Subject: Internal Controls for the Purchase Card Program.
3000 DEFENSE PENTAGON
WASHINGTON, DC 20301-3000
DEC 08 2005
MEMORANDUM FOR SECRETARIES OF THE MILITARY DEPARTMENTS ATTN: 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 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, 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 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 approval by an investment review board, then that process must be fulfilled concurrent with this policy.
Systems that satisfy this validation process will be authorized by the Director of Defense Procurement 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.
Deputy Chief Financial Officer
Domenic C. Cipicchio
Acting Director, Defense Procurement and Acquisition Policy
Editor's note: View the attachment to this memorandum at <http://www.acq.osd.mil/dpap/policy/policyvault/2005-1332-DPAP.pdf>.
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|Title Annotation:||Policy & Legislation|
|Author:||Cipicchio, Domenic C.|
|Publication:||Defense AT & L|
|Date:||Mar 1, 2006|
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