The Ombudsman has published a final investigation report which concluded that Flinders University staff had a practice of using university issued purchasing cards (also known as corporate credit cards) for activities falling outside the scope of what the Ombudsman expects to be an appropriate use of publicly funded money.
Insights
There is an expectation on public authorities and agencies to ensure its purchasing card practices meet the public's expectations that public money is spent appropriately.
Appropriate use of purchasing cards requires expenditure to be:
- reasonably necessary to further the functions of an agency; and
- be connected to an agency activity and not primarily benefit individual staff members.
An agency’s policies and procedures must place parameters around what expenditure
constitutes appropriate use of purchasing cards. A failure to have strong policies in this regard can lead to a practice of staff using purchasing cards for goods and services which do not meet the public’s expectation of appropriate use of public money.
Outcome
The Ombudsman’s investigation reviewed a sample of purchase card transactions within a college of the University and found that there was a practice of using purchasing cards for goods and services (for example at restaurants, bars and cafes) which provide a personal benefit to either individuals or small groups of staff. The kinds of transactions identified in the investigation should not have been approved as they were not an appropriate use of public funds. The Ombudsman formed the view that this amounted to an error under the Ombudsman Act 1972.
The Ombudsman recommended that the University amend its purchasing card practices and provide training to its purchase card holders. The University will also audit the use of purchasing cards after it has amended its practices.
