The Salt Lake County Auditor’s Office has released a critical audit report exposing significant gaps in oversight and policy adherence related to the use of proprietary cards and Amazon purchases across multiple County agencies. Audits are a critical function to help government ensure accountability, transparency, and efficiency. The findings highlight a need for strengthened oversight, internal control, and compliance to protect taxpayer dollars and ensure transparency in government spending in Salt Lake County.
Key Findings of the Audit:
- Two County Agencies Used Proprietary Cards Without Appropriate Oversight
The audit revealed two agencies were using proprietary cards without proper oversight from Contracts and Procurement, as mandated by Countywide Policy 7036. This gap allowed $4,535 in total unchecked spending and potential policy violations. Instances were noted where cards were used without the required authorizations, increasing the risk of fraud, waste, and abuse.
- The County’s Gift Card Policy Was Circumvented
County policy restricts the purchase of gift cards for employees, yet one agency purchased gift cards for employees totaling $882. Eight agencies purchased $23,237 in gift cards for clients or customers without clear guidelines on purchase, storage or distribution of the cards. Without established procedures meant to uphold transparency and accountability, there are significant financial risks at stake for the County.
- Inadequate Management of Amazon Purchases
The County’s Amazon Business account, established to streamline small cost purchases and improve efficiency, saw misuse due to insufficient training and oversight. A personal email address was used, and unauthorized credit cards charged on the account for various purchases. Additionally, shipments were sent to over 40 non-County facilities without adequate documentation and approval to justify the business need.
- Controlled Assets Not Properly Tracked
A review of controlled asset purchases revealed that several County agencies failed to record controlled assets, such as technology equipment, in the County’s asset inventory system. This lapse jeopardizes the accountability of public assets and may result in unnecessary expenses or potential misuse.
Salt Lake County Auditor Chris Harding emphasized, “These findings underscore the need for stronger checks and balances within County agencies to safeguard public resources. By implementing the recommended changes, we can improve transparency, reduce risks, and enhance accountability across County operations.”
The Auditor’s Office has issued 29 recommendations aimed at tightening controls, updating policies, and providing additional training for staff involved in procurement and purchasing. Each agency audited has agreed to the recommendations and to take corrective actions to address the identified issues.
County agencies agreed to the findings in an agreement to the facts meeting on October 7 and are already implementing the recommended changes. Auditor Harding will present the findings and recommendations to the Salt Lake County Council on December 17.
