Company credit card misuse

sassyblue

idea wrote: »

As an auditor myself, I am slightly worried by some of the advice you have been given here. What your sister needs to do in the first instance is look at the agreement that should have been set up between her and the company for her to get her the credit card. What does this specifically say - for example does it allow others to use the card in her name - most sensible companies say that the card is used for a sole person and giving/allowing the card to be used by someone else in entirely unacceptable. If such an agreement is in place then your sister needs to think very carefully about what she is to do, as it will be her and not her boss that has broken the usage agreement if this sort of thing is

Either she leaves the company and works somewhere where her 'ethical stance' is matched,

Good idea to look up the agreement l never thought that far back. As her boss signs off the expenses though surely that is part of the agreement otherwise why does he do it?

Leaving isn't going to get her out of potential trouble though is it ( if the worst happens) auditors would still go back to her.

idea

minimoneysaver wrote: »

'Idea' is it right/wrong that she has the credit card registered to her own address?

It's best practice for correspondence to go to the place of work and not to home address.

idea

In response to Sassyblue, if the OPs sister keeps records that she has told a person in a position of "power", then realistically the auditors cannot do much if anything, particularly if the boss has signed off the statements.

It is usual in companies for someone in finance to check all the transactions to make sure they're ok, so I would be wanting that bit explained to me, rather than the actions if someone who's been forced into a bit of a dodgy situation!

Hope this helps

Idea x

mountainofdebt

sassyblue wrote: »

But holidays CAN be put through as expenses if you have customers or suppliers where you've holidayed and can prove it was business related. I.e you were looking for a new cheaper supplier, you went to buy stock or were meeting the customers to build up a working relationship to hopefully gain more work.

Plus as l said it can be found out who the holiday was for, and what passports were used.

Technically she's in the clear but if the people who enjoyed these benefits can't prove themselves it will be interesting to see how much they blame her. For instance, they could say they gave her cash for the stuff she put through on the credit card hence a long trawl through her own financial affairs to prove her innocence, bet she never thought of that.

Ultimately it depends on if the company's sold or goes into receivership. But either way there'll be some going through finances...
Is it worth it?

But as I read it this card is in the name of the sister and not the name of the Company with the sister as cardholder - if you see the difference.

If its the former then the OP is right to be worried - any debt is considered to be hers, regardless of who spent what on whatever.

Mulberry_bush

idea wrote: »

In response to Sassyblue, if the OPs sister keeps records that she has told a person in a position of "power", then realistically the auditors cannot do much if anything, particularly if the boss has signed off the statements.

It is usual in companies for someone in finance to check all the transactions to make sure they're ok, so I would be wanting that bit explained to me, rather than the actions if someone who's been forced into a bit of a dodgy situation!

Hope this helps

Idea x

problem is she has no records of anything said! This boss is a director in the company and no one questions his expenses, cant do as this is a UK based co with only UK customers but there are tickets for flights to West Indies, Ghana etc. Expenses for setting up a new office, including outfitters etc - they all know he is doing it but the CEO has questioned him and he denied everything and CEO believes him! CEO is in his late 70s and not up to running a company!
I know this guy will make sure he is covered and my sis will be left high and dry!

Mulberry_bush

mountainofdebt wrote: »

But as I read it this card is in the name of the sister and not the name of the Company with the sister as cardholder - if you see the difference.

If its the former then the OP is right to be worried - any debt is considered to be hers, regardless of who spent what on whatever.

have emailed sis this link and asked her to check the advice - hopefully she will see sense.

Savvy_Sue

Our company credit cards all have our name and the company name on them - does this one, or just her name?

When first set up, statements are sent to the home address, but we get staff to change that so that they arrive at work in future. That makes it easier for deliveries, apart from anything else. Could be sensible to do that.

burnoutbabe

Its not fraud you can report to the police, I'd be discussing with finance, finance people who process the expenses are mostly interested in people claiming stuff that isn't correct.

But, if the boss wants to sign it off and pay for it, then you have a P11D issue, as the chap is getting benefits and not being taxed on them. So thats an angle to go for. Its FINE for the company to pay for stuff if they want to, as long as the right tax treatment is followed.

afser02

You can send a mail with this forum topic link and she will concerned about this matter, My sense.

Funky_Bold_Ribena

Mulberry_bush wrote: »

She owns a company credit card -which is in her name and statements sent to her home.

When you say it's in her name and the statements are sent to her home...is this in the company name and she is just the named user or is it really actually in her name?

If so I'd cut it up and insist on a company one. This is not the way things are done!