Montana Historical Society Financial-Compliance Audit for the Two Fiscal Years Ended .. 2006

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This report section identifies areas where transactions recorded by the Society resulted in errors on the accounting records.
The Society receives Accommodations Tax revenues each year as directed by state law. The Society records this revenue within the Grants, Contracts, Donations and Abandonments revenue classification. Per state accounting policy, this revenue should actually be recorded as an Operating Transfer-In within the Other Financing Sources revenue classification. As a result, the
...Grants, Contracts, Donation and Abandonments revenue classification is overstated and the Other Financing Sources revenue classification is understated by $621,017 in fiscal year 2004-05 and $625,703 in fiscal year 2005-06.
Improper Expenditure Classification The Publications Program within the Society incurs printing costs related to the magazine and various books it prints and sells. These printing costs were not recorded consistently during fiscal year 2005-06. Some of this activity was recorded in the Other Services expenditure classification, while some was recorded in the Goods Purchased for Resale expenditure classification.


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