Govt. Employees Bilk Taxpayers

[WhiskeyGirl]

Govt. Employees Bilk Taxpayers

Systematic fraud, waste and mismanagement in the federal travel card program has for years allowed government employees to bilk U.S. taxpayers out of millions of dollars.

Issued to federal employees who travel more than five times a year, the charge cards are regularly used by workers from a wide range of agencies to buy personal items, travel first-class or simply steal cash from the government. Details of the ongoing fraud are documented in a congressional report made public this week.

Among the examples listed are a Federal Aviation Administration employee who used the government card to pay $3,700 for laser eye surgery, a State Department employee who took a first-class Hawaiian vacation on the government and a Pentagon employee who got reimbursed for more than a dozen airline tickets—totaling nearly $10,000—that he never bought.

read more here -
http://www.judicialwatch.org/blog/2009/may/govt-employees-bilk-taxpayers

[WhiskeyGirl]

Grassley Bill to Rein In Government Charge Card Abuse Clears Committee

               WASHINGTON – Senator Chuck Grassley today said that his legislation to end the reckless spending on government charge cards cleared its first hurdle by passing the Senate Homeland Security and Government Affairs Committee with no opposition.  Grassley’s legislation would require federal agencies to establish safeguards and controls for government charge card programs.  The bill also requires agencies to set penalties for violations.

            Grassley’s bill was co-sponsored by the chairman and ranking member of the committee, Senators Joe Lieberman and Susan Collins.  The bill must now be considered by the full Senate.

            “It’s more important than ever to ensure that the taxpayers’ dollars are accounted for, whether it’s through the massive spending programs that have recently become law or the everyday purchases made by federal employees on charge cards,” Grassley said.  “It’s high time we establish some safeguards and accountability with these cards.  Agencies can’t continue to look the other way while employees are going on shopping sprees at the taxpayers’ expense.”

Here is a summary of Grassley’s legislation.

"Government Charge Card Abuse Prevention Act" Summary

The bill would require all federal agencies to establish certain safeguards and internal controls for government charge card programs, and to establish penalties for violations, including dismissal when circumstances warrant.  The bill would also increase oversight by providing that each agency Inspector General periodically conduct risk assessments and audits to identify fraud and improper use of government charge cards. These reforms are based on the experience of Senator Grassley and other members of Congress, the GAO, and agency Inspectors General in investigating the weaknesses in agency policies and procedures that have lead to instances of waste, fraud, and abuse in government charge card programs.

The required safeguards and internal controls include:

$        performing credit checks for travel card holders and issuing restricted cards for those with poor or no credit to reduce the potential for misuse

$        maintaining a record of each cardholder, including single transaction limits and total transaction limits so agencies can effectively manage their cardholders

$        implementing periodic reviews to determine if cardholders have a need for a card

$        properly recording rebates to the government based on prompt payment, sales volume, etc.

$        providing training for cardholders and managers

$        utilizing effective systems, techniques, and technologies to prevent or catch fraudulent purchases

$        establishing specific policies about the number of cards to be issued, the credit limits for certain categories of cardholders, and categories of employees eligible to be issued cards

$        invalidating cards when employees leave the agency or transfer

$        establishing an approving official other than the purchase card holder so employees cannot approve their own purchases

$        reconciling purchase card charges on the bill with receipts and supporting documentation

$        reconciling disputed purchase card charges and discrepancies with the bank according to the proper procedure

$        making purchase card payments promptly to avoid interest penalties

$        retaining records of purchase card transactions in accordance with standard government record keeping polices

$        utilizing direct payments to the bank when reimbursing employees for travel card purchases to ensure that travel card bills get paid

$        comparing items submitted on travel vouchers with items already paid for with centrally billed accounts to avoid reimbursing employees for items already paid for by the agency

$        submitting refund requests for unused airline tickets so the taxpayers don=t pay for tickets that were not used

$        disputing unauthorized charges and tracking the status of disputed charges to proper resolution

http://grassley.senate.gov/news/Article.cfm?customel_dataPageID_1502=20857

It's scary  that this isn't already happening.

This is one piece of legislation that need to hit the fast track.

I wonder if the Obama Administration will kill it or perhaps introduce an alternative?  Will the Obama alternative outsource jobs, lessen enforcement provisions, increase welfare spending, increase taxes, and actually encourage all the waste and abuse?

Interesting thing to keep track of.

jmho = just my humble opinions.