Audit Report 12-16: The SBA’s Inappropriate Use of the Government Purchase Card

Date Issued: 
Monday, August 6, 2012
Report Number: 

This advisory memorandum, the first of two reports, presents the results of the OIG’s limited scope audit of the Small Business Administration’s (SBA) procurement process used to reconfigure space for the Office of International Trade.  While conducting the audit, the OIG found that SBA personnel with purchase card authority had inappropriately purchased $34,044.77 in construction transactions.  These transactions were over the $2,000 threshold established by the Federal Acquisition Regulations for construction purchases at the Washington, DC area offices.  

The OIG recommended that the SBA (1) ensure all purchase cardholders have, on file, current delegation letters that reflect current limitations and approving official; (2) provide training to SBA purchase cardholders and approving officials on the proper use of a government purchase card, to include purchase limitations and the definition of construction; and (3) review the routine maintenance needs of SBA buildings within the Washington, DC area.