Butkovitz find weakness in city’s financial reporting process

The city has a system for handling its financial reports, and Controller Alan Butkovitz says there’s a good chance the process isn’t as effective as it could be.

“A material weakness is determined to exist when there is a ‘reasonable possibility’ that the process used to prepare a financial report will not prevent or detect and correct mistakes in the report on a timely basis,” reads a portion of the audit release Butkovitz’s office published today.

 

The audit found seven conditions  in Philadelphia’s Fiscal Year 2010 Comprehensive Annual Financial Report that contribute to the material weakness, including continued staff turnover, poor procedures to ensure accurate reporting of city receivables and insufficient procedures to make certain the City’s Water Fund is accurately reported.

Butkovitz said the audit uncovered $1.1 billion in errors the city ultimately corrected. You can read the full report here.