Why We Did This Audit
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 risk of illegal, improper, or erroneous purchases and payments. To answer the objective, RMA analyzed and tested MCC’s internal controls over its charge card programs for the fiscal year ending September 30, 2024. Charge card disbursements during this period totaled $4,446,039.
What We Found
The firm concluded that MCC’s charge card programs had a low risk of illegal, improper, or erroneous purchases and payments, and that the results of the risk assessment did not warrant an audit. However, the firm noted that MCC did not provide official verification of purchase card reviews during the review and approval process for MCC’s Purchase Card Program.
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.