Acting state comptroller Kevin Walsh says that some New Jersey state agencies used credit cards without following procedures set to protect public funds from fraud and abuse.
“Our report found that as many as 30 percent of the purchases we sampled made on state-issued credit cards were documented incorrectly,” said Walsh. “We also found that employees were approving their own purchases – the kind of system failure that makes taxpayer money ripe for abuse. Agencies must do more to make sure the millions of dollars spent annually on P-Cards are documented transparently and used appropriately.”
Walsh’s office found that three sampled agencies – Human Services, Corrections and Environmental Protection – allowed some employees to approve their own credit card transactions, that some agencies failed to seek price quotes for sole source vendors in transactions over a certain dollar threshold, and that the agencies did not maintain proper transaction logs required by state regulation.
The audit revealed 426 cardholders made 46,593 transactions with a total value of more than $23.2 million.
New Jersey Corrections Commissioner Marcus Hicks acknowledged problems in his department in a letter to the state comptroller last month.
“In an effort to further achieve and maintain compliance, the NJDOC Bureau of Auditing will also include these items in their scope and conduct periodic reviews,” Hicks wrote. “These additional measures along with training will provide the necessary oversight to ensure compliance with these specific audit findings.”A PERFORMANCE AUDIT OF P-CARD