The Office of Management and Budget said yesterday that it wants Congress to pass a new law allowing federal managers to fire employees for government credit card fraud and abuse. 

The comment was prompted by the recent release of a Government Accountability Office report detailing numerous instances of fraud using government credit cards where federal employees paid for cosmetics, expensive meals, suits, iPods, gambling, mortgages and for other inappropriate items.  

Danny Werfel, the OMB's deputy controller, said the OMB is working with Sen. Charles E. Grassley (R-Iowa) on legislation that would grant greater authority to discipline federal employees that misuse government purchase cards. 

Hopefully, the legislation will also include disciplinary actions for managers that allow credit card abuse to occur under their noses.  For it's up to the manager to ensure that procedures are properly followed and that the card transactions are monitored by a third party. 

Every good parent who gives their teenage child a credit card to use for limited purchases and emergencies understands the importance of reviewing the charges on a monthly basis to make sure its use falls within the guidelines set by the parent.  The same system must be applied within a government office.  One person makes the purchases, the other one looks over the charges once a month and accounts for the items purchased.  

In a government agency, during busy periods - usually around the annual review - people become distracted and oversight of programs and purchases may become lax.  In such an environment, incentives are needed to ensure employees don't drop the ball.  The best ways to do this are to hand out bonuses to employees that spot fraud and abuse and by ensuring program oversight responsibilities - including oversight and inventorying of credit card purchases - become part of the employees annual review.