Contractor Purchasing Card Usage

We identified 21 TVA contractors who held purchasing cards from March 28, 2004, to March 28, 2007, incurring 35,605 transactions totaling about $16.7 million. This included six contractors whose purchases each totaled more than $1 million for the period. A review of documentation supporting selected transactions found instances of noncompliance with TVA's policy and procedures. Specifically, we found (1) purchases that were, by policy, disallowed (e.g., computer equipment, computer software, fuel, rental of heavy equipment, and rental of vehicles); (2) transactions where it appeared the total charge was split to stay below the $5,000 transaction limit and avoid obtaining additional approval; (3) transactions with no detailed receipt showing the description and quantity of items purchased; (4) transactions with no receipt; and (5) transactions with receipts that were illegible. We also identified other control improvement opportunities. TVA management generally agreed with our findings and recommendations and has taken or plans to take corrective action.