Finding Text
MATERIAL AMOUNTS OF ACCOUNTS PAYABLE NOT RECORDED ON THE CITY'S BOOKS AT YEAR END Condition: The City did not record $1,327,314 of accounts payable owed by the City as of year end, of which $1,305,463 were related to major federal assistance programs. Criteria: Liabilities, accounts payable, should be recorded in the period the service is perfmmed or the asset is received. Effect: The City's financial statements reported accounts payable that were under-stated by $1,327,314. Cause: Newly hired personnel had not been properly trained or supervised during the time they were hired by the City. Recommendation: Management should ensure that accounting personnel obtain the necessary training in order to properly pe1form their duties and that they are properly supervised. View of responsible officials and planned corrective action: Management agrees with the finding. Management will provide the accounting staff with the amount of training and supervision they need to properly perform their duties.