3.2 Use of Credit Cards *Employee resigned June 2018 The auditors observed that during the year the organisation  obtained five (5) credit cards each with a limit of P250 000,  effectively creating a P1.25 million credit facility. In accordance  with the Credit Card Guideline 7 (i) “credit cards must never be  used to purchase items for personal use or for non-work related  purpose even if the card-holder intends to reimburse the organisation”. The auditors, however, noted instances of personal use of the credit cards. While an attempt was made to  recover these funds, reimbursements by the respective employees were not timely as shown below: The auditors pointed out that high credit card limit may give  leeway to excessive spending and contravention of the procurement policy and thresholds as well as loss of organisation’s funds should employees default on payment or  where amounts are not recovered. In response management stated that they would act appropriately to ensure proper controls.  In response management committed to reviewing the procedures to ensure improvement of the processes.  A difference of P1.44 million was noted on the opening  balance between the fixed assets register and prior year  audited financial statements.   There was a monthly amortisation of fully impaired intangible  assets resulting in an over charge of P249 000 and an  incorrect amortisation method was used.  Leave provision made excluded temporary employees entitled to leave days. This resulted in an under provision of  P197 000. Month of Use Amount Reimbursement Date January 2018  3 041  Outstanding* September 2017  1 827  22 January 2018 October 2017  3 070  16 June 2018 195 