What were the findings of the Local Government Management of Purchasing Cards – Larger Metropolitan Entities for the City of Melville? The OAG audit did not identify any instances of public funds being misused by City of Melville cardholders.
The report’s recommendation for all audited Councils was to ensure their policy and guidance is clear on what is allowable and reasonable business use expenditure for items such as travel, alcohol, meals, entertainment and gifts.
“The six entities, as relevant, should:- report purchasing card transactions more transparently to Council to enable better scrutiny of how public money is being spent.
- have suitable controls in place to manage the issue and timely cancellation of purchasing cards
- review and approve purchasing card transactions in a timely manner
d. keep proper records of the review and approvals of purchasing card transactions and card cancellations e. regularly monitor and report on purchasing card controls to allow management to oversee usage and control effectiveness. The results of reviews should be documented and retained.” The City would like to reiterate that audit did not identify any instances of public funds being misused by City of Melville cardholders.
The City currently reports all credit card transactions to Council each month as part of the Accounts Payable report.
The use of credit cards by staff is guided by the City of Melville’s Credit Card Guidelines (reviewed 05/24), SP-019 Procurement Procedure (reviewed 01/25) and related work instructions.
Does the City agree with the recommendations? The City of Melville acknowledges the findings from the performance audit into purchasing card management and is committed to strengthening governance, compliance, and oversight. While the audit did not find evidence that cardholders misused public money, the City recognises the importance of continuous improvement in the management of its purchasing cards. Implementation of recommendations has commenced ensuring alignment with better practice principles.
The report mentioned credit cards being used to buy champagne or oysters – was this the City of Melville or one of the other audited Councils? The City of Melville did not have any findings related to the purchase of champagne or oysters.
The report mentioned credit cards being used on food and drink expenses – was this for staff and Elected Members? The majority of identified food and drink expenses were mostly associated with community and cultural events and not for staff or Elected Members, as some media reporting has implied.
How does the $1.3 million for credit and store cards compare to the City’s total expenditure? The City of Melville’s purchase card expenditure totalled $1.3 million, which represents just 1.5% of the City’s total contractor and capital expenditure.
Noting that there are some instances where purchase cards were the only feasible payment method.
What are the City’s policies around credit cards? The City has a Purchase Card policy and guidelines and is in the process of updating them to incorporate recommendations from the findings. Once the updates have occurred, all staff with credit cards or store cards will undertake training.
What actions will the City undertake following this report? The City has a Purchase Card policy and guidelines and is in the process of updating them to incorporate recommendations from the findings. Once the updates have occurred, all staff with credit cards or store cards will undertake training.
The report mentioned $665,559 was spent on general retail – what items or services does this typically include? Items grouped under "general retail" spending include operational and community service-related costs such as advertising, website management fees, library materials, emergency purchases, parking, and expenses related to the State Emergency Services. Store cards were included in the purchase cards audit, as such, the Bunnings purchase cards for facility and infrastructure
maintenance-related expenditure is also included in this category.