Purpose of Audit

The purpose of our audit was to review credit card use and purchases for the period January 1, 2015 through December 14, 2016.

Background

The Town of Cheektowaga is located in Erie County and has a population of approximately 88,000. The Town is governed by an elected seven-member Town Board. Budgeted expenditures for 2016 totaled approximately $92.3 million.

Key Findings

• The credit card policy does not identify specific individuals who are authorized to use credit cards, establish credit limits or set purchase restrictions.
• Not all cardholders attached the required purchasing log to their credit card statements when submitting their receipts to the accounting department.
• Board minutes do not contain any evidence to show that the Board audited credit card purchases.

Key Recommendations

• Review credit limits and the assignment of credit cards and establish daily credit limits and purchase restrictions as required by the credit card policy.
• Ensure that cardholders complete purchasing logs and submit them with credit card statements and itemized receipts for all purchases.
• Perform a thorough and deliberate audit of credit card bills and charges prior to payment