What happens to cardholder accounts when the Approving Official accounts are terminated?

Disable ads (and more) with a membership for a one time $4.99 payment

Prepare for the DoD Government Purchase Card exam. Study with multiple-choice questions, each with hints and explanations. Boost your readiness for the test!

When the Approving Official's accounts are terminated, all cardholder accounts assigned to them are also terminated. This is because the cardholder accounts are directly linked to the oversight and responsibility of the Approving Official. The role of the Approving Official is crucial in the management of Government Purchase Card (GPC) transactions, as they provide necessary approvals and oversight of expenditures.

If the Approving Official is no longer in their position, it is crucial to maintain the integrity and accountability of the purchasing system, and therefore, all associated cardholder accounts are terminated to prevent unauthorized use. This action ensures that there is a clear chain of responsibility and that cardholders can only operate under active and accountable management.

In this context, options suggesting that only the main account or individual cardholder accounts remain active are not viable, as maintaining an effective oversight mechanism is key in the operation of GPC systems. Additionally, while new Approving Officials may indeed need to review accounts, this is not a direct action that occurs upon the termination of their predecessors' accounts; rather, it would take place as part of a transition process.