NCJ Number
68239
Date Published
1978
Length
27 pages
Annotation
RESULTS ARE REPORTED FROM AN AUDIT OF THE MASSACHUSETTS CORRECTIONAL INSTITUTION, FRAMINGHAM, FOR THE PERIOD JULY 1, 1977, TO JUNE 30, 1978.
Abstract
THE AUDIT WAS MADE IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS, AND, ACCORDINGLY, INCLUDED SUCH TESTS OF THE ACCOUNTING RECORDS AND OTHER AUDITING PROCEDURES AS DEEMED NECESSARY UNDER THE CIRCUMSTANCES. THE MASSACHUSETTS CORRECTIONAL INSTITUTION MAINTAINS ITS FINANCIAL RECORDS ON THE BASIS OF ACCOUNTING PRACTICES PRESCRIBED BY THE COMPTROLLER OF THE COMMONWEALTH. THESE PRACTICES DIFFER IN CERTAIN RESPECTS FROM GENERALLY ACCEPTED ACCOUNTING PRINCIPLES; THE PRINCIPAL DIFFERENCE IS THE MAINTENANCE OF THE COMMONWEALTH'S ACCOUNTING SYSTEM ON A MODIFIED CASH BASIS. PROVISIONS ARE MADE FOR UNPAID OBLIGATIONS ONLY TO THE LIMIT OF THE APPROPRIATION IN EFFECT; WHEREAS, GENERALLY ACCEPTED ACCOUNTING PRINCIPLES REQUIRE THE ACCRUAL METHOD OF ACCOUNTING. 'OPERATING STATMENTS--INDUSTRIES,' WHICH INDICATE THE FINANCIAL CONDITIONS OF THIS AREA OF OPERATION, WERE NOT PREPARED FOR JANUARY 1978 TO JUNE 1978, SO AN OPINION CANNOT BE EXPRESSED ON THESE STATEMENTS. WITH THE AFOREMENTIONED EXCEPTION, THE PROVIDED FINANCIAL STATEMENTS PRESENT FAIRLY THE ASSETS, LIABILITIES, AND FUND BALANCES OF THE MASSACHUSETTS CORRECTIONAL INSTITUTION FOR THE TWO FISCAL YEARS ENDED JUNE 30, 1978, AND JUNE 30, 1977, IN CONFORMITY WITH THE COMMONWEALTH'S ACCOUNTING SYSTEM AND ON A BASIS CONSISTENT WITH THE PRECEDING YEAR. (AUTHOR ABSTRACT MODIFIED)