NSW Audit Office - Financial Reports - 2005 - Volume 5 - Compliance Review Use of Credit Cards

Compliance Review of the Use of Credit Cards The corporate credit card was introduced in the NSW Public Sector in 1987 to be used for official travel. This was extended to the purchase of goods and services in 1988 as it was deemed to be a more efficient method of purchasing large volume, low value and low risk purchases. Since 1999, CEOs of Budget agencies must attest to the Minister, as part of their performance review, that credit card use accords with government policy. These agencies must include this statement in their annual report. We reviewed the policy and practices of 10 agencies to verify compliance with the Treasurer’s Directions. CONCLUSION Our findings suggest that there has been a deterioration in the application of controls over credit card usage since our last review in 2001. Further, a significant number of agency heads did not provide the required certification to their Minister regarding credit card usage. KEY FINDINGS In two of the 10 agencies we reviewed, credit card expenditure was sometimes being incurred prior to approval. In three agencies properly certified documentation was not always available to substantiate credit card purchases nor was the alternative procedure (of providing a signed declaration) followed. Furthermore, in two of those same agencies there were several instances where the credit card statements had not been signed by the card holder (to confirm expenditure) nor by another official (as ...