Fillmore Central School has agreed to tighten up its credit card use procedures after the State Comptroller’s office found one or more exceptions to every one of 230 credit card charges which “could have led to potentially inappropriate card use.”
In a use audit released today, the state watchdog found that although $40,000 in credit card purchases were for appropriate District purposes, charges were not properly approved or adequately supported.
Among exceptions to purchases which the Comptroller reported:
— Approximately $38,000 in 191 total charges were not properly approved prior to the card being used.
— Some $12,000 in charges, involving 72 purchases, failed to have adequate support, such as receipts, to show what was purchased. Auditors ultimately were able to verify that items were for an appropriate district purpose.
— In some $8,000 of purchases, involving five situations, a credit or purchase card should not have been used, in accordance with District policy already in place, because the vendors accept purchase orders.
— The district paid $370 in sales tax on exempt purchases.
— The District could have saved approximately $1,800 on 19 hotel charges if officials had requested and used the General Services Administrative (GSA) daily lodging rates instead of the charges offered by the lodging facilities.
— Auditors identified 55 missed opportunities on the District’s part to save money in its use of cards.
Proper use of credit cards
The State Comptroller noted that credit and purchase cards should only be used when a vendor won’t accept any other form of payment, something which already is part of school district policy.
The office provided nine recommendations, two for the school board and seven for the business manager, to address the noted deficiencies.
The district, in a written response to a draft copy of the audit, agreed with the Comptroller’s findings and indicated it will take, or has taken, corrective action.
A copy of the full audit report is available at https://bit.ly/3uSlPto.