AFARS -Appendix EE

DEPARTMENTOF THE ARMY

GOVERNMENT PURCHASE CARD

OPERATINGPROCEDURES

22July 2015

Tableof Contents

Chapter 1: TheGovernment Purchase Card Program

1-1.Purpose

a. Thisdocument provides the procedures to be used within the Army toestablish and manage the Army Government Purchase Card (GPC) program.Best practices are identified in Appendix A. Armyactivities may adopt more stringent internal control requirementsthan the requirements cited herein. However, as these arerisk-managed programs, activities should maintain a proper balancebetween the control environment and ease of use to ensure that thebenefits of the card continue to accrue. Theseprocedures establish Army-wide standards designed to provide all Armyactivities with a foundation upon which to build specific standardoperating procedures governing their programs.

b. Nonappropriatedactivities implement policies and proce duresgoverning t heArmy s morale, welfare, and recreation programs and generalpolicies on Nonappropriated Fund Instrumentalities (NAFI). Chaplaincy activities implement policies and procedures governingArmy Chaplain Corps activities. Army NAFIs/entities must operatewithin the parameters of these procedures.

1-2. Glossary

Acronymsand special terms are in the Glossary, Appendix J.

1-3.Background

TheGeneral Services Administration (GSA) awarded a multiple awardschedule contract for U.S. Government commercial purchase cardservices. The contractor (hereinafter referred to as the ServicingBank ) provides commercial GPCs and associated services. The Armyissues a task order to the servicing bank for its GPC services.

1-4.References

a. Federal AcquisitionRegulation (FAR), Part 13 Simplified Acquisition Procedures

b. DefenseFederal Acquisition Regulation Supplement (DFARS), Part 213.301 Government-wide commercial purchase card

c. ArmyFederal Acquisition Regulation Supplement (AFARS), Part 5113.2 Simplified Acquisition Procedures

d. TreasuryFinancial Manual, - Vol. I, Part 4, Ch. 4500, Government PurchaseCards

e. Departmentof Defense (DOD) Financial Management Regulation (FMR) Vol. 10, Ch.23, Purchase Card Payments

f. DODFMR Vol. 10, Ch. 23, Annex 1, PurchaseCard Certification Statements

g. DODFMR Vol. 10, Ch. 2, Discount Offers and Rebates/Refunds

h. DODGovernment Charge Card Guidebook for Establishing and ManagingPurchase, Travel, and Fuel Card Programs (DOD Guidebook)

i. OMBCircular No. A-123, Appendix B Revised

1-5.GPC Authority

a. TheChief of the Contracting Office (CCO) shall delegate micro-purchaseprocurement authority to individuals at the lowest level inaccordance with FAR Part 1-603-3(b). This authority may beredelegated in writing to the Level 3 or 4 Agency/OrganizationProgram Coordinator (A/OPC). Sample appointment letters are locatedat Appendix F.

b. Orientationand training on the Army purchase card program is a prerequisite toreceiving a GPC.

c. Generally,only government employees can be cardholders. However, a number ofexceptions apply:

(1) Under certain conditions, GSA can authorizecontractors to establish cards directly with the issuing bank, ifnecessary. (DOD Guidebook page A-1). Requests for GPC by contractorsworking under cost type contracts shall be forwarded to the Armycontracting officer for the cost-reimbursable contract. If thecontracting officer determines that the contractors are eligible, thecontractors must file a Request for Eligibility Determination withthe GSA SmartPay contracting officer. (AFARS 5113.202-90(b)).

(2) Foreign nationals may be designated asaccountable officials - Billing Officials (BOs) and Cardholders (CHs)provided they are direct hires, even though they may not be subjectto pecuniary liability under U.S. law. Given the above, purchasecards may be issued to foreign national employees of the Army if theymeet accountable official requirements (nomination and training).They are subject to the same disciplinary actions for card misuse asU.S. citizen employees, subject to host country agreements and locallaw. (DOD Guidebook page A-1 and DOD FMR Volume 5, Chapter 33,paragraph 330204)

(3) Junior Reserve Officer Training Corps(JROTC) Instructors are members of the Armed Forces in accordancewith AR 145-2, paragraph 4-3, and may be designated micro-purchaseprocurement authority as GPC cardholders. (FAR Part 1-603-3(b))

d. Armycardholders who are ordering officers may be authorized to use theGPC as a payment instrument for orders made against Federal SupplySchedule contracts (FSS), Blanket Purchase Agreements (BPAs), DODIndefinite Delivery/Indefinite Quantity (IDIQ) contracts that containa provision authorizing payment by purchase card, or other contractswhen authorized by the contracting officer.

e. TheGPC may provide a streamlined way of paying for contracts and othercontracts than those listed above, but a contracting officer shallfirst determine that use of the GPC is in the best interest of thegovernment (AFARS 5113.202-90(d)). See FAR Subpart 32.1110(d)and 32.1108 for instructions for use of the appropriate clause whenpayment under a written contract is made through use of the card. Ifpayment under a written contract is made by the GPC, then thecontracting officer shall insert the FAR clause 52.232-36, Payment byThird Party, in solicitations and contracts. Payment by a purchasecard may also be made under a contract that does not contain theclause at 52.232-36, to the extent the contractor agrees to acceptthat method of payment. When the clause at 52.232-36 is included in asolicitation or contract, the contracting officer shall also insertthe clause at 52.232-33, Payment by Electronic Funds Transfer—CentralContractor Registration, or 52.232-34, Payment by Electronic FundsTransfer—Other Than Central Contractor Registration, asappropriate.

f. Themaximum single transaction dollar limit for the GPC for stand-alonepurchases shall be the micro-purchase threshold as defined at FAR2.101, DFARS 213.301(2) and AFARS 5113.270-90. The maximum singletransaction dollar limit for contract payments against existingcontracts shall be as identified in the contract and shall be withinthe limits defined in the CH written Delegation of Authority letteror the contracting officer s warrant. In the event of an emergencyneed for contingency or humanitarian aid operations, the ExecutiveOffice of the President may sign into law an emergency procurementauthority allowing increased GPC and convenience check limits andrevised procedures in support of contingency and humanitarian aidoperations. In such circumstances, the Director of DefenseProcurement and Acquisition Policy also may authorize classdeviations to allow organizations to deviate from the FAR and DFARS.Such deviations may include raising GPC spending limits. Thesecontingency/emergency purchases require separate training andDelegation of Authority by the A/OPC on contingency/emergencyprocedures and authority must be issued/granted by the Chief ofContracting or other authorized person.

g. TheGPC shall be used to pay for government-owned material orgovernment-performed services received from other government sources(e.g. Defense Logistics Agency Document Services, GSA Global, andDefense Logistics Agency).

h. TheGPC shall be used as a method of payment for all commercial training$25,000 and below. The Standard Form (SF) 182 must be completed fortraining up to $25,000. If training costs exceed $25,000, submit thetraining requirement to your local contracting office. A separateand dedicated training GPC card must be issued and used to purchasetraining. These GPC training cards are only used to purchasetraining requirements.

i. Whereit is identified that the purchase is processed via a third partymerchant (such as PayPal), the CH should make every attempt to chooseanother merchant with whom to procure the goods and/or services. Iffound necessary to procure using a third party payment merchant, theBO must ensure adequate supporting documentation showing that therewas a detailed review of the purchase and that the use of the thirdparty payment merchant was unavoidable.

1-6.Applicability

Theseprocedures apply to all GPC purchases with cards issued by the Army.Non-Army tenant organizations issued Army GPCs or convenience checksby an Army contracting office are also subject to these procedures. All BOs, CHs, A/OPCs (at all levels), Resource Managers (RMs),Logisticians, and other stakeholders that participate in the GSASmartPay Purchase Card Program under the Army Level 2 hierarchy aresubject to these procedures. The policy established in this documentsupersedes previous guidance issued in the Draft Army Regulation(AR715-xx). Explanation of the Army level hierarchy is provided at1-8.

1-7.Program Organization, Roles and Responsibilities

Thegeneral roles and responsibilities of the participants in thepurchase card program are presented in the references listed inparagraph 1-4 and the following: AFARS 5113.201, Chapter 2 andAppendix A of the DOD Government Charge Card Guidebook; Volume 1,Part 4, Chapter 4500 of the Treasury Financial Manual; Office ofManagement and Budget (OMB) Circular 123, Appendix B Revised,Chapters 4.3, 4.4, and 4.8; 31 U.S.C. §3528 Responsibilitiesand Relief from Liability of Certifying Officials;DOD Financial Management Regulation (DOD FMR) Volume 5, Chapter 33 Departmental Accountable Officials, Certifying Officers andReview Officials , and DOD FMR Volume 10, Chapter 23, paragraph2303 and 2304.

a. Level2 - A/OPC duties:

(1) administeringthe Army GPC Program;

(2) establishingpolicies and guidelines;

(3) designingand maintaining hierarchies and approving subordinate A/OPCs;

(4) ensuringeffective surveillance within the ACOMs, Army Service ComponentCommands, Direct Reporting Unit;

(5) servingas a liaison with Army organizations, the Servicing Bank, the PCPMO,and GSA; and,

(6) managingand implementing technical enhancements (developing, testing anddeployment of GPC hardware/software/networking systems enhancements).

b. Level3 - A/OPC duties: Alternate Level3 A/OPC duties are the same as the Primary Level 3 A/OPC.

(1) implementing,administering, and monitoring the ACOM GPC program subject to DOD andArmy policies;

(2) servingas a liaison with Army Headquarters, the Servicing Bank, ACOM staff,and field organizations;

(3) keepingLevel 2 A/OPC apprised of GPC Program trends and issues as theyarise;

(4) providingprogram support to ACOM and installation Level 4 A/OPCs;

(5) establishingand implementing ACOM-specific policy and guidelines;

(6) disseminatingGPC Program-related information to Level 4 A/OPCs

(7) developingand writing GPC program internal control requirements, reportingmechanisms and surveillance plan.

(8) participatingin GPC programs meetings sponsored by US Bank and Headquarters;

(9) trackingtraining requirements for Level 4 A/OPCs (see section 2-2);

(10) ensuringall Level 4 A/OPCs and Alternates hold appointment letters

(11) leadingsystems implementation at Command level;

(12) maintainingGPC Program documentation: Level 4 A/OPC training records,appointment letters, certifications, etc.;

(13) ensuringall Level 4 A/OPCs meet education, training and certificationsrequirements (see Section 1-8(b));

(14) coordinatingGPC program changes with Level 2 A/OPC, including hierarchy changes,Level 3 appointments, etc.;

(15) respondingto all data calls timely and with concise, current data;

(16) overseeingLevel 4 A/OPC program controls, including BO account reviews,semi-annual surveillance, etc; and,

(17) Manageagent numbers: periodically assess the ongoing need for agentnumbers.

c. Level4 - A/OPC duties: Alternate Level 4A/OPC duties are the same as the Primary Level 4 A/OPC.

(1) managingthe day-to-day operation of the GPC Program at theinstallation/organization;

(2) assistingCHs and BOs in fulfilling their responsibilities;

(3) ensuringlocal agency training is provided to CHs and BOs via an appropriatetraining method (i.e. classroom, VTC, electronic, etc.) prior toparticipation in the GPC program;

(4) ensuringinstallation-specific training is provided to CHs on propertyaccountability procedures (in coordination with local Property BookOfficers);

(5) ensuringan alternate billing official is in place;

(6) oversightresponsibilities that may not be redelegated (e.g. annually reviewingBO and CH accounts, span of control);

(7) maintainingdelegation of authority appointment letters and a current listing ofall CHs and BOs under the Level 4 A/OPC s jurisdiction;

(8) determiningannually each CH s continuing need to maintain an account;

(9) issuingpurchase cards in controlled limited quantities to authorizedpersonnel with a demonstrated need to make purchases when reasonablynecessary to meet operational requirements;

(10) cancellingaccounts with no activity for six months; or

a) set the single purchase limit to $1 in theevent of unauthorized activity/fraud on the account.

b) receive justification in writing whenindividuals are deployed or other authorized absence for six monthsor longer;

c) receive justification in writing from BOswhen accounts that have little activity must remain open in the eventof an emergency service outage, emergency repair, contingency, etc.

(11) developingand implementing local procedures to identify and make CHs aware ofunauthorized and prohibited items from purchase with the GPC;

(12) ensuring completion of the following training for all CHs and BOs(see Section 2-2 for training links);

a) mandatory Defense Acquisition University(DAU) initial GPC training

b) local specific agency training through anyauthorized training method deemed appropriate by the activity

c) mandatory refresher training every two years

d) mandatory annual ethics training

e) U.S. Bank AccessOnline web based training

(13) maintainingtraining records including a database of all completed training;

(14) monitoringbank transaction reports to disclose potential prohibited or improperuse, and taking immediate action to address suspected legal or policyviolations;

(15) monitoringbank transaction declination reports to identify potential fraudactivity;

(16) conductingan annual review of each assigned BO s records and proceduresensuring a minimum representative sample size review of 25% of alltransactions;

(17) reviewingtransactions and buying logs within four months of newly appointedCHs; and,

(18) processingrequests for user identifications and passwords for the ServicingBank s Electronic Access System (EAS).

d. Level 5 - Billing Official duties: AlternateBO duties are the same as the Primary BO, and should only beperformed in the absence of the Primary BO.

(1) BOshould be in the CH s direct chain of command;

(2) providingwritten approval/disapproval of purchases to the CH;

(3) reconciling invoices and timely certifying the billing statement for payment andverifying payments to be legal, proper, necessary, and correct inaccordance with government rules and regulations;

(4) ensuringCHs fulfill their responsibilities by conducting an annual review ofall CHs:

(5) reportingquestionable transactions to the Level 4 A/OPC and/or appropriateauthorities for investigation;

(6) recommendingin writing appropriate GPC credit limits to the Resource Manager andLevel 4 A/OPC for CHs under the BO s oversight;

(7) reviewingCH s statement and approving CH statement in the CH s absencewithin the required time frames;

(8) identifyingand communicating billing discrepancies to the bank s transactiondispute point of contact when the CH is unavailable - for AccessOnline users;

(9) retainingan electronic (printable) or manual copy of each billing statement,and maintaining with the billing statement all original supportingdocumentation, receipts, logs, invoices, delivery tickets,approvals, etc. for six years and three months after final payment;

(10) reviewingand reconciling CH statements against receipts and documentation;

(11) notifyingthe Level 4 A/OPC (in most cases 30 days prior to the event) to closeany CH accounts for individuals who have transferred, terminated, arein absent without leave status, retired or have otherwise nofurther need for use of the GPC;

(12) notifyingthe Level 4 A/OPC of any lost, stolen or compromised cards (inaddition to the CH s immediate notification of the Servicing Bank)and submitting a report to the Level 4 A/OPC within five businessdays to detail the circumstances of the lost, stolen or compromisedcard;

(13) resolvingany questionable purchases with the CH;

(14) certifyingbilling statements electronically within 5 business days forelectronic data interchange (EDI) enabled accounts for Access Onlineusers, and forward the official invoice to the Paying Office forpayment in the case of manually paid accounts within 15 days ofreceipt;

(15) ensuringdesignation of the proper line of accounting;

(16) ensuringan Alternate BO is appointed;

(17) notifyingthe Level 4 A/OPC to terminate or reassign a BO account to a new BOprior to the BO s reassignment to other duties and/or departurefrom the installation/activity;

(18) ensuringadequate funding exists prior to approving the purchase;

(19) workingwith the bank to resolve payment issues; and,

(20) performingan annual review of CH files using the checklist in Appendix D,Section 2 (separate review from the mandatory annual A/OPC review ofBOs)

e. Level6 - Cardholder duties:

(1) makingauthorized purchases;

(2) collectingand maintaining the required documentation;

(3) maintainingfiles and records;

(4) rotatingmerchants when practicable;

(5) verifyingindependent receipt and acceptance of goods and services;

(6) verifyingthe establishment of the legitimate government need;

(7) complyingwith required sources:

(a) FARPart 8 and DFARS 208 Required Sources of Supply/Service

(b) Utilizemandatory BPAs to purchase office supplies

(c) UtilizeCHESS for IT hardware and software purchases;

(d) Section508 of the Rehabilitation Act of 1973, as amended (29 U.S.C. §794d)

(e) EnvironmentallyPreferable Purchasing (EPP). FAR Part 23.

(8) obtainingall required pre-purchase approvals in support of requirements;

(9) Screenall requirements for their availability from the mandatory Governmentsources of supply (i.e. Office Supplies - FSSI BPAs on Army Corridorof DOD EMALL);

(10) verifyingreceipt/acceptance of purchased goods or services received including tracking of partial shipments and components that must be receivedwithin the dispute window;

(11) reviewingand reconciling monthly statements;

(12) resolvingunauthorized, erroneous, or questionable transactions with merchants;

(13) disputingquestionable transactions and disputing with the merchant anyunresolved transaction for which a charge occurred during the priorbilling cycle(s) but the item(s) have not been received, and trackingthe dispute to completion;

(14) notifyingthe BO of unusual/questionable requests and disputable transactions;

(15) maintainingphysical security of the GPC (and convenience checks) to avoidunauthorized use, allow no one but the CH to use the GPC, and do notrelease the GPC account number to entities other than a merchantprocessing a transaction;

(16) notifyingthe BO of a lost, stolen, or compromised GPC within one business dayso the BO can meet the requirement to submit a report to the Level 4A/OPC within five business days;

(17) maintainingthe Servicing Bank s electronic access system (EAS) purchase logthroughout the billing cycle, reconciling all transactions, andapproving the statement of account within three business days of theend of the billing cycle;

(18) maintaininga manual purchase log if the electronic purchase log is notaccessible;

(19) ensuringadequate funding is available prior to the purchase;

(20) properlyallocating the transactions to the proper line of accounting;

(21) checkingwith the Property Book Officer to determine what is consideredpilferable property to be recorded in the property control systemsrecords or which items can be placed on a hand receipt;

(22) ensuringall pilferable and other vulnerable property receipts are provided tothe supporting Property Book Officer (PBO) within five working daysto enable the PBO to establish accountability and asset-safeguardingcontrols by recording the asset in the property control systemrecords;

(23) notifyingthe BO prior to departure, when you are on leave or travel and arenot available to promptly sign and forward the CH statement ofaccount. Forward all sales receipts and credit vouchers to the BO;and,

(24) providingto the BO upon departure the disposition of CH records and transferall CH records to the BO with all statements, supportingdocumentation, receipts, logs.

f. ResourceManagers (RMs) fund GPC purchasesusing the General Fund Enterprise Business System (GFEBS), and in thecase of organizations on legacy systems, continue to use the bulk method in lieu of creating and citing unique accountingclassifications for each individual GPC purchase. The bulk fundingmethod requires a periodic (monthly, bimonthly, quarterly, orannually) fund reservation, through obligation, equal to theanticipated purchases for that period. Bulk funds may be assigned asa single line of accounting to each CH account to cover anticipatedGPC purchases for a specified period. The Resource Manager sduties:

(1) Providea system of positive funds control by coordinating credit and cyclelimits with the BO and Level 4 A/OPC;

(2) establishingfunding for each account, at either the CH or BO level;non-applicable to U.S. Army Corps of Engineers;

(3) assistingthe Level 4 A/OPC in establishing and maintaining BO and CH accountsin the Servicing Bank s EAS; non-applicable to U.S. Army Corps ofEngineers;

(4) assigningdefault and alternate lines of accounting as appropriate;

(5) ensuringobligations are posted prior to invoicing for non-EDI accounts;

(6) assistingwith resolving accounts that are in a delinquent status and providingpayment information when requested;

(7) assistingthe Level 4 A/OPC with the surveillance of assigned accounts;

(8) monitoringGFEBS daily to identify account payment issues to prevent and resolveGPC payment delinquencies, correct Intermediate Document (IDOC)errors, and provide payment information upon request; and,

(9) providingguidance and training to installation RMs, certifying officials, andcardholders on GFEBS processes.

g. DefenseFinance and Accounting Service (DFAS) duties:

(1) maintainingthe DD Form 577 for certifying officials;

(2) receivingand processing EDI transaction sets 821, Obligation Files; and 810, invoice files, and notifying the responsible installation or activitywhen the corresponding files are not received;

(3) notifyingthe installation/activity, within one day, of rejects and interestpenalties assessed to individual accounts (confirm-does this happen);

(4) receivingand processing requests for manual payments; for example, bank systemrejects and non-EDI accounts; and,

(5) assistingin resolving GPC payment issues.

h. PropertyBook Officer duties:

(1) Ensuring established property control andaccountability procedures are developed and disseminated to allpersonnel who are entrusted with the acquisition of Army property andequipment;

(2) Assisting the A/OPC in review of thepurchase card account to ensure that property accountabilityprocedures are being followed;

(3) Compliance with accountability proceduresin AR 710-2, AR 735-5;

(4) Promptly record in agency property systems,sensitive and pilferable property purchased with the GPC; and,

(5) Determining the accounting requirements forthe GPC purchased property, such as nonexpendable or controlled(requires property to be accounted for on property book records),durable (requires control when issued to the user) and expendable (norequirement to account for on property book records).

1-8.Management of the GPC Program

a. Responsibilityfor the establishment and operation of an agency s GPC program isdelegated to the agency s Senior Contracting Official (SCO). TheSCO, or in activities that do not have a SCO, the Chief of theContracting Office (CCO), designates a Level 3 A/OPC and analternate(s) who once appointed is dedicated to the GPC Programwithin their agency/organization.

b. TheSCO or CCO forwards the Level 3 A/OPC Appointment Letter to the Level2 A/OPC using the template found at Appendix F. The letter delegatesresponsibility for managing the agency GPC program and detailsresponsibilities, training and certification requirements, and gradelevel preferences for the Level 3 A/OPC role. The Level 2 A/OPCreviews the nomination and ensures the Level 3 A/OPC meets allrequirements of the position. Once approved, the Level 2 A/OPCprovides written endorsement and coordinates Level 3 A/OPCappointment with the servicing bank. The Level 2 A/OPC is the finalapproval authority for agency Level 3 A/OPC appointments.

c. SCOs must ensureadequate resources are dedicated to the GPC program within theiragency/organization to ensure successful management of the program.Adequate GPC resources refer to an agency s efficient and effectivedeployment of assets (such as number of personnel, training, funding,facilities, knowledge and skills, etc.) when and where needed to meetagency requirements in compliance with the laws andregulations governing the GPC Program. Adequate resources must bedeployed to reasonably ensure thatprograms achieve their intended results; resources are usedconsistent with agency mission; programs and resources are protectedfrom fraud, waste, and mismanagement; laws and regulations arefollowed; and reliable and timely information is obtained,maintained, reported and used for decision making.

d. Individualsmeeting the following criteria may be appointed as Level 3 or 4A/OPCs for the GPC Program; GPC knowledge, training, and experience,basic contractin g knowledgeand/or acquisition training. The Defense Acquisition WorkforceImprovement Act (DAWIA) requires the Department of Defense toestablish education and training standards, requirements, and coursesfor the civilian and military workforce. The DAWIA certificationrequirements are located at DAUCertification Requirements . DAWIAcontracting or purchasing certification includes a training,education, and experience requirement. The Army requires Level 3 andLevel 4 A/OPCs to be DAWIA Level II certified in contracting. A/OPCsthat are not DAWIA Level 2 certified in contracting must eithercomplete the DAWIA Level 2 contracting training requirement within 24months or achieve DAWIA Level 2 certification in purchasing within 24months of being assigned to the Level 3 or Level 4 A/OPC position. This requirement is effective immediately upon appointment of allA/OPCs. Although the Level 3 A/OPC position typically warrants aminimum equivalent grade of GS-13 or higher, the grade depends on theresponsibilities, complexity, and volume of the program. In additionto certification requirements, Level 3 and 4 A/OPCs are required tohave completed the training requirements detailed in Section 2-2.

e. T heSCO management responsibility authority for the GPC Program isfurther delegated to the CCO. The CCO must ensure adequate resourcesare dedicated to the GPC program within their installation/activityto allow effective administration of the program. The CCO coordinateswith the local personnel office(s) to ensure procedures areestablished requiring individuals involved in the GPC Program toclear through the Level 4 A/OPC when they out-process from theinstallation. The Level 4 A/OPC is appointed at a sufficientgrade/rank to exercise their authority depending on theresponsibilities, complexity, and volume of the program. Onlyindividuals who meet the criteria in paragraphs 1-8(d) may beappointed as A/OPCs for the GPC Program.

1. The Level 3 and 4 A/OPCs must have the following knowledge, skills, and abilities:

(1) understandingof the relevant policies, procedures, and commercial contractingpractices;

(2) understandingof the relevant procurement laws and regulations;

(3) understandingof what constitutes and authorized purchase transaction;

(4) understandingof procurement methods and standards;

(5) abilityto communicate, organize, and manage effectively;

(6) basicanalytical and computer skills;

(7) abilityto summarize data, draft reports and write effectively using propergrammar, punctuation, and tone;

(8) abilityto analyze, research, and provide concise recommendations to thechain of command on required actions to anticipate, prevent, orcorrect problems in business processes that are supported by the GPC.

Chapter2: Establishing and Maintaining a GPC Account

2-1.Nomination, Selection, and Appointment of Cardholders and BillingOfficials

a. Nomination,selection, and appointment of CHs and BOs are in accordance withAFARS Part 5113. The nominating official must be in thesupervisory chain of the individual being nominated. CHs, BOs, andCheckwriters must be issued written authority identifying theirlimits of authority, duties, responsibilities, credit limits, and thewritten authority must reference mandatory compliance with the AFARSSubpart 5113.2 and the Army Government Purchase Card OperatingProcedures. The BO, or CH will acknowledge receipt (electronicsignature and date permissible) of appointment letters. Warrantedcontracting officers do not require a separate delegation ofauthority to use the GPC.

b. TheCH is also a Departmental Accountable Official (DAO) according toparagraph 3305 and 3306, Chapter 33, Volume 5, of the DOD FMR. CHsmust successfully complete the required GPC and ethics training to bedelegated micro-purchase authority prior to receiving a GPC (seeparagraph 2-2). The SCO or COC may delegate in writing to the Level3 or 4 A/OPC the authority to delegate micro-purchase authority toCHs. A sample delegation of micro-purchase authority is provided atAppendix F.

c. TheBO is also a Certifying Officer within the context of the GPCprogram. The Certifying Officer s minimum qualifications andeligibility are further discussed in DOD FMR Volume 5, Chapter 33.BOs are responsible for the accuracy of payments, includingdesignation of the proper appropriation(s) or other funds certifiedto the paying office and Disbursing Officer. BOs are financiallyresponsible for any illegal, improper, or incorrect payment as aresult of an inaccurate or misleading certification. To certify GPCinvoices for payment by the DFAS, the BO must be appointed as andaccept the responsibilities of a Certifying Officer using the DD Form577 and complete ethics and fiscal law training (see paragraph 2-2). The BO completes and signs the DD577 and provides to the A/OPC inorder for the A/OPC to set up the BO account. The A/OPC provides theoriginal signed and completed DD Form 577 to the supporting DFAS,ATTN: GPC. The BO and A/OPC retain a copy.

2-2.Training Requirements

a. Individualsmust complete the training identified in the chart below. Thetraining must be completed prior to issuance of appointment lettersand/or establishment of GPC accounts. Proof of training must bedocumented and retrained by the A/OPC.

b. EachLevel 4 A/OPC is responsible for providing training to CHs and BOs.No exceptions or substitutions for this training are authorized. At aminimum, the local training for CHs and BOs must cover the following:

(1) ArmyPurchase Card Program policies and procedures

(2) CHand BO duties and responsibilities

(3) CHand BO guides developed by the Servicing Bank

(4) Proceduresand techniques for the use of the Servicing Bank s EAS

(5) Funding,billing, payment, and file documentation requirements

(6) Propertyaccountability procedures

(7) EthicsTraining

(8) Requiredsources of supply

(9) FAR/DFARS/AFARScoverage of simplified acquisition procedures

(10) Recordretention requirements

(11) Prohibiteditems and items that require pre-approval for purchase

(12) Disputeprocedures

(13) Cancellationand lost, stolen, or compromised card procedures

(14) Conveniencecheck usage

(15) Oversighttools and techniques

(16) CardSecurity

(17) Emphasizeconsideration of small business concerns when making micro-purchases

(18) Mandatory use ofOffice Supply BPAs located on DOD EMALL Army Corridor

(19) Use of theAbilityOne Base Supply Centers

c. A/OPCsprovide additional training on simplified acquisitions procedures andrequired documentation to CHs who are given authority to place ordersabove the micro-purchase threshold against existing contracts(appointed as Ordering Officers), and for CHs outside the continentalUnited States (OCONUS) who have a single purchase limit in excess of$3,000 but does not exceed $25,000 (DFARS 213.301).

d. GPCA/OPCs are required to track the training (including refreshertraining) of all program participants (CHs, A/BOs, CertifyingOfficers (CO), and A/OPCs) in a system of records and ensure that therequired DAU initial and refresher training (Courses CLG001 andCLG004, respectively) have been completed. Successful completion ofthe initial training course is required before issuing cards.Successful completion of the refresher training course must besatisfied once every two years by program officials in order tocontinue in their roles. A/OPCs must ensure completion of therefresher training requirement is part of their annual review of allmanaging accounts under their cognizance.

e. CHsand BOs who fail to complete biennial refresher training must havetheir GPC account suspended until training is completed.The SCO or the local GPC activity may require refresher training morefrequently to satisfy their training or operational needs. Thetraining requirement for CHs and BOs trained at a previous dutystation may be abbreviated or waived, in writing, as determined bythe current A/OPC.

f. Alltrainees must sign a statement of training certifying they havereceived the initial GPC program training, they understand thetraining provided, GPC program training materials have been providedor made available, and they understand the penalties associated withmisuse of the card. Cardholders should provide their Level 4 A/OPCwith a copy of the training certificate and retain the original.

g. Level3 and Level 4 A/OPCs should notify all participants in the GPCprogram of changes, as they occur, through the most efficient means(e.g. e-mail, newsletters, etc.).

h. Attendanceat the annual GSA SmartPay Conference is mandatory for all Level 3and 4 A/OPCs as funding permits.

i. AllGPC personnel must receive mandatory ethics training annually inaccordance with AR 350-1 paragraph G-18 and DOD 5500.7-R, the J ointEthics Regulation.

j. GSAdeveloped and hosts an online training course for to help A/OPCs andCHs understand their role and responsibilities. To visit thePurchase Charge Card Online Training, go to the GSA SmartPay®website at https://training.smartpay.gsa.gov .

The servicingbank provides an A/OPC Guide available in hard copy and/or via theInternet at https://access.usbank.com/cpsApp1/index.jsp2476933.

k.Section 508 of the Rehabilitation Act (29 U.S.C 794d), as amended,requires that Federal agencies purchase and use electronic andinformation technology (EIT) that is accessible to people withdisabilities and conforms to Section 508 standards. Visit http://www.section508.gov/ for more information and Section 508 compliance training titled Micro-purchases and Section 508 http://www.section508.gov/index.cfm . GSA developed several online and CD training modules that can beaccessed at: http://www.section508.gov/index.cfm?FuseAction=Content&ID=5 . The requiring activity must identify IT deliverables covered bySection 508 and then identify the applicable technical standards;functional performance criteria; and information, documentation andsupport that apply to each IT deliverable to produce products thatconform to the accessibility standard.

2-3.Account Establishment

a. GPCsare issued only as mission requirements dictate. Only DOD civilianemployees, military personnel, or members of the Armed Forces may beissued a GPC or be appointed a BO. GPCs may not be issued tocontractor personnel, except as provided in Section 1-6. JuniorReserve Officer Training Corps (JROTC) instructors, OCONUS localnational employees of the Army, and host Government direct hires forOCONUS agencies/organizations whose salaries are reimbursed by theArmy, are not considered DOD contractors, and may be designated asCHs and BOs.

b. Thespending limits and cycle limits can be changed as necessary to meetoperational needs. The RM Office establishes the default andalternate lines of accounting for the proper designation ofappropriation, and inputs the spending limits in Access Online(AXOL).

c. EachGPC account has a single purchase transaction limit and monthlypurchase limit. Generally the single purchase limit is themicro-purchase threshold. The cumulative spending total of all CHs monthly purchases make up the billing cycle limit for the BO. Totalmonthly purchases may not exceed the billing cycle limit that isestablished in the Servicing Bank s transaction authorizationsystem. The CH s monthly spending limits are modified by the RM inAXOL when operational circumstances warrant. The Level 4 A/OPC isnotified of the monthly spending limits change, approves the change,and forwards the change to the Servicing Bank.

2-4.Account Maintenance

TheLevel 4 A/OPC is required to maintain current account information.

2-5.Liability of the Government Cardholders and Billing Officials

a. Useof the GPC by an authorized CH to make an unauthorized purchase isthe liability of the Government. However, theinstallation/organization is responsible for taking appropriateaction against the CH including efforts to recover the funds.

b. Theintentional use of the GPC for other than official Governmentbusiness may be considered an attempt to commit fraud against theU.S. Government. Misuse may result in immediate cancellationof an individual's card, financial liability, and negativeadministrative and/or disciplinary action against the CH and, ifwarranted, against the BO.

c. Liability: GPC BOs are personally and pecuniarily liable for the full amount ofany improper payments resulting from misuse, abuse, or unauthorizedpurchases of the GPC, in accordance with Title 31 U.S.C. § 3528.Strict pecuniary liability attaches automatically when there is anerroneous (illegal, improper, or incorrect) payment. GPC CHs arepecuniarily liable for erroneous payments that result from thenegligent performance of duties in the amount of erroneous payment,up to one month s pay. All accountable officials are required tocomply with DOD regulations, policies, and procedures, includingstandard operating procedures. Failure to act in accordance with suchregulations, policies, and procedures is generally consideredevidence of negligence. Following orders from superiors that arecontrary to regulations, policies, and procedures, is no defense tonegligence or bad faith. A heavy workload or a lack of experience,supervision, or training, is not a factor in determining relief fromliability.

d. Statutoryauthority: Any misuse of the GPC is subject to criminal, civil,Uniform Code of Military Justice, administrative, and disciplinaryactions as appropriate.

(1) CHs: DOD FMR defines a CH as a DAO, and as such, are liable for up to onemonth s pay for misuse resulting from their negligent actions. DODDirective 7000.14-R imposes financial liability for negligentperformance of the CH s duties. The FMR Vol. 5, Chapter 33, §3309also discusses pecuniary liability. Accountable Officials shall bepersonally and pecuniarily liable for erroneous payments that resultfrom the negligent performance of duties in the amount of theerroneous payment, up to one month s pay.

(2) BOs:Title 31 U.S.C. §3528 provides for personal and pecuniary liabilityfor improper payments resulting from misuse/abuse of the purchasecard for Certifying Officials. The GPC BO meets the definition forCertifying Officer in the DOD FMR. The BO is financially liable forimproper payments resulting from misuse or abuse of the GPC. The actof certifying a billing statement for payment makes the BOfinancially responsible for illegal, improper, or incorrect paymentdue to an inaccurate or misleading certification. Consequently, a BOwho knowingly makes a false certification may be asked to repay theGovernment for the items or service purchased. If a BO is unsureabout certification, he/she should contact the supporting Level 4A/OPC for guidance and/or assistance.

e. InvestigationRequired: When a review/audit of the GPC account indicatesquestionable purchases, to include unauthorized purchases, thereviewer must ask the Certifying Officer for justification. If thereis no justification, the reviewer must notify the BO s Commander orDirector. The Commander or Director must conduct an investigation inaccordance with AR 15-6. The investigation must provide the DODemployee or military member with an opportunity to rebut the presumedliability. Failure to follow regulation and policy constitutesnegligence.

2-6.Card Suspension Policy

a. Inaccordance with DOD business practices, when any of the followingconditions exist the Servicing Bank automatically suspend BO accountswhen:

(1) BO saccount goes over 60 days past due (90 days after the billing date),that BO s account, and those of all assigned CHs within theaccount, is suspended until the delinquent payment is posted at theServicing Bank.

(2) BO saccount goes over 180 days past due (210 days after the billing date)all accounts assigned under the respective Level 4 A/OPC issuspended.

(3) BO saccount has more than 20 open Card and/or checking accounts, the BO saccount is suspended unless a waiver has been approved by the ArmyLevel 2 A/OPC.

b. Onlythe Army Level 2 A/OPC may reopen suspended accounts before the causeof the suspension has been corrected. Before reopening a closedaccount due to a delinquent payment, the Level 3 A/OPC documents thepayment was made to the Servicing Bank to clear the delinquency.Accounts will be closed permanently if more than two suspensionsoccur within a 12-month period. Only the Army Level 2 A/OPC mayapprove waivers to this policy.

2-7.Card Security

a. CHsare responsible for properly using and safeguarding their GPCs. Onlythe CHs make purchases using their GPC. The CH must maintainthe physical security of the card. If the card is lost or stolen,notify the issuing bank, A/BO, and A/OPC immediately.

b. Inaddition to corrective or disciplinary action, military personnel whomisuse their GPC may have their access to classified informationmodified or revoked if warranted in the interest of nationalsecurity. Commanders and supervisors shall follow Army guidance toensure that security clearance reviews are conducted when the holderof a government purchase card comes under investigation for cardmisuse.

c. TheServicing Bank must ensure that adequate controls are in place toensure the security of transaction data within theirelectronic access system. Only the cardholder or A/BO can approve,dispute, or reallocate purchase card transactions. TheServicing Bank must ensure that adequate controls are in place withintheir data warehouse to preclude anyone other than the A/BO oralternate A/BO from accessing, making changes and certifying themonthly bill.

Chapter 3: OperationalGuidance and Procedures

3-1.Making Purchase Transactions

a. Requiringactivities must perform acquisition planning to: consider strategicsourcing vehicles; identify procurement needs; and initiateprocurement actions with sufficient lead time to buy appropriateproducts at the right price from the right suppliers in a timelymanner. Requirements and logistics personnel should avoid issuingrequirements on an urgent basis or with unrealistic delivery orperformance schedules, since it generally restricts competition andincreases prices.

b. CHsshould consider small businesses and installation AbilityOne BaseSupply Centers to the maximum extent practicable, when makingmicro-purchases to increase their participation when using the GPCbelow the micro-purchase threshold.

c. Purchaserequirements exceeding the micro-purchase thresholdmust be referred to a contracting office for formalcontracting action. Splitting requirements into smaller parts toavoid formal contracting procedures, competition requirements, or tokeep spending limitations under the micro-purchase threshold isprohibited. GPC micro-purchases should be distributed equitablyamong qualified suppliers, in accordance with FAR 13.202(a)(1), withspecial consideration paid to supporting your installation AbilityOneBase Supply Center, and local, small, and small disadvantagedbusinesses. When purchasing from FSSs and BPAs, cardholders mustreview prices on at least three contracts/agreements, unless it is acompetitively awarded BPA and select the best value item for theirrequirements.

d. CHswho receive authorization and training from their Level 4 A/OPC mayuse the GPC to make commercial purchases up to $25,000 if the CHmaking the purchase is located outside the United States and thepurchase is for use outside the United States (OCONUS). CH s mustuse mandatory sources identified in this regulation (e.g. FAR Part 8,DOD EMALL for office supplies), before deciding to use outsidecommercial vendors. For the use of the GPC outside the United States,CHs must follow policy in accordance with DFARS 213.301(2).

e. OCONUS Units. For CONUS purchases for useoverseas, the CH must contact their local Director of LogisticsTraffic Management Office for assistance regarding transportation andpackaging requirements and/or instructions prior to contacting thevendor. CHs must ensure the final price includes all costs associatedwith the mode of transportation and packaging selected to thedestination country, customs import duties, and any other chargesthat may accrue. Consult DOD Directive 4500.54-E,DOD Foreign Clearance Program (FCP) prior to therequisitioning action to ensure compliance with host nation customsrequirements.

f. TheGPC may be used as a method of payment (MOP) for simplifiedacquisitions and contracts in accordance with DFARS 213.301, AFARS5113.202-90 and 5113.270-90. An individual authorized as an Armyordering officer, and other designated contracting personnel may usethe purchase card as a method of payment up to the limit asidentified in the contract; under the supervision of the contractingofficer or from Army contracts that, by their terms, expressly allowArmy ordering officers to place orders and pay with the GPC asidentified in AFARS 5113.202-90. GPCs contract payment cards must beissued and dedicated solely for this purpose.

g. FederalProcurement Data System - Next Generation (FPDS). Agencies areresponsible for collecting and reporting Army procurement data toFPDS as required by FAR Subpart 4.6. The requirements for reportingGPC actions to the FPDS is contained in DPAP memo dated 26 October2010, http://www.acq.osd.mil/dpap/pdi/eb/docs/Reporting_GPC_Actions_to_FPDS_(Oct_26_2010).pdf ,and DFARS PGI Part 204.6.

h. CHsmay place orders online via the Internet if authorized by theirinternal agency procedures to do so. When making online purchases,CHs must take appropriate measures to safeguard their account numbersat all times and ensure they are purchasing on a secure Web site.

3-2.Use of the GPC forTraining and Education

a. The GPC shall be used by Trainingand Education Office personnel, and may be used by CHs, to payfor commercial off-the-shelf training and education up to $25,000 foran individual or planned series of the same training event, activity,or course material - AFARS 5113.270-90(g). GPC training cards mustbe issued and dedicated solely for this purpose.

b. The Standard Form (SF)-182 (Request,Authorization, Agreement, Certification of Training andReimbursement) remains the authorized and required training sourcedocument. GPC payment for commercial off-the-shelf training must beaccompanied by an SF-182.

c. GPC training cards are established with asingle purchase limit of $25,000. Use of theGPC above the training micro-purchase level of $25,000 constitutes apayment mechanism, not a contracting method. Any use of the GPCabove $25,000 as a payment method for commercial services must have avalid underlying contract in which payment can be made using the GPC. Training cards will have all merchant category codes (MCCs)blocked except the following sources of training:

7392 -Management, Consulting and Public Relations Services

7399 - BusinessServices (Not Elsewhere Classified)

8220 - Colleges,universities, junior colleges, and other professional schools

8241 -Correspondence schools

8244 - Allbusiness/secondary schools

8249 -Vocational/trade schools

8299 - Schoolsand Education Services (Not Elsewhere Classified)

3-3.Use of the GPC for Military Tuition Assistance

The GPC shall be used for the payment ofmilitary tuition assistance invoices. DD Form 2171, Request forTuition Assistance (TA), provides financial assistance for voluntaryoff duty education programs in support of soldiers professionaland personal self development. Advance payments are authorized underthe TA Program in accordance with AR 621-5. All course enrollmentsmust be approved prior to start of class. Soldiers must request TAthrough www.GoArmyEd.com, prior to the course start date or beforethe school s late registration period.

3-4.Reimbursement of Training Expenses

Commandersat all levels must insure that the Government's interests areprotected when an employee fails to complete training for which theArmy pays all or part of the training expenses. (This includes bothGovernment and non-Government training.)

a. Government training . If an employee fails tocomplete training satisfactorily, one of the following actions willtake place:

(1)If failure is due to the employee's negligence or willful misconduct,disciplinary action will be taken.

(2)If failure is for reasons beyond the employee's control (such asillness or recall by proper authority), no action will be taken.

b. Non-Governmenttraining .

(1)If an activity pays for training only when the training is completedor requires the employee to share the training costs, the activitywill fully inform the employee in advance. In some cases, thisinformation may be included in the continued service agreement.(Training must still be approved in advance.)

(2)If an employee fails to complete non-Government trainingsatisfactorily, actions in (a) or (b) below will be taken. Employeesmust be advised in writing of these requirements before the trainingstarts.

(a) If the failure to complete training is due to the employee'snegligence or willful misconduct, he or she must repay trainingexpenses other than salary costs. If appropriate, disciplinary actionwill be taken.

(b) If failure is for reasons beyond the employee's control, no actionwill be taken.

3-5. Required Sources ofSupplies and Services

a. Specificguidance on use of required sources and order of precedence ofsources is prescribed in FAR, Part 8, and DFARS, Part 208, e.g.,National Industries for the Blind (NIB), National Industries for theSeverely Disabled (NISH), Federal Prison Industries (a.k.a. UNICOR),and FSS/GSA schedule requirements. In addition to those mandatorysources listed in FAR Part 8, cardholders should strongly considerusing small and small disadvantaged businesses whenever possible. The AbilityOne Program is a mandatory source ofsupply, with any procurement method and at any dollar value, incompliance with the Committee for Purchase from People Who AreBlind or Severely Disabled statute, (41 U.S.C. §8501-8506). The AbilityOne Program'smandatory status remains in effect for all purchases--including thoseunder the micro-purchase threshold. A full line of AbilityOneproducts can be found at your local installation AbilityOne BaseSupply Center, DOD EMALL Army Corridor, and through AbilityOne.comwhere installation agreements do not exist for Base Supply Centers.

http://www.abilityone.com/OA_HTML/ibeCZzpHome.jsp?sitex=10020:22372:US

b. Inaccordance with AFARS 5139.101-90(a), Computer Hardware, EnterpriseSoftware and Solution (CHESS) is the Army s mandatory source forcommercial Information Technology (IT) hardware and softwarepurchases. CHESS, accessible at https://chess.army.mil ,is a set of multiple award Indefinite Delivery Indefinite Quantity(IDIQ) contracts that offer IT products and services that comply withNETCOM, Army and DoD policy and standards. Cardholders must utilizeCHESS contracts and DoD enterprise software agreements firstregardless of dollar value. Any purchase made outside of the CHESScontracts requires a waiver. The waiver process is located at https://chess.army.mil . Waivers are granted when products are unavailable on CHESS contractsor when hardware and software is available at a lower price from analternate source. A CHESS waiver does not constitute approval topurchase any product or deviate from any other Army regulation orpolicy. Individual waivers are approved by CHESS and Armyorganization/activity blanket waivers are approved by the Army ChiefInformation Officer (CIO)/G-6. There is no fee associated with usingCHESS and cardholders should maximize the use of discounts whenordering off CHESS contracts.

Ifno small business capability exists, CHESS contract vehicles are thepreferred source for acquisition of IT services. Waivers from CHESSare not required when procuring IT services. However, if IT Hardwareand Software are required as part of a non-CHESS IT servicescontract, a waiver for the hardware and software is required.

c. Green procurement is thepurchase of environmentally preferable products and services (see FAR23.202, 23.403, and 23.703). The ArmyGreen Procurement PolicyMemorandum, dated 22 Nov 06,establishedthe Army Green ProcurementProgram (GPP) policy that All Army personnel must comply with green procurement requirementsto facilitate attainment of the DOD goal of 100% compliance withmandatory Federal purchasing preference programs (see AR 70-1). The Army Green Procurement Guide provides an overview of the Federalprocurement preference programs and guidance on implementing aneffective GPP including A/OPC and cardholder responsibilities. Acopy of the guide can be found at: http://www.garrison.hawaii.army.mil/sustainability/Documents/SustAcquisition/ArmyGreenProcurementGuide.pdf .

(1) Training on GPP requirements should be conducted when cards areissued and on a recurring basis to provide updates and remind buyersof responsibilities and procedures. The Level 3/4 A/OPC shouldensure that initial card training includes a module on greenprocurement, particularly the mandatory GPP requirements. Greenprocurement training is available from sources found in the ArmyGreen Procurement Guide.

(2) The Level 4 A/OPC is responsible forensuring GPP compliance and documenting noncompliance on thesemi-annual surveillance report.

(3) Cardholders must show preference to recycled content and biobasedproducts whenever they are cost effective and meet technicalrequirements. Installations must consider environmental factors inall purchasing decisions and give preference to those products andservices designated by or recommended in Federal green purchasingpreference programs.

(4) Per the National DefenseAuthorization Act of 1998, as of January 1, 2004, paper purchasedusing the GPC must be 50% post-consumer recycled paper. If 50%post-consumer recycled paper is not available for purchase, then asan alternative to meeting the standards for all printing and writingpapers, the minimum content standard shall be no less than 50%recovered materials.

(5) Acquisition of EPA-designated items that do not meet the EPA minimumrecovered material standards must be justified in writing if over themicro-purchase threshold. Awritten determination must cite one or more of the following reasonsand be maintained by the cardholder for exemption from recoveredmaterial standards:

(a) Items containing EPA-recommended recoveredcontent standards are not available within a reasonable period oftime.

(b) Items are only available at anunreasonable price. Include sufficient information to support pricedecision.

(c) Items are not available from a sufficientnumber of sources to maintain a satisfactory level of competition.Include list of sources queried.

(d) Items based upon technical verificationfail to meet performance standards or specifications.

3-6.Separation of Duties

a. OMBstandards for internal controls require that key duties andresponsibilities be divided or segregated among individuals to ensurethey do not exceed or abuse their assigned authority, OMB CircularA-123, Appendix B Revised, paragraph 4.3. Separation of duties is aninternal control activity, intended to provide checks and balances tothe GPC process, to prevent or minimize innocent errors orintentional fraud occurring without detection. This is done byensuring that no single individual has control over multiple phasesof a purchase card transaction. To protect the integrity of theprocurement process, no one person is responsible for an entirepurchase card transaction. Key purchase card functions must behandled by different individuals. Inadequate separation of dutiescould allow errors and fraud to occur without detection. Key duties,such as making purchases-CH, authorizing payments-BO, certifyingfunding-RM, and reviewing transactions-Level 4 A/OPCs and PBOsmust be assigned to different individuals in order to minimize therisk of loss to the Government to the greatest extent possible.

b. Ifresource constraints prevent assignment of the key duties todifferent individuals, as set forth in paragraph (a) above, theactivity must request a waiver through the Level 4 A/OPC and the CCOto the Level 3 A/OPC for approval, and will require additionalsurveillance.

c. Notwithstandingthe above-described waiver process, certain key duties must not beassigned to the same individual. In no case shall the same individualbe the CH and the BO for a GPC account. In no case shall the CCO,Property Book Officer, or any Level 4 A/OPC (primary or alternate)also be a CH, BO or contracting officer who is making contractpayments with a GPC or executing GPC purchases. A CH, who is a handreceipt holder, should not purchase property for their own use. PCOLS provides the functionality to generate a report identifyingpotential conflicts of interest in GPC Program duties.

3-7.Span of Control

a. TheArmy standard for span of control for a Level 4 A/OPC is 300accounts. This number includes both BO and CH accounts. A ratio ofnot more than seven card accounts to an A/BO is the Army standard. Ensuring a reasonable number of card accounts are assigned to eachA/BO or Certifying Officer account is paramount to the effectiveaccomplishment of the A/BO or Certifying Officer sresponsibilities. The total number of transactions, as well as thenumber of assigned card accounts, must be considered when determiningan acceptable account-to-A/BO ratio. Span of control refers to theextent of oversight and review responsibilities placed on a singleA/OPC or BO. An appropriate span of control must efficiently andeffectively allow the A/OPC or BO to provide reasonable assurancethey can effectively perform their responsibilities regardless of thenumber of accounts assigned. The assigned span of control mustfactor in a Level 4 A/OPC s responsibility to conduct an annualreview of all BO accounts including semi-annual surveillance of 25%of all transactions under his/her oversight. A span of control toolarge may preclude the A/OPC from accomplishing this task effectivelyand efficiently.

b. Whenthe number of accounts (300:1 accounts per A/OPC) or workloadcomplexity/administration assigned to a Level 4 A/OPC exceeds theArmy standard, the SCO and the CCO must ensure adequateresources are made available to allow the Level 4 A/OPC ssuccessful performance of his or her duties. When the span of controlexceeds the Army standard by more than 10 percent and the CCO electsnot to provide additional resources, the CCO must provide the SCOwith formal documentation stating that the CCO has personallyreviewed the existing span of control and has determined the span ofcontrol is adequate to ensure program administration and surveillancecan be performed at a satisfactory level. The Level 3 A/OPC mustretain a copy of this documentation.

c. Whenthe ratio for CH accounts to BOs exceeds the Army standard, the BOshall prepare a request for a waiver to policy. The approval levelsfor waivers are indicated in paragraph 3-7e. The total number oftransactions as well as the number of assigned CH accounts must beconsidered when determining an acceptable card and/or checkingaccount-to-BO ratio.

d. Uponthe nomination and approval of a prospective CH and during the annualreview of BO accounts, the Level 4 A/OPCs determines if the span ofcontrol is acceptable—that is, whether the BO can reasonably beexpected to complete a thorough review of all transactions andcertify the invoice within five business days of its receipt.

e. TheLevel 4 A/OPC documents all cases where the CH-to-Billing Officialratio exceeds the Army standard. In these cases, the BO prepares arequest for a waiver to policy. The request must address the uniqueconditions that affect the process and show, with a high degree ofcertainty, that the BO can be expected to comply with the review andcertification procedures. The request must include the number andlocation of assigned CHs, the total average number of transactionsmade by the CHs, the amount of time the BO can devote to thecertification process, the history of delinquencies, and otherfactors that seem appropriate. The waiver is approved at thefollowing level indicated below and maintained by the approver withcopies furnished to the BO:

(1) 8-10CHs accounts: Through the Level 4 A/OPC to the CCO.

(2) 11-19CHs accounts: Through the A/OPC (Level 4 and Level 3) to the SCO.

(3) 20or more CHs accounts: Through the A/OPC (Level 4, Level 3, to theLevel 2).

3-8.Tax-Exempt Status

a. CentrallyBilled GPC accounts are exempt from state tax in EVERY state butrequire tax exemption forms in 13 states, including Florida, Georgia,Louisiana, Michigan, Minnesota, Rhode Island, South Dakota,Tennessee, Texas, Utah, West Virginia, Wisconsin, and Wyoming. Forpurchases within the United States, the CH informs the merchant thatthe purchase is for official U.S. Government purposes and, therefore,is not subject to state or local sales tax. The GPC is embossed withthe statement U.S. GOVT TAX EXEMPT and the CH will point thisstatement out to any merchant attempting to apply taxes to apurchase. In those states where a tax exemption form is required,the CH obtains the required form from the GSA SmartPay Website at:

https://smartpay.gsa.gov/about-gsa-smartpay/tax-information/state-response-letter .By clicking on the state in the map, there is a link to download therequired forms, as well as contact information for the Department ofRevenue should additional questions arise. CHs are responsible forensuring no sales tax has been included in their purchase, exceptwhere applicable.

b. Exceptionsto the state tax rules above include Hawaii and Illinois. Bothstates levy a General Excise Tax (GET) on businesses selling tangiblepersonal property which is allowed to be passed on to the FederalGovernment (customer).

c. Somecompanies, such as Amazon, have established a Tax Exemption Program,in which the CH must enroll in order to receive the tax exemption atthe point of sale. The GSA SMARTPAY® SMART BULLETINs are found at: https://smartpay.gsa.gov/news/smart-bulletins .

3-9.Surcharges

a. Surchargesare fees that a retailer adds to the cost of a purchase when acustomer uses a charge/credit card. As a result of the settlementbetween a class of retailers and the brands, on January 27, 2013,merchants in the United States and U.S. Territories are permitted toimpose a surcharge on cardholders when a charge/credit card is used.

b. Notall merchants impose a surcharge, and some states (California,Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, NewYork, Oklahoma and Texas) have laws which do not allow or limitsurcharges. Cardholders who receive a surcharge or a check out feein any of the above mentioned states should report the merchant tothe state Attorney General s Office.

c. Surchargesmay not be added to debit, prepaid or cash purchases and cardholdersare required to be notified in advance of making the purchase if amerchant will impose a surcharge. Merchants must also include thesurcharge fee on any receipt(s) provided to the cardholder.

d. PerVisa and MasterCard guidance, there is a limit to the allowablesurcharge amounts. These limits vary by brand and by merchantdiscount rate. Information on surcharge limitations for Visa andMasterCard is available at:

http://www.mastercard.us/merchants/support/surcharge-rules.html

http://usa.visa.com/personal/using_visa/checkout_fees/index.html

e. A/OPCsshould ensure cardholders and other charge card management personnelare aware of the possibility of surcharges when making purchasesusing credit/charge cards. If a merchant is imposing a surcharge,the cardholder should consider choosing another merchant that offersthe same or similar item(s) to avoid paying the surcharge.

3-10.Property Accountability

a. Personnel who are entrusted with the acquisition of Governmentproperty are responsible for its proper custody, safekeeping, andaccountability in accordance with AR 710-2 and AR 735-5. .

b. GPC Property Book Procedures:

(1)PBO approves purchases on purchase request form prior to delivery ofthe PR form to the cardholder; (2) Cardholder screens PR form toensure PBO approval obtained prior to making the purchase:

(3)Cardholder provides purchase receipt to PBO within 5 days ofobtaining the receipt per AR 710-2;

(4)Monitoring and oversight reviews must assess whether cardholdersprovided the GPC receipts to the PBO per AR 710-2; and

(5)Training must be updated to include the above procedures.

3-11. StatementReconciliation and Certification

a. The CH reconciles the statement of accountthroughout the month by reviewing it for accuracy and comparing itwith his or her purchase log entries. If the statement is correct,the CH approves it within three business days from the end of thebilling cycle. If the statement is incorrect, the CH must contact themerchant and request correction. If the merchant does not cooperateor provide the ordered goods and services, the CH disputes theincorrect transaction.

b. TheBO must ensure GPC transactions are legal, proper, and correct inaccordance with Government rules and regulations. If the billingstatement is correct following the BO s review throughout themonth, certification of the billing statement is done within fivebusiness days from the end of the billing cycle. If the BO findsquestionable transactions, the CH must be contacted to reviewsupporting documentation. If the BO determines the CH is negligent,the BO takes appropriate action in accordance with DOD and Armypolicy, and informs the Level 4 A/OPC of the action taken. Disputesmust be filed by one of three methods: calling the Servicing Bank,faxing over a Cardholder Statement of Questioned Items form or usingthe Servicing Bank s dispute process in AXOL, within 60 days of thecycle end date in which the transaction appeared in order to retainthe Government s dispute rights.

c. IndependentReceipt and Acceptance. The cardholder ensures receipt andacceptance of goods, services, and accountable (to include sensitive,classified, and pilferable) property purchased is properly performedand confirmed through proper documentation by an individual otherthan the CH. The date received, along with the signature (orelectronic alternative when supported by appropriate internalcontrols), printed name, telephone number, and office designator oraddress of the receiving official will be recorded on the salesinvoice, packing slip, bill of lading, or other shipping or receivingdocument as confirmation of receipt. The billing official verifiesthe existence of receipt and acceptance documentation duringreconciliation of the billing statement.

3-12.Confirm and Pay

a. TheArmy certifies invoices for payment after all purchased items havebeen confirmed. This procedure has been called Confirm and Pay . Each BO must establish a system to flag and track all transactionscertified for payment with proof of receipt and acceptance. Thisprocedure ensures all transactions reconciled and approved forpayment have receipt verified.

b. Underthe following condition, the Army has adopted the following processin order to allow the Servicing Bank to be paid for items that havebeen shipped by the merchant but not received by the organization t oprevent withholding payment of the entire billing statement for a fewtransactions. Transactions that have been reconciled and approvedfor payment will have receipt verified no later than 45 days afterthe date of the original invoice. If receipt and acceptance cannotbe verified, the CH shall protect the Government s rights bydisputing the transaction prior to the end of the dispute period.

3-13.File Retention

a. Theapproving or certifying official maintains certified billingstatements and supporting documents for six years and three months inaccordance with National Archives and Records Administration (NARA),General Records Schedule (GRS) 6, Accountable Officers AccountsRecords . See DOD FMR Volume 15, Chapter 6 for additionalinformation on document retention for accountable officers records(10 years from the date of case closure for Foreign Military Sales).

b. Allfinancial records, both paper and electronic, must be retaineddocumenting the GPC transactions in a file to include (1) the BOstatement, (2) the CH statement, and (3) all original receipts anddocumentation for those statements.

c. Receipts are considered supporting documentsfor the certified billing statement and in accordance with the DODFMR, Volume 1, Chapter 9, must be retained for six years and threemonths after final payment. Original receipts are preferred; however,printed electronic forms or copies of an itemized receipt areacceptable. The receipt must be legible; goods must beitemized/detailed with the item description, quantity, price, andextended price; indicate vendor s name and address; date of thepurchase; and must indicate paid by credit card or zero amount due.The BO maintains these records, either physically in his/her physicalpossession, or when appropriate transfers to a records holding area.However, if certifying electronically, the CH and BO may rely on theServicing Bank recordkeeping for the BO and CH statements. Originalrecords are the property of the U.S. Government and may not beremoved from government control by the BO for any reason.

d. Level4 A/OPCs shall retain hard copy file documentation for Governmentcredit card files documenting application for cards and approval,account maintenance, letters of GPC delegation (CH or BO), ethicscertification (if applicable), required training certifications,results of annual reviews, and related information for three yearsafter the fiscal year in which the card account is cancelled.

e. Documentsreceived and/or generated by the cardholder to support transactionsshall be retained for six years and three months after final payment.Data residing in the bank s electronic access system is maintainedby the bank for six years and three months. Reports may be retrievedfrom the Bank s electronic access system (EAS) for the previous twoyears. Reports covering data for periods beyond the previous twoyears are available from the Bank upon request.

3-14.Convenience Checks and Foreign Draft Checks

a. Conveniencechecks and Foreign Draft Checks (FDCs) provide activities with theflexibility to issue checks for payment of supplies and services.With the exception of contingencies, convenience checks shall not bewritten over the micro-purchase threshold. Convenience checks areissued for domestic purchases valued in U.S. dollars when themerchant does not accept the GPC. DOD activities have the flexibilityto issue convenience checks to pay for products and services at theactivity level. FDCs are issued for overseas purchases valued inforeign currency when the merchant does not accept the GPC. Thefollowing requirements apply to one or both of these financialinstruments as specified.

b. TheCH shall not use a convenience check or FDC unless its use isconsidered advantageous to the activity after evaluating allalternative methods of purchase. Convenience checks and FDCs may notbe used to avoid the normal GPC payment process. Before a check isissued, the paying agency must make every effort to use the GPC,including making maximum efforts to find and use merchants thataccept the GPC. The authority to maintain a checkbook shall bejustified on an individual organization basis and controlled andmonitored by the organization s CCO. The number of checkbooks perinstallation must be kept to a minimum. A delegation of procurementauthority is granted in writing by the CCO for the maintenance anduse of convenience checks.

c. Conveniencecheckbook accounts are available only to organizations that maintainactive GPC accounts in good standing. A convenience checkbook holdermay have a GPC account and a separate convenience checkbook account.Convenience checks are pre-numbered, and their use is controlled witha separate convenience check purchase log for each account. Checkbookholder shall maintain original voided checks.

d. Conveniencechecks and FDCs are not issued for more than the micro-purchasethreshold (or the foreign currency equivalent), and must be issuedfor the exact payment amount. In the case of an FDC, the paymentamount includes the administrative processing fee. However, in thecase of convenience checks, the payment amount does not include theadministrative processing fee. The convenience check processing feeis added by the servicing bank during processing of the transaction,and the addition of the processing fee is not considered a splitrequirement. Splitting payment amounts across more than oneconvenience check or FDC to keep the purchase amount per check belowthe micro-purchase threshold limit is prohibited. Convenience checksand FDCs will not be issued as an exchange-for-cash vehicle toestablish cash funds. If merchants issue credit or refunds by cash orcheck, the funds must be immediately credited to the account againstwhich the purchase was originally made.

e. Conveniencechecks and FDCs are negotiable instruments and must be stored in alocked container, such as a safe or locking filing cabinet. Checksmust be accounted for appropriately to prevent loss, theft, orpotential forgery. Convenience check and FDC accounts must bereviewed quarterly by a disinterested party and not the A/OPC. Thechecks are reconciled just as other GPC transactions, as a part ofthe monthly statement billing cycle. Copies of voided checks must beretained through the carbon copy or photocopy the original check as apart of the account-holder's original documentation files.

f. Thesame purchase prohibitions that apply to the GPC apply to theconvenience check and the FDC.

g. Thenormal dispute process associated with the GPC is not applicable toconvenience checks and FDCs. Any concerns over a purchase made with acheck must be resolved directly with the merchant. The check writeris solely responsible for securing credit or disputing purchases withthe merchant. Each organization is responsible for all checks writtenon an account; unless it is determined fraud is involved (see Section4-5 on fraud). In some cases, payment can be stopped on a conveniencecheck that has been written if the check has not yet been posted toan account. To stop payment on a check, the check-writer must callthe Servicing Bank s Customer Service Department to receiveinstructions on processing the action.

h. FDCaccounts are established in the contracting office. Customeractivities desiring FDC accounts outside the contracting office mustjustify, in writing, to the CCO why an account is necessary. FDC BOs,cashiers, and custodians must receive standard GPC training prior tobeing issued active FDC accounts.

i. Thecheck cashier is the only person who has the authority to issue andsign checks. He or she may hold a GPC account in addition to theconvenience check FDC account, as long as the accounts are maintainedseparately.

j. Thecheck custodian orders, receives, stores, issues, inventories,reconciles, and disposes of FDC stock. He or she is not responsiblefor approving and processing requirements for check writing.

k. TheBO authorizes and certifies the issuance of FDCs written by thecashier. In order to maintain effective internal controls, the BO maynot perform the check-writing and maintenance functions of thecashier and custodian. All convenience checks and FDCs must bereconciled as a part of the monthly billing statement at the end ofthe billing cycle.

l. Establishing Convenience Check Accounts. Any U.S. Governmentemployee, military or civilian, including local national employees,may be selected for appointment as a check writer. Contractorsworking for the Army must not to be selected for appointment.Requests to establish convenience check accounts must be justified inwriting by the organization s Commander/Director and forwarded tothe Level 4 A/OPC. If approved, a delegation of procurement authorityis granted in writing by the CCO, for the maintenanceand use of convenience checks. Required information mustconsist of the following:

(1) Reason for requesting checks

(2) Types of vendors the check will be writtento

(3) Estimated dollar amount of checks intendedto be written within a 12-month period

(4) Single and monthly purchase limits

(5) Check writer s complete name, officename, address, e-mail, phone/fax number

m. Use of Convenience Check Accounts.

(1) Conveniencechecks may be used for small purchases, when supplies or service areavailable for delivery within 15 days whether at the contractor splace of business or at destination. Convenience checks must not beused for employee reimbursements, cash advances, cash awards,travel-related transportation payments, or meals. Purchases made withthe check must not require detailed specifications or an inspectionreport. Convenience checks should not be used for recurring payments.

(2) Conveniencechecks may be used for purposes not related to small purchases whensuch expenditures are authorized by other regulations such as:

(a) Delivery charges associated with thepurchases made with a convenience check when the contractor isrequesting to arrange delivery. These charges include local delivery,parcel post including cash on delivery (COD) postal charges, and linehaul or inter-city transportation charges, provided the charges aredetermined in the best interest of the Government.

(b) C.O.D. charges for supplies ordered forpayment with a convenience check upon delivery.

n. TaxReporting - The 1099 Tax Reporting Process (TRP) was developed tocollect convenience checks written for services, rent, medical andhealth care services and other Internal Revenue Service (IRS)requirements. This data is used to process IRS 1099-MISC forms. TheBO is responsible to monitor the check writer's compliance with1099-TRP.

(1) Conveniencecheck holders must submit check data to DFAS on any checks they issuefor tax reportable categories. This should be done throughout theyear and is suggested to be completed monthly, and can be doneon-line once the check writer and their corresponding A/OPCofficially request access to the 1099 TRP. The 1099 TRP is restrictedto authorized users only. Access is optional for the BO, but may benecessary to fulfill the BO's responsibility to ensure the checkwriter is compliant with 1099 TRP.

(2) 1099TRP System Access: To obtain access, users must complete two systemaccess forms, DD form 2875 and DD form 2869. The link to access theSystem Access Request Forms is:https://dfas4dod.dfas.mil/systems/1099/.Carefully follow the instructions for completing the forms. All checkwriters and A/OPCs must complete both forms. Fax completed forms to614-693-5452 or Defense Switched Network (DSN) 869-5452, or scan andemail them to cco.checks@dfas.mil.Prior to accessing the 1099-TRP, all users should read theConvenience Check User's Manual.

3-15.Office Supply Blanket Purchase Agreements (BPAs)

TheArmy must satisfy requirements for supplies and services from orthrough the sources and publications listed in the descending orderof priority in FAR Part 8.002. The Office Supply BPAs fall undermandatory Federal supply schedules and must be utilized for officesupply purchases unless an exception applies. The Office Supply BPAscan be accessed through the Army Corridor of the DOD EMALL site: https://dod-emall.dla.mil/acct/ . The primary goals of the Office Supply BPAs are to ensure thatoffice product purchases are in compliance with the statutorypreferences afforded to products manufactured under the AbilityOneProgram, capture economies of scale, and realize significant savingswhile providing opportunities for small business. Exceptions to themandatory use of the BPAs and DOD EMALL are as follows:

(1) Thispolicy does not apply to purchases made Outside the ContinentalUnited States (OCONUS) .

(2) Purchasesmade directly from AbilityOne or from AbilityOne BaseSupply Centers (BSCs). Cardholdersmay purchase office and cleaning supplies directly from AbilityOneBase Supply Centers and are exempt from using the Office Supply BPAs. These products are available at Base Supply Centers on militaryinstallations or in federal buildings.

(3) Cardholdersmay purchase National Stock Number (NSN) items directly fromAbilityOne BSCs and are exempt from using the Standard Army RetailSupply System (SARSS) or the Office Supply BPAs. When NSN productsare not available from the BSCs, then cardholders should use theSARSS to purchase NSN Products.

(4) Purchasesmade from wholesale supply sources such as stock programs of theGeneral Services Administration (e.g. GSA Global Supply Center).

(5) Cardholdersmay purchase an item from another source if an urgent need exists foran unplanned requirement needed for the same day. Poor acquisitionplanning and inadequate market research would not apply to thisexception. Use of this exception requires valid documentation andretention in the purchase card file.

(6) NAFI cardholders must comply with therequired sources (see paragraph 3-5). When purchasing officesupplies, NAFI GPC cardholders shall consider the AbilityOne BaseSupply Centers or the Office Supply BPAs on the DOD EMALL ArmyCorridor as a practical choice. If it is not in the best interestof the NAFI to purchase through AbilityOne Base Supply Centers or theOffice Supply BPAs, the cardholder may consider other requiredsources. The cardholder must adequately document the decision to notpurchase from the AbilityOne Base Supply Centers or the Office SupplyBPAs before an open-market source can be considered.

(7) Inthe event the DoD EMALL is unavailable for more than 24 hours,cardholders may place orders with the Office Supply BPA vendorthrough another form of communication.

3-16.Rebates/Credits

a. Rebatesare posted as credits against billing statements and applied at thebilling statement level unless specified otherwise by the Level 2A/OPC. Rebates are automatically assigned to the default line ofaccounting (LOA) on the billing statement. BOs should reallocate therebates across various LOAs (of the same appropriation) to the extentthat no single LOA has a credit balance. Under no circumstance willthe CH retain gift checks, vendor rebates or other purchaseincentives that can be converted to personal use. If received, theseitems must be turned over to the U.S. Treasury.

b. Unlessspecific authority exists allowing rebates to be used for otherpurposes, rebates must be returned to the appropriation or accountfrom which they were expended, and can be used for any legitimatepurchase by the appropriation or account to which they were returned,or as otherwise authorized by statute.

c. Credittransactions are posted as credits against billing statements,applied at the billing statement level. When a closed accountcarries a credit balance the amount shall be sent via check to theLevel 4 A/OPC. The check will be addressed to US Government or USTreasury. The Level 4 A/OPC shall work with his/her RM in identifyingan account and in determining how the credit is distributed withinthe installation.

d. Reimbursementssuch as rebates, merchant credits, or other credits attributable toaccounts closed during the quarter or accounts not having enoughpurchases to offset the credit, require the Servicing Bank to issuequarterly checks to the Level 4 A/OPC. Merchant credits must beapplied back to the funding appropriation. Rebates must be used inthe fiscal year they are received.

e. EachLevel 4 A/OPC is directed to deliver all reimbursement check(s) totheir RM within five (5) days of receipt, retain a copy of eachreimbursement check(s), and obtain the RM's signature acknowledgingtheir receipt and acceptance of the reimbursement check(s). The CH,BO, and RM should have a process to ensure adequate controls are inplace to track credits and rebates. Questions related toreimbursements in the form of a rebate, merchant credit, or othercredit should be directed to your local RM. CHs must forward theirmonthly cardholder statement to the BO with the appropriatesupporting documentation, within 5 working days, to maximize rebatesand minimize prompt payment penalties.

f. Rebatepolicy guidance is available in the DOD FMR Volume 10 Chapter 2, OMBCircular A-123 Appendix B Chapter 7, and DOD Charge Card GuidebookAppendix K paragraph 13.

Chapter4: Management Controls and Program Oversight

4-1.Management Controls

a. Thissection provides specific management controls required of GPCprograms, guidelines for disciplining abusers, and other controlinformation. Office of Management and Budget (OMB) Circular A-123,Appendix B, provides additional guidance on implementing stronginternal controls. PCOLS is designed to both maintain the integrityof these controls and validate their effectiveness in safeguardingGovernment resources. Management officials are responsible forestablishing a process of internal controls that is (1) designed toprovide reasonable assurance that the GPC program is usedefficiently, effectively, and legally to achieve the purpose forwhich the program was established and (2) is in compliance withapplicable laws and regulations.

b. RequiredManagement Controls include:

(1) Maintain Purchase Log: All CHs arerequired to maintain either an electronic or a manual log (if notelectronically enabled) for each transaction made using the card.

(2) Maintain Positive System of FundsControl: Spending limits (such as monthly and officelimits) are tied directly to the funding allocated for each cardaccount (monthly, quarterly, and semiannually). Fund limits should beconsistent with historical spending patterns to minimize Governmentexposure and ensure adequate funds availability. This provides anoverall control to ensure funding is available prior to purchasesbeing made with the card.

(3) Ensure Separation of Duties: Forthe GPC, a mandatory management control is the separation of duties.Key duties such as making purchases (CH), verifying purchases areproper (A/BO), authorizing payments (BO and FSO), certifying funding(Finance and Resource Managers), independent acceptance foraccountable property, and reviewing and auditing functions (A/OPC andProperty Book Officers) must be assigned to different individuals tothe greatest extent possible to minimize the risk of loss to theGovernment.

(4) Reconciliation/Approval by the CH:During each billing cycle, CHs are required to reconcile the CHstatement they receive from the issuing bank against the purchasecard log they are required to maintain for card purchases.

(5) Reconciliation/Approval by the A/BO:After the CH has approved his/her entire CH statement, he/sheforwards the electronic or hard copy file to the cognizant A/BO. TheA/BO is required to approve or reject each purchase made by the CHsunder his/her hierarchy. When the A/BO has completed their review ofeach invoice submitted for his/her card accounts, the A/BO, acting inthe role of Certifying Officer, can certify the entire invoice aslegal, proper, and correct in accordance with his/herresponsibilities.

(6) Exercise Dispute Authority: TheCH has 60 days from the date of the billing statement to dispute thetransaction.

(7) Exercise/Maintain AuthorizationControls: Appropriate spending limits and Merchant Category Code(MCC) access are tailored to each CH account. Spending limits and MCCaccess should reflect historical buying patterns/trends.

(8) Systems Access Security: Appropriatesafeguards must be in place to control issuance and safeguarding ofaccess credentials to the EAS.

(9) Available Funding Integrity: Certifiedlines of accounting (LOAs) must be traceable through disbursement.All changes to LOAs must be documented and certified.

(10) Invoice Integrity: An electroniccertification process ensures the original electronic invoice istraceable from the vendor through the certification and entitlementprocesses and retained in a Government record. Should the originalinvoice submitted by the contractor be in paper form, the CertifyingOfficer shall determine if the invoice is proper for payment andaffix his/her signature in accordance with the governing provisionsof the DoDFMR .If appropriate, the Certifying Officer makes any required pen andink changes on the original invoice to reallocate the payment todifferent funding lines from those reflected on the original invoice.The Certifying Officer determines whether these changes are properand affix his/her signature with the standard certification languageon the original paper invoice.

4-2.Surveillance Reporting and Surveillance Reviews

a. TheLevel 4 A/OPC must conduct a review of 100% of BO accounts annuallyto include a minimum representative sample size of 25% oftransactions for each BO account. TheA/OPC should utilize PCOLS Data Mining/Risk Assessment (DM/RA)reviews, transactional reportsfrom the Bank s EAS (or other electronic oversight process), DoDChecklist and Certification Template (appendix D), and the FormalReporting Requirements Template (Appendix G) to perform the review.

b. Reviews may be conducted in person, remotely, or electronicallydepending on the size, complexity, and past review history of the BOaccount. Reviews should focus on transactionactivity and overall adherence to the purchase card programrequirements, as well as provide a response to previous findings andrecommendations and resulting corrective actions taken. Resultsof the review should be documented and briefed tothe BO and the BO's supervisor detailing findings, discrepancies,issues, and/or identifiable trends.

c. Inconjunction with reviewing all BO accounts annually, the Level 4A/OPC is responsible for drafting a semi-annual surveillance reportand providing it to the Level 3 A/OPC (due April 21 ^st and October 21 ^st ). The report should address all aspects of the activity s GPCprogram, including BO/CH account/transaction reviews; appointment andaccount issuance/maintenance; GPC usage requirements; GPCdocumentation, processing, and financial requirements; conveniencecheck writer requirements; and training.

d. Inreporting BO/CH account and transaction data, the review shouldinclude the following: at least 25% of transactions based on arepresentative sample of data, inclusion of high risk transactions asflagged in Access Online and PCOLS, and transactions from every BOand CH account. The semi-annual surveillance report must thoroughlyanalyze and summarize all items addressed in the DoD Checklist andCertification Template (Appendix D) and the Formal ReportingRequirement Template (Appendix G). The report should beall-inclusive as to provide a clear, precise representation of theagency GPC Program and its daily operations.

e. Level3 A/OPCs must conduct semi-annual reviews of all Level 4 Programswithin their oversight and must provide a formal semi-annual report(due May 1 and November 1) to the Army Level 2 A/OPC. The reportshould provide the results of the surveillance programs for theirprospective organization, should summarizerepetitive or systemic weaknesses by activity, and should address allaspects of a surveillance plan. The surveillance report shouldprovide a detailed summary of the reports provided by his/herrespective Level 4 A/OPCs. The report must be drafted and presentedto the Level 2 A/OPC using the template found at Appendix H whichsummarizes all aspects of the GPC Program, consistent with the DoDChecklist and Certification. All area of the template should befully analyzed, discussed, and supported with metrics, concreteexamples and evidence that a surveillance plan was implemented andsurveillance conducted throughout the reporting period.

f. TheLevel 2 A/OPC will provide an Army-wide GPC Semi-annual surveillancereport describing the Army GPC Program. The report will identifytrends, corrective actions, and dates for implementing changesthroughout the GPC community to support identified program trends,strengths and weaknesses. The Level 2 A/OPC may interview Level 3and/or Level 4 A/OPCs to gain further insight into GPC trends acrossthe Army GPC program and may perform a separate random sample reviewof GPC transaction to determine whether or not identified trends aresubstantiated.

1. Review reports must be maintained on file for six years and three months. Repeat findings from the previous fiscal year review report may result in suspension of your account.

2. Convenience check and FDC accounts shall be reviewed quarterly by a disinterested party and not the BO of the convenience check account or A/OPC.

3. Reports of surveillance reviews must provide information to each management level, which identifies repetitive problems and systemic weaknesses at the individual and organizational levels.

4. A/OPCs, BOs, and CHs must use PCOLS to assist and monitor the use of the GPC.

5. The Army shall use PCOLS as an electronic tool for managing its GPC program.

Seesection 4.4 for a description of PCOLS. PCOLS enables A/OPCs toconduct oversight and surveillance of an organization s GPC programutilizing PCOLS reporting capabilities. By clicking on the PCOLSReporting section upon logging into the PCOLS website, the A/OPCis able to run various reports based upon her/her role in PCOLS. These reports assist the A/OPC in identifying GPC program trends andstrengths and weakness and should be monitored and used inconjunction with conducting GPC surveillance. The Army GPC ProgramOffice will utilize PCOLS reporting capabilities to decipher theoverall health of the GPC Program and to validate finding of eachagency s semi-annual surveillance and Office of Management andBudget (OMB) report findings.

4-3.Suspected Fraud or Abuse

a. Allinstances of suspected fraud or abuse must be reported. Variouschannels of reporting include the Chain of Command, the A/OPC, thecommand s procurement fraud advisor (Staff/Command Judge Advocate),the servicing Criminal Investigation Division office, internal revieworganizations, and Inspector Generals at all levels.

b. Thefollowing may be indicators of possible fraud,waste, or abuse:

(1) Repetitivebuys from the same merchant;

(2) Lackof documentation for a purchase;

(3) Failureto safeguard cards and account numbers;

(4) CHs/BOauthorizing the use of their cards by others;

(5) Inadequateoversight by BOs and agencies;

(6) Paymentsmade for items not received;

(7) Splitpurchases to avoid spending limitations;

(8) Lackof accounting for items requiring accountability;

(9) Paymentdelinquencies incurring interest penalties;

(10) Approvalof a CH s statement of account by someone other than the CH orA/BO;

(11) Unauthorizedpurchases; and,

(12) CHsreturning merchandise to merchants for store credit vouchers insteadof having credits issued back to their GPC accounts.

4-4.Purchase Card Online System (PCOLS)

a. PCOLSis a DoD-wide suite of electronic systems that GPC officials use toimprove the management and accountability within their GPC programorganizations. PCOLS is comprised of five applications: EnterpriseMonitoring and Management of Accounts (EMMA), Authorization,Issuance, and Maintenance (AIM), PCOLS Reporting, Data Mining (DM),and Risk Assessment (RA). PCOLS is Common Access Card (CAC) enabledto ensure secure authentication and nonrepudiation. Due toenhancement of program oversight, the Purchase Card On-Line System(PCOLS) is mandated for GPC participants Army-wide and accessible at: https://www.dmdc.osd.mil/appj/pcols-web / .

b. EMMAis used to capture and define organizational purchase cardhierarchies, document authority chains, and identify relationshipsamong purchase card roles. EMMA increases the accuracy of personneldata and institute more robust inclusion of supervisors (e.g.,cardholder and managing account supervisors). EMMA acts toelectronically define the GPC hierarchy, the roles within thehierarchy, and assigns individuals to those roles. Additionally, EMMAenables the A/OPC to alter or remove any personnel from assignedroles reflecting changes to hierarchy structures, also known asprovisioning.

c. AIMis used to initiate, approve, and transmit requests for GPC issuanceand maintenance actions. AIM draws from hierarchies (e.g., roleresponsibilities and permissions) established in EMMA. It directlyengages GPC supervisors, helps ensure business rules comply withinternal organizational management controls, and is a workflow toolperforming various GPC Program account authorization and maintenancefunctions.

d. DataMining (DM) programmatically reviews 100% of the DoD purchasecard transactions using sophisticated intelligent/learning softwareand identifies correlations, patterns, and trends in purchase cardbuying actions. This transaction review allows daily, near-real-timemining of the data. The Case Manager, which is an integral componentof DM, interprets the referred transactions and creates specificcases that are assigned to the Approving/Billing Officials (A/BOs)for review. Through the use of the Case Manager Interview Process,the A/BO demonstrates that due diligence is exercised in the reviewof the referred transactions. With this DM tool, scarce humanresources can be targeted on identified high-risk transactions andmaintain a record of actions taken on referred transaction reviewsfor improved internal audit ability of the program.

e. RiskAssessment (RA), together with results from the DM Application,assess and report on the overall "health" of a DoDorganization's purchase card program. RA allows users to monitorrisks associated with their purchase card program. Users assess therisk of their purchase card program by monitoring certain riskcontrols on a cycle-by-cycle basis. This monitoring is accomplishedthrough the following components within the RA Application: controls, dashboards, and quarterly reports.

f. PCOLS automatically un-provisions, orremoves users from their PCOLS roles in EMMA when their retirementsor separations are reported to the Defense Enrollment EligibilityReporting System (DEERS). DEERS receives personnel informationupdates from the DoD services and agencies on a regular basis.

g. Asdiscussed in Section 2-2, PCOLS users are responsible for completingDAU GLG005, Purchase Card Online System (PCOLS) prior to GPCappointment and GPC account issuance. DAU GL 005 providescomprehensive role-based PCOLS training and assists in understandinghow to utilize the preceding applications in providing oversight ofyour GPC Program.

4-5.Violation of Army GPC Procedures

If,as a result of findings from a surveillance visit, or by any othermeans, the A/OPC discovers a CH or BO has violated GPC procedures,the A/OPC shall document the violation and take action to resolve thenoncompliance to include, if necessary, retraining of the CH or BOand/or temporarily suspending the CH or BO s GPC privileges. Anydeterminations to cancel or permanently suspend a CH or BO accountshall be made by the Level 2 A/OPC, CCO or designee (e.g. Level 3 or4 A/OPC), and their findings forwarded to the CH or BO ssupervisor. Continual violation of GPC procedures by an individualCH or BO shall result in termination of GPC privileges. A/OPCs shallverify that all potentially fraudulent and erroneous transactionsthat have been identified are disputed and properly resolved. Evidence of deliberate abuse shall be referred to the CH s and/orBO s Commander by the CCO for appropriate action in accordance withthe Uniform Code of Military Justice or civilian disciplinary rules.Evidence of fraud or other criminal activity shall be referred, bythe Commander/CCO, to the appropriate investigative body (e.g. Officeof the Inspector General (OIG), Army Audit Agency (AAA)) or otherinvestigative body for a follow up investigation. The violation andaction taken shall be documented in the A/OPC s files.

Appendix A: Best Practices

1. Account Establishment

a. Onlythose personnel with a continuing need to use the GPC are appointedas CHs. The BO must advise the Level 4 A/ OPCwhen one or more of the following conditions apply: CH no longer hasa continuing nee d to use the card; CHtransfers to other duties or organizations, retires, or leavesGovernment service. The BO must confirm in writing the actual cardassigned to the CH was returned and destroyed. During the annualreview of a BO s account, the BO will advise/recommend to the Level4 A/OPC whether, based on mission requirements and purchase history,a continuing need for the GPC is justified for each assigned CH.

b. TheLevel 4 A/OPC reviews and approves the spending limits the RM assignsto the CHs, and forwards to the bank the approved spending limits andmerchant codes based on a reasonable estimation of what the CH needsto buy as part of the activity mission and function (RM setup forBOs/CHs in EAS). The spending limits and cycle limits must be set ata level commensurate with historical spending, anticipatedrequirements, and available funding of the activity or organization.Limits should not be based on unlikely contingencies.

2. Account Maintenance

TheLevel 4 A/OPC is required to update account information (i.e. changesin a CH s name, address, spending limits). The CH must promptlyreport lost, stolen, or compromised cards to the Servicing Bank sCustomer Service Center, BO, and Level 4 A/OPC. The Servicing Bankmust immediately block the account from accepting additional charges.

3. Use of the GPCfor Non-Personal Services

Recurring servicesperformed at regular intervals having a demand that can be accuratelypredicted on an annual basis may be purchased with the GPC if they donot exceed $2,500 per fiscal year. Recurring services requirementsestimated to exceed $2,500 per fiscal year shall be acquired throughthe servicing contracting office. Non-recurring servicesinvolve one-time, unpredictable, or occasional requirements, and maybe purchased with the GPC up to $2,500 whenever a requirement occurs.If any doubt exists as to which category a service falls under, thecardholder shall consult with the local contracting office for awritten determination.

4. Card Security

CHsmust take appropriate precautions comparable to those taken to securepersonal checks, credit cards, or cash. CHs must maintain physicalsecurity of the card to preclude compromise. The card should never besurrendered unless it is going to be cancelled. Additionally, theaccount number should not be released to other than the vendor

AppendixA: Best Practices (continued)

processingthe transaction. The card is not to be used as a company card (e.g.if the CH is to be away, someone in the office, who is not theauthorized CH, borrows the CH card and makes purchases using thecard). This is prohibited. Only the CHs can make purchases usingtheir GPC.

5. AbilityOne Program

TheAbilityOne Program strives to ensure that its products are pricedwithin the fair market range. Obtaining a commercial product at alower price than an AbilityOne product is not a valid reason tocircumvent the AbilityOne Program mandate. If you feel theAbilityOne product is priced significantly higher than a commercialitem, you should contact the AbilityOne Program for guidance. AbilityOne does not offer a general-use, white, 8.5 x 11 or 30%recycled copy paper. AbilityOne s copy paper is for letterheadapplication and is archival quality. Since AbilityOne is not amandatory source for a general-use paper (30% recycled is consideredgeneral use), you don t need a waiver from AbilityOne for thepurchase of general-use copy paper and may purchase from AbilityOneBase Supply Centers or another source such as the office supply BPAson the DOD EMALL Army Corridor.

6. Property Accountability

ThePBO will acknowledge screening of all purchase requests on thepurchase request form and the cardholder will screen the purchaserequest form for PBO approval prior to making the purchase. Thecardholder must provide a copy of the purchase receipt to the PBOwithin 5 days after receipt In rare situations where scarce humanresources and operation readiness dictates, a PBO may be appointed asa CH or BO, but to ensure separation of duties, PBOs that are alsoBOs or CHs may not purchase items they use requiring propertyaccountability. PBOs or their representatives will ensure propertyaccountability procedures are being followed. .

7. Contingency Operations

a. ActiveComponent Units: Units deploying in support of contingency operationsshould take their locally issued GPCs with them to use whiledeployed. Prior to deployment, coordinate with the ContractingActivity that has contracting authority in the contingency area tosee if there are special requirements for using the GPC whiledeployed in the Area of Responsibility (AOR), and ensure the cards lines of accounting are properly funded. If after coordination withthe contracting authority for the deployed area, it is determined thedeploying units are not taking their GPCs, these accounts must betemporarily suspended by the A/OPC, upon notification from the BO,during the period of deployment. If GPCs are authorized whiledeployed, the local RM must make appropriate adjustments to the linesof accounting/EDI flags and routers, and additional information mustbe entered in the Servicing Bank s EAS. The BO must notify the

AppendixA: Best Practices (continued)

A/OPCin writing if GPCs are authorized while deployed. GPCs OCONUS willbe managed to meet program requirements of the issuing agency.

b. ReserveUnits and National Guard: Mobilizing reservists may use their GPConce they arrive at the Mobilization (MOB) station. The reserveissued GPC shall no longer be used. The Reserve A/OPC deactivates themobilized soldier s GPC account at this point, through temporaryclosure or termination. The gaining activity in the contingencyoperation area determines if a soldier requires a GPC. If it isdetermined that the mobilized reservist requires a GPC, the unit scommand identifies the FORSCOM home station responsible for itsissuance. All GPC accounts (CH and BO) for mobilized reservists aremanaged by the FORSCOM home station installation A/OPC to which thecontingency unit is assigned. Cards are to be used in theater formission essential requirements only. The A/OPC provides a GPCCH worksheet to the CH to assist the CH with contingencypurchases.

8. Prohibited Purchases andRestrictions on GPC Use

EachCH is authorized to buy necessary supplies and services providedthere is adequate funding, the items are purchased at a reasonableprice, and are not prohibited.

AppendixC provides general rules regarding prohibited purchases. In mostcases, Appendix C allows the CH to determine whether a particular buyis appropriate. This list is not all-inclusive and should besupplemented by ACOM and installation GPC standard operatingprocedures, as necessary. In addition to the items listed inAppendix C, CHs must obtain pre-purchase approval and documentationaddressing the bona fide need for requirements that appear to beoutside the normal needs of the requesting organization. CHs mustensure that all purchases are properly documented, and that necessaryapprovals are obtained prior to making the purchase.

9. Merchant category Code Blocks andOverrides

a. Thebanking community has established a code system to categorizemerchants by the goods and services they provide. These MCCs are usedwithin the Servicing Bank s card processing system to authorize ordecline purchase transactions based on controls established for eachGPC account.

b. Basedon their MCCs, various classes of merchants have been blocked fromdoing business with the Army through the GPC. These merchants haveidentified themselves as specializing in certain products or servicesthat are not authorized for official purchases with the GPC. Theunauthorized MCCs are:

(1) 4829- Wire Transfer/Money Orders

(2) 5932- Antique Shops

(3) 5933- Pawn Shops

(4) 5937- Antique Reproductions

AppendixA: Best Practices (continued)

(5) 5944- Jewelry Stores

(6) 5960- Direct Marketing Insurance

(7) 6010- Financial Institutions: Manual Cash Advance

(8) 6011- Financial Institutions: Automatic Cash Advance

(9) 6012- Financial Institutions: Merchandise and Services

(10) 6051- Non-Financial Institutions: Foreign Currency, Money Orders, andTravelers Checks

(11) 6211- Security Brokers/Dealers

(12) 6760- Savings Bonds

(13) 7012- Timeshares

(14) 7273- Dating and Escort Services

(15) 7995- Betting, Casino Gaming Chips, and Off-Track Betting

(16) 8651- Political Organizations

(17) 9211- Court Costs, Alimony, and Child Support

(18) 9222- Fines

(19) 9223- Bail and Bond Payments

(20) 9311- Tax Payments

(21) 9700- Automated Referral Service

c. Amerchant that has been blocked may still sell items that areauthorized for purchase with the GPC. If a CH determines that he orshe must make a purchase from a source that has been blocked becauseof its assigned MCC, the following procedures apply. The request tooverride a merchant s blocked MCC must be prepared by the BO of theCH who wants to make the purchase. The request must contain the nameand masked account number (show only the last 10 digits of theaccount number) of the CH, a description of the item(s) to bepurchased, the merchant s exact name and address, the MCC that mustbe overridden, the estimated dollar amount of the purchase, theestimated date of the purchase, and a description of efforts tolocate a source other than the merchant with the blocked MCC. Inaddition, the request must specify the need for the particularrequirement (for example, a special magnifying glass, available onlyfrom a jewelry store, needed to examine circuit card wiring). Therequest is routed through the appropriate Level 4 A/OPC to the Level3 A/OPC for approval. Approvals are granted on atransaction-by-transaction basis. This process does not allowrecurring purchases from a restricted merchant. If the request isapproved, the Level 4 A/OPC contacts the Servicing Bank to have thespecific transaction approved from the restricted merchant. The CHhas five days to make the purchase. At the time of purchase, the CHadvises the merchant to call the Servicing Bank s Customer ServiceDepartment and provide the following information:

(2) GPCnumber, CH name and billing address.

(3) GPCexpiration date.

(4) Purchaseamount.

(5) Advisethat this transaction has been coordinated through the Army Level 4A/OPC.

AppendixA: Best Practices (continued)

10. Monitoring and Surveillance

a. Monitoringand surveillance of the GPC program are shared responsibilities. Allstakeholders in the program, including RMs, PBOs, and local audit andoversight organizations, have a part in ensuring that the GPC is usedin the proper manner and only authorized and necessary officialpurchases are made. The Servicing Bank s EAS gives all A/OPCs andRMs the capability to electronically review CH transaction details ona daily basis. This tool must be used to maintain the highest levelof visibility over this program.

b. Level4 A/OPCs annually inspects 100% of Billing Officials and arepresentative, randomly selected sample of transactions of each BOaccount. Hands-on reviews are preferred, but alternative methods areallowable. The Level 4 A/OPCs reviews the selected transactions toverify that the BOs and CHs are following correct procedures andprocesses. The Level 4 A/OPCs are encouraged to include participationfrom representatives of the local Resource Management Office as wellas other local oversight organizations in their surveillanceprograms. At a minimum, these reviews must address compliance withformal GPC purchase and payment procedures, appropriateness ofspending limits, span of control, and property accountability. Reviewguidelines and checklists are provided in Appendix D. The A/OPC willutilize the surveillance tools in the Servicing Bank s EAS.

c. TheA/OPC performs an annual review of the ongoing need for existingcards and makes a determination to cancel or allow unused cards toremain open. Cards with no activity for more than 6 months should becancelled or the continued need documented. An annual review ofcredit limits on each CH account must be performed and credit limitsadjusted based on an analysis of individual CH expected usage or pastspending patterns.

11. Metrics and Reporting

Thereare many reports available through the Servicing Bank s EAS toassist all A/OPCs in the management and oversight of the GPC program.In addition to reviewing these reports, A/OPCs at all levels collectand maintain certain metrics to assess the performance of theirprogram. These include the following:

(1) Metricslisted in OMB Circular A-123 Appendix B Chapter 5.3

(2) ArmyLevel 2 A/OPC reporting requirements listed in Appendix G.

(3) Spanof control ratios for accounts listed under the A/OPC and BO.

(4) Datamining reports available through the Servicing Bank s EAS whichfocus on purchase card activity for indicationsof potentially fraudulent, improper, or questionable purchases.

(5) Thenumber and dollar amount of transactions.

AppendixA: Best Practices (continued)

(6) GPCcentralized training database - monitor adherence to GPC programtraining requirements.

(7) Annuallyassess relevancy and appropriateness of GPC training.

(8) FinancialControls - at a minimum every 6 months monitor and assess singleand monthly purchase limits.

(9) FileRetention - annually review A/OPC files for up-to-date delegationletters for BOs and CHs, corrective action plans, documentation forapplication for cards and approvals, account maintenance, ethicscertification, required training certifications, and results ofannual reviews.

(10) SuccessionPlanning - at a minimum annually assess availableresources/workforce to ensure continuity of needed skills andabilities at a grade level commensurate with responsibilities toperform and fulfill GPC duties and responsibilities.

(11) Thereporting for purchases for special operations or contingencyoperations (such as Hurricane Katrina). American Recovery andReinvestment Act (ARRA) funding may also be used with the GPC. The CHmust keep track of ARRA funding purchases through choosing theselection in the drop-down list in EAS.

(12) A/OPCMatrix of internal control weaknesses resulting from the annualreviews of the BOs and CHs.

12. PaymentDelinquency Monitoring.

a. A/OPC'sand Financial Managers can view in Access Online which accounts havenot been approved before U.S. Bank takes suspension action. By usingthe Managing Account Approval Status Report, you can see whichaccounts are still outstanding for any cycle. This report can befound in the Reports listing under - Financial ManagementReports . Additionally, a faster method would be to scan theManaging Account List screen in Transaction Management for the cyclein question. Another report you can access is the Past DueReport by going through Access Online Reporting-ProgramManagement-Past Due . Please ensure all A/OPCs and RMs takeadvantage of the Servicing Bank s reporting capabilities to assistthem in identifying and resolving delinquent accounts.

b. TheArmy goal is to pay all accounts on time. Level 4 A/OPCs who have ahistory of more than 5 percent of BO accounts delinquent during fouror more billing cycles in the reporting period must report, on asemi-annual basis to their Level 3 A/OPCs, what corrective actionsthey have taken to improve payments. Delinquencies as a percentage ofthe outstanding balance due also should be tracked. The Army may nothave more than 0.75 percent of its total receivables at the bank over60 days past due. The Army maintains a zero tolerance for anypercentage of receivables over 180 days past due.

Appendix B: References

Section 1

RequiredPublications: Per DA Pamphlet (PAM) 25-40, a requiredpublication is one that the user needs to read in order to understandor comply with the publication being written.

a. ArmyRegulation (AR) 11-2, Manager s Internal Control Program.

b. AFARS5113.202-90 - Purchase guidelines.

c. AR710-2, Supply Policy Below the National Level

d. AR735-5, Policies and Procedures for Property Accountability

e. FAR8, Required Sources of Supplies and Services.

f. FAR13.301, Government-wide Commercial Purchase Card.

g. DFARS208, Required Sources of Supplies and Services.

h. DFARS213.301, Simplified Acquisition Methods.

i. DODDirective 7000.14-R, DOD Accountable Officials and CertifyingOfficers.

j. DODFMR, Volume 5 - Disbursing Policy and Procedures, Chapter 33 -Accountable Officials and Certifying Officers; also Paragraph 3308.

k. DODFMR, Volume 10, Ch. 23, Purchase Card Payments

l. DODFMR Vol. 10, Ch. 23, Annex 1, Purchase Card CertificationStatements

m. DOD FMR Vol. 10, Ch. 2, Discount Offersand Rebates/Refunds

n. AR25-1 and DA PAM 25-1-1 designate Computer Hardware, EnterpriseSoftware and Solutions (CHESS) as the primary source for the purchaseof COTS software, desktops, and notebook computers regardless ofdollar value.

o. DODGovernment Charge Card Guidebook for Establishing and ManagingPurchase, Travel, and Fuel Card Programs (DOD Guidebook)

p. OMBCircular No. A-123, Appendix B Revised

Section 2

RelatedPublications: Per DA PAM 25-40, a related referenceinforms the reader of a source of additional information.

a. AR37-47, Representation Funds of the Secretary of the Army.

b. AR725-50, Requisition, Receipt, and Issue System.

c. DODCharge Card Task Force Final Report, June 27, 2002.

d. DOD, Department of Defense (DOD Charge Card Programs, PolicyMemorandum (Paul Wolfowitz, June 21, 2002)

e. DOD, Disciplinary Guidelines for Misuse of Government Charge Cards byMilitary Personnel, Policy Memorandum (David Chu, June 10, 2003)

f. DOD, Government Charge Card Disciplinary Guide for Civilian Employees, Policy Memorandum (Ginger Groeber, April 21, 2003)

g. DOD, Guidance for the Investigation of Fraud, Waste, and AbuseInvolving the Use of Purchase Cards and Travel Cards, PolicyMemorandum (Joseph Schmitz, September 25, 2002).

h. DOD, Inclusion on Personnel Departure Checklists of the Requirement toTurn in Government Charge Cards, Policy Memorandum (David Chu,June 23, 2003)

AppendixB: References (continued)

i. DOD, Suspension of Access to Classified Information Due to Abuse orMisuse of Government Charge Cards, Policy Memorandum (JohnStenbit, November 4, 2002).

j. ExecutiveOrder 12931, Federal Procurement Reform, October 13, 1993.

k. FAR2.101, Definitions.

l. FAR4.805, Storage, Handling, and Disposal of Contract Files.

m. FAR52.232-25, Prompt Payment.

n. FederalAcquisition Streamlining Act of 1994, P.L. 103-355, TitleIV—Simplified Acquisition Threshold, Subtitle D—Micro-PurchaseProcedures.

o. GovernmentAccountability Office (GAO), Audit Guide: Auditing and Investigatingthe Internal Controls of GPC Programs, November 2003. GAO ReportNumber GAO-04-87G.

p. GAO,General Accounting Office Policy and Procedures Manual for Guidanceof Federal Agencies.

q. GAO,Appropriations Law, Volume I, Nature of Appropriations Law.

r. GSASmartPay master contract, Section CC.8, Authorization Controls forthe Purchase Card Program.

s. OSDMemo for Secretaries of the Military Departments Attn: AcquisitionExecutives Directors of the Defense Agencies: Subject: InternalControls for the Purchase Card Program, 19 Dec 2005

t. ManagementInitiative Decision No. 904, DOD Charge Card Management, December 18,2002.

u. Officeof the Assistant Secretary of the Army Financial Management andComptroller Memorandum, Foreign Draft Checks, February 4, 1998.

v. Officeof the Under Secretary of Defense, Acquisition Policy onFacilitating Merchant Shipments in the DOD Organic DistributionSystem, Memo July 23, 2003.

w. Officeof the Under Secretary of Defense (Comptroller), Purchase CardReengineering Implementation Memorandum #1, Certifying OfficerGuidance, Change 1, Memorandum.

x. TreasuryFinancial Manual, Volume 1, Part 4, Chapter 4500—GovernmentPurchase Cards.

y. U.S.Army Non-Appropriated Fund Instrumentalities Standing OperatingProcedure, Purchase Card and Convenience Checks, 22 June 2004

z. U.S.C.,Title 5, §5514, Withholding Pay - Installment Deduction forIndebtedness to the United States.

aa. U.S.C.,Title 10, §2302b, Implementation of Simplified AcquisitionProcedures.

bb. U.S.C.,Title 10, §2304, Contracts: Competition Requirements, noteRequirements Relating to Micro-Purchases.

cc. U.S.C.,Title 10, Chapter 47, Uniform Code of Military Justice.

dd. U.S.C.,Title 18, §208, Acts Affecting a Personal Financial Interest.

ee. U.S.C.,Title 18, §287, False, Fictitious, or Fraudulent Claims.

ff. U.S.C.,Title 18, §371, Conspiracy to Commit Offense or to Defraud UnitedStates.

gg. U.S.C.,Title 18, §641, Public Money, Property, or Records.

hh. U.S.C.,Title 18, §1001, Fraud and FalseStatements—Statements or Entries Generally.

AppendixB: References (continued)

ii. U.S.C.,Title 18, §1031, Major Fraud against the United States.

jj. U.S.C.,Title 18, §1341, Frauds and Swindles.

kk. U.S.C.,Title 18, §1343, Fraud by Wire, Radio, or Television.

ll. U.S.C.,Title 31, §3528, Responsibilities and Relief from Liability ofCertifying Officials.

mm. U.S.C.,Title 31, §3729, False Claims.

nn. U.S.C.,Title 31, §3801, Administrative Remedies for False Claims andStatements—Definitions.

oo. USC,Title 37, §1007, Pay and Allowances of the Uniformed Services -Deductions from Pay.

pp. U.S.C.,Title 41, §8701 to 8707, Kickbacks statute.

qq. U.S.C.,Title 41, §1901, Simplified Acquisition Procedures.

rr. U.S.C.,Title 41, §1902, Procedures Applicable to Purchases BelowMicro-purchase Threshold.

AppendixC: Prohibited Purchases

Thissection identifies prohibited transactions. CHs should first contactlocal authorities (e.g., Legal, RM, Level 3 or Level 4 A/OPC) priorto purchasing any items that seem questionable or may have theappearance of being inappropriate. Contact the Level 2 A/OPC throughthe ASAALT central mailbox for further guidance if necessary. Thefollowing list, which is not all-inclusive, identifies some servicesand supplies that are prohibited from purchase with the GPC (thislist also applies to convenience checks):

a. Itemspurchased for other than official Government use.

b. Makingpurchases and returning them to the merchant for cash or merchantcredit slips.

c. Useof the GPC as a procurement method above the micro-purchase thresholdis prohibited; however, use of the GPC as the payment method afterthe contract is procured is permissible.

d. Cashadvances, including money orders and travelers checks.

e. Giftcertificates and gift cards are also considered to be cash advancesand will not be purchased with the GPC, even to obtain items frommerchants that do not accept the GPC.

f. Long-termlease of land and buildings: Use of the GPC to lease real property(i.e., land and/or buildings) for a term longer than 30 days isprohibited.

g. Repairof leased GSA vehicles.

h. Vehicle-relatedexpenses: Vehicle-related expenses are to be paid with the travel orfleet cards (as appropriate).

i. Telecommunicationsystems: The purchase of major telecommunications systems, such asthe Federal Telecommunications System or DSN system, is prohibited.

j. Fines: Use of the GPC to settle a commercial or governmental fine isprohibited.

k. AutoInsurance: Use of the GPC to purchase auto insurance forgovernment-owned vehicles is prohibited. Government-owned vehiclesare insured by the government.

l. Aircraftfuel and oil.

m. Vehiclefuel is prohibited; however, the following exceptions apply: (1) thepurchase card may be used for fuel for special purpose vehicles (i.e.fork lift, tractor, lawn mower) and vehicles rented 30 days or lessfor official purposes.

n. Wiretransfers.

o. TrainingVouchers for Prepayment of Training (charging the GPC to reservetraining slots prior to establishing the legitimate government needand requirement).

p. Foodor refreshments; however, exceptions below apply: Organizations arehighly encouraged to check with their local servicing JAG orattorney s office, before purchasing food, or applying theexceptions listed below. Your agency s guidance may be morerestrictive than this provision. An event may qualify forappropriated funding if certain requirements are satisfied anddocumented. The justification for use of the purchase card under oneof these exceptions must be authorized in an MFR and signed by anactivity director (O-6 or above) or civilian equivalent. Include acopy of this in the cardholders purchase files. If you areauthorized to use appropriated funds to purchase food, the disposableserving materials are authorized. Fine china and other luxurymaterials are not authorized and are considered wasteful and abusive.

AppendixC: Prohibited Purchases (continued)

(1) Light Refreshments at Conferences. Sponsoring Agency/Conference proponent may use its purchase card topurchase light refreshments on breaks at Government sponsoredconferences only for Government employees on travel orders (TDYstatus). The purchase card may not be used to purchase refreshmentsfor non-Government employees, or for Government employees who are noton travel orders.

(2) Meals at Formal Meetings or Conferences. Sponsoring agency may provide a meal at a formal meeting orconference when: 1) the meal would be incidental to the meeting; 2)attendance by employees at the meal is necessary to fullparticipation in the conference or meeting and 3) employees may nottake meals elsewhere without being absent from an essential part ofthe meeting. This exception is limited to formal meetings orconferences, typically organized or sponsored externally, which covertopical matters of general interest to both Government andNon-Government employees. This exception does not apply to purelyinternal business meetings.

(3) Training. Sponsoring agency may serverefreshments/meals at training where the food is necessary to achievethe objectives of the training program. The food must be incidentalto the training session, i.e., don t conduct training for thepurpose of serving a meal. Actual training must be conducted, notjust discussions or open forums relating to problems and day-to-dayoperations of the agency. Attendees would fail to complete thetraining if they miss the meal.

(4) Award Ceremonies. Sponsoring agency mayserve light refreshments at award ceremonies honoring individualsrecognized under your Civilian Employee Incentive Award Program. CHsare prohibited from using purchase cards for refreshments at eventssuch as retirement, promotion, PCS and longevity ceremonies. Toavoid any confusion in addition to the above, graduations, recurringquarterly recognitions, and commanders call are also not awardceremonies for serving of refreshments using appropriated funds.

(5) Formal Ethnic Awareness Program Sponsoredby your EEO Office where food samples relating to the particularethnicity are served as part of an education program.

(6) Food and/or refreshments served usingOfficial Representational Funds (ORF) in accordance with AR 37-47 orappropriate agency regulations. Note: Card must be dedicated solelyfor use of ORF expenditures for this exception to apply.

q. Savingsbonds.

p. Foreign currency.

AppendixC: Prohibited Purchases (continued)

q. Coins not in compliance with DA Memo 600-70. Coins may be procured with operating funds and presented pursuant tothe following authorities: Recognition for accomplishments,award of trophies (10 USC 1125), and Agency Awards (5 USC 4503).

r. Dating and escort services.

s. Betting, casino gaming chips, and off-trackbetting.

t. Court costs, alimony, and child support.

u. Bailand bond payments.

v. Taxpayments. i.e. personal taxes

w. Paymentof salaries and wages.

x. Airline, bus, or travel-related expenses. Exception 1: the GPC may be used for Electronic Toll Collection(i.e. toll roads, bridges, tunnels using EZPass) for officialbusiness in government vehicles. The GPC shall not be used to payfor tolls while on Temporary Duty Assignment (TDY). The GovernmentTravel Card is still the appropriate vehicle for paying tolls accruedduring TDY. Exception 2: Lodging is allowable when purchased byCasualty and Mortuary Affairs Operations Center(CMAOC) or by a Casualty Assistance Center (CAC) for a familymember entitled to invitational travel to a funeral, the bedside ofan injured soldier, a unit memorial event, or to attend the dignifiedtransfer of remains at Dover Air Force Base when the followingconditions are met:

(1) The persons for whom lodging is procuredare eligible for the travel benefit as defined in JFTR, Vol. 1, Para.U5242 and 5246.

(2) The CMAOC or CAC has issued InvitationalTravel Authorizations to those persons for whom lodging is procured.)

y. Traveladvances.

z. Paymentof travel claim.

aa. Purchasesof Explosives, Munitions, Toxins, and Firearms. This specificallyincludes weapons (and parts), small arms, and ammunition. (Exception: PEO-Ammunition; Aberdeen Test Center , U.S. ArmyAccessions Support Brigade (for non-combat weapons undermicropurchase threshold in support of the U.S. Army Marksmanship UnitIAW 710-2), NAFI MWR activities at Fort Benning, Fort Campbell, FortKnox, Fort Stewart, Fort Jackson, Fort Gordon, and Redstone Arsenal;the U.S. Army Criminal Investigation Lab (USCIL); U.S. Army SpecialOperations Command (USSOCOM); and the U.S. Army Research, Developmentand Engineering Command (ARDEC), have been granted a waiver topurchase small quantities of commercial off-the-shelf non-standardammunition.)

bb. Purchasesfrom contractors or contractor agents who are military personnel orcivilian employees of the Government.

cc. Non-rotationof sources by making repetitive purchases with the same merchant orcontractor when other sources are available. This is not applicableto mandatory sources such as installation AbilityOne Base SupplyCenters that replaced legacy SSSCs.

dd. Splitpurchases (FAR 13.003(c) (1) ). The requirement is the quantity knownat the time of the buy. If an individual purchases as [s]he becomes aware of a requireme nt,the

AppendixC: Prohibited Purchases (continued)

requirementis each. If the person consolidates purchases and buys once a day,the requirement becomes what was received during the day. Splittingis the intentional breaking down of a known requirement to stay within a cardholders singlepurchase limit to avoid other procurement methods or competitionrequirements. Examplesof split purchases or split requirements include the following:

(1) Asingle CH making multiple purchases from the same merchanton the same day, the total of which exceeds the single purchase limitand the total requirement was known at the time of the firstpurchase.

(2) Asingle CH purchasing the same/similar item(s) from multiple merchantson the same day, the total of which exceeds the single purchase limitand the total was known at the time of the first purchase.

(3) A single CH making multiplepurchases of similar items from the same or multiple merchants over aperiod of time when the total requirement was known at time of thefirst purchase and the value exceeds the single purchase limit.

(4) MultipleCHs under the same supervision or BO purchasing the same/similaritem(s) the same day or in a compressed timeframe when the totalrequirement is known at a given time and exceeds the single purchaselimit.

(5) Requirementsexceeding the micro-purchase threshold. (i.e. yearly requirementwhere the monthly recurring services are less than the micro-purchasethreshold but the known yearly total exceed the micro-purchasethreshold.)

AppendixD: Department of Defense (DoD) Purchase Card Checklist andCertification Template

Function: The function covered by this checklist is the administration of theGovernment Purchase Card Program.

Purpose: The Army GPC Operating Procedures mandates a review of each BillingOfficial account annually, to include a representative sample ofassociated card transactions. The purpose of these reviews is toensure compliance with GPC program policy/guidance and otherapplicable government regulations, policies, and procedures; and toidentify any GPC misuse, fraud, waste, and abuse. The attachedchecklist below is designed to help reviewers perform the requiredreview. Each activity is encouraged to supplement and tailor theirreview checklist to include any unique requirements. It may benecessary to complete one check list for each CH associated with theBO account. Place a copy in each CH s file.

Instructions:Answers must be based on the actual testing of key internal controls(e.g., document analysis, direct observation, sampling, simulation,and other). Answers that indicate deficiencies must be explained andcorrective action indicated in supporting documentation.

Clickhere for the Department of Defense (DoD)Purchase Card Policy Office (PCPO) Government Purchase Card (GPC)Review Best Practice Checklist (July 2012).

The checklist islocated at: http://www.acq.osd.mil/dpap/pdi/pc/policy_documents.html

RetentionRequirements: A minimum of six years and three months from the date ofthe review or corrective action report date.

AppendixE: DD Form 577 for Appointing a Certifying Officer

The DD Form 577and instructions for completing the form can be found on the officialwebsite for Department of Defense forms at:

http://www.dtic.mil/whs/directives/infomgt/forms/eforms/dd0577.pdf

NOTE: Usethe language in Block 14 and 15 in all DD Form 577s

Appendix F: Sample GPCAppointment Letters

MEMORANDUM FORCARDHOLDER NAME/ADDRESS (include level 5 number)

SUBJECT: Delegation of Procurement Authority to Use the Government PurchaseCard (GPC)

1. You areadvised to review and adhere to the following regulations needed toadequately perform the duties to which you have been assigned:

a. Army Government Purchase Card OperatingProcedures

b. Army Federal Acquisition RegulationSupplement (AFARS), Part 5113.2 Simplified Acquisition Procedures

c. Defense Federal Acquisition RegulationSupplement (DFARS) Part 213.301 Government-wide CommercialPurchase Card

d. Federal Acquisition Regulation (FAR), Part13 Simplified Acquisition Procedures

e. Department of Defense (DOD) FinancialManagement Regulation (FMR) Vol. 10, Ch. 23, Purchase CardPayments

2. You arehereby delegated procurement authority as a GPC Program Cardholder. You have successfully completed the mandatory GPC training, and youare authorized to purchase supplies and non personal services usingthe purchase card. Your single purchase limit has beenestablished at $3,000. You cannot exceed this limitwithout written approval of your Agency/Organization ProgramCoordinator (A/OPC). These limits below are set by statutes and maynot be exceeded:

a. Purchases of construction covered under theConstruction Wage Rate Requirements statute shall not exceed $2,000.

b. Purchases of services covered under theService Contract Labor Standards statute shall not exceed $2,500.

c. Purchases of services specifically exemptedfrom the SCA such as training services, utilityservices, installation services, repair and maintenance services,etc. shall not exceed $3,000. If you areuncertain whether the SCA applies to your purchase, you must contactyou re A/OPC for guidance prior to making the purchase. Purchasesof supplies shall not exceed $3,000.

3. Monthlypurchase limits must be established by the billing official incoordination with the resource manager/advisor designated to reviewthe purchases. All purchases must satisfy a legitimate governmentneed. The supplies and non-personal services you obtain with the GPCmust be for official Government requirements and must be consistentwith your assigned responsibilities and your card purchase limits,including commodity restrictions. This authorization does not exemptyou from the requirement to obtain certain supplies from requiredsources of supply listed in Federal

AppendixF: Sample GPC Appointment Letters (Continued)

4. Regulation(FAR) Part 8, or from other organizations that have been givenexclusive contracting authority for that commodity or service. Youare required to obtain any pre-

purchaseapproval required by your organization s policy and also to ensurethat all accountable property is reported to the Property BookOfficer. You are responsible for all transactions made with thiscard. You alone are authorized to use this card. You are subject todisciplinary action for misusing the Government Purchase Card.

5. Disciplinaryaction, to include the reduction of spending limits or suspension ortermination of your card privileges, will occur if violations areidentified. Thisdelegation is valid until it is formally modified, suspended orcanceled, and shall automatically terminate upon separation from theagency or upon reassignment to another office within the agency.

6. Forassistance please contact the undersigned at (phone number) or bye-mail at (email address). Thank you in advance for effectivelymanaging an important Army purchasing program.

COC or designee(A/OPC)

Activity

Title

I HAVE REVIEWEDTHE ABOVE AND UNDERSTAND AND CONCUR WITH MY RESPONSIBILITIES INCONNECTION WITH THE GPC PROGRAM

________________________________________________________________________(SIGNATURE) (DATE)

AppendixF: Sample GPC Appointment Letters (Continued)

MEMORANDUM FORBILLING OFFICIAL NAME and Address

SUBJECT: Appointment as Primary Billing Official for the level 5 (number)Account Ending in (XXXX) for the (Activity) Government Purchase CardProgram

1. You areadvised to review and adhere to the following regulations needed toadequately perform the duties to which you have been assigned:

a. Army Government Purchase Card OperatingProcedures

b. Army Federal Acquisition RegulationSupplement (AFARS), Part 5113.2 Simplified Acquisition Procedures

c. Defense Federal Acquisition RegulationSupplement (DFARS) Part 213.301 Government-wide CommercialPurchase Card

d. Federal Acquisition Regulation (FAR), Part13 Simplified Acquisition Procedures

e. Department of Defense (DOD) FinancialManagement Regulation (FMR) Vol. 10, Ch. 23, Purchase CardPayments

f. Section 3325 and 3528 of Title 31, UnitedStates Code

g. DoD Directive 7000.14R, DoD DepartmentalAccountable Officials and Certifying Officers

h. DoD FMR, Volume 5, Chapter 33, CertifyingOfficers, Departmental Accountable Officials, and Review Officials

2. You havesuccessfully completed the mandatory training requirements, andoccupy a position where your duties include the functions of abilling official/certifying official for (Activity s) purchase cardprogram. Therefore, in accordance with the references in paragraph1, and pursuant to the authority vested in the undersigned, I herebyappoint you as a billing official for your agency cited above.

3. This accountis for supplies, non-personal services, and training purchases inaccordance with the mission of your agency. As the primary billingofficial, you are responsible for certifying your cardholders purchases for payment to:

DFASINDIANAPOLIS

4. Yourappointment is effective upon your signature and remains in effectuntil formally revoked in writing by the appointing official. Pre-purchase approval from you is required of your cardholders inaccordance with the Army Government Purchase Card OperatingProcedures and your local standard operating procedures. .

5. Appointedcertifying officers must complete an approved Certifying OfficerLegislation training course within 2 weeks of their appointment andbefore actually

AppendixF: Sample GPC Appointment Letters (Continued)

performing ascertifying officers, and provide a printed copy of the coursecompletion certificate to their supervisor, who may specify any ofthese sources of training:

A. http://www.dfas.mil/fastrac/coltraining.html .

B. https://fm.csd.disa.mil/kc/login/login.asp?kc_ident=kc0014&blnAccess=TRUE .

C. https://www.defensetravel.dod.mil/Passport

6. As anindividual involved in approving the spending of public funds, youare held to a high standard of responsibility and accountability. Beadvised that billing officials have pecuniary liability for anyillegal, improper, or incorrect payment processed by the organizationas a result of any payment that is found to be illegal, improper orincorrect. You must become thoroughly familiar with yourresponsibilities and accountability. Non-compliance with applicablelaws and regulations may result in suspension of your account.

7. By signaturebelow you acknowledge this appointment, and affirm you have read andunderstand your responsibilities as described in the followingreferences:

a. Title 31, US Code, Section 3325, Vouchers( http://www4.law.cornell.edu/uscode/31/3325.html )

b. Title 31, US Code, Section 3528,Responsibilities and Relief from liability of certifying officials( http://www4.law.cornell.edu/uscode/31/3528.html )

c. DoD Directive 7000.14R, DoD DepartmentalAccountable Officials and Certifying Officers( http://comptroller.defense.gov/fmr/12/12_19.pdf )

d. DoD FMR, Volume 5, Chapter 33, CertifyingOfficers, Departmental Accountable Officials, and Review Officials( http://comptroller.defense.gov/fmr/05/05_33.pdf )

8. Planningsuccession is crucial and required. When you process out, you mustnotify the A/OPC. Accounts without a primary and alternate billingofficial or have an alternate billing official without a primarybilling official longer than 45 days will be suspended. Further, youmust notify this office of any changes to your managing account sothat your account can be brought up to date in a timely manner. NOTE: All nominations for account holders and changes to yourcurrent account must be submitted to your A/OPC.

9. Pleasepromptly complete the following actions:

a. Sign and date Enclosure 1, and return toyour Level 4 A/OPC.

b. Complete a DD Form 577 (Encl 2), andsubmit to the DFAS office cited below and your A/OPC.

AppendixF: Sample GPC Appointment Letters (Continued)

DEFENSEFINANCE AND ACCOUNTING SERVICE

VENDORPAY PRODUCT LINE

ATTN: DEPT 3275 (IMPAC/CARE)

8899EAST 56^TH STREET

INDIANAPOLIS,INDIANA 46249-3275

c. Retain a copy of all documents for yourrecords for audit review purposes.

10. You arerequired to return your acknowledgement statement to your Level 4A/OPC immediately upon signing and dating below.

1. Thank you inadvance for ensuring the U.S. Army maintains a sound GovernmentPurchase Card Program.

COCor designee (Level 4 A/OPC)

Activity

Title

ENCL DD Form 577

BILLINGOFFICIAL/CERTIFYING OFFICER S ACKNOWLEDGEMENT OF RECEIPT,UNDERSTANDING AND CONCURRENCE OF HIS/HER APPOINTMENT ANDRESPONSIBILITIES:

By signaturehereon, I acknowledge my appointment as a purchase card billingofficial/certifying officer. I have read and understand myresponsibilities as cited above. I understand my right to requestrelief of liability for payments certified due to an inadvertentadministrative error. I further understand that this appointmentremains in effect until revoked in writing by the appointing official(or his/her successor).

Attached is thecompleted DD Form(s) 577

________________________________________________________________________

(Insert Name) (Billing Official/Certifying Officer Signature) (Date)

AppendixF: Sample Appointment Letters (continued)

MEMORANDUM FOR(Name of Official), (Command), (Address).

SUBJECT: Appointment of Government Purchase Card (GPC) Level 3Agency/Organization Program Coordinator (A/OPC)

1. Asthe _______________,I herebyappoint you asthe GPC Level 3A/OPC forthe Command. This designationremains ineffect untilyou vacate thisposit ionor aformal memorandumrescinding thisappointment is issue d. You are advised to review and adhere to the followingregulations needed to adequately perform the duties to which you havebeen assigned:

a. Army Government Purchase Card OperatingProcedures

b. Army Federal Acquisition RegulationSupplement (AFARS), Part 5113.2 Simplified Acquisition Procedures

c. Defense Federal Acquisition RegulationSupplement (DFARS) Part 213.301 Government-wide CommercialPurchase Card

d. Federal Acquisition Regulation (FAR), Part13 Simplified Acquisition Procedures

e. Department of Defense (DOD) FinancialManagement Regulation (FMR) Vol. 10, Ch. 23, Purchase CardPayments

f. OMB Circular A-123, Appendix B

g. Chapter 4500 of Treasury Financial Manual

2. Army Government PurchaseCard Operating Procedures (AGPCOP), Section1-7, prescribes thereferences for your roleas theLevel 3 A/OPC anddescribes the associatedrespons ibilities,knowledge, skills, abilities, education, and training requirements assummarized below.

3 . Responsibilities: Your Level 3 A/OPC responsibilities include the following:

 Implementing,administering, and monitoring the Army Command (ACOM) GPC programsubject to DoD and Army policies;

 Servingas a liaison with Army Headquarters, the Servicing Bank, ACOM staff,and field organizations;

 Providingprogram support to ACOM and installation GPC focal points;

 Establishingand implementing ACOM-specific policy and guidelines; and,

 Developingthe GPC program internal control requirements, reporting mechanismsand surveillance plan.

4. Knowledge, skills, and abilities: Your Level 3 A/OPC knowledge, skills and abilities include thefollowing:

AppendixF: Sample Appointment Letters (continued)

 Understandingof the relevant policies, procedures, and commercial contractingpractices;

 Understandingof the relevant procurement laws and regulations;

 Understandingof what constitutes and authorized purchase transaction;

 Understandingof procurement methods and standards;

 Abilityto communicate, organize, and manage effectively;

 Basicanalytical and computer skills; and,

 Abilityto analyze, research, and provide concise recommendations to thechain of command on required actions to anticipate, prevent, orcorrect problems in business processes that are supported by the GPC.

5. Educationrequirements: In conjunction with appointment, Level 3 A/OPC has achieved DAWIA Level II certification incontracting or will complete DAWIA Level 2 Contracting or DAWIALevel 2 Purchasing training requirements within 24 months of thisappointment. Level 3 A/OPC is a GS-13 or higher or in a gradeconducive to the responsibilities, complexity, and volume of theCommand s GPC program.

6. TrainingRequirements: Level 3 A/OPC has completedthe following mandatory GPC training requirements within the twelve months prior to this appointment.

 Ethicstraining (AR 350-1 paragraph G-18, DOD 5500.7-R, the J ointEthics Regulation) ;

 DAUDoD GPC Tutorial;

 U.S.Bank Access Online web based training;

 DAU online training course CLG 005 Purchase Card Online System(PCOLS);

 DAUinitial and refresher training (Basic (CLG001)/Refresher (CLG004);

DAUpurchase card courses are online at http://clc.dau.mil/.

7. Congratulations onyour designationas theGPC Level 3 A/OPC forthe Command. Mystaff andI standready tosupport youin thisimportant partof yourmission.

_ Signature Signature

_ Appointee AppointingOfficial

_ Date Date

AppendixF: Sample Appointment Letters (continued)

MEMORANDUM FOR(insert individual s name), (insertindividual s title), (insert Command),(insert Command address).

SUBJECT: Letterof Endorsement for the Appointment of Department of the ArmyGovernment Purchase Card (GPC) Level 3 Agency/Organization ProgramCoordinator (A/OPC)

1. I recommendand endorse (insert individual s name)for the position of GPC Level 3 A/OPC for the (insertCommand).

2. It has beendetermined that (insert individual s name) possesses the required knowledge, skills, abilities, and educationand training requirements to fill the Level 3 A/OPC role and tosuccessfully carry out the responsibilities of managing the GPCProgram throughout (insert Command) as defined in theArmy Government Purchase Card Operating Procedures (AGPCOP).

3. As Level 3A/OPC, (insert individual s name), (insertindividual s title) will serve as the primary liaisonbetween Army Headquarters and Level 4 A/OPCs throughout (insertCommand).

4. Welcome tothe GPC Program and congratulations on your appointment as Level 3A/OPC!

(insertsignature)

(insertname)

Level2 A/OPC

AppendixG: Formal Reporting Requirements

1. Surveillanceprogram results are prepared by each Level 3 A/OPC and provided tothe Army Level 2 A/OPC no later than April 21^st andOctober 21^st. The report identifies data collected duringthe two previous quarters of the fiscal year.

2. Alist of the number of waivers to the Army Standard Span of Controlthat have been requested (broken down to CH to BO, 300 accounts perLevel 4 A/OPC, and so on), and the disposition of these requests,must be reported.

3. Level3 A/OPCs must submit a summary of the corrective actions taken by theLevel 4 A/OPC to reduce the number of delinquent accounts. Insubsequent reports, the Level 4 A/OPC advises the results of thecorrective actions.

4. Level3 A/OPCs outlines routine reviews of their program, identifyingcompliance reviews, reports, adverse actions, and exceptionalactivities.

5. Reportsdue to the Army Level 2 A/OPC. A sample semi-annual surveillancereport format is provided below.

Reportsdue to the Army Level 2 A/OPC Office

AppendixG: Formal Reporting Requirements (continued)

Departmentof the Army

GovernmentPurchase Card (GPC) Program

Semi-AnnualSurveillance Report

Report____ for Fiscal Year ______

Installation/Organization: _______________________________

ReportingActivity ______________

A/OPCName: ________________

A/OPCPhone Number: ________________ COMM _______________

PersonPreparing Report (if different than A/OPC) ___________________

PhoneNumber ________________

Spanof Control Waivers

AppendixG: Formal Reporting Requirements (continued)

DetailedSpan of Control Waiver Report

Inactivity

DetailedInactivity Report

( List all Open but Inactiveaccounts over 3 months

excludingaccounts terminated or those in a V9 status )

AppendixG: Formal Reporting Requirements (continued)

Reviews

Appendix H: Semi-AnnualSurveillance Report Template

MEMORANDUMFOR ARMYLEVEL IIA/OPC insertLevel 2 A/OPC, HQ,Department ofthe Army,ATTN: DASA(P)(SAAL-PB), 2800 CrystalDrive, Arlington,VA 22202.

SUBJECT:Semi-Annual SurveillanceReport forinsert agency,Government Purchase CardProgram (GPC) insertperiod Quarter FiscalYear insert year.

ENCLS: (A) Department of DefensePurchase Card Review Checklist and Certification, Department of theArmy Government Purchase Card Operating Procedures (AGPCOP) 22 July2015, Appendix D

(B) Formal Reporting Requirements, AGPCOP Appendix G

1. Subject reportis provided inaccordance withAGPCOP, 22 July 2015, Chapter4-2 ProgramOversight and Reviews. The following provides an analysis andsummary of findings identified in Enclosures (A) and (B) forinsert agency. The subject report explains GPCProgram systemic weaknesses, corrective actions, and lessons learned. The review wasconducted by insert reviewer namefor theperiod inserttime period.

2. FormalReporting Requirements: Addressreporting requirements found in Enclosure (B). Analysisshould include the following:

 Spanof Control Waivers (BO:A/OPC=7:1, A/OPC:BO=300:1; Is justificationsufficient/approved for increased span of control?

 Accountsinactive > 3 months-justification sufficient?

 Numberof BO accounts inspected, number of transactionsreviewed for each BO, number of BO accounts reviewed during priorreporting period

 Compliantwith 100% yearly BO review?

 Numberof CH accounts inspected, number of transactions reviewed for each CH(1 per CH preferred/6% sample size is DoD standard)

 Methodof compliance review for BO and CH (PCOLS, Bank s EAS, in person,remotely, or electronically)

 Mandatorytransaction log review of new CHs within initial 4 months of CHappointment?

 Whatmetrics are being utilized to manage your GPC Program (i.e.Delinquency (0.75), Financial Exposure)?

AppendixH: Semi-Annual Surveillance Report Template (continued)

3. Appointmentand Account Issuance and Maintenance for A/OPCs, BOs, and CHs: Address Section A, 1-14 of Enclosure (A). Inaddition to items on the checklist,address the following:

 Level3 and 4 A/OPC training requirement

 IsLevel 4 A/OPC certified at Level II in Contracting or Purchasing orwill individualhave acquired the certification within 24 months of appointment?

 Organization sDelegation of Authority (i.e. SCO aCCO, SCO a Level IIIA/OPC and Alternate, CCO aLevel 4 A/OPC and Alternate, Level 4 A/OPC or CCO aBO and CH)

 Areappointment letters current?

4. GPCUsage Requirements: AddressSection B, 1-39 of Enclosure (A ). In addition to items on the checklist, address the following:

 Adherenceto GPC Program requirements: transaction activity; systemic problems,delinquencies and corrective action, abuse, or fraud; summary ofadverse actions (type and number) against the responsible individual;formal reports issued to the Chief of the Contracting Office (CCO)

 Incidentsof splitting purchases to override purchase threshold

 Incidentsof After the fact buys

 Rotatingsources in order to give vendors a fair opportunity

 Useof mandatory sources, specifically CHESS, AbilityOne, FSSI BPAs onDoD EMALL Corridor

 Creditsand rebates-were they adequately accounted for

 WhatStrategic Sourcing initiatives are in place?

5. Documentation Requirements: Address Section C, 1-14 ofEnclosure (A). In addition toitems on the checklist, address the following:

 FileDocumentation (hard copy)-DoesLevel 4 A/OPC file contain purchase card applications and approvals,account maintenance, CH and BO delegation of appointment letters,ethics and training certifications, results of annual reviews?

 DoBO files contain hard copy CH statements, original receipts,invoices, logs, approvals, supporting documentation, CH delegation ofauthority letters, BO appointment letters?

 DoCH files contain purchase logs, statements of record, billingstatements, documentation supporting purchase (fair and reasonable,competition, legitimate need, receipt and acceptance), appointmentletter, training certificates?

AppendixH: Semi-Annual Surveillance Report Template (continued)

6. ProcessingRequirements: Address Section D, 1-3 of Enclosure (A). Inaddition to items on the checklist, address the following:

Reconciliationand certification of invoice payments-review and reconciliation of CHstatement against receipt documentation within 5 days; prior billspaid; purchases necessary, mission essential, meet minimum need ofthe Government; contains valid line of accounting

7. FinancialRequirements: Address Section E, 1-2 of Enclosure (A).

8. ConvenienceCheck Writer Requirements: Address Section F, 1-10 ofEnclosure (A).

9. GPCAccounts Used to Place Orders by Ordering Officer: AddressSection G, 1-9 of Enclosure (A).

10. ContractPayment Requirements: Address Section H, 1-10 of Enclosure(A).

11. Paymentsto Document and Automation Production Services (DAPS) or OtherGovernment Entities: Address Section I, 1-4 of Enclosure (A).

12. TrainingPayments: Address Section J, 1-7 of Enclosure (A).

13. PreviousFindings: Address adverse findings from previous quarterlyreviews, corrective actions taken, and results.

14. Surveillance Reporting: Have all Level 4 A/OPCs receivedproper training and oversight for conducting surveillance? How isinformation transferred from Level 3 A/OPC to Level 4 A/OPCs; how isinformation packaged and presented to Level 2 A/OPC? To what extentis PCOLS used to collect surveillance data. What tools within PCOLSwere utilized (EMMA, AIM, DM, Risk Assessment)?

15. Program Summary: Summarize repetitive or systemic weaknesses at theindividual command and organizational level. What corrective actionswill be taken and how will corrective actions be tracked?

16. ExceptionalPerformance: Identify examples of exceptional GPC programs orperformance and/or lessons learned.

17. Any questionsmay bedirected tothe undersignedat insertLevel 3 A/OPC at(XXX)XXX-XXXX.

Level3 Agency/Organizational Coordinator

InsertA/OPC Signature

Appendix I: GPC Thresholds

AppendixI: GPC Thresholds (continued)

Appendix J: Glossary -Sections I and II

SectionI: Acronyms

ACOM

Army Command

AFARS

Army FederalAcquisition Regulation Supplement

A/OPC

Agency/OrganizationProgram Coordinator

ARRA

AmericanRecovery and Reinvestment Act

ASA(ALT)

AssistantSecretary of the Army (Acquisition, Logistics, and Technology)

AXOL

Access Online

BO

Billing Official

BPA

Blanket PurchaseAgreement

CAP

Computer/ElectronicAccommodations Program

CCO

Chief ofContracting Office

CH

Cardholder

CHESS

ComputerHardware, Enterprise Software and Solutions

C.O.D.

Cash on delivery

DA

Department ofthe Army

AppendixJ: Glossary (continued)

DAWIA

DefenseAcquisition Workforce Improvement Act

DAU

DefenseAcquisition University

DFARS

Defense FederalAcquisition Regulation Supplement

DFAS

Defense Financeand Accounting Service

DOD

Department ofDefense

DDForm

Departmentof Defense Form

DTMO

DefenseTravel Management Office

DSN

Defense SwitchedNetwork

EAS

ElectronicAccess System

EEO

Equal EmploymentOpportunity

EDI

Electronic DataInterchange

FAR

FederalAcquisition Regulation

FDC

Foreign DraftChecks

FORSCOM

Forces Command

AppendixJ: Glossary (continued)

FMR

FinancialManagement Regulation

FPDS-NG

FederalProcurement Data System - Next Generation

GAO

GovernmentAccountability Office

GFEBS

GeneralFinancial Enterprise Business System

GPC

GovernmentPurchase Card

GSA

General ServicesAdministration

HA

Head of Activity

IRS

Internal RevenueService

IT

InformationTechnology

JWOD Javits-Wagner-O Day

MCC

MerchantCategory Code

MBA

Military BusAgreement

OCONUS

Outside theContinental United States

OMB

Office ofManagement and Budget

AppendixJ: Glossary (continued)

SCO

SeniorContracting Official

PAM

Pamphlet

PBO

Property BookOfficer

PCOLS

PurchaseCard Online System

PCPMO

Purchase CardProgram Management Office

RM

Resource Manager

SDDC

SurfaceDeployment and Distribution Command

SF

Standard Form

TRP

Tax ReportingProcess

U.S.C.

United StatesCode

AppendixJ: Glossary (continued)

SectionII

Terms

Thefollowing definitions are provided for terms used in this regulation.Other definitions that are not detailed below are contained in thetraining manuals provided by the Servicing Bank.

AbilityOneProgram - FAR Subpart 8.7 - formerlyJavits-Wagner-O Day (JWOD), this socioeconomic program provides employment opportunities for over 40,000 Americans who are blind orhave other severe disabilities by orchestrating government purchasesof products and services provided by nonprofit agencies employingsuch individuals throughout the country. The Committee for Purchase from PeopleWho Are Blind or Severely Disabled statute, (41 U.S.C.§ 8501-8506)requires the Government to purchase supplies or services on theProcurement List, at prices established by the Committee, fromAbilityOne participating nonprofit agencies if they are availablewithin the period required.

AccountableOfficial (AO) - A member of DOD ,military or civilian personnel, designated in writing and nototherwise accountable under applicable law, who provides sourceinformation, data, or service (such as an RO, a CH, and an AutomatedInformation System Administrator) to a reviewing or disbursingofficial in support of the payment process. The AO has pecun iaryliability for erroneous payments resulting from his/hernegligent actions.

AccountableProperty - Army Regulation 735-5 - Aterm used to identify property recorded in a formal propertymanagement or accounting system. Accountable property includes allproperty purchased, leased (capital leases), or otherwise obtainedhaving a unit acquisition cost of $5,000 or more (land, regardless ofcost), and items that are sensitive. Sensitive items require a highdegree of protection and control due to statutory requirements orregulations, such as narcotics and drug abuse items; precious metals;items which are of a high value, highly technical, or a hazardousnature; and small arms, ammunition, explosives, and demolitionmaterial or classified (See Volume 10, Table 61 of DOD 4100.39-Mreference (k)). Additional and/or separate records or other recordkeeping instruments shall be established for management purposes, orwhen otherwise required by law, policy, regulation, or agencydirection, including, but not limited to pilferable items. Pilferableitems have a ready resale value or application to personal possessionand are, therefore, especially subject to theft. Screening by theProperty Book Officer (PBO) is required to determine the accountingrequirements of the purchased property. The installation PBO providesguidance on specific local property accountability procedures to theA/OPC, BOs, and CHs related to GPC purchases.

Agency/OrganizationProgram Coordinator (A/OPC) - AGovernment employee responsible for the implementation and executionof his/her agency/organization

AppendixJ: Glossary (continued)

purchasecard program in accordance with established regulations, policies andprocedures. The A/OPC has overall administration to includedeveloping and implementing policy, establishing and making changesto accounts, as well as training CHs and BOs. Multiple levels ofAgency/Organization Program Coordinators exist at differenthierarchical levels within the program for each agency/organization.

AssessableUnit Manager - A Head of Activitydesignated by the head of the reporting organization to provideleadership and support needed to ensure that internal controls are inplace and operating effectively.

BillingInvoice - The billing invoiceidentifies all of the purchase card transactions made by the CHsassigned to a particular BO that are posted during a billing cycle.The invoice can be paper based or presented through the ElectronicAccess System (EAS) of the issuing bank.

BillingOfficial (BO) - A Governmentemployee who has been nominated by his or her activity/organizationto have oversight responsibility over the CHs assigned to his or hermanaging account. The BO is responsible for: oversight of CHs;certifying officer for the accounts assigned; review CHs monthlystatements and verify all transactions made were necessary and wereaccomplished in accordance with regulations and all other agencypolicies and procedures; and certify monthly invoices (billingstatements) for payment processing. Installation, unit, andlocal Heads of Activities or their designees nominates individualsfrom their organizations as BOs. The nominating official must be inthe supervisory chain of the individual being nominated, and thenomination must be forwarded to the Chief of the Contracting Office(CCO) for issuance of an appointment letter. Issuing appointments toBOs may be redelegated in writing to the A/OPC. TheBO is at Level 5 in the GPC reporting hierarchy.

BulkFunding Method - Thebulk funding method requires posting specific funds to the officialaccounting records prior to payment of a CH's account. Bulk fundingmay be made as appropriate to the funding environment of theactivity.

Cardholder(CH) - Anindividual designated by an agency/organization to be issued a card.The card bears the individual s name and can be used only by thatindividual for official purchases in compliance with agency internalprocedures. The term CH also applies to check writers onconvenience check accounts. CHs are responsible for the timely andaccurate processing of monthly CH statements and maintaining apurchase log or the servicing bank s automated system to recordpurchases. CHs must adequately control access to the card to precludeunauthorized use and take timely and proper action when unauthorizedcharges occur. Installation, unit, and local Heads ofActivities or their designees nominates individuals from theirorganizations as CHs. The nominating official must be in thesupervisory chain of the individual being nominated, and thenomination must be forwarded to the Chief of the Contracting Office(CCO) for issuance of a delegation of micro-purchase authority.Issuing delegations of authority to CHs may be

AppendixJ: Glossary (continued)

redelegatedin writing to the A/OPC. The CH is at Level 6in the GPC reporting hierarchy.

CardholderStatement - Thestatement of charges provided to a CH detailing all of thetransactions posted to his or her account during a billing cycle.

CertifyingOfficer - Certain Government employees(Resource Managers, Billing Officials) are held accountable forFederal Payments responsible to verify that payments made by theFederal Government are legal, proper and correct. Certifyingofficers are responsible for the accuracy and legality of thepayments made from Federal funds that they approve (31 U.S.C. §3528). Certifying Officers review payment vouchers before certification toensure that the information on the vouchers agrees with allsupporting documentation. See DOD FMR Volume 5, Chapter 330308A.2.c. For GPCpurposes, certifying officer and certifying official are synonymous.

ComputerHardware, Enterprise Software and Solutions (CHESS) - The CHESS program is the Army's primary source for commercialinformation technology (IT) hardware and software. Memorandum signedby the Army CIO/G-6 and the Acting ASA (ALT), dated May 4, 2009informed of the requirement to use CHESS for IT hardware and softwarepurchases. The CHESS website is located at URL: https://chess.army.mil/ascp/commerce/disclaimer/disclaimer.jsp

Computer/ElectronicAccommodations Program (CAP) - Acentrally funded program that provides ergonomic-related andlow-vision equipment for all DOD employees.

ContractAction Report (CAR) - Form used to reportcontract actions on the FPDS-NG web site.

ConvenienceChecks - Third-party drafts issuedusing the GPC account. Third-party drafts may be used to acquire andpay for supplies or services.

Delegationof Procurement Authority Letter - Adocument issued by the CCO that gives an individual the authority toplace orders with the GPC. This delegation of procurement authorityspecifies the single-purchase and monthly purchase limitations uniqueto that CH.

Direct-Hire- Authorities: 5 U.S.C. §3304 and 5 CFR Part 337, Subpart BUsing OPM-approved government wide or agency specific direct-hireauthorities, agencies may appoint candidates to positions withoutregard to the requirements in title 5 U.S.C. §3309 through§3318.  In order for an agency to use direct hire, OPMmust determine that there is either a severe shortage of candidatesor a critical hiring need for a position or group of positions.

AppendixJ: Glossary (continued)

Disinterested3rd Party - An independent,impartial, neutral, and competent person in both action andappearance, independent of the office maintaining the conveniencecheck account, responsible for reviewing and providing an unbiasedreview of the convenience

checkaccount(s) quarterly. This internal control activity providessafeguards against threats to a reviewer s impartiality andpressures posed in the environment that may compromise or reasonablybe expected to compromise the effectiveness and ability of thereviewer to maintain an unbiased comprehensive review report.

ElectronicAccess System (EAS) - is a web-based computer system required by the task order with the issuingBank for account set-up, maintenance, reporting, and electronic billpresentment and certification.

Electronicdata interchange (EDI) - Theautomatic process of receiving electronic obligation and invoicerecords directly from the Servicing Bank into a DOD accountingsystem.

ErroneousPayment - Illegal, improper,or incorrect payment. DOD FMR Vol. 5 Ch. 33 paragraph 330903.

Federal Procurement Data System NextGeneration (FPDS-NG) - a computer-based Federal Procurement DataSystem for collecting, developing and disseminating procurement datato the Congress, Executive Branch and private sector in compliancewith 41 U.S.C. §1101 et seq. and FAR Subpart 4.6. The data is usedto measure and assess the impact of Federal procurement on thenation s economy, the extent to which awards are made to businessesin the various socio-economic categories, the impact of full and opencompetition on the acquisition process and other procurement policypurposes. The Office of Federal Procurement Policy (OFPP) requiresthat each Department and Agency certify annually that all data withinFPDS-NG is valid and complete.

File Turn Time -The average number of calendar days between the time a charge(purchase) is posted and payment is received by the issuing Bank.

Fraud - Any intentional deception designed todeprive the Government unlawfully of something of value or to securefrom the Government for an individual a benefit, privilege,allowance, or consideration to which he or she is not entitled.

GeneralFund Enterprise Business System (GFEBS) - a web-enabled enterprise resource planning (ERP) system allowingthe U.S. Army to share financial, asset and accounting data acrossthe Service. The systemwill standardize transactional input and business processes acrossthe Army to enable cost management activities; provide accurate,reliable, and real-time data; and tie budgets to execution. GFEBSmoves the Army from a 'spend and consume culture' - to a 'cost andcontrol culture' by providing value-added, decision-support tools.GFEBS benefits the Army by reducing and

AppendixJ: Glossary (continued)

eliminatingwaste; reducing variation and improving quality, and complying withregulatory and legislative directives.

HandReceipt Holder - An individualresponsible for property listed on a signed document, therebyacknowledging acceptance and responsibility for items therein.

Headof Activity (HA) - Themilitary officer in command or the civilian executive in charge ofthe mission of a command or activity. This individual hasdisciplinary authority over CHs and BOs in his or her organizationand is responsible for having proper internal controls that deterfraud and ensuring that those who violate the policies are properlysanctioned or counseled.

Headof the Agency - means, forDOD, the Secretary of Defense, the Secretary of the Army, theSecretary of the Navy, and the Secretary of the Air Force. Subject tothe direction of the Secretary of Defense, the Under Secretary ofDefense (Acquisition, Technology, and Logistics), and the Director ofDefense Procurement and Acquisition Policy, the directors of thedefense agencies have been delegated authority to act as head of theagency for their respective agencies (i.e., to perform functionsunder the FAR or DFARS reserved to a head of agency or agency head),except for such actions that by terms of statute, or any delegation,must be exercised within the Office of the Secretary of Defense. (Foremergency acquisition flexibilities, see DFARS 218.270). (DFARS202.101 Definitions)

Headof Contracting Activity - Theofficial who has overall responsibility for managing the contractingactivity, including use of the GPC by personnel under his or hercontracting cognizance. (FAR 2.101) Contracting activity"for DOD also means an element of a Defense agency, designated by theHead of Activity for that Defense agency that has been delegatedcontracting authority through its agency charter . (FAR 2.101)

Committeefor Purchase from People Who Are Blind or Severely Disabled statute - A law that establishes mandatorysources for supplies and services, administered by the Committee forPurchase from People Who Are Blind or Severely Disabled. Twonational, independent organizations, National Industries for theBlind (NIB) and NationalInstitute for the Severely Handicapped (NISH) ,help state and private nonprofit agencies participate in theAbilityOne Program.

MerchantCategory Code (MCC) - Acode used by the issuing bank to categorize each merchant accordingto the type of business in which the merchant is engaged and thekinds of goods and services provided. MCC codes are used asauthorized-transaction-type codes on a card/account to identifyauthorized types of businesses from which purchases may be made withthe GPC. The DOD PCPMO maintains the list of DOD-wide blocked codes.The Army Level 2 A/OPC is responsible to administer and record anywaiver requests to these blocks.

AppendixJ: Glossary (continued)

PackingList/Slip - (also known as a bill of parcel, unpacking note,packaging slip, (delivery) docket, delivery list), is a shippingdocument that accompanies delivery packages, usually inside anattached shipping pouch or inside the package itself. It commonlyincludes an itemized detail of the package contents and does notinclude

customerpricing. It serves to inform all parties, including transportagencies, government authorities, and customers, about the contentsof the package. It helps them deal with the package accordingly.

Pre-PurchaseApproval - Whenrequired and identified by Army or local procedures, documentationshowing authority has been obtained to purchase special-use itemssuch as hazardous material or information technology.

Prompt Payment Act - A law that requires prompt payment ofinvoices (billing statements) within 30 days of receipt (FAR Clause52.232-25, Prompt Payment, (May 1997)). An automatic interest penaltyis required if payment is not timely.

Purchase Card Online System (PCOLS) - aDOD-wide, DOD-operated data mining electronic system that GovernmentPurchase Card (GPC) participants use to improve the management andaccountability of their GPC Program organizations. It is comprised offive web-enabled automated tools: Enterprise Monitoring andManagement of Accounts (EMMA); Authorization, Issuance andMaintenance (AIM); Data Mining (DM); Risk Assessment (RA); and PCOLSReporting.

Receipt - A receipt is a written recordof a transaction documenting proof of payment. The receipt acts asthe title to the property obtained in the exchange. A receipt is alegal document which serves as a permanent record of the transactionthat can be used to support financial records (i.e. billing officialinvoice). Internet shopping has led to the creation of electronicreceipts. Many online businesses provide the cardholder with theoption of printing a receipt of the transaction as soon as thepayment is approved. In addition, the vendor may provide thecardholder with an emailcopy of the receipt. The receipt includes basic information aboutthe nature of the sale. This essential detail includes the date ofthe transaction, a list of the prices of the items purchased,subtotal, applicable taxes, and a final total. Some receipts willprovide unit prices and extended prices when multiple units of thesame item are purchased, as well as a detailed description of eachitem.

Requiredor Mandatory Sources of Supply - Thepriority of sources is dictated by FAR Part 8, Required Sources ofSupplies and Services, Subpart 8.001, Prioritiesfor Use of Government Supply Sources, and DFARS 208. Mandatorysources must be considered before an open-market source can beconsidered. Other mandatory sources include DLA Printing Services,Army CHESS, Army BPAs.

ResourceManager (RM) - RM is a CertifyingOfficer who certifies that funds are available for the GPC programand establishes lines of accounting used on the GPC

AppendixJ: Glossary (continued)

program.The RM is responsible for the proper assignment of funding on anobligation document before the obligation is incurred, and formaintaining a system of positive funds control.

SplitPurchase - Occurs when a CH splits aknown requirement at the time of the purchase into severaltransactions in order to: circumvent dollar thresholds in order to use the GPC; to avoid competitive bids for purchases over themicro-purchase threshold; or to avoid other established credit limits(this is prohibited). When a known small purchase requirement exceedsthe micro-purchase threshold, it must be purchased through a contractusing simplified acquisition procedures. Examplesof Split Purchases or Split Requirements include the following:

(1) Asingle CH making multiple purchases from the same merchant on thesame day, the total of which exceeds the single purchase limit andthe total requirement was known at the time of the first purchase.

(2) Asingle CH purchasing the same/similar item(s) from multiple merchantson the same day, the total of which exceeds the single purchase limitand the total was known at the time of the first purchase.

(3) A single CH making multiplepurchases of similar items from the same or multiple merchants over aperiod of time when the total requirement was known at time of thefirst purchase and the value exceeds the single purchase limit.

(4) Multiple CHs underthe same supervision/billing official purchasing the same/similaritem(s) the same day or in a compressed timeframe when the totalrequirement is known at a given time and exceeds the single purchaselimit.

ThirdParty Payments - An onlinepayment processor (i.e. PayPal, 2Checkout.com)provides ways for a merchant to accept credit cards and otherpayments online without the extra cost and obligation of a merchantaccount. Where it is identified that a purchasewill be processed via a third party merchant (i.e. PayPal), the CHshould make every attempt to choose another merchant with whom toprocure the goods and/or services. If still found necessary toprocure using a third party payment merchant, the CH and BO mustensure there is adequate supporting documentation to prove that therewas a detailed review of the purchase and that the use of the thirdparty payment merchant was unavoidable. Transactions made with athird party payment merchant are considered high risk for bothsubsequent audit and data mining screening.

Training- Commercial Off-the-Shelf Training - is defined as trainingproducts and services regularly available to the general publicand/or Government personnel. The term includes training offered incatalogs or other printed material by a college, university,professional association, consultant firm or organization. It doesnot include training specifically developed, designed, and producedto meet requirements unique to an organization and/or program. Non-government training sources include, but are not limited to:

(1) State government or instrumentality;

AppendixJ: Glossary (continued)

(2) Interstate government organization;

(3) Medical, scientific, technical, educational, research, orprofessional institutions, foundations or organizations; and,

(4) Universities,technical, business, and vocational schools, business,commercial, or industrial firms, corporations, partnerships,proprietorships, or other organizations.

UnitedStates - The 50 States and theDistrict of Columbia, the Commonwealth of Puerto Rico, the VirginIslands, the Commonwealth of the Northern Mariana Islands, Guam,American Samoa, Wake Island, Johnston Island, Canton Island, theouter Continental Shelf lands, and any other place subject to thejurisdiction of the United States (but not including leased bases).