Program Budgeting and Accounting Manual

PROGRAM BUDGETING AND

ACCOUNTING MANUAL

For School Districts and Education Service Districts In Oregon

2019 Edition

Colt Gill • Deputy Superintendent of Public Instruction

Oregon Department of Education • Salem, Oregon 97310-0203

It is a policy of the State Board of Education and a priority of the Oregon Department of Education that there

will be no discrimination or harassment on the grounds of race, color, sex, marital status, religion, national

origin, age, sexual orientation, or disability in any educational programs, activities or employment. Persons

having questions about equal opportunity and nondiscrimination should contact the Deputy

Superintendent of Public Instruction at the Oregon Department of Education, 255 Capitol Street NE, Salem,

Oregon 97310; phone 503-947-5740; or fax 503-378-5156.

This document was produced by the School Finance Department

Office of Finance and Information Technology

Oregon Department of Education

This document can be accessed on the District Budgeting and Accounting page

Please share this document with your colleagues.

All or any part of it may be reproduced for educational purposes

without permission from the Oregon Department of Education.

(Revised November 1, 2019)

Foreword

This edition of the Program Budgeting and Accounting Manual is a revision of the 2018 manual.

This document becomes effective for the 2020-21 fiscal year. When the 1998 manual was

drafted, the Chart of Accounts Committee recommended biennial revisions to keep the manual

up to date and to promote consistency of accounting across school districts in the state. The

1998 changes were a result of House Bill 3636, enacted by the Legislature in 1997, which

directed the Department of Education to review, modify, update and improve the existing chart

of accounts for school districts and education service districts that will allow for valid

comparisons of expenditures among schools and districts.

School district representatives from around the state have contributed their time and expertise

to complete the revised manual. The Oregon Department of Education wishes to thank the

committee members for their work in completing this fourteenth edition of the manual.

Sincerely,

Colt Gill

Deputy Superintendent of Public Instruction

Chart of Accounts Review Committee Participants

We wish to thank the district staff for their time, energy, efforts, and contributions

Name

District/Company

Title

Adams, Ann

Amity SD

Business Manager

Belanger, Tim

Oregon Trail SD

Business Director

Bell, Debbie

Corvallis SD

Controller

Bewley, Martha

Jefferson County SD

Chief Financial Officer

Bolls, Joan

Springfield SD

Internal Auditor/Budget Specialist

Booth, Tami

Parkrose SD

District Accountant

Bottomley, Sara

Multnomah ESD

Budget & Management Analyst

Clute, Ilean

Forest Grove SD

Business Manager

Daddabbo, Adrienne

Marcola SD

Business Manager

Davenport, Spencer

Central Point SD

Chief Financial Officer

Davis, Tresa

West Linn-Wilsonville SD

Senior Accountant

DeChamplain, Amy

Jefferson County SD

Accounting Clerk

Diener, Debbie

Falls City SD

Business Manager

Dodd, Susan

Oregon City SD

Chief Financial Officer

Ely, Jordan

Portland Public SD

Director of Budget & Analysis

Ely, Sherry

Grants Pass SD

Chief Finance & Operations Officer

Escure, Susan

McMinnville SD

Finance Director

Grant, Larry

Grove Mueller & Swank

CPA, Auditor

Jacobson, Gayellyn

North Clackamas SD

Chief Financial Officer

Jones, Jessica

Beaverton SD

Budget Manager

Komar, Patt

David Douglas SD

Business Manager

Levear, Simon

Bethel SD

Director of Business Services

Lewis, Sharie

Parkrose SD

Director of Business Services & Ops

MacLean, Debbie

Dallas SD

Director of Fiscal Services

Malinowski, Lindsay

ODE

Financial Reporting Analyst

Marshall, Laura

ODE

School Finance Coordinator

Michels, Elizabeth

Tigard Tualatin SD

Controller

Moore, David

Tigard Tualatin SD

Chief Financial Officer

Morgan, Jeanne

Klamath Falls SD

District Controller

Morrison, Michelle

Hillsboro SD

Director of Business Services

Nielson, Jennifer

Adrian SD

Business Manager

Nunn, Jerod

Brookings Harbor SD

Director of Fiscal Services

Ortega, Daniliz

NW Regional ESD

Accounting Manager

Peterman, Angie

OASBO

Executive Director

Pillar, Scott

Cascade SD

Director of Finance

Pinder, Tracy

Portland Public SD

Director of Financial Services

Reid, Denise

Klamath County SD

District Accountant

Rufo, Pat

Blachly SD

Business Manager

Schellhaas, Andre

NW Regional ESD

Accounting Manager

Seay, Jessica

St. Helens SD

Business Manager

Snook, Shannon

KDP Certified Public Accountants, LLP

Senior Associate

Strode, Kady

Parkrose SD

District Accountant

Wiltfong, Mike

ODE

Director of School Finance/Facilities

Wolfer, Melissa

Gervais SD

Business Manager

Table of Contents

Foreword ....................................................................................................................................................... 3

Chart of Accounts Review Committee Participants ...................................................................................... 4

Chapter 1 ..................................................................................................................................................... 10

Introduction .................................................................................................................................... 10

The Purpose and Goal ......................................................................................................... 10

Organization of the Manual ................................................................................................ 10

Conformance with Generally Accepted Accounting Principles .......................................... 10

Complying with the Oregon Local Budget Law ................................................................... 10

Chapter 2 ..................................................................................................................................................... 11

Uses of the Account Classification System ..................................................................................... 11

What is an Accounting System? ...................................................................................................... 11

Financial Reports ............................................................................................................................. 11

The State Legislature ....................................................................................................................... 11

School Administrators and Other Employees ................................................................................. 11

School Boards and Other Governing Units ..................................................................................... 11

Creditors and Potential Creditors ................................................................................................... 12

The General Public .......................................................................................................................... 12

The Account Classification System ................................................................................................. 12

Fund Classification .......................................................................................................................... 12

Governmental Funds........................................................................................................... 12

Proprietary Funds ............................................................................................................... 13

Fiduciary Funds ................................................................................................................... 13

Account Groups .............................................................................................................................. 13

Governmental Funds........................................................................................................... 13

Proprietary Funds ............................................................................................................... 13

Fiduciary Fund ..................................................................................................................... 13

Types of Financial Activity ............................................................................................................... 13

Revenues ............................................................................................................................. 13

Expenditures ....................................................................................................................... 13

Balance Sheet ...................................................................................................................... 13

Revenue Dimensions ........................................................................................................... 13

Expenditure Dimensions ..................................................................................................... 14

The Minimum Chart of Accounts ........................................................................................ 14

Account Classification Descriptions ................................................................................................ 16

Fund Classifications ............................................................................................................. 16

Revenue Sources ............................................................................................................................. 17

1000 Revenue from Local Sources ...................................................................................... 17

2000 Revenue From Intermediate Sources ........................................................................ 18

3000 Revenue From State Sources ..................................................................................... 19

4000 Revenue From Federal Sources ................................................................................. 19

5000 Other Sources ............................................................................................................ 20

Expenditure Functions .................................................................................................................... 21

1000 Instruction ................................................................................................................. 21

2000 Support Services ........................................................................................................ 22

3000 Enterprise and Community Services .......................................................................... 25

4000 Facilities Acquisition and Construction ...................................................................... 26

5000 Other Uses ................................................................................................................. 26

6000 Contingencies ............................................................................................................ 26

7000 Unappropriated Ending Fund Balance ....................................................................... 26

Expenditure Objects ........................................................................................................................ 27

Expenditure Areas of Responsibility ............................................................................................... 31

Descriptions of Balance Sheet Accounts......................................................................................... 32

Assets and Other Debits...................................................................................................... 32

Liabilities, Reserves and Fund Balances .............................................................................. 33

Chapter 3 ..................................................................................................................................................... 34

Accounting Program Structure ....................................................................................................... 34

Minimum Chart of Accounts ........................................................................................................... 34

Operational Unit used at School Level or Central .............................................................. 37

Special Instructions for Recording Expenditures ................................................................ 37

GASB Statement 34 Reporting Requirements .................................................................... 37

Special Education Costs—Maintenance of Effort ............................................................... 39

School Medicaid Billing and IDEA MOE .............................................................................. 39

Transportation of Special Education Students ................................................................... 39

Remediation ........................................................................................................................ 39

Alternative Education ......................................................................................................... 40

Substitute Teachers ............................................................................................................ 40

Staff Development .............................................................................................................. 40

Grant Administrative Charges ............................................................................................. 40

Transfers to Other Funds .................................................................................................... 41

Payments to Internal Service Funds ................................................................................... 41

Supplemental Retirement Programs .................................................................................. 41

Student Body Funds ............................................................................................................ 42

Classifying Salary Expenditures ........................................................................................... 42

Bond Refunding Guidelines ................................................................................................ 42

Accounting Manual Definitions .................................................................................................................. 43

Fund Classifications ......................................................................................................................... 43

Revenue Sources ............................................................................................................................. 45

1000 Revenue from Local Sources. ................................................................................. 45

2000 Revenue From Intermediate Sources. ................................................................... 49

3000 Revenue From State Sources. ................................................................................ 50

4000 Revenue From Federal Sources. ............................................................................. 51

5000 Other Sources. ........................................................................................................ 53

Expenditure Functions .................................................................................................................... 54

1000 Instruction. ............................................................................................................. 54

2000 Support Services. .................................................................................................... 58

3000 Enterprise and Community Services. ..................................................................... 67

4000 Facilities Acquisition and Construction. ................................................................ 68

5000 Other Uses. ............................................................................................................ 69

6000 Contingencies (for budget only). ........................................................................... 69

7000 Unappropriated Ending Fund Balance. ................................................................. 70

Expenditure Objects ........................................................................................................................ 71

100 Salaries. ................................................................................................................... 71

200 Associated Payroll Costs. ........................................................................................ 72

300 Purchased Services. ................................................................................................ 73

400 Supplies and Materials. ........................................................................................... 77

500 Capital Outlay. ......................................................................................................... 78

600 Other Objects. ......................................................................................................... 79

700 Transfers. ................................................................................................................ 81

800 Other Uses of Funds. ............................................................................................... 81

Expenditure Areas of Responsibility ............................................................................................... 82

Descriptions of Balance Sheet Accounts......................................................................................... 85

Assets and Other Debits...................................................................................................... 85

Liabilities, Reserves and Fund Balances .............................................................................. 88

Appendix A .................................................................................................................................................. 92

Terminology .................................................................................................................................... 92

Appendix B .................................................................................................................................................. 97

Analysis of Student Body Funds ...................................................................................................... 97

Appendix C .................................................................................................................................................. 98

Sources of Accounting and Budget Information ............................................................................. 98

Appendix D .................................................................................................................................................. 99

ACCOUNT CODE STRUCTURE CHARTS ............................................................................................ 99

ACCOUNT CODE STRUCTURE ........................................................................................................ 100

ACCOUNT CODE STRUCTURE ........................................................................................................ 101

ACCOUNT CODE STRUCTURE ........................................................................................................ 102

ACCOUNT CODE STRUCTURE ........................................................................................................ 103

ACCOUNT CODE STRUCTURE ........................................................................................................ 104

ACCOUNT CODE STRUCTURE ........................................................................................................ 105

Appendix E ................................................................................................................................................ 106

Guidelines for ELL and Non-ELL Related Expenditures ................................................................. 106

Appendix F ................................................................................................................................................ 109

Guidelines for Coding Technology: Object Code 400 – Supplies and Materials .......................... 109

Appendix G ................................................................................................................................................ 110

Recommended Guidelines for New-Program Accounting ............................................................ 110

Appendix H ................................................................................................................................................ 111

EVERY STUDENT SUCCEEDS ACT (ESSA) ........................................................................................ 111

Chapter 1 — Introduction

Chapter 1

Introduction

The Purpose and Goal

The Program Budgeting and Accounting Manual is

designed as a resource tool for school districts and

education service districts in Oregon. The use of the

budget and accounting codes will vary with the individual

needs of each district. The minimum requirement is

adopted as Administrative Rule by the State Board of

Education and is in bold type face as shown in Chapter 2.

Additional codes are available at the option of the district

for more extensive use of account descriptions.

The 2019 Program Budgeting and Accounting Manual

was developed based on the following goals:

The accounting code structure is designed to provide

consistent classification of expenditures to allow

valid spending comparisons among schools and

districts. The financial accounting and reporting

system complies with Generally Accepted

Accounting Principles (GAAP).

The budgeting and accounting system can be used to

plan and manage the resources of a school district.

The manual is a working handbook to which revisions

will be made.

With the above goals in mind, the Oregon Department of

Education presents this manual to all school districts and

educational service districts in the state of Oregon. It is

our intent that use will occur at all levels of management,

ranging from the classroom to the boardroom.

Organization of the Manual

Description of the account code structure begins in

Chapter 2, covering fund classification, function, object,

operational unit, area of responsibility, sub-area, and

revenue codes. This chapter provides the basis for the

account classification. Chapter 3 provides detailed

definitions of the account numbers listed in Chapter 2

and special instructions to promote consistency in

accounting practice.

The Department of Education will update this manual

each biennium or as needed.

We welcome your comments and suggestions regarding

the revised accounting manual.

Conformance with Generally Accepted Accounting

Principles

A primary emphasis of this manual is to define account

classifications that provide meaningful financial

management information to its users. As part of this

emphasis, the Program Budgeting and Accounting

Manual is written to approach conformance with

Generally Accepted Accounting Principles (GAAP), a

uniform minimum standard of and guideline for financial

accounting and reporting. The Government Finance

Officers Association has developed a practical guide to

implementing accounting standards in its Governmental

Accounting, Auditing and Financial Reporting (GAAFR)

document.

Achieving consistency in budgeting and financial

reporting enhances our ability to present a clear picture

of the district’s financial condition and to make valid

comparisons among districts.

Financial information that is consistently presented in a

simple and straightforward format will be readily

understood by the public, and provide a sound basis for

decision-making.

Complying with the Oregon Local Budget Law

Oregon Budget Law (ORS 294) specifies a process and

format for a district’s annual budget preparation and

presentation. The Oregon Department of Education,

through the administrative rule process, adopts a chart

of accounts (Chapter 2) that are used to classify revenues

and expenditures. These account codes are approved by

the Department of Revenue.

Chapter 2 — Uses of the Account Classification System

Chapter 2

Uses of the Account Classification System

The purposes of this chapter are to: (1) describe an

accounting system and the need for the financial reports

of the district; (2) describe the account classification

structure; and (3) provide the chart of accounts used in a

school district accounting system.

What is an Accounting System?

What is an accounting system? How does it go about

serving the diverse needs of its users? The accounting

system is the means by which financial data are captured

during actual operation of the district, recorded in the

accounting system, and then analyzed to produce the

various kinds of reports needed. Financial transactions

can be classified to facilitate their accumulation in

categories to display activities in the financial reports. A

primary purpose of an accounting system is to produce

financial information organized in various ways for

various uses.

Financial Reports

The financial reports produced in a district fall into two

major groupings: internal and external. Examples of the

internal reports include:

comparison of budgeted vs. actual revenues and

expenditures;

cash flow projection;

building operation and maintenance costs, by

building; and

expenditure accounts, showing activity during the

last reporting period.

comparison of current and prior year’s revenues

and expenditures.

External financial reports are produced by the district to

satisfy the needs of the various users who are not a part

of the district, including state and federal agencies,

Congress, the Legislature, creditors and credit rating

agencies, parents, taxpayers, and the general public.

Each school district is required to produce an annual

financial report that has been audited by an independent

audit firm. Other external reports generally are of a

special purpose or nature. They may include such reports

as:

general financial/statistical summaries for use by

legislators;

specific reports of certain revenues and expenditures

by program, for use by the funding source(s); and

program cost reports.

The State Legislature

The Oregon Legislature determines the level of funding

available for the operation of Oregon’s school districts.

Accordingly, legislators need clear, consistent

information on school spending as a basis for decision

making. Cumulative information in comparable formats

about the operations of groups of districts is needed to

formulate funding policies.

School Administrators and Other Employees

School administrators are key users of the financial

account classification system. They must rely on financial

reports to allocate and manage resources, evaluate past

performance, to aid in day-to-day decision making and to

inform the general public.

Budgeting, an important managerial tool for the public

school administrator, relies upon correct and properly

classified accounting information. The expenditure

dimensions used here offer the administrator a variety of

methods for budgeting and permit local judgment about

the most appropriate technique. Additionally, the

accounting system satisfies the administrator’s

obligation to ensure compliance with the legal,

regulatory and fiduciary responsibilities of this position of

public trust.

School Boards and Other Governing Units

School boards and other governing units have both a

responsibility and an intense interest in the operation of

the school system. The school board is responsible for

establishing policies and for overseeing and appraising

the administrator as he or she carries out these policies.

The school board thus needs timely warning in case

situations develop that require corrective action. The

board also needs information to assess both the

Chapter 2 — Uses of the Account Classification System

efficiency of the administration and its effectiveness in

complying with policies and restrictions. Some of this

information can be provided by general purpose financial

reports. Comparable information obtained about other

districts also is needed as a basis for comparison.

Creditors and Potential Creditors

Creditors include bondholders and prospective

bondholders, credit rating agencies that advise potential

bondholders, commercial banks, vendors, and others

who have extended credit, or who are considering

extending credit, to the district. Typically, they would be

interested in the financial position of the organization, its

operating performance, and its ability to repay the bonds

or loans in full and on time.

The General Public

The interests of constituents are similar to those of

resource providers: they want to understand the nature

of the organization’s activities, the services provided,

and how effectively and efficiently resources are

managed.

The Account Classification System

The account classification system presented here is

designed to enable the districts to produce the financial

reports necessary to better meet all of the potential uses

identified above. Based on the following guidelines, the

structure meets the identified needs and will provide

comparability of reported data among different districts.

1. The chart of accounts encourages full disclosure of

the financial position of the district. Emphasis is placed

on the accurate classification of financial transactions.

Expenditures are recorded in the appropriate accounting

categories, regardless of the implications of some of

those decisions.

2. Comprehensive financial reporting is encouraged.

The district should incorporate all financial activities into

a single accounting and reporting system for full

disclosure. Accounts for such activities as food services,

student body activities, community services and

commercial-like enterprises all should be included in the

financial reports of the district.

3. Simplified reporting is encouraged. GAAFR

encourages using the minimum number of funds

necessary for legal and operational use. Using

unnecessary funds can result in inflexibility, undue

complexity, and inefficient financial administration.

Financial reports should be well organized and easy to

read.

4. The account classification system is flexible: it

meets the needs of both small and large districts while

retaining comparability of reported data. The guidelines

here include a minimum list of accounts essential for

state and federal reporting. They also provide a variety

of optional classifications of districts interested in a more

comprehensive approach to financial accounting and

reporting.

The classification of accounts and the recommended

reporting structure remain in accordance with generally

accepted accounting principles.

Fund Classification

Governmental accounting systems are organized and

operated on a fund basis. The diverse nature of

governmental operations and the need for legal

compliance preclude recording and summarizing financial

transactions in a single accounting entity. Instead, the

required accounts are organized on the basis of

independent funds. If one were to compare fund

accounting with commercial accounting, each fund would

equate to an independent business, with a separate set of

records owned by one entity, the district.

The accounting system is structured to maintain the

identity of the resources, obligations, revenues,

expenditures and equities for each fund. This is

accomplished by providing a complete self-balancing set

of accounts for each fund that shows its assets, liabilities,

reserves, fund balances or retained earnings, revenues

and expenditures or expenses.

The classifications of fund and account groups included in

this handbook are similar to those used by other state and

local governmental units. They consist of the following

fund and account groups:

Governmental Funds

The funds through which most districts functions are

typically financed. The reporting focus is upon

determining the financial position and changes in financial

position, rather than upon determining net income.

Chapter 2 — Uses of the Account Classification System

Proprietary Funds

The funds used to account for district activities that

are similar to business operations in the private

sector; or where the reporting focus is upon

determining net income, financial position and

changes in cash flows.

Fiduciary Funds

The funds used to account for assets held by a district as

trustee or agent. Each trust fund is treated for accounting

measurement purposes in a manner similar to either a

governmental fund or a proprietary fund. Expendable

trust funds are accounted for in essentially the same

manner as governmental funds. Nonexpendable trust

funds and pension trust funds are accounted for in

essentially the same manner as proprietary funds.

Agency funds are purely custodial (assets equal liabilities)

and thus do not involve measurements of results of

operations.

Account Groups

Groups of accounts which are used to record and control

the district’s general fixed assets and unmatured general

long-term liabilities. Long-term liabilities of proprietary

funds and trust funds should be accounted for through

those funds

These four classifications are divided into the following

categories called fund types:

Governmental Funds

100 General Fund

200 Special Revenue Funds

300 Debt Service Funds

400 Capital Project Funds

Proprietary Funds

500 Enterprise Funds

600 Internal Service Funds

Fiduciary Fund

700 Trust and Agency Funds

Types of Financial Activity

This publication classifies three basic types of

financial activity within funds: (1) revenues and

other sources of funds, (2) expenditures and

other uses of funds, and (3) transactions

affecting the balance sheet (assets and

liabilities) of the district. For each type of

transaction, the specific account code is made

up of a combination of classifications called

dimensions. Each dimension describes one way

of classifying financial activity. The dimensions

for each type of transaction are:

Revenues

Fund: XXX

Source: XXXX

Project: XXX

Expenditures

Fund: XXX

Function: XXXX

Object: XXX

Operational Unit: XXX

Area of Responsibility: XXX

Sub-Area: XXX

Balance Sheet

Fund: XXX

Asset (or Liability): XXX

The purpose and uses of each of these dimensions are as

follows:

Revenue Dimensions

Source

Revenues collected by school districts are classified by

major source:

1000 Local Sources

2000 Intermediate Sources

3000 State Sources

4000 Federal Sources

5000 Other Sources

Project

Districts may use additional account code dimensions to

provide further classification of revenue to track receipts

for a particular program, project, or school.

Sub-categories within a major source provide additional

information regarding the source of revenue. For

example, local sources of revenue are recorded in sub-

Chapter 2 — Uses of the Account Classification System

classifications as local property taxes levied by the school

district, tuition, fees, interest earnings, etc.

Expenditure Dimensions

Function

The function describes the activity for which a

service or material object is acquired. The major

functions of a district are classified into seven

areas:

1000 Instruction

2000 Support Services

3000 Enterprise and Community Services

4000 Facilities Acquisition and Construction

5000 Other Uses (Interagency/Fund

Transactions and Debt Service)

6000 Contingency

7000 Unappropriated Ending Fund Balance

Functions and sub-functions consist of activities that

have similar operational objectives. Categories of

activities in each of these divisions and subdivisions are

grouped according to the principle that the activities

could be combined, compared, related, and mutually

exclusive.

Object

The object is the service or commodity bought. These

categories are also divided into sub-objects for more

detailed accounting.

100 Salaries

200 Associated Payroll Costs

300 Purchased Services

400 Supplies and Materials

500 Capital Outlay

600 Other Objects

700 Transfers

800 Other Uses of Funds

Operational Unit

This dimension is used to identify (1) schools or (2) non-

school cost centers, such as central programs or

departments. Operational Unit codes are defined by the

school districts but are required for state reporting

purposes because expenditures are reported at the

school level rather than the district level.

Area of Responsibility

This dimension provides additional detail to the account

code and is used to identify expenditures for specific

curriculum areas and programs. Districts may elect to use

area codes for a variety of reasons to track expenditures

and manage costs.

Sub-Area

Districts often add other account code dimensions to

classify expenditures for particular purposes at their

discretion. Some of the possible additional uses are:

term;

course; work

order;

bus route or vehicle;

capital project;

In addition, in automated systems, there may be a need to

add some codes for use by the computer. These might

include:

a transaction code to route the transaction through

the system and post the correct files and fields

in the data record;

a fiscal year code to assist with closing out one year

while beginning to process activity for the new

year;

a reporting level code to assist in organizing report

contents and subtotals;

a district or other organizational unit code in a

multi-district system.

The Minimum Chart of Accounts

The handbook classification structure (particularly the

expenditure classifications) can generate large amounts

of detailed data. However, much of the classification

system described herein is offered for the optional use of

the district. Hence, a district may choose, in a number of

ways, which parts of the system it needs or wants to use.

It may choose:

Not to use certain optional dimensions at all;

To consolidate certain dimensions in its

own local chart of accounts.

To use more dimensions than defined in

this publication.

Chapter 2 — Uses of the Account Classification System

Whatever course a district chooses, it must follow a

certain minimum list of these classifications to meet

federal and state reporting requirements. This list is

referred to as the “minimum chart of accounts.”

Using this publication, the district’s first task then is to

decide what additional classifications it wishes to use

for its own purposes. In the following account

classification descriptions, the minimum chart of

accounts is highlighted in bold.

Chapter 2 — Uses of the Account Classification System

Account Classification Descriptions

The account codes are presented for use in accounting for revenue and expenditures of a school district.

The codes in bold type face are required, except for Area of Responsibility. Non- bold codes are optional

and may be used at the district’s discretion. Definitions for each of these descriptions begin in Chapter 3.

Fund Classifications

100 General Fund

200 Special Revenue Funds

300 Dept Service Funds

400 Capital Projects Funds

500 Enterprise Funds

600 Internal Service Funds

700 Trust and Agency Funds

Chapter 2 — Uses of the Account Classification System

Revenue Sources

1000 Revenue from Local Sources

1100 Taxes

1110 Ad Valorem Taxes Levied by District

1111 Current Year’s Taxes

1112 Prior Year’s Taxes

1113 County Tax Sales for back Taxes

1114 Payments in Lieu of Property Taxes

1120 Local Option Ad Valorem Taxes Levied by District

1121 Current Year’s Local Option Taxes

1122 Prior Year’s Local Option Taxes

1123 Penalties and Interest on Local Option Taxes

1130 Construction Excise Tax

1190 Penalties and Interest on Taxes

1200 Revenue From Local Governmental Units Other Than Districts

1300 Tuition

1310 Regular Day School Tuition

1311 Tuition From Individuals

1312 Tuition From Other Districts Within the State

1313 Tuition From Other Districts Outside the State

1320 Adult/Continuing Education Tuition

1321 Tuition From Individuals

1322 Tuition From Other Districts Within the State

1323 Tuition From Other Districts Outside the State

1324 Tuition/Contract Receipts for Community Services

1330 Summer School Tuition

1331 Tuition From Individuals

1332 Tuition From Other Districts Within the State

1333 Tuition From Other Districts Outside the State

1400 Transportation Fees

1410 Regular Day School Transportation

1411 Transportation Fees From Individuals

1412 Transportation Fees From Other Districts Within the State

1413 Transportation Fees From Other Districts Outside the State

1420 Summer School Transportation

1421 Transportation Fees From Individuals

1422 Transportation Fees From Other Districts Within the State

1423 Transportation Fees From Other Districts Outside the State

1500 Earnings on Investments

1510 Interest on Investments

1530 Gain or Loss on Sale of Investment

Chapter 2 — Uses of the Account Classification System

1600 Food Service

1610 Daily Sales – Reimbursable Programs

1611 Breakfast

1612 Lunch

1613 Special Milk Program

1620 Daily Sales – Non Reimbursable Program

1630 Special Functions

1700 Extracurricular Activities

1710 Admissions

1720 Bookstore Sales

1730 Student Organization Membership Dues and Fees

1740 Fees

1750 Concessions

1760 Club Fund Raising

1790 Other Extracurricular Activities

1800 Community Services Activities

1900 Other Revenue from Local Sources

1910 Rentals

1920 Contributions, Donations and General Fundraising from Private Sources

1930 Rental or Lease Payments from Private Contractors

1940 Services Provided Other Local Education Agencies

1941 Services Provided Other Districts Within the State

1942 Services Provided Other Districts Outside the State

1943 Services Provided Charter Schools

1950 Textbook Sales and Rentals

1951 Textbook Sales

1960 Recovery of Prior Years’ Expenditure

1970 Services Provided Other Funds

1980 Fees Charged to Grants

1990 Miscellaneous

2000 Revenue From Intermediate Sources

2100 Unrestricted Revenue

2101 County School Funds

2102 General Education Service District Funds (Effective 7/1/10)

2103 Excess ESD Local Revenue (Effective 7/1/10)

2105 Natural Gas, Oil, and Mineral Receipts

2110 Intermediate ‘I’ Tax (City and County Income Taxes)

2111 Current Year

2112 Prior Year

2113 Penalties and Interest

2199 Other Intermediate Sources

2200 Restricted Revenue

Chapter 2 — Uses of the Account Classification System

2800 Revenue in Lieu of Taxes

2900 Revenue for/on Behalf of the District

3000 Revenue From State Sources

3100 Unrestricted Grants-In-Aid

3101 State School Fund – General Support

3102 State School Fund – School Lunch Match

3103 Common School Fund

3104 State Managed County Timber

3106 State School Fund – Accrual

3199 Other Unrestricted Grants-in-aid

3200 Restricted Grants-In-Aid

3204 Driver Education

3222 State School Fund (SSF) Transportation Equipment

3299 Other Restricted Grants-in-aid

3800 Revenue in Lieu of Taxes

3900 Revenue for/on Behalf of the District

4000 Revenue From Federal Sources

4100 Unrestricted Revenue Direct From the Federal Government

4200 Unrestricted Revenue From the Federal Government Through the State

4201 Transportation Fees For Foster Children

4202 Medicaid Reimbursement for Eligible K-12 Expenses

(Ages Five to Twenty-One)

4300 Restricted Revenue Direct From the Federal Government

4500 Restricted Revenue From the Federal Government Through the State

4501 Medicaid Reimbursement for Eligible Early Intervention

(EI) Services (Birth to Age Three)

4502 Medicaid Reimbursement for Eligible Early Childhood

Special Education (ECSE) Services (Ages Three to Five)

4700 Grants-In-Aid From the Federal Government Through Other Intermediate Agencies

4800 Revenue in Lieu of Taxes

4801 Federal Forest Fees

4802 Impact Aid to School Districts for Operation (PL 874)

4803 Coos Bay Wagon Road Funds

4899 Other Revenue in Lieu of Taxes

Chapter 2 — Uses of the Account Classification System

4900 Revenue for/on Behalf of the District

5000 Other Sources

5100 Long Term Debt Financing Sources

5110 Bond Proceeds

5120 Bond Premium

5130 Accrued Interest

5140 Mortgage Receipts

5150 Loan Receipts

5160 Lease Purchase Receipts

5200 Interfund Transfers

5300 Sale of or Compensation for Loss of Fixed Assets

5400 Resources—Beginning Fund Balance

Chapter 2 — Uses of the Account Classification System

Expenditure Functions

1000 Instruction

1100 Regular Programs

1111 Elementary, K-5 or K-6 (Effective 7/1/2011)

1113 Elementary Extracurricular

1121 Middle/Junior High School Programs

1122 Middle/Junior High School Extracurricular

1131 High School Programs

1132 High School Extracurricular

1140 Pre-kindergarten Programs

1200 Special Programs

1210 Programs for the Talented and Gifted

1220 Restrictive Programs for Students with Disabilities

1221 Learning Centers – Structured and Intensive

1222 Development Kindergarten

1223 Community Transition Centers

1224 Life Skills with Nursing

1225 Out of District Programs

1226 Home Instruction

1227 Extended School Year Programs

1228 Diagnostic Classrooms

1229 Other Special Programs

1250 Less Restrictive Programs for Students with Disabilities

1260 Treatment and Habilitation

1270 Educationally Disadvantaged

1271 Remediation

1272 Title IA/D

1280 Alternative Education

1281 Public Alternative Programs

1282 Private Alternative Programs

1283-1287 District Alternative Programs

1288 Charter Schools

1289 Other Alternative Programs

1290 Designated Programs

1291 English Language Learner – ORS 336.079

1292 Teen Parent Programs

1293 Migrant Education

Chapter 2 — Uses of the Account Classification System

1294 Youth Corrections Education

1295 English Language Learner – Non ORS 336.079

1299 Other Programs

1300 Adult/Continuing Education Programs

1400 Summer School Programs

1410 Elementary

1420 Middle/Junior High

1430 High School

1460 Special Programs, Summer School

1490 Other Summer School Programs

2000 Support Services

2100 Support Services—Students

2110 Attendance and Social Work Services

2111 Service Area Direction

2112 Attendance Services

2113 Social Work Services

2114 Student Accounting Services

2115 Student Safety

2117 Identification and Recruitment of Migrant Children

2119 Other Attendance and Social Work Services

2120 Guidance Services

2121 Service Area Direction

2122 Counseling Services

2123 Appraisal Services

2124 Information Services

2126 Placement Services

2129 Other Guidance Services

2130 Health Services

2131 Service Area Direction

2132 Medical Services

2133 Dental Services

2134 Nurse Services

2139 Other Health Services

2140 Psychological Services

2141 Service Area Direction

2142 Psychological Testing Services

2143 Psychological Counseling Services

2144 Psychotherapy Services

2148 Other Psychological Services

Chapter 2 — Uses of the Account Classification System

2150 Speech Pathology and Audiology Services

2151 Service Area Direction

2152 Speech Pathology Services

2153 Audiology Services

2159 Other Speech Pathology and Audiology Services

2160 Other Student Treatment Services

2190 Service Direction, Student Support Services

2200 Support Services—Instructional Staff

2210 Improvement of Instruction Services

2211 Service Area Direction

2213 Curriculum Development

2219 Other Improvement of Instruction Services

2220 Educational Media Services

2221 Service Area Direction

2222 Library/Media Center

2224 Educational Television Services

2229 Other Educational Media Services

2230 Assessment and Testing

2240 Instructional Staff Development

2300 Support Services—General Administration

2310 Board of Education Services

2320 Executive Administration Services

2321 Office of the Superintendent Services

2324 State and Federal Relations Services

2329 Other Executive Administration Services

2400 School Administration

2410 Office of the Principal Services

2490 Other Support Services – School Administration

2500 Support Services – Business

2510 Direction of Business Support Services

2520 Fiscal Services

2521 Service Area Direction

Chapter 2 — Uses of the Account Classification System

2522 Budgeting Services

2523 Receiving and Disbursing Funds Services

2524 Payroll Services

2525 Financial Accounting Services

2526 Internal Auditing Services

2527 Property Accounting Services

2528 Risk Management Services

2529 Other Fiscal Services

2540 Operation and Maintenance of Plant Services

2541 Service Area Direction

2542 Care and Upkeep of Buildings Services

2543 Care and Upkeep of Grounds Services

2544 Maintenance

2546 Security Services

2549 Other Operation and Maintenance of Plant Services

2550 Student Transportation Services

2551 Service Area Direction

2552 Vehicle Operation Services

2558 Special Education Transportation Services

2559 Other Student Transportation Services

2570 Internal Services

2571 Service Area Direction

2572 Purchasing Services

2573 Warehousing and Distributing Services

2574 Printing, Publishing, and Duplicating Services

2579 Other Internal Services

2600 Support Services—Central Activities

2610 Direction of Central Support Services

2620 Planning, Research, Development, Evaluation Services, Grant Writing and Statistical

Services

2621 Service Area Direction

2622 Development Services

2623 Evaluation Services

2624 Planning Services

2625 Research Services

2626 Grant Writing

2627 Statistical Services

2628 Fundraising/Resource Development

2629 Other Planning, Research, Development, and Evaluation Services

2630 Information Services

2631 Service Area Direction

2632 Internal Information Services

Chapter 2 — Uses of the Account Classification System

2633 Public Information Services

2634 Management Information Services

2639 Other Information Services

2640 Staff Services

2641 Service Area Direction

2642 Recruitment and Placement Services

2643 Staff Accounting Services

2645 Health Services

2649 Other Staff Services

2660 Technology Services

2661 Service Area Direction

2662 Systems Analysis Services

2663 Programming Services

2664 Operations Services

2669 Other Technology Services

2670 Records Management Services

2680 Interpretation and Translation Services

2690 Other Support Services – Central

2700 Supplemental Retirement Program

3000 Enterprise and Community Services

3100 Food Services

3110 Service Area Direction

3120 Food Preparation and Dispensing Services

3130 Food Delivery Services

3190 Other Food Services

3200 Other Enterprise Services

3300 Community Services

3310 Direction of Community Services Activities

3320 Community Recreation Services

3330 Civic Services

3340 Public Library Services

3360 Welfare Activities Services

3370 Nonpublic School Students Services

3390 Other Community Services

3500 Custody and Care of Children Services

Chapter 2 — Uses of the Account Classification System

4000 Facilities Acquisition and Construction

4100 Facilities Acquisition and Construction

4110 Service Area Direction

4120 Site Acquisition and Development Services

4150 Building Acquisition, Construction, and Improvement Services

4180 Other Capital Items

4190 Other Facilities Construction Services

5000 Other Uses

5100 Debt Service

5110 Long-Term Debt Service

5120 Short-Term Debt Retirement

5200 Transfers of Funds

5300 Apportionment of Funds by ESD

5400 PERS UAL Lump Sum Payment to PERS

6000 Contingencies

6110 Operating Contingency

7000 Unappropriated Ending Fund Balance

Chapter 2 — Uses of the Account Classification System

Expenditure Objects

100 Salaries

110 Regular Salaries

111 Licensed Salaries

112 Classified Salaries

113 Administrators

114 Managerial—Classified

115 Sabbatical

116 Supplemental Retirement Stipends

117 Unused Leave

120 Nonpermanent Salaries

121 Substitutes—Licensed

122 Substitutes—Classified

123 Temporary—Licensed

124 Temporary—Classified

130 Additional Salary

140-190 Additional Salary

200 Associated Payroll Costs

210 Public Employees Retirement System

211 Employer Contribution, Tier I and Tier II

212 Employee Contribution, Pick-Up

213 PERS UAL Contribution

214 PERS UAL Contribution

215 PERS UAL Contribution

216 Employer Contribution, Tier III

220 Social Security Administration

230 Other Required Payroll Costs

231 Workers’ Compensation

232 Unemployment Compensation

240 Contractual Employee Benefits

270 Post Retirement Health Benefits

300 Purchased Services

310 Instructional, Professional and Technical Services

311 Instruction Services

312 Instructional Programs Improvement Services

Chapter 2 — Uses of the Account Classification System

313 Student Services

316 Data Processing Services

317 Statistical Services

318 Professional and Improvement Costs for Non-Instructional Staff

319 Other Instructional, Professional and Technical Services

320 Property Services

321 Cleaning Services

322 Repairs and Maintenance Services

324 Rentals

325 Electricity

326 Fuel

327 Water and Sewage

328 Garbage

329 Other Property Services

330 Student Transportation Services

331 Reimbursable Student Transportation

332 Non-reimbursable Student Transportation

333 Board and Room in Lieu of Transportation

334 Transportation Portion of Tuition Payments

340 Travel

341 Travel, Local in District

342 Travel, Out of District

343 Travel, Student, Out of District

349 Other Travel

350 Communication

351 Telephone

353 Postage

354 Advertising

355 Printing and Binding

359 Other Communication Services

360 Charter School Payments

370 Tuition

371 Tuition Payments to Other Districts Within State

372 Tuition Payments to Other Districts Outside the State

373 Tuition Payments to Private Schools

374 Other Tuition

380 Non-instructional Professional and Technical Services

381 Audit Services

382 Legal Services

383 Architect/Engineer Services

384 Negotiation Services

385 Management Services

Chapter 2 — Uses of the Account Classification System

386 Data Processing Services

387 Statistical Services

388 Election Services

389 Other Non-instructional Professional and Technical Services

390 Other General Professional and Technological Services

400 Supplies and Materials

410 Consumable Supplies and Materials

420 Textbooks

430 Library Books

440 Periodicals

450 Food

460 Non-Consumable Items

470 Computer Software

480 Computer Hardware

500 Capital Outlay

510 Land Acquisition

520 Buildings Acquisition

530 Improvements Other Than Buildings

540 Depreciable Equipment

541 Initial and Additional Equipment Purchase

542 Replacement Equipment Purchase

550 Depreciable Technology

560 Depreciable Bus Garage, Bus and Capital Bus Improvements

562 Bus Garage

564 Bus and Capital Bus Improvements

590 Other Capital Outlay

600 Other Objects

610 Redemption of Principal

Chapter 2 — Uses of the Account Classification System

620 Interest

621 Regular Interest

622 Bus Garage, Bus and Capital Improvement Interest

630 Unrecoverable Bad Debt Write-Off

640 Dues and Fees

650 Insurance and Judgements

651 Liability Insurance

652 Fidelity Bond Premiums

653 Property Insurance Premiums

654 Student Insurance Premiums

655 Judgements and Settlements Against the District

659 Other Insurance and Judgements

660 Depreciation (Used for Enterprise and Internal Service Funds Only)

662 Buildings

663 Improvements Other Than Buildings

664 Equipment

665 Technology

669 Other Capital Assets

670 Taxes and Licenses

680 PERS UAL Lump Sum Payment to PERS

690 Grant Indirect Charges

700 Transfers

800 Other Uses of Funds

810 Planned Reserve

820 Reserved for Next Year

Chapter 2 — Uses of the Account Classification System

Expenditure Areas of Responsibility

010 Home Instruction

020 Tutoring

050 General Classroom Instruction

060 Core Areas/Block Classes

090 Other Pre-kindergarten Programs

100 English

110 Social Studies

120 Science

130 The Arts

170 Driver Education

180 Mathematics

190 Health Education

200 Physical Education

210 Second Language

230 Athletics

250 Other Extracurricular Student Activities

260 Technology

270 Career Related Learning

280 English Language Learner Programs

290 Other Programs

310 Non-Instructional Staff Development

320 Special Education

340 Coordinated Early Intervening Services

350 School Improvement Fund Grant

Professional, Technical Strands

510 Arts and Communication

520 Business and Management

530 Health Services

540 Human Resources

550 Industrial and Engineering Systems

560 Natural Resources Systems

570 Other Professional, Technical Strands. Defined by the District.

580 Other Professional, Technical Strands. Defined by the District.

590 Other Professional, Technical Strands. Defined by the District.

Chapter 2 — Uses of the Account Classification System

Descriptions of Balance Sheet Accounts

Assets and Other Debits

100 Current Assets

101 Cash in the Bank

102 Cash on Hand

103 Petty Cash

104 Change Cash

105 Cash With Fiscal Agents

106 Cash and Investments to Repay Short-term Notes

111 Investments

112 Unamortized Premiums on Investments

113 Unamortized Documents on Investments (credit)

114 Interest Receivable on Investments

115 Accrued Interest on Investments Purchased

121 Taxes Receivable

122 Estimated Uncollectible Taxes (credit)

131 Interfund Loans Receivable

132 Interfund Accounts Receivable

141 Intergovernmental Accounts Receivable

151 Loans Receivable

152 Estimated Uncollectible Loans

153 Other Accounts Receivable

154 Estimated Uncollectible Accounts Receivable

161 Bond Proceeds Receivable

171 Inventories for Consumption

172 Inventories for Resale

181 Prepaid Expenses

191 Deposits

199 Other Current Assets

200 Fixed Assets

211 Sites

221 Site Improvements

222 Accumulated Depreciation on Site Improvements

231 Buildings and Building Improvements

232 Accumulated Depreciation on Buildings and Building Improvements

241 Machinery and Equipment

242 Accumulated Depreciation on Machinery and Equipment

251 Construction in Progress

300 Budgeting Accounts and Other Debits

301 Estimated Revenues (budget account)

302 Revenues

303 Amount Available in Debt Service Funds

304 Amount to Be Provided for Retirement of General Long-Term Debt

Chapter 2 — Uses of the Account Classification System

Liabilities, Reserves and Fund Balances

400 Current Liabilities

401 Interfund Loans Payable

402 Interfund Accounts Payable

411 Intergovernmental Accounts Payable

421 Accounts Payable

422 Judgments Payable

423 Warrants Payable

431 Contracts Payable

432 Construction Contracts Payable—Retained Percentage

433 Construction Contracts Payable

441 Matured Bonds Payable

442 Bonds Payable

443 Unamortized Premiums on Bonds Sold

451 Loans Payable

455 Interest Payable

461 Accrued Salaries and Benefits

471 Payroll Deductions and Withholdings

481 Deferred Revenues

491 Deposits Payable

492 Due to Fiscal Agent

499 Other Current Liabilities

500 Long-Term Liabilities

511 Bonds Payable

521 Loans Payable

531 Lease Obligations

541 Unfunded Pension Liabilities

590 Other Long-Term Liabilities

600 Budgeting Accounts

601 Appropriations (budget account)

602 Expenditures

603 Encumbrances

700 Fund Equity

701 Investment in General Fixed Assets

721 Contributed Capital

730 Reserve for (Special Purposes)—Retained Earnings

740 Unreserved Retained Earnings

760 Other than Unassigned (Special Purposes)—Fund Balance

761 Non-spendable Fund Balance

762 Restricted Fund Balance

763 Committed Fund Balance

764 Assigned Fund Balance

770 Unassigned Fund Balance

CharChap

Chapter 3

Accounting Program Structure

An accounting program structure represents a conceptual organization of the school system’s activities. It

provides the basis for collecting, organizing, analyzing, and displaying financial information about the activities

of a school district and provides for grouping of activities for assigning costs.

The accounting program structure for Oregon school districts is based on the following account dimensions:

Fund Function Object Operational Unit Area of Responsibility Sub-Area

The account code segments allow several levels of detail. For example, a function code can provide four levels

of information:

1111—Regular Elementary Instruction

Function——1XXX—Instruction

Program———11XX—Regular Instruction

Service Area————111X—Regular Elementary Instruction

Grade Level—————1111—Regular Elementary Instruction

The state requires different levels of detail for various account segments for the Minimum Chart of Accounts.

The requirements are outlined in the following sections, with the minimum level of detail indicated with bold

font, except for Area of Responsibility.

Minimum Chart of Accounts

The following expenditure dimensions are required for state reporting:

Fund, Function, Object, and Operational Unit are required for all expenditure accounts. Fund, Function,

and Object are defined by the state. Operational Unit is district-defined and is used to designate either a

school or a central program or department.

Expenditure

Dimension

Defined by:

Required

for:

Number of

Digits

Comments

Fund

State

All Accounts

The state defines only the first

digit of each fund.

Function

State

All Accounts

Object

State

All Accounts

Operational

Unit

District

All Accounts

Identifies a school or central

district program or department

Area of

Responsibility

State

Some

Accounts

See Area of Responsibility

Dimension Required Table

below

Sub-Area

District

Not

Required

This is an optional category for

district use

Area of Responsibility is state-defined and is required for certain Functions, e.g., to indicate curriculum

area at the secondary level. Additional account code segments, e.g., Sub-Area, are optional expenditure

dimensions that are district-defined and should not be reported to the state.

Area of Responsibility Dimension Required:

Note: An “x” indicates a rollup of accounts to the digits indicated. For example a 12xx Function represents

all Functions that have a “12” prefix.

Function

Description

To designate:

1121

Middle School/Jr. High Instruction

Curriculum Area

1131

High School Instruction

Curriculum Area

12xx

Special Education

Maintenance of Effort, if applicable

1271

Remediation

Curriculum Area

21xx

Special Education Support

Maintenance of Effort, if applicable

2190

Special Education Direction

Maintenance of Effort, if applicable

2240

Staff Development

Targeted Training, if applicable

2550

Special Education Transportation

Maintenance of Effort, if applicable

Operational Unit

Operational unit designated either a school or a central program or department. In general, school-based

costs should be charged directly to the school (Operational Unit). The sate calculates cost per student at

the school level, and central costs will be allocated to the schools on a per-student basis. Grants should

be charged to the school level when the information is available; e.g., Title I. Special Education programs

should always be charged centrally. The following table indicates whether functions should be charged

directly to the School, to a Central number or Either or Both. The “Charge to Either” column indicates that

some expenditures in the function would logically be charged to the school and others to a central

department. For example, in function 2540, charge the building custodian to the school and a central

maintenance worker to a central operational unit.

Function / Description

Charge to

School

Charge

Centrally

Charge to

Either

11XX Instruction

12XX Special Programs

21XX Support of Students

22XX Support of Instruction

23XX Executive Admin

241X Principal’s Office

249X Other School Administration

251X Business Direction

Function / Description

Charge to

School

Charge

Centrally

Charge to

Either

252X Fiscal Services

254X Operation/Maintenance of Plant

255X Transportation

257X Purchasing, Warehouse, Printing

261X Central Direction

262X Planning, Research & Dev

263X Information Services

264X Staff Services

266X Technology Services

267X Records Management

268X Interpretation/Translation Services

31XX Food Services

32XX Enterprise Operations

33XX Community Services

35XX Child Care

4XXX Facilities Acquisition/Construction

5XXX Other Uses

Operational Unit used at School Level or Central

School

Either

Central

1100 Instruction

1200 Special Programs

2300 Executive Admin

2410 Principal’s Office

2100 Support of Students

2510 Business Direction

3500 Child Care

2200 Support of Instruction

2520 Fiscal Services

2490 Other School Administration

2610 Central Direction

2540 Operation/Maintenance of Plant

2620 Planning, Research & Dev

2550 Transportation

2630 Information Services

2570 Purchasing, Warehouse, Printing

2640 Staff Services

2660 Technology Services

2670 Records Management

2680 Interpretation/Translation Services

5000 Other Uses

3100 Food Services

3200 Enterprise Operations

3300 Community Services

4000 Facilities Acquisition/Construction

Charging school-based expenditures directly to the school when possible will produce more accurate cost

information in most cases. Special Education costs, however, should be charged centrally because the

wide variation of special needs and costs among schools could skew the calculation of cost per student at

the school level.

When a district receives a grant, which can be identified at the school level, charge the grant to the

school level.

Special Instructions for Recording Expenditures

The following procedures are intended to improve consistency among school districts in

classifying expenditures.

GASB Statement 34 Reporting Requirements

Governmental Accounting Standards Board (GASB) Statement 34 represents one of the most

comprehensive changes in financial reporting standards in history. This section will not attempt to address

all issues relative to implementation of these standards. District officials are encouraged to discuss their

specific issues with their auditors. Detailed questions and answers relative to this topic can be found in the

Guide to Implementation of GASB Statement 34 on Basic Financial Statements and Management’s

Discussion and Analysis for State and Local Governments published by GASB.

GASB 34-related changes to Chart of Accounts:

This section recaps the proposed impact of GASB 34 on the Chart of Accounts. Additional details are

provided within each of the impacted accounts.

Funds

• Special Revenue Funds – Food Service and Student Body funds should be classified within the

Special Revenue Funds. Food Services should not be classified as an Enterprise Fund. Student

Body Funds should not be classified as Trust or Agency Funds.

• Enterprise Funds – In general, the use of Enterprise Funds is discouraged.

Objects

• ODE sets the capitalization threshold to $5,000; this is consistent with the federal level.

• Districts may use sub-objects under 460 and 480 for inventoried non-capitalized assets if districts

choose to identify separately or have inventory systems tied to object codes.

• Add (Depreciable) to name of objects 540 and 550.

• Reorder 66x objects as follows:

 662 Buildings

 663 Improvements Other Than Buildings

 664 Equipment

 665 Technology

 669 Other Capital Assets

• Note in description for 66x that it is generally to be used only in Enterprise and Internal Service

funds.

• The following Object codes have been modified to comply with depreciation

requirements of GASB 34. Details can be found within their specific descriptions.

 460 Non-consumable Items

 540 Depreciable Equipment

 660 Depreciation. (Used for Enterprise and Internal Service Funds only)

Special Education Costs—Maintenance of Effort

The Individuals with Disabilities Education Act (IDEA) grant program requires Local Education Agencies

(LEAs) to meet maintenance of effort (MOE) as a condition of receiving these federal funds This means

that LEAs may not reduce the amount of local, or State and local, general funds they spend for the

education of children with disabilities below the amount they spent for the preceding fiscal year in which

they met MOE. (34 CFR 300.203)

Charge special education expenditures to the appropriate function with an Operational Unit code. Attach

area code 320 when reporting special education expenditures in all funds. However, only General Fund

100 is used in the MOE baseline calculations.

School Medicaid Billing and IDEA MOE

According to 34 CFR 300.154(g)(2), reimbursements from federal funds, e.g. Medicaid, will not be

considered State/local for the purposes of MOE. However, per the Office of Special Education Programs

(OSEP), the State/local match payments that are used to draw down the federal Medicaid reimbursement

must be included in the MOE calculation.

Example: Resource Room Teacher Salary coded to 100-1250-111-XXX-320:

Expenditure

Dimension

Account

Code

Description

Comments

Fund

100

General Fund

Generally, the state defines

only the first digit of each fund.

Function

1250

Less Restrictive Programs for

Students with Disabilities

Object

111

Licensed Salaries

Operational Unit

XXX

District Assigned Unit

District-assigned central id, rather

than directly to schools.

Area of

Responsibility

320

Special Education

Transportation of Special Education Students

1. Charge costs of providing special education transportation to function 2550 and attach Area 320,

including salaries and associated payroll costs of bus drivers and attendants. Allocate costs such

as supplies, insurance, and maintenance between regular transportation and special education.

Districts may track actual costs or allocate costs based on special education mileage.

2. Report the purchase of new special education buses under function 2550, Area 320.

Remediation

Schools will be offering remedial courses to students who do not meet the state standards. Charge costs of

remediation to function 1271.

Example: Licensed salary cost for teaching remedial classes in math.

Debit Expenditure 100-1271-111-XXX-180

Alternative Education

Charge costs of alternative education programs to function 1280 and a central operational unit.

Example: Tuition payments to another agency to provide alternative education.

Debit Expenditure 100-1280-371-XXX

Example: Licensed salary cost for a teacher in district provided alternative education.

Debit Expenditure 100-1280-111-XXX

Substitute Teachers

Record the cost of substitutes in the function of the teacher that the substitute is replacing, if the teacher

is absent due to illness, personal leave, etc. If the teacher is absent to participate in staff development,

charge the substitute cost to a 2240 function (Instructional Staff Development).

Example: Substitute replaces a third grade teacher who is ill

Debit Expenditure 100-1111-121-XXX

Example: Substitute replaces a fourth grade teacher who is attending a workshop on teaching math

Debit Expenditure 100-2240-121-XXX or

Debit Expenditure 100-2240-121-XXX-180 to designate math

Staff Development

Charge costs of staff development for licensed, classified, and administrative employees that are

instructionally related to 2240 Instructional Staff Development, using the appropriate object.

Example: Record cost of supplies for math instruction training session which elementary teachers

attend.

Debit Expenditure 100-2240-410-XXX or

Debit Expenditure 100-2240-410-XXX-180 to designate math

Charge non-instructional staff development to the appropriate function and object. Attach Area code 310

Staff Development for tracking.

Example: Computer spreadsheet training materials for fiscal staff.

Debit Expenditure 100-2520-410-XXX-310

Grant Administrative Charges

Record the indirect charges for grant administration directly to the grant, object code 690. Pay the amount

to the general fund, revenue account 1980.

Example: Record administrative charge to staff development grant.

Debit Expenditure 200-2240-690-XXX

Credit Liabilities 200-4020 Due to other funds

Debit Assets 100-1320 Due from other funds

Credit Revenue 100-1980 Fees charged to grants

Transfers to Other Funds

Districts may make transfers from one fund to the General Fund, Special Revenue, Debt Service, Capital

Projects, and Trust and Agency Funds. Transfers are excluded from expenditures in the transferring fund

to avoid double counting.

Example: Transfer money from the General Fund to a Special Revenue Fund.

Debit Expenditure 100-5200-710 Transfers to other funds

Credit Liabilities 100-4020 Due to other funds

Debit Assets 200-1320 Due from other funds

Credit Revenue 200-5200 Transfers from other funds

Payments to Internal Service Funds

Districts should record payments, rather than transfers, from one fund to an internal service fund so that

the expenditure is recorded in the operating fund.

Example: Record payment from the General Fund to an Internal Service Fund. District contribution for

employee insurance for primary teachers is charged to the General Fund and paid to the Insurance Reserve

Fund.

Debit Expenditure 100-1111-240-XXX

Credit Payroll Liability 100-4610

Debit Payroll Liability 100-4610

Credit Revenue 600-1970 Services to other funds

Expenditures in internal service funds will be excluded from per-student cost calculations to avoid double

counting. Do not make transfers to Internal Service Funds.

Supplemental Retirement Programs

Cost of providing district retirement incentive benefits to current employees and sustaining those benefits

to prior employees.

Record the current year district contribution to the program in the designated fund and function 2700.

Pay the contribution amount to a Supplemental Retirement Fund, which should be classified as a trust fund

or directly from General Fund to retirees. The district may use the contributions to pay current obligations

to retirees and/or to accumulate reserves for outstanding liabilities.

Example:

Debit Expenditure 100-2700-240-XXX

Credit Liabilities 100-4020 Due to other funds

Debit Assets 700-1320 Due from other funds

Credit Revenues 700-1990

Student Body Funds

Student Body funds that are controlled by school district personnel should be budgeted and treated as

governmental funds (Special Revenue Funds). Report expenditures at the school level using an operational

unit code. Student Body Funds are raised or collected by and/or for school approved student groups in

which the school district prescribes the purposes for how money is obtained and used. Examples of

Student Body Funds would include:

textbook security deposits; locker deposit, PE attire fees, towel fee, musical instrument

fee, optional course fee, admission fee, optional field trips, voluntary health and

accident insurance plans and fund raisers

Classifying Salary Expenditures

Staff should be charged to the function code that reflects actual job duties and responsibilities rather

than job title. Example: Cost of a Deputy Superintendent who splits job duties between general

administration and Director of Special Education.

Debit Expenditures 100-2190-113-320

100-2320-113

Bond Refunding Guidelines

5000 Other Sources

5110 Bond Proceeds – Reports the face amount of the refunding bonds issued

5120 Bond Premium – Reports the premium, or discount, on refunding bonds

5130 Accrued Interest – Reports accrued interest, if any, on the refunding bond proceeds

5000 Other Uses

5110-610 Long-term Debt Service-Redemption of Principal – Reports the amount deposited

to the refunding escrow agent

5110-640 Long-term Debt Service-Dues and Fees – Reports the fees paid in connection with

the issuance of the refunding bonds

Accounting Manual Definitions

Fund Classifications

100 General Fund. Accounts for all financial resources of the districts except those required to be

accounted for in another fund.

200 Special Revenue Funds.* Account for the proceeds of specific revenue sources (other than

expendable trusts or major capital projects) that are legally restricted to expenditure for specified

purposes. Some examples of special revenue funds might include: restricted state or federal grants-in aid;

restricted tax levies. A separate fund may be used for each restricted source or one fund may be used,

supplemented by the dimension project/reporting code; e.g., bus replacement fund. Food Service and

Student Body Funds should be classified here.

*Strictly for reporting purposes within ODE’s data collections:

201 Federal Revenue Sources and Expenditures

250 State, Local, and Other Revenue Sources and Expenditures

251 Student Investment Account

252 Measure 98: High School Success

299 Child Nutrition Programs – Food Service Sources and Expenditures

Section 1111(h)(1)(C)(x) of the Elementary and Secondary Education Act of 1965 (ESEA), as amended

by the Every Student Succeeds Act (ESSA) requires the reporting of: “the per-pupil expenditures of

Federal, State, and local funds, including actual personnel expenditures and actual non-personnel

expenditures of Federal, State, and local funds, disaggregated by source of funds, for each local

educational agency and each school in the State for the preceding fiscal year.”

300 Debt Service Funds. Account for the accumulation of resources for, and the payment of, general

long-term debt, principal and interest.

400 Capital Projects Funds. Account for financial resources used to acquire or construct major capital

facilities (other than those of proprietary funds and trust funds). The most common source of revenue in

this fund would be the sale of bonds. A separate fund may be used for each capital project or one fund

may be used, supplemented by the dimension project/reporting code.

500 Enterprise Funds. Account for operations that are financed and operated in a manner similar to

private business enterprises where the stated intent is that the costs (expenses, including

depreciation and indirect costs) of providing goods or services to the students or general public on a

continuing basis are financed or recovered primarily through user charges. Enterprise funds are also used

to account for operations where the school board or state regulatory agency has decided that periodic

determination of revenues earned, expenses incurred, and net income is appropriate for capital

maintenance, public policy, management control, accountability, or other purposes. Some examples of

enterprise funds might include funds used for the bookstore operation, the athletic stadium and the

community swimming pool. Few School Districts have activities that would require the use of Enterprise

funds. Do not include Food Service or Student Body Funds here.

600 Internal Service Funds. Account for the operation of district functions that provide goods or

services to other district functions, other districts, or to other governmental units, on a cost-reimbursable

basis. Some examples of internal service funds could include those used for central warehousing and

purchasing, central data processing, and central printing and duplicating, self-insurance fund and

unemployment fund.

700 Trust and Agency Funds. Account for assets held by a district in a trustee capacity or as an agent

for individuals, private organizations, other governmental units, and/or other funds. Trust funds would

include nonexpendable trust funds, expendable trust funds, and pension trust funds. Agency funds could

include funds for a teacher or a parent-teacher organization. Do not include Food Service or Student Body

Funds here.

Revenue Sources

This dimension permits classification of revenues by source. The primary classification

differentiates local, intermediate, State and Federal revenue sources.

1000 Revenue from Local Sources.

1100 Taxes. Compulsory charges levied by a governmental unit for the purpose of financing

services performed for the common benefit.

1110 Ad Valorem Taxes Levied by District. Taxes levied by a district on the assessed

valuation of real and personal property located within the district which, within legal

limits, is the final authority in determining the amount to be raised for school purposes.

1111 Current Year’s Taxes. Property taxes levied by a district on the assessed

value of real property located within the district which, within legal limits,

is the final authority in determining the amount to be raised for school

purposes.

1112 Prior Year’s Taxes. Taxes collected for fiscal periods preceding the current

year.

1113 County Tax Sales for Back Taxes. Revenue received as a result of the sale

of property to satisfy a property tax lien.

1114 Payments in Lieu of Property Taxes. Amounts received in lieu of property

taxes, including Western Oregon Severance Tax, Eastern Oregon

Severance Tax, and tax court settlements.

1120 Local Option Ad Valorem Taxes Levied by District. Local option taxes levied by a

district on the “Tax Gap” valuation of real and personal property located within the district

which, within legal limits, is the final authority in determining the amount to be raised for

school purposes. Tax Gap refers to the difference between the Measure 5 tax limit (.005 *

Real Market Value) and the Measure 50 Tax Limit (Sum of permanent and gap bond tax

rates times Assessed Value). Local option revenue cannot exceed the gap amount so the

excluded local revenue is the lesser of:

(1) Actual Local Option Taxes Received,

(2) 2003-2005, $500 per extended ADMw; 2005-07, $750 per extended ADMw;

2007-08, $1,000 per extended ADMw, (The $1,000 limit is increased by 3% each

year starting in 2008-09) or

(3) 2003-05 10%, of the sum of the General Purpose Grant, Transportation Grant,

Facility Grant and High Cost Disability Grant; 2005-07 15% and 2007-08 and after

20%.

Record the excess in Source 1110.

1121 Current Year’s Local Option Taxes. Local option property taxes levied by

a district on the assessed value of real property located within the district

which, within legal limits, is the final authority in determining the amount

to be raised for school purposes.

1122 Prior Year’s Local Option Taxes. Local option taxes collected for fiscal

periods preceding the current year.

1123 Penalties and Interest on Local Option Taxes. Amounts collected as

penalties for the payment of local option taxes after the due date, and the

interest charged on delinquent local option taxes from the due date to

the date of actual payment.

1130 Construction Excise Tax. Amounts collected as a result of Senate Bill 1036 from

the 2007 legislative session which allows for a construction excise tax.

1190 Penalties and Interest on Taxes. Amounts collected as penalties for the payment

of taxes after the due date, and the interest charged on delinquent taxes from the due date

to the date of actual payment.

1200 Revenue From Local Governmental Units Other Than Districts. Revenue from the

appropriations of another local governmental unit. The district is not the final authority, within

legal limits, in determining the amount of money to be received, and the money is raised by taxes

or other means which are not earmarked for school purposes. Payments from publicly owned

utilities and local housing authorities are recorded here. (PUDs, rural telephone exchanges, etc.)

1300 Tuition. Money received from individuals, welfare agencies, private sources and other

districts for education provided in the district. (When tabulating total income from tuition at the

federal level, only items 1311, 1321, and 1331 are tabulated.)

1310 Regular Day School Tuition. Money received as tuition for students attending the

regular day schools in the district, including alternative programs entitled to State School

Fund support. Use 1310 when instruction and related services are tied directly to the

student.

1311 Tuition From Individuals. Money received from individuals, private

sources, or welfare agencies as tuition in regular day schools.

1312 Tuition From Other Districts Within the State. Money received for

regular day schools tuition from other districts within the state.

1313 Tuition From Other Districts Outside the State. Money received for

regular day schools tuition from districts outside the state.

1320 Adult/Continuing Education Tuition. Money received as tuition for students

attending adult/continuing education schools in the district.

1321 Tuition From Individuals. Money received from individuals for education

provided by the district.

1322 Tuition From Other Districts Within the State. Money received from

districts for education provided by the district.

1323 Tuition From Other Districts Outside the State. Money received from

districts for education provided by the district.

1324 Tuition/Contract Receipts for Community Services.

1330 Summer School Tuition. Money received as tuition for students attending

summer school.

1331 Tuition From Individuals.

1332 Tuition From Other Districts Within the State.

1333 Tuition From Other Districts Outside the State.

1400 Transportation Fees. Money received from individuals, private sources, welfare agencies,

and other districts for transporting students to and from school and school activities. (When

tabulating total income from transportation at the federal level, only items 1411 and 1421 are

tabulated.)

1410 Regular Day School Transportation. Money received for transporting students to

and from regular day schools and school activities, including alternative programs entitled

to State School Fund support.

1411 Transportation Fees From Individuals.

1412 Transportation Fees From Other Districts Within the State.

1413 Transportation Fees From Other Districts Outside the State.

1420 Summer School Transportation. Money received for transporting students to and

from summer school.

1421 Transportation Fees From Individuals.

1422 Transportation Fees From Other Districts Within the State.

1423 Transportation Fees From Other Districts Outside the State.

1500 Earnings on Investments. Money received as profit from holdings for savings.

1510 Interest on Investments. Interest received on temporary or permanent

investment in United States Treasury bills, notes, bonds; savings accounts; time certificates

of deposit; notes; mortgages; or other interest-bearing obligations. Arbitrage rebates

would be recorded in account 1510.

1530 Gain or Loss on Sale of Investments. Gains or losses realized from the sale of bonds

or stocks. Gains represent the excess of the sales proceeds over cost or other basis at date

of sale (cost less amortization of premium in the case of long-term bonds purchased at a

premium over par value or cost plus accretion of discount on long-term bonds purchased

at a discount under par value). Gains realized from sale of U.S. Treasury bills represent

interest income and should be credited to account 1510 above.

Losses represent the excess of the cost or other basis at date of sale (as described above)

over the sales proceeds.

1600 Food Service. Revenue for dispensing food to students and adults.

1610 Daily Sales—Reimbursable Programs. Revenue from students for the sale of

breakfasts, lunches, and milk which are considered reimbursable by the U.S. Department

of Agriculture. Federal reimbursements are not entered here. They should be recorded

under code 4500.

1611 Breakfast. Money received from students for the sale of reimbursable

breakfasts as part of the School Breakfast Program.

1612 Lunch. Money received from students for the sale of reimbursable

lunches as part of the National School Lunch Program.

1613 Special Milk Program. Money received for the sale of reimbursable milk

as part of the Special Milk Program.

1620 Daily Sales—Non-reimbursable Program. Money received from students or adults

for the sale of non-reimbursable breakfasts, lunches, and milk. This category would

include all sales to adults, the second Type A lunch to students and a la carte sales.

1630 Special Functions. Money received from students, adults or organizations for the

sale of food products and services considered special functions. Some examples would

include potlucks, PTA sponsored functions and athletic banquets.

1700 Extracurricular Activities. Revenue from school-sponsored activities.

1710 Admissions. Revenue from patrons of a school-sponsored activity such as a

concert or football game.

1720 Bookstore Sales. Revenue from sales by students or student-sponsored

bookstores.

1730 Student Organization Membership Dues and Fees. Revenue from students for

memberships in school clubs or organizations.

1740 Fees. Revenue from students for fees such as locker fees, towel fees, and

equipment fees. Transportation fees are recorded under account 1400.

1750 Concessions.

1760 Club Fund Raising.

1790 Other Extracurricular. Other revenue from extracurricular activities.

1800 Community Services Activities. Revenue from community services activities operated by

a district. For example, revenue received from operation of a swimming pool as a community

service would be recorded here. Multiple accounts may be established within the 1800 series to

differentiate various activities.

1900 Other Revenue From Local Sources. Other revenue from local sources which are not

classified above.

1910 Rentals. Revenue from the rental of either real or personal property owned by

the school.

1920 Contributions, Donations and General Fundraising From Private Sources. Money

received from a philanthropic foundation, private individuals, or private organizations for

which no repayment or special service to the contributor is expected. Separate accounts

may be maintained for unrestricted revenue and revenue which is restricted as to uses.

General fundraising resources not related to student activities.

1930 Rental or Lease Payments from Private Contractors. Payments received from

private contractors for the use of district-owned buses and garages in the operation of

the pupil transportation system by the private contractor.

1940 Services Provided Other Local Education Agencies. Revenue from services

provided other districts, other than for tuition and transportation services. These services

include data processing, purchasing, maintenance, cleaning, consulting and guidance.

Intermediate units will use this code in identifying revenue for services provided to

districts. Use 1940 when the ESD or district is providing general services to support

instruction.

1941 Services Provided Other Districts Within the State. Revenue from services

to districts within the state.

1942 Services Provided Other Districts Outside the State. Revenue from

services to districts outside the state.

1943 Services Provided Other Charter Schools. Revenue from services to

Charter Schools.

1950 Textbook Sales and Rentals. Revenue from the rental or sale of textbooks.

1951 Textbook Sales. Revenue from the sale of textbooks.

1960 Recovery of Prior Years’ Expenditure. Refund of expenditure made in a prior

fiscal year.

1970 Services Provided Other Funds. Services provided other funds, such as printing

or data processing. Generally, this account is only used in Internal Service Funds.

1980 Fees Charged to Grants. Indirect administrative charges assessed to grants.

1990 Miscellaneous. Revenue from local sources not provided for elsewhere. Record

Medicaid Administrative Claiming (MAC) reimbursements, E-rate and SB1149 Energy

revenues received here.

2000 Revenue From Intermediate Sources.

2100 Unrestricted Revenue. Revenue received as grants by the district which can be used for

any legal purpose desired by the district without restriction. Separate accounts may be

maintained for general source grants-in-aid which are not related to specific revenue sources of

the intermediate governmental unit, and for those assigned to specific sources of revenue as

appropriate.

2101 County School Funds. Revenue from the apportionment of the resources

of the County School Fund, except Federal Forest Fees, which is recorded

in account 4801. ORS 328.005 to 328.035.

2102 General Education Service District Funds. Revenue received by the

district that is not referred to in other specific intermediate or other

sources from an intermediate agency. (Effective 7/1/10)

2103 Excess ESD Local Revenue. Local revenue that exceeds what is

guaranteed to the ESD through the funding formula (property taxes).

Grant ESD, North Central ESD and Wallowa ESD (Effective 7/1/10)

2105 Natural Gas, Oil, and Mineral Receipts.

2110 Intermediate ‘I’ Tax. Revenue received from city and county income taxes.

2111 Current Year’s ‘I’ Taxes. Income Taxes collected by the city or county for

fiscal periods for the current year.

2112 Prior Year’s ‘I’ Taxes. Income Taxes collected by the city or county for

fiscal periods preceding the current year.

2113 Penalties and Interest on ‘I’ Taxes. Amounts collected as penalties for the

payment of income taxes after the due date, and the interest charged on

delinquent income taxes from the due date to the date of actual

payment.

2199 Other Intermediate Sources.

2200 Restricted Revenue. Revenue received as grants by the district which must be used for a

categorical or specific purpose. If such money is not completely used by the district, it must be

returned, usually, to the intermediate governmental unit. Separate accounts may be maintained

for general source grants-in-aid which are not related to specific revenue sources of the

intermediate governmental unit, and for those assigned to specific sources of revenue as

appropriate.

2800 Revenue in Lieu of Taxes. Payments made out of general revenues by an intermediate

governmental unit to the district in lieu of taxes it would have had to pay had its property or other

tax base been subject to taxation by the district on the same basis as privately owned property or

other tax base. It would include payments made for privately owned property which is not subject

to taxation on the same basis as other privately owned property due to action by the intermediate

governmental unit. ORS 530.110.

2900 Revenue for/on Behalf of the District. Payments made by an intermediate governmental

jurisdiction for the benefit of the district, or contributions of equipment or supplies. It includes

the payment to a pension fund by the intermediate governmental unit on behalf of a district

employee for services rendered to the district, and a contribution of fixed assets by an

intermediate governmental unit to the district. Separate accounts should be maintained to identify

the specific nature of the revenue item.

An offsetting charge would be made to the appropriate expenditure account as if the district had

expended the funds itself.

3000 Revenue From State Sources.

3100 Unrestricted Grants-In-Aid. Revenue recorded as grants by the district from state funds

which can be used for any legal purpose desired by the district without restriction.

3101 State School Fund—General Support. ORS 327.006 to 327.013.

3102 State School Fund—School Lunch Match. That portion of the grant from

the State School Fund which is earmarked by the district for the required

matching of Section 4 federal school lunch grant received by the district.

3103 Common School Fund. ORS 327.403.

3104 State Managed County Timber. Revenue is in addition to that distributed

through the county school fund. ORS 530.

3106 State School Fund-Accrual. That portion of the SSF paid in July and

accrued to prior year.

3199 Other Unrestricted Grants-in-aid.

3200 Restricted Grants-In-Aid. Revenue recorded as grants by the district from state funds

which must be used for a categorical or specific purpose.

3204 Driver Education.

3222 State School Fund (SSF) Transportation Equipment. ORS 327.033.

3299 Other Restricted Grants-in-aid. Use 3299 for restricted grants in aid from

the state, e.g. School Improvement Fund Grant, Facility Grant and Lottery

Bond dollars.

3800 Revenue in Lieu of Taxes. Payments made out of general revenue by a state to the district

in lieu of taxes it would have had to pay had its property or other tax base been subject to the

taxation by the district on the same basis as privately owned property or other tax base. It would

include payments made for privately owned property which is not subject to taxation on the same

basis as other privately owned property due to action by the state.

3900 Revenue for/on Behalf of the District. Payment made by a state for the benefit of the

district, or contributions of equipment or supplies. It includes the payment of a pension fund by

the state on behalf of a district employee for services rendered to the district, and a contribution

of fixed assets by a state unit to the district. Separate accounts may be maintained to identify the

specific nature of the revenue item.

An offsetting charge would be made to the appropriate expenditure account as if the district had

expended the funds itself.

4000 Revenue From Federal Sources.

4100 Unrestricted Revenue Direct From the Federal Government. Revenue direct from the

federal government as grants to the district which can be used for any legal purpose desired by the

district without restriction. Separate sub-accounts may be maintained to segregate grants for

different purposes. Example: Revenue from federal Wildlife Refuge is recorded here.

4200 Unrestricted Revenue From the Federal Government Through the State. Revenues from

the federal government through the state as grants which can be used for any legal purpose

desired by the district without restriction. Separate sub-accounts may be maintained to segregate

grants for different purposes.

4201 Transportation Fees for Foster Children

4202 Medicaid Reimbursement for Eligible K-12 Expenses (Ages Five to

Twenty-One) Revenue received from the Oregon Health Authority (OHA)

for Medicaid reimbursement for services pursuant to an Individualized

Education Program (IEP)

4300 Restricted Revenue Direct From the Federal Government. Revenues direct from the

federal government as grants to the district which must be used for a categorical or specific

purpose. If such money is not completely used by the district, it usually is returned to the

governmental unit. Separate sub-accounts may be maintained to segregate grants for different

purposes.

4500 Restricted Revenue From the Federal Government Through the State. Revenues from

the federal government through the state as grants to the district which must be used for a

categorical or specific purpose. If such money is not completely used by the district, IT USUALLY

IS RETURNED TO THE GOVERNMENTAL UNIT. Separate sub-accounts may be maintained to

segregate grants for different purposes. Examples of revenues to be recorded here are:

Elementary and Secondary Education Act Programs, Vocational Programs, Child Nutrition

Programs, Title 1, Bilingual ELL, School Nutrition, Vocational Education, IDEA 2004 (PL 108-446)

Adult Education.

4501 Medicaid Reimbursement for Eligible Early Intervention (EI) Services

(Birth to Age Three) Revenue received from the Oregon Health Authority

(OHA) for Medicaid reimbursement for EI services provided pursuant to

an Individualized Family Service Plan (IFSP).

4502 Medicaid Reimbursement for Eligible Early Childhood Special Education

(ECSE) Services (Ages Three to Five) Revenue received from the Oregon

Health Authority (OHA) for Medicaid reimbursement for ECSE services

provided pursuant to an Individualized Family Service Plan (IFSP).

4700 Grants-In-Aid From the Federal Government Through Other Intermediate Agencies.

Revenues from the federal government through an intermediate agency.

4800 Revenue in Lieu of Taxes. Payments made out of general revenues by the federal

government unit to the district in lieu of taxes it would have had to pay had its property or other

tax base been subject to taxation by the district on the same basis as privately owned property or

other tax base. It would include payment made for privately owned property which is not subject

to taxation on the same basis as other privately owned property due to action by the federal

government unit.

4801 Federal Forest Fees. ORS 294.060.

4802 Impact Aid to School Districts for Operation (PL 874).

4803 Coos Bay Wagon Road Funds.

4899 Other Revenue in Lieu of Taxes.

4900 Revenue for/on Behalf of the District. Payments made by the federal government for the

benefit of the district, or contributions of equipment or supplies. It includes a contribution of fixed

assets by a federal governmental unit to the district and foods donated by the federal government

to the district. Separate accounts should be maintained to identify the specific nature of the

revenue item.

An offsetting charge would be made to the appropriate expenditure account as if the district had

expended the funds itself.

5000 Other Sources.

5100 Long-term Debt Financing Sources. The principal portion from the sale of bonds.

5110 Bond Proceeds. Receipts of proceeds from the sale of bonds.

5120 Bond Premium.

5130 Accrued Interest. Revenue from accrued interest from the sale of bonds.

5140 Mortgage Receipts.

5150 Loan Receipts.

5160 Lease Purchase Receipts.

5200 Interfund Transfers. Revenue earned or received from another fund which will

not be repaid.

5300 Sale of or Compensation for Loss of Fixed Assets. Revenue from the sale of school

property or compensation for the sale or loss of fixed assets.

5400 Resources—Beginning Fund Balance.

Expenditure Functions

Function describes the type of activity that is carried out. The five major functional areas are: 1000—

Instruction, 2000—Support Services, 3000—Enterprise and Community Services, 4000— Facilities

Acquisition and Construction, and 5000—Other Uses. The four digit function codes are sub-functions to

provide program and service area information. Functions and sub-functions consist of activities which have

similar general operational objectives.

1000 Instruction.

Activities dealing directly with the teaching of students, or the interaction between teacher and students.

Teaching may be provided for students in a school classroom, in another location such as a home or

hospital, or in other learning situations such as those involving co-curricular activities. It may also be

provided through some other approved medium such as computer instruction applications, television,

radio, telephone, and correspondence. Included here are the activities of instructional assistants of any

type that assist in the instructional process. Expenditures for teachers’ travel within the district in

connection with teaching assignments are considered costs of instruction.

1100 Regular Programs. Instructional activities designed primarily to prepare students for

activities as citizens, family members, and workers, as contrasted with programs designed to

improve or overcome physical, mental, social and/or emotional handicaps. Regular programs

include: Elementary, K-5 or K-6; Middle or Junior High; High School; and Pre-kindergarten. Districts

should charge classroom expenditures according to the definitions as long as the allocation of

costs can be reasonably determined or estimated.

1111 Elementary, K-5 or K-6. Learning experiences concerned with knowledge,

skills, appreciation, attitudes, and behavioral characteristics considered

to be needed by all students in terms of their awareness of life within our

culture and the world of work and which normally may be achieved

during the elementary school years. (Effective 7/1/11)

1113 Elementary Extracurricular. School-sponsored activities, under the

guidance and supervision of district staff, designed to provide students

such experiences as motivation, enjoyment, and improvement of skills.

Extracurricular activities normally supplement the regular instructional

program.

1121 Middle/Junior High Programs. Learning experiences concerned with

knowledge, skills, appreciation, attitudes, and behavioral characteristics

considered to be needed by all students in terms of understanding

themselves and their relationships with society and various career

clusters, and which normally may be achieved during the middle and/or

junior high school years. Area of responsibility codes are required with

this function

1122 Middle/Junior High School Extracurricular. School-sponsored activities,

under the guidance and supervision of district staff, designed to provide

students such experiences as motivation, enjoyment, and improvement

of skills. Extracurricular activities normally supplement the regular

instructional program and include such activities as athletics, band,

chorus, choir, speech and debate. Also included are student-financed and

managed activities.

1131 High School Programs. Learning experiences concerned with knowledge,

skills, appreciation, attitudes, and behavioral characteristics considered

to be needed by all students as they achieve graduation requirements.

Area of responsibility codes are required with this function.

1132 High School Extracurricular. School-sponsored activities, under the

guidance and supervision of district staff, designed to provide students

such experiences as motivation, enjoyment, and improvement of skills.

Extracurricular activities normally supplement the regular instructional

program and include such activities as athletics, band, chorus, choir

speech and debate. Also included are student-financed and managed

activities.

1140 Pre-kindergarten Programs. Educational programs that are designed for the

education and training of children, who are enrolled in prekindergarten programs.

1200 Special Programs. Instructional activities designed primarily to deal with students having

special needs. The Special Program Service Area includes (1) talented and gifted; (2) children with

disabilities; (3) disadvantaged children; and (4) special programs for other student populations.

1210 Programs for the Talented and Gifted. Special learning experiences for students

identified as gifted or talented.

1220 Restrictive Programs for Students with Disabilities. Special learning experiences

for students with disabilities who spend ½ or more of their time in a restricted setting.

These learning experiences include but are not limited to such areas as Structured and

Intensive Learning Centers, Developmental Kindergarten, Community Transition Centers,

Life Skills with Nursing, Out of District programs, Home Instruction, Extended School Year

programs, Diagnostic Classrooms and Functional Living Skills.

1221 Learning Centers – Structured and Intensive.

1222 Developmental Kindergarten.

1223 Community Transition Centers.

1224 Life Skills with Nursing.

1225 Out of District Programs.

1226 Home Instruction.

1227 Extended School Year Programs. As defined in OAR 581-015- 2065(7).

1228 Diagnostic Classrooms.

1229 Other.

1250 Less Restrictive Programs for Students with Disabilities. Special learning

experiences for students with disabilities outside the regular classroom. These learning

experiences include but are not limited to such areas as Resource Rooms where students

with disabilities go during certain periods of the school day to receive remedial instruction

in specific subject areas or other remedial activities. All special education expenditures,

including 1250, need to be reported to the state at the school level.

1260 Treatment and Habilitation. Services designed to address a child’s

developmental deficits in sensory, motor, communication, self-help, and socialization

areas. May be used for birth to 5 (pre-K) special education. Do not use with AOR 340 Early

Intervening Services.

1270 Educationally Disadvantaged. Instructional activities designed for students who

are disadvantaged due to socioeconomic status or other circumstances that can affect

their ability to learn.

1271 Remediation. Instructional activities designed to improve achievement of

regular education students who are not meeting state performance

standards. Activities take place outside regular class time; e.g., after school,

Saturday School and Summer School. 1271 includes programs outside the

regular classroom (i.e., pull-out programs) in addition to those outside the

regular school day. Also, use function 1271 for Summer School remedial

classes specifically designed to improve student performance to meet state

standards. Also use for instructional expenses related to historically

underserved students. Area of responsibility codes are required with this

function

1272 Title IA/D. Record Title IA/D instructional activities here.

1280 Alternative Education. Learning experiences for students who are at risk of

dropping out of school; who are not succeeding in a regular classroom setting; or who

may be more successful in a non-traditional setting. Includes instructional programs

operated to meet the needs of at risk youth and students who have dropped out of school.

Also includes enrichment programs for talented and gifted students provided in an

alternative setting, such as university coursework. On-line curriculums would be coded

here.

1281 Public Alternative Programs. Alternative learning experiences provided

by other public agencies, including community colleges, other school

districts, education service districts, etc.

1282 Private Alternative Programs. Alternative learning experiences provided

by private contractors.

1283-1287 District Alternative Programs. Alternative learning experiences

provided by the school district.

1288 Charter Schools. Expenditures related to an Oregon public charter school.

1289 Other Alternative Programs. Other alternative learning experiences that

cannot be classified above.

1290 Designated Programs. Special learning experiences for other students with

special needs; such as, English Language Learner students, teen parents and migrant

education.

1291 English Language Learner (ELL) – As per ORS 336.079, instructional

activities for ELL students used in acquisition of the English language.

Pro-rate duties as applicable. (For additional guidance, see Appendix E.)

1292 Teen Parent Programs. Instructional programs designed to

accommodate the needs of teen parents.

1293 Migrant Education. Instructional programs designed to meet the needs

of migrant students.

1294 Youth Corrections Education. Instructional programs delivered to youth

in detention.

1295 English Language Learner (ELL) – Instructional Activities not related to

ORS 336.079 for ELL students used in acquisition of the English language.

Pro-rate duties as applicable. (For additional guidance, see Appendix E.)

1299 Other Programs. Do not use 1299 for children with IEPs.

1300 Adult/Continuing Education Programs. Learning experiences designed to develop

knowledge and skills to meet immediate and long-range educational objectives of adults who,

having completed or interrupted formal schooling, have accepted adult roles and responsibilities.

Programs include activities to: foster the development of fundamental tools of learning; prepare

students for a post-secondary career; prepare students for post- secondary education programs;

upgrade occupational competence; prepare students for a new or different career; develop skills

and appreciation for special interest; or enrich the aesthetic qualities of life.

1400 Summer School Programs. Instructional activities as defined under 1100 Regular

Programs carried on during the period between the end of the regular school term and the

beginning of the next regular school term; this does not include the summer term of a 12-month

school year. Use function 1271 for Summer School remedial classes designed to improve student

performance to meet state standards. Do not use this number for Extended School Year (ESY)

programs. Alternative programs that run through the summer are alternative programs, not

summer school.

1410 Elementary. Instructional activities as defined under 1111 regular programs

carried on during the period between the end of the regular school term and the

beginning of the next regular school term.

1420 Middle/Junior High. Instructional activities as defined under 1121 regular

programs carried on during the period between the end of the regular school term and

the beginning of the next regular school term.

1430 High School. Instructional activities as defined under 1131 regular programs

carried on during the period between the end of the regular school term and the

beginning of the next regular school term.

1460 Special Programs, Summer School. Instructional activities as defined under 1200

regular programs carried on during the period between the end of the regular school term

and the beginning of the next regular school term.

1490 Other Summer School Programs. Other summer school programs which cannot

be defined above.

2000 Support Services.

Support services are those services which provide administrative, technical, personal (such as guidance

and health), and logistical support to facilitate and enhance instruction. Support Services exist to sustain

and enhance instruction, and would not otherwise exist if not for instructional programs.

2100 Support Services—Students. Activities which are designed to assess and improve

the well-being of students and/or supplement the teaching process.

2110 Attendance and Social Work Services. Activities which are designed to improve

student attendance at school and which attempt to prevent or solve students’ problems

involving the home, the school and/or the community. Use for administrative services for

Home Schooling as well as Drug and Alcohol Programs.

2111 Service Area Direction. Activities associated with directing and managing

attendance and social work services.

2112 Attendance Services. Activities such as prompt identification of

attendance patterns, promotion of positive attendance attitudes,

response to attendance problems and enforcement of compulsory

attendance laws.

2113 Social Work Services. Activities such as investigating and diagnosing

student problems; casework and group work for students and parents;

interpretation of student problems for other staff members; advocacy for

change in circumstances surrounding the individual student which are

related to the student’s school problem(s).

2114 Student Accounting Services. Activities of maintaining a database of

records related to school attendance, family, and other census data. Data

is used by teachers and guidance staff.

2115 Student Safety. Activities associated with campus monitors, school

police, crossing guards, and other direct expenses associated with

services intended to enhance student, campus, and vicinity safety.

Expenses associated with the security of buildings, grounds and

equipment should continue to be accounted for in the 2546 function code.

2117 Identification and Recruitment of Migrant Children. Including the Migrant

Student Record Transfer System.

2119 Other Attendance and Social Work Services. Attendance and social work

services other than those described above.

2120 Guidance Services. Those activities of counseling students and parents; providing

consultation with other staff members on learning problems; assisting students in

personal and social development; assessing the abilities of students; assisting students as

they make their own educational and career plans and choices; providing referral

assistance; and working with other staff members in planning and conducting guidance

programs for students. Use this function for School to Work services, e.g. job placement,

referral, career counseling.

2121 Service Area Direction. Activities associated with directing and managing

guidance services.

2122 Counseling Services. Activities centered upon all student relationships for

the purpose of assisting students to understand their educational,

personal, and occupational strengths and limitations; to relate their

abilities, and aptitudes to educational and career opportunities; to utilize

their abilities in formulating realistic plans; and to achieve satisfying

personal and social development.

2123 Appraisal Services. Activities which assess student characteristics to be

used in administration, instruction, and guidance to assist the student in

assessing his/her purposes and progress in personality and career

development.

2124 Information Services. Activities for disseminating educational,

occupational, and personal social information to help acquaint students

with the curriculum and with educational and vocational opportunities

and requirements. Such information might be provided directly to

students through activities such as group or individual guidance, or it

might be provided indirectly to students, through staff members or

parents.

2126 Placement Services. Activities organized to: (1) help place students in

appropriate educational situations and/or in appropriate part-time

employment while they are in school, and in appropriate educational and

occupational situations after they leave school, and (2) help students

make the transition from one educational or occupational experience to

another. This may include admissions counseling, referral services,

assistance with records, and follow- up communications with employers.

2129 Other Guidance Services. Other guidance services which cannot be

classified above.

2130 Health Services. Physical and mental health services which are not direct

instruction. Included are activities that provide students with appropriate medical, dental

and nursing services.

2131 Service Area Direction. Activities associated with directing and managing

health services.

2132 Medical Services. Activities concerned with the physical and mental

health of students, such as health appraisal, including screening for vision,

communicable diseases, and hearing deficiencies; screening for

psychiatric services; periodic health examinations; emergency injury and

illness care; and communications with parents and medical officials.

Premiums for student health insurance are recorded here.

2133 Dental Services. Those activities associated with dental screening, dental

care, and orthodontic activities.

2134 Nurse Services. Those nursing activities which are not instruction, such as

health inspection, treatment of minor injuries and referrals for other

health services.

2139 Other Health Services. Other health services not classified above.

2140 Psychological Services. Activities concerned with administering psychological tests

and interpreting the results, gathering and interpreting information about student

behavior, working with other staff members in planning school programs to meet the

special needs of students as indicated by psychological tests, and behavioral evaluation

and planning and managing a program of psychological services, including psychological

counseling for students, staff and parents as well as student evaluations.

2141 Service Area Direction. Activities associated with directing and managing

the psychological services.

2142 Psychological Testing Services. Activities concerned with administering

psychological tests, standardized tests and inventory assessment of

ability, aptitude, achievement, interests and personality and the

interpretation of these measures for students, school personnel and

parents.

2143 Psychological Counseling Services. Activities which take place between a

school psychologist or counselor and students and their parents in which

the students are helped to receive, clarify, solve, and resolve problems of

adjustment and interpersonal relationships.

2144 Psychotherapy Services. Activities which provide a therapeutic

relationship between a qualified mental health professional and one or

more students in which the students are helped to perceive, clarify, solve,

and resolve emotional problems or disorders.

2148 Other Psychological Services. Other activities associated with

psychological services not classified above.

2150 Speech Pathology and Audiology Services. Activities which have as their purpose

the identification, assessment, and treatment of students with impairments in speech,

hearing, and language.

2151 Service Area Direction. Activities associated with directing and managing

speech pathology and audiology services.

2152 Speech Pathology Services. Activities organized for the identification of

students with speech and language disorders; diagnosis and appraisal of

specific speech and language disorders, referral for medical or other

professional attention necessary to the habilitation of speech and

language disorders; provision of required speech habilitation services;

and counseling/guidance of students with speech and language disorders,

their parents and teachers, as appropriate.

2153 Audiology Services. Activities organized for the identification of students

with hearing loss; determination of the range, nature, and degree of

hearing function; referral for medical or other professional attention as

appropriate to the habilitation of hearing; language habilitation; auditory

training, speech reading (lip-reading), and speech conservation, as

necessary; creation and administration of programs of hearing

conservation and counseling/guidance of students with hearing loss,

their parents, and teachers, as appropriate.

2159 Other Speech Pathology and Audiology Services. Other activities

associated with speech pathology and audiology services not classified

above.

2160 Other Student Treatment Services. Activities associated with providing services

such as occupational therapy, physical therapy, adaptive physical education, etc.

2190 Service Direction, Student Support Services. Activities concerned with direction

and management of student support services; e.g., special education, ELL and at risk

programs. Expenditures for the special education director for the district should be

recorded here.

2200 Support Services—Instructional Staff. Activities associated with assisting the

instructional staff with the content and process of providing learning experiences for students.

2210 Improvement of Instruction Services. Activities designed primarily for assisting

instructional staff in planning, developing, and evaluating the process of providing

learning experiences for students.

2211 Service Area Direction. Activities associated with directing and managing

the improvement of instruction services. The District’s Director of

Instruction should be charged here.

2213 Curriculum Development. Activities designed to aid teachers in

developing, preparing and utilizing curriculum materials.

2219 Other Improvement of Instruction Services. Activities for improving

instruction other than those classified above.

2220 Educational Media Services. Activities concerned with the use of all teaching and

learning resources, including hardware, software, print and non-print content materials,

on-line and other distance learning resources. Educational media are defined as any

device, content material, method, or experience used for teaching and learning purposes.

Use 2220 for computer repair if related to instruction and for learning resources that

support professional technical education.

2221 Service Area Direction. Activities concerned with directing and managing

educational media services.

2222 Library/Media Center. Activities such as selecting, acquiring, preparing,

cataloging, circulating print and non-print materials; and networking with

other entities to offer a wide array of these materials to students and staff.

Also included are services to instructional staff related to the use of the

media center materials; and instruction of students in the use of media

center materials and equipment.

2223 Multimedia Services. Activities such as selecting, preparing, maintaining

and circulating to instructional and administrative staff all multimedia

equipment and materials.

2224 Educational Television Services. Activities concerned with planning,

programming, writing, presenting and receiving educational programs or

segments of programs via closed circuit or broadcast television.

2229 Other Educational Media Services. Educational media services other than

those classified above.

2230 Assessment and Testing. Activities to measure individual student achievement.

Information obtained is generally used to monitor individual and group progress in

reaching district and state learning goals and requirements.

2240 Instructional Staff Development. Activities specifically designed for instructional

staff (including instructional assistants) to assist in preparing and utilizing special/new

curriculum materials, understanding and utilizing best teaching practices, and any other

activity designed to improve teacher performance. All staff development costs for non-

instructional staff should be charged to their function. Use this function for staff

development that is instructionally related.

2300 Support Services—General Administration. Activities concerned with establishing and

administering policy in connection with operating the district.

2310 Board of Education Services. Activities of the legally elected or appointed body

vested with responsibilities for educational planning and policy making. Use this function

to record legal services.

2320 Executive Administration Services. Activities associated with the overall general

administrative or executive responsibility for the entire district.

2321 Office of the Superintendent Services. Activities performed by the

superintendent and such assistants as deputy, associate, and assistant

superintendents, in the general direction and management of all affairs

of the district. This function area includes all personnel and materials in

the office of the chief executive officer.

Activities of the deputy, associate and/or assistant superintendents should

be recorded here.

2324 State and Federal Relations Services. Activities concerned with

developing and maintaining good relationships with state and federal

officials.

2329 Other Executive Administration Services. Other general administrative

services which cannot be recorded under the preceding areas of

responsibility.

2400 School Administration. Activities concerned with area wide supervisory responsibility.

This function could include directors of districtwide instructional programs that have

administrative responsibilities.

2410 Office of the Principal Services. Activities concerned with directing and managing

the operation of a particular school or schools. Included are the activities performed by

the principal, assistant principals, and other assistants in general supervision of all

operations of the school; evaluation of the staff members of the school; assignment of

duties to staff members; supervision and maintenance of the school records and

coordination of school instructional activities with instructional activities of the district.

Expenditures for activities related to the coordination of student activities shall also be

classified under this account. Clerical staffs for these activities are included.

2490 Other Support Services—School Administration. Other school administration

services which cannot be recorded under the preceding functions.

2500 Support Services—Business. Activities concerned with purchasing, paying, transporting,

exchanging, and maintaining goods and services for the district. Included are the fiscal, operation

and maintenance, and internal services for operating all schools.

2510 Direction of Business Support Services. Activities concerned with directing and

managing the business support services as a group.

2520 Fiscal Services. Activities concerned with the fiscal operations of the district. This

program area includes budgeting, receiving and disbursing, financial accounting, payroll,

inventory control, and internal auditing.

2521 Service Area Direction. Activities of directing and managing fiscal services

which includes the activities of the assistant superintendent, director, or

business manager in directing and managing fiscal activities including

debt management.

2522 Budgeting Services. Activities concerned with supervising budget

planning, formulation, control, and analysis.

2523 Receiving and Disbursing Funds Services. Activities concerned with

properly receiving and paying money for the district.

2524 Payroll Services. Activities concerned with paying periodic salaries and

wages to employees for services rendered; paying related payroll taxes,

assessments, and withholdings; and filing all required reports.

2525 Financial Accounting Services. Activities concerned with maintaining

records of the financial operations and transactions of the district which

include such activities as accounting and interpreting financial

transactions and account records.

2526 Internal Auditing Services. Activities concerned with verifying the account

records which include evaluating the adequacy of the internal control

system, verifying and safeguarding assets, reviewing the reliability of the

accounting and reporting systems, and ascertaining compliance with

established policies and procedures.

2527 Property Accounting Services. Activities concerned with preparing and

maintaining current inventory records of land, buildings, and movable

equipment. These records are to be used in equipment control and

facilities planning.

2528 Risk Management Services. Activities involving the systematic

identification and evaluation of exposure to loss within the district and

selection of the most appropriate method for managing those exposures.

Includes activities such as insurance program administration and loss

prevention.

2529 Other Fiscal Services. Fiscal services which cannot be classified under the

preceding functions. Including unemployment.

2540 Operation and Maintenance of Plant Services. Activities concerned with keeping

the physical plant open, comfortable, and safe for use, and keeping the grounds,

buildings, and equipment in an effective working condition and state of repair. Activities

which maintain safety in buildings, equipment and grounds are included.

2541 Service Area Direction. Activities of directing and managing the operation

and maintenance of the school plant facilities.

2542 Care and Upkeep of Buildings Services. Activities concerned with keeping

a physical plant clean and ready for daily use. Included are: Operating the

heating, lighting, and ventilating systems; and rental and lease of

buildings.

2543 Care and Upkeep of Grounds Services. Activities concerned with

maintaining land and its improvements (other than buildings) in good

condition.

2544 Maintenance. Expenditures for activities concerned with maintenance of

the total district’s physical plant, including repair and replacement of

facilities and equipment.

2546 Security Services. Activities concerned with maintaining security and

safety of school property.

2549 Other Operation and Maintenance of Plant Services. Operation and

maintenance of plant activities which cannot be classified under the

preceding functions.

2550 Student Transportation Services. Activities concerned with the transportation of

students between home and school, as provided by state law, including trips to school

activities. Area Code 320 must be used with 2550 functions to designate Special Education

costs. Charge insurance costs related to transportation to this function, including property

and liability.

2551 Service Area Direction. Activities pertaining to directing and managing

student transportation services.

2552 Vehicle Operation Services. Activities concerned with operating vehicles

for student transportation. Driving of buses or other student

transportation vehicles and liability insurance on student transportation

vehicles is included.

2558 Special Education Transportation Services. Activities concerned with

providing transportation to special education students. Driving of buses,

providing attendant services, fuel, supplies and equipment on dedicated

special education routes are included here. Insurance costs should be

allocated between regular and special education transportation. Use

Area Code 320, Special Education Maintenance of Effort. Optional—for

district use.

2559 Other Student Transportation Services. Student transportation services

which cannot be classified under the preceding functions.

2570 Internal Services. Activities concerned with buying, storing, and distributing

supplies, furniture, and equipment; and those activities concerned with duplicating and

printing for the district.

2571 Service Area Direction. Activities of directing and managing internal

services.

2572 Purchasing Services. Activities of purchasing supplies, furniture,

equipment, and materials, used in school or district operation.

2573 Warehousing and Distributing Services. The operation of the system wide

activities of receiving, storing, and distributing supplies, furniture,

equipment, materials, and mail. This program includes the pickup and

transporting of cash from school facilities to the central administrative

office, or bank, for control and/or deposit in addition to other courier

services.

2574 Printing, Publishing, and Duplicating Services. Activities of printing and

publishing administrative publications such as annual reports, school

directories, and manuals. Providing centralized services for duplicating

school materials and instruments such as school bulletins, newsletters,

and notices are also included.

2579 Other Internal Services. Other internal services which cannot be classified

under the preceding functions.

2600 Support Services—Central Activities. Other than general administration, which support

each of the other instructional and supporting services programs. These activities include planning,

research, development, evaluation, information, staff, statistical, and data processing services.

2610 Direction of Central Support Services. Activities concerned with directing and

managing the central support services as a group.

2620 Planning, Research, Development, Evaluation Services, Grant Writing and

Statistical Services. Activities, on a system wide basis, associated with conducting and

managing programs of planning, research, development, evaluation and grant writing for

a district.

2621 Service Area Direction. Activities associated with directing and managing

the planning, research, development, and evaluation service area.

2622 Development Services. Activities concerned with the evolving process of

utilizing the products of research and considered judgment for the

deliberate improvement of educational programs.

2623 Evaluation Services. Activities concerned with ascertaining or judging the

value of an action or an outcome of an action by careful appraisal of

previously specified data in light of the particular situation and the goals

and objectives previously established.

2624 Planning Services. Activities concerned with the selection or

identification of the overall, long-range goals, priorities, and objectives of

an organization or program, and the formulation of various courses of

action in terms of identification of needs and relative costs and benefits

for the purpose of deciding which courses of action are to be followed in

striving to achieve those goals, priorities, and objectives.

2625 Research Services. Activities concerned with the systematic study and

investigation of the various aspects of education undertaken to establish

facts and principles.

2626 Grant Writing. Activities concerned with seeking, writing and submitting

grants for the district.

2627 Statistical Services. Activities concerned with relating and describing

statistical information.

2628 Fundraising/Resource Development. Costs specifically incurred related to

activities for raising new resources not related to specific student

activities. Fundraising activity cost by student groups should be coded to

their co-curricular function.

2629 Other Planning, Research, Development, and Evaluation Services. Other

services of this nature not described above.

2630 Information Services. Activities concerned with writing, editing and other

preparation necessary to disseminate educational and administrative information to

pupils, staff, managers, or to the general public through direct mailing, the various news

media, or personal contact.

2631 Service Area Direction. Activities of directing and managing information

services.

2632 Internal Information Services. Activities concerned with writing, editing,

and providing administrative information to students and staff.

2633 Public Information Services. Activities concerned with writing, editing,

and other preparation necessary to disseminate educational and

administrative information to the public through various news media or

personal contact.

2634 Management Information Services. Activities concerned with writing,

editing, and other preparation necessary to disseminate to management

information about the operation of the district, and about the

community, state, and nation, in order to make logical decisions.

2639 Other Information Services. Activities concerned with information

services not classified above.

2640 Staff Services. Activities concerned with maintaining an efficient staff for the

district including such activities as recruiting and placement, staff transfers, health

services, and staff accounting. Record costs of finger printing employees under this

function.

2641 Service Area Direction. Activities of directing and managing staff services.

2642 Recruitment and Placement Services. Activities concerned with

employment and assigning personnel for the district.

2643 Staff Accounting Services. Services rendered in connection with the

systematic recording and summarizing of information relating to staff

members employed by the district.

2645 Health Services. Activities concerned with medical, dental, and nurse

services provided for district employees. Included are physical

examinations, referrals, and emergency care.

2649 Other Staff Services. Staff services which cannot be classified under the

preceding functions.

2660 Technology Services. Activities concerned with all aspects of Technology which

includes Computing and Data Processing Services such as networking and

telecommunications costs like telephones. Use for major administrative technology

expenditures as well as repair of administrative technology, central networking.

2661 Service Area Direction. Activities concerned with directing and managing

technology services.

2662 Systems Analysis Services. Activities concerned with the search for and

an evaluation of alternatives which are relevant to defined objectives,

based on judgment and, wherever possible, on quantitative methods.

Where applicable, these activities pertain to the development of

technology procedures or application to electronic technology

equipment.

2663 Programming Services. Activities concerned with the preparation of a

logical sequence of operations to be performed either manually or

electronically, in solving problems or processing data and the preparation

of coded instructions and data for such sequences.

2664 Operations Services. Activities concerned with scheduling, maintaining

and producing data. These activities include operating business machines

and data processing machines.

2669 Other Technology Services. Activities concerned with technology which

are not described above. Including telephone and T-1 lines and fractional

leased lines.

2670 Records Management Services. Activities concerned with retention and disposal

of district records.

2680 Interpretation and Translation Services.. Use for language and interpretation

services not related to the acquisition of the English language. (For additional guidance,

see Appendix E.)

2690 Other Support Services—Central. Central Services not classified above.

2700 Supplemental Retirement Program. Costs associated with a supplemental retirement

program provided to both current and prior employees by the district.

3000 Enterprise and Community Services.

Activities concerned with operations that are financed and operated in a manner similar to private

business enterprises where the stated intent is that the costs of providing goods and services to the students

or general public are financed or recovered primarily through user charges and community programs.

3100 Food Services. Activities concerned with providing food to students and staff in a school

or district. This service area includes the preparation and serving of regular and incidental meals,

lunches, or snacks in connection with school activities, and the delivery of food.

3110 Service Area Direction. Activities of directing and managing food services.

3120 Food Preparation and Dispensing Services. Activities concerned with preparing

and serving regular and incidental meals, lunches, or snacks to students and staff in a

school or district which include operating kitchen equipment, preparing food, cooking,

serving food, cleaning dishes, and storing dishes and kitchen equipment.

3130 Food Delivery Services. Activities concerned with delivering food to the school or

district.

3190 Other Food Services. Food services activities which cannot be classified under the

preceding functions.

3200 Other Enterprise Services. Activities concerned with other Enterprise Services

3300 Community Services. Activities which are not directly related to the provision of

education for pupils in a district. These include services such as community recreation programs,

civic activities, public libraries, programs of custody and care of children, and community welfare

activities provided by the district for the community as a whole or in part. Additionally, this

function is used to record college scholarship payments. Also use for non-instructional expenses

related to historically underserved students.

3310 Direction of Community Services Activities. Activities concerned with directing

and managing community services activities.

3320 Community Recreation Services. Activities concerned with providing recreation

for the community as a whole, or for some segment of the community. Included are such

staff activities as organizing and supervising playgrounds, swimming pools, and other

recreation programs for the community.

3330 Civic Services. Activities concerned with providing services to civic affairs or

organizations. This program area includes services to parent-teacher association

meetings, public forums, lectures, and civil defense planning.

3340 Public Library Services. Activities pertaining to the operating of public libraries by

a district, or the provision of library services to the general public through the school library.

Included are such activities as budgeting and planning the library’s collection in relation

to the community, and informing the community of public library resources and services.

3360 Welfare Activities Services. Activities pertaining to the provision of personal

needs of individuals who have been designated as needy by an appropriate governmental

entity. These needs include stipends for school attendance, salaries paid to pupils for

work performed whether for the district or for an outside concern, and for clothing, food

or other personal needs.

3370 Nonpublic School Students Services. Services to students attending a school

established by an agency other than the state, subdivision of the state, or the federal

government, which usually is supported primarily by other than public funds. The services

consist of such activities as those involved in providing instructional services, attendance

and social work services, health services, and transportation services for nonpublic school

students. Statutory requirements in individual states may require construction of sub-

functions for these and other functions and sub- functions related to expenditures for

nonpublic school students. Special accounting provisions may be required for transfer of

these expenditures from corresponding functional accounts for services provided to

public school students.

3390 Other Community Services. Services provided the community which cannot be

classified above. College scholarship expenditures are recorded here.

3500 Custody and Care of Children Services. Activities pertaining to the provisions of

programs for the custodial care of children in residential day schools, or childcare centers which are

not part of, or directly related to, the instructional program, and where the attendance of the

children is not included in the attendance figures for the district.

4000 Facilities Acquisition and Construction.

Activities concerned with the acquisition of land and buildings; major remodeling and construction of

buildings and major additions to buildings; initial installation or extension of service systems and other

built-in equipment; and major improvements to sites. Major capital expenditures, which are defined as

capital expenditures that are eligible for general obligation bonding, are recorded here. Maintenance and

upkeep of buildings are charged to 2540.

4110 Service Area Direction. Activities pertaining to directing and managing facilities

acquisition and construction services.

4120 Site Acquisition and Development Services. Activities pertaining to the initial

acquisition of sites and improvements thereon.

4150 Building Acquisition, Construction, and Improvement Services. Activities

concerned with building acquisition through purchase or construction and building

improvements. Initial installation or extension of service systems, other built-in

equipment and building additions are included.

4180 Other Capital Items. Activities concerned with major capital expenditures that

are eligible for general obligation bonding like textbooks and technology.

4190 Other Facilities Construction Services. Facilities construction activities which

cannot be classified above.

5000 Other Uses.

Activities included in this category are servicing the debt of a district, conduit-type transfers from one

fund to another fund and apportionment of funds by ESD.

Note: Debt Service (5100) must be appropriated separately and Transfers of Funds (5200) must

be appropriated separately to comply with local budget law under ORS 294.456.

5100 Debt Service. The servicing of the debt of a district. Categories of debt service are listed

under objects.

5110 Long-Term Debt Service. Expenditures for debt retirement exceeding 12 months.

5120 Short-Term Debt Retirement. Expenditures for debt retirement paid in full within

the fiscal year.

5200 Transfers of Funds. These are transactions which withdraw money from one fund and

place it in another without recourse. Unless state law prohibits, revenues should be allocated

between funds when received and recorded in the funds to which they belong, rather than placing

them in the General Fund and later transferring them. (These are not counted in local district

totals of expenditures.) Interfund loans are not recorded here, but are handled through the

balance sheet accounts.

5300 Apportionment of Funds by ESD or LEA. Apportionment of equalization funds and

distribution of other funds by the educational service districts (flow-through dollars from ESDs to

districts or other ESDs) or from an LEA acting as the fiscal agent for a grant distributed to other

districts or other agencies.

5400 PERS UAL Bond Lump Sum Payment to PERS. The one time lump sum payment made

to PERS following the issuance of a PERS UAL Bond.

6000 Contingencies (for budget only).

Expenditures which cannot be foreseen and planned in the budget process because of an occurrence of

an unusual or extraordinary event. Use with Object 810 only.

6110 Operating Contingency. Budgeted amount to be transferred by school board

resolution to the proper expenditure code.

7000 Unappropriated Ending Fund Balance.

An estimate of funds needed to maintain operations of the school district from July 1 of the ensuing fiscal

year and the time when sufficient new revenues become available to meet cash flow needs of the fund.

No expenditure shall be made from the unappropriated ending fund balance in the year in which it is

budgeted. Use with Object 820 only.

Expenditure Objects

Object means the service or commodity obtained as the result of a specific expenditure. Seven major

Object categories are identified and described in this handbook: (1) Salaries, (2) Employee Benefits, (3)

Purchased Services, (4) Supplies and Materials, (5) Capital Outlay, (6) Other Objects, and (7) Transfers.

These broad categories are subdivided to obtain more detailed information about objects of expenditures.

A three-digit code number, if used makes it possible to search out detailed information. Following are

definitions of the major categories and subcategories. Where the term "district" is used it means school

district or educational service district.

100 Salaries.

Amounts paid to employees of the district who are considered to be in positions of a permanent nature

or hired temporarily, including personnel substituting for those in permanent positions. This includes

gross salary for personal services rendered while ON THE PAYROLL of the district.

110 Regular Salaries. Full-time, part-time, and prorated portions of the costs for work

performed by employees of the district who are considered to be in positions of a permanent

nature.

111 Licensed Salaries. Costs for work performed by regular licensed employees of the

district. Include licensed coordinators and licensed employees in bargaining unit

under this object.

112 Classified Salaries. Costs for work performed by regular classified employees of

the district. Confidential staff may be coded to this object or 114 below or you

may use a district defined code to track separately.

113 Administrators. Costs for work performed by regular administrative employees

who manage, direct, or administer programs of the district. Administrators need

not be licensed to be charged to 113.

114 Managerial—Classified. Costs for work performed by employees who supervise

or manage programs of the district. Supervisors of non-licensed staff, e.g. food

services, transportation are recorded under this object. Supervisors are usually

not regular classified employees

115 Sabbatical. Amounts paid by the district to employees on sabbatical leave.

116 Supplemental Retirement Stipends. Costs for retired employees of the district

who receive supplementary retirement payments from the district.

117 Unused Leave. Unused leave payments when an employee retires or terminates

employment are allowable in the year of payment provided they are allocated as

a general administrative expense to all activities of the governmental unit or

component. The unused leave is specific to the executive level staff (Supt,

Deputies or direct reports to the Deputy Superintendent) on an organization

chart.

120 Nonpermanent Salaries. Full-time, part-time and prorated portions of the costs for work

performed by employees of the district who are hired on a temporary or substitute basis to

perform work in positions in either temporary or permanent nature.

121 Substitutes—Licensed. Costs for work performed by substitute licensed

employees of the district.

122 Substitute—Classified. Costs for the work performed by substitute classified

employees of the district.

123 Temporary—Licensed. Salaries of temporary employees—full-time, part- time,

and prorated portions of the costs for work performed by employees of the

district who are hired on a temporary basis.

124 Temporary—Classified. Costs for work performed by temporary classified

employees.

130 Additional Salary. Money paid to employees of the district in positions of either a

temporary or permanent nature for work performed in addition to the normal work period for

which the employee is compensated under Regular Salaries and Temporary Salaries above. The

terms of such payment for overtime is a matter of state and local regulation or negotiated

agreement. Includes additional pay for classified employee overtime and for activities such as

coaching, supervision of extracurricular activities, extended contracts, etc. Object 130 should be

used for all overtime.

140-190 Additional Salary. District defined. Must be reported to State as object 130.

200 Associated Payroll Costs.

Amounts paid by the district on behalf of employees; these amounts are not included in the gross salary,

but are over and above. Such payments are fringe benefit payments, and, while not paid directly to

employees, nevertheless are part of the cost of salaries and benefits. Examples are: (1) group health or life

insurance, (2) contributions to public employees’ retirement system, (3) social security, (4) workers’

compensation, and (5) unemployment insurance.

210 Public Employees Retirement System. District payments to the Public

Employees Retirement System.

211 Employer Contribution. Employer’s contribution to the Public Employees

Retirement System, Tier I and Tier II.

212 Employee Contribution, Pick-Up. Employee portion, paid by employer to the

Public Employees Retirement System.

213 PERS UAL Contribution. Employers PERS debt service costs related to the PERS

Unfunded Actuarial Liability.

214 PERS UAL Contribution. Employers PERS debt service costs related to the PERS

Unfunded Actuarial Liability.

215 PERS UAL Contribution. Employers PERS debt service costs related to the PERS

Unfunded Actuarial Liability.

216 Employer Contribution. Employer’s contribution to the Oregon Public

Services Retirement Plan, OPSRP or Tier III.

220 Social Security Administration. Employer’s contribution to the Social

Security/ Medicare (FICA) for employee retirement.

230 Other Required Payroll Costs.

231 Workers’ Compensation. Amounts paid by the districts to provide workers’

compensation insurance for its employees.

232 Unemployment Compensation. Amounts paid by the district to provide

unemployment compensation for its employees.

240 Contractual Employee Benefits. Amounts paid by the district which are a result of a

negotiated agreement between the Board of Directors and the employee groups. Examples of

expenditures would be health insurance, long-term disability and tuition reimbursement. The

district may assign account codes 241 through 249 for these expenditures. Include here

payments/penalties in lieu of health insurance and penalties paid due to the choice not to offer

benefits to employees (Affordable Care Act).

270 Post Retirement Health Benefits (PRHB). Post-retirement Health Benefits are costs of

health insurance or health services not included in a pension plan for retirees and their spouses,

dependents and survivors.

300 Purchased Services.

Services which, by their nature, can be performed only by persons or firms with specialized skills and

knowledge. While a product may or may not result from the transaction, the primary reason for the

purchase is the service provided. Included are the services of architects, engineers, auditors, dentists,

medical doctors, lawyers, consultants, teachers, accountants, etc.

310 Instructional, Professional and Technical Services. Services which by their nature can be

performed only by persons with specialized skills and knowledge. Included are the services of

medical doctors, lawyers, consultants, teachers for the instructional area.

311 Instruction Services. Non-payroll services performed by qualified persons directly

engaged in providing learning experiences for pupils. Included are the services of

teachers, teaching assistants, and teacher aides and “performance contract”

activities. Use this code if the resident district is providing instructional services

to the student and the resident district is paying for the student to receive

additional services i.e. expanded options. On-line curriculums would be coded

here.

312 Instructional Programs Improvement Services. Services performed by persons

qualified to assist teachers and supervisors in enhancing the quality of the

teaching process. This category includes curriculum consultants, in-service

training specialists, etc., not on the payroll.

313 Student Services. Non-payroll services of qualified personnel to assist students

and their parents in solving mental and physical problems to supplement the

teaching process.

316 Data Processing Services.

317 Statistical Services.

318 Professional and Improvement Costs for Non-Instructional Staff. (Workshops,

etc.) Use object code 342 for non-instructional staff travel, conferences, etc.

319 Other Instructional, Professional and Technical Services. Services which are

professional and technical in nature which have not been classified above.

Including sign language interpreters, language interpreters and translation

services for student instruction. (See Appendix E for additional guidance.)

320 Property Services. Services purchased to operate, repair, maintain, insure, and rent

property owned and/or used by the district. These services are performed by persons other than

district employees.

321 Cleaning Services. Services purchased to clean buildings or equipment other than

those provided by district employees.

322 Repairs and Maintenance Services. Expenditures for repairs and maintenance

services not provided directly by district personnel. This includes contracts and

agreements covering the upkeep of grounds, buildings, and equipment.

Technical repair services, e.g., copier repair, should be charged here.

324 Rentals. Expenditures for leasing or renting costs incurred by the district.

This includes bus and other vehicle rental when operated by district

personnel and lease of data processing equipment. Costs for single

agreements covering equipment as well as operators are not included here,

but are considered elsewhere under Purchased Services (see Transportation,

Printing and Binding, Public Utility Services, Servicing and Maintenance Services).

325 Electricity. Expenditures for electrical energy.

326 Fuel. Expenditures for fuel used for heating and/or cooling.

327 Water and Sewage. Expenditures for water and sewage services.

328 Garbage. Expenditures for garbage service.

329 Other Property Services. Property Services purchased which are not

classified above.

330 Student Transportation Services. Expenditures to persons (not on the district payroll) or

agencies for the purpose of transporting children. These include those expenditures to individuals

who transport themselves or to parents who transport their own children. Expenditures for the

rental of buses which are operated by personnel on the district payroll are not recorded here; they

are recorded under Purchased Services— Rentals.

331 State School Fund Reimbursable Student Transportation. Contract

payments for transporting students from home to school and return, and

instructional field trips.

332 State School Fund Non-reimbursable Student Transportation. Contract payments

for transporting students on student body trips, interscholastic athletic events,

out of state field trips, or non-instructional field trips (skating parties).

333 Board and Room in Lieu of Transportation. Payments as board and room made

to parents or guardians to maintain children near school. Expenditures for rental

of shelters for children and for maintenance of district owned shelters.

334 Transportation Portion of Tuition Payments. Conduit-type payments for

transportation expense.

340 Travel. Costs for transportation for all district personnel (including students), conference

registration, meals, hotel, and other expenses associated with traveling on business for the

district. Payments for per diem in lieu of meals and lodging and for car allowance also are charged

here. Travel costs may be identified through use of the following sub-accounts at the option of

the district. Use for travel costs incurred by district employees and students. Travel costs incurred

by contracted professionals should be included in the cost of the service. Vehicles rented in lieu

of reimbursing mileage to an employee should be charged to 340.

341 Travel, Local in District. Expenditures for district personnel between facilities and

within the boundaries of the school district.

342 Travel, Out of District. Travel expenditures for district personnel to points outside

the boundaries of the school district. Non-instructional staff travel is included

here.

343 Travel, Student, Out of District. Travel expenditures for students to points outside

the boundaries of the school district.

349 Other Travel. Travel expenditures which cannot be classified above.

350 Communication. Services provided by persons or businesses to assist in transmitting and

receiving data or information. This category includes telephone and international data

communications, postage machine rental and postage, fax and advertising. Expenditures for

these services may be identified through the use of sub-accounts at the option of the district.

351 Telephone. Expenditures for telephone services, faxes, pagers and toll

charges.

353 Postage. Expenditures for postage stamps and postage machine rentals.

354 Advertising. Expenditures for printed announcements and legal notices in

professional periodicals and newspapers or announcements broadcast by radio

and television networks. These expenditures include advertising for such

purposes as personnel recruitment, bond sales, used equipment sales, and other

objects. Costs for professional fees for advertising or public relation services are

not recorded here but are charged to Professional Services.

355 Printing and Binding. Expenditures for job printing and binding usually according

to specifications of the district. This includes the design and printing of forms and

posters as well as printing and binding of district publications. Preprinted

standard forms are not charged here, but are recorded under Supplies and

Materials.

359 Other Communication Services. Including T-1 lines.

360 Charter School Payments. Expenditures to reimburse Charter Schools for services

rendered to students.

370 Tuition. Expenditures to reimburse other educational agencies for services rendered to

students. Use object 37X, if your district is paying another entity to provide the student’s entire

instructional program.

371 Tuition Payments to Other Districts Within the State. Conduit-type payments to

districts, generally for tuition in the state for services rendered to students

residing in the paying district. Where a governmental unit collects money from a

non-operating district for the education of students from the non-operating

district and pays it to an operating district, the non-operating district records such

payments here.

372 Tuition Payments to Other Districts Outside the State. Conduit-type payments

to districts, generally for tuition outside the state for services rendered to

students residing in the paying district. Where a governmental unit collects

money from a non-operating district for the education of student from the non-

operating district and pays it to an operating district the non-operating district

records such payments here.

373 Tuition Payments to Private Schools. Conduit-type payments to private schools,

generally for tuition for students residing in the paying district.

374 Other Tuition. Tuition payments which cannot be classified above. Record post-

graduation scholarship payments here.

380 Non-instructional Professional and Technical Services. Services which by their nature

can be performed only by persons with specialized skills and knowledge. Included are the services

of architects, engineers, auditors, dentists, medical doctors, lawyers, consultants, accountants,

etc.

381 Audit Services. Expenditures to an audit firm for completion of the annual audit

of the district’s financial records. Also included would be costs for other reports

and consultations provided by the audit firm. Use with Function 2310.

382 Legal Services. Expenditures for consultations with the district’s attorney and

associated legal costs. Use with Function 2310. May be used with function 4150

when associated with a capital project.

383 Architect/Engineer Services. Expenditures for professional services of licensed

professionals for consultation, regarding the district’s facilities.

384 Negotiation Services. Expenditures for services performed in negotiating or

conferring with any labor group.

385 Management Services. Services performed by persons qualified to assist

management either in the broad policy area or in the general operation of the

district. This category includes consultants, individually or as a team, to assist the

chief executive in conference or through systematic studies.

386 Data Processing Services. Services performed by persons, organizations, or other

agencies qualified to process data. This category includes those data processing

services purchased from another agency or concern or specialists who are

contracted to perform a specific task on a short time basis.

387 Statistical Services. Non-payroll services performed by persons or an organization

qualified to assist in handling statistics. This category includes special services for

analysis, tabulations, or similar work.

388 Election Services. Expenditures for the costs incurred by the county clerk in

conducting elections for the school district. Use with Function 2310.

389 Other Non-instructional Professional and Technical Services. Other professional

services not classified above. Including sign language interpretation, language

interpretation and translation services when working with parents. (See

Appendix E for additional guidance.)

390 Other General Professional and Technological Services.

400 Supplies and Materials.

Amounts paid for material items of an expendable nature that are consumed, worn out, or deteriorated

by use; or items that lose their identity through fabrication or incorporation into different or more complex

units or substances.

410 Consumable Supplies and Materials. Expenditures for ALL supplies for the operation of a

district, including freight and cartage. If such supplies are handled for resale to students, only the

net cost of supplies is recorded here.

NOTE: Accounts 411 through 419 are available for further identifying supplies for management

purposes at the option of the district.

420 Textbooks. Expenditures for prescribed books which are purchased for students or

groups of students, and resold or furnished free to them. This category includes the costs of

workbooks, textbook binding or repairs, as well as the net amount of textbooks which are

purchased to be resold or rented. E-textbooks are considered curriculum and would be coded

here.

430 Library Books. Expenditures for regular or incidental purchases of library books available

for general use by students, including any reference books, even though such reference books

may be used solely in the classroom. Also recorded here are costs of binding or other repairs to

school library books and e-library books.

440 Periodicals. Expenditures for periodicals and newspapers. A periodical is any publication

appearing at regular intervals of less than a year and continuing for an indefinite period.

450 Food. Expenditures for food purchases related to 3100 Food Service only. Other food

purchases should remain in object code 410.

460 Non-consumable Items. Expenditures for equipment with a current value of less than

$5,000 or for items which are “equipment-like,” but which fail one or more of the tests for

classification as Object 541 or 542 (see object 540 definition). Examples might include hand held

calculators, stacking chairs, etc. This object category could be used when a district desired to

treat these items as equipment for budgeting, physical control, etc., without either violating the

state dollar threshold for capital equipment or combining these items with consumable supplies

(Object 410–419).

470 Computer Software. Expenditures for published computer software. Include licensure

and usage fees for software here. The Cloud is considered software and would be coded here.

480 Computer Hardware. Expenditures for non-capital computer hardware, generally of

value not meeting the capital expenditure criterion. An iPad or e-reader needed to access e-

textbooks is considered hardware and would be coded here.

500 Capital Outlay.

Expenditures for the acquisition of fixed assets or additions to fixed assets. They are expenditures for land

or existing buildings; improvements of grounds; construction of buildings; additions to buildings;

remodeling of buildings; initial equipment; additional equipment; and replacement of equipment.

510 Land Acquisition. Expenditures for the purchase of land.

520 Buildings Acquisition. Expenditures for acquiring buildings and additions, either existing

or to be constructed, except for bus garages (See Object 562). Included are expenditures for

installment or lease payment (except interest) which have a terminal date and result in the

acquisition of buildings, except payments to public school—housing authorities or similar

agencies. Expenditures for major permanent structural alterations and the initial or additional

installation of heating and ventilating systems, electrical systems, plumbing systems, fire

protection systems, and other service systems in existing buildings are included also.

530 Improvements Other Than Buildings. Expenditures for the initial and additional

improvement of sites and adjacent ways after acquisition by the district. Improvement consists

of such work as grading, landscaping, seeding, and planting of shrubs and trees; constructing new

sidewalks, roadways, retaining walls, sewers and storm drains; installing hydrants; initial surfacing

and soil treatment of athletic fields and tennis courts; furnishing and installing for the first time,

fixed playground apparatus, flagpoles, gateways, fences, and underground storage tanks which

are not parts of building service systems; and demolition work. Special assessments against the

district for capital improvement such as streets, curbs, and drains are also recorded here.

540 Depreciable Equipment. Expenditures for the initial, additional, and replacement items

of equipment, except for buses and capital bus improvements (See object 564). An equipment

item is a movable or fixed unit of furniture or furnishings, an instrument, a machine, an apparatus,

or a set of articles that meets all of the following conditions:

1. It has an anticipated useful life of more than 1 year.

2. It is of significant value, measured as original cost or estimated market value.

The current value threshold is $5000. The federal value criterion currently is

also $5,000.

3. It retains its original shape and appearance with use.

4. It is nonexpendable; that is, if the article is damaged or some of its parts are

lost or worn out, it is usually more feasible to repair it than to replace it with

an entirely new unit.

5. It does not lose its identity through incorporation into a different or

more complex unit or substance.

Additional information related to GASB 34 requirements can be found in the Special

Instructions for Recording Expenditures under the section entitled GASB Statement 34

Reporting Requirements at the beginning of Chapter 3

541 Initial and Additional Equipment Purchase. Expenditures for the initial and

additional equipment such as machinery, furniture and fixtures, and vehicles.

542 Replacement Equipment Purchases. Expenditures for replacement of

equipment which has been disposed.

550 Depreciable Technology. Expenditures for computer hardware, related

equipment, and other capital outlay for technology. See object 540 for definition of

capital outlay.

560 Depreciable Transportation. Expenditures for bus garages, buses and capital bus

improvements for student transportation. See object 540 for definition of capital outlay.

562 Bus Garage Purchases. The purchase of a garage or garage improvements used

for student transportation. All purchases using this code must also be listed on

the Bus and Garage Depreciation Schedule and Mileage Report. All others should

be reported under 520 Building Acquisitions.

564 Bus and Capital Bus Improvements. The purchase of buses and capital bus

improvements e.g. handicap lift. All purchases using this code must also be listed

on the Bus and Garage Depreciation Schedule and Mileage Report. All others

should be reported under 540 Equipment.

590 Other Capital Outlay. Expenditures for all other Capital Outlay not classified

above.

600 Other Objects.

Amounts paid for goods and services not otherwise classified above. This includes expenditures for the

retirement of debt, the payment of interest on debt, payments to a housing authority, and the payment

of dues and fees.

610 Redemption of Principal. Expenditures which are from current funds to retire bonds, and

principal portion of contractual payments for capital acquisitions.

620 Interest. Expenditures from current funds for interest on serial bonds, short-term loans

and interest included in contractual payments for capital acquisitions. Sub-accounts may be used

to record separately these different kinds of interest.

621 Regular Interest. Expenditures for all interest, excluding bus garage, bus and

capital bus improvement interest.

622 Bus Garage, Bus and Capital Bus Improvement Interest. Only record

expenditures for bus garage, bus and capital bus improvement interest here.

630 Unrecoverable Bad Debt Write-Off.

640 Dues and Fees. Expenditures or assessments for membership in professional

or other organizations or associations or payments to a paying agent for services

rendered.

650 Insurance and Judgments. Insurance to protect school board members and their

employees against loss due to accident or neglect.

651 Liability Insurance. Expenditures for insurance coverage of the district, or its

officers, against losses resulting from judgments awarded against the district.

Also recorded here are any expenditures (not judgments) made in lieu of liability

insurance. Payments of judgments awarded against the district and not covered

by insurance are recorded under 655, Judgments Against the District.

652 Fidelity Bond Premiums. Expenditures for bonds guaranteeing the district against

losses resulting from the actions of the treasurer, employees, or other persons of

the district. Also recorded here are any expenditures (not judgments) made in

lieu of liability bonds.

653 Property Insurance Premiums. Expenditures for insurance on any type property

owned or leased by the district. Charge to function 2540 for buildings and 2550

for school buses.

654 Student Insurance Premiums. Expenditures for premiums on student accident

insurance.

655 Judgments and Settlements Against the District. Expenditures from current

funds for all judgments against the district that are not covered by liability

insurance, but are of a type that might have been covered by insurance.

659 Other Insurance and Judgments. Payments for insurance and judgments not

classified elsewhere.

660 Depreciation (Used for Enterprise and Internal Service Funds Only). The portion of the

cost of a fixed asset, except for land, which is charged as an expense during a particular period. In

accounting for depreciation, the cost of a fixed asset, less any salvage value, is allocated over the

estimated service life of the asset, and each accounting period is charged with a portion of such

cost. Through this process, the cost of the asset is ultimately charged off as an expense. Land is

not depreciated.

662 Buildings. Depreciation expense for buildings and additions.

663 Improvements Other Than Buildings. Depreciation expense for improvements to

sites other than the building facility. Examples include roadways and sidewalks.

664 Equipment. Depreciation expense for equipment including buses, automobiles

and other vehicles. These items are defined as movable or fixed units of furniture

or furnishings, an instrument, a machine, an apparatus, or a set of articles which

meet the capital asset criteria.

665 Technology. Depreciation expense for technology, including work stations,

servers and networking equipment

669 Other Capital Assets. Depreciation expense for capital assets not

denoted above.

670 Taxes, Licenses and Assessments. This includes taxes, licenses and

assessments paid to a government body and penalties assessed for lack of health

benefits for eligible employees (Affordable Care Act).

680 PERS UAL Lump Sum Payment to PERS. The one time lump sum payment made to PERS

following the issuance of a PERS UAL Bond. (Use only with 5400 function.)

690 Grant Indirect Charges. Charges made to a grant to recover charges made to

administration. See page 27 Grant Administrative Charges for more detail.

700 Transfers.

This object category does not represent a purchase; rather it is used as an accounting entity to show that

funds have been handled without having goods and services rendered in return. Included here are

transactions for interchanging money from one fund to the other and for transmitting flow-through funds

to the recipient (person or agency).

710 Fund Modifications. This category represents transactions of conveying money from one

fund to another. Generally, this takes the form of payments from the General Fund to some other

fund and should be so recorded. They are not recorded as expenditures. (Use only with 5200

function.) See page 28 Transfers to Other Funds for more detail.

720 Transits. This category represents transactions which are transit or flow-through means

to convey money to the recipient (person or agency). This includes transactions which place

grants-in-aid, special grants (stipends), and tuition and transportation for other district use, in the

hands of the user. (Use only with 5300 function.)

790 Other Transfers. This category is to be used for those transfer transactions which

cannot be identified in the above classifications.

800 Other Uses of Funds.

810 Planned Reserve. Amounts set aside for operating contingencies for expenditures

which cannot be foreseen and planned in the budget because of the occurrence of some unusual

or extraordinary event. (Use only with 6110 function.)

820 Reserved for Next Year. (Use only with 7000 function.)

Expenditure Areas of Responsibility

Area of Responsibility codes designate the curriculum areas, provide further program information, or

allow additional tracking for management information purposes.

Bold type does not indicate required roll up codes; Bold type does identify minimum requirements for

AOR codes.

Note: An “x” indicates a rollup of accounts to the digits indicated. For example a 12XX Function

represents all Functions that have a “12” prefix.

Function

Description

To designate:

1121

Middle School/Jr. High Instruction

Curriculum Area

1131

High School Instruction

Curriculum Area

12xx

Special Education

Maintenance of Effort, if applicable

1271

Remediation

Curriculum Area

21xx

Special Education Support

Maintenance of Effort, if applicable

2190

Special Education Direction

Maintenance of Effort, if applicable

2240

Staff Development

Targeted Training, if applicable

2550

Special Education Transportation

Maintenance of Effort, if applicable

If salaries are charged to an area code, payroll costs and fringe benefits must be charged there also as

benefits follow salaries. Area codes should be attached to functions as required in all funds.

010 Home Instruction. School district sponsored programs in which a district employee goes

to the home to instruct a parent in how to teach a specific lesson to a child, or teaches

the child directly.

020 Tutoring. Direct instruction of a learner on a specific lesson or skill in a home or in a school

setting.

050 General Classroom Instruction. Instructional activities that cannot be classified under a

specific curriculum area.

060 Core Areas/Block Classes. Instructional activities combining two or more core curriculum

areas in a block class, including English, Social Science, Math, Science.

090 Other Pre-kindergarten Programs. Any pre-kindergarten programs not appropriate for

inclusion in above categories.

100 English. Courses and activities designed to enable students to receive and send

communication by developing their ability to listen, speak, read, and write English.

110 Social Studies. Courses and activities dealing with social relationships which draw their

substance from the disciplines of anthropology, economics, geography, government,

history, sociology, and psychology.

120 Science. Experiences which provide students the opportunity to develop concept

understandings and process skills as they relate to scientific literacy.

130 The Arts. Courses and activities designed to develop keener aesthetic awareness and

increase sensitivity, skills and knowledge in various two- and three- dimensional art

media. Performing Arts. Extracurricular activities designed to provide opportunities for

students to participate in producing or performing capacities in dramatics, music,

television, or radio. Music. Courses designed to develop aesthetic sensitivity, skills and

knowledge in relation to listening, performing, and creating experiences in vocal or

instrumental music.

170 Driver Education. Learning experiences concerned with helping students participate

safely, efficiently and effectively in operating an automobile in traffic.

180 Mathematics. Those courses, units of instruction, and activities designed to develop the

skills and interests of students in computation and problem solving.

190 Health Education. Experiences which provide students the opportunity to develop

decision making skills and formulate a value system, as they relate to healthful living.

200 Physical Education. Courses, special adapted programs, and intraschool activities

designed to enable each student to build and maintain physical powers, skills and

understanding necessary for optimum development.

210 Second Language. Courses and activities designed to enable students to receive and send

communication in a language other than English by developing their ability to listen,

speak, read, and write in the target language.

230 Athletics. Extracurricular activities designed to provide competitive contests for selected

groups or individuals who are trained and coached to play games with similar teams or

individuals from other schools.

250 Other Extracurricular Student Activities. Extracurricular activities not already defined

which are generally of a voluntary nature and which are designed to assist the student in

developing additional skills and/or refined attitudinal points of view regarding logical

extensions of the school curriculum.

260 Technology. Courses designed to develop skills in the use of technology.

270 Career Related Learning. Courses, units of instruction and special instructional activities

designed to assist students in exploring key occupational career areas, in assessing their

occupational interests and aptitudes and in developing tentative career plans and choices.

Grades 7 through 12.

280 English Language Learner (ELL) Programs. To be used with Functions other than 1291 and

1295 to identify supplemental costs for English Language Learner (ELL) programs.

290 Other Programs.

310 Non-Instructional Staff Development. Use of this Area is optional. Districts may wish

to track staff development and training costs charged to Functions other than 2240.

320 Special Education. All special education costs that are subject to federal maintenance of

effort requirements. All special education expenditures, including 1250, need to be

reported to the state at the district level. Attach this area code to functions (e.g. 1200’s,

2100’s, 2200’s 2550) where services are provided to students on IEP' s. In the 1200

functions, this includes functions 1220-1260. It does not include 1210 TAG, 1270

Educationally Disadvantaged, 1280 Alternative Education, or 1290's Designated Programs

unless you are also providing special education services within those programs. Special

education staff development (function 2240) is included in this Area code.

340 Coordinating Early Intervening Services (CEIS). Services which may include interagency

financing structures, for students in kindergarten through grade 12 (with particular

emphasis on students in K- 3) who have NOT been identified as needing special education

or related services but who need additional academic and behavioral services or support

to succeed in a general education environment. IDEA 2004 Sec. 613(4)(f) This AOR code

is to be used only for CEIS. Do not code Section 504 expenses here.

350 School Improvement Fund Grant. Expenditures in either the General Fund (100) or a

Special Revenue Fund (200) to record monies spent to fulfill SIF grant obligations.

Professional, Technical Strands. Students working on Professional, technical strands as the context

for their academic program. Some areas may be in more than one strand. For example, marketing

could be offered under Arts and Communication or under Business and Management. Transition:

510 Arts and Communication. Examples: Architecture, film, radio, fine arts, creative writing,

journalism, languages, television, advertising, public relations, graphic design.

520 Business and Management. Examples: Marketing sales, entrepreneurship, finance,

hospitality/tourism, computer/information systems, accounting, personnel, and

economics.

530 Health Services. Examples: Nursing, dental hygiene, dental assistant, medical assistant,

radiology technician, ophthalmic technician, nurse’s aide, dentistry, medicine.

540 Human Resources. Examples: Education, government, religion, social services, law, law

enforcement, legal services, child and family services.

550 Industrial and Engineering Systems. Examples: Engineering, manufacturing, construction,

related technologies, precision production.

560 Natural Resources Systems. Examples: Agriculture, earth sciences, fisheries,

environmental sciences, horticulture, wildlife, forestry.

570 Other Professional, Technical Strands. Defined by the District.

580 Other Professional, Technical Strands. Defined by the District.

590 Other Professional, Technical Strands. Defined by the District.

Descriptions of Balance Sheet Accounts

Assets and Other Debits

Assets and other debits include what is owned and other items not owned as of the date of the balance

sheet but expected to become fully owned at some future date as well as other budgeting and offsetting

accounts which normally have debit balances.

100 Current Assets.

Cash or anything that can be readily converted into cash.

101 Cash in the Bank. All funds on deposit with a bank or savings and loan institution normally

in non-interest bearing accounts. Interest bearing accounts are recorded in investments.

102 Cash on Hand. Currency, coins, checks, postal and express money orders, and bankers’

drafts on hand.

103 Petty Cash. A sum of money set aside for the purpose of paying small obligations for which

the issuance of a formal voucher and check would be too expensive and time consuming.

104 Change Cash. A sum of money set aside for the purpose of providing change.

105 Cash With Fiscal Agents. Deposits with fiscal agents, such as commercial banks, for the

payment of matured bonds and interest.

106 Cash and Investments to Repay Short-term Notes.

111 Investments. Securities and real estate held for the production of income in the form of

interest, dividends, rentals, or lease payments. The account does not include fixed assets

used in district operations. Separate accounts for each category of investments may be

maintained.

112 Unamortized Premiums on Investments. The excess of the amount paid for securities over

the face value which has not yet been amortized. Use of this account is restricted to long-

term investments.

113 Unamortized Documents on Investments (credit). The excess of the face value of

securities over the amount paid for them which has not yet been written off. Use of this

account is normally restricted to long-term investments.

114 Interest Receivable on Investments. The amount of interest receivable on investments,

exclusive of interest purchased. Interest purchased should be shown in a separate

account.

115 Accrued Interest on Investments Purchased. Interest accrued on investments between

the last interest payment date and date of purchase. The account is carried as an asset

until the first interest payment date after date of purchase. Upon receipt and deposit of

the cash, an entry is made debiting account Cash in Bank, and crediting the Accrued

Interest on Investments Purchased account for the amount of interest purchased and an

Interest Earning revenue account (1510) for the balance.

121 Taxes Receivable. The uncollected portion of taxes which a district or governmental unit

has levied and which has become due, including any interest or penalties which may be

accrued. Separate accounts may be maintained on the basis of tax roll year and/or current

and delinquent taxes.

122 Estimated Uncollectible Taxes (credit). A provision for that portion of taxes receivable

which it is estimated will not be collected. The account is shown on the balance sheet as a

deduction from the Taxes Receivable account in order to arrive at the net taxes receivable.

Separate accounts may be maintained on the basis of tax roll year and/or delinquent

taxes.

131 Interfund Loans Receivable. An asset account used to record a loan by one fund to another

fund in the same governmental unit. It is recommended that separate accounts be

maintained for each interfund receivable loan.

132 Interfund Accounts Receivable. An asset account used to indicate amounts owed to a

particular fund by another fund in the same district for goods sold or services rendered.

It is recommended that separate accounts be maintained for each interfund receivable.

141 Intergovernmental Accounts Receivable. Amounts due to the reporting governmental

unit from another governmental unit. These amounts may represent grants-in-aid, shared

taxes, taxes collected for the reporting unit by another unit, loans, and charges for

services rendered by the reporting unit for another government. It is recommended that

separate accounts be maintained for each interagency receivable.

151 Loans Receivable. Amounts which have been loaned to persons or organizations, including

notes taken as security for such loans, where permitted by statutory authority.

152 Estimated Uncollectible Loans. A provision for that portion of loans receivable which is

estimated will not be collected. The account is shown on the balance sheet as a deduction

from the Other Loans Receivable account.

153 Other Accounts Receivable. Amounts owing an open account from private persons, firms,

or corporations for goods and services furnished by a district (but not including amounts

due from other funds or from other governmental units).

154 Estimated Uncollectible Accounts Receivable. A provision for that portion of accounts

receivable which is estimated will not be collected. The account is shown on the balance

sheet as a deduction from the Other Accounts Receivable account.

161 Bond Proceeds Receivable. An account used to designate the amount receivable upon

sale of bonds.

171 Inventories for Consumption. The cost of supplies and equipment on hand not yet

distributed to requisitioning units.

172 Inventories for Resale. The value of goods held by a district for resale rather than for

use in its own operations.

181 Prepaid Expenses. Expenses paid for benefits not yet received. Prepaid expenses differ

from deferred charges in that they are spread over a shorter period of time than deferred

charges and are regularly recurring costs of operation. Examples of prepaid expenses are

prepaid rent, prepaid interest, and unexpired insurance premiums. An example of a

deferred charged is unamortized discounts on bonds sold.

191 Deposits. Funds deposited by the district as prerequisite to receiving services and/or

goods.

199 Other Current Assets. Current assets not provided for elsewhere.

200 Fixed Assets.

Those assets which the district intends to hold or continue in use over a long period of time.

211 Sites. A fixed asset account which reflects the acquisition value of land owned by a district.

If land is purchased, this account includes the purchase price and costs such as legal fees,

filling and excavation costs, and other associated improvement costs which are incurred

to put the land in condition for its intended use. If land is acquired by gift, the account

reflects its appraised value at time of acquisition.

221 Site Improvements. A fixed asset account which reflects the acquisition value of

permanent improvement, other than buildings, which add value to land. Examples of such

improvements are fences, retaining walls, sidewalks, pavements, gutters, tunnels, and

bridges. If the improvements are purchased or constructed, this account contains the

purchase or contract price. If improvements are obtained by gift, it reflects the appraised

value at time of acquisition.

222 Accumulated Depreciation on Site Improvements. Accumulated amounts for depreciation

of land improvements. The recording of depreciation is optional in the general fixed assets

account group.

231 Buildings and Building Improvements. A fixed asset account which reflects the acquisition

value of permanent structures used to house persons and property owned by the district.

If buildings are purchased or constructed, this account includes the purchase or contract

price of all permanent buildings and the fixtures attached to and forming a permanent

part of such buildings. This account includes all building improvements. If buildings are

acquired by gift, the account reflects their appraised value at time of acquisition.

232 Accumulated Depreciation on Buildings and Building Improvements. Accumulated

amounts for depreciation of buildings and building improvements. The recording of

depreciation is optional in the general fixed assets account group.

241 Machinery and Equipment. Tangible property of a more or less permanent nature, other

than land, buildings, or improvements thereto, which is useful in carrying on operations.

Examples are machinery, tools, trucks, cars, buses, furniture, and furnishings.

242 Accumulated Depreciation on Machinery and Equipment. Accumulated amounts for

depreciation of machinery and equipment. The recording of depreciation is optional in

the general fixed assets account group and required in the proprietary funds.

251 Construction in Progress. The cost of construction work undertaken but not yet

completed.

300 Budgeting Accounts and Other Debits.

Budgeted and actual amounts of revenues as well as offsetting accounts which normally have debit

balances.

301 Estimated Revenues (budget account). The amount of revenues estimated to be received

or to become receivable during the fiscal period, the account is closed out and does not

appear in the balance sheet. This account would appear in interim financial statements.

302 Revenues. The total of all revenues realized during a period. This represents the increase

in ownership equity during a designated period of time. The account appears only in a

balance sheet prepared during the fiscal period. At the end of the fiscal period, the

account is closed out and does not appear in the balance sheet.

303 Amount Available in Debt Service Funds. An account in the General Long-Term Debt

Account Group which designates the amount of fund balance available in the Debt Service

Fund for the retirement of long-term debt.

304 Amount to Be Provided for Retirement of General Long-Term Debt. An account in the

General Long-Term Account Group which designates the amount to be provided from

taxes or other revenue to retire long-term debt.

Liabilities, Reserves and Fund Balances

Liabilities, reserves, and fund balance are district debts plus items which are not debts but which may

become debts at some future time, as well as other budgeting accounts which normally appear only on

the interim financial statements.

400 Current Liabilities.

Those debts the district expects to pay within a short period of time, usually within a year or less.

401 Interfund Loans Payable. A liability account used to record a debt owed by one fund to

another fund in the same governmental unit. It is recommended that separate accounts

be maintained for each interfund loan.

402 Interfund Accounts Payable. A liability account used to indicate amounts owned by a

particular fund to another fund in the same district for goods and services rendered. It is

recommended that separate accounts be maintained for each interfund payable.

411 Intergovernmental Accounts Payable. Amounts owed by the reporting district to another

governmental unit. It is recommended that separate accounts be maintained for each

interagency payable.

421 Accounts Payable. Liabilities on an open account owing to private persons, firms, or

corporations for goods and services received by a district (but not including amounts due

to other funds of the same district or to other governmental units).

422 Judgments Payable. Amounts due to be paid by a district as the result of court decisions,

including condemnation awards in payment for private property taken for public use.

423 Warrants Payable. Amounts due to designated payees in the form of a written order

drawn by the district directing the district treasurer to pay a specific amount.

431 Contracts Payable. Amounts due on contracts for assets, goods, and services received by

a district.

432 Construction Contracts Payable—Retained Percentage. Liabilities on account of

construction contracts for that portion of the work which has been completed but on

which part of the liability has not been paid pending final inspection, or the lapse of a

specified time period or both. The unpaid amount is usually a stated percentage of the

contract price.

433 Construction Contracts Payable. Amounts due by a district on contracts for construction

of buildings, structures, and other improvements.

441 Matured Bonds Payable. Bonds which have reached or passed their maturity date but

which remain unpaid.

442 Bonds Payable. Bonds which have not reached or passed their maturity date but are due

within one year or less.

443 Unamortized Premiums on Bonds Sold. An account which represents that portion of the

excess of bond proceeds over par value and which remains to be amortized over the

remaining life of such bonds.

451 Loans Payable. Short-term obligations representing amounts borrowed for short periods

of time usually evidenced by notes payable or warrants payable.

455 Interest Payable. Interest due within one year.

461 Accrued Salaries and Benefits. Salary and fringe benefit costs incurred during the current

accounting period which are not payable until a subsequent accounting period.

471 Payroll Deductions and Withholdings. Amounts deducted from employees’ salaries for

withholding taxes and other purposes. District-paid benefits amounts payable also are

included. A separate liability account may be used for each type of benefit.

481 Deferred Revenues. A liability account which represents revenues collected before they

become due.

491 Deposits Payable. Liability for deposits received as a prerequisite to providing or receiving

services and/or goods.

492 Due to Fiscal Agent. Amounts due to fiscal agents, such as commercial banks, for serving

a district’s matured indebtedness.

499 Other Current Liabilities. Other current liabilities not provided for elsewhere.

500 Long-Term Liabilities. Debt with a maturity of more than one year after the date of issuance.

511 Bonds Payable. Bonds which have not reached or passed their maturity date and which

are not due within one year.

521 Loans Payable. An unconditional written promise signed by the maker to pay a certain

sum of money one year or more after the date of issuance.

531 Lease Obligations. Amounts remaining to be paid on lease purchase agreements.

541 Unfunded Pension Liabilities. The amount of the actuarial deficiency on a locally operated

pension plan to be contributed by the district on behalf of present employees.

590 Other Long-Term Liabilities. Other long-term liabilities not provided for elsewhere.

600 Budgeting Accounts.

These categories represent accounts which reflect budgeted and actual amounts related to

expenditures and encumbrance

601 Appropriations (budget account). This account records authorizations granted by the

school board or legislative body to make expenditures for specific purposes. This account

appears in a balance sheet prepared during the fiscal period. It is closed out and does not

appear in the balance sheet prepared at the close of the fiscal period.

602 Expenditures. This account appears in balance sheets prepared during the fiscal period

and designates the total of expenditures charged against appropriations during such

period. The account is shown in each balance sheet as a deduction from the

Appropriations account to arrive at the unexpended balance of total appropriations.

603 Encumbrances. This account designates obligations in the form of purchase orders,

contracts, or salary commitments which are chargeable to an appropriation and for which

part of the appropriation is reserved. In an interim balance sheet, encumbrances are

deducted along with the expenditures from the Appropriations account to arrive at the

unencumbered balance.

700 Fund Equity.

These are accounts which show the excess of a fund over its liabilities. Portions of that balance may be

reserved for future use.

701 Investment in General Fixed Assets. An account in the General Fixed Assets Account

Group which represents the district’s equity in general fixed assets. The balance of this

account is normally subdivided according to the source of funds which financed the asset

acquisition, such as General Fund revenues, bond issues, and contributions.

721 Contributed Capital. An equity account in the proprietary funds which shows the amount

of fund capital contributed by the governmental unit from general government revenue

and resources. Annual subsidies to cover operating deficits are not recorded here. These

amounts are recorded as other sources (interfund transfers) and closed to the unreserved

retained earnings account (740).

730 Reserve for (Special Purposes)—Retained Earnings. The accumulated earnings of the

proprietary funds which have been retained in the fund and which are reserved for a

specific purpose. One example would be funds reserved for the future purchase of

equipment.

740 Unreserved Retained Earnings. The accumulated earnings of the proprietary funds which

have been retained in the fund and which are not reserved for any specific purpose.

760 Other than Unassigned (Special Purposes)—Fund Balance. A reserve which represents the

segregation of a portion of a fund balance to indicate that assets equal to the amount of

the reserve are tied up and are, therefore, not available for appropriation. It is

recommended that a separate reserve be established for each special purpose. One

example of a special purpose would be restricted federal programs.

761 Non-spendable Fund Balance. Amounts that cannot be spent due to form; for

example, inventories and prepaid amounts. Also, long-term loan and notes

receivables, and property held for resale would be reported here unless the

proceeds are restricted, committed or assigned. OR Amounts that must be

maintained intact legally or contractually (corpus or principal of a permanent

fund).

762 Restricted Fund Balance. Amounts constrained for a specific purpose by external

parties, constitutional provision or enabling legislation.

763 Committed Fund Balance. Amounts constrained for a specific purpose by a

government using its highest level of decision-making authority. It would require

action by the same group to remove or change the constraints placed on the

resources. Action to constrain resources must occur prior to year-end; however,

the amount can be determined in the subsequent period.

764 Assigned Fund Balance. Amounts intended to be used by the governing body for

specific purposes. Amounts reported as assigned should not result in a deficit in

unassigned fund balance. In the general fund assigned fund balance represents

the amount that is not restricted or committed.

770 Unassigned Fund Balance. In the general fund, amounts not contained in other

classifications i.e. non-spendable, restricted, committed or assigned. The general fund is

the only fund that would report a positive amount in unassigned fund balance. For all

governmental funds other than the general fund, amounts expended in excess of

resources that are non-spendable, restricted, committed or assigned (a residual deficit). In

determining a residual deficit, no amount should be reported as assigned.

Appendix A — Terminology

Appendix A

Terminology

The following explanations of terms are drawn primarily

from Governmental Accounting, Auditing and Financial

Reporting (GAAFR), published by the Government

Finance Officers Association, 1944, Chicago, Illinois.

ACCOUNTING SYSTEM: The methods and records

established to identify, assemble, analyze, classify,

record and report a government’s transactions and to

maintain accountability for the related assets and

liabilities.

ACCOUNTS PAYABLE: A short-term liability account

reflecting amounts owed to private persons or

organizations for goods and services received by a

government.

ACCOUNTS RECEIVABLE: An asset account reflecting

amounts due from private persons or organizations for

goods and services furnished by a government (but not

including amounts due from other funds or other

governments).

ACCRUAL BASIS: The recording of the financial effects on

a government of transactions and other events and

circumstances that have cash consequences for the

government in the periods in which cash is received or

paid by the government.

ACCUMULATED DEPRECIATION: A contra-asset account

used to report the accumulation of periodic credits to

reflect the expiration of the estimated service life of fixed

assets.

ACTIVITY: A specific and distinguishable service

performed by one or more organizational components of

a government to accomplish a function for which the

government is responsible.

ACTUARIAL BASIS: A basis used in computing the amount

of contributions to be made periodically to a fund or

account so that the total contributions plus the

compounded earnings thereon will equal the required

payments to be made out of the fund or account. The

factors considered in arriving at the amount of these

contributions include the length of time over which each

contribution is to be held and the rate of return

compounded on such contribution over its life. A pension

trust fund for a PERS is an example of a fund concerned with

actuarial basis data.

AD VALOREM TAX: A tax based on value (e.g., a property tax).

ALLOT: To divide a budgetary appropriation into amounts that

may be encumbered or expended during an allotment period.

APPROPRIATION: A legal authorization granted by a

legislative body to make expenditures and to incur obligations

for specific purposes. An appropriation usually is limited in

amount and time it may be expended.

ARBITRAGE: Classically, the simultaneous purchase and sale

of the same or an equivalent security in order to profit from

price discrepancies. In government finance, the most

common occurrence of arbitrage involves the investment of

the proceeds from the sale of tax- exempt securities in a

taxable money market instrument that yields a higher rate,

resulting in interest revenue in excess of interest costs.

ASSESSED VALUATION: A valuation set upon real estate or

other property by a government as a basis for levying taxes.

ASSET: A probable future economic benefit obtained or

controlled by a particular entity as a result of past

transactions or events.

BALANCE SHEET: The financial statement disclosing the

assets, liabilities and equity of an entity at a specified date in

conformity with GAAP.

BASIC FINANCIAL STATEMENTS: Those financial

statements, including notes thereto, necessary for the fair

presentation of the financial position and results of

operations of an entity in conformity with GAAP. The basic

financial statements include a balance sheet, an “all-inclusive”

operating statement, a budget comparison statement (for all

governmental funds for which annual appropriated budgets

are adopted), and a statement of changes in financial position

(for proprietary funds, pension trust funds and

nonexpendable trust funds).

BASIS OF ACCOUNTING: A term used to refer to when

revenues, expenditures, expenses and transfers—and the

related assets and liabilities—are recognized in the accounts

and reported in the financial statements. Specifically, it relates

to the timing of the measurements made, regardless of the

nature of the measurement, on either the cash or the accrual

method.

BOND: Most often, a written promise to pay a specified sum

of money (called the face value or principal amount), at a

specified date or dates in the future, called the maturity

Appendix A — Terminology

date(s), together with periodic interest at a specified

rate. Sometimes, however, all or a substantial portion

of the interest is included in the face value of the

security. The difference between a note and a bond

is that the latter is issued for a longer period and

requires greater legal formality.

BUDGET: A plan of financial operation embodying an

estimate of proposed expenditures for a given period

and the proposed means of financing them. Used

without any modifier, the term usually indicates a

financial plan for a single fiscal year. The term “budget”

is used in two senses in practice. Sometimes it

designates the financial plan presented to the

appropriating governing body for adoption, and

sometimes, the plan finally approved by that body.

BUDGETARY CONTROL: The control or management of

a government or enterprise in accordance with an

approved budget to keep expenditures within the

limitations of available appropriations and available

revenues.

BUDGET DOCUMENT: The instrument used by the

budget-making authority to present a comprehensive

financial program to the appropriating governing body.

The budget document usually consists of three parts.

The first part contains a message from the budget-

making authority, together with a summary of the

proposed expenditures and the means of financing

them. The second consists of schedules supporting the

summary. These schedules show in detail the past

years’ actual revenues, expenditures and other data

used in making the estimates. The third part is

composed of drafts of the appropriation, revenue and

borrowing measures necessary to put the budget into

effect.

BUDGET MESSAGE: A general discussion of the

proposed budget as presented in writing by the

budget-making authority to the legislative body. The

budget message should contain an explanation of the

principal budget items, an outline of the

government’s experience during the past period and

its financial status at the time of the message and

recommendations regarding the financial policy for

the coming period.

CAPITAL BUDGET: A plan of proposed capital outlays

and the means of financing them.

CAPITAL EXPENDITURES: Expenditures resulting in the

acquisition of or addition to the government’s general fixed

assets.

CAPITAL PROGRAM: A plan for capital expenditures to be

incurred each year over a fixed period of years to meet capital

needs arising from the long-term work program or other

capital needs. It sets forth each project or other contemplated

expenditure in which the government is to have a part and

specifies the resources estimated to be available to finance

the projected expenditures.

CASH: Cash includes currency on hand and demand deposits

with banks or other financial institutions. Cash also includes

deposits in other kinds of accounts that have the general

characteristics of demand deposit accounts.

CASH BASIS: A basis of accounting under which transactions

are recognized only when cash is received or disbursed.

COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR): The

official annual report of a government. It includes (a) the five

combined financial statements in the combined statements—

overview and their related notes (the “liftable” GPFS) and (b)

combining statements by fund type and individual fund and

account group financial statements prepared in conformity

with GAAP and organized into a financial reporting pyramid.

It also includes supporting schedules necessary to

demonstrate compliance with finance-related legal and

contractual provisions, required supplementary information,

extensive introductory material and detailed statistical

section. Every government reporting entity should prepare a

CAFR.

COST: The amount of money or other consideration

exchanged for goods or services.

COST ACCOUNTING: The method of accounting that provides

for the assembling and recording of all the elements of cost

incurred to accomplish a purpose, to carry on an activity or

operation, or to complete a unit of work or a specific job.

CURRENT: As applied to budgeting and accounting,

designates the operations of the present fiscal period as

opposed to past or future periods. It usually connotes items

likely to be used up or converted into cash within one year.

DEBT: An obligation resulting from the borrowing of money or

from the purchase of goods and services. Debts of

governments include bonds, time warrants and notes.

DEFICIT: (1) The excess of the liabilities of a fund over its

assets. (2) The excess of expenditures over revenues during

an accounting period or, in the case of proprietary funds, the

Appendix A — Terminology

excess of expenses over revenues during an

accounting period.

DEPRECIATION: (1) Expiration in the service life of fixed

assets, other than wasting assets, attributable to wear

and tear, deterioration, action of the physical elements,

inadequacy and obsolescence. (2) The portion of the

cost of a fixed asset, other than a wasting asset, charged

as an expense during a particular period. In accounting

for depreciation, the cost of a fixed asset, less any

salvage value, is prorated over the estimated service

life of such an asset, and each period is charged with a

portion of such cost. Through this process, the entire

cost of the asset is ultimately charged off as an expense.

DOUBLE ENTRY: A system of bookkeeping requiring

that for every entry made to the debit side of an

account or accounts, an entry or entries be made for an

equal amount to the credit side of another account or

accounts.

ENCUMBRANCES: Commitments related to

unperformed (executory) contracts for goods or

services. Used in budgeting, encumbrances are not

GAAP expenditures or liabilities, but represent the

estimated amount of expenditures ultimately to result

if unperformed contracts in process are completed.

ENTITY: (1) The basic unit upon which accounting

and/or financial reporting activities focus. The basic

governmental legal and accounting entity is the

individual fund and account group. (2) That

combination of funds and account groups that

constitutes the reporting entity for financial reporting

purposes and alone may issue CAFRs and GPFS.

EQUITY ACCOUNTS: Those accounts presenting the

difference between assets and liabilities of the fund.

EXPENDITURES: Decreases in net financial resources.

Expenditures include current operating expenses

requiring the present or future use of net current assets,

debt service and capital outlays, and intergovernmental

grants, entitlements and shared revenues.

FINANCIAL AUDIT: An audit made to determine

whether the financial statements of a government are

presented fairly in conformity with GAAP.

FISCAL YEAR: A 12-month period to which the annual

operating budget applies and at the end of which a

government determines its financial position and the results

of its operations.

FIXED ASSETS: Long-lived tangible assets obtained or

controlled as a result of past transactions, events or

circumstances. Fixed assets include buildings, equipment,

improvements other than buildings and land. In the private

sector, these assets are referred to most often as property,

plant and equipment.

FIXTURES: Attachments to buildings that are not intended to

be removed and cannot be removed without damage to the

buildings. Those fixtures with a useful life presumed to be as

long as that of the building itself, are considered a part of the

building; all others are classified as equipment.

FUNCTION: A group of related activities aimed at

accomplishing a major service or regulatory program for

which a government is responsible (e.g., public safety).

FUND: A fiscal and accounting entity with a self- balancing set

of accounts in which cash or other financial resources, all

related liabilities and residual equities, or balances, and

changes therein, are recorded and segregated to carry on

specific activities or attain certain objectives in accordance

with special regulations, restrictions or limitations.

FUND BALANCE: The difference between fund assets and fund

liabilities of governmental and similar trust funds.

FUND TYPE: Any one of seven categories into which all funds

are classified in governmental accounting. The seven fund

types are: general, special revenue, debt service, capital

projects, enterprise, internal service, and trust and agency.

GENERAL FUND: The fund used to account for all financial

resources, except those required to be accounted for in

another fund.

GENERAL OBLIGATION BONDS PAYABLE: Bonds backed by the

full faith and credit of government.

GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP):

Uniform minimum standards and guidelines for financial

accounting and reporting. They govern the form and content

of the financial statements of an entity. GAAP encompass the

conventions, rules and procedures necessary to define

accepted accounting practice at a particular time. They

include not only broad guidelines of general application, but

also detailed practices and procedures. GAAP provide a

standard by which to measure financial presentations. The

primary authoritative body on the application of GAAP to state

and local governments is the GASB.

Appendix A — Terminology

GENERALLY ACCEPTED AUDITING STANDARDS (GAAS):

Standards established by the AICPA for the conduct

and reporting of financial audits. There are 10 basic

GAAS, classed into three broad categories: general

standards, standards of field work and standards of

reporting. The Auditing Standards Board of the AICPA

publishes SAS to comment and expand upon these

basic standards. These SAS, together with the 10 basic

standards, constitutes GAAS. These GAAS set forth the

objectives of the audit and establish measures that can

be applied to judge the quality of its performance.

GENERAL PURPOSE FINANCIAL STATEMENTS (GPFS):

Five combined financial statements that, together with

the accompanying notes, constitute the minimum

financial reporting needed for fair presentation in

conformity with GAAP. These five combined financial

statements, with their accompanying notes, make up

the first of the financial reporting pyramid’s three

reporting levels containing financial statements.

Known as the combined statements—overview, these

statements include (1) combined balance sheet—all

fund types and account groups, (2) combined

statement of revenues, expenditures and changes in

fund balances—all governmental fund types, (3)

combined statement of revenues, expenditures and

changes in fund balances— budget and actual—general

and special revenue fund types (and similar

governmental fund types for which annual budgets

have been legal adopted), (4) combined statement of

revenues, expenses and changes in retained earnings

(or equity)—all proprietary fund types and (5)

combined statement of changes in financial position—

all proprietary fund types. Trust fund operations may be

reported in (2), (4) and (5) above, as appropriate, or

separately. The combined statements—overview also

are referred to as the “liftable” GPFS.

GOVERNMENTAL ACCOUNTING STANDARDS BOARD

(GASB): The authoritative accounting and financial

reporting standard- setting body for government

entities.

GROSS BONDED DEBT: The total amount of direct debt

of a government, represented by out- standing bonds

before deduction of any assets available and

earmarked for their retirement.

INTERNAL AUDITING: An independent appraisal of

the diverse operations and controls within a

government entity to determine whether acceptable

policies and procedures are followed, established

standards are met, resources are used efficiently and

economically and the organization’s objectives are

being achieved. The term covers all forms of appraisal

of activities undertaken by auditors working for and within an

organization.

INTERNAL CONTROL STRUCTURE: Policies and procedures

established to provide reasonable assurance that specific

government objectives will be achieved.

INVENTORY: (1) A detailed list showing qualities, descriptions

and values of property and, frequently, units of measure and

unit prices. (2) An asset account reflecting the cost of goods

held for resale or for use in operations.

LEVY: (1) (Verb) To impose taxes, special assessments or

service charges for the support of government activities. (2)

(Noun) The total amount of taxes, special assessments or

service charges imposed by a government.

LIABILITIES: Probable future sacrifices of economic benefits,

arising from present obligations of a particular entity to

transfer assets or provide services to other entities in the

future as a result of past transactions or events.

MEASUREMENT FOCUS: The accounting convention that

determines (1) which assets and which liabilities are included

on a government’s balance sheet and where they are

reported there, and (2) whether an operating statement

presents information on the flow of financial resources

(revenues and expenditures) or information on the flow of

economic resources (revenues and expenses).

MODIFIED ACCRUAL BASIS: The accrual basis of accounting

adapted to the governmental fund-type measurement focus.

Under it, revenues and other financial resource increments

(e.g., bond issue proceeds) are recognized when they become

susceptible to accrual that is when they become both

“measurable” and “available to finance expenditures of the

current period.” “Available” means collectible in the current

period or soon enough thereafter to be used to pay liabilities

of the current period. Expenditures are recognized when the

fund liability is incurred except for (1) inventories of materials

and supplies that may be considered expenditures either

when purchased or when used, and (2) prepaid insurance and

similar items that may be considered expenditures either

when paid for or when consumed. All governmental funds,

expendable trust funds and agency funds are accounted for

using the modified accrual basis of accounting.

NET INCOME: Proprietary fund excess of operating revenues,

nonoperating revenues and operating transfers in over

operating expenses, nonoperating expenses and operating

transfers out.

OBJECT: As used in expenditure classification, applies to the

article purchased or the service obtained, rather than to the

Appendix A — Terminology

purpose for which the article or service was

purchased or obtained (e.g., personal services,

contractual services, materials and supplies).

OPERATING BUDGET: Plans of current expenditures

and the proposed means of financing them. The annual

operating budget (or, in the case of some state

governments, the biennial operating budget) is the

primary means by which most of the financing,

acquisition, spending and service delivery activities of a

government are controlled. The use of annual

operating budgets is usually required by law. Even

when not required by law, however, annual operating

budgets are essential to sound financial management

and should be adopted by every government.

OPERATING EXPENSES: Proprietary fund expenses

related directly to the fund’s primary activities.

OVERHEAD: Those elements of cost necessary in the

production of a good or service which are not directly

traceable to the product or service. Usually these costs

relate to objects of expenditure that do not become an

integral part of the finished product or service, such as

rent, heat, light, supplies, management and

supervision.

PERMANENT TAX RATE LIMIT: The maximum rate of ad

valorem property taxes that a school district can

impose. Taxes generated from the permanent rate limit

can be used for any purpose. No action of the school

district can increase a permanent rate limit.

PROGRAM BUDGET: A budget wherein expenditures

are based primarily on programs of work and

secondarily on character and object class, on the one

hand, and performance, on the other.

PROJECTED TOTAL-LIFE COST: The total anticipated

costs related to a fixed asset during its estimated useful

life. Projected total-life cost normally includes a

detailed schedule of maintenance requirements for

each year of the asset’s life, including preventive

maintenance, normal repair and replacement, and

replacement of major parts or components needed to

achieve the normal (intended) life of the asset. The

total- life cost is calculated at the time an asset is

acquired or constructed, often as an integral part of

capital acquisition or budgeting procedures.

PURCHASE ORDER: A document authorizing the

delivery of specified merchandise or the rendering of

certain services and the making of a charge for them.

REPLACEMENT COST: The amount of cash or other

consideration that would be required today to obtain the

same asset or its equivalent.

REQUISITION: A written demand or request, usually from one

department to the purchasing officer or to another

department, for specified articles or services.

REVENUES: (1) Increases in the net current assets of a

governmental fund type from other than expenditure refunds

and residual equity transfers. Also, general long-term debt

proceeds and operating transfers in are classified as “other

financing sources” rather than as revenues. (2) Increases in

the net total assets of a proprietary fund type from other than

expense refunds, capital contributions and residual equity

transfers. Also, operating transfers in are classified separately

from revenues.

STANDARD COST: The predetermined cost of performing an

operation or producing a product when labor, materials and

equipment are used efficiently under reasonable and normal

conditions. Normal conditions exist when there is an absence

of special or extraordinary factors affecting the quality or

quantity of the work performed or the time or method of

performing it.

SUBFUNCTION: A grouping of related activities within a

particular government function.

UNENCUMBERED APPROPRIATION: That portion of an

appropriation not yet expended or encumbered.

WORK ORDER: A written order authorizing and directing the

performance of a certain task and issued to the person who is

to direct the work. Among the items of information included

on the order are the nature and location of the job,

specifications of the work to be performed and a job number,

which is referred to in reporting the amount of labor,

materials and equipment used.

Appendix B — Analysis of Student Body Funds

Appendix B

Analysis of Student Body Funds

The following questions will help to determine

whether or not the student body funds should be

classified as governmental and should be budgeted.

The more often the choices and accurately describe

the funds, the more likely the funds should be

classified as governmental and budgeted.

I. Who has the responsibility for the account?

A. Who authorizes the revenues? (Sets

admission prices, establishes fees,

authorizes and activity)

1. Student organization

2. School district personnel

B. Who authorizes the expenditures?

1. Student organization

2. School district personnel

C. How are the expenditures authorized?

1. Student organization minutes

2. School district memorandum

3. Other

II. Who has control over the account?

A. Who receives the revenue?

1. Student organization

2. School district personnel

B. Who deposits the revenue?

1. Student

2. School district personnel

C. Who signs the checks or purchase orders?

1. Student

2. School district personnel

III. Who has custody of the account?

A. In whose name is the account?

1. Student organization

2. School district

3. Other

B. Who prepares the checks?

1. Student

2. School district personnel

C. Who receives and reconciles the bank statement?

1. Student organization

2. School district

D. Who has custody of the supporting documents

(cancelled checks, receipts, purchase orders, etc.)?

1. Student organization

2. School district

Appendix C — Sources of Accounting and Budget Information

Appendix C

Sources of Accounting and Budget Information

Governmental Accounting, Auditing, and Financial Reporting Manual (GAAFR)

Government Finance Officers Association

203 N. LaSalle Street, Suite 2700

Chicago, IL 60601

Oregon Revised Statutes of Interest:

Chapter 294—Local Budget Law

Chapter 326—State Administration of Elementary and Secondary Education

Chapter 327—State Financing of Elementary and Secondary Education

Chapter 328—Local Financing of Education

Chapter 332—Local Administration of Education

Oregon Administrative Rules of Interest:

Chapter 150—Oregon Department Of Revenue

Chapter 581—Oregon Department Of Education

Local Budgeting Manual

Finance and Taxation Unit

Oregon Department of Revenue

PO Box 14380

Salem, OR 97309-5075

District Elections Manual

Secretary of State Elections Division

Public Service Building Suite 501

255 Capitol Street NE

Salem, OR 97310

Oregon School Bond Manual

Oregon School Boards Association

PO Box 1068

Salem, OR 97308

1-503-588-2800 or 1-800-578-6722

Appendix D — Account Code Structure Charts

Appendix D

ACCOUNT CODE STRUCTURE CHARTS

FUNCTION CODES: INSTRUCTION SERVICES

Appendix D — Account Code Structure Charts

100

ACCOUNT CODE STRUCTURE

AREA OF RESPONSIBILITY CODES: INSTRUCTION SERVICES FUNCTION CODES

Appendix D — Account Code Structure Charts

101

ACCOUNT CODE STRUCTURE

FUNCTION CODES: SUPPORT SERVICES

Appendix D — Account Code Structure Charts

102

ACCOUNT CODE STRUCTURE

FUNCTION CODES: OTHER SERVICES

Appendix D — Account Code Structure Charts

103

ACCOUNT CODE STRUCTURE

OBJECT CODES

Appendix D — Account Code Structure Charts

104

ACCOUNT CODE STRUCTURE

OBJECT CODES (continued)

Appendix D — Account Code Structure Charts

105

ACCOUNT CODE STRUCTURE

OBJECT CODES (continued)

106

Appendix E – Guidelines for ELL and Non-ELL Related Expenditure

Appendix E

Guidelines for ELL and Non-ELL Related Expenditures

Language interpretation and translation services create access to education for students who are non-

English speaking. To that end, this appendix provides additional information for the implementation of

HB 3499.

HB 3499, enrolled during the 2015 legislative session, directed the Department of Education to convene

an advisory group to develop uniform budget coding requirements and uniform reporting requirements

to provide budget transparency for the spending of moneys received by school districts as provided by

ORS 327.013 (1)(c)(A)(ii) for students in average daily membership eligible for and enrolled in an English

Language Learner program under ORS 336.79. Appendix E was added to help provide guidance to assist

in the tracking of ELL funds as required by law. The following provides frequently asked questions and

answers for guidance on how to code different ELL and non-ELL related expenditures:

“The obligation not to discriminate based on race, color, or national origin requires public schools

to take affirmative steps to ensure that limited English proficient (LEP) students, now more

commonly known as English Learner (EL) students or English Language Learners (ELLs), can

meaningfully participate in educational programs and services, and to communicate information

to LEP parents in a language they can understand.”

-U.S. Office for Civil Rights

The following provides Frequently Asked Questions and answers for guidance on how to code

different ELL and non-ELL related expenditures:

1. Is the expenditure a direct instructional service with the intention of assisting an ELL

student(s) in acquiring the English language, such as an ELL class?

• If yes, use function 1291 with object code 319.

2. Is the expenditure an intervention service for an ELL student to acquire the English

language?

• If yes, use function 1291 with object code 319.

3. Is the expenditure for translation or interpretation services in support of an ELL student to

acquire the English language?

• If yes, use function 2680 with object code 319 and Area of Responsibility 280.

4. Is the interpretation and translation expenditure a support available to all students?

• If yes, use function 2680 with object code 319. Do not use an Area of

Responsibility code.

5. If curriculum needs to be interpreted or translated in language other than English to learn

mathematics, science, social studies, and other core classes, use your discretion to determine if

the expense should be coded as an ELL expense. For example, textbooks are often already

107

Appendix E – Guidelines for ELL and Non-ELL Related Expenditure

translated in different languages, so the expense of the textbook would not be reported as and

ELL expense.

6. Is the expenditure for translation or interpretation services in support of a family or

community member?

• If yes, use function 2680 with object code 389. Do not use an Area of

Responsibility.

7. Are you contracting bilingual staff and/or language interpreter services for: district and school-

wide meetings (including parent and teacher conferences, curriculum nights, picnics, back-to-

school nights, informational nights, college visits and any other relevant events); district and

school-specific telephone communication and voicemail messages for families;

principal/administrator and teacher hiring meetings; on-going meetings regarding a student’s

academic progress and behavior; special education referrals, special education evaluations, and

any other related issues regarding a student’s well- being?

• If yes, use function 2680 with object code 319. Do not use an Area of Responsibility.

8. Are you contracting bilingual staff and/or translator services to provide for family and community

translation of important curricula and instructional materials, vital district and school-wide

policies (may include, but are not limited to, enrollment, high school graduation, promotion and

retention), parent and student handbooks, forms (may include, but are not limited to, forms

related to eligibility for services, enrollment, transportation, and school program/activity),

newsletters, updates and notices (may include, but are not limited to, information on the school

calendar and schedule, school emergencies, transportation schedule, bus stop changes,

inclement weather, school closures and delayed starts, school boundary changes, important

school policy changes, program changes, hiring of new staff and leaders, and cafeteria menus)?

• If yes, use function 2680 with object code 389. Do not use an Area of Responsibility.

Following are Oregon Revised Statutes (ORS) that provide law for English Language Learner programs:

ORS 327.006 - Definitions for State School Fund distributions

ORS 327.013 – State School Fund distribution computations for school districts

ORS 336.074 – Teaching in English required *exceptions

ORS 336.079 – Special English courses for certain children

ORS 336.081 – Opportunity to qualify to assist non-English speaking students

ORS Chapter 336 – Conduct of Schools Generally

Following are Oregon Administrative Rules (OAR) that provide rules for English Language Learner

programs:

OAR 581-022-1210 – District Curriculum

OAE 581-022-0405 – Career Education

OAR 581-023-0100 – Eligibility Criteria for Student Weighting for Purposes of State

108

Appendix E – Guidelines for ELL and Non-ELL Related Expenditure

Following is a State resource that provides information on civil rights, legal requirements,

expectations, and guidance around English Language Learner programs and services:

Oregon’s English Language Learner Program Guide

Following are Federal resources that provide information on civil rights, legal requirements,

expectations, and guidance around English Language Learner programs and services:

1. U.S. Office for Civil Rights’ Dear Colleague Letter for English Language Learners

2. U.S. Office of English Language Acquisition’s English Learner Toolkit

3. U.S. Department of Education Policy Directive to Ensure Meaningful Access to Federally

Conducted Services, Programs and Activities for Individuals with Limited English Proficiency

4. Policy Regarding the Treatment of National Origin Minority Students Who Are Limited

English Proficient

109

Appendix F – Guidelines for Coding Technology

Appendix F

Guidelines for Coding Technology: Object Code 400 – Supplies and Materials

410 Consumable:

Definition: Expenditures for ALL supplies for the operation of a district, including freight and cartage. If

such supplies are handled for resale to students, only the net cost of supplies is recorded here. (NOTE:

Accounts 411 through 419 are available for further identifying supplies for management purposes at the

option of the district.)

Note: Computer technology items of an approximate value of less than $250 and computer peripherals

such as thumb drives, keyboards, mice, misc. cords and cables, projector bulbs, and other smaller plug-n-

play devices should be included here.

460 Non-Consumable Items:

Definition: Expenditures for equipment with a current value of less than $5,000 or for items which are

“equipment-like,” but which fail one or more of the tests for classification as Object 541 or 542 (see

object 540 definition). Examples might include hand held calculators, stacking chairs, etc. This object

category could be used when a district desired to treat these items as equipment for budgeting, physical

control, etc., without either violating the state dollar threshold for capital equipment or combining these

items with consumable supplies (Object 410–419).

Note: Examples would include tables, whiteboards, bookcases, and chairs.

470 Computer Software.

Definition: Expenditures for published computer software. Include licensure and usage fees for software

here. The Cloud is considered software and would be coded here.

Note: iTunes software, and other mobile device apps apply as well.

480 Computer Hardware

Definition: Expenditures for non-capital computer hardware, generally of value not meeting the capital

expenditure criterion. An iPad or e-reader needed to access e-textbooks is considered hardware and

would be coded here.

Note: The capital expenditure criteria for objects is for items over $5,000 (see object code 550). Rule of

thumb is for items approximate to $250 or more to be coded here. This would include computer items of

major value such as Mac’s, PC’s, Monitors, printers, mobile devices such as iPads and Chromebooks, and

major internal hardware items, as well as computer setups purchased as a bundle.

410: Consumables 460: Non-Consumables 470: Software 480: Hardware

Apple TVs accessories Bookcases iTunes eBook Readers

Cords & Cables Chairs Microsoft Office iPads/ Mac Computers

Chromecasts accessories Handheld calculators Mobile Apps Major Internal Hardware

Keyboards & Mice Tables The Cloud Hardware/Monitors

Peripherals PC Computers

Projector Bulbs Printers/Projectors

Thumb Drives Routers

110

Appendix G – Recommended Guidelines for New-Program Accounting

Appendix G

Recommended Guidelines for New-Program Accounting

This guidance is for new programs where there may be eventual interest to report and understand how

the grant funds were spent and a financial data collection is not yet established. For example, the

legislature may want to know how much money was spent on salaries and benefits, supplies, services,

etc., for the High School Success program (Measure 98). Or the total cost per school for participation in

the Outdoor School program (Measure 99).

The recommendation for coding new programs is to establish a specific fund at the district level.

This may reduce the potential for ambiguity in the reporting of data.

Another advantage of creating a new district-level fund is the capability to use existing codes whereby,

if needed, the data can be easily disaggregated. For example, districts will not necessarily need to make

a choice between coding each new program to a new Area of Responsibility over coding to existing A of

R codes, such as A of R 320, which is used for Maintenance of Effort review for Special Education

programs.

Example for coding new programs such as M98 and M99 Grants:

FUND:

Create a new fund in either the General Fund or Special Revenue Fund

REVENUE:

Source code – 3299 (State Sources: Other Restricted Grants- in-aid)

EXPENDITURES:

Function – code to program

Object – code to service or commodity

Operational Unit – code to building level

Area of Responsibility – code to curriculum area as required by function

111

Appendix H – Every Student Succeeds Act (ESSA)

Appendix H

EVERY STUDENT SUCCEEDS ACT (ESSA)

Federal guidance for ESSA reporting is as follows:

“The per-pupil expenditures of Federal, State, and local funds, including actual personnel

expenditures and actual non-personnel expenditures of Federal, State, and local funds,

disaggregated by source of funds, for each local educational agency and each school in the State

for the preceding fiscal year.”

The challenge is to identify which expenditures can be reported by per-pupil spending. Based on

preliminary analysis of financial data from 2015-16, we have been able to identify expenditures currently

reported at district and school levels. This information allows each district the opportunity for review to

determine their standing with ESSA reporting.

The following charts identify recommended district or school level reporting. With these

recommendations, we leave the final discretion for reporting to the school district.

#1 – FUNCTIONS

Function

Function Description

Category

1111

Primary (K-3)

School

1113

Elementary Extra-curricular

School

1121

Middle/Junior High Programs

School

1122

Middle/Junior High School Extra-curricular

School

1131

High School Programs

School

1132

High School Extra-curricular

School

1140

Pre-kindergarten Programs

School

1210

Programs for the Talented and Gifted

School

1220

Restrictive programs for students with Disabilities

School

1250

Less restrictive programs for students with Disabilities

School

1260

Early Intervention

District

1271

Remediation

School

1272

Title I

School

1280

Alternative Education

School

1291

English Language Learner Programs

School

112

Appendix H – Every Student Succeeds Act (ESSA)

Function

Function Description

Category

1292

Teen Parent Programs

School

1293

Migrant Education

District

1294

Youth Corrections Education

School

1299

Other Programs

School

1300

Adult/Continuing Education Programs

District

1400

Summer School Programs

District

2110

Attendance and Social Work Services

School

2120

Guidance Services

School

2130

Health Services

School

2140

Psychological Services

District

2150

Speech Pathology and Audiology Services

District

2160

Other Student Treatment Services

District

2190

Service Direction: Student Support Services

District

2210

Improvement of Instruction Services

School

2220

Educational Media Services

School

2230

Assessment and Testing

School

2240

Instructional Staff Development

School

2310

Board of Education Services

District

2320

Executive Administration Services

District

2410

Office of the Principal Services

School

2490

Other Support Services-School Administration

District

2510

Direction of Business Support Services

District

2520

Fiscal Services

District

2540

Operation and Maintenance of Plant Services

School

2550

Student Transportation Services

District

2570

Internal Services

School

2610

Direction of Central Support Services

District

113

Appendix H – Every Student Succeeds Act (ESSA)

Function

Function Description

Category

2620

Planning; Research; Development; Evaluation Serv

District

2630

Information Services

District

2640

Staff Services

District

2660

Technology Services

School

2670

Records Management Services

District

2690

Other Support Services - Central

District

2700

Supplemental Retirement Program

District

3100

Food Services

School

3200

Other Enterprise Services

District

3300

Community Services

School

3500

Custody and Care of Children Services

School

4110

Service Area Direction

District

4120

Site Acquisition and Development Services

School

4150

Building Acquisition; Construction; Improvement Serv

School

4190

Other Facilities Construction Services

District

5100

Debt Service

District

5200

Transfers of Funds

District

5300

Apportionment of Funds by ESD

District

114

Appendix H – Every Student Succeeds Act (ESSA)

#2 – OBJECTS

Objects

Object Description

Category

111

Licensed Salaries

School

112

Classified Salaries

School

113

Administrators

School

114

Managerial – Classified

District

115

Sabbatical

School

116

Supplemental Retirement Stipends

District

117

Unused Leave

District

121

Substitutes – Licensed

School

122

Substitute – Classified

School

123

Temporary – Licensed

School

124

Temporary – Classified

School

130

Additional Salary

School

210

Public Employees Retirement System

School

220

Social Security Administration

School

230

Other Required Payroll Costs

School

240

Contractual Employee Benefits

School

270

Post-Retirement Health Benefits (PRHB)

District

310

Instructional; Professional; Technical Services

School

320

Property Services

School

330

Student Transportation Services

School

340

Travel

School

350

Communication

School

360

Charter school payments

District

371

Tuition paid to Public LEAs in State

School

372

Tuition paid to Public LEAs out of State

District

373

Tuition paid to Private Schools

District

115

Appendix H – Every Student Succeeds Act (ESSA)

Objects

Object Description

Category

374

Tuition paid to Other

District

380

Non-instructional Professional & Technical Services

School

390

Other General Professional & Technological Services

School

410

Consumable Supplies and Materials

School

420

Textbooks

School

430

Library Books

School

440

Periodicals

School

450

Food

School

460

Non-consumable Supplies

School

470

Computer Software

School

480

Computer Hardware

School

510

Land Acquisition

District

520

Buildings Acquisition

School

530

Improvements Other Than Buildings

School

540

Depreciable equipment

School

550

Technology

District

562

Bus Garages

District

564

Buses and Capital Bus Improvements

District

590

Other Capital Outlay

District

510

Land Acquisition

District

621

Interest, except bus garage, bus & capital bus impr

District

622

Interest for bus garage, bus & capital bus impr

District

630

Unrecoverable Bad Debt Write-Off

District

640

Dues and Fees

School

650

Insurance and Judgments

School

660

Depreciation

District

670

Taxes and Licenses

School

116

Appendix H – Every Student Succeeds Act (ESSA)

Objects

Object Description

Category

690

Grant Indirect Charges

District

710

Fund Modifications

District

720

Transits

District

790

Other Transfers

District