MARYLAND-NATIONAL CAPITAL PARK & PLANNING COMMISSION. Prince George s County Department of Parks and Recreation. Report Number: PG

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1 MARYLAND-NATIONAL CAPITAL PARK & PLANNING COMMISSION Prince George s County Department of Parks and Recreation Report Number: PG November 18, 2013 Distribution: Executive Committee Elizabeth Hewlett Françoise Carrier Patricia Barney Audit Committee Amy Presley John Shoaff Maryland-National Capital Parks and Planning Commission Adrian Gardner Ronnie Gathers Roslyn Johnson Greg Kernan Stacey Pearson Joseph Zimmerman Office of Internal Audit Renee Kenney Robert Feeley Maryland-National Capital Park and Planning Commission Office of Internal Audit 6611 Kenilworth Ave., Suite 403 Riverdale, MD 20737

2 Prince George s County Department of Parks and Recreation Purchase Card Review Table of Contents A. Background...1 B. Scope, Objective and Methodology of the Audit. 2 C. Overall Conclusions.3 D. Detailed Commentary and Recommendations 4

3 Background The Maryland-National Capital Park and Planning Commission (Commission) purchase card program is designed to help better manage low dollar, low to moderate risk purchases. The purchase card program reduces administrative costs and time associated with purchases of goods and services for official Commission business. The Department of Finance s Purchasing Division requested a review of purchase card transactions for Prince George s County Department of Parks and Recreation,. The purpose of the review was to determine if purchase card transactions were in compliance with Commission Practice No. 4-10, Purchasing Policy and the Purchase Card Program Policy and Procedure Manual. 1

4 Audit Scope, Objectives, and Methodology The scope of the internal control review included, but was not limited to, the following audit procedures: Reviewing Maryland-National Capital Park and Planning Commission Purchase Card Program Policy and Procedures Manuel. Obtaining purchase card files for the period of July 1, 2012 through August 31, Reviewing 100% of purchase card transactions and supporting documentation (e.g. bank statements, transaction logs, receipts, purchase card request forms, etc.) Interviewing the purchase card holder to gain a better understanding of internal control procedures. The review covered the period from July 1, 2012 through September 23,

5 Overall Conclusions This audit was conducted in accordance with Generally Accepted Government Auditing Standards. The results of our evaluation and testing procedures indicate no major weaknesses in the design or operation of internal controls for the. On an overall basis, we consider the controls over purchase card transactions to be satisfactory. We believe all weaknesses identified and communicated are correctable and that management s responses to all recommendations satisfactorily address the concerns. It is the responsibility of management to weigh possible additional costs of implementing our recommendations in terms of benefits to be derived and the relative risks involved. We wish to express our appreciation to the management and staff for the cooperation and courtesies extended during the course of our review. Renee M. Kenney, CPA, CIA, CISA Chief Internal Auditor November 18, 2013 Conclusion Definitions Satisfactory No major weaknesses were identified in the design or operation of internal control procedures. Deficiency A deficiency in the design or operation of an internal control procedure(s) that could adversely affect an operating unit s ability to safeguard assets, comply with laws and regulations, and ensure transactions are properly executed and recorded on a timely basis. Significant A deficiency in the design or operation of an internal control procedure(s) which Deficiency adversely affects an operating unit s ability to safeguard assets, comply with laws and regulations, and ensure transactions are properly executed and reported. This deficiency is less severe than a material weakness, yet important enough to merit Material Weakness attention by management. A deficiency in the design or operation of an internal control procedure(s) which may result in a material misstatement of the Commission s financial statements or material impact to the Commission. 3

6 Detailed Findings and Recommendations 1. Strengthen Security of Purchase Card Issue: purchase card is not secure. The purchase card holder keeps the card in her purse. Since April 2012, there were three cases of fraudulent purchase card activity linked to the purchase card. In each case the bank either credited the fraudulent amounts back to the Commission or did not process the payment to the vendor. In addition, the purchase card holder accidentally made two personal purchases with the purchase card since March of The purchase card holder reimbursed the Commission in one case and obtained a credit to the purchase card bank account in the other. Risk/Criteria: The Commission s Purchase Card Program Policy and Procedure Manual requires the purchase card holder to maintain the purchase card in a secure location at all times. Keeping a purchase card in a purse or wallet is not secure as it may be accessible to others when not attended. Recommendation: We recommend that the purchase card holder maintain the purchase card in a safe when not in use. There is a safe available at the Issue Risk: Medium Management Response: Concur. The purchase card is now being kept secured in a locked safe on site. When the card is taken off site for purchases, it will be secured in an aluminum wallet. Expected Completion Date: Completed Follow-Up Date: December