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<br />Sample Government, FLORIDA <br /> <br />SCHEDULE OF FINDINGS AND RESPONSES <br /> <br />FISCAL YEAR ENDED SEPTEMBER 30, 2009 <br />(Continued) <br /> <br />I. CURRENT YEAR COMMENTS AND RECOMMENDATIONS (Continued) <br /> <br />Views of Responsible Officials and Planned Corrective Action <br /> <br />The entity's capital assets include land, equipment and buildings with an historical cost of $2,6 billion <br />and more than forty thousand individual records. We have determined that the tables associated with the <br />report writer were incorrectly configured. This error caused the duplication of costs at each charge-point <br />for those assets whose costs were split among funding sources. The condition caused an overstatement of <br />historical cost and accumulated depreciation. An adjustment was made to reconcile the detail records <br />with the general ledger and software which remedies this condition and incorporates many efficiencies <br />has been acquired and is being implemented. <br /> <br />2009-02 Revenue Recognition <br /> <br />Criteria <br /> <br />All agreements that result in reimbursements should be scrutinized to ensure that revenue recognition is <br />appropriate. <br /> <br />Condition <br /> <br />In the 2008 fiscal year, a receivable and a capital contribution was recorded for construction costs <br />incurred that were to be reimbursed to the entity pursuant to an agreement with a cruise company. In the <br />2009 year, it was determined that these capital cost recovery charges will be paid as part of the guaranteed <br />minimum payments based on passenger movements, and accordingly, revenue should be recognized as <br />payments are received. As such, a prior period adjustment of approximately $5.4 million was recorded to <br />adjust the prior year receivable improperly recorded. <br /> <br />Cause <br /> <br />The cause was a misunderstanding ofthe final agreement and the reimbursement process. <br /> <br />Effect <br /> <br />The effect was that revenue was not properly recognized, <br /> <br />Recommendation <br /> <br />We recommend that the entity continue to recognize revenue related to this agreement based on passenger <br />movements and actual payments received. <br /> <br />View of Responsible Individuals <br /> <br />We concur that revenue will continue to be recognized based on passenger movements and actual <br />payments received. <br /> <br />2 <br />