1. Government Purchase Card Program Account Holder Training
U.S. Army MEDCOM Health Care Acquisition Activity
Great Plains Regional Contracting Office
Brooke Army Medical Center, Fort Sam Houston, TX
Government Purchase Card Program
Account Holder Training

2. Training Outline 2 Authority Structure DOD Charge Card Program
Purchase Card Program
Management Controls & Expectations
Regulatory Authority
Key Players & Responsibilities
Definitions
Authorized Use & Limitations
Required Sources
Pre Purchase Approvals
Prohibited Items
Purchasing Process
Waivers/Clearances
Account Reconciliation
Records
Access Online
Establishing Accounts
Account Security
Liability

3. Authority Structure 3 Army MEDCOM / Health Care Acquisition Activity
GPRMC GPRCO
1 Brooke Army Medical Center
2 Carl R. Darnall Army Medical Center
3 William Beaumont Medical Center
4 Raymond W. Bliss Army Health Center
5 Evans Army Community Hospital
6 Irwin Army Community Hospital
7 Munson Army Health Center
8 General Leonard Wood Army Medical Center
9 Reynolds Army Community Hospital
10 Bayne-Jones Army Community Hospital 1 2 3 4 5 6 7 8 9 10

4. DOD Charge Card Programs
Contract & Administration by GSA
Includes:
Purchase Card
Supplies and services
Travel Card
Lodging, car rental, meals, cash advances,
but not registration fees.
Fuel Card
Maintenance & Repair of Government Vehicles
to include Fuel and Oil.
DOD Charge Card Programs 4

5. Formerly known as “IMPAC”
The Government Purchase Card 5 2
NOTE: Bank trademark
Formerly known as “IMPAC”

6. Purchase Card Program 6
$143M
$122M
$116M
$102M
$87M

7. Benefits of the Purchase Card Program7
The government saves time, money and resources.
The purchase charge card program provides the
government with financial and cash management
control over low dollar value, high volume procurements.
With the streamlined purchasing power to the lowest user
end level comes great responsibility.
“Guardians of the Public Trust”

8. Management Controls and Expectations8
Tools and activities used to identify, correct and prevent fraud,
waste and abuse:
Support from higher levels
An expectation of high integrity and ethical behavior
Audits and risk assessments to identify fraud, waste and abuse
Controls in place to reasonably ensue losses are minimized
Proper training and reporting to ensure personnel have proper
skills, knowledge, and information
Adequate management oversight

9. Regulatory Authority 9 Federal Acquisition Regulation (FAR) Part 8 &13
Defense Federal Acquisition Regulation Supplement
(DFARS) Part
Army Federal Acquisition Regulation Supplement
(AFARS) Part 13
DOD Government Charge Card Guidebook for
Establishing and Managing Purchase, Travel and Fuel Card
Programs, 19 August 2008
Army Regulation 715-XX, Revised 2 May 2007
GPRCO SOP, currently being revised
Many Others

10. Keyplayers and Responsibilities10
Refer to DOD Guidebook, Appendix A
Outlines each key-players’ role and special emphasis items
Contract Specialist designated to manage
the day-to-day operation
Implementing and administering the program
Establishing policy and guidance
Conduct training
Conduct oversight
Liaison between organization, bank, DFAS and
other regional and Army/MEDCOM activities
Agency Program Coordinator:

11. Keyplayers and Responsibilities11
Billing Officials/Certifying Officials:
Administration of cardholder accounts
Certifying officer – financially responsible
Purchase approvals
funds accountability
property accountability
invoice certification
Oversight
Cardholders:
Making authorized transactions
Collecting and maintaining required documentation
Logging and reconciling transactions
Trained
Card security
Reporting questionable transactions

12. Keyplayers and Responsibilities12
Financial Managers:
Provide appropriate funding for accounts
Maintain accurate financial records
Fulfill financial management reporting requirements
Supervisors/Senior Leadership:
Oversee and support program
Promote high integrity and ethical behavior
Conduct risk assessments periodically and
ensure management controls are implemented

13. Keyplayers and Responsibilities13
Defense Finance and Accounting Service:
Disburse payment
Control valid appropriation data
Establish electronic interface
Ensure timely processing of disbursements and
rejects
Ensure adherence to the provisions of the Prompt
Payment Act

14. Keyplayers and Responsibilities14
Others:
Audit/Investigative agencies (IR, IG, CID, FBI, etc.)
Office of the Under Secretary of Defense (Acquisition,
Technology and Logistics)
Office of the Under Secretary of Defense (Comptroller)
Office of the Under Secretary of Defense (Personnel
and Readiness)
Army Contracting Agency
Medical Command Health Care Acquisition Activity)

15. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z Definitions 15
See Handout

16. Authorized Use & Limitations16
Make micro- purchases
$3,000 = Supplies
$2,500 = Services
$2,000 = Construction
Place a task or delivery order
Basic contract in place
BPA
Make payments
Formal contract in place and exceeds micro –
purchase thresholds

17. Definition of a “Split Requirement?”17
Split Purchase: Separating a requirement that exceeds a CH’s
single purchase limit or threshold into two or more buys as a means
of getting around the CH’s purchase limit. No government purchase
CH may fragment/split purchases that exceed the CH’s limit or
threshold, as a means to use the purchase card. To do so is a
violation of federal procurement law.

18. What is a “Split Requirement?”18
Avoid "Splitting the Requirement"
It might seem logical for you to divide a purchase into parts
so each purchase would then be below your agency limits.
It is NEVER permissible to intentionally divide purchases into
parts just to get under your limits. This is called "splitting the
requirement." When you have a defined need, all the parts of
that need are considered one purchase

19. Required Sources of Supply19
Sources of Supplies Include:
Agency inventories
Excess from other agencies
Supplies which are on the Procurement List maintained by the
Committee for Purchase From People Who Are Blind or Severly
Disabled
Wholesale supply sources (GSA, DLA, VA)
Federal Supply Schedules
Army BPAs for offices supplies (EMall)

20. Required Sources of Supply20
Services Sources Include:
Supplies which are on the Procurement List maintained by the
Committee for Purchase From People Who Are Blind or Severly
Disabled
Federal Supply Schedules
Federal Prison Industries, Inc.

21. Items That Require Pre-Purchase Approvals21
Printing
Printing purchases must be through the Defense Automated
Product Service (DAPS)
Hazardous material
Advertising
Video information
Information technology
Equipment and material
Ergonomic-related and low vision equipment
Travel related purchases
Short term rental or lease of land and buildings
Wood packaging material

22. Medical Supplies 22 Can only be purchased by Logistics
AR 40-61: Cardholders are not authorized to bypass the
Installation Medical Supply Activity (IMSA) for Class VIII
medical expendable/durable supplies or equipment.
POC is Ms. Debra Thompson, Logistics Area Manager (LAM), at

23. Fiscal Law Issues 23 Appropriated Funds - Frequently categories
Food and refreshments
Personal purchases
Memberships
Greeting cards and decorations
Cellular Phones and Pagers
Bottled water services
Motor vehicles, long-term rental or lease
Trophies, gifts, awards, plaques, and mementos as give-away times
for hails, farewells, and other occasions
Business cards
Clothing

24. Prohibited Items 24 Cash advances Long-term lease of land and
buildings
Aircraft fuel
Repair of leased GSA vehicles
Telecommunication systems
Construction services over
$2,000
Wire transfers
Savings bonds
Foreign currency
Dating and escort services
Betting, casino gaming chips and
off-track betting
Transactions with political
organizations
Court costs, alimony, and
child support
Fines
Bail and bond payments
Tax payments

25. Required Source Determination25
When mandated sources can not meet your requirement:
Item is not available (out of stock).
Item is not what is required.
Quantity of issue is not adequate.
Item can not be delivered within 30 days.
Price is cheaper elsewhere (significantly).
Document the reason for bypassing mandatory sources and
obtain waiver/clearance as required.
Your documentation must pass the scrutiny of an audit.

26. The Purchasing Process26
Plan your monthly purchases
Ensure availability of funds
Conduct market research
Select best value
Seek State Tax Exemption
Talk to merchants
Determine dollar limits
Exceeding your dollar limit
Select a required source
Shop smarter

27. Market Research and Best Value27
Micro-purchases are not required to be set-aside for small
businesses.
Competition is not required, provided the price paid is
determined to be fair & reasonable.
Purchases are distributed among qualified suppliers.

28. Determining Fair and Reasonable Price28
Adequate Price Competition
Catalog Prices
Government Estimate
Previous Price Paid

29. Waivers and Clearances29
A waiver/clearance is required if:
A current contract/warranty exists (copy service, custodial services, etc.
Contact local IMD Help Desk (BAMC at ) for copy service information.
The purchase is for Automated Data Processing Equipment (ADPE)
BAMC Contact
The purchase is for Hazardous Material (HAZMAT)
BAMC Contact
The purchase is for Construction (including safety/fire/historical issues)
BAMC Contact
The purchase is for Training Support Equipment (TV, VCRs, Projectors)
BAMC Contact
Accountable property
Hand Receipt Manager
Property Book Officer
Acquisition Team
Contact
** Don’t forget to document file with waiver/clearance approval

30. Account Reconciliation30
Cardholder:
Reconciles all transactions electronically in Access Online
Print Account Statement from Access Online
Attaches receipts (packing slip and register slips) to Account
Statement
Identifies any transaction in dispute
Keeps copies of CSQI (Questioned Items)
Maintains own files of purchase activity

31. Approving and Certifying31
Cardholder:
All charges will be reconciled (approved) or disputed in ACCESS
Cardholders have 60 days from the date of the first listing of the
transaction to dispute with the bank
Fraudulent charges (stolen card situations, etc.) are reported
to Fraud Department ( ) and APC
Do not complete CSQI when transaction is reporting fraud

32. Avoiding Delinquent Accounts32
Must certify within 5 working day of the end of the billing cycle
CH = 3 days
BO = 2 days
Currently monitoring all accounts due to command visibility
Interest is assessed against the Billing Official’s unpaid balance
IAW AR 715-XX:
Accounts that are 61 days delinquent will be temporarily
suspended by the bank
No card transactions will be authorized until the account is
paid in full with interest

33. Disputed Transactions33
Cardholder should resolve with vendor quickly
Without resolution, CSQI to Bank (within 60 days)
Click the Dispute button in Access Online
Selected situations: Click Dispute button if:
Defective items already charged to your account
Unauthorized charges (someone other than the cardholder
using the card or additional supplies ordered)
“Billed but not received” on next billing cycle
Review status of existing Disputed Transactions
Statement must be paid in full

34. Records 34 * Must be maintained for 6 years,
3 months after final payment of invoice
Purchase Card Files

35. Access On - Line 35 https://wbt.access.usbank.com
Passwords are in effect through 6 April 2009
Government cardholder: seattle
Government AO/BO: puget
Government Financial Manager: whale
Organization short name: army
“Lesson Only Logon” or “Register A New Account”
If you require assistance, call the bank’s Customer Service Center at

36. Establishing Billing Official Account36
Memo processed thru budget office requesting an
individual be appointed as an Approving Official (application)
Budget office will coordinate on application and include funding info
Individual must complete mandatory DAU CLG 0001 training, fiscal
law training and classroom training provided by GPRCO APC –
training certificates are required
DD Form 577, Appointment/Termination Record –Authorized
Signature, must be included
Application package delivered to APC for processing
APC will set up account in bank system, provide appointment letter
and await budget office on line processing
APC final approves account and releases userid/password
BO Span of Control can not exceed 7 Cardholders

37. Establishing Cardholder Account37
Memo processed thru budget office requesting an individual be
appointed as an Cardholder (application)
Budget office will coordinate on application and include funding info
Individual must complete mandatory DAU CLG 001training and
classroom training provided by GPRCO APC – training certificates
are required
Application package delivered to APC for processing
APC will set up account in bank system, provide delegation letter,
await budget office on line processing
APC final approves account and requests bank release card
Cardholder receives and activates card AND must self register for
userid and password

38. Account Limits 38
Monthly BO limit = Total dollar limit to cover all CHs
under managing account
Monthly CH limit = Total dollar limit for each CH
Single Purchase limit for CH = Total dollar limit per transaction
All limits approved and set by budget officer/resource manager
Monthly cycle runs from the 20th of the month through the
19th of the following month.

39. CH Account Limits - Example 39
Monthly Limit = $10,000
First Month’s Transactions:
$2500
$600
$400
Bill is received & lists the following transactions:
($2500 charge pending )
Next Month - Monthly Limit available is $7500.
$10,000
-$2,500
$7,500

40. Account Security 40 Secure card at all times
Secure account numbers at all times
If card is lost, stolen or account numbers are compromised,
immediately contact US Bank at
Report to Approving Official and APC next working day & write a
memorandum of record for your files (provide a copy to APC)
Good business practices:
Precaution when providing credit card # by fax or internet
Do not provide copies of card to vendor
Advise vendors to NOT annotate account number on packing slips,
delivery tickets, etc.
Black out card numbers on paperwork transmitted to others

41. Liability 41 Use of the GPC by an authorized Cardholder to make an
unauthorized purchase is the liability of Government
However, the organization is responsible for taking
appropriate action against CH and BO as necessary
Any misuse of the GPC is subject to criminal, civil, Uniform Code
of Military Justice, administrative, and disciplinary actions as
appropriate

42. Program Integrity 42
Management controls are in place to guard against improper,
fraudulent, or abusive use of the purchase card
Purchase card misuse, or fraud, has consequences
Counseling
Cancellation of purchase card account
Notation in employee performance evaluation
Reprimand
Suspension of employment
Termination of employment
Criminal prosecution

43. Unauthorized Commitment43
An agreement or purchase that is not binding solely because the
Government representative who made it lacked the authority to enter
into that agreement on behalf of the Government
Unauthorized commitments must be ratified. Ratification is the act
of approving an unauthorized commitment by an official who has the
authority to do so
Less than or equal to $10,000 = Regional Contracting Office Chief
Less than or equal to $100,000 = Principal Assistant Responsible
for Contracting (PARC)
Exceeding $100,000 = Head of Contracting Agency
Federal Acquisition Regulation (FAR) 1.602
Army Federal Acquisition Regulation Supplement
(AFARS)

44. Unauthorized Commitment44
Authority
Actual
Expressed
Implied
Apparent
Avoid presenting appearance of authority that is not granted
Only two people can obligate the government:
A warranted Contracting Officer
Duly appointed credit card holder or ordering officer within the
scope of appointment
Federal Acquisition Regulation (FAR) 1.602
Army Federal Acquisition Regulation Supplement
(AFARS)

45. Unauthorized Commitment45
CHs not staying within delegated authority (limits and authorized use)
Emergency purchase procedures were not followed or individual is
not aware of the procedures
Vendor mistakes a request for info or estimate as an actual order
An activity approves supplies or services above the scope of an
existing contract or continues to receive supplies or services after the
expiration date of the contract
DO NOT use the GPC to “clean up” an Unauthorized Commitment
Federal Acquisition Regulation (FAR) 1.602
Army Federal Acquisition Regulation Supplement
(AFARS)

46. Ethics 46 Foundation “Fair and Impartial”
Public expectation of fairness and impartiality
Absence of conflict of interest
Avoiding conflict and improper influence
U18 U.S.C. 208 – The Conflict Statue
A criminal statue
May not participate personally and substantially in matters such
as the government credit card transactions in which you, your
spouse, minor child, partner, organization in which you are an
officer or employee, or company with whom you are negotiating
for employment---has a financial interest
Federal Acquisition Regulation (FAR) 1.602
Army Federal Acquisition Regulation Supplement
(AFARS)

47. Basic things to remember
Ethics 47
Basic things to remember
Avoid conflict of interest
Avoid the appearance of conflict of interest
Do not split requirements
Rotate sources of supplies and services
No personal use
Annual ethics training
Appropriation laws are strictly enforced
“If it is not prohibited, it must be ok” – NO!
Administrative and criminal penalties apply
Federal Acquisition Regulation (FAR) 1.602
Army Federal Acquisition Regulation Supplement
(AFARS)

48. Account Application Process48
IMPORTANT
2 – 3 week process
All accounts must have BO and ALT BO in place
Bank system and human processing
or Fax directly to GPRCO GPC Program Office
Complete application package
Application form with RM coordination
Training certificates (classroom, fiscal law & DAU certificates)
DD577 if BO or Alt BO
New or Replacing an existing BO
Appointment Letter or Letter of Delegation of Procurement Authority
Must sign and return copy or process halted
Userid/Password
BO Alt BOs = Contracting will provide
CHs = self registration

49. Account Maintenance 49 IMPORTANT
Billing Officials and Alternate Billing Official are responsible for the account
Coordinations and Requests
Dollar changes on accounts must have Budget approval
Codes, address changes
Notification of CH, BO or Alt BO leaving
30 to 45 PRIOR to leaving
Replacements vs New Accounts
Ensure supporting documentation is present for all transactions
Report weaknesses or unauthorized purchases
Maintaining the integrity of the program

50. Mandatory Fiscal Law Training50
IMPORTANT
Reference: Memorandum from Office of the Assistant Secretary of
the Army, Financial, Management and Comptroller Memo, Fiscal
Law Training, 7 Feb 2008
Approving/Billing Officials Only
Under Section 2-18 DoD Procedures Manual Chapter 2,
Paragraph 8
All designating Approving/Billing Officials MUST be
complete fiscal law training.
Certifications of purchase-card billing statements are
certifications of propriety and correctness for payment
Federal Acquisition Regulation (FAR) 1.602
Army Federal Acquisition Regulation Supplement
(AFARS)

51. Mandatory Fiscal Law Training51
Course is available at:
BOs to take training at Air Force Portal
POC for this requirement is your resource manager or budget officer
Federal Acquisition Regulation (FAR) 1.602
Army Federal Acquisition Regulation Supplement
(AFARS)

52. Questions and Answers 52

53. SmartPay 1 to SmartPay 2 Transition53
New functionalities, enhanced functionalities
24 /7 Customer Service
Tax Reclamation
Enhanced System Security
Enhanced Data Capture (strategic sourcing, risk mitigation, reports
Cardholders activate SP2 cards upon receipt
Preparatory work implemented now
Down time (in account set ups and maintenance)
U.S. Bank maintains contract – same service provider

54. Assistance is a call or email away! 54
US Bank Customer Service :
US Bank Fraud Department:

55. Assistance is a call or email away! 55
Agency Program Coordinators:
Mr. Todd Reddic: (210)
Ms. Annie Casanova: (210)
Ms. Nora Lopez: (210)
FAX APPLICATION PACKAGES TO: (210) or (210)

56. Agency Program Coordinators – Workload Alignment 56
Mr. Todd Reddic: Fort Sam Houston (HQ MC/Others)
Fort Bliss
Fort Carson
Fort Huachuca
Ms. Annie Casanova: Brooke Army Medical Center
Fort Polk
Fort Sill
Ms. Nora Lopez: Fort Hood
Fort Sam Houston (AMEDD C&S)
Fort Leavenworth
Fort Leonard Wood
Fort Riley

57. Our Ultimate Customer 57