AUDIT REPORT

AUDIT OF NRC’S TRAVEL CHARGE CARD PROGRAM

13-A-17 April 16, 2013

All publicly available OIG reports (including this report) are accessible through

NRC’s Web site at: 

http:/www.nrc.gov/reading-rm/doc-collections/insp-gen/
UNITED STATES

NUCLEAR REGULATORY COMMISSION

WASHINGTON, D.C. 20555-0001

OFFICE OF THE

INSPECTOR GENERAL

April 16, 2013

MEMORANDUM TO: J.E. Dyer

Chief Financial Officer

R. William Borchardt

Executive Director for Operations

FROM: Stephen D. Dingbaum /RA/

Assistant Inspector General for Audits

SUBJECT: AUDIT OF NRC’S TRAVEL CHARGE CARD PROGRAM

(OIG-13-A-17) 

Attached is the Office of the Inspector General’s (OIG) audit report titled Audit of NRC’s 

Travel Charge Card Program.

The report presents the results of the subject audit. Agency comments provided at the 

March 27, 2013, exit conference have been incorporated, as appropriate, into this 

report.

Please provide information on actions taken or planned on each of the 

recommendations within 30 days of the date of this memorandum. Actions taken or 

planned are subject to OIG follow up as stated in Management Directive 6.1.

We appreciate the cooperation extended to us by members of your staff during the 

audit. If you have any questions or comments about our report, please contact me at 

415-5915 or Eric Rivera, Team Leader, Financial and Administrative Audits Team, at 

415-7032.

Attachment: As stated 
Audit of NRC’s Travel Charge Card Program

i

EXECUTIVE SUMMARY

BACKGROUND

The Nuclear Regulatory Commission (NRC) established its travel charge 

card program (referred to as the program) to facilitate employee travel in 

support of the agency’s mission. Specifically, the purpose for using 

Government charge cards designated for travel purposes (referred to as 

travel cards) is to reduce the overall cost of travel to the Federal Government 

through lower administrative costs and by taking advantage of rebates 

offered by card vendors based on the volume of transactions and on prompt 

payment of bills. The Federal Travel Regulation mandates the use of travel 

cards for all official travel expenses unless specifically exempted. Under the 

program, travel cards can be used to pay for expenses related to official 

Government travel, such as lodging, meals, and rental cars. During FY 

2011, approximately $16.8 million was charged for travel under this program.

OBJECTIVE

The audit objective was to assess the adequacy and effectiveness of NRC’s 

policies, procedures, and internal controls over the travel card program for 

preventing and detecting travel charge card misuse and delinquencies.

RESULTS IN BRIEF

NRC’s travel card program has policies, procedures, and internal controls in 

place to prevent and detect travel card misuse and delinquencies. NRC 

also has policies in place to lower the overall cost of official travel to the 

agency. However, the Office of the Inspector General (OIG) determined the 

efficiency and effectiveness of NRC’s management of rebates and quarterly 

data reporting to Office of Management and Budget (OMB) can be improved. 

Specifically, opportunities exist to:

A. Maximize NRC’s rebates by using recommended Federal strategies. 

B. Improve quarterly reported data accuracy by employing available 

tools. 
Audit of NRC’s Travel Charge Card Program

ii

RECOMMENDATIONS

This report makes recommendations to improve the internal controls over the 

management of the travel card program. A list of these recommendations 

appears on pages 17 and 18 of this report.

AGENCY COMMENTS

An exit conference was held with the agency on March 27, 2013. Agency 

management stated their agreement with the findings and recommendations 

in this report and opted not to provide formal comments for inclusion in this 

report.
Audit of NRC’s Travel Charge Card Program

iii

ABBREVIATIONS AND ACRONYMS

Coordinator Agency/Organization Program Coordinator

GSA General Services Administration

MD Management Directive

NRC Nuclear Regulatory Commission

OCFO Office of the Chief Financial Officer

OIG Office of the Inspector General

OMB Office of Management and Budget
Audit of NRC’s Travel Charge Card Program

iv

TABLE OF CONTENTS

EXECUTIVE SUMMARY ............................................................................... i

ABBREVIATIONS AND ACRONYMS...........................................................iii

I. BACKGROUND .................................................................................1

II. OBJECTIVE.......................................................................................4

III. FINDINGS..........................................................................................4

A. REBATE MANAGEMENT..........................................................7

B. ACCURACY OF QUARTERLY DATA REPORTS................... 12

IV. CONSOLIDATED LIST OF RECOMMENDATIONS ......................... 17

V. AGENCY COMMENTS..................................................................... 19

APPENDIX

A. OBJECTIVE, SCOPE AND METHODOLOGY......................... 20
Audit of NRC’s Travel Charge Card Program

1

I. BACKGROUND

The Nuclear Regulatory Commission (NRC) established its travel charge 

card program (referred to as the program) to facilitate employee travel in 

support of the agency’s mission. Specifically, the purpose for using

Government charge cards designated for travel purposes (referred to as 

travel cards) is to reduce the overall cost of travel to the Federal 

Government through lower administrative costs and by taking advantage of 

rebates offered by card vendors based on the volume of transactions and 

on prompt payment of bills. The Federal Travel Regulation mandates the 

use of travel cards for all official travel expenses unless specifically 

exempted. Under the program, travel cards can be used to pay for 

expenses related to official Government travel, such as lodging, meals, and 

rental cars.

The General Services Administration (GSA) administers the 

Governmentwide Travel Card Program through a master contract. Under 

this master contract, GSA has agreements with several banks, including 

Citibank — the bank used by NRC — to provide travel cards to Federal 

employees. NRC negotiates specific terms for its travel card program, and 

these terms are listed in a task order. The NRC task order includes, among 

other things, the period of performance and the rebate schedule expressed 

as basis points.1 A rebate2is the monetary payment provided to an agency 

by charge card vendors based on the amount spent and the timeliness of 

payments. 

The Office of Management and Budget (OMB) prescribes policies and 

procedures regarding internal controls over Government charge card 

programs in OMB Circular A-123, Appendix B, Revised, (OMB Circular A123, Appendix B), ―Improving the Management of Government Charge Card 

Programs.‖ Goals of the guidance include reducing program costs through 

the maximization of rebates and using program data to monitor policy 

compliance and inform management decisionmaking.

 

1 One basis point is one one-hundredth of one percent. Expressed as a decimal, one basis point equals 

.0001 or 10 cents ($.10) per $1,000.

2 Congress has used the term ―refund‖ and ―rebate‖ interchangeably.
Audit of NRC’s Travel Charge Card Program

2

This guidance requires that each agency develop and maintain written 

policies and procedures for the appropriate use of travel cards. To comply 

with this requirement, NRC’s Office of the Chief Financial Officer (OCFO), 

the lead office for the travel card program, developed the Travel Charge 

Card Management Plan to document administrative policies and 

procedures for both Individually Billed Accounts3and Centrally Billed 

Accounts4. The Travel Charge Card Management Plan includes training 

requirements, responsibilities of travel charge card program participants, 

procedures to obtain a travel card, requirements to evaluate program 

effectiveness to reduce program costs, and reporting program metrics to 

OMB. 

OCFO has a designated Agency/Organization Program Coordinator 

(Coordinator) who is responsible for the overall management and oversight 

of the program. The Coordinator serves as the liaison between cardholders 

and the contracting bank. Other Coordinator responsibilities include:

Processing new travel card applications, including training verification. 

Providing guidance to NRC travel cardholders regarding program

policies and the appropriateness of proposed charges under the travel 

card program.

Assisting users with their individual travel card accounts.

Canceling travel cards when cardholders leave the NRC.

 

3

Individually Billed Account: A Government contractor-issued charge card used by authorized individuals 

to pay for official travel-and transportation-related expenses for which the contractor (bank) bills the 

employee, and for which the individual is liable to pay. 

4 Centrally Billed Account: A card/account established by the charge card vendor at the request of the 

agency/organization. Payments are made directly to the charge card vendor by the agency. Federal 

agencies are responsible for specifying which travel cards must be centrally billed cards/accounts at the 

task order level. 
Audit of NRC’s Travel Charge Card Program

3

Additionally, OCFO staff are responsible for:

Reviewing quarterly rebate statements for accuracy. 

Reporting required data elements to OMB. 

Evaluating program effectiveness and compliance with Federal 

policies. 

As of September 30, 2011, 2,618 NRC employees had individually billed

cards and the agency held 5 centrally billed cards. During FY 2011,

individuals charged approximately $9.4 million on individual cards and the 

agency charged approximately $7.4 million for airfare, train fare, and airline 

and agency fees on its centrally billed account (see Figure 1). The program 

employs approximately three full-time equivalents.

Figure 1

 Source: The Office of the Inspector General (OIG) Analysis of Citibank Data

$9,416,530

$7,368,463

FY 2011 Dollar Value of Travel Card Accounts

Individually Billed Accounts

Centrally Billed Accounts
Audit of NRC’s Travel Charge Card Program

4

II. OBJECTIVE

The audit objective was to assess the adequacy and effectiveness of NRC’s 

policies, procedures, and internal controls over the travel card program for 

preventing and detecting travel charge card misuse and delinquencies. The 

report Appendix contains information on the audit scope and methodology.

III. FINDINGS

NRC’s travel card program has policies, procedures, and internal controls in 

place to prevent and detect travel card misuse and delinquencies. NRC 

also has policies in place to lower the overall cost of official travel to the 

agency. However, OIG determined the efficiency and effectiveness of 

NRC’s management of rebates and quarterly data reporting to OMB can be 

improved. Specifically, opportunities exist to:

A. Maximize NRC’s rebates by using recommended Federal strategies.

B. Improve quarterly reported data accuracy by employing available 

tools.

During the course of the audit, OIG found that nearly two-thirds of agency 

card holders were not in compliance with OMB’s training requirements.

5

 

OIG discussed this matter with OCFO officials who agreed with this finding 

and took corrective action. Yellow Announcement No. 148, dated 

November 16, 2012, states in part: 

―New travel charge card applicants and existing travel

charge cardholders can now complete the Government

 

5 OMB requires card holders to be trained before a travel card is issued and, at a minimum, every 3 years 

thereafter.
Audit of NRC’s Travel Charge Card Program

5

Travel Charge Card Training (Web-based) course in 

iLearn. The course will be added directly to your iLearn

―To-Do‖ list on November 20, 2012. Once the course is

completed, the travel charge card training will appear in

iLearn as ―Completed Work.‖ iLearn will keep a record 

of the completion date. Travel charge cardholders will

receive reminders to retake the course 21 days prior to

the ―Required By‖ date, which is 3 years from the date 

the last Government Travel Charge Card Training was

completed. However, for those employees who have 

exceeded the 3-year training requirement deadline,

iLearn will add a training requirement with a due date of 

February 28, 2013.‖

OIG found this action adequate to address the agency’s non-compliance

with OMB training requirements. 

Additionally, OIG analyzed more than 100,000 lines of both individually and 

centrally billed FY 2011 account transactions by merchant category code

and did not identify any apparent significant misuse or abuse. The 

transactions are categorized in Table 1. The Coordinator reported there 

were two disciplinary actions taken during FY 2011 against NRC employees 

related to travel card abuse reported prior to FY 2011.

A review of OIG investigative files shows that five cases related to travel 

card abuse were opened during FY 2011. In four of the five cases, 

disciplinary action was taken during FY 2012. In the fifth case, the 

employee was counseled in FY 2012 about travel card abuse.
Audit of NRC’s Travel Charge Card Program

6

Table 1

Card Type Category Item Count Value

Individually 

Billed 

Accounts

Common Carrier67,249 $ 356,227

Rental Car, Other Auto 16,701 $ 1,563,235

Food 14,858 $ 303,297

Hotel 15,468 $ 6,260,023

Cash Disbursements 3,773 $ 717,226

Other 1,369 $ 216,522

Subtotal 59,418 $ 9,416,530

Centrally 

Billed 

Accounts

Common Carrier 13,569 $ 6,889,762

Travel Agent Fee 32,750 $ 478,701

Subtotal 46,319 $ 7,368,463

TOTAL 105,737 $16,784,993

Source: OIG analysis of Citibank data

 

6

Private-sector supplier of air, rail or bus transportation.
Audit of NRC’s Travel Charge Card Program

7

A. Rebate Management

NRC’s travel card program management does not maximize travel 

card rebates. OIG’s analysis of the FY 2011 rebate shows that the 

agency could have received approximately $60,000 more than the 

$96,242 it received on net charges of approximately $16.8 million. 

NRC does not maximize its rebate because program management 

staff does not effectively use strategies identified in OMB Circular A123, Appendix B, available to Federal agencies to increase rebate 

payments. As a result, NRC does not receive the maximum rebate, 

which, in turn, makes program costs unnecessarily high. Further, 

NRC is not in full compliance with OMB requirements. 

Federal Policy and Agency Guidance

OMB prescribes policies requiring agencies to maximize their rebates to 

lower overall program costs. NRC’s rebates are based on the NRC-specific 

task order between the agency and Citibank, and OMB requires quarterly 

review of the task order to ensure proper amounts are being refunded. 

There are two types of rebates the agency can use to maximize its refund: 

(1) productivity, based on timeliness of payments by both the agency and 

individuals, and (2) sales, based on the volume of charges for the period.

The Federal Travel Regulation mandates use of the travel card by 

Government employees unless they travel five or fewer times per year. 

However, agencies have the flexibility to require any employee who travels 

on official business to use the card. 

NRC staff have two internal documents that provide agency-specific 

guidance: the Travel Charge Card Management Plan and Management 

Directive (MD) 14.1, Official Temporary Duty Travel. The Travel Charge 

Card Management Plan requires OCFO staff to seek to maximize refunds 

and requires that all employees who travel more than five times annually 

use a travel card to pay for official travel expenses. 

MD 14.1 states, ―any NRC employee who expects to make more than five 

trips during any 12-month period (frequent traveler) should apply
Audit of NRC’s Travel Charge Card Program

8

[emphasis added] for the card.‖ This is not compliant with Federal 

regulations that require employees who travel more than five times per 

year to use the card for official Government travel expenses.

NRC Not Maximizing Rebate 

NRC’s travel card program management does not maximize the 

agency’s travel card rebate. For example, NRC does not monitor 

use of the card by frequent travelers, mandate split disbursement,7

or pay centrally billed accounts within a day of invoice receipt – all 

conventional strategies for improving rebates for use of the travel 

card. In FY 2011, NRC received a sales and productivity rebate of 

$96,242 on net charges of approximately $16.8 million. Centrally 

billed account payments earned approximately 36 percent of the 

maximum potential productivity rebate. Individually billed account 

payments earned approximately 64 percent of the maximum 

potential productivity rebate. Information identifying frequent 

travelers to calculate additional potential sales rebates was 

unavailable. Further, OCFO staff do not review the task order and 

verify rebates as required by OMB.

Rebate Strategies Not Effectively Used 

NRC does not maximize its rebate because program management staff do 

not effectively use the strategies identified in OMB Circular A-123, Appendix 

B, Attachment 5, ―Best Practices in Managing Government Charge Card 

Programs,‖ designed to increase timeliness of payments and/or sales 

volume. Specifically, the agency does not pay invoices as received on 

 

7 The Government pays the credit card vendor directly when a traveler uses the card and files a voucher 

for reimbursement, while additional money owed to the traveler goes to the traveler’s bank account.

Without split disbursement, the traveler receives the entire voucher settlement and in turn pays the credit 

card bill.
Audit of NRC’s Travel Charge Card Program

9

centrally billed accounts for the productivity rebate, nor does it explore basis 

point options for the sales rebate. Additionally, the agency does not identify 

frequent travelers or enforce their use of the card for official travel expenses 

as required by the Federal Travel Regulation.

Productivity

The agency does not pay the entire bill for centrally billed accounts upon 

receipt, but instead pays the bill as charges are matched to specific line 

items. In FY 2011, centrally billed account bills were paid on average 33 

days after receipt of the invoice, whereas individually billed accounts were 

paid on average 19 days after receipt of the invoice. 

OIG reviewed the centrally billed account line items and determined that 70 

percent of the transactions were related to travel agency fees of $14 or 

less; however, these items represented only 6.5 percent of the total costs. 

The process would be more efficient if payment of these fees were made 

daily or weekly, instead of monthly after charges are matched to specific 

line items. If centrally billed accounts were paid within 1 day of receipt of 

invoice, and then discrepancies were reconciled, the agency would 

increase its productivity refund by approximately $35,000.

Agency officials have another strategy available to manage productivity 

refunds – split disbursement. However, split disbursement will be 

advantageous only when the agency improves its payment productivity so 

that, on average, the agency pays its bills faster than employees. The 

agency has implemented split disbursement, but it is optional. 

Some agencies that OIG benchmarked8require all travelers to use split 

disbursement to maximize their productivity refund. Use of split 

disbursement is also mandatory for all Department of Defense travelers, 

according to its travel Web site. Assuming the agency improves centrally 

 

8 OIG examined travel card practices at four agencies to determine how their travel card programs are 

managed.
Audit of NRC’s Travel Charge Card Program

10

billed account payment productivity, split disbursement will increase the 

productivity refund by approximately $25,000.

Sales

The agency does not identify its frequent travelers or enforce the 

requirement that they use their Government travel card for official travel. 

Currently, NRC defines a frequent traveler as anyone who travels more 

than five times per year. That is also the Federal minimum requirement. 

However, the agency has the authority to require any employee who travels 

at any frequency to use their Government contractor issued travel card. 

The agency was unable to provide the number of employees who travelled 

more than five times and did not use a Government travel card during FY 

2011. Accordingly, OIG could not perform an analysis to determine the 

amount of increased rebate the agency would have received for FY 2011, 

had all travelers, in fact, used their cards rather than pay by other means.

Furthermore, the agency does not perform two other OMB requirements: 

check the productivity and sales refund deals offered by charge card 

vendors in comparison to other Governmentwide charge card contracts to 

ensure a competitive offer,9and explore the possibility of tagging along10 to 

another agency’s existing task order to obtain a better rebate rate.

Additional Rebates Available 

OIG analysis found that the agency could have received an 

additional productivity rebate of approximately $60,000 by paying 

centrally billed accounts more efficiently and using mandatory split 

disbursement. By not taking advantage of available strategies as 

recommended by OMB, NRC does not receive all potential rebate 

revenue. This unnecessarily raises program costs and results in the 

 

9

The General Services Administration maintains information on many agency refund arrangements and 

may be used by agency managers for market research purposes. 

10 Joining another agency’s established task order in order to receive the same services and rates that are 

provided to the primary agency.
Audit of NRC’s Travel Charge Card Program

11

agency being non-compliant with OMB requirements to maximize 

rebates. 

Recommendations

OIG recommends that the Chief Financial Officer:

1. Develop and implement a policy to pay centrally billed travel card 

accounts daily or weekly. 

2. Check the productivity and sales refund deals offered by charge 

card vendors in comparison to other governmentwide charge card 

contracts to ensure a competitive rate.

3. Explore the possibility of using another agency’s existing task order 

(―tag along‖) to obtain a better rebate rate. 

4. Revise Management Directive 14.1 to require that employees who 

travel more than five times per year must use their Government 

travel card for official travel expenses. 

5. Identify frequent travelers and monitor card use to determine if (a) 

they have a travel card, and (b) are using it to pay for official travel 

expenses.

6. Implement mandatory split disbursement for individually billed 

accounts.
Audit of NRC’s Travel Charge Card Program

12

B. Accuracy of Quarterly Data Reports

OMB requires travel card program managers to report program data at least 

quarterly. OCFO officials responsible for the travel card program did not 

report accurate or supportable quarterly data to OMB. In FY 2011, NRC 

reported incorrect or unsupportable information for 6 of the 14 required data 

elements. This occurred because program managers do not effectively use 

the tools available through Citibank’s electronic access system11 and other 

sources. As a result, NRC management did not receive accurate 

information to inform program decisions.

OMB Requirements

OMB Circular A-123, Appendix B, requires certain agencies, including NRC, 

that participate in the travel card program to report 14 data elements (see 

Table 2) on a quarterly basis. The Circular states that ―data monitoring is a 

critical tool to improve program management and comply with legislative 

requirements.‖ Additionally, ―charge card managers and other stakeholders 

need timely and accurate data to assess:

• Compliance with legislative and administrative requirements.

• The effectiveness of efforts to mitigate risks of fraud, waste, and 

abuse.

• Performance trends in managing costs and other relevant 

indicators of program success.‖

Data Inaccurate and Unsupportable

NRC reports quarterly travel card program data as required. However, 

OCFO reported incorrect or unsupportable information to OMB on 6 of the 

14 required data elements for FY 2011. See Table 2 for a list of the 

elements and their status. 

 

11 The charge card contractor’s Internet-based system that provides account access and a variety of 

reports that assist in the effective management of the charge card programs.
Audit of NRC’s Travel Charge Card Program

13

Table 2

Data Element Status Reason

# cards Unsupported No supporting 

documentation

# active accounts Unsupported No supporting 

documentation

% of employees who are 

cardholders Unsupported No supporting documentation

Net # of new accounts Unsupported No supporting 

documentation

Dollars spent Correct

Refunds earned Correct

% of potential refunds 

earned Incorrect

The agency did not 

calculate actual % -

always reports 100%

# cases reported to agency,

OIG, or Coordinator for 

possible misuse

Correct

# administrative/disciplinary 

actions taken for misuse Correct

# cardholders with 

transaction limits Correct

% cardholders with 

transaction limits Correct

# cardholders with 

Automated Teller Machine

limits

Correct

% cardholders with 

Automated Teller Machine 

limits

Correct

% cardholders that are 

infrequent travelers Incorrect

Agency was basing 

this number on 

quarterly data instead 

of annual data

 Source: OIG analysis of OCFO information
Audit of NRC’s Travel Charge Card Program

14

OIG determined two data elements were incorrect and four were 

unsupported. Agency management agreed with the assessment of the two 

incorrect elements. The other four items are unsupportable because while 

the agency reportedly used data from the Citibank electronic access 

system, there was no documentation to support this statement. OIG 

recomputed the number of cardholders for each quarter using data obtained 

directly from the Citibank system and was unable to match OCFO results. 

The other three unsupportable categories are based on the number of 

cardholders, which, as noted previously, was not supportable.

Electronic Access System Not Effectively Used 

NRC does not accurately or efficiently report quarterly data because OCFO 

staff do not effectively use reports available from Citibank’s electronic 

access system. For example, three of four agencies benchmarked by OIG

obtain their respective agency quarterly data directly from available Citibank 

reports as opposed to the manual calculations performed by OCFO staff. 

At no additional cost, one agency also had Citibank create a custom report. 

Training Opportunities Missed

In addition, neither the travel charge card program manager nor the agency 

program Coordinator completed training to become familiar with Citibank’s 

reporting capabilities. GSA’s training for program managers recommends 

that they review the bank’s electronic access system training guide or go 

online to learn what specific reports are offered. Citibank’s Web site 

delivers basic, online training for using the reporting system and Citibank 

customer service representatives are always available to answer questions 

and resolve issues. 

GSA offers online training opportunities as well as in-person classes at

annual training meetings. At these training meetings, attendees are 

afforded opportunities to network with program managers from other 

agencies and others involved with travel cards and benefit from the 

experiences of other agencies; however, no one from OCFO has recently 

attended these annual meetings. 
Audit of NRC’s Travel Charge Card Program

15

Supporting Data Not Maintained By NRC

During the course of this audit, OIG requested supporting documentation 

for quarterly data reported to OMB. OCFO officials stated that they do not 

maintain quarterly source data gathered for OMB reporting. These actions 

run counter to GSA’s training program for managers and other officials,

which cautions that copies of all electronic reports generated, particularly 

statistical or summary reports, should be saved. 

Program Managers Cannot Determine Program Success 

Without correct data and historical program statistics, NRC program 

managers cannot optimally assess:

• Compliance with legislative and administrative requirements.

• The effectiveness of efforts to mitigate risks of fraud, waste, and 

abuse.

• Performance trends in managing costs and other relevant 

indicators of program success.

Further, NRC is in violation of the requirement to provide OMB with 

accurate information.

Recommendations

OIG recommends that the Chief Financial Officer: 

7. Use the Citibank reports enumerated in the contract as the basis 

for reporting required quarterly data. 

8. Ensure that the travel card program manager and the agency 

program Coordinator complete online training related to Citibank’s 

electronic access system.
Audit of NRC’s Travel Charge Card Program

16

9. Ensure that the travel card program manager and/or the agency 

program Coordinator attend GSA’s annual training meeting related 

to travel cards to network with other agencies regarding travel card 

program best practices.

10. Benchmark NRC’s data reporting strategies and results to at least 

three peer agencies. 

11. Review and analyze benchmarking information to determine if it 

can be implemented at NRC.

12. Develop and implement procedures to maintain quarterly statistical 

and narrative supporting information for subsequent review and 

trend analysis.
Audit of NRC’s Travel Charge Card Program

17

IV. CONSOLIDATED LIST OF RECOMMENDATIONS

OIG recommends that the Chief Financial Officer:

1. Develop and implement a policy to pay centrally billed travel card 

accounts daily or weekly. 

2. Check the productivity and sales refund deals offered by charge 

card vendors in comparison to other governmentwide charge 

card contracts to ensure a competitive rate.

3. Explore the possibility of using another agency’s existing task 

order (―tag along‖) to obtain a better rebate rate. 

4. Revise Management Directive 14.1 to require that employees 

who travel more than five times per year must use their 

Government travel card for official travel expenses. 

5. Identify frequent travelers and monitor card use to determine if (a) 

they have a travel card, and (b) are using it to pay for official 

travel expenses.

6. Implement mandatory split disbursement for individually billed 

accounts.

7. Use the Citibank reports enumerated in the contract as the basis 

for reporting required quarterly data. 

8. Ensure that the travel card program manager and the agency 

program Coordinator complete online training related to 

Citibank’s electronic access system.

9. Ensure that the travel card program manager and/or the agency 

program Coordinator attend GSA’s annual training meeting 

related to travel cards to network with other agencies regarding 

travel card program best practices.

10. Benchmark NRC’s data reporting strategies and results to at least 

three peer agencies. 
Audit of NRC’s Travel Charge Card Program

18

11. Review and analyze benchmarking information to determine if it 

can be implemented at NRC.

12. Develop and implement procedures to maintain quarterly 

statistical and narrative supporting information for subsequent 

review and trend analysis.
Audit of NRC’s Travel Charge Card Program

19

V. AGENCY COMMENTS 

An exit conference was held with the agency on March 27, 2013. Agency 

management stated their agreement with the findings and 

recommendations in this report and opted not to provide formal comments 

for inclusion in this report.
Audit of NRC’s Travel Charge Card Program

20

Appendix

OBJECTIVE, SCOPE, AND METHODOLOGY 

OBJECTIVE

The audit objective was to assess the adequacy and effectiveness of 

NRC’s policies, procedures, and internal controls over the travel card 

program for preventing and detecting travel charge card misuse and 

delinquencies.

SCOPE

The audit focused on reviewing the management and internal controls over 

the travel card program during FY 2011. We conducted this performance 

audit at NRC headquarters from January 2012 to October 2012. Internal 

controls related to the audit objective were reviewed and analyzed. 

Throughout the audit, auditors were aware of the possibility or existence of 

fraud, waste, or misuse in the program.

METHODOLOGY

OIG reviewed relevant Governmentwide charge card program requirements 

and guidance, including OMB Circular A-123, Appendix B, Improving the 

Management of Government Charge Card Programs, designed to provide a 

single source document incorporating any updates, new guidance, or 

amendments to existing guidance and establishing standard minimum 

requirements and suggested best practices for Government charge card 

programs that may be supplemented by individual agency policy and 

procedure. OIG also reviewed agency guidance, including management 

directives and office policies and procedures pertaining to Government 

charge cards, as well as audit reports of other Federal agencies related to 

this topic. We also examined a number of FY 2011 OCFO travel card

records. Specifically, the audit team reviewed the calculations for data 

element reporting to OMB for accuracy, and travel card training completion 

records to determine if employees completed the training before obtaining a 

card.
Audit of NRC’s Travel Charge Card Program

21

Additionally, OIG completed the necessary training required to use the 

electronic access system, CitiDirect® Card Management System. OIG 

auditors used the system to download, review, and analyze data related to 

NRC’s travel card program through the use of the Audit Command 

Language system. OIG also reviewed and analyzed SmartPay®2 statistics 

posted on GSA’s Web site.

OIG interviewed staff at headquarters in Rockville, Maryland, who 

participate in activities related to various aspects of NRC’s travel card 

program. We conducted these interviews to obtain staff insights into the 

implementation, management, and oversight of the program.

OIG also conducted telephone interviews with staff at the U.S. Agency for 

International Development, U.S. Securities and Exchange Commission, 

U.S. General Services Administration, and the National Archives and 

Records Administration regarding their conduct of travel card programs 

similar to NRC’s. 

We conducted this performance audit in accordance with generally 

accepted Government auditing standards. Those standards require that we 

plan and perform the audit to obtain sufficient, appropriate evidence to 

provide a reasonable basis for our findings and conclusions based on our 

audit objective. We believe that the evidence obtained provides a 

reasonable basis for our findings and conclusions based on our audit 

objective. 

The audit work was conducted by Eric Rivera, Team Leader; Kathleen 

Stetson, Team Leader; Terri L. Cooper, Audit Manager; Gail F.P. Butler, 

Senior Auditor; Mary W. Meier, Senior Auditor; and Gurpal Singh, Student 

Analyst.