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Uncovering Purchashing Card Misuse in Missouri

The state giveth, and now it may taketh away. Missouri started a procurement card program in 1998 to reduce the administrative expenses of low-cost purchases. But a recent state audit showed that procurement cards may be leaving the state unnecessarily liable.

The state giveth, and now it may taketh away. Missouri started a procurement card program in 1998 to reduce the administrative expenses of low-cost purchases. But a recent state audit showed that procurement cards may be leaving the state unnecessarily liable.

The audit found that many of the 2,600 state employees in various agencies who had been issued the credit cards didn't need them or had ones with excessive spending limits. Auditors also learned that buyers in one state agency thought that by using the cards they didn't need to follow regulations for in-state purchases and bidding.

There were also unallowed purchases. Although guidelines prohibit employees from buying postage stamps, auto repairs and other goods and services with the cards, Department of Conservation employees had bought more than $2,700 in stamps and transportation employees had bought more than $2,600 in auto repairs.

Some card holders got around spending limits. Since most purchases do not have to be pre-approved unless they exceed $1,000, some employees were calling the same place several times a day to purchase items for just under $1,000 each time.

State agencies need to oversee card usage more carefully and make sure purchasing regulations are being followed, says Claire McCaskill, the state auditor. That may mean taking cards away from some people.

This was not the first time the state has done cross-agency audits. McCaskill has found that such audits have a bigger bang than focusing on one agency in particular. Other cross-agency audits have been done on cell phone usage, fleet management and food reimbursement policies.

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