Credit card usage still a county problem
KONK LIFE STAFF WRITER
More than three months after auditors from the Monroe County Clerk’s Office issued a concerning report about purchasing card usage in the top echelon of local government, county officials have not publicly addressed the issue.
County Clerk Amy Heavilin’s office released the 732-page audit report on July 7. Despite numerous apparent violations of county purchasing policy by elected commissioners and County Administrator Roman Gastesi, there has been no apparent action.
All five commissioners, Gastesi and a few other top officials are issued Bank of America credit cards. The intent of the so-called p-card program is to streamline purchasing, which, for approved expenditures, would avoid payment of sales tax.
County auditors started in December 2013 and examined policies, procedures and other guidance governing p-cards. They also evaluated whether “internal controls have been established and are being followed, where management controls failed and whether the results accomplish the goal of safeguarding county assets.”
Based on the audit report, seven cardholders purchased 29 items that were either “disallowed or lacking proper documentation.”
A review of those expenditures revealed that one cardholder—the purchaser is identified by account number, not name—made seven of those charges at a restaurant, hotel, to see three movies, to rent a car and to pay a toll.
Those charges totaled $502.05 of the $1,359.96 in charges that had been repaid to the county.
Disallowed purchases are for entertainment, meals, personal use, alcoholic beverages and non-work or personal use items and services.
Six cardholders purchased 16 items that were either disallowed or lacking proper documentation and never paid back to the county. Those charges total $718.88.
From the audit report: “Some of these disallowed purchases have not been reimbursed by the cardholders. Even when these disallowed charges are reimbursed, it is still a violation of the [Board of County Commissioner’s] purchasing card policy and procedure as well as the cardholder agreement and state of Florida purchasing card guidelines.”
During their investigation, auditors interviewed Gastesi, county Finance Director Tina Boan and other county staff including the p-card program administrator.
Auditors asked if she were “’aware of any abuses of the purchasing card by any cardholders?’ She responded, ‘While it’s technically a violation, the BoCC does not consider it a violation of their own policy.’”
The existing p-card policy was adopted in April 2006. From the establishing item: “The success of the BoCC purchasing card program relies on the cooperation and professionalism of all personnel with this initiative. The most important participant is the cardholder. The individual user is the key element in making this program successful.”
Also included in the guiding policies, Gastesi is responsible for cardholder abuses: “Appropriate disciplinary action will be taken against any cardholder who misuses their privileges of up to and including dismissal.”
The county auditors recommended that Gastesi should “enforce applicable disciplinary action and loss of privileges for continual cardholder misuse.”
Auditors also concluded that the applicable policies and procedures “are not being properly administered to accomplish the intended goals…”
Gastesi responded in writing to several of the auditors’ findings. For the 29 disallowed expenses that were reimbursed, Gastesi characterized the charges as “inadvertent, accidental or erroneous.”
On the still outstanding charges, Gastesi wrote: “Cardholders and staff continuously and diligently work to resolve charges, and will continue to work on clearing off sales tax and disallowed items.”
He asked for clearly defined examples, in writing, of what constitutes acceptable documentation of a p-card charge.
The audit period covered ran from Oct. 26, 2010 to Feb. 25, 2014. The complete document is available through the clerk’s office website.
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The Romans used to say: quis custodiet ipsos custodes, which means, who will watch the watchers?
Asking the officials who are cheating and abusing the system they are charged with protecting to censure themselves is ludicrous.
Instead of presenting a 732 page report to those responsible for the infractions, why is the report not sent to a police department?