Georgia Tech Takes Further Action on PCard Review

Institute requests assistance from State Attorney General.

The Georgia Institute of Technology announced today that it has requested assistance from the Attorney General of Georgia to collect evidence related to its continuing review of state procurement card (PCard) usage. This request comes after ongoing analysis identified additional deceptive activity.

"In May, Georgia Tech announced a comprehensive review of all PCard usage across the campus," said James Fetig, associate vice president for communications and public affairs. "We are extremely disappointed that a very small number of employees have violated the trust placed in them."

Georgia Tech initiated an intensive review of PCard purchases after the Georgia Department of Audits identified concerns at a number of units within the University System. One Georgia Tech employee was terminated on May 4, 2007, as a result of initial findings. The exact amount of PCard malfeasance can be determined only after the full review is complete.

As part of its effort to further strengthen its internal controls, the Institute has formed a team to develop additional management procedures for those who oversee PCard usage. Additional electronic measures designed to flag suspect purchases are also under evaluation.

Georgia Tech is insured against this type of malfeasance and will seek repayment of the stolen funds from those employees involved.

Georgia Tech employees are encouraged to report PCard waste, fraud or abuse at the Internal Audit anonymous hotline: 1-866-294-5565 or on the Internal Audit web site: www.audit.gatech.edu

PCards are widely used in business, government and higher education to provide significant cost savings over other purchasing tools. A Visa purchasing card is the Institute's primary tool for purchases of non-equipment, business related items. Cardholders must follow State and Georgia Tech purchasing guidelines. The PCard provides significant cost savings to Georgia Tech while providing electronic control and accountability. PCards may not be used for personal purchases. The Georgia Tech PCard policy is located at:
http://www.admin-fin.gatech.edu/business/purchasing/0500218.html