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District explains purchasing‑card controls and gift‑card procedures after earlier audit recommendations
Summary
Officials summarized procurement‑card controls and the district’s process for purchasing and tracking gift cards for student incentives, noting gift cards are prohibited for employee compensation, are tracked closely and that an OLA audit will review processes in the coming year.
Business office staff reviewed the district’s procurement‑card (P‑card) controls and the procedures used to purchase and track gift cards following recommendations in a prior legislative audit.
The district said it established formal P‑card guidelines after a 2014 audit recommendation; P‑cards are assigned based on role, have single‑purchase and weekly limits, and require annual training. Transactions are entered into the district’s Business Plus system and routed through a workflow that permits supervisors and managers to review receipts. P‑cards are restricted from purchases of furniture, fixtures, equipment or technology without advance authorization and generally are not used to purchase restaurant or catered food unless the purchase is for instructional purposes.
Staff said the 2014 audit observed gift cards as an area of concern in some government entities, but that Wicomico County Public Schools did not have audit findings specifically about misuse of gift cards. The district developed a gift‑card validation form and a tracking process from request through distribution; staff said gift cards are permitted when used as awards and student incentives and may not be purchased for employees. The district also accepts donated gift cards from outside entities for employee recognition (for example, teacher‑of‑the‑year donations) but cautioned about public perception, noting board members raised concerns about donated scratch‑off lottery tickets appearing in teacher gift baskets.
Staff reported 179 instances of gift‑card purchases in the prior year: 16 purchases were from general state funding (used for PBIS and attendance incentives), 32 from school activity funds and the remainder from grants. The business office said a new Office of Legislative Audits review is expected in 2026 and that procurement and gift‑card controls are on record for review.
Board members asked about the possibility of audit sampling of P‑card transactions; staff said the Office of Legislative Audits will examine P‑cards during the next audit cycle and that the district performs its own annual review of key purchases.
