Butkovitz Audit Reveals $1.4 Billion In Financial Errors - DC Breaking Local News Weather Sports FOX 5 WTTG

Butkovitz Audit Reveals $1.4 Billion In Financial Errors

The Philadelphia controller's office has released the results of an audit into the city's 2011 financial statements that reveals gross financial errors to the tune of over $1 billion dollars, his office announced Monday.

Alan Butkovitz's "City of Philadelphia Report on Internal Control, Compliance and Other Matters for Fiscal 2011" revealed multiple oversights that included year-end tax errors and account receivable balances errors.

According to Butkovitz, "These misstatements occurred because the Revenue Department did not have written procedures to guide city accountants in the accurate determination of all year-end receivable balances."

He also laid blame on inadequate employee training.

"Neglecting to update the new method on a timely basis and communicating with departments contributed to the $1.4 billion in misstatements," said Butkovitz.

The Controller's Report on Internal Control Over Financial Reporting and on Compliance and Other Matters is based on an audit of financial statements performed in accordance with government auditing standards.