The Office of the State Auditor released reports on credit card internal controls and certain financial activities for four independent state entities.
The Office reviewed financial activities for the Utah Dairy Commission, the Military Installation Development Authority (MIDA), the Utah State Fair Corporation, and the Heber Valley Historic Railroad Authority.
Overall, each entity suffered from a lack of sufficient oversight regarding the use of credit cards. The reports noted various issues, such as (1) a lack of written policies and procedures for credit card use, (2) weaknesses in the approval processes, and (3) lack of training regarding appropriate credit card use. In several cases, there were questionable expenditures, but weak controls made it difficult to draw conclusive determinations. The reports also noted that these entities might improve their financial controls through the use of purchase cards rather than credit cards. Purchase cards can provide transaction limits, daily usage limits, and merchant class restrictions.
The Office continues to have concerns with the Utah Dairy Commission. The report identifies that the Utah Dairy Commission fails to recognize that it is a public entity funded with public monies (a legislatively-imposed dairy assessment). The report also notes missing receipts, questionable expenditures, and lax oversight. “The use of public funds requires compliance with certain public duties,” said State Auditor John Dougall. “I expect the Utah Dairy Commission to promptly recognize those duties and to stop operating in the shadows, away from public scrutiny.”
Findings concerning the Utah Dairy Commission:
#1: Inadequate Internal Controls over Credit Cards
#2: Excessive Issuance of Credit Cards and Inadequate Separation of Duties
#3: Insufficient Training on Credit Card Use
#4: Inadequate Review of Credit Card Purchases
#5: Improper Recording of Employee Gifts
#6: Increased Risk by Using Credit Cards versus Purchase Cards
#7: Commission Employees Misunderstand State Oversight
The reports for each of the four entities may be found on the Office’s website, auditor.utah.gov, and specifically at: