Public Laws and Regulations

OMB Circular No A-123 Appendix B:  Improving the Management of Government Charge Card Programs

Appendix B of OMB Circular A-123 prescribes policies and procedures to agencies regarding how to maintain internal controls that reduce the risk of fraud, waste, and error in government charge card programs.

It covers topics such as:

• Charge card management plans,
• Training,
• Risk management,
• Performance metrics and data requirements,
• Credit worthiness,
• Refund management,
• Strategic sourcing,
• Requirements for micro purchases under Section 508 of the Rehabilitation Act,
• Environmental requirements,
• State and local tax recovery,
• Convenience checks,
• Management of property acquired by a purchase card,
• Frequently asked questions, and
• Best practices in managing government charge card programs.

To access this document, please go to:
http://www.whitehouse.gov/omb/assets/agencyinformation_circulars_pdf/a123_appendix_b.pdf

Federal Acquisition Regulations (FAR)

The Federal Acquisition Regulation (FAR) is the principal set of rules in the Federal Acquisition Regulation System. This system consists of sets of regulations issued by Federal agencies to govern the acquisition process.  That process consists of three phases: (1) need recognition and acquisition planning, (2) contract formation, and (3) contract administration.

The purpose of the FAR is to provide "uniform policies and procedures for acquisition." FAR 1.101. Among its guiding principles is to have an acquisition system that (1) satisfies customer's needs in terms of cost, quality, and timeliness; (2) minimizes administrative operating costs; (3) conducts business with integrity, fairness, and openness; and (4) fulfills other public policy objectives. FAR 1.102(b).

The FAR can be found online at:  https://www.acquisition.gov/far/index.html

Public laws and regulations specific to the purchase charge card:

American Recovery and Reinvestment Act of 2009 (P.L. 111-5)

• A section on the Tax Increase Prevention and  Reconciliation Act of 2005 (TIPRA)
• Delays the withholding of tax on government contractors until December 31, 2011 (one-year delay from the original date)

Government Charge Card Abuse Prevention Act of 2012 (P.L 112-194)

• Requires all federal agencies to establish certain safeguards and internal controls for government charge card programs, and to establish penalties for violations, including dismissal when circumstances warrant
• Increases oversight by providing that each agency Inspector General periodically conduct risk assessments and audits to identify fraud and improper use of government charge cards
• Please click here to view the S.300 Enrolled OMB Crosswalk document