Michigan Department of Treasury Uniform Chart of Accounts
Description of Governmental Funds

The General Fund should be used to account for and report all financial resources not accounted for and reported in another fund. (GASB Codification Section 1300.104). The General Fund is established at the inception of the local unit of government and continues throughout its existence.

GASB Codification Section S40.114 states, “The transactions of a service type special assessment should be reported in the fund type that best reflects the nature of the transactions, usually the general fund, a special revenue fund, or an enterprise fund ...”

A legally created service type special assessment district, including a district that is the entire unit, is a separate fiscal and accounting entity. Inclusion of the transactions of a service type special assessment district in the General Fund of a local unit in Michigan is prohibited.

Several Special Revenue Funds have been established to account for service type special assessment districts and are described in this Chart of Accounts. When one type of special assessment includes a number of districts, each district must be accounted for separately. This may be accomplished through the use of a separate fund for each district or the use of one fund with subsidiary accounts for each district. 

Service type special assessments which are directly related to an enterprise fund may be accounted for in the related enterprise fund. When an enterprise fund includes multiple special assessment districts, subsidiary records of each special assessment district must be maintained.

The same requirements relating to special assessments apply when a tax is levied for a specific purpose. Refer to Special Revenue Funds for the various funds necessary.

101--General Fund

The General Fund typically serves as the chief operating fund of a local government. It is used to account for and report all financial resources except those required to be accounted for in another fund. The General Fund’s primary revenue sources are the general tax levy (not to include special tax levies or assessments), local income taxes, certain state and federal grants, and fees and charges of the General Fund departments. Most of the current activities of the local unit of government are accounted for through the General Fund. Its use is mandatory for all primary units of government (counties, townships, cities, and villages).

The cash and investments of the General Fund are subject to the requirements of 1943 PA 20, MCL 129.91, and may be included in pooled cash and investment accounts.

The General Fund must operate only with an adopted budget by the governing body of the local unit as required by 1968 PA 2, MCL 141.421 to MCL 141.440a.

All claims (expenditures) must be approved by the governing body of the local unit of government pursuant to statutory requirements as follows: Cities--1895 PA 215, MCL 87.7, MCL 88.20; Villages--1895 PA 3, MCL 65.7; Townships--Revised Statutes of 1846, MCL 41.75; Counties--1851 PA 156, MCL 46.11(g); 1909 PA 58, MCL 46.71; 1943 PA 182, MCL 46.53; and 1923 PA 301, MCL 46.63.