Purchasing Card Audit Report September 4, 2025

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Agenda Item

1. Purchasing Card Audit ~ Updated 9.4.2025

Summary: Presented by: Mr. Joel B. Thibodeaux, Executive Director of Internal Audits & Compliance, Chief of Staff Division
Contact: Mr. Joel B. Thibodeaux, Executive Director of Internal Audits & Compliance, Chief of Staff Division, 678.676.0740
DeKalb County Board of Education
Audit Committee Meeting
September 4, 2025
Purchasing Card Audit Report

Presented by: Joel Thibodeaux – Director of Audits & Compliance
Contracted Auditors: Forvis-Mazars, LLP – Dr. Jamie Amos PMP, CFE
                   Audit Purpose & Scope
The DeKalb County Board of Education requested that an
independent, third-party audit be conducted on the District’s
Purchasing Card program. The purpose of this audit was to assess
and provide assurance of the following:
• That Purchase Card Policies (DCSD Board Policy DJE and DJE-R(1)) are
  aligned with regulatory requirements and government best practices
• That Purchase Card Security is effectively implemented and
  maintained
• That processes, approvals, and other controls governing Purchase
  Card Use are adequately implemented, effective, and enforced.
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                           Audit Deliverables
• Comprehensive Final Report that includes but is not limited to
  presenting:
   • Strengths
   • Potential or existing control weaknesses.
   • Failures in card security, use, and processing.


• Recommendations: Final report shall also include recommendations
  for remediation, process improvement, ongoing monitoring, and
  transaction auditing.
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                      Internal Staff Engaged
           Engaged the following personnel in Finance-Vendor Services:
Process Owners:
 Ms. Carla Smith – Executive Director, Vendor Services
 Mr. Weyman “Fred” Christopher – Procurement Manager III, Non-Capital

Support:
 Mr. Byron Schueneman – DCSD Chief Financial Officer
 Ms. Lauren Scott – DCSD Deputy Chief Financial Officer
 Ms. Victoria King – Administrative Assistant, Internal Audits & Compliance
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                          Assessment Summary
                                                                  CONTROL    RISK    CURRENT RISK
        ACTIVITIES                     CONTROL
                                                                   RATING   RATING     RATING
                         DCSD has established policies and
                                                                                        Needs
Purchase Card Policy     procedures to effectively oversee the      Key      High
                                                                                     Improvement
                         purchase card process
                         DCSD issued purchasing cards in
Purchase Card Issuance   accordance with the policy and             Key      High     Satisfactory
                         procedure
                         Purchasing cardholders must be
Purchase Card Issuance   approved by their Department Head          Key      High     Satisfactory
                         before being issued a purchasing card.

                         Purchasing cardholders must complete
Purchase Card Issuance   training and sign the purchase card        Key      High     Satisfactory
                         agreement.
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                          Assessment Summary
                                                                      CONTROL    RISK      CURRENT RISK
        ACTIVITIES                       CONTROL
                                                                       RATING   RATING       RATING
                         Purchasing cards belonging to former
                         DCSD employees are first assigned a
                         ‘null’ status and subsequently
                         deactivated. A reconciliation process is
Purchase Card Security                                                  Key       High      Satisfactory
                         then performed to ensure consistency
                         across all related records, including
                         invoices, purchase card amounts, and
                         expense summary reports.
                         Purchasing cards are assigned a “null”
                         status to suspend the ability to make
Purchase Card Security                                                  Key     Moderate    Satisfactory
                         purchases for a certain amount of time
                         as a form of security.
                         According to policy, all purchasing card
                                                                                              Needs
Purchase Card Use        holders are restricted to a daily limit of     Key       High
                                                                                           Improvement     8
                         $5,000 per day per swipe.
                      Assessment Summary
                                                               CONTROL    RISK    CURRENT RISK
        ACTIVITIES                 CONTROL
                                                                RATING   RATING     RATING
                     According to policy, all purchasing
                                                                                     Needs
Purchase Card Use    cardholders are restricted to a monthly     Key      High
                                                                                  Improvement
                     limit of $20,000.
                     Purchasing cardholders are limited to
                     specific types of purchases based on                            Needs
Purchase Card Use                                                Key      High
                     the Merchant Category Codes (MCC)                            Improvement
                     assigned to their card type




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                               Findings & Recommendations
                                 Finding                                                         Recommendation
The Purchasing Card policy lacks clarity regarding the CFO’s approval of    DCSD policies and procedures should be updated to clearly
designated officials authorized to receive a purchasing card and does not   outline the chief financial officer’s approval authority and define
clearly articulate the purchasing limit of the School Board and the         purchasing limits for the school board and superintendent.
Superintendent.

The statuses of deactivated or suspended purchasing cards are unclear and DCSD should define and establish a consistent process for
not explicitly defined in the policy.                                     deactivating and suspending cards and should incorporate this
                                                                          process into the policy.

Due to insufficient processing controls implemented by the bank,            DCSD should work with the issuing bank to put controls in place
purchasing cardholders were able to exceed the $5,000 daily transaction     to limit daily ($5,000) and monthly ($20,000) spending.
limit and $20,000 monthly limit outlined in the established policy. This
lapse indicates a breakdown in the enforcement of policy thresholds and
may expose the organization to financial and compliance risks.

Due to insufficient processing controls implemented by the bank,         DCSD should work with the issuing bank to put controls in place
purchasing cardholders were able to make prohibited transactions, as     to limit card use to approved vendors. Additionally, the district
defined by the Merchant Category Code (MCC) restrictions associated with should implement ongoing monitoring of cardholder transactions
their cardholder profiles.                                               to verify compliance with assigned profile parameters and take
                                                                         corrective action when deviations occur.
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PURCHASING CARD AUDIT




QUESTIONS AND DISCUSSION
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