+ OMB Circular A-123 (Appendix B): Improving ... - The White House

Chapter 4 – Risk Management
Questions
Page
4.1 Are agencies required to implement risk management controls, policies, and practices in implementing charge
card management programs? ............................................................................................................................ 10
4.2 Why is risk management important in the context of charge card programs? .................................................. 10
4.3 What are the general responsibilities of charge card managers in implementing risk management controls,
policies, and practices? ..................................................................................................................................... 10
4.4 What specific risk management controls, policies, and practices are required for addressing payment
delinquencies? ................................................................................................................................................... 11
4.4.1 Split Disbursement ........................................................................................................................................ 12
4.4.2 Salary Offset .................................................................................................................................................. 12
4.4.3 Split Disbursement and Salary Offset Procedures ........................................................................................ 12
4.4.4 Due Process Requirements Prior to Salary Offset ....................................................................................... 13
4.5 What administrative and/or disciplinary actions can be imposed on delinquent travel charge
cardholders?…………………………………………………………………………………………………...13
4.6 What is an erroneous or improper purchase?...................................................................................…………...13
4.7 What documentation should be maintained to minimize erroneous and improper purchases?..........................14
4.8 What specific risk management controls, policies, and practices are required for addressing charge card
misuse?...............................................................................................................................................................14
4.9 What administrative and/or disciplinary actions may be imposed for charge card misuse?............................. 14
4.1 Are agencies required to implement risk management controls, policies, and
practices in implementing charge card management programs?
Yes, each agency must implement risk management controls, policies, and practices consistent
with the requirements of this Chapter.
4.2 Why is risk management important in the context of charge card programs?
Risk management controls, policies, and practices are a critical tool for ensuring the efficiency
and integrity of charge card programs by eliminating payment delinquencies, charge card misuse,
fraud, and other forms of waste and abuse.
4.3 What are the general responsibilities of charge card managers in implementing risk
management controls, policies, and practices?
The general responsibilities of charge card managers in implementing risk management controls,
policies and practices are:
• Implementing the appropriate controls to ensure compliance with Federal laws, Federal and
agency regulations, and for monitoring program effectiveness;
• Ensuring that any risk management policies and practices established in the agency’s charge
card management plan are carried out effectively and that the charge card management plan
is updated with enhanced risk management policies and practices, as applicable;
Appendix B
OMB Circular A-123
(Revised January 2009)