State of Georgia Under Fire for Further P-Card Misuse

April 12, 2016

The State of Georgia is back in the spotlight for further allegations of purchasing card (P-Card) misuse and abuse.

Following an audit in March, it came to light that a staff member in the Secretary of State’s office potentially misused a taxpayer-funded P-Card to purchase a ticket for a flight for an individual who does not work for the agency.

This new case follows on the heels of a number of allegations in the past year regarding Georgia State’s use of P-Cards by both county and state employees.

Since 2008, officials in one Georgia county have used their company P-Cards to purchase more than USD $537,000 of items and services ranging from public image consultations to food and flowers.

The report recommended that all P-Cards used by county officials and employees be deactivated, a recommendation put into action for most cards this past June.

Learn from Others

Georgia's various levels of government should consider taking a page out of the books of a local academic institution: the Georgia Institute of Technology.

After its P-Card program fell victim to large-scale incidents of P-Card fraud—including employees purchasing gifts and paying off personal loans—Georgia Tech hired temporary staff to manually analyze their P-Card transactions.

This, however, was simply not enough to ensure that every single transaction across 2,400 P-Cards was examined.

So Georgia Tech turned to CaseWare IDEA for data analysis and the CaseWare P-Card Monitoring solution (now Alessa) for continuous monitoring of all P-Card transactions. The solution also allows the school to monitor multiple data sources simultaneously, detecting cards used by terminated employees and duplicate payments between P-Card merchants and accounts payable vendors.

With their new automated analytics, they’re able to search for inappropriate fuel purchases and address matches between merchants and employees and more.

With the help of our continuous P-Card Monitoring solution, Georgia Tech has achieved revenue assurance and met their compliance objectives.

Read more about Georgia Tech’s success, or learn more about how our  continuous controls monitoring solutions can help you safeguard and grow your P-Card program by contacting us.

About Andrew Simpson

Andrew Simpson (LinkedIn | Twitter) is Chief Operating Officer at CaseWare RCM and has more than 20 years of experience building businesses in the fields of information systems audit and security, data analytics, Anti-Money Laundering and forensics. He is a regular contributor to conferences and a recognized thought leader in financial crime management.

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