Review of Procurement-Card Use at the Department of Public Utilities

This is a state audit report reviewing how the Department of Public Utilities used procurement cards, which are state credit cards for small, incidental purchases.

“In this performance audit, we examined DPU’s administration of its Procurement Card Program to determine whether P-Card transactions were properly documented and whether DPU’s P-Card process was consistent with the Office of the State Comptroller’s P-Card policy and procedures.”

The audit was done to see whether DPU’s procurement-card purchases were allowed, reasonable, properly documented, and followed state comptroller rules.

“Does DPU ensure that allowable, and compliant policy and procedures? procurement-card with the Office of (P-Card) the State purchases are reasonable, Comptroller’s (OSC’s) P-Card”

Procurement cards let state agencies spend public money quickly, so the public needs assurance that purchases are documented and follow rules.

“The Procurement Card Program, currently operated by Bank of America, allows state agencies to make incidental purchases of items (those that do not have to be competitively procured) with state credit cards.”

As a Massachusetts resident, this matters because DPU oversees utilities and public safety areas, and this audit says its reviewed card spending did not show reportable compliance problems.

“The mission of the Department is to ensure that utility consumers are provided with the most reliable service at the lowest possible cost; to protect the public safety from transportation and gas pipeline related accidents; and to ensure that residential ratepayers’ rights are protected.”

The auditor’s answer to both main questions was yes: DPU’s procurement-card purchases were compliant and properly documented.

“Does DPU ensure that there is proper documentation for P-Card purchases?”

The report does not list corrective actions or recommendations, because the audit did not find significant reportable noncompliance.

“The audit revealed no significant instances of noncompliance that must be reported under generally accepted government auditing standards.”

DPU made 138 procurement-card transactions totaling $41,581 during the audit period, and the audit found no significant reportable rule violations in the reviewed program.

“During our audit period, DPU made 138 P-Card transactions, totaling $41,581.”

A P-Card is a state procurement card, basically a state credit card for certain small purchases; MMARS is the state accounting system used to process payments; OSC is the Office of the State Comptroller, which sets P-Card rules.

“Payments for P-Card purchases are processed in the Massachusetts Management Accounting and Reporting System, the centralized state accounting system that is used by all state agencies and departments for processing all financial transactions.”