Assessment of USAID’s Purchase Card Program Showed Low Risk of Improper Purchases and Payments in Fiscal Year 2022

Audit Report
Report Number
0-000-23-010-C

Why We Did This Assessment

  • We contracted with the independent certified public accounting firm of GKA P.C. Certified Public Accountants and Consultants (GKA) to conduct a risk assessment of USAID’s purchase card program in accordance with Public Law 112-194, the Government Charge Card Abuse Prevention Act of 2012 (the Act).
  • The Act requires periodic risk assessments of agency purchase card programs to analyze the risks of illegal, improper, or erroneous purchases. The risk assessment results will be used to determine the scope, frequency, and number of audits that need to be conducted over the agency’s purchase card program.
  • The objectives were to assess, identify, and analyze the risk of illegal, improper, or erroneous purchases and payments; and determine whether the results of the risk assessment justify performing an audit in compliance with the Act.

What We Found

  • GKA concluded that the overall risk of illegal, improper, or erroneous purchases and payments through USAID’s purchase card program in 2022 was low, and that the results of its risk assessment did not warrant an audit for the use of purchase cards in FY 2022.
  • However, GKA found exceptions related to supporting documentation and appropriate training. Specifically, that the purchase cardholders and approving officials did not ensure that supporting documents and training certification are maintained and monitored in accordance with USAID policies and procedures.
  • Additionally, GKA found that management did not collaborate with the Office of Acquisition and Assistance to enforce its policies and procedures to ensure cardholders are adequately monitored for compliance with purchase card policies. 

Why It Matters

  • Assessing risks of illegal, improper, or erroneous purchases and payments supports efforts to prevent fraud, waste, and abuse of government-wide purchase card programs.

  • We made three recommendations to address the weaknesses identified in the report. USAID agreed with the recommendations and is taking action to close them.

0-000-23-010-C_0.pdf1.17 MB

Recommendations

Recommendation
1

USAID's Chief Financial Officer: Implement controls to ensure that cardholders properly maintain official records for all transactions made with their cards in accordance with Section VI of ADS 331MAA so that supporting documentation for card charges can be reviewed

Questioned Cost
0
Funds for Better Use
0
Close Date
Recommendation
2

USAID's Chief Financial Officer: Verify if all purchases cardholders are up to date with their training and enforce ADS 331MAA section 3.2.

Questioned Cost
0
Funds for Better Use
0
Close Date
Recommendation
3

USAID's Chief Financial Officer: Collaborate with the Office of Acquisition and Assistance to enhance its policies and procedures to ensure cardholders are adequately monitored for compliance with purchase card policies.

Questioned Cost
0
Funds for Better Use
0
Close Date