Without agencywide operating procedures, the Army has relied on its major  command and local installation program coordinators to establish  purchase card policies and procedures to guide approving officials,  cardholders, and others involved in the purchase card program as they  implement the program. The guidance  also does not establish program coordinators’ oversight responsibilities. Inadequate human capital resources. Also, many approving officials are responsible for a large number of  cardholders. We identified three types of improper  purchases. Another type was split purchases in which the  cardholder circumvents cardholder single purchase limits. Transactions that are both improper and abusive were  discussed previously. Recommendations for Executive Action

To strengthen the overall control environment and improve internal control  for the Army’s purchase card program, we recommend that the Secretary of  the Army direct the Deputy Assistant Secretary of the Army (Procurement)  and other Army officials as appropriate to improve the overall Army  purchase card infrastructure by taking the following actions. Although most cardholders have limits of $2,500, some  have limits of $25,000 or higher.
What GAO Found

The Army's purchase card program--the largest within the Defense Department--offers significant benefits, but weak internal controls have left the Army vulnerable to fraudulent, improper, and abusive purchases. The Army has yet to issue servicewide regulations or operating procedures, instead relying on ad hoc memoranda and other informal guidance. The Army also does a poor job of overseeing the purchase card program. The Army lacks the infrastructure--guidance and human capital--needed for effective program oversight. GAO identified several improper transactions involving clothing, food, and other items. GAO also identified improper purchases in which cardholders made a large number of purchases of similar items to circumvent the mandated limit of $2,500 for a single purchase.