Goal of Audit
The Goal of this Audit is to determine if the program is working as designed and if procedures are being followed.
Time of Audit
All agencies/departments are required to perform a full fiscal year audit under the card program every other year. The audit is to be conducted using the forms provided for the particular audit period and to submit completed forms upon request to the Office of Purchasing and Contracting.
Although it is expected that agencies/departments will self-audit on a regular basis, a full fiscal year audit is conducted every other year.
The audit should also review card usage and the possibility of canceling cards with little or no usage.
- All Purchasing Card receipts should be maintained in the Agencies Business and/or Accounting Office.
Basic Card Procedures
- Approval (proper) by supervisor or Department Liaison for all purchases identified on the Purchasing Card Log as indicated by the Cardholder.
- Receipt on File for Every Purchase.
- No Tax Charged. If yes, was Credit received?
- State Business Only. No Personal Purchases are allowed.
- Single Purchase Limit assigned by Manager is adhered to – No splitting of transactions.
- Appropriate Purchase
- Just because a vendor may not be restricted, it does not mean that it is an acceptable purchase.
- Purchase of non-contract supplies and allowable services with a total value of $3,500.00 or less per transaction. BDA guidelines apply.
- The card is not intended to avoid or bypass appropriate purchasing or payment procedures.
- Shipments to home are not allowed.
The Audit will be conducted in two parts
Part 1 Cardholders
- A random selection of employees by Division will be audited. If the total number of cards issued by a Division is less than 5, all cardholders in that Division will be audited. Otherwise, a minimum of 5 each or 25% of the cards issued to a Division will be audited. Three out of twelve months will be audited for each cardholder.
- Receipts Spot check to see if receipts are on file. If receipts are not present, the responsible employee will have to document purchase and present purchase made.
- Are purchases in line with the employee’s job responsibility?
- Splitting Transactions If more than one purchase was made by an individual on the same day; review timing of purchase, product/service purchased as well as individual card limits for that individual.
- Spot check of items purchased on the card – Where are they?
Part 2 Vendors
- A list of purchases by vendor should be generated to review where the Purchasing Card is being used. Based on the data received, receipts by an individual should be pulled when the question is raised – what would the state need to purchase at this location?
- Once the audit is complete, the documentation should be sent to Deb Damore at the Office of Purchasing and Contracting, 10 Baldwin Street, Montpelier, 05633-7501.
- After review of initial findings, a site visit and or meeting may be set-up with each agency to review findings and internal procedures. An audit report will then be developed. A draft report will be sent to each Agency Administrator for review, changes may be made based on their review.
- Based on the results of the audit, any action or changes in the program will be discussed at that time.