In order to maintain its financial health, any organization must take care to avoid making inaccurate payments. If companies fail to keep proper track of how much money vendors are receiving, it’s possible that duplicate payments will occur, potentially taking a toll on a business’ or project’s budget.
According to WTVW-TV, a recent audit revealed that the city of Evansville, Kentucky, experienced several errors that put its construction of the Ford Center over budget. The source reported that the city made 11 duplicate payments to contractors during the process, to address.
The Ford Center cost $128.2 million in total, the news provider noted, while the Evansville City Council had set a cap for the project at $127.5 million.
Account Payable Now and Tomorrow suggested that one critical step organizations must take in preventing duplicate payments from occurring is to use audit solutions regularly. Doing so at least once each year may be able to catch errors that have slipped by. However, the source advised that in addition to using these verification methods, it’s important to make sure financial operations are being well-managed at all other times as well.