Audit of Purchasing Card Program, July 2018

5 |  A u d i t o f t h e P u r c h a s i n g C a r d P r o g r a m  J u l y 2 0 1 8 Number of P-Cards Monthly Transaction Limit 34 Suspended to Credit Limit of $1* 3 $5,000 5 $10,000 31 $20,000 232 $25,000 15 $50,000 6 $100,000 1 $500,000 * P‐Cards may be suspended when one of the following circumstances occurs: (1) the P‐Card is to be cancelled,  (2)  the P‐Cardholder is disciplined, or (3) the P‐Card is used infrequently and the suspension is lifted when purchases  need to be made. Between the post dates of October 1, 2016 and September 30, 2017 (audit period) there were a  total of 23,826 purchasing card transactions totaling $6.82 million.  The purchasing card application is a web‐based application. The County utilizes the application  to order new P‐Cards, modify single transaction limits and credit limits, review and report  information from P‐Card transactions, suspend or revoke P‐Cards, and electronically approve  transactions by cardholders.  Cardholders making purchases must adhere to the cardholder responsibilities listed in chapter 2  of the P‐Card Manual. They are required to utilize the County’s tax exempt status, collect  itemized receipts for each purchase, record the account number or project to be charged, and  review and approve charges in the purchasing card application at least monthly. During the  monthly review process the Cardholder signs the billing statement, within the reconciliation  packet, to acknowledge the transactions purchased on the Cardholder’s P‐Card.  The P‐Card Account Coordinantor reconciles purchases made on P‐Cards for their specified  group of Cardholders. The P‐Card Account Coordinator reviews monthly statements with  Cardholders, verifies account codes for each transaction, matches receipts to monthly  statements, and compiles a reconciled packet to the Department approving official and  Department Director for review and approval. The reconciliation packet contains a statement of  acknowledgement that states “I certify that I am authorized to approve this expenditure and  that the funds are being spent for a public purpose, in conformance with County Purchasing  procedures and vendor contracts, and without overspending the applicable account or fund of  the County budget.” This statement is signed, at a minimum, by the Department Head or  Representative, and additionally may be signed by the Department approving official and the P‐ Card Account Coordinator.  The Finance Department receives the reconciliation packet and performs the final verification  of receipts and charges, prior to payment to the bank. If questioned items are identified at this