Municipalities

SECTION I - Governmental Accounting

1. Governmental Accounting
2. Measurement Focus Basis of Accounting (MFBA)

SECTION II - Chart of Accounts

1. Chart of Accounts - Narrative
2. Funds - Listing and Definitions
3. General Ledger Accounts - Definitions
4. Revenue and Other Financing Source Accounts - Definitions
5. Expenditure and Other Financing Use Accounts - Definitions
6. Characters and Objects - Definitions

SECTION III - Source Documents

1. Source Documents
2. Sample Receipt
3. Sample Purchase Order
4. Sample Municipal Voucher

SECTION IV - Journals and Ledgers

1. Journals and Ledgers
2. Cash Receipts Journal
3. Warrant Register
4. Registered Warrant Register
5. General Journal
6. Payroll Journal
7. General Ledger

SECTION V - Subsidiary Records and Control Accounts

1. Subsidiary Records and Control Accounts
2. Record of Interest Bearing Deposits and Investments
3. Water Accounts Receivable Record
4. Capital Asset Record and Depreciation Schedules
5. Revenue Budget Record
6. Expenditure Budget Record
7. Alphabetical Listing of Suggested Life for Depreciation of Capital Assets

SECTION VI - Budget and Appropriations

1. Budget and Appropriations
2. Budget Preparation
3. Appropriation Ordinance
4. Budget Execution
5. Supplemental Appropriations
6. Reading, Passage and Publication of Ordinances
7. Budget Worksheet for Estimated Revenue and Expenditures
8. Opting Out of the Tax Limitation
9. Budget Worksheet for Estimated Revenue and Expenses
10. Budget Worksheet of Expenditures by Department and Object
11. Budget Worksheet of Expenditures by Function and Activity
12. Budget Worksheet of General Fund Revenue
13. Appropriation Ordinance
14. Supplemental Appropriations Ordinance
15. Resolution for Opt Out

SECTION VII - GAAP Annual Report

1. GAAP Introduction
2. Government-Wide Reporting Versus Fund Financial Statements
3. Changes in Budgetary Reporting
4. Government-Wide Financial Statements
5. Governmental Fund Financial Statements
6. Proprietary Fund Financial Statements
7. Fiduciary Fund Financial Statements
8. Basic Financial Statement Notes to the Financial Statements
9. Reconciling from Fund Statements to Entity Wide Financial Statements

SECTION VIII - Finance Officer's Duties

1. Finance Officer's Duties
2. Sample Minutes

SECTION IX - Municipal Calendar

1. Municipal Calendar

SECTION X - Tax Levies

1. Tax Levies

SECTION XI - Enterprise Operations

1. Enterprise Operations
2. Liquor Store Accountability

SECTION XII - Interpretations

1. Interpretation 1 - Accounting for Unemployment Insurance Benefits
2. Interpretation 2 - Interfund Transactions
3. Interpretation 3 - Encumbering
4. Interpretation 4 - Powers of Municipal Board vs. Library Board
5. Interpretation 5 - Accounting for Long-Term Liabilities
6. Interpretation 6 - Capital Outlay Accumulations
7. Interpretation 7 - Accounting for and Reporting Taxes Receivable, Tax Revenue and Estimated Uncollectible Taxes Receivable
8. Interpretation 8 - Accounting for and Reporting Compensated Absences
9. Interpretation 9 - Accounting for and Controlling Video Lottery Revenue
10. Interpretation 10 - Accounting for Accounts Payable in Governmental Funds at December 31
11. Interpretation 11 - Determination of Employee Versus Contracted Service Status
12. Interpretation 12 - Flowchart of Audit Requirements
13. Interpretation 13 - Accounting for Leases
14. Interpretation 14 - Accounting for Grant Revenue
15. Interpretation 15 - Accounting for Revolving Loan Funds
16. Interpretation 16 - Accounting for Tax Incremental Districts

SECTION XIII - Federal Grants

1. Federal Financial Assistance
2. Electronic Code of Federal Regulations

 

December 29, 2023:

Added the following accounts:

• General Ledger account 175 Intangible Subscription Assets - a capital asset account which reflects the intangible right to use subscription assets.

• General Ledger account 176 Accumulated Amortization - Subscription Assets (Credit) - the accumulation of allocations of estimated amortization of intangible right to use subscription assets.

• General Ledger account 232 Subscription Liability - liability account used to account for present value of subscription payments expected to be made during the subscription period.

• Other financing source account 391.28 Subscription Proceeds - to account for proceeds from subscriptions.

Changed the following Other Financing Source account titles and/or definitions:

• 391.27 Note Lease Proceeds to account for proceeds from notes issued. This would include the proceeds from a financed capital acquisition contract. proceeds received by the lessee from a lease agreement in the amount equal to present value of the lease liability.

• 391.29 Other Long-Term Debt Issued - to account for proceeds from other long-term debt issued including the proceeds from a financed capital acquisition contract.

Deleted the following Other Financing Source account titles and/or definitions:

• 391.02 Lease Proceeds - proceeds received by the lessee from a lease agreement in the amount equal to present value of the lease liability.

December 29, 2020:

Deleted the following Special Revenue Fund:

• 224 Storm Sewer Maintenance Fund - to account for the proceeds of the special assessment for the purpose of maintaining the municipal sewers and septic or sewage treatment plants. (SDCL 9-48-21). Repealed 2012 Session

Changed the following General Ledger account titles and/or definitions:

• 164 Improvements Other Than Buildings - a capital asset account which reflects the acquisition of permanent improvements, other than buildings, which add value to land. Examples of such improvements are fences, retaining walls, sidewalks, pavements, gutters, tunnels and bridges and most landscaping. If the improvements are purchased or constructed, this account contains the purchase or contract price. If improvements are obtained by gift, it reflects the appraised value at time of acquisition.

• 166 Machinery Furnishings and Equipment - tangible property of a more or less permanent movable nature. ,other than land or buildings and improvements thereon. Examples are machinery, equipment, tools, trucks, cars, furniture and furnishings.

• 167 Accumulated Depreciation - Machinery Furnishings and Equipment (Credit) - the accumulation of periodic credits made to record the expiration in the service life of machinery furnishings and equipment which is attributable to wear and tear through use and lapse of time obsolescence, inadequacy or other physical or functional cause.

• 237 Other Long-Term Liabilities - a liability account used to record other types of long-term debt. Includes long-term notes payable.

• 247 Other Deferred Inflows of Resources - an account to record other acquisitions of nets position by the government that is applicable to a future reporting period. For a lessor this would include inflows from the right to use lease agreements that relate to future periods.

Added the following General Ledger accounts and definitions:

• 169 Infrastructure - Long-lived capital assets that normally are stationary in nature and normally can be preserved for a significantly greater number of years than most capital assets. Examples of infrastructure assets include roads, bridges, tunnels, drainage systems, water and sewer systems, dams, piers, and bulkheads, and lighting systems.

• 170 Accumulated Depreciation - Infrastructure (Credit) - the accumulation of periodic credits made to record the expiration of estimated service life of infrastructure assets.

• 171 Intangible Assets - a capital asset that lacks physical substance, is non-financial in nature and has an initial useful life extending beyond a single reporting period. Examples of intangible assets are easements, water rights, patents, trademarks and computer software. (Categories of intangible assets that are significant should be reported as separate classes of capital assets. Software, water rights, etc.)

• 172 Accumulated Amortization - Intangible Assets (Credit) - the accumulation of allocations of estimated amortization of an intangible asset.

• 173 Intangible Lease Assets - a capital asset account which reflects the intangible right to use lease assets. Lease assets are classified for reporting purposes according the classification of the underlying capital assets.

• 174 Accumulated Amortization – Lease Assets (Credit) - the accumulation of allocations of estimated amortization of intangible right to use lease assets.

• 234 Lease Liability - liability account used to account for present value of future lease payments to be made by the municipality (lessee) for the right to use leased assets.

• 130 Lease Receivable - an amount to be collected by the municipality (lessor) as the result of right to use lease agreements.

Deleted the following General Ledger accounts and definitions:

• 190 Intangible Assets - a capital asset that lacks physical substance, is non-financial in nature and has an initial useful life extending beyond a single reporting period. Examples of intangible assets are easements, water rights, patents, trademarks and computer software. (Categories of intangible assets that are significant should be reported as separate classes of capital assets. Software, water rights, etc.)

• 191 Accumulated Amortization (Credit) - The accumulation of allocations of estimated amortization of an intangible asset.

Changed the following Other Financing Source account titles and/or definitions:

• 391.27 Capital Leases Note Proceeds - to account for proceeds from notes issued. This would include the proceeds from a financed capital acquisition contract.

Added the following Other Financing Source account titles and/or definitions:

• 391.02 Lease Proceeds - proceeds received by the lessee from a lease agreement in the amount equal to present value of the lease liability.

December 31, 2019:

• Implementation of GASB 84 Fiduciary Activities required the manual to be updated to change the title of Agency Funds to Custodial Funds. Implementation of GASB 84 also made significant changes to the following financial statements: Statement of Fiduciary Net Position (Exhibit 8) and Statement of Changes in Fiduciary Net Position (Exhibit 9).

December 31, 2018:

Changed the following Fund titles and/or definitions:

• #220Street Assessment Special Maintenance Fund - to account for the annual levy assessed for the purpose of maintaining or repairing street surfacing or pavement. public improvements within the municipality that are maintained by the municipality. (SDCL 9-43-138)

Changed the following General Ledger account titles and/or definitions:

• #121 Special Assessments Receivable--Current - the uncollected portion of special assessments which a governmental unit has levied. This account represents amounts due within one year and not yet considered delinquent. and which has become due but on which no penalty for nonpayment attaches. (subsequent year-principal only)


• #122 Special Assessments Receivable--Delinquent -- special assessments remaining unpaid on and after the date on which a penalty for nonpayment is attached. (principal and interest of delinquent installments)


• #123 Special Assessments Receivable--Deferred -Noncurrent-- special assessments which have been levied but which are not yet due within one year. (principal only-future years beyond current)


• #223 Unearned Revenues -- a liability of resources obtained prior to revenue recognition. Amounts under the accrual and modified accrual basis of accounting for which asset recognition criteria have been met, but for which revenue recognition criteria have not yet been met because such amounts have not yet been earned.


• #168 Construction/Development Work in Progress -- the cost of construction or development work undertaken but not yet completed.

Deleted the following General Ledger account:

• #156 Engineering Development Costs -- an Enterprise Fund account which represents the cost of surveys or investigations made for the purpose of determining the feasibility of a project or projects. If the project proves to be feasible, the engineering development cost should be charged to it; if it proves not to be feasible, the amount should be charged off as an expense.

Changed the following Revenue account titles and/or definitions:

• #364.01 Street Special Maintenance Fee -- The governing body may adopt a special maintenance fee for the purpose of maintaining or repairing public improvements upon the lots fronting and abutting a street. (SDCL 9-43-138)

Added the following Revenue account:

• #371 Surcharge as Security of Debt -- revenue specifically dedicated to servicing debt.

Changed the following Expenditure (Expense) account titles and/or definitions:

• #412.2 City ManagerChief Executive -- expenditures of the governmental unit's city manager and the employees connected with the office account used to account for expenditures of the government's chief executive and the employees connected with his or her office. This account title may be changed to indicate the chief executive’s specific title, such as manager or administrator.


• #414.2 Auditor/Clerk or Finance Officer Finance -- account that may include accounts for each of the following types of financial activities: general supervision, accounting, independent audit, budget, tax administration, treasury, licensing, purchasing, debt administration, and internal audit, if not performed in an independent role.


• # 429 Other Protection -- this group includes accounts for protection activities which are not strictly a part of the foregoing major account groupings. Examples include civil defense and flood control.


• #451.2 Participant Recreation -- expenditures for recreational facilities and activities in which direct participation is the primary attribute. (swimming pool) Examples include organized athletics, playgrounds, swimming pools, golf courses, tennis courts, recreation centers and other recreation facilities. Specific accounts may be created for each activity.


• #451.3 Spectator Recreation -- expenditures for recreational activities of a cultural and scientific nature and which benefit the public as spectators. Examples include art galleries, and zoos. Specific accounts may be created for each activity.


• #465.1 Industrial Economic Development -- expenditures made to foster economic growth and development of the area over which the government exercises jurisdiction. Includes economic and industrial surveys, financial assistance to new industries and business, acquisition of industrial sites, and contact activities of industrial development agencies.

Added the following Expenditure (Expense) accounts:

• #424 Corrections -- includes accounts for recording expenditures for confinement of law violators and for probation and parole activities involved in their rehabilitation.


• #424.1 Adult Corrections -- expenditures for the construction, operation, and maintenance of such correctional institutions as prisons, jails, prison factories, and prison farms.


• #424.2 Juvenile Corrections -- expenditures for the construction, operation, and maintenance of such correctional institutions for the punishment and rehabilitation of juvenile offenders such as jails, detention homes, and reformatories.


• #431.8 Sidewalks and crosswalks -- expenditures for the construction, maintenance, and repair of sidewalks, crosswalks, steps, and stairs.


• #451.5 Other Recreation Facilities -- expenditures for special recreational facilities not included in the foregoing accounts. Examples include camping areas, and marinas.

Deleted the following Expenditure (Expense) accounts:

• #414.3 Treasurer


• #414.7 General Financial Administration


• #516 Discount on Bond Issued - The excess of the face value of bonds over the amount received from their sale (excluding accrued interest and issuance costs) Already included as account 512 (duplication)

MADE SIGNIFICANT CHANGES TO OBJECT CLASSIFICATIONS.

December 31, 2016:
Changed the following Revenue titles and/or definitions:

• #335.01 Bank Franchise Tax-- the county treasurer upon receipt of the funds shall apportion and distribute the funds between the taxing subdivisions in the same proportion as the real property taxes levied in each taxing subdivision in the previous year as determined and certified by the secretary of revenue.  (SDCL 10-43-77)


• #335.03 Liquor Tax Reversion (25%)-- twenty-five percent of all of the revenues deposited in the alcoholic beverage fund shall revert to the municipalities. Each municipality's share of the fund shall be determined by the ratio of the population of each municipality to the total population of all the municipalities sharing in the receipts. The Department of Revenue shall make the reversion by remitting not later than November first, February first, May first, and August first, of each year to the finance officer of each municipality its share of the fund. The amount received by each municipality shall be deposited in the municipality's general fund.  (SDCL 35-5-22)


• #335.04 Motor Vehicle Licenses (5%)-- Five percent of all funds collected for motor vehicle licenses and five and one-half percent of license fees on noncommercial motor vehicle which is not an automobile, pickup truck, or van as determined by the gross weight of the motor vehicle in each county shall be forwarded to the municipalities within the counties in the following proportion: each municipality within each county shall receive funds in the proportion which the total street mileage of each municipality bears to the total street mileage of all the municipalities within the county. The apportionment shall be made quarterly by the county commissioners at the first meeting in January, April, July and October.  (SDCL 32-11-4.1 and SDCL 32-5-6.3) 


• 338.02 County Road Highway and Bridge Reserve Tax (25%)-- In all municipalities, twenty- five percent of the money raised by the County road and bridge levy made in the Highway and Bridge Fund within said municipalities shall be paid by the county treasurer to the finance officer of said municipality to be expended by the governing body of said municipality for bridge and street purposes within said municipality. (SDCL 10-12-14)

Deleted the following Expenditure account:

• 441.4 Retiree Insurance

October 8, 2015:
Added the following General Ledger accounts and definition:
#189  Net Pension Asset-- account used to record the amount  in which the pension plan’s fiduciary net position exceeds the total pension liability. 

Deferred Outflows of Resources
#196  Pension Related Deferred Outflows--pension related components that represent a consumption of net position applicable to future reporting period. 
#239  Net Pension Liability--account used to record the amount in which the total pension liability exceeds the pension plan’s fiduciary net position

Deferred Inflows of Resources
#244  Unavailable Revenue--Sales and Use Taxes—an account used to record sales and use taxes that do not qualify for recognition as revenue as they are not yet considered to be available
#248  Pension Related Deferred Inflows--pension related components that represent an acquisition of net position applicable to a future reporting period
264.00 Restricted Fund Balance
#264.10  Surface Transportation Program Purposes--the segregation of fund balances for surface transportation program (STP) funds restricted for highway and bridge construction, maintenance and repair.

Added the following Revenue account and definition:
#334.01  Community Access Grants (DOT)
#334.02 Surface Transportation Program (STP)—state highway funds to be used for highway and bridge construction, maintenance and repair.

Deleted the following Revenue account:
#316      911 Telephone Surcharge--should be using 335.09 911 Remittances state shared revenue as of 7/1/12.  

Changed the following Revenue account:
#335.02 Motor Vehicle Commercial Prorate (Port of Entry Prorate) to #335.02 Prorate License Fees

Added the following Expense account and definition:
#495 Pension Expense--account used to record charges to expense in relation to its pensions payable to employees. 

Changed the following Expenditure (Expense) Account:
#499 Liquor to #493 Liquor

January 2, 2015
Eliminated Exhibit 4 Annual Report Form for Small Municipalities < $600,000 Revenue

Deleted the following accounts:
#335.07 State Shared Revenue - Liquor Reversion

January 20, 2014
Added the following accounts:
Deferred Outflows of Resources
- #197 Deferred Charge on Refunding
- #198 Other Deferred Outflows of Resources

Deferred Inflows of Resources
- #245 Unavailable Revenue-Property Taxes
- #246 Unavailable Revenue-Special Assessments
- #247 Other Deferred Inflows of Resources

Changed #223 Revenue Collected in Advance to #223 Unearned Revenue.
Deleted the following accounts:
- #159 Deferred Charges
- #224 Deferred Revenue

Published Annual Report Form and Instructions included the following changes
Data published on a "major fund" basis.
Revenues published at the "minor source" level.
Expenditures published at the "subfunction" level.
Changed the presentation of the Government-wide Statement of Net Position (Exh.I), Statement of Net Position-Proprietary Funds (Exh. V), and the Statement of Net Position-Fiduciary Funds (Exh. VIII) from the "balance sheet" format to the "statement of net position" format.