An IG report has recommended that the USPS Eastern Area tighten its controls over charges on fleet specialty credit cards, after finding that 42 percent of transactions it sampled were not supported by invoices or receipts.
The USPS operates one of the largest vehicle fleets in the nation, the report noted, of some 227,000 vehicles, primarily to deliver and collect mail. Management assigns every postal-owned vehicle one fleet credit card to pay for commercially purchased fuel, oil, and maintenance expenses of up to $300; there are various controls including that site managers are to maintain and secure the cards and the personal identification numbers that employees authorized to use the cards are assigned.
However, the report found that oversight was “inadequate,” saying that management “did not ensure fleet specialty credit card transactions and related supporting documentation were reviewed at least monthly, maintained for two years, and provided to the appropriate VMF [vehicle maintenance facilities] as required. Also, management did not ensure that PINs and fleet specialty credit cards were properly managed and secured.
“Without management oversight to ensure receipts, invoices, or work orders to support credit card transactions and PINs are properly administered, site managers and VMF managers are unable to determine if charges are appropriate or if vehicle maintenance records are complete. We estimate the Eastern Area incurred $9.9 million in questioned costs for unsupported fleet specialty credit card transactions in FY 2016,” the auditors wrote.
