B-237883, Jan 5, 1990, Office of General Counsel

B-237883, Jan 5, 1990, Office of General Counsel

CIVILIAN PERSONNEL - Travel - Travel expenses - Credit cards - Use - Procedures DIGEST: Standards for allowing Department of Commerce to use corporate charge cards under limited circumstances are discussed.

Mr. Dan Haendel Deputy General Counsel Department of Commerce Mr. Haendel:

This is in response to your letter of November 22, 1988, requesting our opinion of a proposal by the Bureau of the Census, Department of Commerce, to use corporate charge cards issued by Citicorp Diners Club under limited circumstances.

BACKGROUND

You explain that issuance of corporate charge cards, which are billed to the agency itself rather than to individual employees, is necessary because the Census intends to use the cards to obtain group training facilities which may be chosen on short notice in remote locations. Furthermore, you note that charge cards billed to individuals are unsuitable for expenses incurred by groups and that the Government Travel System can be used only when hotels or other merchants can be identified in advance.

You further explain that these corporate charge cards would be issued only to approximately 52 area managers of Regional Census Centers and would be used to pay for group lodging and rental of facilities and equipment to train new employees to perform enumeration duties for the 1990 Decennial Census. The bills would be directed to the appropriate Regional Census Center to the attention of the cardholder.

Finally, your request notes that staff of the General Services Administration (GSA) and counsel for Citicorp have agreed in principle to the modifications of GSA Charge Card Contract with Citibank, No. GS 00F- 95032 (the Contract), which would be necessary to permit this, but that GSA would like to have our Office's opinion on this matter.

DISCUSSION

As we noted in our letter to the Defense Nuclear Agency, B-230696, Mar. 30, 1988, concerning a similar request, there is a potential for abuse in the issuance of these corporate charge cards since the government and not the individual is charged with responsibility for payment. However, your proposal attempts to protect the government from unauthorized use of these corporate charge cards in several ways.

For example, each card would be embossed with the name of the official authorized to use it, together with "Bureau of the Census" and "For Official Use Only." Each user would receive detailed instructions and Citicorp would agree to pay all charges incurred on lost or stolen cards. The government would not be liable for any charges on a corporate charge card after the government has notified Citicorp that the cardmember is no longer authorized to use it. Finally, the government would not be liable for any charges generated by unauthorized use if the government has not received a benefit from such use. See Travelmasters, B-234785, Oct. 6, 1989.

While not explicitly mentioned, we presume that you will continue to follow the government's policy of utilizing U.S. Government Transportation Requests or the Government Travel System to purchase common carrier transportation services, where feasible. You may also want to add a dollar limitation on the government's potential liability under the contract. We also suggest you consider whether other credit cards are currently available for the uses outlined in your letter. We are aware that the Department of Housing and Urban Development and the Environmental Protection Agency are currently using the government's VISA card for such uses.

We also note that since the designated officials retain custody of these corporate charge cards, they are acting, in effect, as accountable officers. Although it is impossible for us to anticipate any particular problems or questions that might arise at a later date as to the government's or individual's liability, we would point out that such questions may be presented to this Office for a determination. See 64 Comp.Gen.456 (1985); 55 Comp.Gen. 1181 (1976); 31 U.S.C. Sec. 3527 (1982).

Although we remain concerned about the potential for abuse, we see no legal objection to the proposal by the Census to use Citicorp corporate charge cards under the circumstances presented.