2015-01 Performance Audit Report: County of Hawai'i's Purchasing Card (pCard) Program

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William P. Kenoi Deanna S. Sako Mayor_"' !. Director Lisa K. Miura ' Deputy Director 6V: County of Hawaii Finance Department 25 Aupuni Street, Suite 2103 • Hilo, Hawaii 96720 (808) 961-8234 + Fax (808)961-8569 July 15, 201.5 TO: Bonnie Nims, Legislative Auditor FROM:Deanna Sako, Director of Finance RE: Response to County of Hawaii's Purchasing Card Program Performance Audit Report No. 2015-01 Thank you for the opportunity to provide our response to the audit recommendations. Recommendation: Fair and Equitable Treatment — We recommend that County Management, including the Department of Finance, comply with County Code Article 15, Section 2-83 and treat all employees and departments in a fair and equitable manner and hold them consistently to the same laws, policies, and procedures. Response: The Department of Finance has started to require that the Mayor's office also follow the policies and procedures currently in place. We will continue to enforce the rules fairly among all departments. Recommendation; Update Policies and Procedures — We recommend the Department of Finance complete an annual comprehensive review and clarify the Purchasing Card Program and Procedures Manual to ensure that it is consistent with state law and other applicable County guidance including but not limited to: • Remove the caveat "unless specifically authorized" on personal purchases and liquor. • Clarify policy on specific types of allowable and unallowable purchases. • Clarify policy on the timeliness of reimbursements. • Provide clear guidance on documenting the legitimate department purpose in the transaction description. Response: While we do periodically review our policies and procedures, we will work on consolidating our guidance to make it easier for the users and clarify where appropriate. Recommendation: Strengthen Monitoring — We recommend the Department of Finance, in addition to their current review procedures, complete a periodic review and/or perform additional monitoring of pCard transactions to ensure expenditures are for a legitimate department purpose and have a clear benefit to the County. Response: While this review is performed periodically, we will continue our efforts in this area. Hawaii County is an Equal Opportunity Employer and Provider Purchasing Card Program :: Management's Comments 119