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Audit finds gaps in P‑card controls; auditors recommend policy updates and follow-up
Summary
An audit of the city’s procurement card (P‑card) program found outdated procedures, missing receipts and user‑access weaknesses. Audit staff recommended policy updates, strengthened controls for terminated employees and further analysis of flagged transactions; the committee approved the report and requested follow-up.
Audit staff presented findings from a review of the city’s procurement card (P‑card) program and identified control and monitoring weaknesses the committee said require corrective action.
The audit team said it analyzed approximately 20,000 transactions to test compliance with policy and identify outliers. Findings included an out-of-date P‑card policy, multiple transactions without required supporting receipts, instances of transactions not approved in the payment system, and cardholder access that had not been removed for employees who left city employment.
Audit staff noted about 26,000 P‑card transactions pass through the program annually and that the team flagged a subset of transactions for further investigation, including roughly 1,644 transactions identified as questionable in value (transcript language: “exceden los 3,000 dólares”); the audit also identified about 123 cardholders with limits higher than their typical spending and found some cards remained active for roughly three months after termination. Staff emphasized the audit did not assert all flagged transactions represented improper use, only that they warranted follow-up.
Audit recommendations included updating the P‑card policy and procedures, improving transaction monitoring, removing access promptly when employees terminate, leveraging the new Chase platform to add individual controls, and performing periodic follow-up audits. Finance and audit staff said they agreed with recommendations and plan to implement strengthened separation-of-access procedures and additional monitoring.
The committee moved, seconded and voted to accept the audit report and its recommendations, and directed staff to report back on corrective actions and the results of investigations into flagged transactions. Audit staff also said follow-up on recommendations is included in the audit office’s tracking cycle and may be revisited within a 3–5 year cycle or sooner depending on severity.
