Office of Audit
OF THE INTERNAL REVENUE SERVICE’S PURCHASE CARD
VIOLATIONS REPORT AND THE STATUS OF RECOMMENDATIONS
Final Report issued on January 24, 2020
Highlights of Reference Number: 2020-10-011 to Commissioner of Internal Revenue.
IMPACT ON TAXPAYERS
Federal audits of agency charge card programs have found varying degrees of fraud, waste, and abuse. The Government Charge Card Abuse Prevention Act of 2012 (Charge Card Act), which was signed into law on October 5, 2012, requires Executive Branch agencies to establish and maintain safeguards and internal controls for Government 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. These semiannual reports (Purchase Card Violations Reports) are prepared by the agency head, e.g., Department of the Treasury, and reviewed by the Inspectors General prior to the agency submitting the report to the Office of Management and Budget. The overall objective of this audit was to assess whether the IRS complied with the Charge Card Act requirements for the period April 1, 2019, through September 30, 2019, and the status of prior Government charge card recommendations.
WHAT TIGTA FOUND
Our review of the IRS’s purchase card program found that controls are generally effective, and the number of purchase card violations identified by the IRS Credit Card Services Branch were minimal and generally for nominal amounts.
For the period of April 1, 2019, through September 30, 2019, the IRS identified seven instances of confirmed purchase card misuse totaling approximately $150, including items purchased for personal use such as hand sanitizer, candy, and a meal carrier. The IRS also reported eight instances of potential purchase card misuse that are still pending agency investigation.
In addition to the seven confirmed misuse cases reported in the IRS Purchase Card Violations Report, the Credit Card Services Branch also identified 37 purchase card transactions totaling just under $35,000 that did not comply with Office of Management and Budget charge card policy guidance.
WHAT TIGTA RECOMMENDED
TIGTA made no recommendations as a result of the work performed during this review. However, key IRS officials reviewed this report prior to its issuance and agreed with the facts and conclusions presented.
READ THE FULL REPORT
To view the report, including the scope, methodology, and full IRS response, go to:
Phone Number / 202-622-6500
E-mail Address / TIGTACommunications@tigta.treas.gov
Website / https://www.treasury.gov/tigta