There has been a lot of press (some of which is discussed in a prior post) about various government agency employees taking extreme liberties with their government issued credit cards. Back in July 2011, the Senate approved a reform measure for additional controls and stricter penalties that is finally set by signature by President Obama.
While employer issued credit cards are an important tool for efficient procurement of everything from travel to office supplies, this area is ripe for abuse without effective internal controls that are documented and enforced. Usage must be preemptively controlled (such as through appropriate credit limits) and actively monitored (with appropriate segregation of duties), with best practices put in place to control unnecessary costs (like interest for untimely payments).
The fact that the government is realizing its own need for additional law is a strong reminder for businesses of all sizes to take a look at their own policies and procedures in this area. As in the case with the recent bill, action in this area is often lamented for not having occurred earlier.
