Audit exposes weak financial controls within city authority

A year-end review of the Water Pollution Control Authority serving Stamford, Connecticut, and the local area uncovered numerous deficiencies in its financial operations.

"It wasn't just one error or one problem that we noted," said Bruce Blasnik, a partner with the firm that conducted the outside audit, as quoted by the news source. "It was a number of errors that accumulated throughout the audit process and generally caused us to conclude that there's a lack of oversight and lack of accountability in the organization."

Auditors found a number of basic accounting mistakes in the authority's books. The high rate of error was likely exacerbated due to the fact that nobody at the WPCA understands the entire billing process, Blasnik notes. This made the authority vulnerable to duplicate payments and other inaccuracies – including an imbalance of more than $1 million in its accounts receivable bookkeeping.

Organizations looking to tighten their financial operations can start by instating a system of checks and balances and carrying out regular accounts payable audits

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