CFTC Audit Identifies Gaps in Agency's Oversight of Card Usage
In a report commissioned by the CFTC’s Office of Inspector General ("OIG"), independent auditors identified ways in which the Commission could improve its oversight of the agency’s charge card programs.
The audit reviewed the agency's compliance with the Charge Card Act of 2012, "focusing on the management of CFTC’s purchase card disbursements and travel card transactions for the fiscal year (FY) ended September 30, 2023."
The auditors concluded that the "CFTC generally complied with the Charge Card Act related to the management and oversight of its purchase and travel card programs," but found "non-monetary instances of noncompliance in the areas related to training, card deactivation, purchase card transaction preapproval, travel card usage, and policies."
The report highlighted the following areas for improvement:
- Training Compliance. The report flagged deficiencies in mandatory training, noting that "27 of 68 sampled travel cardholders" lacked proof of required training. The auditors recommended that the CFTC "implement a training framework" to ensure travel cardholders and approving officials meet training requirements before exercising their responsibilities.
- Purchase Card Disbursements. In its review of 57 purchase card disbursements, the auditors found lapses in pre-approval checks, timely approvals, and documentation, warning of increased risk of fraud and waste. They recommended stronger training, controls, and enforcement of documentation and approval procedures.
- Travel Cards. The audit identified multiple issues within the CFTC’s travel card program, including the use of individually billed accounts (IBAs) for international travel instead of the required centrally billed accounts (CBAs), due to "the lack of consistent enforcement of the use of CBA accounts." Additionally, 16 of 20 travel cards belonging to separated employees "remained active after the employee separated," with some incurring post-employment charges. The auditors recommended that the CFTC enforce its travel card policy, immediately deactivate cards upon separation, and implement regular monitoring. They also noted that several travel policies "had not been updated since 2008" and advised the agency to revise them.