Charge Card Risk Assessment: MCC’s Programs Showed Low Risk of Improper Purchases and Payments in FY 2023

Charge Card Risk Assessment: MCC’s Programs Showed Low Risk of Improper Purchases and Payments in Fiscal Year 2023

Why We Did This [Audit/Evaluation] 

• Public Law 112-194, the Government Chard Card Abuse Prevention Act of 2012 (Charge Card Act) requires the OIG to perform an annual risk assessment of government-wide charge card programs.  OMB Circular No. A-123, Appendix B, “A Risk Management Framework for Government Charge Card Programs,” August 27, 2019 (OMB Circular), lists the aspects of compliance with the Charge Card Act.
• We contracted with the independent certified public accounting firm of RMA Associates LLC (RMA) to conduct the assessment in accordance with the Charge Card Act, the OMB Circular, and the Council of the Inspectors General on Integrity and Efficiency’s Quality Standards for Inspection and Evaluation.
• The objective was to assess the risks of illegal, improper, or erroneous purchases and payments in MCC’s FY2023 charge card programs and determine the necessity of an audit.

What We Found

• RMA concluded that the overall risk assessment of MCC’s charge card programs is low, and an audit is not warranted.
• However, the firm found that MCC did not conduct regular reviews of all purchase card holder statements.

Why It Matters

• The Charge Card Act was enacted to prevent fraud, delinquency, or misuse that may exist in a federal agency’s charge card program. 
• We are making one recommendation to address the finding in the report.