September 10, 2009
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News: Wisconsin State Employees Misuse CC's
A number of Wisconsin state employees felt the state owed them more than they were getting in their paycheck. A recent audit of the state's credit card accounts found state employees have abused the credit privileges to the tune of $74,500. The audit which was conducted by the Legislative Audit Bureau indicated that 131 out of over 3,000 transactions of employees' credit card transactions were unauthorized and inappropriate. The State of Wisconsin has over 18,000 credit cards distributed to employees who typically cover approximately 693,000 purchases of supplies and services. Total transactions can total more than $161 million a year. According to the audit bureau, state agencies and the University of Wisconsin are known to be very efficient in managing employee issued cards and holding them accountable especially since purchases are not pre-approved.
The abusive charges were not found to be centralized in a small number of agencies, but rather are sporadic throughout several different agencies. In the Department of Natural Resources, an employee purchased airfare tickets to Las Vegas, repair expenses for a video game console, theater tickets, a watch, and a purse. The employee has been recently terminated stemming from alleged credit card abuse dating back to 2004. Another employee with the Department of Military Affairs is under investigation for allegedly using state credit cards to make nearly $17,000 of unauthorized transactions including $1,799 for a personal laptop. A second Military Affairs employee charged over $2,000 for hotel expenses while vacationing in Puerto Vallarta. The state has not yet been reimbursed for the charges.
An employee at the University of Wisconsin-Milwaukee used the state's credit card to purchase 11 HD televisions for $1,350 each. Ten of the televisions were for an educational program and within the guidelines of spending terms; however, the 11th one kept by the employee for personal use in her home. The employee has repaid the state the cost of the television. An investigation continues as the state looks into all the these transactions plus several more including the purchase of unauthorized airline tickets, a fur stole, briefcases, computer accessories, and children's apparel.