[read complete report - pdf]

Audit Objective

Determine whether the Board ensured that credit card and travel expenditures were adequately supported and for legitimate purposes.

Key Findings

• The Board approved payment for 236 credit card purchases totaling $24,416 without adequate supporting documentation.
• The former assistant recreation director used the Town’s credit card to make 160 personal purchases totaling $12,938, for which the Town incurred approximately $3,774 in interest and finance charges.

Key Recommendations

• Establish an adequate, written credit card policy.
• Require credit card users to submit adequate supporting documentation for card purchases, and ensure documentation is intact and reconciled to credit card statements before approving credit card claims for payment.
• Ensure credit card payments are made in full in a timely manner to avoid unnecessary interest charges or late fees.

Town officials agreed with our recommendations and have initiated or indicated they planned to initiate corrective action.