Memorandum

Subject::  INFORMATION: Government Purchase Card                                                Date:   March 24, 2003
            Policy Violations

                 (Original signed by Vincent T. Taylor)
From:       Vincent T. Taylor
            Assistant Secretary for Administration

To:           Departmental Officers
            Heads of Operating Administrations
            Director, Bureau of Transportation Statistics

Last year the Office of Inspector General (OIG) conducted an audit of the Department's purchase card program. The audit found that while most purchase card transactions were consistent with Departmental policy, there were some violations of the Transportation Acquisition Manual. Specifically, the OIG identified instances of prohibited practices including: (1) failure of approving officials to review monthly statements to verify that purchases were authorized, as required; and (2) on several occasions, purchases that were split to avoid cardholders' single purchase credit limits.

In response to these findings, the Department's Senior Procurement Executive issued memoranda to the Chiefs of the Contracting Office and purchase card approving officials reiterating their responsibilities. These individuals were also provided a brochure listing the responsibilities for all key participants in the purchase card program. The cardholders received similar information as an attachment to their cardholder statement. The memos to the approving officials and cardholders contained specific language informing these employees that continued use of the purchase card after that date is considered an acknowledgement that they have read, understand, and will comply with all applicable regulations, policies and procedures.

I want to reaffirm and emphasize that this policy remains in effect. The purchase card policy is always current and available for review on the web site at http://www.dot.gov/ost/m60/earl/chap1213.htm#append13b and employees with any role in the program are presumed to be aware of their obligations.

For this reason, I have instituted a two-strike policy that acknowledges the possibility that an individual may violate purchase card rules unintentionally one time. A second instance, whether a result of negligence or willful violation, will require corrective action, which may range from formal admonishment to removal from the Federal service. Please communicate this policy to your subordinates and stress that you will personally hold them accountable for proper use of the purchase card, if they are cardholders, and proper review if that is their role. All of us in leadership positions are responsible for ensuring appropriate use of this business tool.

I appreciate your support for the continued success of the Department's purchase card program by addressing abuses or policy violations in a timely manner. You may contact Don Faulkner, Departmental Program Manager for Employee Relations, M-13, on (202) 366-1291 for additional information concerning this issue.

cc:  Administrative Management Council (AMC) members