Why We Did This Review
The Government Charge Card Abuse Prevention Act of 2012 (the Charge Card Act) requires the Office of Inspector General (OIG) to conduct periodic risk assessments of Agency purchase card programs (including convenience checks), combined integrated card programs, and travel card programs to analyze the risks of illegal, improper, or erroneous purchases. OIG uses the results to determine the scope, frequency, and number of audits of USAID’s purchase card program that need to be conducted. Our objectives for this assessment were to (1) assess, identify, and analyze the risk of illegal, improper, or erroneous purchases and payments and (2) determine whether the results of the risk assessment justify performing an audit in compliance with the Charge Card Act.
What We Found
We were unable to perform the risk assessment of USAID’s management of purchase cards for FY 2024 for a variety of reasons. On January 26, 2025, the Secretary of State ordered a pause on all U.S. foreign assistance funded by State and USAID for review, and many USAID staff were put on administrative leave in February 2025. As a result, the Agency lacked the staff to respond to our information requests and could not provide us with access to relevant records and people. As such, we could not determine the overall risk of illegal, improper, or erroneous purchases and payments through USAID’s use of purchase cards in FY 2024.
Why It Matters
Federal law requires USAID management to establish effective internal controls to ensure that financial data and other information that are free from material misstatement whether due to fraud or error; comply—and ensure contractors comply—with applicable laws, regulations, and contracts and grant agreements; take corrective actions to address significant findings and recommendations from previous reviews; and make all financial records and related information available to OIG. In this case, USAID did not provide us with the information we needed for this risk assessment. Thus, we were unable to perform the risk assessment or determine whether justification exists for a subsequent audit.