UU was `lax' over expenses

The university of Ulster showed a "surprising degree of laxity" in monitoring a credit-card scheme for paying the expenses of senior officers who travelled abroad, a report has said.

The Northern Ireland Audit Office report criticised controls on the use of the corporate credit cards - despite assurances given following a similar verdict two years earlier.

The cards had been made available to senior officers, deans and heads of administrative departments. Those using the cards could also use them to withdraw cash and travellers' cheques. Among the cases which caught the auditors' attention was one in which three duplicate claims for expenses had been made, and two payments. On other occasions an officer had bought computer equipment twice at an airport shop, in contravention of university procurement procedures.

The cards were used for restaurant meals and petrol for hired cars between campuses - even though these should not have been classified as emergency or unplanned expenditure. Also cited was the payment of subscription charges for membership of an air-miles scheme for two senior officers, even though they had not been authorised to join. The latest report was carried out in 1998. Officials examined transactions under the scheme, introduced in 1995 to pay for business expenses on trips abroad. Examining 28 sample payments, auditors found 16 payments made without any of the required documentation, including one bill totalling £2,823 sterling.

Eleven statements were paid without all of the required documentation and authorisation, though the university later assured officials that no fraud had taken place.

The auditor general said his findings were rendered "the more remarkable" by the fact that his central aim had been to check if concerns raised by his staff with the university in 1996 had been met.

"Overall, the results of this sample suggest that the card scheme was being operated with a surprising degree of laxity, both by users and by the university administration," he said.

The Northern Department of Education told auditors the findings were "a matter of grave concern", and said it found the university's failure to take effective action "extremely disturbing".

The report said the university had now responded "promptly and positively" to the findings.

A spokesperson for the university said it acknowledged there were, at the time, "weaknesses in the control mechanisms governing" the credit-card scheme.

"However, there was no misappropriation of funds at any time and this has been verified by the audit," he said.

"Following the report in 1998, new procedures were introduced and existing controls were strengthened."

Under the new measures, the cardholders' responsibilities have been clearly defined and "consequences for the cardholder of non-compliance stated. Cardholders now pay credit-card bills themselves and then reclaim from the university, and the number of cardholders has been restricted and the cards can no longer be used for cash withdrawals or purchase of travellers' cheques."

College news is compiled by Paul Tanney