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Pittsburgh Deputy Mayor details findings of P-card investigation

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PITTSBURGH (KDKA) -- Pittsburgh Deputy Mayor Jake Pawlak unveiled the Office of Municipal Investigations investigation findings into Parks and Recreation Director Kathryn Vargas' handling of a city purchasing card or P-card.

Mayor Ed Gainey called for the OMI investigation into the alleged offenses after misconduct accusations in May of this year.

It was originally alleged that a series of payments made to a contractor violated the city's P-card policy. 

The investigation found that claim to be false because the services provided by the contractor were 'non-professional' in nature, whereas the policy prohibits P-card payments for professional services, according to a media release from the City of Pittsburgh.

The series of payments did, however, violate the city's mid-year position request policy and the total amount of payments in 2023 exceeded the limit allowed by Chapter 161 of the city code without explicit council authorization, the release added.

The investigation also found there was no link between the contractor's hiring based on a prior relationship between the contractor and Director Vargas. 

The Gainey administration has determined that there should be immediate retraining on the city's P-card policy, additional supervision of the department's P-card transactions by the Office of Management and Budget for one year, and the recording of OMI's report in Director Vargas' personnel file to in the event of future violations of city policies. 

The Gainey administration believes the findings of the investigation do not warrant Director Vargas' termination.

"I know the passion, empathy, and thoughtfulness that Director Kathryn Vargas brings to the job each and every day. I know she regrets her error in judgment and is doing everything necessary to ensure that her actions and processes align with city policies.  Kathryn is a valuable member of the city staff and will continue her dedicated service to the people of Pittsburgh," said Mayor Ed Gainey. 

Director Vargas accepted responsibility and has undergone the required re-training on the proper usage and filing of the P-card transactions, city officials say, and all P-card transactions initiated by the department have been subject to additional review and approval by the Office of Management and Budget.

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