Certifying free cash, retained earnings, excess & deficiency

As part of its oversight role, the Division of Local Services certifies the free cash, enterprise fund retained earnings, and excess and deficiency totals for cities, towns, and regional school districts. As each of these fund types serve as important reserves, the below resources can assist local officials responsible for preparing these submissions for review by DLS’ Bureau of Accounts.

Timely submission of certification information is essential to municipal operations.

Who is involved with this process

• State Oversight of Local Taxation: DLS's Role (Video 101)
• The Role and Responsibilities of an Accountant/Auditor (PDF)
• The Role of a Finance Director (PDF)

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Balance sheet and free cash certification

• An Introduction to Free Cash (Video)
• Balance Sheet Review and Free Cash Certification Process (Video)
• Free Cash Upload & Certification Process Webinar Recording (Video)
• Free Cash Upload & Certification Process Webinar Slides (PDF)
• Revenue and Appropriation Deficits (PDF)
• Revenue Deficits: An Overview (PDF)
• The Importance of Free Cash (PDF)
• The Importance of Reserve Policies (PDF)
• Treasurer's Debt Service Schedule (XLS)

Enterprise fund retained earnings

• Enterprise Fund manual (PDF)
• Enterprise Funds (PDF)
• Enterprise Funds: Overview and Best Practices (Video)

Excess & deficiency

• Excess and Deficiency Upload Process Webinar Recording (Video)
• Excess and Deficiency Upload Process Webinar Slides (PDF)