United States

case studies
united states
public safety
efficiency optimization

Tool monitors purchasing card usage for US Department of Navy

Enhanced oversight of audit program, and ability to detect and take action on card misuse or fraud

The challenge

The Department of Navy supports over 331,000 personnel on active duty and 124,000 in the Navy Reserve.

The Department of Defense's purchase card program grew significantly and the Department of Navy had over 45,000 purchase accounts. Greater card usage entails greater risk, and so the right internal controls were needed to protect the Federal Government from possible fraud, waste, abuse, and loss of assets.

The solution

The Department of Navy worked with Citi to develop the Program Audit Tool, a comprehensive reporting and data mining solution.

Program administrators now have online access to card information at all levels, enabling them to monitor monthly usage and ensure guidelines and policies are upheld. Each administrator can view their entire portfolio and drill down to specific reviews. The Program Audit Tool searches card transactions and automatically flags exceptions or anomalies, allowing a wide variety of parameters to be set for different units based on details of their missions or activities.

A consolidated report is generated for each billing cycle, detailing any questionable transactions and sending e-mail notifications of progress and results. It also automatically assesses the effectiveness of internal controls and disciplinary action, ensuring the program as a whole is working successfully.

The result

The Program Audit Tool has significantly improved the oversight of the Department of Navy's audit program, and has specifically enhanced its ability to detect and take action on card misuse or fraud. This has directly addressed the Department of Navy's key internal control needs, standardized audit processes across all units and improved overall prevention of fraud in its purchase card program.