DHS updates purchase card requirements
Investigators called upon DHS to make changes over summer, in response to reports of fraudulent use of cards after Hurricane Katrina.
The Homeland Security Department has implemented new rules on employees' use of purchase cards, accepting recommendations made by the Government Accountability Office following reports of millions of dollars of wasteful and fraudulent spending after Hurricane Katrina.
A lack of internal oversight has led to "potentially fraudulent, improper and abusive purchase[s]" at DHS agencies, GAO and the Homeland Security Department inspector general said in a joint report released Thursday. In a letter responding to the auditors, DHS said it has implemented needed fixes to its purchase card manual and will exercise additional oversight of the program.
The report (GAO-06-1117) called upon DHS to establish procedures for better oversight of purchase cards, and to do a better job enforcing related rules.
Following Hurricane Katrina, the Federal Emergency Management Agency and other parts of DHS were criticized for purchases of an unused 63-inch plasma television and a beer brewing kit, among other questionable buys labeled wasteful or fraudulent.
"To ensure the most effective use of the purchase card, federal agencies must foster a strong control environment and establish sound internal controls," investigators stated.
The report told DHS officials to ensure that "highly pilferable assets" such as laptops, cell phones and personal digital assistants be "entered into an accountable property system immediately after being received." It also said the department should develop a range of disciplinary actions for employees who fail to abide by the cardholder policy.
In addition, the report recommended that the department monitor open accounts and close those left unused for more than a year.
DHS agreed with the report's recommendations, and stated in a written response that additional training has been required for those using the purchase cards, as well as those responsible for auditing buys. Department officials did not respond to requests for further information.
Homeland Security card users will now have to collect bar codes from products they buy and file that information with supervisors, providing details specific to the product's location and assuming responsibility for its handling, the department said in its response.
In addition, they must report the items purchased before they are permitted to use them. Employees violating purchase card regulations might find themselves subject to termination of the card, firing and criminal prosecution.