Why We Did This Audit
The Government Charge Card Abuse Prevention Act of 2012 (Charge Card Act) requires the inspector general of each executive agency with more than $10 million in travel card spending to periodically conduct audits or reviews of travel card programs. Such oversight to identify risks of abuse can help agency officials better prevent or detect illegal, improper, or erroneous purchases and payments. USAID spent approximately $83.2 million through travel cards in fiscal year (FY) 2024, according to our analysis of the Agency’s travel card expenditures. Our objective was to assess, identify, and analyze the risks of illegal, improper, or erroneous purchases and payments to USAID’s travel card program in fiscal year 2024.
What We Found
USAID’s travel card program had low risk in FY 2024. Based on our review, USAID complied with the Charge Card Act in FY 2024, and the risk of illegal, improper, or erroneous purchases and payments in the Agency’s travel card program was low. We assessed six program areas and found that five of them fully met criteria for low-risk travel programs. The remaining program area met the low-risk criteria. We do not have any outstanding travel card recommendations for USAID to address. Further, our Office of Investigations did not identify any substantiated allegations of misuse of government travel cards or illegal purchases made by USAID in FY 2024.
USAID met laws and regulations for its travel card program with one exception: a required risk profile. The Agency did not develop a risk profile for its program in FY 2024 because it did not enforce its policy to do so. OMB Circular A-123, Appendix B, requires agencies to develop a risk profile for their government charge card programs that is coordinated with their annual strategic reviews and incorporated in the enterprise risk management process.
Why It Matters
Ongoing oversight of USAID’s travel card program helps ensure that the Agency is well positioned to prevent and address abuse, including potential fraudulent, illegal, improper, or erroneous purchases or payments using taxpayer dollars.
A risk profile identifies, assesses, responds to, and reports on risks to an agency’s charge card program. Developing a risk profile for the program would help USAID identify and mitigate risks associated with travel cards. In addition, a risk profile would strengthen USAID’s management of the program as the Agency winds down its operations.
We recommend that USAID develop a risk profile for its travel card program in coordination with its annual strategic review as required in OMB Circular A-123.