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Purchase Card Their Use and Control
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Function, Project, Program, Organization, Activity:

Purchase Cards: Their Use and Control

Reason(s) Why Audit Is Needed:

The purchase card program has not been audited since its inception in 1999. According to University records, the Materials Management Department has issued approximately 300 purchasing cards to University individuals and departments. During FY 2001, hundreds of thousands of dollars worth of services and products were purchased using the cards. University policies provide the guidance on what can be purchased with the cards and, just as important, the policy describes what cannot be purchased with the cards. The University's policy requires supervisory approval of all purchases and a monthly reconciliation of purchases to credit card statements. Card owners are responsible for certifying that purchases were appropriate, allowable, and for University business.

The policy also calls for a periodic internal audit of the purchase card program. The Materials Management Department administers the program for the University.

Audit Objectives:

The audit will review selected departments' adherence, i.e., compliance, to the University's promulgated purchase card policies and procedures. Our primary interest will be to determine that purchases were appropriate and allowable, i.e., complied with University policy. Another audit objective is to determine that departments are performing adequate monthly reconciliations.

Priority: High


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