GAO Report on Government Credit Card Abuse

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The study found that around 41% of all transactions made with purchase cards

during that time period were not properly authorized.

GAO Report on Government Credit Card Abuse

The Government Accountability Office recently released a report entitled

" Government Purchase Cards: Actions Needed to Strengthen Internal Controls to

Reduce Fraudulent, Improper, and Abusive Purchases " . The report for the 2006

fiscal year detailed certain improper charges that were put on government credit

cards. According to the report, the purchase card program has had success in

increasing purchase efficiency. However, the report also notes that " ...if

not properly managed and controlled, use of the purchase cards results in

fraud, waste, and abuse. "

The study found that around 41% of all transactions made with purchase cards

during that time period were not properly authorized. Around 48% of

transactions above the $2,500 " micropurchase threshold " were unauthorized. From

the

sampling that the GAO studied, around $1.8 million worth of purchases was

unaccounted for. The report refers to the failure rate as " unacceptably high. "

Examples of fraud, abuse and waste were found at " dozens " of government

agencies, including:

* the U.S. Forest Service--$642,000 worth of fraudulent use of

convenience checks paid to cardholder's live-in boyfriend

* the U.S. Navy--$2,200 worth of lost computer equipment (presumed

stolen)

* National Science Foundation--$1,800 worth of fraudulent purchases

from a nail salon

* United States Postal Service (USPS)--$1,100 for internet dating sites

* Department of the Interior--$24,300 worth of " Improper cash advances "

for personal gain

* USPS--$13,500 for dinner at Ruth's Steakhouse

* Department of State--$360 in women's underwear and lingerie for use

during jungle training by trainees of a druge enforcement program in Ecuador

* Department of Defense--$77,000 in high-end clothing stores

You can read the entire GAO report _here_

(http://www.gao.gov/new.items/d08333.pdf) .

_Contact Congress about the GAO report_

(http://www.congress.org/congressorg/issues/alert/?alertid=11252931 & type=ML) .

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