Deactivating and Eliminating Cards Linked to Inactive or Nonexistent Employees Act; DECLINE Act
Summary
The DECLINE Act mandates federal agencies to establish policies for deactivating charge cards of separating employees. This includes physically securing the card, removing it from digital wallets, deactivating the card, and reporting it to the issuing institution. The GAO will review agency compliance annually, reporting to Congress on charge card usage and internal controls.
Expected Effects
This act aims to reduce fraud, misuse, and late fees associated with government charge cards. It enforces stricter controls over government spending by ensuring charge cards are promptly deactivated upon employee separation. This should lead to better fiscal management within federal agencies.
Potential Benefits
- Reduced potential for fraudulent charges by former employees.
- Lower administrative costs associated with managing inactive charge cards.
- Improved accountability and oversight of government spending.
- Enhanced internal controls within federal agencies.
- Increased transparency in government financial operations.
Most Benefited Areas:
Potential Disadvantages
- Potential administrative burden on agencies to implement and maintain the new policies.
- Possible delays in employee separation processes due to the new requirements.
- Risk of inconsistent implementation across different agencies.
- Limited impact if agencies do not rigorously enforce the policies.
- The act focuses narrowly on charge cards and may not address broader issues of financial mismanagement.
Constitutional Alignment
The DECLINE Act aligns with the Constitution's emphasis on fiscal responsibility and government oversight. While the Constitution does not explicitly address charge card management, Article I, Section 9, Clause 7 states that "No Money shall be drawn from the Treasury, but in Consequence of Appropriations made by Law; and a regular Statement and Account of the Receipts and Expenditures of all public Money shall be published from time to time." This act promotes accountability in government spending, supporting the principle of responsible use of public funds.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).