Office of Inspector General Review of the USGS Bankcard Program and Other Bankcard Notes Date: Fri, 17 Apr 1998 10:53:46 -0400 To: "USGS Employees" From: Susan McCullough Subject: Bankcards - IG Report and Other Notes E-Mail to All Employees From: John K. Peterson, Chief, Office of Acquisition & Federal Assistance Subject: Office of Inspector General Review of the USGS Bankcard Program and Other Bankcard Notes This message is intended for all USGS bankcard holders and approving officials. If you are not a cardholder, an approving official, or someone who supervises such personnel, you need not read any further. FINDINGS AND RECOMMENDATIONS FROM IG REVIEW The USGS has recently undergone a review of our Bankcard Program by the Department of the Interior, Office of Inspector General (IG). While the IG identified areas warranting attention, I also want to take this opportunity to recognize that the vast majority of program participants are doing an excellent job in using their cards effectively and properly. In their final report, the IG identified five areas of weakness. Although many improvements have already been implemented since the time this review concluded, we need to periodically reemphasize the need for care in these areas. Approving official review of cardholders' statements: The IG found some approving officials were not obtaining and reviewing certified statements from cardholders or were approving statements without required supporting documentation. It is important that all approving officials follow the review procedures in the Handbook when certifying cardholders' statements. This includes insisting on timely submission of annotated statements to the approving official and review of itemized receipts and supporting documentation for individual purchases. This review constitutes our primary safeguard against misuse of the card and cannot be ignored. USGS managers are requested to support their approving officials' efforts to obtain compliance with this process. Managers and approving officials should request suspension or cancellation of the card when a cardholder is either unwilling or unable to comply with these basic documentation and review procedures. Cardholder compliance with the purchase card policies and procedures: The IG found several instances of split purchases, incomplete order logs, and what appeared to be unauthorized purchases. It is important that all cardholders follow prescribed purchase procedures, so that more burdensome safeguards and restrictions to not have to be imposed on everyone. Cardholders are also reminded that only the individual whose name is on the card may make purchases with it. Cardholders may, however, place orders by phone and have another employee pick up the order. To do this, ask the vendor to write "telephone order" on the merchant's purchase authorization form, and have the employee sign "received by" elsewhere on the form. Adequate safeguarding of purchase cards: The USGS Handbook instructs cardholders to protect their card as they would their driver's license and to keep their card in a safe place. The IG found some cases where cardholders were keeping their cards in insecure places and at least one case where a purchase card account number was posted in an office with public access, heightening the chances for fraud and abuse. These practices are unacceptable and must be curtailed or the cardholder may face disciplinary action. Whenever practical, the card should be kept in a locked drawer or cabinet when not being used. It is also important that employees not leave the card or account information posted at their work spaces or share purchase card information for use by coworkers. Oversight review of bankcard use: Since the period covered by this report USGS Office of Financial Management has implemented the statistical sampling program, which includes review of bankcard transactions. In addition, my office has begun reviewing cardholder activity reports from the bank to screen for potential misuse, such as cases of requirements splitting. In addition, we are required to begin conducting periodic "spot" reviews at the three major centers to insure that current records are being maintained and that cards are properly secured. Training: The IG recommended that USGS provide additional training opportunities for cardholders and approving officials. Since the review period, my office has developed a 3-4 hour training class on use of the bank purchase cards and given this class a number of times at Reston and the two regional centers. We will continue to schedule these sessions every few month as long as the classes fill up. We are also developing a videotape training package, which should make it more economical for employees outside the major centers to obtain bankcard training. While we have not made this training a mandatory prerequisite for issuance of a card, we encourage all program participants to avail themselves of these training opportunities. OTHER BANKCARD NOTES YEAR 2000 Compliance: Federal regulations require that we buy only Year 2000 compliant technology, unless the item will not be in use after 12/31/99. This requirement DOES apply to purchases made with the bankcard. Cardholders should evaluate contemplated hardware/software purchases to make sure they are buying only compliant technology. If your performance requirements can only be met by items that are not Year 2000 compliant, we are required to purchase both the noncompliant item and a promised future upgrade needed to bring the item into compliance before 1/1/2000. Due to this promise of future delivery, these purchases need to be accomplished by written purchase order, and should be requisitioned through your supporting field or OPS acquisition office. Revised Telecommunications Restrictions: In the course of establishing the new card contract, GSA has refined this restriction to make the card available for a number of telecommunications services. The card may now be used to pay for pager/beeper services, cell phone services, Internet access services, and local telephone utilities, as long as these purchases are within the cardholder's purchase limits. THANK YOU FOR YOUR ATTENTION AND FOR YOUR EFFORTS TO DATE IN MAKING THE PURCHASE CARD PROGRAM A SUCCESS. -- Susan McCullough Chief, Procurement Policy Branch, OPS-OAFA U.S. Geological Survey smccullo@usgs.gov 703-648-7355