• Modest items of food and refreshments, such as soft drinks, coffee, and donuts, offered other than as part of a meal
• Greeting cards and items with little intrinsic value, such as plaques, certificates and trophies, which are intended solely for presentation
• Loans from banks and other financial institutions on terms generally available to the public
• Opportunities and benefits, including favorable rates and commercial discounts, available to the public or to a class consisting of all government employees or all uniformed military personnel, whether or not restricted on the basis of geographic considerations
• Rewards and prizes given to competitors in contests or events, including random drawings, open to the public - unless the employee's entry into the contest or event is required as part of his official duties
• Pensions and other benefits resulting from continued participation in an employee welfare and benefits plan maintained by a former employer
• Anything which is paid for by the government or secured by the government under government contract
• Any gift accepted by the government under specific statutory authority, including:
• Travel, subsistence, and related expenses accepted by an agency under the authority of 31 U.S.C. 1353 in connection with an employee's attendance at a meeting or similar function relating to his/her official duties which takes place away from his/her duty station. The agency's acceptance must be in accordance with the implementing regulations at 41 CFR Part 304-1
• Other gifts provided in-kind which have been accepted by an agency under its agency gift acceptance statute
• Anything for which market value is paid by the employee

Basic Gift Rules

The basic gift rules are written to ensure that you do not accept gifts inappropriately. There are circumstances under which you may accept a gift even when it is from a prohibited source or given because of your official position. The 12 gift exceptions are:

Of the 12 gift exceptions, rule number one seems to generate the most questions. Under the $20 rule, an employee may accept an unsolicited gift of $20 or less per occasion and no more than $50 in a calendar year from one person. If the market value of a gift offered on any single occasion exceeds $20, the employee may not pay the excess value over $20 in order to accept the gift.

This means that if you were offered a $55 item by a prohibited source, you could not apply the $20 rule to the gift and pay the other $35 to account for the total $55.

If the aggregate value of tangible items offered on a single occasion exceeds $20, the employee may decline any distinct and separate item in order to accept those items aggregating $20 or less. Additional information on Standards of Ethical Conduct may be found at 5 U.S.C. 2635 or refer to your agency ethics training.

Recognizing Fraud

Fraud is any felonious act of corruption or attempt to cheat the government or corrupt the government's agents. Fraud may be committed either by government employees or by merchants. There are two responsibilities each cardholder has relative to fraud: You must be alert to the indicator of fraud and report suspected fraud immediately. Indicators of potential fraud by government employees include:

• Splitting a single requirement into multiple purchases in order to make it appear to be under the micro-purchase threshold
• Making false statements about what was purchased or how the purchase charge card was used
• Using the purchase charge card for prohibited purchases

Indicators of merchant fraud include:

• False charges/transactions
• Mischarging
• Bribes and gratuities
• Kickbacks

Reporting Fraud

You must report all indicators of fraud. Identify the responsible official(s) and report them through the proper channels. You can make reports to any of the following as appropriate:

• Your AO
• Your A/OPC
• Your Paying/Finance Officer
• Your Office of the Inspector General (call the hotline), or Office of Special Investigations (for Defense agencies)

Notice: Any intentional use of the government purchase charge card for other than official government business is considered an attempt to commit fraud against the U.S. Government and may be cause for disciplinary actions. The cardholder is held personally liable to the government for the amount of any non-government transaction. Under 18 U.S.C. 287, misuse of the purchase charge card could result in fines or imprisonment or both. Military members who misuse the purchase charge card may be subject to court martial under 10 U.S.C. 932, UCMJ Art. 132.