“The results of the survey should concern Ohioans because we don’t have enough controls on this plastic, and we collectively are on the hook for the debt,” he said.
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The survey also revealed that some entities don’t segregate credit card duties, allowing one person to both make purchases and reconcile the accounts. That leaves the door open for theft, Yost said.
In fact since 2011, more than $1.2 million has been stolen or misspent from Ohio governments through credit card abuse.
Yost's report includes an interactive map of recent theft cases.
On that list were illegal expenditures by Director Kecia Williams from the now-closed General Chappie James Leadership Academy in Jefferson Twp. totalling more than $5,900; and $541 in undocumented debit card purchases uncovered at Watkins Academy in Dayton, which did not have any formal policy in place to govern debit card use.
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In Butler County, the list of credit card incidents included more than $7,000 in personal spending on the Oxford Visitors and Convention Bureau’s credit card uncovered in 2012 and several findings for recovery against St. Clair Township totalling $1,285.
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In announcing the survey findings, Yost also voiced his support for House Bill 312, introduced Wednesday by State Reps. Kirk Schuring (R-Canton) and Dave Greenspan (R-Westlake). The bill would:
Require all government entities to enact a credit card policy detailing allowable uses, number of cards, who can use them, credit limits and reissue periods.
Require for some governmental entities, that accounts and policies be reviewed regularly by an appointed compliance officer other than the treasurer of the government entity.
Ban the use of debit cards, except for certain law-enforcement purposes.
Authorize the Auditor of State to create rules for the disclosure and audit of credit-card rewards accrued by local governments.
Yost said debit cards are not a best practice for local government entities.
“There really isn’t any reason for any government to be having access to cash through a debit card,” he said, with the exception of some law-enforcement operations.
The sponsors of the bill would also like to see local governments keeping lower limits on credit cards.
“We found a couple governments that had more than $1 million credit limits,” Yost said. “Imagine finding on the street a credit card with a $5 million limit?”
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