How did this happen?

Read the article here: Secretary Accused Of Using School Money To Shop

I am completely confused as to how a school credit card would not be watched by the company issuing for purchases like this? I mean, maybe the furniture could get by, but not the Victoria's Secret stuff. Shouldn't there be some sort of special flags placed on cards that go out to entities like this? In my opinion the same thing should have happened with the Katrina stuff, but obviously nobody thought that one through either.