Official examines ‘P-cards’ program
Audit recommends changes for county employee credit cards
An audit of a credit card program used by Orange County government employees highlighted ways the program could reduce the risk of fraud, though no wrongdoing was uncovered.
The examination of “P-cards,” used to buy more than $15 million in goods and services each year, discovered purchases were sometimes not reviewed for need and purchasing limits were sometimes increased without permission.
Many cards hadn’t been used in years but remained open, raising the risk of fraud, the audit concluded. More than 600 of the county’s 8,000 employees have procurement cards.
“There’s no evidence of any misspending,” Comptroller Phil Diamond said. “But it could have happened.”
His staff suggested changes to tighten internal controls and the procurement division adopted them without disagreement.
Though the audit was released Thursday, many of the findings were presented initially to procurement authorities in January when most of the changes were adopted. Of the county’s 634 credit cards, 41 hadn’t been used in more than a year, 18 hadn’t been used for two years or more. The total monthly credit exposure of those cards was $1,387,500, auditors said.
“If a card hasn’t been used in two years, you have to ask yourself why is it even active,” Diamond said.
He also suggested the county promptly deactivate cards of employees who are fired, retire or quit. Auditors found 46 active accounts belonged to former employees, some of whom left more than three years ago.
Though none of those cards were used after the employee left, county policy requires employees to return their P-card before they leave. Supervisors should ensure the cards are cancelled. The audit also found some employees increased the spending limits on their cards without consent. Though the county’s procurement manual imposes purchasing limits of $1,500 per transaction and $37,500 per month, 23 cards had higher purchase limits. The Pro
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