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Home My WebLink Aboutincome handlingIncome Handling and Audit Procedures Revenues are anticipated to be generated from three sources. The following document briefly outlines accounting and cash management procedures necessary to establish the basis for an adequate level of internal control. This document is a high level summary document. Daily ticket sales A secure area should be established house the receipt of cash (as well as credit/debit cards) and disbursement of tickets (i.e. a ticket booth). A cash register system should be implemented that meets the needs of anticipated sales volume and complexity of transaction pricing (children, adults, senior citizen discounts, promotional coupons, etc.). Cashiers should be adequately trained. Ticket pricing should be clearly displayed to the public. The register system should be able to dispense pre -numbered tickets in each pricing category, these tickets should be presented to the steward when boarding. Cashiers should start their shift with a cash register drawer ("drawer") of change that has been counted by management and the cashier. Cashiers should not have access to each others registers or drawers during concurrent shifts. Cashiers should check out the end of their shift. Cashiers should reconcile the contents of their drawer (cash, credit/debit card chits, coupons, etc.) to the cash register tape (on print out, which is system dependent). Pre -numbered tickets, if not controlled by the register system, should be reconciled. A manager should review and approve both reconciliations. The sum of sales from all tapes (less coupons, etc.) should equal the cash on hand to be deposited at a bank. A bank deposit slip should be obtained. From a security point of view, cash might need to be deposited more than once a day. The deposit slip and register printout should be sent to the accounting department. Accounting should debit cash and credit sales based upon these documents for each day. Advertising revenue If advertising revenue is relatively large and arrives sporadically, accrual based accounting should be used to match income to the period it is earned for US GAAP financial reporting. If clients prepay for advertising, the check should be deposited at a bank (if not directly wired). For accounting, this generates a debit entry to cash and a credit entry to a deferred revenue balance sheet account. Revenue should be amortized to the income statement in an appropriate manner (i.e. $300 prepayment for a 3 month advertisement would prompt a $100 per month amortization to revenue). If clients do not prepay for advertising, they should be deemed to be credit worthy. An account receivable would be established and debited in an appropriate manner (and credit sales) over time. Accounts receivable should be reviewed on a regular basis by management for over due balances. If advertising revenue is not relatively large and US GAAP financial reporting is not a requirement, the enterprise might elect to use the cash basis of accounting to record advertising revenue. For income tax purposes, the method of accounting is elected. Special Event Rent Income Special events generally require a deposit made in advance. The client check should be deposited at a bank. Generally speaking, deposits should not be booked to the income statement until the underlying transaction is consummated at a later point in time. This type of deferred revenue is mainly the result of the contingent nature of a refund if the event is cancelled. If the deposit is non-refundable, income can be booked when the event is cancelled, or at the time the event happens. Fundamentals for good cash management and revenue recognition It is important to segregate responsibility in an enterprise. It is beneficial if cash management activities, accounting, operational employees and management are independent from each other, All revenue generating activities should have established processes to ensure that receipts are deposited to approved company bank accounts on a timely manner. Accounting should ensure and adequate audit trail exists and that banks accounts are routinely reconciled to the general ledger and other pertinent sub -systems. MAY-20-02 0T:14PM FROM-AKERMAN SENTERFITT • ....a.�v tat v.SLu.'nft. 11147.; rage 4 305-374-5065 T-067 P.64/05 F-593 r•; • t.- ••{:•.1. • •• • Itp rt i nt of finite Ade a S.. • •ik '1- _• . • I certify the attached is a true and correct copy of the Articles of Organization of 8KTUT BOMBING, LLC, a limited liability company organized under the laws of the atata of Florida, filed on Way 20, 2002, as shown by the records of this office. I father certify the document was electronically received under FAX audit number H02000140884. Thie certifi.oate is issued in accordance with section 15.16, Florida Statutes, and authenticated by the coda noted below The document number of this limited liability company is 1,02000012194. Given under my hand and the Great Seal of the State of Florida, at Tallahassee, the capital, this the Twentieth day of may, 2002 Authentication Code: 402A00032I83-052002-x02000Q12194-1/1 -- MP r crown ci —l! or• • - .: rzathsrfuz Awes iNerretarg afAbite `� woruce witmwl.lsovionts..cora . �..• wr . v.�ays .7U6 MAY-20-02 07:14PM FROM-AKERMAN SENTERFITT .71.4 oUkib -i bty±e ventures. Inc.; page 3 305-374-5005 T-967 P.03/05 F-503 Nay 20, 2002 SKYLIFl HOLDING, LLC C/0 STYLE VENTURES, INC. 1109 PONCE DE LEON BLVD. CORAL GABLES, FL 33134 FLORIDA ARPJLRTAMENT OP STATE Katharine Harris Secretary al8tate The Articles of Organieat.on for SMUT BOLDING, LLC were Paled on Way 20, 2002, and saa<igned document number L02000012194. Please refer to this number whenever corresponding with this office. In accordance with accticn 600.406(2), P.S., the name of this limited laabili.ty company is filed with they Rapartmaut of State tor public notice only and is granted without regard to any other name recorded lath the Aiviaion of Corporations. The certification you requested is enclosed. To be official, the certification for a certified copy must be attached to the original document number that was electronically submitted and filed under WAX audit number 02000140884. A limited liabil.i.ty annual report/uniform business report will be due Chia office between January 1 and May 1 of the year following the calendar year of the files date. A Federal Employer Identification (PET) number will be required before this report can be filed. Please apply NOW with the Internal Revenue service by calling 1-800-829-3676 and requesting form SS-4. Please be aware if the limited liability 'company address changes, it is the responsibility of the limited liability to notify this office. Should you have any questiona regarding this matter, please telephone (B5Q) 245-6051, the Registration Section. Trevor Rrumbl.ey Document Specialist Division of Corporations Letter Number: 4022600032143 Diviaion of Corporataone - P.O. Box 6327 .-Tallahassee, Florida 32314