'Concerns' over Oxford council staff cards

A two-year backlog in approving payments was discovered by auditors at Oxford City Council

Concerns have been raised by auditors about payment cards issued to Oxford City Council employees.

They found a two-year backlog in transactions being reviewed and approved by managers.

The report also said there was no up-to-date record of card holders, increasing the risk of fraudulent activity.

Oxford City Council said that no instances of fraud had been identified and said it had "significantly reduced" the amount of unapproved spending since the audit.

In total £1,493,529.42 was spent on the cards in the past financial year.

They were issued to employees for council-related expenditure, with a spending limit ranging from £500 to £35,000.

Five cards were issued with the upper limit, which related to Housing Services due to the requirement to house people in hotels when other suitable accommodation was not available.

The report said the authority's Payments Team Leader had "acknowledged that these limits are high and a review of the need for this value should take place".

Auditors also found that transactions totalling £145,217.46 made between 2022 and 2024 had not been "submitted and/or approved" on an online system.

It said this backlog had since been reviewed by the Senior Payments Officers, but more than £39,000 was still outstanding.

Meanwhile, it was found there was "no process" for identifying employees leaving the council who could still hold and use a card.

The report said that no instances of leavers still holding a purchase card were identified during the review - but warned that not having an up-to-date record increased the risk of fraudulent activity.

In a statement, Oxford City Council said: "Following an internal audit, the Council confirms that no instances of fraud were identified, and all payments were correctly recorded in the Council's financial systems.

"The audit highlighted a need for improved management oversight of individual transactions.

"Since then, the value of unapproved spend has significantly reduced and continues to decline month-on-month.

"In response, the Council has fully implemented all recommendations to strengthen purchasing card governance.

"A revised policy has been introduced, clearly outlining roles, responsibilities, and consequences for non-compliance."