More than 1,300 cards cancelled; credit limits reduced by $285 million
Frankfort, KY: In his continuing effort to weed out waste, fraud, inefficiency and abuse in state government, Governor Ernie Fletcher announced a profound potential savings found by reigning in spending limits on procurement cards. Following a three month evaluation and revamping of the program, the administration has reduced credit limits on procards by $285 million dollars per year.
“I am committed to ensuring state government delivers value to taxpayers,” stated Governor Ernie Fletcher. “I was elected with a mandate to eliminate waste, fraud, and abuse. By overhauling the procard program, there will be less of a chance for mismanagement or abuse of these cards, which are essentially credit cards.”
In March 2004, Governor Fletcher asked each Cabinet secretary to examine their agencies’ use of Procurement cards.
The internal review resulted in the following changes:
- Cancellation of 1,339 procurement cards;
- Reduction of the annual credit limit by $285 million;
- Modification of the procard regulation to address the pre-approval and post review processes to be completed by each agency.
In addition to a new regulation governing the pre-approval and post review process, the Office of Policy and Audit will be established within the Finance and Administration Cabinet’s Office of the Controller. One of the duties of this office will be to review the procard program on a continuing basis to ensure implementation and compliance.
The procard program, implemented in the late 1990s, granted agencies the ability to issue these “credit” cards to certain employees in need of immediate spending capability. Due to a lack of management and supervision, the procard system quickly spiraled out of control. Recapturing more than one thousand procards and forming stricter guidelines will allow cabinets to regain control and monitor the system to ensure the cards are being used appropriately.