Richmond cancels nearly 80% of employee purchasing cards, prepares to reinvent entire system
VENN
RICHMOND, Va. (WRIC) -- The City of Richmond has cancelled nearly 80% of its employees' purchasing cards, or p-cards, as it prepares for an audit and complete redesign of its procurement system.
On Wednesday, April 30, Richmond announced that it would be ending the use of p-cards by most city employees while the p-card program is reset. These cards are designed for work-related purchases -- and they are no stranger to controversy, including nearly $500,000 in tax revenue being misspent via p-cards.
As of May 9, an initial reset has been performed on the system, per the city. This involved shutting down 79% of its p-cards, leaving only 67 of 320 still usable.
These remaining 67 cards will have their use restricted during the program reset. Such restrictions include:
- Only p-card purchases "where public health, safety and critical services would be disrupted if not allowed," or "where no other payment option exists," will be permitted.
- Employees are not to use p-cards for travel expenses or to purchase items from Amazon.
- Employees are not to use p-cards on food purchases unless they are "mission-critical, citizen-supporting programs," such as summer food programs or after-school programs.
Additionally, department directors will no longer be issued p-cards. This will allow directors to "better focus on approval of purchases," the city said.
Over the next two to three months, the city's Department of Procurement Services (DPS) will "reevaluate and redesign" the p-card system.
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It will make said changes based on the findings of two different investigations: an audit performed by the City Auditor and an independent assessment carried out by the NIGP, or the Institute for Public Procurement.
Using those recommendations, the city will "begin revising city procurement policies and procedures and will train staff on proper implementation and use."
"The City of Richmond will continue to update the public as progress is made towards a new and improved p-card infrastructure," the city said.
