Subject: Internal Controls for the Purchase Card Program.OFFICE OF THE UNDER SECRETARY OF DEFENSE 3000 DEFENSE PENTAGON WASHINGTON, DC 20301-3000 DEC 08 2005 MEMORANDUM FOR SECRETARIES OF THE MILITARY DEPARTMENTS ATTN ATTN Attention ATTN Atentamente (Spanish) ATTN A l'attention de (French: Care of) : ACQUISITION EXECUTIVES DIRECTORS OF THE DEFENSE AGENCIES SUBJECT: Internal Controls for the Purchase Card Program Over the past eighteen months, a working group consisting of representatives from the Comptroller, Acquisition, Inspector General, and Military Department audit communities developed a portfolio of internal controls which are appropriate to safeguard Government resources and manage risk associated with the use of the Government Purchase Card within the Department. The Government Accountability Office The Government Accountability Office (GAO) is the audit, evaluation, and investigative arm of the United States Congress, and thus an agency in the Legislative Branch of the United States Government. , the Inspector General, and General Counsel (both Acquisition and Logistics and Fiscal) have concurred on the attached controls. Please ensure that your purchase card guidance and instructions are consistent with these controls. These controls must be resident in any electronic capability used within the Department to reconcile, certify cer·ti·fy v. cer·ti·fied, cer·ti·fy·ing, cer·ti·fies v.tr. 1. a. To confirm formally as true, accurate, or genuine. b. , and pay purchase card invoices. Further, these controls clarify the joint Ulnder Secretary of Defense for Acquisition, Technology & Logistics/Comptroller policy memorandum of November 27, 2002, by establishing both the criteria and process for DoD Components who wish to use an application other than the proprietary bank systems to settle purchase card invoices. Components who wish to nominate nom·i·nate tr.v. nom·i·nat·ed, nom·i·nat·ing, nom·i·nates 1. To propose by name as a candidate, especially for election. 2. To designate or appoint to an office, responsibility, or honor. electronic solutions other than use of the existing banks systems must work with the Purchase Card Program Office, the Office of the DoD Comptroller, and the appropriate Component-level audit community to validate that all of the required internal controls in the proposed alternate capability are resident and operate properly in a limited production environment before a full implementation is approved. If investments are required that necessitate ne·ces·si·tate tr.v. ne·ces·si·tat·ed, ne·ces·si·tat·ing, ne·ces·si·tates 1. To make necessary or unavoidable. 2. To require or compel. approval by an investment review board, then that process must be fulfilled ful·fill also ful·fil tr.v. ful·filled, ful·fill·ing, ful·fills also ful·fils 1. To bring into actuality; effect: fulfilled their promises. 2. concurrent with this policy. Systems that satisfy this validation process will be authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: by the Director of Defense Procurement The fancy word for "purchasing." The procurement department within an organization manages all the major purchases. and Acquisition Policy to settle purchase card invoices. However, organizations who are not now on-line and do not nominate electronic solutions (and successfully conclude the validation process) will be required to use the bank electronic certification/payment tool. Organizations that decide to pursue an alternate electronic solution should follow the procedural guidance detailed in the Charge Card Guidebook posted at the Purchase Card Program Office web site: <http://www.purchasecard.saalt.army.mil>. The point of contact on this matter is Mr. Dennis Hudner. He can be reached at 703-681-3315. Teresa McKay Deputy Chief Financial Officer Attachment: As stated Domenic C. Cipicchio Acting Director, Defense Procurement and Acquisition Policy Editor's note Editor's Note (foaled in 1993 in Kentucky) is an American thoroughbred Stallion racehorse. He was sired by 1992 U.S. Champion 2 YO Colt Forty Niner, who in turn was a son of Champion sire Mr. Prospector and out of the mare, Beware Of The Cat. Trained by D. : View the attachment to this memorandum at <http://www.acq.osd.mil/dpap/policy/policyvault/2005-1332-DPAP.pdf>. |
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