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

   1. (1) Proprietary funds;
   2. (2) Non-expendable trust funds; and
   3. (3) Pension 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) Counties shall, for purposes of filing Form MS-45, “Financial Report of the County,” 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. #5455, eff 8-28-92; ss by #6808, eff 7-21-98; ss by #8687, eff 7-21-06; ss by #10652, eff 8-8-14; ss by #14027, eff 7-16-24