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Management Advisory Report: Purchase Card Review

Report Information

Date Issued
Report Number
IG-18-03-SR
Report Type
Review
Component
Agency-wide
Description
We found that inadequate controls resulted in non-compliance with agency policies and guidance from the Office of Management and Budget. To reduce the risk of fraudulent behavior and financial abuse, the agency needs to improve its policies and procedures, training, and oversight provided to the purchase card program. By not maintaining sufficient controls to assure compliance with Peace Corps and Federal requirements, the Peace Corps put itself at risk for fraudulent behavior and financial abuse. We found several weaknesses caused by insufficient controls: inadequate policies and procedures, lack of required training, inadequate oversight, and inadequate use of the available data analytic tools. This report makes six recommendations to help enhance controls over purchase card transactions.
Participating OIG
Peace Corps OIG
Agency Wide
Yes (agency-wide)
Questioned Costs
$644800
View report on Oversight.gov

Recommendations

Disclaimer: Open/Closed recommendations are updated semiannually.

We recommend that the Office of the Chief Financial Officer develop agency-wide procedures to ensure purchase card controls are appropriate to the Peace Corps purchasing environment, and fully define the roles and responsibilities of Peace Corps purchase cardholders, approving officials, and the Agency Program Coordinator.

We recommend that the Office of the Chief Financial Officer develop, provide, and track Peace Corps-specific training for all purchase card program participants including obligating, reallocating, and approving procedures. Further, ensure that this training complies with OMB guidelines for both initial and refresher training.

We recommend that the Office of the Chief Financial Officer ensure appropriate oversight over the purchase card program to include monitoring of transactions, the use of available data analytics tools and ensuring that follow-up processes receive sufficient staffing and oversight, in both ACM and GAP.

We recommend that the Office of the Chief Financial Officer:• develop controls to ensure the APC monitors, identifies, and follows-up potential split purchases.• ensure rejected transactions are monitored and resolved in a timely manner.• develop procedures for the APC to monitor auto-closed Citibank monthly statements and review transactions on auto-closed statements to verify for adequate support and authorization.• remind cardholders and approving officials to comply with Peace Corps policy for retaining supporting documents for appropriate period.

We recommend that the Office of the Chief Financial Officer review purchases over the micro-purchase limit identified, including the split purchase identified, and take appropriate action, consistent with GSA and agency policy on misuse or abuse of the purchase card. The agency should review each transaction and determine what action is appropriate (i.e. collection of funds or disciplinary action).