Background
The Postal Regulatory Commission (PRC) participates in the General Services Administration SmartPay® program. The program provides purchase cards to federal agencies through contracts negotiated with bank providers. PRC purchase card holders will use the government purchase card as its preferred acquisition method for official government business purchases $10,000 and under, to expedite purchasing, streamline payment, and reduce administrative costs.
In 2022, prior to relinquishing its oversight responsibility to the U.S. Postal Service Office of Inspector General (OIG), the PRC OIG conducted the PRC Purchase Card Expenses audit, which found among other things, that the PRC purchase card policy needed strengthening. This audit follows up on those findings.
What We Did
Our objective was to evaluate the PRC purchase card expenses and assess the effectiveness of internal controls and procedures. For this audit, we analyzed 252 of the 588 purchases (or about 43 percent) made from October 1, 2023, through July 31, 2025.
What We Found
The PRC made significant strides to improve controls over their purchase card program since the PRC Purchase Card Expenses audit, including standing up the Office of Budget and Finance, updating purchase card policies, and initiating a system to electronically track all purchases. However, we found opportunities for the PRC to further strengthen controls over purchase card transactions. Specifically, we identified inconsistencies and missing documentation across several transactions and noted other opportunities for the PRC to replace recurring monthly payments with contracts. Lastly, we found that the PRC did not consistently use preferred vendors as required. These conditions may result in missed opportunities for cost savings, reduce individual accountability, and increase the risk of misuse of purchase cards.
Recommendations and Management’s Comments
We made three recommendations to address the issues identified in the report. The Postal Regulatory Commission agreed with all three recommendations. Management’s comments and our evaluation are at the end of each finding and recommendation. The OIG considers management’s comments responsive to all recommendations. Corrective actions should resolve the issues identified in the report.
