GSA may not identify illegal, improper, or erroneous purchases because the controls over the resolution of questionable purchase card transactions are not operating effectively.

That’s one of the findings of the Office of Inspector General (OIG) of the General Services Administration in a report issued September 30, 2016.  The OIG found that purchase card (Pcard) transactions are not properly and fully supported, reported, and approved to ensure the goods and services are business-related.  The audit report also finds that GSA lacks controls to routinely monitor purchase card transactions to identify split transactions, which increases the risk that GSA cardholder violations of federal acquisition regulations concerning micro-purchase authority will go undetected.

The finding align with the purpose of the audit.  The objectives of the OIG’s audit were to determine whether: 1) GSA’s purchase card program has controls in place to ensure purchase cardholders are in compliance with GSA’s purchase card policies, 2) GSA purchase card transactions are properly and fully supported, reported, and approved, and 3) GSA purchase card use above the single transaction limit of $3,000 complies with acquisition laws.

Based on the audit, the OIG recommended that:

• GSA management enforce existing GSA operating policy (specifically, GSA Order OAS 4200.1A on the subject of Management and Use of the GSA SmartPay Purchase Card;
• Ensure questionable charges are identified, reviewed, and resolved; and
• Ensure that the Charge Card Management Division fully develops and implements its existing Pcard monitoring system, and performs routine tests of split transactions.

GSA management concurred with the audit report findings and recommendations.