1. (a) Village districts shall use the accrual basis of accounting for:

   1. (1) Proprietary funds;
   2. (2) Non-expendable trust funds;
   3. (3) Pension trust funds; and
   4. (4) Deferred compensation plan and other employee benefit trust funds.

2. (b) Under the accrual basis of accounting, transactions shall be classified by fund and for:

   1. (1) Revenues recognized in the accounting period in which they are earned and become measurable; and
   2. (2) Expenses, rather than expenditures, recognized in the period incurred, if measurable.

3. (c) Village districts shall, for purposes of filing Form MS-535, “Financial Report of the Budget”, use the modified accrual basis of accounting for all:

   1. (1) Governmental funds;
   2. (2) Transfers to and expenditures from capital reserve funds and expendable trust funds; and
   3. (3) Fiduciary funds.

4. (d) Under the modified accrual basis of accounting, transactions shall be classified by fund and for:

   1. (1) Revenues recognized in the accounting period in which they become available and measurable; and
   2. (2) Expenditures rather than expenses, recognized in the accounting period in which the fund liability is incurred, if measurable, except for unmatured interest on general long-term debt.

Source. #5454, eff 8-28-92; ss by #6809, eff 7-21-98; ss by #8686, eff 7-21-06; ss by #10675, eff 9-24-14; ss by #14072, eff 9-10-24