The municipality does not record the cost of unused leave that employees have earned, only when the leave is actually paid out, which does not follow the required accounting standard.

Why It Matters

Recommended Actions

No recommendations are available for this finding yet.

Original Audit Finding Excerpt

"The Municipality recognizes expenses for accumulating compensated absences when these are paid (commuted or paid as terminal leave benefits). Unused entitlements that have accumulated at the reporting date are not recognized as expense."

Source Document