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Controller flags procurement card issues; council approves large health cost transfer
Summary
The city controller reported p‑card review findings including miscoded accounts, vendor surcharges contrary to policy and five late invoice payments. Separately council approved an approximate $5.9 million transfer into risk management to cover increased health and prescription costs amid questions about coverage for weight‑loss medicines.
Controller presented a May 2025 p‑card review covering 225 statements, 722 documents and $224,382.51 in charges. The report found multiple transactions coded to the wrong account; departments were advised and made correcting journal entries. The controller noted that some vendors are charging surcharges that are contrary to city policy and that departments were advised to use checks where possible to avoid surcharges when permitted. The controller also reported five invoices that were paid late; the departments provided explanations for the delays.
Later in the meeting council approved R152, a transfer reported in the transcript as approximately $5.9 million into the risk management account to cover higher employee health and prescription costs. During floor discussion a councilmember asked whether the increase related to union contract costs or specific individuals; staff replied the city is self‑insured and "we are experiencing higher cost in health care." A public commenter, Karen Ocasio of Southside Allentown, said "the weight loss medicine is actually not covered by medical anymore" and that because the city is self‑insured "they pay their own medical," urging clarification. Staff responded that coverage continued "for medical reasons" under the city's plan and that policy had not changed.
The controller suggested the city may need to revisit policy guidance on surcharges given a trend of more businesses charging them. The transfer to risk management was approved with a recorded tally of 7 yeas and no nays.
