Accept and instruct the Clerk of the Board to file the audit of the Procurement Card Program for the period of July 1, 2025 - December 31, 2025. (Fiscal Impact: None, Discretionary)

This report details the audit of Napa County's Procurement Card (P-Card) Program for the period of July 1, 2025, to December 31, 2025. The audit found that P-Card usage generally complies with the County's Purchasing Policy and P-Card procedures. The program facilitates efficient acquisition of goods and services, utilizing a VISA purchase card through a State of California leveraged procurement agreement.

Key Findings and Recommendations:

• Compliance: P-Card usage was found to be in compliance with the County's Purchasing Policy. Exceptions noted during testing were promptly addressed.
• Expenditures: Total purchases through the program during the review period amounted to $354,951. The largest spending categories were Hotels (37%), Business Expenses (28%), and Airlines (10%).
• Risk Mitigation: The audit identified attempted and declined charges on a former employee's P-Card, indicating potential issues with automatic renewal of subscription accounts. To mitigate this risk, the audit recommends a formalized, time-bound review process when a P-Card is closed to ensure recurring charges are updated or discontinued. Reinforcing guidance on monitoring recurring charges in training was also recommended.
• Training: Biennial training for cardholders was conducted in May 2025.