When should cardholders be cautious about making purchases?

Cardholders should be particularly cautious when making purchases that exceed the agency’s designated limits. This is critical because exceeding these limits can lead to compliance issues and potential repercussions for the cardholder and the agency. Agencies set these limits to ensure responsible spending and financial accountability. Adhering to established guidelines helps maintain the integrity of budgeting processes and ensures that funds are used appropriately.

When purchases are made within the designated limits, the risk of overspending and mismanagement diminishes, enabling the agency to maintain better control over its financial resources. Understanding and respecting these purchase limits is therefore essential for cardholders to avoid violations and to ensure that they are making purchases in alignment with federal guidelines.