An inspector general’s report released Tuesday called for improved oversight for Department of Homeland Security-issued credit cards after finding they were at risk for fraud.
“DHS components did not have sufficient oversight plans to prevent improper use of charge cards,” the report said. “As a result, there remains a moderate level of risk that DHS’ internal controls will not prevent illegal, improper, or erroneous purchases.”
Resource: Read the report here.
While no illegal purchases were found in the transactions covered, some cardholders did not comply with controls established by DHS, leading to some cases of misuse regarding government-issued cards for travel, the audit found.
“I am encouraged that DHS has established internal controls for both its purchase card and travel card programs,” said Inspector General John Roth in the report. “However, the department needs to implement controls more consistently and be more vigilant in its oversight of these inherently risky programs.”
The Government Charge Card Abuse Prevention Act of 2012 requires OIGs to conduct annual audits of agency credit card programs to assess risk factors and prevent fraud within the agency.
DHS has filed more than $400 million in purchase and travel card charges from 2012 to 2014. The report found a fraction of charges that did not meet approval requirements, did not have the proper documentation or involved approval from one individual at multiple stages of the process.
The OIG’s report also looked at DHS spending on Starbucks in 2013, at Congress’s request. Of the $31,413 spent at the coffee giant in 2013, 24 percent didn’t have supporting documentation, while 10 transactions were found fraudulent and made by unauthorized users.
The report recommended stronger internal and oversight controls, more documentation and updates to the disciplinary process.
DHS concurred with the report’s four recommendations and noted that it was in the process of applying them.
