Although the Science and Technology Directorate (S&T)
had internal controls in place to ensure it managed and maintained its
Bankcard Program as required, S&T did not always adhere to Department
of Homeland Security and internal purchase card policies and procedures.
Of 421 purchase card transactions selected for review, we identified 394
transactions that did not have required supporting documentation,
separation of key transaction duties, approvals and other required
signatures, or did not comply with other risk-based procedures.
According to S&T officials, these issues occurred due
to shortfalls in program oversight and training, as well as outdated
policy. As a result, we identified $63,213 in questionable costs
associated with purchase card transactions for which S&T personnel
could not provide supporting documentation.
Without S&T adherence to established policies and
procedures, there is an increased risk of loss and vulnerability to
fraud. In addition, S&T has less assurance its internal controls are
effective in mitigating the risk of fraud and inappropriate charge card