Department of Agriculture : Report On Examination of Financial Statements, Fiscal Year Ended .. 1979

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Assets and the June 30, 1979 Fund Balance in the Federal and Pri- vate Revenue Fund are understated by $28,719 as the result of a failure to accrue grant revenues. Accrual of grant revenues earned is required by generally accepted accounting principles and state accounting policy.
Because of the material effect of the matters discussed in para- graphs 4, 5, and 6 above, which are at variance with generally accepted accounting principles, in our opinion, the financial statements listed below do
...not present fairly the financial posi- tion of the Department of Agriculture as of June 30, 1979, or the results of its operations, or changes in its fund balances/retained earnings for the year then ended in conformity with generally ac- cepted accounting principles.
Statements Funds Not Fairly Presented Balance Sheet Federal and Private Grant Clearance Fund Revenue Compared with Revenue Estimates Agency Fund Expenditures Compared with Appropriations Changes in Fund Balance/ Retained Earnings Agency Fund Federal and Private Grant Clearance Fund Agency Fund 19 In our opinion, except for the effects of the improper cash cutoff discussed in paragraph 7 above, the failure to restate cash for nonpayroll no-warrant transfers discussed in paragraph 8 above, and the failure to accrue grant revenues discussed in paragraph 9 above, the General Fund, Federal and Private Revenue Fund, Earmarked Revenue Fund, and Agency Fund balance sheets present fairly the financial position of the Montana Department of Agriculture at June 30, 1979 in conformity with generally accepted accounting principles which, except for the changes in the method of restating cash and recording Hail Insurance accounts receivable as described in Notes 8 and 9 to the financial statements, have been applied on a basis consistent with that of the preceding year.


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