Auditor Finds Lax Oversight of LA County Employees' Credit Card Use. Los Angeles County employees are using taxpayer-funded credit cards without proper oversight by county administrators, according to a county audit that revealed one employee had racked up $68,700 in unallowable charges. The county has issued 600 credit cards, and annual purchases total $3.4 million. The audit found employees splitting purchases with other cardholders to circumvent purchase limits, and some managers failed to cancel credit cards when the cardholder ceased to work for their department.
Auditors reviewed $4.1 million in purchases from July 2005 through September 2006. In the Department of Public Works, the auditors found $49,500 in purchases that did not comply with county guidelines, including $4,002 spent on 29 fans ($138 per fan) from the Sharper Image.
In the Internal Services Department, managers didn't cancel 64 cards after the cardholders left the department. In the same department, an employee's failure to turn in paperwork regarding a stolen credit card cost the taxpayers $5,200. The charges would have been removed from the county's bill if the paperwork had been submitted to the bank on time.
Sheriff's Department employees used the county credit cards for food, work shoes and travel expenses – violations of the rule that the cards be used only for emergency purchases when other payment options are not available, or to get a discount.
Acting Auditor-Controller Wendy Watanabe said many employees are not aware of the county's policies, and she urged county agencies to "tighten their training policies and set very strict guidelines." (Source: San Gabriel Valley Tribune, June 10.)
Cal-Taxletter June 13, 2008
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