Hernando Today
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County Credit Cards Closely Checked
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Published: October 8, 2008
BROOKSVILLE - Most people carry several credit cards in their wallets for times of emergencies or entertainment.
And financial advisers constantly tell their clients how to properly manage those cards so as not to drive them to debt.
Likewise, county employees are allowed the use of county-owned purchasing cards. Of course, unlike the rest of us, these workers' card purchases are closely scrutinized.
And, properly used, they can end up saving taxpayers money because they cut down on the unwieldy purchase orders that 12 or more years ago was the only way most county governments had to purchase emergency items.
As of Jan. 23, there were 356 county employees who have use of Bank of America credit cards. Of those, 352 were assigned to employees under the board of county commissioners and four were given to Clerk of the Circuit Court employees.
In addition, there were 20 "emergency cards" - cards that can only be activated in emergencies, such as hurricanes. When not in use, those emergency cards are stored in a safe in the county finance department.
Unless specifically authorized by the director of purchasing and contracts, the maximum dollar amount allowable by cardholders for each single purchase is $1,000.
From Jan. 1 through June 30, there were 6,345 total credit card transactions, totaling $1.1 million. The average monthly activity total for these cards was $188,200, a 17 percent increase in monthly spending since 2005.
County policy currently sets a $5,000 monthly transaction limit on the cards.
According to the county's purchasing cards policy, employees cannot use them for such items as entertainment expenses, meals, personal use, cash advances, alcoholic beverages, tobacco products, non-work or personal use items and services.
So what kinds of things can they use them for?
Anything associated with county business, Purchasing Director James Gantt said.
That varies by department, but the system is designed for smaller-item purchases.
For example, if an employee needs to purchase a shovel at Home Depot, he can use the card, rather than go through the time and red tape of having to fill out a purchase order, Gantt said.
Each department director is responsible for reviewing all the billing statements of cardholders, verifying approval of purchases and resolving anything on the cards that appear questionable.
The department director forwards the credit card statements to Gantt's office.
Hernando County's contract with Bank of America is negotiated through the state of Florida, and must adhere to specific guidelines, Gantt said.
Gantt said taxpayers save money because it cuts down on the expense of managing purchases. A computer program reconciles all the different charges and sends monthly statements to the appropriate departments.
Last week, the county clerk's office released an audit of the county's purchasing card program.
Deputy County Administrator Larry Jennings said the audit found no instances of fraud or abuse.
Audit services suggested ways to improve controls of the cards and those procedures have either been implemented or in the process of being done, Jennings said.
Reporter Michael D. Bates can be reached at 352-544-5290 or mbates@hernandotoday.com.
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