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Deferred revenue can be a critical component for a Criminal Justice agency, especially when it comes to the collection of fees for future services or programs. For example, a Criminal Justice agency might receive deferred revenue through grants intended for a large-scale community policing initiative that spans multiple fiscal years. These funds are received upfront, but the corresponding services, training sessions, and community outreach efforts occur over an extended period. Deferred revenue ensures that the agency can methodically allocate resources and manage the budget effectively as the program unfolds. Additionally, this approach allows for precise accounting, as the revenue is recognized only once the specific services have been delivered, ensuring compliance with financial reporting standards. By managing funds in this way, the agency can maintain transparency and accountability, which are crucial for public trust. Furthermore, having deferred revenue allows the agency to plan better for unforeseen circumstances or additional resources needed throughout the project's duration.