OMB finalizes charge card guidance
Updated rules for purchase and travel cards require agencies to perform background checks on new cardholders.
The Office of Management and Budget finalized updated purchase and travel card rules last week, requiring agencies to develop a charge card management plan, perform credit checks on cardholders and use strategic sourcing for card purchases.
In a memo dated Aug. 5, OMB Director Joshua B. Bolten instructed all executive branch agencies to implement policies in an updated circular to include the latest governmentwide rules for charge cards. The revised guidance becomes effective Oct. 1, the start of the next fiscal year.
The new requirements combine and update previously issued guidances from OMB, the General Services Administration and other agencies.
To prevent travel or purchase card abuse, agencies now are required to perform credit checks on government employees before issuing them charge cards.
Agencies are also required to use strategic sourcing in their charge card purchases, which is a process of analyzing the way funds are spent with the intent of finding discounts on commonly purchased items.
In addition, agencies will have to identify managers responsible for their charge card program and create a formal process for appointing cardholders and guaranteeing their creditworthiness.
"This new guidance will help ensure that federal charge cards aren't misused, that the government pays its charge card debts on time and that government managers implement strategies for making smarter procurement decisions," said OMB Controller Linda Combs.
House Government Reform Committee spokesman Drew Crockett said the committee is pleased that OMB is taking these steps, but they are concerned that OMB is unfairly lumping purchase cards into the same category as travel cards.
He said purchase cards allow for "huge efficiencies" and permit workers to quickly and efficiently acquire the smaller items needed for agencies' day-to-day operations, including the SmartPay program which GSA says saves the government more than $1.3 billion annually.
"We must keep our eye on the purpose of the purchase card program in the first place and not add on so much 'stuff' that we will have to go out and create another program so we can buy small amounts of supplies easily and quickly," Crockett said.
In February, OMB issued a draft of the guidance. Members of Congress have introduced legislation to strengthen the laws governing the use of charge cards because of instances of waste, fraud and abuse by federal workers, including reports of purchases of a designer briefcase and Elvis Presley photos.