CORPUS CHRISTI, Tx — On Tuesday, Sept. 24, the audit committee approved an audit into purchasing cards (P-cards) used by employees at the City of Corpus Christi.
That audit is expected to be complete in the first quarter of fiscal year (FY) 2024-25.
As 6 Investigates first reported, one month after KRIS 6 News requested public documents from the city, changes were made to the city's purchasing card policy.
KRIS 6 News first requested documents from the city in July, and then again in August and September. An analysis of those documents revealed the city spent over $44,000 on eating out or ordering in, between Sept. 1, 2023, and July 31, 2024.
The City Auditor began investigating these purchases after KRIS 6 submitted its request for public information. A confidential report alleging misuse of these cards was also separately made to Gil Hernandez, chairman of the Audit Committee and City Council Member.
In addition to P-cards, the City Auditor is also reviewing purchases at the Corpus Christi Hooks and reimbursements made to City Manager Peter Zanoni.
Following the report published by 6 Investigates, the station received a tip that an analysis should be done of the check registers published on the city's website.Those documents reveal from FY 2018-19 to the first seven months of FY 2023-24, money spent on "food and food supplies" has nearly tripled.
In FY 2018-19, the city spent $104,693.02 on these purchases. From October 2023 to May 2024, it spent $278,1106.39, or an average of nearly $40,000 per month on food and food supplies.
These totals do not include any reimbursements paid to Zanoni.
6 Investigates asked Zanoni how the city manages these expenses, with over 400 P-cards issued.
"I personally don't manage the P-cards so I can't personally answer your question, but each department has a director who is responsible for his or her budget," Zanoni said.
Ahead of Tuesday's meeting, the City Auditor released a memo, which showed significant gaps in the policy that did not address best practices.
"This is not a witch hunt in any way. We're trying to make sure we take everybody into account here and do this thing the right way and tighten up the policies," Hernandez said during the meeting.
Zanoni said that any recommended amendment to policies, such as who should review the City Manager's expenditures, should take into account other officials appointed by the City Council.
The City Council appoints the City Manager, City Secretary, City Auditor and municipal court judges.
"I think the policy should be considering all those. Who's going to look at the auditor's expenses?" Zanoni asked.
Zanoni said that his contract specifies the city finance department approve his expenditures and any change would have to be implemented by the council.
"Everything that (City Auditor) George (Holland) and his assistants reviewed, I think they will attest, it was done within the prescribed policies that existed at the time," Zanoni said. "So based on what existed, whether it's a council contract for the City Manager, or the then-P-card policy, everything was done correctly within the policies that existed at the time. What is not mentioned in the memo is that I've updated the P-card policy, once this review began."
"I just wanted to add for the record, the auditor's not saying anything was done out of policy. So, everything was done within the existing policy. Could they be improved? Absolutely. Was the chief financial officer approving everything I did? Absolutely," Zanoni added.
Some city council members commended Zanoni for amending the policy, while another said changes are still needed.
"We need to fix the policy, which we've started on that process, and then make sure we're following the policy," Hernandez said.
Several viewers have expressed concerns related to the types of restaurants visited, 6 Investigates asked Zanoni to respond to concerns of employees eating out at high-dollar restaurants.
"We recognize that and we want the public's trust and that’s why in our new P-card policy it sets prescribed limits or guides that weren't there before," Zanoni said. "So you can imagine an organization with 4,000 employees, unless we have clear direction, you know, things can be what’s perceived to be not right so in our new P-card policy we have prescribed limits and guidelines.”
