Internal Controls Over Voyager Card Transactions - North Tryon Station, Charlotte, NC
Background
The U.S. Postal Service Office of Inspector General (OIG) uses data analytics, including predictive risk models and tripwires, to identify financial anomalies. Tripwires are analytic tools that look at specific behaviors and patterns that are strong indicators of improper activity. The Voyager credit card tripwire identified purchases made outside of OIG-defined normal workhours (7 a.m. - 5 p.m.) at the North Tryon Station in Charlotte, NC. These types of purchases are considered suspicious and could indicate ineffective internal controls or fraud.
Every Postal Service-owned vehicle is assigned a Voyager card and every driver receives a personal identification number (PIN). The card is used to pay for fuel, oil, and routine vehicle maintenance. Site managers are responsible for verifying Voyager card transactions and all supporting documentation.
The objectives of this audit were to review the validity of transactions outside of normal workhours and assess internal controls over the Voyager card transactions at the North Tryon Station.
What the OIG Found
The OIG Voyager credit card tripwire identified 29 of 82 transactions (35 percent) valued at $988 that were made outside of OIG-defined normal workhours. However, during our site visit, we verified the site had operating hours of 7 a.m. – 7 p.m. from Sunday through Saturday during November 2015 to January 2016, due to the holiday season. Therefore, we identified: 14 transactions that occurred outside of the site’s workhours and 15 that did not occur outside of the site’s workhours.
All 29 transactions were missing receipts; therefore, we could not determine the validity of the purchases. We referred the information to the OIG’s Office of Investigation for further review.
In addition, we determined internal controls over Voyager card transactions needed improvement. Specifically, the designees responsible for overseeing the program did not:
Secure and monitor card distribution.
- Deactivate PINs timely; 125 transactions valued at $3,170 were made using PINs of employees no longer working at the site. We referred the information to the OIG’s Office of Investigation for further review.
- Require drivers to submit receipts or the mandatory form to explain missing receipts for 71 of 82 transactions (87 percent) valued at $2,230.
- Timely complete the dispute resolution process for 22 transactions valued at $812. The site designee alleged the transactions were made with a stolen PIN and started the process to dispute the transactions in FAMS; however, she did not complete the Postal Service Voyager Account Dispute Form and notify the OIG within 30 days of the charges first appearing. The designee stated she was not fully aware of the dispute process. We referred the information to the OIG’s Office of Investigation for further review.
- Finally, although outside our scope, we observed a stack of Forever stamps left unattended on the counter and accessible to the public and several secured doors in the dock entry area kept open during the day.
As a result of this audit, management required the designee to take site manager training. The site manager also established a process for maintaining and collecting Voyager cards and receipts and deactivated PINs assigned to employees no longer working at the site. In addition, the postmaster met with all employees to reiterate the importance of maintaining site security and the site manager instructed employees to secure the doors used to enter the site at all times.
What the OIG Recommended
We recommended management establish controls to ensure the site manager and designees follow Voyager card standard operating procedures for PIN management and dispute resolution.