Accession Number : ADA621512


Title :   DoD Cardholders Used Their Government Travel Cards for Personal Use at Casinos and Adult Entertainment Establishments


Corporate Author : OFFICE OF THE INSPECTOR GENERAL (DEPARTMENT OF DEFENSE) ARLINGTON VA


Full Text : https://apps.dtic.mil/dtic/tr/fulltext/u2/a621512.pdf


Report Date : 19 May 2015


Pagination or Media Count : 49


Abstract : Our objective was to determine whether DoD Government travel charge card holders used their card for personal use at casinos or adult entertainment establishments. Public Law 112-194, Government Charge Card Abuse Prevention Act of 2012, requires the Inspector General of each executive agency with more than $10 million in travel card spending to periodically audit or review travel card programs. We focused on individually billed travel cards. Cardholders are personally and financially liable for payment of all undisputed charges, including personal use, indicated on the billing statement, not the government. DoD cardholders improperly used their Government travel charge card (GTCC) for personal use at casinos and adult entertainment establishments. From July 1, 2013, through June 30, 2014, DoD cardholders had 4,437 transactions totaling $952,258, where they likely used their travel cards at casinos for personal use and had 900 additional transactions for $96,576 at adult entertainment establishments. Specifically, we reviewed seven nonstatistically selected cardholders who had 76 transactions valued at $19,643 to confirm that our analysis identified personal use at casinos and adult entertainment establishments from July 1, 2013, to June 30, 2014. DoD did not detect these transactions because: the Defense Travel Management Office (DTMO) compliance program did not assist Agency Program Coordinators to identify personal use at casino and adult entertainment establishments; DoD policy did not specifically identify high-risk merchants or categories for personal use such as in casinos or adult entertainment establishments; and Citibank was not required to notify Agency Program Coordinators or management officials of potential fraudulent activity or suspension of accounts.


Descriptors :   *AUDITING , *DEPARTMENT OF DEFENSE , *FINANCIAL MANAGEMENT , *GOVERNMENT EMPLOYEES , CARDS , FEDERAL LAW , POLICIES , PREVENTION , TRAVEL


Subject Categories : Administration and Management
      Economics and Cost Analysis
      Government and Political Science


Distribution Statement : APPROVED FOR PUBLIC RELEASE