Never provide company credit cards to your employees.
One of my turnaround clients, a geotechnical engineering firm had over 180 pick-up trucks for their employees to travel to the construction sites and road construction to do their engineering inspections and tests. The company issued gasoline credit cards to all the inspectors to purchase fuel and oil for the vehicles. The company never reviewed the invoices from the credit card vendor reporting the monthly purchases.
Upon my review, I found the following;
The employees were buying gasoline for the pickup trucks but not reporting the mileage from the vehicle during the purchase. By reporting the mileage each time fuel was purchased, the vendor’s software would report the miles driven and average mile per gallon of gas since the last purchase. This software was an excellent control for the company to ensure that the card was not being used to buy gas for the employee’s personal vehicles. Since the company did not enforce the employees to record their mileage, the control was useless.
Upon reviewing the credit card monthly statements from the vendor, I found employees were using the card to buy gas, oil, beer, candy, and food at the gasoline station when they were only permitted to purchase gas or oil only.
One employee bought over $4,800 of gas with the company credit card over a two month period. He was using the card to fill up his friend’s gas tanks of their personal cars and collecting the money from them.
Robert “Bob” Curry has turned around more than 70 businesses, both large corporations, and small businesses. He comes to your place of business or the site of your choice. The first consultation, of course, is at no charge. Bob Curry has a stellar track record of professional success and excellent formal education, including Masters Degrees in Taxation.
Bob published his first book “From Red to Black – A Business Turnaround – The Matter of ABC Shutters” that is on sale at Amazon.com.
Please read all my blogs at Fortlauderdaleceo.com.
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If you would like to comment on this article, my email address is Bob@ceorsc.com.
Bob resides in Fort Lauderdale, Florida, with his wife, Esther.