Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Audit Adjustments topic
No spam. Unsubscribe anytime.
Auditor: wrong AR report inflated revenues; correction lowers reported utility revenues
Summary
The auditor told the finance committee that an incorrect accounts-receivable report and an accrual for unbilled revenues overstated utility revenues in the first draft; she said cash receipts were unchanged and the audit adjustment corrected the presentation.
The audit team flagged an accounts-receivable reporting error that inflated utility revenues in a draft of the financial statements. Jen Martinson said the initial report run from the accounting software included unbilled revenues and the wrong date ranges, producing an inflated revenue figure; after review the auditors removed the accrual and adjusted the receivables.
"It's the billed accounts receivable is what your residents truly owe you ... that's not changed. It's the pool for the unbilled piece that hasn't been billed yet," Martinson explained. She said cash-basis receipts are unchanged and the adjustment was an audit accrual correction, not a new cash shortfall. Committee members asked for the specific adjusting journal entry and the auditor said she would send it to staff.
Provenance: topicintro SEG 1031 ("it was related to an audit accrual adjustment that was based on unbilled revenues.") — topfinish SEG 1064 (auditor: billed accounts receivable unchanged).
