U.S. Geological Survey Manual

No. OFM 97-08

Date: September 9, 1997

Subject: Post-Entry Audit and Statistical Sampling Plan (Replaces IM 97-02)

This Instructional Memorandum (IM) applies to Bank Card Processing and to Remote Data Entry (RDE) of Accounting Source Documents. It raises the dollar thresholds at which RDE sites are required to provide copies of source documents to the Office of Financial Management (OFM).

At the start of FY 1997, OFM initiated a statistical sampling process for a post-entry audit of all types of accounting source documents entered into the Federal Financial System (FFS) under RDE procedures. The purpose of the audit process is to confirm that bureau and division-level financial controls are sufficient to guard against fraud, waste and misuse of U.S. Geological Survey (USGS) resources, and that the FFS data integrity is maintained. As a result of positive review findings to date under the USGS statistical sampling program, OFM is raising the dollar threshold for providing to OFM copies of source documents for both Bank Card and RDE transactions.

FFS Data Entry

Both remotely-entered transactions (expanded RDE and limited field payments) and OFM-entered transactions will be subject to random sampling and audit. All payments and purchase orders less than or equal to $20,000 may be randomly selected for audit by a statistical sampling program. A 100% audit will be performed on documents reflecting values over $20,000.

When apparent errors are found during the audit process, OFM will directly contact the remote entry site to obtain additional information, to provide instruction on proper procedures, or to assist the remote entry user in making the proper correcting entry. Users may be requested to provide copies of original documentation or other supporting or explanatory material. Summary information from the audit reviews will also be compiled to identify control weaknesses, develop training requirements, and to improve the remote entry process.

• For All Payments greater than $20,000 : Fax all supporting documentation to OFM at (703) 648-7687, immediately after entering the payment into FFS. The documentation should include the vendor invoice, receiving report, and obligation if applicable.
• All Payments less than or equal to $20,000 : Documentation should be sent to OFM only if OFM contacts the entering office because the payment has been randomly selected for audit. Fax all supporting documentation to OFM at 703-648-7687. The documentation should include the vendor invoice, receiving report, and obligation if applicable.
• Purchase Orders Over $20,000 : Fax all supporting documentation to OFM at 703-648-7687 immediately after entering the obligation into FFS.

Purchase Orders less than or equal to $20,000 : OFM will contact the entering office if the obligation is selected for audit. Fax all supporting documentation to OFM at 703-648-7687.

Bank Cards

OFM, in conjunction with the Office of Acquisition and Federal Assistance (OAFA), carries out a sampling process for reviewing charges against the International Merchant Purchase Authorization Card (I.M.P.A.C.) VISA charge cards. The sampling process applies to all bank card transactions. The requirement for RDE sites to send a copy of the annotated bank card statement to OFM is hereby changed from a monthly statement total of $5,000 to $10,000.

• Send copies of all bank card statements with total monthly purchases over $10,000 to OFM at Mail Stop 270 immediately after the statement is entered into FFS. All supporting receipts must also be sent.
• Send copies of monthly statements less than or equal to $10,000 with supporting receipts to Mail Stop 270 only when notified by OFM. These statements will be audited only if selected in the random sample. For those bank cardholders participating in RDE and who retain their statements on site, OFM will call or E-mail the bank cardholders and their appropriate Administrative Officers if their bank card statements are selected for the audit. OFM will request that a copy of the annotated statement and all applicable receipts be sent for review.

OFM must receive this information within 2-3 working days of the request. If bank card statements and supporting documentation are not provided within the requested time, OFM will notify OAFA, which may suspend the cardholder's privileges pending a determination of the circumstances. Cardholders, approving officials, and RDE personnel are advised that documents faxed or sent to OFM must reflect the actual statement which was used to make the RDE entry. Any alteration of the source and/or supporting document(s) after RDE entry and before faxing them to OFM may be construed to represent falsification of official Government records. OFM and OAFA will work with card holders, administrative officers, and approving officials to develop any appropriate corrective actions necessary as a result of the statement review process.

NOTE: Bank cardholders not participating in expanded RDE must continue to forward their monthly statements to OFM.

All supporting documentation that is forwarded to OFM as part of the statistical sampling process must be clearly annotated as "Stat Sampling Documentation".

For further information:

If you have any questions about this memorandum or OFM statistical sampling activities, please contact Mary Christensen at 703-648-7608 (mchriste@usgs.gov) or Kathleen Carpenter at 703-648-7664 (kcarpent@usgs.gov).

This IM is effective upon date of issuance.

This IM will remain in effect until superseded or canceled.

Timothy E. Calkins, Chief
Office of Financial Management