Read the executive summary on this page and download the pdf for the full report.
What we found
The Health Department uses purchase cards (p-cards) for a significant portion of their supplies and training costs. We tested a sample of the Health Department’s p-card activity for fiscal years (FY) 2016 and 2017. We found overall, the Health Department has adequate controls in place over the majority of its p-card activity. However, there is room for improvement.
What we found to be working well:
- Use of centralized purchasing processes.
- Use of the County’s web-based shopping tool, Multco Marketplace (MMP), to facilitate the approval process.
Areas needing improvement:
- Lack of review of monthly bank statements.
- Missing documentation. One cardholder had 64% of their entire support missing for FY2016.
- A few unallowable purchases noted in our sample.
- Lack of segregation of duties for the travel and training purchase process.
Why we did the audit
The Health Department was included on our 2016-17 audit schedule. We chose an initial focus of the Health Department’s p-card activity due to their inherent risk. Further, we focused our attention on cardholders with high expenditure volume as well as other potential high-risk card use.
What we recommend
The Health Department should:
- Immediately address adequate documentation issue with cardholders and responsible mangers/supervisors. Take corrective action as deemed necessary.
- Provide training to staff on allowable purchases and required documentation compliance.
- Review internal processes to ensure adequate and timely reviews are occurring on bank statements and travel & training reconciliation forms.
- Evaluate cardholders that are not part of centralized processes.
- Review processes to ensure they are adequately staffed and have segregation of duties.
- Ensure segregation of duties are appropriate and adequate to mitigate risks.
The Health Department should work with Central Accounts Payable to:
- Revise required documentation for gift cards to prevent duplication of efforts.
- Determine if the current policy of limiting monthly gift card purchases is still necessary.
- Review the County’s administrative procedures to ensure policies are sufficient and clear.