TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRATION

Office of Audit

Highlights

REVIEW OF THE INTERNAL REVENUE SERVICE’S PURCHASE CARD VIOLATIONS REPORT

Final Report issued on July 15, 2016

Highlights of Reference Number:  2016-10-055 to the Internal Revenue Service Deputy Commissioner for Operations Support.

IMPACT ON TAXPAYERS

Federal audits of agency charge card programs have found varying degrees of fraud, waste, and abuse.  On October 5, 2012, the President signed into law the Government Charge Card Abuse Prevention Act of 2012 (Charge Card Act), which reinforced Administration and congressional efforts to prevent fraud, waste, and abuse of Governmentwide charge card programs.

WHY TIGTA DID THE AUDIT

This audit was initiated because the Charge Card Act requires each agency with more than $10 million in purchase card spending in the prior fiscal year to submit semiannual reports of employee purchase card violations and the disposition of those violations, including any disciplinary actions taken.  The overall objective of this review was to assess the IRS’s implementation of and compliance with the law’s requirements for the period October 1, 2015, to March 31, 2016.

WHAT TIGTA FOUND

The IRS properly identified and reported 30 instances of confirmed purchase card misuse and four instances of purchase card misuse pending final agency action.  TIGTA’s independent review did not identify additional instances of confirmed or pending purchase card misuse.  The 30 confirmed purchase card misuse cases reported by the IRS collectively totaled almost $4,000.

TIGTA also reviewed the IRS’s current credit card guidance and determined that policies and controls have been established that are designed to mitigate the risk of fraud and inappropriate Government travel and purchase charge card practices, including controls that address centrally billed travel card accounts.

Finally, TIGTA reviewed the final version of the Fiscal Year 2016 Department of the Treasury Charge Card Management Plan and determined that it had been updated to comply with the requirements in the Charge Card Act.

WHAT TIGTA RECOMMENDED

The Chief, Agency-Wide Shared Services, should issue a separate notification to all purchase cardholders and their managers, reminding them of their responsibilities and listing specific prohibited items, such as hand sanitizers.

In its response, the IRS agreed with TIGTA’s recommendation, noting that it plans to issue a separate notification to purchase cardholders, and their purchase card approving officials and managers, outlining their responsibilities and including specific prohibited items, such as hand sanitizers.

READ THE FULL REPORT

To view the report, including the scope, methodology, and full IRS response, go to:

http://www.treasury.gov/tigta/auditreports/2016reports/201610055fr.pdf.

 

Phone Number   /  202-622-6500

E-mail Address  /  TIGTACommunications@tigta.treas.gov

Website             /  https://www.treasury.gov/tigta