Re­view de­serves credit

Kwinana Courier - - News - Vanessa Sch­mitt

THE City of Rock­ing­ham had 90 credit cards is­sued to staff and more than $1 mil­lion in pur­chases made in a nine month pe­riod, ac­cord­ing to a Con­trols Over Cor­po­rate Credit Cards re­port.

For­mer Au­di­tor Gen­eral Colin Mur­phy au­dited eight lo­cal gov­ern­ments on credit card use from Jan­uary 1 to Septem­ber 30 last year. A wide range of coun­cils were au­dited.

The in­tent of the re­port was not to com­pare coun­cils but to pro­vide ex­am­ples of bet­ter prac­tice as well as the op­por­tu­nity for im­prove­ment.

Mr Mur­phy said the coun­cils au­dited gen­er­ally had sat­is­fac­tory con­trols.

But he did note var­i­ous short­com­ings and made re­lated rec­om­men­da­tions for im­prove­ments.

In re­la­tion to the City of Rock­ing­ham, the re­port found the lo­cal coun­cil did not al­ways have the ap­pro­pri­ate in­de­pen­dent ap­provals on credit card trans­ac­tions.

“For 54 per cent of card­hold­ers, the cod­ing and re­view of the trans­ac­tions was per­formed by sub­or­di­nates and the card­hold­ers there­after ap­proved their own trans­ac­tions,” the re­port said.

The City of Rock­ing­ham did not have ad­e­quate doc­u­men­ta­tion for 20 per cent of trans­ac­tions au­dited.

The City of Rock­ing­ham and Shire of Carnar­von had re­cently au­dited their credit cards. The re­port found this pro­vided man­age­ment with an im­por­tant in­sight into credit card us­age and ef­fec­tive­ness in con­trols.

City of Rock­ing­ham act­ing chief ex­ec­u­tive Bob Jeans said coun­cil was not con­cerned about the find­ings of the au­dit.

“Im­por­tantly, the au­dit did not find any in­stances of in­ap­pro­pri­ate use of credit cards,” he said.

“All credit card trans­ac­tions re­ceive third party in­spec­tion, al­lo­ca­tion and sign-off.

“The au­dit rec­om­mended an­other layer of ap­proval where su­per­vi­sors of card­hold­ers au­tho­rise all credit card trans­ac­tions.

“This has been ac­cepted and implemented.”

Mr Jeans said the City con­stantly re­views all sys­tems and pro­cesses.

“There are no im­me­di­ate plans to make any fur­ther changes to credit card sys­tems,” he said.

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