OFFICE OF INSPECTOR GENERAL InspecƟon Report The Farm Credit AdministraƟon's Travel Card Program I‐17‐02 Inspector Sonya Cerne Issued January 31, 2017 FARM CREDIT ADMINISTRATION AGREED‐UPON ACTIONS: In order to improve the travel card program, the Agency agreed to: The Farm Credit Administration (FCA or Agency) is an independent Federal agency responsible 1. Provide education to for regulating, examining, and supervising the Farm Credit System and the Federal Agricultural cardholders on misuse of Mortgage Corporation. In order to meet mission requirements, FCA’s employees are sent on the government charge official travel. FCA participates in the government‐wide General Services Administration’s (GSA) card, proper cash advances, SmartPay Travel Card Program and currently contracts with the Bureau of the Fiscal Service (BFS) delinquencies, potential for travel administration and services. FCA is included under an issued contract with Citibank for disciplinary actions, the charge cards. FCA’s Office of Agency Services (OAS) is responsible for the overall administration importance of reviewing of the travel card program at FCA. statements for accuracy of charges, and the dispute The objective of this inspection was to determine if FCA’s oversight of the travel card program process. was effective. We found FCA’s oversight is generally effective. FCA established and implemented 2. Follow up on previous audit controls over the travel card program. For example, FCA established: recommendations and agreed‐upon actions by A process for travel card certifications and recertifications. We randomly sampled implementing, and employees to verify certifications were completed within the last three years. All of the including in the Charge Card sampled employees had certifications on file. Management Plan and/or Travel card limits and a methodology to restrict accounts. We found no cardholders had Operational Handbook for a limit above the standard and when appropriate, the Agency lowered limits on Travel Card Operations, a restricted cards. process to: A process to ensure travel charges are appropriate and related to official travel. OAS performs monthly audits on travel transactions. An OAS official reviews 10 percent of request and reconcile all randomly selected employees’ travel transactions each month looking for misuse, cash active FCA travel withdrawals, and verification of authorizations. cardholders with BFS on A new Operations Handbook for both travel and purchase cards. This handbook is a a quarterly basis to detailed step‐by‐step guide on how OAS completed reviews and documents controls ensure proper closures; over the program. and, provide annual Although it is generally effective, there are opportunities to further improve the travel card education to travel program. cardholders on Agency policies and areas of We identified 33 exceptions of the 585 transactions judgmentally sampled (5.6 percent): improvement found o 16 transactions by two individuals (2.7% of the sample) showing misuse of the during internal reviews. travel card. In both instances, FCA discovered the misuse during internal reviews and individuals received disciplinary actions prior to our review; OAS provided an article to be o Six transactions (1% of the sample) were identified as erroneous charges. The published in the Agency three individuals involved indicated the charges were inaccurate or from newsletter on the travel card. potentially stolen card numbers. However, they did not file a dispute with the Educational materials were also credit card company; and, provided that will be uploaded to o 11 transactions (1.9 % of the sample) lacked receipts in the travel system, the internal travel site covering lacked approvals per Agency policy, or the support and reasoning of official the areas found during the travel was not included in the file. inspection. The Charge Card Employees had not always made timely payments for travel card expenses; and, Management Plan was also Two employees were listed as active FCA cardholders even though they were previously updated to include the annual separated. education and quarterly review process. Therefore, the agreed‐ Through increased education to cardholders and documented processes for review, the travel upon actions are resolved and card program could be further improved to reduce delinquencies and potential misuse of the considered closed. travel card and increase the effectiveness of controls. Farm Credit Administration Office of Inspector General 1501 Farm Credit Drive McLean, Virginia 22102-5090 January 31, 2017 The Honorable Dallas P. Tonsager, Board Chairman The Honorable Kenneth A. Spearman, Board Member The Honorable Jeffery S. Hall, Board Member Farm Credit Administration 1501 Farm Credit Drive McLean, Virginia 22102‐5090 Dear Board Chairman Tonsager and FCA Board Members Spearman and Hall: The Office of Inspector General (OIG) completed an inspection of the Farm Credit Administration’s (FCA or Agency) Travel Card Program. The objective of this inspection was to determine whether FCA’s oversight of the travel card program was effective. We found FCA’s oversight of the travel card is generally effective. FCA established and implemented controls over the travel card program. For example, FCA established: A process for travel card certifications and recertifications. Travel card limits and a methodology to restrict accounts. A process to ensure travel charges are appropriate and related to official travel. A new Operations Handbook for both travel and purchase cards. We identified opportunities to improve the travel card program. In response to our report, the Agency agreed to: 1. Provide education to cardholders on misuse of the government charge card, proper cash advances, delinquencies, potential disciplinary actions, the importance of reviewing statements for accuracy of charges, and the dispute process. 2. Follow up on previous audit recommendations and agreed‐upon actions by implementing, and including in the Charge Card Management Plan and/or Operational Handbook for Travel Card Operations, a process to: request and reconcile all active FCA travel cardholders with BFS on a quarterly basis to ensure proper closures; and, provide annual education to travel cardholders on Agency policies and areas of improvement found during internal reviews. OAS provided an article to be published in the Agency newsletter on the travel card. Educational materials were also provided that are to be uploaded to the internal travel site covering the areas found during the inspection. The Charge Card Management Plan was also updated to include the annual education and quarterly review process. Therefore, the agreed‐upon actions are resolved and considered closed. We appreciate the courtesies and professionalism extended by FCA personnel to the OIG staff. If you have any questions about this inspection, I would be pleased to meet with you at your convenience. Respectfully, Elizabeth M. Dean Inspector General Enclosure TABLE OF CONTENTS BACKGROUND _______________________________________________________________________ 1 Prior Reviews ______________________________________________________________________ 2 INSPECTION RESULTS__________________________________________________________________ 2 Transaction Testing _________________________________________________________________ 3 Administrative Controls ______________________________________________________________ 4 Delinquencies ____________________________________________________________________ 4 Closure of Accounts _______________________________________________________________ 5 Agreed‐Upon Actions 1‐2 _____________________________________________________________ 6 OBJECTIVE, SCOPE, AND METHODOLOGY _________________________________________________ 7 ACRONYMS _________________________________________________________________________ 8 BACKGROUND dŚĞ&ĂƌŵƌĞĚŝƚĚŵŝŶŝƐƚƌĂƚŝŽŶ;&ŽƌŐĞŶĐǇͿŝƐĂŶŝŶĚĞƉĞŶĚĞŶƚ&ĞĚĞƌĂůĂŐĞŶĐǇƌĞƐƉŽŶƐŝďůĞĨŽƌ ƌĞŐƵůĂƚŝŶŐ͕ĞǆĂŵŝŶŝŶŐ͕ĂŶĚƐƵƉĞƌǀŝƐŝŶŐƚŚĞ&ĂƌŵƌĞĚŝƚ^ǇƐƚĞŵĂŶĚƚŚĞ&ĞĚĞƌĂůŐƌŝĐƵůƚƵƌĂůDŽƌƚŐĂŐĞ ŽƌƉŽƌĂƚŝŽŶ͘dŚĞŵŝƐƐŝŽŶŽĨƚŚĞŐĞŶĐǇŝƐƚŽĞŶƐƵƌĞĂƐĂĨĞ͕ƐŽƵŶĚ͕ĂŶĚĚĞƉĞŶĚĂďůĞƐŽƵƌĐĞŽĨĐƌĞĚŝƚĂŶĚ ƌĞůĂƚĞĚƐĞƌǀŝĐĞƐĨŽƌĂŐƌŝĐƵůƚƵƌĞĂŶĚƌƵƌĂůŵĞƌŝĐĂ͘ ƐƉĂƌƚŽĨƚŚĞŵŝƐƐŝŽŶ͕&ĞŵƉůŽǇĞĞƐĂƌĞƌĞƋƵŝƌĞĚƚŽĐŽŵƉůĞƚĞŽĨĨŝĐŝĂůŐŽǀĞƌŶŵĞŶƚƚƌĂǀĞů͘&ŽƌƚƌĂǀĞů ĞǆƉĞŶƐĞƐ͕&ƉĂƌƚŝĐŝƉĂƚĞƐŝŶƚŚĞŐŽǀĞƌŶŵĞŶƚͲǁŝĚĞ'ĞŶĞƌĂů^ĞƌǀŝĐĞƐĚŵŝŶŝƐƚƌĂƚŝŽŶ;'^Ϳ^ŵĂƌƚWĂǇ dƌĂǀĞůĂƌĚWƌŽŐƌĂŵĂŶĚĐƵƌƌĞŶƚůǇĐŽŶƚƌĂĐƚƐǁŝƚŚƚŚĞƵƌĞĂƵŽĨƚŚĞ&ŝƐĐĂů^ĞƌǀŝĐĞ;&^ͿĨŽƌƚƌĂǀĞů ĂĚŵŝŶŝƐƚƌĂƚŝŽŶĂŶĚƐĞƌǀŝĐĞƐ͘&ŝƐŝŶĐůƵĚĞĚƵŶĚĞƌĂŶŝƐƐƵĞĚĐŽŶƚƌĂĐƚǁŝƚŚŝƚŝďĂŶŬĨŽƌĐŚĂƌŐĞĐĂƌĚƐ͘& ƵƐĞƐŐŽǀĞƌŶŵĞŶƚƚƌĂǀĞůĐĂƌĚƐĨŽƌŽĨĨŝĐŝĂůƚƌĂǀĞůĂŶĚƚƌĂǀĞůƌĞůĂƚĞĚĞǆƉĞŶƐĞƐƚŽŝŶĐůƵĚĞƚƌĂŶƐƉŽƌƚĂƚŝŽŶ͕ ůŽĚŐŝŶŐ͕ŵĞĂůƐ͕ĂŶĚŝŶĐŝĚĞŶƚĂůƐ͘ &͛ƐƚƌĂǀĞůĐĂƌĚƉƌŽŐƌĂŵŝŶĐůƵĚĞƐƚǁŽƚǇƉĞƐ ŽĨĐŚĂƌŐĞĂĐĐŽƵŶƚƐĨŽƌƚƌĂǀĞů͗ŝŶĚŝǀŝĚƵĂůůǇ ďŝůůĞĚĂĐĐŽƵŶƚƐĂŶĚƚŚĞĐĞŶƚƌĂůůǇͲďŝůůĞĚ ĂĐĐŽƵŶƚ͘&ŽƌƚŚĞŝŶĚŝǀŝĚƵĂůůǇͲďŝůůĞĚĂĐĐŽƵŶƚƐ͕ ĞĂĐŚĚĞƐŝŐŶĂƚĞĚĐĂƌĚŚŽůĚĞƌŝƐƌĞƐƉŽŶƐŝďůĞĨŽƌ ĂĐĐŽƵŶƚƉĂǇŵĞŶƚƐ͘&ŽƌƚŚĞĐĞŶƚƌĂůůǇͲďŝůůĞĚ ĂĐĐŽƵŶƚ͕ƚƌĂǀĞůĞǆƉĞŶƐĞƐĂƌĞƉĂŝĚďǇƚŚĞ ĂŐĞŶĐǇĚŝƌĞĐƚůǇ͘&͛ƐKĨĨŝĐĞŽĨŐĞŶĐǇ ^ĞƌǀŝĐĞƐ;K^ͿŝƐƌĞƐƉŽŶƐŝďůĞĨŽƌƚŚĞŽǀĞƌĂůů ĂĚŵŝŶŝƐƚƌĂƚŝŽŶŽĨƚŚĞĐŚĂƌŐĞĐĂƌĚƉƌŽŐƌĂŵƐ ĂŶĚŵĂŶĂŐĞŵĞŶƚŽĨƚŚĞĐĞŶƚƌĂůůǇͲďŝůůĞĚ ĂĐĐŽƵŶƚ͘ ĂĐŚŐŽǀĞƌŶŵĞŶƚĂŐĞŶĐǇŵƵƐƚĂĚŚĞƌĞƚŽƚŚĞƌĞƋƵŝƌĞŵĞŶƚƐƐĞƚĨŽƌƚŚŝŶƚŚĞKĨĨŝĐĞŽĨDĂŶĂŐĞŵĞŶƚĂŶĚ ƵĚŐĞƚ;KDͿŝƌĐƵůĂƌͲϭϮϯ͕ƉƉĞŶĚŝǆ͕Improving the Management of Government Charge Card Programs͘dŚĞĐŝƌĐƵůĂƌƐƚŝƉƵůĂƚĞƐƚŚĂƚĂŐĞŶĐŝĞƐŵƵƐƚĚĞǀĞůŽƉĂŶĚŵĂŝŶƚĂŝŶǁƌŝƚƚĞŶƉŽůŝĐŝĞƐĂŶĚ ƉƌŽĐĞĚƵƌĞƐƌĞůĂƚĞĚƚŽĐŚĂƌŐĞĐĂƌĚƉƌŽŐƌĂŵƐ͘dŚŝƐŝŶĐůƵĚĞƐĂŶĂŶŶƵĂůƐƵďŵŝƐƐŝŽŶŽĨƚŚĞĂŐĞŶĐǇ͛ƐŚĂƌŐĞ ĂƌĚDĂŶĂŐĞŵĞŶƚWůĂŶƚŚĂƚŽƵƚůŝŶĞƐƚŚĞĂŐĞŶĐǇ͛ƐƐǇƐƚĞŵŽĨŝŶƚĞƌŶĂůĐŽŶƚƌŽůƐŽǀĞƌƚŚĞĐŚĂƌŐĞĐĂƌĚ ƉƌŽŐƌĂŵƐ͘ /ŶĂĚĚŝƚŝŽŶ͕ƚŚĞ'ŽǀĞƌŶŵĞŶƚŚĂƌŐĞĂƌĚďƵƐĞWƌĞǀĞŶƚŝŽŶĐƚŽĨϮϬϭϮ;ŚĂƌŐĞĂƌĚĐƚͿ ƐƵƉƉůĞŵĞŶƚĞĚKDŝƌĐƵůĂƌͲϭϮϯ͕ƉƉĞŶĚŝǆǁŝƚŚƌĞƉŽƌƚŝŶŐĂŶĚĂƵĚŝƚƌĞƋƵŝƌĞŵĞŶƚƐĂŶĚ ĂƵŐŵĞŶƚĂƚŝŽŶŽĨĞǆŝƐƚŝŶŐĐŽŶƚƌŽůƐ͘dŚĞŚĂƌŐĞĂƌĚĐƚĂŶĚKDDĞŵŽƌĂŶĚƵŵDͲϭϯͲϮϭ͕ Implementation of the Government Charge Card Abuse Prevention Act of 2012͕ĂůƐŽŵĂŶĚĂƚĞĚĞĂĐŚ /ŶƐƉĞĐƚŽƌ'ĞŶĞƌĂůƉĞƌĨŽƌŵĂƐƐĞƐƐŵĞŶƚƐŽĨĐŚĂƌŐĞĐĂƌĚƉƌŽŐƌĂŵƐϭ͘dŚĞKĨĨŝĐĞŽĨ/ŶƐƉĞĐƚŽƌ'ĞŶĞƌĂů;K/'Ϳ ĐŽŵƉůĞƚĞƐĂŶĂŶŶƵĂůƌŝƐŬĂƐƐĞƐƐŵĞŶƚĂŶĚŝŶŝƚŝĂƚĞĚƚŚŝƐŝŶƐƉĞĐƚŝŽŶĂƐƉĂƌƚŽĨŽƵƌŽŶŐŽŝŶŐĞĨĨŽƌƚƐŝŶƚŚŝƐ ĂƌĞĂ͘ ϭ&ĚŽĞƐŶŽƚŵĞĞƚƚŚĞƚŚƌĞƐŚŽůĚĨŽƌĂƌĞƋƵŝƌĞĚƚƌĂǀĞůĂƵĚŝƚƐĞƚĨŽƌƚŚŝŶƚŚĞŚĂƌŐĞĂƌĚĐƚ͘dŚĞŚĂƌŐĞĂƌĚĐƚĚŝĚŶŽƚ ĞƐƚĂďůŝƐŚĂƚŚƌĞƐŚŽůĚĨŽƌƉƵƌĐŚĂƐĞĐĂƌĚƉƌŽŐƌĂŵƐ͘/ŶƐƉĞĐƚŽƌƐ'ĞŶĞƌĂůŵƵƐƚƉĞƌĨŽƌŵĂŶĂŶŶƵĂůĂƐƐĞƐƐŵĞŶƚŽĨƉƵƌĐŚĂƐĞĐĂƌĚƐ͘Ɛ ƉĂƌƚŽĨŽƵƌŽŶŐŽŝŶŐĞĨĨŽƌƚƐ͕ƚŚĞK/'ƉĞƌĨŽƌŵƐĂŶĂŶŶƵĂůĂƐƐĞƐƐŵĞŶƚŽĨĂůůĐŚĂƌŐĞĐĂƌĚƉƌŽŐƌĂŵƐ͘ ϭ Prior Reviews The OIG has conducted several reviews to include the following: In 2014, the OIG conducted an audit, The Farm Credit Administration’s Travel Card Program (A‐ 14‐03), August 2014. The objective was to determine whether FCA’s oversight of the travel card program was effective. The Agency agreed to: o Provide education to cardholders, at least annually; o Determine a process for quarterly transaction activity reports; o Document procedures on placing or removing an account in restricted status and reconciliations of open status accounts; o Evaluate the sufficiency of existing check out procedures; and o Update the Charge Card Management Plan, PPM 711, and PPM 826. All agreed‐upon actions were addressed and closed by September 2014. The OIG also performed an inspection, Distribution, Usage and Control of Purchase and Travel Cards at the Farm Credit Administration (I‐09‐01), June 2009. The objective was to determine the effectiveness and efficiency of the implementation of government purchase and travel cards at FCA. For travel cards, the inspection found FCA had adequate controls over the program and there were no delinquencies over 60 days. The Agency agreed to update policies, determine if limits should be lowered during low activity levels, and provide transaction reports on a quarterly basis. All agreed‐upon actions were addressed and closed by September 2009. INSPECTION RESULTS The objective of this inspection was to determine if FCA’s oversight of the travel card program was effective. We found FCA’s oversight is generally effective. FCA established and implemented controls over the travel card program. For example: FCA has a documented process for travel card certifications and recertifications. New FCA employees certify they understand these policies and procedures when they are issued the travel card. Every three years, employees must recertify that they will adhere to the policies and procedures. We randomly sampled employees to verify certifications were completed within the last three years. All of the employees selected to review had certifications on file. Travel card limits and restricted accounts were established. As of October 2016, FCA had a total of 294 travel cardholders. The standard travel limit for travel cards is $8,000. Of the 294 cardholders, 243 had the standard limit. The following chart shows the breakdown of limits and number of cardholders in each category: 2 Limits Number of Cardholders $20 1 $1000 16 $2500 5 $5000 29 $8000 243 Grand Total 294 We found no cardholders had a limit above the standard amount. Further, we found the Agency lowered limits on restricted cards, which are cards that have been restricted due to creditworthiness. FCA has a process to ensure travel charges are appropriate and related to official travel. OAS performs monthly audits on travel transactions. An OAS official reviews 10 percent of randomly selected employees each month for misuse, cash withdrawals, and verification of authorizations on travel transactions. FCA implemented a new Operations Handbook for both travel and purchase cards. This handbook is a detailed step‐by‐step guide on how OAS completes reviews and documents controls over the program. While the travel card program oversight is generally effective, there are opportunities for improvement in cardholder education, certain administrative controls, and items identified in our previous review. Transaction Testing When an employee uses their travel card, the charge is included on reports with the employee, expense, merchant, date, location, and additional items listed per transaction. We reviewed FCA’s travel activity for Fiscal Years 2015 and 2016. We judgmentally sampled 585 transactions for further review2. Most of the transactions contained proper documentation, approvals, and information supporting official travel expenses. From our judgmental sample, we identified the following 33 exceptions of the 585 transactions sampled3: 16 transactions by two individuals showing misuse of the travel card. One individual used their travel card to purchase airline tickets for family members. The other individual did not follow 2 We judgmentally sampled the transactions based on: activity, type, location, and number of charges; cash withdrawal periods; and travel timeframes. Because our sample was judgmental and not statistically sampled, we cannot project our findings to the entire population. 3 Of the exceptions found, we determined that a referral for investigations was not deemed necessary after a review of the travel system, conducting interviews, and discussions with officials. 3 Agency policy on cash advances. In both instances, FCA also discovered the misuse during internal reviews and individuals received disciplinary actions prior to our review. Six transactions between three individuals were identified as erroneous charges. All three individuals indicated the charges were inaccurate or from potentially stolen card numbers. However, none of the individuals filed a dispute for the charges with the credit card company, as of our review. Two of the individuals stated they were unaware of the transactions until our conversation and they filed a dispute after our discussions. The remaining individual was aware of the transactions, but stated the credit card company would not allow a dispute claim because the transactions were past the 60‐day window to file a claim. 11 transactions lacked receipts in the travel system, lacked approvals per Agency policy, or the support and reasoning of official travel was not included in the file. Cardholder education is a valuable tool to remind employees of Agency policy and travel card requirements. Cardholders sign an agreement at issuance of the travel card that states the overall requirements and personal use restrictions. FCA and BFS consider the actual re‐signing of the one‐page statement of cardholder responsibility to be the refresher training required every three years. Beyond the agreements, there are limited trainings on travel cards. In response to similar issues found during our 2014 audit of the travel card program, Agency officials agreed to provide education to cardholders annually. Education has not been provided other than in August and November 2014. The Agency revised its internal travel site in August 2016 with common travel site links and information. This may be an efficient site to provide annual education through a presentation or fact sheets on common areas of misuse, etc. FCA could also improve the reporting process to help identify unauthorized charges. OAS provides quarterly reports to FCA managers showing all charges made to the travel cards by each employee. These reports have been identified as a tool to verify charges related to official government travel. FCA’s PPM 711 states supervisors will take appropriate actions for improper transactions based on the quarterly report. We randomly selected a quarterly report distribution for Fiscal Year 2016. The reports were issued to managers by email in April 2016. OAS requested each responsible official respond to the report if they find no discrepancies and charges appear to be appropriate and related to official travel. If discrepancies were noted, OAS asked management to state the employee’s name, discrepancy, and action taken. Of the eight distributions reviewed for the quarter, four responses were received as requested. Three offices failed to respond at all. One office responded to the quarterly report that there would be a delay in processing, but had not responded on the accuracy of the transactions as of October 2016. Administrative Controls Delinquencies Over the 24‐month period reviewed, employees had not always made timely payments for travel card expenses. When an employee is issued a travel card, the user agreement states accounts must be paid in full by the due date. In addition, FCA’s PPM 711 states an example of government card misuse is a delinquent account, which can lead to disciplinary action. 4 /ĨĂĐĂƌĚŚŽůĚĞƌ͛ƐĂĐĐŽƵŶƚŝƐŶŽƚƉĂŝĚďǇƚŚĞĚƵĞĚĂƚĞ͕ƚŚĞĂĐĐŽƵŶƚĐĂŶŐŽŝŶƚŽĚĞůŝŶƋƵĞŶĐǇƐƚĂƚƵƐ͘&͛Ɛ ŵŽŶƚŚůǇĚĞůŝŶƋƵĞŶĐǇƌĞƉŽƌƚƐƐŽƌƚĐĂƌĚŚŽůĚĞƌĂĐĐŽƵŶƚƐŝŶƚŽĐĂƚĞŐŽƌŝĞƐŽĨϯϬͲĚĂǇŝŶĐƌĞŵĞŶƚƐ͘&Žƌ ĞǆĂŵƉůĞ͕ƚŚĞůŝƐƚŝŶŐƐŚŽǁƐĐĂƌĚŚŽůĚĞƌĂĐĐŽƵŶƚƐϯϬĚĂǇƐƉĂƐƚĚƵĞ͕ϲϬĚĂǇƐƉĂƐƚĚƵĞ͕ƵƉƚŽŽǀĞƌϭϴϬĚĂǇƐ ĞĂĐŚŵŽŶƚŚ͘ĞůŝŶƋƵĞŶƚĂĐĐŽƵŶƚƐĐĂŶŐŽŝŶƚŽƉƌĞƐƵƐƉĞŶƐŝŽŶ͕ƐƵƐƉĞŶƐŝŽŶ͕ĂŶĚĐĂŶĐĞůůĂƚŝŽŶƐƚĂƚƵƐŝĨŶŽƚ ƉĂŝĚ͘ƵƌŝŶŐŽƵƌƌĞǀŝĞǁŽĨƚŚĞĚĞůŝŶƋƵĞŶĐǇƌĞƉŽƌƚƐ͕ǁĞĨŽƵŶĚϱϵĂĐĐŽƵŶƚƐƚŚĂƚǁĞƌĞϲϬĚĂǇƐƉĂƐƚĚƵĞ͕ϰ ĂĐĐŽƵŶƚƐϵϬĚĂǇƐƉĂƐƚĚƵĞ͕ĂŶĚϮĂĐĐŽƵŶƚƐĂƐϭϮϬĚĂǇƐƉĂƐƚĚƵĞŽǀĞƌƚŚĞϮϰͲŵŽŶƚŚƉĞƌŝŽĚ͘ dŚĞĨŽůůŽǁŝŶŐĐŚĂƌƚƐŚŽǁƐĂůůĚĞůŝŶƋƵĞŶƚĂĐĐŽƵŶƚƐĨŽƌƚŚĞƉĞƌŝŽĚŽĨŽƵƌƌĞǀŝĞǁ͗ EƵŵďĞƌŽĨĞůŝŶƋƵĞŶƚĐĐŽƵŶƚƐĂĐŚDŽŶƚŚ ϰϬ ϯϱ ϯϬ Ϯϱ ϮϬ ϭϱ ϭϬ ϱ Ϭ KĐƚͲϭϰ EŽǀͲϭϰ ĞĐͲϭϰ DĂƌͲϭϱ ƉƌͲϭϱ DĂǇͲϭϱ ƵŐͲϭϱ :ĂŶͲϭϱ &ĞďͲϭϱ :ƵŶͲϭϱ :ƵůͲϭϱ EŽǀͲϭϱ ĞĐͲϭϱ DĂƌͲϭϲ ^ĞƉͲϭϱ KĐƚͲϭϱ ƉƌͲϭϲ DĂǇͲϭϲ ƵŐͲϭϲ :ĂŶͲϭϲ &ĞďͲϭϲ :ƵŶͲϭϲ :ƵůͲϭϲ ^ĞƉͲϭϲ ϯϬĚĂǇƐŽǀĞƌĚƵĞ ϲϬĚĂǇƐŽǀĞƌĚƵĞ ϵϬĚĂǇƐŽǀĞƌĚƵĞ ϭϮϬĚĂǇƐŽǀĞƌĚƵĞ /ŶŽƵƌƉƌĞǀŝŽƵƐĂƵĚŝƚ͕FCA’s Travel Card Program, August 2014͕ǁĞŝĚĞŶƚŝĨŝĞĚĚĞůŝŶƋƵĞŶĐŝĞƐŽǀĞƌĂϭϵͲ ŵŽŶƚŚƉĞƌŝŽĚ͕ǁŝƚŚϮϳĂĐĐŽƵŶƚƐƚŚĂƚǁĞŶƚŝŶƚŽƉƌĞƐƵƐƉĞŶƐŝŽŶ͘,ŽǁĞǀĞƌ͕ĚƵƌŝŶŐƚŚŝƐƌĞǀŝĞǁŽĨĂϮϰͲ ŵŽŶƚŚƉĞƌŝŽĚ͕ƚŚĞƌĞǁĞƌĞŽŶĂǀĞƌĂŐĞϮĂĐĐŽƵŶƚƐƉĞƌŵŽŶƚŚ;ϱϵŝŶƚŽƚĂůͿƚŚĂƚǁĞƌĞŝŶƉƌĞƐƵƐƉĞŶƐŝŽŶ͘ K^͛ƐŽǀĞƌƐŝŐŚƚƉƌŽĐĞƐƐǁŝƚŚĚĞůŝŶƋƵĞŶĐŝĞƐŝƐƚŽŝƐƐƵĞŶŽƚŝĨŝĐĂƚŝŽŶƐƚŽĐĂƌĚŚŽůĚĞƌƐĂŶĚƚŚĞŝƌƐƵƉĞƌǀŝƐŽƌƐ ŝĨĂŶǇĂĐĐŽƵŶƚŐŽĞƐŝŶƚŽƚŚĞϲϬĚĂǇƐŽǀĞƌĚƵĞĐĂƚĞŐŽƌǇ͘ŐĞŶĐǇŽĨĨŝĐŝĂůƐƐƚĂƚĞĚƚŚŝƐǁĂƐŶŽƚĂůǁĂǇƐ ĐŽŵƉůĞƚĞĚĚƵĞƚŽƚƌĂŶƐŝƚŝŽŶŝŶƚŚĞŽǀĞƌƐŝŐŚƚƌŽůĞƐĂŶĚƌĞŽƌŐĂŶŝǌĂƚŝŽŶǁŝƚŚŝŶ&͘K^ŚĂĚƐĞǀĞƌĂů ƉĞƌƐŽŶŶĞůĐŚĂŶŐĞƐŝŶŽǀĞƌƐŝŐŚƚƌŽůĞƐǁŝƚŚŝŶƚŚĞĐŚĂƌŐĞĐĂƌĚƉƌŽŐƌĂŵŽǀĞƌƚŚĞůĂƐƚƚǁŽǇĞĂƌƐ͘ ůŽƐƵƌĞŽĨĐĐŽƵŶƚƐ tĞĨŽƵŶĚĚŝƐĐƌĞƉĂŶĐŝĞƐŝŶƚŚĞĂĐƚŝǀĞƚƌĂǀĞůĐĂƌĚŚŽůĚĞƌůŝƐƚŝŶŐ͘&͛ƐƉŽůŝĐŝĞƐĂŶĚƉƌŽĐĞĚƵƌĞƐƐƚĂƚĞǁŚĞŶ ĞŵƉůŽǇĞĞƐůĞĂǀĞƚŚĞŐĞŶĐǇ͕ƚŚĞǇĂƌĞƚŽĐŽŵƉůĞƚĞĂŶĚƐƵďŵŝƚƚŚĞ&&ŽƌŵϯϬϮ͕ŵƉůŽǇĞĞŚĞĐŬKƵƚ ZĞĐŽƌĚ͘dŚŝƐĨŽƌŵĐŽŶƚĂŝŶƐĂŶĂƌĞĂĨŽƌƚƌĂǀĞůĐĂƌĚĐůĞĂƌĂŶĐĞ͘&ŝƐĂůƐŽƌĞƐƉŽŶƐŝďůĞĨŽƌŶŽƚŝĨǇŝŶŐ&^ŽĨ ĞŵƉůŽǇĞĞƐ͛ƐĞƉĂƌĂƚŝŽŶƐ͘ ϱ In order to test the control, we requested a listing of all current FCA travel cardholders, which was provided by BFS. The listing was compared to active employees in the personnel system. We identified four individuals that were listed as active cardholders, but were no longer employees. Two of the four individuals were recent separations. The other two separated from the Agency in 2012 and 2015, respectively. BFS showed both of the accounts were closed when the individuals left the Agency. However, they still appeared on the report for active travel cardholders assigned to FCA. It was unclear why these individuals were listed as active cardholders. We did not see any charges from either cardholder on the transaction listings after separating from the Agency. In response to our last audit in 2014 on travel cards, FCA stated it would review the BFS listing for active cardholders quarterly. However, this was not being conducted. Officials stated they are looking at the listing annually. We also found the quarterly review requirement was not in the Travel Card Operations Handbook, which documents the internal procedures used for the travel card program. Agreed‐Upon Actions 1‐2 In order to improve the travel card program, the Agency agreed to: 1. Provide education to cardholders on misuse of the government charge card, proper cash advances, delinquencies, potential disciplinary actions, the importance of reviewing statements for accuracy of charges, and the dispute process. 2. Follow up on previous audit recommendations and agreed‐upon actions by implementing, and including in the Charge Card Management Plan and/or Operational Handbook for Travel Card Operations, a process to: request and reconcile all active FCA travel cardholders with BFS on a quarterly basis to ensure proper closures; and, provide annual education to travel cardholders on Agency policies and areas of improvement found during internal reviews. In response to the inspection, OAS provided an article to be published in the Agency newsletter on the travel card. Educational materials were also provided that will be uploaded to the internal travel site covering the areas found during the inspection. The Charge Card Management Plan was also updated to include the annual education and quarterly review process. 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The Farm Credit Administration's Travel Card Program, January 31, 2017
Published by the Farm Credit Administration, Office of Inspector General on 2017-01-31.
Below is a raw (and likely hideous) rendition of the original report. (PDF)