AUDIT UNIT TOP 5 PURCHASE CARD AUDIT ISSUES AND FRAUD CONTRIBUTORS

We are pleased as the OMES Division of Capital Assets Management (DCAM) Audit Unit, to publish a list of common non-compliances and misconceptions that are discovered during our purchase card audits. We have also added fraud contributors to help administrators avoid situations that may contribute to purchase card fraud. This information is published for the accessibility and usability of agencies involved or interested in the purchase card program.

Stated in order of significance and most commonly discovered: 

1.    The statewide contract and travel purchase card approving official must provide written approval prior to the purchase. Oklahoma Purchase Card Procedures 6.8.2.2 and 6.8.3.2    

2.     All receipts shall be obtained for all purchases. The receipt shall give an itemized and detailed description of the purchase. Oklahoma Purchase Card Procedures 6.4

3.    The approving official must have attended the purchase card training and is at least one level higher than cardholder's position in the organization.  Oklahoma Purchase Card Procedures 3.9, 6.8.2.2, 6.8.1.2 and 6.8.3.2

4.    An authority order should be established for each card type (regular purchase card, travel card and statewide card) and the agency should use change orders to amend these encumbrances as necessary. The encumbrance balance should be sufficient to cover expenditures before they occur. Oklahoma Purchase Card Procedures 5.1

Purchase Card Fraud Contributors

1.  Lack of segregation of duties is the single greatest contributor to purchase card fraud in the State of Oklahoma Purchase Card program.

2.  Missing receipts to support the purchase.

3.  Lack of approving official reviewing monthly memo statements and transaction documentation.