Opportunity To Improve Charge Card Transaction Review and Billing Practices Identified During Investigation of Charge Card Misuse

November 5, 2019

18-1034

Other

During a recent investigation into allegations that a former U.S. Geological Survey (USGS) employee charged more than $14,000 in unauthorized transactions for personal gain, we learned of a U.S. Government charge/travel card (GTC) transaction review practice that could be beneficial if applied across the U.S. Department of the Interior (DOI). We also learned that training could help charge card reviewers at the DOI detect and prevent GTC misuse. In addition, we learned of a billing practice that makes it difficult for the Government to hold employees accountable for unresolved debts. The USGS uses a budgeting software that allows it to monitor and identify questionable and unauthorized GTC charges in real time, rather than relying on the review of monthly GTC statements. Implementing real-time transaction review capabilities DOI-wide would help ensure that GTC charges are authorized and correct. We also learned during this and past investigations, that first-line supervisors and approving officials did not have the training to identify fraud schemes and indicators. With training, charge card reviewers would be better able to identify fraudulent charges. In addition, the USGS and other DOI bureaus issue bills for collection through email rather than certified or registered mail. Using certified or registered mail would allow the Government to ensure the intended party receives the bill and therefore better hold debtors accountable. Our management advisory alerts the DOI to these opportunities. We recommend the DOI establish real-time monitoring of GTC transactions, train managers on GTC fraud indicators and reporting requirements, and ensure bills for collection are sent via certified or registered mail with a signature requirement.

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