Finding Text
2022.004 RECORDING OF ACCOUNTS PAYABLE-REPEAT FINDING Condition: Criteria: Effect: Cause: The City under-reported accounts payable as of June 30, 2022, 2023 and 2024 in the amounts of$673,150, $886,252 and $1,919,207 which are material to the City's financial statements. In addition, $1,200,327 of the $1,919,207 was costs related to a major federal awards program with reporting requirements under the single audit act. All expenditures / expenses should be recorded in the period the corresponding purchase/ service is incurred. The City's liabilities and expenditures I expenses for 2022 tlu·ough 2024 were understated by the above-mentioned amounts. The lack of training and over-sight of employees responsible for recording expenditures / expenses is the main reason for the under-repo1ting of accounts payable. Recommendation: Management should provide the necessary training and over-sight of employees responsible for recording accounts payable. View of responsible officials and planned corrective action: Management agrees with the finding. Management will ensure the employees with the responsibility over the recording of accounts payable are properly trained and supervised so that accounts payable and expenditures/ expenses are properly stated on the financial statements.