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Auditors identify $126k in payroll adjustments and a $654,000 construction invoice needing reclassification
Summary
Auditors reported approximately $126,000 in adjustments for compensated absences and a $654,000 invoice that was recorded into construction in progress after it was received in May for services performed March 31; management agreed to the adjustments.
The auditor told the committee there were audit adjustments of roughly $126,000 related to compensated absences and a separate $654,000 adjustment recorded to construction in progress. "There were audit adjustments of approximately 126 ks related to the compensated absences," Dan Kinney said, and he added the $654,000 related to a single invoice that was received after year end but for services performed during the fiscal year.
Kinney clarified the $654,000 invoice "was for services performed as of March 31" but was received in May and therefore needed to be recorded in the prior period; management agreed to the adjustment. The auditor said he tests for unrecorded liabilities and looks for invoices received after year end that relate to the reporting period.
