There are sometimes several aspects that can be overlooked when managing city finances. However, this is not an excuse for a plethora of discrepancies to appear within records. Such was the case for the town of Petoskey, Michigan, after an accounts payable audit revealed that there were several instances of misappropriation.
According to the Petoskey News, a recent investigation into the municipality's finances uncovered many errors and a lack of proper oversight. The news source reports that Petoskey failed to implement a set of expected fiscal guidelines and practices, which led to several mistakes. Steps are now being taken to fix the problems uncovered by the investigation, including the development of policies that deal with which city employees can approve payments and sign checks. Petoskey will also be making changes to its current payroll processes in order to maintain accurate tax records.
The source states that on the other hand, the audit also revealed that the city had performed well with other financial aspects, as it had been putting aside some funds to deal with economic uncertainty.
Businesses, organizations and municipalities can use AP audits to look further into their finances and discover any evidence of misappropriation.