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• U.S. Environmental Protection Agency	18-P-0232
^ h % Office of Inspector General	August 20,2018
At a Glance
Why We Did This Project
The U.S. Environmental
Protection Agency's (EPA's)
Office of Inspector (OIG)
conducted this audit after a risk
assessment determined that
the risk was high enough to
warrant an audit.
Our objective was to determine
whether EPA internal controls
over its purchase card and
convenience check program
are adequate to prevent and
detect material illegal, improper
and erroneous purchases.
This report addresses the
following:
• Operating efficiently and
effectively.
EPA's Purchase Card and Convenience Check
Program Controls Are Not Effective for Preventing
Improper Purchases
What We Found
EPA internal controls were not effective. Cardholders,
approving officials, the purchase card team, and EPA
program offices were not providing oversight needed
to achieve compliance with internal controls. Although
cardholders and approving officials must ensure that
each purchase request complies with federal and
agency acquisition and appropriation rules, in most
transactions, they did not.
Ineffective oversight
at the EPA contributed
to improper purchases
totaling $57,017 from
sampled transactions.
Recommendations and Planned Agency Corrective Actions
We made a total of 11 recommendations, including 10 to the Assistant
Administrator for Administration and Resources Management and one to
the Deputy Administrator.
Highlights from the 10 recommendations to the Assistant Administrator for
Administration and Resources Management include requests for the agency
to (1) conduct an assessment and determine how to enhance controls, reduce
confusion and achieve compliance; (2) determine whether adding language
about cardholder and approving official responsibilities to performance standards
would be beneficial and improve compliance; (3) implement preventive controls
that would stop transactions that do not have required approvals or funding;
(4) fully implement and increase the use of detective controls; and (5) issue
guidance regarding penalties for noncompliance and the process for suspending
cardholder privileges due to noncompliance.
One recommendation requested that the EPA Deputy Administrator issue an
agencywide memorandum to emphasize compliance with federal and EPA
requirements for purchase card and convenience check transactions.
The EPA agreed to take corrective actions on all 11 recommendations and
provided planned completion dates. The agency's planned corrective actions and
completion dates meet the intent of the recommendations. All recommendations
are resolved with corrective actions pending.
Send all inquiries to our public
affairs office at (202) 566-2391
or visit www.epa.gov/oiq.
Listing of OIG reports.

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