Author: Bureau of Accounts
Now that we’re at the beginning of the free cash as of 7/1/26 certification season, we offer the following advice regarding balance sheet submissions, all of which are based on common mistakes and omissions observed by staff the previous certification year:
- Review the self-audit checklist found at the back of the Director’s annual Year End Letter to Accountants and Auditors prior to Balance Sheet submission for important reminders.
- Complete the Bureau’s Combined Balance Sheet downloadable Excel template found on the Gateway Balance Sheet Module. If you have an account that doesn’t appear to belong anywhere on the template, you can add a new row or change the description in a current row to meet your needs.
- Be careful when transferring data from the trial balance to the Combined Balance Sheet template. If mapping to the Balance Sheet is done manually, please take extra care to double-check your work. Please provide a crosswalk for any account groupings that do not correspond exactly with the system report.
- Do not submit the Balance Sheet until assets equal liabilities plus fund balances. If they do not equal, you must search for the accounting error.
- Trial balance receivables must match those on the Outstanding Receivables Report (Balance per General Ledger column) and Combined Balance Sheet. Trial balance cash must match cash on the Combined Balance Sheet, Cash Reconciliation form and Treasurer’s Year-End Report of Cash. Make sure to explain variances.
- Complete the General Long Term Debt column on the Combined Balance Sheet and be sure the total matches total long-term debt on the Statement of Indebtedness. Short-term debt is reported in the appropriate fund as Notes Payable in the liabilities section and must also match the Statement of Indebtedness.
- Be certain that detailed fund balances match Combined Balance Sheet fund balances. Note proof of accuracy at the bottom of the Combined Balance Sheet. If the data originates from two different sources, you must determine which source is incorrect.
- Negative account balances as of 6/30 reduce free cash and may be required to be provided for on the next tax rate. Certain funds received by 9/30 are allowed under UMAS Modified Accrual provisions as indicated in the Director’s annual Year-End Letter to Accountants and Auditors.
- The roll-forward worksheet on the Combined Balance Sheet template shows how the undesignated fund balance is calculated. Figures are taken from the previous and current fiscal year’s balance sheets while audit adjustments and revenue and expenditure closeouts require additional supporting documentation. Please provide a crosswalk for any account groupings that do not correspond exactly with the system report. We will tie your system generated undesignated fund balance report to the figures reported on the Excel undesignated fund balance roll-forward.
Once you have completed and submitted your balance sheet and supporting forms, email your Bureau of Accounts field rep to let him/her know. If you have questions, please contact your field rep and review training materials provided by the DLS Municipal Finance Training & Resource Center.
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Editor: Dan Bertrand
Editorial Board: Sean Cronin, Scott Ditto, Janie Dretler, Jessica Ferry, Brianna Ortiz, Christopher Ketchen, Paula King, Jen McAllister and Tony Rassias
| Date published: | August 13, 2026 |
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