Michigan school district undergoes AP audit

October 14, 2011 The aim of the AP audit was to determine whether the district's financial crisis was caused by unintentional mismanagement or purposeful wrongdoing.

As part of a state criminal investigation, an accounts payable audit was recently conducted on the Covert school district in Southwest Michigan, according to the Herald Palladium.

The aim of the AP audit was to determine whether the district's financial crisis was caused by unintentional mismanagement or purposeful wrongdoing between 2007 and 2010.

Financial records, construction invoices, and other documents were analyzed as part of the audit. Although the findings must be kept secret because the state is conducting an ongoing investigation, Nancy Mullett of law firm Clark Hill – which was hired by the school to work with auditors and state officials – told the news source that some of the documentation was found to be missing or incomplete.

"There are some additional questions that the Michigan State Police want answered," detective first lieutenant Chuck Christensen told the news source. "We are interested in some of the transactions that took place. If we have evidence of a criminal charge, we are going to prosecute it."

Earlier this year, an AP audit uncovered financial mismanagement within career placement service Capital Area Michigan Works, according to the Lansing State Journal. Specifically, taxpayer money was found to had been used to fund country club memberships. 

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Category: Accounts Payable Analysis

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