Audit of Peace Corps/Purchase Card

We recommend that the agency program coordinator ensure cardholder spending limits are appropriate and supported by proper authorization. Specifically, a. Maintain documentation supporting the delegated procurement authority for all cardholder accounts including any permanent increases or decreases in the single purchase authority and monthly cycle limits. b. Update overseas cardholder files to ensure that each file contains a copy of the most current re-delegated procurement authority and that the amount delegated to each cardholder is equal or more than the amount established in the Citibank card management system.

We recommend that the Office of Acquisitions and Contract Management strengthen the transactional review process, by: a. Developing standard operating procedures for the agency program coordinator and staff to use when conducting transaction and document reviews. b. Reviewing purchases to identify goods and services that may benefit from a blanket purchasing agreement or contract. c. Implementing the Citibank Data Mining software to identify transactions with potential problems.

We recommend that the Office of Acquisitions and Contract Management develop a formal policy and process for reviewing the purchases of auto-closed statements as a priority before approving the purchase card invoice to detect potential misuse of purchase cards.

We recommend that the Office of Acquisitions and Contract Management, in coordination with the chief financial officer, improve the purchase card annual risk assessment to include a discussion of each internal control standards and all elements required by Office of Management and Budget Circular A-123, Appendix B. The Office of Acquisitions and Contract Management must use the information gathered during risk assessment to report the purchase card processes and controls to Peace Corps management and the Office of Management and Budget.