Improvement Needed in Internal Controls for the Use of Convenience Checks at the U.S. Department of the InterioR

We audited U.S. Department of the Interior (DOI) convenience check transaction data to determine whether (1) the DOI or its bureaus made transactions that were illegal, improper, or erroneous and (2) the existing internal controls detected and prevented illegal, improper, or erroneous transactions. Our audit timeframe was the first 6 months of fiscal year 2017. Under the DOI’s charge card program, use of convenience checks may be authorized when a vendor does not accept the charge card. During the audit timeframe, 658 employees had authority to write convenience checks, and 5,255 checks were written, totaling approximately $3 million plus an additional $56,447 in transaction fees. We focused our audit on convenience checks written for more than $2,500 during that timeframe—a quantity of 90 transactions totaling $286,318—and found weak internal controls that created an environment vulnerable to financial mismanagement. Through our data analysis we found the following internal control problems: • Missing documentation and reviews/approvals • Limit exceeded for service-related purchases • Declined convenience checks • Split purchase While our review involved a small sample of the total universe of purchase transactions at the DOI, our findings highlight issues that may be applicable across the DOI charge card program. We made five recommendations to help the DOI and its bureaus improve the management and oversight of convenience checks. Based on the Office of Acquisition and Property Management’s response to our draft report, we consider all five recommendations to be resolved but not implemented.