8286     ACCOUNTING FOR AUDIT ASSESSMENTS 
(Revised 2/99)

As a result of audit examinations, persons or other entities are often assessed amounts to be paid or returned to the State.  Some statutes and/or administrative procedures provide for a period during which the audit finding may be protested.  After resolving protests or after the protest period expires, the audit assessment becomes final.

Prior to their being final, audit assessments will be established in the accounting records as a contingent receivable as of the date the audit assessment is ready to be made known formally to the entity being assessed.  Such receivables will be fully deferred.  See SAM Section 8776.12. Upon being made final, audit assessments will be recognized as valid receivables.  If it is an abatement or reimbursement receivable, instructions in SAM Sections 8287, 10407 and 10408 will be followed.  Revenue receivables will be accrued in accordance with SAM Section 8290.4.