Purpose

To determine the extent of implementation of the three recommendations included in our initial audit report, State Agency Small-Dollar Purchases (2009-S-56).

Background

In our initial audit report, which was issued on September 9, 2010, our objectives were to determine the extent to which State agencies process small-dollar transactions using paper-based voucher processes instead of the State procurement card, and to identify potential cost savings and revenue enhancements achievable through better use of procurement cards. The objective of our follow-up was to determine the extent of implementation of the three recommendations included in our initial report.

Key Findings

• OGS officials made significant progress in addressing the issues we identified in the initial audit. All three prior audit recommendations have been implemented.
• Additionally, OGS has been successful in its efforts to increase State agencies’ P-Card use for small-dollar purchases.  Aggregate P-Card use increased from 37 percent of eligible purchases in 2008-09 to 64 percent in 2011-12.
• Several entities that existed in 2008-09 were consolidated or closed by 2011-12, while some new entities had been created. Of 315 entities that existed in both years, 218 increased their P-Card usage, 45 decreased their usage, 51 did not have P-Cards during either year, and one used the P-Card for all purchases during both years.

Key Recommendations

• None

Other Related Audit/Report of Interest

Office of General Services: State Agency Small-Dollar Purchases (2009-S-56)