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You Won the Election, But Do You Know the Compliance Challenges Ahead?

Ali N. Barnes

Newly elected local government officials face many challenges. Often, they do not realize their role in ensuring that the accounting and required filings are completed not only completely and accurately, but timely as well. We understand that you may need assistance in identifying resources to aid your transition, and a heads-up on key deadlines. Following are explanations of commonly misunderstood or unknown items that will help you on your new journey. For future efficiency, save the websites as favorites in your web browser as you’ll likely visit them often. If you need assistance with complying in any of these areas, don’t hesitate to reach out.

1.Uniform Chart of Accounts

A uniform chart of accounts is required to be used in local governments’ accounting systems. Early implementation of the most recent version is recommended. A due date for some time in 2019 will be issued at a later date.

Michigan Department of Treasury Uniform Chart of Accounts for Local Units of Government

2.Accounting Procedures Manual

The Accounting Procedures Manual was developed to assist local government officials in applying accounting procedures in their local units of government.

Michigan Department of Treasury Accounting Procedures Manual

3.Uniform Budget Manual

The Uniform Budget Manual provides local governments with the provisions of the budget act, provides recommendations for compliance, suggested timelines, and sample budgets. Budgets must be approved before the start of a fiscal year, and budget amendments must be approved before the end of a fiscal year. Refer to the manual and your local unit’s internal policies for further information.

Michigan Department of Treasury Uniform Budget Manual

4.Audit

Local units with a population of 4,000 or more are required to have an audit every year, which is due no later than six months after the local unit’s fiscal year end. An annual audit is required for charter townships, regardless of population. Local units with a population less than 4,000 are required to have an audit every other year. This does not mean that the smaller units cannot have an audit every year; the Department of Treasury strongly recommends an audit every year.

5.Michigan Form F-65

Local units must file Form F-65 every year regardless of the unit’s population or fiscal year end. Primary units are the only governments required to submit the F-65. Primary units include counties, townships, cities and villages.

Instructions for Preparing Form F-65

6.Public Act 51

Recipients of Michigan Transportation Funds are required to report their annual earnings and expenditures to the Michigan Department of Transportation (MDOT). The report is due not more than 120 days after the end of a local unit’s fiscal year.

Instructions for Preparing the Act 51

7.Pension and Retiree Health Care Reports (PA 202)

Local units of government that offer or provide retirement pension benefits and retirement health benefits are required to report additional information related to these plans no later than six months after the end of the local unit’s fiscal year. If your local unit of government does not offer a retirement pension system or retirement healthcare system, no action is required.

Local Retirement Reporting Information

8.Qualifying Statement

Qualifying Statements are due annually no later than six months after the local unit’s fiscal year end.

Click here to file

Qualifying Statement General Instructions
Qualifying Statement Bulletin 6

If you have questions, contact your local Yeo & Yeo professional.

Ali N. Barnes

Ali N. Barnes

CPA

Ali N. Barnes, CPA, is a senior manager in Yeo & Yeo’s Alma office. She has 11 years of experience in audits of employee retirement benefit plans and providing audit services for government entities, school districts and nonprofit organizations. She is a member of the firm’s Pension Services Group, Government Services Group and the Audit Services Group. Contact Ali via email at alibar@yeoandyeo.com or call 989.463.6108.