Vol 1 - Part 4 - Chapter 4500
     
               GOVERNMENT PURCHASE CARDS
     
          The chapter prescribes procedures that apply to
     all departments and agencies that use the Government
     purchase card. These procedures include program
     controls and invoice payment.
     
     Section 4510 - Authority
     
          Procedures are issued under authorities derived
     from the United States Code at 31 U.S.C. 3321, 3322,
     3327, and 3335, which govern disbursing and payment
     issuance.
     
     Section 4515 - Policy and Use
     
          Small purchases of up to $25,000 should be made
     using the Government purchase card. Other small
     purchase methods (imprest funds, third party drafts,
     SF-44 forms, and purchase orders) may only be used in
     lieu of the Government purchase card when it is more
     cost-effective, practicable, or required by existing
     statutes.
     
     Section 4520 - Definition of Terms
     
          Approving Official - An individual who -- 
     
          o    Reviews cardholder statement(s). 
     
          o    Is responsible for authorizing cardholder
     purchases (for official use only).
     
          o    Ensures that statement is reconciled and
     submitted to the designated billing office in a timely
     manner.
     
          Cardholder - The individual Government employee to
     whom a Government purchase card is issued. The card
     bears the employee's name and can be used only by that
     employee for official purchases, in compliance with the
     agency's regulations and procedures and General
     Services Administration's (GSA) Government Commercial
     Credit Card Services contract.
     
          Cardholder Statement - A statement, listing all
     transactions during the billing period, that is sent to
     each cardholder.
     
          Delegation of Authority - A written delegation
     issued by responsible agency personnel that establishes
     authorized cardholder(s), specifying spending and usage
     limitations unique to that cardholder.
     
          Designated Billing Office - The payment office
     within a Federal agency that receives the "official
     invoice," which is a consolidated report listing all
     cardholder charges for the area the office serves. This
     office is responsible for insuring that payment of the
     official invoice is made in accordance with Prompt
     Payment Act deadlines.
     
          Designated Billing Office Report - A consolidated
     report sent to each agency billing office at the end of
     the monthly billing cycle. The designated Billing
     Office Report will be the official invoice.
     
          Electronic Commerce - The integration of
     electronic-based systems to support common business
     processes. For example, the purchase card contractor
     will provide invoices electronically to Federal agency
     designated billing offices and accept payments
     electronically from Federal Government payment centers,
     and will provide electronic access to account data and
     reports.
     
          Government Purchase Card - Internationally
     accepted credit card available to all Federal agencies
     under a single General Services Administration contract
     for the purpose of making small purchases of up to
     $25,000, with a minimum of paperwork. These credit card
     services are available under a contract awarded by GSA
     for Governmentwide use.
     
          Invoice - The report sent to the designated
     billing office from the contractor for payment of one
     or more agency cardholder statements. Agencies may
     elect to receive the invoice electronically.
     
          Productivity Based Refunds - Under the present
     contract, a refund of 0.01% of net sales per billing
     cycle for payment of the invoice each day earlier than
     39 days after receipt. An additional refund of 0.05% of
     net sales volume is made for electronic report
     distribution. 
     
          Small Purchase - An acquisition of supplies,
     non-personal services, or construction in the amount of
     $25,000 or less.
     
          Vendor Express - A Governmentwide program to
     process vendor and miscellaneous payments
     electronically through the Automated Clearing House
     (ACH) network. The payments are deposited directly to
     the contractor's account on the payment date.
     
     Section 4525 - Agency Procedures
     
          Each agency will develop its own internal
     procedures for using the purchase card. Some processing
     and internal controls that must be in place prior to
     using the Government purchase card are as follows:
     
          o    Designate an office (usually the procurement
     office) to manage the program. Management of the
     program includes assurance that training is provided,
     maintenance of a current list of cardholders and
     approving officials, and an annual oversight review of
     the program.
     
          o    Write a delegation of authority for each
     cardholder.
     
          o    Establish approved uses and limitations on
     the types of purchases and the dollar amounts.
     
          o    Establish procedures for timely submission of
     cardholder statements to the agency designated billing
     office.
     
          o    Establish procedures for maintaining security
     of the  cards.
     
          o    Establish procedures for handling disputes
     and returned, refused, damaged, or unacceptable items
     and partial deliveries.
     
          o    Establish card renewal procedures.
     
     Section 4530 - Refund of Contractual Costs
     
          Agencies will receive productivity-based refunds
     from the contractor semi-annually, based on the
     improved invoice payment timeliness. These refunds will
     be credited to appropriations in accordance with
     Treasury - GAO Joint Regulation Number 1 and Chapter 7,
     paragraph 12.2 of GAO's Policy and Procedures Manual
     for the Guidance of Federal Agencies.
     
     Section 4535 - Review and Approval of Billing Statement
     for Payment
     
          When a Government purchase card is used, the
     vendor providing the good or service to the Federal
     agency is paid by the contractor that provides the
     credit card services to the Government. The Government
     paying agency then reimburses the contractor in
     accordance with the terms and conditions of the
     Government commercial credit card services contract and
     the Prompt Payment Act (I TFM 6-8000).
     
          The cardholder and approving official will review
     the cardholder statement of account received at the end
     of each monthly billing cycle and follow contract
     procedures for identifying discrepancies. The
     cardholder statement must be submitted to the
     designated billing office within a time frame that
     allows them to process and pay the consolidated invoice
     within the Prompt Payment Act deadline. 
     
          The designated billing office should make
     adjustments to the consolidated invoice, based on the
     cardholder statements received. The designated billing
     office will pay the consolidated invoice in a timely
     manner even if all cardholder statements are not
     received (4535.10 - Payments).  The contract contains
     provisions for reconciliation of discrepancies after
     payment of the invoices, as long as the contractor is
     notified in writing within the 60 day period prescribed
     in the contract and VISA regulations.
     
          Designated billing offices should use "Vendor Ex-
     press" as the preferred method for paying the
     consolidated invoice for credit card services. If
     payment is made by this method, it must be received by
     the contractor on the due date.
     
     4535.10 - Payments 
     
          Payment of the consolidated invoice in a timely
     manner even if all cardholder statements are not
     received refers to a payment procedure in which payment
     is made to a contractor prior to the government's
     verification that supplies have been received. It does
     not refer, as provided in the Federal Acquisition
     Regulations Clause 52.232-25, to payment to a
     contractor prior to the 30th day after receipt of the
     invoice.
     
          All provisions of the Prompt Payment Act, OMB
     Circular A-125, apply including interest penalties for
     late payment.
          
     4535.20 - Training Requirements 
     
          A training program on the Governmentwide credit
     card procedures and small purchasing regulations will
     be established by each participating agency.
     Cardholders, approving officials, and other employees,
     such as those in the designating billing office, who
     are involved in the program must attend agency
     training.
     
     4535.30 - Safeguarding Credit Cards 
     
          Agency procedures must address safeguarding credit
     cards when not in use. Cards shall be safeguarded by
     agencies in the same manner as cash (I TFM 4-3000 and
     Manual of Procedures and Instructions for Cashiers).
     
     Section 4540 -Electronic Commerce
     
          Agencies may receive invoices electronically, make
     payments electronically, access and review account and
     master file data, and receive reports electronically.
     Each department and agency should exercise its
     authority under the FAR to require that all contractors
     are paid by EFT, unless a determination is made that it
     is not in the best interest of the Federal Government
     to do so. EFT should be adopted as the standard method
     of payment for all Federal program payments originated
     by agencies or their agents. 
     
     
                        CONTACTS
     
          Inquiries concerning the contract through which
     the Governmentwide credit card services are offered
     should be directed to:
     
               General Services Administration,
               Federal Supply Service (FCXST)
               Room 603, Crystal Mall #4
               Washington, DC 20406
               (Telephone 703-305-6658)
     
          Inquiries on imprest fund activities should be
     directed to:
               Kansas City Regional Financial Center
               Financial Management Service
               Department of the Treasury
               P. O. Box 3329
               Kansas City, KS 66103-3329
               (Telephone 919-236-3470)
     
     
          All other inquiries should be directed to:
     
               Cash Management Policy and Planning
               Financial Management Service
               Department of the Treasury
               Room 521-C
               401 14th Street, SW.
               Washington, DC 20227
               (Telephone 202-874-6950)