Finding Text
Internal Control Material Weakness – Restricted Revenue Recognition
Criteria: Management is responsible for implementing proper internal controls surrounding restricted
revenue recognition to ensure restricted contributions and satisfaction of restrictions are properly reflected
in the general ledger.
Condition: During our audit, we noted the Station failed to maintain proper supporting documentation for
restricted funding and satisfaction of such restrictions.
Cause: The Station did not have adequate internal controls in effect during the year to track restricted
funding and events satisfying the restrictions.
could lead to improper revenue recognition within the financial statements.
Recommendation: We recommend the Station implement an accounting process whereby all restricted
revenue and corresponding expenditures that satisfy restrictions are maintained and analyzed on a
continuous basis that allows for proper recording in the general ledger.
Management's Response: See Corrective Action Plan