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11-11. Violation and Disciplinary Categories
a. Identifying the Violation. DoD’s GPC Disciplinary Category Definitions Guidance is a helpful resource when identifying the type of violation in situations of card misuse and abuse. See Table 11-4 below.
b. A/OPCs should be alert to the following indicators of possible fraud, waste, or abuse:
1) Repetitive buys from the same merchant
2) Lack of documentation for a purchase
3) Failure to safeguard cards and account numbers
4) CH or BO authorizing the use of their cards by others
5) Inadequate oversight by BOs and agencies
6) Payments made for items not received
7) Split purchases to avoid spending limitations
8) Lack of accounting for items requiring accountability
9) Payment delinquencies incurring interest penalties
10) Approval of a CH’s statement of account by someone other than the CH or BO
11) Unauthorized purchases
12) CHs returning merchandise for cash or store credit vs. having credits issued back to the GPC
c. Taking Corrective Action. When an A/OPC discovers a violation of GPC policies, the A/OPC must take corrective action. The course of action will vary depending on the intentionality and severity of the infraction. A/OPCs should take one or more of the following corrective actions:
1) Document the violation in the purchase file and/or CH or BO’s file.
2) Require involved parties to attend training.
3) Inform the involved parties’ supervisor or commander.
4) Suspend CH or BO account.
5) Terminate CH or BO appointment and account.
d. Continual or Severe Violations. Continual violation of GPC procedures by a CH or BO will result in termination of GPC privileges. A/OPCs will document the violation and action taken in their files for that particular CH/BO. A/OPCs will refer evidence of deliberate abuse to the CH and/or BO’s supervisor, Commander, or SCO for appropriate action in accordance with the Uniform Code of Military Justice or civilian disciplinary rules. A/OPC will refer evidence of internal fraud or other criminal activity to the Commander or SCO.
Table 11-4: Disciplinary Categories
| Category | Reportable | Classification | Definition | Examples |
|---|---|---|---|---|
| Abuse | Yes | Intentional | Intentional use of the Government- issued charge card in violation of applicable regulations. Evidence of intentionality will be inferred from repeat offenses of the same violation, following administrative and/or disciplinary action taken for this violation. Applicable regulations are: FAR, DFARS, Service/Agency Supplements, and Component GPC policies/procedures. | Examples include, but are not limited to, intentionally failing to purchase from mandatory sources, exceeding the applicable MPT, purchasing items such as a day planner costing $300 rather than one costing $45, or splitting requirements to avoid card thresholds. |
| Internal Fraud | Yes | Malicious Intent | Any felonious act of corruption or attempt to cheat the Government or corrupt the Government’s agents by Charge Card Program officials. Use of the charge card to transact business that is not sanctioned, not authorized, not in one’s official Government capacity, not for the purpose for which the card was issued, not as part of official Government business. | Examples include, but are not limited to, a CH intentionally purchasing power tools for personal use, paying for repairs of privately owned equipment, purchasing items or extra quantity of items for resale or to give away to relatives. |
| Misuse | No | Unintentional | Unintentional use of a GPC in violation of applicable regulations. These actions are the result of ignorance and/or carelessness, lacking intent. Applicable regulations are: FAR, DFARS, Service/Agency Supplements, and Component GPC policies/procedures. | Examples include, but are not limited to, unintentionally purchasing excessive quantities of an item with limited shelf life, violating a specific-use policy such as an agency that requires headquarters to buy all furniture, failing to certify statements on time, costing the Government maximum rebates and incurrence of prompt payment interest. |
| Delinquency | Yes | N/A | An undisputed charge card account balance that is unpaid for more than 61 days past the statement date. | N/A |
| Administrative Discrepancy | No | Unintentional | Actions that violate operational policies/procedures but do not violate federal law or regulation. Supplies/services acquired fulfill a valid Government need at a fair and reasonable price at no additional cost to the Government but required policy/procedures were not followed. | Examples include, but are not limited to incomplete forms and documentation, failure to maintain required documents for the required time period. Administrative discrepancies require agency/internal corrective action and are not reportable to OMB unless they are persistent, pervasive, or willful in nature, in which case they are reportable as abuse, fraud, or misuse. |
| External Fraud | No | Malicious Intent | Any felonious act of corruption or attempt to cheat the Government or corrupt the Government’s agents by someone other than Charge Card Program officials. | Examples include but are not limited to a merchant’s intentional charges for services not provided or the unauthorized use by a third party of a CH’s compromised or stolen account. |
e. Any misuse of the GPC is subject to criminal, civil, Uniform Code of Military Justice, administrative, and disciplinary actions as appropriate. Offenses and penalties for misuse of Government Charge Cards by civilian employees is outlined in Table 3-1 Item 17 of AR 690-752 titled “Civilian Personnel Disciplinary and Adverse Actions.” See below for details. The Table of Offenses and Penalties guidance below is intended for use as a guide for selecting an appropriate penalty for infractions committed by civilian employees as it may not effectively address all situations. Table 11-5 does not substitute for independent supervisory judgment and does not dictate penalties. A supervisor may choose the severity of action ranging from no penalty, informal disciplinary actions, to the maximum penalty of removal.
Table 11-5: Offenses and Penalties Guidance
| Offense for Misuse of Government Charge Card | First Offense | Second Offense | Third Offense |
|---|---|---|---|
| Misuse of Government Travel Charge Card or Purchase Charge Card (for example, use for unauthorized personal expenses, failure to pay charge card bill in a timely manner, failure to properly safeguard the card or failure to use card for required expenses arising from official travel. Use of the Travel Charge Card at establishments or for purposes that are inconsistent with the official business of DoD, the Army, or applicable regulations). | Written reprimand to removal | 5-day suspension to removal | 10-day suspension to removal |
| Unauthorized use, failure to appropriately control or safeguard the use of a Government Purchase Card as a card holder or approving official responsible for use or oversight of the purchase card. | Written reprimand to removal | 14-day suspension to removal | Removal |
