Audit raises concerns about use of state credit cards

JEFFERSON CITY, Mo. -- Workers at some government agencies are making questionable purchases with state credit cards that have excessive spending limits and aren't properly monitored, an audit released Thursday said.

The audit concluded that a lack of supervision has resulted in the credit purchases of "some unallowable and inappropriate items."

While the audit did not uncover specific cases of fraud, "we did uncover a system in which fraud could occur," said State Auditor Claire McCaskill.

In one case, a worker at the Missouri Department of Transportation charged $10,000 on a state credit card for things such as watches and beverage coolers, the audit said.

McCaskill's staff said the prices paid for the items on the credit card did not exceed what they were sold for by the department.

While state credit cards can save time and money, McCaskill said, they have to be well-managed by departments that are required to pay off their credit card bills each month.

"We have a war between the efficiencies that a credit card represents and the internal controls and oversight that traditional purchasing systems offer," McCaskill told reporters.

The lack of credit card controls also resulted in employees violating state laws that require the purchase of Missouri products if they are comparable in price and quality to out-of-state products, the audit said.

The audit found employees at the transportation department and the Department of Conservation purchased digital cameras and televisions that were not inventoried as state property -- a requirement of state regulations.

A total of 2,600 government workers have been issued credit cards. The audit found that 1,500 of those workers only needed a $1,000 monthly credit limit, not the $3,000 limit allowed under the program started in 1998 and overseen by the state Office of Administration.

One-third of employees used their state credit cards infrequently and 50 percent of workers spent less than $400 a month, the audit said.

State guidelines do not require employees to get prior approval for credit card purchases of less than $1,000.

But McCaskill said some employees skirted the $1,000 limit by charging something for slightly less than $1,000, waiting a few minutes, and then charging a similar amount.

McCaskill's office recommended that those who rarely use their cards should not have them, an idea the Office of Administration embraced in its audit response.