Negative Message - Business Communications Essay examples

820 Words Apr 26th, 2011 4 Pages
To: | Executive Committee Members and Harold C. McBride | From: | Andrew M. Fisher, Senior Planning & Development Manager | Date: | March 15, 2010 | Subject: | Internal Audit Discovers $2.3 Million Error in Prior Cost Estimate Report |

Earlier this afternoon, our internal auditing department completed their quarterly examination of my division and notified me of a significant, material error that was discovered in the amount of $2.3 million. This multi-million dollar inaccuracy was found during the inspection of financial documents related to the “East Lawn Office Expansion and Renovation Project.” According to preliminary reports obtained directly from the internal auditors, the $2,300,000 error was found on a previously
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My errors and the reasons for each miscalculation are listed below: 1. One of my main errors within the previously released cost estimate report stemmed from my failure to correctly account for labor expenses associated with the “East Lawn Office Expansion and Renovation Project.” An error associated with capitalizing labor costs and failing to account for fringe benefits for certain eligible workers caused this error and contributed to the gross inaccuracy of the overall report. The root cause of this error was an incorrect formula in one of our company’s main databases that incorrectly tabulated and projected an erroneous figure related to the cost of labor. 2. Additionally, the price of construction materials in my previously released cost estimate report was estimated to be nearly 75% lower than the true fair market value of these same construction materials. These price estimates were received directly from our very own Building and Facilities Department. I contacted their Managing Director and he confirmed that this error was caused by a glitch in their system. 3. Furthermore, I discovered a grave miscalculation related to new software that was intended to upgrade and replace the existing software inside the East

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