Cardholder Process
1. Determine whether you can purchase the product or service using the card. See lists on next page and Appendix C (Prohibited Purchases) and Appendix D (Purchases Requiring Special Attention) of the HHS Guide for details.
2. Initiate Purchase Process - Obtain written pre-approval for purchase; document the purchase file.
3. Review the requirements and plan the purchase - Make sure description is clear so vendor understands requirement; Requirement should be for standard commercial product or service; Consolidate identical requirements into single purchase where possible.
4. Ensure that there’s adequate funding to make the purchase and that it is for a current need (bona fide need) of the Government.
5 Determine if the purchase is within your single and monthly purchase limit. If not, you cannot make the purchase and must not split the purchase into two or more smaller purchases in order to make the purchase.
6. Check to see if you must obtain the product or service from a required source (see HHS Guide for details).
7. Conduct Market Research - Find sources for the needed product or service; Find source that offers “best value” to the Government.
8. Determine if the merchant accepts the card.
9. Determine if the merchant has added tax to the purchase. Ordinarily, you should request that tax be removed from the price. See HHS guide for details.
10. Ensure that no extra surcharges have been added to the price for using the card.
11. Ensure that the merchant will bill only upon shipment (for products) or upon initiating some action (for services).
12. Determine price reasonableness – If you believe the price is unreasonable, negotiate with the merchant or find another source. Document the file with price reasonableness determination if you’re buying a product or service and no comparable pricing history or information is available.
13. Purchase from merchant - Ask for any government discounts; Obtain a receipt if an over-the-counter purchase; Provide shipping information to merchant if product is to be delivered; Get receipt verification from person receiving the shipment.
14. If transaction is denied, investigate reason, contacting the bank or your A/OPC if necessary.
15. Arrange for delivery for products being shipped. Ensure that person receiving the item sends you receipt verification. Comply with property management procedures for any reportable or sensitive items received.
16. Register purchase in your log.
17. Maintain a monthly purchase file for receipts and other documentation.
18. Receive any shipped product and make sure it is the same product as ordered and undamaged. Contact merchant to correct any problems.
19. If unable to resolve any problems with merchant, initiate a disputed transaction. See HHS Guide for procedures.
20. Receive monthly bank statement (either electronically or in hard copy).
21. Reconcile monthly purchases with bank statement. Make sure that actual purchases match purchases on statement.
22. Review statement for any unauthorized charges, investigate unknown charges, and resolve with merchant or bank as necessary.
23. Review account to ensure that merchants are billing in a timely manner. Contact merchants who do not bill in a timely manner and request that they do so.
24. Submit monthly purchase and supporting information to your AO for approval.