Baker Tilly review finds widespread P-card policy lapses; recommends tighter controls and reconsideration of issuing cards to elected officials

A best-practice review of the City of South Fulton's purchasing card (P-card) program conducted by Baker Tilly found continued policy violations, concentrated spending in higher-risk categories (food, travel, lodging, events and equipment), and inconsistent compliance enforcement. The firm recommended structural changes, stricter rules for elected officials' card use and stronger inventory and oversight controls.

The nut graf: Baker Tilly's review examined 25 months of P-card transactions and found nearly $2.86 million in spend; about $840,000 of that amount came from cards issued to the mayor and council members. The firm told council that policy was in place but lacked an accountable structure to enforce rules and recommended either cancelling mayor/council cards or implementing zero-tolerance enforcement and alternative ways to support constituent outreach.

What the review found: Baker Tilly said it reviewed 85 cardholders over a 25-month period (Jan. 2023'Jan. 2025). Of cardholders, roughly 11% were council or mayoral cardholders; the remaining 89% were staff. Total P-card transactions in the review period were about $2.86 million; the staff cohort accounted for roughly $2.02 million and the mayor/council cohort about $840,000. Spending tended to be concentrated in a few departments (economic development, fire, police and public works) and in higher-risk categories such as food, travel, lodging, events and equipment.

Baker Tilly said policy violations identified in prior work (2022/2023) were still observed and that auditors found 13 of 18 prior audit recommendations were not fully addressed. Presenters told council that many P-card purchases appeared inconsistent with best practices for internal controls and that both staff and elected-cardholders had instances of noncompliance.

Recommendations and practical options: The review offered a range of steps to improve controls, including: - Reassess mayor and council use of P-cards (options include canceling cards for elected officials, requiring staff to make constituent purchases, publication or public review of P-card statements, or a strict suspension policy for misuse). - Implement a four-part test (public purpose test) for purchases that claim a primary public purpose before using public funds for constituency giveaways. - Build an accountable P-card program structure (cardholder training, compliance officer, threshold-based approvals, stronger reconciliation and enforcement processes). - Add inventory and controls for equipment and supplies to reduce risk and identify consolidation or contract purchasing opportunities.

City response: City staff provided written responses to each recommendation and said several changes were under way: procurement and IT were working on inventory control improvements; a compliance officer role would be hired to enforce P-card compliance; Truist Bank was being asked to print tax-exempt wording on new cards; and the city planned additional training and a documented approval process for new cards. Baker Tilly noted a substantial portion of travel/lodging transactions were for police and fire training and recruitment.

Council reaction: Council members asked for implementation timelines and emphasized stricter controls for elected officials' cards and transparency about district-level spending. Baker Tilly said the practice of issuing P-cards to elected officials is uncommon and increases oversight risk, though state law permits such use when strict controls exist.

Ending: Baker Tilly recommended urgent adoption of an accountable program structure and active enforcement. City staff told council they were already working on several of the recommendations and that procurement and finance would return with implementation details.