Butkovitz Releases Report on Deficiencies from Audit of City’s Financial Statements


Audit Date: September 8, 2009

Audit Categories

  • Financial
Controller: Alan Butkovitz

Executive Summary


For Immediate Release:
Sept. 8, 2009

Contact: Harvey Rice
215-686-6696

Butkovitz Releases Report on Deficiencies from
Audit of City’s Financial Statements

Controller finds more than $2 billion in financial errors

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PHILADELPHIA – As part of the Controller’s FY08 audit of the City of Philadelphia’s basic financial statements, City Controller Alan Butkovitz today released a report of the significant deficiencies found as a result of that audit.

The inadequate reviews and approvals of financial statements by the Finance Office’s Accounting Bureau resulted in more than $2 billion in financial errors uncovered by the Controller’s Office.

“The result of misclassifications, understatements and financial errors can be very costly to the City if they are not properly monitored,” said Butkovitz. “I commend my staff for doing an exceptional job with discovering these mistakes.”

The audit also found seven of the City’s eleven component units failed to submit their reports to Finance by the due date resulting in delays to the financial reporting and auditing process.

Some of the reports other findings included:
• A review of the new Basis2 Water Billing System, recently released by the Controller’s Office, found various deficiencies and weaknesses with the system.
• Problems with information technology controls such in the areas of security administration, security monitoring and disaster recovery.
• Finance cannot properly maintain an accurate book value for many city-owned properties because land values for individual properties were not specifically identified.
• Finance’s Standard Accounting Procedures are out of date and many are not effective in safeguarding city resources.

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