Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Audit Giftcards topic
No spam. Unsubscribe anytime.
Internal auditor flags gift-card controls; council asks for follow-up and possible state review
Summary
Wicomico County internal auditor Anjali Chatel reported weaknesses and documentation gaps in county gift-card usage and high-risk purchases, prompting calls from council members for clearer controls, possible state review of Local Management Board (LMB) grant practices and a council work session on potential legislation.
Anjali Chatel, the county's internal auditor, told the Wicomico County Council during its May 19 legislative session that a review of gift-card transactions across county units identified inconsistent documentation, possible "high-risk" purchases and limited county-level policy guidance for gift-card use. "I didn't see a policy specifically on gift cards in the purchasing manual," Chatel said, summarizing that her review found $49,000 in gift-card purchases within the scope she examined and examples that raised concern.
Council members pressed for details about who received cards and how controls were enforced. "We had transactions that appeared to be split into multiple receipts — $980 three times in the same day — and that raises concerns about invoice splitting and oversight," said Council Member (role: Council member) who led several follow-up questions during the presentation. Chatel said receipts showed many $10 Food Lion gift cards sometimes purchased in large batch receipts and that some recipient names had been redacted at the request of the county attorney; she noted the redaction justification provided in correspondence but said the legal basis was not fully documented in her report.
Some council members proposed seeking a neutral state review. "If this rises to the level where we need clarification from a more authoritative source, it could be helpful to ask the state auditor or attorney general to review the findings," Chatel said when asked whether the council should request outside review. Council discussion ranged from requesting clarification to considering a formal complaint; members agreed to draft a targeted work session and to consider whether to forward questions to state authorities for review of LMB grant-related practices.
Chatel also described instances where gift cards appeared to be used in food distributions (boxes provided to schools and walk-in distributions at an LMB site), but she said her scope did not include audit-level testing that would determine conclusive compliance or noncompliance with state law. "This wasn't an audit with testing; it was a review to identify patterns and raise questions," she said.
Council approved Resolution 77-2026 acknowledging the gift-card report. Several council members said they want legislative options and improved county purchasing controls to reduce risk. "We need sunlight and a path forward," one council member said. The council asked the internal auditor to bring sample legislative language and examples from other jurisdictions to a future work session.
