Establishment of a Dollar Threshold to Preclude Credit Card Reconciliation

摘要

The government credit card program was instituted to streamline the federalacquisition process for material that costs less than $2,500 (small purchases). However, the reconciliation procedures were not streamlined. All dollar value discrepancies between the bank's Statement of Account (SOA) and the cardholder's purchase order files had to be resolved. Action by the cardholder to resolve discrepancies, regardless of dollar value, was required. The establishment of a minimum dollar threshold to preclude reconciliation action further streamlined the process and produced cost savings. The Department of Defense Financial Management Regulations did not prohibit the establishment of a threshold. However, Naval Supply Systems Command, card program manager for Department of Navy, required discrepancies to be reconciled to the penny ($.01). To identify savings, Notification of Invoice Adjustment forms were analyzed and interviews conducted with Naval Postgraduate School credit card personnel. The data were utilized to calculate labor costs. Establishment of a threshold resulted in labor savings of $2,500 per year and a twenty-five percent reduction in labor hours. A reduction in labor hours might result in future savings, if the cardholders perform other non-reconciliation functions, and some positions are eliminated.