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June 19, 2019 By AMK

GSA out of compliance on improper payments, watchdog finds

Financial controls designed to minimize agency payments to undeserving parties are not being fully followed by the government’s landlord, the General Services Administration, according to a watchdog report released on Friday.

GSA in fiscal 2018 failed to comply with two of six requirements in the amended Improper Payments Act, said the agency’s inspector general. Specifically, the agency “did not publish an accurate improper payment estimate in its Fiscal Year 2018 Agency Financial Report and … [did not] publish accurate and complete improper payments data in its Fiscal Year 2018 Agency Financial Report,” said the report by the team under IG Carol Fortine Ochoa. “GSA’s risk assessment process is flawed and its procedures for the Do Not Pay initiative contain significant deficiencies and are ineffective.”

Federal law requires agencies with programs susceptible to significant improper payments to estimate and report on them annually to the Office of Management and Budget, in addition to implementing corrective actions. But if a program’s estimated and reported improper payments are below the statutory thresholds for a minimum of two consecutive years, the agency may request relief from the annual reporting requirements.

The IG reviewed GSA’s improper payments in rental of space and purchase cards in fiscal 2017 and 2018, having found $109 million in total improper payments in 2017, and then $16.7 million in 2018 in the rental of space program only. The new report’s review covered August 2018 through February 2019.

Keep reading article at: https://www.govexec.com/management/2019/06/gsa-out-compliance-improper-payments-watchdog-finds/157447

October 10, 2016 By AMK

GSA’s IG says Pcard program is vulnerable to illegal, improper, or erroneous purchases

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

pcard 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.

June 25, 2015 By AMK

No more charging strippers to Uncle Sam’s plastic

Federal employees who want to gamble or frequent strip clubs for an evening of fun will have to use their own credit cards to pay for it.

An amendment included in the House-passed fiscal 2016 Defense spending bill prohibits Defense civilian workers and military personnel from using government charge cards for expenses related to “gaming, or for entertainment that includes topless or nude entertainers or participants.”

The language specifically prohibits gaming, rather than any expenses at a casino, so lodging and meals, for example, would be exempt.

Rep. Paul Gosar, R-Ariz., sponsored the amendment, which was adopted on voice vote. The House on Thursday passed the fiscal 2016 Defense spending bill. The full Senate has not yet considered its fiscal 2016 Defense appropriations legislation.

Keep reading this article at: http://www.govexec.com/management/2015/06/no-more-charging-strippers-uncle-sams-plastic/115174

October 9, 2014 By AMK

IG: GSA reduces credit card spending, needs more reform

Although more controls are needed, legislation to assist General Services Administration efforts to prevent waste, fraud and abuse at charge card programs has largely been helpful, an internal investigation found.

In an audit dated Sept. 29, the GSA’s inspector general said that GSA’s purchase card spending between fiscal years 2011 and 2013 fell from more than $69.3 million to about $33.6 million, and travel card spending declined from $17.1 million to about $4.2 million.

“We determined that the risks of illegal, improper, or erroneous purchases and payments made through GSA’s purchase card and travel card programs are medium and low, respectively,” the report states. “As such, we do not plan to conduct any audits of the purchase card or travel card programs in FY 2015.”

Keep reading this article at: http://www.fiercegovernment.com/story/ig-gsa-reduces-credit-card-spending-needs-more-reform/2014-10-01

GPC card image

August 30, 2013 By AMK

VHA could save $24M with wider use of purchase cards

Wider use of purchase cards could save the Veterans Health Administration $24 million annually, a report from the Veterans Affairs Department office of inspector general says.

Using purchase cards saves money because writing purchase orders is more time-consuming and complex. The banks that provide purchase cards also offer rebates, around 2 percent, for money spent on the cards, says the OIG report, dated Aug. 9. The VHA spent about $3 billion on purchases worth $3,000 or less in fiscal 2012, earning it more than $65 million in rebates.

From April 2011 through March 2012, VA medical facilities did not use purchase cards for $432 million worth of purchases under $3,000. For $244 million of that spending, the OIG found they had acceptable reasons not to use the cards. Some vendors don’t accept purchase cards, and the VA can’t use them to pay veterans for pharmacy copayments or tort claims.

For the remaining $188 million, spent on medical supplies, office equipment, patient transportation, employee training and more, the VA could have used purchase cards, the report says. The OIG estimated that it could’ve saved $20 million in processing costs and could’ve earned about $4 million in rebates.

Keep reading this article at: http://www.fiercegovernment.com/story/vha-could-save-24m-wider-use-purchase-cards/2013-08-13

Financial controls designed to minimize agency payments to undeserving parties are not being fully followed by the government’s landlord, the General Services Administration, according to a watchdog report released on Friday.

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

Federal employees who want to gamble or frequent strip clubs for an evening of fun will have to use their own credit cards to pay for it.

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