Determine whether Buffalo Collegiate Charter School (School) credit card charges were properly approved, adequately supported, and for School purposes.
Credit card charges were not always properly approved or adequately supported. Without adequate support, officials could not demonstrate that all charges were for School purposes.
- We reviewed 170 credit card charges totaling $128,070 and found supporting documentation such as receipts was not available for 66 charges totaling $23,376. The need or purpose was not documented for 72 charges totaling $50,989.
- The Board Treasurer (Treasurer) did not adequately review credit card charges in a timely manner. The Treasurer reviewed credit card charges an average of 108 days after the credit card statement was paid.
- We reviewed all 18 credit card charges over $2,500 in our audit period totaling $70,337 and found no evidence that the Treasurer pre-approved these charges as required by the policy.
- The Head of School and other School officials circumvented the existing policy requirements and made nearly $51,000 in unsubstantiated credit card purchases.
- Retain sufficient supporting documentation to substantiate the appropriateness and need or purpose of all credit card purchases.
- Adequately review credit card charges in a timely manner.
School officials generally agreed with our recommendations and plan to implement corrective action.