Tustin : City Manager to Run Credit Card Audit

After a special audit of the Police Department that cost the city $12,000, City Manager William A. Huston said his office will complete a review of expenses charged on city-issued credit cards by other departments.

Huston said it would be too costly for the city to hire outside auditors to complete the examination of other departments.

“I’ve reviewed the expenses a couple of times,” Huston said in an interview Monday night after the City Council meeting. “We can handle it ourselves.”

Huston said a preliminary review showed that credit-card charges made by five departments, excluding the Police Department, over a period of 2 1/2 years were less than $20,000. Those charges were mostly for travel, meetings and other business expenses.

The council ordered the audit last December after allegations that ranking officers in the Police Department were using city-issued credit cards for costly meals, gifts and other expenses, while some supplies were being rationed to rank-and-file officers.

Because of the allegations, all city credit cards were recalled, except those issued to the city manager and the assistant city manager.

Huston said that because of the allegations, top priority was given the Police Department audit. Diehl, Evans & Co., which conducts the city’s annual audit, was hired to conduct that phase of the review, and was paid $12,000, Huston said.

Council member Jim Potts, who has called for auditing all departments, said he sees no problem in the city manager’s office completing the review of credit card expenses.

In an audit report released last week, Diehl, Evans & Co. auditors found that the Police Department charged more than $36,000 from July 1, 1990, to Dec. 3, 1992. Of that amount, more than $14,000 had no documentation or receipts.

City officials have implemented policies to avoid unexplained expenses.