(a) Delegation of micro-purchase authority.
(i) Principal Assistants Responsible for Contracting (PARC) at the Army Commands, the Army Service Component Commands, the Direct Reporting Units are responsible for the overall implementation and administration of the purchase card program at their subordinate commands and installations.
(ii) Installation Commanders or activity directors shall appoint the purchase card approving official as the certifying officer for purposes of certifying payments to the paying office (disbursing officer) for purchase card issuer invoice. Certifying officers are pecuniary liable for erroneous payments resulting from the performance of their duties in accordance with Title 31, United States Code, section 3328.
(iii) Chiefs of Contracting Offices shall:
(A) Develop internal operating procedures and incorporate appropriate controls in the Command or Installation Internal Control Program. Procedures and controls shall be written to place minimum burdens on cardholders while still maintaining the integrity of the program.
(B) Designate an Agency/Organization Program Coordinator (AOPC).
(C) Issue delegations of authority to cardholders. (This authority may be redelegated in writing to the AOPC.)
(D) Approve training course content and instructor qualifications.
(E) Ensure prescribed training of cardholders and approving officials.
(F) Ensure appropriate functional participation in the development and administration of the program (e.g., Finance and Accounting, Director of Logistics, Director of Public Works, Legal, etc.).
(G) Perform oversight reviews on approving officials to ensure cardholder adherence to policy and procedures. Reviews will be conducted not less frequently than annually. Accounts with significant dollar or transaction volume should be reviewed on a more frequent basis.
(H) Ensure convenience checks are safeguarded to ensure good stewardship, discourage, and detect fraudulent actions with the checking accounts. Checking accounts must be audited on a quarterly basis. Audits will be conducted by a duly appointed, disinterested third party under the guidance of the local internal Review (IR activity). The quarterly audit requirement must be added to the management control checklist of Government Purchase card.
(iv) Agency/Organization Program Coordinators (AOPC) shall:
(A) Serve as the purchase card focal point at each activity.
(B) Establish, and maintain current, cardholder and approving official accounts.
(C) Coordinate with resource managers, spending limits and finance and accounting data to be used in establishing cardholder and approving official accounts.
(D) Ensure accounts are not established or billing officials certify invoices until required letters of delegations and appointment letters have been issued to cardholders and approving officials /certifying officials.
(v) Approving officials shall:
(A) Ensure that the transactions meet the legal requirements for authorized purchase card purchases.
(B) Ensure that adequate documentation is available for individual transactions.
(C) Ensure the facts presented in documents for payment are complete and accurate.
(D) Take appropriate action to prevent two or more payments for the same transaction.
(E) Ensure proper implementation of dispute procedures when transactions are questioned.
(F) Provide copy of certifying officer appointment letter with signature card to the AOPC.
(G) Certify and forward the official invoice to the paying office within 5 days of receipt. Electronic invoice is considered received on the first day following the end of the billing cycle.
(vi) Cardholders shall:
(A) Reconcile purchases actually made within 3 working days of receipt of their monthly statement of account. Electronic statement of account is considered received on the first day following the end of the billing cycle.
(B) Maintain a log of purchases. The log shall be the cardholder log within the banks electronic access system.
(c) Training Requirements.
(i) Cardholders and billing/certifying officials shall receive training and orientation covering the use of the card prior to being delegated authority under the program. The Defense Acquisition University purchase card course is mandatory for all cardholders and billing officials. Training may be locally developed, but specifically designed to cover federal, defense, and departmental regulations, policies and procedures pertaining to micro-purchases and simplified acquisition procedures, as applicable. Orientation shall address GSA, Card-Issuing Bank and installation-unique policies.
(ii) Cardholders shall receive procurement ethics training. Cardholders and Certifying Officials shall be advised of pecuniary liability under the program for certifying and accountable officials
(iii) The Chief of the Contracting Office may require additional training depending on the thresholds and circumstances established for the card’s use.
[AFARS Revision #21, dated May 22, 2007]
