For organizations looking for ways to tighten their budgets and discover areas of overspending, hiring a professional to perform a recovery audit can be highly beneficial. One Florida school district recently gained insight into its own accounting shortcomings by using audit solutions, a discovery that may allow it to perform more cost-effectively in the future.
According to the Bradenton News, the Manatee County school district requested a recovery audit to uncover the source of a $3.4 million budget deficit. What experts unveiled was "significant deficiency" when it came to bookkeeping. Auditors found that accountants had failed to record expenditures related to everything from new programs to salaries, and that the district did not have an established schedule for using audit solutions to catch budgetary discrepancies. With no one accurately recording transactions or checking the books, overspending spiraled out of control.
Bay News 9 reported that Karen Carpenter, the chair of the Manatee County school board, claimed in a February meeting regarding the deficit that she plans to update the system's accounting programs, hire more staff to work with the budget and require regular financial reports to be released for analysis.
A recovery audit can be a crucial step in an organization's path toward spending more efficiently and preventing problems from recurring.