internal audit of p-card transactions for the period december 1, 2010 through may 31, 2011:

DeKalb County Commissioners InternalAudit of P-CardTransactions for PeriodDecember 1,2010 through May 31, 2011

By Viola DavisUnhappy Taxpayer and Voter.com

DATE:

TO:

FROM:

SUBJECT:RE:

Internal Audit & LicensingCornelia LouisActing Deputy Director of Finance

Chief' Executive Officer

W ..Burrell Ellis. Jr.

Board of Commissioners

District IElaine Boyer

District 2Jeff Rader

November 15,20] 1 District 3Larry Johnson

District 4Sharon Barnell Sutton

Kelvin Walton, Director of Purchasing & Contracting

Acting Deputy Director of Finance, Internal Audit & Licensing District 5Lee May

Purchasing Card (P-Card) AuditOffice of Board of Commissioner (BOC) - District 1

District 6Kathie Gannon

District 7Stan Watson

General InformationOn November 15th

, 2011 Internal Audit (1A) conducted a P-Card compliance audit of the Office ofBOC -District 1. Internal Audit reviewed P-Card transactions for the period December 1, 2010through May 31, 2011.

Purpose and ScopeThe purpose of this audit was to determine if the Office of BOC- District 1 complied with DeKalbCounty P-Card policies and procedures.

We reviewed cardholder transactions, signoff reports, purchase comments and invoices todetermine 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)

OpinionIn our opinion, Office ofBOC-District 1 did not comply with DeKalb County P-Card policies andprocedures.

Deficiencies1) 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 1P-Card Review

Page 2

Recommendations1) 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 shouldnot approve their Logs. Approvers should be higher-level employees than the Cardholderemployee; this allows the approver to challenge transactions when the business purpose isnot readily apparent.

3) All P-Card transactions should be limited to business-related goods and services, andefforts should be made to reduce the frequent use of the P-Card at restaurants. This wasalso mentioned in our last P-Card audit report, dated April 2, 2010.

CommentWe reviewed the corresponding general ledger accounts for each transaction. Several operatingsupply related expenditures were charged to "other miscellaneous charges." These transactionscould be misclassified. The following general ledger account may be more appropriate for thetransaction type.

Ob'edCode531101

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

~d::SCornelia Louis

CLlAW

ec: Riehard Stogner, Chief Operating Officer / Executive AssistantJoel Gottlieb, Chief Financial OfficerCommissioner Elaine Boyer, District 1Dale Dague, Purchasing Card Administrator

1300 Commerce Drive 14th Floor IDecatur, Georgia IP; 404-371.2639 F: 404-371,2055www.dekalbcountyga.gov


Chief Executive OfficerW. Burrell Ellis. Jr.

Board 01'Commissioners

DATE: October 24,2011

TO: Kelvin Walton, Director of Purchasing & Contracting

FROM: Acting Deputy Director of Finance, Internal Audit & Licensing

SUBJECT:RE:

Purchasing Card (p-Card) AuditOffice of Board of Commissioner (BOC) - District 2

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

Purpose and ScopeThe purpose of this audit was to determine if the Office of BOC- District 2 complied withDeKalb County P-Card policies and procedures.


(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)

OpinionIn our opinion, Office of BOC-District 2 complied with DeKalb County P-Card policies andprocedures, for the most part.

CommentDuring our review we observed that the vendor included sales taxes on three receipts. In order totake advantage of DeKalb County tax-exempt status, cardholders should present their certificateof exemption to the vendor.

We also observed that $51.31 was paid for flowers sent to a non-county employee during theirhospitalization. Also, $36.92 was paid for a cake donated to one of DeKalb County Public

District IElaine Boyer


District 3laITY Johnson

District 4Sharon Barnes Sutton

Distrlct SLee YfJJ.y

District (jKathie Gannon


•

BOC-District 2P-Card Review

Page 2

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


!L,k?d!5Cornelia Louis

CUAW

cc: Richard Stogner, Chief Operating Officer I Executive AssistantJoel Gottlieb, Chief Financial OfficerCommissioner Jeff Radar, District 2Dale Dague, Purchasing Card Administrator

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


Chief Executive omcerw. Burrell Bllis, lr.

Board Or Commissioners

District 1Elaine Boyer

DATE: October 12, 20IlDistrict 2

Jeff Rader

TO: Kelvin Walton, Director of Purchasing & ContractingDistrict 3

Larry Johnson

FROM: Acting Deputy Director of Finance, Internal Audit & LicensingDistrict 4

Sharon Barnes Sutton

District 5Lee May

SUBJECT:RE:



General InformationOn October iz", 2011 Internal Audit CIA)conducted a P-Card compliance audit of the Office ofBOC -District 3. Internal Audit reviewed P-Card transactions for the period December 1,2010through May 31, 2011.


Purpose and ScopeThe purpose of this audit was to determine if the Office of BOC- District 3 complied withDeKalb County P-Card policies and procedures.

We reviewed cardholder transactions, signoff reports, purcbase comments and invoices todetermine 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


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)

OpinionIn our opinion, Office of BOC-District 3 complied with DeKalb County P-Card policies andprocedures.

CommentIn the last Office of BOC-District 3 P-Card Audit report, dated April 2, 2010, Internal Auditnoted several deficiencies. Internal Audit commends the Office of BOC-District 3 for theirimprovement in adhering to the P-Card policies and guidelines.

BOC- District 3P-Card Review

Page 2


/L£2JiSCornelia Louis

CUAW

cc: Richard Stogner, Chief Operating Officer / Executive AssistantJoel Gottlieb, Chief Financial OfficerCommissioner Larry Johnson, District 3Dale Dague, Purchasing Card Administrator

1300 Commerce Drive 14th Floor IDecatur, Georgia IP: 404-371·2639 F: 404-371-2055www.dckalhcountyga.gov


Chief Executive Officer

W. Burrell Ellis, Jr.

Board of CommissionersDistnct l

Elaine Boyer

DATE: October 12, 20 IIDistrict 2

JclTRadcr


Larry Johnson



SUBJECT:RE:

Purchasing Card (P-Card) AuditBoard of Commissioners (BOC) District 4

District 5Lee May


General InformationOn October 611I

, Internal Audit (IA) conducted a P-Card compliance audit on the Office of BOC-District 4.Internal Audit reviewed P-Card transactions for the period December 1, 2010 through May 31,2011.

District?Stan Watson

Purpose and ScopeThe purpose of this audit was to determine the Office of BOC- District 4 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 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)

OpinionIn our opinion. the Office of BOC-District 4 did not comply with DeKalb County P-Card policies andprocedures.

Deficiencies1) Out of 49 transactions, 9 receipts were available.2) The Transaction logs (Logs) were not completed or maintained.

Recommendations1) 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 4P-Card Audit

Page 2

CommentsWe reviewed the corresponding general ledger accounts for each transaction. Severa) transactions werecharged to "operating supplies"; they were travel-related expenditures. These transactions aremisclassified. Future travel-related transactions can be charged to the following general ledger accountobject codes.

Object Codes Object Code Name523502 Travel-Airfare523504 Travel-Accommodations I Hotel523506 Travel-Miscellaneous


Cornelia Louis

CUAW

cc: Richard Stogner, Chief Operating Officer I Executive AssistantJoel Gottlieb. Chief Financial OfficerCommissioner Sharon Barnes-Sutton, District 4Dale Dague. Purchasing Card Administrator

1300 Commerce Drive! 4th Floor IDecatur, Georgia IP: 404-371-2639 F: 404-371-2055www.dekalbcounrygagov


Chief Executive Ol'ficer

W. Burrell Ellis, Jr.


DATE: October 6, 2011

TO: Kelvin Walton. Director of Purchasing & Contracting

FROM: Acting Deputy Director of Finance, Internal Audit & Licensing

SUBJECT:RE:

Purchasing Card (P-Card) AuditBoard of Commissioner (BOC) - District 5

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

Purpose and ScopeThe purpose of this audit was to determine if the Office of BOC-District 5 complied with DeKalb CountyP-Card policies and procedures.

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



OpinionIn our opinion, the Office of BOC-District 5 did not comply with DeKalb County P-Card policies andprocedures.

Deficiency1) Out of 45 transactions. 4 receipts were available.2) Transaction Logs (Logs) were not completed or maintained.

RecommendationI) 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 P-

Card transactions; the Log provides an explanation for the purchase. Monthly reconcilement ofthe Log against the electronic statement should be performed to ensure that authorized purchasesare approved, unauthorized charges are corrected, and charges arc posted to the appropriategeneral account. Upon completion. Logs are to be reviewed and approved by the Cardholder'sManager or Director to ascertain compliance with the policy guidelines.

District 1Elaine Boyer

Disuict2Jeff Rader

District 3Larry Johnson

District 4Sharon Barnes Sutton

District 5Lee May



BOC - District 5P-Card Audit

Page 2

Comment - PaperlessThe 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 andmonth. Electronic record storage reduces paper and printer inkItoner expenses, improves organization ofrecords, improves accessibility of files/records, and assist with compliance to the P-Card policy guidelines.


Cornelia Louis

CUAW

cc: Richard Stogner. Chief Operating Officer I Executive AssistantJoel Gottlieb, Chief Financial OfficerCommissioner Lee May, District 5Dale Dague, Purchasing Card Administrator

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


Chief Executive OfficerW. Burrell Ellis. Jr.

Board of CommissionersDistrict I

Elaine Boyer

DATE: October 6, 2011District 2

Jeff Rader


Larry Johnson

FROM: Acting Deputy Director of Finance, Internal Audit & LicensingDistricl4

Sharon Barnes Sunon

SUBJECT:RE:


District 5Lee May


GenerallnfonnationOn 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 ScopeThe purpose of this audit was to determine if the Office of BOC- District 6 complied with DeKalb CountyP-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



OpinionIn our opinion, Office of BOC-District 6 complied with DeKaJb County P-Card policies and procedures.


~;)~Cornelia Louis

CUAW

cc: Richard Stogner, Chief Operating Officer I Executive AssistantJoel Gottlieb, Chief Financial OfficerCommissioner Kathie Gannon, District 6DaJe Dague, Purchasing Card Administrator

1300 Commerce Drive 14th Floor IDecatur. Georgia IP: 404-371-2639 F: 404-37l-2055www.dckalbcountyga.gov

Internal Audit & LicensingCornelia louisActing Deputy Director of Finance

Chief Executi-..'e Officer

DATE: October 6, 2011

W. Burrell Ellis, k


Disui(;t 1Elaine Boyer



Larry Johnson



District 5LecMay

SUBJECT:RE:

Purchasing Card (P-Card) AuditBoard of Commissioners (BOC) District 7


General InformationOn October 6th, Internal Audit (IA) conducted a P-Card compliance audit on the Office of BOC-District 7. Internal Audit reviewed P-Card transactions for the period December 1,2010 throughMay 31,2011.


Purpose and ScopeThe purpose of this audit was to determine the Office of BOC- District 7 complied with DeKalbCounty P-Card policies and procedures.


(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


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)

OpinionIn our opinion, the Office of BOC-District 7 complied with DeKalb County P-Card policies andprocedures.

CommentDuring our review we observed a Verizon Wireless charge of $150.00 for service on an unissuedCounty wireless device. The County has a wireless contract with Sprint for all County issuedwireless phones. Office of BOe-District 7 staff mentioned that the new employee received a

BOC - District 7P-Card Audit

Page 2

County issued phone but still received County business-related calls on their non-Countywireless device. Pre-purchase authorization was obtained from the Purchasing & ContractingDepartment for the charge.


!l£;~Cornelia Louis

CUAW

cc: Richard Stogner, Chief Operating Officer I Executive AssistantJoel Gottlieb, Chief Financial OfficerCommissioner Stan Watson, District 7Dale Dague, Purchasing Card Administrator

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

internal audit of p-card transactions for the period december 1, 2010 through may 31, 2011:

Documents

pcard transactions

pcard policy

pcard administrator

pcard compliance audit

pcard audit report

dekalbcounty pcard policies

cardholder transactions

individual transactions