Department of Institutions, Eastmont Human Services Center, Financial-Compliance Audit for the Two Fiscal Years Ended June 30, 1986 1986

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Legislative appropriation is required to spend from this fund.
Trust and Agency Fund - accounts for assets held in trust as an agent for others. The major items accounted for in these funds by the center are resident accounts and the resident trust accounts.
Basis of Accounting The state of Montana utilizes the modified accrual basis of accounting which is described in the Montana Operations Manual.
Under the modified accrual basis of accounting, revenues are recognized when measurable and avai
...lable, and expenditures are recorded for valid obligations. A valid obligation exists when the U associated liability is incurred except for the following items whicii are also considered valid obligations under state accounting policy.
1. System development inter-agency or intra-agency service agreements and other professional service contacts may be accrued at the end of the fiscal year in which created.
2. Equipment expenditures may be charged against the fiscal year in which a purchase order has been issued.


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