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Title: Introduction to the


1
Introduction to the MARAD Purchase Card Program
Module 1 Chapter 1 December 14, 2005
Rita Thomas Office of Acquisition Maritime
Administration Rita.Thomas_at_dot.gov
2
Introduction to the MARAD Purchase Card Program
  • Agenda
  • Regulation Web Sites
  • What is the Purchase Card Program
  • About the Convenience Checks
  • Who Administers the Purchase Card Program
  • Frequently Asked Questions

MARAD Purchase Card Program Chapter 1
3
Web Sites For Regulations
  • 1. Federal Acquisition Regulation
    www.arnet.gov/far
  • 2. Transportation Acquisition Regulation
    www.dot.gov/ost.m60
  • 3. MARAD Intranet - intramarad.dot.gov
  • 4. Small Business Administration - www.sba.gov

4
What is the Purchase Card Program?
Quick description - The Purchase Card Program
allows you to make Govt purchases (within
restrictions) using a credit card.
  • Benefits -
  • Purchase orders not necessary for micro purchases
    (under 2,500)
  • Appropriately warranted officials may use card
    for larger purchases
  • Lowers costs associated with processing small
    purchases
  • Shortens acquisition lead time
  • Purchases automatically recorded in U.S. Bank
    database (not subject to FPDS reporting)
  • Payments are made using electronic funds
    transfer.
  • Background -
  • In 1998 - OMB designated GSA to manage the
    Program
  • In 2004 - DOT selected U.S. Bank (MasterCard)

5
About the Convenience Checks
Q Is the Purchase Card the same as the Govt
Travel Card? A No. You cannot use the
Purchase Card for Govt travel. Q Are
Convenience Checks Available to MARAD
Cardholders? A Yes. In cases where your
credit card is not accepted, our agency permits
the use of convenience checks. Convenience
checks are to be used only as a last
resort. The purchase card contractor will
provide a supply of checks to designated
cardholders drawn on the cardholder's purchase
card account. The checks will be processed as
they are presented for payment. Convenience
checks are multi-copied (one copy for the
cardholder's records, the original for the
merchant). There is a 2 fee charged to the
total dollar amount when writing convenience
checks.
6
Who administers the Purchase Card Program?
  • GSA is the contracting agency for the entire
    program.Each agency defines its internal
    policies procedures.
  • U.S. Bank - Provides credit for MARAD Govt
    Purchase Card uses - Maintains all account
    issues cards to cardholders - Provides online
    transaction reconciliation (Access Online
    System) - Pays merchants - Investigates
    disputes.
  • Office of Acquisition - Delegates limited
    contracting authority to cardholders - Receives
    written requests for proposed cardholders -
    Forwards requests to U.S. Bank for processing -
    Reviews card use - Audits - Revokes cards if
    abuse is discovered - Acts in an advisory
    capacity

7
Who administers the Purchase Card Program?
(continued..)
  • Agency Program Coordinator (APC)Is the official
    liaison between DOT, GSA, and U.S. Bank.
  • The APC for MARAD is
  • Rita C. Thomas
  • Office of Acquisition
  • Program Analyst
  • 400 - 7th Street, SW
  • Washington, DC 20590
  • Telephone (202) 366-2802
  • In the absence of the APC, contact Wayne
    Leong, at (202) 366-5620

8
Organizational Structure (MARADs Purchase Card
Program)
9
Frequently Asked Questions
Q May I contact the Purchase Card Contractor
Directly? A You may contact the purchase card
contractor to report a lost or stolen
card and for general information. U.S. Bank
1-888-994-6722 Q Who is eligible to Use the
Card? A Cardholders in Headquarters Program
Offices or Field Program Offices who
have been trained to use the purchase card.
Approving Officials in Headquarters Program
Offices or Field Program Offices who
have been trained to use the purchase card.
Approving Officials are not authorized to
use their cardholders purchase
card to make purchases.

10
Frequently Asked Questions
(continued..)
Q How Can I Get a Card? A Program Offices
and Field Program Offices must submit a memo to
the Director, Office of
Acquisition-MAR-380/Washington, DC. Memo must
include (1) Name of proposed cardholder and
approving official. (2) Request for delegation
of procurement authority. (3) Monthly spending
limit. (4) Single spending limit. (5) What
type of supplies/services the card will be used
for. (6) MAR/MRG Code. (7) Accounting
string that will be applied to the purchase
card. The memo must accompanied by evidence of
completed purchase card training. The APC will
complete appropriate forms and forward to U.S.
Bank. Card is mailed to cardholder within 2
weeks. Cardholder should sign the card
immediately. Activate the card by calling the
800 number provided on the card.
11
Frequently Asked Questions
(continued..)
Q Should merchants keep your purchase card
information in their files for future
purchases? A No, you as a cardholder must tell
the merchants not to keep any of your
purchase card information in their files for
future orders. Q Should Government Purchase
Card Cardholders pay taxes for
purchases made with the Government purchase
card? A Government Purchase Card Cardholders
should never pay state or local taxes
for purchases made for the Government. (See
Attachment A - State Tax Letter
GSAs request letter to the states, asking them
to continuing to extend tax exemption
status to the federal government credit card
purchases)

12
END Module 1 Chapter 1 Introduction to
the MARAD Purchase Card Program
Rita Thomas Office of Acquisition Maritime
Administration Rita.Thomas_at_dot.gov
13
Purchase Card Program Duties and Responsibilities
Module 1 Chapter 2 December 14, 2005
Rita Thomas Office of Acquisition Maritime
Administration Rita.Thomas_at_dot.gov
14
Purchase Card Program - Duties and
Responsibilities
  • Agenda
  • What Training is Necessary
  • Approving Official Duties and Responsibilities
  • Cardholder Duties and Responsibilities

MARAD Purchase Card Program Chapter 2
15
What Training is Necessary?
  • If you are a proposed cardholder or approving
    official, you must successfully complete the
    Purchase Card Training before applying for your
    card.
  • Purchase Card Program Team Personnel are
  • Agency Program Coordinator - Rita C. Thomas
  • Fund Control Officer - Velma Marshall/Mark
    Truffer
  • Property Control Officer - Jimmie Gleaton
  • Accounting Officer - John Hoban/Osvaldo Jorge
  • Dispute Officer - John Hoban/Rita C. Thomas

16
Approving Official - Duties and Responsibilities
  • The Approving Official oversees and reviews
    purchase card purchases
  • and the associated documentation maintained by
    cardholders.
  • Each approving official
  • Reviews cardholders electronic transactions and
    any additional purchase documentation, such as
    receipts and purchase request.
  • Timely approves the cardholder's transactions and
    ensures that purchases are not being split and
    payments are for purchases which are authorized
    and made in accordance with procurement
    regulations

17
Approving Official - Duties and
Responsibilities (continued..)
  • Initiates issuance of purchase cards, upon
    termination collects purchase cards and
    forwards to the APC, and removes individuals from
    the purchase card program when appropriate
  • (4) Initiates possible disciplinary actions
    against abusing cardholders.
  • Ensures that the inventory and disposition of all
    items, in particular non-consumable items such as
    capital equipment, are in accordance with
    applicable property management regulations.
  • No cardholder can be his or her own approving
    official.
  • If you are an approving official, you cannot
    designate any person to whom you are
    subordinate as a cardholder.

18
Cardholder - Duties and Responsibilities
  • Cardholder must comply with all applicable
    regulations and procedures such as the Federal
    Acquisition Regulations, Department of
    Transportation Acquisition Regulations and
    Maritime Administration Guidance.
  • Cardholders are the Governments legal agent
    for each purchase made with the purchase card.
    You are legally responsible and accountable for
    each transaction.
  • Verify the accuracy of your name and address
  • Call the toll-free number provided by the
    purchase card contractor to confirm receipt of
    your card and to activate your account
  • Sign the card and
  • Review cardholder guide provided by the card
    contractor.

19
Cardholder - Duties and Responsibilities
(continued..)
  • Each Cardholder is responsible to
  • Secure the card
  • Maintain a purchase card log
  • Ensure funds availability before purchase
  • Use the purchase card strictly in accordance with
    all governing guidelines
  • Compare prices
  • Observe all dollars limits on purchases
  • Use card ethically
  • Obtain a receipt at the point of purchase and
    verify it for accuracy
  • Notify U.S. Bank Government Services of any
    billing discrepancies posted on your cardholder
    statement that cannot be resolved with the
    merchant

20
Cardholder - Duties and Responsibilities
(continued..)
  • (10) Reconcile, approve and forward all
    transactions to the Fund Control Officer
  • (11) Follow up on all your purchases for delivery
  • (12) Follow up on all parties involved in the
    transaction approval process
  • (13) Do not allow any member of your staff,
    family or supervisor to use your card. You
    alone, are authorized to use your card

21
Cardholder - Duties and Responsibilities
(continued..)
  • Each Cardholder
  • Resolves problems with the merchant, such as an
    incorrect amount charged for goods or services
    received, and assist the purchase card contractor
    with any investigation of disputed charges and
  • Must cut in half and return the purchase card
    through the approving official and reconcile
    transactions, upon termination of employment or
    no longer participating in purchase card program.

22
END Module 1 Chapter 2 Purchase Card
Program Duties and Responsibilities
Rita Thomas Office of Acquisition Maritime
Administration Rita.Thomas_at_dot.gov
23
Using the Purchase Card
Module 1 Chapter 3 December 14, 2005
Rita Thomas Office of Acquisition Maritime
Administration Rita.Thomas_at_dot.gov
24
Using the Purchase Card
  • Agenda
  • Purchase Limitations
  • Types of Merchants
  • Strictly Prohibited Purchases
  • Guidelines for Using the Purchase Card
  • Oral Purchase Procedures
  • What Documents to Maintain
  • Procedures for Tracking, Receiving and Acceptance
    of Purchases

MARAD Purchase Card Program Chapter 3
25
Single Purchase Limit
  • Single Purchase Limit -
  • Is the limit on the procurement authority
    delegated to the Cardholder.
  • Do not exceed unless revised delegation of
    authority is issued by the Director of
    Acquisition.
  • A single purchase may include multiple items.
    However no single purchase shall exceed the
    authorized single purchase limit.
  • The single purchse limit is
  • Up to 2,500 for program office personnel
  • Up to 100,000 for personnel possessing
    appropriate warrant authority.

26
Monthly Limit
  • Monthly Cardholder Limit
  • Budgetary limit established for the cardholder
  • The monthly limit represents the cumulative
    dollar limit for your purchases in one month
  • It may be set to any dollar amount equal to or
    greater than single purchase limit
  • Total value of monthly purchases cannot exceed
    this limit

27
Purchase Limits
If you attempt to make a purchase not within
your dollar limits, the purchase card transaction
will automatically be rejected at the point of
sale. If your office has a request to
temporarily raise the monthly limit,
contact the APC at (202) 366-2802.
28
What Types of Merchants Can I Purchase From?
  • Mail order houses, subscription
  • Discount/department stores, miscellaneous general
    merchandise, duty free stores
  • Miscellaneous and specialty retail stores -
    lumber/hardware, lawn, garden, clothing, home
    furnishing and equipment, household supplies
  • Government services not elsewhere classified and
  • Miscellaneous business services.

29
What Types of Merchants Can I Purchase From?
(continued..)
__________________________________________________
___________
  • Any business supply or service may be purchased,
    as long as regulations applicable to that
    specific item or service are followed.
  • Examples
  • If you are purchasing information technology (
    computers, videos and DVDs, facsimile, printers,
    telephones, software, and many other products
    along with IT services), the products/services
    you purchase must conform to the technical
    standards of Section 508 of the Rehabilitation
    Act, or you may be subject to a complaint
    requiring you to replace the products.
    www.section 508.gov includes more information on
    this law and resources to help you buy
    products/services that comply with the
    accessibility requirements of section 508.
  • Please contact the Chief Information Officer
    (CIO) (MAR-340) for approval before purchasing
    information technology. Cardholders must ensure
    the IT checklist is completed and signed by the
    CIO. CIOs approval of the check list
    constitutes approval of the purchase.

30
What Types of Merchants Can I Purchase Form?
(continued..)
__________________________________________________
___________
  • Prior to purchase of property items you must get
    approval from the
  • Office of Management Services (MAR-310).
  • Buy Green
  • When you use your purchase card to buy green
    products, you and your agency are helping to
    perform the mission in a cost-effective manner,
    enhancing energy security, creating markets and
    promoting environmental stewardship.
  • Recyclable or recycled materials will be
    purchased to the maximum extent practicable,
    consistent with Federal law and procurement
    regulations - RCRA, section 6002, such as
    paper, toner cartridges etc..

31
What Types of Merchants Can I Purchase Form?
(continued..)
__________________________________________________
___________
  • (A). Buying recycled content products
  • The Resource Conservation and Recovery Act
    requires the purchase of recycled content
    products designated by the Environmental
    Protection Agency (EPA). The EPA maintains a
    list of designated recycled-content products and
    recommends recycled-content levels that you
    should use when buying these products. To date,
    54 recycled content products in 8 categories have
    been designated ranging from construction
    products to office products. Example of recycled
    content products are recycled content copier
    paper and re-refined lubricating oil. Refer to
    www.epa.gov/cpg for list of products, EPAs
    recommendations, and additional information

32
What Types of Merchants Can I Purchase Form?
(continued..)
__________________________________________________
___________
(B). Buying biobased products Go to www.ofee.gov
and click on Green Purchasing for additional
information. (C). Buying energy efficient
products Refer to www.eren.doe.gov/femp/procuremen
t for efficiency recommendations,
cost-effectiveness examples, buyer tips, product
sources, and for additional information. (D).
Buying environmentally preferable products Refer
to www.epa.gov/oppt/epp for summaries of the
pilot projects, sample contract language,
standards information, product sources, and
additional information.
33
Strictly Prohibited Purchases
These items are NEVER to be purchased using the
purchase card (1) Personal Purchases (2) Cash
Advances (3) Advance Payments (4) Airlines, Bus,
Boat, or Train Tickets (5) Rental or Lease of
Motor Vehicles on official Travel (exception on
bus rental for Maritime hosted events or for the
transport of the USMMA midshipmen)
34
Strictly Prohibited Purchases
(continued..)
  • (6) Lodging, Travel Expenses, Beverages or Meals
    (excluding conference rooms, meetings spaces, and
    local transportation services such as metro
    farecards, subway tokens etc.)
  • (7) Rental or Lease of Land or Buildings
  • (8) Telecommunications (telephone) Services,
    i.e., major systems such as FTS 2000 or DSN
  • (9) Repairs on Motor Vehicles in the GSA Fleet
    Management Program and or Department owned or
    Commercially leased vehicles. (Exceptions, when
    authorized, are MARAD owned vehicles over 10
    years old where repairs do not exceed 1,500.00
    per year)
  • Temporary Secretarial Support Services
  • IT equipment or services not coordinated with the
    Office of Chief Information Officer (MAR-340)

35
Can I Buy Services?
Yes. Your purchase card can be used to purchase
services that comply with the dollar limitations,
merchant category restrictions and authorized
uses of the card.
36
About Your Government MasterCard
  • Your Government MasterCard
  • Has your name embossed on it
  • May only be used by you and
  • Shows the seal of the U.S. and the words "United
    States of America" imprinted on it to avoid being
    mistaken for a personal credit card.
  • Use of the purchase card should be consistent
    with
  • Established guidelines for required sources of
    supply and applicable acquisition procedures
  • The acquisition rules established in the Federal
    Acquisition Regulations (FAR)
  • Agency/Organization policies and procedures.

37
Guidelines for Using the Purchase Card
  • Use the MARAD Purchase Card Checklist.
    (See - Attachment B )
  • FAR Part 8 Required Sources of
    Supplies and Services
  • The Federal Acquisition Streamlining Act did
    not abolish the priorities for use of the
    Government supply sources as stated in Part 8
    (Required Sources of Supplies and Services) of
    the Federal Acquisition Regulations.
    Micro-purchases are not exempt from this
    requirement. The following information is
    provided to assist you in locating sources that
    can supply required supplies and services.

38
Guidelines for Using the Purchase Card
(continued..)
  • Required Sources
  • Committee for Purchase from People Who are Blind
    or Severely Disabled - www.jwod.gov or call
    (703) 603-7740
  • National Industries for the Blind - www.nib.org
    or call (800) 433-2304.
  • NISH - www.nish.org or call (703) 560-6800
  • GSA Products and Services o GSA Advantage!
    Http//www.gsaadvantage.gov/ or call
    (800)525-8027 or fax (800) 856-7057
  • GSA Federal Supply Schedules- http//fss.gsa.gov/s
    chedules/ or call (800) FSS-0070
  • Federal Prison Industries, Inc. - www.unicor.gov
    or call (800) 827-3168
  • Excess supplies from other agencies -
    http//fss.gsa.gov/property/ or call (703)
    305-7240

39
Guidelines for Using the Purchase Card
(continued..)
Open Market Purchases If you are
not required to get quotations, can you always
buy from the same source? Part 13.202(a) of
the Federal Acquisition Regulations recommends
that micro-purchases be equitably distributed
among qualified merchants to the extent
practicable.
40
Oral Purchase Procedures
When to use oral purchase procedures An oral
purchase requires no written purchase order or
contract. You may make an oral purchase when
your requirements can be described in sufficient
detail so that the vendor has a clear
understanding of what is required, and if the
vendor does not need a written purchase order or
contract.
41
How to use Oral Purchase Procedures
  • You must
  • Contact the merchant and identify yourself as a
    Government employee who is making a purchase with
    a Government purchase card.
  • Indicate that the purchase will be tax exempt.
    (See attached State Tax Exemption Letter GSAs
    Request Letter)
  • Verify the quantity and quality of the items or
    service agreement with the merchant
  • Ensure that all items purchased are immediately
    available. No splitting or backordering of
    purchases is permitted
  • Note the purchase in your purchase log. Your log
    must be maintained electronically in the Purchase
    Card Reconciliation System (PCRS) accessible via
    the VOA at http//voa.marad.dot.gov

42
How to use Oral Purchase Procedures
(continued..)
(f) For telephone and mail order - ask the
merchant for the total including any shipping and
handling charges at FOB destination. Also request
that a copy of the charge slip be delivered with
merchandise and ask not to be billed until
shipment has occurred. (g) Request that the
merchant to do not keep any of your purchase card
information in their files for possible future
purchases from you. (h) Use your government
address for all shipment of supplies or
services. (i) Record the purchase in your
purchase log.
43
More about Oral Purchase Procedures
  • At the time the merchant obtains credit card
    authorization, the contractors authorization
    system automatically checks your purchase limits
    and merchant restrictions.
  • If the purchase is outside any one of the
    established limits, it will automatically be
    rejected at the point of sale.
  • Merchants who accept credit cards pay the credit
    card contractor an administrative fee. Ensure
    that this fee is not added to the total price.

44
What Documentation to Maintain
  • You must
  • Document the reason for buying from lower
    priority or non-mandatory source
  • Obtain price competition from two or more sources
    for purchases above the micro-purchase threshold
    (2,500)
  • Document that the price paid is fair and
    reasonable
  • Report all accountable personal property items to
    the responsible administrative officer for
    inclusion in inventory
  • Track all purchases made along with the purchase
    cards remaining balance
  • Maintain a purchase card log and

45
What Documentation to Maintain
(continued..)
  • Keep Your Records
  • g. Keep all necessary information on each
    purchase card transaction. You must have the
    following information
  • The item purchased (including a description,
    unit number and quantity)
  • The amount of the purchase
  • The name of the merchant and
  • The date you received the item purchased.
  • Failure to retain records can result in
    excess administrative burden when you attempt to
    reconcile your monthly transactions.

46
Procedures for Tracking, Receiving and Acceptance
  • Instruct the vendor to include the following
    information on the shipping document or packing
    slip
  • Cardholder's name, mail code, and telephone
    number
  • Work address street address, city state and
  • Purchase card order/delivery number.
  • If item is picked up, the cardholder must sign
    the packing slip or sales receipt, and maintain
    for reconciling cardholder statement.
  • Acceptance is verifying that the supply or
    service actually does meet the minimum
    requirements of the Government and that the bill
    should be paid in full. Also as part of the
    acceptance procedure, you should report equipment
    that you ordered and accepted to your Property
    Officer for inventory management purposes. Mark
    your records as completed.

47
END Module 1 Chapter 3 Using the Purchase Card
Rita Thomas Office of Acquisition Maritime
Administration Rita.Thomas_at_dot.gov
48
Recognizing / Reporting Fraud and Misuse
Module 1 Chapter 4 December 14, 2005
Rita Thomas Office of Acquisition Maritime
Administration Rita.Thomas_at_dot.gov
49
Recognizing / Reporting Fraud and Misuse
  • Agenda
  • What is Fraud?
  • Recognizing Fraud
  • Reporting Fraud
  • Penalties for Misuse

MARAD Purchase Card Program Chapter 4
50
What is Fraud?
  • Fraud
  • Is any felonious act of corruption or attempt to
    cheat the Government or corrupt the Government's
    agents.
  • May be committed either by Government employees
    or by merchants.
  • There are two responsibilities each
    cardholder has relative to fraud
  • (1) You must be alert to the indicator of
    fraud, and
  • (2) You must report suspected fraud
    immediately.

51
Recognizing Fraud
  • Indicators of potential fraud by
    Government Employees include
  • Splitting requirements to get under the
    micro-purchase threshold
  • Making false statements about what was purchased
    or how the purchase card was used and
  • Using the purchase card for prohibited purchases.

52
Recognizing Fraud
(continued..)
  • Indicators of Merchant fraud include
  • False charges/transactions
  • Mischarging
  • Bribes and gratuities
  • Kickbacks

53
Reporting Fraud
  • You must report all indicators of fraud.
  • Identify the responsible official(s) and
    report them through the proper channels.
  • You can make reports to any of the following
    as appropriate
  • Your Approving Official
  • Your APC
  • Paying/Finance Officer
  • Office of the Inspector General (call the
    hotline)
  • Office of Special Investigations (for Defense
    agencies)

54
Penalties for Misuse
  • Extent of MARAD Liability.
  • MARAD is liable only for authorized use of
    Government purchase cards by authorized
    cardholders.
  • MARAD shall not be liable for intentional use of
    a purchase card to obtain items not authorized
    for purchase.
  • This is considered an attempt to commit
    fraud against the U.S. Government and could
    result in the following actions against the
    cardholder.
  • Immediate cancellation of the purchase card
  • Immediate disciplinary action for unauthorized or
    careless use
  • Liability to MARAD for the total dollar amount of
    the unauthorized purchase, and/or
  • A fine of not more than 10,000, imprisonment for
    not more than 5 years, or both under 18 U.S.C.
    287.

55
END Module 1 Chapter 4 Recognizing /
Reporting Fraud and Misuse
Rita Thomas Office of Acquisition Maritime
Administration Rita.Thomas_at_dot.gov
56
Cardholder Statement/Transactions
Module 1 Chapter 5 December 14, 2005
Rita Thomas Office of Acquisition Maritime
Administration Rita.Thomas_at_dot.gov
57
Procedures After Purchases
  • Agenda
  • Statements
  • Electronic Access
  • Procedures for Processing Statement/Transactions
    (Cardholder)
  • Procedures for Processing Statement/Transactions
    (Approving Official)
  • Disputed Items

MARAD Purchase Card Program Chapter 5
58
Statements
At the close of each billing cycle, the 19th of
each month you will receive a statement via
email. The Approving Officials will receive
notification that statements were sent to their
cardholders. The Cardholder statement will
itemize each transaction that was posted to your
purchasing card during the past billing cycle.
You process your statement or daily transactions
by using electronic access.
59
Electronic Access
  • Access to your account and transactions
    information can be obtained
  • through the U.S. Bank electronic Access System.
    Based on MARADs
  • policies and procedures, the U.S. Bank electronic
    Access System enables
  • Cardholders to
  • Review and approve transactions
  • Initiate transaction disputes
  • Reallocate charges to specific accounting codes
  • Enhance transaction data

60
Procedures for Processing Statement/Transaction
(Cardholder)
  • The Cardholder Must
  • Review and verify all charges and credits on the
    billing statement/transactions purchase card
    account in concert with the receipt and
    supporting documentation.
  • Verify that you receive a credit for a returned
    or canceled item, and that the credit is
    reflected on the statement/transaction purchase
    card account.
  • Retain the transaction documentation, match with
    the purchase or credit that appears on the
    statement/transaction account.
  • If for some reason you do not have documentation
    of a transaction, document the explanation to
    includes a description of the item, date of
    purchase, merchants name and why there is no
    supporting documentation.
  • Confirm or change accounting data into U.S. Bank
    Access Online System.



61
Procedures for Processing Statements/Transactions
(Cardholder)
(continued.) 6. Notify the Dispute Officer or
the APC to help resolve purchases or credits that
do not appear on the subsequent monthly statement
or is not part of your purchase card transaction
account. 7. Approve and forward via Access
Online all transactions to your Fund Control
Officer (FCO) for their review and approval. 8.
Forward all supporting transaction documentation
to your approving official for review and
approval. What If Im Absent? If you
cannot review the statement or transactions when
received, the approving official must review and
approve the statement or transactions. Upon
your return, the approving official should
review the statement/transactions with you. If
you need assistance contact the APC. 9. Retain
purchase card records for 3 years after final
payment.
62
Procedures for Processing Statements/Transactions
(Approving Official)
  • The Approving Official Must
  • Note the actual receipt date of the statement
  • Ensure that
  • Supporting documentation of purchases is complete
    and is attached to the cardholder
    statement/transactions
  • The cardholder has entered or accepts the
    accounting data into the U.S. Banks Access
    Online System
  • The items purchased were authorized, the
    necessary clearances prior to purchase were
    received, and the purchases were otherwise
    appropriate and
  • Final approve the statement/transactions in the
    U.S. Banks Access Online System.

63
Procedures for Processing Statements/Transactions
(Approving Official)
(continued.) 3. Follow-up on all approvals
to avoid cardholder suspension (suspension will
occur if cardholder has transactions 45 days old
that have not been reviewed and approved by all
parties involved in the transaction approval
process).
64
Billing Errors and Disputes
  • Disputes Billing Errors
  • A dispute is a questionable purchasing card
    transaction posted to your cardholder statement.
    There are several reasons why a dispute might
    occur. Some examples include
  • Merchandise/service not received
  • Merchandise returned
  • Unauthorized purchases
  • Duplicate processing
  • Unrecognized charge
  • Items that cannot be disputed include
  • Convenience checks
  • Items not charged directly to the purchasing
    card account.

65
Resolving Billing Errors and Disputes
  • Disputes Billing Errors
  • Before disputing or questioning a charge on your
    Cardholder Statement/Transaction, please validate
    that you have taken the following actions
  • Reviewed your receipts for the amount in
    question as it may have posted to


    your Cardholder Statement with a
    different merchant name.
  • Attempted to contact the merchant in an attempt
    to resolve the issue.
  • If the above actions have been taken and you
    still desire to dispute the transaction, disputes
    may be filed online using the U.S. Bank
    electronic Access System. There may be
    circumstances where written correspondence is
    required. In these instances complete the CSQI
    form. This form is available online or from your
    Agency Program Coordinator. The CSQI form must
    be returned to U.S. Bank no later than 60 days
    after the statement date on which the transaction
    appeared, in order to preserve your rights to
    dispute the transaction. Be sure to retain a
    copy for your files.

66
END Module 1 Chapter 5 Cardholder
Statement/Transactions
Rita Thomas Office of Acquisition Maritime
Administration Rita.Thomas_at_dot.gov
67
Care of the Purchase Card
Module 1 Chapter 6 December 14, 2005
Rita Thomas Office of Acquisition Maritime
Administration Rita.Thomas_at_dot.gov
68
Care of the Purchase Card
  • Agenda
  • Lost or Stolen Cards
  • When a Cardholder Leaves the Agency
  • When a Cardholder Transfers to Another Office
  • Audits
  • Renewing an Expiring Purchase Card

MARAD Purchase Card Program Chapter 6
69
Lost or Stolen Cards
  • If your card is lost or stolen
  • Notify the purchase card contractor directly at
    1-888-994-6722
  • Notify the approving official within 1 workday of
    discovering the card missing.
  • The Approving Official must submit a written
    report to the APC within 5 workdays. The report
    must include the
  • Card number
  • Cardholder's complete name as shown on the card
  • Date and time the purchase card contractor was
    notified
  • If stolen, date reported to police
  • Date and time the purchase card contractor was
    notified
  • All purchases made immediately prior or on the
    day the card was lost or stolen and
  • Any other pertinent information.

70
Lost or Stolen Cards (continued..)
The purchase card contractor will mail a new card
with a new account number to you within 24 hours
of the reported loss. If you subsequently find
the card after reporting it lost or stolen, cut
in half and give it to your approving official.
The approving official must forward the halves to
the APC. Please keep in mind that only you as the
cardholder can use your purchase card and account
number. It is your responsibility to safeguard
the purchase card and account number at all
times. When you are not using the card, it must
be kept in a secure location. The account number
may be disclosed only as necessary for the use of
the card.
A violation of this trust may result in
withdrawal of your card or disciplinary action,
or both.
71
When a Cardholder Leaves the Agency
  • If a Cardholder leaves the Agency, he/she must
  • Cut the card in half
  • Surrender the cut card to the approving official
  • Give all pertinent material to his or her
    approving official
  • Unreconciled requisitions
  • Sales drafts
  • Purchase card log, and
  • Cardholder statements/transactions
  • If an Approving Official leaves the Agency,
    he/she must
  • (1) Forward all records to the APC

72
When a Cardholder Transfers to Another Office
  • If a Cardholder is transferred to another
    office within the agency with a
  • different approving official, he/she must
  • Cut the card in half
  • Surrender the card and all there transaction
    documentations to the former approving official.
  • The former approving official will forward the
    halves to the APC.
  • If the new approving official designates
    you to be a cardholder
  • within the new office, you must forward a
    new written request for
  • delegation of procurement authority to the
    Director, Office of Acquisition
  • or Chief of Contracting Office for
    processing.

73
Will Cardholders and Approving Officials Be
Audited?
Periodic, random audits will be conducted to
ensure compliance and accountability for all
Purchase Card purchases.
74
Renewing an Expiring Purchase Card
  • Unless you are notified otherwise by the APC, the
    purchase card
  • contractor will automatically reissue a new card
    directly to you prior
  • to expiration of your current card.
  • You must activate cards similar to new account
    cards.
  • The APC reviews expiring cards prior to
    re-issuance.

75
END Module 1 Chapter 6 Care of the Purchase Card
Rita Thomas Office of Acquisition Maritime
Administration Rita.Thomas_at_dot.gov
76
Ethical Conduct
Module 1 Chapter 7 December 14, 2005
Rita Thomas Office of Acquisition Maritime
Administration Rita.Thomas_at_dot.gov
77
Ethical Conduct
  • Agenda
  • Standards of Ethical Conduct
  • Accepting a Gift
  • Items Specifically Excluded By the Gift Rules
  • Circumstances Under Which You May Accept a Gift
  • The 20 /50 Rule

MARAD Purchase Card Program Chapter 7
78
Standards of Ethical Conduct
An employee shall not, directly or
indirectly, solicit or accept a gift from a
prohibited source because of the employee's
official position. What is a GIFT
?Anything of monetary value such as
gratuities, favors, discounts, entertainment,
hospitality, loans, forbearance (forgiveness of a
loan), services, training, transportation,
travel, meals, lodging, etc.
79
Accepting a Gift
What does it mean to accept a gift directly or
indirectly? Directly is straightforward - You
accept the gift. Indirectly means that someone
gives a gift, with your knowledge and
acquiescence, to someone else, possibly your
spouse or child, a sibling or other dependent
relative because of that person's relationship to
you. A gift could also be indirectly given to
any other "person" including any charitable
organization at your recommendation or
designation.
80
Gift Rules Specifically Exclude . . .
  • The definition of gifts is broad, but the
    gift rules specifically exclude certain things
    from being treated as gifts. The gift exclusions
    are
  • Greeting cards and items with little intrinsic
    value, such as plaques, certificates, and
    trophies, which are intended solely for
    presentation.
  • Modest items of food and refreshments, such as
    soft drinks, coffee and donuts, offered other
    than as part of a meal.
  • Loans from banks and other financial institutions
    on terms generally available to the public.
  • Opportunities and benefits, including favorable
    rates and commercial discounts, available to the
    public or to a class consisting of all Government
    employees.

81
Gift Rules Specifically Exclude . . .

(continued.) 5. Rewards and prizes given to
competitors in contests or events, including
random drawings, open to the public unless the
employee's entry into the contest or even is
required as part of his official duties. 6.
Pensions and other benefits resulting from
continued participation in an employee welfare
and benefits plan maintained by a former
employer. 7. Anything which is paid for by the
Government or secured by the Government under
Government contract. 8. Any gift accepted by
the Government under specific statutory
authority.
82
Circumstances Under Which You May Accept a Gift
  • The basic gift rules are written to ensure
    that you do not accept gifts inappropriately.
    There are circumstances under which you may
    accept a gift even when it is from a prohibited
    source or given because of your official
    position.
  • The 12 gift exceptions are
  • Gifts of 20 or less.
  • Gifts based on a personal relationship.
  • Discounts and similar benefits.
  • Awards and honorary degrees.
  • Gifts based on outside business or employment
    relationships.

83
Circumstances Under Which You May Accept a Gift
(continued) 6. Gifts in connections with
political activities permitted by the Hatch Act
Reform Amendments. 7. Widely attended
gathering and other events. 8. Social
invitations from persons other than prohibited
sources. 9. Meals, refreshments and
entertainment in foreign areas. 10 Gifts to the
President and Vice President. 11. Gifts
authorized by supplemental agency regulation. 12.
Gifts accepted under specific statutory
authority.
84
The 20 / 50 Rule
Of the twelve Gift Exceptions, rule number
one seems to generate the most questions.
Under the 20/50 rule, an employee may accept an
unsolicited gift of 20 or less per occasion and
no more than 50 in a calendar year from one
person. Where the market value of a gift
offered on any single occasion exceeds 20, the
employee may not pay the excess value over 20 in
order to accept the gift. Where the
aggregate value of tangible items offered on a
single occasion exceeds 20, the employee may
decline any distinct and separate item in order
to accept those items aggregating 20 or less.
Standards of Ethical Conduct may be found at
5 U.S.C. 2635 or reference the agency ethics
training.
85
END Module 1 Chapter 7 Ethical Conduct
Rita Thomas Office of Acquisition Maritime
Administration Rita.Thomas_at_dot.gov
86
Purchasing Non-Expendable Personal Property
Module 2 Chapter 1 December 14, 2005
Jimmi Gleaton Property Control Officer Maritime
Administration Jimmi.Gleaton_at_dot.gov
87
Purchasing Non-Expendable Personal Property
  • Agenda
  • Definition - Non-Expendable Personal Property
  • Documenting Receipts
  • Processing Receipts
  • Accountability and Control
  • Points of Contact

MARAD Purchase Card Program Chapter 1
88
Definition - Non-Expendable Personal Property
For the purpose of this training, Non-Expendable
Personal Property is defined as equipment with an
acquisition cost of 100.00 or more.
89
Documenting Receipts
  • Receipting of all non-expendable personal
    property must be accomplished to provide
    documentation for
  • Entry of equipment into MARADs personal property
    inventory records
  • Substantiation of payment.
  • There is no single form used for this purpose.

90
Documenting Receipts (continued)
  • There are several methods for accomplishing this
    task, including
  • Form MA-50 (Requisition for Supplies, Equipment
    and Services)
  • Form MA-949 (Supply, Equipment or Service
    Order/Contract)
  • Formal letter or memorandum , etc.
  • Adequate receipt information necessary for
    updating MARADs property records and authorizing
    payment consists of one of the above mentioned
    forms with one of the following
  • A Receipt from the vendor
  • A copy of the credit card purchase slip, or
  • The packing slip

91
Processing Receipts
  • Receipt information must identify the equipment
    as to
  • Vendor
  • Description
  • serial number
  • Quantity
  • Cost
  • Date of receipt
  • Location, and
  • Warranty (if any).
  • A copy of the receipt information must be
    provided to the appropriate Accountable Property
    Officer (APO) on a weekly basis.
  • Receipts for this equipment should be forwarded
    to APOs immediately after receipt of this
    material.

92
Accountability and Control
  • Upon notification that the equipment has been
    received, the APO will ensure that the equipment
  • Is bar coded
  • Is recorded in MARADs Barcode Inventory Tracking
    System (BITS).
  • This equipment will then become part of MARADs
    official inventory and must be accounted for at
    all times.
  • Note Regardless of the cost, all weapons must be
    recorded in MARADs personal property tracking
    system.

93
Points of Contact
The following is a list of MARAD designated
Accountable Property Officers Questio
ns regarding personal property accountability
should be directed to the Office of Management
Services (MAR-310), telephone number 202-366-5816.
Headquarters, Regions, and Field Offices - Jimmi
Gleaton RRF Shore-based Spares - Richard
Williams Title XI Vessels - Mitchell Lax Beaumont
Reserve Fleet - Linda Viltz Suisun Bay Reserve
Fleet - Darlene Campbell James River Reserve
Fleet - Vicki Kinkade U.S. Merchant Marine
Academy - Edmund Wallace Great Lakes - Floyd
Miras
94
END Module 2 Chapter 1 Purchasing
Non-Expendable Personal Property
Jimmi Gleaton Property Control Officer Maritime
Administration Jimmi.Gleaton_at_dot.gov
95
Purchase Card Funding Procedures
Module 3 Chapter 1 December 14, 2005
Velma Marshall Fund Control Officer Maritime
Administration Velma.Marshall_at_dot.gov
96
Purchase Card Funding Procedures
  • Agenda
  • Program Officials Responsibilities
  • Fund Control Officers Responsibilities
  • Program Office Fund Documentation Procedures
  • Increasing Purchase Card Limits
  • Acquisition Office Fund Documentation Procedures
  • Recordkeeping Responsibilities

MARAD Purchase Card Program Chapter 1
97
Program Officials Responsibilities
  • It is the responsibility of the program official
    to
  • Earmark funds for the purpose of procuring goods
    and services via a purchase card.
  • Determine annual fund limits, based on the total
    maximum monthly purchases, for each purchase
    cardholder under his/her purview.
  • Inform the purchase cardholder of all appropriate
    fund limits--per purchase, monthly, quarterly,
    and annual.
  • Ensure purchases are not made in excess of
    available funds.

98
Program Officials Responsibilities
(continued)
The program official shall submit a request to
the Fund Control Officer to establish a budget
line item for each new purchase cardholder. At
that time, the program official shall establish
appropriate fund limits for each new purchase
cardholder.
99
Fund Control Officers Responsibilities
  • The Fund Control Officer
  • Ensures that funds are not committed in excess of
    amounts provided in fiscal plans.
  • Validates and processes the purchase card fund
    document, if funds are available.
  • Returns the fund document to the program official
    or purchase cardholder, if funds are not
    available.
  • Establishes and maintains a system for tracking
    commitments.
  • Reviews on a monthly basis all expenditures.
  • Reconciles all transactions/discrepancies with
    accounting and bank records.

100
Fund Control Officers
Operations and Training (OT) Fund Control
Officer and Back-up Velma E. Marshall/Charisse
Fagins Office of Associate Administrator for
Administration/ Office of Management
Services MAR-300, Room 7301/MAR-310, Room
7301 Telephone (202) 366-2807/(202) 366-4543
Ready Reserve Force (RRF) Fund Control
Officers Mark J. Truffer/Vonnie
Malcolm Immediate Office of the Associate
Administrator for National Security MAR-600.5,
Room 7300 Telephone (202) 366-1947/(202)
366-0657
101
Program Office Fund Documentation Procedures
  • The program office purchase cardholder shall
    complete form MA-50, Requisition for Supplies,
    Equipment, and Services to commit funds for
    purchase card purchases.
  • The form MA-50 shall reflect the
  • the amount to be committed for the month
  • the purchase cardholder's budget line item
  • the signature of the purchase cardholder
  • the signature of the approving official and
  • the signature of the Fund Control Officer.

102
Program Office Fund Documentation Procedures
(continued..)
The four-part form MA-50 shall be submitted
intact to the Fund Control Officer for
validation. If the program office purchase
cardholder is submitting an electronic version of
the form MA-50, the purchase cardholder need only
submit one signed original for validation.
After validation the Fund Control Officer will
provide a copy of the validated form MA-50 to the
approving official and the purchase cardholder
for record purposes. These steps must be
repeated each month to maintain the maximum
monthly limit.
103
Increasing Purchase Card Limits
Occasionally, purchase card limits need to be
increased to allow for continued use of the
purchase card during a specified period of
time. If the Fund Control Officer determines
that the program office purchase cardholder's
maximum monthly limit needs to be increased,
he/she shall contact the program official and the
purchase cardholder. If it becomes necessary to
increase an existing commitment, the program
office purchase cardholder must prepare and
submit a new form MA-50 to the Fund Control
Officer for validation and processing.
104
Acquisition Office Fund Documentation Procedures
Acquisition office purchase cardholders make
purchases for numerous program offices under a
variety of cost centers. To fund these
purchases, a validated form MA-949, Supply,
Equipment, or Service Order/Contract or form
MA-50, Requisition for Supplies, Equipment, and
Services will be used. Note Fund limitation
restrictions also apply to acquisition office
purchase cardholders. Acquisition office
purchase cardholders shall not make any purchases
in excess of the amount reflected on the
validated form MA-949 or form MA-50.
105
Acquisition Office Fund Documentation Procedures
(continued)
Prior to making a purchase that will exceed the
amount on the form MA-949 or form MA-50, the
acquisition office purchase cardholder must
resubmit the form MA-949 or form MA-50 to the
Fund Control Officer for revalidation. It is
the responsibility of the acquisition office
purchase cardholder to post the award of the
validated form MA-949 or form MA-50 on the
Virtual Office of Acquisition system to establish
the obligation for each purchase.
106
Recordkeeping Responsibilities
Each purchase cardholder is responsible for
establishing and maintaining a recordkeeping
system to ensure purchases are not made in excess
of established fund limits. The Fund Control
Officer is responsible for maintaining a detailed
fund control recordkeeping system to ensure
commitments are not made in excess of amounts
provided in fiscal plans. All records should
be kept for the period of time set forth in the
Maritime Administrations Records Control
Schedule.
107
END Module 3 Chapter 1 Purchase Card Funding
Procedures
Velma Marshall Fund Control Officer Maritime
Administration Velma.Marshall_at_dot.gov
108
Accounting Procedures for The Purchase Card
Program
Module 4 Chapter 1 December 14, 2005
John Hoban Accounting Officer Maritime
Administration John. Hoban_at_dot.gov
109
Accounting Procedures for the Purchase Card
Program
  • Agenda
  • Central Billing Account Statement Cardholder
    Statement
  • Cardholder Responsibilities
  • Reconciliation and Allocation of Transactions
    (U.S. Bank Access System)
  • Fund Control Officers
  • Approving Officials
  • Payment
  • Documentation Requirements
  • Disputed Transactions
  • Accounting Data Adjustment
  • Interest Penalty Fees
  • Authorized Funding Prior To Using Your Purchase
    Card
  • FCO Contacts

MARAD Purchase Card Program Chapter 1
110
Billing Cycle Cardholder Statement
The issuance of hardcopy statements has
been discontinued. The billing cycle is from the
20th of the month to the 19th of the next month.
Cardholders statements will be made available
online one (1) business day after the billing
cycle ends. U.S. Bank will notify each
cardholder via e-mail when the statement is
available online.
111
Cardholder Responsibilities
  • Cardholders are responsible for selecting their
    valid accounting code information for each
    purchase via the U.S. Bank website, called Access
    Online System. https//access.usbank.com
  • The cardholder does not have to wait until the
    end of the billing cycle to allocate the purchase
    to the valid accounting codes.
  • This process should be done at least weekly. In
    order for cardholder purchases to be reported in
    MARADs accounting system (Delphi) in a timely
    manner, cardholders must allocate the purchase
    cost to the valid accounting code timely. This
    is the same accounting code reflected on the
    cardholders validated purchase request.

112
Cardholder Responsibilities
(continued)
  • If your transaction does not appear on your
    statement within 15 -30 days of your delivered
    purchase/service, you must then contact the
    merchant and request that the transaction be
    submitted to the U.S. Bank for payment.

113
Reconciliation and Allocation
  • During the month and no later than the 20th of
    each month, cardholders must allocate all their
    purchases on the billing cycle statement in the
    U.S. Bank Access Online System. If the 20th
    falls on a weekend you have the following
    business day to complete your allocations.
  • Allocate or either accept the default accounting
    code or select/input the accounting code for each
    purchase if different from that of the default
    accounting code. When allocating and approving
    the accounting codes in the U.S. Bank Access
    Online System the codes on each purchase must
    agree with the accounting code that appears on
    your validated PR.
  • In the case where your default accounting code is
    used and there is no change required, the
    cardholder accepts the default line of accounting
    in the U.S. Bank Access Online System.

114
Reconciliation and Allocation
(continued)
  • The cardholder is also required to insert the
    appropriate transaction number and/or document
    identification number in the comments section in
    Access Online.
  • Once you have completed the distribution of the
    valid accounting code in the US Bank Access
    Online System, you must forward all approved
    transacti
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