The town of Hillsboro, Kansas, has not been accurately logging payments in and keeping up with its financial records after an accounts payable audit revealed several discrepancies and lack of internal control with the accounting system.
According to the Hillsboro Star-Journal, the audit report stated that because of the small number of town employees, some were required to perform financial duties that they did not fully understand. While larger municipalities can afford to hire professionals who are trained on proper accounting procedures, Hillsboro does not have that option and therefore needed some staff members to undertake extra bookkeeping tasks. This could have led to the financial errors that were uncovered by the audit.
"We've identified one material weakness in that the accounts payable system is not hooked into financial statements," said accountant Bill Glazner. "There are also two significant deficiencies that relate to segregation of duties."
Marion, Kansas, is another town that received some criticism of its financial procedures, states the Marion County Record. An AP audit found that there was a lack of proper bookkeeping within its accounts payable records. The town failed to enter expenses on time and instead logged invoices when they were received.