Some RPS p-card charges may be distorted to “disguise unauthorized charges”

RICHMOND, VA. Richmond Public Schools’ auditor is scrutinizing the district’s use of purchasing cards (p-cards), which are essentially credit cards issued to employees that they can use to facilitate smaller purchases.

While auditor Doug Greff noted that the program’s overall controls are effective and efficient, he also found several weaknesses. Graeff presented his initial findings to the school board on Oct. 18 in an email obtained by CBS 6 through a public records request.

Total annual p-card spending across the division rose from $636,000 in 2020, impacted by the pandemic and virtual school, to $2.7 million in 2024, according to data he provided. More than half of all p-card spending went to training and office supplies.

However, Graeff noted that some employees do not properly record their purchases, either in an attempt to avoid going over budget or to cover up unauthorized expenses. Sometimes, he said, transaction amounts were split into at least two different transactions to avoid procurement controls.

For example, the auditor found:

• $5,500 for food was charged as office supplies
• $5,000 for food was billed as staff development
• The $2,200 in food had separate receipts
• 250 chicken dinners were written off as office supplies
• Two shrimp dinners were paid for as study materials
• One employee used a p-card to top up a personal Starbucks account

Graeff noted that while RPS recorded $193,000 in “meals and meetings” on its p-card spending statement over the past five years, trade category codes indicate that RPS spent $1.5 million on meals with various vendors during the same period of time.
Anne Forrester, an RPS teacher and president of the Richmond Education Association, said making sure all tax dollars are well spent is critical, given that many teachers have to dip into their own pockets to fund classroom needs.

“We are often told by high-level administrators in central office as well as politicians that there just isn’t enough money, so to see that money is not being used responsibly in some of these p-card cases is really disappointing,” Forrester said. .

RPS representative Alyssa Schwenk said the annual p-card spend is less than 0.05% of the total budget, and questionable purchases flagged by the auditor are even less.

“As far as the administration’s next steps, we will follow the procedure of waiting until the Board has had an opportunity to review the project, the auditor has had an opportunity to complete his report, and we will follow the guidance and recommendations of the Board to ensure that we have strong, clear and strict procedures,” Schwenk said.

The auditor noted that the p-card program’s current staffing is insufficient to effectively manage transactions. Schwenk said one employee from the procurement group is responsible for working with the p-card program.

Some of Graff’s other initial findings included:

• The procedures and instructions for the p-card need to be updated
• The p-card violation procedure is too lenient
• Multiple cards were issued to individual schools and departments, increasing the risk of fraud or theft
• Travel expenses are difficult to track

“I would be in favor of any transparency and just more organized and streamlined processes with more oversight,” Forrester said.

CBS 6 is eager to share the community’s thoughts on this important topic. Email your thoughts to the CBS 6 Newsroom.

: CONTACT US

Facebook|Instagram|X|Threads|TikTok