Finding Text
Identification and recording of revenues and expenses Criteria Revenues should be recorded in the period in which they are earned. Condition The College did not properly record earned grant revenue and related deferred revenue liabilities. Cause Improper reconciliation and review of revenue and related deferred liabilities allowed expenses that had previously been included in the schedule of expenditures and earned revenue to be duplicated. Effect Total revenue overstated by $578,963. This was the combination of Title IIIB revenue overstated by $797,154 and related deferred revenue liability understated by the same and FUTURE revenue understatement by $218,191 and related accrued asset by the same. Recommendation We recommend the College review and improve its policies, procedures, and controls related to the account reconciliations and review.