New York City Comptroller John Liu said Verizon has agreed to pay the city $1.4 million in additional fees to the city after an audit by his office found that the company "significantly underreported" revenue as required by its cable franchise agreement.

Verizon must pay the city a franchise fee of 5% of gross revenue as part of its agreement to deliver cable service citywide. The 12-year non-exclusive agreement, through the Department of Information Technology and Telecommunications, began in 2008.

"I'm pleased that Verizon has agreed to pay up," said Liu, whose four-year term will end Dec. 31.

The audit found that from July 2008 to June 2013, Verizon understated advertising revenue on its quarterly reports to the city by about $28.2 million, resulting in underpayment of $1.41 million in franchise fees owed.

Specifically, the audit found that Verizon understated $17.1 million in advertising commissions that it should have included in gross revenue and did not report $11.1 million in foregone revenue from the value of advertising retained for its own use.

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