Purchase Card Recovery Audit

Issue: P-card programs offer increased purchasing flexibility and convenience, but can be difficult to control and are subject to abuse. Findings: In this audit of P-card transactions covering several plant and corporate locations, the client had recently converted to a new P-card system. P-card charges and invoice disbursements had not been reviewed for duplicate and erroneous payments, and the P-card administration policy was in need of recalibration. Financial Impact: Total spend value of P-card contracted audit scope was $380 million, resulting in significant dollar recoveries. Solution: Our auditors reviewed the conversion to a new P-card system, compared charges and invoice disbursements for accuracy, and wrote a new P-card administration policy. This resulted in the recovery of overpayments, a significant reduction in duplicate payments going forward, and decreased risk of fraud due to improved vendor master file controls.

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