More than $5 million in unauthorized “micro-purchases” were made with government charge cards by employees of the U.S. Southern Command from April 2012 to March 2013.
Government purchase cards are intended to be used only for purchases of approved merchandise under $3,000. Southern Command employees used the cards improperly nearly 6,000 times at a cost of $5.1 million, according to a Department of Defense inspector general report.
Another $160,000 was spent on an estimated 3,500 unnecessary gifts in the years since 2010, often just days before the government’s fiscal years ended. The items remained in storage at least three years.
“The wasteful expenditures could have been put to use in other operational areas and are considered abusive use of the [purchase cards],” the IG said.
Because officials failed to oversee the cards’ use properly, 40 percent of all micro-purchases were made from unapproved suppliers, lacked authorization, or were improperly documented.
Some cardholders had “implied authority,” DOD officials said, but the IG rejected that claim.
Only four of 19 cardholders with $25,000 limits had documentation that proved they completed training in proper use of the cards.
“Unless overall [card] controls are strengthened … users are likely to make future improper purchases,” the IG said.
Southern Command’s contracting wing began to implement tighter controls to oversee the purchase cards before the audit was completed. However, problems with last-minute gift purchases remain mostly unresolved.
“In several cases, gifts were purchased at the end of the fiscal year without a valid requirement,” the IG said.
Despite the clear misuse of taxpayer dollars, DOD officials disagreed with the IG’s recommendations for tighter management.
Southern Command’s chief of staff told the IG “he was unaware of unnecessary gifts in the gift locker.”
Days before fiscal 2011 ended, nearly $3,000 was spent on iPod Touch devices with the Southern Command seal engraved in the back “to be given to authorized officials.”
Days earlier, the command purchased 15 GPS wrist units worth more than $2,500 and 10 Kindle touchscreen e-book readers worth about $2,800.
More than a year and a half later, all but five of the devices remained in storage.
