16 Jul, 2015

Full statement from City of Adelaide as sent to The Advertiser

The results of KPMG’s audit show that all but a small minority of purchase card transactions reported were found to have been in accordance with Council’s Corporate Guidelines and approval processes.

The review found that internal controls are adequate, usage is regularly audited (most recently in February 2015) and management reporting provides greatly enhanced visibility of expenditure.

The purchase card expenditure reported by The Advertiser and its stablemate publications in April 2015 represents less than 0.4% of all Council purchase card transactions between 2012-2015.

While KPMG have not identified any systemic or significant areas of non-compliance, they have made several low level recommendations.

Management has taken this feedback into account in developing actions to address these issues, including re-educating staff about the processes they need to follow, the credit card use guidelines, and what is appropriate use of a credit card.

KPMG have recommended the continued use of credit cards across the organisations as their use provides the ability to efficiently and transparently manage corporation expenditure, significant reduction in transaction costs and clear visibility of spending patterns, while being an effective way of keeping records of expenditure, and is practical to use on a day to day basis.

While it is disappointing that the tenure of articles in The Advertiser cast unjustified aspersions on Council and its Administration, it has provided a useful stimulus for another detailed review of the use of credit cards. As a result of that review, I am satisfied that credit card use is in accordance with Council’s guidelines.

As indicated in the report to Council, management has now determined to align with the ATO’s travel allowances guidelines and switch to a location-based accommodation allowance where travel is required on Council business.

To read KPMG’s full report, go to page 15 of the Finance & Business Services Committee Agenda.