The guidelines state that an entitlement may not be recognized as revenue prior to the year it is intended to finance. Several school districts have asked about applying the new guidelines to homestead and rollback reimbursements received within the available period. Homestead and rollback payments are entitlements paid by the State to a political subdivision. They are intended to reimburse the subdivision for reductions in property tax revenue caused by credits granted to certain property owners by state statute. The statement provides that if one fund is going to be used to account for a self-insurance program, it must either be the general fund or an internal service fund.
Guidelines identify the proper accounting treatment based on the fund selected.
The statement also creates note disclosure requirements for self-insurance programs. The statement provides guidance for determining which pronouncements apply to accounting for proprietary activities, and authorizes a choice regarding certain pronouncements issued after November 30, 1989. Local governments must disclose in the notes to the financial statements which pronouncements are being applied to accounting and reporting for proprietary fund activities. Escheat property represents assets that revert to a government because there are no legal claimants or heirs. Unclaimed assets revert to a government due to the failure of the person who is legally entitled to the property to make a valid claim within a certain period of time.