I went through all 16 accruals in the file. They total **$133,235** at Dec 31: $90,534 in account 2100 and $42,701 in 2110. That's up $36,370 (+38%) on November. I found one clear error, several accruals with weak support, and a few large increases to check before close.

## Fix before close

| ID | Issue | Action |
|---|---|---|
| **AC-14** Coastline fuel surcharge, $6,310.20 | `invoice_received = Y`. Once the invoice is in, it should be in accounts payable, not accrued. This accrual will probably double-count the cost. | Check whether the invoice is already in AP. If it is, remove the accrual (or move it to AP). |
| **AC-07** Lanternfly Creative, $5,400 | It says the basis is a PO, but **no PO is referenced**. It's been open 2 months at the same amount with no invoice. | Get the PO and confirm the first milestone was actually delivered by Dec 31. If it wasn't, don't accrue it. |
| **AC-01** Harlow & Finch legal, $12,500 | Open **7 months** at the same estimate. It doesn't reverse and no invoice has come in. Law firms usually bill monthly, so the figure is likely out of date. At year-end the litigation itself may also need assessing. | Get an updated estimate from counsel (or the legal letter) and true-up the accrual. Assess the lease dispute separately for a possible contingent liability (ASC 450). |

## Questions on how the accruals were built

- **AC-11 Kingsley CAM, $6,750 (+46%).** It's flagged as reversing but has been open 3 months, so it's being rebooked each month with no invoice. The jump from $4,620 needs the landlord's Q4 estimate or reconciliation behind it, not just "LANDLORD-ESTIMATE".
- **AC-16 Tallgrass inbound freight, $6,330 (+121%).** This is freight on inventory bought early ahead of the January price increase. That freight should be **added to inventory cost**, not expensed. Check what the other side of the entry was booked to.
- **AC-02 Brightline audit, $18,000 (non-reversing).** Doubling is consistent with the note about a second interim visit. Confirm against the engagement letter that only work done by Dec 31 is accrued, and none of the year-end audit work that happens after it.
- **AC-06 Summit racking repair, $7,600 (new).** A PO only supports accruing if the work was done by Dec 31. Confirm completion. Also check whether it's a routine repair (expense) or an upgrade that should be capitalized.
- **AC-04 Northbeam licences / AC-10 Clearwater health premium.** Both are normally billed in advance. Check they aren't also covered by a prepaid balance or an invoice already in AP.

## Large increases to check against activity

- **AC-05 Palmetto Staffing, $9,843 (+134%).** Tie to the December timesheets. A peak-season jump is plausible, but it more than doubled.
- **AC-13 / AC-15 freight, +25% and +37%.** Check against December shipping volumes in the carrier log and parcel manifest.

## Look fine

The accruals for utilities, telecom and waste (AC-03, 08, 12) moved 1–6%, in line with normal usage. AC-09 loan interest went down slightly, which is what you'd expect as the loan is paid down.

**Exposure if the clear problems are confirmed:** about $11,710 is likely overstated (AC-14 plus AC-07). AC-01's $12,500 and AC-11's $6,750 could still change in either direction once updated estimates come in.

I haven't changed any data. I can draft the adjusting entries or a follow-up list for each owner if that would help.