Instructions Compiling Financial Report Forms C and CT for ...

1 (R. 1-22) Instructions Compiling Financial Report Forms C and CT for wisconsin Cities, Villages and TownsDivision of State and Local FinanceLocal Government Services Bureau 2021 form C and form CT Financial Report Instructions Back to table of contents2 wisconsin department of RevenueTable of Contents I. Due Dates .. 3II. General Comments .. 3 A . General .. 3 B . Additional notes about form functionality .. 3 C . Audit validation rules built into the form for most lines .. 4 III. Overview of Report .

2 4IV. Definition of Fund Types .. 5 A . Governmental fund types and expendable trust funds .. 5 B . Proprietary fund types and similar trust funds .. 5V. Capital Outlay .. 6 A . Capital outlay expenditures characteristics .. 6 B . Reporting capital outlay expenditures .. 6VI. Required Documents .. 7 VII. Tax Roll Reconciliation Cash Basis Accounting .. 7 VIII. Revenues and Expenditures All Governmental Fund Types and Expendable Trust Funds .. 10 A . Revenues .. 10 B.

3 Expenditures .. 23IX. Financial Report Reconciliation Cash Basis of Accounting .. 36X. Statement of Changes in Fund Balance Modified Accrual Basis All Governmental Fund Types and Expendable Trust Funds .. 37 XI. Revenues/Expenses All Proprietary Fund Types and Similar Trust Funds .. 37 A . Operating revenues .. 37 B . Operating expenses .. 42 C . Non-operating revenue .. 44 D . Non-operating expenses .. 46 XII. Other Financial Sources (Uses) .. 47 XIII. Specified Receipt, Disbursement, and Other Data All Funds.

4 47 XIV. Indebtedness .. 48 2021 form C and form CT Financial Report Instructions Back to table of contents3 wisconsin department of RevenueI. Due DatesYou must electronically file (e-file) the Financial Report form (MFR) with the wisconsin department of revenue (DOR) . The due date is provided under state law (sec . 86 .303(5), Wis . Stats .), which requires municipalities with a population of 2,500 or less to file a properly completed Financial Report by March 31 . Municipalities over 2,500 must file by May 1.

5 DOR grants an automatic extension to May 15 . These due dates must be met to avoid the penalties under secs . 73 .10(4) and 86 .303(5), Wis . Stats .If the MFR is not filed by the May 15 extension, General Transportation Aid formula penalties are assessed . In addition, an auditor may be assigned to compile the Report and your municipality will be charged for the cost of the auditor s time and expenses . If the MFR is filed timely but not properly completed, an auditor may be assigned to recompile the Report at the municipality s expense.

6 Under state law (sec . 73 .10(2)(a), Wis . Stats .), municipalities must prepare the Report provided by DOR in accordance with these Instructions issued by the department .Municipalities of over 25,000 in population are also required to provide an auditor s opinion on whether the information submitted on the Report is fairly stated in all material respects in relation to the municipality s audited Financial statements .If an auditor s opinion cannot be provided by May 15, the municipality must file an unaudited Report by May 15, and then submit an amended MFR and auditor s opinion by July 31.

7 II. General CommentsA. General1 . All entries must be in whole dollar amounts . Leave unused lines blank .2 . The data submitted is used in the highway aid and municipal services payments (MSP) formulas . Therefore, netting of operating revenues against expenditures or omission of activities may negatively impact your municipality in the formulas .3 . Use the same basis of accounting used to maintain the local records and the general purpose Financial statements in the audit report4 . Note: Employee benefits are not an activity.

8 Expenditures for employee benefits must be allocated to the user activities . If employee benefits are collected in a group of general accounts, then the police, fire, ambulance, sanitation, and highway employee benefits must be allocated on the basis of their respective fringe benefit program . Fringe benefits for other activities may be allocated on a rational basis .5 . Line numbers correspond to those in the uniform chart of accounts developed by DOR (ex: Line 41130 indicates occupational tax in the Report and the chart of accounts).

9 6 . Although the Report is organized on the Generally Accepted Accounting Principles (GAAP) reporting system, it is designed to accommodate all levels of accounting systems used by wisconsin municipalities .B. Additional notes about form functionalityEach of these simplify the filing process, and audit validation rules help improve filing accuracy: Some lines are auto-filled with values from other sources, which allows you to simply verify the auto-filled values are correct Line items transferred from other lines or that carryover from the prior year are auto-filled Audit validation rules are present for most lines 2021 form C and form CT Financial Report Instructions Back to table of contents4 wisconsin department of revenue Audit warnings make you aware of lines that may need attention or additional documentation Addition of error symbols make you aware of lines that need correcting before

10 Submitting the Report If an amendment is required, it is now quick and easy to amend the filing and resubmit PDF copy of your form matches the filing application formatC. There are audit validation rules built into the form for most lines 1. This means that a line of the Report may have one of the five following audit validations rules: Amount entered is a certain percentage above or below the prior year s entry generates a Warning requiring additional explanation/documentation Auto-filled amount if changed, generates a Warning requiring additional explanation/documentation Auto-filled amount from prior year if changed, generates a Warning requiring additional explanation/documentation Transferred from another line if changed.