The Office of Inspector General and Department of Homeland Security found in an audit last week that the Science and Technology Directorate failed to adequately meet all internal purchase card policies and procedures. The Government Charge Card Abuse Prevention Act of 2012 requires the OIG to conduct an annual risk assessment and periodic audits of agency change card programs.
The S&T’s Bankcard Program followed most of the internal controls implemented by the DHS, but not all. Of the 421 purchase card transactions selected for review, the OIG found that 394 transactions either lacked the required supporting documentation, separation of key transaction duties, approvals and other required signatures, or did not comply with other risk-based procedures.
A total of $63,213 in questionable costs was uncovered by the audit, for which S&T personnel could provide no supporting documentation. These issues occurred due to outdated policy and shortcomings with regards to training and program oversight, according to S&T officials.
These inefficiencies leave the Bankcard Program at an increased chance of risk and more vulnerable to fraud. The audit also led the OIG to believe that S&T’s internal controls are less effective at decreasing the risk of fraud and inappropriate charge card practices than it originally thought.
The OIG made four recommendations to the S&T’s adherence procedures. The organization agreed, and made the case that some of the recommendations had been previously implemented. The S&T will also review all FY18 purchase card transactions to resolve any errors by the end of February 2022.
The full audit can be read here. 