U.S. Department of Transportation
Federal Highway Administration
1200 New Jersey Avenue, SE
Washington, DC 20590
FHWA Order 2770.3A, Change 1
|Implementation of the Governmentwide Commercial Credit Card Service (GCCCS) Program|
|2770.3A, Change 1
||December 15, 1997
- Application Certification
- GCCCS Application and Account Set-up Procedures
- Use of the Credit Card
- Lost or Stolen Cards
- Cancellation of Credit Cards
- Validation of Purchases
- Cost of the Program
- Restrictions on the Use of the Credit Card
- Audit and Review of Credit Card Transactions
- PURPOSE. To prescribe the policy, responsibilities, and procedures
for the implementation of the GCCCS Program within the Federal Highway Administration (FHWA).
- SCOPE. The provisions of this Order are applicable to all GCCCS users.
- CANCELLATION. FHWA Order 2770.3, "Use of Credit Cards for Small
Purchases," dated October 4, 1991, is canceled.
- The Federal Acquisition Regulation (FAR).
- General Services Administration (GSA), Federal Supply Service, Contract
Guide GS-23F-94031, April 1994.
- Treasury Financial Manual (TFM), Volume I, Part 4, Chapter 4500, Governmentwide Credit Cards.
- Transportation Acquisition Manual (TAM), Chapter 13, Appendix B, "DOT
Procedures Pertaining to the Governmentwide Commercial Credit Card Service (GCCCS) Program."
- DEFINITIONS. The following definitions supplement those set forth
in the GSA GCCCS Program contract and the Transportation Acquisition Manual (TAM).
- Agency Program Coordinator (APC) - the employee designated to
coordinate the GCCCS program for the entire FHWA. This employee is located
in the Finance Division, HFS-20.
- Approving Official - the employee within the field or staff office
that has cardholder(s) under his/her purview. In FHWA, Approving Official(s)
are designated by the responsible Associate Administrator, Staff Office
Director, Regional Administrator, Federal Lands Highway Program Administrator,
or Federal Lands Highway Division Engineer.
- Chief of the Contracting Office (COCO) - the person responsible
for overall management of a contracting office. In FHWA the COCOs are:
the Associate Administrator for Administration, the Federal Land Highway
Program Administrator, and Regional Administrators, when acting within
the authority delegated to the Head of Contracting Activity (reference
memorandum dated November 1, 1993).
- Delegation of Procurement Authority (DPA) - the document issued
by the COCO, or designee, granting specific procurement limits to the
individual employee who is to be issued a GCCCS credit card. This DPA
does not substitute as a warrant issued under FAR Part 1.6 (see paragraph 5k).
- GCCCS Program - the program established by GSA to streamline
the procurement and payment process by reducing the paperwork involved
with the issuance of the SF-44, Purchase Order. The initial credit card,
International Merchant Purchase Authorization Card (IMPAC), was issued
by the Rocky Mountain Bankcard System; therefore, the terms GCCCS, Rocky
Mountain credit card and IMPAC may be used interchangeably.
- Head of the Contracting Activity (HCA) - the person responsible
for the overall management of the Washington Headquarters and regional
acquisition programs. In FHWA, the HCA is the Executive Director.
- Monthly Spending Limit - maximum dollar amount a cardholder may
expend over a 30-day period. In FHWA, this amount is determined by the
COCO, or designee, and is stated in the cardholder's DPA.
- Single Purchase Limit - the spending limit imposed on a cardholder
for an individual credit card transaction. Within FHWA these limits are:
(1) $2,500 - maximum limit for non-warranted personnel, unless specifically
authorized by the HCA; and, (2) $25,000 - maximum limit for warranted
personnel. The COCO or designee may establish a single purchase limit
less than or equal to the maximum limits. The amount established is stated
in the individual cardholder's DPA.
- TAM - the DOT document containing the DOT policies and procedures
relating to procurement and the GCCCS program.
- Warranted Personnel - FHWA employees who have been issued formal
appointment of contracting authority in accordance with FAR Part 1.6.
A DPA issued under this Order does not substitute as a warrant.
- POLICY. It is the policy of the FHWA to comply with all related directives
and regulations in administering all requirements regarding the GCCCS Program.
The DOT policies and procedures relating to the GCCCS Program are contained
in the TAM, Chapter 13, Appendix B.
- APPLICATION CERTIFICATION. Approving officials shall review each
application and certify to the APC that the prospective cardholder demonstrates
fiscal responsibility. Any serious delinquency on the part of cardholder for
outstanding travel advances, or Travel Charge Card Program balances within
FHWA, i.e., debt balances outstanding more than 60-120 calendar days, would
be sufficient to disqualify such applicant.
- GCCCS APPLICATION AND ACCOUNT SET-UP PROCEDURES
- Account Set-up forms (copies attached) for approving officials and cardholders
shall be completed, signed, and submitted to the APC. Account set-up forms
from division offices shall be forwarded to the APC through the regional
office. Applications from Federal Lands Highway Divisions shall be forwarded
to the APC through the Federal Lands Highway Program Administrator's office.
The attached copies may be photocopied for this purpose.
- All account set-up forms for cardholders and approving officials must be accompanied by:
(1) a certification by the approving official that the prospective cardholder demonstrates fiscal responsibility;
(2) a certification that the training requirements of paragraph 15,
of this Order, have been satisfied; and
(3) a copy of the DPA issued to the card applicant.
- Warranted personnel may submit a copy of their warrant, in lieu of items 8b(1), (2), and (3), of this Order.
- Upon completion of the review by the APC, the account set-up forms will
be forwarded to the card issuing bank for processing and issuance of a
credit card to the cardholder. This process takes approximately 10 days.
- Upon receipt of the credit card, the cardholder must promptly return
the receipt of acknowledgment form to the issuing bank.
- USE OF THE CREDIT CARD
- The individual whose name appears on the credit card is the only person
authorized to use the credit card. The credit card may be used for small
purchases as defined in FAR Part 13. With the exception of items listed
in paragraph 14 of this Order, the credit card may be used for over-the-counter
or telephone purchases from participating vendors.
- The use of an individual Procurement Request (PR) for each credit card
transaction is optional. However, all purchase transactions made by a
cardholder shall be supported by a PR or other document certifying to
funds availability. Availability of funds determination shall be made
prior to any purchase. All purchases by credit card shall be supported
by an accountable document (i.e. a credit card receipt or a telephone
log entry by date of purchase, name of authorizing official, vendor name,
item description, amount of purchase, etc.)
- Purchases by the Federal Government are exempt from sales tax (the credit
card also bears this notation). A toll free number is included on the
back of the card for the merchant to call if they have any questions regarding
sales tax. The cardholder may also request the APC to provide them with
a copy of his/her State sales tax agreement letter. Charges processed
with sales tax must be resolved between the cardholder and the merchant.
- Cardholders shall inform the vendor not to charge the credit card for
the purchase until shipment is made.
- Purchases requiring prior administrative approval may not be made before
obtaining the required approval. (Note: consult internal/FHWA office operating procedures)
- LOST OR STOLEN CARDS. Since the use of the GCCCS will obligate the
Federal Government, care should be taken to secure the card in accordance
with the safeguarding requirements established for imprest funds. In the event
a credit card is lost or stolen, the cardholder's approving official and the
issuing bank shall be immediately notified of the cardholder's complete name,
card number, last authorized purchase, and in the case of theft, the date
reported to the police. Within five working days of discovery, the approving
official shall forward written confirmation of the above information to the
issuing bank and the APC.
- CANCELLATION OF CREDIT CARDS. With the exception of lost or stolen
cards, the APC shall be responsible for canceling any credit cards. Approving
officials shall promptly complete and forward a Cardholder Account Maintenance
form to the APC for any cardholder who retires, resigns, dies, or is reassigned
to another position, terminated, or no longer qualified as a cardholder.
- VALIDATION OF PURCHASES
(1) It is the cardholder's responsibility to verify all credit card
purchases and credit transactions, i.e., the cardholder's copy of the
sales receipt, credit slip, and telephone/purchase log, against the
transactions on the monthly bank statement.
(2) The cardholder shall resolve discrepancies on the monthly statement,
including charges for items returned to vendors, charges by merchants
made before the date of shipment, and credit vouchers not appearing on the statement.
(3) Cardholders will send the issuing bank a completed "Cardholder
Statement of Questioned Item Form" (copy attached) for any
disputed item within 7 calendar days after receipt of the monthly
statement. The cardholder shall also forward a copy of this form with
the statement and supporting documentation to the approving official
(4) Cardholders shall assure that the correct accounting classification
is assigned to each item appearing on the statement.
(5) The cardholder should forward the cardholder's statement to their
approving official for signature. The approving official will forward
the signed statements to the Coast Guard Finance Center for processing.
- Approving Official. It is the approving official's responsibility to
ensure that the cardholder's validated purchases and credits are authorized
purchases and bear the proper accounting classifications, and that purchases
and credits are supported by sales slips, credit slips, or telephone log
entries. Within 14 days after the date on the approving official's statement,
the approving official shall forward the cardholder's statement and the
approving official's statement to the U.S. Coast Guard Finance Center.
Overnight delivery should be used to ensure compliance with this time period.
- COST OF THE PROGRAM. Interest shall be paid to the issuing bank for
the number of days late, computed at the Renegotiation Board Interest Rate,
if a payment is made late. These charges will be charged to the major object
code cited in the accounting string of the purchase(s) using sub-object code
99 (See DAFIS object code listing).
- RESTRICTIONS ON THE USE OF THE CREDIT CARD
- The GCCCS credit card cannot be used for:
(1) personal purchases.
(2) cash advances.
(3) airline, bus, boat, and/or train tickets.
(4) rental and/or lease of motor vehicles.
(5) meals, beverages, and/or lodging.
(6) repairs, gasoline, and/or oil for GSA motor vehicles or other commercially leased vehicles.
Restrictions for Headquarter's offices only, except for those offices
or locations with special exemptions:
(7) non-expendable property, including telecommunications, furniture
and other accountable/sensitive equipment.
(8) ADP hardware, software, and maintenance.
(9) data communication lines, hardware, software, and/or services.
- The cardholders who have warranted contracting authority or who are
directly supervised by a warranted contract officer are exempt from items (4),(8), and (9) above.
- The Administrative Office (HFS-20), in conjunction with the Office of
Acquisition Management, will ensure that approving officials and cardholder
applicants receive the required training prior to the issuance of credit
cards. The training will include instruction in their individual responsibilities
in adhering to procurement regulations and financial management requirements.
- Training in procurement regulations will include understanding the requirements
as set forth in the FAR and TAM, covering at a minimum, the following:
(1) Part 3, "Improper Business Practices and Personal Conflict of Interest;"
(2) Part 8, "Required Sources of Supplies and Services;"
(3) Part 13, "Small Purchases and Other Simplified Purchase Procedures;"
(4) Part 22, "Application of Labor Laws to Government Acquisitions;"
(5) Part 25, "Foreign Acquisitions;" and
(6) Part 39, "Acquisition of Information Resources."
- Training in financial requirements pertain to:
(1) safekeeping of credit cards and card numbers;
(2) retention of receipts for charges and credits for purchases, returns, and disputed items;
(3) record keeping for telephone purchases;
(4) timely validation of charges and credits on monthly statements;
(5) summarization of accounting data for charges and credits on monthly statements; and
(6) procedures to follow if a card is lost or stolen.
- The FHWA will not be liable for unauthorized purchases made by an unauthorized
user provided that reasonable efforts were made to promptly notify the
card issuing bank when the credit card was lost or stolen.
- The FHWA will be liable for unauthorized purchases by the authorized
cardholder when the purchase was made through an approved merchant and
the amount of the purchase did not exceed the cardholder's single purchase
or monthly spending limit.
- AUDIT AND REVIEW OF CREDIT CARD TRANSACTIONS. The DOT, under the
Departmental Accounting and Financial Information System (DAFIS), will implement
an automated module to randomly select credit card transactions for audit.
WAIVERS. The COCOs desiring waivers from any requirement of this
Order shall submit to the APC a written request justifying the need for
the exemption. The APC will review the documentation and develop the necessary
recommendation to the HCA, through the Associate Administrator for Administration.
/s/ Original signed by:
George S. Moore, Jr.