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For additional compliance guidelines issued through SBOA Bulletins, please see this page.
ACCOUNTING AND UNIFORM COMPLIANCE GUIDELINES MANUAL FOR CITIES AND TOWNS
- Table of Contents
Introduction
Section A – Use of the System
Section B – Legal References
Section C – Definitions
Section D – Accounting Principles
Section E – Accounting PoliciesThe Accounting Plan and Procedures
Section A – General Provisions
Section B – Accounts Provided
Section C – Organization Units
Section D – Objects of Expense
Section E – Accounting Records
Section F – Chart of AccountsFunds
Section A – Definitions
Section B – General Fund
Section C – Special Revenue Funds
Section D – Debt Service Funds
Section E – Capital Projects Funds
Section F – Proprietary Funds
Section G – Fiduciary FundsCity and Town Court Funds
Forms
Section A – Prescribed and Approved Forms
Section B – Explanation of Use of Prescribed General Forms
Section C – Explanation of Use of Prescribed City and Town Forms
Section D – Barrett Law Forms
Section E – Explanation of Use of Barrett Law Forms
Section F – Illustrated Forms with Sample EntriesCalendar of Monthly Duties
Index
- Use of the System
The Uniform System of Accounts contained in this manual is for use in cities and towns and is prepared for use on either a single-entry cash basis or a double-entry modified accrual basis of accounting.
A double-entry modified accrual accounting basis has been prescribed and is available for use in all cities and towns.
Certain cities and towns may own electric, gas, water or wastewater utilities, the operations of which are presently accounted for on a double-entry accrual system of accounts following the manuals published by the National Association of Regulatory Utility Commissioners and adopted by the Indiana Utility Regulatory Commission.
Electric and gas utilities are divided into four classes, A, B, C, and D, depending on the amount of annual operating revenues. Water and wastewater utilities are divided into three classes, A, B, and C, also depending on the amount of annual operating revenues. The Uniform System of Accounts pertaining to any particular class may be obtained by contacting the National Association of Regulatory Utility Commissioners, 1101 Vermont Avenue N.W., Suite 200, Washington, D.C., 20005; www.naruc.org.
Classes A and B must use the double-entry accrual accounting system prescribed. Municipal utilities classified as C should use double entry accrual records if possible. Otherwise, it is permissible to continue using the simplified single entry cash basis forms.
The use of the double-entry accrual accounting system for utilities is recommended. Advantages of double-entry accrual accounting are the inclusion of assets and liabilities in the books of account, the preparation of financial statements without the necessity of analysis of supporting memoranda and documents, and a means of providing a better understanding of the financial status of the utility.
An accounting system for a municipality, whether it be on a single or double-entry basis, must serve many and varied purposes. Primarily, it must furnish the responsible officials with an effective aid in the financial management of their municipality. In addition, it must serve the taxpayer by providing an adequate record of city and town operations and informative statements of results at frequent intervals. Investment analysts must have sufficient data to study the financial position of the city, town, or utility. State and federal agencies should have necessary information for statistical and economic comparisons.
All these purposes have been considered in designing this manual, but the first consideration is the needs of the city and town officials. The manual will be amended when necessary to continue to provide city and town officials with accounts for use in (1) budgeting (2) accounting and (3) reporting, for maximum information and uniformity in all three areas.
In preparing this manual, an effort was made to guide Indiana municipalities into keeping their accounting records in conformance with Generally Accepted Accounting Principles (GAAP) and Governmental Accounting Standards applicable to governmental units. Extensive use of three authoritative publications has been made:
Governmental Accounting, Auditing and Financial Reporting (commonly referred to as GAAFR or the Blue Book), published in 2012 by the Government Finance Officers Association (GFOA), 203 North LaSalle Street, Suite 2700, Chicago, Illinois, 60601-1210. www.gfoa.org.
State and Local Governments, an Audit and Accounting Guide, as of March 1, 2014, prepared by the State and Local Government Committee, American Institute of Certified Public Accountants (AICPA), New York, New York; www.aicpa.org.Governmental Accounting and Financial Reporting Standards [Statements of the Government Accounting Standards Board (GASB)], published by GASB, Norwalk, Connecticut; www.gasb.org.
We recommend financial officers obtain copies of these three publications for use in their municipalities.
It is recognized that federal program regulations, state laws, state agency regulatory requirements, and other legal requirements may conflict with Generally Accepted Accounting Principles (GAAP). In those instances where legal provisions conflict with GAAP and certified audit reports are issued by the State Board of Accounts, basic financial statements will be prepared in accordance with GAAP along with supportive schedules and notes to financial statements indicating the legal compliance, responsibilities and accountabilities of the municipality.
- Legal References
Throughout the Manual legal references are furnished, where applicable, to facilitate locating statutes, opinions of the Attorney General and court decisions touching on the subject discussed. These references are only for the purpose of assisting in resolving questions which might arise and should not be construed as legal opinions of the State Board of Accounts. If a legal question arises or if a statute, opinion or court decision requires further interpretation, consult the city or town attorney.
All references to statutes are to the Indiana Code and to the title, article, chapter and section of the Code. For example, IC 6-1.1-32-2 refers to Title 6, Article 1.1, Chapter 32 and Section 2 of the Code.
The Indiana Code may be accessed via the internet at the following address: www.in.gov/legislative/ic/code.
When using a printed version of the Indiana Code, it is important to remember that the entire Code is not reprinted each year and the latest supplemental volume(s) should always be reviewed for any laws which may have been enacted since the entire Code was last reprinted.
References to Official Opinions of the Attorney General are usually shown as “OAG,” followed by the number of the opinion and the year it was issued, or if no number was assigned to the opinion the exact date of issue.
References to court decisions, unless otherwise stated, are to cases decided by the Indiana Supreme Court and the Indiana Court of Appeals. A reference, such as “223 Ind. 467” means Page 467, Volume 223 of Indiana Reports (Supreme Court). The reference “91 App. 160” means Page 160, Volume 91 of Indiana Court of Appeals Reports.
- Definitions
The following terms are used throughout the system.
Board, except as the context clearly states otherwise, shall mean and include the board of public works and safety, the city common council or a town council.
Fund means “cash” or a group of accounts set aside for the purpose of accounting for moneys or other resources of general functions or specific activities such as utilities, construction projects or other activities of a city or town in accordance with the system of accounts prescribed by the State Board of Accounts or as required by statute.
The primary funds in cities and towns are the General Fund, Local Income Tax – Economic Development, Local Income Tax – Public Safety, Motor Vehicle Highway Fund, Local Road and Street Fund, Riverboat Fund, Park and Recreation Fund, Cemetery Fund, Aviation Fund, Parking Meter Fund, Rainy Day Fund, Bond and Interest Redemption Fund, Cumulative Capital Improvement Fund, Electric Utility Funds, Water Utility Funds, Gas Utility Funds, Wastewater Utility Funds, Fiduciary Funds such as Police and Fire Pension Funds, and Agency Funds.
GAAFR defines a fund as: “A fiscal and accounting entity with a self-balancing set of accounts in which cash and other financial resources, together with all related liabilities and residual equities or balances, and changes therein, that are segregated for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions or limitations.”
Character of expenditure means the classification of an expenditure as to (1) Current Operating Expenditures; (2) Debt Service; (3) Capital Outlays; or, (4) Intergovernmental.
This distinction as to character is accomplished by either separate funds for certain types of disbursements or by separate classifications of such expenditures within funds.
Organization unit shall mean an office, department, board, commission or other agency or specific activity of city or town government. For purposes of budgeting, accounting and reporting, Common Council of a City, Town Council, Park and Recreation Board, Cemetery Board, Aviation Commission, etc., constitute separate organization units.
Object classes of expenditure shall mean the classification of an expenditure as to types of items purchased or services rendered.
Major Budget Classification means one of the four major classifications of expenses for which appropriations are made under the uniform budget system prescribed for cities and towns. The major classifications are: Personal Services; Supplies; Other Services and Charges; and Capital Outlay.
Minor Budget Classification means one of the detail or minor classifications of expense under a major budget classification, as prescribed in the uniform system for cities and towns.
Personal Services, Supplies, Other Services and Charges, and Capital Outlay are objects of expense in most general use in this system. Objects of expense are always used in conjunction with organization units.
Appropriation means authorization by the city council or town council by ordinance to make disbursements or to incur obligations for specific purposes. An appropriation may be accomplished by budget enactment or by subsequent modification of the budget by additional appropriation. The source of moneys to finance the disbursement should always be stated in the appropriation ordinance.
Encumbrance means an obligation incurred in the form of a purchase order or contract which is to be met from an appropriation and for which a part of the appropriation is reserved. It ceases to be an encumbrance when paid.Unencumbered Appropriation Balance means that portion of an appropriation not yet encumbered or expended.
- Accounting Principles
The major principles of accounting which underlie the Uniform System contained in this manual are:
1. Records shall be kept in full compliance with all legal requirements.
2. Accounting shall be based on a separation of funds.
3. Distinction with respect to character of expenditure shall be maintained.
4. The uniform classification of accounts shall be used in budgeting, accounting and reporting.
5. The records shall be kept on either a single-entry cash basis or double-entry modified accrual basis.
6. Budgetary control of receipts and disbursements shall be established.
7. Unexpended balances of appropriations, for other than encumbrances by contract or purchase order, shall lapse at the close of each year.
LEGAL REQUIREMENTSThe explanations contained in this manual are illustrations of applications of particular statutory requirements.
All transactions may not have been anticipated herein and may necessitate local study for conformance to legal requirements. If any legal question arises, consult your city or town attorney.
SEPARATION OF FUNDSThe system provides for separation of accounts by funds in order to comply with statutory requirements and generally accepted accounting principles.
Utility fund accounts showing only receipts, disbursements and balances will be carried on the records of the Clerk-Treasurer.
Separate records prescribed or approved by the State Board of Accounts will be maintained for water, wastewater, electric, and gas utilities following the Uniform System of Accounts for each utility published by the National Association of Regulatory Utility Commissioners.
CLASSIFICATION BY CHARACTERThe character of expenditures or disbursements has previously been defined to include (1) Current Operating Expenditures; (2) Debt Service; (3) Capital Outlays; and (4) Intergovernmental. These distinctions are maintained throughout the system of accounts and their importance cannot be over- emphasized.
Current operating expenditures are outlays which primarily benefit the current fiscal period. They consist of the costs of operating and maintaining the city or town.
Debt Service represents outlays in the term of debt principal payments, periodic interest payments, and related service charges for benefits received in part in prior fiscal periods as well as in current and future fiscal periods.Capital Outlays are outlays which benefit both the current and future fiscal periods. This includes costs of acquiring land or structures; construction or improvement of buildings, structures or other capital assets; and equipment purchases. These are expenditures resulting in the acquisition of or addition to the government's capital assets.
Intergovernmental expenditures are transfers of resources from one government to another.
UNIFORM SYSTEM OF ACCOUNTSThe account numbers used in this manual follow the chart of accounts beginning on page 11-1. The major objective is to provide a chart of accounts inclusive of every disbursement.
Accounts, as prescribed, are to be used in (1) budgeting, (2) accounting and (3) reporting so as to provide maximum information and uniformity in these three stages.
SINGLE ENTRY CASH BASISFor most municipalities the general records shall account for cash receipts and disbursements only. In this instance, accruals of revenues or expenses are not provided, except in the case of utilities and those cities operating on a double-entry modified accrual basis of accounting. The net result of all transactions of a fund shall be reflected in the cash balance of that fund.
The cash balance of a particular fund shall be determinable from comparison of the entries in the Ledger of Receipts, Disbursements and Balances which shall be balanced and reconciled with bank balances monthly.
The subtraction of total disbursements of a fund from the sum of total receipts and the cash balance at the beginning of a particular period should produce the cash balance of that fund. This calculation shall be made monthly and the cash balance of each fund at the close of the month shall be entered and reconciled with bank account balances.
SINGLE ENTRY CASH BASIS FUND STATEMENT
A summary of the monthly computation follows:
General Fund Cash Balance on March 1, 2017 $ 1,500.00
Add: Total General Fund Receipts During March 10,500.00
Total 12,000.00
Subtract: Total General Fund Disbursements During March 7,000.00
General Fund Cash Balance on March 31, 2017 $ 5,000.00The record balance at the end of every month shall be reconciled with the bank balance. [IC 5-13-6-1] Thus, any errors may be discovered and adjusted monthly. This procedure will localize any errors within the month and will prevent the necessity of a long and tedious search to trace errors covering transactions over a long period of time and will serve to expedite audits by the State Board of Accounts.
The following is an illustration of a bank reconcilement:
DEPOSITORY STATEMENT AND CASH RECONCILEMENT
March 31, 2017Depository Balance: $ 6,000.00
Citizens Banking Company
Deduct Outstanding Warrants:Date Warrant Number Amount 3-04-xx 84 $ 25.00 3-22-xx 87 75.00 3-22-xx 89 125.00 3-22-xx 90 25.00 3-22-xx 81 50.00 3-22-xx 96 200.00 3-22-xx 86 300.00 3-22-xx 102 150.00 3-22-xx 103 50.00 3-20-xx 104 100.00
Total 1,100.00
Net Depository Balance 4,900.00
Add Cash on Hand (Deposited April 1) 100.00
Record Balance, March 31, 2017 $ 5,000.00
After the reconcilement is completed, file the monthly bank statements for future reference and audit. All cancelled warrants or optical images of the warrants should remain with the bank statement which they accompany as well as optical images of deposit tickets and/or duplicate deposit tickets.
BANK ACCOUNTSIt has been our policy to recommend only a minimum number of bank accounts in order to avoid unnecessary bookkeeping and possible errors in charging warrants to bank accounts. So long as an ordinance does not require the keeping of a separate bank account, funds should be consolidated into as few accounts as possible.
Some bond ordinances and federal regulations require separate bank accounts for various funds and must be followed. Funds of other entities held by the city or town's fiscal officer must be accounted for in separate bank accounts.
Expenses and receipts shall be recorded only when cash is disbursed or received. The shortcomings of this method are minimized by supporting subsidiary records.
BUDGETARY CONTROL
The law requires the adoption of a balanced budget which shall include all anticipated revenues and expenses of every organizational unit with the exception of utilities.
A budget is the record of a definite financial program for a given period of time and the means of carrying such program into effect. It shows the contemplated expenditures and their relation to the revenues received and expected.
Two copies of the budget on which tax levies are based shall be filed with the county auditor for use of the county tax adjustment board at least two days before such board meets. [IC 6-1.1-17-5(d)]
In preparing the budget, careful planning for the necessary income is essential, and it is equally important to provide a specific program for the disposition or anticipated revenue.
No budget plan will work of its own accord. With complete information available it is possible for the Clerk-Treasurer or Controller to formulate a balanced budget.
Appropriations as stated in the budget, or as modified by additional appropriations, shall constitute the limitation of disbursements. No disbursement shall be made without an appropriation therefore unless specifically authorized by law.
ADDITIONAL APPROPRIATIONSFor additional appropriations of funds that receive revenue from property taxes or the State's motor vehicle highway account or local road and street account, a certified copy of the additional appropriation form must be filed with the Department of Local Government Finance. For other funds requiring appropriation, local fiscal body approval is still required.
The following form of notice should be given:
Taxpayers appearing at such meeting shall have a right to be heard. The additional appropriations as finally made will be automatically referred to the Department of Local Government Finance. The Department will make a written determination as to the sufficiency of funds to support the appropriations made within fifteen (15) days of receipt of a Certified Copy of the action taken.
If there is any doubt as to how to proceed, contact the Department of Local Government Finance, at www.in.gov/dlgf. A memorandum entitled “Additional Appropriation and Transfer Procedures” has been prepared by the Department of Local Government Finance for use by all municipal corporations.
LAPSING OF CURRENT APPROPRIATIONSUnexpended and unobligated appropriations shall lapse at the close of the year.
Every effort should be made by the Clerk-Treasurer and other city or town officials to have bills and claims presented before the end of the year, so that such items shall be charged to the appropriation and disbursement account of the year in which the service or commodity was supplied.
A claim of a prior year may be paid in the following year if the prior year's appropriation is properly encumbered and there are sufficient funds available. In order for the prior year appropriation to be encumbered, there must be an outstanding purchase order or contract that supports each encumbered item.
The carry-over of a large amount of unencumbered and unpaid claims will necessitate getting an emergency appropriation for the specific purpose of paying prior years claims. It is emphasized statutes prohibit obligations being incurred prior to appropriations and funds being available!
TRANSFERS BETWEEN DEPARTMENTSWhen proposing transfers from one department or office to another, in addition to an ordinance of the town council or common council authorizing such transfer, advertising to the taxpayers is required.
TRANSFERS BETWEEN APPROPRIATIONS - WITHIN SAME DEPARTMENTPursuant to IC 6-1.1-18-6, all cities and towns using departmental budgets may, by ordinance or resolution, transfer appropriations from one major budget classification to another within a department or office at any regular public meeting without prior notice and without approval from the Department of Local Government Finance, provided such transfer does not necessitate expenditure of more money than the total amount set out in the budget.
In those towns where the general fund budget is not departmentalized, the State Board of Accounts will not take audit exception in future audits of a town if transfers of appropriations are made within the town general fund pursuant to the requirements of IC 6-1.1-18-6, based on the provisions of Attorney General Official Opinion No.11, dated June 28, 1976, which is discussed below.
Attorney General's Official Opinion No. 11, dated June 28, 1976, was written in response to a question from a public school corporation regarding transferring money from one account of its general fund to another account within its general fund without additional prior notice to the public and without prior approval of the State Board of Tax Commissioners. The Attorney General in this official opinion stated that money could be transferred from one major budget classification of its general fund to another classification within that same fund without additional public notice and prior approval of the State Board of Tax Commissioners as long as the transfer was authorized by ordinance, adopted at a public meeting, and did not require expenditure of money in excess of the total appropriation available. The State Board of Accounts recommends the town attorney review IC 6-1.1-18-6 and Official Opinion No. 11, dated June 28, 1976.
SPECIMEN - TRANSFER ORDINANCETITLE: AN EMERGENCY ORDINANCE PROVIDING FOR THE TRANSFER OF APPROPRIATIONS FOR A (SEVERAL) DEPARTMENT(S) OF THE CITY (TOWN) OF ____________ , INDIANA, FOR THE ____________ , AS REQUESTED BY THE DEPARTMENT HEAD(S) AND FORWARDED TO THE COMMON COUNCIL (TOWN COUNCIL) FOR THEIR ACTION AND PASSAGE PURSUANT TO IC 6-1.1-18-6.
WHEREAS, certain extraordinary conditions have developed since the adoption of the existing annual budget for the year _______ and it is now necessary to transfer appropriations into different categories than was appropriated in the annual budget for the various functions of the several departments to meet the emergencies.
SECTION 1. BE IT ORDAINED BY THE COMMON COUNCIL (TOWN COUNCIL) OF THE CITY (TOWN) OF ____________, INDIANA, that for the expenses of the City (Town) Government, the following appropriations are hereby transferred and set apart out of the funds hereinafter named for the purposes specified, subject to the laws governing the same, such sums herein transferred unless otherwise stipulated by law.
SECTION 2. Where it has been shown that certain existing appropriations have unobligated balances which will be available for transferring as follows:
CITY (TOWN) GENERAL FUND: MAYOR'S DEPARTMENT;
FROM: Services Personal, 100
TO: Other Services and Charges, 300
SUM: $5,000.00(Or where minor budget accounts are used)
FROM: Services Personal, Account No. 11.01, Salaries and Wages, Department Head, Mayor
TO: Other Services and Charges, Account No. 31.01, Professional Services, Legal
SUM: $5,000.00(NOTE: Continue with as many departments as required.)
SECTION 3. Passed and adopted by the Common Council (Town Council) on the ______ day of ______ , ______ at the hour of ______ P.M. (A.M.).
________________________
Presiding OfficerATTEST: _______________________________
City (Town) Clerk-Treasurer(NOTE: FOR CITIES ONLY
Presented by me to the Mayor of the City of _____________ , Indiana, on the ______ day of ______ , ______ .
________________________
City Clerk-TreasurerThis ordinance approved and signed by me on the _______ day of ______ , ______ .
_______________________________________
Mayor, City of __________________ , Indiana
- Accounting Policies
ACCOUNTS ESTABLISHED ON A GROSS BASIS
Salaries and wages shall be budgeted and accounted for on a gross basis, before deductions for withholding taxes, social security or similar items.
APPROPRIATIONS NECESSARY FOR ALL DISBURSEMENTSIC 36-4-8-2 and IC 36-5-4-2 and the Uniform System of Accounts prescribed by the State Board of Accounts provide that no disbursement shall be made except as authorized by an appropriation contained in the budget or in a subsequent modification of the budget. This, of course, does not apply to proprietary (utility) and certain fiduciary (agency) funds.
TREATMENT OF REFUNDS – IC 6-1.1-18-9Money received constituting refunds of appropriation expense, which correct or adjust any previous payments in the same budget year shall be recorded as a receipt in the fund from which the payment was made and be credited to the appropriation affected. If a refund covers payments made in a prior budget year, the appropriation account shall not be credited.
Refunds of moneys improperly or erroneously received by the city or town, such as an overpayment of a fee or license, may be repaid without appropriation.
INSURANCE RECOVERIES – IC 6-1.1-18-7Any insurance recovery for insurance damages may be appropriated by the city or town fiscal officer, without advertising and without approval of the Department of Local Government Finance, to repair or replace like property within twelve (12) months following the receipt thereof.
FEDERAL AND STATE REIMBURSEMENT GRANTS – IC 6-1.1-18-7.5Where a federal or state grant provides for payments to be made directly to a city or town on a reimbursement basis after payment of expenses by a city or town, the entire amount of the federal or state reimbursement may be appropriated by the city or town council without using the additional appropriation procedures under IC 6-1.1-18-5, if the funds are provided or designated by the state or federal government as a reimbursement of expenditures.
- General Provisions
Each fund is an entirely separate entity. Transactions between funds must be carefully recorded and fully supported by issuing receipts and warrants. Transfers may be made between funds in the form of temporary loans as provided by law. These will also be supported by issuing receipts and warrants. [IC 36-1-8-4]
CORRELATION OF BUDGETS AND ACCOUNTSThe law requires the annual enactment of a balanced budget. Appropriation accounts used in such budget shall be the framework of subsequent accounting for receipts and disbursements.
ACCOUNTS EXCLUDED FROM THE BUDGETIn form, a budget is a tabulation of appropriations and estimated revenues. In a cash basis system of accounts, estimated revenue is synonymous with estimated receipts, except for “nonrevenue receipts.”
Nonrevenue receipts include borrowing for which securities are issued, i.e., bonds and notes. Such items, and the contemplated disbursement of their proceeds, are excluded from the budget except for repayment of bond principal and interest and the interest only on temporary loans. Bond proceeds, with the exception of revenue bonds, must be appropriated in the regular legal manner before being expended.
Proprietary Funds and Agency Funds by their nature are excluded from budgets.
INTERFUND TRANSACTIONSThe resources of a particular fund may be used only for the purposes for which the fund was created or as otherwise authorized by law. Therefore, one of the fundamentals of good accounting is that a proper charge be made for all substantial interfund services and that an adequate record be made for all interfund receipts and disbursements. For example, hydrant rental furnished to the city or town must be billed by the Water Utility. In brief, such billings should be made by all funds concerned and warrants drawn from one fund to another in payment thereof, so that each fund will show its correct financial position.
Incidental services and supplies given by one fund to another shall be billed to and paid for by the fund receiving such services and supplies. In case an employee of one fund works part-time for another fund, the pay of that employee shall be divided in recording the payroll, and the proper amount charged to each fund.
RECEIPTS AND DISBURSEMENTSReceipts within each fund, fund type and account group are classified by:
Source
Revenue Receipts
Nonrevenue Receipts
Disbursements are classified in two manners:
1. In cities and towns with departmentalized budgets, disbursements are classified by function or program and activity, organization unit, object of expense, and major budget classification. Minor budget classifications are provided for more detailed accounting and greater information.2. In small towns with non-departmentalized budgets, disbursements are classified by object of expense and major budget classification. Minor budget classifications are also provided for more detailed accounting and further information.
FUNDSSee the Funds section on this page for fund types and a description of each type as well as for fund classifications and fund names.
- Prescribed Chart of Accounts
NUMBERING THE ACCOUNTS
The following numbering system is used for numbering all accounts. See below for the complete prescribed Chart of Accounts. Following is the key for the numbers, explanations, and some examples.
Key ABC-DEF-GHI.JKL
Numbers XXX-XXX-XXX.XXXKey Explanation
A Fund type. Fund types are numbered and titled pursuant to types suggested in GAAFR. See below for definitions and numbers assigned.BC Fund name. Funds are numbered and classified by fund type. See below for numbers and listing.
DEF Organization unit. Organization units (departments) are numbered and classified by function, program, and/or activity. See below for numbers and listing.
GHI.JKL Chart of Accounts. The chart of accounts follows closely the chart of accounts numbers suggested in GAAFR with some slight modifications. The chart of accounts includes assets, other debits, liabilities, other credits, fund equity, revenues, other financing sources, expenditures, and other financing uses.The municipality will use those accounts based on their accounting needs. See below for complete chart of accounts.
FUND TYPES
- A -Prescribed Number
Governmental Funds – The funds through which most government functions typically are financed.
1. General Fund - The General Fund is the chief operating fund of the municipality. Tax revenues and other receipts that are not allocated by law or contractual agreement to another fund are accounted for in this fund. The general operating expenditures of the municipality are paid from the general fund.
2. Special Revenue Funds - Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than major capital projects) that are restricted to expenditures for specific purposes. See below for examples.
3. Debt Service Funds - Debt Service Funds are used to account for the accumulation of resources for, and the payment of, long-term debt principal and interest. See below for examples.
4. Capital Projects Funds - Capital Projects Funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities. See below for examples.
5. Permanent Funds - Permanent funds are used to account for resources that are legally restricted to the extent that only earnings, and not principal, may be used for purposes that support the reporting government’s programs (i.e., for the benefit of the government or its citizenry).6. Governmental Activities - (government-wide financial reporting). Governmental Activity funds are used to account for balances related to governmental funds that are only reported in the government-wide statement of net assets.
7. Proprietary Funds – The funds used to account for a government’s business-type activities (activities supported at least in part by fees or charges).
7.1 Enterprise Funds. Enterprise Funds are used to account for activities for which a fee is charged to external users for goods or services.
7.2 Internal Service Funds. Internal Service Funds are used to account for the financing of goods or services provided by one fund, department, or agency to other funds, departments, or agencies of the financial reporting entity, or to other governments, on a cost-reimbursement basis.
8. Fiduciary Funds – The funds used to account for assets held by the government as trustee or agent and that cannot be used to support the government’s own programs.
8.1 Pension (and other employee benefit) Trust Funds. Pension Trust funds are used to account for assets of defined benefit pension plans, defined contribution plans, other postemployment benefit plans, or other employee benefit plans held by a government in a trustee capacity.
8.2 Investment Trust Funds. Investment Trust funds are used to account for the external portion of investment pools (including individual investment accounts) reported by sponsoring government.
8.3 Private-Purpose Trust Funds. Private Purpose Trust funds are used to account for trust arrangements, including those for escheat property, where principal and income benefit individuals, private organizations, or other governments.
8.4 Agency Funds. Agency Funds are used to account for assets held by a government in a purely custodial capacity.
9. Capital Asset Accounts
901 Land
902 Infrastructure
903 Improvements Other than Buildings 904 Machinery and Equipment
905 Construction in Progress
10. Unclassified Funds
The following prescribed fund names are required by statute or are currently in use by municipalities pursuant to annual reports filed with the State Board of Accounts. Further funds will be added as required. Fund numbers shall be used as listed. Numbers include fund type, for instance (2)01, etc.
General Funds (1101-1199):
1101 General Fund
Special Revenue Funds (2201-2599):
2201 Motor Vehicle Highway
2202 Local Road and Street
2203 MVH Restricted (subfund of Motor Vehicle Highway)
2204 Park and Recreation - Operating
2205 Cemetery Operating (operating mostly with tax revenue support - not user fees)
2206 Aviation (operation mostly with tax revenue support – not user fees)
2207 Parking Meter
2208 Levy Excess
2209 LIT – Economic Development (formerly CEDIT)
2210 Thoroughfare (where used for maintenance and repairs instead of new construction)
2211 Park Nonreverting Operating
2212 Health
2213 Alcohol and Drug Services
2214 Supplemental Adult Probation Services
2215 Emergency Medical Services (where used for operations and funded by tax revenues instead of for purchase of equipment or qualifying as enterprise fund.)
2216 Economic Development (Operating)
2217 Building Demolition
2218 Planning and Zoning
2219 Plan Commission
2220 Animal Shelter
2221 Landfill
2222 Crime Control
2223 Sanitation (operating mostly from tax revenues - not user fees)
2224 Parking (not construction)
2225 Abandoned Vehicle
2226 Community Development
2227 Housing Authority (operating with tax revenues)
2228 Local Law Enforcement Continuing Education Fund
2229 Motor Vehicle Registration Penalties Fund
2230 Clerk's Record Perpetuation Fund
2231 Enhanced Access Fund
2232 Electronic Map Generation Fund
2233 Deferral Program
2234 Unsafe Building
2235 Riverboat (unless restricted to infrastructure uses)
2236 Rainy Day
2237 Certified Technology Park
2238 Hazardous Materials Response
2239 Credit Card Service Fee
2240 LIT – Public Safety
2241 County Slot Machine Wagering Fee
2242 Excess Welfare Distribution
2243 Fire Protection Territory
2244 Local Major Moves Construction
2245 Residential Lease Regulation
2246 Heritage Barn Public Safety - Police
2247 Heritage Barn Public Safety - Fire
2248 LOIT Special Distribution
2249 Municipal Vehicle Excise Tax Fund
2250 Municipal Wheel Tax Fund
2251 Rainy Day Restricted – Wheel and Surtax
2252 Rainy Day Restricted – Local Road and Street
2253 Rainy Day Restricted – Major Moves
2254 Rainy Day Restricted - MVH
2255 Public Safety Officers Survivors Health Coverage Cumulative Fund
2256-2299 Reserved for future statutory special revenue funds
2300-2399 Donations (restricted; not used for capital items)
2400 CARES Provider Relief Fund
2401-2499 Grants - special revenue
2500-2599 Local / Home Rules fundsDebt Service Funds (3301-3399):
3301 Bond and Interest Redemption
3302 Fire and Police Equipment Debt Payment
3303 Loan and Interest Payment
3304 Capital Improvement Bond (Sinking)
3305 Fire Equipment Bond (Sinking)
3306 Corporation Bond (Sinking)
3307 Bond, General (Sinking)
3308 Sewer Bond (Sinking)
3309 Bridge Bond (Sinking)
3310 Urban Renewal Bond (Sinking)
3311 Redevelopment Bond (Sinking)
3312 Park Bond (Sinking)
3313 Transportation Bond (Sinking)
3314 Thoroughfare Bond (Sinking)
3315 Airport Bond (Sinking)
3316 Industrial Loan (Repayment)
3317 Flood Control Bond (Sinking)
3318 Lease Rental Payment
3319 Fire Equipment Debt
3320 Police Equipment Debt
3321-3399 Other Debt Service Funds Not ListedCapital Projects Funds (4401-4699):
4401 Cumulative Capital Improvement - Cigarette Tax
4402 Cumulative Capital Development
4403 Park Nonreverting Capital
4404 Thoroughfare (mostly used for construction, not repairs and maintenance)
4405 Public Improvement
4406 Redevelopment Capital
4407 Industrial Park (construction projects, not operating costs)
4408 Industrial Development (capital projects costs, not operating)
4409 Police Equipment (equipment costs, not debt service)
4410 Fire Equipment (equipment costs, not debt service)
4411 Flood Control - Construction
4412 Fire Equipment Bond (Proceeds)
4413 Corporation Bond (Proceeds)
4414 Sewer Bond (Proceeds)
4415 Bridge Bond (Proceeds)
4416 Urban Renewal Bond (Proceeds)
4417 Redevelopment Bond (Proceeds)
4418 Park Bond (Proceeds)
4419 Transportation Bond (Proceeds)
4420 Thoroughfare Bond (Proceeds)
4421 Airport Bond (Proceeds)
4422 Cumulative Bridge
4423 Cumulative Capital Improvement - Tax Levy
4424 Cumulative Building
4425 Cumulative Fire
4426 Cumulative Capital Improvement - Special Fire
4427 Cumulative Capital Improvement - Special Sewer
4428 Cumulative Sewer
4429 Cumulative Sewage Treatment
4430 Cumulative Drainage
4431 Cumulative Sewer and Streets
4432 Cumulative Park
4433 Cumulative Transportation
4434 Flood Control Bond (Proceeds)
4435 General Improvement
4436 County Economic Development Income Tax (CEDIT)
4437 Riverboat
4438 Rainy Day
4439 Food and Beverage Tax
4440 Local Major Moves Construction
4441 Local Venture Capital
4442 City Ticket Tax
4443 Impact Fee Fund
4444 Fire Protection Equipment Replacement
4445-4465 Redevelopment TIF Allocation
4446-4475 Special Zone
4476-4499 Reserved for future statutory capital project funds
4500-4599 Grants - capital projects (not general or special revenue)
4600-4650 Donations (restricted - not special revenue)
4651-4699 Local / Home Rule capital projects fundsPermanent Funds (5501-5599):
5501 Endowment
5502-5510 Local / Home Rule permanent fundsProprietary Funds Enterprise Funds (6601-6699):
6101 Water Utility Operating
6102 Water Utility Bond and Interest Sinking
6103 Water Utility Depreciation
6104 Water Utility Meter Deposit
6105 Water Utility Construction (in progress)
6106-6199 Other Water Utility funds not listed
6201 Sewage Utility Operating
6202 Sewage Utility Bond and Interest Sinking
6203 Sewage Utility Depreciation
6204 Sewage Utility Construction (in progress)
6205 Sewage Utility Meter Deposit
6206-6299 Other Sewage Utility funds not listed
6301 Electric Utility Operating
6302 Electric Utility Bond and Interest Sinking
6303 Electric Utility Depreciation
6304 Electric Utility Meter Deposit
6305 Electric Utility Construction (in progress)
6306-6399 Other Electric Utility funds not listed
6401 Gas Utility Operating
6402 Gas Utility Bond and Interest Sinking
6403 Gas Utility Depreciation
6404 Gas Utility Meter Deposit
6405 Gas Utility Construction (in progress)
6406-6499 Other Gas Utility funds not listed
6501 Storm Water Utility Operating
6502 Storm Water Utility Bond and Interest Sinking
6503 Storm Water Utility Depreciation
6504 Storm Water Utility Construction (in progress)
6505-6599 Other Storm Water Utility funds not listed
6601 Sanitation (if operating mostly from user fees)
6602 Transportation (if operating mostly from user fees)
6603 Airport (if operating mostly from user fees)
6604 Trash and Garbage Pickup (if operating mostly from user fees)
6605 Cemetery (if operating mostly from sale of lots and other user fees)
6606 Emergency Medical Service (if operating mostly from user fees)
6607-6999 Other Enterprise funds not listedInternal Service (7701-7799):
7701 Information Technology Services (where not special revenue and reimbursed)
7702 Garage (where reimbursed for services from other departments)
7703 Purchasing (where costs allocated and reimbursed by other departments)
7704 Self-Insurance
7705-7725 Reserved For Future Statutory Funds
7726-7799 Other Funds Not ListedFiduciary Funds (8801-8899):
Trust Funds8801 Fire Pension
8802 Police Pension
8803 Utility Pension
8804 Sanitary Officers’ Pension Agency Funds
8805 Housing Authority Pension
8806-8810 Other Pension Trust funds not listed
8811-8820 Private Purpose Trust Funds
8821-8825 Investment Trust funds
Custodial Funds8850 User Fee
8851 Construction Retainage
8852-8899 Other non-payroll custodial funds not listedOther Funds
8901 Payroll
8902 Payroll Withholding (when maintained apart from payroll fund)
8976-8999 Other Clearing fundsORGANIZATION UNITS
- DEF -The following prescribed organization units are either required by statute or are currently in use by municipalities as found in annual reports filed with the State Board of Accounts. Further department names will be added as required. Unit numbers will be assigned by the municipality to accommodate its needs. For instance, 001-Plan Commission; 002-Controller; etc.
001-199 General Government:
Plan Commission
Weights and Measures Inspector
Government Building Information Technology Services Controller
City Council Town Council Purchasing
Board of Public Works Public Affairs
Community Planning and Development Planning and Zoning
Clerk-Treasurer City/Town Hall City/Town Court Law Department Administration
Board of Public Works and Safety Clerk
Human Resources Cemetery
Building Department Mayor
City/County Annex Engineer
Records
Council of Governments Building Maintenance Institutional Services Board of Zoning Appeals City/Town Attorney200-299 Public Safety:
Jail
Emergency Ambulance/Medical Service Emergency Management
Board of Public Safety
Police Merit Board/Commission Fire Department
Police Department Emergency Services Communications Department Traffic Department
Police Reports Fire Reports
Parking Administration Parking Meter
School Patrol
Federal Fire Academy Fire Commission Police Pension
Fire Pension Crime Control Juvenile Aid Hydrant Rental Volunteer Fire300-399 Public Works:
Highway, Streets and Roads Sanitation
400-499 Health and Welfare:
Health Welfare500-599 Culture-Recreation:
Parks and Recreation630-649 Urban Redevelopment and Housing
650-699 Economic Development and Assistance
900-949 Miscellaneous
950-999 Other
- Organization Units
The various offices, departments, divisions or boards of general city or town government and their activities have been classified functionally as Organization Units. An Organization Unit shall be used as the primary description of each appropriation and disbursement in conjunction with objects of expense.
A city or town is, therefore, required to use organization units in its budget and in all accounting.
It is not the intent of this manual that elaborate cost systems be maintained to prorate indirect expenses. Direct expenses only shall be charged to each organization unit and those types of expenditures that are easily applicable.
DIRECT DISTRIBUTION OF DISBURSEMENTSDirect distribution for the purpose of this section shall mean the salary expenses of an employee or employees applicable to an organization unit; or the amount of a claim or of a specific item on a claim which is applicable to an organization unit. No proration of such direct expense is required unless specifically required by the explanations which follow or unless a different fund is affected.
The salary of an employee shall be charged entirely to the organization unit principally concerned with service. Claims for other expenses are also required to be charged to the organization unit which is principally concerned.
When ordering supplies or materials, the order should show what portion should be charged to each organization unit or fund concerned. The invoice be rendered in the same manner.
- Objects of Expense
Objects of expense have been defined to mean an expenditure classification which applies to the article purchased or the service obtained. An object of expense is always used in conjunction with an organization unit and the proper fund. Major classifications of expenditures used with each organization unit and fund are as follows:
1 PERSONAL SERVICES
This classification includes expenditures for salaries, wages and related employee benefits provided for all persons employed. Employee benefits include employer contributions to a retirement system, group health and life insurance, unemployment compensation, uniform allowance, self-insurance and similar benefits.2 SUPPLIES
This classification includes articles and commodities which are consumed or materially altered when used. Supplies should include office supplies, operating supplies, repair and maintenance supplies and other similar supplies.3 OTHER SERVICES AND CHARGES
This classification includes expenditures for services other than personal services which are required by the city or town in the carrying out of its assigned functions or which are legally or morally obligatory on it. Types of services and charges would include professional services, communication and transportation, printing and advertising, insurance (other than group health, life and self-insurance), utility services, contracted repairs and maintenance, rentals, debt service expenditures for principal and interest payments and general long-term debt and other similar services and charges.4 CAPITAL OUTLAYS
This classification should include expenditures for acquisition of, or addition to, assets such as land, infrastructure, buildings, improvements other than buildings, and machinery and equipment. - Accounting Records
SINGLE ENTRY CASH BASIS
Accounting records maintained on a cash basis are discussed and illustrated in subsequent sections. The following basic forms are referred to in this section to state their purpose of implementing legal and accounting requirements as previously outlined.
City and Town Form No. 208 - Ledger of Receipts, Disbursements and Balances
City and Town Form No. 209 - Ledger of Appropriations, Encumbrances, Disbursements and Balances
The Ledger of Receipts, Disbursements and Balances, frequently referred to as the fund ledger, is used for the purpose of listing chronological entries to disclose receipts, disbursements and balances of cash.
The Ledger of Appropriations, Encumbrances, Disbursements and Balances is used for the classification of disbursements and also controls and limits disbursements to budgetary appropriations. This form is designed for use with purchase orders.
The Forms section on this page lists and explains the use of all prescribed forms.
DOUBLE-ENTRY MODIFIED ACCRUAL BASIS ACCOUNTING SYSTEMA double-entry modified accrual basis accounting system has been prescribed and is available for use of all cities and towns.
ACCOUNTING BASISThe accounting basis to be followed in recording transactions in the various funds will vary according to the purpose for which the fund was established. Generally, the funds can be classified into two categories:
1. Funds using accrual basis:
A, Proprietary Funds:
1. Enterprise funds (particularly utilities)
2. Internal Service FundsB. Fiduciary Funds:
1. Pension Trust Funds
2. Investment Trust Funds
3. Private Purpose Trust Funds
4. Agency Funds2. Funds using modified accrual basis:
A General Fund
B. Special Revenue Funds
C. Debt Service Funds
D. Capital Projects Funds
E. Permanent Funds
Characteristics of the modified accrual basis include:A. Revenues are recorded as received in cash except:
1. Revenues susceptible to accrual which are those revenues that are both measurable and available, with “available” meaning collectible within the current period or soon enough thereafter to be used to pay liabilities of the current year. Few types of revenues in budgetary funds have the characteristics of being both measurable and available.
2. Revenues of a material amount that are not received at the normal time.B. Expenditures are recorded on the accrual basis except for:
1. Inventory type disbursements, which may be considered expenditures at the time of purchase or at the time the items are used.
2. Prepaid expenses, which are not normally recorded.
3. Interest on long-term debt, which should be normally an expenditure when due.
4. The encumbrance method of accounting, which may be adopted as an additional modification.
RECORDS OF UTILITIES OR ENTERPRISESWhen complete double-entry systems are kept by the bookkeeping department of the utility or enterprise, it will not be necessary for the chief disbursing officer of the governmental unit to maintain similar accounts for the utility or enterprise. However, the chief disbursing officer of the governmental unit must maintain, at a minimum, a cash account for each fund of the utility or enterprise plus a fund balance account. This procedure will result in the cash balance(s) being equal to the fund balance(s). If this procedure is followed, the bookkeeping department of the utility or enterprise must maintain the records in accordance with generally accepted accounting principles.
It is also acceptable for the chief disbursing officer to keep within his records a complete double-entry system for a utility or enterprise.
ADDITIONAL RECORDS REQUIREDAll existing prescribed or approved records are continued. For some cities and towns additional records will be necessary to summarize financial transactions to develop monthly totals for posting to the general ledger. New records or software program revisions may be necessary to provide the following:
1. General Ledger. The General Ledger is to be established, posted monthly on the double-entry basis with a self-balancing group of accounts for each fund. The general ledger will usually contain only control accounts if detail accounts are maintained in subsidiary ledgers.
2. Cash Receipts Journal. The Cash Receipts Journal is to be kept for each fund and will provide a systematic means of accumulating cash receipt information to be posted to the General Ledger. If detail receipt (revenue) accounts are maintained in the present accounting records from which the receipts for each month can be obtained for posting to the general ledger, the use of this form will not be required; however, cities and towns may use this journal in lieu of the present ledger accounts, if desired.
3. Accounts (Claims) Payable Journal. The Accounts Payable Journal is designed to accumulate expenditure and accounts payable information month to month for posting to the General Ledger and Appropriation Ledger or at year end if expenditures are recorded on a cash basis throughout the year.4. Cash Disbursements Journal. The Cash Disbursements Journal provides a means for summarizing cash expenditures for posting to the General Ledger. If the present ledger contains appropriation, encumbrance and expenditure accounts in the detail currently prescribed, such record will provide the information for summarizing cash expenditures for posting to the general ledger, and accounts payable are recorded only at year end, this journal will not be required.
5. Purchase Order Register. This form provides the monthly totals of encumbrances (purchase orders issued) and purchase orders liquidated for posting to the General Ledger. If encumbrances and liquidations are recorded in the present prescribed ledgers, from which the monthly totals may be obtained for posting to the general ledger, the use of this register will not be required.
6. General Journal. This form is to be used to make entries into the General Ledger that are not made from other journals, ledgers or registers.
7. Capital Assets Ledger. This ledger is to provide a record of the capital assets of the governmental unit.
- Chart of Accounts
Following is the chart of accounts and some illustrative journal entries. The chart of accounts for expenditures follows the numbering system of the budget forms except the number 4 has been added as the first digit. Suggested numbers for hand posted systems are also included.
ASSETS
Current Assets (Other Than Fixed - Current, Long-Term Receivables, Deferred Charges):
101 Cash
101.1 Petty Cash
101.2 Cash Change
102 Cash With Fiscal Agent
103 Investments
104 Interest Receivable
105 Taxes Receivable
105.1 Allowance for Uncollectible Taxes
113 Other Revenues Receivable
115 Accounts Receivable
115.1 Allowance for Uncollectible Accounts Receivable (Credit)
121 Special Assessments Receivable
125 Interest Receivable - Special Assessments
126 Intergovernmental Receivable
130 Due From Other Funds
141 Inventory of Materials and Supplies
141.1 Materials
141.2 Supplies
141.3 Parts
143 Prepaid Items
149 Deferred Charges
151 Investments-Noncurrent
151.1 Unamortized Premiums on Investments
151.2 Unamortized Discounts on Investments (Credit)Capital Assets:
161 Land
162 Infrastructure
162.1 Accumulated Depreciation – Infrastructure (Credit)
163 Buildings
163.1 Accumulated Depreciation - Buildings (Credit)
164 Improvements Other Than Buildings
164.1 Accumulated Depreciation - Improvements Other Than Buildings (Credit)
165 Machinery and Equipment
165.1 Accumulated Depreciation - Machinery and Equipment (Credit)
166 Construction in Progress Other Debits:
171 Estimated Revenues
172 Revenues (Credit)
174 Improvements Authorized - Special AssessmentsLIABILITIES
Current Liabilities and Deferred Charges (Other Than Long-Term Debt):
202 Accounts Payable
203 Compensated Absences Payable
204 Claims and Judgments Payable
205 Contracts Payable
206 Retainage Payable
208 Due to Other Funds
212 Matured Bonds Payable
213 Matured Interest Payable
214 Accrued Interest Payable
216 Accrued Wages Payable
217 Accrued Taxes Payable
221 Due to Fiscal Agent
222 Deferred Revenues
222.1 Taxes Collected in Advance
222.2 Revenues Collected in Advance
225 Bonds Payable (Current)
225.1 General Obligation Bonds Payable
225.2 Special Assessments Bonds Payable
225.3 Revenue Bonds Payable
226 Capital Leases Payable - Current
227 Other Current Liabilities
227.1 Payroll Taxes Payable
227.11 Federal Withholding Tax
227.12 State Withholding Tax
227.13 Social Security (FICA) Tax
227.14 County Withholding Tax
227.2 Other Payroll Withholdings
227.21 Medical Insurance
227.22 Life Insurance
227.23 Union Dues
227.3 Notes Payable
227.4 State Sales Tax Collected
228 Customer Deposits Long-Term Liabilities:Long -Term Liabilities:
231 Bonds Payable - Noncurrent
231.1 General Obligation Bonds Payable
231.2 Special Assessment Bonds Payable
231.3 Revenue Bonds Payable
232 Unamortized Premiums on Bonds
233 Unamortized Discounts on Bonds (Debit)
237 Capital Leases Payable - Noncurrent
238 Net Pension Obligation
239 Other Noncurrent Liabilities
240 Other Credits:
Appropriation Expenditures (Debit)
Encumbrances (Debit)Fund Balance:
241 Reserved for Debt Service
242 Reserved for Endowments
244 Reserved for Encumbrances
245 Reserved for Inventories
250 Reserved for
253 Unreserved
Net Assets:
261 Net Assets – Invested in Capital Assets, Net of Related Debt
262 Net Assets – Restricted For
263 Net Assets – Held in Trust for Pension Benefits
266 Net Assets – Unrestricted
267 Net Assets – General Government
REVENUES AND OTHER FINANCING SOURCES310 Taxes
311 General Property Taxes
312 Other Taxes* All of the following listed revenue accounts should be used in hand posted and machine accounting single entry cash basis systems where applicable. Use only those accounts which apply to your municipality.
320 Licenses and Permits
321 Business Licenses and Permits
321.1 Amusement Park Licenses
321.2 Auctioneer Licenses
321.3 Bicycle Licenses
321.4 Bowling Alley Licenses
321.5 Dance Hall Licenses
321.6 Dog Licenses
321.7 Electrician Licenses
321.8 Junk Dealer Licenses
321.9 Parking Lot Licenses
321.10 Pawnbroker Licenses
321.11 Peddler Licenses
321.12 Plumber Licenses
321.13 Pool Hall Licenses
321.14 Restaurant
321.15 Skating Rink Licenses
321.16 Taxi Licenses
321.17 Theater Licenses
322 Nonbusiness Licenses and Permits
322.1 Building Permits
322.2 Demolition Permits
322.3 Electrical Permits
322.4 Moving Permits
322.5 Plumbing Permits
322.6 Sign Permits
322.7 Street and Curb Cut Permits330 Intergovernmental Revenues
331 Federal Government Grants
331.1 General Government
331.2 Public Safety
331.3 Highways and Streets
331.4 Sanitation
331.5 Health
331.6 Welfare
331.7 Culture - Recreation
331.8 Conservation of Natural Resources
331.9 Urban Development and Assistance
331.10 Economic Development and Assistance
331.11 Transportation
331.12 Water
331.13 Other
332 Federal Shared Revenues
332.1 Entitlements
332.2 Other
333 Federal Payments in Lieu of Taxes
334 State Government Grants
334.1 General Government
334.2 Public Safety
334.3 Highways and Streets
334.4 Sanitation
334.5 Health
334.6 Welfare
334.7 Culture - Recreation
334.8 Conservation of Natural Resources
334.9 Urban Development and Assistance
334.10 Economic Development and Assistance
334.11 Transportation
334.12 Water
334.13 Industrial Development
334.14 OtherNOTE: See footnote
335 State Shared Revenues
335.1 Financial Institutions Tax
335.2 Auto and Aircraft Excise Taxes
335.3 Certified Shares (LIT)
335.4 Property Tax Replacement Credit (LIT)
335.5 County Option Income Tax
335.6 Wheel Tax/Municipal Motor Vehicle Excise Tax
335.7 Commercial Vehicle Excise Tax
335.8 Liquor Excise Tax Distributions
335.9 Liquor Gallonage Tax Distributions
335.10 Cigarette Tax Distributions - General Fund
335.11 Cigarette Tax Distributions - Cumulative Capital Improvement Fund
335.12 Cigarette Tax Distributions - Fire Pension Fund
335.13 Cigarette Tax Distributions - Police Pension Fund
335.14 Gasoline Tax – Motor Vehicle Highway Fund
335.15 Gasoline Tax – Local Road and Street Fund
335.16 PDIF Interest – Fire Pension Fund
335.17 PDIF Interest – Police Pension Fund
335.18 Wagering Tax Distributions
335.19 Food and Beverage Tax Distributions
335.20 Major Moves Construction Fund Distributions
335.21 LIT - Public Safety
335.22 LIT - Economic Development (formerly CEDIT)
335.23 County Slot Machine Wagering Fee
335.24 Other
336 State Payments in Lieu of Taxes
337 Local Government Grants
338 Local Government Shared Revenues
339 Local Government Payments in Lieu of Taxes
340 Charges for Services
341 General Government
341.1 Court Costs, Fees, and Charges
341.2 Plan Commission Charges
341.3 Building Department Charges
341.4 Copies of Public Records
341.5 Sale of Maps and Publications
342 Public Safety
342.1 Accident Report Copies
342.2 Gun Permit Applications
342.3 Traffic Signal Maintenance
342.4 Burglary Alarm Charges
342.5 Fire Inspection
342.6 Fire Protection Contracts
343 Highways and Streets
343.1 Parking Meter Receipts
343.2 Parking Space Rental
343.3 Street Lighting
343.4 Parking Meter Fines - Penalties
343.5 Mowing Weeds
343.6 Sweeping Streets
344 Sanitation
344.1 Sewage Fees
344.2 Garbage and Trash Collection Fees
345 Health
345.1 Dog Pound Fees
345.2 Vital Statistics
345.3 Health Inspection Fees
345.4 Emergency Medical Services
347 Culture - Recreation
347.1 Park Receipts
347.11 Swimming Pool
347.12 Golf Course
347.13 Concession Stand(s)
347.14 Lease of ColiseumNOTE: If the foregoing revenue accounts are maintained in subsidiary ledgers, only a revenue control account will be maintained in the general ledger.
349 Other
349.1 Sale of Cemetery Lots
349.2 Airport Revenues
349.3 Contractual Services
349.4 In Lieu of Taxes - Municipal Utilities
349.5 Federal Reimbursement for Services
349.6 State Reimbursement for Services
349.7 County Reimbursement for Services
349.8 Opening and Closing Graves350 Fines, Forfeitures and Fees
351 Fines
351.1 Infractions
351.2 Ordinance Violations
352 Forfeits
352.1 Bond Forfeitures
353 Court Docket Fees
355 Special Assessments
355.1 Barrett Law
355.2 General Improvement Fund360 Miscellaneous Revenues
361 Interest on Investments
362 Rental of Property
364 Cable TV Franchise
367 Contributions and Donations From Private Sources390 Other Financing Sources
391 Interfund Transfers
391.1 Transfer From Parking Meter Fund
391.2 Transfer From Cumulative Capital Improvement Fund
391.3 Transfer From Dormant Fund
392 Proceeds of Capital Asset Disposition
392.1 Sale of Capital Assets
392.2 Compensation for Loss of Capital Assets
392.21 Insurance Reimbursements
392.22 Other Damage Reimbursements
393 Proceeds From Long-Term Debt
393.1 General Obligation Bond Proceeds
393.2 Premiums on Bonds Sold
394 Temporary Loan From _______________ Fund
395 Sale of Investments
396 Refunds
399 Other
EXPENDITURES AND OTHER FINANCING USES410 Personal Services
411 Salaries and Wages (All Cities and Departmentalized Towns, Note 1)
411.01 Department
411.011 Department Head
411.012 Deputies
411.013 Regular
411.014 Temporary
411.015 Other
411.016 Overtime Excess CompensationNOTES:
1. For departmentalized municipalities. .01 to .99 should be used for numbering each department. .011 to .991, .012 to .992, etc., should be used for each corresponding department.2. For towns without departmental budgets, only those accounts needed under 412, Salaries and Wages, should be used.
410 Personal Services
412 Salaries and Wages (Towns Without Departmentalized Budget, Note 2)
412.01 Salaries of Town Council Member
412.02 Salary of Clerk-Treasurer
412.021 Salary of Clerk-Treasurer
412.022 Deputies
412.023 Regular
412.024 Temporary
412.025 Other
412.026 Overtime Excess Compensation
412.03 Salary of Town Manager
412.031 Town Manager
412.033 Regular
412.034 Temporary
412.035 Other
412.036 Overtime Excess Compensation
412.04 Salary of Town Marshal
412.041 Town Marshal
412.042 Deputies
412.043 Regular
412.044 Temporary
412.045 Other
412.046 Overtime Excess Compensation
412.05 Salary of Fire Chief
412.051 Fire Chief
412.052 Fireman
412.053 Regular
412.054 Temporary
412.055 Other
412.056 Overtime Excess Compensation
412.06 Salary of Street Superintendent
412.061 Superintendent
412.062 Assistant Superintendent
412.063 Regular
412.064 Temporary
412.065 Other
412.066 Overtime Excess Compensation
412.07 Salary of Town Attorney
412.071 Town Attorney
412.072 Deputies
412.073 Regular
412.074 Temporary
412.075 Other
412.076 Overtime Excess Compensation
NOTES:
1. All municipalities shall use those accounts beginning with account 413 and all following accounts that apply to their unit.2. Use only those accounts that are needed for your municipality.
410 Personal Services
413 Employee Benefits (All Units, Note 1)
413.01 Employer's Share of Social Security (FICA)
413.02 Employer's Share of Medicare Tax
413.03 Employer's Share of Retirement (PERF)
413.04 Unemployment Compensation
413.05 Employer's Share Group Insurance - Health and Accident
413.06 Employer's Share Group Insurance - Life
413.07 Clothing Allowance
413.08 Auto Allowance - Volunteer Firemen
413.09 Employer's Share of 1977 Firemen's Pension Contributions
413.10 Employer's Share of 1977 Policemen Pension Contributions
413.11 Other Employee Benefits
414 Self-Funded Insurance
414.01 Administrative Fee (Claim Processing Charge)
414.02 Claims - Physicians and Surgeons
414.03 Claims - Hospitals and Other Providers
415 Other Personal Services420 Supplies (All Units, Note 2)
421 Office Supplies
421.01 Official Records
421.02 Stationery and Printing
421.05 Other Office Supplies422 Operating Supplies
422.01 Fuel and Ice
422.011 Coal
422.012 Fuel Oil
422.013 Bottled Gas
422.014 Ice
422.015 Other420 Supplies (All Units, Note 2)
422 Operating Supplies
422.02 Garage and Motor
422.21 Gasoline
422.22 Oil
422.23 Tires and Tubes
422.025 Other
422.03 Institutional and Medical
422.31 Household, Laundry, Cleaning
422.32 Medical, Surgical, Dental
422.035 Other
423 Repair and Maintenance Supplies
423.01 Materials
423.11 Building Materials
423.12 Street and Alley Materials
423.0121 Gravel
423.0122 Sand
423.0123 Cement
423.0124 Bituminous Materials
423.0125 Other
423.01 Materials
423.013 Sewer Materials
423.0131 Gravel
423.0132 Sand
423.0133 Cement
423.0135 Other
423.02 Repair Parts
423.03 Small Tools and Minor Equipment
429 Other Supplies
430 Other Services and Charges
431 Professional Services
431.01 Legal
431.02 Engineering
431.03 Architectural
431.05 Other
432 Communication and Transportation
432.01 Freight, Express, Drayage
432.02 Postage
432.03 Travel Expense
432.04 Telephone and Telegraph
432.05 Other
433 Printing and Advertising
433.01 Printing Other Than Office Supplies
433.02 Publication of Legal Notices
433.05 Other
434 Insurance
434.01 Workmen's Compensation
434.02 Liability
434.03 Fire
434.05 Other
NOTE: Use only those accounts needed for your municipality.430 Other Services and Charges
435 Utility Services
435.01 Electric
435.02 Gas
435.03 Heat
435.04 Water
435.05 Sewage
435.09 Other
436 Repairs and Maintenance
436.01 Repairs and Maintenance
436.02 Equipment
436.03 Repair and Maintenance of Streets and Alleys by Contract
436.05 Other
437 Rentals
437.01 Hydrant Rental
437.02 Equipment
437.03 Office Space
437.05 Other
438 Debt Service
438.01 Principal
438.02 Interest
438.03 Paying Agent Fees
439 Other Services and Charges
439.01 Refunds, Awards, Indemnities
439.02 Pension Benefits
439.021 Pensions to Retired Firemen - Prior
439.022 Pensions to Retired Firemen - Becoming Eligible During Current Year
439.023 Pensions to Dependents of Deceased Firemen
439.024 Death Benefits - Deceased Firemen
439.025 Disability Benefits
439.026 Pensions to Retired Policemen - Prior
439.027 Pensions to Retired Policemen - Becoming Eligible During Current Year
439.028 Pensions to Dependents of Deceased Policemen
439.029 Death Benefits - Deceased Policemen
439.030 Disability Benefits
439.03 Subscriptions
439.04 Premiums on Official Bonds
439.05 Grants and Subsidies
439.06 Garbage and Trash Collection Contract
439.07 Election Expense
439.08 Organization Memberships and Dues
439.09 Other
439.91 Education
439.92 Construction or Improvement of Streets and Alleys by Contract440 Capital Outlay
441 Land
441.01 Rights of Way
442 Infrastructure
443 Buildings
443.01 City or Town Hall
443.02 Garage
443.03 Street
443.05 Other
NOTE: Use only those accounts needed for your municipality.440 Capital Outlay
444 Improvements Other Than Buildings
444.01 Fencing
444.02 Parking Lots
444.05 Other
445 Machinery and Equipment
445.01 Furniture and Fixtures
445.02 Motor Equipment
445.03 Office Equipment
445.04 Street Machinery and Equipment
445.05 Other
449 Other Capital Outlays
450 Other Financing Uses
451 State Board of Accounts
451.01 Audit
451.02 Typing and Processing
451.03 Conferences
451.31 Registration
451.32 Travel
452 Interfund Operating Transfers
453 Temporary Loan to Fund
454 Purchase of Investments
454.01 Service Charges
459 Other
Note: Use only those accounts needed for your municipality.ILLUSTRATED ENTRIES
In order to show the interrelationship of the balance sheet accounts and the method of posting them, some typical journal entries are illustrated below for the General Fund. Entries would be similar for other budgetary funds.
The first group of entries are those that would be required to initially set up the double-entry system.
The second group illustrates various transactions. These entries are presented in summary form for an entire period. Actual entries would be made from totals of postings to subsidiary ledgers or journals on a monthly basis.
The third group illustrates the method of closing the nominal or temporary accounts at the end of the year.
The following accounts have been selected from the chart of accounts to present the illustrated entries:
Asset and Budgetary Accounts That Carry Debit Balances
101 Cash
101.1 Petty Cash
101.2 Cash Change
141 Inventories - Materials and Supplies
151 Investments - Noncurrent
171 Estimated Revenues24 #Expenditures
243 #EncumbrancesLiability, Budgetary and Fund Balance Accounts That Carry Credit Balances
172 #Revenues
202 Accounts Payable241 #Appropriations
244 Fund Balance Reserved for Encumbrances - Current Year
245 Fund Balance Reserved for Encumbrances - Prior Year
246 Fund Balance Reserved for Inventories# These are control accounts for which detailed subsidiary accounts are provided in the budgetary accounting system previously prescribed.
ILLUSTRATED JOURNAL ENTRIESClick here to view the Illustrated Journal Entries.
NOTE: Amounts shown in parenthesis ( ) denote credit balance.
LIST OF BALANCE SHEET ACCOUNTS
Following is a list of balance sheet accounts and an explanation of which fund types and funds might contain account activity. The fund types and account groups are abbreviated in the following manner:G General Fund
SR Special Revenue
DS Debt Service
CP Capital Projects
PF Permanent Funds
EF Enterprise Funds
IS Internal Service
PT Pension Trust
IT Investment Trust
PP Private-Purpose Trust
AF Agency Funds
LIST OF BALANCE SHEET ACCOUNTS - Click Here
SECTION G - OPENING ACCOUNTING RECORDS FOR NEW YEARThe following procedures shall be followed in opening your accounting records for each new budget (fiscal) year. In the following discussion, we will indicate prescribed forms for use in a manual, hand posted system with the understanding the same basic procedures are to be implemented for computerized systems. A new set of forms should be started for each year's financial and budgetary transactions.
A City and Town Form No. 208 (Rev. 1967), Ledger of Receipts, Disbursements and Balances, shall be prepared for each fund of the municipality. In the receipts section, the date January 1, 20XX with explanation “Balance Forwarded” shall be entered. The preceding year's December 31 closing cash balance shall be entered in the balance column. All cash receipts and disbursements of the fund during the year shall be posted individually or by the block posting to this fund control record. This record will furnish each fund's cash balance throughout the year. The columns of the ledger should be totaled each month with the monthly and year to date totals. The ledger sheets shall be opened and maintained for both budgeted and non-budgeted funds (such as investments, utilities, etc.).
A City and Town Form No. 209 (Rev. 1967), Ledger of Appropriations, Encumbrances, Disbursements and Balances, shall be prepared for each budgeted, appropriated fund of the municipality. (No appropriation ledger sheets will be needed for non-budgeted funds such as investments and utility funds.) The major appropriation categories for each fund and department certified to you by the Department of Local Government Finance (on the computer printout entitled 20XX Budget Appropriation) should be entered in date column “January 1, 20XX,” description column (20XX Department of Local Finance Budget Order). The total for each appropriation category should be entered in the appropriation balance column. A separate ledger sheet should be prepared for each fund, department and budget class listed in the Department of Local Finance order. The following examples should be utilized for your particular needs.
Departmental Budgets - All Cities and Larger Towns
General Fund - Control (Ledger Sheet) - All Departments
General Fund - Clerk-Treasurer - Control (Ledger Sheet)
General Fund - Clerk-Treasurer - 100-Personal Services
General Fund - Clerk-Treasurer - 200-Supplies
General Fund - Clerk-Treasurer - 300-Other Services and Charges
General Fund - Clerk-Treasurer - 400-Capital Outlay
General Fund - Mayor - Control (Ledger Sheet)
General Fund - Mayor - 100-Personal Services
General Fund - Mayor - 200-Supplies
General Fund - Mayor - 300-Other Services and Charges
General Fund - Mayor - 400-Capital Outlay
(Continue for each General Fund Department)
Non-Departmental Budgets - Smaller Towns Only
General Fund - Control (Ledger Sheet)
General Fund - 100-Personal Services
General Fund - 200-Supplies
General Fund - 300-Other Services and Charges
General Fund - 400-Capital OutlayDepartmental Budgets - All Cities and Larger Towns For All Other Funds - All Municipalities
Motor Vehicle Highway Fund - Control (Ledger Sheet)
Motor Vehicle Highway Fund – 100-Personal Services
Motor Vehicle Highway Fund – 200-Supplies
Motor Vehicle Highway Fund – 300-Other Services and Charges
Motor Vehicle Highway Fund – 400-Capital Outlay
Local Road and Street Fund - Control (Ledger Sheet)
Local Road and Street Fund – 100-Personal Services
Local Road and Street Fund – 200-Supplies
Local Road and Street Fund – 300-Other Services and Charges
Local Road and Street Fund – 400-Capital Outlay
(Continue for each budgeted, appropriated fund.)For those municipalities wishing to account for their disbursements in greater detail than provided in the foregoing budgetary accounting requirements, City and Town Form No. 209A (1981) may be used. This form may be used to supplement City and Town Form No. 209 (Rev. 1967), Ledger of Appropriations, Encumbrances, Disbursements and Balances. The form provides spaces for headings and several columns for spreading each disbursement into as much detail as needed.
SECTION H - UNIFORM SYSTEM OF ACCOUNTS FOR WATER AND WASTEWATER UTILITIES
CLASS A AND B WATER OPERATING REVENUE ACCOUNTS460 Unmetered Water Revenue
461 Metered Water Revenue
461.1 Metered Sales to Residential Customers
461.2 Metered Sales to Commercial Customers
461.3 Metered Sales to Industrial Customers
461.4 Metered Sales to Public Authorities
461.5 Metered Sales to Multiple Family Dwellings
462 Fire Protection Revenue
462.1 Public Fire Protection
462.2 Private Fire Protection
464 Other Sales to Public Authorities
465 Sales to Irrigation Customers
466 Sales for Resale
467 Interdepartmental Sales
469 Guaranteed Revenues470 Forfeited Discounts
471 Miscellaneous Service Revenues
472 Rents From Water Property
473 Interdepartmental Rents
474 Other Water RevenuesCLASS A AND B WATER OPERATION AND MAINTENANCE EXPENSE ACCOUNTS
Source of Supply and Expenses - Operations
601.1 Salaries and Wages - Employees
603.1 Salaries and Wages - Officers, Directors and Majority Stockholders
604.1 Employee Pensions and Benefits
610.1 Purchased Water
615.1 Purchased Power
616.1 Fuel for Power Production
618.1 Chemicals
620.1 Materials and Supplies
631.1 Contractual Services - Engineering
632.1 Contractual Services - Accounting
633.1 Contractual Services - Legal
634.1 Contractual Services - Management Fees
635.1 Contractual Services - Testing
636.1 Contractual Services - Other
641.1 Rental of Building/Real Property
642.1 Rental of Equipment
650.1 Transportation Expenses
656.1 Insurance - Vehicle
657.1 Insurance - General Liability
658.1 Insurance – Workman's Compensation
659.1 Insurance - Other
667.1 Regulatory Commission Expense - Other
668.1 Water Resource Conservation Expense
675.1 Miscellaneous ExpensesSource of Supply and Expenses - Maintenance
601.2 Salaries and Wages - Employees
603.2 Salaries and Wages - Officers, Directors and Majority Stockholders
604.2 Employee Pensions and Benefits
618.2 Chemicals
620.2 Materials and Supplies
631.2 Contractual Services - Engineering
632.2 Contractual Services - Accounting
633.2 Contractual Services - Legal
634.2 Contractual Services - Management Fees
635.2 Contractual Services - Testing
636.2 Contractual Services - Other
641.2 Rental of Building/Real Property
642.2 Rental of Equipment
650.2 Transportation Expenses
656.2 Insurance - Vehicle
657.2 Insurance - General Liability
658.2 Insurance – Workman's Compensation
659.2 Insurance - Other
667.2 Regulatory Commission Expense - Other
675.2 Miscellaneous ExpensesWater Treatment Expenses - Operations
601.3 Salaries and Wages - Employees
603.3 Salaries and Wages - Officers, Directors and Majority Stockholders
604.3 Employee Pensions and Benefits
615.3 Purchased Power
616.3 Fuel for Power Production
618.3 Chemicals
620.3 Materials and Supplies
631.3 Contractual Services - Engineering
632.3 Contractual Services - Accounting
633.3 Contractual Services - Legal
634.3 Contractual Services - Management Fees
635.3 Contractual Services - Testing
636.3 Contractual Services - Other
641.3 Rental of Building/Real Property
642.3 Rental of Equipment
650.3 Transportation Expenses
656.3 Insurance - Vehicle
657.3 Insurance - General Liability
658.3 Insurance – Workman's Compensation
659.3 Insurance - Other
667.3 Regulatory Commission Expense - Other
675.3 Miscellaneous ExpensesWater Treatment Expenses - Maintenance
601.4 Salaries and Wages - Employees
603.4 Salaries and Wages - Officers, Directors and Majority Stockholders
604.4 Employee Pensions and Benefits
618.4 Chemicals
620.4 Materials and Supplies
631.4 Contractual Services - Engineering
632.4 Contractual Services - Accounting
633.4 Contractual Services - Legal
634.4 Contractual Services - Management Fees
635.4 Contractual Services - Testing
636.4 Contractual Services - Other
641.4 Rental of Building/Real Property
642.4 Rental of Equipment
650.4 Transportation Expenses
656.4 Insurance - Vehicle
657.4 Insurance - General Liability
658.4 Insurance – Workman's Compensation
659.4 Insurance - Other
667.4 Regulatory Commission Expense - Other
675.4 Miscellaneous ExpensesTransmission and Distribution Expenses - Operations
601.5 Salaries and Wages - Employees
603.5 Salaries and Wages - Officers, Directors and Majority Stockholders
604.5 Employee Pensions and Benefits
615.5 Purchased Power
616.5 Fuel for Power Production
618.5 Chemicals
620.5 Materials and Supplies
631.5 Contractual Services - Engineering
632.5 Contractual Services - Accounting
633.5 Contractual Services - Legal
634.5 Contractual Services - Management Fees
635.5 Contractual Services - Testing
636.5 Contractual Services - Other
641.5 Rental of Building/Real Property
642.5 Rental of Equipment
650.5 Transportation Expenses
656.5 Insurance - Vehicle
657.5 Insurance - General Liability
658.5 Insurance – Workman's Compensation
659.5 Insurance - Other
667.5 Regulatory Commission Expense - Other
675.5 Miscellaneous ExpensesTransmission and Distribution Expenses - Maintenance
601.6 Salaries and Wages - Employees
603.6 Salaries and Wages - Officers, Directors and Majority Stockholders
604.6 Employee Pensions and Benefits
618.6 Chemicals
620.6 Materials and Supplies
631.6 Contractual Services - Engineering
632.6 Contractual Services - Accounting
633.6 Contractual Services - Legal
634.6 Contractual Services - Management Fees
635.6 Contractual Services - Testing
636.6 Contractual Services - Other
641.6 Rental of Building/Real Property
642.6 Rental of Equipment
650.6 Transportation Expenses
656.6 Insurance - Vehicle
657.6 Insurance - General Liability
658.6 Insurance – Workman's Compensation
659.6 Insurance - Other
667.6 Regulatory Commission Expense - Other
675.6 Miscellaneous ExpensesCustomer Accounts Expenses
601.7 Salaries and Wages - Employees
603.7 Salaries and Wages - Officers, Directors and Majority Stockholders
604.7 Employee Pensions and Benefits
615.7 Purchased Power
616.7 Fuel for Power Production
620.7 Materials and Supplies
631.7 Contractual Services - Engineering
632.7 Contractual Services - Accounting
633.7 Contractual Services - Legal
634.7 Contractual Services - Management Fees
635.7 Contractual Services - Testing
636.7 Contractual Services - Other
641.7 Rental of Building/Real Property
642.7 Rental of Equipment
650.7 Transportation Expenses
656.7 Insurance - Vehicle
657.7 Insurance - General Liability
658.7 Insurance – Workman's Compensation
659.7 Insurance - Other
667.7 Regulatory Commission Expense - Other
670.7 Bad Debt Expense
675.7 Miscellaneous ExpensesAdministrative and General Expenses
601.8 Salaries and Wages - Employees
603.8 Salaries and Wages - Officers, Directors and Majority Stockholders
604.8 Employee Pensions and Benefits
615.8 Purchased Power
616.8 Fuel for Power Production
620.8 Materials and Supplies
631.8 Contractual Services - Engineering
632.8 Contractual Services - Accounting
633.8 Contractual Services - Legal
634.8 Contractual Services - Management Fees
635.8 Contractual Services - Testing
636.8 Contractual Services - Other
641.8 Rental of Building/Real Property
642.8 Rental of Equipment
650.8 Transportation Expenses
656.8 Insurance - Vehicle
657.8 Insurance - General Liability
658.8 Insurance – Workman's Compensation
659.8 Insurance - Other
666.8 Regulatory Commission Expenses - Amortization of Rate Case Expense
667.8 Regulatory Commission Expense - Other
670.8 Depreciation and Amortization
675.8 Miscellaneous ExpensesCLASS A AND B WASTEWATER OPERATING REVENUE ACCOUNTS
521 Flat Rate Revenues
521.1 Residential Revenues
521.2 Commercial Revenues
521.3 Industrial Revenues
521.4 Revenues From Public Authorities
521.5 Multiple Family Dwelling Revenues
521.6 Other Revenues
522 Measured Revenue
522.1 Residential Revenues
522.2 Commercial Revenues
522.3 Industrial Revenues
522.4 Revenues From Public Authorities
522.5 Multiple Family Dwelling Revenues
523 Revenues From Public Authorities
524 Revenues From Other Systems
525 Interdepartmental Revenues
530 Guaranteed Revenues
531 Sale of Sludge
532 Forfeited Discounts
534 Rents From Wastewater Property
535 Interdepartmental Rents
536 Other Wastewater Revenues
540 Flat Rate Reuse Revenues
540.1 Residential Reuse Revenues
540.2 Commercial Reuse Revenues
540.3 Industrial Reuse Revenues
540.4 Reuse Revenues From Public Authorities
540.5 Other Revenues
541 Measured Reuse Revenue
541.1 Residential Reuse Revenues
541.2 Commercial Reuse Revenues
541.3 Industrial Reuse Revenues
541.4 Reuse Revenues From Public Authorities
544 Reuse Revenues From Other Systems
CLASS A AND B WASTEWATER UTILITIES OPERATION AND MAINTENANCE EXPENSE ACCOUNTSCollection Expenses - Operations
701.1 Salaries and Wages - Employees
703.1 Salaries and Wages - Officers, Directors and Majority Stockholders
704.1 Employee Pensions and Benefits
715.1 Purchased Power
716.1 Fuel for Power Production
718.1 Chemicals
720.1 Materials and Supplies
731.1 Contractual Services - Engineering
732.1 Contractual Services - Accounting
733.1 Contractual Services - Legal
734.1 Contractual Services - Management Fees
735.1 Contractual Services - Testing
736.1 Contractual Services - Other
741.1 Rental of Building/Real Property
742.1 Rental of Equipment
750.1 Transportation Expenses
756.1 Insurance - Vehicle
757.1 Insurance - General Liability
758.1 Insurance – Workman's Compensation
759.1 Insurance - Other
775.1 Miscellaneous ExpensesCollection Expenses - Maintenance
701.2 Salaries and Wages - Employees
703.2 Salaries and Wages - Officers, Directors and Majority Stockholders
704.2 Employee Pensions and Benefits
718.2 Chemicals
720.2 Materials and Supplies
731.2 Contractual Services - Engineering
732.2 Contractual Services - Accounting
733.2 Contractual Services - Legal
734.2 Contractual Services - Management Fees
735.2 Contractual Services - Testing
736.2 Contractual Services - Other
741.2 Rental of Building/Real Property
742.2 Rental of Equipment
750.2 Transportation Expenses
756.2 Insurance - Vehicle
757.2 Insurance - General Liability
758.2 Insurance – Workman's Compensation
759.2 Insurance - Other
775.2 Miscellaneous ExpensesPumping Expenses - Operations
701.3 Salaries and Wages - Employees
703.3 Salaries and Wages - Officers, Directors and Majority Stockholders
704.3 Employee Pensions and Benefits
715.3 Purchased Power
716.3 Fuel for Power Production
718.3 Chemicals
720.3 Materials and Supplies
731.3 Contractual Services - Engineering
732.3 Contractual Services - Accounting
733.3 Contractual Services - Legal
734.3 Contractual Services - Management Fees
735.3 Contractual Services - Testing
736.3 Contractual Services - Other
741.3 Rental of Building/Real Property
742.3 Rental of Equipment
750.3 Transportation Expenses
756.3 Insurance - Vehicle
757.3 Insurance - General Liability
758.3 Insurance – Workman's Compensation
759.3 Insurance - Other
775.3 Miscellaneous ExpensesPumping Expenses - Maintenance
701.4 Salaries and Wages - Employees
703.4 Salaries and Wages - Officers, Directors and Majority Stockholders
704.4 Employee Pensions and Benefits
718.4 Chemicals
720.4 Materials and Supplies
731.4 Contractual Services - Engineering
732.4 Contractual Services - Accounting
733.4 Contractual Services - Legal
734.4 Contractual Services - Management Fees
735.4 Contractual Services - Testing
736.4 Contractual Services - Other
741.4 Rental of Building/Real Property
742.4 Rental of Equipment
750.4 Transportation Expenses
756.4 Insurance - Vehicle
757.4 Insurance - General Liability
758.4 Insurance – Workman's Compensation
759.4 Insurance - Other
775.4 Miscellaneous ExpensesTreatment and Disposal Expenses - Operations
701.5 Salaries and Wages - Employees
703.5 Salaries and Wages - Officers, Directors and Majority Stockholders
704.5 Employee Pensions and Benefits
710.5 Purchased Wastewater Treatment
711.5 Sludge Removal Expense
715.5 Purchased Power
716.5 Fuel for Power Production
718.5 Chemicals
720.5 Materials and Supplies
731.5 Contractual Services - Engineering
732.5 Contractual Services - Accounting
733.5 Contractual Services - Legal
734.5 Contractual Services - Management Fees
735.5 Contractual Services - Testing
736.5 Contractual Services - Other
741.5 Rental of Building/Real Property
742.5 Rental of Equipment
750.5 Transportation Expenses
756.5 Insurance - Vehicle
757.5 Insurance - General Liability
758.5 Insurance – Workman's Compensation
759.5 Insurance - Other
775.5 Miscellaneous Expenses
Treatment and Disposal Expenses - Maintenance701.6 Salaries and Wages - Employees
703.6 Salaries and Wages - Officers, Directors and Majority Stockholders
704.6 Employee Pensions and Benefits
711.6 Sludge Removal Expense
718.6 Chemicals
720.6 Materials and Supplies
731.6 Contractual Services - Engineering
732.6 Contractual Services - Accounting
733.6 Contractual Services - Legal
734.6 Contractual Services - Management Fees
735.6 Contractual Services - Testing
736.6 Contractual Services - Other
741.6 Rental of Building/Real Property
742.6 Rental of Equipment
750.6 Transportation Expenses
756.6 Insurance - Vehicle
757.6 Insurance - General Liability
758.6 Insurance – Workman's Compensation
759.6 Insurance - Other
775.6 Miscellaneous ExpensesCustomer Accounts Expenses
701.7 Salaries and Wages - Employees
703.7 Salaries and Wages - Officers, Directors and Majority Stockholders
704.7 Employee Pensions and Benefits
715.7 Purchased Power
716.7 Fuel for Power Production
720.7 Materials and Supplies
731.7 Contractual Services - Engineering
732.7 Contractual Services - Accounting
733.7 Contractual Services - Legal
734.7 Contractual Services - Management Fees
735.7 Contractual Services - Testing
736.7 Contractual Services - Other
741.7 Rental of Building/Real Property
742.7 Rental of Equipment
750.7 Transportation Expenses
756.7 Insurance - Vehicle
757.7 Insurance - General Liability
758.7 Insurance – Workman's Compensation
759.7 Insurance - Other
770.7 Bad Debt Expense
771.7 Depreciation and Amortization
775.7 Miscellaneous ExpensesAdministrative and General Expenses
701.8 Salaries and Wages - Employees
703.8 Salaries and Wages - Officers, Directors and Majority Stockholders
704.8 Employee Pensions and Benefits
715.8 Purchased Power
716.8 Fuel for Power Production
720.8 Materials and Supplies
731.8 Contractual Services - Engineering
732.8 Contractual Services - Accounting
733.8 Contractual Services - Legal
734.8 Contractual Services - Management Fees
735.8 Contractual Services - Testing
736.8 Contractual Services - Other
741.8 Rental of Building/Real Property
742.8 Rental of Equipment
750.8 Transportation Expenses
756.8 Insurance - Vehicle
757.8 Insurance - General Liability
758.8 Insurance – Workman's Compensation
759.8 Insurance - Other
775.8 Miscellaneous ExpensesReclaimed Water Treatment Expenses - Operations
701.9 Salaries and Wages - Employees
703.9 Salaries and Wages - Officers, Directors and Majority Stockholders
704.9 Employee Pensions and Benefits
715.9 Purchased Power
716.9 Fuel for Power Production
718.9 Chemicals
720.9 Materials and Supplies
731.9 Contractual Services - Engineering
732.9 Contractual Services - Accounting
733.9 Contractual Services - Legal
734.9 Contractual Services - Management Fees
735.9 Contractual Services - Testing
736.9 Contractual Services - Other
741.9 Rental of Building/Real Property
742.9 Rental of Equipment
750.9 Transportation Expenses
756.9 Insurance - Vehicle
757.9 Insurance - General Liability
758.9 Insurance – Workman's Compensation
759.9 Insurance - Other
775.9 Miscellaneous ExpensesReclaimed Water Treatment Expenses - Maintenance
701.10 Salaries and Wages - Employees
703.10 Salaries and Wages - Officers, Directors and Majority Stockholders
704.10 Employee Pensions and Benefits
718.10 Chemicals
720.10 Materials and Supplies
731.10 Contractual Services - Engineering
732.10 Contractual Services - Accounting
733.10 Contractual Services - Legal
734.10 Contractual Services - Management Fees
735.10 Contractual Services - Testing
736.10 Contractual Services - Other
741.10 Rental of Building/Real Property
742.10 Rental of Equipment
750.10 Transportation Expenses
756.10 Insurance - Vehicle
757.10 Insurance - General Liability
758.10 Insurance – Workman's Compensation
759.10 Insurance - Other
775.10 Miscellaneous ExpensesReclaimed Water Distribution Expenses - Operations
701.11 Salaries and Wages - Employees
703.11 Salaries and Wages - Officers, Directors and Majority Stockholders
704.11 Employee Pensions and Benefits
715.11 Purchased Power
716.11 Fuel for Power Production
718.11 Chemicals
720.11 Materials and Supplies
731.11 Contractual Services - Engineering
732.11 Contractual Services - Accounting
733.11 Contractual Services - Legal
734.11 Contractual Services - Management Fees
735.11 Contractual Services - Testing
736.11 Contractual Services - Other
741.11 Rental of Building/Real Property
742.11 Rental of Equipment
750.11 Transportation Expenses
756.11 Insurance - Vehicle
757.11 Insurance - General Liability
758.11 Insurance – Workman's Compensation
759.11 Insurance - Other
775.11 Miscellaneous ExpensesReclaimed Water Distribution Expenses - Maintenance
701.12 Salaries and Wages - Employees
703.12 Salaries and Wages - Officers, Directors and Majority Stockholders
704.12 Employee Pensions and Benefits
718.12 Chemicals
720.12 Materials and Supplies
731.12 Contractual Services - Engineering
732.12 Contractual Services - Accounting
733.12 Contractual Services - Legal
734.12 Contractual Services - Management Fees
735.12 Contractual Services - Testing
736.12 Contractual Services - Other
741.12 Rental of Building/Real Property
742.12 Rental of Equipment
750.12 Transportation Expenses
756.12 Insurance - Vehicle
757.12 Insurance - General Liability
758.12 Insurance – Workman's Compensation
759.12 Insurance - Other
775.12 Miscellaneous Expenses
CLASS C WATER OPERATING REVENUE ACCOUNTS460 Unmetered Water Revenue
460.1 Unmetered Sales to Residential Customers
460.2 Unmetered Sales to Commercial Customers
460.3 Unmetered Sales to Industrial Customers
460.4 Unmetered Sales to Public Authorities
460.5 Unmetered Sales to Multiple Family Dwellings
460.6 Unmetered Sales - Other
461 Metered Water Revenue
461.1 Metered Sales to Residential Customers
461.2 Metered Sales to Commercial Customers
461.3 Metered Sales to Industrial Customers
461.4 Metered Sales to Public Authorities
461.5 Metered Sales to Multiple Family Dwellings
462 Fire Protection Revenue
465 Sales to Irrigation Customers
466 Sales for Resale
469 Guaranteed Revenues
474 Other Water Revenues
CLASS C WATER OPERATION AND MAINTENANCE EXPENSE ACCOUNTS601 Salaries and Wages - Employees
603 Salaries and Wages - Officers, Directors and Majority Stockholders
604 Employee Pensions and Benefits
610 Purchased Water
615 Purchased Power
616 Fuel for Power Production
618 Chemicals
620 Materials and Supplies
630 Contractual Services - Billing
631 Contractual Services - Professional
635 Contractual Services - Testing
636 Contractual Services - Other
640 Rents
650 Transportation Expenses
655 Insurance Expense
665 Regulatory Commission Expenses
670 Bad Debt Expense
671 Depreciation and Amortization
675 Miscellaneous Expenses
CLASS C WASTEWATER OPERATING REVENUE ACCOUNTS521 Flat Rate Revenues
521.1 Residential Revenues
521.2 Commercial Revenues
521.3 Industrial Revenues
521.4 Revenues From Public Authorities
521.5 Multiple Family Dwelling Revenues
521.6 Other Revenues
522 Measured Revenue
522.1 Residential Revenues
522.2 Commercial Revenues
522.3 Industrial Revenues
522.4 Revenues From Public Authorities
522.5 Multiple Family Dwelling Revenues
524 Revenues From Other Systems
530 Guaranteed Revenues
536 Other Wastewater Revenues
CLASS C WASTEWATER OPERATION AND MAINTENANCE EXPENSE ACCOUNTS701 Salaries and Wages - Employees
703 Salaries and Wages - Officers, Directors and Majority Stockholders
704 Employee Pensions and Benefits
710 Purchased Wastewater Treatment
711 Sludge Removal Expense
715 Purchased Power
716 Fuel for Power Production
718 Chemicals
720 Materials and Supplies
730 Contractual Services - Billing
731 Contractual Services - Professional
735 Contractual Services - Testing
736 Contractual Services - Other
740 Rents
750 Transportation Expenses
755 Insurance Expenses
770 Bad Debt Expense
771 Depreciation and Amortization
775 Miscellaneous Expenses
DEPRECIATION OF UTILITY ASSETSThe following list of categories of utility capital assets and the estimated useful lives may be used for a guide for calculating depreciation expense. Due consideration should be given to a governmental unit’s past history and other factors when determining useful lives.
The following information concerning estimating useful lives for certain capital assets was taken from the Government Finance Officers Association website on January 1, 2019, www.gfoa.org.
Estimated Useful Lives of Capital Assets
Background:Generally accepted accounting principles (GAAP) require, in most cases, that capital assets be depreciated. Depreciation is the systematic and rational allocation of the historical cost of a capital asset over its useful life. The estimated useful life assigned to a capital asset will directly affect the amount of depreciation expense reported each period in an accrual-based operating statement. Therefore, it is important to the quality of financial reporting that governments establish reasonable estimates of the useful lives of all of their depreciable capital assets.
Recommendation:
The best source of relevant information on the estimated useful lives of a government’s capital assets normally is its own past experience with similar assets. In situations where the documentation of a government’s own past experience for a given type of capital asset is not adequate for this purpose, a government should profit as much as possible from the experience of other governments and private-sector enterprises. At the same time, a government should make whatever adjustments are needed to estimated useful lives that were obtained from others to ensure that such estimates are appropriate to its own particular circumstances. It is especially important that a government consider the potential effect of each of the following factors when depending on the experience of others:
* Quality. Similar assets may differ substantially in quality, and hence in their useful lives, because of differences in materials, design and workmanship. For example, an asphalt road will not have the same useful life as a concrete road. Likewise, the depth of the material used for paving purposes, as well as the quality of the underlying base, will also affect the useful life of a road;
* Application. The useful life of a given type of capital asset may vary significantly depending upon its intended use. For example, a residential street may be expected to have a longer useful life than a major arterial thoroughfare because of differences in the type and volume of traffic; and
* Environment. Environmental differences among governments can have an important impact on the useful lives of their respective capital assets. For instance, the useful life of a road in a climate subject to extremes in temperature is likely to be different from that of a similar road located in a more temperate climate. Also, regulatory obsolescence may shorten the service life of some capital assets used in connection with highly regulated activities (e.g., utilities).
The potential effect of each of the factors just described may be mitigated or exacerbated as a consequence of a government’s maintenance and replacement policy. For example, the potential for road damage is increased in a cold environment when cracks are not promptly repaired, because water settling in the cracks will expand and contract, thereby accelerating the initial deterioration represented by the crack itself.Once established, estimated useful lives for major categories of capital assets should be periodically compared with a government’s actual experience and appropriate adjustments should be made to reflect this experience.
Depreciation is a financial reporting concept. Therefore, all of the considerations just discussed are only of concern to the extent that they could have a material impact on a government’s financial statements.
Committee:
Accounting, Auditing, and Financial Reporting (CAAFR)Notes:
This best practice was previously titled Determining the Estimated Useful Lives of Capital Assets. - Definitions
Section C, to mean “cash” or a group of accounts set aside for the purpose of accounting for monies or other resources of general functions or specific activities, such as utilities, construction projects, or other activities of a city or town in accordance with the system of accounts prescribed by the State Board of Accounts or as required by statute.
Funds prescribed for use by cities and towns are the General Fund, special revenue funds, debt service funds, capital projects funds, permanent funds, proprietary funds-enterprise funds, internal service funds, fiduciary funds, pension trust funds, investment trust funds, private-purpose trust funds, and agency funds.
Fund types and account groups are defined in more detail in later on this page. A listing of funds presently in use by cities and towns are classified in the proper fund type and may be found in more detail in later on this page.
In order to conserve space, detail accounts are not listed for all fund revenue and expenditure categories. For further detail information relating to revenue and expenditure categories, please refer to the Chart of Accounts in section.
- General Fund
SCOPE
GAAFR defines the General Fund as the fund used to account for all financial resources except those required to be accounted for in another fund. The General Fund is the general operating fund of the municipality. Tax revenues and other receipts that are not allocated by law or contractual agreement to another fund are accounted for in this fund. The general operating expenditures of the municipality are paid from the General Fund.
To summarize, the General Fund shall be used for current general operations of the city or town.
CASHThe General Fund cash balance should be determinable from analysis of the Ledger of Receipts, Disbursements and Balances (City and Town Form No. 208); i.e., the opening cash balance, plus cash receipts, less cash disbursements, equals the current cash balance.
RECEIPTSThe following type revenue receipts (account numbers) are common to the General Fund:
310 Taxes
311 General Property Taxes
312 Other Taxes320 Licenses and Permits
321 Business Licenses and Permits
322 Nonbusiness Licenses and Permits330 Intergovernmental Revenues
331 Federal Operating Grants
332 Federal Shared Revenues
333 Federal Payments in Lieu of Taxes
334 State Operating Grants
335 State Shared Revenues
335.1 Financial Institutions Tax
335.2 Auto and Aircraft Excise
335.3 Certified Shares (Local Income Tax)
335.4 Property Tax Replacement Credit (Local Income Tax)
335.7 Commercial Vehicle Excise Tax
335.8 Liquor Excise Tax Distributions (ATC)
335.9 Liquor Gallonage Tax Distributions
335.10 Cigarette Tax Distributions
335.18 Wagering Tax Distributions
335.24 Other340 Charges for Services
350 Fines and Forfeitures
360 Miscellaneous Revenue
361 Interest on Investments
362 Rental of Property
364 Cable TV Franchise
367 Contributions and Donations From Private Sources
390 Other Financing Sources
391 Interfund Transfers
391.1 Transfer From Parking Meter Fund
391.2 Transfer From Cumulative Capital Improvement Fund
391.3 Transfer From Dormant Fund
392 Proceeds of Capital Asset Dispositions
393 Proceeds From Long-Term Debt
393.1 General Obligation Bond Proceeds
393.2 Premiums on Bonds Sold
394 Temporary Loan From Fund
395 Sale of Investments
396 Refunds
397 Other
DISBURSEMENTS410 Personal Services
411 Salaries and Wages - Cities and Those Towns Using Departmentalized Budgets
411.01 Department (See Note)
411.011 Department Head
411.012 Deputies
411.013 Regular
411.014 Temporary
411.015 Other
411.016 Overtime Excess Compensation
412 Salaries and Wages - Towns Without Departmentalized Budgets
412.01 Salaries of Town Council Members
412.02 Salary of Clerk-Treasurer
412.021 Salary of Clerk-Treasurer
412.022 Deputies
412.023 Regular
412.024 Temporary
412.025 Other
412.026 Overtime Excess Compensation
412.03 Salary of Town Manager
412.031 Town Manager
412.033 Regular
412.034 Temporary
412.035 Other
412.036 Overtime Excess Compensation
NOTE: .01 to .99 should be used for number each department. .011 to .991, .012 to .992, etc., should be used for each corresponding department head.412 Salaries and Wages - Towns Without Departmentalized Budgets (Continued)
412.04 Salary of Town Marshal
412.041 Town Marshal
412.042 Deputies
412.043 Regular
412.044 Temporary
412.045 Other
412.046 Overtime Excess Compensation
412.04 Salary of Fire Chief
412.51 Fire Chief
412.52 Firemen
412.053 Regular
412.054 Temporary
412.055 Other
412.056 Overtime Excess Compensation
412.06 Salary of Street Superintendent
412.061 Superintendent
412.062 Assistant Superintendent
412.063 Regular
412.064 Temporary
412.065 Other
412.066 Overtime Excess Compensation
412.07 Salary of Town Attorney
412.071 Town Attorney
412.072 Deputies
412.073 Regular
412.074 Temporary
412.075 Other
412.076 Overtime Excess Compensation
413 Employee Benefits - All Cities and Towns
413.01 Employer's Share of Social Security (FICA)
413.02 Employer's Share of Medicare Tax
413.03 Employer's Share of Retirement (PERF)
413.04 Unemployment Compensation
413.05 Employer's Share of Group Insurance - Health and Accident
413.06 Employer's Share of Group Insurance - Life
413.07 Clothing Allowance - Firemen and Policemen
413.08 Auto Allowance - Volunteer Firemen
413.09 Employer's Share of 1977 Firemen's Pension Contributions
413.10 Employer's Share of 1977 Policemen Pension Contributions
413.11 Other Employee Benefits
414 Self-Funded Insurance
414.01 Administrative Fee
414.02 Claims - Physicians and Surgeons
414.03 Claims - Hospitals and Other Providers
415 Other Personal Services420 Supplies
421 Office Supplies
422 Operating Supplies
423 Repair and Maintenance Supplies
429 Other Supplies430 Other Services and Charges
431 Professional Services
432 Communication and Transportation
433 Printing and Advertising
434 Insurance (Other Than Employer's Share of Group Insurance)
435 Utility Services
436 Repairs and Maintenance (By Contract or Outside Suppliers)
437 Rentals
438 Debt Service
439 Other Services and Charges
439.01 Refunds, Awards, Indemnities
439.02 Pension Benefits
439.03 Subscriptions
439.04 Premiums on Official Bonds
439.05 Grants and Subsidies
439.06 Garbage and Trash Collection Contract
439.07 Election Expense
439.08 Organization Memberships and Dues
439.09 Other440 Capital Outlay
441 Land
442 Infrastructure
443 Buildings
444 Improvements Other Than Buildings
445 Machinery and Equipment
449 Other Capital Outlays
450 Other Financing
451 State Board of Accounts
452 Interfund Operating Transfer
453 Temporary Loan to __________ Fund
454 Purchase of Investments
459 Other - Special Revenue Funds
DEFINITION
GAAFR defines special revenue funds as those funds used to account for the proceeds of special revenue sources (other than those from major capital projects) that are legally restricted to expenditures for specific purposes. The most common special revenue type funds found in cities and towns are the motor vehicle highway fund, local road and street fund, riverboat, park and recreation operating fund, cemetery operating fund, aviation operating fund, parking meter fund and rainy day fund. See the following pages for discussion of each special revenue fund mentioned. Any other special revenue type funds of the municipality shall be accounted for in a similar matter.
MOTOR VEHICLE HIGHWAY FUNDREFERENCE: IC 8-14-1
SCOPE
The primary purpose of this special revenue type fund is to account for state motor vehicle highway distributions. If a property tax levy is made for such fund, the proceeds shall also be accounted for in the motor vehicle highway fund.
A complete detail of approved uses is listed in IC 8-14-1-5. At least 50% of the distributions received from the state motor vehicle highway account must be used for construction, reconstruction, and preservation and will be accounted in a sub-fund of the Motor Vehicle Highway Fund called MVH Restricted.
RECEIPTSThe following types of revenue are common to the motor vehicle highway fund. If a tax levy is made the following taxes would be collected:
310 Taxes
311 General Property Taxes
312 Other Taxes320 Licenses and Permits
321 Business Licenses and Permits
322 Nonbusiness Licenses and Permits330 Intergovernmental Revenues
335 State Shared Revenues
335.1 Financial Institutions Tax
335.2 Auto and Aircraft Excise Taxes
335.3 Certified Shares (LIT)
335.4 Property Tax Replacement Credit (LIT)
335.6 Wheel Tax/Surtax
335.7 Commercial Vehicle Excise Tax
335.14 Gasoline Tax - Motor Vehicle Highway Fund
335.20 Major Moves Construction Fund Distributions
335.24 Other340 Charges For Services
343 Highways and Streets
343.5 Mowing Weeds
343.6 Sweeping Streets
349 Other
349.6 State Reimbursement for Services - State Highway Sweeping360 Miscellaneous Revenue
361 Interest on Investments390 Other Financing Sources
392 Proceeds of Capital Asset Dispositions
395 Sale of Investments
396 RefundsDISBURSEMENTS
The Chart of Accounts and expenditure categories will be the same that is provided for the General Fund. However, only those categories in the General Fund that are related to the purposes stated in IC 8-14-1-5 can be used.ANNUAL OPERATIONAL REPORT
In addition to the foregoing, an annual operational report is required in cities and towns with populations of 15,000 or more. [IC 8-17-4.1] Such report must disclose receipts and expenditures of the street department, the number of employees, the department’s proposed construction, reconstruction, and preservation program for the following year, and maintenance expenses.
LOCAL ROAD AND STREET FUNDREFERENCE: IC 8-14-2
SCOPE
The Statutory purposes of this special revenue type fund is to account for state gasoline tax distributions made from the local road and street account. Purposes for which the distributions may be expended are listed at IC 8-14-2-5.
RECEIPTS
300 Intergovernmental Revenues
335 State Shared Revenues
335.15 Gasoline Tax - Local Road and Street Fund360 Miscellaneous Revenues
361 Interest on Investments390 Other Financing Sources
395 Sale of Investments
396 RefundsDISBURSEMENTS
The same Chart of Accounts and expenditure categories will be followed that is provided for the motor vehicle highway fund with the only difference being no administrative or indirect cost can be paid from the local road and street fund. For instance, no expenditures would be made under 411.01, Department Head, or 412.061, Superintendent (Salary of Street Superintendent).
RIVERBOAT FUNDREFERENCE: IC 36-1-8-9
SCOPE
Each city or town that receives tax revenue under IC 4-33-12-6, IC 4-33-13, or an agreement to share a city’s or county’s part of the tax revenue may establish a riverboat fund. Money in the fund may be used for any legal or corporate purpose of the city or town.
The riverboat fund shall be administered by the clerk-treasurer, and the expenses of administering the fund shall be paid from money in the fund. Money in the fund not currently needed to meet the obligations of the fund may be invested in the same manner as other public funds may be invested. Interest that accrues from these investments shall be deposited in the fund. Money in the fund at the end of a particular fiscal year does not revert to the city or town’s General Fund. [IC 36-1-8-9]
RECEIPTS
335 State Shared Revenue
335.18 Wagering Tax Distributions338 Local Government Shared Revenue
360 Miscellaneous Revenues
361 Interest on Investments390 Other Financing Sources
395 Sale of InvestmentsDISBURSEMENTS
As stated previously, money in the fund may be expended for any legal or corporate purpose of the city or town.PARK AND RECREATION OPERATING FUND
REFERENCE: IC 36-10-3
SCOPE
The purpose of this special revenue type fund is to account for the operating receipts and disbursements made in connection with the city or town providing recreation programs and facilities.
RECEIPTS
The following types of receipts are common to the park and recreation operating fund:
228 Other Short-Term Liabilities
228.4 State Sales Tax Collected310 Taxes
311 General Property Taxes
312 Other Taxes330 Intergovernmental Revenues
331 Federal Operating Grants
331.7 Culture and Recreation
334 State Operating Grants
334.7 Culture and Recreation335 State Shared Revenues
335.1 Financial Institutions Tax
335.2 Auto and Aircraft Excise Taxes
335.3 Certified Shares (LIT)
335.4 Property Tax Replacement Credit (LIT)
335.7 Commercial Vehicle Excise Tax
335.24 Other340 Charges for Services
347 Culture and Recreation
347.1 Park Receipts
347.11 Swimming Pool
347.12 Golf Course
347.13 Concession Stand(s)
347.14 Leases360 Miscellaneous Revenue
361 Interest on Investments
362 Rental of Property
367 Contributions and Donations From Private Sources390 Other Financing Sources
392 Proceeds of Capital Asset Dispositions
393 Proceeds From Long-Term Debt
395 Sale of Investments
396 Refunds
DISBURSEMENTSWith the exception of different manners in scheduling personal services as related to municipalities with departmental or non-departmentalized budgets, the same Chart of Accounts and expenditure categories will be followed that is provided for the General Fund.
CEMETERY OPERATING FUNDREFERENCE: IC 23-14-65
SCOPE
The purpose of this special revenue type fund is to account for the operating receipts and disbursements in connection with a city or town owned cemetery.
RECEIPTS
The following types of receipts are common to the cemetery fund:
228 Other Short-Term Liabilities
228.4 State Sales Tax Collected310 Taxes
311 General Property Taxes
312 Other Taxes330 Intergovernmental Revenues
335 State Shared Revenues
355.1 Financial Institutions Tax
335.2 Auto and Aircraft Excise Taxes
335.3 Certified Shares (LIT)
335.4 Property Tax Replacement Credit (LIT)
335.7 Commercial Vehicle Excise Tax
335.24 Other
340 Charges for Services
349 Other
349.1 Sale of Cemetery Lots
349.8 Opening and Closing Graves360 Miscellaneous Revenue
361 Interest on Investments
362 Rental of Property
367 Contributions and Donations From Private Sources390 Other Financing Sources
392 Proceeds of Capital Asset Dispositions
393 Proceeds From Long-Term Debt
395 Sale of Investments
396 RefundsDISBURSEMENTS
With the exception of the manner of accounting for personal services in cities and towns with departmental budgets versus those towns with non-departmentalized budgets, the same Chart of Accounts and expenditure categories will be followed that is provided in the General Fund.
AVIATION OPERATING FUNDREFERENCE: IC 8-22-1 through IC 8-22-5
SCOPE
The purpose of this special revenue type fund is to account for the operating receipts and disbursements in connection with the operation of a city or town owned airport. The general law is found at IC 8-22-1 through IC 8-22-5.
RECEIPTS
The following types of receipts are common to the aviation fund:
228 Other Short-Term Liabilities
228.4 State Sales Tax Collected310 Taxes
311 General Property Taxes
312 Other Taxes330 Intergovernmental Revenues
335 State Shared Revenues
335.1 Financial Institutions Tax
335.2 Auto and Aircraft Excise Taxes
335.3 Certified Shares (LIT)
335.4 Property Tax Replacement Credit (LIT)
335.7 Commercial Vehicle Excise Tax
335.24 Other
340 Charges for Services
349 Other
349.2 Airport Revenues360 Miscellaneous Revenue
361 Interest on Investments
362 Rental of Property (Hangar Rental)
367 Contributions and Donations From Private Sources390 Other Financing Sources
392 Proceeds of Capital Asset Dispositions
393 Proceeds From Long-Term Debt
395 Sale of Investments
396 Refunds
DISBURSEMENTSWith the exception of the manner of accounting for personal services in cities and towns with departmental budgets versus those towns with non-departmentalized budgets, the same Chart of Accounts and expenditure categories will be followed that is provided in the General Fund.
PARKING METER FUNDREFERENCE:
IC 36-9-11 Municipal Parking Facilities
IC 36-9-11.1 Marion County Parking Facilities
IC 36-9-12 Parking Meters and Parking FeesSCOPE
The purpose of this special revenue type fund is to account for the receipts and disbursements in connection with operating city and town owned parking facilities and parking meters.
RECEIPTS
The following types of receipts are common to the parking meter fund:
310 Taxes
311 General Property Taxes
312 Other Taxes330 Intergovernmental Revenues
335 State Shared Revenues
335.1 Financial Institutions Tax
335.2 Auto and Aircraft Excise Taxes
335.3 Certified Shares (LIT)
335.4 Property Tax Replacement Credit (LIT)
335.7 Commercial Vehicle Excise Tax
335.24 Other340 Charges for Services
343 Highways and Streets
343.1 Parking Meter Receipts
343.2 Parking Space Rental
343.4 Penalties - Parking Meter Fines (When Not Required to be Receipted to General Fund)
360 Miscellaneous Revenue
361 Interest on Investments
362 Rental of Property390 Other Financing Sources
392 Proceeds of Capital Asset Dispositions
393 Proceeds From Long-Term Debt
395 Sale of InvestmentsDISBURSEMENTS
With the exception of the manner of accounting for personal services in cities and towns with departmental budgets versus those towns with non-departmentalized budgets, the same Chart of Accounts and expenditure categories will be followed that is provided in the General Fund.APPROPRIATIONS
In all cities, appropriation of parking meter funds by the common council is required in the same manner as other public funds are appropriated. Such appropriations are not subject to review by either the County Tax Adjustment Board or by the Department of Local Government Finance.
PENALTIESPenalties for violations of parking meter ordinances may be receipted either to the General Fund or Parking Meter Fund depending upon the requirement of the ordinance.
In the absence of any provision providing for the disposition of such penalties, they should go to the General Fund.
RAINY DAY FUNDREFERENCE: IC 36-1-8-5.1
SCOPE
The purpose of this special revenue fund is to account for transfers of unused and unencumbered funds under IC 36-1-8-5 (dormant fund balances) or IC 6-3.6-9-15 (supplemental distributions). In any fiscal year, a city or town may transfer not more than ten percent (10%) of the city or town’s annual budget for that fiscal year to the Rainy Day Fund. The fund should be established by ordinance and the ordinance should state the purposes and sources of funding for the fund. Transfers to the Rainy Day Fund may be made at any time during the year.
Supplemental distributions under IC 6-3.6-9-15 and transfers of dormant fund balances are not subject to the ten percent (10%) transfer limitation.
Money in any debt service fund may not be transferred to the Rainy Day Fund.
RECEIPTS
360 Miscellaneous Revenues
361 Interest on Investments390 Other Financing Sources
391 Interfund Operating Transfers
395 Sale of Investments
DISBURSEMENTSThe fiscal body should determine by ordinance the use of the fund which could be for any purpose permitted by state statutes for other revenues of the city or town.
APPROPRIATIONSThe rainy day fund is subject to the same appropriation process as other funds that receive tax money. The Department of Local Government Finance may not reduce the actual or maximum permissible levy of a city or town as a result of a balance on the rainy day fund.
TRANSFERS TO OTHER FUNDSA city or town may permanently transfer, by ordinance or resolution, money in its Rainy Day fund to any other appropriated city or town fund.
- Debt Service Funds
DEFINITION
GAAFR defines debt service funds to be those funds used to account for the accumulation of resources for, and the payment of, long-term debt principal and interest. Formerly this type fund was called a sinking fund. The most common debt service fund found in cities and towns is the bond and interest redemption fund. This fund will be described and all other debt service funds will be accounted for in a similar manner.
BOND AND INTEREST REDEMPTION FUNDSCOPE
This debt service type fund is used to account for repayment of general obligation bond issues of a city or town.
RECEIPTSThe following revenues are common to the bond and interest redemption fund:
310 Taxes
311 General Property Taxes
312 Other Taxes330 Intergovernmental Revenues
335 State Shared Revenues
335.1 Financial Institutions Tax
335.2 Auto and Aircraft Excise Taxes
335.3 Certified Shares (LIT)
335.4 Property Tax Replacement Credit (LIT)
335.7 Commercial Vehicle Excise Tax
335.24 Other
360 Miscellaneous Revenues
361 Interest on Investments
390 Other Financing Sources
393 Proceeds From Long-Term Debt
393.1 General Obligation Bond Proceeds
393.2 Premium and Accrued Interest on Bonds Sold
395 Sale of Investments
396 Refunds
DISBURSEMENTS430 Other Services and Charges
438 Debt Service
438.1 Principal
438.2 Interest
438.3 Paying Agent Fees450 Other Financing Uses
454 Purchase of Investments
PAYMENT OF BONDS AND COUPONSIf the bond ordinance specifically provides for payment of bonds and coupons at a certain bank, payment should be made to the bank, on or immediately prior to each due date for the total amount of bonds maturing and coupons due and payable on such due date plus the paying agent's fees, if any.
The bank should render a statement of such account and turn over paid bonds and coupons periodically, preferably at the end of each month. The clerk-treasurer should keep a record of bonds and coupons paid in the prescribed Bond Register, General Form No. 53, and reconcile this register with each bank statement. The statements and bonds and coupons (properly canceled or stamped to show payment) must be carefully preserved.
Within a reasonable time after the due date of the last maturing bond any balance in the account resulting from bonds or coupons not presented for payment should be returned by the bank to the clerk-treasurer.
If the bond ordinance specifically provides for payment of bonds and coupons at the office of the clerk-treasurer, there would appear to be no authority for a bank to act as paying agent and the presentation and payment would be made at the office of the clerk-treasurer.
- Capital Projects Funds
DEFINITION
GAAFR defines capital projects funds as those funds used to account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by proprietary funds and trust funds). The most common capital projects funds found in all cities and towns are the cumulative capital improvement fund, the cumulative capital development fund, and the general improvement fund.
CUMULATIVE CAPITAL IMPROVEMENT FUND
REFERENCE: IC 6-7-1-31.1SCOPE
This capital projects type fund is used to account for receipts and disbursements of state cigarette tax distributions.
RECEIPTSThe following revenue categories are common to the cumulative capital improvement fund:
330 Intergovernmental Revenues
335 State Shared Revenues
335.11 Cigarette Tax Distributions - Cumulative Capital Improvement Fund360 Miscellaneous Revenues
361 Interest on Investments390 Other Financing Sources
395 Sale of Investments
396 RefundsDISBURSEMENTS
A complete list of uses is in IC 6-7-1-31.1(a).The Attorney General held in Official Opinion No. 32 of 1965, that the term “capital improvement” as used and defined in the law does not contemplate the purchase of “major movable equipment” or any other personal property and the use of such fund for such purposes would be contrary to the express restrictive authority of the law. Such expenditures could be made from the municipality's General Fund after the transfer permitted by IC 6-7-1-31.1(c).
TRANSFERS TO OTHER FUNDS
A city or town may at any time, by ordinance or resolution, transfer to its General Fund money raised under this chapter.
CUMULATIVE CAPITAL DEVELOPMENT FUND
REFERENCE: IC 36-9-15.5SCOPE
This capital projects type fund is used to account for receipts and disbursements of taxes levied under IC 36-9-15.5 for capital project uses.
RECEIPTS
The following type revenue receipts (account number) are common to the Cumulative Capital Development Fund:
310 Taxes
311 General Property Taxes
312 Other Taxes
330 Intergovernmental Revenues
335 State Shared Revenues
335.1 Financial Institutions Tax
335.2 Auto and Aircraft Excise
335.3 Certified Shares (LIT)
335.4 Property Tax Replacement Credit (LIT)
335.7 Commercial Vehicle Excise Tax
335.21 Other360 Miscellaneous Revenues
361 Interest or Investments
390 Other Financing Sources
395 Sale of Investments
396 RefundsDISBURSEMENTS
A complete list of permitted uses is in IC 36-7-15.5.2 The ordinance establishing the fund should list which one(s) of the possible uses are permitted
GENERAL IMPROVEMENT FUNDREFERENCE: IC 36-9-17
The general improvement fund should be classified as a capital projects fund.
The law gives permissive authority to any city or town to establish a permanent revolving fund to be used for financing public improvements which are to be paid for by special assessments. [IC 36-9-17]
Public improvements mentioned include improvements for a public way, public place or to construct, repair or reconstruct sidewalks, curbs, gutters and sewers, drains, streets or alleys. [IC 36-9-17-2 and IC 36-9-17-3]
All collections on such assessments shall be receipted to this fund and all portions of such cost as shall be assumed by the city shall also be receipted to this fund. The aggregate sum which may be appropriated and levied shall not exceed the equivalent of sixteen and sixty-seven hundredths cents ($0.1667) on each one hundred dollars ($100) net taxable valuation of property in the municipality. [IC 36-9-17-5]
The use of this fund eliminates the necessity for issuing Barrett Law bonds. The board shall fix the time within which assessments shall be paid -- which time shall not extend beyond a period of five (5) years. All interest and penalties collected on assessments are to be receipted to the General Fund under IC 36-9-17-6.]
Accounting for the financing of public improvements handled through this revolving fund requires the use of the regular Barrett Law forms and procedures that are applicable.
- Proprietary Funds
Enterprise funds are a common type of proprietary funds. Another type of proprietary fund listed by GAAFR is an internal service fund.
DEFINITIONGAAFR defines “Enterprise Funds” as those funds used to account for operations (a) that are financed and operated in a manner similar to private business enterprises - where the intent of the governing body is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges; or (b) where the governing body has decided that periodic determination of revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes.
The most common examples of enterprise funds are those used for municipally owned water, wastewater, electric and gas utilities. It is possible that the operation of transit systems, airports, swimming pools, golf courses, parking garages, trash pickup or cemeteries might also qualify as an enterprise activity requiring enterprise fund accounting and reporting.
UTILITY FUNDSINTRODUCTION
When the Clerk-Treasurer serves as treasurer of the utility funds each fund shall be kept on City and Town Form No. 208, Ledger of Receipts, Disbursements and Balances, in the same manner as other funds are carried in the ledger. Appropriations are not required since tax levies are not involved.
This manual will not go into detail concerning the handling of water, wastewater, electric, and gas utility funds on a double-entry basis since manuals are ordinarily provided for this purpose by regulatory commissions. A short discussion of each of these utility funds will follow where all of these funds are handled on a single entry basis.
The clerk-treasurer shall keep all of the accounting records of the utilities unless the board employs and authorizes other personnel for such purposes.
The statutes relating to municipally owned utilities are as follows:
IC 8-1-1 - Indiana Utility Regulatory Commission
IC 8-1-2.2 - Municipal Electric Utility Programs
IC 8-1-11.1 - Department of Public Utilities of Consolidated Cities
IC 8-1-12-1 - Utility Service to Certain Hospitals
IC 8-1.5 - Municipal Utilities
IC 8-1.5-1 - Definitions
IC 8-1.5-2 - Transfer, Acquisition and Improvement of Utilities
IC 8-1.5-3 - Operation of Municipally Owned Utilities Generally
IC 8-1.5-3.5 - Water Bill adjustments for undetected leaks
IC 8-1.5-4 - Department of Waterworks in Certain Municipalities
IC 8-1.5-5 - Storm Water Management Systems
IC 36-9-23 - Municipal Sewage Works
IC 36-9-24 - Leasing of Sewage Disposal Facilities
IC 36-9-25 - Sanitation Department in Certain Cities
IC 36-9-26 - Cumulative Building Fund for Municipal SewersThere may be funds in use in cities and towns other than those discussed in this manual; however, the accounting for such funds will follow the procedures provided herein.
UTILITY ACCOUNTING SYSTEMElectric and gas utilities are defined into four classes, Class A, B, C, and D, depending on the amount of annual operating revenues. Water and wastewater utilities are divided into three classes, A, B, and C, also depending on the amount of annual operating revenues. The National Association of Regulatory Utility Commissioners has published charts of accounts for the various classes of utilities and the Indiana Utility Regulatory Commission has adopted these for use by the Indiana municipal utilities. The Uniform System of Accounts pertaining to any particular class may be obtained by writing to the National Association of Regulatory Utility Commissioners, 1101 Vermont Avenue, N.W., Washington, D.C., 20005 or by visiting their website at www.naruc.org.
The accounting manuals classify utilities to their annual operating revenues as follows:
Electric and Gas Utilities
Class A - $2,500,000 or more.
Class B - $1,000,000 or more but less than $2,500,000.
Class C - $150,000 or more but less than $1,000,000.
Class D - $25,000 or more but less than $150,000.
Water and Wastewater Utilities
Class A - $1,000,000 or more.
Class B - $200,000 or more but less than $1,000,000.
Class C - Less than $200,000.Notwithstanding the above classifications, each utility should use the chart of accounts for the classification set by the National Association of Regulatory Utility Commissioners.
Classes A and B must use the double-entry accrual accounting system as prescribed. Municipal utilities which are Class C should use double entry records if possible. I
t is permissible to continue using the simplified single entry cash basis forms prescribed for utilities.A complete list of prescribed municipal utility accounting forms, including wastewater utilities, may be found in in more detail on this page.
WATER UTILITY FUNDSThe purpose of these funds is to account for receipts and disbursements in connection with the operation of a water plant and/or distribution system.
The funds most common to the operation of a Water Utility are as follows:
Water Operating Fund
Water Bond and Interest (Sinking) Fund
Water Depreciation Fund
Water Meter Deposit Fund
RECEIPTSWater Operating Fund
Single Entry Basis - Follow the account classification on Form No. 319, Simplified Cash Journal - Water Utility and the Uniform System of Accounts for Class C Water Utilities approved by the Indiana Utility Regulatory Commission.
Water Bond and Interest (Sinking) FundMonthly transfers from Water Operating Fund in accordance with bond ordinance.
Water Depreciation Fund
Monthly transfers from Water Operating Fund in accordance with bond ordinance.
Water Meter Deposit Fund
Deposits by Consumers.
DISBURSEMENTSWater Operating Fund
Single Entry Basis - Follow the account classifications on Form No. 319, Simplified Cash Journal - Water Utility and the Uniform Systems of Accounts for Class C Water Utilities approved by the Indiana Utility Regulatory Commission.
Water Bond and Interest (Sinking) Fund
Bonds Retired Interest Paid
Paying Agent's Fees Water Depreciation Fund
Major repair and replacement of plant and equipment.Water Meter Deposit Fund
Deposits refunded or applied.
WASTEWATER (SEWAGE) UTILITY FUNDSThe purpose of these funds is to account for receipts and disbursements in connection with the operation of a sewage treatment plant and sanitary sewers. In some instances, storm sewers are also included.
The funds most common to the operation of a Wastewater (Sewage) Utility are as follows:
Wastewater (Sewage) Operating Fund
Wastewater (Sewage) Bond and Interest (Sinking) Fund
Wastewater (Sewage) Depreciation Fund
Wastewater (Sewage) Meter Deposit Fund
RECEIPTSThe following receipts are common to the Wastewater (Sewage) Utility funds:
Wastewater (Sewage) Operating Fund
* Commercial Sales
* Industrial Sales
PenaltiesWastewater (Sewage) Operating Fund
Other Operating
Other Receipts (Nonoperating)
* Rates and charges are usually based on water consumption.
Wastewater (Sewage) Bond and Interest (Sinking) Fund
Monthly transfers from Sewage Operating Fund in accordance with bond ordinance.
Wastewater (Sewage) Depreciation Fund
Monthly transfers from Sewage Operating Fund in accordance with bond ordinance.
DISBURSEMENTSWastewater (Sewage) Operating Fund
Single Entry Basis - Follow the account classifications on Form No. 323, Simplified Cash Journal - Municipal Sewage Utility.
Wastewater (Sewage) Bond and Interest (Sinking) Fund
Bonds Retired
Interest Paid
Paying Agent's Fees
Wastewater (Sewage) Depreciation Fund
Major repair and replacement of plant and equipment.The bond ordinance should be reviewed carefully in order to determine the restrictions placed upon the use of the foregoing fund.
ELECTRIC UTILITY FUNDSThe purpose of these funds is to account for receipts and disbursements in connection with the operation of an electric generating plant and/or distribution system.
The funds most common to the operation of an Electric Utility are as follows:
Electric Operating Fund
Electric Bond and Interest (Sinking) Fund
Electric Depreciation Fund
Electric Meter Deposit Fund
RECEIPTSElectric Operating Fund
Single Entry Basis - Follow the accounting classifications on Form No. 318, Simplified Cash Journal - Electric Utility and the Uniform System of Accounts for Class D Electric Utilities approved by the Indiana Utility Regulatory Commission.
Electric Bond and Interest (Sinking) Fund
Monthly transfers from Electric Operating Fund in accordance with bond ordinance.Electric Depreciation Fund
Monthly transfers from Electric Operating Fund in accordance with bond ordinance.
Electric Meter Deposit Fund
Deposits by consumers.
DISBURSEMENTSElectric Operating Fund
Single Entry Basis - Follow the account classifications on Form No. 318, Simplified Cash Journal - Electric Utility and the Uniform System of Accounts for Class D Electric Utilities approved by the Indiana Utility Regulatory Commission.
Electric Bond and Interest (Sinking) Fund
Bonds Retired Interest Paid
Paying Agent's Fees Electric Depreciation Fund
Major repair and replacement of plant and equipment.Electric Meter Deposit Fund
Deposits refunded or applied.
GAS UTILITY FUNDSThe purpose of these funds is to account for receipts and disbursements in connection with the operation of a gas plant and/or distribution system.
The funds most common to the operation of a Gas Utility are as follows:
Gas Operating Fund
Gas Bond and Interest (Sinking) Fund
Gas Depreciation Fund
Gas Meter Deposit Fund
RECEIPTSGas Operating Fund
Single Entry Basis - Follow the account classifications on Form No. 327, Simplified Cash Journal - Gas Utility and the Uniform System of Accounts for Class D Gas Utilities approved by the Indiana Utility Regulatory Commission.
Gas Bond and Interest (Sinking) Fund
Monthly transfers from Gas Operating Fund in accordance with bond ordinance.
Gas Depreciation FundMonthly transfers from Gas Operating Fund in accordance with bond ordinance.
Gas Meter Deposit Fund
Deposits by consumers.
DISBURSEMENTSGas Operating Fund
Single Entry Basis - Follow the account classifications on Form No. 327, Simplified Cash Journal - Gas Utility and the Uniform System of Accounts for Class D Gas Utilities approved by the Indiana Utility Regulatory Commission.
Gas Bond and Interest (Sinking) Fund
Bonds Retired Interest Paid
Paying Agent's Fees Gas Depreciation Fund
Major repair and replacement of plant and equipment.Gas Meter Deposit Fund
Deposits refunded or applied.
INTERNAL SERVICE FUNDSDEFINITION
GAAFR defines Internal Service Funds as those funds used to report any activity that provides goods or service to other funds, departments or agencies of the primary government and its compositions, or to other governments, on cost reimbursement basis.
Common examples are where separate departments (and separate budgets) outside the General Fund are established (by ordinance) for data processing, garage, or purchasing. In this situation, the following revenues and expenditures may be received and expended.
Revenue
Data Processing:
340 Charges for Service
349.9 Data Processing Charges Expenses
With the exception of personal service, which is handled differently in cities and towns with departmentalized budgets and towns without departmentalized budgets the Chart of Accounts and expenditure categories will be the same that is provided for the General Fund. - Fiduciary Funds
Fiduciary funds are used to report assets held in a trustee or agency capacity, for others. Fiduciary funds include pension trust funds investment trust funds, private-purpose trust funds, and agency funds.
DEFINITIONS
GAAFR defines agency funds used to account for assets held by a governmental unit in a trustee or agency capacity for others and therefore cannot be used to support the government’s own programs. The most common examples of agency funds are the payroll fund, payroll deduction funds, and the Surplus Barrett Law fund.
PENSION TRUST FUNDS
GAAFR defines a pension trust fund as a fiduciary fund type used to report resources that are required to be held in trust for members and beneficiaries of defined benefit pension plans, defined contribution plans, other postemployment benefit plans, or other employee benefit plans.
Examples of pension trust funds are the 1925 Police Pension Fund, the 1937 Firefighters’ Pension Fund, and any Utility Pension Funds.
PAYROLL FUNDIn order to simplify the handling of withholdings from employees' salaries and wages, a city or town may use a “Payroll Fund.”
If the local officials decide to establish a “Payroll Fund,” the following procedures should be used in connection with such fund.
1. “Payroll Fund” is to be printed or typed on each payroll warrant.
2. Each office and department (including utilities if the Clerk-Treasurer is responsible for detail utility records) shall submit a payroll schedule and voucher on General Form No. 99, covering the personal services of that office or department. This form shall include all compensation of the office or department, including salary and wages of the officer, deputies, clerks and other employees. Supplemental records such as time cards, daily logs, and other such supporting records may be prepared and maintained.
3. The individual payrolls will be summarized by the Clerk-Treasurer for each fund, using Form No. 99, but indicating “SUMMARY” on the form. This will compile in total the payrolls for all offices and departments in each fund for each payroll period. Show the payroll claim number in the column headed “Class Title”, and the name of the office or department in the column headed “Name of Employee.”
4. Total the payroll “SUMMARY” for each fund and issue a regular city or town warrant from such fund for the total gross pay and receipt this amount into the payroll fund.
5. Issue payroll warrants from the payroll fund based upon the information on the individual payroll schedules and vouchers submitted by each office and department. Each warrant must be completed in full, showing the gross pay and applicable payroll deductions. It is not necessary to indicate on the payroll warrant the appropriation account to which the warrant is chargeable.
6. Payroll deductions will be accumulated in the payroll fund, and then disbursed from this fund at the proper time to the various receiving agencies by payroll warrants. It is suggested the payroll fund ledger sheet be supported by subsidiary ledger sheets for each type of payroll deduction in order to see that no unidentified balance is allowed to accumulate in the payroll fund.
7. At the close of each pay period the payroll warrants for the period should be totaled and proved to the totals of the payroll summaries for the period. Enter the total of the payroll warrants for the period on the payroll warrant register immediately after the last warrant issued, showing separately the totals of gross pay, each of the payroll deduction columns, and the net amount of the payroll warrants. These totals may then be posted to a “Control Account” in the Employee's Earnings Record, Form No. 99B, thereby furnishing a proof of postings to this record.
8. Posting to appropriation accounts is to be made from the individual payroll schedules and vouchers for the gross amount of the pay. Posting to the respective fund accounts is to be made from the regular city or town warrants issued for transfer of funds to the payroll fund. The totals of amounts posted to the appropriation accounts and the respective fund accounts must agree. Posting to the payroll fund is to be made from the payroll warrants.
9. The individual office or department payroll schedules and vouchers are to be filed in the regular manner. The payroll summaries are to be filed in good order.
PAYROLL DEDUCTION FUNDSPayroll Deduction Funds are used only where a Payroll Fund is not utilized. If a payroll fund is used no separate funds for payroll deductions are needed.
The following are some of the most common of these funds: Federal Withholding Tax Fund
This fund will be receipted from the amounts deducted from the employees' salaries and wages for Federal Withholding Tax.When the tax is paid to the Federal Government it will be entered as a disbursement.
State Withholding Tax Fund
This fund will be receipted with the amounts deducted from employees' salaries and wages for State Withholding Tax.
When the tax is paid to the State, it will be entered as a disbursement.
Social Security Fund
This fund will be receipted with the amounts deducted from employees' salaries and wages for Social Security.
When payment is made to the Internal Revenue Service, it will be entered as a disbursement.
Public Employees' Retirement Fund
This fund will be receipted with the amounts deducted from employees' salaries and wages for the Public Employees' Retirement Fund.
When payment is made to the Indiana Public Retirement System (INPRS), it will be entered as a disbursement.
Payments from the foregoing payroll deduction funds are required to be made by statute, based upon reports made by the Clerk-Treasurer, and there is no provision requiring the agencies to claim the amounts due. The Clerk-Treasurer should simply prepare a claim without certification and attach thereto any copies of reports and workpapers, thus using the claim blank for a jacket only for the purpose of showing the fund on which drawn and accounts to be charged.Other trust and agency funds might include: Group Insurance Fund
This fund will be receipted with the amounts deducted from employees' salaries and wages for group insurance.When payment is made to the insurance company, it will be entered as a disbursement.
With regard to social security, retirement and group insurance funds, there will be contributions to be paid from city or town funds. It is our recommendation that such contributions not be paid into the trust and agency funds monthly. At such time as reports are made to the respective agencies to which payments are due then at that time a warrant will be issued for the city's or town's portion and charged directly to the proper fund and appropriation. If deduction funds are in a separate bank account, reports to the proper agencies will have to be supported by two checks, one drawn on the withholding fund containing employee's contributions and the other drawn on city or town funds and charged direct to the proper expense or appropriation account.
Additional trust and agency funds may be established by the Clerk-Treasurer as warranted; however, the accounting procedure will be the same as indicated for the foregoing funds.
OTHER FIDUCIARY FUNDSConstruction retainage, if held by the city or town, should be accounted for as a fiduciary fund. (IC 36-1-12-14)
Cities and towns that operate courts would account for the user fees the court collects in a city or town user fee fund. (IC 33-37-8-3)
- City and Town Court Funds
FISCAL OFFICER’S DUTIES IN HANDLING COURT FEES
Where a city or town operates a court under IC 33-35, certain fees will be remitted to the city or town’s fiscal officer once each month. Some of the fees will be retained in the general fund, some placed in separate funds, and some fees will be remitted to other governmental units.
COUNTY’S SHARE OF COURT COSTSIC 33-37-7-8(b) states that once each month the city or town fiscal officer shall distribute to the county auditor the county’s share of court costs. City and Town Form No. 220 CT, Report to County Auditor of Court Costs Collected in City/Town Court, shall be used when remitting such fees to the County Auditor.
CREDIT CARD SERVICE FEESThe clerk may contract with a bank or credit card vendor for acceptance of bank or credit cards. If there is a vendor transaction charge or discount fee, whether billed to the clerk or charged directly to the clerk's account, the clerk shall collect a fee from the person using the bank card or credit card. The fee collected is a permitted additional charge to the money the clerk is required to collect.
The clerk may contract with a payment processing company, which may collect a transaction fee from a person using the bank card or credit card. The fee collected is a permitted additional charge to the money the clerk is required to collect.
The clerk shall collect and deposit in the appropriate fund an amount not less than the amount the clerk would collect and deposit if the clerk received payment by a means other than a bank card or credit card. [IC 33-37-6-2]
FEES DEPOSITED IN CITY/TOWN GENERAL FUNDThe following fees, if collected by the court, will be remitted monthly by the court clerk to the city or town fiscal officer and be deposited in the general fund:
1. City/town’s share of court costs.
2. City/town fines.
3. Document fees.
4. Administrative fees.
5. Late payment fees.
6. Credit card service fees.
7. Fiscal officer’s probation administrative fees.
8. Judicial salaries fees.
9. Civil action service fees.
10. Garnishee service fees.
LOCAL USER FEESA city or town user fee fund is established in each city or town having a city or town court for the purpose of supplementing the cost of various program services. The city or town fund shall be administered by the fiscal officer of the city or town.
The city or town fund consists of the following fees collected by a clerk under this article:1. The pretrial diversion program fee.
2. The alcohol and drug services fee.
3. The law enforcement continuing education program fee.
4. The deferral program fee.
5. The problem solving court fee. [IC 33-37-8-3]IC 33-37-8-4 states that upon receipt of monthly claims submitted on oath to the fiscal body by a program listed in IC 33-37-8-3, the fiscal body of the city or town shall appropriate from the city or town fund to that program the amount collected for the program under IC 33-37-5.
FEES DEPOSITED IN SUPPLEMENTAL ADULT PROBATION SERVICES FUNDThe following fees, if collected by the probation department or court clerk, shall be deposited in the supplemental adult probation services fund:
1. Probation user fees.
2. Probation administrative fees.
LAW ENFORCEMENT CONTINUING EDUCATION PROGRAM FEES – FILING VERIFIED STATEMENTS OF CAUSE NUMBERSince the statutes (IC 5-2-8, IC 33-37-8) are silent regarding by whom or in what manner the “verified statement of cause numbers” will be prepared, the State Board of Accounts has adopted the following suggested procedures to handle such filings:
1. The applicable law enforcement agency should prepare the claim. At a minimum, the claim should indicate each fee collected by date of payment, cause number, defendant name, and receipt number if available.
2. The claim should be filed by the law enforcement agency with the fiscal officer of the governmental unit.
3. The fiscal officer shall transmit the claim to the court clerk in order for the claim to be verified.
4. Once the court clerk verifies the fees claimed on the claim, the claim shall be transferred back to the fiscal officer for processing in the same manner as all other claims, i.e. submitted for the board approval and subsequent payment.
5. An alternative to steps 3 and 4 has been approved for some units. In this instance when the court clerk transmits the monthly collection of law enforcement continuing education fees to the fiscal officer, the court clerk includes a listing of the fees transmitted by date of payment, cause number, defendant name, and the law enforcement agency to which the fees are attributable.
By doing this the fiscal officer is able to verify the fees claimed by the various law enforcement agencies and is not required to go back to the court clerk.
It would also be permissible for the law enforcement agency to attach a copy of such listing that is provided by a court to a claim once the law enforcement agency verified the accuracy of the data contained in the listing.
CLERK’S RECORD PERPETUATION FUNDEach Clerk of a City or Town Court shall establish a Clerk’s Record Perpetuation Fund. The Clerk shall deposit in the fund all fees listed in IC 33-37-5-2(a).
Such fees are to be remitted by the Court to the City or Town fiscal officer at the end of each
month.The Clerk of a City or Town Court may use the money in the fund for the preservation of records and the improvement of record keeping systems and equipment, and a case management system. The fund would require appropriation. [IC 33-37-5-2].
- Prescribed and Approved Forms
Forms described and illustrated in this section have been prescribed by the State Board of Accounts pursuant to IC 5-11-1. The approval of alternate accounting forms and systems is discussed in the General Information section. This section is divided into six sections, as follows:
Section A – List of Prescribed General Forms and Prescribed Civil City and Town Forms Section B - Explanation of Use of Prescribed General Forms
Section C - Explanation of Use of Prescribed City and Town Forms Section D - Explanation of Accounts Receivable Control (Utilities) Section E - Explanation of Use of Barrett Law Forms
Section F - Illustrated Forms with Sample Entries
NOTE: The State Board of Accounts does not prescribed a Minute Record. However, this is one of the most important records that will be kept by the Clerk-Treasurer. All official action taken by the council at regular or special meetings together with ordinances passed should be entered in the Minute Record in a timely manner. We recommend that all minutes be signed by the proper official and attested to by the Clerk-Treasurer.
SECTION A – LIST OF PRESCRIBED GENERAL FORMS AND PRESCRIBED CIVIL CITY AND TOWN FORMS
General Form No. Title
53 (1955) Bond Register
86 (Rev. 1947) Contractor's Combination Bid Bond and Bond for Construction
86A (1947) Contractor's Bond for Construction
96 (Rev. 2009) Contractor's Bid for Public Works
98 (Rev. 1998) ** Purchase Order
99 (Rev. 1993) ** Payroll Schedule and Voucher
99A (Rev. 1985) Employee's Service Record
99B (Rev. 1993) Employee's Earnings Record
99C (1985) Employee’s Weekly (Work Period) Earnings Record
99P (Rev. 2009) Publisher's Claim
101 (1955) ** Mileage Claim
102 (1959) Register of Trust Funds
315 (1937) General Ledger Sheet
315A (1953) Inventory Sheet
316 (1961) General Journal
350 (Rev. 1982) Register of Investments
351 (1964) Register of Insurance
352 (Rev. 1997) * General Receipt (See City or Town Forms No.203A or No.217)
353 (1966) * General Warrant (See Town Form No.219)
354 (1966) * General Claim (See City or Town Forms No.201 or No.39)
355 (Rev. 1970) Pension Funds - Schedule of Payments
General Form No. Title
356 (1967) * General Check (See Town Form No.219)
357 (1967) * General Payroll Check (See City Form No.205A-PR)
358 (1967) * Ledger of Receipts, Disbursements and Balances (See City and Town Form No.208)
359 (1967) * Ledger of Appropriations, Encumbrances, Disbursements and Balances (See City and Town Form No.209)
360 (Rev. 1975) * Monthly Financial, Depository Statement and Cash Reconcilement (See City and Town Form No.206)
361 (Rev. 1975) * Treasurer's Daily Balance of Cash, Depositories and Investments (See City and Town Form No.212)
370 (1997) ** Receipt Register* These forms are prescribed for use, if needed, by any organization unit of the city or town, such as Park Department, Park and Recreation Department, Plan Commission, Aviation Commission or Cemetery Board.
Explanation of use of these general forms can be found in Section B.
These general forms are the same in design as those previously prescribed for similar use by the city or town Clerk-Treasurer.
** These forms are illustrated in the appendix.
General Form No. Title
362 (1987) Report of Collections
363 (1970) Report of In-Kind Matching Contributions
364 (Rev. 1997) ** Accounts Payable Voucher Register
365 (1983) Security Deposit Agreement and Receipt
PRESCRIBED CITY AND TOWN FORMSTown Form No.
39 (Rev. 1995) ** Accounts Payable Voucher
217 (Rev. 1997) ** Clerk-Treasurer's Receipt
219 (Rev. 1993) ** Clerk-Treasurer's WarrantCity and Town Form No.
206 (Rev. 1975) ** Clerk-Treasurer's, City Controller's and City Treasurer's Monthly Financial, Depository Statement and Cash Reconcilement
208 (Rev. 1967) ** Ledger of Receipts, Disbursements and Balances
209 (Rev. 1967) ** Ledger of Appropriations, Encumbrances, Disbursements and Balances
209A (1981) Detailed Ledger of Disbursements
210 (1981) Accounts Payable Journal
211 (2003) ** Capital Assets Ledger
212 (Rev. 1975) ** Treasurer's Daily Balance of Cash, Depositories and Investments
220CT (Rev 1996) Report to County Auditor of Court Costs Collected in City/Town Court
** These forms are illustrated in the appendix.
PRESCRIBED CITY FORMSCity Form No. Title
201 (Rev. 1995) Accounts Payable Voucher
203 (Rev. 1925) Treasurer's Receipt (in triplicate)
203A (Rev. 1997) Clerk-Treasurer's Receipt (in duplicate)
205A (1960) Warrant (in duplicate for city having a Clerk-Treasurer)
205A-PR (Rev. 1993) ** Payroll Warrant (in triplicate for city having a Clerk-Treasurer) - Optional Form
214 (Rev. 1946) Depository Record and Warrant Register (Combined with County Form No. 48)City and Town Form No.
206 (Rev. 1975) ** Clerk-Treasurer's, City Controller's and City Treasurer's Monthly Financial, Depository Statement and Cash Reconcilement
208 (Rev. 1967) ** Ledger of Receipts, Disbursements and Balances
209 (Rev. 1967) ** Ledger of Appropriations, Encumbrances, Disbursements and Balances
209A (1981) Detailed Ledger of Disbursements
210 (1981) Accounts Payable Journal
211 (2003) Capital Asset Ledger
212 (Rev. 1975) ** Treasurer's Daily Balance of Cash, Depositories and Investments** These forms are illustrated in the appendix.
PRESCRIBED CITY AND TOWN FORMSBARRETT LAW
City and Town Form No. Title
10 (1955) Memo of Payments Available (use is optional)
15 (Rev. 1939) Cash Book
42 (1914) Public Improvement Bond Register
43 (1914) Primary Assessment Roll
44H (1939) Ledger - Waivered Accounts
46 (Rev. 1929) Improvement Duplicate
232 (1929) Journal of Barrett Law Funds
233 (1929) Receipt for Assessment
233A (1956) Barrett Law Receipt (Waivered Assessment) - Optional Form
234 (Rev. 1968) Notice of Waivered Delinquency
236 (1929) Receipt for Full Payment of Assessment
237 (1929) Notice of Assessment
238H (1939) Ledger of Non-Waivered Accounts
240 (Rev. 1968) Notice of Delinquent Non-Waivered Assessment
241 (1939) Summary of Payments
242 (1961) Receipt for and Schedule of Payments of Bonds and CouponsCITY AND TOWN COURTS
City and Town Form No.
213CT (Rev. 2012) City/Town Court Cash Book
213A (1992) City/Town Court Detailed Ledger of Local User Fees
214CT (Rev. 2012) City/Town Court Receipt
215CT (Rev. 2009) City/Town Court Check
217CT (Rev. 2011) Report to County Auditor of Fines and Fees Collected in City/Town Courts
218CT (Rev 2009) City/Town Court Transmittal Report to Fiscal Officer
219CT (Rev. 2012) City/Town Court Daily/Monthly Balance Record
County Form 41 (1990) Fee Book
General Form 102 (1959) Register of Trust Funds
General Form 367 (1984) Clerk's Report to Auditor of Additional Judgments for Excise Tax
Attorney General Form Report of Unclaimed Funds and Escheated Estates Due State
State Court
Administration Forms Record of Judgments and Orders (RJO)
Chronological Case Summary (CCS) MOTOR VEHICLE HIGHWAY FUND
MUNICIPAL UTILITYUtility Form No. Title
301 (Rev. 1995) ** Municipal Water Utility Accounts Payable Voucher
301S (Rev. 1995) Municipal Sewage Utility Accounts Payable Voucher
304 (Rev. 1997) Water Utility Journal (Class C)
305 (Rev. 1995) Municipal Electric Utility Accounts Payable Voucher
306 (Rev. 1961) Electric Utility Voucher Register (short form) - Class A and B
307 (Rev. 1961) Electric Utility Voucher Register (long form) - Class A and B
308 (Rev. 1961) Electric Utility Cash Journal (Class C)
309 (Rev. 1998) Wastewater Utility Journal
310 (1937) ** Guarantee Deposit Receipt
311 (Rev. 1975) ** Water and Sewage Receipt
312 (Rev. 1963) Electric Receipt
313A (Rev. 1966) ** Register of Daily Cash Receipts - Consumers (Water or Sewage Utility)
313B (1961) Register of Daily Cash Receipts - Consumers (Electric or Gas)
313C (Rev. 1966) Register of Daily Cash Receipts - Consumers (Water and Sewage Utility Combined)
314 (1937) ** Guarantee Deposit Register
316 (1937) Cash Record - Municipal Utility Board of Trustees (Class C - Simplified)
317 (1937) Cash Record - Municipal Utility Board of Trustees (Class A and B)
318 (Rev. 1961) Electric Utility Simplified Cash Journal (Class D)
319 (Rev. 1997) ** Simplified Cash Journal - Water Utility - Class C
320 (1955) Consumer's Ledger - Electric Utility
321 (1955) ** Consumer's Ledger - Water Utility
322 (Rev. 1966) Consumer's Ledger - Municipal Water and Sewage Utility Combined
323 (Rev. 1997) Simplified Cash Journal - Wastewater Utility - Class C
324 (Rev. 1966) Consumer's Ledger - Municipal Sewage Utility
325 (1995) Municipal Gas Utility Accounts Payable Voucher
326 (1961) Gas Utility Cash Journal (Class C)
327 (1961) Gas Utility Simplified Cash Journal (Class D)
328 (1961) Consumer's Ledger - Gas Utility
330 (1997) Revenue Register (Class A and B Water and Wastewater)
331 (1997) Expense Register (Class A and B Water and Wastewater)** These forms are illustrated in the appendix.
- Explanation of Use of Prescribed General Forms
BOND REGISTER (General Form No. 53)
This form provides columns and space for all data required in connection with the issuance of either general obligation or revenue bonds.
When bonds and interest coupons are paid they should be cancelled and the date of payment entered in the bond register. This will enable the Clerk-Treasurer to determine the total amount of the outstanding bonds and interest coupons at any time.
In case any bond has more than 20 coupons attached, the space on the right hand side headed “Memoranda” may be cut off, thus forming a short sheet. As many short sheets may be used as are deemed necessary. The size of the bond register will be determined by the total amount of the bonds issued.
CONTRACTOR'S COMBINATION BID BOND AND BOND FOR CONSTRUCTION (General Form No. 86)This form, properly executed, may accompany any bid for public work and may be used as a guarantee of faithful performance in the case of a successful bidder upon approval by the awarding body. [IC 36-1-12-4.5, IC 36-1-12-13.1, and IC 36-1-12-14]
CONTRACTOR'S BOND FOR CONSTRUCTION (General Form No. 86A)This form, properly executed and approved by the awarding body, will be furnished by the successful bidder as a guarantee of faithful performance in connection with a contract for public work. [IC 36-1-12-13.1 and IC 36-1-12-14]
CONTRACTOR'S BID FOR PUBLIC WORKS (General Form No. 96)This form provides for a bid or proposal in connection with the letting of contracts for public work such as construction, reconstruction, alteration or renovation in accordance with the statutes. [IC 36-1-12]
PURCHASE ORDER (General Form No. 98)This form is used in conjunction with City and Town Form No. 209, Ledger of Appropriations, Encumbrances, Disbursements and Balances. Provision is made for certification of an unobligated balance being available in the appropriation from which purchase is to be made, in compliance with the law.
This will require the encumbering of appropriations for each order as it is issued.
It is necessary that all orders pass through the hands of the Clerk-Treasurer, who is responsible for appropriation accounting.
The original will be delivered to the vendor, the duplicate copy filed with the purchasing authority and the triplicate copy filed with the Clerk-Treasurer.
The purchase order number must appear on all invoices and claims or original order prepared by the vendor.
Provision is made on copies for certificate of the party receiving the merchandise. In case of centralized purchasing, a copy should be delivered to the department for execution of this certificate, to be signed and returned to the purchasing authority upon receipt of the merchandise.
Purchase orders issued on bids and contracts must be delivered to the vendor within thirty (30) days after acceptance by the board. [IC 5-22-18-5]The original copy of a purchase order must be given to the vendor at the time of purchase.
The original purchase order issued to the vendor at the time the purchase is made must accompany the bill or invoice and accounts payable voucher to the department before payment is made, or the number thereof must be shown on the bill or invoice and accounts payable voucher.
An itemized accounts payable voucher covering the purchase must be filed with the department after delivery is made.
Important. The order comes first, in the same manner as though an order was being made from a catalog. The Clerk-Treasurer must be advised of the order so that the fund will be encumbered and not obligated more than once. The bill or invoice and accounts payable voucher must be fully prepared, not just a statement of account.
It is to the advantage of the Clerk-Treasurer to know at all times what purchases have been entered into and how the appropriation ledger stands, for purposes of anticipating the year's needs.
This form is illustrated in the appendix.
PAYROLL SCHEDULE AND VOUCHER (General Form No. 99)This form should be used for all payrolls.
Each claim should be certified to by the department head and the Clerk-Treasurer in the appropriate sections provided thereon. The Clerk-Treasurer may elect to certify on the Accounts Payable Voucher Register, General Form No. 364, in lieu of certifying each Payroll Schedule and Voucher.
Payroll claims should be numbered along with other claims.
Approval signatures by a majority of the board is required in the appropriate section unless the Accounts Payable Voucher Register, General Form No. 364, is signed.
Posting from this form will be to the Ledger of Appropriations, Encumbrances, Disbursements and Balances, City and Town Form No. 209, for the gross amount of the pay and to the Employee's Earnings Record, General Form No. 99B.
Payroll claims should be filed with other claims in numerical order. This form is illustrated in the appendix.
EMPLOYEE'S SERVICE RECORD (General Form No. 99A)
This form must be kept by each office or department for each employee in order to properly prepare “Payroll Schedule and Voucher, General Form No. 99.” It records the hours or days worked, sick leave, vacation and days lost. It may also be used to comply with the requirements of IC 5-11-9-4 regarding recording hours worked each day by an employee. It is suggested that these be arranged alphabetically, by calendar year.
In those few instances where elected officials choose to be included in an employee benefit policy (and were included in the authorizing ordinance), the officials must maintain proper attendance records (the same as all other city and town employees).
EMPLOYEE'S EARNINGS RECORD (General Form No. 99B)This form is for the purpose of recording the compensation paid each employee and at the same time record the various authorized deductions from such pay.
Provision is made for name and address of employee, social security number, rate of pay, gross pay, deductions for withholding tax and other items, and net amount paid. Provision is also made for quarterly totals and grand totals at the close of the calendar year.
All compensation paid to each employee shall be recorded on this form. An account will be carried for each employee regardless of whether or not tax or other deductions are made.
Posting to this record will be made from “Payroll Schedule and Voucher, General Form No. 99.”
The Clerk-Treasurer will make the necessary returns to the District Director of Internal Revenue and Indiana Department of Revenue from information recorded on these forms. Forms furnished by the Revenue Offices must be used for reporting this information.
At the close of the year or the last pay period of any employee whose service has been discontinued, the grand totals taken from this record will serve for issuing the earnings statements, Forms W-2 and WH-2 to the employee.
The total of the accumulations of each kind of deduction on all individual accounts should agree at all times with the amount set aside in each special fund by the Clerk-Treasurer.
It is suggested that these accounts be arranged alphabetically by calendar year.
EMPLOYEE'S WEEKLY (WORK PERIOD) EARNINGS RECORD (General Form No. 99C)This form must be prepared and maintained for all employees who are not exempt from minimum wage and overtime provisions of the Fair Labor Standards Act (FLSA), are not on a fixed work schedule, and are paid weekly.
The form also provides necessary information required by FLSA for accounting for hours of those employees who work optional alternative work periods such as firemen, policemen, and other qualified public safety employees.
PUBLISHER'S CLAIM (General Form No. 99P)This form is designed to serve as a claim in all cases where the law now provides for the publication of notices in any newspaper.
After the claim has been completely processed, allowed and the warrant issued, it should be filed numerically with other claims.
CERTIFIED REPORT OF NAMES, ADDRESSES, DUTIES AND COMPENSATION OF PUBLIC EMPLOYEES (100R)This report is filed on the Gateway. It list the names, business address, duties and compensation of each and all officers and employees.
It must be filed by January 31 each year.
Submitter access may be obtained by emailing gateway@sboa.in.gov
MILEAGE CLAIM (General Form No. 101)
This form is designed to serve as a claim for mileage to be presented to the board for allowance.
Officers and employees may be reimbursed for actual miles traveled in their own motor vehicles on official business of the city or town at a reasonable rate per mile as fixed by ordinance or resolution of the board. If two or more persons ride in the same motor vehicle, only one mileage reimbursement is allowable. The speedometer reading columns on this form are to be used only when distance between points cannot be determined by fixed mileage, official state highway map, or reliable map application.
After the claim has been completely processed, allowed and the warrant issued it should be filed numerically by warrant number with other claims for the same period.
REGISTER OF TRUST FUNDS (General Form No. 102)This form will be used by the city or town court.
GENERAL LEDGER SHEET (General Form No. 315)This form is designed primarily for utilities for double-entry bookkeeping; however, it may be used for any auxiliary or memorandum record if needed. It shall also be used in those municipalities with accrual or modified accrual accounting records.
INVENTORY SHEET (General Form No. 315A)This form is designed for recording the physical inventory of materials, supplies and equipment.
GENERAL JOURNAL (General Form No. 316)This form is to be used to record all transactions affecting “General Ledger Accounts” which cannot be entered in any of the other prescribed forms designed as records of original entry.
This form will be used primarily by utilities operating on a double-entry basis and those municipalities with accrual or modified accrual accounting records.
REGISTER OF INVESTMENTS (General Form No. 350)This form is designed to record investment transactions as they occur. It is similar in use to a trust fund register, except that instead of reflecting trust funds received and disbursed, it will reflect investments purchased and sold.
The current inventory at all times will consist of those investments for which no disposal data are entered, and must be represented either by a safekeeping receipt from a duly designated depository, or financial institution, as defined, or actual custody of the securities.The Register of Investments is to be kept by the Clerk-Treasurer, who is custodian of the securities.
A separate line should be used for recording each security, and a separate sheet should be used for each investment fund. More than one investment fund may be kept in the same post binder.
Entries will be made chronologically as investments are purchased or sold.
The various columns in which entries are to be made will depend on the nature of the transaction.
These entries are explained as follows:A. Entries will be made in the following columns at the time investments are purchased:
1. Date Purchased. Enter the date of the warrant by which payment was made.
2. Nature of Investments. Show the kind of investment such as U.S. Treas. Note, U.S. Bond, etc.
3. Serial No. Self-explanatory.
4. Safekeeping Receipt. The subcolumns under this heading are for use when a safe- keeping receipt or other reporting issued in lieu of physical delivery of the security:
a. Issued By. Self-explanatory.
b. No. Self-explanatory.
5. Maturity Date. Self-explanatory.
6. Rate of Interest. Enter the interest rate as shown on the face of the investment.
7. Maturity Value. Self-explanatory.
8. Amount Paid. The subcolumns under this heading show the detail of the total paid:
a. Principal. Enter that portion of the total payment representing the principal cost, but not accrued interest. THIS AMOUNT IS RECEIPTED TO THE INVESTMENT FUND AT THE TIME OF PURCHASE AND DISBURSED FROM THE SAME FUND AT THE TIME OF SALE OR OTHER DISPOSAL.
b. Accrued Interest. Enter that portion of the total payment representing the accrued interest purchased. Enter any miscellaneous charges as a separate item in this column.
c Total Paid. Enter the total payment, i.e., (a) plus (b). THIS IS THE AMOUNT DISBURSED FROM THE FUND FOR WHICH THE INVESTMENT IS MADE.
B. Entries will be made in the following columns at the time investments are sold or disposed or otherwise:
1. Date Sold or Redeemed. Self-explanatory.
2. Amount Received. The subcolumns under this heading show the detail of the total received:a. Principal. Enter that portion of the total received representing the principal amount. (This should be the maturity value if held to the maturity date, but may be a different amount if sold before the maturity date).
b. Interest. Enter that portion of the total received representing interest.
c. Total Received. Enter the total received, i.e., (a) plus (b). THIS AMOUNT IS RECEIPTED TO THE FUND FOR WHICH THE INVESTMENT WAS MADE.
C. The four columns on the extreme right margin are for use in recording any interest payments received during the time the investment is held.
If the investments are such that no periodic interest is paid, these columns should not be used. If interest is received, enter the date and amount received.
Space is provided for making eight (8) interest entries. If it is anticipated that more entries will be required, leave the next horizontal line blank and eight (8) additional spaces will be available.
This form is a continuous record which should not be destroyed or disposed of. Even though a unit may finally sell its investments, it could, in subsequent months or years, acquire other investments, and this record would thus be continued.
REGISTER OF INSURANCE (General Form No. 351)The Register of Insurance is to be kept and posted by the Clerk-Treasurer, who has custody of the other records of the city or town. Postings will be made chronologically as policies are purchased or as premiums are paid.
The Register of Insurance is to be posted as follows:
A. Upper Margin Headings
1. Unit and Department of Office. This line will be used to identify the governmental unit and office or department if a separate register is being kept for the various offices; e.g.,
City or Town - City or Town, or City or Town - Water Utility, etc. If all offices or departments are being kept in the same register, enter only the unit name.2. Classification. This line will be used when it is desirable to subclassify the insurance register by types of policy and/or property coverage; e.g., a separate sheet(s) may be kept for buildings as a group under Public Institutional Policies or Multiple Location Rating Plans or for individual buildings by name or number, separate equipment, workmen's compensation, boiler insurance, auto insurance, etc., and a miscellaneous classification for all other policies. The use of this line will depend on the size of the unit and number of insurance policies carried. Smaller units, such as some of the smaller cities or towns will be able to include all policies in one register and will not use this line. If this line is used, clearly identify the various classifications.
B. Column Entries (All of the information to be entered except the date of premium payment, will be taken from the policy.):
1. Insuring Company. Enter the name of the insurance company issuing the policy.2. Policy Number. Self-explanatory.
3. Renewal or Replacement of Policy Number. If this policy renews or replaces an expired policy, enter the old policy number.
4. Amount of Policy. Enter the full amount of coverage as shown on the policy.
5. Type of Coverage. Enter the particular type of coverage provided by this policy, e.g., Fire and Extended Coverage, Auto Liability, Workmen's Compensation, Burglary, etc. Also, enter any coinsurance provisions. (Abbreviate if necessary.)
6. Effective Date. Enter the date coverage begins.
7. Term. Enter the number of years the policy is effective.
8. Expiration Date. Enter the date coverage ends.
9. Fund(s) From Which Paid. Enter the fund or funds from which the premium is paid.
10. Premiums. The subcolumns under this heading will be used to show the premiums for each year during the term of the policy and the date paid. The premium schedule will be posted from the policy and the date of payment will be posted from the paid claims. Before any claims for insurance premiums are paid, you should refer to these columns to determine if the premium has been paid previously. This practice will eliminate duplicate payments which occur occasionally.
If there is an additional premium due, as is often the case in Workmen's Compensation coverage, or on adjustment is made in any premium, enter a brief explanation of the difference. If necessary, enter a reference symbol (*, No., etc.) and explain at the bottom of the page.
C. Lower Margin Lines
1. Remarks. The lines at the lower margin are provided for the purpose of making any explanations that may be required for any policy or policies listed on the ledger sheet. Enter the corresponding reference symbol to identify the policy to which the explanation applies and briefly explain the facts.
Explanations should be made under the following circumstances:
1. policies canceled,
2. coverage changed,
3. additional premiums,
4. premium reductions,
5. premium refunds,
6. other modifications or alterations or policies.
PENSION FUNDS - SCHEDULE OF PAYMENTS (General Form No. 355)This form is prescribed to permit scheduling of pension and disability claim payments to members of police, firefighter and other pension funds, or their dependents. It is not necessary for individual claims to be filed by pensioners.
All payees will be listed on this form which will bear the certification of the secretary of the pension fund on the face of the schedule and also on the reverse side thereof. The reverse side shall also bear the approval signature of the president of the board of trustees of the fund.
The schedule (claim) should be prepared in duplicate by the secretary of the fund. The original will be presented to the Clerk-Treasurer and the duplicate retained in the files of the pension fund board.
After the schedule (claim) has been completely processed, allowed, warrants issued and all postings recorded, it should be filed numerically.
REPORT OF COLLECTIONS (General Form No. 362)This form is intended to serve the needs of any department, officer or agency which is required to make a report and payment of collections to an officer or governmental unit, except those departments, agencies and officers for which a form has been specifically prescribed or approved.
REPORT OF IN-KIND MATCHING CONTRIBUTIONS (General Form No. 363)This form is intended for the use of any state or local governmental agency in reporting items supplied for the purpose of fulfilling the in-kind matching contribution obligation of the unit. The form is to be used when the unit is participating in a project supported by federal funds and either requiring or permitting in-kind matching contributions from the local unit.
ACCOUNTS PAYABLE VOUCHER REGISTER (General Form No. 364)This form shall be prepared by, or filed with, the Clerk-Treasurer or Controller of the municipality together with the supporting account payable vouchers and all such documents shall be carefully preserved by the disbursing officer as a part of the official records of the office. It will be optional with each Clerk- Treasurer or Controller and each governing board having jurisdiction over the allowance of accounts payable vouchers as to whether to sign each voucher or to sign only General Form No. 364, Accounts Payable Voucher Register. [IC 5-11-10-2]
Where a computerized accounting system is in use, it is permissible to prepare the Accounts Payable Voucher Register on an alternate form. The alternate form must contain the same headings and information shown on the prescribed form and, if accounts payable vouchers are not individually allowed, the form must contain the certification and signatures of the governing body as shown on the prescribed form.
SECURITY DEPOSIT AGREEMENT AND RECEIPT (General Form No. 365)This form is to be used by officers in complying with the provisions of IC 34-28-6. The statute authorizes officers to accept a security deposit in the form of cash, money order, or traveler's check from a nonresident of the State of Indiana whenever they have been arrested or stopped for a violation listed in IC 34-28-6-1 and are not immediately to be taken to court. These violations concern watercraft, watercraft registration, snowmobiles, off-road vehicles, or other violations concerning hunting, fishing or trapping.
- Explanation of Use of Prescribed City and Town Forms
ACCOUNTS PAYABLE VOUCHER (City Form No. 201) (Town Form No. 39)
This form is designed to be used by city and town fiscal officers in processing funds due to vendors from the city or town and is to be presented to the board for allowance.
Before presenting accounts payable vouchers to the board for allowance they should be properly itemized, with the original copy of the purchase order attached or suitable reference thereto, and entered in the General Form No. 364, Accounts Payable Voucher Register.
After accounts payable vouchers have been completely processed, allowed, and warrants issued they should be filed numerically and maintained with the applicable Accounts Payable Voucher Register, General Form No. 364.
This form is illustrated in the appendix.
CLERK-TREASURER'S RECEIPT (City Form No. 203A) (Town Form No. 217)This form will be issued for every cash collection made by the Clerk-Treasurer and will serve as a medium of posting to the Ledger of Receipts, Disbursements and Balances, City and Town Form No. 208.
This form is to be printed, original and duplicate for use with carbon, prenumbered by the printer, five (5) to the page, original perforated for tear-out, duplicate punched for a two (2) top-section post binder and the lines spaced for use with a standard typewriter.
A tape should be run on the duplicate copies of the cash receipts for the day and the total carried to the Treasurer's Cash Balance of Cash and Depositories, City and Town Form No. 212, and proved against the actual cash on hand and deposited. The receipts will be posted numerically in detail or block posted to the Ledger of Receipts, Disbursements and Balances, City and Town Form No. 208.
In accordance with the Public Depository Law cash receipts shall be deposited not later than the next business day that the funds exceed $500 and also should be deposited in the same form as received. Each receipt shall note type of receipt (cash, check, money order, EFT, bank/credit card, other).
This form is illustrated in the appendix.
CLERK-TREASURER'S WARRANT (City Form No. 205A)The city form is similar to the town form except there is no employee's earnings and deductions slip attached.
PAYROLL WARRANT (City Form No. 205A-PR)This form will be used in conjunction with Payroll Schedule and Voucher, General Form No. 99, for writing individual payroll warrants.
This form is to be printed in triplicate for use with carbon, prenumbered by the printer, five (5) to the page, original and duplicate perforated for tear-out, triplicate punched for a two (2) top-section post binder and the lines spaced for use with a standard typewriter
The employee is to detach the duplicate which is a statement of earnings and deductions before cashing the warrant.The triplicate, filed numerically in a two (2) top-section post binder, will serve as a “Warrant Register” and medium for posting to the Ledger of Receipts, Disbursements and Balances, City and Town Form No. 208.
This form is illustrated in the appendix.
CLERK-TREASURER'S, CITY CONTROLLER'S AND CITY TREASURER'S MONTHLY FINANCIAL, DEPOSITORY STATEMENT AND CASH RECONCILEMENT (City and Town Form No. 206)This is a two-page form which is designed as a control of all funds in the custody of the Clerk- Treasurer.
The left page provides for showing the beginning balance and receipts to date, the monthly receipts and disbursements, total balance and receipts to date, disbursements to date and the balance in each fund at the end of the month for both cash funds and investment funds.
The figures carried to this form are obtained from the Ledger of Receipts, Disbursements and Balances, City and Town Form No. 208.
The right page provides for a depository statement and cash reconcilement which should agree with the total of all fund balances on the left page.
This form is a convenience in making the monthly report to the city council or town council and in reconciling fund balances with the depositories. Year-end totals will be used in making the annual report.
A new set of forms should be started each year. This form is illustrated in the appendix.
LEDGER OF RECEIPTS, DISBURSEMENTS AND BALANCES (City and Town Form No. 208)
The Clerk-Treasurer should use a separate ledger sheet or sheets for each fund.
This form provides for posting from duplicate copies of Clerk-Treasurer's Receipts and Clerk- Treasurer's Warrants.
The subtraction of total disbursements of a fund from the sum of the total receipts and the cash balance at the beginning of a particular period should produce the current cash balance of that fund. This calculation shall be made at least monthly and the cash balance of each fund as computed shall be reconciled with bank account balances.
This is one of the most important records to be kept by the Clerk-Treasurer and shall be posted currently and reconciled monthly with the bank.
Total disbursements for the month should also be reconciled with total disbursements as shown by the Ledger of Appropriations, Encumbrances, Disbursements and Balances, City and Town Form No. 209.
A new set of forms should be started at the beginning of each year. This form is illustrated in the appendix.
LEDGER OF APPROPRIATIONS, ENCUMBRANCES, DISBURSEMENTS AND BALANCES
(City and Town Form No. 209)A separate ledger sheet will be opened for each object of expense listed in Budget Form 4-A, Budget Report, as finally approved by the Department of Local Government Finance (DLGF). This form is available on the DLGF website at www.in.gov/dlgf.
This form provides for posting from triplicate copies of Purchase Orders and duplicate copies of Clerk-Treasurer's Warrants.
The full amount of the original annual appropriation plus any additional appropriations that may be made or less reductions by legal departmental transfers will be entered in the “Appropriation” column.
This form may be used with or without purchase orders. If purchase orders are used, the last amount in the “Balance” column, under purchase orders, represents the total of the unpaid or outstanding purchase orders. To determine the unencumbered balance, subtract the final amount in this column from the final amount in the “Appropriation Balance” column.
The balance in the “Appropriation Balance” column represents the amount of the appropriation not disbursed.
The total disbursements for the month should be reconciled with the total monthly disbursements as shown by the Ledger of Receipts, Disbursements and Balances, City and Town Form No. 208.
This form is illustrated in the appendix.
DETAILED LEDGER OF DISBURSEMENTS (City and Town Form No. 209A)This form will be used in those municipalities where the appropriation ordinance was passed in greater detail than indicated in prescribed Budget Form 4-A, Budget Report (i.e., 100-Personal Services, 200-Supplies, 300-Other Services and Charges, 400-Capital Outlay), and in those municipalities wishing to account for their disbursements in greater detail than required by the budget ordinance.
This form allows for a detailed breakdown of each budget expenditure category posting.
ACCOUNTS PAYABLE JOURNAL (City and Town Form No. 210)This form was designed and prescribed for use by cities and towns with modified accrual accounting systems for budgetary funds and/or enterprise operations (municipally owned utilities).
This form is to be used to list unpaid bills or invoices at December 31 each year. Accounts payable is defined as liabilities on open accounts (unpaid bills or invoices owing to persons, firms, or corporations for goods, equipment, and services received by a governmental unit. The most common funds and departments have been included on the form and space has been provided for additional funds as needed.
CAPITAL ASSETS LEDGER (City and Town Form No. 211)This form is designed and prescribed for use by all cities and towns.
This form is to be used to list all additions and deletions in capital assets owned by the municipality, one of its departments, agencies or utilities.
TREASURER'S DAILY BALANCE OF CASH, DEPOSITORIES
AND INVESTMENTS (City and Town Form No. 212)This form provides for showing the total daily activity in all cash funds and all investments in the custody of the Clerk-Treasurer as well as the total activity in the depository accounts and provides for a proof of the total balance in all funds at the close of the day and the net depository balance at the close of the day.
Provision is also made for a daily cash statement and reconciliation of total cash on hand and in the depository.
This form is illustrated in the appendix. The illustration shows two days' activity in order to illustrate how the balances are carried forward.
DEPOSITORY RECORD AND WARRANT REGISTER
(Combined With County Form No. 48) (City Form No. 214)This form provides for detailing the warrants by depository and entering the month redeemed for the purpose of determining the outstanding warrants.
In those cities using an accounting system where a journal sheet is produced from the writing of warrants, the journal sheet may serve as a warrant register providing each duplicate warrant or optical image is date stamped with the month the cancelled warrant or optical image is returned by the bank.
In smaller cities having a low volume of warrants the carbon copies may serve as a warrant register providing each duplicate is date stamped with the month the cancelled warrant is returned by the bank.
The record is suggested for town where conditions justify its use.
CLERK-TREASURER'S WARRANT (Town Form No. 219)This form is used by the Clerk-Treasurer for making all disbursements. It may also be used for town utilities by simply eliminating the appropriations space in the upper left corner of the warrant, and by using various colors of paper stock.
The form is to be printed, original and duplicate for use with carbon, prenumbered by the printer, five (5) to the page loose-leaf, original perforated for tear-out and employee's earnings and deduction slip perforated for detaching from the original copy; duplicate punched for containing in a post binder loose-leaf; and, the lines spaced for use with a standard typewriter. Paper is to be of standard seventeen inch length for five (5) to a page.
When used for payment of general accounts payable, the Clerk-Treasurer should detach the unused earnings and deductions slip before mailing the warrant to the payee.
When used for payment of salaries or wages the employee is to detach the earnings and deductions slip before cashing the warrant.
The duplicates filed numerically in a two (2) top-section post binder will serve as a “Warrant Register” and medium for posting to the Ledger of Receipts, Disbursements and Balances, City and Town Form No. 208, and the Ledger of Appropriations, Encumbrances, Disbursements and Balances, City and Town Form No. 209.
This form is illustrated in the appendix.
- Accounts Receivable Control (Utilities)
When utility records are kept on a cash or single-entry basis, a separate control account should be carried on General Ledger Sheet, General Form No. 315, in the front of the Consumer’s Ledger. This account will be debited with the total monthly billing to all customers for utility services including penalties and sales tax. This account will be credited with the total accounts receivable collections, penalties and sales tax shown by the Register of Daily Cash Receipts – Consumers.
Under normal conditions the individual active accounts of customers should at all times show debit balances and at the end of each month the individual active accounts should be added and the total so obtained checked against the balance of the control account. If any adjustments are necessary to be made either to the control or to the individual active accounts, proper explanation should be recorded in the records.
When any adjustment is made to a customer’s account in order to correct an error in a previous charge or credit, a like entry should be made to the control account; debiting the control to increase the charge and crediting the control to decrease the charge in order to keep the total of the individual active accounts in agreement with the control.
After all efforts have been exhausted to effect collection of delinquent accounts, and after service has been discontinued and meter deposits applied, a list of uncollectible accounts should be submitted to the board for approval before being written off and transferred to an uncollectible accounts file. After approval has been made a matter of record, the total of these accounts, including the sales tax thereon, will be credited to the control account.
The foregoing procedure for handling uncollectible accounts is not applicable to delinquent sewage accounts. The procedure for collecting delinquent sewage accounts will be found in the calendar of monthly duties section.
When utility records are kept on an accrual or double-entry basis the Accounts Receivable account in the General Ledger serves as a control of all individual accounts in the Consumer’s Ledger and the foregoing procedure would not be applicable.
- Barrett Law Forms
INTRODUCTION
Barrett Law statutes are found IC 36-9-36, Municipal and County Barrett Law; IC 36-9-37, Barrett Law Funding for Municipalities; IC 36-9-38, Barrett Law Funding for Municipal Improvement Districts; and IC 36-9-39, Barrett Funding for Municipal Sewers.The receipt and disbursement of these funds is limited to construction projects. Each project will generally require special authorization or resolution of the board necessitating separate accounting for each project.
As each project will denote the character of the proposed disbursements, further identification by objects of expense is unnecessary.
The Clerk-Treasurer, according to the statute, serves as custodian of these funds.
For control of Barrett Law Funds, four accounts shall be carried in the fund ledger, on Form 208, Ledger of Receipts, Disbursements and Balances, for the Waivered, Nonwaivered, Prepayment and Surplus Barrett Law Account.Total receipts for the month shall be posted to these accounts from the Cash Book, Form No. 15.
Total waivered and nonwaivered disbursements for the month shall be posted from the Summary of Payments, Form No. 241, and the Primary Assessment Roll, Form No. 43, respectively.
Total Surplus Barrett Law Account disbursements for the month shall be posted from the warrant register. The total of these accounts shall be reconciled monthly with the bank balance.
The waivered, non-waivered prepayment funds should be classified as Debt Service Funds. The Surplus Barrett Law Fund should be classified as an Agency Fund.
MEMO OF PAYMENTS AVAILABLE (City and Town Form No. 10 - Use is Optional)The Memo of Payments Available is designed to be of aid in cities and towns where there are a large number of rolls with large issues of bonds. Use of this form is optional.
This form is ruled to provide the following information:
Roll Number, Bond Number, Denomination of Bond, Percent (%) Payable, Amount Payable on Bond, Odd Numbered Coupons (Denomination of Coupon, Percent (%) Payable, Amount Payable) Even Numbered Coupons, (Denomination of Coupon, Percent (%) Payable, Amount Payable) Interest on Delinquency (I.O.D.) (Percent (%) Payable, Amount Payable on Bond, Amount Payable on Coupon).
The calculation of the percentage totals to be paid is determined from the ledger sheets in the following manner: (Referring to the ledger sheet for each installment for which collections have been made.)
Installment No. 1
Divide total collections of principal by the total bonds to be paid which will give the fraction. Example: Assuming the total amount collected is $1,164.50 and the total bonds to be paid is $1,225.77. This would give the fraction .95001.
Divide the current interest collected ($815.15) by the total amount of number one (1) coupons, ($858.00) gives the fraction .95005.
Divide the advanced interest collected ($314.42) by the total amount of the number two (2) coupons ($330.93) gives the fraction .95011.
By multiplying the face value of the bonds and coupons by these fractions, the amount that can be paid on each bond and coupon may be determined.
Divide the total interest on delinquency collected ($21.77) by the total bonds and coupons ($2,414,70) gives the fraction .0090156.
By multiplying this fraction by the face value of the different denominations of bonds and coupons, the results will show the amount of interest on delinquency collected to be applied on each bond and coupon.
The “Memo of Payments Available” is so drawn up that roll number is the first column and bond number is the second column and that the bond number is also the installment number. The different denominations of both bonds and coupons are to be listed and the results of the calculations as indicated above are recorded in the proper columns and lines.
As soon as the “Memo of Payments Available” is completed the Clerk-Treasurer can begin processing bonds and coupons for payment. Since the “Memo of Payments Available” shows totals for each bond and coupon, any former payments made on bonds or coupons must be subtracted from the totals available and only pay the amounts of balances due.
CASH BOOK (City and Town Form No. 15)The cash book is ruled to provide the following information:
Name of improvement, roll number, payment number, receipt number, principal, current interest, advance interest, interest on delinquency, subtotal (which is the total of principal and interest collected), penalty, costs, and receipt total.
All receipts will be sorted monthly by roll number and name of improvement and, further, by payment (installment) number. For months having heavy collections, this may be done semimonthly.
The receipts will be entered on the cash book, after sorting, so that all receipts for any one improvement will be in one group on the cash book. The receipts for each improvement will be further grouped by payment (installment) number so that all collections of each payment (installment) are in a separate group.
Receipts for prepayments will be broken down by payment number (installment) and the amounts for each installment will be entered on the cash book in the proper order, being grouped with any other receipts for the same payment number (installment).
Sorting and grouping as outlined, will place the items on the cash book in the same order as the accounts in the ledger. Totals of the respective groups will be posted to the ledger avoiding voluminous detail postings. The amounts for each payment number (installment) will be totaled on the cash book, such totals to be posted to the proper ledger accounts.
All prepayment receipts should be broken down so that both principal and interest collected will show on the cash book. For example, if the first seven payments of an assessment were paid currently as they become due and the proper owner should choose to prepay the last three installments, the cash book would show payments No.8, No.9 and No.10, separately so that the principal and interest so collected will be credited to the account for the payment of the bonds and coupons for which the assessments were made.
After all receipts are entered on the cash book for any payment, totals should be made in columns for principal and interest.
These totals are to be posted to the proper ledger account after the cash book has been completed and proven.
At the bottom of each page, totals should be entered in the following columns: Subtotal, penalty, cost and receipt total. These page totals should not be carried to the next page, but the totals shown at the bottom of each page should be carried to a recap sheet or sheets and totals shown for the recap sheets.
The “Subtotal” will be the amount that should be posted to the bond ledger accounts. The penalty and costs should be posted to a separate account and the total of the “Receipt Total” column should agree with the sum of the daily collections for the month or period for which the cash book is prepared.
After the cash book has been proven the proper entries should be made on the bond ledger accounts and Surplus Barrett Law account for the penalty and cost.
PUBLIC IMPROVEMENT BOND REGISTER (City and Town Form No. 42)This form is especially designed for recording of Barrett Law bonds and coupons.
Each series of the bond issue is recorded separately showing the total face value of each of the ten (10) bonds in the series and the face value of coupons which are attached to said bonds.
This record is so constructed that each payment on a bond or coupon is recorded with the amount and date of payment.
All series in any roll are grouped together in the order of the series numbers. When the bonds thus issued are delivered to the contractor he is required to sign the receipt on the Primary Assessment Roll.
PRIMARY ASSESSMENT ROLL (City and Town Form No. 43)“Barrett Law” is a general term designating the method of financing public improvements by assessing the cost against the benefited real estate. The cost of street paving, for example, is charged on the front-foot basis to the property owners on the street being improved.
Such assessments are listed for each project on a “Primary Assessment Roll.” These rolls are made up from data furnished by the board or their engineers, together with certain research duties carried out by other designated personnel of the Barrett Law Department.
The making of a roll is a progressive procedure which starts with the adoption of the resolution and ends with the adoption and final approval of the roll by the governing board under which the proceedings are carried. Each primary assessment roll is given a “Roll Number” which is used to identify the improvement. In many instances the primary assessment roll is given the same number as the board's resolution which originally authorized the improvement.
Each improvement assessment roll becomes a separate fund and all transactions must be kept separate from all other rolls.
The roll must give detailed information starting with the resolution number, the kind of improvement, location of property affected, the owners of the property together with their names and addresses, the contractor, the contract price, the dates of the proceedings, and the assessment against each piece of property. All this must be correct in each detail, and is brought before the governing board for final approval.After the governing body accepts the construction work, and upon the final adoption and signing of the assessment roll by the members of the board, the roll then becomes a permanent official record and should be promptly forwarded to the officer responsible for the collection of such assessment.
The collecting officer should immediately mail a “Notice of Assessment, City and Town Form No.
237,” to each property owner, in the form of a receipt, which calls for either:1. Payment in full within thirty (30) days (to the proper officer charged with the collection of such assessments) or
2. Signing of a waiver by which the proper owner exercises the privilege of paying the assessed amount in installments, together with interest, as provided in IC 36-9-36, on the unpaid balance.
(NOTE: It is imperative that the assessment roll be promptly filed with the collecting officer upon its final adoption and signing by the board inasmuch as the thirty day period for signing of waivers or the paying of the assessments starts with the date of final approval of the roll and the official signing of same. Unless the responsible officer for collecting the assessments receives the assessment roll promptly, notices cannot be mailed and reach the property owners so that they will have the full time to sign waivers or pay cash).Collections of nonwaivered assessments are posted immediately to the Primary Assessment Roll, by the proper collecting officer, in the columns provided for that purpose. The paid receipts are held together until the end of the month for posting to the “Cash Book.” Collections of nonwaivered assessments are remitted by the disbursing officer to the contractor as soon as they can be processed. When remittance is made by the disbursing officer to the contractor such payments are recorded on the Primary Assessment Roll showing Date and Amount Paid to contractor as well as the signature of the contractor recorded in the column headed “Receipt of Contractor.”
After the expiration of the thirty (30) day period, the collecting officer prepares a list of those assessments on which waivers have been signed, and records such information on the “Primary Assessment Roll” in the columns provided for that purpose, thus completing the record.
LEDGER - WAIVERED ACCOUNTS (City and Town Form No. 44H)A separate ledger account should be set up for each installment making it necessary to set up ten
(10) separate ledger accounts for each roll. If an improvement should cost $20,000.00 and waivers were signed for assessments in a total of $14,000.00, the contractor would receive $6,000.00 in cash as the same is collected on nonwaivered accounts. Bonds in the sum of $14,000.00 would be issued. These bonds would be issued so that $1,400.00 would come due each year for ten years. Attached to these bonds there would be interest coupons. The bonds shall form an A, B, C series numbered form 1 to 10. For example purposes only, there would be three bonds due each year, two for $500.00 each and one for
$400.00. The coupons would be numbered from 1 to 19 according to the time each becomes due and payable.To set up the ledger accounts for this Roll, the first account should show at the top the following:
Bond No. $ 1,400.00
Coupon No. 1 420.00 (30 Coupons)
Coupon No. 2 378.00 (27 Coupons)
Total $ 2,198.00These amounts of interest would be correct only if the first coupon is figured for 6 months and the rate of interest is 6 percent.
The second ledger account should show the following:
Bond No. $ 1,400.00
Coupon No. 3 378.00 (30 Coupons)
Coupon No. 4 (27 Coupons)
336.00
Total $ 2,114.00
The next eight accounts should be set up in the same manner:Receipts should be posted from the Cash Book, City and Town Form No. 15. All receipts of principal for Payment No. 1 together with the current interest (Interest collected to pay Coupon No. 1) together with advance interest (Interest collected to pay Coupon No. 2) should be posted to the first ledger account for the Roll.
All receipts of principal for Payment No. 2, together with the current interest (Interest collected to pay Coupon No. 3), together with advanced interest (Interest collected to pay Coupon No.
4) should be posted to the second ledger account of the Roll, etc. The collection side of the ledger shows Date, Principal, Current Interest, Advanced Interest, Interest on Delinquency and Total Collections to Date. All columns should be filled in at each posting. The last column, Total Collections to Date, should show the accumulated total.The disbursement side of the ledger shows:
Date, Bond No., Coupon No., Interest on Delinquency, Total Disbursed to Date, (which should always show accumulated total), and Balance in Fund.
When the sheet is first set up, the proper account should be inserted for the bond and coupons to agree with that set up at the head of the account.
Disbursements should be posted from “Summary of Payments - City and Town Form No. 241.” The Balance in Fund should be shown, which is the difference between the amount of Total Collections to Date and Total Disbursed to Date. After current May and November collections have been posted, foot principal and interest columns on each ledger account to determine total collections in each column. Crossfoot the totals which must be equal to the last amount in the “Total Collections to Date Column.”
Divide total principal collected by the total amount of bonds issued shown at top of ledger account. This will give the percentage that can be paid on bonds. Show percentage thus obtained on ledger sheet in “Memo of Percent Available” column opposite Total Collections to Date figure. Then divide total current interest by the total amount of the odd-numbered coupons shown at the top of ledger account. This will give the percentage that can be paid on the odd- numbered coupons. Show percentage thus obtained in “Memo” column indicating the coupon number for which percentage is available.
Note that the percentage for the even-numbered coupons should not be computed on current payment until six months have elapsed, because the even-numbered coupons come due six months after the odd-numbered coupons. However, when such time arrives, the percentage payable on the even-numbered coupons should be determined by dividing the total collected in the “Advance Interest” column by the total shown at top of ledger for the even-numbered coupons.
This percentage should be set in the “Memo Column” indicating coupon number for which the percentage is available.
When delinquent collections are made, it will be necessary to again foot principal and interest on the ledger to determine total collections since the last calculation of percentage to be paid. Crossfoot these totals and add to previous total collections to date. This new total must equal the last total in “Total Collection to Date” column. Divide the total principal collected for the period by the total amount of bonds issued. Show percentage to be paid on ledger sheet in “Memo” column opposite total collections to date figure. (This will give percentage which can be paid on second payment of bond.) In like manner, calculate coupon percentage that can be paid on both even and odd-numbered coupons
To distribute “Interest on Delinquency,” divide the “I.O.D.” by the total of delinquent principal and interest collected and ready for distribution and show percent in “Memo” column.
This process should be continued as long as there are collections on any account.
IMPROVEMENT DUPLICATE (City and Town Form No. 46)This form of duplicate should be used for all improvements approved. It contemplates the extension of the assessment into ten payments. Particular care should be exercised to see that the amount of principal and interest spread upon the duplicate agrees with the amount of bonds and coupons issued on an improvement.
The contractor receives, in addition to the nonwaivered collections, Barrett Law bonds equal to the total of the waivered assessments. One-tenth of these bonds is due and payable each year for ten years, subject to the actual collection of the installments from the property owners. Interest coupons may be attached to the bonds at the rate established by the proper board, payable semiannually, also subject to actual collection of interest from the property owners.
The details of each roll are spread on the duplicate and the collecting official records the collections
therein.Each lot or parcel of property is assigned a section in the duplicate, in the same order as they appear on the Primary Assessment Roll. The details include, in addition to the property description and the owner's name:
1. Total principal (amount of assessment), and the remaining principal after each annual installment has been deducted.
2. Amount of the annual installment of principal (one-tenth of the assessment).
3. Current interest (for six months up to payment date).
4. Advance interest (for six months from payment date).5. Total of the payment due each year (principal, current interest, and advance interest).
6. Date the payment is due (either May or November depending on the date the improvement was approved and finally accepted by the board).
Collection data, posted daily by the collection officer, include:
1. Date and number of the receipt.
2. Any I.O.D. (interest on delinquency) collected because of late payment, computed at 10% per annum from the due date, on the total payment or payments, including the interest, not paid when due. (One Figure)
3. Any penalty collected because of late payment.
4. Grand total collected, in one figure, including I.O.D. and penalty.
In this connection, note that an assessment appearing on the duplicate is never split for collection purposes. If the purchaser of a part of a parcel offers payment, he is to be informed that such must be considered a partial payment on the whole amount due on the original parcel. The best solution in such a case is for both owners to arrange payment in full.
JOURNAL OF BARRETT LAW FUNDS (City and Town Form No. 232)This form consists of two pages and is designed as a control of all improvement funds in process of collection. The two left hand columns captioned “Treasurer's Account” is a control on all receipts and disbursements of Barrett Law funds. The other columns appearing to the right of “Treasurer's Account” column, provide a control for the items constituting said Treasurer's Account.
This record is a convenience in establishing the total balance in all improvement funds to reconcile with depositories.
RECEIPT FOR ASSESSMENT (City and Town Form No. 233)This form is to be used for all current collections of principal and interest. All payments of current assessments which are made after November 10 and not later than May 10 of any year will be receipted on this form. All current payments made after May 10 and not later than November 10 shall be receipted on this form, except the word “Fall” shall appear where the word “Spring” appears in the square in the upper left hand corner of this form.
This statement, in duplicate, of current assessments due, becomes a receipt when stamped paid by the collecting officer. The duplicate copy, after said receipt in duplicate has been stamped paid, shall be retained by the collecting officer and filed in proper order to serve as a register of receipts.
These receipts should be written before the rush period of tax paying comes and filed in alphabetical order so as to make them easily accessible during rush periods.
BARRETT LAW RECEIPT (Waivered Assessment - City and Town Form No. 233A)The use of this form is optional.
Cities or towns may use this form or continue to use City and Town Form No. 233.
NOTICE OF WAIVERED DELINQUENCY (City and Town Form No. 234)Whenever a default occurs in the payment of any installment of a waivered Barrett Law assessment, a notice shall be mailed within 60 days after the due date. Such notice is to be sent to the person or persons in whose name the property is assessed. If ownership has changed since the property was assessed, the present owner should also be sent a notice if it is possible to ascertain such person.
The notice is to be prepared on this form and must show the total amount due if paid on or before the following May 10 or November 10, whichever comes first after the due date. Such total amount should include interest on delinquency for six months at 10% per annum.
This form is printed in duplicate and becomes a receipt when stamped paid. The original is given to the payor and the duplicate is retained by the Barrett Law collecting officer to serve as a register of receipts.
RECEIPT FOR FULL PAYMENT OF ASSESSMENT (City and Town Form No. 236)
This form is to be used for prepayment. If current or delinquent assessments are paid at the same time they should be receipted, if current assessments, on City and Town Form No. 233 and, if delinquent assessments, on City and Town Form No. 234.
This form becomes a receipt when stamped paid by the collecting officer. It must be made in duplicate and the duplicate copy retained by the collecting officer, upon which duplicate copy shall also be stamped the date of payment, or if payment and date is shown by perforations both original and duplicate shall be perforated at the same time.
Follow suggestion given under City and Town Form No. 233, relative to filing of carbon copies.
NOTICE OF ASSESSMENT (City and Town Form No. 237)This form is to be used as a Notice of Assessment, and upon payment of the assessment it becomes a receipt when stamped paid by the collecting officer. It shall be made in duplicate and the duplicate copy retained by the collecting officer, upon which duplicate copy is also to be stamped the date of payment, or if the payment date is shown by perforations both original and duplicate shall be perforated at the same time.
The carbon copies detached and retained by the collecting officer shall be filed in proper order to serve as a register of receipts.
LEDGER OF NONWAIVERED ACCOUNTS (City and Town Form No. 238H)This ledger sheet is designed to be used on all “Barrett Law” Nonwaivered accounts. In all cases where contracts are let, the total amount of the contract should be placed to the right of contract price. In cases where the roll is a “Benefit” and “Damage” roll such as opening or widening a street or alley, the total amount of benefits should be entered to the right of “Contract Price.” Where waivers are signed and bonds are issued the total amount of the bond issue is entered beneath the “Contract Price” and the difference found, which is the “Balance Due.” This “Balance Due” whether it is to be collected and paid to contractor, or whether it is to be collected and paid to property owners who have sustained damages, is the total to be accounted for by this ledger form.
The “Name” column is to be used only for disbursements not for collections. The column headed “Name” will not be needed in cases where the same person (the contractor) gets all the money. This column (Name) is to be used to record the names of the persons receiving money in case more than one person is to be paid as is the case where two or more persons have been damaged and will receive payment for the damages received in proportion to the damages sustained.
The “Date” column should be used for both receipts and disbursements. “Warrant No.” is used to record the number of the warrants for disbursements. The “Collections” columns marked, “Principal and Interest,” are to be posted from the nonwaivered cash book of receipts. The “Uncollected” column should always be the difference between the “Balance Due” at the head of the sheet and total principal collected and would show total nonwaivered assessments unpaid.
The Disbursements columns - Principal and Interest - should be posted directly from warrants.
Cash Balance columns - Principal and Interest - should always show any principal and interest in the fund.
NOTICE OF DELINQUENT NONWAIVERED ASSESSMENT (City and Town Form No. 240)This form is to be used as a notice of delinquency of nonwaivered assessment, which notice becomes a receipt when stamped paid by the collecting officer. It must be made in duplicate and the duplicate copy detached and retained by the collecting officer when payment is made. Upon the duplicate copy shall also be stamped the date of payment, or if payment and date of same is shown by perforations both the original and duplicate shall be perforated at the same time.
Follow suggestion given under City and Town Form No. 237 relative to filing carbon copies.
SUMMARY OF PAYMENTS (City and Town Form No. 241)After the schedules for any payment period have been written, they will be sorted into ledger account order. (They will be sorted to lowest roll number first, and then resorted to next succeeding roll number.) From these schedules the totals for each ledger account will be grouped on Summary of Payments which will show the following:
Schedule Number, Roll Number, Payment or Bond Number, Coupon Number, Payments on Bonds, Payment on Odd-Numbered Coupons, Payments on Even-Numbered Coupons, Payments of Interest on Delinquency and Total Payment.
After all payments for each ledger account are grouped, totals will be taken, and these totals will be posted to the proper ledger account. By this method the number of ledger postings will be reduced to a minimum.
The total payments listed on “Summary of Payments” must agree with the total of all warrants
written.
RECEIPTS FOR AND SCHEDULE OF PAYMENTS OF BONDS AND COUPONS
(City and Town Form No. 242)
This form, Receipt for and Schedule of Payments of Bonds and Coupons, was prescribed to comply with the law.This section provides that the bondholder shall present his bonds and coupons in sufficient time before the maturity date of the due date of delinquencies so that the Barrett Law disbursing officer shall have time to process the payment.
City and Town Form No. 242 is to be prepared in triplicate. The original (white) copy serves as a receipt and is given to the bondholder when he presents his bonds and coupons. Information concerning the bonds and coupons should be shown in the following columns: Roll No., Series No., Bond No., Coupon No., Denomination and Balance Unpaid When Presented. Interest on delinquency should not be included in the Balance Unpaid When Presented column. Bonds and coupons should be listed in numerical order, both as roll number and payment (bond) number.
When payment on bonds and coupons is made, the other column on the duplicate (canary) and triplicate (blue) copies should be completed to show the payments on bonds, coupons and interest on delinquency and to show also the balance paid out of any one ledger account. The date of payment and warrant number should also be posted on the duplicate and triplicate copies.When partial payments are made on a bond or coupon, the amount paid, date paid, warrant number, percent paid and balance unpaid should be posted on the back of the bond or coupon. A rubber stamp may be used to facilitate this posting.
When the warrant, the unpaid bonds and coupons and the duplicate copy of City and Town Form No. 242 are given to the bondholder, he should surrender his receipt (original copy of City and Town Form No. 242). The date of payment and warrant number should be posted on such receipt. Receipts should be filed in receipt number order.
Triplicate copies of this form should be filed in a suitable binder in warrant number order.
- Illustrated Forms with Sample Entries
The following basic forms with illustrated entries are contained in this section:
1. Clerk-Treasurer's Receipt (Town Form No. 217)
2. Accounts Payable Voucher (Town Form No. 39)
3. Clerk-Treasurer's Warrant (Town Form No. 219)
4. Payroll Schedule and Voucher (General Form No. 99)
5. City Payroll Warrant (In Triplicate For City Having a Clerk-Treasurer) - Optional Form (No. 205A-PR)
6. Town Payroll Warrant (Clerk-Treasurer's Warrant) – (Town Form No. 219)
7. Ledger of Receipts, Disbursements and Balances (City and Town Form No. 208)
8. Clerk-Treasurer's, City Controller's and City Treasurer's Monthly Financial, Depository Statement and Cash Reconcilement (City and Town Form No. 206)
9. Treasurer's Daily Balance of Cash, Depositories and Investments (City and Town Form No. 212)
10. Purchase Order (General Form No. 98)
11. Ledger of Appropriations, Encumbrances, Disbursements and Balances (City and Town Form No. 209)
12. Capital Assets Ledger (City and Town Form No. 211)
13. Accounts Payable Voucher Register (General Form No. 364)
14. Water and Sewage Receipt (No. 311)
15. Register of Daily Cash Receipts - Consumers (Water or Sewage) (No. 313A)
16. Guarantee Deposit Receipt (No. 310)
17. Guarantee Deposit Register (No. 314)
18. Consumer's Ledger - Water Utility (No. 321), together with illustrated recapitulation of individual accounts receivable (memo record) designed to provide a control over accounts receivable
19. Municipal Water Utility Voucher (No. 301)
20. Water Utility Simplified Cash Journal (Class C) (No. 319)
21. Mileage Claim (General Form No.101)
22. Receipt Register (General Form No.370)
As previously stated, a form such as “Clerk-Treasurer's Receipt,” will provide substantially the same information for a city or town but will bear a different number, such as City Form No. 203A or Town Form No. 217; therefore, only one form is illustrated.The illustrated forms for utilities have been confined to the water utility; however, the procedure followed would be applicable to electric, gas and sewage utilities.
Click here to view the Illustrated forms.
- Calendar of Monthly Duties
This section contains a calendar of monthly duties and while not complete, should be referred to each month to insure that such duties are not overlooked. Duties which reoccur each month are not repeated in the calendar. Monthly duties include:
1. At the close of the month, post and close all records as promptly as possible and reconcile with depositories and with utilities or any other department maintaining separate records. Prepare the monthly balance and financial report for the board.
2. Report and pay Social Security (FICA) each reporting period to the Internal Revenue Service on or before the dates established by federal regulations. See Federal Circular E for payment procedures and due dates.
3. Deposit federal income tax withheld from employees' compensation in accordance with federal regulations. This may vary from one unit to another dependent on the total amount withheld per month. See Federal Circular E for payment procedures and due dates.
4. Deposit state and county income tax withheld from employees' compensation within 20 days after the close of each month.
5. Report and pay unemployment compensation commitments to Indiana Employment Security Division as required per selected plan.
6. Make reports of Utility Receipts Tax due from city or town to Indiana Department of Revenue as required by that agency.
7. Make reports of sales tax collected by and due from cities and towns to Indiana Department of Revenue as required by that agency.
8. Make reports of police, fire, and employee pension payment contributions to the Public Employees' Retirement Fund as required by that agency.
9. Make reports and payments of special fuels tax due from cities and towns to Indiana Department of Revenue, Special Fuel Tax Division.
January20 Last date to report and make payment of state and county income tax withheld during December to Department of Revenue, Indianapolis.
31 Last day to make report and complete the payment of federal tax and F.I.C.A. (Social Security Tax) tax withheld in the fourth quarter of the preceding year to the District Director of Internal Revenue. Each employee shall be furnished Form W-2 in duplicate, showing compensation paid during the preceding year, federal tax withheld and social security tax withheld.
31 Last day to provide each employee with Form WH-2 in duplicate or copy of W-2 for state and local income tax withheld.
Last day to file Form 100-R, Report of Names and Compensation of Officers and Employees on Gateway.
February20 Last day to report and make payment of state and county income tax withheld during January to Department of Revenue, Indianapolis.
28 Last day to file withholding statements W-2 and WH-2 together with Yearly Reconcilement of Employer's Quarterly Tax Returns W-3 and WH-3 with District Director of Internal Revenue and Indiana Department of Revenue, respectively.
March1 Last day to file Video Franchise Fee Report with the IURC.
Last day for filing and publishing the Gateway Annual Financial Report. [IC 5-3-1-3 (a)] (February 29 in a Leap Year)
Last day to file Debt Management Report on the Gateway.
Last day to prepare list of old outstanding checks for cancellation. [IC 5-11-10.5-3]
20 Last day to report and make payment of state and county income tax withheld during February to Department of State Revenue, Indianapolis.
April15 Last day to make report on Form URT and payment of Utility Receipts Tax for city or town for the preceding year, if not made January 31, to the Indiana Department of Revenue, State Office Building.
20 Last day to report and make payment of state and county income tax withheld during March to Department of State Revenue, Indianapolis.
30 Last day to make report and complete payment of federal tax and F.I.C.A. (Social Security Tax) tax withheld during the first quarter of the year to the District Director of Internal Revenue.
Make report and file quarterly unemployment compensation report with the Indiana Employment Security Division.
Last day for filing Annual Utility Report with Utility Regulatory Commission, 302 W. Washington Street, Room E-306, Indianapolis, Indiana, 46204. (Applies only to those utilities under the jurisdiction of the Utility Regulatory Commission)
May20 Last day to report and make payment of state and county income tax withheld during April to Department of State Revenue, Indianapolis.
31 Last day to certify delinquent Barrett Law assessments to the County Auditor. (IC 36-9-37-23)
June1 Last day to certify names of persons who have money due them for salaries, wages, or other reasons to the county treasurer for determining if such persons owe delinquent taxes. [IC 6-1.1-22-14]
Last day for cities and towns with population of 15,000 or more to file Annual Operational Report of Motor Vehicle Highway Fund electronically through an online data management system developed and maintained by LTAP. More information is contained on the State Board of Accounts website at www.in.gov/sboa.
20 Last day to report and make payment of state and county income tax withheld during May to Department of State Revenue, Indianapolis.
July20 Last day to report and make payment of state and county income tax withheld during June to the Department of State Revenue, Indianapolis.
31 Last day to make report and complete payment of federal tax and F.I.C.A. (Social Security Tax) tax withheld in the second quarter of the year to the District Director of Internal Revenue.
Make report and file quarterly unemployment compensation report with the Indiana Employment Security Division.
August
20 Last day to report and make payment of state and county income tax withheld during July to the Department of State Revenue, Indianapolis.
September20 Last day to report and make payment of state and county income tax withheld during August to the Department of State Revenue, Indianapolis.
October20 Last day to report and make payment of state and county income tax withheld during September to the Department of State Revenue, Indianapolis.
31 Last day to make report and complete payment of federal tax and F.I.C.A. (Social Security Tax) tax withheld in the third quarter of the year to District Director of Internal Revenue.
Make report and file quarterly unemployment compensation report with the Indiana Employment Security Division.
November
1 Last day for final passage of ordinance fixing salaries of appointive officers and employees of a city for ensuing year. See Page 61-11 and 61-12.
20 Last day to report and make payment of state and county income tax withheld during October to the Department of State Revenue, Indianapolis.
December1 Last day to certify names of persons who have money due them for salaries, wages or other reasons to the County Treasurer for determining if such persons owe delinquent taxes. [IC 6-1.1-22-14]
20 Last day to report and make payment of state and county income tax withheld during November to the Department of State Revenue, Indianapolis.
31 Review year-end duties, Page 61-3.
The Clerk-Treasurer or Controller shall deposit all collections not later than the next business day following the receipt of funds in depositories selected by the city or town as provided in an ordinance adopted by the city or town and approved as depositories of state funds. [IC 5-13-6-1] - Samples of Suggested Formats Not Prescribed
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