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MPSERS 147c(2) One-Time Deposits
The State School Aid Act was recently amended to include one-time distributions under section 147c(2) to participating districts of the Michigan Public Schools Employees Retirement System.
These additional payments will be required to be submitted to the office of Retirement Services as additional contributions of assets, and are one-time payments to help reduce the unfunded liability.
Districts are encouraged to charge section 147c(2) across as many functions codes as practical but may NOT allocate the payments to federal grant programs. These funds must be recorded equally as revenue and expenditures at the fund level.
MDE has been working with the U.S. Department of Education on the possible exclusion of these funds from the maintenance of effort and indirect cost calculations. In order to assist in the exclusion, districts must record these funds using grant code 263 and be accounted for in separate accounts.
Expenditures should be recorded as major class code 312.
Maner Costerisan’s Education group is monitoring these and other crucial accounting updates. Please reach out to a team member if you have any questions on accounting, grants, or funding at maner@manercpa.com.
These additional payments will be required to be submitted to the office of Retirement Services as additional contributions of assets, and are one-time payments to help reduce the unfunded liability.
Districts are encouraged to charge section 147c(2) across as many functions codes as practical but may NOT allocate the payments to federal grant programs. These funds must be recorded equally as revenue and expenditures at the fund level.
MDE has been working with the U.S. Department of Education on the possible exclusion of these funds from the maintenance of effort and indirect cost calculations. In order to assist in the exclusion, districts must record these funds using grant code 263 and be accounted for in separate accounts.
Expenditures should be recorded as major class code 312.
Maner Costerisan’s Education group is monitoring these and other crucial accounting updates. Please reach out to a team member if you have any questions on accounting, grants, or funding at maner@manercpa.com.
The materials provided in the News & Insights section are for general informational purposes only and may not reflect the most current legal, tax, or financial developments. While we strive to ensure accuracy at the time of publication, Maner Costerisan does not guarantee that the information remains up-to-date or free from error. We recommend consulting directly with a Maner Costerisan team member to confirm the applicability and relevance of any information to your specific situation.