DCS AUDIT UNIT TOP 5 AUDIT ISSUES PURCHASE CARD PROGRAM

We are pleased as the Department of Central Services (DCS), Audit Unit, to publish a list of common non-compliances and misconceptions that are discovered during our purchase card audits.  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 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

2.    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

3.     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

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

Updated 6/13/08