Require ARC to update its MCC tracking log, to include the amount, the date of MCC override removal, and staff assigned, to ensure that an override is removed after the approved purchase is made.
Publication Report
2020-KC-0001 | January 31, 2020
HUD’s Purchase Card Program Had Inaccurate Records, Untimely Training, and Improper Purchases
The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General audited HUD’s compliance with the purchase card program requirements for fiscal years 2017 and 2018 based on our risk assessment. Our audit objective was to determine… moreRelated Recommendations
Chief Procurement Officer
Implement a process to periodically audit or reconcile ARC’s records.
Implement a process to periodically review approving officials’ span of control to ensure that the requirement is not exceeded.
Implement a process with ARC to ensure that cardholders and approving officials are notified before purchase card training is due to allow training to be completed in a timely manner.
Implement a process to ensure that purchase cards are suspended when a cardholder or approving official fails to complete training.
Research why ARC provided incomplete monthly transactional data and identify a solution to ensure the completeness of future transmissions.
Enhance the process to periodically analyze data for split transactions or improper MCCs and follow up on any potential issues identified.
Implement a process with Citibank and ARC to provide global notifications to cardholders and approving officials before autoclosures of credit card statements.
Implement a process to suspend cardholders or approving officials who repeatedly cause HUD to pay interest.
- Status2020-KC-0001-002-EOpenClosedClosed on May 18, 2020$1,807.00Questioned Costs
Recommendations with questioned costs identify costs: (A] resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B] that are not supported by adequate documentation (also known as an unsupported cost]; or (C] that appear unnecessary or unreasonable.
Obtain supporting documentation for the $1,807 spent on two cardholders’ purchase cards or require the vendors or cardholders to repay the funds to the applicable HUD program.