Time to make sure our Credit Card policy is working as it should.

After the recent media interest, it is time to make sure our Credit Card policy is working as it should. This is the recommendation of our Audit & Governance Committee.

As I indicated in my first blog on this topic, Unley has a written policy on the use of credit cards.

It is not however a Credit Card policy. Accordingly, it is the Corporate Purchase Card Policy.

First of all, we only issue credit cards to officers who regularly minor purchases. Most of all, elected members aren’t. 

We introduced the use of corporate credit cards in 2013. We did this in response the growing on-line supply market and to business demand for an efficient procurement options at local stores. Due also, to transacting with stores that do not offer business accounts.

Credit cards are a low cost and efficient procurement option for low value, low risk purchases. Consequently, the use of credit cards has resulted in a decrease in the use of petty cash, which is a less transparent process.

.

As at the 30 June 2017, Council had issued 30 cards to employees, and their use last financial year was about 2% of total expenditure.

The review will assess the following:

  • the operational business need for credit cards.
  • the level of cards issued.
  • current policies and procedures.
  • record keeping practices.
  • appropriateness of expenditure incurred.
  • level of internal controls required.

The review will therefore identify improvement opportunities in use, policies, systems, reporting and supply management. 

In addition to this review, mandatory educational sessions will be held for for staff to re-educate them about appropriate use and their obligations as cardholders. 

The internal audit report will be presented to the next meeting in May 2018 of the Audit & Governance Committee.

CONCLUSION

The aim of the audit of our Credit Card policy will be to provide a clear picture of areas for improvement, process controls, access to policies and the use of reporting tools to continually review and monitor use.