[read complete report – pdf]

Audit Objective 

Determine whether the Main-Transit Fire Department (Department) officials’ credit card purchases were supported and for proper Department purposes. 

Key Findings 

Of the credit card purchases totaling $216,961 that we examined, purchases totaling $70,042 were not adequately supported, and $62,903 in discretionary purchases did not follow any specific guidelines. 

• Although the Board approved the credit card bills for payment, it did not ensure that the related voucher packets had adequate supporting documentation to confirm the expenses were appropriate. As a result, 273 purchases were missing invoices or receipts. For example, a credit card statement had three automatic payment transactions totaling $1,125 for cable Internet service, cell phone services and car washes. However, the cardholder did not provide invoices or receipts for these transactions. 
• The Board did not establish written policies or procedures to clarify the types of discretionary spending (meals, entertainment or gifts) that was appropriate. As a result, 353 purchases may not have been for proper Department purposes. For example, two gift cards totaling $1,200 and a smart watch for $350 were purchased as gifts. No invoice or receipt was provided to support the purchases, and there was no evidence to indicate that the Board approved the specific purchases before they were made. 

Recommendations 

The audit report includes five recommendations that, if implemented, will improve the Department’s credit card practices. Department 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 Department’s response.