HAGÅTÑA (The Guam Daily Post) — The board of commissioners for the Guam Housing and Urban Renewal Authority approved an updated credit card use policy last week, following the recent audit from the Office of Public Accountability that found various unauthorized credit card uses at the agency or uses contrary to laws and regulations. The OPA, in its audit report, recommended corrective actions to improve internal controls for GHURA’s credit card program.
Commissioners unanimously voted to adopt the updated policy during a meeting Tuesday.
The resolution for the 2024 GHURA Credit Card Policy defines “authorized credit card use” as an ordinary, necessary and reasonable expense to properly maintain and operate an agency, which may include, but is not limited to, authorized training, travel, expenses, supplies, services, equipment and the emergency housing of residents.
The resolution further states that authorized credit card uses funded through federal grants and programs will conform to uniform administrative requirements for federal awards, as well as applicable local laws and regulations, while mandating that an internal audit on credit card utilization be conducted on a biennial basis.
Prior credit card policies adopted in 2015 are rescinded under the resolution, and any preceding policies otherwise not rescinded are replaced by the 2024 policy.
The OPA found various purchases were made contrary to GHURA’s prior credit card policy, as published Feb. 9 in a release of the audit report. That includes a $4,000 prohibited charge that was used to pay a 25% deposit for GHURA’s 60th anniversary brunch for a venue and meals at a local hotel held in December 2022, according to the OPA.
In addition to purchases contrary to GHURA’s credit card policies and procedures, the OPA found purchases contrary to Guam and federal procurement laws and regulations, as well as GHURA’s procurement policy.
The OPA also determined that an exception to the use of purchase orders in emergencies contained within GHURA’s credit card policy was contrary to Guam’s procurement laws and regulations.
“GHURA used the credit card for four samples totaling $4,000 to procure temporary emergency housing accommodations for its tenants due to electrical issues and major plumbing repairs. These transactions are considered an emergency under Guam procurement law. However, GHURA used the credit card before the purchase orders were approved for these transactions,” the OPA stated in its audit report.
Despite these findings, however, the OPA did not identify any indication of fraud.
The 2024 GHURA Credit Card Policy will become effective upon the promulgation, approval and publication of standard operating procedures by the executive director, according to the resolution.
“(SOPs) will go into details and provide very explicit guidelines that staff could read and follow. It’s about adding controls that are very easy to follow and build, even into the operation. So that it’s not solely dependent on one person who’s going to check everything. And if they leave or something … things kind of fall by the wayside,” GHURA Deputy Director Fernando Esteves said at Tuesday’s meeting.
The Guam Housing and Urban Renewal Authority office on Tuesday, July 11, 2023, in Sinajana.
