August 6, 2009
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News: School Employees Abusing CC
A recent study showed that 41% of the credit card transaction of the federal government's issued supplies cards are unauthorized purchases. Additionally, the study found many incidents of credit card fraud and abuse. The Rochester City School District in New York is a good example of a potential problem. The school district issued nearly 350 cards known as purchase cards (p-cards) to make it easier for employees to purchase inexpensive necessary supplies. P-card credit cards have become very popular in government circles; however, have the potential for encourage abuse and fraud unless strict guidelines are in place. Closely monitoring keeps employees in check.
Last Spring, the local news station 13WHAM under the direction of the Freedom of Information solicited credit card statements for the past few years from the school district. Under compliance of the request, the school district provided the list of employees who have been issued the credit cards; however, failed to provide purchasing information. Some members of the school board were actually themselves surprised to learn of the large number of school district cards in circulation. Superintendent Jean-Claude Brizard, however, felt with 7,000 district employees, the number of cards was not a problem. In comparison, Monroe County has only four employee cards issued and the City of Rochester has only three cards issued.
Superintendent Brizard noted that he himself does not have a school district issued credit card, but assures that Channel 13 WHAM will get the requested purchase information. Brizard did not indicate when the information would be provided. Furthermore, Superintendent Brizard maintains that the school district is committed in remaining transparent and will act as needed if any abuse is detected. Some who oppose issuing p-cards to employees say that they do so because they are difficult to track and it requires a loyal staff member to keep a constant watch on employee use.