School Review and Fiscal Accountability
Energy Transition Impact Project (ETIP)
financing programs to meet the needs of local units of government including: Cities, Villages, Townships, Counties, and various special purpose units.
School Bond Qualification & Loan
the bond process, finance teams, lost bonds and links to other resources.
Reports on the various taxes that the Department of Treasury administers as well as Treasury's annual reports and other revenue and budget reports.
A Revenue Administrative Bulletin (RAB) is a directive issued by the Bureau of Tax Policy. Its purpose is to promote uniform application of tax laws throughout the State by the Bureau of Tax Policy personnel and provide information and guidance to taxpayers.
Internal Policy Directives are prepared to provide guidance to department staff to insure uniformity in tax administration.
The various Divisions of the Department of Treasury are guided by State statutes, Administrative Rules, Court cases, Revenue Administrative Bureau Bulletins, Property Tax Commission Bulletins and Letter Rulings.
Search is currently unavailable. Please try again later.
The web Browser you are currently using is unsupported, and some features of this site may not work as intended. Please update to a modern browser such as Chrome, Firefox or Edge to experience all features Michigan.gov has to offer.
December 27, 1994
TO: County Road Commissions, City and Village Clerks
Recipients of Interest Rebate From Refinancing of 1983 and 1984 State Trunkline Bonds
FROM: Richard L. Baldermann, CPA
Administrator, Local Audit and Finance Division
SUBJECT: Classification and Reporting of Interest Refund
You recently received a check representing total interest saved from the refinancing of certain Series 1983 and Series 1984 State Trunkline Bonds. The interest refund should be recognized as an "Other Financing Source--Interest Savings on State Refunded Debt." Credit the applicable Major, Primary or Local Fund where the debt service payments are being charged. The following entry should be recorded to properly recognize the receipt of the State check:
Account Number Account Title Debit Credit 001 Cash $XXXX 695 Other Financing Source (appropriate fund) $XXXX
If the interest refund is an immaterial amount, (less than 5% of the current year's interest expense in the applicable fund) you have the option of recording the refund as a credit to the interest expense account in the applicable fund. Financial Statement Note disclosure is not necessary for immaterial amounts credited to the interest expense account.
Your financial statements should contain a note disclosure describing the State refinancing and the effect the refinancing has in the local unit's financial statements. The following is a sample note disclosure.
During 1994, the Michigan Transportation Commission refinanced certain Series 1983 and Series 1984 State Transportation Bonds. The proceeds of the original bonds were used to provide funds to local units for road and street projects pursuant to loan agreements between the State and the local unit. Sample County Road Commission borrowed $100,000 from the State under that program as described in Note X--Long-Term Debt. While the State Transportation Commission refinanced its bonds, the agreements between the State and the Sample County Road Commission remain unchanged and the repayment schedule remains the same. On October 18, 1994, the Road Commission received $8,000 representing the interest savings over the remaining life of the outstanding balance of the loan agreement. This amount was recognized as an "Other Financing Source--Interest Savings on State Refunded Debt." Interest payments and expense will continue in accordance with the loan agreement.
Please contact our office at (517) 373-3227, if you have any questions.