NSW Audit Office - Financial Reports – 2003 - Volume 2 – Compliance Review of Credit Card Usage in

Compliance Review of Credit Card Usage in Universities in New South Wales We reviewed how well the State’s ten universities complied with their policies and procedures for credit card use. This is the third time since 1997 we have reviewed credit card use in NSW government agencies. Our 2001 review included a university and raised some serious concerns about credit card usage. As a result we decided to conduct a review of all universities. Universities extensively use credit cards, with two spending over $15.0 million annually on purchases. KEY FINDINGS What They Were Doing Well The universities as a whole were performing a number of functions well. These included: having a manual of policies and procedures (although, not always comprehensive) controls over opening credit card accounts recording details of cards held assigning an officer to be responsible for card operations following up lost and stolen cards. Where They Can Improve Our review identified the following deficiencies: only four universities have credit limits on all their cards policies and procedures manuals have some deficiencies: one is out of date and does not always reflect current practices two do not instruct users on how to use the cards one does not require monthly reconciliations between university and provider records two universities used credit cards in isolated instances to obtain cash advances. While not considered best practice, the policy of one of the ...