$2m spent on council credit cards

Christchurch City Council staff with council credit cards spent an average of nearly $5000 on them last year.

Figures released to The Press under the Official Information Act show one-third of the council's 1200 staff had purchasing (P) cards and used them to conduct about 20,000 transactions worth nearly $2 million in 2009.

This is the equivalent of a combined weekly spend of about $37,700, or each staff member spending about $20 every working day of the year.

The cards were used to pay for items including stationery, training courses, out-of-town accommodation and magazine subscriptions.

Council lawyers said no-one had ever wilfully misused their P-card. Any personal spending had been reimbursed.

Corporate services manager Paul Anderson said the nearly $2m annual spend was "relatively small" considering the council's total annual expenditure was about $320m.

A large portion of its buying was through preferred suppliers but using P-cards was, at times, more efficient.

Council chief executive Tony Marryatt and Mayor Bob Parker collectively spent $17,376.57 using P-cards. They did not have to pay that money back.

Marryatt spent $12,867.39 on his card with more than half that amount ($7366.05) on conferences and conventions. Another $2497.88 was spent at restaurants and cafes, while he spent just over $1000 each on professional memberships and subscriptions.

Most of Parker's $4509.18 bill last year was spent at restaurants and cafes, with those outings costing $3047.85.

Marryatt, Parker and council general managers can spend up to $5000 on each transaction while other staff have a purchasing limit of $1125 per transaction.

The council response, from legal services manager Chris Gilbert, said three business unit managers had a credit limit of $10,000 and one unidentified staff member had a $20,000 limit on their card "due to the nature of his role and the type of purchases that he is required to make".

Councillors were not given credit cards. As of this week, 410 council staff – about one-third of all employees – had P-cards.

In 2009, they made "approximately" 20,000 transactions worth $1.96m, an average of $98 per transaction.

The number changed weekly because cards were cancelled when staff left the council or when staff no longer needed them. New cards were sometimes issued to new staff or staff with new "purchasing requirements", Gilbert said.

The P-cards were introduced as an "efficiency measure" to avoid the need for paper purchase orders because 80 per cent of the council's purchasing was for items under $1000.

"The aim of using the cards is to reduce the administration, and therefore, the cost, associated with these transactions."

P-cards were not issued to staff "due to status". There had to be a business need for someone to have a card, Gilbert said.

The council confirmed last year that 21 cardholders made a total of 67 personal purchases on their P-cards, but all reimbursed the council promptly.

"There has never been a case of a staff member wilfully misusing a council P-card."

Random audits of cardholder transactions were held regularly and purchases were also reviewed as part of the council's annual external audit, he said.

PURCHASING POWER

Credit card transaction limit/monthly limitMayor: $5000/$20,000 Chief executive and general manager: $5000/$10,000 Business unit manager: $1125/$10,000 General cardholder: $1125/$5000 Source: Christchurch City Council.

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