Part 406 Acquisition

Transcription

1 General Part 406 Acquisition Subpart O Use of Government Fleet Cards This subpart establishes NRCS policies, procedures, and responsibilities for use of fleet charge cards and pool charge cards to fuel and maintain Federal Automotive Statistical Tool (FAST) reportable USDA fleet vehicles (e.g., sedans and trucks herein referred to as fleet vehicles), non-fast-reportable nonfleet vehicles (e.g., aircraft, motorcycles, allterrain vehicles, and boats herein referred to as nonfleet vehicles), and non-fastreportable motorized equipment (e.g., mowers, tractors, snow mobiles, chain saws, generators herein referred to as equipment). It also establishes the requirement for monthly review of fleet card transactions. Local fleet program coordinators (LFPCs) and the duties required of them will herein be referred to as Personal Property Services Branch (PPSB) members to align with the NRCS Administrative Transformation References A. Executive Order 13423, Departmental Regulation (DR) , and Agriculture Property Management Regulation (AGPMR) , AGPMR Advisory 14-03, prescribe the policies and procedures for use of the Government fleet card. B. Regulatory Applicability. Use of the fleet card must be consistent with the Government Charge Card Abuse Prevention Act of 2012, Federal Acquisition Regulation (FAR), Agriculture Acquisition Regulations (AGAR), and the Office of Management and Budget (OMB) Circular A-123, Appendix B January Background A. The Fleet Charge Card Program provides a payment and procurement tool for fuel and services necessary to operate and maintain fleet, nonfleet vehicles, and motorized equipment. The program is the mandatory method of procurement of fuel and maintenance. It reduces administrative costs and allows agencies to procure supplies and services faster through the use of a fleet card. B. Wright Express (WEX) Fleet Charge Cards. WEX fleet credit cards are assigned to NRCS-owned fleet vehicles, nonfleet vehicles, and motorized equipment located and assigned within the continental United States. GSA-leased vehicles will be served with fleet credit cards provided by GSA. Usage of the WEX fleet cards requires that users be assigned a unique driver PIN. C. Citi Bank Fleet Credit Cards. Citi Bank fleet credit cards are assigned to NRCS-owned fleet vehicles, nonfleet vehicles, and motorized equipment located in the Caribbean and Pacific areas. GSA leased vehicles will be served with fleet credit cards provided by GSA. D. Per AGPMR Advisory 14-03, the purchase card may be used for fuel and maintenance in instances where the fleet card is not accepted. All policy and procedures outlined in Title 120, General Manual, Part 406, Subpart C, Use of Government Purchase Cards, must be followed. 406-O.1

2 (1) For the WEX fleet cards, the fleet card must first be declined at the point of sale, and the WEX Pay MasterCard call-in option must be declined. Only when those two instances are met may the purchase card be used for fuel and maintenance of FASTreportable fleet vehicles. (2) For acceptance issues with the Citi Bank fleet credit cards in the Pacific and Caribbean areas, the purchase card may also be used as a backup mechanism for fuel and maintenance. Supervisor approval must be obtained before using the purchase card as a backup payment mechanism for Citi Bank fleet cards Procedures A. Official Use Only. The fleet card is for official Government business only. Under no circumstances may the card be used for personal purchases or as identification for personal purchases. B. Fleet Charge Card Issuance. NRCS offices are to request only one fleet card for each fleet or nonfleet vehicle that requires fuel and maintenance. In order to be assigned a fleet card, the vehicle or nonfleet vehicle must have a license plate. All fleet cards are ordered through the WEX or Citi Bank online systems and are shipped to the PPSB member for further accountability and for distribution. In limited cases, cards may be sent directly to a vehicle location. For example: a vehicle is needed for mission work before a new or replacement card can be ordered and shipped from the PPSB member s location. If there is not a pool card or purchase card available at that vehicles location, a new or replacement fleet card can be sent overnight to that location to put that vehicle into service. C. Pool Cards. The pool card is a fleet card that is not assigned to a specific vehicle. It may be used to purchase fuel, maintenance, and repairs for nonfleet vehicles and motorized equipment. One pool card may be used for multiple items of motorized equipment and nonfleet vehicles housed at one location. The pool card may also be used for fleet vehicles in emergency situations (e.g., pending receipt of a fleet card, or when a purchase card is not available). D. Training. All users of vehicles and motorized equipment must be trained in order to use a fleet card. Only authorized personnel who have completed fleet card training may use a fleet card. (1) All NRCS WEX fleet card users are required to complete Department fleet card training located at This training must be completed within 90 days of receipt of a WEX driver personal identification (PIN) number. Fleet card training will be tracked and reported quarterly with the fleet card scorecard. (2) All PPSB members are required to take the Department fleet card user training. Additionally, PPSB members are expected to participate in agency fleet program coordinator led training as well as PPSB fleet card proficiency training to ensure they can perform the duties specified under their roles. (3) Refresher fleet card user training is required every 3 years and should be completed no later than 3 months after the 3 year requirement. E. Authorized Uses of the Fleet Card. The fleet card is authorized to procure fuel and services necessary to operate and maintain fleet and nonfleet vehicles and motorized equipment. A fleet card should be used only to purchase authorized items for the vehicle to which it is assigned. If purchasing multiple like items, the purchase card should be used. For 406-O.2

3 example, the purchase of one quart of oil for a truck is authorized on that vehicle s fleet card. The purchase of a case of oil, or multiple quarts of oil to service more than one vehicle, should be purchased with a purchase card. (1) The following are examples of authorized fleet card purchases: (i) Fuel (ii) Transmission fluids (iii) Oil, oil filters, and oil changes (iv) Windshield wiper blades (v) Windshield washer fluid (vi) Antifreeze (vii) Car washes and cleaning (viii) Maintenance (ix) Tires and tire repairs (x) Tie-down fees (xi) Landing fees (xii) Deicing fees (xiii) Docking fees (xiv) Auto body work (xv) Limited roadside assistance (e.g., towing, battery charging, tire changing, winching, fuel delivery) (xvi) Vehicle battery (xvii) Brake fluid (xviii) Air filter (xix) Spark plugs (xx) Fan and generator belts (xxi) Light bulbs (xxii) Replacements for existing, worn out floor mats new floor mats for newly arrived vehicles should be purchased with a purchase card (xxiii) Fuses (xxiv) Spare keys (2) The following are examples of fleet related purchases that should be made using a purchase card: (i) Tools (ii) Trailer hitches (bumper or gooseneck) and any associated wiring, extended mirrors, and installation (iii) Maps (iv) Fire extinguishers (v) First aid kits (vi) Tool boxes includes installation (vii) Purchase of new trailers (viii) Tie-down or ratchet straps (vix) License plates includes new and replacement plates (x) Emergency roadside kits (xi) Hydraulic bottle jacks or hydraulic floor jacks (xii) Propane or fuel used to heat a facility like a greenhouse or seed dryer considered the same as a utility (xiii) Tolls and toll passes (xiv) Snow scrapers (xv) Jumper cables 406-O.3

4 (xvi) Storage fees for vehicles stored at vendors awaiting repair (xvii) Sand bags for driving in snow or other adverse conditions (xviii) No smoking and seatbelt stickers (xix) Giddings/probe repairs (xx) Transport of vehicles when shipping long distances (3) The following are examples of fleet related purchases that are authorized purchases using a pool card: (i) Trailer maintenance (ii) Trailer tires (iii) Trailer wiring assembly (iv) Bulk fuel (v) Fuel for new vehicles when an assigned fleet card is not available. The pool card may be used to fuel more than one vehicle in the event that multiple new vehicles have arrived at a location and need to be fueled. The pool card usage log must be completed with explanation for this usage. (vi) Fuel for commercially rented vehicles; note: vehicles rented using the GSA Short Term Rental Program will have a fuel card provided. (vii) Propane used to fuel forklifts or similar equipment (viii) Fuel and maintenance for chainsaws, lawnmowers, and nonhighway motorized equipment like snow machines and excavators. (ix) Fuel for giddings/probes F. Unauthorized Uses of the Fleet Card. Use of the fleet and pool charge cards is strictly prohibited for the following. Use of the fleet card for these types of purchases may result in disciplinary action. (1) Purchase food, beverages, or other miscellaneous personal items (2) Pay any State or local traffic or parking violations that are obtained while driving a motor vehicle owned or leased by the Government; these are the responsibility of the employee. (3) Parking at airports or hotels all parking expenses while on official business should be charged with a travel card (4) Vehicle lockout services (5) Purchases exceeding the micropurchase limit of $3,000 that are not approved by the PPSB member and a warranted contracting officer G. Approvals. The use of an AD-700 for fleet purchases under $3,000 is not required. Supervisors may use the AD-700 for fleet purchase requests and approvals under $3,000 per local policy requirements. (1) Authorized fleet purchases under $3,000 are preapproved by the agency. (2) Fleet card purchases over $3,000 require approval by both the PPSB member and a warranted contracting officer. An AD-700 is required for these purchases. H. Card Receipt. All new fleet cards are sent to the PPSB member for distribution. In limited situations, a fleet card may be sent directly to a vehicle location. I. Card Distribution. PPSB members are responsible for fleet card distribution. Each team member will maintain documentation of receipt and distribution of cards. J. Lost or Stolen Cards. The agency is responsible for all charges made until a card is reported lost or stolen. (1) Immediately report lost or stolen WEX fleet cards to the PPSB member. 406-O.4

5 (i) During normal business hours, drivers should immediately report a lost or stolen WEX fleet card to a PPSB member for resolution. (ii) To prevent fraud during off hours and weekends, drivers should call the WEX customer service number to report the card lost or stolen at (866) (iii) PPSB members will immediately reissue the lost or stolen card in WEX Online. This function will immediately terminate the card to prevent fraud. The new, reissued card will maintain the tag number of the vehicle assigned. The accounting information will change to prevent fraud. (2) Report damaged WEX fleet cards to the PPSB. The NDST member will reissue the card. The damaged card will remain active for 14 days to allow time for the arrival of a new card. (3) During normal business hours, immediately report any lost, stolen, or damaged Citi Bank fleet credit cards to a PPSB member. The PPSB member will immediately update the account and reissue another Citi fleet card. (4) During off hours and weekends, immediately report any lost or stolen Citi Bank fleet credit cards to Citi Bank at (800) , or by using the number on the back of a different Citi Bank fleet card. (i) The automated message will ask for the 16-digit account number. If the card is lost or stolen, the driver will not know this. Wait for the automated message to cycle through the account number request three times, and the caller will be prompted to hold for customer service. (ii) Once speaking to a customer service representative, the driver will be asked to provide the name on the fleet card account. For NRCS Citi Bank fleet cards, the first and last name of the account is the letter and numbers for the tag number. For example, the account name for example license plate number A is: first name is A, last name is (5) All lost or stolen Citi Bank fleet card accounts must be monitored by the PPSB for 1 month to ensure all charges are valid. The WEX fraud prevention team will monitor lost or stolen WEX accounts. (6) If a lost fleet card is subsequently found, it must be destroyed and written notification must be sent to the PPSB member that the card was found and destroyed. (7) correspondence can serve as the written confirmation that a card has been reported lost or stolen or destroyed. K. Card Disposal. When a vehicle is disposed and the fleet card is no longer needed, the PPSB member must terminate the account in the bank online system, ensure the card is destroyed, and maintain documentation that the card is destroyed. correspondence can serve as the documentation that a card is destroyed. L. Receipts (1) WEX Fleet Credit Card Transactions (i) Vendors who use the WEX network of closed-loop reporting send electronic transaction information to include detailed product information, driver PIN, and mileage as well as date, time, and location of transactions to WEX online reporting. (ii) AGPMR Advisory provides guidance on the use of WEX fleet cards. At a minimum, an electronic record of each transaction must be maintained on file for a period of at least one calendar year. The AFPC will maintain electronic WEX transaction records for a period of one calendar year. All required paper receipts listed in L1 (iii) below must be kept on file for a period of one calendar 406-O.5

6 year. Paper receipts may be scanned into an electronic format for storage requirements. (iii) The following applies to WEX fleet card paper receipt retention: Paper receipts must be maintained for all pool card transactions, and all ATV/UTV and equipment transactions. - Examples include bulk fuel purchases; ATV/UTV and equipment fueling and maintenance; combine, tractor, or excavator fueling or maintenance; and soil probe maintenance. Paper receipts must be maintained for all nonfuel transactions for all highway vehicles. - Examples include purchase of tires, maintenance and body work, inspections, oil and oil changes, and windshield replacement. Paper receipts must be maintained for all instances of purchase card use as a backup for the WEX card in instances where the WEX card is declined and the WEX Pay call in feature is not accepted. Paper receipts are not required for WEX fuel transactions above $5 for all highway vehicles assigned a WEX fleet card. Paper receipts for WEX fuel transactions under $5 are required for audit purposes. PPSB members, working with supervisors, may mandate that paper receipts be maintained for all transactions based on negative audit findings or for instances of fraud, waste, abuse, or misuse of fleet credit cards. - Examples include fueling ATVs/UTVs with highway vehicle fleet cards, fueling multiple vehicles with a single fleet card, fueling a highway vehicle with a fleet card not assigned to that vehicle. (2) Citi Bank Fleet Credit Card Transactions (i) Citi Bank fleet credit cards are not on a closed loop network of vendor reporting like WEX fleet credit cards. Citi Bank fleet cards are similar to the previous US Bank Visa fleet credit cards. Citi Bank electronic records only provide the location and amount of purchase, not the detailed product information and driver PIN information provided by WEX Online. (ii) All paper receipts from Citi Bank fleet credit card transactions must be maintained and made available for audit purposes. (3) If a paper receipt is not available the fleet card user must create a missing receipt document that contains the following information at a minimum: (i) License plate number (ii) Odometer reading (iii) Itemize list and description of purchase; if fuel is purchased, include number of gallons, cost per gallon, and type of fuel (e.g., Super Unleaded, Unleaded, or E85) (iv) Place of purchase (v) Total cost (vi) Time and date of purchase (4) All receipts must be maintained for at least one calendar year. Paper receipts may be converted into an electronic format (e.g., scanned and saved to an electronic file) for retention purposes. M. Usage Logs (1) Users of NRCS-owned or leased vehicles and motorized equipment are required to keep a usage log to ensure a reasonable audit trail documenting vehicle and 406-O.6

7 equipment use. At a minimum, the logs must capture the following information, if applicable, to be considered a reasonable audit trail: (i) Date of use (ii) Vehicle or equipment license plate number (iii) Driver or fleet card user (i.e. complete first and last name printed legibly) (iv) Before and after use odometer reading, when applicable (v) Whether the vehicle was refueled (yes or no) (vi) Whether maintenance or repairs were performed (yes or no) (2) A usage log should be created for a pool charge card that services multiple nonfleet vehicles and motorized equipment. This is needed to demonstrate a reasonable audit trail. Multiple nonfleet vehicles and motorized equipment should be captured on a pool card usage log. At a minimum, the pool card usage log should capture the following information to be considered a reasonable audit trail: (i) Date of use (ii) Vehicle or equipment license plate number, if applicable (iii) Driver or fleet card user (i.e. complete first and last name printed legibly) (iv) Before and after use odometer or hour meter reading, when applicable (v) Whether the vehicle was refueled (yes or no) (vi) Whether maintenance or repairs were performed (yes or no) Roles and Responsibilities A. There are certain roles and responsibilities associated with managing fleet charge cards starting at the Department level and working through the agency level to the individual fleet charge card user. (1) Office of Procurement and Property Management (OPPM). OPPM is responsible for the Fleet Charge Card Program. OPPM will (i) Issue departmental policy and procedures on the program. (ii) Promote standardization, centralization, and automation of the program throughout USDA. (iii) Submit reports as appropriate to OMB on USDA s fleet card program. (iv) Assign the departmental program manager (DPM) to manage the program at the departmental level. (2) DPM. The DPM is responsible for overall management of the Fleet Charge Card Program at USDA. The DPM will (i) Provide guidance and oversight for the program. (ii) Issue departmental policy and procedures on the use of the fleet charge card. (iii) Establish department wide operating limits for the fleet charge card. (iv) Submit an annual report on the overall status of the program to the USDA. (3) Agency Head. Agency heads will ensure that departmental and agency policies and procedures on the use of the fleet charge card are adhered to within their respective agencies. For NRCS, this has been delegated to the Chief Procurement Officer or his or her designee. Agencies must ensure their employees receive information on how the fleet charge card program operates and proper use of the fleet charge card. The agency head or his or her designee will (i) Designate employees and alternates to act as agency fleet program coordinators (AFPCs). These individuals will administer the program for their agency. (ii) Ensure AFPCs are trained and aware of their program responsibilities 406-O.7

8 (iii) Ensure that agency policies and procedures are in place for approving maintenance and repair purchases over $3,000. (4) AFPC. An AFPC and an alternate AFPC are designated for NRCS and are responsible for managing the program. The AFPC and alternate are the liaisons between the agency and the DPM. AFPC duties include, but are not limited to, the following: (i) Providing oversight of the fleet charge card usage (ii) Implementing agency-unique fleet policies and procedures as needed (iii) Participating in meetings with the DPM to address fleet charge card issues and problems (iv) Ensuring that PPSB members are trained on the WEX Online and Citi Bank online (v) Establishing PPSB members in both banks online systems (vi) Ensuring that PPSB members are certified on the policies and procedures associated with the fleet charge card program (vii) Working with PP NDST members to handle the day-to-day fleet card operation (viii) Ensuring users maintain use logs for all fleet and motorized equipment usage (ix) Providing the DPM with an annual report of fleet card usage after review by the Chief Procurement Officer. (x) Ensuring that agency policy and procedures are followed regarding purchases for maintenance or repairs over $3,000 (5) State Conservationist (STC), Regional Soils Directors, Centers Directors and the Director of Plant Materials Centers. Ensure that departmental and agency policies and procedures on the use of fleet card are adhered to within their respective areas. The STC, Regional Soils Directors, Centers Directors, and the Director of Plant Materials Centers must (i) Designate local points of contact to interact with and provide information for PPSB members to facilitate personal property services. (ii) Ensure fleet card users are trained and aware of their responsibilities when using fleet credit cards. (iii) Ensure that agency policies and procedures are in place for approving maintenance and repair purchases over $3,000. (6) PPSB. The PPSB is responsible for managing the day-to-day operations of fleet card usage for the states and operational units they are servicing. The PPSB members work directly with the local points of contact and fleet card users, ensuring that they have adequate training on the proper use of the fleet card. Additional PPSB duties include, but are not limited to, the following: (i) Establishing and updating fleet cards in both WEX Online and Citi Bank online (ii) Establishing driver PINs in WEX Online (iii) Notifying the bank immediately of any lost, stolen, and damaged fleet cards (iv) Notifying the bank of any discrepancies (e.g., disputes) regarding charges posted to an account (v) Monitoring fleet card purchases for fraud, waste, and abuse (vi) Ensuring fleet card users are following agency and State policy and procedures for maintenance and repair purchases over $3,000 (vii) Ensuring users maintain a use log or record for all fleet usage (viii) Reporting any misuse, fraud, or abuse of the fleet card to the appropriate officials (ix) Ensuring users retain required receipts and required electronic records for all fleet card transactions for a minimum of 1 calendar year 406-O.8

9 (x) Submitting monthly fleet card reports to the AFPC (7) Fleet Card Users. Fleet card users utilize the fleet card to fuel or maintain NRCS vehicles and motorized equipment. Responsibilities of the fleet card user include (i) Completing department training regarding fleet card usage (see section D(1) for a training link) (ii) Maintaining the vehicle or motorized equipment usage log for every instance of vehicle or equipment use. (iii) Maintaining the pool card usage log when appropriate. (iv) Entering accurate mileage at the fuel pump when prompted. (v) Maintaining paper receipts given the following conditions: Keep all fuel receipts under $5 for highway vehicles. Keep all non-fuel receipts for highway vehicles. Keep all receipts for ATV/UTV and pool card transactions to include purchases of bulk fuel. No receipts for fuel transactions for highway vehicles over $5. This may be reinstated in cases of misuse or abuse of the fleet credit card. (vi) Creating a missing receipt document for any receipt that was not obtained from a vendor. (vii) Submitting required receipts for all purchases made with a fleet card. (see subsection v above) (viii) Ensuring the fleet card is secure at all times. (ix) Requesting sales tax exemption on all fleet purchases except where fuel is purchased at the pump. Sales tax exemption request must be made before services are rendered or products obtained. Verify the Government s tax exemption or discount status with the vendor prior to payment or at the point of sale. (See Special Instructions part B Sales Tax). For more information on sales tax please visit: (x) Recovering state and local sales tax paid on any fleet purchase except for fuel transactions paid at the pump Internal Control Requirements A. Monitoring. Oversight of the fleet card program is essential to ensure that Government funds are used appropriately to prevent waste, fraud, and abuse and to ensure that the NRCS fleet is effectively managed through correct fuel purchases, regular maintenance, and costeffective repairs. OMB Circular A-123, Appendix B, dated January 15, 2009, requires agencies to implement management controls, policies, and practices for ensuring appropriate charge card usage. Usage monitoring, review of dormant accounts, and annual reporting are examples of mechanisms NRCS employs as part of its oversight process. (1) WEX Fleet Charge Card Monitoring. The AFPC and PPSB members monitor fleet card transactions through the WEX Online system. The AFPC and PPSB members conduct a physical review of transactions that meet established criteria and populate on monthly WEX online reports. Fleet card users must provide information requested by the AFPC, PPSB members, Office of the Inspector General (OIG), or any other duly authorized individual or organization regarding questionable transactions. (i) The PPSB members are expected to monitor, on a monthly basis, WEX fleet card transactions within their areas of responsibility. 406-O.9

10 (ii) In order to maintain a reasonable audit trail for WEX fleet card transactions, usage logs, paper receipts, and electronic transaction records must be maintained in accordance with section , paragraphs L and M. (iii) WEX offers comprehensive reporting tools that provide automated analysis and review of 100 percent of all fleet card transactions. Report templates are created by the AFPC and shared with all PPSB members through WEX Online. The shared reports automatically query WEX fleet card transactions for various transaction types and conditions. (iv) To complete the monthly review, PPSB members are required to analyze the results of the following AFPC created WEX reports: Fuel Transactions Over $125 Looking for vehicles fueling over fuel tank capacity or bulk fuel purchases Over Three Transactions in a Day Reviewing card authorization activity Transactions over $3,000 Report to notify PPSB of transactions over the micropurchase threshold and to ensure card users have the appropriate approvals Nonfuel Transactions Review of all nonfuel transactions for unauthorized fleet type purchases and instances of sales tax paid Fuel Transactions Under $5 Monitoring for fueling of ATVs or fueling containers with highway vehicle fleet cards or other suspicious, low-dollar fueling events Declined Transactions Report Monitor for declined activity for unauthorized purchases or vendors NRCS Authorization Profile Assignment Reviewed to ensure all cards are in the NRCS Standard Authorization Profile (v) The monthly review consists of the PPSB members first reviewing the detailed WEX transaction reports that are generated online. All electronic transaction records listed in the reports will be reviewed. Only receipts or logs from suspicious transactions, or transactions that may require further review will be requested from fleet card users. For some monthly reviews, this may mean that the PPSB or AFPC will not require nor request any receipts or usage logs from card users. (vi) The monthly review must be recorded using the Monthly Fleet Card Audit tool no later than the 15th of the month following the month reviewed. The Monthly Fleet Card Audit tool is a Microsoft Access database application which PPSB members download from the PPSB SharePoint site. Only PPSB members and the AFPC have access to the tool. (vii) PPSB members may request only usage logs for a monthly review. Usage log review consists of reviewing usage logs for consistent use, completeness and legibility, mileage, and vehicle or equipment utilization. (viii) The PPSB member will investigate transactions and determine if there is any fraud, waste, or abuse that must be addressed. (ix) If any fraud, waste, or abuse is found during the review, the PPSB member will report this to the card user s supervisor and human resources to determine any administrative or corrective action. (x) See the following link for more information on OMB Circular A-123, Appendix B requirements: 406-O.10

11 ulars_pdf/a123_appendix_b.pdf (2) Citi Bank Fleet Charge Card Monitoring. The PPSB members assigned to monitor the Pacific and Caribbean Areas and the AFPC monitor fleet card transactions through the Citi Bank online system by statistical sampling of transactions along with conducting a physical review of selected samples. Fleet card users must provide information requested by the AFPC, LFPC, Office of the Inspector General (OIG), or any other duly authorized individual or organization regarding questionable transactions. (i) PPSB members are expected to monitor, on a monthly basis, fleet card transactions within their locations to identify questionable transactions. (ii) In order to maintain a reasonable audit trail of fleet card use, usage logs and receipts must be maintained in accordance with section paragraphs L and M. (iii) The monthly review must be recorded using the Monthly Fleet Card Audit tool no later than the 15th of the month following the month reviewed. The Monthly Fleet Card Audit tool is a Microsoft Access database application which PPSB members download from the PPSB SharePoint site. Only PPSB members and the AFPC have access to the tool. (iv) To complete the monthly review, PPSB members are required to analyze the results of the following reports in Citi Bank Custom Reporting System: All Transactions Report Declined Authorization Report (v) PPSB members must review the receipts and logs for 40 transactions each month. If the area of responsibility has not made 40 transactions for the month, the PPSB member will review all receipts and logs for those transactions made for the month. If the risk of error, fraud, and misuse decreases, the number of transactions to review may be lowered and the LFPCs will be notified of the revised amount at that time. (vi) The PPSB member will determine from the All Transactions Report which transactions to review. Any questionable transaction, such as very low or very high dollar amounts, unusual vendors, questionable descriptions of purchases, etc., should be reviewed. The PPSB member will investigate these transactions and determine if there are any fraud, waste, or abuse issues that must be addressed. (vii) If any fraud, waste, or abuse is found during the review, the PPSB member will report this to the card user s supervisor and human resources to determine any administrative or corrective action. (viii) See the following link for more information on OMB Circular A-123, Appendix B requirements: ulars_pdf/a123_appendix_b.pdf (3) Inactive Accounts. PPSB members must review accounts at least annually to determine whether inactive accounts should be terminated. The review must be done by December 31 and provide a justification to the AFPC as to why the account should remain active. (4) Quarterly AFPC Reporting (i) WEX Quarterly AFPC Reporting. The AFPC will review the Monthly Fleet Card Audit tool submissions quarterly to ensure the PPSB members are correctly reviewing required reports. This will require ensuring all transactions have been 406-O.11

12 recorded as reviewed. The AFPC will ensure all reported fraud, waste, or abuse has been properly documented and resolved in accordance with OMB Circular A-123 Appendix B. (ii) Citi Bank Quarterly AFPC Reporting. The AFPC will review the All Transactions Report for the quarter being reviewed for any suspicious or questionable purchases. The AFPC will review the Monthly Fleet Card Audit tool to review PPSB submissions. If it is determined that there is fraud, waste, or abuse, the AFPC will contact the agency head or his or her designee. The AFPC will ensure all reported fraud, waste, or abuse has been properly documented and resolved in accordance with OMB Circular A-123 Appendix B. (5) Annual AFPC Reporting. In addition to routinely monitoring fleet card usage, the AFPC will submit annual reports to the DPM about the Fleet Charge Card Program. The following information must be included in the reports: (i) The total number of instances of inappropriate use of the fleet card, including actions taken by the agency in handling misuse or abuse cases. Instances should not be grouped, and a response must be provided for each finding. (ii) Suggestions on improving the fleet card program. (iii) Future bank fixes or enhancements. B. Administrative Actions. To protect the Government s interest, ensure effective vehicle management, and prevent waste, fraud, and abuse throughout the program, card users must adhere to the established internal controls. (1) Appropriate administrative and disciplinary actions must be properly considered and imposed for fraud and other abuse of a fleet card. (2) Questionable fleet card transactions must be reviewed to determine if the PPSB member needs to dispute the transaction with the bank. These include, but are not limited to, unauthorized purchases and duplicate charges. Card users must assist in resolving any erroneous charge. (3) If a fleet card user makes an improper purchase, the card user may be subject to disciplinary action. (4) If an official approves an improper use of a fleet card, or directs a fleet card user to purchase items or services that are subsequently determined to be improper, the official may be subject to disciplinary action Special Instructions A. Transactions Greater Than $3,000. Fleet card transactions for maintenance or repairs costing more than $3,000 must be approved by the PPSB and a warranted contracting officer. An AD-700 is required for all fleet charge card transactions over $3,000 and must be recorded appropriately in IAS by a warranted contracting officer. The fleet card is to be used as the payment method to ensure proper tracking of the fueling, maintenance, and repair. B. Sales Tax. Use of GSA SmartPay2 Fleet Cards enables NRCS to conveniently obtain fuel and maintenance for vehicles and equipment, as well as manage tax recovery efforts and collect detailed fleet management data. WEX fleet credit cards and Citi Bank fleet credit cards, which have the SmartPay2 logo are centrally billed accounts (CBAs) and should be exempt from State tax assessment. CBAs are billed directly to the Federal Government and are exempt from State sales taxes in every state. Individually billed accounts like travel cards with the SmartPay2 logo are billed to the customer, and therefore may be subject to some sales or convenience taxes. 406-O.12

13 (1) Sales tax paid on fleet card transactions in all states must be removed from the transaction. If sales tax is paid, fleet card users must begin the reclamation process as soon as possible. Do not accept cash reimbursement from a vendor. (i) Hawaii. As of June 30, 2013, the Federal Government is exempt from tax on goods/tangibles when using the fleet card. The Federal Government will be charged tax on services. (ii) Arizona Arizona Transaction Privilege Tax Ruling. Utilities, telecommunications, job printing, commercial lease, transient lodging, restaurant, and prime contracting are subject to transaction privilege tax. Centrally billed accounts (WEX fleet cards) are exempt from this tax. (2) If a vendor does not accept the charge card and in instances where the WEX card is not accepted and the WEX Pay MasterCard transaction is declined, work with your PPSB member to identify another vendor who does accept the card. (3) Verify the Government s tax exemption or discount status with the vendor prior to payment, or at the point of sale. (4) For more information on sales tax please visit C. Prepaying for Fuel. If a vendor requires prepayment for fuel transactions, be sure to prepay a low enough amount of fuel as to not fill the tank before reaching the prepaid dollar amount. Do not accept cash reimbursement for overpaying the fuel purchase. Ask the vendor to reimburse the fleet credit card. If the vendor refuses to reimburse the fleet credit card, do not accept cash. Contact your supervisor or PPSB member for resolution. D. The fleet card user must make all reasonable efforts to find the nearest location accepting the fleet card when purchasing fuel and maintenance on NRCS vehicles and motorized equipment. In addition, the fleet card user must check to see if the vehicle is an alternative fuel vehicle (AFV). If so, the card user should use an alternative fuel station that is reasonably available (within a 15-minute drive or 5 miles one way). To help locate alternative fueling stations, card users should access the Alternative Fueling Station Locator Web site at E. Ethics Requirements. The Office of Government Ethics, Standards of Conduct for Executive Branch Employees, applies to fleet card use. Fleet card users with questions regarding the propriety of a particular transaction should consult their supervisor or PPSB representative for guidance and assistance prior to making the purchase. F. Business Size. Purchases not exceeding $3,000 may be made from any size business using the fleet charge card in accordance with FAR (b)(1). However, it is USDA policy to increase opportunities for small, small disadvantaged, women-owned, and servicedisabled-veteran-owned businesses whenever possible. G. Environmentally Preferable Products and Services. It is the policy of USDA to acquire environmentally preferable products and services, including bio-based products, in accordance with the goals and policies of Executive Order 13423, dated January 24, This preference extends to acquisitions at all dollar levels, including those accomplished using a fleet card Separation of Duties A. NRCS is required to implement internal controls to mitigate the risk of fraud, misuse, and abuse in accordance with the guidance in OMB Circular A O.13

14 B. Key duties and responsibilities must be segregated among different roles to reduce the risk of error or fraud. This includes separating the responsibilities for authorizing fleet card purchases, processing transactions, and reviewing transactions. For fleet cards, the required segregation of duties is accomplished as follows: (1) Section G of this subpart states who is authorized to approve fleet card purchases. (2) Fleet card purchases are processed by fleet card users or warranted contracting officers, depending on the dollar amount. (3) Fleet card transactions are reviewed on a monthly basis by the PPSB and on a quarterly basis by the AFPC. C. PPSB members who are also card users may not manage or perform oversight duties for their own fleet card transactions. In order to ensure adequate internal controls, charges made to a fleet charge card by a PPSB member must be reviewed and approved by another PPSB member or a supervisor. 406-O.14