BCC: Purchasing Card Transactions - Dated November 25, 2024
Summary
The Pasco County Clerk & Comptroller's Department of Inspector General, partnering with external firm MSL CPAs & Advisors, performed agreed-upon procedures on BCC department/division Purchasing Card (P-Card) transactions covering the period January 16, 2024 to July 16, 2024. The audit reviewed the full population of 16,879 transactions totaling $6,139,976 across 601 active cards, and tested a sample of 200 transactions for compliance with County policies, local laws, and Florida Statutes.
The sample of 200 transactions produced no exceptions regarding documentation, authorization, compliance, or proper recording. However, two recommendations were issued: the P-Card policy lacked full formalization (suspension and reactivation timelines were not documented), and 87 transactions out of the total population were found to lack required approval, with policy enforcement not applied during the initial new-card-provider implementation period of January through May 2024.
Management accepted both recommendations, indicating the P-Card Policy has been updated to clarify processes, formalize suspension and enforcement procedures, and specify how frequently the P-Card Administrator will monitor transactions.
2 findings
- Recommendation #1lowpolicy
P-Card Policies and Procedures Not Fully Formalized
Although the BCC had adequate P-Card policies and procedures in place, not all procedures were incorporated into the formal P-Card Policy document. Specifically, procedures related to the timeline for when P-Cards are suspended and the reactivation process were absent from the written policy. The lack of a single complete document increases the risk that personnel may not follow or consistently apply all required procedures.
Recommendation: BCC management should consider formalizing all P-Card policies and procedures into one complete document to ensure BCC personnel follow and consistently apply them.Management response: The County has updated the Purchasing P-Card Policy to be clearer on processes and policies. - Recommendation #2mediumpolicy
P-Card Policy Violations Not Enforced During Program Implementation
Of the 16,879 total P-Card transactions reviewed, 87 were not approved in accordance with the P-Card Policy, yet card users were still permitted to make charges. The P-Card Policy requires transactions to be processed by Fiscal teams within five business days of import into Munis. BCC personnel confirmed that during the initial implementation of the new card provider (J.P. Morgan Chase Bank) from January 16, 2024 through May 31, 2024, corrective actions by the P-Card Administrator for policy violations were not applied, with enforcement only beginning in June 2024.
Recommendation: BCC management should enforce the policies and procedures documented in the P-Card Policy, including card suspension and cancellation as key controls to ensure compliance.Management response: The County has updated the P-Card Policy that will go out to all employees. Changes and clarifications have been made to be more specific on enforcement of P-Card suspensions. Updates to how often the P-Card Administrator will check P-Card transactions have also been made, and consequences will be enforced if P-Card transactions are not cleared.