RICHMOND, Va. — A new report conducted by Richmond’s Office of City Auditor has uncovered millions of dollars in "questionable transactions" through the city's purchasing card program that they’ve referred to the Office of the Inspector General.
The audit revealed that between July 2022 and May 2024, city employees spent more than $20 million using p-cards, which are essentially corporate credit cards intended for low-dollar routine purchases.
At least $5 million of these transactions were flagged as questionable and include potential conflicts of interest, procurement violations, and altered invoices, with many involving the use of Venmo, Square and PayPal.
“When analyzing the questionable expenditures, the OCA found that many transactions occured below the single quote threshold. In fiscal year 2024, after the city increased the single quote limit from $10,000 to $50,000, the OCA observed a pattern in which questionable transaction amounts increased,” the auditor’s office wrote in the report.
A single quote purchase means the buyer does not have to get multiple quotes for the acquisition.
According to the auditor’s office, Richmond’s single quote threshold is five to ten times higher than other localities in Virginia.
The Department of Parks and Recreation and the Department of Public Utilities were identified as the top two city departments making purchases with p-cards between July 2022 and May of 2024.
The city established its p-card program in 2018, and by June 2024, there were 348 active cards in circulation. However, the auditor found significant weaknesses in the city's internal control framework for their use.
According to the report, the p-card program lacked effective internal controls, had unclear policies, inadequate training, and inconsistent enforcement.
Mayor Danny Avula has announced a comprehensive reset of the p-card program in response to the findings.
The reforms include reducing the number of p-cards by 70 percent, limiting their use to mission-critical functions, eliminating p-cards for department directors, and prohibiting travel-related, Amazon and food purchases unless tied to public health or youth programs.
The Office of the Inspector General, which is responsible for detecting and preventing fraud, waste and abuse, is now reviewing the questionable transactions identified in the audit.
Click here to view the entire audit by the Office of the City Auditor.
CBS 6 is committed to sharing community voices on this important topic. Email your thoughts to the CBS 6 Newsroom.
📲: CONNECT WITH US
Blue Sky | Facebook | Instagram | X | Threads | TikTok | YouTube
