### Notify their A/OPC within one working day.

### Unauthorized Use. If unauthorized use has occurred, the liability of the cardholder shall not exceed the lesser of \$50 or the amount of money, property, labor, or services obtained before notification to Bank of America. It is extremely important, therefore, that notification either by telephone (numbers indicated above) or in writing, be given to Bank of America with pertinent information regarding unauthorized account usage as soon as a cardholder or Approving Official becomes aware of it.

# PROPER AND IMPROPER USES OF THE PURCHASE LINE

## Prohibited Transactions for the Purchase Business Line.

##  {#section-13 .unnumbered}

> The following transactions shall not be accomplished with a charge
> card:

### Splitting Purchases. Splitting requirements to stay within the single micro-purchase threshold or a cardholder's single purchase limit is expressly prohibited under the Federal Acquisition Streaming Act of 1994 and its implementing regulations. As stated in Section 3.5, "Transactions must not be split into smaller purchases so that each order falls within the single purchase limit. Purposely splitting a procurement may result in cancellation of purchasing authority and disciplinary action." (Please note: An EAGLS report is available to assist in detecting patterns of requirements splitting.) 

#### What does splitting a requirement actually mean? Splitting a requirement is any deliberate attempt to stay within a set dollar limit by altering the method in which you process a requirement. For example, if a cardholder with micro-purchase authority has been given a single requirement to buy two pieces of equipment totaling \$3,000 the requirement would be split if they: (1) used their charge card to purchase one piece of equipment for \$1,500 and asked another co-worker to buy the second piece of equipment or (2) ordered one \$1,500 piece of equipment one day and the second the next day or some time in the near future. Why? The cardholder has been given a single requirement for two pieces of equipment, the total cost of which exceeds his or her micro-purchase authority. Any requirement exceeding a cardholder's micro-purchase authority must be forwarded to his or her servicing procurement office for processing.

#### The following example would not constitute the splitting of a requirement. On August 8, a cardholder is given a requirement to purchase, and orders a \$1,500 piece of equipment for her office. The next day, the equipment of another employee in the same cardholder's office must be replaced. The cardholder is given a requirement to immediately order a replacement. The cardholder would not be splitting a purchase because he or she was given two separate requirements reflecting actual needs arising at different times. In this event, the file should be documented appropriately.

### Any financial assistance agreements (such as, grants, cooperative agreements) or memorandum of understanding (which, by definition, cannot obligate money).

### Architect‑Engineer services as defined in FAR Part 2, including professional surveying and mapping services of an architectural or engineering nature;

\"Architect‑engineer services,\" as defined in 40 U.S.C. 541, means:

#### Professional services of an architectural or engineering nature, as defined by State law, if applicable, that are required to be performed or approved by a person licensed, registered, or certified to provide those services; 

#### Professional services of an architectural or engineering nature performed by contract that are associated with research, planning, development, design, construction, alteration, or repair of real property; and 

#### Those other professional services of an architectural or engineering nature, or incidental services, that members of the architectural and engineering professions (and individuals in their employ) may logically or justifiably perform, including studies, investigations, surveying and mapping, tests, evaluations, consultations, comprehensive planning, program management, conceptual designs, plans and specifications, value engineering, construction phase services, soils engineering, drawing reviews, preparation of operating and maintenance manuals, and other related services.

### Acquisition of firearms and weapons;

### Long term (cumulative total duration of 12 months or longer) rentals, such as, buildings, garages, parking spaces for official vehicles, land, etc.;

> *Question:* Can I rent a construction trailer for over 365 days if the
> total amount is \$2,500 or less?
>
> *Answer*: No, it must be rented through the acquisition office.

### Purchase of major telecommunications systems, (e.g., PBX, voice mail, etc.). Government telephone bills may be paid with the Integrated Charge Card on a monthly basis only after the invoice has been received and reviewed for accuracy. The cardholder will then call the vendor and authorize payment. The card must not be automatically charged each month by the vendor. 

### Supplies carried in the BOR warehouse. You cannot purchase any item from outside sources if carried in the Reclamation warehouse. An inventory of items carried in the BOR warehouse may be obtained from your local property office.

### Printing and copying services. Requirements for printing and copying services, that cannot be done in‑house, must be done by, or through, the Government Printing Office (GPO) except for the following:

#### The copying is done in field printing plants operated by an executive agency (this does not include printing).

#### The GPO cannot provide the copying or printing services and a waiver has been obtained from the GPO through Reclamation\'s local printing representatives. Waiver documentation shall be attached to the appropriate charge card statement.

#### While on travel, Reclamation has a waiver from GPO to purchase copying up to \$25 per transaction on a Government charge card to meet emergency needs.

> d\. Copying is defined as work that is administrative in nature,
> produced on office copying equipment, and produced as necessary in
> limited quantities. Volumes typically range from 1 to 500 single-page
> production units to 2,500 production units in the aggregate of
> multiple pages. This volume standard is referred to as the "500/2500"
> rule.
>
> Requirements meeting this definition that cannot be fulfilled through
> available resources may be referred to a commercial source without
> seeking GPO approval. Only employees with micropurchase authority may
> procure copying under these provisions. Qualifying work must meet the
> following criteria:

-   Quantities must not exceed the "500/2500 copying rule, i.e. you may
    make up to 500 copies of a single page document, or up to 2,500
    total copied pages of a multiple page document, [AND]{.underline}

-   Cost not more than \$500 and must be charged to the employee's
    purchase card, [AND]{.underline}

-   Work is being produced while employee is on official travel or
    attending a conference, OR

-   Resources, including GPO, are not readily available (e.g., within
    the immediate area where the work is required to be accomplished) or
    accessible (e.g., requirements emerge after hours or on weekends) to
    the employee to obtain the work within the required time frame.

> These transactions are to be documented using the "Copy Work Obtained
> From A Commercial Source" form (Illustration 4) to ensure that work
> produced meets the conditions outlined above. The completed forms will
> be maintained with the cardholder's purchase card transactions and a
> copy of the completed form must also be provided to the bureau
> printing officer, D-7921.

### Individual employee expenses such as:

#### Cash Advances (This includes writing a convenience check against one\'s own account to oneself or any other individual for cash advance purposes);

#### Airline, bus, train or other travel‑related tickets;

#### Meals, beverages, lodging or other employee travel or subsistence costs;

#### Commercial vehicle rental/lease;

#### Any individual travel expenses for a DOI employee;

#### Commercial rental vehicle repairs/services for individuals in travel status;

#### Fuel, oil, or repair costs for commercial rental vehicles for individuals in travel status and vehicles in the GSA Interagency Fleet Management System (IFMS).

### Long distance telephone calls. Agencies are required to use the MCI calling card since its use is predicated on a statutory mandate. Public Law 104‑52, Section 629, prohibits the expenditure of funds outside the calling card program unless there is an exception granted by the Administrator of General Services.

### Personal clothing, except items required for performance of the job (safety boots and safety glasses and VDT glasses which may be purchased when the Approving Official has approved and determined the price to be reasonable).

### Personal supplies or services.

## Special Handling or Otherwise Controlled Purchases

### IT equipment over \$2,500 (unless purchased by warranted acquisition personnel). Energy conserving equipment, \"EPA Energy Star\" shall be considered when buying computers and printers. If the equipment cannot be supported (repaired and maintained) by your Information Technology Office, then the office that purchased the equipment will be responsible for finding a company that can support the equipment purchased. If approved by the IRM Office, attach the waiver or approval email with the monthly statement.

### Original software packages that require customizing. Off‑the‑shelf, shrink-wrapped software may be purchased under commercial practices. The cardholder shall coordinate with the Approving Official on all software purchases before the acquisition is made. All anticipated software purchases should be coordinated through the Information Technology Office for potential compatibility and support issues.

### Supplies featuring date/time data processing capability. Before purchasing any supply under \$2,500 that features date/time data processing capability, consult your IT contact for product advice/guidance.

### Wireless equipment (Procured only by Contracting Officers or Regional Radio Coordinator)

#### All wireless equipment, regardless of cost, which utilizes radio frequencies to accomplish its task, must be procured by either the regional radio coordinator or a Contracting Officer after obtaining regional radio coordinator's approval. This assures that all wireless devices have the required radio frequency authorizations or frequency support and are compatible with existing wireless systems. The equipment must also meet the requirements set forth in Departmental Manual 377DMI (Telecommunications Management), the Radio Communications Handbook (377DM), and the National Telecommunications and Information Administration\'s Manual of Regulations and Procedures for Federal Radio Frequency Management (NTIA Manual).

#### The purchase of wireless equipment without frequency authorization is a violation of Federal Regulation. Examples of devices requiring this oversight are HF, VHF, UHF and microwave communications radios, whether voice, data, or telemetry; Differential Global Positioning Systems; audio and video wireless surveillance; wireless local/wide area networks.

#### Low power devices commonly classified by the Federal Communications Commission (FCC) as FCC Type Accepted Part 15 or 90 must also be approved by the regional radio coordinator to prevent the expenditure of funds for equipment which is not afforded protection from interference. Low power devices such as cordless telephones, garage door openers, microwave ovens, and commercially‑provided transmission services such as cellular telephone or radio paging are exempt from this requirement. The Reclamation radio liaison can be contacted by calling the Telecommunications Group at 303‑445‑3313.

### Purchase of Re-refined Oil for use in commercially leased and Interior-owned motor vehicles. Bureau of Reclamation is required to buy and use re-refined oil in its commercially leased and Interior owned motor vehicles to the maximum extent practicable. This mandate is necessary to fulfill the requirements of Executive Order 13101, Greening the Government Through Waste Prevention, Recycling, and Federal Acquisition, and Section 6002 of the Resource Conservation and Recovery Act. The preferred source for supply of re-refined oil is the Defense Logistics Agency - see website: http://www.dscr.dla.mil/environmental.htm

### Other Government- or Department-wide Buying Requirements.

#### As reflected within DOI\'s Integrated Charge Card Program Guidelines (March 2002), full cooperation is needed in the purchase of recycled-content, environmentally preferable, and energy-efficient products. To the extent practicable, cardholders must purchase products which:

##### Are made with recycled content;

##### Have less packaging;

##### Are energy efficient;

##### Do not create hazardous waste; and

##### Incorporate other environmentally preferable attributes.

#### EPA designates recycled-content products which agencies must buy. In addition, GSA\'s \"Environmental Products Guide\" contains information to help you choose environmentally preferable alternatives to these types of products. Information may be accessed at: http://pub.fss.gsa.gov/environ.

### Training.

#### Those who have a specific training warrant of authority from the Bureau Procurement Chief to approve the SF‑182, including training coordinator(s) and/or supervisors in some organizations, may use an Integrated Charge Card to pay for training up to \$25,000, using the SF-182, for Off-the-Shelf training. Contact your local training officer, regarding local authorization procedures. (Note: In the Denver Office, only the training coordinator in the Human Resource Office may obtain training with the charge card.)

#### The purchase of any classes requiring course development or those over \$25,000 must be completed by a warranted contracting officer, or the Regional Training Officer with a specific warrant of authority signed by the Bureau Procurement Chief.

#### An SF‑182 must be completed for all instances of training. If an Integrated Charge Card is used for payment, indicate ICC MASTERCARD in block 23 of the SF‑182. This will ensure that the agency will not make duplicate payments for the same training course and that the training will be properly recorded in the training history.

#### Conferences and seminars that are defined as "information only" may be paid using the Integrated Charge Card by the program offices. If it is determined to be training, an SF‑182 must be prepared. Per the Memorandum Dated July 19, 2001, from the Deputy Assistant Secretary - Budget and Finance, a conference or meeting involving 30 or more attendees must be approved by the equivalent of the Deputy Assistant Secretary. Additional conference planning guidance can be found in the GSA's Federal Travel Regulations Amendment 89 "Conference Planning Implementing Guidance" and at http://www.doi.gov/pfm/fam01-11.html.

#### The paying for or reserving of a block of sleeping rooms may only be done by a warranted contracting officer. 

#### Any hotel contract for conference and sleeping rooms submitted to Reclamation for signature must not be signed. It must be forwarded to a warranted contracting officer to review the terms and conditions and establish a proper Reclamation purchase order.

### Gifts, Entertainment, Meals or Awards 

#### If gifts, entertainment, or awards are purchased with an Integrated Charge Card (ICC) by a non-warranted cardholder, all of the Contracting Officer responsibilities listed in WBR 1417.8003(a) and (b) shall be assumed by the cardholder:

##### To determine whether appropriated funds may be used to contract for gifts, entertainment, or non‑monetary awards, the cardholder shall determine in writing that the acquisition requirement:

###### Is specifically set forth in an appropriation act; or

###### Pursuant to 31 U.S.C. 1301(a), is reasonably necessary to accomplish an authorized purpose or statutory function by:

####### Making a direct contribution to carrying out either a specific appropriation or an authorized Reclamation function for which a general appropriation is available;

####### Not being prohibited by law; and

####### Not being within the scope of another more specific appropriation.

#####  Purchases of gifts, entertainment, or non‑monetary awards shall include written documentation to be maintained in the cardholder's file verifying that the conditions in subparagraphs (a)(1) or (a)(2) above exist. The documentation shall also contain evidence of review and concurrence of the requirement as follows:

#####  By the servicing personnel office (SPO), or other office as may be directed by the SPO, for all proposed purchases pertaining to entertainment under paragraphs (c) through (f) of RAR WBR 1417.8005;

#####  By the SPO, or other offices as may be directed by the SPO, for all proposed purchases of awards greater than \$50 under RAR WBR 1417.8006(b); a signed copy of the DI 451 Award Certification meets this requirement; and

#####  By the regional safety officer for all proposed purchases of safety awards under RAR WBR 1417.8006(c).

#####  The required documentation that appropriated funds may be used, and documented evidence of the review and concurrence by either the service personnel officer or the regional safety officer shall be attached to the monthly statement. SPO cardholders are not required to prepare separate determinations when purchasing awards with their purchase card. Refer to the D‑7800 website at: [http://www.usbr.gov/pmts/acquisitions/1417.html](http://www.usbr.gov/aamsden/1417.html).

#####  The cardholder shall document the determination that appropriated funds may be used, and the review and concurrence by either the servicing personnel office or the regional safety officer. The documentation shall be attached to the corresponding charge card statement.

## Use of Purchase Line When On Travel

> When on official government travel, there are circumstances when you
> are authorized to use the purchase line. See the table below:

##### GENERAL GUIDELINE TO CHARGE CARD USE BY BUSINESS LINE {#general-guideline-to-charge-card-use-by-business-line .unnumbered}

+-----------------+-----------------+-----------------+-----------------+
| Category        | Travel Line     | Purchase Line   | Fleet Line      |
+-----------------+-----------------+-----------------+-----------------+
| Cash advances   | Yes             | No              | No              |
| via ATM based   |                 |                 |                 |
| on M&IE and out |                 |                 |                 |
| of pocket       |                 |                 |                 |
| requirements    |                 |                 |                 |
+-----------------+-----------------+-----------------+-----------------+
| Airline, bus,   | Yes(9)          | No              | No              |
| train, and      |                 |                 |                 |
| other travel    |                 |                 |                 |
| tickets via the |                 |                 |                 |
| TMC             |                 |                 |                 |
+-----------------+-----------------+-----------------+-----------------+
| Lodging and     | Yes             | No (7)          | No              |
| M&IE expenses   |                 |                 |                 |
+-----------------+-----------------+-----------------+-----------------+
| Su              | No              | Yes (6)         | Yes (8)         |
| pplies/services |                 |                 |                 |
+-----------------+-----------------+-----------------+-----------------+
| Vehicle         | Yes             | Yes (1a)        | No              |
| rental/lease    |                 |                 |                 |
+-----------------+-----------------+-----------------+-----------------+
| Vehicle         | No              | Yes (3)         | Yes (3)         |
| repairs/service |                 |                 |                 |
+-----------------+-----------------+-----------------+-----------------+
| Building/land   | No              | Yes (1b)        | No              |
| lease           |                 |                 |                 |
+-----------------+-----------------+-----------------+-----------------+
| Fuel/oil for    | Yes (2)         | Yes (5)         | Yes (4)         |
| vehicles        |                 |                 |                 |
+-----------------+-----------------+-----------------+-----------------+
| Tel             | No              | Yes (1c)        | No              |
| ecommunications |                 |                 |                 |
|                 |                 |                 |                 |
| equipment       |                 |                 |                 |
+-----------------+-----------------+-----------------+-----------------+
| Convenience     | No              | Yes             | No              |
| checks          |                 |                 |                 |
+-----------------+-----------------+-----------------+-----------------+

> \(1\) With limitation
>
> (1a) Vehicle rental/lease used for other than what is normally
> considered as temporary travel transportation
>
> (1b) For lease of building or land less than 365 days.
>
> (1c) Separate invoices must be received and reviewed prior to payment
> -- no automatic monthly payment.
>
> \(2\) Only for a commercial rental vehicle -- use for privately owned
> vehicles is prohibited.
>
> \(3\) Except for GSA Interagency Fleet Management System (IFMS)
> vehicles.

(4) Except for GSA IFMS vehicles with a "wet rate lease" (identifiable
    by the "Voyager" fuel credit card provided by GSA with the vehicle).

> \(5\) Only for Reclamation owned construction equipment.

(6) For non-warranted cardholders purchasing authority may not exceed
    \$2,500 per transaction for supplies and services; or \$2,000 for
    construction.

(7) Except for lodging and meals by fire or emergency crew chiefs for
    members of their crew.

(8) With limitations, see your property office.

(9) Individuals shall not purchase transportation for anyone other than
    themselves. Employees who have been authorized to use \"corporate
    accounts\" are the only personnel authorized to have tickets issued
    to new employees without cards, volunteers and/or invitational
    travelers using those special discounts.

## Frequently Asked Questions 

*Question:* Can I make a donation to a college for mission related work?

*Answer:* No, donations are illegal.

> *Question* I need a consultant to perform an initial study. Based upon
> that study we will then determine whether or not we need a follow on
> task. If needed, each task is approximately \$2,400. Would this be
> considered splitting an order?
>
> *Answer* No. Each is a separate transaction, since it is not known
> going in, whether or not the second task will be required.
>
> *Question* We need to fix a drainage problem. I need a contractor to
> perform an initial assessment how to fix it, and to implement the fix.
> Each task is approximately \$2,400. Would this be considered splitting
> an order?
>
> *Answer*: Yes. You know going in that the requirement is to fix the
> drainage problem, which includes a need for both the assessment and
> implementing a fix.
>
> *Question* I need a contractor to reconfigure an entire building floor
> office layout that will accommodate 3 different organizations. The
> entire reconfiguration will be done at the same time, at a total cost
> of \$7,000. However, each organization is paying for their portion of
> the cost that will not exceed \$2,499. May I place three purchase card
> orders?
>
> *Answer* No. The requirement is to reconfigure the entire floor. How
> the cost will be allocated and the project managed does not affect the
> overall requirement. With the total cost above \$2,500, the
> requirement requires Contracting Officer action.
>
> Question: It's the end of fiscal year, so we are going to purchase a
> new \$1,600 computer for each staff member, plus a few printers, for a
> total cost \$9,500. Can we spread these purchases over several days,
> and/or through our various cardholders?
>
> *Answer*: No. This is splitting orders, and the misuse is compounded
> by trying to hide it. The EAGLS software program shows such purchasing
> transactions.
>
> *Question:* Can I rent a construction trailer for over 365 days if the
> total amount is \$2,500 or less?

*Answer:* No, it must be rented through the acquisition office.

*Question:* Can I purchase a year warranty for the fax machine that I
purchased?

*Answer:* No. Non-warranted cardholders have no authority to commit the
government on a long-term basis. Warranties are to be purchased by
Contracting Officers.

*Question:* Can I use my card to purchase a briefcase or other similar
items with the bureau logo on it for a visiting dignitary or employees?

*Answer:* No.

*Question:* May we purchase promotional items, such as specially made
key chains, mugs, wearing apparel, or tote bags, with or without the
bureau logo for conference/seminar attendees or bureau employees or
visitors?

> *Answer:* Generally no. The General Accounting Office has
> overwhelmingly found \"promotional items\" to be in the nature of
> personal gifts. Appropriated funds may not be used for personal gifts,
> unless, of course, there is specific statutory authority. . If you
> have questions contact, your regional CCO or PLCC, with your specific
> statutory authority citation.

**Play it Safe!**

> *Question:* The complexity and nuances of whether or not something is
> prohibited is complicated. Is there an easy criteria or guide we can
> use?
>
> *Answer:* Yes, when in doubt, play it safe - Call your local Purchase
> Line Card Coordinator or Contracting Officer for assistance.

# CONSEQUENCES OF PURCHASE LINE MISUSE

## Unauthorized Use/Penalties.

### Use of a charge card as a method of procurement or payment does not waive any legislative or regulatory restrictions or requirements. Where applicable, any required waiver, approval or authorization shall be obtained prior to using the charge card for a purchase. The waiver shall be kept with the cardholder\'s record of the purchase and made available to auditors or other Approving Officials requesting such information. Cardholders shall consult with a Warranted Contracting Officer or their A/OPC when there is a question about a potential purchase of a restricted/limited service/supply.

### When using the charge card, a cardholder must comply with all Federal, Departmental, and Bureau prohibitions, controls, limitations, and approval requirements. Intentional use of the charge card by a cardholder for other than official Government business may be considered an attempt to commit fraud against the U.S. Government. This will result in immediate cancellation of the employee\'s card and disciplinary action against the employee under applicable Departmental and Government‑wide administrative procedures, including suspension and/or removal. These instances are also turned over to the IG for investigation. 

### An employee will be personally liable to the Government for the amount of any non‑approved transaction and may be subject to a fine of not more than \$10,000 or imprisonment for not more than 5 years, or both, under 18 United State Code (USC) 287.

### Use of the charge card for official government business that is inconsistent with applicable acquisition laws, regulations, and guidelines (e.g., splitting purchases orders) will be subject to the following penalties:

## Consequences: Suspension or Termination of Purchase Line Authority

### Suspension or termination of the purchase line authority means the cardholder shall no longer have the ability to use the integrated charge card to make purchases. Thus, further purchases must be accomplished either through your local acquisition office or another authorized purchase cardholder. Note: suspension or termination of the purchase line authority does not affect either the travel or fleet business line.

### Suspension or termination for cause must be accomplished in writing by the CCO with a copy to the A/OPC. Patterns of negligence in the use of purchase line authority need not be a prerequisite for immediate suspension or termination of the purchase card for cause. Rather the circumstances should be examined on a case-by-case basis and corrective action taken in a timely and appropriate manner by the CCO. A list of common deficiencies is found in Attachment B. Any strong and effective proactive actions by the cardholder or Approving Official may be considered when applying the remedies for misuse.

### Penalties will result as follows:

#### Cardholders:

1^st^ Deficient Review Report

>  Written notification of misuse shall be given to the cardholder's
> Approving Official, and the A/OPC.
>
>  The Cardholder shall complete and pass a refresher training using
> the Reclamation online purchase card training program or other
> training deemed appropriate by the CCO.
>
>  The cardholder's account records shall be reviewed by the PLCC, or
> another CCO designee, in 6 months to ensure that all misuse incidences
> and issues are resolved.

2^nd^ Deficient Review Report

>  Written notification of misuse shall be given to the cardholder's
> Approving Official, and the A/OPC.
>
>  The cardholder's purchase card shall be suspended for a minimum of 6
> months.

-   The cardholder shall have their account records reviewed by the
    PLCC, or other CCO designee, every 3 months, until all deficiencies
    are resolved, once the purchase card is reissued.

3^rd^ Deficient Review Report

>  Written notification of misuse shall be given to the cardholder's
> Approving Official, and the A/OPC.
>
>  The purchase card is terminated for a minimum of 5 years.

#### Approving Officials

Suspension or termination of the Approving Official's authority means
all purchase cardholders assigned to the suspended or terminated
Approving Official are also suspended until the Approving Official is
either reinstated or a new Approving Official is assigned. Thus, further
purchases must be accomplished either through your local acquisition
office or another authorized purchase cardholder.

Diligent and proper execution of the Approving Officials duties and
responsibilities is paramount to the integrity of Reclamation's and the
Department's Purchase Card Program. Thus, Approving Officials assume
partial responsibility for the actions of cardholders under their
supervision. Failure to control misuse by cardholder(s) under their
supervision, or to maintain required oversight, may result in actions
against the Approving Official. The following guideline shall be
considered by the CCO in those incidences:

1^st^ Deficient Review Report

-   Written notification of deficiency shall be given to the Approving
    Official's supervisor, and the A/OPC.

-   The Approving Official shall complete and pass refresher training
    using the Reclamation online purchase card training or the on-line
    Approving Official Training.

>  The Approving Official shall provide a written corrective action
> management control plan; including quarterly submission of monthly
> review findings, to his/her PLCC.

2^nd^ Deficient Review Report

-   Written notification of deficiency shall be given to the Approving
    Official's supervisor, and the A/OPC.

>  6-month suspension of Approving Official authority.
>
>  6-month suspension of all purchase card designation under his/her
> supervision.

3^rd^ Deficient Review Report

-   Written notification of deficiency shall be given to the Approving
    Official's supervisor, and the A/OPC.

>  A minimum 5 year termination of Approving Official authority.
>
>  1-year suspension of all purchase card designation under his/her
> supervision.

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# ATTACHMENTS  {#attachments .unnumbered}

**Attachment A - List Of Acronyms**

AAMD - Acquisition and Assistance Management Division

A/OPC - Agency/Organization Program Coordinator

BOA - Bank of America

BOC - Budget Object Class

CBA -- Centrally Billed Account

CCO - Chief of the Contracting Office

DIAR - Department of the Interior Acquisition Regulations

EAGLS - Electronic Account Government Ledger System

FAR - Federal Acquisition Regulations

FAD -- Finance and Accounting Division

FFS - Federal Financial System

GPO - Government Printing Office

GEIAA -- Government Employees Incentive Awards Act

IBA - Individually Billed Account

ICC - Integrated Charge Card

PLCC - Purchase Line Card Coordinator

PURLBOOK - Bureau of Reclamation Integrated Charge Card Purchase Line
Handbook

RAR - Reclamation Acquisition Regulations

SPO - Servicing Personnel Office

**Attachment B - List Of Deficiencies**

The following list identifies some of the major circumstances that would
be considered deficiencies under the Consequences: Suspension or
Termination of Purchase Line Authority section of this handbook. This is
list is not all inclusive.

**General:**

 No Approving Official's Corrective Action for Previous Review
Deficiencies

 Fraud

**Purchase Card**

 Letting Others Use Your Purchase Card

 Exceeding the Single Purchase Limits

 Splitting Orders

 Files Not Properly Documented

 Required Program Approval Not on File

 Purchase Card Used for Personal Use

 No Cardholder Corrective Action for Previous Identified Deficiencies

**Convenience Checks**

 Check Written to Employees or for travel related expenses

 Signed Blank Checks (without dollar amount and/or payee)

 Documentation Inadequate to Support Expenditures

 Exceeding Single Purchase Limit

 Issuing Checks to Restricted or Prohibited Sources

 Splitting Orders

 Missing 1099 Form

**ILLUSTRATIONS**

**Illustration 1 -- Charge Card Application**

**To: Agency Program Coordinator Integrated Charge Card**

**Attention: D-7730**

**From: Name:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_**

##  Office mailing Address: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ {#office-mailing-address-__________________ .unnumbered}

**\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_**

**\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_**

**Office Mail Code: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_**

**Subject: Request for Integrated Charge Card**

**[SUPERVISORS MUST ALSO SIGN THE AUTHORIZATION AT THE BOTTOM OF THE
FIRST PAGE OF THE APPLICATION (ATTACHED]{.underline}**

## Illustration 2 - Delegation of Approving Official Memorandum {#illustration-2---delegation-of-approving-official-memorandum .unnumbered}

Memorandum

To: All Department of the Interior Supervisors

From: Debra E. Sonderman, Director

Office of Acquisition and Property Management

U.S. Department of the Interior

Subject: Appointment as Integrated Charge Card Approving Official

You are identified as a supervisor in the Federal Personnel and Payroll
System (FPPS), and as such, you are being appointed as an approving
official for the employees in your unit who have a government MasterCard
issued by the Bank of America. You must file a copy of this notice in
your office files.

You are required to complete the DOI Integrated Charge Card Approving
Official Training within the next 45 days. The training is a self-study
course that may be accessed at
[http://training.nbc.gov/chargecard](http://training.nbc.gov/chargecard/).
This site can only be accessed from a DOI office facility. If you are
unable to access this site, please have your local or bureau LAN
support/telecommunications person contact the NBC ADP Help Desk at (303)
969-7777. If you do not have access to a DOI computer to take the
training, contact your Bureau Agency/Organization Program Coordinator
(A/OPC) to obtain a printed copy.

Your role in management control is vital to the success of the charge
card program. You are responsible for: (1) ensuring that cardholders
receive training on the proper use of the charge card; (2) providing
oversight; and (3) monitoring cardholders\' compliance with applicable
laws, regulations, and procedures.

Except as noted, duties identified in this document may be redelegated
at your discretion. You must ensure that individuals to whom you
redelegate these duties also complete the Approving Official Training.
However, as the designated approving official and supervisor, you are
ultimately responsible for ensuring that these duties are carried out
properly and effectively.

I strongly urge you to meet with your cardholder(s) and discuss when the
charge card may be used and the types of transactions you will approve.
Further information regarding your roles and responsibilities as an
approving official is outlined below and contained in the DOI Integrated
Charge Card Program Guide. The Guide is available online at
[http://www.doi.gov/pam/chargecard](http://www.doi.gov/pam/chargecard/).

Questions regarding the propriety of transactions should be addressed to
your financial and/or acquisition specialists. Questions regarding the
Integrated Charge Card Program should be addressed to your
Agency/Organization Program Coordinator (A/OPC) or fleet manager, as
applicable.

You are required to report any suspected and/or confirmed charge card
misuse to the Office of Inspector General (OIG) for further review. The
24-hour toll free hotline number for the OIG is 1-800-424-5081. If you
are not the cardholder\'s supervisor, you must counsel or advise the
cardholder\'s supervisor regarding any misuse and/or payment delinquency
by a cardholder.

If you believe you have received this letter in error and you are not a
supervisor of employee(s) with government MasterCard charge cards issued
by Bank of America, please contact your bureau lead Agency/Organization
Program Coordinator.

**Approving Official Duties and Responsibilities**

Your duties and responsibilities as an approving official include but
are not limited to:

**Card Setup**

-   Authorize and approve cardholder applications including
    determination of which business lines (purchase/travel/fleet) will
    be authorized, single purchase and spending limits, etc., before an
    employee may be issued a card (note: this duty may not be
    redelegated).

-   Approve or deny reinstatement applications for accounts that were
    previously cancelled (note: this duty may not be redelegated).

**Statement Review and Approval**

-   Review cardholder statements of account and supporting documentation
    on a monthly basis, at a minimum.

-   Sign the front of each cardholder\'s statement of account as
    indication that you approve all transactions as being needed to
    support the office mission (note: this duty ***may not*** be
    redelegated).

**Preventing Misuse and Dealing With Issues**

-   Investigate and report instances of apparent charge card misuse to
    the Office of Inspector General. Consult your human resources staff
    and agency/organization program coordinator (A/OPC) for assistance
    in resolution.

-   Watch spending patterns and vendor sources (a sudden unexplained
    increase in purchases or charges, or questionable vendor sources,
    may indicate a problem).

-   Ensure employees are correctly trained in the proper use of the
    charge card.

-   Counsel employees regarding possible adverse actions resulting from
    a past due balance.

**Administrative**

-   Ensure that any duties or responsibilities that you redelegated are
    being carried out properly and effectively.

-   Ensure that accountable/sensitive property is entered into your
    Bureau/Office property system.

-   Ensure that cardholders comply with statement reconciliation
    timeframes and procedures.

-   Ensure that records are properly maintained and retained in
    accordance with Bureau and office policy.

**Closing Accounts**

-   Notify the A/OPC when a cardholder leaves the office, transfers,
    resigns, or no longer has a need for a card.

## Illustration 3 -- IRS Form 1099 MISC {#illustration-3-irs-form-1099-misc .unnumbered}

[Form 1099](../1099form.doc)

## Illustration 4  {#illustration-4 .unnumbered}

Copy Work Obtained From A Commercial Source

In accordance with 314 DM 10, copy work was obtained as provided below.

**Criteria:**

-   Quantities must not exceed the "500/2500" copying rule; AND

```{=html}
<!-- -->
```
-   The cost not exceeding \$500 is charged to the employee's purchase
    card; AND

-   Work is being produced while employee is on official travel or
    attending a conference; OR

-   Resources (including GPO) are not readily available (e.g., within
    the immediate area where the work is required to be accomplished) or
    accessible (e.g., requirements emerge after hours or on weekends) to
    the employee to obtain the work within the required time frame.

**Email this form to:(Bureau Printing Officer)**

###  DI Form XXXXR

*This form is reproducible and intended for use electronically.*