Failing to maintain accurate control and oversight of finances can severely hurt any organization or business. The town of Sun Valley, Idaho, landed itself in some hot water after an accounts payable audit revealed that it was not exercising appropriate financial procedures over its funds, which led to a variety of errors and overspending.
According to the Idaho Mountain Express, the AP audit found that while Sun Valley had written accounting procedures that were supposed to be put in place, town officials failed to carry out those processes between 2008 and 2011. The audit revealed that more than $23,500 worth of unauthorized charges were made on the Sun Valley Fire Department's credit card, including snowmobile repairs and shoe purchases for the fire chief and his son.
Also revealed in the AP audit was evidence of EMT firefighters recording more hours than they had worked into the department's log, reports Boise Weekly. The investigation also found that officials did not have the oversight needed to maintain the town's finances.
"During the course of the investigation we discovered that certain individuals responsible for reviewing and approving expenditures at the department level refused to sign off on the [expense reports] because they did not believe certain expenditures were appropriate or related to City of Sun Valley business," the audit report stated. Not withstanding, those expenditures were processed and approved for pavement without sign-off by the department head or department manager."