With the help of an accounts payable audit, it's possible to discover the source of budgetary problems. In some cases, careless accounting practices may result in issues such as duplicate payments, but in others, dishonesty could be the cause of missing money. In order to keep misconduct from escalating, leaders must use the right solutions to keep everyone responsible.
Recently, Big Bend Now reported that an accounts payable audit in Alpine, Texas, led to the firing of the City Manager Chuy Garcia. Investigators discovered that many employees were taking excessive payroll advances, totaling $123,015 in the 2012 fiscal year alone. The audit report noted that Garcia was unaware of the frequency of these transactions. Some city workers were also collecting money for overtime they had not actually logged.
"We found several instances where disbursements were processed by the accounts payable department even though there were no invoices, contracts or any other supporting documentation," the audit added, according to the news source. "We also noted that many transactions were processed without the proper review and approval."
Demand Media pointed out that fraud prevention is one of the most important reasons to conduct accounts payable audits. In one regard, the source explained, these measures can catch costly crimes, and in another, they can prevent them from occurring in the first place.