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356 Cards in this Set

  • Front
  • Back
What is the intention of the Purchase Card Program? 1--1
to streamline small purchase methods; minimize paperwork; eliminate Imprest Fund (petty cash); streamline payment processes; and simplify the administrative effort associated with traditional and emergent purchase of supplies and services.
At what micro-purchase threshold value is the purchase set at? 1-1
used to purchase supplies and services for official government business valued at or below the micro-purchase threshold of $2,500.
T of F. The purchase card may be used as a method of payment in conjunction with other contracting methods above the micro-purchase threshold up to $9,999,900? 1-1
True depending on the type of contracting vehicle utilized with the appropriate delegation of authority from the Head of the Contracting Activity (HCA).
What is the 1st benefit of the purchase card program? 1-1
Reduces administrative paperwork through streamlining of the procurement process
What is the 2nd benefit of the purchase card program? 1-1
Streamlines the certification and payment process
What is the 3rd benefit of the purchase card program? 1-1
Streamlines the certification and payment process
What is the 4th benefit of the purchase card program? 1-1
Enables Defense Finance and Accounting Service (DFAS) vendor payment by Electronic Funds Transfer (EFT) through a commercial bank
What is the 5th benefit of the purchase card program? 1-1
Eliminates or minimizes prompt payment interest through the use of the online certification and payment system
What is the 6th benefit of the purchase card program? 1-1
Provides rebates to the DON based on the dollar volume of use and timeliness of payment
The need for the Purchase Card Program began with what Executive Order? 1-1
Executive Order 12352
The Purchase Card Program was developed for what? 1-1
To provide a fast and convenient method to procure and/or pay for all requirements under the micro-purchase threshold ($2,500 for supplies and services, $2,000 for construction and $25,000 for CHs Outside of the United States (OCONUS) under the appropriate conditions)
The purchase card can be used in what two methods? 1-2
The purchase card can be used as either a procurement method or method of payment
Define procurement method. 1-2
Procurement method is defined as a CH performs the task of ordering, obtaining and paying for supplies/services
Define method of payment. 1-2
defined as a CH pays, via government purchase card, for supplies or services ordered and obtained via some other procurement contractual vehicle
The purchase card shall be used to purchase what? 1-2
supplies and services for official government busines
T or F. The purchase card shall only be used for authorized United States (U.S.) Government purchases. 1-2
True
T or F. Intentional use of the purchase card for other than official Government business will be considered an attempt to commit fraud against the chain of command? 1-2
False, will be considered an attempt to commit fraud against the U.S. Government
Fraud against the U.S. Government will result in what? 1-2
immediate cancellation of an individual’s purchase card and potential disciplinary action.
T or F. The use of the purchase card for personal purchases for any reason is authorized. 1-2
False. The use of the purchase card for personal purchases for any reason is strictly prohibited
The purchase card shall be used to make open market purchases for supplies and services not to exceed what amount? 1-2
$2500
The purchase card can be used to pay for construction at what value? 1-2
$2000
OCONUS CHs with appropriate delegations of contracting authority, may use the purchase card, not to exceed $__, for procurements. 1-2
$25,000
T or F. The purchase card can be used for DOD printing requisitions/orders valued at $100,000 and below.? 1-2
True
T or F. The purchase card can be used for Purchase Orders (SF 1449/DD 1155) valued at $100,000 and below or up to $1 million for commercial items. 1-3
False. 5 million for commercial items
T or F. The purchase card can be used for Blanket Purchase Agreement (BPA) orders valued at $100,000 and below or up to $5 million for commercial items.1-3?
True
T or F. The purchase card can be used for Delivery order against Federal Supply Schedules (FSS) valued at $20,999,900 or below. 1-3
False. $9,999,900 or below
T or F. The purchase card can be used for Basic Ordering Agreements (BOA) and orders under Indefinite Delivery Type Contracts (IDTC) valued at $9,999,900 and below. 1-3
True
T or F. The purchase card can be used for Oral orders against Letters of Agreement valued between $500 and $25,000 for supplies only. 1-3
False. Between $2500 and $25,000.
T or F. The purchase card can be used for Placing delivery and task orders (e.g. DOD eMall) against competed Indefinite Delivery, Indefinite Quantity (IDIQ) contracts for orders valued at $10,000 and below. 1-3
False. Values at $100,000 and below.
T or F.The purchase card as a method of payment to pay for training requirements using the DD 1556 (Certification of Training) and valued at $25,000 and below. 1-3
True
Who is responsible for oversight of activities to which they delegate contracting authority, including those under their cognizance that manage and operate local Purchase Card Programs? 1-4
HCA's
Commands operating and managing local Purchase Card Programs are responsible for what? 1-4
Performing oversight of their local program following the guidance provided in this instruction
Findings and results for this oversight requirement shall be reported how? 1-4
Through procurement channels
There are _ Echelon 2 contracting activities within the DON who delegate Purchase Card Program authority? 1-4
9
What are the 9 Echelon 2 contracting activities within the DON who delegate Purchase Card Program authority? 1-4
Office of Naval Research (ONR), Naval Air Systems Command (NAVAIR), Naval Sea Systems Command (NAVSEA), Naval Facilities Engineering Command (NAVFAC), United States Marine Corps (Marine Corps System Command/HQ Installation & Logistics) (I&L, HQMC) Strategic Systems Program (SSP), Military Sealift Command (MSC), Space and Naval Warfare Systems Command (SPAWAR), Naval Supply Systems Command (NAVSUP)/Naval Inventory Control Point (NAVICP
How many NAVSUP HCA's support how many activities? 1-5
11
Who are the 11 NAVSUP HCA's? 1-5
Field Support Activity (FSA), Assistant for Administration, Under Secretary of the Navy (AAUSN), Office of Naval Intelligence (ONI), Bureau of Medicine and Surgery (BUMED), Chief of Naval Personnel (NAVPERS), Commander Navy Installations (CNI), Commander US Atlantic Fleet (LANTFLT), Commander US Pacific Fleet (PACFLT), Commander Naval Reserve Force (RESFOR), Naval Special Warfare Command (SPECWAR), Naval Education and Training Center (NETC)
T or F. Contracting authority is required prior to the establishment of a Purchase Card Program. 1-5
True
T or F. An activity is required to obtain contracting authority through the Department Head. 1-5
False. Throught the appropriate HCA.
T or F. HCAs provide different levels of contracting authority for activities. 1-5
True
The activity establishing a new Purchase Card Program will need to provide what? 1-5
Verification that contracting authority has been granted to the Level III APC when setting up the activity with the bank.
New ___/___ setups must be coordinated through the Level III APC before submitted to DON CCPMD and the bank. 1-5
activity/hierarchy
Navy Marine Corps Acquisition Supplement (NMCARS) 5201.691-1 provides what? 1-5
That each HCA is responsible for oversight and review of their subordinate contracting organizations.
NMCARS 5201.691-1 requires that by 30 December of each year, HCAs must report to the ______ (DASN) for Acquisition Management (ACQ). 1-6
Deputy Assistant Secretary of the Navy (DASN)
What is the Acquisition Management (ACQ)? 1-6
a summary of relevant findings from the results of the previous fiscal year’s Procurement Performance Management Assessment Program (PPMAP)
T or F. Number of purchase card reviews conducted should be considered and incorporated in your HCA program’s PPMAP process.1-6
True
T or F Number of activities using the purchase card should be considered and incorporated in your HCA program’s PPMAP process.1-6
True
T or F Number of purchase card activities that received an unacceptable rating resulting in a suspension of the Purchase Card Program do not have to be considered and incorporated in your HCA program’s PPMAP process.1-6
False, it shoud be incorporated
T or F Number of activities that had their purchase card authority reinstated should be considered and incorporated in your HCA program’s PPMAP process.1-6
True
T or F Depatment Head span of control should be considered and incorporated in your HCA program’s PPMAP process.1-6
False, Approving Official
T or F. Number of actions exceeding the micro-purchase threshold (not to include those actions that were processed as a method of payment) should be considered and incorporated in your HCA program’s PPMAP process. 1-6
True
T or F. Non-Questionable transactions should be considered and incorporated in your HCA program’s PPMAP process. 1-6
False, questionable transactions
T or F. Instances of non split purchases should be considered and incorporated in your HCA program’s PPMAP process. 1-6
False, Instances of split purchases
T or F. Excessive instances of purchase card delinquencies should be considered and incorporated in your HCA program’s PPMAP process. 1-6
True
T or F. Screening of requirements for their availability from mandatory chain of command sources of supply should be considered and incorporated in your HCA program’s PPMAP process. 1-6
False, availability from mandatory Government sources
T or F. Separation of buying and receiving functions should be considered and incorporated in your HCA program’s PPMAP process. 1-6
True
T or F. The Level II APC shall report findings from PPMAP reviews to their Level III APC (through Level IV APC when applicable). 1-6
False, the Level V
The Level V APC shall report findings from PPMAP reviews to their Level III APC (through Level IV APC when applicable), which in turn shall report to DON CCPMD within how many days of final report. 1-6
60 days
Give examples of 4 HA's. 1-6
Commanders, Commanding Officers (COs), Officers-In-Charge (OICs), directors
Who are responsible for managing their DON Purchase Card Programs? 1-6
HA's.
T or F. Divos are responsible for support/sponsorship to all participants in the Purchase Card Program. 1-6
False, HA's are responsible.
T ot F. LCPO's ensure that appropriate administrative and disciplinary action is taken when fraudulent, improper and/or abusive purchase card transactions are found. 1-7
False, HA's are responsible.
The Maintenance Officer ensures that all program participants have received the required training per DOD and DON policy and procedures. 1-7
False, HA's are responsible
T or F. The HA should receive initial training on purchase card policy and refresher training every 5 years. 1-7
False, every 2 years
Chapter _, section _ of this instruction delineates specific training requirements. 1-7
Chapter 1, section 8
Documentation of training must be maintained by the APC for the duration the participant/employee serves in this capacity for how many years? 1-7
3 years and beyond
Who establishes effective internal management controls to ensure appropriate management, operation and oversight of the local Purchase Card Program. 1-7
HA's
T or F. The LPO ensure appropriate resources are allocated to the program. 1-7
False, the HA does
The local program is executed per ___ and ___ guidance. 1-7
DOD and DON guidance.
T or F. The work center supervisor ensures program personnel, APCs, AOs and CHs are properly appointed.
False, HA's are responsible.
T or F. the number of AOs and purchase card accounts appointed within a command is the minimum number ecessary to meet mission requirements and within current span of control guidance. 1-7
True
Who establishes local policies and procedures identifying informal and formal disciplinary action to be taken against APCs, AOs and CHs for non-compliance, fraud, misuse and/or abuse? 1-7
HA's
The range of disciplinary actions should be based how? 1-7
On the severity and frequency of the infraction
Disciplinary action could range from informal actions in what form? 1-7
Written or verbal counseling detailing the concern and directing corrective action and greater oversight, to account suspension or cancellation, to official letters of reprimand, to demotion, removal or potential criminal prosecution
Who establishes and maintains a command climate to prevent requiring or requesting personnel from exercising undue influence over the actions of a CH? 1-8
HA's
Who shall ensure that the roles and responsibilities of the individuals within their programs are not in conflict and adequate checks and balances are in place to manage local programs? 1-8
HA-s
The APC is designated by the __ through an official letter of delegation and is the individual responsible for day-to-day oversight and audit management of the program. 1-8
CO
T or F. The LPO is an accountable official within the Purchase Card Program per reference (d). 1-8
False, the APC
How many levels of APC's are there? 1-8
3 levels
What level is Level 3? 1-8
Component level
What level is Level IV? 1-8
Management Control Level
What level is Level V? 1-8
Activity level
T or F. It is highly recommended that a Level III APC be a full time position for the Purchase Card Program. 1-8
True
Who is required to, at a minimum, perform, oversee and manage monthly transactional purchase card reviews along with semiannual reviews, touching every aspect of the program? 1-8
The Level V APC
Who are encouraged to review a compilation of activity reviews? 1-8
Level III/ IV APC's
T or F. The results of the semiannual review shall be reported through the chain of command to the DON CCPMD. 1-8
True
Who shall notify their chain of command and the DON CCPMD (via the Level III APC) when an investigation or audit commences and ends? 1-8
The Level V APC.
T or F.The Level V APC is also required to report any failures and corrective actions taken to their Level III APC. 1-8
True
When reporting a Naval Criminal Investigative Service (NCIS) investigation, what information is needed? 1-8
Povide the case number, if assigned, to allow for direct follow up from DON CCPMD
T or F. APCs must receive initial training on purchase card policy as well as refresher training every three years. 1-8
False, refresher trainig every 2 years
T or F. Level III APCs (or their alternates) are required to attend APC conferences. 1-9
True
T or F. APCs must complete the revised DD Form 577 and should be maintained within APC documentation for an accountable official. 1-9
True
T or F. It is recommended that the LPO/LCPO receive quarterly briefings regarding the status of the program. 1-9
False. HA/CO
What topics should be considered for quarterly briefings regarding the purchase card program? 1-9
Topics to consider for these briefings should include the number of cards, spending patterns, delinquency issues and instances of misuse, abuse or fraud
Who establishes and ensures execution of the local program per DOD and DON policies and procedures? 1-9
Level V APC
Who ensures program personnel, APCs, AOs and CHs are properly appointed, trained and are capable of performing their respective duties? 1-9
Level V APC
T or F. Level V APC's ensure annually, that only personnel who require purchase cards for mission requirements are issued purchase cards and have a continuing need for purchase cards. 1-9
True
Who ensures AO and CH account profiles are appropriate for local mission? 1-9
Level V APC's
Who performs regularly scheduled maintenance, no less than quarterly, on command AO and purchase card accounts? 1-9
Level V APC's
Who ensures that appropriate action is taken when local reviews reveal non-compliance, misuse, abuse and/or fraud? 1-9
Level V APC
Who utilizes reports available through the custom reporting tool (Citibank Custom Reporting System (CCRS)) within the bank system to proactively monitor the program? 1-9
Level V APC
AO to CH account ratio shall not exceed what amount? 1-10
1 : 7
APC to CH account ratio shall not exceed what amount? 1-10
1 : 300
Span of control should be monitored how? 1-10
Monthly
Activities that exceed span of control will be required to report what? 1-10
Will be required to report on their non-compliancy
If activities do not take timely action, who will close accounts in order to have activity back at required span of control? 1-10
DON CCPMD
T or F. Contingency and deployed accounts are included in span of control requirements.
True
Accounts become delinquent __ days from the statement date if the bank has not received payment. 1-10
30 days
Unpaid balances __ days from the statement date are considered __ days past due and shall not exceed _ percent of the activity’s current balance. 1-10
Unpaid balances 60 days from the statement date are considered 30 days past due and shall not exceed one percent of the activity’s current balance
Who should monitor their delinquencies, at a minimum, on a weekly basis by verifying that payments have posted at the bank and resolving any unpaid suspended invoices. 1-10
All level APC's
Suspended STARS invoices can be reviewed how? 1-10
On the weekly a and M status report
Those activities that exceed the _ percent delinquency standard will be required to report reasons for not meeting the standard. 1-10
1 percent
Activities that exceed one percent deliquency standard must give reports to DON CCPMD by what date? 1-10
By the 15th of the following month
T or F. (example, June cycle closes on June 19th. Activities exceeding the one percent standard must report to DON CCPMD by July 15th)? 1-10
True
Credit limits of AOs and CHs shall be reviewed how? 1-10
On a quarterly basis
T or F. Spending limits should be tied directly to funding allocated for each card account. 1-10
True
T or F. Spending limits should be established by the responsible fund certifying official. 1-10
True
T or F. OMB Reporting. DON CCPMD is required to report quarterly on the number of CHs with spending limits greater than $2,500 with contracting officer warrants per FAR 1.603. 1-10
True
OMB Reporting. DON CCPMD is required to report quarterly on the number of CHs with spending limits less than $2,500 with delegations other than contracting officer warrants. 1-10
False. Greater than $2500
OMB Reporting is due when? 1-11
Reports are due to DON CCPMD approximately 15 days after the quarter ends
Level III APCs shall consolidate component data and submit one form to who? 1-11
DON CCPMD
T or F. Accounts that have not been used more than three times in the last six months should remain open. 1-11
False, they should be closed.
T or F. If the accounts are noted as either deployed or contingency accounts, credit limits shall be set at $1.00 (allows for inactive accounts to remain open). 1-11
True
Convenience checks shall not exceed what amount?
$2500
Accounts that have checks written for any amount over $___, must be closed and that check writer can no longer have a convenience check account. 1-11
$2500
Who is responsible to ensure that each AO and CH has an appropriate grant of authority to satisfy mission requirements?
Level V APC
T or F. CH accounts should be established which recognize applications for the card other than for micro-purchases. 1-11
True
Who ensures proper spending limits are adhered to and that the purchase card account profile does not exceed the limits in the delegation document? 1-11
Level V APC
T or F. All LCPO's are required to have access to the bank’s application. 1-11
False, all APC's
Setup forms can be found where? 1-11
On the DON CCPMD website under the bank guidance tab
T or F. Bank access allows the APC to review transactions, set up CH accounts and run reports required for audit and day-to-day operations of the program. 1-11
True
T or F. Forms require the signature of the departing APC or the next higher level APC for approval. 1-11
True
Who shall establish an individual file for each AO and CH? 1-11
Level V APC
For how long will the individual files for each AO and CH shall be retained? 1-11
The file shall be retained for the duration the employee serves in this capacity and for three years beyond
What 6 items will you find in an AO file? 1-11
1. Written request from supervisor (nomination letter).
2. Initial and all refresher training documentation
3. Copy of initial and all subsequent letters of delegation.
4. Account set up form
5. DD Form 577 (signature card for DFAS)
6. Record of disciplinary actions taken (if known)
What 6 items will you find in a CH file? 1-12
1. Written request from supervisor (nomination letter).
2. Initial and all refresher training documentation
3. Copy of initial and all subsequent letters of delegation.
4. DD Form 577
5. Account set up form if processed manually
6. Record of disciplinary actions taken (if known)
Who ensures that the roles and responsibilities of the individuals within their programs are not in conflict and adequate checks and balances are in place to manage local programs? 1-12
Commanders, COs and APCs
T or F. APCs will be be AOs or CHs within the same hierarchy. 1-12
False, APCs shall not be AOs or CHs within the same hierarchy
In cases where commands have limited numbers of personnel to execute the Purchase Card Program and an APC must be an AO, what must be done? 1-12
An approved waiver is required from the DON CCPMD
Who shall ensure that a command department independent of the local Purchase Card Program office performs the monthly and semiannual reviews? 1-12
The HA
T or F. Level III APCs (or their alternate) are required to attend APC conferences at the command’s expense? 1-13
True
T or F. Level III APCs (or their alternate) are not required to phone in for the monthly teleconferences held by DON CCPMD. 1-13
False, they are required to phone in
Monthly teleconferences are held when? 1-13
On the fourth Thursday of each month beginning at 1400 Eastern Standard Time
T or F. Information from these meetings is recorded in meeting minutes and posted to the DON CCPMD website. 1-13
True
Whos responsibility is it to promulgate the meeting minutes information to lower level APCs, AOs and CHs? 1-13
Level 3 APC's.
Who is the first line of defense against misuse, abuse and fraud? 1-13
The AO
Who is responsible for ensuring proper use of the purchase card through approval of purchases and certification of monthly invoices for payment?
AO
T or F. AOs must receive initial training on purchase card policy as well as refresher training every 4 years.
False, every 2 years
Who shall appoint AOs as certifying officers and accountable officials per the DOD Financial Management Regulation (FMR)? 1-13
DON
T or F. Certifying officers are pecuniary liable for erroneous payments they certify. 1-13
True
T or F. AOs and certifying officials are synonymous in the DON Purchase Card Program. 1-13
True
T or F. For the purposes of this instruction, AO's and certifying officials are synonymous and will be referred to as AOs. 1-13
True
A delegation letter from the HA (or their designee) is required for what purpose? 1-13
Indicating dollar limits.
T or F. If no guidance is given, the AO monthly billing limit shall not exceed 2 times the sum of the CH monthly limits. 1-13
True
T or F. The delegation letter may not be used with the DD 577 provided all of the required limits, sources and transaction types are filled out within block 14. 1-13
False. The delegation letter can be incorporated with the DD 577 provided all of the required limits, sources and transaction types are filled out within block 14
__ must complete the revised DD Form 577 and this form shall be maintained with __ for accountable official/signature verification. 1-13
AO's must complete the revised DD Form 577 and this form shall be maintained with DFAS for accountable official/signature verification
The appointment letter for the AO informs the program participant with what information? 1-14
Informs the program participant of their role and does not specifically appoint the AO as the certifying officer
As a certifying officer, the AO will issue what type of letter to all accountable officials? 1-14
A letter of delegation
AOs that certify electronically through CitiDirect must have access to what? 1-14
To the bank’s application
T or F. DOD policy requires that the AO to card account ratio be no more than 1:7. 1-14
True
Can a waiver be used if an AO needs to exceed the ratio of 1 : 7? 1-14
True
T or F. Only 7 CH accounts in total are allowed per AO regardless of the number of AO accounts assigned (not per AO account). 1-14
True
Consideration should be given to the number of transactions per LPO and LCPO is required to review. 1-14
False, CH and AO.
Who should evaluate the timeliness and effectiveness of the AO’s invoice review and certification process to ensure that the number of transactions for all card accounts allows the AO to complete a thorough review and certification. 1-14
The APC
T or F. Individuals designated as AOs shall be assigned as CHs or as APCs within the same hierarchy. 1-14
False, Individuals designated as AOs shall not be assigned as CHs or as APCs within the same hierarchy.
T or F. If personnel considerations require an AO to be a CH, under no circumstances shall any CH be their own AO. 1-14
True
AOs should be, to the greatest extent possible, the supervisor of the CH or be in the direct line of authority of their CH, but not supervisor of their APC. 1-14
True
Financial documents (invoices, dispute documentation, receipts, etc.) shall be retained for how long? 1-14
A period of six years and 3 months.
Immediately upon receipt from the CH, who shall review and approve the monthly card account statements in addition to reviewing and certifying for payment the monthly billing statement. 1-15
The AO
The monthly billing statement is a summary invoice with what information? 1-15
A summary invoice of all transactions of the card accounts established under the AOs account
T or F. Ensure that all purchases accomplished by the purchase CHs within their cognizance are appropriate and the charges accurate.1-15
True
T or F.Verify supporting transaction documentation on all card accounts prior to certifying the monthly invoice. 1-15
True
T or F. Notify the LPO and DIVO in the event of any suspected unauthorized purchase (purchases that would indicate non-compliance, fraud, misuse and/or abuse). 1-15
False, notify the HA and APC
T or F. Ensure proper receipt, acceptance and inspection is accomplished on all items being certified for payment. 1-15
True
T or F. Standard business practices state that the requisitioner of the goods shall be the receiver. 1-15
False, shall not be the receiver.
T or F. The LCPO shall verify the existence of receipt and acceptance documentation. 1-15
False, the AO
T or F. Evidence of receipt, inspection and acceptance is required (per reference (h)) by the LPO. 1-15
False, the AO
T or F. One example of physical validation is the AO signing or initialing in a corner of each of the CHs transaction receipts. 1-15
True
Certification of the monthly invoice will be done in how many business days of receipt? 1-15
5 business days of receipt.
T or F. When certifying manually, sign and date the monthly statement to signify accuracy. 1-15
True
T or F. If certifying electronically, the DIVO will need to print out their electronic statement for signature. 1-15
False, the AO
Who will nominate and appoint CHs as accountable officials per the DOD FMR? 1-15
DON activities
T or F. A letter from the immediate supervisor nominates the CH. 1-15
True
What is required to show authority to purchase supplies and/or services. 1-15
A delegation letter
The delegation letter of a CH is from who? 1-15
The delegation letter is from the HA (or their designee).
T or F. CH designation represents the HA’s confidence in the CH’s integrity and is assigned according to mission requirements. 1-15
True
T or F. Individuals designated as CHs shall be assigned as AOs or as APCs within the same hierarchy. 1-16
True. Individuals designated as CHs shall not be assigned as AOs or as APCs within the same hierarchy.
T or F. The CH will be held pecuniarily liable as an accountable official to the Government for the amount of any erroneous payment certified and paid based on false or negligent information provided to the certifying officer. 1-16
True
Under 18 U.S.C. 287, misuse of the purchase card could result in what? 1-16
Misuse of the purchase card could result in a fine of not more than $10,000 or imprisonment for not more than five years or both.
T or F. Military members who misuse the purchase card are subject to court martial under 10 U.S.C. 932, UCMJ Art. 132. 1-16
True
T or F. Work Center Supervisors shall not be subjected to undue influence over their actions as a CH by APCs, AOs or others within the command
False, CHs shall not be subjected to undue influence over their actions as a CH by APCs, AOs or others within the command.
T or F. CH training is not critical. 1-16
False, it is critical.
T or F. Initial training for a CH and biennial refresher training is not required. 1-16
False. Initial training and biennial refresher training is required
T or F. CHs that certify electronically through CitiDirect must have access to the bank’s application. 1-16
True
T or F. APCs are able to set up CH accounts online using NKO. 1-16
False, using CitiDirect
T or F. Convenience check accounts can be set up online. 1-16
False, they cannot be set up online.
T or F. Ensure proper and adequate funding is available prior to any purchase card action. 1-16
True
T or F. You do not to screen all requirements for their availability from the mandatory Government sources of supply. 1-16
False, all requirements must be screened.
Purchase only ___ ____ essential requirements at fair and reasonable prices from responsible suppliers only if mandatory sources are unavailable. 1-16
Mission essential
True or false, CH's must maintain either a manual or automated purchase log that documents individual transactions. 1-16
True
T or F. The purchase card log and supporting documentation does not need to provide an audit trail supporting the decision to use the card and any required special approvals that were obtained. 1-16
False, the purchase card log and supporting documentation should provide an audit trail supporting the decision to use the card and any required special approvals that were obtained.
At a minimum, the purchase log shall contain what information? 1-16/ 1-17
1. Date the item or service was ordered. 2. The merchant name. 3. The dollar amount of the transaction. 4. A description of the item or service ordered. 5. Date of receipt. 6. Name of individual receiving item or service. 7. Paid but not received (pay and confirm). 8. Credit received. 9. Disputed. 10. Mandatory sources screened. 11. Mandatory sources used/not used indicating why. 12. Maintained by cycle, not monthly, in order to reconcile with statement.
T or F. CH's should review the monthly purchase card statement to ensure that all charges are proper and accurate. 1-17
True
T or F. CH's shall forward the monthly purchase card statement to the AO with the appropriate supporting documentation, within how many working days, to maximize rebates and minimize prompt payment penalties? 1-17
5 working days
What are the 4 sipporting documents needed to maximize rebates and minimize prompt payment penalties? 1-17
1. Requisition form (showing funding approval). 2. Signed sales receipt – ensure legible signature (shows receipt/ acceptance; what was purchased). 3. Purchase Log (shows screened for mandatory sources/ Section 508 of the Rehabilitation Act compliance). 4. Any supporting documentation justifying the transaction.
T or F. CH's should follow the appropriate procedures for ‘pay and confirm’ and/or disputes per Chapter 2 of this instruction. 1-17
True
T or F. CH's should ensure a proper separation of function is occurring for each purchase card transaction. 1-17
True
NMCARS 5203.101-1 provides that controls shall be established at each activity exercising procurement authority to ensure what? 1-17
To ensure that there is a 3-way separation of function to prevent personal conflicts of interest and fraud, waste and abuse.
A single individual may perform what three functions? 1-18
1. Initiation of the requirement
2. Award of contract or placement of order.
3. Receipt, inspection and acceptance of supplies or services.
T or F. If circumstances preclude an individual from performing a single function, at a minimum, a two-way separation of function for all purchase card transactions must occur to protect the integrity of the procurement process. 1-18
True
T or F. The individual responsible for the award of a contract or placement of an order shall not perform the receipt, inspection and acceptance function. 1-18
True
T or F. AO's have the responsibility to ensure that any credit card fees paid by the vendor are not added to the price of the items. 1-18
False, CH's have the responsibility.
T or F. CH's do not have to
rotate micro-purchase requirements among qualified suppliers to the maximum extent practicable. 1-18
False. CH must rotate micro-purchase requirements among qualified suppliers to the maximum extent practicable
Who ensures that vendors are instructed not to charge sales tax, unless the location of the merchant’s business is in a state that does not afford the federal government a tax-exempt status under its state and local laws (e.g., Arizona, Hawaii). 1-18
The CH
Who reminds the vendor that his/her purchase card account may not be billed until after the material has been shipped or service provided? 1-18
The CH
Who ensures micro-purchases are compliant with Section 508 of the Rehabilitation Act? 1-18
The CH
Financial documents (invoices, dispute documentation, receipts, etc.) shall be retained for a period of ___ years and ___ months. 1-18
Financial documents (invoices, dispute documentation, receipts, etc.) shall be retained for a period of six years and three months.
Non-financial documents shall be retained for a period of ___ years (e.g. training
certificates). 1-18
3 years
CHs must complete what revised DD Form? 1-18
DD Form 577
What form should be maintained with CH documentation for an accountable official. 1-18
DD Form 577
T or F. The full account number may be transmitted by fax or email. 1-19
False, The full account number shall not be transmitted by fax or email.
T or F. If the purchase needs to occur using fax or email, note the form that the vendor should contact the CH by telephone.1-19
True
Account information may be transmitted using what 3 methods? 1-19
1. Over the counter 2. Over the phone. 3. Internet, secure/ encrypted site (command authorization required within delegation letter)
Prior to establishing a local DON Purchase Card Program, the __ (i.e., CO) must obtain a grant or delegation of authority to operate a Purchase Card Program. 1-19
The HA
T or F. All DON activities must obtain a delegation of contracting authority, following the cognizant HCA’s procedures prior to local implementation of the Purchase Card Program. 1-19
True
Who shall personally delegate contracting authority to each potential CH? 1-19
The HA
T or F. The HA shall delegate to one individual within the activity (e.g. the APC) the right to re-delegate contracting authority to CHs within the activity. 1-19
True
T or F. Authority may be given to a CH in excess of the authority given in writing to the activity by an HCA. 1-19
False, no authority may be given to a CH in excess of the authority given in writing to the activity by an HCA.
T or F. All program participants, APCs, AOs and CHs, must receive initial training on purchase card policy as well as refresher training every two years. 1-19
True
Documentation of training for all participants must be maintained by the APC for the duration the participant/ employee serves in this capacity and for __ years beyond. 1-19
3 years
Prior to designation as a program participant via a letter of delegation, all prospective APCs, AOs and CHs shall what? 1-19
Successfully complete mandatory training in DOD and DON policies and procedures, as well as local IOP.
All CHs appointed via a SF 1402 shall also take what DAU course? 1-19
DAU CON 237 Simplified Acquisition course.
T or F. Refresher training on current DON policies and procedures and local IOP is required at least every two years. 1-19
True
Who shall take the appropriate role based DON CCPMD training. 1-20
All CHs, AOs and APCs
Where is the annual ethics training requirements for all Government employees found? 1-20
In the Joint Ethics Regulation (JER), DOD 5500.7-R, as well as 5 CFR 2638.705
T of F. CHs who make purchases in excess of $100,000 per fiscal year must complete OGE Form 450 and, therefore, are required to take local annual ethics training. 1-20
True
T or F. AOs who certify in excess of $100,000 of purchases per fiscal year do not need to complete OGE Form 450 and take local annual ethics training. 1-20
False, AO's are required
T or F. CHs and AOs who do not exceed these respective $100,000 per fiscal year thresholds may still be required to complete OGE Form 450 and take local annual ethics training if required by their supervisor. 1-20
True
All ethics questions, including those pertaining to training, should be directed to who? 1-20
To the local DON Office of General Counsel and/or next higher-level APC.
T or F. Any CH or AO (with the exception of those who are deployed) who have not completed the required basic or biennial refresher training shall have their accounts immediately suspended by the APC. 1-20
True
What must be in place within the activity IOP to ensure that suspended card accounts (due to not having proof of training) are not reinstated without the approval of the APC that suspended the card or a higher-level APC. 1-20
Proper controls
______ should establish local procedures for nominating and appointing APCs, AOs and CHs. 1-20
Activities
T or F. At a minimum, the procedures shall include furnishing each APC, AO and CH with a letter of delegation on command letterhead outlining the duties and responsibilities of the position. 1-20
True
Letters shall also contain the date, time and place indicating when the letter was issued. 1-20
False, letters shall also contain the date indicating when the letter is issued
When a participant of the program leaves the command, what type of letter should be issued and attached to the letter of delegation? 1-20
A letter of rescission
T of F. A letter of delegation shall be used to delegate: Micro-purchase authority ($2,000 for construction) and/or authority to use the purchase card as a method of payment. 1-21
True
T of F. A letter of delegation shall be used to delegate: Authority to use the purchase card as a method of payment for training requests, DD Form 1556, up to $10,000. 1-21
False, authority to use the purchase card as a method of payment for training requests, DD Form 1556, up to $25,000
T of F. A letter of delegation shall be used to delegate: Authority to use the purchase card as payment to Document Automation and Production Service (DAPS) up to $10,000. 1-21
False, authority to use the purchase card as payment to Document Automation and Production Service (DAPS) up to $100,000
T of F. A letter of delegation shall be used to delegate: Orders solely for UNICOR or JWOD products up to $100,000. 1-21
True
T of F. A letter of delegation shall be used to delegate: Authority to issue oral orders up to $2,500 against FSS contracts (BPAs, IDTC, etc.) 1-21
True
T or F. Standard Form 1402 (Certificate of Appointment) shall be used to delegate: Authority for OCONUS purchase CHs to use the purchase card as a procurement method up to $25,000 ($2,000 for construction). 1-21
True
T or F. Standard Form 1402 (Certificate of Appointment) shall be used to delegate: Authority to place calls against Letters of Agreement from $2,500 to $25,000, or against BPAs up to $100,000 ($5 million for commercial items) 1-21
True
T or F. Standard Form 1402 (Certificate of Appointment) shall be used to delegate: Contingency contracting officer’s authority to use the purchase card up to the simplified acquisition threshold. 1-21
True
T or F. Standard Form 1402 (Certificate of Appointment) shall be used to delegate: Authority to place electronic delivery or task orders (e.g. DOD eMall) (against competed IDIQ contracts for orders over the micro purchase threshold but not to exceed $10,000 1-21
False, $100,000
Summary details:
Situation--Letter of Delegation--_______ 1-21
SF 1402
Summary details:
Open market purchases--
Up to $2,500--______ 1-21
Over $2,500
Summary details:
BPA Calls--N/A--____ 1-21
All instances
Summary details:
Training using DD 1556--
Up to $25, 000--____ 1-22
N/A
Summary details:
DAPS--Up to $100,000--____ 1-22
N/A
Summary details:
Issue and place orders against Letters of Agreement--N/A--_____ 1-22
All instances
Summary details:
Delivery order against FSS--
Up to $2,500--______ 1-22
Over $2,500
Summary details:
Orders against IDTC--
Up to $2,500--_____ 1-22
Over $2,500
Summary details:
JWOD/UNICOR products only--Up to $100,000--____ 1-22
Over $100,000
Summary details:
Mix of commercial and JWOD/UNICOR products--up to $2,500--____ 1-22
Over $2,500
Summary details:
Method of payment--all instances--____ 1-22
N/A
Most types of contracting methods requiring a SF 1402 also require what? 1-22
a HCA Delegation of Authority
T or F. Each letter of delegation or SF 1402 shall specify the Single purchase limits for open market (construction not to exceed $2,000). 1-22
True
T or F. Each letter of delegation or SF 1402 shall specify the Government sources of supply. 1-22
True
T or F. Each letter of delegation or SF 1402 shall specify billing cycle limit.
True
T or F. Each letter of delegation or SF 1402 shall specify transaction types authorized (i.e., over-the-counter, telephone orders or via the Internet). 1-22
True
Each letter of delegation or SF 1402 shall specify applicable limits for DD 1556, DAPS, calls against Letters of Agreement or BPAs, orders against IDTCs (e.g. FSS), limits on placing electronic orders against competed IDIQ contracts or any limits on use as a method of payment. 1-22
True
T or F. When leaving the command or no longer part of the Purchase Card Program, a letter of rescission should be issued canceling the delegation letter and/or the SF 1402. 1-22
True
Who shall establish internal management controls to operate, manage and provide oversight of the local Purchase Card Program? 1-22
Commanders, CO's and APC's
Designation of offices/ personnel involved in the Purchase Card Program with specific responsibilities include which personnel? -122
CO/HA, APC, AO, CH, designated billing opffice, and the financial manager/ comptroller
T or F. The IOP should include specific written guidance for the purchase request process (i.e. obtaining funding, approvals). 1-23
True
T or F. The IOP should include specific written guidance for screening/documentation requirements. 1-23
True
T or F. The IOP should include specific written guidance for solicitation and award procedures (as applicable) 1-23
True
T or F. The IOP should include specific written guidance for receipt inspection and acceptance of supplies/
services ensuring proper separation of functions. 1-23
True
T or F. The IOP should include specific written guidance for local procedures for property management. 1-23
True
T or F. The IOP should include specific written guidance for any special processing requirements necessary to ensure appropriate obligation and expenditure of fiscal year end funds. 1-23
True
T or F. The IOP should include specific written guidance for reconciliation, verification and certification of the CH’s statement and AO billing invoice. 1-23
True
T or F. The IOP should include specific written guidance for maintenance and retention of purchase card records. 1-23
True
T or F. The IOP should include specific written guidance for procedures for resolving suspected fraud, abuse or misuse of the purchase card. 1-23
True
T or F. The IOP should include specific written guidance for closure of CH accounts upon transfer, retirement or termination of employment. 1-23
True
T or F. The IOP should include specific written guidance for local training requirements. 1-23
True
T or F. The IOP should include specific written guidance for disciplinary/administrative actions. 1-23
True
Who may be issued a purchase card or be appointed as an AO or APC to accomplish official duties? 1-23
Civilian Government employees, members of the Armed Forces, and foreign nationals (both direct and indirect hires) subject to operational control and day-to-day management and supervision by U.S. civilian and military personnel
T or F. Contractor support shall not allow for changes/ maintenance within the bank system, only data collection/management for the program. 1-24
True
T or F. Each request for a contractor shall be reviewed individually by the Level II APC and major component HA. 1-24
Flase, Level III
Each request for a contractor shall be reviewed individually by the Level III APC and major component HA; and each request would require a Business Case Analysis (BCA) approval at the appropriate local level, requiring what type of approval? 1-24
CO approval
T or F. Each request for a contractor will be formally sent to the Level III APC and major component HA as a formal request with proper signatures on letterhead. 1-24
True
T or F. The alternate APC would need to have direct oversight over the contractor. 1-24
False, the primary APC.
T or F. The contractor must sign a non-disclosure statement. 1-24
True
T or F. Statement of Work (SOW) must be explicit regarding the functions to be performed. 1-24
True
T or F. Contractors acting as Purchase Card Program assistants would be an accountable official (as is required of an APC) 1-24
False, they would not be an accountable official.
T or F. Access to bank electronic applications would be ‘read only’ access so that no maintenance or changes could be made. 1-24
True
T or F. The bank would recognize the Purchase Card Program assistant as a separate role and would not lump the user with APCs/alternate APCs. 1-24
True
Each CH’s delegation of authority document shall include what? 1-24
Each CH’s delegation of authority document shall include limits commensurate with anticipated purchase requirements of the CH
Who should review the CH expenditures for the previous twelve months and select the highest single transaction dollar amount as the limit? 1-25
The APC's
For new accounts for which no spending patterns exist, who should conduct an anticipated spending pattern projection? 1-25
The APC
T or F. In the absence of any other information, a single purchase limit of $5,000 is recommended. 1-25
False, $500 is recommended
T or F. The single purchase limit should be reviewed and adjusted by the APC to ensure compliance with this instruction. 1-25
True
The limit when using the card with government sources of supply or as a method of payment for properly issued simplified acquisitions and electronic orders placed against competed IDIQ contracts is what amount?
$100,000
The limit when using the card with government sources of supply or as a method of payment for properly issued simplified acquisitions and electronic orders placed against competed IDIQ contracts is how much for commercial items including options using the procedures of FAR 13.5 i.e. purchase orders, BPA calls? 1-25
5 million
What is the limit for orders issued against GSA schedule contracts or other IDTC? 1-25
$9,999,900
Single purchase limits will be reviewed by who on a quarterly basis? 1-25
DON CCPMD
T or F. Any CH with a single purchase limit set up within the bank system greater than $250K will be required to provide justification. 1-25
tRUE
T or F. Each LPO and LCPO account delegation of authority shall include their billing cycle limit. 1-25
False, each CH and AO account delegation of authority shall include their billing cycle limit
The billing cycle limit may be assigned in increments of $___ up to $____. 1-25
The billing cycle limit may be assigned in increments of $100 up to $9,999,900
CH and AO billing cycle limits shall be reviewed by who and how often? 1-25
CH and AO billing cycle limits shall be reviewed by the APC, at a minimum, quarterly.
T or F. For existing accounts, the APC should review the CH’s expenditures for the previous twelve months, select the month with the highest expenditures and use that amount. 1-25
True
T or FFor the AO, the APC should add the limits for all CHs and use 5 times that amount for the AO billing cycle limit. 1-25
False, For the AO, the APC should add the limits for all CHs and use 2 times that amount for the AO billing cycle limit.
For new accounts for which there is no spending history, who should conduct an anticipated spending pattern projection and apply the guidelines above to the projection? 1-25
The APC
T or F. In the absence of any other information, a billing cycle limit of $5,000 is recommended for the CH. 1-25
True
T or F. No account shall be set with a single purchase transaction amount greater than $500,000 without written approval from DON CCPMD. 1-25
True
What does MCC stand for? 1-25
Merchant Category Code
Who has blocked purchase card transactions for certain categories of merchants? 1-25
DON
What are some examples of MCC blocks? 1-25
Jewelry stores, drinking establishments, etc.
T or F. MCCs are automatically applied to CH account profiles at the time of set-up. 1-25
True
Who should further limit CH transactions by type of merchant by blocking MCCs that CHs would not have a need to use? 1-25
APC's
What website contains a list of current DON-wide MCC blocks? 1-26
The DON CCPMD website
T or F. To set up an account with the bank, the APC must complete the account setup forms (available on DON CCPMD website). 1-26
True
Who must include the account hierarchy, the default line of accounting and the credit limits? 1-26
The APC
T or F. Setup forms must be signed by the current APC or alternate APC. 1-26
True
If the setup is for a new hierarchy, Level I APC and DON CCPMD approval is required? 1-26
False, Level III
T or F. Prior to setting up an AO or CH account, the APC shall verify that required training and delegations are in order. 1-26
True
T or F. Accounts can also be setup online using CitiDirect. 1-26
True
T or F. Convenience check accounts can be setup online. 1-26
True
T or F. The name on the AO account will be listed in Citibank as the Activity in the first name field of the AO profile as the last name field remains blank. 1-26
True
T or F. The agency/ organization name field will show the name of the person in the AO position. 1-26
True
T or F. It is not possible to have additional lines embossed on the CH plastic. 1-26
False, it is possible.
T or F. The fourth line must be indicated on the CH setup form and should be very clear as to what is to be printed on the plastic. For example: “For Government Use Only,” “ORF Account,” “Tax ID #.” 1-26
True
Who shall ensure, to the maximum extent practicable, that the CH account is suspended at least 30 days (one billing cycle) prior to the projected date of any transfer, retirement or termination. 1-26
The APC
Once the AO has verified that all transactions and payments have cleared the account, who will close the account? 1-26
The APC
T or F. Under no circumstances shall a CH account remain open past the official detachment date of the CH. 1-26
True
T or F. If there are transactions still outstanding, the APC reduces the CH credit limits, as soon as practical, to $1.00 (single and monthly limits) and cuts up the credit cards to avoid any more charges. 1-26
True
T or F. Limiting and cutting up the credit card needs to be done early enough to ensure that all transactions post to the statement and can be certified prior to CH departure. 1-26
True
T or F. Once all transactions have been posted, the LPO closes the CH account and rescinds the delegated authority. 1-26
False, once all transactions have been posted, the APC closes the CH account and rescinds the delegated authority
For an AO account, the Citibank balance must be 1 dollare. 1-26
False, it must be zero.
T or F. If there is an outstanding balance on an AO account, a manual certification will need to occur to balance the account. 1-26
True
T or F. If there is a credit balance, then request a check from Citibank made out to U.S. Treasury and have DFAS apply the money to the lines of accounting that generated the credit as determined by the APC/AO/CH. 1-27
True
T or F. All files shall be turned in to the APC when a CH leaves the command for retention by the APC. This will allow auditors the ability to locate documents after the CH has departed. 1-27
True
Plastic card (and checks if CH has a convenience check) shall not be destroyed. 1-27
Fasle, they shall be destroyed
How often should the APC compare their entire CH listing against the command’s official personnel roster and close any CH accounts not verified by their personnel office? 1-27
At least quarterly
T or F. Components shall take the necessary steps to ensure APCs are notified of personnel changes that would warrant cancellation of charge card authorization. 1-27
True
T or F. At least annualy, the APC shall review AO profiles and accounts. 1-27
False, at least quarterly
T or F. AO accounts shall be closed after all CH accounts under the purview of that particular AO have been closed. 1-27
True
T or F. Ensure that the command’s checkout process does not include a requirement to physically turn in a detaching CHs card before detachment. 1-27
False, ensure that the command’s checkout process includes a requirement to physically turn in a detaching CHs card before detachment.
The APC shall ensure that any CH account that has not been used in the previous _ months or was used less than _ times in the _ months period is closed unless the supervisor submits an acceptable justification to the APC (i.e. contingency or deployed). 1-27
The APC shall ensure that any CH account that has not been used in the previous six months or was used less than 3 times in the six months period is closed unless the supervisor submits an acceptable justification to the APC (i.e. contingency or deployed).
T or F. Account activity will be reviewed as part of the annual review process. 1-27
False, account activity will be reviewed as part of the semiannual review process
T or F. Once the AO has verified that all transactions and payments have cleared the account, the LCPO will close the account. 1-27
False, Once the AO has verified that all transactions and payments have cleared the account, the APC will close the account
T or F. Contingency accounts are normally not active, but can be used if the primary CH’s account is unavailable. 1-27
True
T or F. Designating the account as a contingency account ensures the account is not closed if identified as inactive. 1-27
True
Within the CH profile, what must be inputed in the Discretionary Code 2 field? 1-27
'Contingency'
T or F. The LPO shall ensure that any CH account designated as a contingency account is set to a credit limit of $1.00 (single and monthly limits) until the account is activated for usage. 1-27
False, The APC shall ensure that any CH account designated as a contingency account is set to a credit limit of $1.00 (single and monthly limits) until the account is activated for usage
Contingency cards are included where? 1-27
In span of control requirements (1:7 ratio account to AO)