DeKalb County Commissioners Internal Audit of P-Card Transactions for Period December 1,2010 through May 31, 2011

By Viola Davis Unhappy Taxpayer and Voter.com

Internal Audit & Licensing
Cornelia Louis Acting Deputy Director of Finance

Chief' Executive Officer
W ..Burrell Ellis. Jr.

Board of Commissioners
District I Elaine Boyer District 2 Jeff Rader

DATE:

November

15,20] 1

District 3
Larry Johnson

TO:
FROM: SUBJECT: RE:

Kelvin Walton, Director of Purchasing & Contracting Acting Deputy Director of Finance, Internal Audit & Licensing Purchasing Card (P-Card) Audit Office of Board of Commissioner

District 4 Sharon Barnell Sutton District 5 Lee May District 6 Kathie Gannon

(BOC) - District 1

District 7 Stan Watson

General Information
On November 15th, 2011 Internal Audit (1A) conducted a P-Card compliance audit of the Office of BOC -District 1. Internal Audit reviewed P-Card transactions for the period December 1, 2010 through May 31, 2011.

Purpose and Scope
The purpose of this audit was to determine if the Office of BOC- District 1 complied with DeKalb County P-Card policies and procedures. We reviewed cardholder transactions, signoff reports, purchase comments and invoices to determine that: (1) The P-Card Administrator maintained the transaction log on a monthly basis. (2) The cardholder attached applicable receipts to the monthly transaction log. (3) Transactions were appropriate for the department's business. (4) Individual transactions did not exceed the amount specified by County P-Card policies and procedures ($1,000 maximum per individual purchase). (5) Total monthly transactions did not exceed amount specified by the County P-Card policies and procedures ($2,000 maximum per month). (6) Cardholders were not using the P-Card (or non-business related goods and services. (7) The transactions were approved. (Manager and/or Department Head)

Opinion
In our opinion, Office ofBOC-District procedures. 1 did not comply with DeKalb County P-Card policies and

Deficiencies
1) 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.

BOC-District 1 P-Card Review Page 2

Recommendations
1) All P-Card transactions should have supporting documentation. Adequate documentation ensures that expenditures incurred are in compliance with the P-Card policy. 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-Card audit report, dated April 2, 2010.

Comment
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.

Ob'edCode
531101

Please feel free to contact me if you have any questions or concerns relating to this audit report.

~d::S
Cornelia Louis

CLlAW
ec: Riehard Stogner, Chief Operating Officer / Executive Assistant Joel Gottlieb, Chief Financial Officer Commissioner Elaine Boyer, District 1 Dale Dague, Purchasing Card Administrator

1300 Commerce Drive 14th Floor I Decatur, Georgia

I P; 404-371.2639

F: 404-371,2055

www.dekalbcountyga.gov

Internal Audit & Licensing
Cornelia Louis Acting Deputy Director of Finance

Chief Executive Officer
W. Burrell Ellis. Jr.

Board 01'Commissioners
District I

Elaine Boyer

District 2

DATE: TO: FROM: SUBJECT: RE:

October 24,2011 Kelvin Walton, Director of Purchasing & Contracting

Jeff Rader
District 3

laITY Johnson
District 4 Sharon Barnes Sutton Distrlct S

Acting Deputy Director of Finance, Internal Audit & Licensing Purchasing Card (p-Card) Audit Office of Board of Commissioner

Lee YfJJ.y
District (j

(BOC) - District 2

Kathie Gannon
District 7 Stan Watson

General Information
On October 24th, 2011 Internal Audit (IA) conducted a P-Card compliance audit of the Office of BOC -District 2. Internal Audit reviewed P-Card transactions for the period December I, 2010 through May 31, 2011.

Purpose and Scope
The purpose of this audit was to determine if the Office of BOC- District 2 complied with DeKalb County P-Card policies and procedures. We reviewed cardholder transactions, signoff reports, purchase comments and invoices to determine that: (1) The P-Card Administrator maintained the transaction log on a monthly basis. (2) The cardholder attached applicable receipts to the monthly transaction log. (3) Transactions were appropriate for the department's business. (4) Individual transactions did not exceed the amount specified by County P-Card policies and procedures ($1,000 maximum per individual purchase). (5) Total monthly transactions did not exceed amount specified by the County P-Card . policies and procedures ($2,000 maximum per month). (6) Cardholders were not using the P-Card for non-business related goods and services. (7) The transactions were approved. (Manager and/or Department Head)

Opinion
In our opinion, Office of BOC-District procedures, for the most part. 2 complied with DeKalb County P-Card policies and

Comment
During our review we observed that the vendor included sales taxes on three receipts. In order to take advantage of DeKalb 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

BOC-District 2 P-Card Review

Page 2
Safety Divisions' holiday luncheon. Although. the P-Card policy does not specifically address the purchase of such items, using the P-Card to purchase cake and flowers should be discouraged. These types of transactions can be perceived as non-business or personal items.

Please feel free to contact me if you have any questions or concerns relating to this audit report.

!L,k?d!5
Cornelia Louis CUAW cc: Richard Stogner, Chief Operating Officer I Executive Assistant Joel Gottlieb, Chief Financial Officer Commissioner Jeff Radar, District 2 Dale Dague, Purchasing Card Administrator

1300 Commerce Drive 14th Floor IDecatur, Georgia IP: 4()4·371-2639 F: 404-371.2055 www.dekaJbcountyga.gov

Internal Audit & Licensing
Cornelia Louis Acting Deputy Director of Finance
Chief Executive omcer w. Burrell Bllis, Board
lr.

Or Commissioners
District 1
Elaine Boyer District 2 Jeff Rader District 3

DATE: TO: FROM: SUBJECT: RE:

October 12, 20Il Kelvin Walton, Director of Purchasing & Contracting Acting Deputy Director of Finance, Internal Audit & Licensing Purchasing Card (P-Card) Audit Office of Board of Commissioner (BOC) - District 3

Larry Johnson

District 4

Sharon Barnes Sutton
District 5 Lee May District 6

Kathie Gannon
District 7

General Information On October iz", 2011 Internal Audit CIA)conducted a P-Card compliance audit of the Office of BOC -District 3. Internal Audit reviewed P-Card transactions for the period December 1,2010 through May 31, 2011. Purpose and Scope The purpose of this audit was to determine if the Office of BOC- District 3 complied with DeKalb County P-Card policies and procedures. We reviewed cardholder transactions, signoff reports, purcbase comments and invoices to determine that: (1) The P-Card Administrator maintained the transaction log on a monthly basis. (2) The cardholder attached applicable receipts to the monthly transaction log. (3) Transactions were appropriate for the department's business. (4) Individual transactions did not exceed the amount specified by County P-Card policies and procedures ($1,000 maximum per individual purchase). (5) Total monthly transactions did not exceed amount specified by the County P-Card policies and procedures ($2,000 maximum per month). (6) Cardholders were not using the P-Card for non-business related goods and services. (7) The transactions were approved. (Manager and/or Department Head) Opinion In our opinion, Office of BOC-District 3 complied with DeKalb County P-Card policies and procedures. Comment In the last Office of BOC-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.

Stan Watson

BOC- District 3
P-Card Review Page 2 Please feel free to contact me if you have any questions or concerns relating to this audit report.

Cornelia Louis

/L£2JiS
Richard Stogner, Chief Operating Officer / Executive Assistant

CUAW
cc:

Joel Gottlieb, Chief Financial Officer
Commissioner Larry Johnson, District 3 Dale Dague, Purchasing Card Administrator

1300 Commerce

Drive 14th

Floor IDecatur, Georgia I P: 404-371·2639 F: 404-371-2055
www.dckalhcountyga.gov

Internal Audit & Licensing
Cornelia Louis of Finance

Chief Executive Officer
W. Burrell Ellis, Jr.

Acting Deputy Director

Board of Commissioners
Distnct l
Elaine Boyer

District 2

DATE: TO: FROM: SUBJECT: RE:

October 12, 20 II Kelvin Walton, Director of Purchasing

JclTRadcr District 3 Larry Johnson District 4 Sharon Barnes Sutton District 5 Lee May District 6 Kathie Gannon District? Stan Watson

& Contracting

Acting Deputy Director of Finance, Internal Audit & Licensing Purchasing Card (P-Card) Audit Board of Commissioners (BOC) District 4

General Information 11I On October 6 , Internal Audit (IA) conducted a P-Card compliance audit on the Office of BOC-District Internal Audit reviewed P-Card transactions for the period December 1, 2010 through May 31,2011.

4.

Purpose and Scope The purpose of this audit was Card policies and procedures.

to determine

the Office of BOC- District 4 complied with DeKalb County P-

We reviewed cardholder transactions, signoff reports, purchase comments and invoices to determine that: (1) The P-Card Administrator maintained the transaction log on a monthly basis. (2) The cardbolder attached applicable receipts to the monthly transaction log. (3) Transactions were appropriate for the department's business. (4) Individual transactions did not exceed the amount specified by County P-Card policies and procedures ($1,000 maximum per individual purchase). (5) Total monthly transactions did not exceed amount specified by the County P-Card policies and procedures ($2,000 maximum per month). (6) Cardholders were not using the P-Card for non-business related goods and services. (7) The transactions were approved. (Manager and/or Department Head) Opinion In our opinion. the Office of BOC-District procedures.

4 did not comply with DeKalb County P-Card policies and

Deficiencies 1) Out of 49 transactions, 9 receipts were available. 2) The Transaction logs (Logs) were not completed or maintained.

Recommendations
1) All P-Card transactions should have supporting documentation. Adequate documentation ensures that expenditures incurred are incompliance 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.

Boe - District 4
P-Card Audit Page 2

Comments
We reviewed the corresponding general ledger accounts for each transaction. Severa) 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 523506

Object Code Name Travel-Airfare Travel-Accommodations I Hotel Travel-Miscellaneous

Please feel free to contact me if you have any questions or concerns relating to this audit report.

Cornelia Louis

CUAW
cc: Richard Stogner, Chief Operating Officer I Executive Assistant

Joel Gottlieb. Chief Financial Officer Commissioner Sharon Barnes-Sutton, District 4 Dale Dague. Purchasing Card Administrator

1300 Commerce Drive! 4th Floor I Decatur, Georgia I P: 404-371-2639 F: 404-371-2055 www.dekalbcounrygagov

Internal Audit & Licensing
Cornelia Louis
Acting Deputy Director of Finance

Chief Executive Ol'ficer
W. Burrell Ellis, Jr.

Board of Commissioners
District 1

Elaine Boyer

DATE: TO: FROM: SUBJECT: RE:

October 6, 2011 Kelvin Walton. Director of Purchasing & Contracting

Disuict2 Jeff Rader District 3 Larry Johnson District 4 Sharon Barnes Sutton District 5 Lee May District 6 Kathie Gannon District 7 Stan Watson

Acting Deputy Director of Finance, Internal Audit & Licensing Purchasing Card (P-Card) Audit Board of Commissioner (BOC) - District 5

General Information
On October 6,2011, Internal Audit (IA) conducted a P-Card compliance audit on the Office of BOCDistrict 5. Internal Audit reviewed P-Card transactions for the period December 1, 2010 through May 31, 2011.

Purpose and Scope
The purpose of this audit was to determine if the Office of BOC-District P-Card policies and procedures. 5 complied with DeKalb County

We reviewed cardholder transactions, signoff reports, purchase comments and invoices to determine that: (1) The P-Card Administrator ma.intained the transaction Jog on a monthly basis. (2) The cardholder attached applicable receipts to the monthly transaction log. (3) Transactions were appropriate for the department's business. (4) Individual transactions did not exceed the amount specified by County P-Card policies and procedures ($1,000 maximum per individual purchase). (5) Total monthly transactions did not exceed amount specified by the County P-Card policies and procedures ($2,000 maximum per month). (6) Cardholders were not using the P-Card for non-business related goods and services. (7) The transactions were approved. (Manager and/or Department Head)

Opinion
In our opinion, the Office of BOC-District procedures. 5 did not comply with DeKalb County P-Card policies and

Deficiency
1) Out of 45 transactions. 4 receipts were available. 2) Transaction Logs (Logs) were not completed or maintained.

Recommendation
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, Logs are to be completed and maintained monthly by the Cardholder for all PCard 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 arc posted to the appropriate general account. Upon completion. Logs are to be reviewed and approved by the Cardholder's Manager or Director to ascertain compliance with the policy guidelines.

BOC - District 5 P-Card Audit

Page 2

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.

Please feel free to contact me if you have any questions or concerns relating to this audit report.

Cornelia Louis

CUAW
cc: Richard Stogner. Chief Operating Officer I Executive Assistant Joel Gottlieb, Chief Financial Officer Commissioner Lee May, District 5 Dale Dague, Purchasing Card Administrator

BOO Commerce Drive 14th Floor IDecatur, Georgia IP: 404-371·2639 F: 404·371·2055 www.dekalbcountyga.gov

Internal Audit & Licensing
Cornelia Louis Acting Deputy Director of Finance
Chief Executive Officer
W. Burrell Ellis. Jr.

Board of Commissioners
District I Elaine Boyer

DATE: TO: FROM: SUBJECT:
RE:

October 6, 2011 Kelvin Walton, Director of Purchasing & Contracting Acting Deputy Director of Finance, Internal Audit & Licensing Purchasing Card (P-Card) Audit Office of Board of Commissioner (BOC) - District 6

District 2 Jeff Rader District 3 Larry Johnson Districl4 Sharon Barnes Sunon
District 5

Lee May District 6 Kathie Gannon District 7 Stan Watson

Generallnfonnation On October 6th, 2011 Internal Audit (lA) conducted a P-Card compliance audit of the Office of BOC District 6. Internal Audit reviewed P-Card transactions for the period December 1,2010 through May 31, 2011. Purpose and Scope The purpose of this audit was to determine if the Office of BOC- District 6 complied with DeKalb County P-Card policies and procedures. We reviewed cardholder transactions, signoff reports, purchase comments and invoices to determine that: (I) The P-Card Administrator maintained the transaction log on a monthly basis. (2) The cardholder attached applicable receipts to the monthly transaction log. (3) Transactions were appropriate for the department's business. (4) Individual transactions did not exceed the amount specified by County P-Card policies and procedures ($1,000 maximum per individual purchase). (5) Total monthly transactions did not exceed amount specified by the County P-Card policies and procedures ($2,000 maximum per month). (6) Cardholders were not using the P-Card for non-business related goods and services. (7) The transactions were approved. (Manager and/or Department Head) Opinion In our opinion, Office of BOC-District 6 complied with DeKaJb County P-Card policies and procedures. Please feel free to contact me if you have any questions or concerns relating to this audit report.

~;)~
Cornelia Louis

CUAW
cc: Richard Stogner, Chief Operating Officer I Executive Assistant Joel Gottlieb, Chief Financial Officer Commissioner Kathie Gannon, District 6 DaJe Dague, Purchasing Card Administrator
1300 Commerce Drive 14th Floor I Decatur. Georgia

I P: 404-371-2639

F: 404-37l-2055

www.dckalbcountyga.gov

Internal Audit & Licensing
Cornelia louis Acting Deputy Director of Finance

Chief Executi-..'e Officer

W. Burrell Ellis, k

Board of Commissioners
Disui(;t 1 Elaine Boyer District 2

DATE: TO: FROM: SUBJECT: RE:

October 6, 2011 Kelvin Walton, Director of Purchasing & Contracting Acting Deputy Director of Finance, Internal Audit & Licensing Purchasing Card (P-Card) Audit Board of Commissioners (BOC) District 7

Jeff Rader

District 3 Larry Johnson District 4 Sharon Barnes Sutton District 5 LecMay District 6 Kathie Gannon District 7 Stan Watson

On October 6th, Internal Audit (IA) conducted a P-Card compliance audit on the Office of BOCDistrict 7. Internal Audit reviewed P-Card transactions for the period December 1,2010 through May 31,2011.
Purpose and Scope

General Information

The purpose of this audit was to determine the Office of BOC- District 7 complied with DeKalb County P-Card policies and procedures. We reviewed cardholder transactions, signoff reports, purchase comments and invoices to determine that: (J) The P-Card Administrator maintained the transaction log on a monthly basis. (2) The cardholder attached applicable receipts to the monthly transaction log. (3) Transactions were appropriate for the department's business. (4) Individual transactions did not exceed the amount specified by County P-Card policies and procedures ($1,000 maximum per individual purchase). (5) Total monthly transactions did not exceed amount specified by the County P-Card policies and procedures ($2,000 maximum per month). (6) Cardholders were not using the P-Card for non-business related goods and services. (7) The transactions were approved. (Manager and/or Department Head)
Opinion

In our opinion, the Office of BOC-District 7 complied with DeKalb County P-Card policies and 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 BOe-District 7 staff mentioned that the new employee received a

BOC - District 7 P-Card Audit Page 2

County issued phone but still received County business-related calls on their non-County wireless device. Pre-purchase authorization was obtained from the Purchasing & Contracting Department for the charge. Please feel free to contact me

if you have any questions or concerns relating to this audit report.

!l£;~
Cornelia Louis CUAW cc: Richard Stogner, Chief Operating Officer I Executive Assistant Joel Gottlieb, Chief Financial Officer Commissioner Stan Watson, District 7 Dale Dague, Purchasing Card Administrator

1300 Commerce Drive 14th Floor IDecatur. Georgia IP: 404-371-2639 F: 404-371-205; www.dckalbcountyga.gov

Sign up to vote on this title
UsefulNot useful