A manufacturing company experienced a system failure that lasted more than 24 hours.

A manufacturing company experienced a system failure that lasted more than 24 hours. The company did not have any contingency plans in place and as a result the cash manager was unable to process the following payments:

P-card issuer: $25,000

Payroll: $125,000

Bond interest payment: $200,000

Vendor payments: $260,000

Utilities: $50,000

The cash manager does not have a way to confirm the receivable amounts deposited at the bank. The suppliers are threatening to stop shipments due to the delay in payment and the loss of supplier shipments would threaten the company’s just-in-time production. What concern should the company have?