I read all 16 accruals. Nothing was recalculated against source documents, because the support references aren't in the folder. Total accruals are **$133,235.0** for December, against **$96,864.95** for November (up 37.5%).

## Needs action before sign-off

| ID | Issue | Suggested action |
|---|---|---|
| AC-14 | Coastline fuel surcharge ($6,310.20) is marked `invoice_received = Y`. It should be in AP, not accrued, so it may be double counted. | Check whether the invoice is already booked in AP. If so, remove the accrual. Also check that AC-13 doesn't already include the surcharge. |
| AC-16 | Inbound freight on year-end receipts ($6,330, up from $2,868) relates to pre-buy inventory. Freight on inventory purchases is normally capitalised into inventory cost, not expensed. | Confirm the account (2110) and the offsetting debit. Check that the receiving log supports the amount. |
| AC-06 | Racking repair ($7,600) is accrued on a PO, but a PO only shows the work was ordered. | Accrue only the portion of work done by 31 Dec. Also check whether the repair is capital or expense. |
| AC-07 | Design milestone ($5,400) has no support reference and has been open 2 months at a flat amount. | Get the PO or milestone evidence. Confirm the milestone was delivered by year-end. If not, release it. |
| AC-01 | Legal estimate has been flat at $12,500 for 7 months and does not reverse. | Get an updated fee estimate from Harlow and Finch, and true up. |

## Worth a quick check

- **AC-11**: The common area charge estimate is up 46% ($4,620 to $6,750). Compare it to the landlord's Q4 estimate.
- **AC-05**: Temp labour more than doubled ($4,214 to $9,843). The "last two weeks" basis fits, but check it against the timesheets and the rates.
- **AC-15**: Parcel costs are up 37% for only the last week of December. Confirm the manifest cutoff so the accrual doesn't overlap shipments already invoiced.
- **AC-02**: The audit accrual doubled to $18,000, which fits a second interim visit if it's cumulative. Check that it matches the engagement letter and that the November $9,000 reverses.

## Looks reasonable

AC-03, 04, 08, 09, 10 and 12 are within about 5% of November. They have support references and are tied to usage, contracts or schedules.

## Observations

- The freight accruals (AC-13, 14, 15) are each up 25–37%, which is consistent with December volume. They should still tie to the carrier logs.
- Only AC-01 is marked as non-reversing. Check that it is meant to be.

The five items under "Needs action" could together move the total by roughly $30,000 if they all change. I can draft follow-up requests to the owners (Dana Whitfield, Tomas Herrera and Elena Brandt) if you want.