DHS’s purchase card program provides an efficient, low-cost procurement and payment mechanism to acquire goods and services, the DHS inspector general has concluded following a recent audit.
In fiscal 2010, the department made about 1.2 million purchases valued at about $514 million for goods and services using purchase cards, the IG said.
However, it said that while the department generally has an effective internal control framework that it still needs to improve specific internal control procedures to mitigate the inherent risks associated with purchase card use.
The department’s post payment audit process did not ensure that component personnel were meeting minimum internal control requirements established by OMB, nor did the process effectively target high-risk transactions for review, the IG said.
According to the audit, the DHS chief financial officer agreed to implement the following recommendations: Review post payment audit review transactions and verify that all reports and their supporting documentation are valid and sufficient; Develop data mining techniques to target high-risk transactions for the post payment audit review program; and, Update the DHS Purchase Card Manual to address all OMB Circular A-123 purchase card requirements, including for all components.
