UNCLASSIFIED (U)

4 FAM 450

SPECIAL VOUCHER PROCESSES

(CT:FIN-457; 08-27-2019)
(Office of Origin: CGFS/FPRA/FP)

4 FAM 451 sCOPE AND PURPOSE

(CT:FIN-388; 03-18-2008)

This subchapter contains vouchering requirements for petty cash expenditures and usage and oversight of the U.S. Government-wide purchase card.

4 FAM 452 PETTY CASH EXPENDITURE (IMPREST FUND)

4 FAM 452.1 Vouchering Requirements

(CT:FIN-388; 03-18-2008)

a. This section provides vouchering requirements for processing petty cash expenditures. See 4 FAH-3 H-465 for submitting travel vouchers. See 4 FAH-3 H-390 for Cashier Operations.

b. Each petty cash expenditure must be supported by a receipt that may be in the form of an original bill, sales slip, cash register ticket, invoice, or other evidence of payment to the vendor, or by Form DS-4097, Receipt for Cash-Subvoucher, or equivalent receipt form itemizing articles or services purchased and amount. Such receipts must comply with the following:

(1) Receipts should be signed by the vendor whenever possible and must itemize all articles purchased or services received. If itemization cannot be noted on the receipt, the information must be placed on a subvoucher attached to the receipt;

(2) The officer receiving the goods and services approves each vendor receipt and acknowledges that goods have been received and accepted. The approving officer must write the amount of the receipt/acceptance in long-hand to preclude adjustments to receipts after the fact. Fiscal data must be inserted on the receipts;

(3) Settle all funds advances made to occasional money holders for petty cash purchases promptly. Advances should normally be held for 1 working day only or as authorized for overseas activities under 4 FAH-3 H-394.4;

(4) Attach subvouchers (Form DS-4097, Receipt for Cash) containing pertinent details, such as subvoucher number, description of goods purchased, and amount, to Form DS-7635, Cashier Reimbursement Voucher and/or Accountability Report (formerly OF-1129), to facilitate the review of purchases by the certifying officer. An adding machine tape must also be attached to the subvouchers. All invoices in local languages are translated for key words into English. Foreign currency payments must be shown in the monetary unit of the transaction; and

(5) When an additional certificate of the certifying officer is required, attach the annotated certification to the related receipted subvoucher.

c. Subvouchers must be numbered consecutively beginning with the number 1. Record the subvoucher numbers on the covering Form DS-7635 (e.g., Nos. 1-135, inclusive). Financial management officers should batch and attach the subvouchers in numerical order to the first copy of Form DS-7635. For each subvoucher, prepare a list that includes the number, date of payment, vendors name, amount, and goods or services purchased with type, period, rate, etc. Attach this list to the original and each copy of Form DS-7635.

d. A separate Form DS-7635 for petty cash expenditures must be prepared at least once every month during which payments are made, or more often, if required, by the FMO at posts. Form DS-7635 must be certified by the certifying officer and included in the USDOs accounts.

e. Each receipt, invoice, or subvoucher must indicate the appropriate accounting classification.

4 FAM 452.2 Replenishing Imprest Funds

(CT:FIN-432; 09-12-2013)

Cash funds may either be revolving-type funds or stationary or change-making funds. A revolving type fund must be replenished at least once at the end of each month, although it can be replenished more often if necessary. The recommended frequency is no less than once a week. Form DS-7635, Cashier Reimbursement Voucher and/or Accountability Report, is used to request replenishment. Number and attach subvouchers in numerical sequence, to Form DS-7635. Cashiers in domestic offices should send the vouchers to the Office of Claims (CGFS/F/C) for payment. Posts are to follow the instructions provided by the appropriate financial service center. Also see 4 FAH-3 H-394.2-11.

4 FAM 453 VOUCHERING OTHER U.S. Government AGENCIES EXPENSES

(CT:FIN-388; 03-18-2008)

When vouchering expenses for other U.S. Government agencies, overseas financial management officers should do the following:

(1) Prepare vouchers covering disbursements for other U.S. Government agencies in accordance with the requirements of those U.S. Government agencies. The vouchers should be sufficiently detailed to permit the agency to readily identify the expenditure;

(2) Each authorizing document or instruction received from another U.S. Government agency must show the appropriation chargeable and any necessary accounting data that the U.S. Government agency wishes shown on the vouchers. Vouchers must cite the authority (office memo, purchase order, telegram, contract, letter of credit, etc.) for the disbursement and include details and accounting data cited on the authority;

(3) Whenever possible, an official representative of the relevant vouchered U.S. Government agency should validate receipt/acceptance and approve and sign the voucher prior to payment;

(4) Department of State forms must be used when vouchering disbursements for other U.S. Government agencies; and

(5) Disbursement vouchers, voucher copies, and supporting documents must be submitted in accordance with the procedures provided by the appropriate financial service center.

4 FAM 454 VOUCHERING REFUNDS

(CT:FIN-432; 09-12-2013)

a. Form SF-1047, Public Voucher for Refunds (formerly DS-7622), is the appropriate form for the authorizing official to use for vouchering refunds.

b. The voucher should show the reason for the refund, authorization and request for the refund, as well as:

(1) The number under which the collection was made;

(2) The name of the USDO in whose account the collection was shown; and

(3) The time period of the account in which the collection was shown.

c. Payment of a refund must be made in the same currency and amount originally collected for the fee. The same rate of exchange of the collection will apply to the refund.

d. Charge the refund against the appropriation to which the fee was collected. For consular fees being charged to 190830, report the refund to Treasury as a negative collection.

e. As prescribed by 22 U.S.C. 4209, whenever any consular officer collects, or knowingly allows to be collected, any fee, other or greater than allowed by law, the consular officer is liable to pay, as a penalty, three times the amount of the unlawful charge collected. Necessary action will be determined in accordance with the provisions of 3 FAM 4000.

4 FAM 455 U.S. GOVERNMENT-WIDE PURCHASE CARD USAGE AND OVERSIGHT

4 FAM 455.1 Authorities

(CT:FIN-457; 08-27-2019)

The following policies and regulations provide guidance on the worldwide purchase card program, including unauthorized or improper use of the card, lost or stolen cards, account setup, account maintenance, and account cancellation procedures:

(1) The Federal Acquisition Regulation (FAR);

(2) The Department of State Acquisition Regulation (DOSAR) 48 CFR 613.307-70;

(3) Worldwide Purchase Card Program Manual; and

(4) FSI sponsored Purchase Card Training courses.

4 FAM 455.2 Definitions

(CT:FIN-457; 08-27-2019)

Approving official (AO): An individual established in the Purchase Card Management and Reporting System (PMARS) through a written e-delegation of authority with oversight responsibility for each cardholder under his or her purview.

Billing cycle: A specific recurring time period during which transactions may occur and between when statements of account and invoices are processed.

Billing cycle date: The closing or cut-off date for all transactions that occurred during that month. The Departments purchase card billing cycle date is the 28th of each month.

Bureau budget officer (BBO): An individual within the bureau who works with the cardholder regarding funding of the purchase card and is in the PMARS approval flow for establishing cardholder accounts. Similar to the DBO/FMO, the bureau budget officer is required to perform their duties related to proper funding and oversight of their bureau purchase cards.

Cardholder (CH): Federal employee responsible for using the government-wide purchase card in accordance with established policies and procurement regulations, maintaining a purchase card buying log, and reconciling the monthly statement of account. All cardholders must be established in PMARS through an e-delegation of authority memorandum.

Cardholder statement of account: A statement sent directly to the cardholder that includes all transactions made by an individual cardholder and any disputes in process and posted credits. The statement has no balance due and is used by the cardholder to reconcile monthly transactions against the buying log and supporting documentation. Cardholders must download the statement each month from the bank's EAS after the close of the billing cycle (28th of each month).

Citimanager: Citi's electronic access system where both cardholder and DBOs can access online statements, reports and perform other actions.

Designated billing office (DBO): An office responsible for paying and reconciling the monthly bureau or post invoice. Under the Department of State purchase card program, the DBO for domestic operations is the Bureau of the Comptroller and Global Financial Services (CGFS) in Charleston. Overseas, the DBO is normally the financial management officer (FMO), or in some cases, the management section at post.

Designated billing official: An individual established through an e-delegation of authority memorandum generated in PMARS and who is responsible for reconciliation and payment of the bank monthly invoice within prompt payment time frames. Under the Department's purchase card program, the DBO for domestic operations is CGFS Charleston. Overseas, the DBO is normally the financial management office or the management section at post.

Dispute: A disagreement between the cardholder and the supplier and the bank regarding items appearing on the cardholders monthly statement of account. Disputes must be filed within 90 days from the date that the dispute first appeared on the cardholder's statement of account. All disputes must be filed online or using the card providers dispute form.

Electronic access system (EAS): Bank's system used by purchase card participants and the program management office to access online statements, run reports, manage hierarchies, access online training, and other functionality related to management and administration of the purchase card program.

Key program administrator (KPA): Individuals in the Business Operations Division (A/OPE/AQM/BD) who administer the purchase card program in their assigned region on behalf of the bureau or post. KPAs serve as the bureau and post liaison with the bank provider.

Operations manager: An individual located in A/OPE/AQM/BD who is responsible for the day-to-day administrative oversight of the purchase card program. The operations manager works closely with the program manager in A/OPE/AQM/BD.

Program coordinator (PC): An individual appointed in the purchase card program through an e-delegation of authority memorandum generated in PMARS with responsibility for oversight of the bureau or post purchase card program including all activity of his or her cardholders, approving officials, and designated billing officials. Domestically, the PC is established at the bureau executive director level. Overseas, the PC is established at the post management officer level or equivalent.

Program manager: An individual in A/OPE/AQM/BD with overall management responsibility for the worldwide purchase card program, including strategic planning, development and implementation of purchase card policies, procedures, and training.

Purchase Card Management and Reporting System (PMARS): A web-based application that provides Department of State users worldwide with a single portal to accomplish purchase card related tasks and oversight.

Quality controller (QC): An individual responsible for assisting the bureau or post in overseeing the day-to-day administration of purchase card operations. The QC for A Bureau is located in A-IRM/EX/PAS. The QC role is optional for the bureau or post and once established, is in the PMARS approval flow.

4 FAM 455.3 Roles and Responsibilities of Purchase Card Participants

(CT:FIN-457; 08-27-2019)

a. Program coordinator (PC) responsibilities include but are not limited to the following:

(1) Completes all required training related to the purchase card program and uploads current training certificates into PMARS;

(2) Maintains PMARS account including validating profile every 90 days;

(3) Establishes bureau or post internal controls to ensure compliance with purchase card program policies, procedures, and regulations;

(4) Ensures all participants receive both initial and refresher training in accordance with A/OPE/AQM/BD policy requirements;

(5) Delegates authority through PMARS to participate in the program to cardholders, AOs, and DBOs/FMOs;

(6) Ensures all requirements are entered into Ariba prior to purchase;

(7) Reviews, approves, or disapproves PMARS requests;

(8) Ensures all cardholder accounts are properly closed and cards destroyed;

(9) If established, designates a backup/alternate approver in PMARS when out of the office;

(10) Ensures approving official annual reviews are completed in a timely manner in accordance with policy;

(11) Certifies the mandatory annual review in PMARS with the assistance of the AOs. As part of this process, monitors vacancies and all participant training status; and

(12) Upon rotation to their next bureau or post of assignment, completes PMARS account setup process.

b. Approving official (AO) responsibilities include but are not limited to the following:

(1) Completes all required training related to program and uploads current training certificates into PMARS;

(2) Maintains PMARS account including validating profile every 90 days;

(3) Ensures all cardholders receive both initial and refresher training in accordance with A/OPE/AQM/BD policy requirements;

(4) Ensures all cardholder requirements are entered into Ariba prior to purchase;

(5) Approves each cardholder request in Ariba prior to the cardholder making a purchase;

(6) Reviews, approves, or disapproves cardholder PMARS requests;

(7) Ensures adequate funding and controls are in place to prevent misuse and abuse;

(8) Reviews and approves the monthly cardholder statements of account and supporting documentation as part of the reconciliation process;

(9) Assists the PC with oversight reviews, including the bureau or post annual review;

(10) Assists the cardholder in resolving disputes;

(11) Reports all purchase card misuse and abuse immediately to the PC;

(12) Ensures all cardholders perform timely reconciliations;

(13) If a cardholder is away for an extended period, reconciles the cardholder's account in their absence;

(14) Ensures all cardholder accounts are properly closed in PMARS prior to departure or if no longer needed and all cards are destroyed;

(15) Completes the PMARS annual review including cardholder checklists and the summary of findings in accordance with policy;

(16) If established, designates a backup/alternate approver in PMARS when out of the office; and

(17) Upon rotation to their next bureau or post of assignment, completes PMARS account setup process.

c. Cardholder (CH) responsibilities include but are not limited to the following:

(1) Completes all required training related to program and uploads current training certificates into PMARS;

(2) Maintains PMARS account including validating profile every 90 days;

(3) Signs card upon receipt and activates purchase card;

(4) Registers in Citimanager for online statements;

(5) Ensures each requirement is for official Government use only. The purchase card must never be used for personal use;

(6) Immediately reports a lost or stolen card to Citi and to the cardholder's approving official;

(7) Reviews all purchase card procurement requests for completeness including appropriate approvals, accuracy, and compliance with all Federal regulations, policies, and procedures;

(8) Ensures all purchase card requirements, regardless of the amount, are entered and processed in Ariba prior to purchase;

(9) Maintains accurate and complete records of all purchase card transactions including price quotes, a purchase card buying log, receipts, and an accurate balance of funds. Note that Ariba can be used to generate the purchase card buying log report to facilitate the monthly reconciliation process;

(10) If using bulk funding, maintains a declining balance of funds in the buying log;

(11) Reconciles the monthly cardholder statement of account within 5 business days from availability of the statement online;

(12) Sends a copy of the reconciled statement and any dispute forms, if applicable, to Charleston within no later than 10 business days from statement of availability online;

(13) Attempts to resolve any discrepancy directly with the vendor prior to disputing a transaction;

(14) If unable to resolve the discrepancy, files a formal dispute with Citi within 90 days from the date the transaction first posts to the cardholder's account;

(15) Safeguards purchase card and all related account information. When not in use, keeps purchase cards and account related information in a safe or in a secured area;

(16) Promptly returns any request that is unauthorized, lacks sufficient funding or does not comply with regulation or policy to the requesting office;

(17) Seeks clarification on incomplete requests;

(18) Arranges with the approving official to reconcile his or her monthly statement of account during periods of extended absence from the office;

(19) Closes account in PMARS if the card is no longer needed or prior to departure;

(20) Purchases in accordance with the "7 Steps in the Buying Process" as described in the Purchase Card Manual;

(21) Complies with all Small Business requirements as identified in the FAR and other policies; and

(22) If authorized to make a purchase over the micro-purchase threshold, complies with all Department policy and regulations including obtaining competition, completing an eFile in Ariba, validating contractor responsibility through the System for Award Management, reporting required information to the Federal Procurement Data System - Next Generation, etc.

d. Designated billing official (DBO) responsibilities include but are not limited to the following:

(1) Completes all required training related to program and uploads current training certificates into PMARS;

(2) Maintains PMARS account including validating profile every 90 days;

(3) Ensures that adequate funding is set aside for cardholder purchases;

(4) Downloads the official invoice from Citi's landing page within two business days after the 28th of each month;

(5) Reconciles the official aggregate post invoice with individual cardholder statements and supporting documentation;

(6) Certifies the invoice and approves for payment either upon receipt or within 30 days in accordance with the Prompt Payment Act. Failure to reconcile accounts in a timely manner affects cardholder account status and could jeopardize the bureau or post purchase card program;

(7) Monitors all transactions disputed by the cardholder on future invoices, in coordination with the cardholder;

(8) Obtains necessary information from the cardholder if a charge is questionable or if additional supporting documentation is needed to reconcile the monthly invoice;

(9) If established, designates a backup/alternate approver in PMARS when out of the office; and

(10) Upon rotation to their next bureau or post of assignment, completes PMARS account setup process.

e. Bureau budget officer (BBO) responsibilities include but are not limited to the following:

(1) Assigns the master accounting codes in PMARS for new cardholder account setups;

(2) Adds any updates to the master accounting codes to PMARS cardholder account maintenance actions as needed;

(3) Ensures funding is setup in GFMS for each cardholder account; and

(4) De-obligates funds on closed cardholder accounts as needed.

f. Quality controller (QC) responsibilities include but are not limited to the following:

(1) Monitors PMARS requests for accuracy and completeness;

(2) Provides assistance to purchase card program participants;

(3) Ensures participants complete mandatory requirements;

(4) Assists with coordination and oversight of the annual review process to ensure reviews are completed in a timely manner; and

(5) Provides other assistance as needed on the program.

4 FAM 455.4 Reconciliation and Approval of Cardholder Statement of Account

(CT:FIN-457; 08-27-2019)

a. Two days after the close of the billing cycle, the cardholder must download the monthly statement of account (28th of each month) from the bank's electronic access system (EAS). During this same time period, the DBO (FMO) must download the summary invoice. The cardholder is responsible for reconciling the monthly statement of account with his or her buying log and all supporting documentation within 5 business days from availability of the cardholder statement online.

b. The steps the cardholder follows to complete the reconciliation process include:

(1) Cardholder (CH) downloads the monthly statement of account from the bank's EAS (Citimanager);

(2) CH pulls all supporting documentation;

(3) CH reconciles statement of account with buying log and supporting documentation;

(4) CH resolves any questionable charges with vendor (if unresolved, files dispute and annotates statement);

(5) CH signs and dates statement and forwards reconciled statement, buying log, and any supporting documentation including any dispute forms if applicable to his or her approving official (AO) within 5 business days once reconciled;

(6) AO reviews, approves, and signs CH statement within 3 business days and provides back to CH; and

(7) CH forwards reconciled statement to designated billing office DBO (CGFS for domestic operations and post FMO for overseas operations) within no later than 10 business days from availability of the statement online from the bank provider.

Note: If using purchase card reconciliation (PCR), the cardholder follows the steps below for reconciliation:

PCR is a solution within Ariba that integrates with the eInvoicing module to provide cardholders and approving officials with a simplified, efficient way of reconciling purchase card transactions with the buying log and supporting documentation. The transactions are pulled from Citi on a daily basis and added to the cardholder's inbox for reconciliation. PCR is currently only available to overseas CHs only until such time as it is rolled out to domestic cardholders. Steps in the PCR process include:

(1) Bank transactions appear daily in CHs "inbox";

(2) CH matches the bank transactions with the PRs in Ariba and approves matched/reconciled transactions;

(3) AOs receive the matched/reconciled transactions from CH and approve;

(4) Once the AO approves the reconciled transactions, they are routed to the DBO (FMO/Voucher Examiner) for final review in eInvoicing; and

(5) DBO approves the transactions and they are submitted for payment.

c. Cardholder follows up on any disputes and provides a copy of the dispute documentation to the DBO. Throughout the process, the CH coordinates closely with the DBO until the dispute is resolved.

4 FAM 455.5 Statement Approval and Certification

(CT:FIN-457; 08-27-2019)

The approving official, upon receipt of the reconciled statement from the cardholder, promptly reviews the statement by:

(1) Confirming that all cardholder requirements were entered in Ariba;

(2) Verifying that the purchases listed on the statement were authorized, obligated, and made in compliance with procurement policies and procedures, including best-value determination;

(3) Confirming that the statement was properly reconciled with the cardholders purchases and that the cardholders documentation supports each purchase;

(4) Assuring that proper fiscal data was obligated for each purchase;

(5) Signing and dating the cardholder statement to indicate approval; and

(6) Ensuring that the cardholder forwards the reconciled statement to the DBO no later than 10 business days from the availability of the statement online.

Note: If using PCR, the CH and the AO follow the required steps within PCR for proper review and approval of the cardholder monthly statement.

4 FAM 455.6 Prompt Payment Requirement

4 FAM 455.6-1 Payment of Official Bureau or Post Invoice by the DBO

(CT:FIN-440; 04-21-2016)

a. Two days after the close of each billing cycle, the designated billing office (DBO) is responsible for:

(1) Downloading the official invoice;

(2) Reconciling the invoice with cardholder statements and supporting documentation, as necessary;

(3) Working with cardholder to ensure all disputes are properly tracked and resolved; and

(4) Paying the invoice in full.

b. The Department is authorized to pay the contractor (bank provider) the monthly invoice amount upon receipt but no later than the timeframes identified in the Prompt Payment Act. For payment purposes under the Department of State purchase card program, CGFS Charleston is the DBO for domestic operations, and the post FMO is the DBO for overseas operations.

4 FAM 455.6-2 Penalties and Interest (Domestic Operations)

(CT:FIN-457; 08-27-2019)

For domestic purchase cards, any Prompt Pay penalties and interest incurred will be charged to the approving officials accounting code when:

(1) A cardholder statement is not forwarded to CGFS/F/C for timely payment to the contractor (bank provider); or

(2) The obligated funds are not sufficient for payment, thus delaying timely payment of the invoice by CGFS/F/C.

4 FAM 455.6-3 Payment Method

(CT:FIN-440; 04-21-2016)

a. CGFS/F/C certifies payment to the contractor (bank provider) for domestic purchase card activity according to the payment method specified in the contract. Payment by electronic funds transfer is mandated.

b. The post FMO must certify the monthly invoice for overseas purchase card activity. Payment is made by the Global Financial Services Center in either Charleston or Bangkok.

4 FAM 455.6-4 Payment Address

(CT:FIN-440; 04-21-2016)

All payments must be made directly to the contractors (bank provider's) financial institution, as provided by the contractor.

4 FAM 455.7 Other DBO Responsibilities

4 FAM 455.7-1 Domestic Liquidation of Obligation

(CT:FIN-432; 09-12-2013)

For domestic purchase cards, CGFS/F/C enters the statement transactions into the accounting system. The payment data entered from the bank providers monthly invoice should liquidate the previously recorded obligations by allotment number and object class.

4 FAM 455.7-2 Monthly Reports

(CT:FIN-457; 08-27-2019)

The Departments bank card provider makes monthly bank reports available online to program participants detailing charge-card activity and other related purchase card program information. It is the responsibility of the DBO to review any bank-provider information as part of the reconciliation process to verify its accuracy against internal reports and supporting documentation.

4 FAM 455.8 Dispute Resolution Process

(CT:FIN-457; 08-27-2019)

a. Reasons for disputing a transaction may vary from dissatisfaction with the supplies or services provided, to non-recognition of the reported merchant or charge. In all cases, the first course of action is for the cardholder to attempt to resolve the dispute directly with the vendor.

b. If attempts to resolve the dispute with the vendor have not been successful, or if attempts to contact the vendor are not possible (vendor is not recognized, contact information is not available, etc.), the cardholder must follow the dispute process and dispute any questionable transaction either by phone, fax, or online.

c. In the case of fraud, in addition to completing a bank dispute form, the cardholder must also complete a declaration of unauthorized use form and submit it to the bank provider in a timely manner. If disputing online, the CH should follow the instructions provided online for disputing.

d. The cardholder is responsible for tracking the dispute on future statements until resolved in collaboration with the DBO. Copies of dispute forms and the declaration of unauthorized use form, if applicable, must be provided to the DBO.

e. The cardholder should retain a copy of the dispute form and related documentation in the purchase card file; and

f. Address questions related to the dispute process to Citibank Customer Service (see Worldwide Purchase Card Program Manual, Section XI).

4 FAM 455.9 Missed Deadlines for Financial Accounting

4 FAM 455.9-1 Late Monthly Reconciliation by the Cardholder or Approving Official

(CT:FIN-440; 04-21-2016)

a. Use of a card without the proper obligation of funds in advance or repeated occurrences of not reconciling monthly statements for payment within the procedures or established timeframes set forth in purchase card policies guidance will constitute justification for withdrawal of the card, loss of authorization of an approving official, or loss of delegation of authority to purchase using such cards by a bureau or post.

b. For domestic operations, CGFS/F/C will notify the bureau or post program coordinator of repeated missed deadlines for funds obligation or late submission of reconciled statements. For overseas operations, the post FMO must notify the program coordinator of repeated late submission of reconciled statements by post cardholders.

4 FAM 455.9-2 Reporting Improper Use of Card

(CT:FIN-457; 08-27-2019)

a. The purchase card and related card products are strictly for official use only and can only be used by the authorized cardholder. Any intentional use of the purchase card for other than official U.S. Government transactions constitutes misuse and, depending on the facts, may involve fraud. Examples of misuse include:

(1) Purchases for personal consumption;

(2) Purchases for which there is insufficient or no funding;

(3) Purchases which exceed the cardholder's spending limits;

(4) Purchases which are not authorized by the agency;

(5) Purchases which do not comply with Federal Acquisition Regulation (FAR) and/or other applicable procurement statutes and regulations and/or Department of State policies and procedures; and

(6) Purchases that are billed by the merchant, but are never received by the agency.

b. Depending on the nature of the misuse or abuse, the cardholder, or anyone who directs the cardholder to make an improper or fraudulent purchase, may be subject to certain consequences including:

(1) Counseling;

(2) Suspension of cardholder privileges;

(3) Cancellation of purchase card and/or related card products;

(4) Notation in employee's performance evaluation or file;

(5) Reprimand, suspension or termination of employment; or

(6) Criminal prosecution.

c. Improper use of a card must be reported, preferably in writing, to the cardholders approving official, the bureau or post program coordinator, and the key program administrator, the operations manager and program manager in A/OPE/AQM/BD as soon as identified. For domestic operations, CGFS/F/C will notify the bureau or post program coordinator of repeated missed deadlines for funds obligation or late submission of reconciled statements. For overseas operations, the post FMO must notify the program coordinator of repeated late submission of reconciled statements by post cardholders.

4 FAM 455.9-3 IRS Reporting for Form 1099-MISC (Miscellaneous Income) Eligible Vendors

(CT:FIN-440; 04-21-2016)

a. The purchase card program contractor (bank provider) will track all payments made to merchants participating in the purchase card program and receipt of payment during the tax year and provides a list of Merchant-by-Merchant Category Codes (MCC), mailing addresses, Taxpayers Identification Number (TIN), and amount paid. The merchant payment data is available on the contractors Internet site for downloading and review for reporting to the Internal Revenue Service.

b. CGFS/F/C reviews, consolidates, and provides Form 1099-MISC to eligible merchants not later than the January 31 reporting deadline. CGFS/F/C forwards all requests to change payment data to the contractor to validate the payment amount before preparing a corrected Form 1099-MISC. Based on the contractor-validated payment data, CGFS/F/C prepares and issues a corrected Form 1099-MISC for the merchant.

4 FAM 456 through 459 unassigned

 

 

UNCLASSIFIED (U)