While using purchasing cards (P-cards) can be very convenient for a business, it may also pose some challenges. In fact, without strong internal controls in place, the fact that using P-cards requires less documentation and fewer approvals might allow inappropriate spending to become problematic.
According to WBRZ-TV, Baton Rouge, La.'s Metro Council may have learned this firsthand, as a recent she bought herself, and Loupe's own further research indicated further issues.
The news provider reported that receipts show Wicker bought clothing, snacks, $120 DJ turn-tables and more. However, Wicker, who has since returned her P-card because it was "a distraction," maintained she spent the funds appropriately.
CPA2Biz noted that one helpful step organizations looking to leverage P-cards can take is to engage employees in ethics training so they fully understand what constitutes legitimate business spending. Additionally, deploying stronger internal controls across all financial processes, including accounts payable, is critical. This may include conducting more rigorous accounts payable audits.