## December 2025 Accruals Review

I've reviewed the data. Here's an overview of key items and observations:

**Total December Accruals: ~$132,734** across 16 items

### Notable Changes vs November
Several items increased significantly in December:
- **Audit fees** (AC-02): Jumped from $9k to $18k for second interim fieldwork visit
- **Warehouse labor** (AC-05): More than doubled ($4.2k → $9.8k) for last two weeks
- **Facility repair** (AC-06): $7.6k new item for racking repair post-safety inspection
- **Freight** (AC-13, AC-16): Higher volumes and a pre-buy ahead of January price increases

### Items Requiring Attention
1. **AC-01 (Legal fees, $12.5k)** — Open 7 months, still on estimate basis, no invoice. This should either move to contract basis or be reviewed for timeliness.
2. **AC-07 (Catalog design, $5.4k)** — Open 2 months, only first milestone completed, no PO reference. Confirm remaining deliverables and timeline.
3. **AC-14 (Fuel surcharge, $6.3k)** — Only item with invoice already received; all others outstanding.

### Process Notes
- Most accruals are month-one with "reverses = Y", standard for usage-based items
- Good documentation: most items have support references and clear owners
- One audit note flags a second interim visit per engagement letter (validates the increase)

Are there specific accruals or variance areas you'd like me to dig deeper into?