The Salt Lake County Auditor’s Office Audit Services Division recently completed an audit focusing on deferred revenue and pre-paid goods and services within select Salt Lake County agencies.
Deferred revenue represents money collected in advance for goods and services that have yet to be delivered. While it is a normal part of business operations, it comes with certain risks that require careful management. For example, in Salt Lake County, we collect funds in advance for things like gift certificates, venue rentals, memberships, and even permits for monuments and Farmer’s Market vendors. If these goods or services are not provided as promised, the county is obligated to either deliver them at a later date or refund the money. Failure to properly track and account for these obligations can lead to financial inaccuracies and legal challenges. This could erode public trust and potentially lead to financial shortfalls, affecting the county’s ability to fund other essential services.
The Salt Lake County Auditor’s Office Audit Services Division recently completed an audit focusing on deferred revenue and pre-paid goods and services within select Salt Lake County agencies.
Deferred revenue represents money collected in advance for goods and services that have yet to be delivered. While it is a normal part of business operations, it comes with certain risks that require careful management. For example, in Salt Lake County, we collect funds in advance for things like gift certificates, venue rentals, memberships, and even permits for monuments and Farmer’s Market vendors. If these goods or services are not provided as promised, the county is obligated to either deliver them at a later date or refund the money. Failure to properly track and account for these obligations can lead to financial inaccuracies and legal challenges. This could erode public trust and potentially lead to financial shortfalls, affecting the county’s ability to fund other essential services.