Dear Colleagues:
Included in the President's emergency FY 2005 supplemental request for HurricaneKatrina aid is a provision raising the limit for emergency "micro-purchases" on governmentcredit cards from $15,000 to $250,000, a more than 1,600% increase. Government-wide, thereare about 250,000 of these cards in use. The Government Accountability Office (GAO)demonstrated as recently as last year that ineffective management oversight and weak internalcontrols led to misuse and abuse of these cards. The GAO has reported finding "numerouspurchases of personal items, such as jewelry, designer leather goods, clothing, stereo equipment,food, and entertainment charged to government purchase cards." Over the years we have beenvery concerned about the flagrant misuse of government purchase cards on the taxpayer dime.
The depth of the tragedy here seems overwhelming. At the same time, however, weshould not allow the immediate needs of this disaster to trump the need for oversight andaccountability for the spending that will occur on these purchase cards.
If history is any lesson, failing to implement sufficient controls will likely allow aid to bediverted away from its intended purpose of benefiting survivors of the hurricane. Wasting moneydoes nothing to help Katrina victims. We are concerned that this provision is too broad and therisks too great with such a staggering increase in micro-purchase authority. Therefore, werequest that this provision be modified to, for example, implement a more reasonable limit,perhaps $50,000 (about three times more than was approved after the 9/11 disaster) and requirethat larger purchases receive prior approval from senior level federal officials.
Sound financial controls are essential in any emergency situation to ensure that aid flowsefficiently, effectively, and appropriately to the victims. Your attention to this matter is criticalto ensuring that this disaster is not compounded by a federal response that is vulnerable to fraud,waste, and abuse.
Sincerely,
Chuck Grassley United States Senator Chairman of the Committee on Finance
Susan Collins United States Senator Chairman of the Committee on Homeland Security and Governmental Affairs
Joe Lieberman United States Senator Ranking Member of the Committee on Homeland Security and Governmental Affairs
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Source: Ranking Member’s News
