Office of Inspector General
U.S. Environmental Protection Agency
At a Glance
21-P-0242
September 22, 2021
Why We Did This Audit
We conducted this audit to
determine whether the
U.S. Environmental Protection
Agency's internal controls over
its purchase card and
convenience check program are
adequate to prevent and detect
illegal, improper, and erroneous
purchases and payments.
The Government Purchase Card
Abuse Prevention Act of 2012
requires that inspectors general
conduct periodic assessments of
their agencies' purchase card
programs. In response to our
2018 audit (Report No. 18-P-
0232). the EPA implemented
new internal controls over its
purchase card and convenience
check program. However, during
our 2019 risk assessment
(Report No. 20-P-0006), we
found that the EPA's transition to
a new purchase card contract
adversely affected these newly
implemented internal controls,
and we determined that we
should conduct an audit in 2020.
This audit supports an EPA
mission-related effort:
•	Operating efficiently and
effectively.
This audit addresses a top EPA
management challenge:
•	Complying with key internal
control requirements (data
quality).
Address inquiries to our public
affairs office at (202) 566-2391 or
OIG WEBCOMMENTS@epa.gov.
List of OIG reports.
EPA Needs to Strengthen Its Purchase Card
Approval Process
What We Found
Since our 2018 audit and 2019 risk
assessment, the EPA has made several
improvements to its purchase card and
convenience check program to detect illegal,
improper, or erroneous purchases.
However, the Agency's internal controls are
still not adequate to prevent and detect
erroneous purchases.
The Agency needs to improve
oversight of its approximately
$25 million in annual purchase
card and convenience check
expenses to be better
stewards of taxpayer dollars.
The EPA Acquisition Guide and the Agency's purchase card standard operating
procedures establish policy and procedures for using purchase cards and
convenience checks. For example, the EPA Acquisition Guide states that the
approving official is responsible for determining whether transactions are
reasonable and necessary. Of the 25 purchase card and convenience check
transactions we analyzed, only two (8 percent) fully complied with the policies
and procedures we reviewed. Conversely, 23 transactions (92 percent) had at
least one instance of noncompliance. We found that cardholders made and
approving officials approved improper purchases and that the EPA's purchase
card team did not monitor purchases to ensure timely processing and approval,
as required by EPA procedures. We determined that $5,493.97 (5 percent) of
the $119,618.66 purchase card and convenience check expenses we reviewed
were unallowable.
These issues occurred for three reasons. First, cardholders and approving
officials lacked knowledge of relevant purchase card policies. Second,
cardholders and approving officials underutilized CitiManager's capabilities to
document and monitor purchases because they did not believe that the
system was user-friendly or that they received adequate training. Third, the
purchase card team did not use CitiManager's full capabilities to adequately
monitor purchases. As a result, the Agency continues to be at risk of making
improper or erroneous purchases, which may result in the misuse or waste of
taxpayer funds.
Recommendations and Planned Agency Corrective Actions
We recommend that the assistant administrator for Mission Support train
cardholders and approving officials on purchase card and convenience check
requirements; provide training on the use of CitiManager; require that staff use
CitiManagerto maintain approvals and documentation; and require the
purchase card team to use CitiManager's oversight capabilities.
The EPA agreed with our four recommendations and provided acceptable
corrective actions or alternative corrective action plans. All recommendations
are resolved with corrective actions pending.

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