The Department of Homeland Security’s Inspector General has found that DHS did not always follow proper protocols for its charge card programs and there remains a moderate level of risk for improper purchases.
DHS did not have sufficient oversight plans to prevent improper use and there remains a moderate level of risk that internal controls won’t prevent improper payments, according to the report made public Tuesday.
“I am encouraged that DHS has established internal controls for both its purchase card and travel card programs,” Inspector General John Roth said. “However, the department needs to implement controls more consistently and be more vigilant in its oversight of these inherently risky programs.”
In fiscal years 2012 through 2014, DHS had more than $400 million a year in purchase and travel card transactions.
Of 387 sampled transactions valued at $395,608, investigators found that 189 transactions (49 percent) valued at $206,903 didn’t comply with at least one of the requirements in the DHS Purchase Card Manual. In 142 cases, a cardholder did not get appropriate approvals before a purchase.
In another instance, an employee used a travel card to buy $417 worth of computer equipment, which the inspector found was not associated with official travel.
In response to concerns raised by members of Congress, the inspector general also reviewed 66 purchase card transactions made at Starbucks in 2013 totaling $31,413.
Forty (61 percent) of the transactions were “supported, allowable, and reasonable,” while 16 (24 percent) didn’t have sufficient supporting documentation and the remaining 10 transactions were “fraudulent purchases made by unauthorized users and identified by banks,” the report said.
The OIG issued four recommendations in response to require the development of new purchase card procedures and oversight, put in a plan to provide more oversight to detect misuse of the travel card, and update the DHS Travel Card Manual to include disciplinary actions for misuse of the travel card.
DHS concurred with the recommendations and said the department is working to implement them.
• David Sherfinski can be reached at dsherfinski@washingtontimes.com.
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