[read complete report - pdf]

Audit Objective

Determine whether College officials adequately monitored credit card and travel expenditures.

Key Findings

• The College could have saved $18,135 on 76 lodging claims by using the United States General Services Administration (GSA) per diem rates.
• A credit card company was allowed to directly withdraw 18 payments totaling approximately $4 million from the College’s bank account prior to audit.
• A travel agent who is not an employee uses their College credit card to automatically charge fees.

Key Recommendations

• Revise the credit card policy to address authorizations, restrictions, safeguards and documentation over use.
• Revise the travel policy to reflect the actual practices used by the College and include maximum reimbursement rates, such as GSA per diem rates, for lodging, meals and mileage.
• Ensure all credit card claims are audited prior to payment and adequately supported.
• Discontinue allowing the credit card company to directly access the College’s bank account to withdraw funds.

College officials disagreed with certain aspects of our findings and recommendations, but indicated they have initiated corrective action. Appendix B includes our comments on issues raised in the College’s response letter.