NASA OIG: Review Of NASA’s Purchase and Travel Card Programs
WHY WE PERFORMED THIS REVIEW
Government charge card programs – both purchase and travel cards – can be efficient but are highly susceptible to misuse, fraud, waste, and abuse due to the large number of Federal employees with the ability to receive goods and services using the cards. During fiscal year (FY) 2017, NASA made over 112,000 purchase card transactions totaling more than $75 million and approximately 413,000 travel card transactions totaling about $62 million. Given the amount of taxpayer funds involved in these programs, effective internal controls are essential in mitigating risks of improper use. Our objective in this audit was to examine whether key internal controls in NASA’s charge card programs detect and prevent potentially illegal, improper, or erroneous transactions. To this end, we interviewed NASA officials responsible for purchase and travel card programs; reviewed relevant Federal laws, regulations, policies, and guidance; sampled charge card transactions; tested certain travel vouchers; and tested the design and effectiveness of key internal controls administered by the Agency.
WHAT WE FOUND
NASA’s internal controls over its travel and purchase card programs generally were effective in detecting misuse, fraud, waste, and abuse. Overall, we found NASA employees did not charge personal transactions on their travel cards and purchase cards were generally used appropriately. However, weaknesses exist where travelers did not consistently use the travel card for official travel expenses as required. Further, some purchase card transactions lacked documentation supporting the request, goods receipt, and special approval. In addition, sales tax was improperly paid on several transactions and we found examples of purchase transactions split into smaller purchases to not exceed the cardholder’s spending limit. While NASA mandates that all travel and purchase cardholders take training to ensure they fully understand their responsibilities, internal controls over these programs could be strengthened by revising NASA policy and enhancing cardholder training.
WHAT WE RECOMMENDED
To improve the effectiveness of internal controls within NASA’s travel card program, we recommended that the Chief Financial Officer establish a procedure to monitor whether travelers are using their travel cards for all official travel expenses as required and remind NASA travel cardholders and require acknowledgement in writing of their understanding of cardholder use. Further, to increase the effectiveness of internal controls in the purchase card program, we recommended that the NSSC Executive Director reiterate to purchase cardholders the definitions and requirements related to split purchases, minimum documentation requirements, and recoupment of sales tax; and include the aforementioned requirements in the triennial purchase card training. Finally, we recommended that NASA’s Assistant Administrator for Procurement specify in written policy the type of evidence that should be maintained as proof that goods ordered were received.
We provided a draft of this report to NASA management for their review and comment. Responding to our five recommendations, management concurred and described its planned actions. We consider management’s comments responsive; therefore, the recommendations are resolved and will be closed upon completion and verification of the proposed corrective actions.
