Council Credit Cards Fraud Risk

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Proper controls are needed on the use of council credit cards

The issuing of credit cards to senior officers and councillors by the Royal Borough of Windsor and Maidenhead poses a significant risk of fraud according to a report by the Royal Borough's own audit unit.

The report raises concerns that have been raised by the audit team for over 6 years, that the system of council credit or "procurement" cards is wide open to abuse. The unit found that only 21% of payments made on the cards, in the last financial year, were authorised by purchase orders. Over £129,000 was spent on the credit cards by around 80 cardholders.

 

The report pointed to the, "the risk of fraudulent or inappropriate payments being made by invoices not supported by a purchase order."

 

There is, as yet no evidence that any misuse has been made of the cards.

The failure to properly account for payments made on the cards also made it difficult for the council to properly claim back any VAT incurred by payments made using the cards.

 

Sources:

  1. Call for use of council credit cards to be tightened up over fraud fears, Daniel Whiteway, The Royal Borough Observer, 22nd November 2013
  2. 2013 - 14 Audit and Investigation Unit Interim Report (p17), Andrew Brooker, Head of Finance, Royal Borough of Windsor & Maidenhead, 14 November 2013

Further Reading:

  1. Money spent by Royal Borough leader on council credit card substantially increases

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