A municipality shall report and classify probable future economic benefits obtained or controlled by a municipality as a result of past transactions or events as follows:

1. (a) Account 1010, “Cash and Equivalents,” shall be for:

   1. (1) Cash on hand;
   2. (2) Checks, money orders, or banker’s drafts on hand;
   3. (3) Demand deposits with financial institutions; or
   4. (4) Investments readily convertible to known amounts of cash and that will mature within 3 months of acquisition;
2. (b) Account 1030, “Investments,” shall be for securities that provide revenues in the form of interest and dividends;
3. (c) Account 1080, “Taxes Receivable,” shall be for the uncollected portion of taxes the municipality has levied;

4. (d) Account 1110, “Tax Liens Receivable,” shall be for legal claims against property that have been exercised due to nonpayment of:

   1. (1) Delinquent taxes;
   2. (2) Interest and penalties; and
   3. (3) The costs of converting delinquent taxes into tax liens;

5. (e) Account 1150, “Accounts Receivable,” shall:

   1. (1) Be for amounts owed on open accounts from private individuals or organizations for goods and services furnished by a government; and
   2. (2) Not be amounts due from other funds or from other governments;

6. (f) Account 1260, “Due from Other Governments,” shall be for amounts owed to the municipality from another government representing charges for:

   1. (1) Goods and services;
   2. (2) Loans and intergovernmental grants;
   3. (3) Entitlements;
   4. (4) Shared revenues; and
   5. (5) Payments in lieu of taxes;

7. (g) Account 1310, “Due from Other Funds,” shall be for amounts owed to one municipal fund from another municipal fund representing charges for:

   1. (1) Goods and services; and
   2. (2) Interfund advances to another municipal fund;
8. (h) Account 1400, “Other Current Assets,” shall be for assets, not included elsewhere, whose economic benefit shall be converted to cash or used to meet a current liability within one accounting cycle;

9. (i) Account 1610, “Land and Improvements,” shall be for:

   1. (1) Land purchased or otherwise acquired; and
   2. (2) All improvements made to ready the land for use, net of any applicable depreciation;

10. (j) Account 1620, “Buildings,” shall be for:

    1. (1) Buildings purchased or otherwise acquired;
    2. (2) All expenditures related to construction of buildings, or improvements made to extend the life of the structure; and
    3. (3) The capitalized costs of leased property if the conditions of the lease meet the criteria specified in FASB statements and interpretations, net of any depreciation;

11. (k) Account 1640, “Machinery, Vehicles, and Equipment,” shall be for:

    1. (1) Machinery and equipment purchased or otherwise acquired;
    2. (2) All expenditures for the construction of machinery and equipment; and
    3. (3) The capitalized costs of leased machinery and equipment if the conditions of the lease meet the criteria specified in FASB statements and interpretations, net of any depreciation;
12. (l) Account 1650, “Construction in Progress,” shall be for the cost of construction undertaken but not yet completed;

13. (m) Account 1660, “Improvements Other Than Buildings,” shall be for all expenditures for improvements which are immovable, such as:

    1. (1) Roads, bridges, and curbs;
    2. (2) Gutters, streets, and sidewalks;
    3. (3) Drainage systems; and
    4. (4) Exterior lighting systems;

14. (n) Account 1670, “Tax Deeded Property,” shall be for the value of properties acquired by the tax lien process as represented by the amounts of:

    1. (1) Outstanding taxes, penalties, and interest;
    2. (2) Costs of identifying mortgagees and statutory fees; and
    3. (3) Other incidental costs incurred between the execution of the lien and the recording of the deed; and
15. (o) Account 1700, “Other Assets,” shall be for intangible assets and other assets, not classified in (a) through (n) above, whose economic benefit shall be converted to cash or used to meet liabilities at some future time beyond the next accounting cycle.

Source. #4940, eff 9-25-90; ss by #6335, eff 9-24-96 (from Rev 1708); ss by #8179, eff 9-24-04; ss by #10214, eff 10-24-12; ss by #13489, eff 11-15-22 (see Revision Note at chapter heading for Rev 1700)