MI Department of Treasury Uniform Chart of Accounts
Balance Sheet and Statement of Net Position Accounts

Assets

001-Cash - Checking

This account is used to record the amount of currency, checks, money orders, and bank drafts on hand or on deposit with an official or agent designated as custodian of cash and bank deposits (local unit treasurer).

This account is:

DEBITED-when cash is received.

CREDITED-when cash is disbursed.

002-Cash - Savings

This account is used to record the amount of monies on deposit in savings accounts under the control of the official or agent designated as custodian. 

This account is:

DEBITED-when money is deposited in a savings account.

CREDITED-when money is withdrawn from a savings account.

003-Cash - Certificates of Deposit

This account is used to record the number of nonnegotiable (redemption terms that do not consider market rates) certificates of deposit held by the local unit treasurer.

This account is:

DEBITED-when certificates of deposit are purchased.

CREDITED-when certificates of deposit are cashed.

004-Imprest (Petty) Cash

This account is used to record a sum of money either in the form of currency, a special bank deposit, or a separate bank account set aside for the purpose of making change or paying incidental expenses. It is used for expenses that, for practical reasons, cannot be paid in the regular manner. At certain intervals, the petty cash is replenished by a check drawn on the fund from which the petty cash expenses are payable. An itemized voucher for the amount of disbursements made from petty cash must support the replenishment check. The total of petty cash on hand and/or on deposit, plus un-replenished disbursements, must always equal the imprest cash account balance. 

This account is:

DEBITED-with the amount in which the account is established or increased.

CREDITED-when the established account balance is decreased.

007-Cash - Payroll Bank Account

This account is used to record an amount of cash in the form of a separate bank account used only for making payments for personnel services and payroll deductions. Usually, a fixed sum is deposited to this bank account in an amount sufficient to meet the requirements of the bank for carrying the account without service charges, and the local unit for making payments for personnel services between regular pay periods.

The principal use of this account is for the deposit of the amount of the gross payroll, against which individual payroll checks and/or direct deposits and payroll deduction checks and/or direct deposits will be drawn. Individual payroll checks and/or direct deposits drawn on this account between regular payroll periods will be included on the next regular payroll voucher. By this method, the fixed sum deposited in the payroll bank account will be replenished each pay period.

This account is:

DEBITED-when money is deposited in the payroll bank account.

CREDITED-when money is disbursed from the payroll bank account.

016-Deposits with Fiscal Agent

This account is used to record amounts of pension assets on deposit with a fiscal agent, OPEB funding, and deposits with bond trustees prior to payment.

This account is:

DEBITED-when pension amounts are deposited with a fiscal agent, and with investment earnings on deposit with the fiscal agent.

CREDITED-when disbursements are made by the fiscal agent.

017-Investments

This account is used to record the cost of short-term investments in government bonds, treasury bills, treasury notes, and money market certificates, and negotiable certificates of deposit. A negotiable certificate of deposit is a form of a participating interest-earning investment contract whose value generally is affected by market (interest rate) changes. A short-term investment is an investment having a maturity date of 1 year or less.

This account is:

DEBITED-when investments are purchased.

CREDITED-when investments are sold.

018-Receivables

This account is used to record amounts owed to the local unit from any source.

This account is:

DEBITED-when amounts owed to the local unit are determined but not immediately received. 

CREDITED-when amounts are received or written off by proper authority.

019-Taxes Receivable

This account is used to record amounts of taxes levied and related charges which have become due but have not been collected.

This account is:

DEBITED-when amounts owed to the local unit are determined but not immediately received.

CREDITED-when amounts are received or written off by proper authority.

020-Taxes Receivable – Real Property – Current Levy

This account is used to record the portion of the real property taxes levied which have become due but have not been returned to the county treasurer as delinquent.

This account is:

DEBITED-for the amount the current real property taxes levied on the day they become due and receivable.

CREDITED-upon receipt of current real property taxes and with the amount transferred to Account 026 – Taxes Receivable – Delinquent – Real Property, at the time taxes become delinquent.

022-Taxes Receivable – Personal Property – Current Levy

This account is used to record the portion of personal property taxes levied which have become due but have not become delinquent. For the current levy, this total may be combined with real taxes and recorded in Account 020 – Taxes Receivable – Real Property – Current Levy.

This account is:

DEBITED-for the amount of the current personal property taxes levied on the day they become due and receivable.

CREDITED-with the receipt of current personal property taxes and with the amount transferred to Account 028 – Taxes Receivable – Delinquent – Personal Property, at the time the taxes become delinquent.

026-Taxes Receivable – Delinquent – Real Property

This account is used to record the amount of real property taxes remaining unpaid on and after the date they become delinquent (usually March 1). A detailed account by unit must be maintained for each year’s levy.

This account is:

DEBITED-when the amount of real property taxes is returned delinquent.

CREDITED-upon receipt of delinquent real property taxes and when amounts are charged back to local units.

028-Taxes Receivable – Delinquent – Personal Property

This account is used to record the amount of personal property taxes remaining unpaid on and after the date they become delinquent (usually March 1). A detailed account must be maintained for each year’s levy.

This account is:

DEBITED-when the amount of personal property taxes is returned delinquent.

CREDITED-upon receipt of delinquent personal property taxes or when such taxes are written off by order of the circuit court.

030-Interest and Penalties Receivable on Taxes

This account may be used to record the accrued interest and penalties on taxes receivable.

This account is:

DEBITED-when the amount of interest and penalties is accrued on taxes receivable each month.

CREDITED-when interest and penalties are collected.

033-Utility Bills Receivable

This account is used to record amounts owed to the local unit by users of utility services. Detailed subsidiary accounts must be maintained to record amounts due from individual users.

This account is:

DEBITED-when the amount of utility bills is due.

CREDITED-when payments are received, or adjustments are approved.

034-Delinquent Utility Bills Receivable (on tax roll)

This account is used to record unpaid utility bills which have been placed on the tax roll in accordance with statutory provisions. A detailed subsidiary account for each resident must be maintained.

This account is:

DEBITED-when the amount of unpaid utility bills is placed on the tax roll.

CREDITED-when the amounts are collected or approved to be written off.

040-Accounts Receivable (General – Not Governmental Units)

This account is used to record amounts owed to the local unit which are not provided for elsewhere in this manual.  Detail by individual or organization is required.

This account is:

DEBITED-when the amounts owed are determined.

CREDITED-when payments are received, or when adjustments or write-offs are approved.

041-Estimated Uncollectible Accounts Receivable (Credit)

This account is used to record that portion of accounts receivable which is estimated will never be collected.

This account is:

DEBITED-after approval had been obtained to record adjustments or to write off an account.

CREDITED-when the amounts of estimated uncollectible accounts receivable are determined and approved.

044-Travel Advances Receivable

This account is used to record cash advances to officials and/or employees of the local unit to cover anticipated expenses while traveling in an official capacity for the local unit. Upon completion of the travel, this account must be reimbursed for the entire amount of the advance. Detail by individual employee is required.

This account is:

DEBITED-when the amounts are advanced to officials and/or employees.

CREDITED-when the amounts advanced are repaid.

045-Special Assessments Receivable – Current

This account may be used to record the uncollected portion of special assessments a government unit has levied. It represents the amount due within one year and not yet considered delinquent. Subsidiary accounts may be established for various types or various years of special assessments. Detail by special assessment districts and by individual property owners is required.

This account is:

DEBITED-for the amount of the current special assessment levy on the day it becomes due and receivable.

CREDITED-when the special assessments are collected or when the account balance is transferred to Account 047 – Special Assessments Receivable – Delinquent.

047-Special Assessments Receivable – Delinquent

This account is used to record the balance of special assessments remaining unpaid on and after the date on which a penalty is effective. Detail by special assessment districts and by individual property owners is required.

This account is:

DEBITED-when the balance remaining in Account 045 – Special Assessments Receivable – Current, on the date a penalty for nonpayment is effective.

CREDITED-when the delinquent special assessments are collected.

049-Special Assessments Receivable – Unavailable

This account may be used to record special assessments for which a roll has been prepared and confirmed, but which are not due. Detail by special assessment districts and by individual property owners is required.

This account is:

DEBITED-when the amount of a special assessment roll has been prepared and confirmed.

CREDITED-when the special assessment becomes due at which time this amount should be transferred to Account 045 – Special Assessments Receivable – Current.

056-Interest Receivable

This account is used to accrue interest earned but not received as of the end of an accounting period.

This account is:

DEBITED-when the amount of interest earned is accrued.

CREDITED-when payments are received.

057-Local Unit’s Share of Assessment Improvement Costs Receivable

This account may be used to record the amount due from a local unit as its share of the cost of an improvement financed by special assessments.

This account is:

DEBITED-when the local unit’s share of special assessment project costs are determined.

CREDITED-when the amounts are collected or when any decreases are approved.

060-Notes Receivable

This account may be used to record the amount due on any legal note that has been accepted by the local unit. It represents an unconditional written promise, signed by the maker, to pay a certain sum on demand or at a fixed or determinable future time either to the bearer or to the order of a person designated therein. Detail by individual note is required.

This account is:

DEBITED-when the amount of the notes become legal obligations.

CREDITED-when the payments are received.

061-Loans Receivable

This account may be used to record the current amount due to the local unit on loans that have been made in accordance with statutory provisions. Detail by individual loan is required.

This account is:

DEBITED-when the amount of the loan becomes a legal obligation.

CREDITED-when payments are received.

062-Leases Receivable (Current)

This account is used to record receivables for short-term leases. GASB 87 indicates that a short-term lease is a lease that, at the commencement of the lease term, has a maximum possible term under the lease contract of 12 months (or less), including any options to extend, regardless of their probability of being exercised. For a lease that is cancelable by either the lessee or the lessor, such as a rolling month-to-month lease or a year-to-year lease, the maximum possible term is the noncancelable period, including any notice periods. The lessee should recognize lease receivable if payments are made in advance. The lessor should recognize lease receivable for rent due if payments are to be received subsequent to the reporting period.

This account is:

DEBITED-when lease payments due within a year is determined or when the lease receivable amounts are transferred from Leases Receivable (Non-Current) account.

CREDITED-when lease payments are received by lessor or when the advances lease payments are recognized as leases outflows of resources by lessee.

064-Land Contracts Receivable

This account may be used to record the current portion of land contracts due to the local unit. 

This account is:

DEBITED-when the current amounts due on land contracts are determined.

CREDITED-when payments are received.

071-Due from Cities

This account is used to record amounts due from cities. Detail by individual city is required. Account 084 – Due from Other Funds, should be used to record amounts due from other funds within the same city.

This account is:

DEBITED-when the amounts due the local unit from cities is determined.

CREDITED-when payments are received.

072-Due from Counties

This account is used to record amounts due from counties. Detail by each individual county is required. Account 084 - Due from Other Funds, should be used to record amounts due from other funds within the same county.

This account is:

DEBITED-when the amount due the local unit from counties is determined.

CREDITED-when payments are received.

073-Due from Libraries

This account is used to record amounts due from libraries. Detail by individual library is required.

This account is:

DEBITED-when the amount due the local unit from libraries is determined.

CREDITED-when payments are received.

074-Due from Road Commissions

This account is used to record amounts due from road commissions. Detail by individual road commission is required.

This account is:

DEBITED-when the amount due the local unit from road commissions is determined.

CREDITED-when payments are received.

075-Due from Schools

This account is used to record amounts due from schools. Detail by individual school system is required.

This account is:

DEBITED-when the amount due the local unit from schools is determined.

CREDITED-when payments are received.

076-Due from Townships (Except Road Agreements)

This account is used to record amounts due from townships for most purposes. Detail by individual townships is required. Account 084 – Due from Other Funds, should be used to record amounts due from other funds within the same township. County road commissions should use Account 080 – Due from Townships - Road Agreements, to record amounts due from townships for road agreements.

This account is:

DEBITED-when the amount due the local unit from townships is determined.

CREDITED-when payments are received.

077-Due from Villages

This account is used to record amounts due from villages. Detail by individual village is required. Account 084 – Due from Other Funds, should be used to record amounts due from other funds within the same village.

This account is:

DEBITED-when the amount due the local unit from villages are determined.

CREDITED-when payments are received.

078-Due from State

This account is used to record amounts due from the State of Michigan.

This account is:

DEBITED-when the amount due the local unit from the state is determined.

CREDITED-when payments are received.

079-Due from Federal Government

This account is used to record amounts due from the federal government.

This account is:

DEBITED-when the amount due the local unit from the federal government is determined.

CREDITED-when payments are received.

080-Due from Townships (Road Agreements)

This account is used by county road commissions to record amounts due from townships for work performed on roads under agreement signed by the township and the road commission. A detailed subsidiary ledger that is maintained by the township is required. 

This account is:

DEBITED-when the amounts are determined to be due on agreements.

CREDITED-when payments are received.

081-Due from Other Units of Government

This account may be used to record amounts due from other units of government for which an account is not provided for elsewhere in this manual. Detail by individual governmental entity is required.

This account is:

DEBITED-when the amount due the local unit from other governmental entities are determined.

CREDITED-when payments are received.

083-Due from Employees

This account may be used to record amounts due from local unit employees for reimbursable goods or services provided to or on behalf of the employees. Detail by individual employee is required.

This account is:

DEBITED-when the amounts due are determined.

CREDITED-when payments are received.

084-Due from Other Funds

This account is used to record short-term amounts due from other funds within the local government unit. It represents amounts owed for goods and services rendered to a particular fund by another fund in the government reporting entity or for interfund loans that are due within one year. An offsetting liability must be recorded in the fund from which the payment is due in Account 214 - Due to Other Funds.

This account is:

DEBITED-when the amounts owed from other funds are determined.

CREDITED-when amounts are received from other funds.

087-Court Orders Receivable

This account is used to record amounts of unpaid fines, court costs, restitution, and any other court ordered payments. Subsidiary records or accounts must be kept for these court orders by case number and/or name.

This account is:

DEBITED-when court orders are issued.

CREDITED-when payments are received, or adjustments are approved.

088-Service Fees Receivable

This account may be used to record amounts due to the local unit for fees for services for which an account is not provided for elsewhere in this manual.

This account is:

DEBITED-when services are rendered.

CREDITED-when payments are received.

088.1-Forfeiture Certificate Recording Fees Receivable

This account is used to record forfeiture certificate recording fees due to the county in accordance with 1999 PA 123.

This account is:

DEBITED-in the year the property is forfeited.

CREDITED-when payments are received when the forfeited property is redeemed or sold.

101-Inventory

This account is used to record the cost of materials, supplies, and/or surplus properties purchased in one accounting period for use in another accounting period or to reflect supplies and materials held in inventory until charged to a specific job, project, department, etc. 

This account is:

DEBITED-when materials, supplies and/or surplus properties are purchased, and with approved adjustments.

CREDITED-as inventory is used and with approved adjustments.

109-Inventory - Road Materials

This account is used to record the cost of road materials stockpiled in warehouses, pits or yards which are used for construction or maintenance of the county road system.

This account is:

DEBITED-when road materials are produced or purchased, and with approved adjustments.

CREDITED-when road materials are used from inventory and with approved adjustments.

110–Inventory – Equipment Materials and Parts

This account is used to record the cost of materials and parts on hand which are used for the repair, maintenance, and operation of equipment.

This account is:

DEBITED-when materials and parts are purchased and with approved adjustments.                

CREDITED-when the cost of materials and parts are used from inventory and with approved adjustments.

123–Prepaid Expenses (or Prepaid Expenditures)

This account is used to record charges entered in the accounts of the local unit for benefits or services not yet received. Examples of prepaid expenses are prepaid rent, prepaid interest, and unexpired insurance premiums.

This account is:

DEBITED-for prepaid expenses to be charged off in a subsequent accounting period.

CREDITED-as prepaid expenses are charged off to expenditure accounts in the accounting period to which the expenses pertain.

128-Assets Held for Sale

This account is used to record the cost of assets that are being held for re-sale. When assets are acquired with the intent of reselling them, they should be reported as assets even though they may be capital in nature. However, the carrying value should not exceed the estimated sales proceeds, net of expenditures necessary to ready the asset for sale. An example of assets held for sale could houses purchased to be renovated and resold.

This account is:

DEBITED-for the cost of assets acquired with the intent to be re-sold.

CREDITED-as sales take place, or as the estimated future sales price drops below the current carrying value (net of costs of preparing for sale).

130-Land 

This account is used to record the cost of land purchased by the local unit. Land acquired by gift or grant should be recorded at acquisition value. Road commissions also use this account to record the acquisition cost of land for road purposes. The cost of land includes legal fees, land surface leveling, debris removal, and other costs necessary to place the land in service.

This account is:

DEBITED-for the cost or appraised value of lands acquired.

CREDITED-for the recorded value of any land sold or otherwise disposed of.

131-Land Improvements – Non-depreciating

This account is used by a county road commission to record the actual cost of land improvements from construction and/or reconstruction projects. This work includes excavation, ditching, grading (lane widened portion and/or elevation change only), tree removal, and sub-grade preparation of land in preparation for roadway.

This account is:

DEBITED-for the cost of land improvements by year.

CREDITED-for the value of land improvements when the roadway is abandoned or otherwise disposed of.

132-Land Improvements – Depreciating

This account is used to record the cost of permanent improvements, other than buildings, which add value to the land. Examples are fences, sewers, sidewalks, pavements, retaining walls, and landscaping.

This account is:

DEBITED-for the cost or appraised value of land improvements acquired.

CREDITED-for the recorded value of any such assets sold or otherwise disposed of.

133-Accumulated Depreciation – Land Improvements

This account is used to record the accumulation of periodic decreases in the estimated service life of land improvements due to wear and tear, deterioration, action of the physical elements, inadequacy, and obsolescence.

This account is:

DEBITED-for the amount of accumulated depreciation applicable to land improvements sold or otherwise disposed of.

CREDITED-either monthly or annually for the amount of decrease in estimated service life attributable to the current accounting period.

134-Depletable Assets

This account is used to record the cost or acquisition value (if acquired by gift) of natural resources which diminish in value by the removal of their contents such as gravel pits, stone quarries, timber stands, brine wells, gas, and oil wells, etc.

This account is:

DEBITED-for the cost or appraised value of depletable assets acquired.

CREDITED-for the recorded value of such assets sold or otherwise disposed of.

135-Accumulated Depletion – Depletable Assets

This account is used to record the accumulation of periodic credits made to record the removal of natural resources.

This account is:

DEBITED-for the amount of accumulated depletion applicable to depletable assets sold or otherwise disposed of.

CREDITED-either monthly or annually for the cost of natural resources removed during the accounting period.

136-Buildings, Building Additions, and Improvements

This account is used to record the cost or acquisition value (if acquired by gift) of permanent structures, additions, and improvements. It includes the cost of all fixtures attached to and forming a permanent part of such structures.

This account is:

DEBITED-for the cost or appraised value of such assets acquired.

CREDITED-for the recorded value of such assets sold or otherwise disposed of.

137-Accumulated Depreciation - Buildings, Building Additions, and Improvements

This account is used to record the accumulation of periodic credits made to record the expiration of the estimated service life of buildings and improvements.

This account is:

DEBITED-for the amount of accumulated depreciation applicable to buildings sold or otherwise disposed of.

CREDITED-either monthly or annually with the amount of decrease in estimated service life attributable to that month or year.

138-Road Equipment

This account is used to record the cost or acquisition value (if acquired by gift) of equipment of a more or less permanent nature used in road work such as motor graders, cranes, rollers, etc. If separate accounts are desired for unlicensed and licensed vehicles and equipment, use Account 138 – Road Equipment, for unlicensed; and Account 148 – Vehicles, for licensed.

This account is:

DEBITED-for the cost or estimated value of road equipment acquired.

CREDITED-for the recorded value of such equipment sold or otherwise disposed of.

139-Accumulated Depreciation - Road Equipment

This account is used to record the accumulation of periodic credits made to record the expiration of the estimated service life of unlicensed road equipment.

This account is:

DEBITED-for the amount of accumulated depreciation applicable to such equipment sold or otherwise disposed of.

CREDITED-either monthly or annually for the amount of decrease in estimated service life attributable to that month or year.

140-Shop Equipment

This account is used to record the cost or acquisition value (if acquired by gift) of machinery and equipment of a more or less permanent nature used in a repair and maintenance shop.

This account is:

DEBITED-for the cost or estimated value of shop equipment acquired.

CREDITED-for the recorded value of such equipment sold or otherwise disposed of.

141-Accumulated Depreciation – Shop Equipment

This account is used to record the accumulation of periodic credits made to record the expiration of the estimated service life of shop machinery and equipment.

This account is:

DEBITED-for the amount of accumulated depreciation applicable to such equipment sold or otherwise disposed of.

CREDITED-either monthly or annually for the amount of decrease in estimated service life attributable to that month or year.

142-Engineering Equipment

This account is used to record the cost or acquisition value (if acquired by gift) of equipment of a more or less permanent nature used in the engineering department.

This account is:

DEBITED-for the cost or estimated value of engineering equipment acquired.

CREDITED-for the recorded value of such equipment sold or otherwise disposed of.

143-Accumulated Depreciation – Engineering Equipment

This account is used to record the accumulation of periodic credits made to record the expiration of the estimated service life of engineering equipment.

This account is:

DEBITED-for the amount of accumulated depreciation applicable to such equipment sold or otherwise disposed of.

CREDITED-either monthly or annually for the amount of decrease in estimated service life attributable to that year or month.

144-Yard and Storage Equipment

This account is used to record the cost or acquisition value (if acquired by gift) of equipment of a more or less permanent nature used for yard or storage purposes such as gasoline pumps and meters, fuel storage tanks, etc.

This account is:

DEBITED-for the cost or estimated value of yard and storage equipment acquired.

CREDITED-for the recorded value of such equipment sold or otherwise disposed of.

145-Accumulated Depreciation – Yard and Storage Equipment

This account is used to record the accumulation of periodic credits made to record the expiration of the estimated service life of yard and storage equipment.

This account is:

DEBITED-for the amount of accumulated depreciation applicable to such equipment sold or otherwise disposed of.

CREDITED-either monthly or annually for the amount of decrease in estimated service life attributable to that year or month.

146-Office Equipment and Furniture

This account is used to record the cost or acquisition value (if acquired by gift) of office equipment and furniture of a more or less permanent nature.

This account is:

DEBITED-for the cost or estimated value of office equipment and furniture acquired.

CREDITED-for the recorded value of such equipment and furniture sold or otherwise disposed of.

147-Accumulated Depreciation – Office Equipment and Furniture

This account is used to record the accumulation of periodic credits made to record the expiration of the estimated service life of office equipment and furniture.

This account is:

DEBITED-for the amount of accumulated depreciation applicable to such equipment and furniture sold or otherwise disposed of.

CREDITED-either monthly or annually for the amount of decrease in estimated service life attributable to that year or month.

148-Vehicles

This account may be used to record the cost or acquisition value (if acquired by gift) of all vehicles and equipment that are required to have a license plate such as cars, trucks, etc.

This account is:

DEBITED-for the cost or estimated value of vehicles and equipment acquired.

CREDITED-for the recorded value of such vehicles and equipment sold or otherwise disposed of.

149-Accumulated Depreciation – Vehicles

This account is used to record the accumulation of periodic credits made to record the expiration of the estimated service life of licensed vehicles and equipment.

This account is:

DEBITED-for the amount of accumulated depreciation applicable to such vehicles and equipment sold or otherwise disposed of.

CREDITED-either monthly or annually for the amount of decrease in estimated service life attributable to that year or month.

150-Books & Related Materials

This account is used to record the cost or acquisition value (if acquired by gift) of books, publications, journals, and similar items if significant in value and with a useful life of more than one year.

This account is:

DEBITED-for the cost or estimated value of books, publications, etc. acquired.

CREDITED-for the recorded value of such assets sold or otherwise disposed of.

151-Accumulated Depreciation – Books & Related Materials

This account is used to record the accumulation of periodic credits made to record the expiration of the estimated service life of books and similar items recorded in Account 150 - Books. 

This account is:

DEBITED-for the amount of accumulated depreciation applicable to such items sold or otherwise disposed of.

CREDITED-either monthly or annually for the amount of decrease in estimated service life attributable to that month or year.

152-Water System

This account is used to record the cost of construction or acquisition of a water system. This account may be pointed off to separate the various elements of a water system such as water lines, water mains, pumping plant, water treatment plant, etc.

This account is:

DEBITED-for the cost of construction or acquisition of a water system.

CREDITED-for the recorded cost of a water system sold or otherwise disposed of.

153-Accumulated Depreciation - Water System

This account is used to record the accumulation of periodic credits made to record the expiration of the estimated service life of a water system. 

This account is:

DEBITED-for the amount of accumulated depreciation applicable to a water system sold or otherwise disposed of.

CREDITED-either monthly or annually for the amount of decrease in estimate service life attributable to that year or month.

154-Sewer System

This account is used to record the cost of construction or acquisition of a sewer system. This account may be pointed off to separate the various elements of a sewer system such as sewer lines, interceptors, laterals, pumping stations, treatment plant, disposal plant, etc.

This account is:

DEBITED-for the cost of construction or acquisition of a sewer system.

CREDITED-or the recorded cost of a sewer system sold or otherwise disposed of.

155-Accumulated Depreciation - Sewer System

This account is used to record the accumulation of periodic credits made to record the expiration of the estimated service life of a sewer system. 

This account is:

DEBITED-for the amount of accumulated depreciation applicable to a sewer system sold or otherwise disposed of. 

CREDITED-either monthly or annually for the amount of decrease in estimated service life attributable to that month or year.

157-Right of Way

This account is used to record easements related to right of ways. Right of way easements are considered intangible assets. A permanent right-of-way easement is an example of an intangible asset that should be considered to have an indefinite useful life. Intangible assets with indefinite useful lives should not be amortized.

This account is:

DEBITED-for the amount spent on the intangible asset. 

CREDITED-when there is an impairment of the intangible asset.

158-Construction in Progress

This account is used to record the cost of construction work undertaken but not yet completed. As projects are completed, the cost is transferred from this account to the applicable capital asset account.

This account is:

DEBITED-for costs of a construction project in progress at fiscal year-end.

CREDITED-for the cost of a project upon completion and transfer to the appropriate capital asset account.

159-Subscription Asset

This account is used to record the initial value of the intangible right-to-use asset.

This account is:

DEBITED-at the commencement of the subscription term.

CREDITED-when subscription assets are amortized.

160-Accumulated amortization – Subscription Asset

This account is used for accumulated amortization for subscription asset other than short-term subscription assets. A subscription asset should be amortized in a systematic and rational manner over the shorter of the subscription term or the useful life of the underlying IT assets. The amortization of the subscription asset should be reported as an outflow of resources (for example, amortization expense), which may be combined with depreciation expense related to other capital assets for financial reporting purposes. Amortization should begin at the commencement of the subscription term.

This account is:

DEBITED-for accumulated amortization applicable to a subscription asset is disposed of. 

CREDITED-either monthly or annually for decrease in subscription assets.

161 through 176-Open (May be used for other Capital Assets, Including Infrastructure, as needed)

Account Number's 161, 162, 163, 164, 165, 166, 167, 168, 169, 170, 171, 172, 173, 174, 175, 176

These accounts may be used for infrastructure capital assets, intangible assets, and other capital assets not previously classified. Appropriate descriptive account titles should be used for these items. See the Uniform Accounting Procedures Manual for County Road Commissions for additional guidance. 

180 through 194-Other Non-Current Assets

Account Number 180, 181, 182, 183, 184, 185, 186, 187, 188, 189, 190, 191, 192, 193, 194

These accruals may be used for assets that are not easily convertible to cash or not expected to become cash within the next year.

180-Investments of Surplus Funds

This account is used to record the cost of long-term investments of surplus funds under 1943 PA 20 (for the government’s assets) and 1965 PA 314 (for pension and OPEB trust fund assets). This includes government bonds, treasury bills, treasury notes, municipal bonds, stocks, mortgages, land purchased for investment purposes, etc. A long-term investment is an investment having a maturity date of more than one year from the date of purchase.

This account is:

DEBITED-for the cost of the investments purchased.

CREDITED-when the investments are sold or otherwise disposed of.

181-Investment in Joint Venture

This account is used to record a local unit’s equity in a joint venture, in instances where there is an explicit, measurable right to the net resources of a joint venture (GASB Statement 14, Paragraph 72).

This account is:

DEBITED-for the original investment in the joint venture, and for any subsequent income from the joint venture.

CREDITED-for any losses from the joint venture.

182-Lease Assets (Right of Use)

This account is used to record lease assets for leases other than short-term leases and contracts that transfer ownership defined by GASB 87. At the commencement of the lease term, a lessee should recognize a lease liability and an intangible right-to-use lease asset a lessee initially should measure the lease asset as the sum of the following:

• The amount of the initial measurement of the lease liability.
• Lease payments made to the lessor at or before the commencement of the lease term, less any lease incentives received from the lessor at or before the commencement of the lease term.
• Initial direct costs that are ancillary charges necessary to place the lease asset into service.

A lease asset should be amortized in a systematic and rational manner over the shorter of the lease term or the useful life of the underlying asset. The amortization of the lease asset should be reported as an outflow of resources (for example, amortization expense), which may be combined with depreciation expense related to other capital assets for financial reporting purposes. If a lease contains a purchase option that the lessee has determined is reasonably certain of being exercised, the lease asset should be amortized over the useful life of the underlying asset. In that circumstance, if the underlying asset is nondepreciable, such as land, the lease asset should not be amortized.

A lease asset generally should be adjusted if certain criteria changed. For detailed regulation, please refer to GASB 87 and GASB L20.127-131.

This account is:

DEBITED-when lease assets need to be recognized

CREDITED-when lease assets are amortized.

183-Accumulated Amortization– Leases

This account is used to account for accumulated amortization for leases other than short-term leases such as account 182-Lease Assets and contracts that transfer ownership. A lease asset should be amortized in a systematic and rational manner over the shorter of the lease term or the useful life of the underlying asset. The amortization of the lease asset should be reported as an outflow of resources (for example, amortization expense), which may be combined with depreciation expense related to other capital assets for financial reporting purposes.

This account is:

DEBITED-for the amount of accumulated amortization applicable to a lease sold or otherwise disposed of. 

CREDITED-either monthly or annually for the amount of decrease in lease assets.

187-Long Term Contracts Receivable

This account is used to record that portion of a receivable from a contractual agreement which will not be realized within a one-year period.

This account is:

DEBITED-with amounts due on long-term contracts.

CREDITED-with amounts received or written off.

188-Derivative Contracts

This account is used to record the fair market value of any derivatives contracts, in accordance with GASB Statement 53.

This account is:

DEBITED-when the fair value of the derivative is positive (i.e., the present value of the expected future inflows exceeds the present value of the expected future outflows), or the fair value has increased from its last measurement.

CREDITED-when the fair value of the derivative is negative (i.e., the present value of the expected future outflows exceeds the present value of the expected future inflows), or the fair value has decreased from its last measurement.

189-Leases Receivable (Long-Term)

This account is used to record leases receivable for leases other than short-term leases and contracts that transfer ownership defined by GASB 87.  At the commencement of the lease term, a lessor should recognize a lease receivable and a deferred inflow of resources. Any initial direct costs incurred by the lessor should be reported as outflows of resources (for example, expense) for the period. A lessor initially should measure the lease receivable at the present value of lease payments expected to be received during the lease term, reduced by any provision for estimated uncollectible amounts. Measurement of the lease receivable should include the following, if required by a lease:

1.  Fixed payments
2. Variable payments that depend on an index or a rate (such as the Consumer Price Index or a market interest rate), initially measured using the index or rate as of the commencement of the lease term.
3. Variable payments that are fixed in substance.
4. Residual value guarantee payments that are fixed in substance.
5. Any lease incentives payable to the lessee.

In subsequent financial reporting periods, the lessor should calculate the amortization of the discount on the lease receivable and report that amount as an inflow of resources (for example, interest revenue) for the period. Any payments received should be allocated first to the accrued interest receivable and then to the lease receivable. The lessor should remeasure the lease receivable at subsequent financial reporting dates If certain criteria changed. For detailed regulation, please refer to GASB 87 and GASB L20.141-149.

This account is:

DEBITED-for the amount of leases receivable that need to be recognized.

CREDITED-for amounts of leases receivable are amortized.

190-Net Pension Asset

This account is used to record the excess of net position in a pension system to the total pension liability. It should be measured as the portion of the actuarial present value of projected payments that is attributable to past periods of employee service, net of the pension plan’s fiduciary net position.

This account is:

DEBITED-when the portion of the actuarial present value of projected payments that is attributable to past periods of employee service is less than net of the pension plan’s fiduciary net position.

CREDITED-when the portion of the actuarial present value of projected payments that is attributable to past periods of employee service is greater than net of the pension plan’s fiduciary net position.

191-Net OPEB Asset

The net OPEB Asset is computed as the difference between the actuarial present value of projected benefit payments attributed to past periods of employee service and the OPEB plan’s fiduciary net position.

This account is:

DEBITED-when actuarial present value of projected benefit payments attributed to past periods of employee service is less than the OPEB plan’s fiduciary net position.

CREDITED-when actuarial present value of projected benefit payments attributed to past periods of employee service is greater than the OPEB plan’s fiduciary net position.

192-Unamortized Discounts on Bonds Sold by the Local Unit

This account is used to record the excess of the face value of bonds over the amount received from the sale which remains to be amortized over the remaining life of the bonds.

This account is:

DEBITED-for the total amount of discounts allowed on bonds sold for less than face value.

CREDITED-for equal amounts charged to interest expense over the life of the bonds, and for any balance remaining if the bonds are redeemed before the stated maturity dates.

193-Long-Term Advances to Other Funds

This account may be used to record advances to other funds within the local unit where such advances are not due within a year. Examples are advances to a County Drain Revolving Fund for preliminary expenses, advances to a County 100% Tax Payment Fund, advances to an internal service fund, etc. Sub-accounts must be used where several funds are involved. An off-setting liability must be recorded in the fund receiving the advance. 

This account is:

DEBITED-for amounts advanced to other funds.

CREDITED-for the repayment of any portion of such advances.

194-Long-Term Advances to Other Units of Government

This account is used to record advances to other units of government where such advances are not due within a year. An example is an advance to a building authority. Sub-accounts must be used where several units are involved. 

NOTE: Legal advice should always be obtained before advances or loans are made to another unit of government.

This account is:

DEBITED-for the amounts advanced by the local unit to another unit.

CREDITED-for the repayment of any portion of such advances.

Deferred Outflows of Resources

195-Deferred Outflows

This account should be used to record amounts that are specifically defined by the GASB as meeting the definition of Deferred Outflow by GASB Statement 63, GASB Statement 65, GASB Statement 87, or any subsequent amendments. In general, this account applies to the recognition of liabilities that neither meet the criteria for expense recognition nor result in an asset. You can Point off each individual deferral in a separate sub-account if needed. At this point, the types of deferrals specified for this category include:

• The deferral of a loss on the refunding of a bond issue (where the amount transferred to the escrow agent exceeds the carrying value of the refunded debt).
• For leases other than short-term leases and contracts that transfer ownership defined by GASB 87. (see below).

This account is:

DEBITED-for an equal amount recorded in a liability account, which meets the definition of a deferred outflow.

CREDITED-for amounts reclassified to expense, as the expense recognition requirements have been met.

This account may also be used to record deferred outflows of resources for leases other than short term leases and contracts that transfer ownership defined by GASB 87. If prior to the expiration of the lease term a change to the provisions of a lease results from a debt refunding by the lessor, including an advance refunding, in which the perceived economic advantages of the refunding are passed through to the lessee, the change should be accounted for as follows:

• If a change to the provisions of a lease results from a debt refunding by the lessor, including an advance refunding that results in a defeasance of debt, the lessee should adjust the lease liability to the present value of the future lease payments under the revised lease using the effective interest rate applicable to the revised lease contract. The resulting difference should be reported as a deferred outflow of resources or a deferred inflow of resources. The deferred outflow of resources or the deferred inflow of resources should be recognized as an adjustment to an outflow of resources (for example, as an increase or decrease to interest expense) in a systematic and rational manner over the remaining life of the old debt or the life of the new debt, whichever is shorter.

This account is:

DEBITED-for amounts recognized as deferred outflow of resources for leases.

CREDITED-for amounts reclassified to outflow of resources accounts.

Liabilities

201-Vouchers Payable

This account may be used to record liabilities for materials and services evidenced by vouchers which have been pre-audited and signed by the proper authority approving the liability.

This account is:

DEBITED-upon payment of vouchers.

CREDITED-for amounts approved for payment.

202-Accounts Payable

This account is used to record amounts on open account owing to private persons, firms, corporations, or other organizations for goods and services received by the local unit. (Use account 214 for amounts due to other funds of the same governmental unit or accounts 221 through 230 for amounts due to other governmental units.)

This account is:

DEBITED-upon payment of these accounts.

CREDITED-for accounts payable approved for payment.

203-Drain Orders Payable

This account is used by a county Drain Fund to record the amount of drain orders payable during the current fiscal year. Drain orders payable in a subsequent year or years are recorded as a deferred inflow Account 363.

This account is:

DEBITED-upon payment of any drain orders previously credited to this account.          

CREDITED-at the beginning of the fiscal year with the amount of all drain orders due during the year, and with the issuance of other drain orders which become due and payable during the current year.

205-Judgments Payable

This account may be used to record amounts payable by the local unit as a result of a court decision, including condemnation awards and payment for private property taken for public use.

This account is:

DEBITED-upon payment of any portion of the judgment, or with any amount of the judgment ordered set aside by a higher court.

CREDITED-for the total amount of any judgment against the local unit.

206-Annuities Payable

This account is normally used by a local unit’s Retirement Fund to record amounts due and payable to retirees or their survivors.

This account is:

DEBITED-upon payment of the annuities.

CREDITED-when annuities become due and payable.

207-Notes Payable (Current)

This account is used to record the portion of tax anticipation notes or other notes to be paid by the local unit during the current year. A note payable is an unconditional written promise signed by the maker (authorized local unit officials) to pay a certain sum of money on demand or at a fixed or determinable time either to the bearer or to the order of a person designated therein. The long-term portion of notes payable should be recorded in Account 307 – Notes Payable.

This account is:

DEBITED-for payments made on such notes.

CREDITED-for the number of notes to be paid during the current year.

208-Leases Payable (Current)

This account is used to record liabilities for short-term lease. GASB 87 indicates that a short-term lease is a lease that, at the commencement of the lease term, has a maximum possible term under the lease contract of 12 months (or less), including any options to extend, regardless of their probability of being exercised. For a lease that is cancelable by either the lessee or the lessor, such as a rolling month-to-month lease or a year-to-year lease, the maximum possible term is the noncancelable period, including any notice periods. The lessor should recognize a liability if payments are received in advance. The lessee should recognize a liability for rent due if payments are to be made subsequent to the reporting period.

This account is:

DEBITED-when the lease payment is made or recognize lease inflows for the advanced lease payments.

CREDITED-for the lease payment to be made or the advance lease payments received, or for the amount transferred from 304 Leases Payable (Non-Current). 

209-Subscription Liability (Current)

This account is used to record short-term Subscription-based Information Technology Arrangements (SBITA). A short-term SBITA is a SBITA that, at the commencement of the subscription term, has a maximum possible term under the SBITA contract of 12 months (or less), including any options to extend, regardless of their probability of being exercised. For periods where the government and the SBITA vendor have an option to terminate the SBITA without permission from the other party (or if both parties have to agree to extend) are cancellable periods and should be excluded from the maximum possible term. For a SBITA that has cancellable periods, such as a rolling month-to-month SBITA or a year-to-year SBITA, the maximum possible term of that SBITA is the noncancelable period, including any notice periods. The lessee should recognize a liability if payments are to be made subsequent to the reporting period.

This account is:

DEBITED-when the subscription payment is made.

CREDITED-for the subscription payment to be made or the advance subscription payments received, or for the amount transferred from 309 Subscription Liability (Non-Current).

211-Contracts Payable - Retained Percentage

This account is used to record the amount due on construction contracts which have been completed but on which part of the liability has not been paid pending final inspection or the lapse of a specified time period, or both. The unpaid amount is usually a stated percentage of the contract price.

This account is:

DEBITED-upon payment of such amount to the contractor.

CREDITED-for the amount of retained percentage provided for in the contract.

213-Land Contracts Payable - Current Portion

This account may be used to record the portion of land contracts due and payable during the current fiscal year.

This account is:

DEBITED-or payments made.

CREDITED-for the number of contracts payable during the current year.

214-Due to Other Funds

This account is used to record short-term amounts due to another fund within the local government unit reporting entity. An offsetting receivable must be recorded in account 084 - Due from Other Funds, in the fund to which the payments are due. (See account 314 - Advances from Other Funds, for long-term obligations).

This account is:

DEBITED-for payment of such amounts.

CREDITED-for amounts due to other funds of the local unit.

221-Due to Cities

This account is used to record amounts due to cities. Sub-accounts should be maintained for each individual city. A city should use account 214 - Due to Other Funds, to record amounts due to other funds within the same city. 

This account is:

DEBITED-for payments on amounts owed.

CREDITED-for amounts owed to any city as debt is incurred.

222-Due to Counties

This account is used to record amounts due to counties. Sub-accounts should be maintained for each individual county. A county should use account 214 - Due to Other Funds, to record amounts due to other funds within the same county.

This account is:

DEBITED-for payments on amounts owed.

CREDITED-for amounts owed to any county.

223-Due to Libraries

This account is used to record amounts owed by a local unit to a public library. A local unit should use account 214 - Due to Other Funds, to record amounts due to its own Library Fund.

This account is:

DEBITED-for payments on amounts owed.

CREDITED-for amounts owed to libraries.

224-Due to Road Commissions

This account may be used to record amounts due to a county road commission for road construction, repair, or for other services rendered to the local unit by the county road commission.

This account is:

DEBITED-for payment of amounts owed.

CREDITED-for amounts owed to a road commission.

225-Due to Schools

This account is used to record taxes collected by the local unit for schools within its area, amounts due the schools within its area, amounts due the schools for services rendered, or for materials purchased, etc. Sub-accounts should be maintained (see account 234 – Due to Intermediate School Districts).

This account is:

DEBITED-for payment to schools of amounts owed.

CREDITED-for amounts owed to any school. 

226-Due to Townships

This account is used to record amounts owed to townships for township taxes collected, services rendered by the townships, etc. Sub-accounts should be maintained for each individual township. A township should use account 214 – Due to Other Funds, to record amounts due to other funds within the same township.

This account is:

DEBITED-for payments to townships of amounts owed.

CREDITED-for amounts owed to townships. 

227-Due to Villages

This account is used to record amounts owed to villages for village taxes collected, services rendered by villages, etc.  Sub-accounts should be maintained for each individual village. A village should use account 214 - Due to Other Funds, to record amounts due to other funds within the same village.

This account is:

DEBITED-for payment to villages of amounts owed.

CREDITED-for amounts owed to villages. 

228-Due to State of Michigan

This account is used to record amounts collected for and owed to the State of Michigan by a local unit of government. Detailed sub-accounts for the various statutory collections and remittances to the state must be maintained.

This account is:

DEBITED-for all payments to the State of Michigan.

CREDITED-for all amounts owed to the State of Michigan.

If additional sub-accounts are needed, please contact the Michigan Department of Treasury, Local Audit and Finance Division, P.O. Box 30728, Lansing, Michigan 48909-8228, or phone 517-335-7469.

The Michigan Department of Treasury’s Receipts Processing Section requires all payments to be accompanied with the applicable form or remittance advice. Payments made without a Treasury form or remittance advice should include a detailed explanation of why the payment is being made.

The following sub-account numbers must be used: 

229-Due to Federal Government

This account is used to record amounts collected for or owed to the federal government by the local unit. Detailed sub-accounts must be maintained, and the following sub-account numbers should be used:

• .01 - Federal Income Taxes Withheld
• .02 - Social Security Taxes
• .03 - Medicare Taxes

Additional sub-account numbers and titles may be assigned by local units as needed.

This account is:

DEBITED-for all payments made to the federal government.

CREDITED-for all amounts owed to the federal government.

230-Due to Other Units of Government

This account may be used to record amounts collected for or owed to other units of government. Sub-accounts should be used for each separate unit of government.

This account is:

DEBITED-for all payments to such units.

CREDITED-for amounts owed to other units of government.

231-Payroll Deductions Payable

This account is used to record amounts withheld from employees (other than social security and income taxes) for payments to other agencies. Examples are health and life insurance premiums, credit union deductions, etc. Sub-accounts should be used for each separate deduction.

This account is:

DEBITED-for payments to the proper agencies.

CREDITED-for amounts withheld from employees pay.

232-Due to Employees

This account may be used to record amounts due to employees of the local unit. Examples are underpayment of salaries, excessive payroll withholding, etc.

This account is:

DEBITED-for payments to employees of the amounts owed.

CREDITED-for amounts owed by the local unit to its employees.

233-Due to Former Employees

This account may be used to record severance pay, vacation pay, and other benefits due but not paid when employment was terminated. This account may also be used in a local unit retirement fund to record amounts due to members of the retirement system who have resigned or left the system prior to retirement. Sub-accounts should be used to record amounts due to each former employee.

This account is:

DEBITED-for payments to former employees of the amounts owed.

CREDITED-for amounts due to former employees.

234-Due to Intermediate School Districts

This account may be used to record taxes or other amounts collected for or owed to an intermediate school district. Sub-accounts should be used for each individual district. 

This account is:

DEBITED-for payments to intermediate school districts.

CREDITED-for amounts due to intermediate school districts. 

235-Due to Community College

This account may be used to record taxes or other amounts collected for or owed to a community college. Sub-accounts should be used for each individual college. 

This account is:

DEBITED-for payments to community colleges of amounts owed.

CREDITED-for amounts due to community colleges. 

236-Due to Special Education

This account is normally used by counties to record tax collections for special education programs. The Intermediate School District normally administers the special education programs within a county. This account may also be used to record any other amounts collected for or owed to a special education program.

This account is:

DEBITED-for payments to intermediate school districts for amounts owed.

CREDITED-for amounts owed for special education programs.

250-Bonds Payable – Current

This account may be used to record the amount of bonds maturing during the current fiscal year. Sub-accounts should be used to record amounts due for each series.

This account is:

DEBITED-upon payment of such bonds at maturity.

CREDITED-at the beginning of the year with the face value of bonds maturing during the year. Note that an equal amount must be deducted from long-term bonds payable recorded in account 300 – Bonds Payable.

251-Accrued Interest Payable

This account is used to accrue bond interest due in the current fiscal year.

This account is:

DEBITED-upon payment of such interest when due.

CREDITED-at the end of the fiscal year for the amount of interest expense accrued during the fiscal year but not paid as of the end of the year.

255-Customer Deposits and Interest Payable

This account is normally used in an Enterprise Fund to record the liability created when a customer is required to pay a deposit before receiving services. This is also used to record the liability for interest on customers’ deposits in those cases where an enterprise or utility has agreed to pay interest on such deposits. Sub-accounts must be maintained showing account activity for each customer.

This account is:

DEBITED-when repayments of deposits and accrued interest are made to customers, or with adjustments such as application to outstanding balances due.

CREDITED-for deposits and accrued interest due to customers.

257-Accrued Wages Payable

This account is used to record wages earned by employees but not due until a later date.

This account is:

DEBITED-upon payment or by reversing the entry.

CREDITED-for amounts of salaries and wages earned but not paid as of the end of an accounting period.

258-Accrued Taxes Payable (Includes Payroll Taxes)

This account may be used to record the local unit’s liability for taxes incurred but not due until a later date. An example is the local unit’s matching portion of social security on an accrued payroll.

This account is:

DEBITED-upon payment or by reversing the entry.

CREDITED-monthly, or at the end of the fiscal year for amounts of accrued taxes.

260-Accrued Vacation Payable 

This account is used to record the liabilities for unused vacation.

In proprietary funds this account is:

DEBITED-upon payment of wages related to vacations.

CREDITED-as vacation is earned.

In governmental funds this account is:

DEBITED-upon payment of wages related to vacations.

CREDITED-with an estimate that can be determined using historical trends, budgeted amounts, and internal policies of the government. This estimate should agree with the current portion of compensated absences in the government-wide Statement of Net Position.

GASB Statement 34 requires local governments to report and disclose the portion of compensated absences that “is due within one year of the statement date.” Compensated absences liabilities become due upon the occurrence of events such as resignations, retirements, and use of leave balances by employees. Because these occurrences and related dollar amounts generally cannot be determined reliably in advance, the portion of compensated absences due within one year should be estimated.

The compensated absence liability should include any salary-related payments for the employer share of Social Security and Medicare taxes and may include the employer’s share of 401K/457 contributions.

NOTE: The local unit’s liability for all compensated absences is required to be reported and disclosed, including the liability for personal leave, compensatory time, etc. Open account numbers may be assigned account names for each type of leave, or account 260 may be titled Compensated Absences Payable and used to record the liability for all the different kinds of leave.

261-Accrued Sick Leave Payable

In proprietary funds and in the government-wide financial statements, this account is used to record the accrued liability for sick leave (calculated in accordance with GASB Statement 101), on the accrual basis of accounting. “A liability should be accrued if: “The leave is attributable to services already rendered, the leave accumulates, and the leave is more likely than not to be used for time off or otherwise paid in cash or settled in noncash means” (GASB 101, ¶9).

Therefore, an accrual for earned sick leave should be made as sick leave is earned and made available to the employee, if it is more likely than not the benefit will be used by the employee. For example, a governmental entity could recognize whether sick leave would be more likely than not to be used if: it is expected the employee will use the leave for absences due to illness or other contingencies, such as medical appointments or as payment made at termination. Generally, a separate assessment should be made of amounts used for leave and amounts paid out at termination.

The compensated absence liability should include any salary-related payments for the employer share of Social Security and Medicare taxes and may include the employer’s share of 401K/457 contributions.

Note: Leave that is more likely than not to be settled through conversion to defined benefit postemployment benefits should not be recognized as a liability for compensated absences (GASB 101, ¶13).

This account is:

DEBITED-upon payment of wages related to sick leave.

CREDITED-when it is probable that the employer will compensate the employees for the benefits   through cash payments conditioned on the employees’ termination or retirement.

265-Bonds Payable (Cash Bonds, Appearance Bonds)

This account is used to record collections of cash bonds such as appearance bonds and bail bonds, the subsequent repayment of these bonds upon court order to the proper party or to the General Fund upon forfeiture. A detailed ledger must be maintained to record the receipt and disbursement of each bond.

This account is:

DEBITED-upon repayment of the bond or transferred to the General Fund upon forfeiture.

CREDITED-for all cash bonds received.

266-Court Orders Payable

This account is used to record amounts received by the local unit, in accordance with a court order, for subsequent payment to recipients specified in the court order. A detailed ledger must be maintained showing the account activity for each case or court order. 

This account is:

DEBITED-upon payment to the recipients specified in the court order. 

CREDITED-for all court ordered amounts received.

267-Due to Court Wards

This account is used to record all amounts collected for or otherwise due to individuals who are wards of the court. A detailed ledger must be maintained showing the account activity for each court ward.

This account is:

DEBITED-upon payment to court wards of amounts due. 

CREDITED-for all amounts collected for court wards and for any other amounts due to court wards. 

268-Unclaimed Money

This account is used to record unclaimed money in the possession of the local unit such as outstanding or unclaimed payroll checks and other checks, unclaimed meter deposits, other unclaimed trust, and agency money, etc. Unclaimed money must be reported to the State Treasurer annually. Unclaimed money is considered to be abandoned:

If there has been no owner-generated activity in the account for a specific amount of time as identified in the list of dormancy periods that can be found on Treasury’s Unclaimed Property website, and attempts to contact the owner fail. If these attempts are unsuccessful, the money is turned over to the State Treasurer where the owner or the owner’s heirs may claim it.

The due date for the annual unclaimed property report (holder report) is July 1 for property reaching its dormancy period as of March 31.

This account is:

DEBITED-for any amounts claimed by and paid to rightful owners and for any amounts paid to the state.

CREDITED-for all amounts determined to be unclaimed.

269-Garnishments Payable

This account is used to record amounts received or held by the local unit as a result of the garnishment of wages. These amounts are subsequently paid to parties specified in the garnishment order.

This account is:

DEBITED-for payments to proper parties.

CREDITED-for amounts of wage garnishments received or withheld from employees.

270-Patients or Inmates Trust Money Payable 

This account is used to record personal money being held for patients or inmates while they are lodged in a local unit facility (medical care facility, hospital, jail, etc.). Sub-accounts must be maintained showing account activity for each individual.

This account is:

DEBITED-for payments made to, or on behalf of, such patients or inmates.  

CREDITED-for amounts received from, or on behalf of, patients or inmates. 

271-Restitutions Payable

This account is used to record amounts received by the local unit, usually in accordance with court orders, which are to be subsequently paid to injured parties as restitution as directed by the court orders. Subsidiary records must be maintained showing account activity for each case.

This account is:

DEBITED-for payments to designated parties.

CREDITED-for all restitution payments received.

273-Undistributed Receipts 

This account may be used to record collections of money for which the proper account is not immediately identifiable. Examples are money received from the state or federal government which is to be distributed to other funds or other units at a later date. Cash disbursements are not to be made from this account. When the proper distribution is determined, amounts must be transferred from this account to the proper account(s).

This account is:

DEBITED-upon reclassification to the proper account(s).

CREDITED-upon the receipt of money, as described above.

274-Undistributed Tax Collections

This account may be used as a holding account for various tax collections before analysis and distribution. Cash disbursements are not to be made from this account. When the proper distribution is determined, the amounts must be reclassified from this account to the proper liability account(s) from which disbursements are made. 

This account is:

DEBITED-upon reclassification to the proper liability account(s).

CREDITED-upon the receipt of taxes for which distribution will be determined later.

275-Due to Taxpayers (Tax Overpayments and Duplicate Payments)

This account is used to record amounts to be returned to persons or firms which overpaid their taxes.

This account is:

DEBITED-upon the return or refund of such overpayments.

CREDITED-with amounts of tax overpayments.

276-Receipts Refundable

This account is used to record amounts to be returned to persons or firms that have made overpayments or duplicate payments, other than taxes, to the local unit. Use account 275 – Due to Taxpayers (Tax Overpayments and Duplicate Payments), for overpayments and duplicate payments of taxes.

This account is:

DEBITED-upon return of the overpayments.

CREDITED-for amounts of overpayments or duplicate payments received, as described above.

283-Performance Deposits Payable

This account is used to record money deposited with the local unit by contractors, other firms, or individuals to guarantee the performance of a certain act or acts. Subsidiary records must be maintained showing account activity for each depositor.

This account is:

DEBITED-for the return or other authorized use of such deposits.

CREDITED-for the receipt of deposits described above.

286-Due to Fiscal Agent

This account may be used to record amounts due to fiscal agents such as banks for servicing the local unit’s maturing debt principal and interest payments.

This account is:

DEBITED-for payments to such fiscal agents.

CREDITED-for amounts due but not paid to fiscal agents.

289-Unamortized Premiums on Bonds Sold 

This account is used to record the excess of proceeds received from the sale of bonds over and above the par value, which remains to be amortized over the remaining life of such bonds (this amount does not include accrued interest to the date of sale).

This account is:

DEBITED-for the amount of the interest expense recognized over the life of the bonds, and with any balance remaining if bonds are redeemed before the stated maturity dates.

CREDITED-upon receipt of the bond premiums, as described above.

300-Bonds Payable

This account is used to record the face value of all long-term bonds which are issued and unpaid.

NOTE: That bonds maturing during the current fiscal year should be recorded in account 250 – Bonds Payable (Current). Sub-accounts must be maintained showing account activity for each bond issue.

This account is:

DEBITED-for the amount of bonds retired or transferred to account 250 – Bonds Payable – Current.

CREDITED-for the face amount of bonds issued.

304-Leases Payable (Non-Current) 

This account is used to record leases payable for leases other than short-term leases and contracts that transfer ownership defined by GASB 87. At the commencement of the lease term, a lessee should recognize a lease liability and an intangible right-to-use lease asset.  A lessee initially should measure the lease liability at the present value of payments expected to be made during the lease term. Measurement of the lease liability should include the following, if required by a lease:

1. Fixed payments
2. Variable payments that depend on an index or a rate (such as the Consumer Price Index or a market interest rate), initially measured using the index or rate as of the commencement of the lease term.
3. Variable payments that are fixed in substance.
4. Amounts that are reasonably certain of being required to be paid by the lessee under residual value guarantees.
5. The exercise price of a purchase option if it is reasonably certain that the lessee will exercise that option.
6. Payments for penalties for terminating the lease, if the lease term reflects the lessee exercising (1) an option to terminate the lease or (2) a fiscal funding or cancellation clause.
7. Any lease incentives receivable from the lessor
8. Any other payments that are reasonably certain of being required based on an assessment of all relevant factors.

   In subsequent financial reporting periods, the lessee should calculate the amortization of the discount on the lease liability and report that amount as an outflow of resources (for example, interest expense) for the lease. Any payments made should be allocated first to the accrued interest liability and then to the lease liability.

   The lessee should remeasure the lease liability at subsequent financial reporting dates if certain criteria changed. For detailed regulation, please refer to GASB 87 and GASB L20.117-126.

   This account is:

   DEBITED-as lease payments are made or for amounts transferred to account 208 – Leases Payable (Current).

   CREDITED-for the amount of long-term lease payments.

   307-Notes Payable

   This account is used to record all notes of a long-term nature (over one year) owed by the local unit. The current portion of notes payable may be recorded in account 207 - Notes Payable (Current). Detail for each issue of notes is required.

   This account is:

   DEBITED-upon payment of such notes and for amounts transferred to account 207 – Notes Payable (Current).

   CREDITED-for the face amounts of long-term notes.

   309-Subscription Liability (Non-Current) 

   This account is used to record subscription liability for SBITA other than short-term SBITA. A local unit initially should measure the subscription liability at the present value of subscription payments expected to be made during the subscription term. Measurement of the subscription liability should include the following, if required by a SBITA:

1. Fixed payments
2. Variable payments that depend on an index or a rate (such as the Consumer Price Index or a market interest rate), measured using the index or rate as of the commencement of the subscription term
3. Variable payments that are fixed in substance, as discussed in paragraph 17
4. Payments for penalties for terminating the SBITA, if the subscription term reflects the government exercising (1) an option to terminate the SBITA or (2) a fiscal funding or cancellation clause
5. Any subscription contract incentives receivable from the SBITA vendor
6. Any other payments to the SBITA vendor associated with the SBITA contract that are reasonably certain of being required based on an assessment of all relevant factors.

   As the government makes payments, they reduce the subscription liability and recognize interest expense. The subscription liability must be amortized using the interest method.

   This account is:

   DEBITED-as subscription payments are made or for amounts transferred to account 209 – Subscription Payable (Current).

   CREDITED-for the amount of long-term subscription payments.

   314-Advances from Other Funds

   This account is used to record amounts owed to other funds of the same local government reporting entity for amounts payable in years subsequent to the current year. Examples are long-term loans, advances for services to be performed in the future, and similar items.

   This account is:

   DEBITED-for all repayments of advances or other redemption of this long-term debt.

   CREDITED-upon the incurrence of a long-term obligation to another fund.

   328-Advances from State

   This account may be used to record amounts owed by a local unit to the State of Michigan where such amounts are due in years subsequent to the current fiscal year. Detailed sub-accounts should be maintained if more than one advance is received.

   This account is:

   DEBITED-for any subsequent decreases (repayments) of the advance amounts.

   CREDITED-for amounts of advances received and for any subsequent increases.

   329-Advances from Federal Government

   This account may be used to record amounts owed by a local unit to the federal government where such amounts are due in years subsequent to the current fiscal year. Detailed sub-accounts should be maintained if more than one advance is received.

   This account is:

   DEBITED-for any subsequent decreases (repayments) of the advance amounts.

   CREDITED-for amounts of advances received and for any subsequent increases.

   330-Advances from Local Units of Government

   This account may be used to record amounts owed by a local unit of government to another local unit where such amounts are due in years subsequent to the current fiscal year. Account 314 - Advances from Other Funds, should be used by a local unit to record long-term obligations between its own funds.

   This account is:

   DEBITED-for any subsequent decreases (repayments) of the advance amounts.

   CREDITED-for amounts of advances received and for any subsequent increases.

   333-Advances – Special Assessment Districts

   This account may be used to record proceeds received from bond issues to finance primary and local road construction and improvements in special assessment districts, and advances or prepayments received from individuals and local units in these districts to finance this work. Subsidiary accounts must be maintained for this account.

   This account is:

   DEBITED-as work on the district project progresses with offsets credited to revenue account

   CREDITED-for the amounts of bond proceeds and advances received.

   334-Net Pension Liability

   This account will be used to record the shortfall of net position in a pension system to the total pension liability and should be measured as the portion of the actuarial present value of projected payments that is attributable to past periods of employee service, net of the pension plan’s fiduciary net position.

   This account is:

   DEBITED-when the portion of the actuarial present value of projected payments that is attributable to past periods of employee service is less than net of the pension plan’s fiduciary net position.

   CREDITED-when the portion of the actuarial present value of projected payments that is attributable to past periods of employee service is greater than net of the pension plan’s fiduciary net position.

   335-Net OPEB Liability

   This account is used to record the amount of a local government’s Net Other Post-Employment Benefits (OPEB) Obligation, under GASB Statement 75. This account is found in the government-wide and proprietary fund financial statements.

   This account is:

   DEBITED-when actuarial present value of projected benefit payments attributed to past periods of employee service is less than the OPEB plan’s fiduciary net position.

   CREDITED-when actuarial present value of projected benefit payments attributed to past periods of employee service is greater than the OPEB plan’s fiduciary net position.

   339-Unearned Revenues

   This account should be used to record amounts for which asset recognition criteria have been met (such as cash that has been received, or amounts that are receivable), but for which it has not met the revenue recognition requirements and the deferral meets the definition of a liability. (Note that for certain specific situations where the deferral does not meet the definition of a liability, GASB Statement 65 requires the use of account 360, Deferred Inflows). Under the modified accrual basis of accounting, Unearned Revenue would include government-mandated or voluntary nonexchange revenue that is received before the eligibility requirements are met (excluding time requirements – those with only time requirements are to be reported as deferred inflows). It would also include exchange or exchange-like revenues for which the services or goods have not yet been exchanged. This account should be pointed off for individual types of revenue such as recreation programs, advance grant programs, etc.

   This account is:

   DEBITED-for amounts reclassified to revenue accounts, as the exchange takes place, or as the eligibility requirements have been met.

   CREDITED-for an equal amount recorded in cash or a receivable account by a local unit which meets the definition of a liability. 

   343-Accrued Vacation and Sick Leave Payable

   This account is used in the government-wide financial statements to record the dollar value of the employees accrued vacation and sick leave as of the last day of the fiscal year (calculated in accordance with GASB Statement 16), less the amount recorded as a current year liability in account 260 – Accrued Vacation Payable, and account 261 – Accrued Sick Leave Payable. 

   This account is:

   DEBITED-for the difference if the amount calculated at year-end is less.

   CREDITED-at the end of the current fiscal year for the difference between the amount recorded in the account from the previous year and the amount calculated at the end of the current fiscal year if the ending amount is greater.

   Deferred Inflows of Resources

   360-Deferred Inflows

   This account should be used to record amounts that are specifically defined by the GASB as meeting the definition of Deferred Inflow by GASB 63, GASB 65, or any subsequent amendments.  In general, this account applies to assets (cash or receivables) that do not meet the criteria for revenue recognition, and that also do not meet the definition of a liability.  You can point off each individual deferral in a separate sub-account if needed.

   At this point, the types of deferrals specified for this category include:

• any modified accrual funds that need to defer revenue solely because it is not available (not collected within their period of availability, generally 30-60 days).
• property taxes or other imposed nonexchange revenue that are receivable (or received) before the period the resources may be used.
• government-mandated or voluntary nonexchange revenue that is awaiting only their time requirements before revenue recognition is appropriate; and
• sale of future revenues.
• deferred inflows of resources for leases other than short-term leases and contracts that transfer ownership defined by GASB 87 (see below).

This account should be pointed off for individual types of revenue such as property taxes, special assessments, etc.

This account is:

DEBITED-for amounts reclassified to revenue accounts, as the revenue recognition requirements have been met.

CREDITED-for an equal amount recorded in cash or a receivable account by a local unit which meets the definition of a deferred inflow. 

1. This account may also be used to record deferred inflows of resources for leases other than short-term leases and contracts that transfer ownership defined by GASB 87.  At the commencement of the lease term, a lessor should recognize a lease receivable and a deferred inflow of resources, A lessor initially should measure the deferred inflow of resources as follows: The amount of the initial measurement of the lease receivable.
2. Lease payments received from the lessee at or before the commencement of the lease term that relate to future periods (for example, the final month’s rent), less any lease paid to, or on behalf of, the lessee at or before the commencement of the lease term.

A lessor subsequently should recognize the deferred inflow of resources as inflows of resources (for example, revenue) in a systematic and rational manner over the term of the lease. The deferred inflow of resources generally should be adjusted by the same amount as any change resulting from the remeasurement of the lease receivable. For detailed regulation, please refer to GASB 87 and GASB Codification Section L20.

This account is:

DEBITED-for amounts reclassified to inflow of resources accounts.

CREDITED-for amounts recognized as deferred inflow of resources for leases.

363-Drain Orders – Deferred

This account is used only in the Drain Fund of counties and its balance reflects drain orders payable for years subsequent to the current fiscal year.  A detailed subsidiary ledger should be maintained showing liability by year for each drain order.

This account is:

DEBITED-at the beginning of each year for the amount of drain orders becoming due during the current year. Note that the amount due within one year is credited to account 203 – Drain Orders Payable.

This account is:

DEBITED-for the amounts decreased in this account.

CREDITED-for the amount of all drain orders issued which become due and payable in years subsequent to the current fiscal year.

Fund Balance and Net Position

370 through 374-Non-spendable Fund Balance

Account Number's 30, 371, 372, 373, 374

These accounts are used in governmental funds to record the portion of fund balance that is not in spendable form (that is, the portion that results from assets that are not spendable – prepaids, inventory, long-term advances to other funds, or other receivables whose collection is not likely in the next year).

These accounts are:

DEBITED-to record the decrease in the account.

CREDITED-to record the increase in the account.

375 through 379-Restricted Fund Balance

Account Number's 375, 376, 377, 378, 379

These accounts are used in governmental funds to record the portion of fund balance that is legally restricted as to the purposes for which it may be used. Often a fund’s entire fund balance will be restricted, but sometimes, such as in the General Fund, only a portion will be restricted. These accounts should be pointed off with individual restrictions into separate sub-accounts.

These accounts are:

DEBITED-to record the decrease in the account.

CREDITED-to record the increase in the account.

380 through 384-Committed Fund Balance

These accounts are used in governmental funds to record the portion of fund balance that is constrained by formal actions of the local unit’s highest level of decision-making authority as to the purposes for which it may be used. Sometimes a fund’s entire fund balance will be committed, but more often only a portion will be committed, so this may take additional analysis. These accounts should be pointed off with individual commitments into separate sub-accounts.

These accounts are:

DEBITED-to record the decrease in the account.

CREDITED-to record the increase in the account.

385 through 389-Assigned Fund Balance

Account Number's 385, 386, 387, 388, 389

These accounts are used in governmental funds to record the portion of fund balance that is constrained by the government’s intent to be used for specific purposes (but are neither restricted nor committed). Sometimes a fund’s entire fund balance will be assigned, but more often only a portion will be, so this may take additional analysis. These accounts should be pointed off with individual assignments into separate sub-accounts.

These accounts are:

DEBITED-to record the decrease in the account.

CREDITED-to record the increase in the account.

390-Unassigned Fund Balance

Unassigned fund balance is the residual classification for the general fund. This classification represents fund balance that has not been assigned to other funds and that has not been restricted, committed, or assigned to specific purposes within the general fund. The general fund should be the only fund that reports a positive unassigned fund balance amount. In other governmental funds, if expenditures incurred for specific purposes exceeded the amounts restricted, committed, or assigned to those purposes, it may be necessary to report a negative unassigned fund balance [GASBS 54, ¶17].

These accounts are:

DEBITED-to record the decrease in the account.

CREDITED-to record the increase in the account.

391 - Net Position (Net) Invested in Capital Assets

This account is used to record the net equity in capital assets of the local unit. It represents the component of the difference between assets and liabilities of proprietary funds that consists of capital assets less both accumulated depreciation and the outstanding balance of debt (e.g., bonds, mortgages, notes) that is directly attributable to the acquisition, construction, or improvement of those assets.

This account is:

DEBITED-with the recorded value of capital assets sold or otherwise disposed of.

CREDITED-at year end or monthly with the cost of capital assets acquired during the year.

392 through 398-Net Position, Restricted

Account Number's 392, 393, 394, 395, 396, 397, 398

This account is used in a proprietary fund to record the component of the difference between assets and liabilities that consists of assets with constraints placed on their use by either external parties (e.g., creditors or grantors) or through constitutional provisions or enabling legislation.

This account is:

DEBITED-with any reductions of restricted net position.

CREDITED-with the required amount of restricted net position.

399-Net Position, Unrestricted

This account is used to record the accumulated earnings of the fund which are not designated for a specific purpose or purposes. It represents the difference between the assets and liabilities that is not reported as net position, invested in capital assets, net of related debt or restricted net position. 

This account is:

DEBITED-at the end of the year, with excess of expenses over for the fiscal period, or with any appropriation from unrestricted net position to a specified reserve account. 

CREDITED-at year end, with the excess of revenues over expenses for the fiscal year.