Purchasing cards (P-cards) can be an excellent tool for organizations that want to better manage their finances. However, if institutions put P-card systems in place without also implementing officials stated repairs are handed by a separate department.
An accounts payable audit determined that $3,364 was lost due to P-card misuse. Additionally, Rumbelow is accused of selling $50,000 worth of old instruments belonging to the school. When he resigned from his post, Rumbelow presented the University of Illinois with $86,000.
In a set of guidelines, Heriot Watt University explained that it's critical for organizations using P-cards to follow certain procedures to reduce the likelihood of fraud. For instance, it may be helpful for companies to ensure all transactions are approved by a "budget holder," but that individual shouldn't also have access to a P-card. It is also key for policies and procedures to be thoroughly documented so all users will be aware of what constitutes risky purchasing behavior. Many times, if staff members are aware standards exist, they will be hesitant to make questionable choices.