January 4, 2010
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News: Indio City Employees Misuse Credit Cards
During 2009, a wave of credit card abuse spread throughout a number of government agencies and public school systems throughout the United States (U.S.). The latest credit card misuse discovery was reported by the Desert Sun News on the enormous spending of the Indio, California city employees during 2008 and 2009. In the midst of a national economic crisis, the city of Indio has undergone a worsening economic environment as well. While reporting a $9 million deficit, City Manager Glenn Southard stated that the staff will operate "in a fiscally prudent manner." However, according to the Sun, in less than two years, employees racked up nearly $805,000 worth of fine dining, non-approved travel and sporting events, and travel expenses for the city manager's wife on the city's credit cards.
Despite the poor economic conditions and a pledge to rein in spending, 62 of the city's employees accumulated over $43,000 more in credit card spending in 2009 than in 2008. Not a number that most individuals would consider effective money management. Furthermore, the Sun also discovered that several credit card transactions were related to a women's clothing boutique. Explanations for the unusual and obviously non-business transactions have yet to be explained by any of the city's employees including the city manager himself.
Approximately 20 percent of the city of Indio's employees have been issued a credit card under the city's name. Cards have not only been issued to upper management but have also been issued to lower level employees including the front desk receptionist. City Council members, the governing body responsible for overseeing the activities of city employees, does not have a set procedure or time for reviewing the city's card statements. Indio's Mayor acknowledged surprise when he learned of the abusive card practices and said he believed the employees had taken advantage of the city's good intentions. However, Dave Ison, Human Services Manager defended the city employees spending by saying that he could guarantee that none of the irregular charges were for personal reasons.