Rev 2002.02 — Basis of Accounting

(a) Village
districts shall use the accrual basis of accounting for:
(1) Proprietary funds;
(2) Non-expendable trust
funds;
(3) Pension
trust funds; and
(4) Deferred
compensation plan and other employee benefit trust funds.
(b) Under
the accrual basis of accounting, transactions shall be classified by fund and
for:
(1) Revenues
recognized in the accounting period in which they are earned and become
measurable; and
(2) Expenses,
rather than expenditures, recognized in the period incurred, if measurable.
(c) Village districts
shall, for purposes of filing Form MS-535, "Financial Report of the Budget",
use the modified accrual basis of accounting for all:
(1) Governmental
funds;
(2) Transfers
to and expenditures from capital reserve funds and expendable trust funds; and
(3) Fiduciary
funds.
(d) Under
the modified accrual basis of accounting, transactions shall be classified by
fund and for:
(1) Revenues
recognized in the accounting period in which they become available and
measurable; and
(2) Expenditures
rather than expenses, recognized in the accounting period in which the fund
liability is incurred, if measurable, except for unmatured interest on general
long-term debt.
Source. #5454, eff 8-28-92; ss by #6809, eff 7-21-98;
ss by #8686, eff 7-21-06; ss by #10675, eff 9-24-14; ss by #14072, eff 9-10-24