I reviewed all 16 accruals in `data/accruals_2025-12.csv`. They total **$133,234.98**, up $36,370.03 (+38%) from November's $96,864.95. Account 2100 is $90,533.68 (up from $65,662.70) and account 2110, the freight accruals, is $42,701.30 (up from $31,202.25). I only had the CSV, not the documents it references, so these are review points rather than confirmed errors.

## Fix before close

1. **AC-14, Coastline Carriers fuel surcharge, $6,310.20.** The invoice is marked as received (it's the only one). If that invoice is already in accounts payable, this accrual counts the cost twice. Remove the accrual or move it to accounts payable.
2. **AC-07, Lanternfly Creative, $5,400.00.** This is the only line with no support reference, even though its basis is "PO". It has also been carried at the same amount for two months. Get the PO number and confirm the first design milestone was actually delivered by Dec 31.
3. **AC-01, Harlow and Finch LLP, $12,500.00.** This is the only accrual that doesn't reverse. It has been open for 7 months at the same flat estimate with no invoice. That suggests nobody has updated it:
   - Get a current figure from the law firm for fees incurred to date.
   - Separately, consider whether the lease dispute itself needs a provision or disclosure as a possible loss. That is a different question from the unpaid legal fees.

## Ask the owners

4. **AC-16, Tallgrass inbound freight, $6,330.00 (+121%).** Freight on goods coming in is normally added to the inventory's cost, not expensed. Check where the other side of this entry goes, especially with a large pre-buy at year end. Also confirm the goods were received, or legally became ours, by Dec 31.
5. **AC-06, Summit racking repair, $7,600.00 (new).** A PO alone isn't a liability. Confirm the repair was done by Dec 31. If it wasn't, this shouldn't be accrued.
6. **AC-02, Brightline audit, $18,000.00 (doubled).** The note says this is the second interim visit. The accrual reverses each month, so $18,000 should be the total of fieldwork done but not yet billed, not just December's work. Check it against the engagement letter and confirm nothing has been invoiced yet.
7. **AC-11, Kingsley common area charges, $6,750.00 (+46%).** This works out to $2,250 a month for the quarter, compared with $2,310 a month implied in November, so the amount looks reasonable. But it has been open for 3 months on a line that reverses each month, so get the landlord's latest reconciliation.
8. **AC-05, Palmetto Staffing, $9,842.60 (+134%).** Check it against the December timesheets. The increase is plausible for peak season, but it's the largest percentage jump.

## Looks reasonable

- **Utilities, telecom, waste, software licences, health premium and loan interest (AC-03, 04, 08, 09, 10, 12):** these moved between −1% and +6% month over month, and each has support listed.
- **Outbound freight (AC-13, AC-15), up 25–37%:** consistent with year-end volume. Fuel surcharge (AC-14) is 33.9% of Coastline freight in both months, so the rate is steady even though the double-count issue above still applies.

## Control note

Tomas Herrera owns 7 of the 16 lines, including all four freight accruals, and those make up most of the increase. Have someone else check those lines against the carrier logs and manifests.

The most urgent item is AC-14, because it's likely a straight double-count.