Government Accountability Office Audit Reveals 41 Percent Of Federal Issued Credit Card Spending Not Properly Authorized

Washington, DC (AHN) - An audit by the Government Accountability Office of federal credit cards issued to various departments showed a pattern of abuse and misuse. Over a 15-month period, 41 percent of credit card purchases were not properly authorized.

The amount involved was around $14 billion. Among the items charged by the card holders, which includes staff of the Departments of Defense, Homeland Security and Veterans Affairs, were designer clothes, sleepwear, internet dating and expensive meals, reported the AP.

What made it worse on taxpayers' pockets was that some of the credit card purchases worth $2.7 million could not be accounted for, particularly laptops, iPodsm, digital cameras and server configurations.

There was lack of proper documentation, and occasions of double billing and unquestioned lavish expenses.

The report, quoted by AP, said, "Breakdowns in internal control s over the use of purchase cards leave the government highly vulnerable to fraud, waste and abuse."

The GAO suggested that the General Services Administration and Office of Management and Budget help administer the federal credit card program, especially account for small but expensive items like Palm Pilots, iPods and other electronic goods prone to employee theft.

While the two government agencies agreed with portions of the GAO report, GSA administrator Lurita Doan said majority of the federal employees issued credit cards used it properly and there were already checks and balances in place to prevent abuse, although there is still room for improvement.

But Doan added, "We agree that no level of abuse or misuse is acceptable."