Montana Historical Society Financial-Compliance Audit for the Two Fiscal Years Ended .. 1996

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In addition, the museum program expenditures are understated and the preservation program overstated by $3,610 in fiscal year 1994-95.
Recommendation #1 We recommend the Society record historic preservation expenditures in accordance with state accounting policy.
Improper Expenditure State accounting policy states an expenditure abatement is a Abatements transaction that reverses an expenditure due to a nonroutine and nonrecurring reimbursement, refund, error or correction. The agencies do not
...receive appropriations for these costs. State policy requires an agency to record revenues and expenditures for services provided on a regular basis for the convenience of an outside party who later reimburses the agency for these costs. The practice of reversing, or abating expenditures can understate expenditures and revenues. The following examples are circumstances we identified where the Society inappropriately abated expenditures.
► During the audit period, the Society sponsored an annual competition for students.


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