Sunday, June 30, 2013

IRS Credit Card Abuses

The U.S. Treasury Department has released a report showing improper purchases by IRS employees using  federal credit cards. 

Improper purchases:  Included in the list of abuses were purchases for the following:
  • Wine for an expensive luncheon
  • Romance novels, diet pills, steaks, and baby related items ($2,655 by one employee)
  • Renting a popcorn machine ($3,152)
  • Kazoos and bathtub toys for managers meetings ($418)
  • Nerf footballs never used ($119)
The statistics:  
  •  In 2010 and 2011, the IRS spent nearly $108 million on more than 273,000 purchases with credit cards.  
  • There were 327 cases where employees divided purchases to avoid the $3,000 per transaction limit.
  • A total of just 94 employees were responsible for the abuses and none of the employees were disciplined.
More information:  Click here to read more information about the Inspector General's report.

Internal controls:  Agencies with government issued credit cards should have clear internal controls and monitoring to prevent abuses.  Click here to read some of the other blogs I've written on the subject.

Mike Purdy's Public Contracting Blog 
© 2013 by Michael E. Purdy Associates, LLC

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