# Presentation: 040081

## Introduction to the

**MARAD**
**Purchase Card Program**

**Rita Thomas**
**Office of Acquisition**
**Maritime Administration**
**Rita.Thomas@dot.gov**

**Module 1    Chapter 1**
**December 14, 2005**

## Introduction to the MARAD Purchase Card Program

**Introduction to the MARAD Purchase Card Program**

**Agenda:**
**Regulation Web Sites**
**What is the Purchase Card Program**
**About the Convenience Checks**
**Who Administers the Purchase Card Program**
**Frequently Asked Questions**

**MARAD Purchase Card Program**
**Chapter 1**

## Web Sites For Regulations

**Web Sites For Regulations**

**1.  Federal Acquisition Regulation –  **_**www.arnet.gov/far**_** **
**2.  Transportation  Acquisition Regulation  –  **_**www.dot.gov/ost.m60**_**  **
**3.  MARAD Intranet  -  **_**intramarad.dot.gov**_
**4.  Small Business Administration  -  **_**www.sba.gov**_** **

## What is the Purchase Card Program?

**What is the Purchase Card Program?**

- Quick description  -
- 	The Purchase Card Program allows you to make Gov’t purchases
- 	(within restrictions) using a credit card.

- Benefits -
- Purchase orders not necessary for micro purchases (under $2,500)
- Appropriately warranted officials may use card for larger $ purchases
- Lowers costs associated with processing small purchases
- Shortens acquisition lead time
- Purchases automatically recorded in U.S. Bank database (not subject to FPDS reporting)
- Payments are made using electronic funds transfer.
- Background  -
- 	In 1998  -  OMB designated GSA to manage the Program
- 	In 2004 -  DOT selected U.S. Bank (MasterCard)

## 	A:  No.  You cannot use the Purchase Card for Gov’t travel.

**About the Convenience Checks **

- 	Q:  Is the Purchase Card the same as the Gov’t Travel Card?
- 	A:  No.  You cannot use the Purchase Card for Gov’t travel.
- 	Q:  Are Convenience Checks Available to MARAD Cardholders?
- 	A:  Yes.  In cases where your credit card is not accepted, our 	agency permits the use of convenience checks.  Convenience 	checks are to be used _only_ as a last resort.
- 	The purchase card contractor will provide a supply of checks to 	designated cardholders drawn on the cardholder's purchase card 	account. The checks will be processed as they are presented for 	payment.
- 	Convenience checks are multi-copied (one copy for the 	cardholder's records, the original for the merchant).
- 	There is a 2% fee charged to the total dollar amount when writing 	convenience checks.

## Who administers the Purchase Card Program?

**Who administers the Purchase Card Program?**

- _GSA_ is the contracting agency for the entire program.Each agency defines its internal policies & procedures.
- _U.S. Bank_ 	-  Provides credit for MARAD Gov’t Purchase Card uses	-  Maintains all account; issues cards to cardholders	-  Provides online transaction reconciliation (Access Online     	  	   System)	-  Pays merchants	-  Investigates disputes.
- _Office of Acquisition_	-  Delegates limited contracting authority to cardholders	-  Receives written requests for proposed cardholders	-  Forwards requests to U.S. Bank for processing	-  Reviews card use - Audits	-  Revokes cards if abuse is discovered	-  Acts in an advisory capacity

## Who administers the Purchase Card Program?      (continued.....)

**Who administers the Purchase Card Program?**      (continued.....)

- _Agency Program Coordinator (APC)_Is the official liaison between DOT, GSA, and U.S. Bank.
- The APC for MARAD is:
- 				Rita C. Thomas
- 				Office of Acquisition
- 				Program Analyst
- 				400 - 7th Street, SW
- 				Washington, DC  20590
- 				Telephone:  (202) 366-2802
-       In the absence of the APC, contact Wayne Leong, at (202) 366-5620

## Organizational Structure (MARAD’s Purchase Card Program)

**Organizational Structure** (MARAD’s Purchase Card Program)

## Frequently Asked Questions

**Frequently Asked Questions**

**Q:  May I contact the Purchase Card Contractor Directly?**
**  ****A:  **You may contact the purchase card contractor to report a lost or
-         stolen card and for general information.  U.S. Bank 1-888-994-6722
**Q:  Who is eligible to Use the Card?**
**  ****A:  **Cardholders in Headquarters Program Offices or Field Program
-         Offices who have been trained to use the purchase card.
**        **Approving Officials in Headquarters Program Offices or Field
-         Program Offices who have been trained to use the purchase card.
** **
-       * Approving Officials _are not_ authorized to use their cardholder’s
-        purchase card to make purchases.

## Frequently Asked Questions           (continued.....)

**Frequently Asked Questions****           **(continued.....)

**Q:  How Can I Get a Card?**
- A:   Program Offices and Field Program Offices must submit a memo to
-        the Director, Office of Acquisition-MAR-380/Washington, DC.
- 	Memo must include:
- 		(1)  Name of proposed cardholder and approving official.
- 		(2)  Request for delegation of procurement authority.
- 		(3)  Monthly spending limit.
- 		(4)  Single spending limit.	(5)  What type of supplies/services the card will be used for.
- 	  (6)  MAR/MRG Code.
- 	  (7)  Accounting string that will be applied to the purchase card.
- The memo must accompanied by evidence of completed purchase card training.  The APC will complete appropriate forms and forward to U.S. Bank.  Card is mailed to cardholder within 2 weeks.  Cardholder should sign the card immediately.  Activate the card by calling the 800 number provided on the card.

## Frequently Asked Questions             (continued.....)

**Frequently Asked Questions****             **(continued.....)

**Q:   Should merchants keep your purchase card information in their files  **
**        ****for future purchases****?**
-  A:  No, you as a cardholder must tell the merchants not to keep any of your
-       purchase card  information in their files for future orders.
**  ****Q:  Should Government Purchase Card Cardholders pay taxes for  **
**        ****purchases made with the Government purchase card?**
-   A: Government Purchase Card Cardholders should _never_ pay state or local
-         taxes for purchases made for the Government.  (See Attachment A - State
-          Tax Letter – GSA’s request letter to the states, asking them to continuing to
-          extend tax exemption status to the federal government credit card purchases)

## END

**Module 1 Chapter 1**
**Introduction to the**
**MARAD**
**Purchase Card Program**

- Rita Thomas
- Office of Acquisition
- Maritime Administration
- Rita.Thomas@dot.gov

## Purchase Card Program

**Duties and Responsibilities**

**Rita Thomas**
**Office of Acquisition**
**Maritime Administration**
**Rita.Thomas@dot.gov**

**Module 1  Chapter 2**
**December 14, 2005**

## Purchase Card Program  -  Duties and Responsibilities

**Purchase Card Program  -  Duties and Responsibilities**

**Agenda:**
**What Training is Necessary**
**Approving Official Duties and Responsibilities**
**Cardholder Duties and Responsibilities **

**MARAD Purchase Card Program**
**Chapter 2 **

## What Training is Necessary?

**What Training is Necessary?**

- If you are a proposed cardholder or approving official, you must successfully complete the Purchase Card Training before applying for your card.
- Purchase Card Program Team Personnel are:
- Agency Program Coordinator - Rita C. Thomas
- Fund Control Officer - Velma Marshall/Mark Truffer
- Property Control Officer - Jimmie Gleaton
- Accounting Officer -  John Hoban/Osvaldo Jorge
- Dispute Officer - John Hoban/Rita C. Thomas

## Approving Official  -  Duties and Responsibilities

**Approving Official  -  Duties and Responsibilities**

- The Approving Official oversees and reviews purchase card purchases
-  and the associated documentation maintained by cardholders.
- Each approving official:
- Reviews cardholder’s electronic transactions and any additional purchase documentation, such as receipts and purchase request.
- Timely approves the cardholder's transactions and ensures that purchases are not being split and payments are for purchases which are authorized and made in accordance with procurement regulations;

## Approving Official  -  Duties and Responsibilities  (continued.....)

**Approving Official  -  Duties and Responsibilities**  (continued.....)

- Initiates issuance of purchase cards, upon termination collects       purchase cards and forwards to the APC, and removes individuals from the purchase card program when appropriate;
- (4)  Initiates possible disciplinary actions against abusing cardholders.
- Ensures that the inventory and disposition of all items, in particular non-consumable items such as capital equipment, are in accordance with applicable property management regulations.
- No cardholder can be his or her own approving official.
- If you are an approving official, you cannot designate any person to           whom you are subordinate as a cardholder.

## Cardholder  -  Duties and Responsibilities

**Cardholder  -  Duties and Responsibilities**

** **    Cardholder must comply with all applicable regulations and procedures such as the Federal Acquisition Regulations, Department of Transportation Acquisition Regulations and Maritime Administration Guidance.
-      Cardholders are the Government’s legal agent for each purchase made with the purchase card.  You are legally responsible and accountable for each transaction.
- Verify the accuracy of your name and address**;**
- Call the toll-free number provided by the purchase card contractor to confirm receipt of your card and to activate your account**;**
- Sign the card and**;**
- Review cardholder guide provided by the card contractor**.**

## Cardholder  -  Duties and Responsibilities       (continued.....)

**Cardholder  -  Duties and Responsibilities**       (continued.....)

**Each Cardholder is responsible to:**
- Secure the card
- Maintain a purchase card log
- Ensure funds availability before purchase
- Use the purchase card strictly in accordance with all governing guidelines
- Compare prices
- Observe all dollars limits on purchases
- Use card ethically
- Obtain a receipt at the point of purchase and verify it for accuracy
- Notify U.S. Bank Government Services of any billing discrepancies posted on your cardholder statement that cannot be resolved with the merchant
***	****	**	**	**	**	**        *
***	******	******	******	******	******	******	******            ***

## Cardholder  -  Duties and Responsibilities  (continued.....)

**Cardholder  -  Duties and Responsibilities**  (continued.....)

- (10) Reconcile, approve and forward all transactions to the Fund Control  Officer
- (11) Follow up on all your purchases for delivery
- (12) Follow up on all parties involved in the transaction approval process
- (13) Do not allow any member of your staff, family or supervisor to use your card.  You alone, are authorized to use _your_ card
***	****	**	**	**	**	**        *
***	******	******	******	******	******	******	******            ***

## Cardholder  -  Duties and Responsibilities  (continued.....)

**Cardholder  -  Duties and Responsibilities**  (continued.....)

**Each Cardholder**
- Resolves problems with the merchant, such as an incorrect amount charged for goods or services received, and assist the purchase card contractor with any investigation of disputed charges; and
- Must cut in half and return the purchase card through the approving official and reconcile transactions, upon termination of employment or no longer participating in purchase card program.

## END

**Module 1 Chapter 2**
**Purchase Card Program**
**Duties and Responsibilities**

- Rita Thomas
- Office of Acquisition
- Maritime Administration
- Rita.Thomas@dot.gov

## Using the Purchase Card

**Rita Thomas**
**Office of Acquisition**
**Maritime Administration**
**Rita.Thomas@dot.gov**

**Module 1 Chapter 3**
**December 14, 2005**

## Using the Purchase Card

**Using the Purchase Card**

**Agenda:**
**Purchase Limitations**
**Types of Merchants  **
**Strictly Prohibited Purchases **
**Guidelines for Using the Purchase Card**
**Oral Purchase Procedures**
**What Documents to Maintain**
**Procedures for Tracking, Receiving and Acceptance of Purchases**

**MARAD Purchase Card Program**
**Chapter 3**

## Single Purchase Limit

**Single Purchase Limit**

_**Single Purchase Limit**_** -   **
- Is the limit on the procurement authority delegated to the Cardholder.
- Do not exceed unless revised delegation of authority is issued by the Director of Acquisition.
- A single purchase may include multiple items.  However no single purchase shall exceed the authorized single purchase limit.
- The single purchse limit is
- Up to $2,500 for program office personnel
- Up to $100,000 for personnel possessing appropriate warrant authority.

## Monthly Limit

**Monthly Limit**

_**Monthly Cardholder Limit –**_
- Budgetary limit established for the cardholder
- The monthly limit represents the cumulative dollar limit for your purchases in one month
- It may be set to any dollar amount equal to or greater than single purchase limit
- Total $ value of monthly purchases cannot exceed this limit

## Purchase  Limits

**Purchase  Limits**

**	**If you attempt to make a purchase not within your dollar limits, the purchase card transaction will automatically be rejected at the point of sale.
- 	If your office has a request to temporarily raise the monthly
-        limit, contact the APC at (202) 366-2802.

## What Types of Merchants Can I Purchase From? 

**What Types of Merchants Can I Purchase From? **

- Mail order houses, subscription;
- Discount/department stores, miscellaneous general merchandise, duty free stores;
- Miscellaneous and specialty retail stores - lumber/hardware, lawn, garden, clothing, home furnishing and equipment, household supplies;
- Government services not elsewhere classified; and
- Miscellaneous business services.

## What Types of Merchants Can I Purchase From?     (continued.....)

- _____________________________________________________________

- Any business supply or service may be purchased, as long as regulations applicable to that specific item or service are followed.
- Examples:
-   If you are purchasing information technology ( computers, videos and DVDs, facsimile, printers, telephones, software, and many other products along with IT services), the products/services you purchase must conform to the technical standards of Section 508 of the Rehabilitation Act, or you may be subject to a complaint requiring you to replace the products.  www.section 508.gov includes more information on this law and resources to help you buy products/services that comply with the accessibility requirements of section 508.
- Please contact the Chief Information Officer (CIO) (MAR-340) for approval before purchasing information technology.  Cardholders must ensure the IT checklist is completed and signed by the CIO.  CIO’s approval of the check list constitutes approval of the purchase.

## What Types of Merchants Can I Purchase Form?     (continued.....)

- _____________________________________________________________

- Prior to purchase of property items you must get approval from the
-   Office of Management Services (MAR-310).
- Buy Green
- When you use your purchase card to buy “green” products, you and your agency are helping to perform the mission in a cost-effective manner, enhancing energy security, creating markets and promoting environmental stewardship.
- Recyclable or recycled materials will be purchased to the maximum extent practicable, consistent with Federal law and procurement  regulations - “RCRA, section 6002”, such as paper, toner cartridges etc..

## What Types of Merchants Can I Purchase Form?     (continued.....)

- _____________________________________________________________

- (A).  Buying recycled content products
- The Resource Conservation and Recovery Act requires the purchase of recycled content products designated by the Environmental Protection Agency (EPA).  The EPA maintains a list of designated recycled-content products and recommends recycled-content levels that you should use when buying these products.  To date, 54 recycled content products in 8 categories have been designated ranging from construction products to office products.  Example of recycled content products are recycled content copier paper and re-refined lubricating oil.  Refer to _[www.epa.gov/cpg](http://www.epa.gov/cpg)__ for list of products, EPA’s recommendations, and additional information_

## What Types of Merchants Can I Purchase Form?     (continued.....)

- _____________________________________________________________

- (B).  Buying biobased products
- Go to _[www.ofee.gov](http://www.ofee.gov/)__ and click on Green Purchasing for additional information._
- (C).  Buying energy efficient products
- Refer to _[www.eren.doe.gov/femp/procurement](http://www.eren.doe.gov/femp/procurement)__ for efficiency recommendations, cost-effectiveness examples, buyer tips, product sources, and for additional information._
- (D).  Buying environmentally preferable products
- Refer to _[www.epa.gov/oppt/epp](http://www.epa.gov/oppt/epp)__ for summaries of the pilot projects, sample contract language, standards information, product sources, and additional information._

## Strictly Prohibited Purchases  

**Strictly Prohibited Purchases  **

**These items are NEVER to be purchased using the purchase card:**
- (1)	Personal Purchases
- (2)	Cash Advances
- (3)	Advance Payments
- (4)	Airlines, Bus, Boat, or Train Tickets
- (5)	Rental or Lease of Motor Vehicles on official Travel (exception on bus rental for Maritime hosted events or for the transport of the USMMA midshipmen)
**	****	****	****	****	****	****	****	**

## Strictly Prohibited Purchases                               (continued.....)

**Strictly Prohibited Purchases                               **(continued.....)

- (6)	Lodging, Travel Expenses, Beverages or Meals (excluding conference rooms, meetings spaces, and local transportation services such as metro farecards, subway tokens etc.)
- (7)	Rental or Lease of Land or Buildings
- (8)	Telecommunications (telephone) Services, i.e., major systems such as FTS 2000 or DSN
- (9)	Repairs on Motor Vehicles in the GSA Fleet Management Program and or Department owned or Commercially leased vehicles.  (Exceptions, when authorized, are MARAD owned vehicles over 10 years old where repairs do not exceed $1,500.00 per year)
- Temporary Secretarial Support Services
- IT equipment or services not coordinated with the Office of Chief   Information Officer (MAR-340)

## Can I Buy Services? 

**Can I Buy Services? **

- Yes.
- Your purchase card can be used to purchase services that comply
- with the dollar limitations, merchant category restrictions and
- authorized uses of the card.

## About Your Government MasterCard 

**About Your Government MasterCard **

- Your Government MasterCard:
- Has your name embossed on it;
- May only be used by you; and
- Shows the seal of the U.S. and the words "United States of America" imprinted on it to avoid being mistaken for a personal credit card.
- Use of the purchase card should be consistent with:
- Established guidelines for required  sources of supply and applicable acquisition procedures
- The acquisition rules established in the Federal Acquisition Regulations (FAR)
- Agency/Organization policies and procedures.

## Guidelines for Using the Purchase Card

**Guidelines for Using the Purchase Card**

**  **
-          Use the MARAD Purchase Card Checklist.  (See  - Attachment B )
-          _FAR Part 8_ – Required Sources of Supplies and Services
-    The Federal Acquisition Streamlining Act did not abolish the priorities for use of the Government supply sources as stated in Part 8 (Required Sources of Supplies and Services) of the Federal Acquisition Regulations.  Micro-purchases are not exempt from this requirement.  The following information is provided to assist you in locating sources that can supply required supplies and services.

## Guidelines for Using the Purchase Card      (continued.....)

**Guidelines for Using the Purchase Card      **(continued.....)

**Required Sources:**
- Committee for Purchase from People Who are Blind or Severely Disabled* - www.jwod.gov or call (703) 603-7740
- National Industries for the Blind - www.nib.org or call (800) 433-2304.
- NISH - www.nish.org or call (703) 560-6800
- GSA Products and Services o GSA Advantage! Http://www.gsaadvantage.gov/ or call (800)525-8027 or fax (800) 856-7057
- GSA Federal Supply Schedules- http://fss.gsa.gov/schedules/ or call (800) FSS-0070
- Federal Prison Industries, Inc. - www.unicor.gov or call (800) 827-3168
- Excess supplies from other agencies - http://fss.gsa.gov/property/ or call (703) 305-7240

## Guidelines for Using the Purchase Card      (continued.....)

**Guidelines for Using the Purchase Card      **(continued.....)

**     ****Open Market Purchases:**
-      If you are not required to get quotations, can you always buy from the same source?
-      Part 13.202(a) of the Federal Acquisition Regulations recommends that micro-purchases be equitably distributed among qualified merchants to the extent practicable.

## Oral Purchase Procedures

**Oral Purchase Procedures**

**	****When to use oral purchase procedures:**
**	**An oral purchase requires no written purchase order or contract.      You may make an oral purchase when your requirements can be described in sufficient detail so that the vendor has a clear  understanding of what is required, and if the vendor does not need a written purchase order or contract.

## How to use Oral Purchase Procedures

**How to use Oral Purchase Procedures**

_**You must**_**:**
- Contact the merchant and identify yourself as a Government employee who is making a purchase with a Government purchase card.
- Indicate that the purchase will be tax exempt. (**See attached State Tax Exemption Letter – GSA’s Request Letter)**
- Verify the quantity and quality of the items or service agreement with the merchant;
- Ensure that all items purchased are immediately available.  _***No splitting or backordering***_* of purchases is permitted*;
- Note the purchase in your purchase log.  Your log must be maintained electronically in the Purchase Card Reconciliation System (PCRS) accessible via the VOA at _[http://voa.marad.dot.gov](http://voa.marad.dot.gov/)__ _

## (f)   For telephone and mail order  -  ask the merchant for the total including any shipping and handling charges at FOB destination. Also request that a copy of the charge slip be delivered with merchandise and ask not to be billed until shipment has occurred.

**How to use Oral Purchase Procedures        **(continued.....)

- (f)   For telephone and mail order  -  ask the merchant for the total including any shipping and handling charges at FOB destination. Also request that a copy of the charge slip be delivered with merchandise and _ask not to be billed until shipment has occurred._
- (g)   Request that the merchant to _do not keep any of your purchase card  information_ in their files for possible future purchases from you.
- (h)   Use your government address for all shipment of supplies or services**.**
- (i)    Record the purchase in your purchase log**.**

## More about Oral Purchase Procedures 

**More about Oral Purchase Procedures **

- At the time the merchant obtains credit card authorization, the contractor’s authorization system automatically checks your purchase limits and merchant restrictions.
- If the purchase is outside any one of the established limits, it will automatically be rejected at the point of sale.
- Merchants who accept credit cards pay the credit card contractor an administrative fee.  Ensure that this fee is not added to the total price.

## What Documentation to Maintain

**What Documentation to Maintain**

_**You must**_**:**
- Document the reason for buying from lower priority or non-mandatory source;
- Obtain price competition from two or more sources for purchases above the micro-purchase threshold; ($2,500)
- Document that the price paid is fair and reasonable;
- Report all accountable personal property items to the responsible administrative officer for inclusion in inventory;
- Track all purchases made along with the purchase card’s remaining balance;
- Maintain a purchase card log**; **and

## What Documentation to Maintain                     (continued.....)

**What Documentation to Maintain                     **(continued.....)

_**Keep Your Records**_**:**
- g.    Keep all necessary information on each purchase card transaction.  You must have the following information:
-  The item purchased (including a description, unit number and quantity)**;**
-  The amount of the purchase**;**
-  The name of the merchant;** **and
-  The date you received the item purchased**.**
-        Failure to retain records can result in excess administrative burden when you attempt to reconcile your monthly transactions.

## Procedures for Tracking, Receiving and Acceptance

**Procedures for Tracking, Receiving and Acceptance**

- Instruct the vendor to include the following information on the shipping document or packing slip:
-   Cardholder's name, mail code, and telephone number**;**
-   Work address street address, city & state**; **and
-   Purchase card order/delivery number.
- If item is picked up, the cardholder must sign the packing slip or sales receipt, and maintain for reconciling cardholder statement.
- Acceptance is verifying that the supply or service actually does meet the minimum requirements of the Government and that the bill should be paid in full.  Also as part of the acceptance procedure, you should report equipment that you ordered and accepted to your Property Officer for inventory management purposes.  Mark your records as _completed._

## END

**Module 1 Chapter 3**
**Using the Purchase Card**

- Rita Thomas
- Office of Acquisition
- Maritime Administration
- Rita.Thomas@dot.gov

## Recognizing / Reporting

**Fraud and Misuse**

**Rita Thomas**
**Office of Acquisition**
**Maritime Administration**
**Rita.Thomas@dot.gov**

**Module 1    Chapter 4**
**December 14, 2005**

## Recognizing / Reporting Fraud and Misuse

**Recognizing / Reporting Fraud and Misuse**

**Agenda:**
**What is Fraud?**
**Recognizing Fraud **
**Reporting Fraud**
**Penalties for Misuse**

**MARAD Purchase Card Program**
**Chapter 4**

## What is Fraud? 

**What is Fraud? **

_**Fraud **_
- Is any felonious act of corruption or attempt to cheat the Government or corrupt the Government's agents.
- May be committed either by Government employees or by merchants.
-        There are two responsibilities each cardholder has relative to fraud:
- 	 (1)  You must be alert to the indicator of fraud, and
- 	 (2)  You must report suspected fraud immediately.

## Recognizing Fraud 

**Recognizing Fraud **

**       ****Indicators of potential fraud by Government ****E****mployees include:**
- Splitting requirements to get under the micro-purchase threshold;
- Making false statements about what was purchased or how the purchase card was used; and
- Using the purchase card for prohibited purchases.

## Recognizing Fraud                    (continued.....) 

**Recognizing Fraud                    **(continued.....)** **

**Indicators of ****Merchant**** fraud include:**
- False charges/transactions
- Mischarging
- Bribes and gratuities
- Kickbacks

## Reporting Fraud 

**Reporting Fraud **

-    You must report all indicators of fraud.
-    Identify the responsible official(s) and report them through the proper channels.
-    You can make reports to any of the following as appropriate:
-   Your Approving Official
-   Your APC
-   Paying/Finance Officer
-   Office of the Inspector General (call the hotline)
-   Office of Special Investigations (for Defense agencies)

## Penalties for Misuse 

**Penalties for Misuse **

**Extent of MARAD Liability.**
- MARAD is liable only for authorized use of Government purchase cards by authorized cardholders.
- MARAD shall not be liable for intentional use of a purchase card to obtain items not authorized for purchase.
-        This is considered an attempt to commit fraud against the U.S. Government and could result in the following actions against the cardholder.
- Immediate cancellation of the purchase card;
- Immediate disciplinary action for unauthorized or careless use;
- Liability to MARAD for the total dollar amount of the unauthorized purchase, and/or
- A fine of not more than $10,000, imprisonment for not more than 5 years, or both under 18  U.S.C. 287.

## END

**Module 1 Chapter 4**
**Recognizing / Reporting**
**Fraud and Misuse**

- Rita Thomas
- Office of Acquisition
- Maritime Administration
- Rita.Thomas@dot.gov

## Cardholder Statement/Transactions

**Rita Thomas**
**Office of Acquisition**
**Maritime Administration**
**Rita.Thomas@dot.gov**

**Module 1    Chapter 5**
**December 14, 2005**

## Procedures After Purchases

**Procedures After Purchases**

**Agenda:**
**Statements**
**Electronic Access**
**Procedures for Processing Statement/Transactions (Cardholder)**
**Procedures for Processing Statement/Transactions (Approving Official)**
**Disputed Items**

**MARAD Purchase Card Program**
**Chapter 5**

##  Statements

** ****Statements**

- At the close of each billing cycle, the 19th of each month you will receive a
- statement via email.  The Approving Officials will receive notification that
- statements were sent to their cardholders.  The Cardholder statement will
- itemize each transaction that was posted to your purchasing card during
- the past billing cycle.  You process your statement or daily transactions by
- using electronic access.

##  Electronic Access

** ****Electronic Access**

- Access to your account and transactions information can be obtained
- through the U.S. Bank electronic Access System.  Based on MARAD’s
- policies and procedures, the U.S. Bank electronic Access System enables
- Cardholders to:
- Review and approve transactions
- Initiate transaction disputes
- Reallocate charges to specific accounting codes
- Enhance transaction data

## Procedures for Processing Statement/Transaction (Cardholder)

**Procedures for Processing Statement/Transaction (Cardholder)**

**The Cardholder Must**:
- Review and verify all charges and credits on the billing statement/transactions purchase card account  in concert with the receipt and supporting documentation.
- Verify that you receive a credit for a returned or canceled item, and that the credit is reflected on the statement/transaction purchase card account.
- Retain the transaction documentation, match with the purchase or credit that appears on the statement/transaction account.
- If for some reason you do not have documentation of a transaction, document the explanation to includes a description of the item, date of purchase, merchant’s name and why there is no supporting documentation**.**
- Confirm or change accounting data into U.S. Bank Access Online System.**	****	****	**
**                                                                          **
**                                                                                          **

## Procedures for Processing Statements/Transactions (Cardholder)

**Procedures for Processing Statements/Transactions (Cardholder)**

- (continued....)
- 6.    Notify the Dispute Officer or the APC to help resolve purchases or credits that do not appear on the subsequent monthly statement or is not part of your purchase card  transaction account.
- 7.    Approve and forward  via Access Online all transactions to your Fund Control Officer (FCO) for their review and approval.
- 8.    Forward all supporting transaction documentation to your approving official for review and approval.  *       What If I’m Absent?  If you cannot review the statement or **	**transactions when received, the approving official must review and **	**approve the statement or transactions.  Upon your return, the **	**approving official should review the statement/transactions with **	**you.  If you need assistance contact the APC.*
- 9.**    Retain purchase card records for 3 years after final payment.  **

## Procedures for Processing Statements/Transactions (Approving Official)

**Procedures for Processing Statements/Transactions (Approving Official)**

**The Approving Official Must**:
- Note the actual receipt date of the statement;
- Ensure that:
- Supporting documentation of purchases is complete and is attached to the cardholder statement/transactions;
- The cardholder has entered or accepts the accounting data into the U.S. Bank’s Access Online System;
- The items purchased were authorized, the necessary clearances prior to purchase were received, and the purchases were otherwise appropriate; and
- Final approve the statement/transactions in the U.S. Bank’s Access Online System**.**

## Procedures for Processing Statements/Transactions (Approving Official)

**Procedures for Processing Statements/Transactions (Approving Official)**

- (continued....)
- 3.    Follow-up on all approvals to avoid cardholder suspension (suspension will occur if cardholder has transactions 45 days old that have not been reviewed and approved by all parties involved in the transaction approval process).

##  Billing Errors and Disputes

** ****Billing Errors and Disputes**

_**Disputes & Billing Errors**_**:**
- A dispute is a questionable purchasing card transaction posted to your cardholder statement.  There are several reasons why a dispute might occur.  Some examples include:
-  Merchandise/service not received
-  Merchandise returned
-  Unauthorized purchases
-  Duplicate processing
-  Unrecognized charge
_**Items that cannot be disputed include:**_
-  Convenience checks
-  Items not charged directly to the purchasing card account.

## Resolving Billing Errors and Disputes

**Resolving Billing Errors and Disputes**

_**Disputes & Billing Errors**_**:**
- Before disputing or questioning a charge on your Cardholder Statement/Transaction, please validate that you have taken the following actions:
-  Reviewed your receipts for the amount in question as it may have posted to                                                                                                                              your Cardholder Statement with a different merchant name.
-   Attempted to contact the merchant in an attempt to resolve  the issue.
- If the above actions have been taken and you still desire to dispute the transaction, disputes may be filed _online_ using the _U.S. Bank electronic Access_ _System.  _There may be circumstances where written correspondence is required.  In these instances complete the CSQI form.  This form is available online or from your Agency Program Coordinator.  The CSQI form must be returned to U.S. Bank no later than _60 days_ after the statement date on which the transaction appeared, in order to preserve your rights to dispute the transaction.  Be sure to retain a copy for your files.

## END

**Module 1  Chapter 5**
**Cardholder Statement/Transactions**

- Rita Thomas
- Office of Acquisition
- Maritime Administration
- Rita.Thomas@dot.gov

## Care of the Purchase Card

**Rita Thomas**
**Office of Acquisition**
**Maritime Administration**
**Rita.Thomas@dot.gov**

**Module 1  Chapter 6**
**December 14, 2005**

## Care of the Purchase Card

**Care of the Purchase Card**

**Agenda:**
**Lost or Stolen Cards**
**When a Cardholder Leaves the Agency**
**When a Cardholder Transfers to Another Office**
**Audits**
**Renewing an Expiring Purchase Card**

**MARAD Purchase Card Program**
**Chapter 6**

## Lost or Stolen Cards

**Lost or Stolen Cards**

_**If your card is lost or stolen**_**:**
- Notify the purchase card contractor directly at 1-888-994-6722;
- Notify the approving official within 1 workday of discovering the card missing.
- The _Approving Official_ must submit a written report to the APC within 5 workdays.  The report must include the :
- Card number;
- Cardholder's complete name as shown on the card;
- Date and time the purchase card contractor was notified
- If stolen, date reported to police;
- Date and time the purchase card contractor was notified;
- All purchases made immediately prior or on the day the card was lost or stolen; and
- Any other pertinent information.

## Lost or Stolen Cards           (continued.....)

**Lost or Stolen Cards           **(continued.....)

- The purchase card contractor will mail a new card with a new account number to you within 24 hours of the reported loss.
- If you subsequently find the card after reporting it lost or stolen, cut in half and give it to your approving official.  The approving** **official must forward** **the halves to the APC.
- Please keep in mind that only you as the cardholder can use your purchase card and account number.**  **
*It is your responsibility to safeguard the purchase card and account number at all times.  *
*When you are not using the card, it must be kept in a secure location.*
*The account number may be disclosed only as necessary for the use of the card.***  **

*A violation of this trust may result in withdrawal of your card or **disciplinary action, or both.*

## When a Cardholder Leaves the Agency

**When a Cardholder Leaves the Agency**

- _If a Cardholder leaves the Agency, he/she must_:
- Cut the card in half;
- Surrender the cut card to the approving official;
- Give all pertinent material to his or her approving official
- Unreconciled requisitions
- Sales drafts
- Purchase card log, and
- Cardholder statements/transactions
- _If an Approving Official leaves the Agency, he/she must_:
- (1)   Forward all records to the APC

## When a Cardholder Transfers to Another Office

**When a Cardholder Transfers to Another Office**

-       If a** **Cardholder is transferred to another office within the agency with a
-       different approving official, he/she must:
- Cut the card in half;
- Surrender the card and all there transaction documentations to the former approving official.
- The former approving official will forward the halves to the APC.
-       If the new approving official designates you to be a cardholder
-       within the new office, you must forward a new written request for
-       delegation of procurement authority to the Director, Office of Acquisition
-       or Chief of Contracting Office for processing.

## Will Cardholders and Approving Officials Be Audited? 

**Will Cardholders and Approving Officials Be Audited? **

- Periodic, random audits will be conducted to ensure compliance and accountability for all Purchase Card purchases.

## Renewing an Expiring Purchase Card 

**Renewing an Expiring Purchase Card **

- Unless you are notified otherwise by the APC, the purchase card
-  contractor will automatically reissue a new card directly to you prior
-  to expiration of your current card.
- You must activate cards similar to new account cards.
- The APC reviews expiring cards prior to re-issuance**.**

## END

**Module 1 Chapter 6**
**Care of the Purchase Card**

- Rita Thomas
- Office of Acquisition
- Maritime Administration
- Rita.Thomas@dot.gov

## Ethical Conduct

**Rita Thomas**
**Office of Acquisition**
**Maritime Administration**
**Rita.Thomas@dot.gov**

**Module 1   Chapter 7**
**December 14, 2005**

## Ethical Conduct

**Ethical Conduct**

**Agenda:**
**Standards of Ethical Conduct**
**Accepting a Gift**
**Items Specifically Excluded By the Gift Rules**
**Circumstances Under Which You May Accept a Gift**
**The $20 /$50 Rule**

**MARAD Purchase Card Program**
**Chapter 7**

## Standards of Ethical Conduct

**Standards of Ethical Conduct**

**       **An employee shall not, directly or indirectly, solicit or accept a gift from a prohibited source because of the employee's official position.
-        What is a _GIFT_ ?Anything of monetary value such as: gratuities, favors, discounts, entertainment, hospitality, loans, forbearance (forgiveness of a loan), services, training, transportation, travel, meals, lodging, etc.** **

## Accepting a Gift

**Accepting a Gift**

- What does it mean to accept a gift directly or indirectly?
- Directly is straightforward - You accept the gift. Indirectly means that someone gives a gift, with your knowledge and acquiescence, to someone else, possibly your spouse or child, a sibling or other dependent relative because of that person's relationship to you.
- A gift could also be indirectly given to any other "person" including any charitable organization at your  recommendation or designation.

## Gift Rules Specifically Exclude . . .

**Gift Rules Specifically Exclude . . .**

-        The definition of gifts is broad, but the gift rules specifically exclude certain things from being treated as gifts. The gift exclusions are:
- Greeting cards and items with little intrinsic value, such as plaques, certificates, and trophies, which are intended solely for presentation.
- Modest items of food and refreshments, such as soft drinks, coffee and donuts, offered other than as part of a meal.
- Loans from banks and other financial institutions on terms generally available to the public.
- Opportunities and benefits, including favorable rates and commercial discounts, available to the public or to a class consisting of all Government employees.
**	****	****	****	****	****	****	**

## Gift Rules Specifically Exclude . . .                  

**Gift Rules Specifically Exclude . . .                  **

- (continued....)
- 5.    Rewards and prizes given to competitors in contests or events, including random drawings, open to the public unless the employee's entry into the contest or even is required as part of his official duties.
- 6.    Pensions and other benefits resulting from continued participation in an employee welfare and benefits plan maintained by a former employer.
- 7.    Anything which is paid for by the Government or secured by the Government under Government contract.
- 8.    Any gift accepted by the Government under specific statutory authority.

## Circumstances Under Which You May Accept a Gift

**Circumstances Under Which You May Accept a Gift**

-       The basic gift rules are written to ensure that you do not accept gifts inappropriately.  There are circumstances under which you may accept a gift even when it is from a prohibited source or given because of your official position.
-        The 12 gift exceptions are:
- Gifts of $20 or less.
- Gifts based on a personal relationship**.**** **
- Discounts and similar benefits.
- Awards and honorary degrees.
- Gifts based on outside business or employment relationships.
**	****	****	****	****	****	****	**

## Circumstances Under Which You May Accept a Gift 

**Circumstances Under Which You May Accept a Gift **

- (continued...)
- 6.    Gifts in connections with political activities permitted by the Hatch Act Reform Amendments.
- 7.    Widely attended gathering and other events.
- 8.    Social invitations from persons other than prohibited sources.
- 9.    Meals, refreshments and entertainment in foreign areas.
- 10   Gifts to the President and Vice President.
- 11.  Gifts authorized by supplemental agency regulation.
- 12.  Gifts accepted under specific statutory authority.** **

## The $20 / $50 Rule

**The $20 / $50 Rule**

-        Of the twelve Gift Exceptions, rule number one seems to generate the most questions.
-        Under the $20/$50 rule, an employee may accept an unsolicited gift of $20 or less _per occasion__ _and no more than $50 _in a calendar year from one person_.
-        Where the market value of a gift offered on any single occasion exceeds $20, the employee may not pay the excess value over $20 in order to accept the gift.
-        Where the aggregate value of tangible items offered on a single occasion exceeds $20, the employee may decline any distinct and separate item in order to accept those items aggregating $20 or less.
-        Standards of Ethical Conduct may be found at 5 U.S.C. 2635 or reference the agency ethics training.

## END

**Module 1  Chapter 7**
**Ethical Conduct**

- Rita Thomas
- Office of Acquisition
- Maritime Administration
- Rita.Thomas@dot.gov

## Purchasing Non-Expendable

**Personal Property**

**Jimmi Gleaton**
**Property Control Officer**
**Maritime Administration**
**Jimmi.Gleaton@dot.gov**

**Module 2  Chapter 1**
**December 14, 2005**

## Purchasing Non-Expendable Personal Property

**Purchasing Non-Expendable Personal Property**

**Agenda:**
**Definition  -  Non-Expendable Personal Property**
**Documenting Receipts **
**Processing Receipts**
**Accountability and Control**
**Points of Contact**

**MARAD Purchase Card Program**
**Chapter 1**

## Definition  -   Non-Expendable Personal Property

**Definition  -   Non-Expendable Personal Property**

- For the purpose of this training,
- _N__on-__E__xpendable __P__ersonal __P__roperty_ is defined as equipment with an acquisition cost of $100.00 or more.

## Documenting Receipts

**Documenting Receipts**

- Receipting of all non-expendable personal property must be accomplished to provide documentation for
- Entry of equipment into MARAD’s personal property inventory records;
- Substantiation of payment.
- There is no single form used for this purpose.

## Documenting Receipts   (continued)

**Documenting Receipts   **(continued)

- There are several methods for accomplishing this task, including:
- Form MA-50 (Requisition for Supplies, Equipment and Services)
- Form MA-949 (Supply, Equipment or Service Order/Contract)
- Formal letter or memorandum , etc.
- Adequate receipt information necessary for updating MARAD’s property records and authorizing payment consists of one of the above mentioned forms with one of the following:
- A Receipt from the vendor
- A copy of the credit card purchase slip, or
- The packing slip

## Processing Receipts

**Processing Receipts**

- Receipt information must identify the equipment as to:
- Vendor
- Description
- serial number
- Quantity
- Cost
- Date of receipt
- Location, and
- Warranty (if any).
- A copy of the receipt information must be provided to the appropriate Accountable Property Officer (APO) on a weekly basis.
- Receipts for this equipment should be forwarded to APO’s immediately after receipt of this material.

## Accountability and Control

**Accountability and Control**

- Upon notification that the equipment has been received, the APO will ensure that the equipment
- Is bar coded
- Is recorded in MARAD’s Barcode Inventory Tracking System (BITS).
- This equipment will then become part of MARAD’s official inventory and must be accounted for at all times.
- Note: Regardless of the cost, all weapons must be recorded in  MARAD’s personal property tracking system.

## Points of Contact

**Points of Contact**

- The following is a list of MARAD designated Accountable Property Officers:
- Questions regarding personal property accountability should be directed to the  Office of Management Services (MAR-310), telephone number 202-366-5816.

**Headquarters, Regions, and Field Offices****	****-****	****Jimmi Gleaton**
**RRF Shore-based Spares****	****-****	****Richard Williams**
**Title XI Vessels****	****-****	****Mitchell Lax**
**Beaumont Reserve Fleet****	****-****	****Linda Viltz**
**Suisun Bay Reserve Fleet****	****-****	****Darlene Campbell**
**James River Reserve Fleet****	****-****	****Vicki Kinkade**
**U.S. Merchant Marine Academy****	****-****	****Edmund Wallace**
**Great Lakes****	****-   Floyd Miras**

## END

**Module 2  Chapter 1**
**Purchasing Non-Expendable**
**Personal Property**

- Jimmi Gleaton
- Property Control Officer
- Maritime Administration
- Jimmi.Gleaton@dot.gov

## Purchase Card

**Funding Procedures**

**Velma Marshall**
**Fund Control Officer**
**Maritime Administration**
**Velma.Marshall@dot.gov**

**Module 3   Chapter 1**
**December 14, 2005**

## Purchase Card Funding Procedures

**Purchase Card Funding Procedures**

**Agenda:**
**Program Official’s Responsibilities**
**Fund Control Officer’s Responsibilities**
**Program Office Fund Documentation Procedures**
**Increasing Purchase Card Limits**
**Acquisition Office Fund Documentation Procedures**
**Recordkeeping Responsibilities**

**MARAD Purchase Card Program**
**Chapter 1**

## Program Official’s Responsibilities

**Program Official’s Responsibilities**

- It is the responsibility of the program official to:
- Earmark funds for the purpose of procuring goods and services via a purchase card.
- Determine annual fund limits, based on the total maximum monthly purchases, for each purchase cardholder under his/her purview.
- Inform the purchase cardholder of all appropriate fund limits--per purchase, monthly, quarterly, and annual.
- Ensure purchases are not made in excess of available funds.

## Program Official’s Responsibilities          (continued...)

**Program Official’s Responsibilities          **(continued...)

- 	The program official shall submit a request to the Fund Control Officer to establish a budget line item for each new purchase cardholder.
- 	At that time, the program official shall establish appropriate fund limits for each new purchase cardholder.

## Fund Control Officer’s Responsibilities

**Fund Control Officer’s Responsibilities**

- The Fund Control Officer:
- Ensures that funds are not committed in excess of amounts provided in fiscal plans.
- Validates and processes the purchase card fund document, if funds are available.
- Returns the fund document to the program official or purchase cardholder, if funds are not available.
- Establishes and maintains a system for tracking commitments.
- Reviews on a monthly basis all expenditures.
- Reconciles all transactions/discrepancies with accounting and bank records.

## Fund Control Officers

**Fund Control Officers**

- _Operations and Training (O&T) Fund Control Officer and Back-up_:
- 	Velma E. Marshall/Charisse Fagins
- 	Office of Associate Administrator for Administration/ Office of Management Services
- 	MAR-300, Room 7301/MAR-310, Room 7301
- 	Telephone:  (202) 366-2807/(202) 366-4543
- _Ready Reserve Force (RRF) Fund Control Officers_:
- 	Mark J. Truffer/Vonnie Malcolm
- 	Immediate Office of the Associate Administrator for National Security
- 	MAR-600.5, Room 7300
- 	Telephone:  (202) 366-1947/(202) 366-0657

## Program Office Fund Documentation Procedures

**Program Office Fund Documentation Procedures**

- 	The program office purchase cardholder shall complete form MA-50, Requisition for Supplies, Equipment, and Services to commit funds for purchase card purchases.
- 	The form MA-50 shall reflect the
- the amount to be committed for the month;
- the purchase cardholder's budget line item;
- the signature of the purchase cardholder;
- the signature of the approving official; and
- the signature of the Fund Control Officer.

## Program Office Fund Documentation Procedures  (continued..)

**Program Office Fund Documentation Procedures  **(continued..)

- 	The four-part form MA-50 shall be submitted intact to the Fund Control Officer for validation.
- 	If the program office purchase cardholder is submitting an electronic version of the form MA-50, the purchase cardholder need only submit one signed original for validation.
- 	After validation the Fund Control Officer will provide a copy of the validated form MA-50 to the approving official and the purchase cardholder for record purposes.
-  	These steps must be repeated each month to maintain the maximum monthly limit.

## Increasing Purchase Card Limits

**Increasing Purchase Card Limits**

- 	Occasionally, purchase card limits need to be increased to allow for continued use of the purchase card during a specified period of time.
- 	If the Fund Control Officer determines that the program office purchase cardholder's maximum monthly limit needs to be increased, he/she shall contact the program official and the purchase cardholder.
- 	If it becomes necessary to increase an existing commitment, the program office purchase cardholder must prepare and submit a new form MA-50 to the Fund Control Officer for validation and processing.

## Acquisition Office Fund Documentation Procedures

**Acquisition Office Fund Documentation Procedures**

- 	Acquisition office purchase cardholders make purchases for numerous program offices under a variety of cost centers.
- 	To fund these purchases, a validated form MA-949, Supply, Equipment, or Service Order/Contract or form MA-50, Requisition for Supplies, Equipment, and Services will be used.
- 	Note:   Fund limitation restrictions also apply to acquisition office purchase cardholders.  Acquisition office purchase cardholders shall not make any purchases in excess of the amount reflected on the validated form MA-949 or form MA-50.

## Acquisition Office Fund Documentation Procedures  (continued)

**Acquisition Office Fund Documentation Procedures  **(continued)

- 	Prior to making a purchase that will exceed the amount on the form MA-949 or form MA-50, the acquisition office purchase cardholder must resubmit the form MA-949 or form MA-50 to the Fund Control Officer for revalidation.
- 	It is the responsibility of the acquisition office purchase cardholder to post the award of the validated form MA-949 or form MA-50 on the Virtual Office of Acquisition system to establish the obligation for each purchase**.**

## Recordkeeping Responsibilities

**Recordkeeping Responsibilities**

- 	Each purchase cardholder is responsible for establishing and maintaining a recordkeeping system to ensure purchases are not made in excess of established fund limits.
- 	The Fund Control Officer is responsible for maintaining a detailed fund control recordkeeping system to ensure commitments are not made in excess of amounts provided in fiscal plans.
- 	All records should be kept for the period of time set forth in the Maritime Administration’s Records Control Schedule.

## END

**Module 3  Chapter 1**
**Purchase Card**
**Funding Procedures**

- Velma Marshall
- Fund Control Officer
- Maritime Administration
- Velma.Marshall@dot.gov

##  Accounting Procedures

**for**
**The Purchase Card Program**

**John Hoban**
**Accounting Officer**
**Maritime Administration**
**John. Hoban@dot.gov**

**Module 4 Chapter 1 **
**December 14, 2005**

## Accounting Procedures for the Purchase Card Program

**Accounting Procedures for the Purchase Card Program**

- Agenda:
- Central Billing Account Statement & Cardholder Statement
- Cardholder Responsibilities
- Reconciliation and Allocation of Transactions (U.S. Bank Access System)
- Fund Control Officers
- Approving Officials
- Payment
- Documentation Requirements
- Disputed Transactions
- Accounting Data Adjustment
- Interest Penalty – Fees
- Authorized Funding Prior To Using Your Purchase Card
-  FCO Contacts

**MARAD Purchase Card Program**
**Chapter 1**

##       The issuance of hardcopy statements has been discontinued.  The billing cycle is from the 20th of the month to the 19th of the next month.    Cardholders’ statements will be made available online one (1) business day after the billing cycle ends.  U.S. Bank will notify each cardholder via e-mail when the statement is available online.

** ****Billing Cycle & Cardholder Statement**

-  **    **** **The issuance of hardcopy statements has been discontinued.  The billing cycle is from the 20th of the month to the 19th of the next month.    Cardholders’ statements will be made available online one (1) business day after the billing cycle ends.  U.S. Bank will notify each cardholder via e-mail when the statement is available online.

## Cardholder Responsibilities

**Cardholder Responsibilities**

- Cardholders are responsible for selecting their valid accounting code information for each purchase** **via the U.S. Bank website, called Access Online System.  _[https://access.usbank.com](https://access.usbank.com/)_
- The cardholder does not have to wait until the end of the billing cycle to allocate the purchase to the valid accounting codes.
- This process should be done at least weekly.   In order for cardholder purchases to be reported in MARAD’s accounting system** (**Delphi) in a timely manner, cardholders must allocate the purchase cost to the valid accounting** code **timely.  This is the same accounting code reflected on the cardholder’s validated purchase request. ** **

## Cardholder Responsibilities                                                   (continued...)

**Cardholder Responsibilities                                                   ****(**continued...)

- If your transaction does not appear on your statement within 15 -30 days of your delivered purchase/service, you must then contact the merchant and request that the transaction be submitted to the U.S. Bank for payment.

## Reconciliation and Allocation

**Reconciliation and Allocation**

- During the month and no later than the 20th of each month, cardholders must allocate all their purchases on the billing cycle statement in the U.S. Bank Access Online System.  If the 20th falls on a weekend you have the following business day to complete your allocations.
- Allocate or either accept the default accounting code or select/input the accounting code for each purchase if different from that of the default accounting code. When allocating and approving the accounting codes in the U.S. Bank Access Online System the codes on each purchase must agree with the accounting code that appears on your validated PR.
- In the case where your default accounting code is used and there is no change required, the cardholder accepts the default line of accounting in the U.S. Bank Access Online System.**  **

## Reconciliation and Allocation                           (continued...)    

- The cardholder is also required to insert the appropriate transaction number and/or document _identification number_ in the comments section in Access Online.
- Once you have completed the distribution of the valid accounting code in the US Bank Access Online System, you must forward all approved transactions to the FCO for accounting code review and approval.
- The cardholder is responsible for reconciling his/her purchases
-        on the cardholder statement against the information in Access
-        Online for the appropriate distribution of the valid accounting
-        codes and dollar amounts.

**Reconciliation and Allocation                           **(continued...)** ****   **

## Reconciliation and Allocation                                      (continued...)

**Reconciliation and Allocation                                      **(continued...)

-      The cardholder can make changes to the approved allocated
-        transaction(s) when rejected by the FCO.  If the transaction(s)
-        is/are rejected by the FCO it will be returned to the cardholder to
-        make the necessary changes.  The cardholder must make
-        changes, approve and forward the transaction(s) to the FCO for
-        their review and approval.   If all corrections are completed, the
-        FCO will forward the transaction(s) to the cardholder’s Approving
-        Official for final approval.  After _final approval_ by the Approving
-        Official no changes can be made to the approved transaction(s)
-        in the U.S. Bank Access Online System.

## Fund Control Officers

**Fund Control Officers**

-        Upon receipt of the approved transactions from the
-       cardholders, FCOs must review and ensure that the
-       accounting codes are correct in the U.S. Bank Access Online System.
-       After completing the review the FCOs must forward the
-       cardholder’s transaction(s) to the cardholder’s Approving Official
-       for Final Approval.
-       The FCO shall post the payment to Freebalance (FB) and adjust
-        the obligation if required.
-       Five working days after receipt of the approved transactions the
-       FCO will forward them to the Approving Official for final
-       approval of the cardholder’s transactions in the U.S. Bank Access
-       Online System.

## Approving Official

**Approving Official**

-         Approving Officials cannot approve the statement until they receive the approved transactions from the FCO.  This ensures that all the purchases are posted with valid accounting codes and the cited funds are available.
-        The Approving Official’s approval validates that the purchases were officially authorized for business use and required by MARAD.  Approving Officials must approve the transactions in the U.S. Bank Access Online System not later than three work days after receipt from the FCO.

## Payment

**Payment**

**     **DOT Delphi Control Group in Oklahoma City is responsible for paying U.S. Bank daily on behalf of the entire DOT.

## Documentation Requirements

**Documentation Requirements**

**     **Since the US Bank does not issue a hardcopy of the cardholder’s** **statement, any necessary records** (**_**copy of your signed statement,  procurement request and all purchase receipts**_**) **must be kept by the cardholder for audit purpose.   The approving official’s approval of the** **statements/transactions in** **the U.S. Bank system validates that all purchases were made for official business.  This completes the process.

## Disputed Purchases

**Disputed Purchases**

**    **Problem transactions may be disputed in the U.S. Bank Access Online System.
-      Cardholders _should not_ approve disputed transactions; however they must select dispute to mark the transaction as being disputed and keep a record for future adjustment to the account.
-     After the cardholder has negotiated with the merchant /vendor for an adjustment to the disputed transaction, the cardholder must review and approve the merchant’s /vendor’s adjustment in Access Online.
-     The cardholder is required to follow the Transaction Dispute Guide established by the U**.**S**. **Bank for resolving disputed transactions.

## Accounting Data Adjustment

**Accounting Data Adjustment**

- Any errors in the accounting codes after the final approval by the Approving Official _must be submitted in writing or emailed to the FCO.  _
- Cardholders must run printouts with the errors from Access Online and annotate on the printout the correct accounting code and forward it to the FCO.
- The FCO’s concurrence will be provided to the Office of Accounting.   However, no manual accounting adjustments will be processed for changes under $500.00.

## Interest Penalty - Fees

**Interest Penalty - Fees**

**      **Since all payments will be made on a daily basis, there should not be any interest penalty charged.  If for any reason there is interest penalty, it would be coded to the cardholder’s default line of accounting.
-       When using convenience checks, the cardholder must remember that there is a 2% service fee charged against the total dollar amount of the purchase, and ensure that funds are available to cover this service fee.  The cardholder shall record convenience check transactions in their purchase log.

## Authorized Funding Prior To Using Your Purchase Card

**Authorized Funding Prior To Using Your Purchase Card**

- _Program Offices_
-  MA-50 must be validated by the FCO on a monthly basis to cover purchases for each program office using the purchase card.  This MA-50 should state “U**.**S**.** Bank Purchase Card used for this purchase”. The validated MA-50 will contain the appropriate accounting codes.
- _Contracting Officers_
- A validated MA-949 or MA-50 is sent from the FCO to the Office of Acquisition.  The MA-949 or MA-50 should be stamped by the contracting officer “US Bank Purchase Card used for this purchase”.  The validated MA-949 or MA-50 will contain the appropriate accounting codes.

## FCO Contacts

**FCO Contacts**

- If you have any questions concerning these instructions please contact your
- FCO see below.
- Western Region -  Susan Wong (415) 744-2574
- Central Region  - Thomas Bostic (504) 589-2000x241 or
-                                Ronald Bourgeois (504) 589-2000x240
- South Atlantic Region  - Jennifer Fallis  (757) 441- 3716 or
-                                           Pam Andrews (757) 441-3713
- Headquarters O&T, North Atlantic & Great Lakes –
-                                          Velma Marshall (202) 366-2807 or
-                                          Charisse, Fagins (202) 366-5816
- Headquarters RRF – Mark Truffer  (202) 366-1947 or
-                                     Vonnie Malcolm (202) 366-0657

## END

**Module 4  Chapter 1**
**Accounting Procedures**
**for the**
**Purchase Card Program**

- John Hoban
- Accounting Officer
- Maritime Administration
- John.Hoban@dot.gov