The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General audited the HUD’s government purchase card program. We initiated the review based on our participation in a collaborative effort with other inspectors general under the direction of the Council of Inspectors General on Integrity and Efficiency (CIGIE) to issue a consolidated report to the Office of Management and Budget on government purchase card use. Our objective was to determine whether HUD made purchase card transactions that were potentially illegal, improper, or erroneous and to report the results of our review to CIGIE for use in their consolidated report.
Two out of the forty six purchase card transactions we reviewed contained deficiencies. One transaction lacked a receipt of goods or services received because it was not reviewed or monitored. The other transaction lacked a written justification for a policy exception because HUD lacked procedures to identify the error.
We recommend that HUD review the two cardholders with incomplete approvals and determine whether the purchases were allowable and proper. If they were not for official government use, OCPO should determine whether the cardholders paid the credit bill for the improper charges, request reimbursement when applicable, and ensure that appropriate administrative sanctions are taken.