Finding Text
2025.002 RECORDING OF ACCOUNTS PAYABLE-REPEATFINDING Condition: Criteria: Effect: Cause: The City under-reported accounts payable as of June 30, 2025 in the amount of $947,618 which is material to the City's financial statements. In addition, $699,877 of the $947,618 was costs related to major federal awards programs with reporting requirements under the single audit act. All expenditures / expense~ should be recorded in the period the corresponding purchase/ service is incurred. The City's liabilities and expenditures/ expenses for 2025 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-reporting 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.