FY 2017 Evaluation of SBA's Charge Card Programs

This memorandum report presents the results of our evaluation of the Small Business Administration’s (SBA’s) purchase cards and risk assessment for SBA’s travel card program for fiscal year 2017.  This evaluation was performed in accordance with Office of Management and Budget Memorandum M-13-21, Implementation of the Government Charge Card Abuse Prevention Act of 2012.  Our objectives were to (1) assess risks of illegal, improper, or erroneous purchases and payments associated with SBA’s purchase and travel card programs and (2) determine the status of prior year recommendations. 

While SBA has implemented internal controls and guidance to administer its travel and purchase charge card programs, vulnerabilities remain in the management and oversight of the purchase card program.  Specifically, SBA personnel did not always comply with Federal guidance and SBA policies regarding the pre-purchase, purchase, and reconciliation processes when the Government purchase card was used to acquire goods and services.  We made two recommendations to strengthen SBA’s risk management controls for charge card programs.  The agency agreed to implement the recommendations.