FOR IMMEDIATE RELEASE
City releases results of (P-Card) audit
Policy revised to strengthen program integrity
“We are committed to conducting these types of internal audits to ensure that our financial integrity is upheld,” said the city’s Chief Financial Officer Randy Harrington. “It is important that we remain diligent in our use of public funds. The city has a strong commitment to good stewardship, and we will hold our organization accountable to always do the right thing.”
Harrington said the city has taken proactive steps to improve the program. Revisionsto the P-Card policy will make it stronger and P-Card holders will receive training on the changes. In addition, the city’s new financial management system provides an additional layer of oversight that will reduce the possibility of misuse.
Audit findings and learnings include:
The majority of transactions(95%) were processed in compliance with established policies, but better adherence to controls is required to ensure the continued integrity of the P-Card program.
The potential for misuse has been significantly reduced due to improved financial systems.
The P-Card policy has been revised to help ensure program integrity. One significant difference is that the revised policy now prohibits a P-Card holder from also serving as a program manager, a change that provides additional checks and balances in financial oversight.
The city auditor identified irreconcilable P-Card records of a former employee. The findings have been turned over to CMPD for investigation.
During Fiscal Year 2014, there were 550 P-Card holders. Over the course of that time period, 18,851 transactions totaling $4 million were conducted. For purposes of the audit, 497 transactions were tested that totaled $689,823, representing 3 percent of transactions processed by the city.
The city conducts numerous internal audits each year in an effort to evaluate financial controls, test compliance with policies and promotetransparency.