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.

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