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.
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.
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.
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.
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.
7.Pension and Retiree healthcare 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.
Qualifying Statements are due annually no later than six months after the local unit’s fiscal year end.
If you have questions, contact your local Yeo & Yeo professional.