U.S. Department of Housing and Urban Development (HUD), Washington, DC - Government Purchase CardsView full audit [PDF, 25 pages]
HUD’s purchase cards for FY17 and FY18 were audited. The risk assessment found that there was a moderate risk of illegal, improper or erroneous purchases and payments occurring in HUD’s purchase card program. The audit objectives were to determine whether:
- HUD maintained accurate records of cardholders and transactions.
- HUD employees took purchase card training when required.
- HUD purchase cards were used for illegal, improper, or erroneous transactions.
It was recommend that HUD’s Chief Procurement Officer:
- Implement processes to periodically audit or reconcile the shared service provider’s records.
- Review hierarchies.
- Ensure that training is taken when required.
- Suspend cardholders or approving officials who fail to take training or repeatedly cause HUD to pay interest.
- Research the incomplete monthly transactional data and identify a solution.
- Enhance the process to periodically analyze data for split transactions or improper Merchant Category Codes (MCCs).
- Improve notifications to employees.
- Follow up on any potential issues identified.