City audit finds no misuse of P-cards but urges tightened controls and training

City staff presented preliminary findings from a consultant review of the city's purchase-card (P-card) program. The consultant reported no evidence of misuse of public funds but identified multiple instances where procedures were not followed: missing receipts, split charges, and inconsistent approval and documentation practices.

Preliminary recommendations include reducing the overall number of P-cards to improve internal control, updating and clarifying the P-card manual and approval process, centralizing larger vendor accounts (e.g., Home Depot, Grainger) to reduce reliance on P-cards for routine purchases, and improving onboarding and periodic training for cardholders and approvers. Staff said many of the procedural lapses were linked to timing and system constraints (a 30-day window for certain approvals in the current system) and that improving timely approvals would mitigate much of the observed noncompliance.

Council members urged stronger accountability measures, including linking P-card compliance metrics to supervisory oversight and considering administrative consequences for repeated procedural violations. Staff said they will finalize the consultant's report in March and return with specific policy and implementation recommendations.