What are the consequences of failure to reconcile GPC accounts correctly?

The consequences of failing to reconcile GPC accounts correctly primarily lead to financial discrepancies and compliance issues. Accurate reconciliation is crucial because it ensures that all purchases align with the allocated budget and that all transactions are properly recorded and accounted for. When reconciliation is not done correctly, it can result in mismatches between reported spending and actual expenses, potentially leading to overspending or unauthorized purchases.

Additionally, compliance issues can arise if transactions are not properly documented or if there are errors in reporting, which can violate federal regulations and guidelines governing the use of government purchase cards. This can expose the organization to audits, penalties, or other disciplinary actions.

The other choices do not accurately reflect the consequences of incorrect reconciliation. For example, increased budget allocations, enhanced approval powers for cardholders, and lower scrutiny during audits are not associated with the failure to reconcile accounts. Instead, such failures typically lead to a greater need for oversight and corrective measures.