2024 CLG 0010 DoD Governmentwide Commercial Purchase Card Overview Lesson 5 Complete Questions & Answers (Solved) 100% Correct
- Convenience Checks
Answer: Occasionally, unique/rare cases arise where, for example, a merchant does not accept payment by credit card, or it is not practical to pay for items using traditional procurement methods. In these cases, the GPC convenience checks can be used.Fees associated with the use of convenience checks are specified in the General Services Administration (GSA) Contract. Because these fees are high, convenience checks should be used only as the last choice to meet mission needs.
- Minimum Requirements to Establish Account
Answer:
The minimum requirements for establishment of GPC convenience check accounts are as
follows:
The Managing Account (MA) must be in good standing.The authority to maintain a convenience check account shall be justified on an individual organization basis.The number of convenience check accounts should not, if possible, exceed one per major DoD tenant activity or independent location. However, additional accounts may be established following a written determination by the Commander that another account is necessary to meet mission requirements.Appropriate internal controls shall be in place, to include written approval (e-mail acceptable) one level above the Cardholder (CH) (e.g., Approving/Billing Officials [A/BOs] or A/BO's Supervisor).Check Writers must receive the appropriate appointment letters. CHs writing checks must have taken all training required of CHs.CHs writing checks must obtain detailed receipts/invoices and other documentation required of CHs in addition to the check-writing documentation (including approval one level above the CH, as well as 1099-MISC information).In order for a convenience check account to be established, a specific individual must be designated as the CH responsible for that account, and specific spending limits must be established.
- Funding Convenience Check Accounts
Answer: Convenience check accounts shall be funded in accordance with the Component's Comptroller, Resource Manager (RM), or Budget Office polices for GPC convenience checks.The Check Writer must ensure funds are available to cover both the value of the check and the bank fee to process the check.Convenience checks are non-disputable with the check-issuing bank. Once a check is written, signed, and provided to the merchant, the check-issuing bank has no authority not to pay the check.The CH can request that the bank "stop payment" on a check, and the CH's account will be assessed a related fee. If payment has been made before a stop payment is processed, the CH 1 / 2
cannot dispute the charge.CHs are to secure checks in a locked container that cannot be accessed by anyone other than the CH.Any MA under suspension of GPC privileges automatically shall be suspended from use of the GPC convenience check system for all accounts.
- 1099 Reporting for Convenience Checks
Answer: CHs are required to obtain the Tax Identification Number (TIN) or Social Security Number (SSN) for each merchant or individual being issued a check via a signed Internal Revenue Service (IRS) Form W-9.This information is used to file a Form 1099-MISC for tax reporting. CHs are to maintain convenience check records to fulfill 1099-MISC tax reporting requirements. Failure to file Form 1099-MISC on convenience checks prevents the Government from collecting the appropriate taxes to support the Government's financial responsibilities.
- Which statements are true regarding the use of convenience checks? (Select the three that
apply.) Answer: Convenience checks shall not be written to pay against a contract, shall not exceed the micro-purchase threshold, and should be signed only by the CH.
- An authorized GPC holder is going to make a purchase from XYZ Inc. for some supplies.
The salesperson says that they accept credit cards. The Cardholder (CH) left his card at home, but he has a convenience check, which the salesperson also will accept. Can he use the convenience check?
Answer: No, he must use a GPC when a merchant accepts them for payment.
- True or False? Convenience checks can be disputed with the check-issuing bank.
Answer: The statement is False. Convenience checks cannot be disputed with the check- issuing bank
- GPC Simplified Acquisitions up to $25,000 Made Outside the U.S. and Outside U.S.
- / 2
Jurisdictions Answer: Defense Federal Acquisition Regulation Supplement DFARS 213.301 provides authority for use of the GPC as a simplified acquisition method outside the U.S. and outside U.S. jurisdictions for commercial item sup- ply/service purchases exceeding the micro- purchase threshold but not exceeding $25,000, if the purchase is made outside the U.S. and its jurisdictions for use outside the U.S. and its jurisdictions. These actions are not micro- purchases.DoD GPC policy permits Components to issue CH accounts to individuals for the purpose of making these purchases. This authority is separate and distinct from the authority to use the GPC to purchase mission-related supplies and services with values that do not exceed the micro-purchase threshold.See applicable Component procedures for additional guidance related to use of the GPC up to $25,000 outside the U.S. and its jurisdictions.Questions related to this and all other GPC authorized uses should be directed to the