The U.S. Department of the Interior Needs To Improve Internal Controls Over the Purchase Card Program

November 13, 2019

2018-FIN-059

Audit

We audited purchase card transactions and governing internal controls at the U.S. Department of the Interior (DOI). Our objectives were to determine whether (1) the bureaus implemented enhanced internal controls for the increase in the micropurchase limit from $3,500 to $10,000, (2) any cardholders in the audit sample of purchase card transactions misused their purchase cards, and (3) any cardholders used their purchase cards for purchases above $3,500 and $10,000. We found that bureaus did develop enhanced internal controls for the increase in the micropurchase threshold, but we found issues with the purchase card transactions because the bureaus did not ensure that internal controls were implemented and did not fully comply with departmental and bureau policies. We question $393,095 in transactions that had no receipt or insufficient documentation. In addition, we found that 2,757 cardholders (approximately 15 percent) used their cards for purchases above $3,500 and 16 cardholders (less than 1 percent) used their cards for purchases above the $10,000 micropurchase threshold. We made five recommendations to improve internal controls over purchase cards and compliance with DOI policy.

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