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Internal auditor flags missing PPG credit‑card policies, recommends written controls
Summary
An internal audit presented Oct. 10 found PPG lacks written credit‑card policies and identified control weaknesses — including poorly documented business purpose, missing receipts and meal tips above policy — and recommended drafting formal procedures; management provided draft policies on Oct. 7.
An internal auditor told the Black Hills Parish Audit Committee on Oct. 10 that the PPG account lacks written credit‑card policies and that the absence of formal controls creates a “medium risk of fraud, waste, and abuse.” The auditor said management provided draft policies to the auditor on Oct. 7 and recommended the committee use the audit report’s guidance (section 5) to finalize formal policies.
Why it matters: Written credit‑card policies define allowable purchases, required supporting documentation and approval steps that auditors and statewide agreed‑upon procedures (AUPs) check. Without such policies, routine card activity is harder to monitor and exceptions can go undetected.
The audit review covered 12 months of PPG credit‑card transactions. The auditor reported multiple recurring problems: business purposes on expense forms were not clearly documented, meal‑participant names were missing, some meal tips exceeded 20 percent, expense forms lacked separate authorizing signatures, and at least one receipt was missing. The auditor recommended establishing written internal controls and segregated review and approval procedures.
Committee members raised procedural concerns tied to new statewide AUPs that now explicitly check for credit‑card policies. One committee member said external auditors historically did not focus on internal controls and urged the committee to ensure PPG’s draft policy complies with the statewide requirements. The auditor replied that the draft “looks pretty good and pretty thorough.”
On card inventory, committee members asked staff to confirm how many active cards exist and whether any reported corporate or “super corporate” accounts correspond to physical cards. The auditor said Regions Bank account listings identified several accounts; staff were asked to verify which cards are active and to cancel any unused physical cards to reduce risk.
The committee directed staff to follow up by email with specific line references in the audit report and to report back on the number of cards, any monthly card fees, and the status of draft policies. No formal motion was taken on the PPG audit at this meeting.
Ending: The auditor recorded the observations in the audit worksheet and warned that if follow‑up finds the same deficiencies, additional action would be required.
