Purchase Card Risk Assessment: USAID’s Program Showed Low Risk of Improper Purchases and Payments in Fiscal Year 2023

Audit Report
Report Number
0-000-24-009-C

Why We Did This Assessment 

  • We contracted with the independent certified public accounting firm of GKA P.C. Certified Public Accountants & Consultants to conduct a risk assessment of USAID’s purchase card program for fiscal year 2023 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 risk of illegal, improper, or erroneous purchases and payments.  The risk assessment results are to 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 

  • The audit firm concluded that the overall risk was low for the purchase card program in fiscal year 2023, and that the results did not justify an audit.
  • However, the audit firm found exceptions related to supporting documentation and unsigned monthly billing bank statements and that USAID management did not 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 in the report.  USAID agreed with the recommendations and reported plans to implement them.
0-000-24-009-C.pdf1.38 MB

Recommendations

Recommendation
1

Enforce implemented policies to hold Approving Officials accountable for ensuring that cardholders under their purview 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
Recommendation
2

Enforce its policies to ensure that Approving Officials are performing their assigned duties to review and sign the signed Monthly Billing Bank Statements upon receipt from their respective cardholders.

Questioned Cost
0
Funds for Better Use
0
Recommendation
3

Continue to counsel, retrain, and document any cardholder accounts found non-compliant.

Questioned Cost
0
Funds for Better Use
0