Government Purchase Card: Buying tool subject to abuse, misuse Published Oct. 8, 2008 By 81st Comptroller Squadron KEESLER AIR FORCE BASE, MISS. -- The Government Purchase Card is a highly effective program that significantly reduces the acquisition timeline, but is subject to abuse and/or misuse if not properly governed. The GPC provides federal agencies with an effective and efficient tool for satisfying small, routine requirements. Across the federal government, the administrative savings alone are estimated to be $1.3 billion per year. This figure is based on a study which concluded $53.77 in savings is achieved each time a purchase card is used in lieu of a written purchase order. Use of the GPC is also convenient for merchants because they are typically paid within 48 hours of submitting the transaction to the card network. Use of the GPC is "big business" for the Department of Defense. For fiscal year 2007 in the Air Force alone, almost 40,000 card holders accounted for more than 4.2 million transactions, spending nearly $1.6 billion. Keesler's 283 card holders contributed to more than 33,000 of those transactions and $14.3 million. A report by the Government Accountability Office published in March 2008, however, noted instances of misuse of the GPC program. In its findings, the GAO estimated a 15 percent failure rate in appropriate authorization to make the purchase and a 34 percent failure rate to adhere to independent receipt and verification. Examples of misuse include purchases exceeding the cardholder's limit, purchases not authorized by the agency, purchases for which there is no funding, purchases for personal consumption, purchases which do not comply with Federal Acquisition Regulation and/or other procurement statutes and regulations and purchases billed by the merchant but never received by the agency. Failure to achieve independent receipt and verification occurs when a sensitive or pilferable item, or any item exceeding a $500 value, is received by the GPC cardholder. These items should be signed for by an individual in the unit who is not responsible for initiating or authorizing the purchase. Purchase card misuse or fraud could have damaging effects on an individual's career -- namely counseling, reprimand, notation in perfor-mance evaluations, or criminal or non-judicial punishment, depending on the severity of the offense. In addition, misuse could result in suspension or termination of the offending unit's GPC accounts, resulting in degradation to the mission. "Correct use of the GPC program comes from attention to detail and engaged leadership," said Lt. Col. Chris Wegner, 81st Contracting Squadron commander. All cardholders complete a thorough training program on proper use of the card. Additionally, approving officials are directly responsible for reviewing all transactions to ensure they are reasonable and necessary. "Ultimately, each unit commander is responsible for appointing responsible and capable GPC representatives and routinely monitoring their GPC activity," said Colonel Wegner. "The GPC is a great acquisition tool and places decentralized purchasing power in the hands of cardholders," added Colonel Wegner. "As stewards of the taxpayer dollar, and as professional Airmen, it's up to us to adhere to rules and procedures to safeguard the program and ensure its continued success." For more information, call Joyce Powell at 377-1841.