Purchase card use triggers personnel actions, Lab review

Contact: John R. Gustafson, pogo@lanl.gov, (505) 665-9197 (02-094)

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LOS ALAMOS, N.M., Aug. 20, 2002 -- Los Alamos National Laboratory on Monday placed a Laboratory employee and a contractor employee on investigative leave in connection with apparent irregularities in the use of Laboratory-issued purchase cards. The two individuals are holders of the cards associated with these apparent irregularities.

The irregularities triggered a more comprehensive examination of all purchase card transactions for the past two years. That review is ongoing and will be assigned to a team of external experts, including representatives from the University of California's external auditors, PricewaterhouseCoopers. The review by external experts will include audits of past purchase card transactions as well as a review of administrative policies, procedures, and internal controls. The team will be chaired by John Layton, formerly Inspector General of the U. S. Department of Energy.

The Laboratory has referred this matter to federal authorities and is cooperating fully in their ongoing investigation. Should further apparent irregularities be identified, the Laboratory will take appropriate personnel actions. Thus far, the amount of misappropriated funds is estimated at $2,500.

In the meantime, Laboratory Director John Browne has initiated a number of changes to strengthen administration of the purchase card program and eliminate potential opportunities for mismanagement or abuse. These changes include:

• Items obtained via purchase cards will be required to be received by authorized individuals other than the cardholder;
• Limits for all cardholders on the authorities governing value/transaction and total value of all transactions/month have been reduced;
• Monthly statements must be approved by designated approving officials other than the cardholder;
• Purchase of property-controlled items via purchase card is prohibited;
• The number of cardholders assigned to a single approving official cannot exceed five and may be further limited depending on average volume and value of transactions; and
• All cardholders and approving officials will be required to complete refresher training no later than Oct. 1, 2002.

Los Alamos National Laboratory is operated by the University of California for the National Nuclear Security Administration (NNSA) of the U.S. Department of Energy and works in partnership with NNSA's Sandia and Lawrence Livermore national laboratories to support NNSA in its mission.

Los Alamos enhances global security by ensuring the safety and reliability of the U.S. nuclear stockpile, developing technologies to reduce threats from weapons of mass destruction, and solving problems related to energy, environment, infrastructure, health and national security concerns.

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