Revenue and Other Financing Sources
Revenues represent net increases in governmental fund type current assets from other than expenditure refund, operating transfers-in and proceeds from the sale of bonds. Revenue is recognized in governmental funds when it becomes both measurable and available to finance expenditures of the fiscal period. Revenue Accounts 401 through 699 are included in this category.
It is recommended that the local units assign detail numbers to the various types of revenue that are received. The account numbers must be assigned by source as outlined in the revenue account number index. Revenue must be budgeted by source in accordance with the source groups indicated in this manual.:
400-Revenue (Control)
This is a control account which must appear in the general ledger of each fund of local units in which revenues are reported. Its balance must at all times equal the combined total of Revenue Accounts 401 through 699.
This account is:
DEBITED-for any decrease and this account number is closed to fund balance or another surplus account.
CREDITED-for total revenues received by a fund.
401-Taxes (Sub-Control)
Taxes are reported as GENERAL REVENUE on the government-wide statement of activities. The use of this account number is mandatory as a control account for various tax revenues. Its balance must be at all times equal to the combined totals of revenue accounts 402 through 449. This account number is a source control for revenue used for financial reporting purposes. It is also available for use in fiduciary activities. Taxes collected on behalf of another local unit should be recorded within the account that most appropriately describes the collection.
This account is:
DEBITED-for with any decrease and when the account number is closed to fund balance or another surplus account.
CREDITED-for the amount of total revenue reported in account numbers 402 through 449.
402 through 449
Account Number's402, 403, 404, 405, 406, 407, 408, 409, 410, 411, 412, 413, 414, 415, 416, 417, 418, 419, 420, 421, 422, 423, 424, 425, 426, 427, 428, 429, 430, 431, 432, 433, 434, 435, 436, 437, 438, 439, 440, 441, 442, 443, 444, 445, 446, 447, 448, 449
Most local units will use more than the control account for taxes. It is recommended that detail accounts be maintained. Revenue accounts 402-449 may be used for taxes such as Property Taxes, Delinquent Property Taxes, Payment in Lieu of Tax, Income Tax, etc. When detail tax accounts are used, the detailed account numbers provided in the Table of Accounts in this manual should be used. These Account Numbers are used for compiling data statewide. Some payments from the state for certain types of property tax adjustment will be coded with these Account Numbers. It should also be noted that Account Number 427 is intended to be used for a community-wide special assessment (such as 1951 PA 33, assessment for police and fire protection). In instances where every property owner in the local unit is paying the assessment, it takes on the characteristics of a tax and should be reported as such. GASB Statement 34, Paragraph 47(c) requires such an assessment to be reported as General Revenue and reporting it as a tax will do so (whereas special assessments are always reported as Program Revenue).
450-Special Assessments (Sub-Control)
Special assessments are reported as PROGRAM REVENUE on the government-wide statement of activities. Operating special assessments which are levied much like a tax for governmental services (such as police and fire levies) are reported as GENERAL REVENUE on the statement of activities. Operating special assessments to provide services to recipients (such as street lighting and rubbish collection) are PROGRAM REVENUE on the statement of activities. This Account Number is used as a control account for the special assessment revenues. Its balance must be at all times equal to the combined totals of Revenue Accounts 451 through 474. This Account Number is a source control for revenue used for financial reporting purposes.
This account is:
DEBITED-for with any decrease and when the Account Number is closed to fund balance or another surplus account.
CREDITED-for the amount of total revenue reported in Account Numbers 451 through 474.
451 through 474
Account Number's 451, 452, 453, 454, 455, 456, 457, 458, 459, 460, 461, 462, 463, 464, 465, 466, 467, 468, 469, 470, 471, 472, 473, 474
The local unit should assign special assessments to Account Numbers 451 through 474. They may be used for individual special assessments (both service type assessments and capital type assessments).
475-Licenses and Permits (Sub-Control)
Licenses and Permits are reported as PROGRAM REVENUE on the government-wide statement of activities. This Account Number is used as a control account for license and permit fees collected by local units. The balance in this account must at all times equal the combined totals of Account Numbers 476 through 500 (when these accounts are used to designate specific licenses and permits). This Account Number is a source control for revenue used for financial statement reporting purposes.
This account is:
DEBITED-for any decrease and when this Account Number is closed to fund balance or another surplus account.
CREDITED-for all business and non-business license and permit fees collected by the local unit.
476 through 500
Account Number's 476, 477, 478, 479, 480, 481, 482, 483, 484, 485, 486, 487, 488, 489, 490, 491, 492, 493, 494, 495, 496, 497, 498, 499, 500
Revenue accounts 476-489 may be used for business licenses and permits such as Alcoholic Beverages, Health, Police, Public Utilities, Professional and Occupational, Amusements, Cable TV, etc. Revenue accounts 490-498 may be used for non-business licenses and permits such as Building Permits, Marriage Licenses, Sidewalk Permits, etc.
501-Federal Grants (Sub-Control)
Program specific grants and contributions (operating and capital) are reported as PROGRAM REVENUE on the government-wide statement of activities. Multi-purpose grants that do not provide for specific identification of the programs and amounts should be reported as GENERAL REVENUE on the government-wide statement of activities. This Account Number should be used as a control account for federal grants received by the unit. Each type of federal grant should be recorded in a separate revenue account number as indicated in this Chart of Accounts. Open accounts are also available for local units to record other federal grants that are not indicated specifically in this Chart of Accounts. The balance in this account must at all times equal the combined totals of Account Numbers 502 through 538 if detailed accounts are used. This Account Number is a source control for revenue used for financial statement reporting purposes.
This account is:
DEBITED-for any decrease and when the Account Number is closed to fund balance or another surplus account.
CREDITED-for all federal grants received by a local unit.
539-State Grants (Sub-Control)
Program specific grants and contributions (operating and capital) are reported as PROGRAM REVENUE on the government-wide statement of activities. Multi-purpose grants that do not provide for specific identification of the programs and amounts should be reported as GENERAL REVENUE on the government-wide statement of activities (i.e., State Revenue Sharing). This Account Number should be used as a control account for state grants received by the local unit Each type of grant should be recorded in separate revenue account number as indicated in this Chart of Accounts. Open accounts are also available for local units to record other state grants that are not indicated specifically in this Chart of Accounts. The balance in this account must at all times equal the combined totals of Account Numbers 540 through 579, if detailed accounts are used. This Account Number is a source control for revenue used for financial statement reporting purposes.
This account is:
DEBITED-for any decrease and when the Account Number is closed to fund balance or another surplus account.
CREDITED-for all state grants received by a local unit.
580-Local Unit Contributions (Sub-Control)
Contributions from Local Units are reported as PROGRAM REVENUE on the government-wide statement of activities. This Account should be used as a control account for contributions from other local units received by the local unit. The local unit may record all of its contribution in this one account or may record them separately if they wish. The balance in this account must at all times equal the combined totals of Account Numbers 581 through 599 if detailed accounts are used. This Account Number is a source control for revenue used for financial statement reporting purposes.
581 through 599
Account Number's 581, 582, 583, 584, 585, 586, 587, 588, 589, 590, 591, 592, 593, 594, 595, 596, 597, 598, 599
The local unit should assign Account Numbers 581 through 596 for various contributions from other local units. These revenues will primarily be found in authorities and joint operations where more than one local unit contributes to the operations of an agency. Examples include Joint Fire Authorities, Transit Authorities, District Health, and Mental Health agencies, etc.
This account is:
DEBITED-for any decrease and when the Account Number is closed to fund balance or another surplus account.
CREDITED-for all local unit contributions received by a local unit.
600-Charges for Services (Sub-Control)
Charges for Services are reported as PROGRAM REVENUE on the government-wide statement of activities. This Account Number should be used as a control account for charges for services provided by the local unit. The balance must at all times equal the combined totals of Account Numbers 601 through 654 when these accounts are used to designate specific charges. This Account Number is a source control for revenue used for financial statement reporting purposes.
This account is:
DEBITED-for any decrease and when the Account Number is close to fund balance or another surplus account.
CREDITED-for all charges for services provided by the local units.
601 through 606-Court Related Charges
Account Number's 601, 602, 603, 604, 605, 606
These accounts may be used for court related charges such as Court Costs, Court Bond Cost (from the Trust and Custodial Fund to the General Fund), Court Reinstatement, etc.
607 through 625-Fees
Account Number's 607, 608, 609, 610, 611, 612, 613, 614, 615, 616, 617, 618, 619, 620, 621, 622, 623, 624, 625
These accounts may be used for fees set by statute, charter, or ordinance such as Real Estate Transfer Tax, Register of Deeds Recording Fees, Treasurer and Clerk Fees, Court Fees, Dismissal and Other Fees (by court order, Probation Oversight Fees, etc.).
626 through 641-Services Rendered
Account Number's 626, 627, 628, 629, 630, 631, 632, 633, 634, 635, 636, 637, 638, 639, 640, 641
These accounts may be used for charges for services rendered such as Copies, Road Oiling, Fire Runs, Cemetery Grave Openings, Prisoner Board, Rubbish Collection, Weed Removal, etc.
642 through 647-Sales
Account Number's 642, 643, 644, 645, 646, 647
These accounts may be used for sales such as Cemetery Lot Sale, Printed Materials (such as ordinance books), Confiscated Property, Scrap and Salvage Sales, etc.
651 through 654-Use and Admission Fees
Account Number's 651, 652, 653, 654
These accounts may be used for charges for services rendered such as fees paid to a local unit to use an athletic facility.
655-Fines and Forfeits (Sub-Control)
Fines and Forfeitures are reported as PROGRAM REVENUE on the government-wide statement of activities. This account is a source control for revenue used for financial statement reporting purposes. The account is used to record revenues derived by the local unit from fines and forfeitures. Fines include dollar amounts assessed as ordinance or law violations such as parking fines, penal fines for state law violations, dog damages, library book fines, etc. Forfeitures are revenues from deposits which accrue to the local unit because of non-compliance or other default on the part of the depositor. This includes such items as guaranteed deposits, nomination filing fees, appearance or bail bonds, and similar deposits. All such fines and forfeitures may be credited to this Account Number or detail accounts may be established by utilizing Account Numbers 656 through 663. The balance must at all times equal the combined totals of Account Numbers 656 through 663 when these accounts are used to designate specific charges.
This account is:
DEBITED-for any decrease and when the Account Number is closed to fund balance or another surplus account.
CREDITED-upon the receipt of fines and forfeitures, as described above.
664-Interest and Rents (Sub-Control)
Interest and Rentals are usually reported as GENERAL REVENUE on the government-wide statement of activities. Earnings on endowments or permanent fund investments are Program Revenues if restricted to a program specifically identified in the endowment or permanent fund agreement. Interest earned (when allowed and restricted by law to the specific program) on state or federal grants is Program Revenue.
This account is a source control for revenue used for financial statement reporting purposes. It is used to record interest, dividends, rents, and royalties earned or received on investments, certificates of deposits, or rental of surplus property. It does not include interest on delinquent taxes which should be recorded in Account Number 445 Penalties and Interest on Taxes. All interest and rents may be credited to this Account Number or detail accounts may be established by utilizing Account Numbers 665 through 671. The balance must at all times equal the combined totals of Account Numbers 665 through 671 when these accounts are used to designate specific charges. Account numbers 665, 666, and 669 may also be used in fiduciary as well as other activities.
This account is:
DEBITED-for any decrease and when the Account Number is closed to fund balance or another surplus account.
CREDITED-upon the receipt of interest and dividend earnings.
672-Other Revenue (Sub-Control)
Other Revenue is usually reported as GENERAL REVENUE on the government-wide statement of activities. This account is a source control for revenue used for financial statement reporting purposes. This account is used to record all other revenue collected by the local unit that cannot be classified in any other account. This would include refunds, rebates, private donations, etc. All other revenue may be credited to this account number or detail accounts may be established by utilizing Account Numbers 673 through 689. The balance must at all times equal the combined totals of Account numbers 673 through 689 when these accounts are used to designate specific charges. Account number 674 may also be used in fiduciary activities as well as other activities.
The gain or loss on the sale of assets is normally reported as General Revenue on the statement of activities unless the sale meets the criteria of a Special Item.
This account is:
DEBITED-for any decrease and when the Account Number is closed to fund balance or another surplus account.
CREDITED-upon the receipt of other revenue.
685-Opioid Settlement Revenues
This Account Number is used to record revenues received related to the opioid settlement. Interest on opioid settlement revenues should be recorded in one of the interest account numbers.
686-Miscellaneous Other Additions (Fiduciary Activities)
This Account Number is used to record additions for fiduciary activities that are not classified in other types of additions.
690-Other Financing Sources (Sub-Control)
This Account Number is used to record non-revenue items such as proceeds from the sales of bonds or notes, insurance recoveries, “operating transfers in,” etc. Account Numbers 691 through 699 may be used to record the various types of non-revenue items separately. The balance must at all times equal the combined totals of Account Numbers 691 through 699 when these accounts are used to designate specific charges.
Bond or Insurance Recoveries should be reported on the government-wide statement of activities as General Revenue or separately as an extraordinary item if the recovery considered both unusual and infrequent in occurrence.
Proceeds received as another financing source from the sale of capitals would not be reported on the statement of activities. The gain or loss (difference between proceeds received for the assets and net book value of the assets) from the sale of assets is normally reported as general revenue on the statement of activities unless the sale meets the criteria of a Special Item.
Bond and note proceeds should be eliminated on the statement of activities. Transfers In should be reported separately on the statement of activities.
This account is:
DEBITED-for any decrease and when the Account Number is closed.
CREDITED-for any increase in this account.
691-Other Financing Sources – Lease Financing
This Account number is used to record lease financing for leases other than other than short-term leases and contracts that transfer ownership defined by GASB 87. If a lease is expected to be paid from general government resources, the lease should be accounted for and reported on a basis consistent with governmental fund accounting principles. An expenditure and other financing source should be reported in the period the lease is initially recognized by lessees. The other financing source should be measured as provided for Lease Payable (Non-Current). Subsequent governmental fund lease payments should be accounted for consistent with principles for debt service payments on long-term debt.
This account is:
DEBITED-for any decrease and when this balance of this account is closed to fund balance.
CREDITED-for the lease financing amounts that need to be recognized.
693-Sales of Capital Assets (governmental funds)
This Account Number is used to record the proceeds of sales of capital assets in governmental funds.
This account is:
DEBITED-for any decrease and when the Account Number is closed.
CREDITED-for any increase in this account.
694-Other Financing Sources - SBITA
This account number is used to record the other financing source related to a SBITA. If a SBITA is expected to be paid from general government resources, the SBITA should be accounted for and reported on a basis consistent with governmental fund accounting principles.
An expenditure and other financing source should be reported in the period the subscription asset is initially recognized. The expenditure and other financing source should be reported in the period the subscription is initially recognized by local unit. Subsequent governmental fund subscription payments should be accounted for consistent with principles for debt service payments on long-term debt.
This account is:
DEBITED-for any decrease and when this balance of this account is closed to fund balance.
CREDITED-for the SBITA amounts that need to be recognized.
696-Proceeds from Sale of Bonds/Notes
This Account Number is used to record the proceeds of bonds or notes sold.
This account is:
DEBITED-for any decrease and when the Account Number is closed.
CREDITED-for any increase in this account.
697-Premium on Bonds or Notes
This Account Number is used to record premiums received from the issuance of bonds or notes.
This account is:
DEBITED-for any decrease and when the Account Number is closed.
CREDITED-for any increase in this account.
698-Bond or Insurance Recoveries
This Account number is used to record recoveries from bonds or insurance. In governmental fund financial statements, restoration or replacement of an impaired capital asset should be reported as a separate transaction from the associated insurance recovery. A bond or insurance recovery should be reported as extraordinary if it is unusual in nature and infrequent in occurrence.
This account is:
DEBITED-for any decrease and when the Account Number is closed.
CREDITED-for any increase in this account.
699-Interfund Transfers In
Note that only Account Number 699 should be used for “operating transfers in.” The Activity Number assigned to each transfer will identify the fund that the transfer came from.
This account is:
DEBITED-for any decrease and when the Account Number is closed.
CREDITED-for any increase in this account.