What Controls [Internal Controls] Are Applied for Procurement Card Usage?
Controlling procurement cards is certainly a challenge. The main problem is assuring that the procurement cards are only used as per the established corporate policy. Additional controls also need to be in place to prevent unauthorized use and theft of procurement cards. A number of internal controls can be designed to achieve these objectives. However, research has shown that procurement card programs are not beneficial if internal controls are strict and if cost allocations are taken very seriously. Remember, procurement cards are used to facilitate purchase of low-value items and generate low-cost transactions. If controls are very strict, employees may be discouraged from using procurement cards. An illustrative list of internal controls is provided below: • A card can only be issued by the authorized manager. There is written justification as to whom and why the card is being issued. There are standard operating procedures for stolen or misplaced cards. • These cards are issued on