HUD OIG conducted an evaluation of HUD’s Governmentwide Purchase Card (GPC) Program.  Our objective was to determine whether purchase card transactions complied with prescribed policies and procedures.

We selected a total of 73 transactions for review.  Our review indicated that the cardholders did not always ensure that: (1) the availability of funds was properly documented, (2) required sources were used, (3) competitive bids were obtained when required, (4) purchase orders were used as required, (5) purchase logs were maintained, (6) sales tax charges were not paid, (7) purchase logs were reconciled with monthly bank statements, (8) supporting records were retained for a sufficient period. We also noted that, in five instances, purchases were split apparently in order to avoid exceeding the micropurchase threshold or cardholders’ single purchase limits.

To improve the effectiveness of the GPC Program, steps must be taken by HUD.  These steps include ensuring that: (1) purchase card transactions are conducted in accordance with applicable laws and regulations, (2) managers and approving officials perform a thorough review for potential split purchases, and (3) cardholders are properly trained.