# Presentation: 853868

## Cardholder Training

*Purchase Card Program*

## Abbreviations

- AAPC—Area Agency Program Coordinator
- BOC—Budget Object Code
- FFIS—Foundation Financial Information System
- LAPC—Local Agency Program Coordinator
- PCMS—Purchase Card Management System

## CHANGES

- Reconciliation time frame will be shortened due to (FFIS)
- Submit monthly reconciliation report to the Budget & Accounting Assistant by the 25th of each month

## Research Leader/Supervisor Responsibilities

- Determine the necessity & purpose of each card issued
- Determine single & monthly-purchase limits
- Ensure that cards issued under their authority are properly authorized
- Utilized reports provided from the LAPC
- Take disciplinary action for misuse of Purchase Cards when notified by the LAPC & notify LAPC of action taken

## AAPC Responsibilities

- Provides training and guidance to the LAPC
- Establishes & maintains the Purchase Card Program within the Area
- Conducts random monthly LAPC reviews using established standard reports
- Reports cases of fraud, misuse and abuse to the appropriate official

**Notes:**
AAPC is located in the Area Office and is the point of contact.  Duties include but is not limited to the following:

## LAPC Responsibilities

- Conducts random monthly cardholder reviews using established standard reports and prepares quarterly unauthorized purchase card/convenience check reports where appropriate
- Ensure cardholders are properly trained and that cardholders reconcile in PCMS within established guidelines
- Notifies managers/fundholders of any misuse and abuse

**Notes:**
Reports include:

Purchase Card Mater File—This report includes the information pertaining to cardholder account setup requests that have been transmitted the Bank by NFC.  Use this report to verify the hierarchy and purchase limit information returned from the bank is correct.

Cardholder Monthly Transaction Comparison Report--<$2500.  This report complies transactions less $2500.  Use this report to verify single purchase limit compliance.

Cardholder Monthly Reconciliation Report—This report lists all transactions purchased by the Cardholder.   Use this report to verify whether transactions (i.e., card/check) are reconciled properly (i.e., all required data has been entered into PCMS)
Check Report—This report is used to make sure a check was reconciled correctly.

## LAPC Responsibilities Continued

- Issue warning notices for the following types of misconduct:
- Writing checks when vendor accepts purchase cards
- Failing to reconcile transactions in PCMS
- Allowing or authorizing another employee to use purchase card
- Circumventing thresholds
- Sharing their Ids and passwords whereby breeching security
- Deactivate purchase card/convenience checks for repetitive misuse of purchase cards/convenience checks

## Cardholder Responsibilities

- Document all commercial purchase card/check transaction in accordance with the requirements of REE Manual 213.3M and DR 5013-6.
- Makes corrections in PCMS to agency accounting code and Budget Object Code
- Prepares AD-700 and submits to Budget & Accounting Assistant
- Submits monthly reconciliation report to Budget & Accounting Assistant

## Budget Object Codes

- Purchases <$1000
- Local Travel
- Salary Payment
- Training
- Check Fees
- Spot Awards
- Electricity
- Natural Gas
- Water

- 2670
- 2115
- 1101
- 2523
- 2581
- 1406
- 2311
- 2312
- 2313

## Budget Object Codes

- Fuel/Oil
- LPG/Propane
- Coal
- Registration Fees

- 2618
- 2619
- 2617
- 2570

## Unauthorized Use of the Card and Checks

- Cash advances and/or travel advances (except emergency salary payments as authorized by the agency)
- Long-term (more than 180 days) rental or lease of land or buildings
- Purchase of hazardous items such as firearms, ammunition, explosives, or hazardous biological and radioactive substances
- Purchase of airline, bus, train, or other travel-related tickets and purchase of meals, lodging, or subsistence costs

## Unauthorized Use of the Card and Checks

- Personal purchases or identification.  Items purchased with the card are for official government use only.
- Purchasing of telecommunications services (major systems)
- Splitting requirements into several purchases merely to avoid the cardholder’s delegated single purchase limit

## Unauthorized Use of the Card and Checks

- Fuel and related supplies and services for government-owned and leased vehicles, unless a cardholder cannot find a vendor for these items that will accept the fleet card
- Personal services unless authorized by statute
- Writing checks to self or cash

## Unauthorized Use of the Card and Checks

- Advance payment to a merchant prior to receipt of goods/services, unless authorized by law (i.e., subscriptions, registration fees, and training)
- Printing and Copying
- Acquisition from commercial sources of products or services available from a required source in time to meet the agency need

## Unauthorized Use of the Card and Checks

- Other items
- Greeting cards
- Memberships in a individuals name
- Parking tickets against a government vehicle
- Insurance of items being shipped
- Meals for federal employees at office or agency functions
- Freight over $100

## Required Sources for Supplies

- Activity Inventory (On-Hand Stock)
- Excess Property
- Federal Prison Industries (UNICOR)
- JWOD
- GSA
- Defense Logistics Agency
- Mandatory Federal Supply Schedules
- Optional Federal Supply Schedules
- Commercial Sources

## Required Sources for Services

- JWOD
- Mandatory Federal Supply Schedules
- Optional Federal Supply Schedules
- Federal Prison Industries (UNICOR)
- Open-Market Commercial Sources

## Web Addresses

- GSA Advantage—www.gsaadvantage.gov
- UNICOR—www.unicor.gov

## Some things to remember with Convenience Checks

- Can only use a check if vendor will not accept the purchase card and one of the wavier code applies
- 01 Individual Determination
- 02 Agency Makes One Payment
- 03 Foreign Country Infrastructure
- 04 Transaction in Disaster Area
- 05 Threat to National Security
- 06 Unusual and Compelling Urgency
- 07 One Source for Required Supplies or Services

## Reconciling Convenience Checks

- Complete the following:
- Add vendor address
- Date received
- Tax Id or Social Security Number
_**Put nothing in the description field**_
- Put the following in the comments field:
- Item description
- Waiver Code/Description

## Reconciling Convenience Checks

- Ensure accounting code is correct
- Ensure Budget Object Code is correct