Federal Daily - April 10, 2008
GAO: About Half of Larger Government Card Purchases Violate Rules
Almost half of the $14 billion in purchases made by federal employees with government credit cards
violate rules that guard against waste, fraud and abuse, according to a new Government Accountability
Office (GAO) investigation. The GAO report, released on April 8, looked at how federal employees used
the so-called “purchase cards” for transactions from July 1, 2005, through June 30, 2006.
Specifically, the auditors found that an estimated 41 percent of purchases failed to meet internal
controls. In a second sample of transactions over $2,500, auditors found that 48 percent of these large
purchases did not meet the standards for proper authorization. Some of the purchases were clearly wasteful.
For example, an unidentified U.S. Postal Service postmaster used his card to charge $1,100 during a
15-month period for various Internet dating services. Also, the Postal Service spent $13,500 for a
2006 dinner for 81 guests at the Ruth’s Chris Steak House in Orlando, Fla. And GAO found that
458 of 1,058 items purchased were missing and presumed stolen. “Too many government employees
have viewed purchases cards as their personal line of credit. It’s time to cut up their cards
and start over,” said Sen. Norm Coleman, R-Minn. To see more, go to: http://hsgac.senate.gov/public/index.cfm?Fuseaction=PressReleases.View&PressRelease_id=6638c5fd-ccd2-4f65-9416-2f8ebf2751ea&Affiliation=R.
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Health Insurance Will Now Pay for Substance Abuse Screening
About 5.6 million federal workers and family members with federal health insurance will now be covered
for a substance abuse prevention and treatment procedure called Screening and Brief Intervention (SBI),
the White House Office of National Drug Control Policy (ONDCP) announced April 7. The new coverage—provided
through Federal Employees Health Benefits (FEHB) program insurers—will reimburse doctors who
administer screening for substance use behaviors, including for alcohol, illicit drugs, and prescription
drug abuse/addiction, and provide appropriate intervention. The Office of Personnel Management estimates
that about 70 percent of enrollees participate in FEHB plans that will pay for the SBI services. “This
intervention assists an individual engaged in risky substance abuse to change their behaviors,” said
Bertha Madras, deputy director for demand reduction at ONDCP. To see more, go to: www.whitehousedrugpolicy.gov/news/press08/040708.html.
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FEMA Operations Center to move to Winchester
The Federal Emergency Management Agency (FEMA) is preparing to move its dispersed 600-member disaster
operations staff to a single building in Winchester, Va., FEMA and the Department of Homeland Security
announced on April 8. Disaster operations staff moving to the new center includes call center workers
who take applications for assistance from disaster victims and provide helpline services; those who
process personnel actions; workers who provide IT and logistical support; and personnel who manage
the disaster inventory service center and warehouse. The new building, which FEMA has leased for 15
years, is the second largest FEMA facility in the country, after the FEMA headquarters at the Federal
Center Plaza in the District. To see more, go to: www.fema.gov/news/newsrelease.fema?id=43156.
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