An IG audit of purchase card use at the IRS found instances of spending on inappropriate items, splitting of purchases, and unauthorized purchases.
The audit found that over a six-month period, the nearly 2,800 purchase card holders made 23,000 purchases totaling $8.2 million, and that the IRS had identified 20 instances of misuse, involving $1,700. (Some of those purchases, such as hand sanitizer, tissues, stamps and calendars, could have been meant for sharing in the office, versus for strictly personal use.) In half the cases, employees received oral counseling, a cautionary letter or written counseling while in the others the employees only received a notice of a violation.
The report said there were another 46 transactions totaling almost $90,000 that met the definition of a split purchase–breaking a single purchase into multiple transactions to keep them under dollar thresholds that trigger more thorough scrutiny of the purchase.
Also, it found 17 instances totaling more than $900 of prohibited purchases being made that were for valid business needs, but the cardholder did not have authority to purchase the items–for example, computer accessories not purchased by IT organization functional cardholders.