This best practice criteria assesses how well a community complies with federal, state, and local laws. Local units of government should be familiar with the laws and know where to find additional information, such as Public Act 2 of 1968. Local units of government must abide by Michigan Department of Treasury standards, creating uniform reporting across similar local units.
Expectations
The local unit of government must maintain the following:
- The uniform chart of accounts
- Controlled numbered official receipts
- Controlled numbered official checks
- Detailed receipt journal
- Detailed disbursement journal
- General ledger
- The local unit shall follow all federal, state, and local laws.
- The local unit shall follow all Michigan Department of Treasury standards.
- The local unit shall follow the Governmental Accounting Standards Board (GASB) accounting standards.
- The local unit shall complete and submit a timely annual audited financial statement (audit) (Department of Treasury, 2007).
- The local unit shall complete and submit a timely Annual Local unit Fiscal Report (F65) (Department of Treasury, 2007).
- The local unit shall complete and submit a timely deficit elimination plan, if applicable (Department of Treasury, 2007).
- The local unit shall complete and submit a timely Qualifying Statement (Department of Treasury, 2007).
- Cities, villages, and road commissions shall complete and submit a timely Act 51 Road and Street Financial Report (Department of Treasury, 2007).