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Numbered Letter 1997-01 (Revised)
Numbered Letter 1997-01 (Revised)
Effective Date: May 15, 1997 (Revised Date March 1, 2024)
Summary
Recent legislation has changed the distribution dates for state shared revenues for local units of government. Local units now receive regular bimonthly distributions of revenue sharing. Payments are to be made as follows: October 31, December 31, February 28, April 30, June 30, and August 31.
Revenue in governmental funds is recognized in the accounting period in which it is susceptible to accrual--that is when it becomes both measurable and available to finance expenditures of the fiscal period. "Available" means collectable in the current period or soon enough thereafter to pay liabilities of the current period.
State Revenue Sharing – Revenue Recognition
Listed below are the scheduled state revenue sharing collection and distribution dates:
|
State Collection Period |
Month of Distribution |
|
July/August |
October 31 |
|
September/October |
December 31 |
|
November/December |
February 28 |
|
January/February |
April 30 |
|
March/April |
June 30 |
|
May/June |
August 31 |
Revenue Recognition policy in accordance with generally accepted accounting principles is as follows:
- February 28 year ends--accrue revenue sharing payments distributed April 30 to the prior fiscal year.
- March 31 year ends--accrue revenue sharing payments distributed April 30 to the prior fiscal year.
- June 30 year ends--accrue revenue sharing payments distributed August 31 to the prior fiscal year.
- December 31 year ends--accrue revenue sharing payments distributed February 28 to the prior fiscal year.
Year ends dictated by charter--accrue payments distributed to prior fiscal year which are both measurable and available within sixty days of the end of the fiscal year.
Accrual of these revenues should be guided by an established policy of each local unit. The method chosen should be applied on a consistent basis from one fiscal year to the next. Within this bimonthly payment schedule all units would recognize 6 revenue sharing payments for each and every fiscal year.
If you need further assistance please call (517) 335-7469 or write our office: Michigan Department of Treasury, LAFD, P.O. Box 30728, Lansing, Michigan 48909-8228 or email our office at TreasLocalGov@michigan.gov.