Bill,

I  would like to make a comment on this. I think the supervisors/department
"approving" these charges should be held responsible and not the employee
who has been directed to make the split purchases by their
supervisor/department head. If the supervisor/department head puts their
employee in the position to make these split purchases what recourse do
they have? What should they do? If this is really a problem then guidelines
should be put in place so the employee has some recourse as to how to
handle the problem when asked to spit charges.

Thank you.



At 11:30 AM 12/3/03 -0500, you wrote:
>At our staff meeting this morning of all UT internal auditors across the
>state, we discussed our reporting structure with the newly formed audit
>committee of the board of trustees.  All audit reports, including
>procurement card audits, will be formally presented to the committee at
>their quarterly meetings, which are open to the public.
>
>The committee has already expressed concerns about the number of split
>transactions (where the cost of item or like items exceeds the card limit
>of $2,000 and the purchaser cleverly asks the vendor to make two separate
>charges under the limit) noted in the reports.  Specifically one commented,
>"why we didn't terminate anyone we caught doing this since it's clearly
>against fiscal policy."
>
>Needless to say, that comment got my attention.  In the past, when we've
>encountered these situations, we've simply warned the departments "not to
>do it again".  Obviously things have now changed.
>
>Our position now is that an official written warning will be placed in the
>employee's personnel file on the first offense for ALL employees involved
>in the transaction.  Other disciplinary action will occur for repeat
>offenders.
>
>I don't intend this post to be taken as a threat.  I hope it is helpful to
>prevent these situations in the future, in particular for those who might
>find themselves in a position where their supervisor is directing them to
>split a purchase transaction on the procurement card.
>
>Another note:
>
>All procurement card transactions are monitored daily by Chris Hyder, an
>internal auditor out of the Knoxville office.  So if we (the Chattanooga
>auditors) have not been to your office lately for to perform a procurement
>card audit, don't be lulled into thinking that no one is monitoring the
>purchases.
>
>
>
>
>
>If you have any questions, please do not hesitate to call
>or reply back to this message.
>
>~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
>  ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
>
>         Bill Miller, Director
>         Audit and Consulting Services
>         The University of Tennessee at Chattanooga
>         217 Race Hall - Dept. 4855
>         Chattanooga, TN  37403
>
>         Phone - (423) 425-4715
>         FAX -   (423) 425-4763
>         email - [log in to unmask]
>
>"If at first you don't succeed, skydiving isn't for you."
>
>  ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
>~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Mary Coleman
Administrative Assistant
Political Science, DEPT. 6356
The University of Tennessee at Chattanooga
615 McCallie Avenue
Chattanooga, TN 37403-2598
423/425-4281
FAX: 423/425-2373