Board of Commissioners DeKalb County Board of Commissioners

Larry Johnson, MPH
Presiding Officer

Commissioner Elaine Boyer, District 1 Commissioner Jeff Rader, District 2 Commissioner Larry L. Johnson, District 3 Commissioner Sharon Barnes Sutton, District 4 Commissioner Lee May, District 5 Commissioner Kathie Gannon, District 6 Commissioner Stan Watson. District 7

MORRIS E. WILLIAMS, III Chief of Staff - DeKalb County Board of Commissioners
TO: Commissioner Larry Johnson, Presiding Officer - District 3 Interim CEQ-LeeMay Morris E. Williams, III, BOC 2011 P-Card Audit April 4, 2014

FROM: SUBJECT: DATE:

C'hVS~~~~~~'(I};......

I understand that questions have arisen about the 2011 P-Card Audit in which the auditor opined that I "did not fully comply". I have attached both the auditor's original and revised reports that provide recommendations for correcting this deficiency. Please contact me should there be any questions or concerns.

cc:

Board of Commissioners, Members ZacharyWilliams, .Executive Assistant/COO Edmond Richardson, Interim CEO - Chief of Staff

Attachment

DeKalb County Board of Commissioners, The Manuel Jo. ~a!?OfCeDter, 130()Commerce Drive, Decatur, GA 30030

Sanders. Barbara H.
From: Sent: Walton, Alexis Monday, January 30,2012 10:00 AM Sanders, Barbara H. Louis, Cornelia Exit Conference Revision on December 2, 2011 Exit Conference Agenda.pdf; Exit Conference - Revision.pdf

To: Cc:
SUbject: Attachments:

Ms. Sanders per our conversation this morning, here are the revisions to the following Purchase Card (p-Card) Audit Reports: (see 2nd pdf attachment) 1. Chief of Staff to the Board of Commissioners 2. Clerk of Chief Executive Officer and County Commission's Office -Please note: I also attached the original exit conference agenda from our December 1,,2011 meeting. . 'i: If you have any additional questions, give me a call.

Alexis WaYron
DeeaiUi,· Gi-a0030
DeKaIb Coun4' Go~ent Internal Audit & licensing 1300 Commerce Drive 4th Floor

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office (404) 687-2706 fax (404) 371-2055 anwalton@dekaIbcountyga.gov
-- The only place where SUCCESS Comes before WORK is in a dictionary ~ , a

Mark Twain

Internal Audit & Licensing
Cornelia Louis Acting Deputy Director of Finance

Chief Executive Officer
W. Burrell Ellis, Jr.

Board of Commissioners
District 1

Elaine Boyer
District 2
Jeff Rader

EXIT CONFERENCE

~YI~j~
DATE: SUBJECT: 'RE~ December 2, 2011 Purchase Card Comprehensive Audit Review . -Board--of-eommissionersfCentral--Staff rCounty'CletktoCEO&

District 3 Larry Johnson District 4 Sharon Bames Sutton District 5 Lee May

BOC

District 6
Kathie Gannon District 7

AGENDA I. GENERAL INFORMATION AUDIT OBJECTIVE AND METHODOLOGY

Stan Watson

We reviewed cardholder transactions, signoffreports, purchase comments and invoices to determine: The P-Card Administrator maintained the transaction log on a monthly basis. The cardholder attached applicable receipts to the monthly transaction log. Transactions were appropriate for the department's business. Individual transactions did not exceed the amount specified by County P-Card policies and procedures ($1,000 maximum.per individual purchase). • Total monthly transactions did not exceed amount specified by the County P-Card policies and procedures ($2,000 maximum.per month). -Cardholders were Dot using theP-Gard for non-business related goods and services. - The transactions were approved. (Manager and/or Department Head)
PURPOSEAND SCOPE

• • • •

To determine whether DeKalb County personnel assigned to P-Cards were complying with DeKalb County Purchasing Card Policy. This review included transactions for the period December 1, 2010 through May 31, 2011.
II. DEFICIENCY, RECOMMENDATION, & COMMENTS

~ Chief of Staff to the BOC -

~YI~:i3~Did not fully comply

Deficiency Out of 57 transactions, 30 receipts were available. Recommendations All P-Card transactions should have supporting documentation. Adequate documentation ensures that expenditures incurred are in compliance with the PCard policy.

6

P-Card Review BOC Exit Conference

~ County Clerk of CEO & DOC ...;~~~~
Deficiency

Did not fully comply

The Transaction logs (Logs) were not completed or maintained.
Recommendation

Per P-Card policy, Logs are to be completed and maintained monthly by the Cardholder for all P-Card transactions; the Log provides an explanation for the purchase. Monthly , reconcilement of the Log against the electronic statement-sheuld-be-perfotm-ecl1oeDSi.ire , ,-iliat-auili.orizetl purcliases are approved, unauthorized charges are corrected, and charges are posted to the appropriate genera11edger account. Upon completion, Logs m:e to be . reviewed and approved by the Cardholder's Manager or Director to ascertain compliance with the policy guidelines.
Comments

During our review we obsetvedthat several vendors included sales tax on twenty (20) receipts. Total estimated sales tax paid was $285.00. In ofderto take advantage of DeKalb County tax-exempt status, cardholders should present their certificate of exemption to the vendor. We also observed the following P-Card transactions:
L

During our review, we observed eight (8) purchases of cake from A Piece of'Cake Bakery totaling $499.74. Six of the eight transactions were made on County Commission meeting days. Using theP-Card to purchase cake should be discouraged; these types of transactions are uneconomical Also, for' th~ audit period, food purchases totaled $123.96. These purchases were for an Administrative Executive Day luncheon. The purchase of food for staff recognition may be perceived as entertainment or non-business related expenses. Purchasing and Contracting should establish P-Card program guidelines to clearly defme inappropriate usage of the P-Card These guidelines should provide a list of prohibited expenditures that cardholders should not purchase. This will ensure proper utilization and program management for P-Card holders.

11.

III. ADDITIONAL REMARKS FROM AUDITEE

IV. MEETING IS ADJOURNED

Internal Audit & Licensing
Cornelia Louis Acting Deputy Director of Finance

Chief Executive Officer
W. Burrell Ellis.

rr.

Board of Commissioners
District 1

Elaine Boyer District 2
Jeff Rader

EXIT CONFERENCE
DATE: SUBJECT: RE: December 1, 2011

District 3 Larry Johnson

District 4
Sharon Barnes Sutton

Purchase Card Comprehensive Audit Review Board of Commissioners / Central Staff / County Clerk to CEO & BOC
AGENDA

District 5 Lee May "Distnct6 Kathie Gannon District 7 Stan Watson

I. GENERAL INFORMATION AUDIT OBJECTIVE AND METHODOLOGY
We reviewed cardholder transactions, signoffreports, purchase comments and invoices to determine: •
II

• •
II

II

The P-Card Administrator maintained the transaction log on a monthly basis. The cardholder attached applicable receipts to the monthly transaction log. Transactions were appropriate for the department's business. Individual transactions did not exceed the amount specified by County P-Card policies and procedures ($1,000 maximum per individual purchase). Total monthly transactions did not exceed amount specified by the County P-Card policies and procedures ($2,000 maximum per month). Cardholders were not using the P-Card for non-business related goods and services. The-transactions 'weteapproved: (Maiiagerand/orDepartment Head)

PURPOSE AND SCOPE
To determine whether DeKalb County personnel assigned to P-Cards were complying with DeKalb County Purchasing Card Policy. This review included transactions for the period December 1, 2010 through May31, 2011.

n,

AUDIT OPINION

I) BOC- District 1 - Did not comply 2) BOC - District 2 - Complied 3) BOC - District 3 - Complied 4) BOC - District 4 - Did not comply 5) BOC - District 5 - Did not comply 6) BOC - District 6 - Complied 7) BOC - District 7 - Complied

8) Chief of Staff to the BOC - Did not comply
9) County Clerk of CEO& BOC - Did not fully comply

P-Card Review BOC Exit Conference

IDo DEFICIENCY. RECOMMENDATION. & COMMENTS ~ DOC- District 1 - Did not comply with P-Card policies & procedures. Deficiencies

I) Out of 50 transactions, 12 receipts were available.
2) The Transaction Logs (Logs) were not approved by cardholders Manager or

Director. 3) During the audit period. 60 % of all transactions· were for food related purchases. .AdeQ:u~t~. - 30cumentation ensures that expenditures incurred are in compliance with the P-Card policy. .J 2) To ensure management's review of compliance with the P-Card policy, completed Logs are to be reviewed and approved by the Cardholder's Manager or Director. Cardholders should not approve their Logs. Approvers should be higher-level employees than the Cardholder employee; this allows the approver to challenge transactions when the business purpose is not readily apparent. 3) All P-Card transactions should be limited to business-related goods and services, and efforts should be made to reduce the frequent use of the P-Card at restaurants, This was also mentioned in our last P-Cardaudit report, dated April 2, 2010.
Comment Recommendations 1) All P-Card transactions should have supportinR~Q9~~ntation._

We reviewed the corresponding general ledger accounts for each transaction. Several operating supply related expenditures were charged to "other miscellaneous charges." These-transactions could-be misclassified. The following general ledger account may be more appropriate for the transaction type. Obieet Cede
531101 , DOC - District 2 - Complied with P-Card Policy & Procedures Comment

During our review we observed that the vendor included sales taxes on three receipts. In order to take advantage ofDeKalb County tax-exempt status, cardholders should present their certificate of exemption to the vendor. We also observed that $51.31 was paid for flowers sent to a non-county employee during their hospitalization. Also, $36.92 was paid for a cake donated to one of DeKalb County Public Safety Divisions' holiday luncheon. Although, the P-Card policy does not specifically address the purchase of such items, using the P-Card to purchase ~ake and flower~ should be discouraged, These types transactions can be perceived as non-bUSIness or personal items.

of

1300 Commerce Drive 14th Floor I Decatur, Georgia IP: 404-371-2639 F: 404-371-2055 www.dekalbcountyga.gov

P-Card Review BOC Exit Conference

~ BOC- District 3 - Complied with P-Card Policy & Procedures

Comment
In the last Office ofBOC-District 3 P-Card Audit report, dated April 2, 2010, Internal Audit noted several deficiencies. Internal Audit commends the Office of BOC-District 3 for their improvement in adhering to the P-Card policies and guidelines. ~ ROC- District 4 - Did not comply with P-Card policies & procedures

Deficiencies
1) Out of 49 transactions, 9 receipts were available. 2)· The Transactlolllogs (Logs)werenof completed or maintained.

Recommendations
I) All P-Card transactions should have supporting documentation. Adequate documentation ensures that expenditures incurred are in compliance with the P-Card policy. 2) Per P-Card policy, we recommend that BOC-District 4 complete and maintain Logs and reconcile the Logs against the electronic statement monthly.
Comment

We reviewed the corresponding general ledger accounts for each transaction. Several transactions were charged to "operating supplies"; they were travel-related expenditures. These transactions are misclassified. Future travel-related transactions can be charged to the following general ledger account object codes. Object Codes 523502
523504

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523506

Object Code Name _1:rav~1,:Airfa[e Travel-Accommodations Travel-Miscellaneous

/ Hotel

~ BOC - District 5 - Did not comply

Deficiencies
1) Out of 45 transactions, 4 receipts were available.

2) Transaction Logs (Logs) were not completed or maintained.
Recommendation

1) All P-Card transactions should have supporting documentation. Adequate documentation ensures that expenditures incurred are in compliance with the PCard policy. 2) Per P-Card policy, Logs are to be completed and maintained monthly by the Cardholder for all P-Card transactions; the Log provides an explanation for the purchase. Monthly reconcilement of the Log against the electronic statement should b~ performed to ensure that authorized purchases are approved, unauthonzed charges are corrected, and charges are posted to the appropriate general account. Upon completion, Logs are to be reviewed and approved by the
1300 Commerce Drive 14th Floor IDecatur, Georgia I P: 404-371-2639 F: 404-371-2055 www.dekalbcountyga.gov

P-Card Review BOC Exit Conference

Cardholder's Manager or Director to ascertain compliance with the policy guidelines. Comment - Paperless The Auditee expressed their preference to curtail the volume of paper files and documents in their office. Internal Audit suggested that all documents be scanned and filed into an electronic folder by year and month. Electronic record storage reduces paper and printer inkItoner expenses, improves organization of records, improves accessibility of files/records, and assist with compliance to the P-Card policy guidelines.

~ __ !JOC- District _6~Complied ~th _P-Card Policy 8G _Pr()~!ll:.~s ~ .DOC- District 7 - Complied with P-Card Policy & Procedures
Comment

During our review we observed a Verizon Wireless charge of$150.00 for service on an unissued County wireless device. The County has a wireless contract with Sprint for all County issued wireless phones. Office of BOC-District 7 staff mentioned that the new employee received a County- issued phone but still received County business-related calls on their non-County wireless device. Prepurchase authorization was obtained from the Purchasing & Contracting Department for the charge.
~ Chief of Staff to the BOC - Did not comply Deficiency

-1) Out of 57 transactions, 30 receipts were available. 2) The Manger/Director is theCardholder, Therefore, the Manager/Director .approved.theirTransaction Logs (Logs). Adequate documentation ensures that expenditures incurred are in compliance with the P-Card policy. 2) To ensure management's review for compliance with the P-Card policy, completed Logs are to be reviewed and approved by the Cardholder's Manager or Director. Cardholders should not approve their Logs. Approvers should be higher-level employees than the Cardholder employee; this allows the approver to challenge transactions when the business purpose is not readily apparent.
." County Clerk of CEO & BOC - Did not fully comply Defic:ienc:y The Transaction logs (Logs) were not completed or maintained. Recommendations 1) All P-Card transactions should have supporting documentation

1300

Commerce Drive 14th Floor I Decatur, Georgia I P: 404-371.2639 F: 404-371-2055 . www,dekalbcounlJga.gov

P-Card Review BOC Exit Conference
Recommendation Per P-Card policy, Logs are to be completed and maintained monthly by the Cardholder for all P-Card transactions; the Log provides an explanation for the purchase. Monthly reconcilement of the Log against the electronic statement should be performed to ensure that authorized purchases are approved, unauthorized charges are corrected, and charges are posted to the appropriate general ledger account. Upon completion., Logs are to be reviewed and approved by the Cardholder's Manager or Director to ascertain compliance with the policy guidelines. Comments During our review we observed that several vendors included sales tax on twenty (20) receipts.- 'Fotal-estimated-sales-tax paid was $285.00. In-oroetto takeaovanI:ageof DeKalb County tax-exempt status, cardholders should present their certificate of exemption to the vendor. We also observed the following P-Card transactions: 1) A television was purchased for $839.96 to replace office furniture sold to a previous term County employee. Although office equipment/furniture is acceptable when necessary for business-related purposes, staff should utilize the "Countywide agreements for goods and services" when purchasing these types of commodities. All purchases made for office equipment/furniture except computers & printers must be procured through the County's Purchasing & Contracting Department. Facilities Management informed us that the Purchasing Director will notify a Purchasing Buyer to coordinate with the office equipment/furniture vendor on behalf of the user department. 2) During our review, we observed eight (8) purchases of cake from A Piece of Cake Bakery totaling $499.74. Five of the eight transactions were made on County Commission meeting days. Using the P-Card to purchase cake should be discouraged; these types of transactions are uneconomical. Also, for the audit period, food purchases totaled of$3,520. 75. These purchases were for the benefit of County employee(s) during regular BOC staff meetings of the Clerk's Office and Central Staff members. The P-Card policy does not provide an explanation of non-business related items. The purchase of food for department staff meetings may be perceived as a personal convenience for employees. Purchasing and Contracting should establish P-Card program guidelines to clearly define inappropriate usage of the P-Card. These guidelines should provide a list of prohibited expenditures that cardholders should not purchase. This will ensure proper utilization and program management for P-Card holders.

IV. ADDITIONAL REMARKS FROM AUDITEE

v.

MEETING IS ADJOURNED
1300 Commerce Drive 14th Floor I Decatur, Georgia I P: 404-371-2639 F: 404-371-2055 www.dekalbcountyga.gov

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RECEIVED

.MEMORANDUM

APR 0 7 201.j rJ/~l.." .

~"
_!l?

Cl.ERKS OFFICE

..

April 7, 2014

TO:

Gwen Brown-Patterson, DeKalb County GA

Chief Financial

Officer,

Cornelia Louis, Deputy Director, Internal Audit & Licensing, DeKalb County GA

cc:

Unhappy Taxpayer & Voter, Restore DeKalb, Thomas Mitchell Owens, Joe Newton and All Appropriate Parties Viola Davis Open Records Request for copies of signed acknowledgment statements and any other documents that verify that DeKalb County Commissioners, who have held Commission Seats during the period 2009 through 2014, have been notified of the misuse, if any, of their DeKalb County Government issued P-Cards; have been counseled on misuse, and have signed acknowledgement statements regarding same.

FROM: RE:

NOTIFICATION

AND

COUNSELING

ACKNOWLEDGEMENT

STATEMENTS

OF COMMISSIONERS THAT HAVE MISUSED PERIOD 2009 THROUGH 2014.

P-CARDS DURING THE

Pursuant to the Georgia Open Records Law (O.C.G.A. 5018-70 et seq.) (the Law) and/or Freedom of Information Act, you are hereby requested to make available for review and copying: all files, records, and other documents in your possession for the time period 2009 through 2014 that refer to or relate to the information concerning this request for review and copies of the files and records of the counseling acknowledgement
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statements that verify Commissioners were counseled on the use and misuse of DeKalb County Government issued P-Cards, to include copies of Commissioner signature documents that acknowledge they received such counseling. We need the counseling report on deficiencies by Internal Audit & Licensing Department that are signed by the commissioners. It is important to increase transparency, ethics, and accountability in DeKalb County Government. Since Commissioner Elaine Boyer has claimed that she was not aware of doing anything wrong, we must search for documentation to verify if her statement is in fact true.

Crosswords Newspaper article: "Boyer Uses County Card For $12,000 In Personal Expenses" by Ken Watts (3/28/2014), reported the following quotes from Commissioner Elaine Boyer: • "It never dawned on me that what I was doing was wrong."

The Atlanta Journal-Constitution article: "DeKalb official spent county funds on herself" by Johnny Edwards (3/22/2014), reported the following quotes from Commissioner Elaine Boyer: • "I was never informed that what I was doing was ln violation of any county policy"

It is paramount that we increase "Public Trust" in DeKalb County. We must hold our elected officials accountable if they knowingly lie or misrepresent the truth to the public.

2

If this request is denied in whole or In part, we ask that you cite in writing the specific statutory exemption upon which you have relied, as required by law. We also ask that you release all separate

portions of otherwise exempt material.

Please waive

any costs associated with this request, or first inform us about such costs as required by Georgia Law.

As you know, the Law requires three business

a response by you within

days of your receipt of this Open sanctions for nonfrom you. We

Records Request and provides compliance.

I look forward to hearing

can be reached at 770-256-0034 UnhappyTaxpayers@gmail.com.

or via email at

Sincerely,

Viola Davis Community Missionary

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