Council boss' $900 meal bill slammed

On average, the cards accumulate spending of $163,500 a month. Photo / Thinkstock

Council warned of fraud over restaurant and booze spending.

An Auckland Council boss who splashed out more than $900 on restaurant meals and drinks on his work credit card has sparked a warning about fraud risks.

The spending on "staff entertainment" has prompted Audit New Zealand to issue the council with the warning after the two restaurant bills totalling $902.60 were uncovered.

One of the bills included $94 on alcohol, which Auckland Council says was "a mistake" and the officer has had to pay back.

When the Herald on Sunday asked about the spending, Auckland Council said internal processes should "remain confidential" but said the staff member had received a "reminder" about their responsibilities.

"The two instances were for a spend of $516 and $386.60, respectively, for restaurant meals as recognition of staff efforts.

"They were deemed appropriate and incurred under normal operations," said council group financial controller Francis Caetano.

"The issue was not the nature of the expenditure but the approval process by which the card was used.

"We discussed the issue with the approving officer's manager who also confirmed the appropriateness of the expenditure and has reminded the officer of council's P-Card [purchasing card] expenditure approval process."

Audit NZ warned the council breached policy and "presents a separation of duties, probity [honesty], and fraud risk".

Auckland councillor and member of the audit and risk committee, Cameron Brewer, slammed the spending breaches, saying the system lacked accountability and was inappropriate while ratepayers faced hikes. "This is a huge rap over the knuckles by Audit NZ," Brewer said.

"Auckland Council is funded by ratepayers who are getting stung another 9.9 per cent in rates.

"Spending $900 on restaurants may be fine in the private sector, but we're meant to be serving the public's needs first and foremost."

Council documents say there are 515 P-cards in circulation, with spending limits "normally between $500 and $2500". On average, the cards accumulate spending of $163,500 a month.

Audit NZ, which examines the public sector's use of money on behalf of the Auditor-General, says there is risk of fraud if spending is not scrutinised by someone independent of the person using the card.

Audit NZ's interim inspection report, for the year ending June 30, was an examination combing the "systems and controls" used by council to guarantee its financial information was accurate and "transactions are valid".

Stay safe with your work credit card

Misuse of a work credit card can lead to dismissal from your job and even legal problems. But Wellington employment lawyer Blair Scotland, partner of Dundas Street Employment Lawyers, says it's easy to stay safe by following a few simple rules:

• Read the rules you're signing up to.
• Avoid any personal expenses.
• Seek written permission if buying alcohol.
• Use a different PIN number to personal cards.
Own up to any mistakes.