Acquisition Management: Improvements Needed in Monitoring and Oversight of Purchase Card Use

Submitting OIG:

Smithsonian Institution OIG

Date Issued:

Friday, November 18, 2022

Agency Reviewed / Investigated:

Smithsonian Institution

Submitting OIG-Specific Report Number:

OIG-A-23-01

Component, if applicable:

Office of Contracting and Personal Property Managment

Location(s):

Agency-Wide

Type of Report:

Audit

Questioned Costs:

Funds for Better Use:

Number of Recommendations:

View Document:

Attachment	Size
OIG-23-01.pdf	2.07 MB

Recommendation Number	Recommendation Status	Significant Recommendation
OIG-A-23-01-01	Open	Yes
Develop and implement procedures to ensure that purchase card transactions are only approved by the approving officials and that all transactions are fully documented.
OIG-A-23-01-02	Open	Yes
Develop and implement procedures to ensure that training records are complete and accurate so initial and refresher training can be effectively and efficiently enforced.
OIG-A-23-01-03	Open	Yes
Develop and implement procedures to enforce compliance with initial and refresher training requirements for purchase cardholders and approving officials, such as (1) following up with individuals who are not in compliance, (2) suspending or canceling purchase cards, or (3) revoking delegated authority for approving officials who did not comply with refresher training requirements.
OIG-A-23-01-04	Open	Yes
Develop and implement procedures to monitor inactive cardholder accounts that may need to be closed because cardholders have separated from employment or transferred to another unit.
OIG-A-23-01-05	Open	Yes
Demonstrate a sustained and effective compliance review process to monitor whether Purchase Card Program duties and responsibilities are performed effectively, procedures are being followed, and internal controls continue to be effective.
OIG-A-23-01-06	Open	Yes
Develop and implement procedures that identify the specific reports that will be used for monitoring purchase card use, describe how flagged transactions will be evaluated and addressed, and establish the documentation that needs to be retained.
OIG-A-23-01-07	Open	Yes
Develop and implement a requirement for periodically reporting information to the Director of OCon&PPM that will assist in the oversight of the purchase cards. The report should provide statistical and narrative information on the use and management of the Purchase Card Program, such as compliance with training requirements, the results of compliance reviews and the monitoring of purchase card transactions. In addition, the report should determine whether the program’s internal controls continue to be effective.

Recommendation Number

Recommendation Status

Significant Recommendation

Additional Details

OIG-A-23-01-01

Open

Yes

Develop and implement procedures to ensure that purchase card transactions are only approved by the approving officials and that all transactions are fully documented.

OIG-A-23-01-02

Open

Yes

Develop and implement procedures to ensure that training records are complete and accurate so initial and refresher training can be effectively and efficiently enforced.