An accounts payable audit uncovered haphazard accounting policies in the New Jersey borough of Mountain Lakes, according to the North Jersey Record.
Timothy Vrabel of T.M. Vrabel & Associates – the company that conducted the audit – noted that bank reconciliations were not done on a scheduled basis, the borough's general ledger was not appropriately maintained and comprehensive records had not been kept.
"Utility and tax payments were left sitting around waiting to be deposited until they could be recorded in the ledger," Vrabel said at a recent council meeting, as quoted by the news source. "The good news is that nothing bad was going on. While there was some sloppiness, there was no improper accounting or problems with finances."
Vrabel blamed issues related to short staffing for the oversights, and recommended hiring a part-time accounts payable employee to organize and maintain the books.
Conducting scheduled AP audits can be a useful way of exposing any irregularities. Failure to carry these out on a regular basis can allow mismanagement to continue and miscalculations to snowball.