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Executive Summary

Introduction The North Dakota University System’s institutions utilize a MasterCard through J.P. Morgan Chase as a method for processing vendor transactions. The purpose of our audit was to evaluate certain aspects of the North Dakota University System’s purchasing card program. Following is a description of our audit objectives and a brief overview of our findings.

Objectives: 

• To what extent are North Dakota University System purchasing card policies uniform among its institutions and designed in accordance with best practices?
• In what ways can the North Dakota University System institutions maximize the financial benefits of utilizing the purchasing cards?

Findings

• Adopt Uniform Policy for the Administration of Purchase Cards
• Update Cardholder Application
• Adopt a Formalized Cardholder Training Program
• Formal Documented Training for Approvers
• Establish Policy to Prohibit Sharing of Cards
• Establish Policy to Define Violations and Consequences
• Assign MCC Groups based on Purchasing Needs
• Establish Process to Deactivate Cards of Terminated Employees
• Review and Audit of Transactions
• Consistent Recording of Cardholder Data

2019 Follow-Up

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13 Recommendations 

1 - Partially Implemented 

12- Fully Implemented