United States Government Publishing Office publisher pbl distributor dst United States Government Accountability Office author aut Government Organization text government publication eng GAOREPORTS Legislative Agency Publications gao legislative 2010-08-12 U.S. Government Printing Office 2001-07-30 monographic deposited born digital 50 p. GA 1.13:GAO-01-995T https://www.govinfo.gov/app/details/GAOREPORTS-GAO-01-995T P0b002ee180398288 f:d01995t DGPO 2010-08-12 2011-03-28 GAOREPORTS-GAO-01-995T machine generated eng fdlp REPORT GAOREPORTS-GAO-01-995T GAO-01-995T Accounting procedures Credit sales Fraud Internal controls Naval procurement Testimony A01486

This testimony discusses internal controls weaknesses that left two San Diego Navy units open to credit fraud and abuse. GAO found that the serious breakdown in internal controls at the Space and Naval Warfare Systems Command San Diego and Navy Public Works San Diego are the result of a weak overall internal control environment, flawed or nonexistent policies and procedures, and employees that do not adhere to valid policies. The proliferation of cardholders at these two activities resulted in over 1,700 cardholders with essentially the authority to make their own purchase decisions in an environment that lacked basic controls over receipt of government property, certification of monthly statements, and accountability over sensitive property items. GAO found that these weak internal controls resulted in lost, stolen, missing, or misused government property, potentially abusive use of purchase cards, and payment of unauthorized and potentially fraudulent charges. The combination of these factors also contributed to the five known fraud cases and leaves the government highly vulnerable to significant additional fraud, waste, and abuse from the purchase card program at these two Navy units. https://www.govinfo.gov/content/pkg/GAOREPORTS-GAO-01-995T/html/GAOREPORTS-GAO-01-995T.htm https://www.govinfo.gov/content/pkg/GAOREPORTS-GAO-01-995T/pdf/GAOREPORTS-GAO-01-995T.pdf GAO-01-995T https://www.govinfo.gov/app/details/GAOREPORTS-GAO-01-995T Testimony GAO-01-995T; Purchase Cards: Control Weaknesses Leave Two Navy Units Vulnerable to Fraud and Abuse; Accounting procedures Credit sales Fraud Internal controls Naval procurement Title 31 Section 1301 Title 31 Section 3321 Title 31 Section 3322 Title 31 Section 3325 Title 31 Section 3327 Title 31 Section 3335 Title 31 Section 3512 Title 31 Section 3528 31 U.S.C. 1301 31 U.S.C. 3321 31 U.S.C. 3322 31 U.S.C. 3325 31 U.S.C. 3327 31 U.S.C. 3335 31 U.S.C. 3512 31 U.S.C. 3528 Public Law 106-65