Education Resources Information Center - California School Accounting … · 2014-02-11 · the California State Department of Education has prepared. the 1978 edition of-the. California

DOCUMENT RESUME1 c .

ED 16 340 '

TITLE . California School Accounting Manual. 1978 Edition.INSTITUTION California State Dept, of Education, Sacramento.PUB DATE 78NOTE 155p. .

AVAILABLE PROM Publications Sales, California State Department ofEducation, P.O. iox 271, Sacramento, California 95802($1.65) 4 .

EDRS PRICE MF-$0.83 Plus Postage. BC Not Available froturEDRS.DESCRIPTORS Elementary Secondary Education; Glossaries; *Manuals;

Records (Forms); *Scholl. AccountingIpENTIFIE4S *California r

,,,......,

ABSTRACT' . ,- . (This edition of the manual. incorporates the 1 '7

amendments, which were'developed by the members of the Accountibv andBudgeting E(esearch committees of the California Associ tics ,

Department of Education staff. The amendments clarity he definitio

..

Business Officials in cooperation with the California tate

EA 011 263

and improie the methods of distributing direct hosts and direct "

support costs to programs, stress the importance of distributingdirect support costs and specify that indirect costs shall beallocated to all programs, and require the submission of acomprehensive supplemental annual financial report' that will display'the distribution of costs to/ all 'programs Rt the same time-(Author/IRT)

a

J ****************************ip************************** *************** Reproductions supplied by- EDRS are the best that an be made *

* - from the original document. *.*******************************************************************4***

so.

U.S. DEPARTMENT OF HEALTH,EDUCATION& WELF ENATIONAL INSTITUTE F

THIS DOCUMENT HA BEEN REPRO-DUCED EXACTLY AS RECEIVED. FROMTHE PERSON OR ORGANIZATION ORIGIN-ATING IT POINTS OF VIEW OR .OPINIONSSTATED DO NOT NECESSARILY REPRE-SENT OFFICIAL NATIONAL.INST ITUTEOFEDUCATION POSITION OR POLICY

CALIFORNIA SCHOOL ACCOUNTING MANUAL1918' EDFTION

t

..r

Officially approved by theCalifornia State Board of Education-in gletOdance with Education Code Section' 41010for 094.iired use by California public schools

Prepared under the direction ,of theLocal Assistance Bureau

wifin the cooperation of theCalifornia Assogiation of School Business Officials

2

"PERM, TO REPRODUCE THISMATER, IN MICROFICHE ONLYHAS BE GRANTED BY

_S-It / f-eLeTO THE EDUCATIONAL RESOURCESINFORMATION CENTER (ERIC) AND(ISFRS OF THE FRIC SYSTEM

-

-This Publication was edited and prepared for photo-. offset production by the Bureau of Publications,California State Department of Education, and pub-lished by the Department, 721 Capitol Mall, .Sacra-mento, California 95814.

PriAted by the Office of State Printing anddistributed under the provisions of the

Library Distribution Apt1.978

1/

Copies of this publication are available for $1.65 each, Plus 6 percentsales tax for California residents, frown Publications Sales, CaliforniaState CrUjaa rtment of Education, P.O. Box 271, Sacramento, CA95802. A list of other publrions that are available from the

ublicatDepartment, Selecte of the California State" Departmentof Education, may b tained) writing to the same address. .

I

3Jr%

FOREWORDI'

With the cooperation and help Of the California-Associat16n of School Business Officials,the California State Department of Education has prepared. the 1978 edition of - theCalifornia School Accounting ManLal for use in Calif public schools.' And the

. California State Board- of Education, acting undec the provision of Education Code Section410,10 on the recommendation of the Educational M gement and EvaluationCoMmission, has approved this new edition as the official manual for Calif,,prnia publicschool accounting.

The accounting procedures outlined in this official manual have To i ld tested OP thoseresponsible for California public school accOuntin We know that th fficials responsiblefor the accounting practices employed by California public schools a qualified to do,theirwork well. e are therefort certain that the work of these officia , as evidenced in theCalifornia School AcCounfing Manual, will meet with the approval of all of you who haveresponsibility for the operation of California's public schools.

,

L

Superintendent of PuPific Instruction

\tt

4/

me.

.1.

PREFACE

. 11

California school districtS arc required ,1),y law to prepare financial reports and annualbudgets that show all drposes for which the districts will need financial support. These-reports and budgets are ,prepared on forms prescribed by ,the. Supetintendent of Public-Instruction. The county supprintendefitS ',of schools are required to make annual financialrePorts. to the SuperintendentOf Public Instrulction whiCh shOW for each school district intheir Tespectivc.:Counties. the amounts expanded for each classificaiion df expendituredesignated by the Superintendent of Public Instruction.

The California Association of School business Officials has for a numbeof years been.cooperaling with the State Department olEduCation in the preparation of the accountingmanuals that have been published:ty the Department 'of -Education for uge by the schooldistricts and offices of the county superintendents, of schools. The first of these, Handbookof, Instructions for the C ification of School ExAendilures, was published in 1939. In thismanual the expenditure ,c1 ssificatiori and the instructions conformed with those beingemployed by the United tes Office of Education. This handbook containedOstruCtionsfort the classification of .expenditures, distinguished between supplies and equipment; anddefined accounting terms. A second handbook, The Accounting of Abatements ofSciloolRevenUe and Expenditure, was published in 1941.

In 1944 the first handbook was revised to contain the expendityre classifitation andprOledures then recommended by the United States Office of Education. This edition (Mllemanual, known as the California' School Accounting Manual, Parts I-IV, was then revised in1951 to secure additi5nal egregation of expenditure claSses and to 'provide clarification ofthe instructions. A' supple ental. guide, Supplement to ea lif rniti' School Accol LingManual; published in 1954, as devoted to general ledger and stos system accounting ato classification of income.

In 1957 the U.S. Office of Education published Financial Accountitik fcr Local and Stat,School Systems: Standard Receipt and xpenditure Accounts, which was intended asguide or nationwide standardization o accounting practices. Although certain Californialaws; practices, and. procedures made it impractical, if no4 impossible, to adopt ajl theprocedures recommended in that federal publiCation, in , 1961 the California SchoolAccounting Maroal was revised to comply with,as many of the federal recommendations asposgible. The 1961 revision of the Manual contained, four parts: "Income"; "Expenditures ";"Equipment, Supplies, IMprovement of Sites, Building Fixtures, and Service Systems"; and"Stores System Procedures, controls; and ActoUnting." *:

The 1964 edition of the Califojnia School Accounting Manual contained three new,partsdeveloped by accounting committees of the: California Associ. on Public,.School BusinessOfficials: " eneral Ledger Accounting," "Program Cost ccounting," and "AccountinigTerminology.

In 1966 t e Ca r. fa. School Accounting Mignual, Part I, "Income," was revised toprovide income nts for the Many new federal progrAms.

The 1968 and 1971 editions served to:updafe the 1966 edition. .

A revised school accounting system was prege ed in the 1973 editioaQf the CaliforniaSchool Accounting Manual -Procedures and c es were established fo. accounting ofincome and expenditures by objecLrathe,r th ey function. The new manual provided

.- V

5

maximum flexibility, as the object,- accounts could be combined in any number of ways toilluminate prograrti expenditures

.The 1936 edition of :the allfidornia' School Accounting Manual` methods

account for income and expenditures in instructional and support programs. Account codesand required accckuntint and repoiting procedures were inqodu6ed in Parts 1, II, III, and IV,

(and procedures for stores systems and general ledger:accounting were presented inPartsjV.and yi.

. This edition of. the California. School Accounting Manual incorporates 4the 1977amendments, which were developed by the members of the Accounting and BudgetingResear'ch committees of the California Association of School: Business Officials tincooperation with California State Department of Education staff. Upon rgcommendation ofthe Educational Management and. Evaluation Commission, thee California State Board ofEducation approved the amendments in accordance with Education Code Section 41010;.,

..

The amendments do the following: .,.....

.

'1.- Clarify, the definitions and improve the methods of distribiaing direct costs arid directsupport' costs to programs.

2: Stress the, importance of distributing direct support costs, ands.specify that. indirectCosts shiill be allocated to all progriins. 4 : ,

3. kequire the submission of a Comprehensive su pp lemntal annual financial report(Form J-41A) which will display the distribution of costs to all programs at the sametime. This repOrt will replee several separate repOrts previously requited.

These amendments are' effective for the 1978,75; fiscal yeas. and the annual fifmcialreport for all programs. Form 141 A , Wili he (1' P Ser/.1 t""T 1! , 1 Qt79, hard ( 11 t10.3e

provisions.

, ..

4VILLIA,M D. WlilIFN'Ecv,Deputy Superintertden,fir id,,,irlictrat;,,,. . 'a

1

JACQ.1F, T. ROSSAvockne FupIrefine!dertj au

ti

r41.4

1.,

"soCONTENTS

:t.

" Page

Xoreword '. . , iiireface .. v

INTRODUCTION ,.4-

Special eatures of SChool Accounting ,A,-', xi;

,

WI assets Records xiiWg-term Liabilities a. % xii u.

..NRevenu xii '-

E ditures xiiAppropriations 41, . igii

'Fund Balance KXiiiil "174

-.. Encumbrances .

FundsClassification of Funds

xiii

i'4 xiiixiii

.....

BucleBooks of Original Entry

PART I FINANCIAL RF.P012 TTN(; 1, 1

Annual Financial and Budget Report ,, : ... 1-1Supplemental Annual Financial Report I-1Exhibit IA: Annual Financial and Bti et Report, Income by Source 1 2Ehil?it I-13: Annual Financial and Budget Report, Expenditures

iii, Obj,ct -1-4Exhibit,;K: Annual Financial and Budget Report, Expenditures

by Fieogram : N. 1-8Exhibit 1-D: Program Classification Definitions , 1 -10Exhibit 1-D-1: Normal Object Classification ..of Expenditures by Major

Program Functions 1-15'Exhibit 1-E: Supplemental Annual Financial Report,

Part IGeneral Fund (Form No. J -41 -A) 1 -19Exhibit 1 -F: Sample Program Budget . . . *Itt .. 1 -21

PART 11 INCS)ME 1,}4

$Classification of Income II-1eInstructions for-Using Incc4ne Classifications II-1Miscellaneous Funds 11-9

Royalties and Bonuses . 1 r '11-9Rentals . 11-9Income from Property Not Subject to Tax i 1-9Payments in Lieu of Taxes .._y , Sk II-

Abatement of Income 1,1-9

Adcounting Procedure.Income

Accounting for Certain

III EXPENDITURES

pporti Ments (Loans),

4--General Instructions %., aSection A Objects of Expenditure ClassidZations, Their Content,

and Instructions.Regarding Their Use . . i. -Section B Direct Costs, Direct Support Cos(, and Indirect Cost Distribution

Direct Costs- .. . .,Direct Cost Prorations

Holding Programs *ITwo..or More Programs

Direct Support , ,

Description of MethodsApplication of Methods NO

--+6.4.Special Projects "'N.. Instructional Support

Pupil ServipesGeneral Support . ..

Auxiliary ProgramsIndirect Support

-,4.

4.

.,

. .

''

II-10II-10II-10

III-1

111-2

111-311I -1 /III -12III-13111-13111-14111-14Ill- 1 4III-16111-16111-16111-16111- I 7111-18111-18

/7

Interprogram Charge and Credit TransferProcess'

, ... ... JII-1 8Indirect Costs Distribution r, III-19

Section C Miscellanequs Account7i Procedures 111-22C6operative Projects 111-22Special Education Mister Plan 111 -nAccounting by Fads \ 111-23

Bond Interest and,Reclempticm Flind v 111323Building Fund . - . 1n-213Special Reserve Fund . . . . ..... . . . .. III-23

) State School Building Fund ... .......... 111-23 .Cafeteria Fund - 111-23Child Development Fund V' ,' III-24Development-Centers for the Handicapped Fund I 1- III-24

C Other Special Funds . :; .- 111-24

4,Accounting for Stores ' 111-24AbaterT4nts of Expeoditures -..

Accounting Instructions for Abat ments,Use of Contra Accounts' . -------Relationship'bf Abatemero Of Expenditure to Appropriation Control

4, 111 -25

Principal Types of AbatemVnts of Expenditure . ,..;,'T: III235hibit III-A: Analysis of Salaries - ..

PART IV SUPPLIES AND CAPITAL OUTLAY, INCLUDING EQUIPMENT,

111-27

SITES AND IMPROVEMENT OF SITES, BUILDING FIXTUR'ES, ANDSERVICETEMS

''s. --lis. /.

Cri eria for Distinguishing Betwee:rSupplies and Equipment IV-1 1,---

Criteria for Identification of Capital Outlay , ... IV-2 'Eiquipmerit , IV-2New Sites and Improvement of Sites

:IV-2 \c IV-2

)

?

.,.

Buildings..# ivl

8 ----f . \

.

ImprOvement of BuildingsBuilding Fixtures

4" Service Systems rCriteria for Identification of Building Fixtures and Service Sy stewPurchase, Rental, Ukase, or Leawith OptiodtO Purchase

List of Supplies, Equipment, Improveinent of Sites, Byildingand Service Systems

1PART V STORES SYSTEM PROCEDURES,, CONTROLS,AND. ACCOUNTING , , .

1

Optional Methods of Financing, Accounting, and Controlling V-1 ''''Stores Account 1Viethod , V71Revolving Fund Method .. V-1. N._Types of Supplies in a_S-tores System 1 V- I

E entialsof a Stores System . V-2evices for Control of Purchases .- V-2

Records of Perpetual Inventory V-2Verification by Physical Inventory . . ... . . . . V-2Security Control, and System of Internal Checks ---1 V-2Planned4Procedupes for Receiving and Issuing . - V-2Lines of Authority and Responsibility of Personnel \ V-3

Accounting for a Stores System %.

1-'V-3I Stores Account Method 1 - V-3

Revolving Fund Method ..:. V-4Typical Costs of Receiving, Warehousint, an Distribukirr\iyi--,

in Connection with a Central Stores Syste i - V-42 /,

. <

PART VI d'ENERAL AND SUBSIDIARY LEDGER ACCOUNTING VI-1

IV-2I V -2IV-2IV-2I v -3

Definition of Genefil 14edger AccountingGeneral and Subsiiiiaqi LedgersGeneral Ledger Aas,6untsGeneral Ledger Procedures

1

VI-1VI-3VI-

Opening the General Ledger VI-Recording the Approved Budget-Income VI-9fteco.rding the Approved Budget-Expenditures V-1-11Recording the Approved Budget-Reserves .... V1-15,Recording Encumbrances- . J' VI-17Recording Income and Other Cash Reteipts VI-22Recording Expenditures and Other Disbursements-Salaries VI-25

'Recording Expeaditur& and Other .Disbursements- Other VI-27

- Recording encumbrance Adjustments-Ot er than SalariesRecording Encumbrance Adjustritents-Saries VI-29

VI-30Recording Other Adjustments VI-31Closing the Geneal Ledger VI-33

Prepaid-Expenses VI-36Ac ounting for Stores VI-37

1 Ledger Accounting fbrMsuilding Funds VI-39

PART VII ACeOUNT1ING TERMINOLOGY VII -1

PART VIII DATA PROCESSING TERMIN LOGY

410

a

INTRODUCTION

Today we are in the midst of a great upsurge ofpublic interest in school programs, budgets, and --

,,finance.' Schools are performing new services thatieviously were not part of public education. In

this environment educators need..tools to interpretethicational( programs to their communities and tolegislators. Some of the needed tools are preciseaccounting terms that are easily understood, Thesetools enable educators to highlight the mayprograms in a SchoOl systeni and to relate theseprograme,,o, thplir costs:

befintilve costs such as teachers' salaries are easyto unatstand; however, they give only part of thefinancial picture. The other part is the activity orgogram, comprised of object expenditures Lich as1Extbooks and supplies. These , objects are' iStir-,chased and are charged to the program tliey serve.This procedure is known as accounting bii prof-gram, program accoupting, or program cost

. accounting.Parallel to program accounting as a concept fi

program budgeting, defined as a grouping of pro-poied expenditures and-antihated income acbord-ing to the series of activities or program they areintelded to support. When objects of expenditureare so grouped, they form a program expenditurebudget. After .expenditures have been made, theymay be analyzed according to the same objectclassificatibna,used in the inogram,budget to give acomplete picture of the program as budgeted andas actually carried out.

A program budget lists and summartzes what isneeded to accomplish program aims. 'The numberof teachers is determined, and their salaries, areestimated. Tbextbooks, supplies, equipment, andother requirements are listed along with their costestimates. The total requirements constitute theprogram expenditpre budget. This process pro-duces a list of tibjects of expenditure that is

.,A .Pte

meaningful to e ucators; Arn,: governingboards, legislators, and th4yornniimity. 'lus, withvarying degrees of refinement, the prograiOudget,ing process is essentially .nne-. of listing thil'objectsneeded to accomplish'7tlie program's aims., Thisprocess islitanitly used by school districtst9ceiv,

. .1ing categoric 'd. r.

This accounting manual ptsents' a format forcollecting and presenting S'ta th*can be 4,sed in avariety of 'ways to erve thicedlOational purposesof school and.. the: state. The, manualprovides maximu td' distriets "Iilecauseits object accounts can* combined in any' numberOf lays to illuminolse..inany different kinds . ofprograms. The distiidt;defirtts its prograMs.and thedistrict deeideS. ekactly'hilW.Object items.arieto becombined. Therefore,.:the... accountIng man pro-vides the flexibility to. budget,. afcaunt fthi, ;andreport the costs of whateViet progtains are operatedin California school districts:.

4

xi

Special Features of School Accounting414

Funpfamental principles of acaun, g. theoryapply to governmental accounting,,in5lud publicschool accounting, as well as to, co'. ercialaccounting. The basic principles are as,fdlOws:

Uniform nomenclature, adequate to satisfy tech-nical requirements jrset, understandable to thelayman, should be used.

Data should be organized in a manner conduciveto prompt and accurate pyeparation of reportsand financial statements.

A double entry set of accounts should bemaintained on a modified cash basis,

The accounting, system should be organized in afanner that' will faCilitate an efficient prepa-

, ratinn of tie periodic audit. '1,4

10

f

G.

,

The records shoulditelp guarantee than expendi-tures will be Ake according to legislative,administrative, and governing board intent.

Data should 'be organized to facilitate thepreparation of future budgets.

The , special features of schooI,accountingpresented and discussed in this section.

Fixed AsSet Records

Although the fixed assets of a school dkstricthave lift bearing.on a district's solvency, recordsof fixed assets .4e.g., investments in land, groundimprovements, buildings, and equipment) shalt bemaintained in accordance with Education. CodeSection 35168. The records provide basic inform'a-lion for? administrative control and insurancevaluation) .

Fixed asset accounts should be charged withcapital outlay expenditures from all funds eithercurrently ore by a summary entry at the end of each\fiscail year. At the same time, a reserve account

ntibted "Investment iri Fixed Assets" should becredited with a like amount. Fixed asset retire-rnpnts and adjustments are treated in a simiar

. manner by appropriate charges or credits to theseaccounts. .

Depreciation records on fixed assets generallyare not maintain_ ed in tax-supported agenciesexcept in the blic utility type of agency.Memorandum preciation records may be main-tained if desired to reflect future liability for fixedasset replacement.

.... ,..,

Lo -term..

rm Liabilities

long-teirn financing of a government unit isdifferent from privagb enterprise in that the b

rnds

issued by a business concern are usually secured bythe, fixed assets of the issuing concelin. Govern-

abi of the school district to raise moneyisirne a % l bonds are 'dependent for security upon the

rilithrough taxation.'

t Bonded debt accounts are maintained by thecounty auditor, and data are usually furnished theschool strict annually regarding the budget

'requirements for the Bontl Interest and Redemp-tion Fund, Ii6wever, school districts should keepmemorandum records of the bonded, debt in order

`to hive at hand 'complete data 'regarding suchindebtedness present and future tax requirements

for bond redemption and interest, and potential,additiOnal boirding capacity of the ditrict.

Revenue

The National Committee on MuniCipai ACcount-lhg defines revenue as "additions to assets whicho. not increase any liability, nor represent the

recovery of an expenditure, nor represqnt thecancellation of liabilities without a' correspondingincrease in other liabilities or a1decrease in assets,"Furthermore, it notes that ,"revenue refers to anincrekse in the net resources or sutpius of agund."The ,ommittee also points that not allincreases in the net resources of a particular fund"result in an increase in the net resources of themunicipality as a whole; since , the resources ofanother fund may decrease correspondingly."

Fund revenues are ordinarily, classified as tosource, such as federal subvention, state apportion-inents, or district taxes.

Expelbelitures

Expendititres represent charges against apprppri-,ations. If the accounts are kept on the accrualbasis, the term expenditures 'includes total chargesincurred, whether paid or unpaid. When theaccounts are kept on a cash basis, the term coverconly the attual cash dishrrsements.

xii

Appropriations

appropriation is, an allocation funds,income, or estimated income made by e govern-ing board of the school district . for specificpurposes, usually limited as to the time when itmay be expended. d

Appropriations made by the governing boardauthorize the school district to spend certain sums,of, money for definite a'tivities. An appropriationspecifies 'in some detail the exact purposes forwhich expenditures may bee)nade, the amount tobe spent, and the period of time during which theevenditures are to be made.

Even though expenditures are carefully planned,changes in appropriations are sometimes necessary.Certain contingencies may arise that require addi-tional appropriations. A contingent reserve (Appro-priation for Contingencies) is provided from whichthe governingboard may authorize transfers to4

11 v

%.

,

activities for which insuffitient funds were- pro-vided in the ori al appropriation.

Encumbrances

In' order to kiep commitments within thefinancial plan, Obligations in the form of purchaseorders or contracts that are to be met from anappropriation are recorded as a restriction of the,appropriation balance. By this means the aciminis-"-tration has a control to prevent the overexpendi-ture of an appropriation.

When encumbrances are not formally enteredagainst the appropriation account, it is possible toapprOve commitments that may exceed theamount allocated to the appropriation. The obliga-tions cease to be encumbrances when paid.'

Fund Balance

The term fund balance, with suitable qualifica-tion, is employed to denote the excess of assetsover liabilities or, at other times, excess of re-sources over the sum ok obligations, reserves, andunencumbered appropriations. -*

FundsThe National Committee on Municipal Account-

ing defines the term fund as: a "sum of money orother resources (gross or net) set aside for thepurpose of carrying on specific activities or attain-ing certain objectives in accordance with specialregulations, restrictions, or limitations _anZI consti-tuting an independent fiscal and accountingentity.". Thus, the accounting strucQ.ire of a fundmay include all the usual general ledger accounts:el., assets, liabilities, fund balance, income, expen-ditures, appropriations; and encumbrances. Therecords may or may not be physically separatedfrom other funds, but the fund will be a completeand separate entity yielding distinct financialreports. In a number' of cases, specific expendituresmay be legally made from two or more differentfunds. In a few instances, the law authorizestransfers frOm. one fund to another by resolutionof the governi4 board.

Classification of Funds

The number of kinds of funds authorized bylawmay vary from time to time. In addition to the

I

General Fund, some of the typical. funds used byschool districts are the Building Fund, State SchoolBuilding Fund, and Cafeteria Flind. However,taldng into account the restrictions involved ineach (und, the greater the 'number of funds, themore the financial; administration becomes.Therefore,'in the absence of legal rbquirements, theoag tional unit should establish as few funds asppssibl

Budget

The budget is a proposed plan of expenditures'and the means of financing these expenditures,taking into account 4the necessary legal require-rnents. The annual financial 6d budget reports arefiscal documents exhibiting_ actual income andexpenditures of prior fiscal years, the proposedapptopriations for-expenditures, and the proposedsources of income to meet these appropriations forthe succeeding fiscal year in every fund of theyschool district.

Books of Original Entry

Transactions of several kinds are recorded indocuments such as apportionment notices, cashreceipts, deposit records, requisitions, purchasorders, warrants, and warrant registers. Thedocuments should be employed for direct osummarized posting to ledger accounts. Theyshould indicate the accounts affected by account.name or number.

. .

Documents that represent transactions of anyone kind and that are numerous and regularly

...recurring are usually, recorded consecutively andchronologically in specialized regiters. These regis-ters are employed for the accumillation of totals Ofa number of similar transactions- to reduce thenumber of postings to general ledger accounts.

Every accounting system needs a journal oxsystem of journal vouchers, other than., specialregisters, for the first. formal Y.ecording of thoseinfrequent entries for which no other provision ismade; e.g., opening, adjusting, and closin tries,and for posting to .,ledgers. Standard, commercialfOrms are suitable in many cases.

-

Nib

To meet thc state's legal requirements goven3ingthe submittal of school district budget and fman-cial information; school districts must sUbhiit twobasic fiscal /reports at the end of each yeartheAnnual Financial and ,udget Report, Form J-41,and the Supplemental Annual Financial Report,Fori J-41A.

P rtl.

Financial Reporting

IArmual Financial and Budget Report

The Annual Financial and Budget Report hthree distinct .sections: (1) Income by Solirlsp 2)Expendittlres by Object; and (3) Ekpenditur s byPrograrh. Each section shall co twin data for thepreceding fiscal year (acttiV)Aie last completedfisCal year (actual); aid to ensuing fiscal year(budget).

1 Income by Source. The Income by Sourcesection is used to itemizmeginning Balance,Income by Source, and Incoming Transfers. Asample reporting document is illustrated inExhibit I-A.'

2. Expenaitures by Object. The Expenditure byObject section is used to itemize the variousclassifications of Expense, Other Outgo, andEnding Balance. A sample reporting docu-ment is illustrated in Exhibit I-B.'

3. Expenditures by Program. The Expenditures1 . by Program section is useh to summarize the

costs of Instructional Programs, Support Pro-grams, Auxiliary Programs, and Other Outgo.A sample reporting document is illustrated inExhibit I-C.' Program clastfication defini-tions are given in Exhibit I-D.

Supplemental Annual Financial ReportThe s plemental Annual. Financial Report, /-

E, provides for a comprehensive reportwhich' displays the distribution of costs to allprograms at the same time. This report alsore places Various separate reports pfeviouslyrequired.

A Sample Program Budget form is given inExhibit I-F. Districts will find the use of .his formhelpful in the development of costs for programsand special. projects. When completed, the budgiedocument should show projected expenilitures byprogram or project and income by source of funds.

Districts should use the preceding year's indirect"cost rate in t e development of the program or.project budget. se.

'The actual Annual Financial and Budget Report document con-tains more specific information and instructions.

Exhibit I-A Incothe by Sources-

ANAUAL FINANCIAL AND BUDGET REPORT

\

BEGINNING BALANCE, JULY 1Cash in County treasuryCash in Bank(s) (E.C. 52613 or 52704 orgy) 1Revolving Cash Fund (E.C. 42800 42805, 42810)'Cash CbIlectiOns AWaiting Deposit-(E.C. 41061-41021)Investment% (at cost; EF. 410155Accounts Receivable (reported on Form J-43-A)Stores k

Prepaid ExpenseOther Current AssetsTOTAL CURRENT ASSETS

Less: Current Liabilities and Deferred Income (reported onForm J-43)

NET BEGINNING BALANCE (must agree with Net Ending'.-Balance reported for prior year)Adjustments to Accounts ReceivableAdjustments to Current LiabilitiesADJUSTED NET BEGINNING BALANCE

AM%

INCOME BY SOURCE8100-8400 Federal Income6110 Maintenance and Operations (P.L. 81-874)8120 Veterans' Educition8130 School ConstRiction (P.L. 81-815)8140 Education Professions Development Act

(P.L. 90-35)8150 Economic Opportunity Act (P.L. 86452)8160. Elementary and Secondary Education Act

(P.L. 89-10)8170 Comprehensive Employmbnt arid Training Act of 1973

(P. L. 93-203)8210 National Defense Education Act8220 Child Nutrition Programs.8230 Manpower Development and Training Act

of 1962 (P.1., 87-415)8240 Vocational Education Amendments of

j 1968(P.L. 90-57q)8310 Forest Reserve Furlds8320 Flood Control Funds .

8330 U.S. Wildlife Reserve Funds8480 "Miscellaneoui Funds"8490 Other Federal Income

Subtotal

;IP

1 8500 Combined Federal and State Income8530 Children's Centecs8680 "Miscellaneous latihds"8590 Other State and Federal Income

Subtotal

Precedingfiscal year(Actual)Col. 1

3

J

Lastcompleted r Ensuingfiscal year fiscal year. (Actual) 1., (Budget). 2 Col. 3

XXXXXXXX

V

ti

s.

8600 State Income8610 ...,Principal Apportionment862D, Special Purpose Apportion meat8630 Special Allowances C8640 AppoTtionment for School Facilitiet8650 Apportionment for Children's Centers8660 Apportionment for Development Centers8670 Tax Relief Subventions N./ ),..,

8680 "kliscellane s Funds" :i8690 Other State income

Subtotal

."

8700 ,County Income8710 Community College Tuition Tax8720 Equalization Aid Offset Tax8730 High School Tuition Tax:#740 County School Tuition FundtI750 Contract Services8760 County School Building Aid8780 "Miscellaneous Funds"8790 Other County Income

Subtotal

8800 Local Income8810 District Taxes.8820 City and County Taxes8830 Areawide Taxes8840 Sdles

8841 Sale of Bonds8842 Sale of E ipment and Supplies8843 Sale of Land and Buildings8844 Food Service Sales

r 8845 Sale of Publications8849 Other Sales

8850 Rentals and Leases8860 Interest8870 Fees and Contracts8880 "Miscellaneous Funds"8890 Other Local Income

Subtotal :

8900 Incoming Transfers111610 Junior High School Tuition8920 Other Tuition8930 Interfund Transfers8990 Other Incoming Transfers

Subtotal

TOTAL INCOME

TOTAL, NET BEGINNING BALANCEAND INCOME

S-77995

Exhibit I-A (Continued)

Las*. . .Preceding completed Ensuingfiscal year fiscal year fiscal yeak(Actual) (Actual) (Budget)Col. 1 Col. 2 Co! . 3

SI

15

dre XXXX

Exhibit I -B Expenditures by Objects

J

ANNUAL FINANCIAL AND BUDGET JtEPoRT

EXPE ESITURES BY OBJECT4 \ 111110

.I 'I

1000 .ertificated salaries1100 eichers' Salqries1200 School Administrators' Salaries*

%

1300 Su rs' Salaries ,,

1400 ibrarian Salaries .1500 Guidance, elfare, and Attendance Perstnnel

Salaries1.600 hysical and Mental Health Personnel Salaries1700 uperintendents' Salaries

.1800 her Certificated Salaries of District and Countyinistrative Personnel 4 ... .

1900 Other 'flatted Salari sSubtotal ....

.LastPreceding completed Ensuingfiscal year fiscal year. fiscal year(Actual) (Actual) (Budget)

CdP1 Col. 2 Col..3

ON

2000 Classified Salaries2100 Instructional Aides for Direct Teaching Assistang

Salaries`'2200 Classified Salaries of County Superintendents' Offices

and District Adminstrative Personnel2300 Clerical and Other Office Personnel Salaries2400 Maintenance and Operations Personnel Salaries2506' Food Service Person* Salaries2600 Trimsportation Personnel Salaries2900 Other Classified Salaries

Subtotil

3000 Pmployee Benefits3100 State Teachers' Retirement System Fund3200 Public Employees' Retirement Fund3300 Old Age, Survivors, Disability, and Health Insurance3400 Health and Welfare Benefits

3410 Health and Welfare Benefits for TeaChers andInstructional Aides

3420 Health and Welfare Benefits for All OtherEmployees

3500 State Unemployment Insurance3510 Unemployment Insurance for Instructional

Aides3520 Unemployment Insurance for All Other

Employbes 4,,.3600 Workers' Compensation Insurance3900 Other Benefits

Subtotal

4000 Books, Supplies, and Equipment Replacement4100 Textbooks4200 Other Books

1-4 /6

-4

4000. Books; Supplies, and Equipment fteplact!ment (Continued)4300 Instructional' Matbrials and Supplies4400 instuctional Media Materials and Supplies4500 Other SUpplihs4600 Pupil Transportation Supplies4700 Food Services -

.-710 Fond .1?

4720 Meals for Needy Pupils7 4790 Other

4800 Equipment ReplacementSubtotal

),5000 Contracted Services and Other Dating Expenses5100 -Contracts for Personal Services5 00 Travel and Conference Expense5 0 Dues and Memberships

0 Insurance5410 ire and Theft5420 Liability Insurance`5430 Fidelity Bond Piemiums5440 Pupil Insurance

5 Utilities and Housekeeping Services5600 Contracts, Rents, and Leases5700 Legal, Election, and ALidit Expenses5800 Expense for Administrative Districtwide Operation

and Other ServicesSubtotal

6000 Sites, Buildings, Books and Media, and Equipment6100 Sites and Improvement of Sites6200 Buildings and Improvemerlt of Buildings6300 Books and Media for New or Expanded School

Libraries6310 Library Books6320 Library Materials

6400 Equipment6410 Audiovisual Equipment6420 Library Equipment6430 Food Service Equipment6440 Pupil Transportation Equipment§490 All Other Equipment

Subtotal

T AL EXPENDITURES (1000-6000)

\\.17000 Other Outgo

7100 Debt Service7110 Annual Repayment on Account of Public

School Building Apportionment

N

Exhibit I-B (Continued)

, -

Last .4 'Preceding completed Ensuingfiscal year fiscal year fiscal year(Actual) & 4ctual)

A..(Budget)

Col. 9 CoL 2 Col. 3- /

_

I-5 ..

Exhibit B (Continued)

..7100 /I Debt Service (Continued720 Annual'Repayment on Account of State

School Building Apportionment7130 Bond Redemption7140 Bond Interest and Other Service-Charges-7150 Repayment of State Schbol Building Fund

Aid by Watrant.tO the State Treasurer forBond Sales

7160 Payments ieOtibinai:DiStrictior Acquisitionof froparKiKf, .

7190 I .

.9

7200 Outgoing Tran.$10$::?;" ,.... .

7210 Juni& Iiigh SehO GrTmitiOn for rades Seve.n. ..,and Eight ...I. , , : Lj, . .1-:-

7220 Tuition Under interdistrietattandarIce:''agreements for general or specific~;;in mcikonat'arvick, including.

station, for designated pupils7230 ..0iijifiiiiiin provided in a tUberculosis or polio ,

eicf: hOsiiiitel, or sanatorium maintainedt- '..- yS county or group of counties

7240.. Tuition and transportation otchildrenattending classes for physically handicapped,educationally Andic pped, multiple handi-

i capped, and mental) retarded maintainedby a county superinte dent of schools,and/or other school 'di icts

7250 Tuition paid for current e nses toregional occupational centers or programsoperated by other school districts, countysuperintendents of schools offices, andregional occupational centbrs operatedunder a toint powers agreement

7260 Tuition paid to rgionaroticupational centersor regional occupational programs for capitaloutlay expense only

7270 Tuition paid for nonimmigrant children,noncitizen children, and children residing infoster homes and children's institutions

7280 Tuition paid for the education of exceptionalchildren for whoni no appropriate specialeducation facilities and services areavailable or can be provided

7290 Other Tuition7300 Interfund Transfers

7310 From the General Fund to the ChildDevelopment Fund ag,nd the DevelopmentCenters for Handicapped Pupils Fund

7320 Between the General Fund and the SpecialReserve Fund

Precedingfiscal year(Actual)

5. .

a

\1..asVcompletedfiscal year(Actual)

Col. 2(Budget)

Col. 3

***

nsu/ngfiscal year

7300 Interfund Transfers (Continued)7339 To the Public Schofil Balding Fund or to the

State School Building Fund from all otherfurids of the district, any monies of thedistrict which are required to be expended'for the projikt for which such apportion-.ment was made

7340 From the Bond Interest and Redemption funds,after all principal and interest payments havebeen made, tothe General Fund

7390 Other authorized interfund transfers7400 Other Transfers

7410 Transfers from funds of lapsed or reorganizedschool districts to another school district

7420 Transfers to the County School Service Fundfor the education of mentally retarded itminors

7430 TranSfers to the County SchoolService Fund for special education students

7900 Appropriation for Contingencies XXXX XXXXSubtotal

Exhibit I-B (Coriiinued)

LastPreceding completed-fiscal year fiscal year(A c tual ) '(Actual)

Col. 1 . Col. 2

TOTAL EXPENDITURES, OTHER OUTGO, ANDAPPROPRIATION FOR CONTINGENCIES

ENDING BALANCE, JUNE .301. Cash in County Treasury2. Cash in Bank (s)3. Revolvingfcash Fund4. 901s h Collections Awaiting Deposit5: Investments (at cost)6. Accounts Receivable -3

7. Stores8. Prepaid Expense9. Other Current Assets

10. General Reserve, June 30 .

TOTAL CURRENT ASSETSLess Current Liabilities (reported on Form J-43)

NET ENDING BALANCE

TOTAL EXPENDITURES, OTHER OUTGO, ANDAPPROPRIATION FOR CONTINGENCIES PLUSNET ENDING BALANCE

XXXX XXXX

if

I1

19

.Ensuingfiscal year(Budget)

Col. 3

A-7

, t

-Exhibit Expenditures by Prograni

ANNUAL PINXN'CIAL AND BUDGET, REP r

INSTRUCTIONAL PROGRAMSGfrieral Education:

PreformalElementarySecqridaryRegional Occupational Centers or ProgAdult

Total General Education

Total Specil\ EdUcation\J

1,TOTAL INSTRUCTIONAL.PROGRAPI

SUPPORT SERVICE PROGRAMS (DIST ICT TOTALS)

Special Projects (Federal and:State Categorical AidPrograms)

Instructional Support:Instructional AdministrationInstructional Media s

School Administration

Total Instructional SupportPupil ServicesGeneral Support:

District and County Superintendents AdministrationMaintenanceOperationsTransportation

Total General Support4r

TOTAL SUPPORT SERVICE

AUXILIARY PROGRAMSCommunity ServicesFood ServicesFacility Acquisition and Construction.

TOTAL AUXILIARY 15ROG1 AMS

TOTAL INSTRUCTIONAL PROGRAMS, SUPPORTSERVICE PROGRAMS, AND AUXILIARYPROGRAMS

1-8

LastPreceding completedfiscal year' fiscal year.(Actual) (Actual).

Col. 1 I Col. 2

20 ,

S.

Ensuingfiscal year 1

(Budget) .

Col. 3 -

4 a

I,

. -; OW 'N..'

. I

Last C-,.../-

... Preceding - _'..1-completec#1 suingC/ fisca7 year fi I year fiscal year

(Actual) (Budget) ' c

-.I..

( ltul.a I)

Col. 3,OIHER OUTGO ..

Col. 1

Iuitioer . , -/ 4 -

Exhilpit I-C(Coptinued)

All Other Outgo

TOTAL OTHER OUTGO

Apbropriation For Contingencies

Net Ending Balances

GRAND TOTAL, EXPENDITURES FOR INSTRUCTIONALPROGR MS, ?PORT SERVICE PROGRAMS,AUXILIARY

SPORTRAMS, .0THER QUTGO, AND NET

ENDING BALANCES

"NA

mesemmesigmeceinel7e

XXXX-' XXXX

1-9

Exhibit I-D

J

4

. tPRO.GRIM CLASSIFICATION DEFINITIONS'

Nr.

.The following definitions aretapplicable to the

aprogram categories shown in Exhibit 1-,C: d'). .... *

1Instructional Programs

General Education. The general ,education iitstructional programs include prefortnel, elemen-tary,tary, secondary, regional occupational centers orprograms, andadult education.

,General education' instructional programs areinstructional activities -designed primarily o pre-pare pupiti for the common activities as ci s,including occupatiorial preparation. Direct instruc-tional program charges include salaries of teachers,including a ounts paid for chairing an academicdepartment; .es' .salaries; employee benefits;textbooks; s uctional supplies;- equipmentreplacement on a iece-for-piece basis; and newequipment. ,

Examples of services excluded as direct chargesto -instructional programs araintenance ofequipment (to be charged to the maintenanceprograml; field trips (to ;be charged to the trans-portation.program); and/custodial services, utilities,and so forth (to` be /charged to the ..operations

cprogram). . .

For exceptions to these examplps, see thediscussion 'under Special Projects in this section..

Special Education. Special education instruc-tional programs are dire'ct instructional activitiesdesigned primarilik to deal 1th, special pupilcharacteristics of an exceptional nature. The activ-ities are the same as for general education.

Transportation of special education pupils is tobe a direct charge to the transportation programand subsequently transferred to the appropriatespecial education program as a direct support cost.

Life or Grade Span .

Preform I means those programs and servicesprovided y the district for children of prekinder-garten age.

Elementary means those programs and servicesprovided for pupils enrolled in kindergartenthrough grade six or kihdergarten through gradeeight id unified districts, and kindergarten throughgrade eight in elementary districts.

Sec means those rograms aed servicesprovided or pupils in grades even -through telveor yr through twelv4 in unif d districts,.arades,nine through twelve- in high school districts, orgriadts seven through twelve in high school districvmaKtaining jnior high schools.

Regional, occupational centers or programs.(ROVROP) means those vocational or technicaltraining programs and services provided as defined'in Education Code sections 52300-52330 andCalifornia Administrative Code, Title 5, Education,sections 11500-11508.

Adult means those programs, and serices pro-vided for adults, as defined in Education CodeSection 52610 and California Administrative Code,Title 5, Educat on, sections 10500a-10591.

Support Service Programs

Special Projects

Special projects are projects and programs thatmay Nave their own project directprs; are approvedand funded by state, federal, of private agenciesand requke special project budgets and audits; andmay require. financial reports. They usually areentirely in support offan instructional program oranother support program. Direct charges shall bemade to a special project when the expenditteclassification has been expressly funded by thedonor.

The charging of donor-authorized costs directlyto special projects means that he district maynever have available the total expenditures madefrom all funds for various support items such asadministration, pupil services, operation, main-tenance, transportation, and so forth. Although itis not required for state reporting, the distill%should display at the end of the fisCal year thetotal expenditures in each of these supportcategories by summarizing the expenditures madefrom general support and categorical aid support;this activity would be most helpful for localmanagement purposes.

Special projects include, but are not limited to,the following programs:

1. arly Childhood Education

2. AmeriCari 'Indian Early ChildhooacEdu-catipn

3. Educationally Disadvantag Youth Prck_awns

4. Miller-Unruh Basic, ceding Act5. Bilingual-Bicultural Ed cation6. Vocational Education A7.- Elementary and Secdndary ucation Act,

Title I (Regular; Negl ed and Delin-quent)

8. Elementary and Secondary Education Act,Title I V-B

9. Elementary andTitle IV -C

10. Elementary and Secondary Education Act,Title VI

11. ikomprehensive Employment and TrainingAct

ondary Education Act,

Instructional Support

Certificated or classified er(ployees assigned toinstructional support programs may not &a classi-fied as teachers or instructional aides.

Instructional Administration. Instructional ad-ministratirk is the area of responsibility for theimprovement of teaching through a program ofleadership, gUidance, and assistance to aid teachingstaff and to improve curricuFum and curriculummaterials used by teachers. It consists of super-vising instruction, developing and improving cur-ricula and curriculum materials, guiding teachers inthe use of instructional materials, administeringsabbatical leave, providing for inservice training,and so forth.

Normal direct charges to this program aredirector(s) or supervisor(s) of elementary and/orsecondary instruction or curriculum laboratories;clerks, employee benefits, consultants for inservicetraining, instructional supplies, office SUPTalies,

travel and conference expenses for'atsigne person-nel, equipment replacement, and new pment.

Expenses for those activities that bave, as theirpurpose overall general administrative responsi-bility for the entife school distriat or countysuperintendent's office are not charged' here. These

irexpenses shall be charged to the district administra-.' tion program.

Instructional Media. Instructional media is theprogram area consisting of: those activities whose

Exhibit l-D (Continued)

purpose is o provide resources to support instruC-tion for a (CI or a school diStrict. Included inthis category are the. followind:

School Library and Audiovisual. A school .

library and audiovisual program includes respon-sibility for organizing and managing librarybookl and preparing, caring for, and makingavailaNe audiovisual equipment, materia)s,scripts, and other aids to teaching and learningthat have special appeal to sight and hearing.

q:t;Activities include ordering, cataloging, 'process:ing, and circulating books and audiovisual

Sii,Inaterials and equipment; planning for the use of' tle library by teachers and pupils; selecting/books and audiovisual materials; puticipating infaculty planning kir the use or books alpdiaudiovisual materials; and guiding teachers didPupils in the use of thetibrary. .

Educational Television. An ecirrational tele-vision prograrrr,consists of such activities as'

writing, programmIng, and directing educationaltelevision programs as a part of the instructionalprogram of the school or district.

Computer -Assistance Instruction. Corn -puter assistance in instruction for school or a:school district consists of such activities as

writing, programming, and directing ongoingcomputer-based instructional programs andinstructional managern\ent information pro-grams `""'b

Direct 'charges to thegram shall' include salclerks, audiovisual perwriting, programming

lonal televisiondo al programs; empregardless of where'audiovisual equipment andequipment.

structional media pro-or librarians, libraryp sonnel involved in

directing ongoingmputer-based instructnefits; library books,placed in the district;materials; and library

Textbks are'.."-dot charged here; they areapcharged To the appropriate instructional program.

Computer assisted instructional activities of anexperimerital nature are not charged here; they arecharged to instructional administration.

Schobl Administration. School administrationconstitutes those activities that have as theirpurpose overall administrative responsibility for asingle school or several schools (but not a district).

Exhibit I-D (Continued) Idillitil

It consists of ehe aetiivtties performed by thepjincipal, assistant principals, and other- assistantsin the genersupervisiiThlof all operations of the,

i.school; evaltion of thd staff members of theschool.;_assignment of duties of staff membersV

of the records of the school; coordina-tivities with instruc-istrict; and so forth.

,

supervisiontion of school instructionatonal activities of the schoo

It

NI)upq Service,s

Attendance. Attenda ce includes th6%e activitiesthat promote and improve school attendance ofpupils. Attendance services consist of such actinities as early identification of patterns of nonatten-dance, promotion of positive pupil and parentattitudes toward attendance, analysis of causes ofnonattendance, early action on problems of non-attendanceA, and enforcement of compulsory atten-dance laws. Thy mechanics of twndance recordingand reporting on a districtwidOoasis is charged tothe district administration program.

We /fare. Aelfare inc d%es those activities thatassist in the prevention lution of the personal,social, and emotional problems of pupils involvingfamily, school, and community relationships whensuch problems have a bearing upon the quality ofthe schoolwork of pupils. It consists of such

community; undertaking casework services for thechild or parent or both; interpreting these prob-

professional services as diagnosing thepupils arising out of the home, school, or

prob-lems of pupils' for other staftThripromoting modification of the circumstancessurrounding the individual pupil that are related tOhis or her problem insofar as the resources of,thefamily, school, and ,community can be brought tobear on the problem. These activities are usuallyassigned to such staff members as school socialworkers, visiting teachers, or directors of schoolsocial work. Programs providing wearing apparelfor children are included here.

Guidahce. Guidance includes those activitiesthat help pupils assess and understand thtir abil-ities, aptitudes, interests, environmental factors,and educational needs; assist pupils in understand-ing educational and *e'er opportunities; and aidpupils i making optimum use oft educational andcareer -O portunities through the formulvion ofrealistic gals. Guidance includes such activities as

'\ -4a

4

counseling pupils and pirents, evaluating the abil-ities of pupils, assisting pupils to make their wneducational and care ans,:ailld choices, ass sting'Ipuplts in pers a social adjupmenkf, and .'working with Other staff members. in planconducting guidance programs. Guidance al

oik;includes administering psychological tests andmanaging and planning a program of psychol-ogil:services for the school system,

Counseling. Counseling covers those activitiesthat supplement the school syste reservoir of 4+

information' identifying the individuality of eachpupil, his or her capacities-, achievements, interests,potentialities, and needs; study the individual pupilexperiencing cute problems of educational devel-opment to furnish diagnostic information; andsuggest programs concerning the psychologicalaspects of these problems.

Health. Health covers tho activities that pro-vide physical and mental services not directlyinstructional, such as medical, dental, psychiatric,and nursing services.

Direct charges to the pupil servitgs pro fam shallinclude salaries of counselors, attendan e officers,psychologists, nurses, physicians, psychic rists, andother persOnrrel authorized in the field of physicaland mental health who are employees of thedistrict; salaries of secretaries and`clerks; employeebenefits; office, medical, dental, and first . aidsupplies: travel and conference expenses for per-sonnel employed in pupil ,services; contractualservices of personnel who are not on the payroll ofthe district; and so forth.

General Support4

Administration by the Office of the CountySuperintendent and the District. Those activitiesthat have as their purpose overall general adminis-trative responsibility for the entire county super-intendent's office or school district are classed ascounty/district administration. Administrationconsists of tp activities performed by the countyboard of education, the school district governingboard, and the superintendent and his or her staff,such as deputy, associate, area, and assistantsuperintendents; business managers; personneldimmers; and directors of pupil services for thegenalliE direction and management of all affairs ofthe school district.

24ish

-\.. '-Direct charges to this program shall also include

salaries of administrative seEretaries and clerks andaccouytting and purchasini personnel; employeebenefits for aft. -employ.ees in -this prograin; rion-instructional data processing services;,duplicatingand- reprod tion services; ii:ixpentlitures for allinsurance Cot er than liftsurancef a direct-costtype for employee beneffto5ject clasSification3000); and new equipment. The cost of attendancerecording, and, reporting on a districtwide basis irik,,4so charged toithit Program:-: -, - ;.,,,-

- - . .

4, Maintenance.. 'Maintenance includes those aqiv-ities that are required to repair, restore, or renovateschool property, including grouhds, buildings, andequipment.

Included as charges to this program are salariesand employee benefits for directors and supervisorsof maintenance, carpenters, painters, electricians,plumbers, and the like; necessary, materials andsupplies; rental and replacement of maintenanceequipment; and contracts fo repair, restoration, orrenovation of the grounds buildings, or equip-ment, including regrading es; repairing retaining

: yvalls, walks, driveways, sprinkler systems, and/playground apparatus or equipment; reseedinglawns; repainting; repairing or replacing roofs,walls, heating and air conditioning'units, andelectriCal and plumbing installations; repairingbuilding fixtures; resurfacing and refinishing floors;moving movable walls or partitions; and repairingequipmentinstructional and nohinstructional.

Example of items to be excluded are materialswhich must replaced frequently, such as lightbulbs and fluor scent tubes, fuses, and so forth.These items mu t,..be charged to the operationsprogram.

land'roof structures should be c ged to theChanges of itions (nonmovabie pe), walls,

facilities acquisition and construction program.'

Operations.' Operations are thbst hopeekeeping.activities concerned with keeping the physigalpl t open and ready for use. Included are cjeaninga disinfecting; heating and lightirigi communica-.tions; maintenance of power; movi& of furniture;caring for grounds; garbage and trash disposal;laundry and drycleaning. service, including therental of-towels; rental of equipment such as floor'polishers; soft water service; and such iotfier house-'''

11

4p,

7

Exhibit I D (Continued)

«keeping activities as' are- repeated s rfewha gu-larly on a daily, vvealtlY, monthly, seasonal basis.

alaries and the employee bene its to be chargeds program include those or directors andisori of operations, cy todians, _guards,

deners, teleptiv sNitch board' ?rators, truck'drivers, dpefatiotis clerks, security rsonnelg .and %

,the like.

-----*,--,..-Supplies , or . her is ,program

include'" brooms, ' brushes, disinfectants', fuses,, v-

g4rbage cans, light bulbs and fluorescent tube's,mops, wax, soap, toilet paper, towels, outdoorflags, weed killers, ferti16ers,Nand-so forth.

*Transportation. Transportation means the con

- veying of pupils to and from school activities,\either between home and school or on trips toschool activities.

Direct charges tq- the transportation services pro-gram shall include \salaries and the respective em-ployee-benefits for directors and supervisors, busdrivers, clerks, and mechanics; gas, &It tires, andsupplies for the repair and maintenance of the buses;Ontracts for outside repair; contracts with individ-als, other districts, or firms for transporting

pupils; rental of ses; replacement of buses; andthe purchase of ne equipment, including buses.

Repair and mai t nance of-other district-owned'vehicles shall be a direct charge to the.maintenance,program.

Auxiliary Programs

. Community Services. Community s: ices rethose activities that have as thei purposecommunity and school- recreation a her activ-ities authorized by the Civic Center Act (EducationCode Section 40040 et seq.), the CoinmunityRecreation Act (Education Code Section.10900 etseq.),, and Duty -free Lunch Periods for Teachers(ec.icationCode sections 44813 and 44%14).

salaries and employee benefits for playgrounddirectors, noon supervisors, clerks,, and otherinstructional or rsdreatiorral personnel a'ld thenecessary expendAres to conduct activities underthese acts are recorded as direct charges to thisprogriam.

Food Services. Food services includes manage-ment of the food services pr'ogram of the school or

-school district, including the preparation and 'serv-ing of regular and incidental meals, lunches, or

1--13

Exhibit I-D (Continued)10 A .

. r.

:4.

Racks in connection with striddla6thittdelivery of food.

Direct charges to this prOqrAm shall includesalaries and the respective envloyee benefitt fordirectors.and supervisors, maners, cooks!. helpers,

;4 bookkeepers, and 'clerks; food; meals for needy' pupils; operating supplies; replacement of equip-

ment; costs of vehicle's used in the delivery, of foodto variou;-.1caflons; and additional equipmentpurchased for centralized services.

lkFacilities Acquisition and Construction. Facil-

ities acquisition' ,ed construction includes theacquisition of land Ai buildings; major remodelingof buildings; construction of buildings and addi-tions to buildings; initial installation or extensionof service systems and other built-in equipment;initial improvements to sites; and books andequipment for new buildings. J,

The salaries and other expenses of school districtemployees assigned specifically to facilities-acquisi-tion and onstruction, or architects, engineers, andcontractor 'hired for capital improvement projects

/are record d in this program./ Expendi ufes for all repairs to building struc-tures (except repairs that add to existing facilities)are recorded in the maintenance program.

As a general guide concerning repairs to buildingstructures, if changes of partitions - (nonmovabletype), the roof structure, or walls are not involved,the expenditures are -recorded in the, maintenanceprogram; if such changes are involved, the expendi-tures are recorded in the facilities acquisition andconstruction program. Expenditures for the initialinstallation and extension of service systems andother built4n fixtures in existing buildings arerecorded inthe facilities acquisition and construc-tion program, and expenditures for repairs andreplacements of service, systems and other built-.

" -

'and the are recorded ill the aintenance pro-w

Expenditukes.for,nonconsumable articles gener-ally classified 'as supplies,. but necessary to start or

expand tile equippipg Of abshool; class-roa(rn, Specified area other than a clAsrqom, dranother facility shall be charged as equipmtnt tothe facilities acquisition and construction program.Ekamplel are small tools, dishes, utensils, pelicilsharpeners, -Rapiers, and library books.

Other Outgo

Debt Service. Debt service consists of expendi-t es for the retirement of debt and for interest ondebt, except principal and Intere§t on current loans(money borrowed and repaid` during the sameyear).

Outgoing Tuition. Outgoing tuition is tuition forjunior high school, tuition for instruction underinterdistrict attendance agreements,: tuition forregional occupational centers and programs, andother tuition.

1

Interfund Tiansfers. Interfund transfers consistof various transfers from the General Fund tovarious other funds and from ttse various f nds tothe General Fund.

Appropriation for Contingencies. Appropriationfortcontingencies is that portion of the current*scal year's appropriation that is not designated-

fo any specific Purpose but is held subjeCt toin rabudget transfers.

Site pr Operational Unit

Instructional end support programs may beidentified by school site, location= or operationalunit "in \ order to provide additional managementinformation relative to the total operation of adistrict.

NORMAL OBJEO CLASSIFICATION OF EXPENDITURES BY MAJOR PiOGRAM FUNCTIOS

,

Object

by program.

Instructional

proven

(General

and

spicki

'donjon)

Support service proortms

1t...

Special

projects

Instructional support

'Pupil service'

Instructional

administration

Instructional

media

School ,

administration

Attendance/

welfare

,Guidance/

counseling Health

1000 Certificated Personnel Salvia,

.

1100 Teachers' Salaries , X

1200 School Administritors' Salaries

1300 Supervisors' Salaries X 1 X X .

1400 Librarians' Salaries

1500 Guidance, Welfare, and Attendance Personnel

Salaries/

X X

1600 Physical and Mental Health Personnel Salaries . X ,

1700 Superintendents' Salaries

1800

1900

Other Certificated SalariesAdministrative

Office Personnel

Other Certificated Personnel SalariesVarious

Functions X

,

,

,

.2000 Classified Personnel Salaries .

2100 Instructional Aides X X

2200 Classified SalarltsCounty Superintendents'

Offices and District Administrative Personnel

2300 Clerical and Other.Off ice Personnel Salaries X' X X X X X X

2400 Maintenance and Operations Personnel Salaries

2500 Food Service Pen nal Salaries

2600 Transportation Pe nnel Salaries.

2900 Classified Personn I Salaries Other

lX X X X X X X

3000 Employee Benefit',

3100 State Teachers,' Retirement System Fund X X X X X X X X

3200 Public.Employees' Retirement System Fund , . , . ,. X X X X X X X X

3300 0.A3.0.H.1 X X X X X X X X

3410 Health and Welfare BenefitsTeachers and Aides X X

3420 Health and Welfare BenefitsAll Other Employees , X X X X x x x

3510 Unemployment InsuranceTeachers and Aides . ... X X

3520 Unemployment InsuranceAll Othv FrinI,,, rr X X X X X X

3600 Workers' Compano or I n$I) r rrro X X X X X X X

390n Other Bonef ire X X X v vV

)

27 ,

Ii

NORMAL OBJECT CLASSIFICATION.OF EXPENDITURES BY MAJOR PROGRAM FUNCTIONS

Object by program

Instructional

programs

1General

,( and

special

education)

Support service programs

-

Special

projects

. Instructional support

...... I

Pupil services

irktructional

administration

Instructional

media -

School

administration

Attendance/

welfare

Guidance/

counseling

,

il

Health

r , 1

4000 'Books, Supplies, did Equipment .

Replacement

4100 Textbooks X ii4200 Other Books X X X

4300 Instructional Supplies

4410 Instructional Media Materials !

4420 Instructional Media Supplies

X X

X

X

X X

X

X

,

,

4500 Other Supplies , X X X , X X X X

4600 Pupil Transportation Supplies

4710 Food ServicesFood X

4720 Food ServicesMeals for Needy Pupils X

4790 Other Food Services Supplies . X

4800 Equipment Replacement X X , X X X X X

6000.. Contracted Services and Othir

Operating Expense .

5100 Personal ServicesConsultants, Lecturers,

and Others X ' X

1

I.

X X

'

X

5200 Travel and Conference Expense X X X X X X X X

5300 Dues and Memberships

5410 InsuranceAll, Including Pupil Insurance , ... ...... I"5500 Utilities and Housekeeping Services

5600 Contracts, Rents, and Leases

5700 Legal, Election, and Audit Expense ....... ,5800 Other Services and ExpensesAdministrative

.....X

X

X

,i

6000 Sites, Buildings, Books and Media,

and New Equipment ' i , ,

'

6100 New Sites and Improvement of Sites

6200 New Buildings and Improvement of Buildings .

6310 Books for New or Expanded Libraries X X

6320 Media for New or Expanded Libraries X X

6410 Audiovisual Equipment X X

6420 , Libiary Equipment,

X X

6430 Food Service Equipment

6440 Pupil Transportation Equipment

6490 All Other Equipment ,

, . , .

X

# -

Xv ,t v

lc

1 qI I/

i

.


General support

Object by program

District/

county

,superintendents

administration

Mainte-

nance Operations

Trans. Community

portation services

1000 Certificated Personnel Salaries

1100 iTea4sts' Salaries

1200 School Administrators' Salaries

1300 Sispervisors1 Salaries

1400 Librarians' Salaries

1500 Guidance, Welfare, and Attendance Personnel

Salaries

1600 Physical and Mental Health Personnel Salaries

V

X700 Superintendents' Salaries X

1800 Other Certificated SalariesAdministrative

Office Personnel

1900 Other Certificated Personnel Salaries Various

Functions

2000 Classified Personnel Safari.

2100 instructional Aides

2200 Classified SalariesCounty Superintendents'

Offices and District Administrative Personnel X X X X

2300 Clerical and Other Office Personhel Saler* X X X X X

2400 Maintenance and Operations Personnel Salaries X X

2500 Food Service Personnel Salaries

2600 Transportation Personnel Salaries X

2900 Classified Personnel SalariesOther X X Xrr

X X

3000 Employee Benefits

3100 State Teachers' Retirement System Fund .. X

32d0 Public Employees' Retirement System Fund .. X X X

3300 0.A,S,O.R . I 1 X X X X

3410 Health and Welfare BenefitsTeachers and Aides , . ,

3420 Health and Welfare BenefitsAll Other Employe, f . . X X VI.% X x

3510 Unemployment InsuranceInitructicnel Aides . ,

3520 Unemployment Insurance All (Iti.v ,.).11r1" X X X X

3600 Workers' Comrnincat'''P I,',..' , X X X X3qm

31

Auxiliary programs

Food

`services

X

x

Facilities

acquisition

and

construction

x x

Ip

Other

outgo

4

st

X

O

0

32aD.

NORMAL OBJECT CLAiSIFICATION OF EXPENDITURES BY MAJOR PROGRAM FUNCTIONS

,

lObject by program ,

,


Auxiliary programs

Other

outgo

.r.General support

District/

county

superintendents

administration

Mainte

nonce Operations

Trans.

portation

Commuhity

services

,

Food

service

',\ Facility

quisition

and

construction

.

4000 Books, Stipp lies, and Equipment

Replacement1

,

4100 Textbooks ........ ............ . ........ ....4200 Other Books

4300 Instructional Supplies

4410 Instructional Media Materials ..... , . ..... .......

454420

Instruct nal Media Supplies .. ............00 Other Su plies

4600 Pupil'ir portation Supplies

4710 Food ServicesFood .

.....X

.

X X

X

,

X X

X

X

4720 Food ServicesMeals for Needy Pupils ..... ....... X

4790 Other Food Service Supplies X

4800 Equipment Replacement ' ,

5000 Contracted Services and Other

X X X X X X

,

Operating Expense

5100 Personal ServicesConsultants, Lecturers,

and Others

. '.

.

5200 k Travel, Conference, and Other Expense X X X X X X

5300 Dues and Memberships4

X

5410 InsuranceAll, Including Pupil Insurance ..... .. , . X

5500 Utilities and Housekeeping Services X

5600 Contracts, Rents, and Leases X X X X X X X

5700 Legal, Election, and Audit Expense X .

5800 Other Services and ExpensesAdministrative X

6000 Sites, Buildinp, 'Books and Media,

and New Equipment

/1

6100 New Sites and Improvement of Sites .. , .. X

6200 New Buildings and IMprovement of Buildings .... X

6310 Books for New or Expanded Libraries X

6320 Media for New or Expanded Libraries X

6410 Audiovisual' Eq'uiprhent' . ....... , . . . . . . . . , . X

6420 Library Equipment ........ . . ,

6430 Food Service Equipment ..... . ,

6440 Pupil Transportation Prwiomprit

6490 All Other Equipment ,

4 .

V w

X

w v

x

w

X

X

7000 Other Outgo

7100 Debt Service

7200 Outgoing Tuition , ..X

X

7300 Interfund Transhirs

ff

X

7400 Other Transfers ..... . ,

7900 ; Appropriation for Contingencies

X

X

0

ttl

34

Exhibit I-ECalilornia State. Departmentof EducationBureau of School Apportionmentsand ReportsForm No. .1-41A

Supplemental Annual financial Report,Part I General fund

School district County. !

Program e Capital outlaycosts before

. ..... :Direct Total direct distribution Allowed

support' and direct Indirect of special Capital capitalcosts support costs .costs project costs outlay outlay for

Direct Out (-) (Col. 1 + Out ( -) ICol..3 + included in cost to incomcosts Inl+/' Col. 2) In (+) Col. 4) program costs comparison .Y

Type of program 1 2 3 4 5 6 7

INSTRUCTIONAL 4ROG RAMS /General EdUcation:

Preformal ,ElementarV, // Z/ ///,Secondary i /// / //// // /Regional Occupational Center or Program / 7AdultTotal, General Edwation i / / / /)

sr

Special Education:. . .

Physically handicappedSpecial day classes _Regular day classesRemedial physical educationOther remedial instruc, _1.11., spach ' ., . ...Individual instruction, home and hospital __ _ _ ._ _Special speech instruction, aides . , ___ _____ - _ . _ .....

Special blind allowance . . _ _

Educable mentallySpecial class

retarded/,

Regular -class, by aides _NC

,..4

Trainable mentally io,q, 4.0Special class

TransportationPH/TMR/autistic 4 /To state school or other dicer r-t .4. 7 7 r "

Educationally handicappedSpecial day classes (EH pliic a.it.:*( , . /Learning disability aroasp .Home and hospital . . .

r /._ 01 /Regular class, instructional aide . rSpecial consultation allowariro _ ..r

,Mentally gifted minorsSpecial day classes and other programs .. :Identificatign allowance . . . . . ..

PH in ROC (not concurrently enrolled)Visually handicapped personsDeaf personsOrthopedically handicapped persons

Master Plan for Special EducationSpecial class ._ _ _. ---- __. --Resource specialist ..- --- .--- . _ ...... _Designated instruction and services ___._ . .._ . .

Nonpublic schools , _._.. ___ __ ._._ . ._._

Total, Special Education ___ _ .-z Va

TOTAL INSTRUCTIONAL PROGRAMS

3-77995

35I 19

-

II

icu ura uca n

2

=PIM=5,--41IMERb

3 4

11PRI1b.

6

r Ayr

r Aly/7

VA /

,7 1///?"-I Ir4v

V 7e,-.: .

, A. . . r Ar

4 .L

4r

, . A h.

; :

V A r /r, A A/,

A , A, ,v,

.

ID

L SAMPLE PROGRAM BUDGET(for use in development of program budget)

,Exhibit I-F

Special project or program title Fiscal year

PUPIL/EMPLOYEE . DATA:

1. Enrollment2. Average daily attendance or Oarticipation data

a. Kindergarten and grades one through eightb. Grades'nine through twelve

c. Total (2.a and 2.b)

3. Teachers (full-tirde equivalent)4. Other Certificated Employees (full-time equivalent5. Classified Employees, (full-time equivalent)

Number

DIRECT COSTS:

6. Certificated Salaries'7. Classified Salaries8. Employee Benefits9. Books and Supplies

10. Equipment Replacement11. Contracted Services (5100 and 5600)12. Other Operating Expenses (5200, 5300, 5400, 5500, and 5 00)

13. Subtotal (lines 6 through 12)

14. Capital Outlay15. Total Direct Costs (lines 13 and 14)

Amount

DIRECT SUPPORT CHARGES:

16. Instructional Acirlinistratiori, Merlin, n..cf17. Pupil Services18. General Support

19. Subtotal (lines IP thvoliqh I RI

20. Auxiliary Services

21. Total Direct Support Charges (lines 19 and 20)

$ _

INDIRECT SUPPORT CHARGES:

22. Total Indirect Support Charges (percentage of remaining costs allocated to this program)(See bottom of page 1-20 for indirect cost rate formula).

23. Total, Cost of Program (lines 15, 21, and 22)

REVENUE SOURCES:

24. Federal25. State26. County27. Local

(

28. Total.Revenue

1-21

f.

Part 11

Income

, Income includes both revenue and nonrevenuereceipts.. Revenue receipts are additions fo assetsfor which no obligations are inburred by the schooldistrict and may be used for, expenditures at thediscretion of the governing board of the district.Revenue receipts include money received throughstate apportionments and district taxes. Nonreve-nue receipts consist of money received in exchangefor property of the school district oireceipts forwhich the district incurs an obligairon, such asmoney received through loans or the sale Of bonds.Bond or loan receipts must be used by thegoverning board of the district for the- purposesoutlined at the time loans are secured or bonds areissued.

The instructions in this manual provide foruniform identification 'and classification of thereceipts for all.the funds and accounts of a schooldistrict. The instructions should be followed in (1)the day-to-day accounting for receipts; (2) thepreparation of budged; and (3) the preparation ofall financial reports. The instructions are applicableto the budgeting;, accounting, and reporting of theGeneral Fund and of all special funds of everyschool district. The designation of the incomeclassification applicable to any particular receiptshall not be interpreted to mean that such incomerepresents an income of the General Fund or ofany particular special fund. The selection of thefund must be made in accordance with theprovisions of law. In no case should designation ofthe income classification, such as 8100, FederalIncome, or &700, County Income, be confusedwith the selection of the fund, such as the GeneralFund, Building Fund, or Cafeteria Fund.

School districts operating on a cash basisaccount for income when it is received. Districtsoperating on an accrual basis account for incomewhen it is earned., The school district budget formprescribed and the annual financial report form

supplied by the Superintendent of Public Instruc-tion contemplate the use of the accrual basis ofaccounting for expenditures and the partial accrualbasis of accounting for the income of schooldistrict funds, except for the Bond Interest andRedemption Fund. The accounting and reportingor a school district's Bond Interest and Redemp-tion Fund either on a cash basis or on an accrualbasis, as determined by the county auditor, areacceptable to the Superintendent of PublicInstruction.

'Classification of IncomeSchool districts are required to classify income

according to th"major- and subordinate classifica-tions outlined in this section. Major classificationsare printed in boldface roman capital and lower-case letters; for example, 8100,- Federal Income.Required subordinate classifications are printed inboldface italic capital and lower case letters; forexample, 8110, Maintenance and Operation (PublicLaw 81-874). Many school district's may find itdesirable to increase the number of subdivisions ofthe income classifications in accordance with localadministrative needs.

Major classifications of income are as follows.8100-8499 Federal IncomeB500- -8599 Combined State and Federal

Income8600 8699, State Income8700 8799$' County Income8800-8899- Local Iricome8900-8999 Incoming Transfers

Instructions for Using IncomeClassifications

8100-8499 Federal IncomeRecord in the appropriate subordilate classifications allincome received fro the federal government. Record

federal income for which the state or any other agency -

serves as the distributing agency. Identify the purposes forwhich income is received and account for the moneyreceived for each purpose.

8110 Maintenaice and Operation (Public Law81-874)Record amounts allowed flir maintenance andoperation resulting from the identification ofstudents or parents in federally impacted areas inaccordance with Federally Impacted Aid programs.

8120 Veterans' EducationRecord amounts allowed for veterans' education.

8130 School Construction (Public Law 81-815)Record amounts allowed for school constructionand facilities acquisition.

8140 Education Professions Development Act,B-1 and B-2 (Public Law 90-35)Record amounts received from federal agencies forthe Education Professions Development Act, Title

'8150 Economic Opportunity Act (Public Law88-452)Record amounts received directly from federalagencies for Economic Opportunity Act programs

8160 Elementary Ind Secondary Education Act(Public Law 89-10)

.Record amounts received from federal agencies forElementary and. qc..1-,nelary Ed uration nr1 rr,,grams

R 1 7(1 Comprehensive Employment and Trahl;,,QAct of 1973 (Public law 3 .?(l3)

Record amounts received from federal sources

under the provisions of the ComprehensiveEmployment and Training Act, including amountsreceived under provisions of the EmergencyEmployment Act of 1071 and Public FrnplovmentAct programs.

8210 National Defense Education Act (PublicLaw 85-864)Record amounts allowed under the NationalDefense Education Act.

8220 Child Nutrition ProgramsRecord amounts' allowed for the school lunchprogram, special milk program, school breakfast

iI-2

program, food assistance program, and specialiassiitance program (free meals) received frpmfederal sources.

8230 Manpower Development and Training Act(Public Law 87-415)Recoid amounts allowed for Manpower Develop-ment and Training Act programs from federalsources.

8240 Vocational Education Amendments of 1968(Public Law 90:576)Record amounts allowed for Vocational EducationAmendments of 1968 programs from federalsources.

8310 Forest Reserve Funds (Education Code Sec-tion 2300)Re-cord all income from forest reserve funds appor-tioned by the federal government but distributedto the district by the county superintendent -ofschools with the appioVal of the county board ofeducation.

8320. Flood Control Funds (Education Code Sec-tion 1606)Record all income from flood control. funds appor-tioned by the federal government but distributedto the.:, district by the county superintendent ofschools with the approval of the nrnty board ofeducation.

R 110 U. S. Wildlife Reserve FundsRecord amounts re,-..-ivr.d from II S wildlifeReserve funds

"Miscellaneous riuuds (Fdnenti,,u rodeSection 41604)See explanation on page 11-9.

8481 Royalties and Re-orm.ves

8482 Rentals8483 Income from Property Not Subject

to Tax

8484 Payments in Lieu of Taxes8490 Other Federal Funds

Record all other federal funds received exceptfunds defined as "miscellaneous funds': by theCalifornia Administrative Code, Title 5, Education,Section 17261. These are to be recorded in

classification g480, Miscellaneous Funds.

RI R()

39

A

8500 Combined State and Federal IncomeRecord. in the apptepriate sub`Brdinate classes of this major

/class all income received' that includes combined state andfederal funds and that is distributed by the state agencywith no indication of how the allowance is prorated

°between federal and statefundr.

8530 Children's Ctitges,-- rs (Education Code Section8206)Record amounts allowed .for day care centers andmigrant day care centers.

4580, "Miscellaneous Funds"Section 8207)See explanation on page 11-9.

(Education Code

8581 Royalties and Bonuses

8582 Rentals

8583 Income from Propbrty Not Subject-to Tax

8584 Payments in Lieu of Taxes

8590 OtherRecord all other combined-state and federal fundsexcept funds defined as "miscellaneous funds" bythe California Administrative Code, Title 5, Educa-tion, Section 17261. These are to be recorded in

'classification 858D. "Miscellaneous Funds

8600 State IncomeRecord in the appropriate subordinate classes of this majorclans all state funds received. Do not record federal fundsdistributed by the state. These are to be recorded underfederal income. By law, any State School Fund apportion-ment or allowance to a school district must be deposited inthe General Fund of the school district.'All such amounts should be accounted in terms of.the grossamount apportioned. Deductions and withholdings madeby the State Controller as required by law must beaccounted as expenditures in the same manner as if the fullamount had been received and a school district warrant hadbeen drawn for such purpose.

Seventh and eighth grade tuition adjustment is made by thestate before gross Ifi)portionment is determined. Anyincome received in correction of a prior apportionment(Education Code Section '41341) or included in the FinalState Apportionment should be recorded in the class orclasses that define the original apportionment.

8610 Principal A- pportionmeniRecord all amounts allowed under the Principal

ipApportionmept, including advance apportion-ments, basic and equalization aid, and final appor-thmmei)ts. Record also flat grant allowancesreceived from .the following programs on a currentbasis:

8611

8612

8613

-86'14

8615

16616

8178618

Bask and Equalization Aid

Physically Handicapped

Educi*le-Mentally &Retarded

TrainableMentally Retarded;'

Transportation of Handicapped Pupils

Educationally Handicapped

Mentally Gifted

Direct Service Apportionment

.1

(County School Service Fkind only)

8619 Other Purposes Apportionment(County School Service Fund only)

8620 Spe 1PUrpose ApportionmentRec

,lmounts received for the expenses of

main ning any or all of the ,1",,11,,wing r v$E.qTvIR

ckpring the preceding fiscal v,ar.

8621 Driver Training

R67, TransportationRecord amoun received for transporta-tion, based upon records of expense andapproved capital outlay, of furnishing, dur-ing the preceding fiscal year, transportationof pupils between their homes and theregular full-time day schools attended bythem.

86 23 Project-connected Pupils

8624 Educationally Disadvantaged Yaith(Education Code Section 54000 etseq.)

8625 Early Childhood Education(Education Code sections 52013-52014)

-II-3

.8630 Special Allowances

8631 Apportionment for the ElementarySchool Reading ProgramRecord amounts received under the BasicReadin) Act of 1965 (Education Codesections 54100-54180).

8632 Allowance for InstructionalTelevision

' Record amounts received under EducationCode Section 41920 for participation in aprogram for instructional television estab-lished pursuant to Education Code sections51870 or 51871.

8633 Apportionment for Special TeacherEmploymentRecord' amounts received under Chapter106, Statutes of 1966 (Education Codesections 54480-54486) for the specialteacher employment program.

8634 Allowance for Demonstration Pro-grams in Reading and MathematicsRecord amounts received under Chapter106, Statutes of .1966 (Education Codesections 58600-58608) for demonstrationprograms in intensive instruction in readingand mathematics for low-achieving pupils.

8635 Apportionment for HandicappedMinors for Whom No State SpecialEducation Facilities Are AvailableRecord amounts received for the educationof those physically handicapped minors forwhom appropriate education facilities andservices are not made available by schooldistricts, the county superintendent ofschools, or the State of California (Educa-tion Code. section's 56031-56035).

8636 Apportionment for InstructionalMaterials (Kindergarten ThroughGrade Eight)Record state special allowances for instruc-tional materials for pupils in kindergartenthrough grade eight (Education CodeSection 60242).

11-4

8637 Child Nutrition PrOgramRecord amounts received as a result ofimplementation of th Duffy-Moscone Actof 1970 (Educatio Code sections49510-49520). Also retold amountsreceived under the Chil Nutrition Act of197(Education Code Se tiOn 49536).

8638 Special Education Master PlanRecord amounts received for the specialeducation of handicapped pupils as autho-rized by Chapter 1532, Stats. 1974(Education Code sections 56300-56367).

8639 Othert's

Record any special allowances not listedelsewhere, including' allowances under theBilingual Education Act of 1972 (Educa-tion Code sections 52100-52114); one-time grants for schools converting to acontinuous education program (EducationCode Section 37644); and state grantsmade to school districts under the Profes-sional Development and Program Improve-ment Act of 1968 (Education Code Section44643).

8640 Apportionment for School FacilitiesRecord any amounts allowed for school housingaid ifor compensatory education purposes and fordistricts impacted by seasonal agricultural employ-ment-(Education Code sections 16210 16234).

Also record amounts allowed through the StateSchool Building Aid Fund. These funds shall bedeposited in the State School Building Fund of theschool district Am school building purposes.

650 Apportionments for Children's CentersRecord amounts allowed for children's centers.School distifct fiscal control may find it adviiableto compute monthly the earned income from thissource. Apportionment in advance is based uponestimated attendance. Adjustments at the,, end ofthe fiscal year are usually required (EducationCode Section 8382).

8660 Apportionments for Development Centersfor Handicapped PupilsRecord amounts allowad_for purposes of develop-ment centers for handicapped minors. School

41

district fiscal control y find it a visable tocompute monthly the e come TOM thissource. Apportionment in advance sed uponestimated attendance. Adjustments at the end ofthe fiscal year are usually required (EducationCode Section 56810).

8661 Attendance

8662 Transportation

8670 Tax Relief Subventions

8671 Reimbursement for Income LostBecause of Business InventoryExemptionsRecord amounts received for loss of in-come because of business inventory exemp-tions (Revenue and Taxation Code Sectien219).

8672 Reimbursement for Income Lost Be-cause of Home Ownth' ExemptionsRecord amounts received for loss of in-come because of home owners' exemptions(Revenue and Taxation Code Section 218;Education Code Section 17252).

8673 Reimbursement for Income LostThrough Operations Under theWilliamson Land Act of 1967Record amounts received for loss of in-come because of the Williamson Land Actof 1967.

8679 Other. Tax Relief SubventionsRecord amounts received for loss of in-come because of exemptions on motionpicture filMs and wine and brandy prod-ucts (Revenue and Taxation Cods sections988. and 992; Education Code Section17254; and severance aid allowances forreal property acquired for state highwaypurposes (Education Code Section 41960).

8680 "Miscellaneous Funds" (Education CodeSection 41604).See explanation on page 11-9.


8682 Rentals

8683 Income from Property Not Subjectto Tax


8690 Other State IncomeRecord all other state funds received includingpreschool education funds (Education Lode sec-tions 8256 and 8327) except funds defined as"miscellaneous funds" by the California Adminis-trative Code, Title 5, Education, Section 17261.These are to be recorded in classification 8680;"Miscellaneous Funds."

8700 County IncomeRecord in the appropriate subordinate classifications of thismajor classification all county funds received. Do notrecord federal funds distributed by the county. These are tobe recorded as federal income.

8710 Community College Tuition TaxRecord income from counties for nondistrictstudents attending community college; fiom taxeslevied on territory not within a community collegedistrict; and from state funds allocated for newlyformed or annexed community colleges and fornondistrict students attending community colleges.Alkincome recorded in classification 8710 shall bedeposited for the County School Service Fund forlater distribution (Edu,cation Code sections2100-2111).

8720 Equalization Aid Offset TaxRecord income from taxes levied upon all theassessed valuation of the county to offset thedecrease in equalization aid resulting from theupward modification of the assessed valuation(Education Code sections 41200-41206).

8730 High School Tuition TaxRecord income received as high school tuition forpupils who reside in elementary school districtsthat are not in high school districts, and recordincome raised by tax levies against the tax rolls ofthe elementary school districts.

8740 County School Tuition FundRecord income received from taxes levied for thepurposes stated in Education Code sections2000-2011.

11-5

8750 Contract Services (County School ServiceFund only)Record income received prom contracts betweenthe county superintendent of scflools and othercounty agencies.

8760 County School Building AidRecord income received for payments requiredpuisuant to School Building Aid laws (EducationCode sections 16196; 16202, 16204, and 2503).

8780 "Miscellaneous Funds" (Education CodeSection 41604)See explanation on page 11-9.


8782 Rentals

8783 Income from Property Not Subjectto Tax


8790 OtherRecord all other county funds received exceptfunds defined as "miscellaneous funds" by theCalifornia Administrative Code, Title 5, Education,Section 17261. These are to be recorded inclassification 8780, "Miscellaneous Funds."

8800 Local IncomeRecord in the appropriate subordinate classifications in thismajor classification all income from local sources. Identifythe sources of income and account for the income receivedfrom each source.

8810 District Taxers

8811 Secured Roll (Education Code sec-tions 4364, 1624, 2500 et seq..42202, and 42230 et seq:)Record income from taxes levied on thesecured tai roll. District taxes are levied asa result of the filing of an annual budgetwith- the county superintendent of schoolsfor approval and transmittal.tc".the countyboard of supervisors setting forth the tax

4 requirements of the district as provided inDivision 16, Chapter 3, of the EducationCode. The board of supervisors determinesfor the budget year a tax rate that will

11-6

produce the amount of district tax moneyrequested by the district in its annualbudget.

Certain tax rates in excess of the statutoryor voted rates are authorized in the Educa-tion Code for restricted purposes and forspecial funds of the school district.

All income received from district taxsources is to be accounted on a cash basis.Credits to the various distriCt tax incomeaccounts are made upon receipt of anapportionment notice from the countysuperintendent' of schools indicating thattaxes have been deposited in the countytreasury.

8812 Unsecured RollRecord income from taxes levied on theunsecured tax roll.

A.

8813 Prior Years' TaxesRecord income from tax levies of prioryears. Include secured and unsecured taxreceipts from redemptions and tax sales.

8820 City and County Taxes

8821 City TaxesRecord income ffom taxes from an advalorem levy for school purposes upon thereal and personal property located in, andassessed by, a chartered city', which levy isauthorized or required by the city charter.

8822 County TaxesRecord income fom taxes from an advalorem levy for school purposes upon thereal and personal property under the juris-diction of the county superintendent ofschools.

8830 Areawide Taxes (Education Code Section20911)

43

8831 Secured Roll

8832 Unsecured Roll

8833 Prior Years' TaxesRecord income received from taxes leviedon an areawide basis under provisions ofEducation Code Section 42402.

8840 Sales'

8841 Sale of BondsRecord income from sale of bonds at parvalue. The amounts received from the saleof bonds at par value must be deposited inthe. Building Fund of the district (Educa-tion Code Section 15146).

8842 Sale of Equipment and SuppliesRecord income from the sale of suppliesand equipment no longer needed by theschools. The money received is to beplaced to the credit of the fund fromwhich the original expenditure for thepurchase of the personal property wasmade (Education Code Section 39522).

8843 Sale of Land and BuildingsRecord income from the sale of land andbuildings. Such income must be used forcapital outlay or repaid to the state ifunder the State 'Aid Building Program(Education Code sections 39360-39363).

8844 Food Service SalesRecord income from the sale of meals andother food items. This income is usuallyrecorded in the Cafeteria Fund or CafeteriaAccount.

8845 Sale of PublicationsRecord income from the sale of publi-cations.

8849 Other SalesRecord income received from all othersales, such as farm products and printeflforms.

8850 Rentals and Leases, Except "MiscellaneousFunds"Record income for the use of school buildings orportions thereof, houses, and other properties ofthe district that are rented or leased to other schooldistricts for school purposes; and portions ofamounts received that are excluded from "miscella-neous funds" in accordance with the CaliforniaAdministrative Code, Title 5, Education, Section1726 I , including rentals by Civic Center groups.

Rental o'r lease income defined as "miscellaneousfunds" is to be recorded in classification 8880,"Miscellaneous Funds."

8860 InterestRecord income credited or prorated by the countyauditor for interest on deposits of school districtfunds with the county treasurer and interestearnings (Education Code Section 41015).Money received as premiums and accrued interestat the time of sale of bonds must be deposited inthe Bond Interest and Redemption Fund (Educa-tion Code Section 15146).

8870 Fees and Contracts

8871 Adult EducationRecord income received from studentsenrolled in classes for adults as tuitionunder Education Code Section 52612 or asincidental fees under Education Code Sec-tion 52613.

8872 Nonresident StudentsRecord income received from parents orguardians for the total cost of educatingforeign residents in the schools of thedistrict (Education Code Section 48052).

8873 Children's CentersRecord income received from parents,guardians, or welfare agencies as fees for theinstruction and care of children in children'scenters (Education Code Section 8249).

8874 Development Centers for Handi-capped MinorsRecord income received from parents,guardians, or welfare agencies as fees forthe instruction and care of children indevelopment centers.

8875 Contract ServicesRecord income received for contract ser-vices rendered by one district or office ofcounty superintendent of schools foranother district or office of county super-intendent of schools.

See Note on page 111-10.

8876 Use of Building FeesRecord income received from the countyof pupils' residence for use of buildings(Education Code sections 56814 and42905). Deposit income to credit of BondInterest and Redemption Fund, BuildingFund, or County School Service Fund.

NOTE: Record other income from rentalof facilities to income classification 8850,Rentals and Leases.

8879 OtheF Fees and Contract ServicesRecord income received from all other feesand contract services.

8880 "Miscellaneous Funds" (Education CodeSection 41604)

See 'explanation on page 11-9.

8881_ Royalties and Bonuses

8882 Rentals

8883 Income from Property Nut Subjectto Tax


8890 OtherRecord all other income from local sources such aslibrary fines, contributions, gifts, outlawed war-rants, practice teaching, and so forth, except fundsdefined as "miscellaneous funds" by the CaliforniaAdministrative Code, Title 5, Education, Section17261. These are to be recorded in classification8880, "Miscellaneous Funds."

8900 Incoming TransfersRecord in the appropriate subordinate classes in this inajorclass all income received for incoming transfers. Identifythe sources of tuition payments and account for the incomereceived from each source.

8910 Junior High School Tuition for GradesSeven and EightRecord income received from tuition transfers for

pupils attending grades seven and eight in a juniorhigh school and fixed in accordance with provisionsof Education Code sections 37062-37071.

11-8 45

8920 other TuitionRecord tuition payments received from the follow-ing sources:

Interdistrict contracts for general or specific in-structional services, including transportation fordesignated pupils (Education Code sections46600-46613).

Governing boards or authorities in other states forthe totalcco,st of education of elementary or highschool pupils whose places of residence are in theother states (Education Code Section 48050). NoCalifornia state' aid is apportioned for such

\ pupils.

Districts for education provided in a tuberculosis orpolio ward of a hospital or sanatorium maintainedby a county or group of counties (Education Codesections 56750-56752).

Districts for special education of pupils providedby the county superintendent of schools (Educa-tion Code Section 1705).

Districts and offices of county superintendents ofschools for tuition received for the instruction ofnonimmigrant children and children residing inchildren's institutions and foster homes.

All other tuition payments not identified above.

8930 Inrerfund TransfersRecord the amount of money Involved in each ofthe following transfers between funds:

To the Child Development Fund and DevelopmentCenters for Handicapped Pupils Fund from theGeneral Fund (Education Code Section 41013 andCalifornia Administrative Code, Title 5, Education,sections 15050-15052).

BetWeen the General Fund and the Special Resei*Fund (Education Code sections 42840 42843).

From any fund of the district to the Public SchoolBuilding Fund (Education Code Section 15746) orto the State School Building Fund (EducationCode Section 16095).

To the .General Fund ar to the Special ReserveFund from the Bond Interest andaRedemptionFund after all principal and interest payments havebeen made (Education Code sections 15234 and15235).

4t

'r

8990 Other Incoming TransfersRecord income received from funds, of lapsed orreorganized school districts and any other incomefrom transfers not otherwise classified.

Miscellaneous Funds.

Education Code Section 41604 covers "miscel-laneous funds" under classifications 8480 (federal),8580 (federal and state), 8680 (state), 8780(county), and 8880 (local). Sources of -fundsclassified as miscellaneous under this section are(1) royalties and bonuses; (2) rentals; (3). incomefrom property not subject to tax; and (4) pay-ments in lieu of taxes.

Royalties and bonuses

Record the total amount of payments of all or aportion of the royalties and bonuses received fromthe operation of any law under the terms of anyagreemene-'For example, royalties on federal min-eral depoiits are accounted under 8481, "Miscel-laneous Funds" (federal). Classifications by sourceare .fs follows:

8481 Federal8581 Federal and state8681 State8781 County8881 Local

Rentals

Record the amount by which the total of allpayments received for the rental of propertyowned by the county superintendent of schools orby the school district and not on the tax rolls ofthe county or district exceeds the .actual expenseof operating and maintaining the property. Classifi-cations by source are as follows:

84828582868281828882

FederalFederal and stateStateCountyLocal

Income from Property Nth Subject to Tax

Record the total of all payments received from,or on account vf, property' of a School district orof county superinterident sif schools or any otherproperty within .district, county, Or state that is

not being assessed for tax purposes and not beingused for school purposes. Classifications by sourceare as follows:

8483 Federal8583 Federal and state8683 State8783 County8883 Local

Payments in Lieu of Taxes .

Record the total of all payments made in lieu oftaxes and received by the county superintendent ofschools or school district. Ixamples are levies onaircraft, baled cotton, or federal housing; head-daytax on livestock; and license fees on trailer coaches.Classifications by source are as follows:

84848584868487848884

FederalFederal and stateStateCountyLocal

Abatement of IncomeWhen part or all of the income of a school

district or office of a county superintendent ofschools must be returned 'to the source from whichit is received or prorated to participating districtsfor a specific project, the transaction shall beaccounted as an abateinent of income. In otherwords, abatement of income is the cancellation ofa Tart or the whole of Iny specific receiptpreviously recorded. Such cancellations of previ-ously _recorded receipts usually result from taxrefunds, refunds of money received from state orfederal sources, refunds of monies previously-received in error, or the distribution of monieseceived for others. The accounting for such

transactions in this manner keeps both income and, expenditures in true perspective and maintains

proper balance of the two.'Uniformity in accounting for. abatements of

income is required to secure comparable fiscal.records, and reports of school finances. AcCuracy inthe ridords requires proper use . of a correctaccounting procedure for the elimination from thefiscal records of those items representing cancella-tions of previous fiscal transactions or parts ofthem.

46 11-9

'Accounting Procedure

Payments that represent cancellations or reduc-tions of receipts must be accounted as abatementsof income previously. recorded by abating suchpayments to such income account, thereby elimi-nating any charge to an expenditure account. Suchpayments must 'be accounted by abating theincome account for the original source during thefiscal year in which the payments are made,irrespective of the fisCal year in which the originalreceipt was recorded, even though such paymentsmay in some cases exceed the actual income of thefiscal year in which the abatement is made andthus result in negative balances in the accounts, orentries in reports. Abatements of income shall berecorded as they occur and shall not be acwmu-lated until the end of the fiscal year.

Because payments that constitute abatements ofincome are not expenditures, they are not -subjectto appropriation control. However, any abatementof income that constitutes a major reductiOn ofincome in comparison with' estimated incomeshould be recognized as requiring a correspondingreduction in estimated income and reserves, orrequiring a reduction in actual appropriations.

The following kinds Of transactions shall beaccounted as abatements of income:

-1. Tax refunds2. Rental refunds3. Tuition refunds

a. To students, parents, or guardiansb. To other districts on account of over-

payments4. Refunds of irs441-tfitom ederal sources5.1tefunds.of '''rcom tate sources6. Refutplii s received in error7. Distfillik4t K4 ration of monies received

by a LO oinr ting agency to operatingdistricts,

Income

Because it is 'often difficult to distinguish be-tween receipts that should be treated as abate-.ments of expenditure and those that should betreated as income, a list of income receipts ispresented- also. The following receipts must beaccounted as income (income classifications areshown in parentheses):

.11 1 0

1. Tuition (8910, 8920)a. Adult education tuition (8920)

2. Fees (8870)a. Teachers' and employees' examination

. fees (8879)b. Certificate fees (8879)c. Transcript fees (8879)

3. Rentals (8782,8850, 8882)a. Civic Center (all charges) (8782, 8850,

8882)b. Classrooms(8782, 8850, 8882)c. Easement leases (8782, 8850, 8882)d. Houses (8782, 8850, 8882)

.e. Sites (8782, 8850, 8882)4. Collections for use of swimming pools,

tennis courts, and the like (8879)5. Library fines (8890)6. Receipts from sale of junk or salVage

material no longer needed (8842)7. Contributions and gift; (8890)8. Receipts from sale of courses of study,

printed loans, -and the like (8845)9. Amounts received from forfeitures of

surety or indemnity bonds because ofnoncompliance ;with contracts (8890)

10. Interest on deposits and investments(8860)

11. Outlawed warrants and other warrants can-celled in a fiscal year subsequent to theyear of mpencliture (8890)

12. Receipts from sale of land and buildings(except that receipts from the sale eitt- ofa portion of a new site or of buildin orimprovements thereon shall be accountedas abatements of expenditure) (8843)

13. Receipts from teacher-training institutionsfor practice teaching services (8890)

Accounting for Certain Apportionments(Loans)

Certain apportionments that the State of Cali-fornia currently authorizes to be made to districtsfrom the State General.Fund are loans and do notconstitute grants or subventions. Becauk suchapportionments are . nonrevenue receipts, whichincrease a district's liabilities, they should not bet-accounted for as income. These apportionments

47

are advances made to eligible districts for thefollowing purposes:

1. To aid in establishing (a) special trainingschools or classes for the education ofmentally retarded minors who come within-the provisions of Education Code Section56515; or (b) sizecial schools, classes, orintegrated programs for which a qualifiedspecial teacher is provided for educatingphysically handicapped, minors who comewithin the provisions of Education Codesections 56700 and 56701 (Education Codesections 56536- 56541)

2. To aid newly organized elementary school,high school, or unified school districts

k (Education Code Section 41360)St To provide emergency apportionments (loans)

to school districts as provided by EducationCode sections 41310 and 41320 --41324

When such an apportionment has been made bythe Superintendent of Public Instruction, a statewarrant is.issued by the State Treasurer for the'entire arriount. Tli law specifies that the countytreasurer recei cli a warrant shall deposit it tothe credit of the General Fund of the districtdesignated in t e appoi-tionment. The districtrecords should reflect the receipt of the credit.

Example:Da% Accuu Ia

4-10-71,x, Cash in County Leciaii+vAccount Payable, Stati

(Long-Term Debt)

Lealon

$5.360

:To re.c.grq credit received for a loan riot') tile: 6tote Generalto finance, the establishment of the new classes for the mentallyretarded 1$2,680 payable during 1971-72 and $2,680 payableduring 1972-73)

The repayment of the loan will be automaticallyaccomplished by the withholding of half of theamount from regular apportionments being cred-ited to the distiict during each of the next twofiscal years. The practice of the State Controller isto make the withholdings over a period of fourmonthsFebruary, March, April, and May. Accord-ingly, during each of those months (in'1973 in theabove example), one-eighth of the total loan willbe subtracted from the amounts otherwise due thedistrict from the State School Fund in accordanceWith . regular apportionment calCulations:. Thismeans that the credit to the district finds an-/

nounced by the county superintendent will besmaller by the same amount than the announce-ments by the State Superintendent of PublicInstruction would indicate. District records mustreflect this transaction in each of the monthsnamed in each of the two.years following the yearof the loan so that the liability will be properlycleared and the proper State School Fund appor-tionments credited. In the above example of aloan, the entry to be made by the district andrepeated seven times in the respective months is asfollows:

Crate AcCounts

2-20-72 Account Payable StateBasic land Equali-zation Aid

Dabit Ciacht

$670

$b /0Io ocord the withholding try thb ,tote Ut one eiyhth of theamount of the long-term loaf. received 4-10-71

-Any statement of financial condition preparedfrom the district records during or at the close ofthe fiscal year will shov, if the foregoing proce-dures are used, the proper amount of liability tothe state. This accounting procedure is indicatedby the instructions that accompany 'the AnnualReport of Current Liabilities, Form J-43. Theproper recording by the district of amounts with-held by the state is also in luded in the specificaudit instructions to a ountants conductingannual audits.

The repayment of a loan under Education Codesections 41320 41324 is done in the same man-ner, except that the principal repayment must beaccomplished over not more than a thrge-yearperiod (Education,Code Section 41323).

The interest and principal payment due annuallyon this emergency loan will be withheld from theschool district's regular apportionments. However,the district must record the amount due forinterest as a current expenditure under expenditureclassification 5800, Other Services and Expense forAdAistrative District wide Operation.

All loans; e.g., state emergency apportionments(loans), loans from a county board of supervisors=tax anticipation notes, and transfers (loans) fromspecial._ or restricted funds,. of the district(Education Code Section 42603) should berecorded in the same .basic manner as described inthis section.

4

Pad IlLe"

Expenditures

The Education Code limits school district expen-ditures to the amounts appropriat d for the several

e adoption andbudget or by

major expenditure classes byapproval of the school distrisubsequent intrabudget transfer: Because of thisbudget or appropriation control of expencfitures,the budget and all documents dealing with appro-priations must be prepared according to the sameclassification plan as that employed in the account-.ing of expenditures. Similarly, financial reports forlocal use as well as those prepared for county,state, or federal use should follow the sameclassification plan in order that their reliability forcomparative purposes is not impaired.

A basic classification, by object is the mostsuitable instrument for the classification of expen-ditures within a specified "program." Object classi-fications are for the most part self-explanatory,such as "teachers' salaries" or "custodians'. sala-ries." The purpose or "function" that the employeeserves is covered by the program designation..Thenumbering system iused is adaptable for use withmanual systems arid with data processing eqUip-ment. The system is designed to be used either inits minimum required foim or in expanded form toallow for as many subaccounts as desired.

County auditors and county superintendents ofschools who maintain detailed records of thefinancial transactions of school districts for budgetcontrol of expenditures or 'for any other .purposeare required to use this manual as a guide.

Districts should identify the origin of eachschool district expenditure by designating theappropriate program and object classifications bnthe orders or requisitions, commonly called war-rants or 'warrant registers. The officials of theschool district who have direct knowledge of thenature and purpose of each expenditure shouldmake decisions regarding the'object classificationsto be used for each expenditure at the time that

.4-77995

41

commitments are made. The account or accountsto be charged should be selected when good's orservices are ordered or when certificated or classi-fied employees are assigned or reassigned.

Insofar as it is feasible, notices of employment,copies of contracts, and other school districtdocuments relating to expenditures or to commit-ments that will become expenditures should bearthe designation of the object for review andapproval of county superintendents of schools.This procedure permits any questions concerningthe classification of expenditures to be settledpromptly. One decision regarding object classifica-tions can thus serve for the several disbursementsto be made at future dates, such as monthly salarypayments. Furthermore, this procedure is neces-sary if the encumbrance plan of_ accounting isemployed by either the school district or thecounty superintendent of ,schools.

Whether or not object classifications are shoWnon commitment. documents, such as notices ofemployment and copies of contracts, all schooldistrict orders should show the object classifica-tions applicable to such disbursement. A part ofthe examination and approval of such orders bythe county'. superintendent of schools shoiild con-sist of making sure that the object classificationsare correctly designated. County superintendentsof schools should serve as coordinating officers toensure that all school district officials understandand apply uniformly the definitions and instruc-tions contained in this manual. Where necessary,county superintendents should consult school dis-trict officials regarding each seemingly incorrectdesignation of the expenditure classification andadvise the school district of any changes madb bythe office of the county superintendent.

County superintendents of schools, when draw-ing requisitions on the funds of school districts inthose relatively infrequent instances in which they

E11-1

,49

are authorized or required by law to initiate thedisbursements, shOuld designate the object classifi-cations applying to such payments and inform thedistrict of the 'date, payee, purpose, amount, andobject classifications of each requisition so drawn.County superintendents should also notify theschool district of the date, purpose, amount, andobject classifications of any amount withdrawnfrom the funds of the school district other than bydistrict order or county superintendent's requisi-tion and of the amounts withheld from apportion-ments of state funds that are to be treated asexpenditures, such as the amount withheld fordistrict repayments of school building apportion-ments.

The object classifications should be designatedon every warrant or warrant register so that countysuperintendents of schools may maintain theaccounting records of expenditures' necessary forbudget control of expenditures and for annualrepoA purposes.

The instructions in° this part of the manual areapplicable to the budgeting, accounting, andreporting of the General Fund and of all specialfunds of every school district.The designation ofkhevobject classifica. lions applicable to any partic-ular expenditure shall not be understood to meantliat such expenditure represents an expenditure ofthe General Fund or of any particular special fund.The selection of the fund for any particularexpenditure must be made in accordance with theprovisions of law; and if two or more fundsmay legally be employed, the determination of aparticular fund must be made by action of thegoverning board of the school district or of itsadministrators.

The instructions in this part of the manualproVide for the uniform identification and classifi-cation` of, all expenditures cft School Oistricts and inthe County School Service Vund fiscal operations.They should be employed in the day-by-dayaccounting of expenditures during a fiscal year, intile preparation of the budgets of the CountySchool Service Fund and school districts prior to,or at the beginning of, the fiscal year, and in the

County superintendents of schools are required to manittancontrols of school district expenditures by objects under the pro-visions of Education Code sections 4 L014 and 442600,

fII-2-1

preparation of periodic financial reports, includingannual financial reports at or after the close of thefiscal year. They should be used as guides in theaccounting of the district expenditures by allofficials of a district who have fiscal responsibilitiesand by county superintendents of schools andmembers of their staffs.

The school district and County School ServiceFund "Annual Financial and Budget Report"furnished by the Superintendent of Public Instruc-tion contemplates the use of the accrual basis forthe accounting of expenditures and use of a partialaccrual basis for the accounting of income of thefunds of school districts and the County SchoolService Fund, except for the Bond Interest andRedemption Fund. The accounting and reportingof school district Bond Interest and Redemptionfunds either on the cash basis or the accrual basis,as determined by each county auditor, is accept-able to the Superintendent of Public Instruction.

GENERAL INSTRUCTIONS

School districts and county supelintenknis ofs,-liools are required to ieport expenditures accoid-ing to the object classification plan presented inthis part of the manual.

Objects of expenditure represent all tile things,whether goods or services, that may be purchased.Examples are salaries, supplies, and equipment.

Objects of expenditure may be classified inmany different ways. They may be grouped undersummary headings, or they may be presented ingreat detail. Grouping under summary headingsreduces volume -at the expense of clarity. Greaterdetail improves understanding but is costly toproffuce. Ili actual practice,, considerable detail isused in developing budgets and recording expendi-tures; then, for reporting purposes, this detail issummarized under- more general classificationheadings.

All objects of expenditures listed in PartExpenditures, must be maintained by all schooldistricts and county superintendents of schools intheir day-to-day accounting of expenditures duringa fiscal year. The use of these objects will facilitatethe -preparation of budgets and the various finan-cial reports requested by federal, state, county, andlocal agencies.

50

. Minimum budgetary control of school districts'accounts by offices of county superintendents ofschools must be maintained on the following majorobject of expenditure classifications:

1.9B0200030004000

5000

60007Q(X)79b0

Certificated SalariesClassified SalariesEmployee BenefitsBooks, Supplies, and Equip-ment Replacement

Contracted Services and OtherOperating Expenses

Capital OutlayOther Ou goAppropritingen es

on for Con-..

SECTION AObjects of Expenditure Classifications,

Their Content, and Instructions.Regarding Their Use

1000 Certificated Salaries '14

Certificated salaries are salaries for services that require acredential or permit issied by the Commission for TeacherPreparation and Licensing.

Salaries pqid to an employee on leave of absence' shallcontinue to be charged in the same manner and to the sameaccount classification as was applicable while the employeewas in active service for the district.

1100 Teachers' SalariesRecord the full-time, part-time, and prorated por-tions of salaries for all certificated personnel ,p'employed to teach the pupils of the district orpupils in schools maintained by a county super-intendent of schools. Include salaries for teachersof speCial Classes, teachers of exceptional children,teachers of physically handicapped and mentallyretarded minor's, substitute teachers, and instruc-tional television teachers.

The separate recording of teachers' salaries is

required by Education Code Section 41011 and islimited to salaries of certificated employees paid toteach the pupils of the district or pupils in schoolsMaintained by a county superintendent.

The following comments, interpretations, and defi-nitions are included to guide school officials in

determining whether the total salary or a portionof the salary should be charged to classification1100, Teachers'Salaries.

The total salary is recorded in classification 1100,. Teachers' Salaries, under the following conditions:

The teacher is an employee of the district/office ofthe county superintendent in a position requiringcertification qualifications. The teacher's dutiesrequire him to teach pupils of the district for atleast one full instructional period on each schoolday for which he is employed, and he i§ assigned noduties other than those that are connected with, orare extensions of, classroom teaching. Such activi-ties are limited to the following:

1. Preparation for and evaluation of classroomwork

2. Extracurricular activities that arise out ofclassroom work and are an extension of it(e.g., class or club sponsorship, supervision atschool functions, or chairing of an academicdepartment)

3. Management and instruction in a study hall4. Duties that are ordinarily assigned to certifi-

cated personnel in connection with the cus-tody and control of pupils at recess, lunchtime,after school, or at other times

The salary must be prorated under the following'conditions:

If a certificated employee teaches at least oneinstructional period each day that he is employedto teach and is also assigned other duties neither inconnection with, nor extensions of, classroomteaching, his salary must be prorated and recordedin classification 1100, Teachers'Salaries, and in theother classifications that provide for recording the

.expenditures for the other assignment. The amount,recaded in classification 1100, Teachers' Salaries,is the product of dr employee's complete salaryaid the fraction of tie full-time school day of theemployee spent as a classroom teacher in theperformance of duties that are in connection with,or an extension of, classroom teachiRg, as limitedherein. The remaining portion is the charged ,--to

the classification in which expenditures for theother assignment are recorded. It should be unp-stOod that some of the other assignments maypertain to work outside the field of teaching; and ifa teacher performs such assignments, it will be

necessary to prorate a portion of the salary ,tosubordinate classifications other than 1100,Teachers' Salaries.'

The term other asggriments includes, but is notlimited to, assignments usually and specificallyassigned to certificated persons employed in thefollowing types of positions: .

ti,,mui1. General s ervisors, coordinators, directors,specialists, co tants, supervisors of specialsubjects or grades, and certificated assistants

2. Principals, vice-principals, assistant princi-pals, deans, and assistant deans in individualschools

3. Librarians, aksistant librarians, audiovisualpersonnel, counselors, nurses, psychologists,psychometrists, audiometrists, and guidanceand attendance personnel

The term other assignments also includes, but iinot limited to, assignments usually and specificallyassigned to persons in the classified service em-ployed as school bus driver, custodian, secretary tothe governing board, and supervisor in transpor-tation. '

t V

1200 School Administrators' SalariesRecord theofull-time, part-time, and prorated por-tions of salaries of principals, vialkrincipals,administrative deans in individual schools, andother personnel performing similar duties.

1300 Supervisors' SalariesRecord the full-time, part -time, and prorated por-tions of salaries for certificated personnel engagedin the supervision of instruction, including generalsupervisors, coordinators, directors, consultants,and supervisors of special subjects or grades andtheir certificated assistants.

NOTE: The term supervision is used to designatethose activities having as their purpose the actualimprovement of instruction under the direction ofsupervisors and assistants. Such activities include (1)personal conferences with teachers on instructionalproblems; (2) classroom visitation; (3) group confer-ences with teachers; and (4) demonitration teaching.

1400 Librarians' SalariesRecord the full-time, part-time, and prorated por-tions of salaries of all certificated personnel per-forming services of a librarian.,

111-44.

4

1 500 Guidance, Welfare, and Attendance SalariesRecoid the full-time, part-time, and prorated por-tions of salaries of social workers and all certifi-cated personnel doing pupil personnel work;psychologists and psychometrists; and counselors.

1600 Physical and Mental Health SalariesRecord the full-time, part-time, and prorated por-tions of salaries in payment of health servicesrendered by physicians, oculists, dentists, anddental hygienists, nurses, - optometrists, schoolaudiometrists, psychiatrists, otologists, .chirop-odists, and such other personnel as are authorizedin the field of physical and mental health and whoare on the payroll of the school district.

Expenditures for health services by personnel noton the payroll of the school district are recorded inclassification 5100, Contracts for Personal Servicesof Consultants, Lecturers, and Others.

1700 Superintendents' SalariesRecord the full-time, part-time, and prorated por-tions of 'salaries of superintendents and of deputy,associate, area, and assistant superintendents indistricts and offices of county superintendents ofschools (Education Code sections 35028, 35030,44065, 44066, 44069, and 35029).

1800 Other Certificated Salaries of District andCounty Administrative OfficesRecord the full-time, part-time, and prorated pgr-tions of salaries of administrative assistants anddirectors of administrative activities such as pupilservices or special projects.

1900 Other Certificated SalariesRecord full-time, part-time, and prorated portionsof salaries for all certificated personnel that do notfall within one of the categories specified (e.g.,resource specialist, program specialist, certificatedcivic center employee, resource teacher not per-forming duties as classroom teacher, and certifi-.catednoon playground supervisor).

2000 Classified SalariesClassified salaries are salaries for services that do not requirea credential or permit issued by the Commission forTeacher Preparation and Licensing.

Salaries paid to an employee on leave of absence shallcontinue to be charged in the same manner and to the same

52

account classification as was applicable while the employeewas in active service for the district.

2100 Salaries of Instructional Aides for DirectTeaching AssistanceRecord total salaries paid to instructional aideswho are required to perform any, portion of theirduties under the supervision of a classroom teacheror a special education resource specialist (Educa-tion Code sections 56334 and 41011).

2200 Classified Salaries of Personnel in CountySuperintendents' Offices and DistrictAdministrative PersonnelInclude governing board members and personnelcommission members. Record the full-time, part-time, and prorated portions of salaries of super-visory personnel who are business managers, con-trollers, 'directors, chief accountants, supervisors,purchasing agents, assistant superintendents, andsuperintendents. (For assistant superintendents andsuperintendents, see Education' Code sections 35028,35030, 44065, 44066, 44069, and 35029).

2300 Clerical and Other Office SalariesRecord the full-time, part-time, and prorated por-tions of salaries paid to clerks, secretaries, accoun-tants, bookkeepers, machine and computer opera-tgs":"Iita-switchboard operators under the appro-priate program(s) for which they serve.

2400 Maintenance and Operation SalariesRecord the full-time'; part-time, and prorated por-tions of salaries paid to maintenance and operationpersonnel as follows:

Maintenance: carpenters, painters, plumbers, elec-tricians, and so forth.

Operations: custodians, matrons, general utilityworkers, firemen, dairy workers, watchmen, gar-deners, elevator operators, warehouse workers,delivery personnel, truck drivers, and so forth.

2500 Food Service SalariesRecord full-time, part-time, and :prorated portionsof salaries of nutritionists, cooks, helpers, and allother food service personnel except those engagedin the management of the food services program ona districtwide basis. The salary of a classifieddirector of food services at a single site is recordedunder object classification 2500.

The salary of a classified director of food services,if districtwide, is recorded under object classifica-tion 2200, Classified Salaries of Personnel inCounty. ,Superintendents' Offices and DistrictAdministrative Personnel.

The salary of a certificated director of foodservice) if districtwide, is recorded under objectclassification 1800, Other Certificated Salaries ofDistrict and Canty Administrative Offices.

2600 Traniportation SalariesRecord the full-time, part-time, and prorated por-tions of salaries paid to bus drivers, mechanics,field coordinators, gasoline pump attendants, andall other personnel whose assignments are relatedto the transportation of students.

2900 Other Classified SalariesRecord full-time, part-time, and prorated portionsof salaries not identifiable with object classifica-tions 2100 through 2600 (e.g., noon supervisionpersonnel, students,-community aides, health aides,library aides, and building inspectors).

3000 Employee BenefitsRecord all expenditures for employers' contributions toretirement plans and for health and welfare benefits foremployees or their dependents, retired employees, andboard members.

3100

3200

3300

State Teachers' Retirement System Fund

Public Employees' Retirement Fund

Old Age, Survivors, Disability, and HealthInsurance

3f00 Health and Welfare Benefits

3410 :Health and Welfare Benefits forTeachers and instructional Aides

3420 Health and Welfare Benefits for AllOther Employees

3500 State UnemploymentInsurance

3510 Unemployment Insurance for In-structional Aides

53

3520 Unemployment Insurance for AllOther Employees

3600 Workers' Cqupensation Insurance

3900 Other Benefits

4000 Books, Supplies, and Equipmentment

Replace-;

Record under theepropriate subclassification all purchasesby contract or by purchase order for books, supplies, andequipment replacement; include costs for freight andcartage.

4100. Textbooks (In' accordance. with state re-quirements)Record under the appropriate subclassification thetotal amount expended each year 9n supplemen-tary textbooks or basic textbooks; include' teach:ers' manuals and teacher editions. Definitions to beemployed in classifying theftxpenditures follow:

ElementaryFor elementary school, includiqg grades seven andeight of junior high school, "state textbooks" arethose textbo9ks adopted by the State Board ofEducation for use in elementary schools.

A "basic textbook' its a volume intended for use bypupils .as a principal source of study material forthe completion of a subject or course. In style,organization, and content it should meet the basicrequirements of the subject course fo? which it isintended.

A "supplementary textbook" is a volume thatcovers .part or all of a subject or course 130 is notintended for use as a basic textbook. A supplemen-tary textbook is intended to supply information inaddition to,. or in extension of, information pre-sented' in the regular. or basic textbook. Thegoverning board may' purchase and adopt supple-mentary textbooks in addition to those free text-books supplied to the district. "Supplementarytextbooks" shall be distinguished from reference orlibrary books by the fact that they are supplied inquantities permitting use by a group or the entireBlass.

Teachers' manuals and teachbr editions relate tothe specific basic or supplementary 'textbti9k in-tended for teachers' use rather than for pupils'use. d

High Schoql-For high school, including grades nine throughtwelve, "textbooks". (as defined in the California

H1-611%

4200,

54

Administrative Code, Title 5, Education, Section_9-510 [al) that ate adopted for use as high schooltextbooks by the governing board of the districtunder provisions of Education Code Section 60400shall be recorded in classification 4100, Textbooks!

Edon Code Section 60400 provides that onlytextbooks produced by publishers who have filed, abond with the State Board df Education may beadopted by the governing board of a school districtfor use as textbooks in the schools of the district.School officials should distinguish textbooks conthe basis of adoptions made by the governing bondof the district.

Teachers' manuals and teacher editions relate tothe specific basic or supplementary textbook in-tended for teachers' use rather than for pupils' use.

. 4110 Textbooks (General Purpose Funds) '

T:'

4Record regular purchases of textbooks.

4140 Textbooks. (Education Code. Section60242, Kindergarten Through GradeEight Only)Record purchases of textbooks with funds ,2),

apportioned by, the state for instructional ,

materials purposes under Edueation CodeSection 6242.

Other.Books:Record under the appropriate subclassificationexpenditures for (1) books that have not beenadopted by the proper authority for use as text-books; (2) books such as reference books that areavailable for general use by students even thoughsuch books may be used solely in the classroom;and (3) all other books used for reference purposessupplied in quantities too small for group use. Inaccordance with state requirements, library booksare included.

Expenditures for periodicals, magazines, work-botelcs, test Materials, drill books, or, exercise padsand Department of Education bulletins and the likeare 'recorded under j object classificatiOn. 4300,Instructional Materials and Supplies.

Expenditure's for school library liooki for-a newschool library or for material expansion are re-corded Under object classification 6300, Books andMedia for New School Libraries or .Major Expan-sion of School Libraries:

4210 Other Books (General Purpose Funds)Record regular purchases of other books.

4240 Other Books (Education Code Sec-tion 60242, Kindergarten ThroughGrade Eight Only).Record purchases of other books withfunds apportioned by the state for instruc-tional materials purposes under EducationCode Section 60242).

4300 Instructional Materials and SuppliesRecord under the appropriate subclassificationexpenditures for all supplies to be used by pupils,teachers, and other personnel in connection withthe instructional program. Include all tests, peri-odicals, magazines, workbooks, and any othersupplies used in the classroom. Exclude any itemsof equipment as defined in Part IV.

4310 Instructional Materials ,and Supplies(General Purpose Funds)Record regular purchases of instructionalmaterials and supplies.

4340 Instructional Materials (EducationCode Section 60242, KindergartenThrough Grade Eight Only)Record purchases of instructional materialsWith funds apportioned by the stariinstructional materials purp,.-- 4,-ration fdp Certinn 6024)

4400 Instructional Media Materials and SuppliesRecord under the appropriate subclassificationexpenditures for purchases, only. of all instructional media materials and supplies for in

library and audiovisual programs. Exclud. arry

items of equipment as defined in Part IV.

Expenditures for rentals of materials are recordedunder object classification 5600, Contracts. Rents..and Leases.

"Instructional media materials" means thoseprinted and published instructional materials thatare suitable for use by. and are to be used by.children and teachers in elementary and secondaryschools and in library and audiovisual programs andthat with reasonable care and use may be expectedto last more than one year Include such items as

periodicals, documents, pamphlets, photographs,.reproductions, pictorial or graphic works, musicalscores, maps, charts, globes, sound recordings(including but not limited to those on- tapes anddiscs), processed slides, transparencies films, film-,strips, kinescopes and videotapes, protiessedmicro-film, models, realia, or any other printed andpublished or audiovisual materials of similar naturemade by any method developed..

"Instructional media supplies" means those sup-plies necessary for the cataloging, processing, stor-age, and retrieval functions of the instructionalmedia program. Supplies include, but are notlimited to, blank magnetic audio tape and video-tape, unprocessed photographic film, unprocessedtransparency film and transparency productionsupplies, and other supplies necessary for book andaudiovisual cataloging and processing. This term.does not include furniture and equipment neces-sary for the media program.

Expenditures for motion picture film and video-tapes of a material cost are recorded under objectclassification 6410. Audiovisual Equipment.

4410 Instructional Media Materials (Gen-' eral Purpose Funds Only)

Record regular purchases of instrnrtionalmedia materials

1

1

'Instructional Media SupPlies (r :oneral Purpose I ands OW V)Record regular r- A ; -,rM.(fir!V sitrrilloS

JO Instructional Media Materials 'Edu-cation ("toe Sectiou 60241 Kindergar ten T h r gh Gracie FightOn 1 y )

Record purchases of instructional mediamaterials with funds apportioned by thestate for instructional materials purposesunder F.ducation ('ode Section (-4242.

4.00 Other Supplies

55

Record expenditures for other supplies such ascustodial, gardening, and maintenance suppliesother supplies for, operation, repair, and upkeep ofequipment, buildings and grounds. and vehicles:and other medical and office supplies.

4600 Pupil Transportqion SuppliesRecord expenditu4s for fuel, oil, tires, parts forrepair, small tools, anil so forth..

4700 Food ServicesRecord under the appropriate subclassificatitinexpenditures for all food and supplies used in food-service programs or in a particular program orproject.

4710 Food.Record expenditures for food used intfoodservice programs for breakfast, snacks,lunch, and so forth, other than for instruc-tional purposes.

Expenditures for food* used for instructionin a regular classroom (e.g., in a cookingclass) are recorded under object classifica-tion 4390, Iftructional Materials andSupplies.

4720 Meals for Neetlyupils

4790 Other Food Services Supplies

4800 EquipmenReplacementRecord expenditures for articles of equipment, asdefined in Part IV, that are replaced on a piece-for-piece basis.

5000 Contracted Services and Other OperatingExpenselk&

Record expenditures under contracts for personal services.rents and leases, and other operating eYronses tlifh ac f-11.fg,travel, insurance, utilities, and legal.

5100 Contracts for P rsonal Services of Consul-tants, Lecture and Others for DirectAssistance to eachers, Pupils, or the Cur-riculum or Ilea th Programs

5110 Contra is for Personal Services (Gen-eral rpose Funds)1 de Western Association of Schoolsand Colleges (WASC) reports and testingservices. Record expenditures under con-tracts for services provided by the countysuperintendent of schools, other schooldistricts, or private enterprise.

5140 Contracts for Personal Services (Edu-cation Code SectiQn 60242. Kin-

111-8

dergarten Through Grade EightOnly)Record expenditures for personal servicesof consultants to assist in use of state-adopted-instructional materiali with fundsapportioned by the state for instructionalmaterials purposes under Education CodeSection 60242. Record all other expen-

r ditures for personal services under classifi-cation 5110.

.

5200 Travel and Conference ExpenseRecord reimbursements for actual and necessaryexpenditures incurred by employees' and otherdistrict representatives for travel and conferences(Education Code sections 35044 and 44032).

5300 Dues and MembershipsRecord the membership fee of any district orschool in any society, association, or organizationas authorized by Education Code Section 35172.

Record the membership fee of the governing board-in any organization as authorized by EducationCode Section 35172.

5400 Insurance

56

5410 Fire and TheftRecord expenditures for all forms of insur-ance covering the loss of, or damage to.property of the school district from fire,theft, storm, or any other cause. Alsorecord here costs for appraigalv of propPrtvfor insurance purposes

5420 Liability InsuranceRecord expenditures for insurance coverage of the district, its officers, and em-ployees against losses . resulting fromproperty damage or public liability.

5430 Fidelity Bond PremiumsRecord expenditures for any bonds guaran-teeing the school district against lossesresulting from t14 action of its employees.

5440 Pupil Insurance

Record expenditures for accidental deathinsurance and medical and hospital incurance for pupils.

5500 Utilities and Housekeeping ServicesRecord expenditures for water, fuel, light, power,telephdne, waste disposal, laundry and drycleaning,and so forth. Include contracts for these services.

5600 Contracts, Rents, 9fid LeasesRecord payments for rentals for, or leasing of,land, playground sites, athletic fields, equipment,and buildings.

Record payments to independent vendors forpurchase orders or contracts for transportation,maintenance, and repairs to buildings or equip:ment.

Record contracts with architects for repairs.

Record contracts for audiovisual services, libraryservices, arid services not otherwise designated.

5700 Legal, Election, and Audit ExpensesRecord assessments for Other than capital improve-ments, including state assessment for nonuse ofschool sites.

Record advertisements of bond sales and advertise-ments required by law.

Record 'judgments, lawyers' fees.audit costs, and so forth.

Assessments for capital improvements arr recordedunder object classification 6 tonprovement of Sites.

Advertisement; n "t r'fluire'l by law (e.g employ

election costs,

Cites d 1,71

merle noti,--" , Ird 11,1 OH,

tifIn CROO

CPm' Other Services and Expen, for inictrarive District wide OperationRecord expenditures for surveys, appraisals, andcosts of and interest on loans: physical examinations: fingerprinting: X rays: payments for damageto personal property: advertisements not requiredby law;.and so forth.

Appraisals in connection with site purchases arerecorded under object classification 6100, Sites andImprovement of Sites

5000 4derprogram (tharges and Creditsfor Directand Indirect Support ServicesThis object classification is not a budgetary classification but is a transfer classification to he usedonly to transfer interpiogram debits and credits for

direct and indirect support services, materials, andequipment. (See discussion on procedure in SectionB, Part Ill.)

6000 Capital OutlayRecord under the appropriate subclassification capitaloutlay expenditures for sites, buildings, books, and newequipment.

6100 Sites and Improvement of SitesRecord expenditures for each of the following:

Acquisition of land and additions to old sites andadjacent ways. Include incidental expenditures inconnection with the acquisition of sites, such asappraisal fees, search and title insurance, surveys,and condemnation proceedings and fees. If a site isnot purchased after the appraisal or survey, recordthe expenditure in classification 5800, Other Ser-vices and Expense for Administrative DistrictwideOperation. include demolition costs for removal ofold buildings on newly acquired sites.Improvement of new and old, sites and adjacentways. Include ..such work as grading, landscaping,seeding, and planting shrubs and trees; constructingnew sidewalks, roadways, retaining walls, sewers,and storm drains; installing hydrants; treating soiland surfacing athletic fields and tennis courts forthe first time: furnishing and installing, for the firsttime, fixed playground apparatus. flagpoles, gate,ways, fences, and underground storage tanks thatare not par's of building service systems; and doing

in t' will `fIr fIof sites

ravrn err, of Tree. ial acseternew,c Include accessments agairrt the school dist,* for capital improve,ments such as stre,.ts, curb. sewerspedestrian .... whothet ,411 (If

propertV

dra,ls, andoff schr4"/

6200 Buildings and Improvement of BuildingsRecord costs of construction or purchase of ne,./buildings and additions and replacement of Obsd-lete buildings, including advertising: awhiteeturaland engineering fees; blueprinting; inspection ser-vice (departmental or contract): 'tests and examina-tions; demolition work in connection with con-struction of new buildings: installation plumbing:installation of electrical. sprinkling, or warningdevices: installation of heating and ventilating

5 HI -9

fixtures, attachments, and built-in fixtures; andother expenditures directly related to the construp-tion or acquisition of buildings.

6300 Books and Media for New School Librariesor Major Expansion of School Libraries .

6310 Library Books

6320 Library MaterialsRefer to object classification 4400, Instruc-tional Media Materials and SUpplies, fordefinition of instructional media materials.

6400 EquipmentRecord expenditures for initial and additionalitems of equipment, such as furniture, vehicles,machinery, motion picture film, videotape, andfurnishings that are not integral parts of thebuilding or building service system. Equipment isdefined in Part IV of this manual.

Piece-for-piece replacements of equipment are

recorded under object classification 4800, Equip-ment Replacement.

Initial additional built-in fixtures that are an

integral part of the building or building servicesystem are recorded under object classification6200, Buildings and Improvement of iinartinfec

6410 Audiovisual Equipment

6420:4,ihkary Equipment

6410 Food Service Equipment

A 440 Pupil Transportation Fonirrn^niIncluding New Buses

6400 All Other Equipment

Note

A district may use day labor or force account within thelimits of the law (Education Code Section 39649) toimprove new or old sites, construct or improve buildings,and fabricate equipment. The expenditures for such daylabor or forCe account, including materials, shall be a directcharge to the Faciliti$ Acquisition and Constructionprogram. Such expenditures may include salaries of mainte-nance personnel (object classification 2400, Maintenanceand Operation Salaries), fringe benefits (object classifica-tion 3000, Employee Benefits), and necessary materials andsupplies (object classification 4500, Other Supplies).

III-10

7000 Other Outgo

7100 Debt ServiceDebt 'service consists of expenditures for theretirement of debt and for interest on debt,.exceptprincipal and interest on current loans (money.,borrowed and repaid during the same fiscal year).

7 10 Annual Repayment on Account ofPublic School Building Apportion-

rent

Li7120 Annual Repayment' on Account ofState School Huikling Apportion-

, ment

7130 Bond Redemption

7140 Bond Interest and Other ServiceCharges

Record expenditures for bond interest andband and coupon service fees.

7150 Repayment of State School BuildingFund Aid by Warrant to the StateTreasurer Out of Proceeds from Salesof Bonds (duoation Code Section16058)

7160 Payments to Original District forAcquisition of PropertyRecord expenditures to cover the liabilityof a "new school district" to the originaldistrict for its proportionate share of thebonded indebtedness of the origi,,n1(Education rode 11 4 n

7190 Other Payments

7200 Outgoing Tuition

7210 Tuition for Junior Ifikh School(Grades Seven and Eight) (EducationCode sections 37062- 37071)

7220 Tuition for Instruction Under Inter-district Attendance AgreementsRecord tuition under interdiitrict atten-dance agreenients for general or specificinstructional services, including transporta-tion, for designated pupils (EdUcationCode sections 46600- 46610).

58.

I

I

7230 Tuition for Instruction Provided in aTuberculosis or Polio WardRecord tuition for education provided in atuberculosis or polio ward, hospital, orsanatorium maintained ,.1)) a county orgroup of counties (Eduction Code sec-tions 56750-56752).

7240 Tuition and Transportation of Chil-dren Attending Classes for Handi-cappedRecord tuition and transportation costs ofchildren attending classes for physicallyhandicapped (Education Code sections+850 and 56709); 'educationally handi-capped (Education Code Section 56602);multiply handicapped (Education CodeSection 56031); and mentally retarded(Education Code sections 1880, 56519,and 56529) maintained by a county super-intendent of schools or by other schooldistricts.

7250 Tuition for Regional OccupationalCenters or Programs (Current ,

Expense)Record tuition paid (for current expenseonly) to those regional occupational cen-ters or programs operated under a jointpowers agreement. (See object classifica-tion 7290, Other Tuition, for regionaloccupational centers or p*,,g,'itrw ,,r-Totedby other school districts )

7260 Tuition for Regional OccupationalCenters or Programs (Capital Outlay)Record tuition paid (for capital outlayexpense only) to regional occupationalcenters or programs operated by otherschool districts or county superintendentsof schools; and regional occupational cen-ters operated under a joint powers agree-ment.

7270 Tuition for Nonimmigrant Children,Noncitizen Children, and ChildrenResiding in Foster Homes and Chil-

'ea

dren's Institutions (Education Codesections 42900-42911).

7280 Tuition for Exceptional Children.Record tuition paid for the education ofexceptional children for whom no 'appro-priate special education facilities and ser-vices are available or can be provided

%.:. (Education Code sections 56030-56038and 56332).

7290 Other TuitionRecord tuition paid (for current expenseonly) to those regional occupational centersor programs operated by other school dis-tricts not under a joint powers agreement.Also record tuition not otherwise identified.

Note

lnterdistrict payments for specific services provided byone school district for another (such as health, administra-tion, instruction, or transportation services provided thepupils of one district by another district) should be chargedto object classification 5600, Contracts, Rents, and Leases,and to the appropriate program for the service. When suchan interdistrict payment is received, it must be accountedfor and recorded on any financial reports of the districtreceiving the svment 3 vetlivotiola of Oir faa.

ql,e1) service.

amplp.

Two school districts contract with each other f,:npupil transportation services. The followingused in reporting such transactions:

District A, which receives pupil transportation services, charges object classification 5600. Contracts.Rents, and Leases, and the Pupli"Transportation pro-gram.

District B, which performs the services, recordsincome (reimbursement from district A) as an abatementto the appropriate object of expenditure for suchservices and thereby reduces the expenditure charged tothe Pupil Transportation program. (Objects of expendi-ture that may be abated for such income are classifica-tion 2600 for salaries, appropriate subclassifications ofthe 3000 series for employee benefits, classification4600 for supplies: classification 4R00 for equipment

replacement, classification 6440 for new equipment, andany others appropriately charged in theperformance ofthe service.)

If the actual expenditures for abatement purposescannot be identified, the total income received shall beallocated On a reasonable basis to object classifications2600, 3000, and subclassifications 4609, 4800, 6440, andothers; and to the appropriate prOgram.

The gross amount expended, the amount recovered bypayments from one or more other districts, and the netamount of expense are desk, ble for local cost studies.Costs should be available for state reports if requested.

For accounting of interdistrict payments for cooperativeprojects, see section .111 -C of this manual.

7300 Interfund TransfersRecord the following transfers:

7310 From the General Fund to the ChildDevelopment Fund and the Develop-ment Centers for Handicapped PupilsFund (Education Code Section41013 and California AdministrativeCode, Title 5, Education, sections15050 15052)

7170 Between the General Fund and theSpecial Reserve Fund (EdurntionCode sections 17R40 471:4,13)

7'r the Public School Building Fundor to the State School lluirdin Fundfrom ,1I1 Other funds of "le 1)isirict(Educatie,,, 1,7 'if; ?1160Q5Record traocfer of any monins of thedistrict that are required to be expendedfor the project for which Ruch apportionment was made.

7340 From the Bond Interest and Redemp-tion Fund to the General FundRecord transfers of monies from the BondInterest and Redemption Fund, after allprincipal and interest payments have beenmade. to the General Fund or to theSpecial Reserve Fund (Education Codesections 15234-15235).

7390 Other Authorized InterfundTransfers

111-12

7400 Other 2 ransfers

7410 From Funds of a Lapsed or Reorga-1 nized School District to Another

School District (Education Code Sec-tion 35724)

7420 To the County School Service Fundfor the Education of Mentally Re-tarded MinorsRecord transfers in school districts withless than 901 units of average daily atten-dance in the elementary schools of thedistrict (Education Code Sedtion 1880):The funds are raised by a special tax andtransferred by the county auditor.

7430 To the County School Service Fundfor Special Education Students (Edu-cation Code Section 1705)

I

7900 Appropriation for Contingencies (formerlyUndistributed Reserve)Appropriation for contingencies is that portion ofthe current fiscal year's appropriation that is notdesignated for any specific purpose but is heldsubject to the intrabudget transfer; that is, transferto other specific appropriations as needed duringthe fiscal year. No expenclitu stall eimT 17(

ucorled under this "I ,;ci

't 1

SECTIOrtaDirect Costs, Dii=oict Support Costs,

and Indirect Cost DistributionI he distr-ibution of direct costs to all programs

and the subsequent distribution of direct supportand indirect costs provides the means for assessingthe fiscal impact of operating all programs. Thiskind of cost identification is critical to the develop.:ment of a meaningful management informationsystem.

Methods of allocation of direct costs and distri-bution of direct support charges and indirectcharges are presented herein for eleterrninPtio'n oftotal program costs.

Direct Costs

Direct costs are those expenses which can hecharged directly as a parr of the cost (If a product

or service, of a department or operating unit, or ofa program. Direct costs are distinguished fromdirect support costs, which can be distributedamong one or more programs, and indirect costs,which must be distributed to all instructionalprograms, special projects, and auxiliary programs.

All direct costs charged to programs are classi-fied as- objects of expenditure. These objects ofexpenditure are discussed in detail in Part III,Section A. (See also Exhibit I-D-1 , Normal ObjectClassification of Expenditures by Major ProgramFunctions.)

Direct costs should be charged to the programmost clearly identified with the purpose for thecost. Examples of costs easily identified with aparticular program are teachers' salaries, busdrivers' salaries, and textbooks.

O%her direct costs such as employee benefits,substitute teachers' salaries,, and miscellaneousinstructional suppliescosts that are not so easilyrelated to specific programsmay be charged toholding (suspense) programs for subsequent reallocation to using programs.

Direct Cost Proration%

Direct cost prorations may he defined as theassignment or distribution of costs to programs inproportion to the bc,iefits 9trrh expenditurcs provide inequitaHrequireprogrambe t we-m

accordance with a for rntria or otherprocedrir- T we, kinds ref cl;irrq costs

proration thrse charged 10 a holelineOf ea HOC:\ tir I d t'' --!;e c, littwo cr mot o. pro". .1

initial tecot(litiv , $1

rrognitnc

The holding program is a suspense account.which hold-. th- costs temporarily until they areassigned to the rinpropriate using program. Directcosts such as employee benefits, substituteteachers salaries, and miscellaneous instructionalsupplies are difficult to assign directly becanse theyare lump sum payments. The use of holdingprograms facilitates timeliness of detail accountingprocesses and allows for clear determination of theappropriate placement of charges.

Sub'stitute teacher salaries The method ofallocating the costs of short- and long-term sub-stitute teachers should he based upon the numberof rertificritpd ten.--bin personnel eligible for cub

stitutes. Since the salaries of substitutes may 8econsidered a fringe benefit of the teacher and anormal cost of all programs, both long- andshort -term salaries may be chafged toall programs on a pro rata basis.

The total cost of employing substitutes may bedivided by the number of eligible certificatedteaching personnel and allocated to the programsin proportion to the number of eligible certificatedteachers in the program. Collecting these costs bysite may be preferred so that the pioration isrelative to experience at each site. The proration ismade monthly from a holding program in GeneralSupport.

Employee benefits. It is recommended that the-holding program for employee benefits be locatedin General Support. For example, the personnelprogram might be used for holding purposes. Theproper object of expenditure is' used with theinitial charge to the holding program, as in thefollowing example:

Description

'1TRS Fund Exr'ense (holding)

rash in Cc, ..... vTreasury

'nstructional Program Employixtrtanafil Expo

Detailed expense code

Pro-Site '3bjec gram

con ?nn

r3 or, n I (111

110C.

XXx

"TRSExpense(Holding) 500 3100 XXX

Amount

Debit

r 1

2,500

NOT F he twn er tr represent (a) the initial oar°, ding of a StateTeacIv-rs tiRtitotn, nt Systpol ( rlishyrsement in its pr nperobject and hnlding arn; end (b) the sobsiagiteot proration ,'f ashare o' the State rear hers' afrt i PITynn t Systp", rind porn 'heholding prOgrArn to an instructional orograrn, T or purroses ofmaking this employee,benefit exoense allocation, factors 'nay beestablished in the pPyroll system representing amounts per rertifip10(1 PIYInieWnp anti n,,,ounts ppr rOaceifiorl ampinypa.

Miscellaneous instructional supplies. Miscel-laneous instructional supplies that are not identiliable with specific instructional programs at the

r' time of purchase should be charged to a holdingprogram (subclassification of object of expenditureclassification 4300) in the instructional administra-tion or instructional media programs for subse-quent distribution. The miscellaneous suppliesshould he allocated monthly to the instructionalprogramc based con actital ncrige (or eon The tqT1C+ of

61111 I 3

each program's enrollment to the total accumu-lated enrollment of all instructional programs.

Two or More Programs

Salaries of p-ersonnel working in two or moreprograms are prorated on the basis of time spent ineach program. Equipment and services utilized bymore than one program are prorated on the basisof equipment usage and the percent of serviceprovided to each program.

Direct SupportDirect support charges constitute a reallocation

of portions' of the direct costs accumulated in thevarious support programs. In order to comply withthe requirements of the Annual Financial Reportof Programs as well as requirements of certainother programs for which these direct supportcharges are required for state reporithg, eachdistrict superintendent and county superintendentshall allocate the portions of the direct costs in thesupport programs for services rendered to theinstructional programs, special projects, and auxil-iary programs. The following criteria may heapplied to identify a charge as direct support:

The costs of services are readily arid reason-ably identified as support to s particularprogram.

of the Usill1. PrOgialT1/ The adrhiniStratETusually has sortie control oversihility for, the costS. of seyvices.The costs of .sAiift§S$ in quest:onlonger be n'eci's-q9,:f 1`1"P","dicOTitinlleri

would nor` I

One example of a direct support charge is thecost for a field trip charged (debited) to an

instructional program and credited to the trans.portation program a service that was specificallyrequested for an instructional program beyond thenormal home-to-school transportation cervices pro-vided to students.

Another example is the salary, or proratedportion of ,the salary, of a psychologist whoprovides a specific service to a special educationinstructional program.

'Direct costs of support programs also may becharged to other support programs as direct sup-port charges. For example, the instructional mediaprogram requests maintenance on its equipment:

the cost of the time and material is shown initiallyas a direct cost of the maintenance program butsubsequently is distributed as a direct supportcharge to the instructional media program.

Auxiliary .programs, such as food services, maybe subject to the/ distribution of direct stsportcharges to or froth other programS. For example,the direct costs of special preschool meals initiallyare charged to the food services program andsubsequently distributed as direct support chargesto the preschool program.

As another example, the direct costs of custodialservices are initially charged to the operationsprogram and then distributed as direct supportcharges to the food services program.

If a support program's services directly benefitother programit-such as transportation servicesprovided to an instructional program for a fieldtrip-the costs should be charged to the usinginstructional program in much the same way thatan outside firm would charge for its services. Thecharge is actually a transfer of costs by the use ofan interrfagram charge and credit transfer.

Several methods may be used to accumulate andallocate direct support charges. The intent of thissection is to authorize sufficient alternativemethods to meet individual needs while at thecame time maintaining a system that developsreasonable comparable data among all school dis-tricts and offices of county superintendents ofschools. One or more alternative methods shall heavailable for each support and auxiliary program tohe used in determining direct support chlrf s Therpet1I,,(1.7 qhfvvy ertrh ;III 1

Description of MethodsSome methods that may be used to allocate

direct support charges are the following:

Time-and-materials method. The costs of salariesand benefits are accumulated in proportion to theactual time spent and the cost of materials used (ifany) on a given assignment.

Frample

: The salary and benefits of the director of specialeducation are a direct charge to the district administra-tion program. The charges are prorated to each specialeducation program based on the actual turn/. spent andthe ryc't of any materials used

Support service program

Method.

Time andmaterials

Rate permile .

Workorder

A.d.a. orenrollment

Time-floorarea

Hourconsumption

Quantityconsumed

Instructional AdministrationInstructional MediaSchool AdministrationPupil ServicesaDistrict AdministrationMaintenanceOperationsTransportationa

X

XbX

.1-

a These suppOrt programs will are no residual costs remaining to be distributed as indirect costs.b Pupils actually, transported.

Figure III-1. Methods of Allocating Direct Support Costs from Support Service Programsto Instructional Programs, Special Projects, and Auxiliary Programs

Rate per mile method. Under the rate per mile-method, the total costs of operating a. vehicle aredivided by the number of miles driven. Thisformula may be based on the "prior year's costs oron estimated costs for the current year.4

Work order method. A variation of the time andmaterials method -is the work order method where-by charges for time for a specific jOb performed fora program and the cost of the materials used areaccumulated on work orders by the servicingprogram. The total cost from the work order istransferred as a direct support charge to the usingprogram. For example, a printing departmentmaintains a work order system for each jobperformed for all other programs in the district.

When actual costs cannot 11,, readily identiti,-dithen come method of proration !Mkt he used

Average daily attendance qr enrollment method.The average daily attendance or enrollmentmethod is a way of prorating costs by taking theratio of the pupils in an individual program to thetotal pupils served by the support program. I his isa simple method in which the assumption is madethat all pupils are served equally.

Example.-A team of psychologists serves three special education

programs: Program A, with 30 students: Program B, with20 students; and Program C, with 25 students. A ratio isestablished between ,the number of students in eachprogram and the total number in. the three specialeducation programs served by this team. The total costof the psychologists' salaries and benefits is $6,700 permonth. The cost' is allocated among the programs, 40percent ($2,680) to Program A: 27 percent ($1,809) toProgram B: and 33 percent ($2,21 1) to Program C.

%TiMe-floor area ,method. The time-floor aream hod is used to prorate expense to a givensprogram on the basis of the floor area occupied bythe program in proportion to the total floor areaand the percent of time such floor area is used.

Example:

The cost of treatment for an existing plant floor areaof 60,000 square feet is $1,000. One-third of the totalarea, or 20,000 square feet, is used for equal amounts oftime by classes for adults and classes for each of gradesnine through twelve. The classes for adults consumeone-fifth of the class time: therefore, the amount ofexpense distributed to classes for adults is one fifth ofone-third of $1.000. or $66.67

Hour-consumption method. Proration of anexpenditure by the hour - consumption method ismade by charging the prow am in plc.-portion t slit.1-ngth of tiro, the plogrnio lisps the 6, Pi t i-7

yem7rIp

('lasses for the mentally retarded use certain sihoolfacilities. Expenditures for water, electricity, and heatare prorated on the basis of the hours the building is usedfor classes for the mentally retarded in proportion to theamount of time the building is used for all types ofClasses,.

Quantity-consumed method. The quantityconsumed method is used to prora.te expense to agiven program in proportion to the actual amountof supplies consumed

1..-yample

Paper towels are purchased at a cost of $1,000One-tenth of the towels are used by recreatioritl groupsin. the community service program. Ten percent. orS100, is a proper charge to this activity

111.1 5

. After an allocation of support program chargeshas been made, the cost of a support program willappear as total direct costs plus direct supportcosts from other programs, less direct supportcharges to other programs. The cost of an instruc-tional program will appear as total direct costs plusdireCt support charges.

Direct support' program charges shall be distri-buted,

(-

but they should be shown separately and asan addition (debit) to the programs they directlysupport. As direct support program charges areadded to other programs, a like amount will besubtracted from (credited to) the support programsfrom which the charges were distributed.

. Application of Methods

Special Projects

Special projects are unique in that they havetheir own funding and are entirely in support of aninstructional ,program or another support program.The donor-authorized support services have alreadybeen charged as direct costs to the special projects,so no further distribution is necessary unless thedistrict provides local or general state aid supportfor these projects.

SPFCIAI. NO1F The distribution of the special projects to theinstructional prortrams is at the discretion of the district and isktiot required for 0.1:11e reporting Ilnwever the specill prilectsshall nos he distributed to the inst.' t

the iltrijr el I 11:1V htt 911111,ri

The method ''f allocating distr;: contr;butitisas direct cilio/Nv 1, -T ;,1 T, -1,911

10110wc-..

1 Salaries of the district director of projects.salaries of clerks, employee benefits, supplies.and other costs charged tlirectl to the districtadministration program titrir and mpteriqlcMethodInstructional media service costs and mediaequipment rental time and materials or workorder method

3. Pupil services costs, such. as salaries forpsychologists and nurses, employee benefits,special testing, and physical examinationstime and materials method

4. Custodial and other operations costs timeand materials method, time-floor area method, or quantity-consumed method

111 16

5. Food services coststime and materials orquantity-consumed method

6. All other chargestime and materials methodInstructional Support

Costs of. services that are readily and reasonablyidentifiable within the instructional administration,instructional media, and school administrationprograms, which support various instructional andauxiliary programs, shall be transferred to the usingprogram through the use of an interprogram chargeand credit transfer: Examples' of such costs areelementary and secondary supervisors' and clerks'salaries and employecbenefits; costs of services forthe use of instructional media and costs of mediaequipment rental for a particular program; prin-cipals' and clerks' salaries; employee benefits; andsupplies. All remaining costs shall be distributed asindirect costs as shown on page 111-1 8.

Pupil Services

All pupil services: costs shall be distributed asdirect support charges through the use of aninterprogram charge and credit transfer. Noresidual costs will remain in 'this support service tobe distributed as indirect costs.

Attendance and welfare. Rttenciance and welfarecosts shall he distributed on an enrollment or a.d.a.basis to all instructional progra,tis. Fxcption:costs of att-hdance and welfare personrI thatare assigned to a particular pl nt, s,,ch asschool, shall he direct stirtto -1- Ii, tie and materials method

Ceeidarice (rid e olenselitig Guidance and counseling (.,)ct9 that are rrldilv lnd reasonably idePtified:ball he di,utit.uttti r,n , tun and I,n,;.-

a highfhe

f.Yample

A counsel,' is assigned to a given site. such is a highschool. the salary .. and employee benefits of thecounselor and the clerks and any materials used arecharged to the appropriate instructional programs.

If a time-and-materials system is not feasible,then the distribution shall he on an enrollment (-)ra.d.a. basis.

Health. 1-164)th costs shall he distributed on thebasis of time and materials. Examples are salariesand employee benefits of psychiatrists and nurses,special testing, and physical examinations that areclistrihittecil to the applicable instrurional pro

64

1114

grams. If the time-and-materials basis is not feasi-ble, then the costs shall be distributed on anenrollment or a.d.a. basis.

General Support

County superintendent and district administra-tion. District and county superintendent adminis-trative costs shall be distributed using the time-and-materials method fOr those costs that are readilyand reasonably identifiable. The work ordermethod shall be used for administrative servicessuch as noninstructional data processing, printing,and duplicating services.

The remaining administrative costs shall -bedistributed as indirect costs, as described on page111-18.

Maintenance services. All maintenance servicesthat are readily and reasonably identifiable shall betransferred to the using program by the use of aninterprogram charge and's credit transfer. Thecharges shall be the actual costs of providing theservice, based on a work order system or atime-and-materials basis of charges.

Examples of maintenance services are main-tenance and repair, of driver training vehicles andequipment; maintenance and repair of instructionalequipment used in the classroom; and maintenanceand repair of food service equipment.

The remaining maintenance costs shall he dictribated as indirect costs, as described on page iii 18.

Operations services Operations services that arereadily and reasonably identifiable shall he transferred to the using program by the use of aninterprogram charge and credit transfer. Operationsservices that shall he charged as direct support tothe using program include site custodial salaries,employee benefits, supplies, utilities, laundry anddry cleaning, uniform repair, and other servicesperformed for the benefit of a particular program.As applicable, the time and materials, time-floorarea, quantity consumed, or the hour-consumptionmethod shall be used.

The remaining operations costs shall he distri-buted as indirect costs, as described on page Ill-1 8.

Transportation services. Costs of transportationservices shall be transferred as direct support coststo all the programs and projects utilizing theseservices by the use of an interprogram charge andcredit transfer in the following manner.

-5-77995

1.. All field trips sail be charged to the usingprogram based on one of the. followingmethods:a. Actual cha ges from the bus contractorb. Fixed rate er- mile based on .prior year 9

costs or esti ated costs for the -currentyear

c. Fixed rate per mile plus hourly rate chargesper trip

2. Transportation costs for physically - handi-capped, trainable mentally retarded, orautistic students and costs for transportationof any of those students to California stateschools or to school districts other than theirown shall be charged to the special educationsubprogram, 'transportation, by one of thefollowing methods:

a. Actual charges from the bus contractor oractual costs computed by the school district

b. Fixed rate per mile, based on prior yearcost or estimated costs for the currentye ultiplied by the number bf miles perda r each program, multiplied by thenumbe of school days

r Fixed rate permile, plus hourly charges,multiplied by the number of miles per dayfor each program, multiplied by thenumber of school days

Other tr anspOrtation, not home-to school.such as transportation to athletic events,delivery of regional occupational programstudents to place of erylnlox ment, and transportation from cchnol all be

Tr,charged as in (-2)./I The remaining transportation charges (home

to-school costs for the district pTeformal,elementary, secondary, and regional occupa-tional centers or programs; educable mentallyretarded students; and educationally handi-capped students) are distributed as follows:a. Divide the total remaining transportation

costs by , the total number of studentstransported.

b. Multiply the rate obtained in substep 4(a)by the number of studeAr transpbrted ineach category.

c. Transfer these amounts as ',direct supportcharges to the various programs involved.

65III- 17

No residual costs will remain in thisupportservice to be distributed as indirect costs.

SPECIAL NOTE: All charges for transportation services toorganizations outside of the district, such as parent-teacherassociations, recreation districts, senior citizen groups, and soforth shall be abated to the transportation program by the use ofa contra account. These charges are based on the methodsindicated for field trips in step (1).

Auxiliary Programs

Community services Commimity services shallnever be 'distributed as direct support charges;however, this program shall receive direct supportcharges, such as custodial service, utilities, main-tenance service, and instructional media suppliesand charges, if applicable, from the facilitiesacquisition and construction program.

Food services. Donor-authOripd food servicesexpense shall be a direct charge to the specialproject. Food services expenditures that are districtcontributions -for special projects shall be distrib-uted as -direct support costs to the projects. Allother expenditures shall remain in the food servicesprogram. However, this program shall receive directsupport charges, such as custodial services, utilities.and maintenance of equipment.

Facilities acquisition and cohstruction. Expen-ditures charged to the facilities and constructionprogram are distributed as direct §upport chargesonly to community services and adUlt educationprograms. if applicable. Expenditures ror donor-authori7ed site acquisition and/or .ristruciio'l, Ofa facility are distributed air dil, , , ',Cr' r.

9)4,C;f1/ VI ,I's,t

indirect SupportEach school district and office of thP county

superintendent of schools shall allocate indirectcosts to all instructional programs, special projects,and auxiliary programs. The following methodshall he used to allocate the indirect costs:

I. Total the remaining costs in all the supportprograms, except special projects and otheroutgo.

2. Total the direct and direct support costs ofthe instructional programs, special projects.and auxiliary programs.

3. Divide the total de/ermined in step (I) by thetotal in step (2). and carr}3 to six decimal places.

4. Apply the rate obtained in step (31 to thetotal of the direct and direct support costs of

each instructional program, special project,and.auxiliary program.

NOTE: The state reporting requirements are shown in Exhibit.I-E oh pages 1-19 a 20.,A work sheet- showing samples of thedistribution of dif pport and indirect costs is shown 'onpages 111-20 and IiI-

'1

Interprogram Charge and CreditTransfer Process

An interprogram charge and credit transferprocess is to be used to transfer direct supportcharges from the support service programs to theinstructional programs, special projects, and auxil-iary programs. This transfer can be identified orcoded in several ways, particularly for electronicprocessing. Four ways are given\herewhich may beused to transfer, for example, salaries of elemen-tary principals, vice-principals, and clerks; em-ployee benefits; and office supplies from schooladministration to- direct support costs of thegeneral education elementary program.

Example 1. Use object of expenditure classifi-cation 5900, Interprogram Charges and Credits forDireet and Indirect Support Services:

Ir General Education, Elementary (SchoolAdministration') (debit)

nriln qthool Admilistration (Generalriory,fliitrtr% )

F.

using Cieas tin- 'fiql

,uf

2 Fstablish a direct cuppoi't coder :t two digits of the object code Witli QR

r(iptts fI the- rinl,is .1t)ti 'h.' t1,0

Education. Elernerit. v 19rhtl.,1Adrrinistratrnn) (debit)

l'oc) c,r,hool Adrnir)istration (Generalpf-trrt-atir,ri FIerrientary) (rrotirr)

Example 3. Fstablish 4 direct support codeusing the first two digits of the object code with analpha notation for the last two digits. such as 1)1)for the debit and DC for the credit:

17no General Education, l lementary (SchoolAdministration) (debit)

School Administration (GeneralFdrication, Elementary) (credit)

Example 4. Use a code system preceding-theobject of ex periditme, and assign code numbers to

each type of gupport program and the respectivedebit and credit codes as follows:

0100 Special Projects0110 Debit0115..Credit

0200 Instructional Support

0210 Instructional AdministrationDebit0215 Instructional AdministratidnCredit0220 Instructional MediaDebit0225 Instructional MediaCredit

.' 0230 School AdministrationDebit0235 Schbol AdministrationCredit

0300 Pupil Services0310 'Attendance/WelfareDebit0315 Attendance /Welfare -- Credit0320 Guidance/CounselingDebit0325 Guidance/CounselingCredit0330 HealthDebit0335 HearthCredit

0400 General Support041004150420042504300435044004-45

District AdministrationDebitDistrict AdthinistrationCreditMaintenanceDebitMainterianceCreditOperationsDebitOperationsCreditTransportationDebitTransportationCredit

0500 Auxiliary Support0510 Community ServicesDebit0515 Community ServicesCredit0520 Food Service - -Debit0525 Food Service -- Credit0530 Fa6ility Acquisition and Construction

--Debit

This method will help. to identify the source ofthe transfer along with a brief description of theaction :

0230 General Education, Elementary (School.Administration) (debit)

0235 School Administration (GeneralEducation, Elementaryr(credit)

Indirect Costs Distribution

Only the methods illustrated in ExaMple 1 andExample 4 can be used to distribute the indirectcosts. In Example 1, change the description incodes 5910 and 5990 to Indirect Costs. Example 4requires the addition of codes 0600, Indirect Costs;0610, Indirect CostsDebit; and 0615, IndirectCostsCredit. In either case all the instructionalprograms, special projects, and auxiliary' programsshall be debited in the manner as described forcomputing the indirect costs as illustrated on page111-18, and each support program (instructionalsupport, pupil services, and general support) shallbe credited with the remaining amount after alldirect support charges have been allocated.

SPECIAL' NOTES: (1) Regardless of the examples followed,.theinterprograna, charges and credits transfer accounts are notbudgetary accounts but are transfer accounts and must alwayShave a debit and a credit transaction so that the account balanceis always zero. (2) Regardless of whether a hand method or amechanical accounting method is employed, separate t"tals of

and fnlist t, ftl..in,Pi.1.,4 rletp,,

67

INSTRUCTIONAL PROGRAMS

Gene;)iducation

Preformal

Elementary A

Secondary r ,

Regional Occupational Centers (ROC)

or Programs IROP)

dult

Special Education

Physically Handicapped

Special Day Classes ... ,

Educationally Handicapped

Special Day Classes ...... . , ..

Transportation

PH/TMR/Autistic

1 Total

SUPPORT SERVICE PROGRAMS

Special ProjeCts

ESEA, Title I, Preschool .....MillerUnruh Basic Reading Act

Comprehensive Employment and

Training Act 10ETA)

Total ........ , . .

Instructional Support

Instructional Administration

Instructional Media

School Administration

Pupil Services

Attendance/Welfare

Guidance/Counseling

Health

General Support

Maintenance

District Administration

Operations

Transportation

Total

Program costs

Total direct before

end Indirect distribution Special

Direct support Direct support direct support support costs of special project

Direct costs ,costs-in costs-out costs 0,047425. project costs support costs Total e

1 2 3 4 5 8

abcde$4,050 $ 9200 , ,

009,000 262,5001191.1

2,187,000 218,000aklfhi

850,000 25000abchk

875,000 41,497 916,497 1,500m 917,997'

A 4,300 , 9,000ecfh

42,300 2,006 44,306 1,500m 45)306

$ 13,250 $ 628 $ 13,878 S 30,273m $ 50,151

3,771,500 178,863 3,950,363 55,177m 4,005,540

2,405,000 114,057 2,519,057 11,000m 2,630,067

819,000 2,000a Ix

82),000 4,936 859,936 4,19um 884 126

272,500 ' 1,300abcd 279,809 13270 293,070 3,14201 298,212

4 5,500d

5,500 261 5,761 6,761

7,674,850 538,500 8,213,350 389,518 8,602,868 112782 8,715,660

25,675 25,05 1,218 20/38.3 116)3931'11

,22,000 22,000 1,043 23,043 (23,043)m

60,000 60,000 2,846 82,846 162,8461m-101,675 107,675 5,101 112,182 (112,1821

21,000 110 MO 17,000 111,0001

38,000 10,0001 (50001k 43,000 (43,000)

75,000 175,0001 f -

18,000 118,0001:

21,000 (21,0001"

39,000 139,0001b

`j.

155,0001/

200, (200,000)200,000

145,000 90,000 190,000)

299,000 1247,0001! 52,000 (52,000)

97,600 197,5001d =../959,500 10,000 1567,500) 402,000 (402,000)

Di ect can

1

Direct support

costsin

2

Dirit support

cats out

3

Total direct

and

direct support

costs

4

Indirect

support costs

0.047425

5

Program costs

before

distribution

of special

project costs

6

AUXILIARY PROGRAMS

Community Services 30,000 10,000c 40,000 1,891 41,897

Food Services 31,500 10,000C (1000)° 40,500 1921 42 421

Facilities Acquisition and

Construction 75,000 16,000 3557 78,557

Total 136,500 20,000 (1,0031` 155500 7,375 162,875

District total $ 8,878,525 $ 568,500 ($ 568,500) $ 8,878,525 $ 8,878,525

Special

project

support costs Total

8

41,891

42,421

78,557

0 162,875

$ 8)378,525

NOTE: Col mn' 1 shows all the direct char by each program. The various direct

support are distributed by Ihe use of i erprogram charges and credit transfers,

ti

a, Pupil services (attendance/welfare distributed by average daily attendance plus actual

cost at the secondary level): Debit preformel $700, elementary $5,000, secondary

$10,000, ROC/ROP $1,000, adult $500, special education physically handicapped

$500, and educationally handapced $300; and credit attendance/welfare $18,000.

b. Pupil services (health distributed by axial.); Debit proforma' $500, elementary

$23,500, secondary $12,500, ROC/ROP $1,000, special education physically

handicapped $500, and educationally handicapped $1,000; and credit health

$39,000,

c, Operations (to charge custodial salaries, employee benefits, supplies, and utilities):

Debit preformal $5,000, elementary $125,000, secondary. $75,000, ROC/ROP

$15,000, adult $5,003hysically handicapped $1,000, educationally handicapped

$1,000, community services $10,000, and food services $10,000; and credit

operations $247,000,

Transportation (distributed on an actual cost basis): Debit preforms' $2,000,

elementary $50,000, secondary $35,000, educationally handicapped $5,000, and

special education transportation $5,500; end credit transportation $97,500.

e, Food services (charges to preforms' for meals for needy pupils); Debit preformal

$1,000 and credit food services $1,000,

School administration: Debit elementary $45,000, secondary $21,000, and adult

$3,000; and credit school administration $75,000,

9, Elementary education; Debit elementary $10,000 and credit instructional administra

tion $10,000.

h, Pupil services (guidance/counseling distributed by actual cost); Debit elementary

$4,000, secondary $13,500, ROC/ROP $3,000, and adult $500; and credit

gJidancelcounsel Mg $21,000,

0j. Maintenance: Debit instructional media $10,000 for the maintenance olequiPment,

debit secondary $45,000 for repairing the grandstands and the sprinkler system and

replacing a major portion of the turf at the high school athletic field; and credit

maintenance $55,000.

k, Instructional media (charger the use of special films, filmstrips, and equipment);

Debit ROC /ROP $5,000 and credit instructional media $5,000,

m, Distribution of the special projects: Debit preformal $26,893 and credit ESEA

preschool $28,893; debit elementary $23,043 and credit MillerUnruh $23,043; debit

preformal $9,380, eleMentiry $32,134, secondary $11,000, ROM P $1,600, adult

$1,500, phyfically handicapped $4,190, and educationally handicap $3,142; and

credit CETA $82,846.

Figure Illustration of Direct Support Charge Allocation, Indirect Support Cost Allocation,

and Special Project Cost Allocation

SECTION C

Miscellaneous Accounting Procedures

Methods of accounting for cooperative projectsoperated among districts, accounting by funds,accounting for stores, and abYtTments of expendi-tures including use of contra ac&unts are includedin this section.

Cooperative Projects

Califoinia school districts and offices t_b_. t countysuperintendents of schools often pool their re-sources and operate certain federal and state

'projects on a cooperative basis. This procedureusually calls for one school district or countysuperintendent of schools to operate the projectfor one or more other school districts or countysuperintendents. The operating school agency isusually referred to as a local educakkional agency orlocal operating agency.

The Annual Financial and Budget Report, asspecified by the State of California, is used tocollect fiscal data for comparative and managementpurposes. Current expense and the costs of edu-cation are developed on the basis of cost pet unitof average daily attendance (a.d.a.). If valid 4:0111-

parative data are to be obtained, each schoolagency must report its own share of the incomeand expenditures when the agency is involved in acooperative project.

District and county supetitendents paz tii,iputing in cooperative projects must report the incomeand expenditures resulting from their involvementin the project in the following manner:

I. Each participating district or county recordsits share of the project entitlement in theappropriate income classification. If a is anESEA, Title I, project, for example, theincome will appear in 'classification 8160,Elementary and Secondary Education Act,

2. Each participating diOrict and county recordsits share of the cost of the project inexpenditure object classification 5600, Con-tracts, Rents, and Leases, when it" pays thedistrict that operates the project. Its share ofthe cost will normally be equal to its share ofthe income.

3. The operating district must account for all ofthe costs' of the cooperative project in the

1111-22

appropriate expenditure classifications duringthe project year. The operating district shouldbill each participatingagistritt periodically orat least by the end of the year forits share todate and then abate the cooperative projectobject of expenditures by the amount of

...income received from each of the participat-ft school agencies. The net costs will bereported on the Annual Financial 'and BudgetReport of the operating district.

Soiii cooperativtu.projects are established onlyto meet specific federal entitlement requirements.Such projects usually require that one district serveas the applicant district for purposes of disbursing)federal funds to the other participating districts"The participating districts are operating their ownprojects in this situation. In the implementation ofthis type of cooperative project, quarterly cashadvances may be made directly to the administra-tive agent of the applicant district for deposit anddisbursement. Applicant districts should deposittheir prorated amounts in an account under in-come classification 8160, Elementary and Sec-ondary Education Act, and the prorated amountsfor participating districts under classification 8490,Other Federal Funds. A copy of the cooperativeagreement filed with the county superintendentwill serve to authorize payment to the participatingdistricts. Disbursement transactions by the operat-ing district should be handled as abatements toclassification 8490 Participating districts shouldrecord income under classification 8160. Allexpenditures are to be recorded in accoidaitce withthe California School Accounting Manual.

Special Education Master Plan

Special instructions apply to the Special Itwit Master Plan (Education Code sections56300. 56367).

1. The resource specialist shall be charged toobject of expendituie classification 1100,Teachers' Salaries, as a direct charge to theSpecial Education program.

2. The program specialist shall be charged toobject of expenditure classification 1900 as adirect charge to the Special Education pro-gram.

3 The instructipnal aides assigned to the re-source specialist shall be charged to object of

expenditure 2100, Salaries of InstructionalAides for Direct Teaching Assistance, eventhough these instructional aides are not underthe supervision of a classrobm teacher asprescribed in Education Code Section 4101 I.

4. Professional specialists, as required by Educa-tion Code Section 56336, shall be charged toobject of expenditure classification 5100,Contracts for Personal Services of Consul-tants, Lecturers, and Others for Direct Assis-tance to Teachers, Pupils, or the Curriculumor Health P rams.

5. 'A district, the -ounty superintendent. or acombination both can be the "responsiblelocal agent (R1.A) in a given county.

6, The ill receive the state apportion

aiventfor the Special Education Master Plan

is specified in Education Code Section 56360and record the 'apportionment in incomeclassification 8638, Special Education MasterPlan. All expenditure are to be recorded inaccoidance with the foregoing instructionsand the California School Accounting Manual.

/ The R1.A may contract witn a district omdistricts to operate the entire program orindividual portions of the program.

Accounting by FundsSeparate, balanced records should be

for the General Fund and for each special fundThe General Fund may be used for nearly all of thepurposes shown in this outline. Special funds arehighly restricted by law as to thei usage.

Examples of special funds ar the following.

Bond interest and Redemption Fund

The Bond Interest and Redemption F-und willinclude only the following objects of expenditure:classification 7130,1 Bond Redemption; classifica-tion 7140, Bond Interest and Other ServiceCharges; and classification 7300,.Interfunct Trans-fers. Responsibility for this fund is vested in thecounty auditor.

Building Fund

The Building"Fund is established to receive fordeposit the proceeds of the sale of bonds; proceedsfrom the sale of real property; federal subventionsfor capital outlay purposes, including any fundsreceived under Public Law 81-815; and insurance

indemnities. Exclude fr9in this fund monies dc-rived from local taxes-for capital outlay purposes,because these expenditures must be budgeted andexpended from the General Fund. Charges may bemade as follows .(object of expenditure clasgifica-tions shown in parentheses):

Project director (2200)Building inspector (2900)Employee benefits._(3000)Contracted services and °the, ChIAAISCS (.) )

Construction insurance (5600)Contracts, rents, and leases (5700)Advertisements of bond sales and otitchrelating to the sale of bonds (5700)

Site surveys, appraisals* and so forth 0800)(..apital outlay expenses (6000)Repayi4ent of state school b 1.1tti....ing aid

beccial Reserve Fund

'nit Special .Resew.; l'und to be 1164:4 0)ily fom

capital outlay purposets. The income is derived bytransfer from the General Fund, inteiest earned ondeposited funds, and federal subventions forcapital outlay purposes including funds receivedunder Public Law 8 l

State School Building Fund

'flie State School Building tund is establishedthe. deposit of funds apportioned for site

purchase and building purposes as provided byEducation Code seStions 16000 16414. The dis-trict may be required to transfer any availablemonies from all other funds as the district carvtri-bution to a particular project. Federal subventionsfor capital outlay, including funds received underPublic Law 81-815, may be deposited in this fund.Expenditure classifications authorized in this fundare the same as for the Building Fund.

kAPAS

(/.10)

Cafeteria Fund11.

The Cafeteria Fund or Account shall be usedonly for the income received and expendituresmade to operate the cafeterias. The income isderived from the following sources (income classifi-cations shown in parentheses):

National School Lunch Program (8220)California Child Nutrition Act of 1974 (8630)Sale of food (8844)Interest earned on deposits (8860)Incoming transfers (8990)

III--23

Objects of expenditure shall be those that arenecessary to record the expenditures for the foodservice operation.

Child Development Fund

The Child Development Fund shall be estab-lished in each school district that maintains childdevelopment programs as authorized. by EducationCode sections 8200-8383. I ome gy be derivedfrom the following sources ( me classificationsshown in parentheses):

Economic Opportunity Act (8150)National School Lunch Program (8220)Children's centers (8530)Child Nutrition Program (8637)Apportionment for school facilities (8640)Apportionment for children's centers (8650)Tax relief subvntions (8670)District taxes (18810)Interest 8860)lnterf d transfers (8930)

Expenditures shall be those that are necessary torecord the charges for the Child Developmentprogram made to expenditure account classifica-tions 1000 6000, except classification 1700,Superintendents' Salaries. Charges in the 7000series are limited to classification 7390, OtherAuthorized Interfund Transfers; and 7410, Trans-fers from Funds of Lapsed or Reorganized Dis-tricts.

Development Centerb for the Handicapped Fund

The Development Centers for the HandicappedFund shall be established in each district thatmaintains one or more of the development centersas defined in Education Code sections 5680056831. Object classifications for income and ex-pendituws are very similar to those used for theChild Development Fund.

Other Special Funds

Any other special fund may be maintained if itis authorized by law and niaintained exactly asprovided by law. Examples of such special fundsare (1) Retirement Tax Fund (Education Codesections 24800 and following); (2) Property UseTrust Fund (Education Code Section 4141); and(3) Deductible Insurance Fund (Education CodeSection 39602). The pattern for maintaining the

funds shall be the same, as appropriate, as for theother special funds described in this section.

Accounting for StoresPayments for the purchape of "stores" (see

Part V of this manual), defined as goods on hand incentral storerooms subject to requisition, are simi-lar to expenditures but are not classified as such.These payments constitute the increase of an assetaccount, Stores, equal to the reduction in anotherasset account, Cash in County Treasury.

The issuance of stores must be accounted in herecords of the school district as a reduction of theasset account, Stores, and as a charge to theappropriate expenditure. object and program forwhich the stores were issued. Such accountingshould be continuous in the records of the, schooldistrict, and, to the extent that the countysuperintendent of schools maintains correspondingrecords, summaries of the issuance of stores shallbe, reported to the county superintendent by theschool district periodically, preferably not lessfrequently than monthly. In any event, the balancein the Stores account at the end of each fiscal yearshould represent the value of the stores in thewarehouse of the school district.

Abatements of ExpendituresAbatement of expenditure is the cancellation of

a part or the whole of a charge previously made,usually owing to refunds, rebates, resale of Tate-ri4ls originally purchased by the school district, orcollections for loss or daitiage to school property.Abatement of expenditure applies to both currentexpense and 'capital outlay expenditures from allfunds. Tuition receipts, fees, and rentals shall notbe treated as abatements of expenditure. Thisdefinition must be observed in making all decisionsas to whether a receipt is to be reported as incomeor as an abatement of expenditure.

The bask distinction that must be borne in rriihk.is that an abatement of expenditure must alwaysrepresent a receipt that'cancels a part or the wholeof a determinable item of previous expenditure. Ifa receipt cannot be suISstantiated as a cancellationof a specific expenditure, 'it must be reported asincome.

The term receipt, as used here, is to be consid-ered as referring to the receipt of cash, except in

those school districts in which the accounting is onan accrual basis. Districts operating on an accrualbasis enter an abatement of expenditure prior tothe receipt of cash, that is, as an account receiv-able. Adjustments between expenditure accountsto correct errors in the distribution of chargesshall not be considered as abatements of expendi-ture.

Accounting Instructiolis fur Abatements

Receipts that represent cancellations ut expel&ditures must be accounted as abatements of expen-ditures previously incurred by crediting suchreceipts to the respective expenditure accounts,thereby eliminating any credit to income accounts.

Receipts representing abatements of expen-ditures must be accounted by abating the appro-priate expenditure accounts ing the fiscal yearin which the receipts and expenditures occur.In no case may receipts of a c ent fiscal year beaccounted as abatements of expen res of a priorfiscal year, unless such receipts were ac'rued bythe establishment of an account receivable in theprior fiscal year. If an abatement does not occur inthe same year as the expenditure or a receivablehas not been set up, the receipt should be shown asa receivable when it occurs and will, therefore, bean adjustment to the beginning balance. It shouldnot go into either income or expense.

Abatements of expenditures must be ak:.,ountedas such at the time that the receipts occurthroughout the fiscal year by immediately credit-ing the receipts to the appropriate expenditureaccounts instead of crediting them to any incomeaccount.

Except as the accounting is maintained uncurrent basis in the records of the county superin-tendent of schools, and the school district, atexcept for city school districts that supply month-ly or annual reports of income and' expenditures tothe county superintendent of schools on the basisof net data, districts must ,report to the countysuperintendent at the end of the fiscal year on allabatements of expenditures.

All appropriations, apportionments, subsidies, orgrants-in-aid from any governmental unit must beaccounted as income- receipts, not as abatements ofexpenditure.

Use of Contra Accounts

Whenever abatements of any particular type arenumerous, and especially if considerable amountsare involved, it is recommended that the credits bemade to a contra account instead of directly to theexpenditure account. The contra account shouldbe identified as "Abatements of " (insert-ing the name of the expenditure account to whichit relates); It should be maintained adjacent to thecorrespond' expenditure account in the expendi-ture (or a5ropriation) subsidiary ledger. Thecontra account will receive only credit entries forabatements. By this procedure, the undesirablefeatures of d "mixed" account are avoided, andgross expenditure, abatements, and net expcndi-ture can be determined easily at any time,

Relationship of Abatements of Expenditureto Appropriation Control

Regardless of whether abatementslure are treated as direct credits tt) expenditureaccounts or as indirect reductions of expenditureby the ase of contra accounts as described underthe preceding heading, the control of expendituresmust be in terms of net expenditures.. Districts thatanticipate abatements of expenditure items shouldPrepare their budgets on the basis of net expendi-tures and attach supporting schedules indicatingthe anticipated gross expenditures and the antici-pated reduction by reason of abatements of suchexpenditures.

Principal Types of Abatcmcilt3 of EApentlittoc

The following receipts must be ack,,,unt,t1 Lib

abatements of expenditure if receipt and expendi-ture occur in the same fiscal year:

1. Receipts from sales of supplies and newmaterials at cost (a) to students for per-sonal ownership (e.g., art and shop mate-rials); (b) to students by means of vendingmachines dispensing articles supplied bydistricts; or (c) to other governmentalunits, including school districtsNOTE: Some of these sales may be credited tol4stores

(accounts instead of being abated to expenditure ac-counts, depending on the local accounting methodsemployed.

2. Refunds of overpayments (a) from teach-ers and other employees; or (b) fromvendors and other payees

'?5 111-25

3. Refunds for return of containers, oildrums, wire spools, and the like

4. Reimbursement of cost of repairs or re-placement of damaged or lost property (a)from pupils, parents, or guardians for lossof books or damage to school property; or(b) from contractors or any other individ-uals for damage to or loss of schoolproperty

5. Refunds from_ a transportation companyfor unused portions of carfare books,tickets, and the. like

6. Refunds of gasoline tax for non4ighwayuse

7: Cancelled warrants (not outlawed warrants)8. Receipts from sale, in lieu of trade-in, of

used equipment being replaced, such asautomobiles, typewriters, and the like

9. Refunds of insurance premiums

111-26

10. Receipts from settlements of insuranceclaims on account of building, supply, andequipment losses (a) of any amount re-ceived for loss of a building requiringreplacement or reconstruction within thecurrent, fiscal year; or (b) any amountreceived on account of a loss of supplies orequipment.NOTE: The total amount recorded as an abatement ofexpenditures made for repair or replacement of suppliesor equipment losses shall not exceed the amount ex-pended for this purpose during the same fiscal year.

11. Receipts from the sale either of a portionof a new site or of buildings or improve-ments thereon

12. Receipts from subleasing an unused por-tion of premises that the district had torent as a whole .to obtain the portiondesired for school purposesNOTE: Any amounts received in excess of the relatedexpense shall be recorded as miscellaneous revenue(income), and not as abatements.

7 0

Salary object classification Position title

.YSIS OF SALARIES

Salary object classification

Certificated Salaries Classif ed Saler s

Exhibit III-A

rPosition .tie

1100 Teachers Teacher, Assistant'Teacher, RegularTeacher, Speech TherapistTeacher, StudentTeacher, SubstituteTeacher, Tutor

2100 InstructionalAides

Instructional Aide

1200 School Admin-istrators

DeanDean, AssistantPrincipalPrincipal, VicePrincipal, AssistantRegistrar

2200 Countyand DistrictAdministra-tive Personnel

1300 Supervisors ConsultantCoordinatotDirectorSpecialistSupervisor, GeneralSupervisor, SpecialSupervisor, Assistant

400 Librarians LibrarianLibrarian, Assistant

1500 Guidance,Welfare, andAttendancePersonnel

Counselor, Pupil/ParentPsychologistPsychometristSocial Worker

1600 Physical andMental HealthPersonnel

1700 Superin ndents

AudiologistAudiometristCh iropodistDentistDental HygienistNurseOculistOptometristOtologistPhysicianPsychiatrist

(District and countyadministration)

SuperintendentSuperintendent, AssistantSuperintendent, AssociateSuperintendent, Deputy

2300 Clerical andOther OfficePersonnel

1800 Other Certifi tedDistrict and CountyAdministrators

Administlative AssistantDirector.Director, Assistant

1900 OtherCertificatedPersonnel

Civic Center Employee'Consultant"Program SpecialistRecreation Worker"Resource Teacher

Accountant, ChiefBuslfiess ManagerControllerDirectorGoverning Board MemberPersonnel Commission MemberPurchasing AgentSuperintendentSuperintendent, AssistantSupervisor

AccountantBookkeeperClerkComputer OperatorMachine OperatorSecretarySwitchboard Operator

2400 Maintenanceand ,

OperationPersonnel

2500 Food ServicePersonnel

CustodianCustodian's HelperDelivery ManElevator OperatorFiremanGardenerMaintenance EmployeeMatronOther Housekeeping PositionTruck DriverUtility Worker, GeneralWarehousemanWatchman

CookDirector (Single site)HelperManagerNutritionistsupervisor

2600 TransportationPersonnel

2900 Other ClassifiedPersonnel

Bus DriverField Coordinator'Gasoline Pump AttendantMechanicOther

Building InspectorHealth AideLibrary AideNoon Playground SupervisorRecreation WorkerStudent

Position not'included in object definitions.

111-27

1

Part IV .

Supplies and Capital Outlay, including Equipment,Sites and Improvement of Sites, Building

Fixtures, and Service Systems

Some of the most perplexing problems in schoolaccounting are those of distinguishing betweensupplies and equipment; between equipment andimprovement of grounds; and between equipment/

and service systems. Nevertheless,counting for school expenditures, districtscorrectly identify each expenditure if the

ssary uniformity of accounting is to be main-ed.

Whether an item should be considered as equip-ment or as supplies can be determined on the basisof the length of time the item is serviceable and onits contribution to the value of the plant. Forexample, supplies are constantly being consumedand replaced without increasing the value of thephysical properties of the school district. Equip-ment has relatively permanent value, and itspurchase increases the value of the physical proper-ties ofthe school district.

Expenditures for equipment, improvement ofsites, building fixtures, and service systems areusually charged as capital outlay; those for sup-plies, as current expense. The original purchase ofequipment or of additional equipment must berecorded in object classification 6400, Equipment.Expenditures for piece-by-piece replacement ofequipment must be charged to object classification4800, Equipment Replacement.

In accounting for expenditures, all school dis-tricts must use the same plan for making therequired decisions. This clan must contain clearlystated criteria regarding tie distinguishing featuresof the items to be accounted for; that is, criteriathat can be used in determining correctly thedisposition of the charges to accounts.

IV-1

7

Criteria for Distinguishing BetweenSupplies and Equipment

Supplies are items of an expendable nature thatare consumed or worn out, deteriorate in use, orare easily broken, damaged, or lost. N.

Examples: paper, pencils, cleaning materials,nails, scissors, test tubes, thumb-tacks, and keys

Items that have a relatively short service life (lessthan two years) and therefore 'must be replacedfrequently are charged as supplies.

Examples: brooms, chamois, and rubberstamps

Some articles clearly do not belong to either, ofthe two preceding groups. They have the character-istics of equipment but they have a low unit costor are frequently lost, broken, or worn out andreplaced in normal use. To obtain uniformity, theclassifier should assign items to the vario classifi-cations on the basis of the answers he mu give tothe questions in the following list. If th answer toany one of these five questions is yes, the itemshould be classified as a supply item, and theexpense should be recorded under object classifica-tion 4000 except for classification' 4800, Equip-ment Replacement. If all answers are no, the itemshould be classified under object classification6400, Equipment.

1. Does the item lose its original sh4pe andappearance with use?

2. Is it consumable, with a normal service life ofless than two years?

3. Is it easily broken, damag d or lost in normaluse?

4. IS it usually more feasible to replace it with anentirely new unit than to repair it?

5. Is it an inexpensive item, having the character-istics of equipment? Does the small unit costmake it inadvisable to capitalize the item?

Criteria for Identificationof Capital Outlay

Capital Outlay 'expenditures are those that resultin the acquisition of-capital assets or additions tocapital assets. They are expenditures for sites;improvement of sites; buildings; improvement ofbuildings; building fixtures; service systems; and

(purchase of initial or additional equipment:Equipment

Equipment includes movable personal propertyof a relatively permanent nature and/or of signifi-cant value.

Examples: Furniture, machines, musical in-struments, and vehicles

NOTE: Nonconsumable articles generally classifiedas supplies should be classified as equipment if theyare purchased to start or expand materially theequipping of a school, classroom, library, or otherfacility. If equipment is constructed by districtemployees, the cost of the materials and labor as well

indirect costs should be recorded as the total costof the item produced (See Note following classifica-tion 6490, Part III.)

Equipment must be recorded under object class-ification 6400. .

New Sites and Improvement of Sites

New Sites and Improvement of Sites includesacquisition of land, improvement of new and oldsites and adjacent ways, and acquisition of physicalproperty of a permanent nature Ittached to land.

Examples: land, curbs, grading, playgroundsurfacing, retaining walls, side-walks, storm drain systems, land-scaping, driveways, parking lots,fixed playground apparatus, andflagpoles

New sites and improvement of sites must berecorded under object classification 6100.Buildings

) Buildings includes the construction or purchasecost of new buildings and additions, includingadvertising costs, architectural and engineering

IV-2

fees, blueprints, inspection, tests and examinations,demolition, the razing of existing obsolete or oldbuildings to dear sites for new buildings, buildingfixtures and service systems, and any other expen-ditures directly related to the construction oracquisition of buildings.

Buildings must be recorded under object classifi-cation 6200.Improvement of Buildings

Improvement- of Buildings includes alterations,remodeling, renovations, and replacement of build-ings in whole or in part. Improvements include thereplacement of an existing building unit or con-struction of an improved or superior unit, usuallyresulting in a more efficient or longer-lastingproperty. Significant improvement should be con-sidered as capital outlay expenditures.

Improvement of buildings must be recordedunder object classification 6200.Building Fixtures

Building Fixtures include attachments to build-ings that are not subject to transfer or removal,presumably function as an integral part of thebuilding, and have a fairly long and useful life.Such fixturei are generally accepted as real prperty and lose functional identity as separate units:

Building fixtures must' be recorded under objectclassification 6200.Service Systems

Service Systems include any parts of a buildingthat; are intended to serve a single functionthiiiiighout the building; are usually included as apart of the original construction or subsequently

d in whole or in part; are built as an integralof a building; and are expected to have a long

anti usef 1 life. Such systems are generally acceptedas real roperty and lose identity as separate units.

efffxamples: intercommunication systems orair-conditioning systems

Criteria for Identification of BuildingFixtures add Service Systems

The .following criteria provide a unifrm basisfor the identification of building fix Ores andservice systems. To be classified as either a huildingfixture or a service system, an item must conformto five criteria:

79

I

1. The item is attached permanently to thebuilding.

2. The item functions as part of the building.3. Removal of the item results in appreciable

damage to the building or impairs the de-signed use of the facility.

4. The item is generally accepted as real prop-erty (not personal property).

5. The item loses identity as a separate unit.

Service systems must be recorded under objectclassification 6200.

Purchase, Rental, Lease, orLease with Option to Purchase

ed assets can be acquired by purchase, rental,or lease with option to purchase. TheSe

acquisitions are accounted for as follows:

Purchase of a fixed asset is charged as any otherpurchase' for which title passes upon receipt ofpayment.

Rental of a fixed asset does not increase theassets of the district and therefore is not charged toa capital expenditure account. Rentals are chargedto 5600-Contracts, Rents, and Leases. Exception:If equipment is rented for a specific capital outlayproject (e.g., a tractor for a. major landscapingproject), the amount paid should be added to thatproject as a capital expenditure.

Lease of a fixed asset is usually for a period. ofone year or more. Title does not pass to (hedistrict, and chatges are to 5600-- Contracts, Rents,and Leases.

Lease with option to purchase a fixed asset ischarged . to the appropriate subclassification underobject classification 6000-Sites. Buildings, Booksand Media. and New Equipment; or 4800 Equip-ment Replacement.'

1 All payments including Intelost. 11 ally, related to a lease withoption to purchase shall not be included for state reimbursementpurp9ses, unless such expenditures are for the replacement ofequipment. 4

48.

List of Supplies, Equipment, Improvement of Sites,Building Fixtures, and Service Systems

The letters after the items in the following gistof items classified as supplies, equipment, improve-ment of sites, building fixtures, or service systemsare to be interpreted as having the followingmeanings:

E = EquipmentS = SuppliesI = Improvement of SiteBF = Building FixturesSS = Service SystemsIn making decisions for correct accounting

determinations,' districts should use the list inconjunction with the criteria. Many of the itemslisted as equipment would have to be considered asmaterials for the improvement of sites if they were

'attached to the land; building fixtures if they wereattached to the buildings; Or service systeips if theywere integral parts of such systems.

If an item cannot be found in the-list, another

Abragives-:SAbsorbent cotton-SAccount b%oAccounting forMs-SAccountirig'machines-E

item of similar nature can be found and the sauceclass used for both items.' In some instances the

Mem must be identified by associating it with onef the general classes, of items included in the list.

F6Y example, the item can be identified byaisotiating it with one of the following classes of

ohm als, cloth, clothing, compounds,food, games, glassware, machines

icines, paint, parts (repair), sta-(hand, not in sets), and

it with one of theails Or ociatifollowing clae quipment: apparatus, appli-ances (holveligld), cabinets,-furniture, implements(farm), li,TWif., ock, machines (large), tool sets(hand), and tools (power).

2 An additional source is Handbook ll (Revised)-- FinancialAccounting Classification and Standard Terminology for Local andState School Systems, Washington, D.C.: Office of Education, U.S.Department.of 'Health, Education, and Welfare, 1973.

Acetylene --SAchievement tests -SAcids-- SAdding machine ribbons

). A-a-ding machine tapes -S

*

11*

Adding machines -EAddressing machine platgs -SAdaressimirmachint ribbons, -S

S Addressing machine stencilsLSAddressing machines-E

IV- 3

-Adhesive tapeSAdzesSAir, compressedSAir compressors --EAir-conditioning systemsSSAir-conditioning units,

casementEAir gauges, tireSAir hoistsEAlbtims7SAlcOholSAlidades, telescopicE

Àlignment gauges, camber,toe-inE

AmmetersEAmmoniaSAmpulesSAnatomical charts SAnatomical models --EAndironsEAnemometersEAnesthetics SAniline dyesSAnimal boxesSAnnunciatorsEAntifreeze.--SAntiseptic gauzeSAntisepticsS'AntitoxinsSAnvils EApparatus cabinets-7EApparatus, medics , scientific, .

-electronic, phot aphic,arc-weldingE

Appliances, householdEApplicators, threat 2-$ApronsSAquariumsEArc-welding apparatusL*-EArch supportsSArchery setsSArchitects scales, 1-inch

measurel-SArmature growlersEArrowsSArt canvasesSArt crayons-7.Si-Art crasersS .

Art paints S

ta

ft

Art paperSAsbestosSAsh cansSAsphalt:7-SAsphalt roofmgand sidingSAstringentsSkitrographs, wallEAthletic uniformsSAtlasesSAtoinizersSA4iiidiometersE'Auger bitsS.A:ugers-7S ,

AtitoclavesEAutomatic regulating valvesSAutomobile accessoriesSAutomobile controls for handi-

capped personsSAutomobile defrostersSAutomobile fuel tanks--SAutomobile heatersS"(Automobile liftsE.Automobile signales..S2Automobile tires and tubes S-

Autom9bilesEAwardsSAwlsSAwnings, fixedBFAwnings,removable EAx es S.Babbit metal SBackboards, ibloor, fixed -BFBackboards, outdoor, fixedIBackboar4 s ortableEBackst ,

Backstops, rtableEBadgesSBadminton rackeSBagsSBaking pansSBaking powderSBaking sodaS

alances, beamEBalances, small springNBaling presses, compression-

mouldingEBaJ1 bearin S..11all pe ,jn hammers SBallOonsS

".1

Ballot boxesSBallsSBand instrumentsEBand saw bladesSBand saws E -

Band unifdrmsEBandagesSBands, rubber SBannersS .

Barber shop tools, electricalEBarber shop tools, handSi3arbektypd furnitureEBarogtaphsEBarbmetersE

Bars, horizontal, portable - -EBaseballsSBases, baseballS.Bases, electric lampSBases, flagpoleIBasins, portable SPasketball shoesSBasketballsSBaskets, container-- SBath curtainsS -

Bath matsSBath robes--SBathtub fittings -S

"BatonsSBatssBatteries, electric--SBattery charges -EBattery elementsSBatting cotton -SBeads, wits and crafts SBeakersSBeam, ,compassEBean bags SBearings, ballSBearings, rollerS'Beaters, egg, electric EBeateri, egg, handS

, Beauty class furnitureEBeddingS --

Bedpans SBedsE 'Bedspreads 'SBedsprings SBeeswaxS

Bellows, hand-SBellows, power-EBells, call-SBells, small hand or desk SBelt dressings .-SBelts-SBeach stops SBenches --EBenzene-SBevels -SBicycle racks, fixed -IBicycle racks, portable -EBicycles-EBillheads-SBilling machines-EBinders, agricuUral -EBinders, looseleaf-S

_/_Bintling cloth-LSBinding cord-SBinoculars-E %

Biological charts-S _

Biological models-EBiology specimens-SBit braces-SBit tools-SBits-SBlackboard pointers-SBlackboards, portable-EBlackboards, small slate --Sgladders.--SBlades, saw-SBlankets-SBlanks, printed-SBleachers,. indoor, fixed -BFBleachers, outdoor, fixed- IBleachers, portable -EBleaches-SBlinds, wnetian BFBlOcks, hat- SBlocks, kiMergarten- SBlocks, surface hardened -SBlocks, terminal -SBlood analysis apparatus,

complete-EBlood plasma cabinets -EBlood pressure apparatus EBlotter holders SBlotter pads -SBlotters-S

Blo ers-EBlov ipes-SBlueprint machineS -EBluepirint paper SBluing -S--Boards, bread- -SBoaids, bulletin, fixed-BFBoards, bulletin, RortableBoards, carrom-SBoards, checker -5Boards, drawing-SBoards, emery-SBoards,.games-SBoards, ironing-EBoards, ironing, built-in-BFBoards, lumber-SBoards, mounting-SBoards, sandwich -SBoards, wash-SBoats or canoes-EBobbins-SBodies, bus- -EBodies, truck- EBodkins-S

oiler cleaners-SB iler compounds --SBoiler firing tools -SBolt cutters-SBolts-SBond paper-SBook cards-SBook jackets-SBook pockets-SBook records -SBook stacks-EBook trucks-EBookbinIcling machinery hBookcases, portable-EBookcases, sectional EBookcloth SBookcovers-4Bookends-SBookeeping fowls .SBookkeeping machines EBookplates SBooks -S

ooks, cash S..ks, compositiol, S

Boo' -E

Books, looseleaf note- SBooks, record-SBooks, text. -SBoots- SBoring machines, precision. table

or vertical types F.

Bottle syphons SBottles-SBowling alley pins SBowls--SBowls, water closet -SBows, archery-SBox files, cardboard -SBoxes-SBoxes, electrical-SBoxing gloves-S -0Boxing rings, complete-EBoyle's law apparatus,

complete unit-EBrake lining-SBrake lining machines--EBrakes and folders, hand or

power,-EBrakes, complete replacement un is -SBrass polishes--SBrass rods-SBrassrsheetsTSBread knives-SBread pans-SBreacI, slicers, mechanical-EBread toasters, electric, -,EBreadboards ---SBreakers, circuit-SBricks-SBridges, wheatstone and

similar -EBridles-S -4Briefcases S ABroilers, electric EBronze, casting SBronzing liquid-SBrooders-EBrooms, hand -SBrooms, power-drivt:n LBrushes-ZS§kickets-S

cksaws. -SBuffers., electric,BZiitays .S

4

Bulbs, electric light-SBulbs, flower-SBulletin boards, axed-BFBulletin boards, portable --EBunting-SBurettes-SBurlap-SBurners, Bunsen -SBus accessories-SBus chassis-EBus repair parts-SBus tickets-SBus tires and tubes-SBus tokens-SBui wagons-EBuses-EBushings-SButter spreaders -SButtons-SBUttong, push-SBlizzers-SCatfinets, apparatus-E

.Cabinets, beverage cooling,ice or electric-E,

Cabinets, filing-ECabinets, fixed-BFCabinets, froien food storagCabinets, ice. cream, ice or .

electric-ECabinets, laboratory ---ECabinets, lantern slide-ECabinets, portable-ECabinets, print, drafting -ECabinets, printers, galley -ECabinets; printers, type-ECabinets, supply -ECable-7S-Gages-Ecake knives--S

s-SApSy-

g machines Epads =Stands-S.-440

4 Calsn

ers-Slls-S

e-E

,*

Calorimeters, continuousflow-E

Calorimeters, electric-ECameras-ECameras, motion picture ECameras, still-ECameras, TV -ECan coversCan openers-SCandles-SCandlesticks -SCanes-SCanners-ECanoes 'ECans, ash-SCans, garbage-SCans, rubbish-SCanvas-SCappers -ECaps, metal-SCarbide-SCarbon dioxide -SCarbon paper-SCarbon ribbons-SCarborundan-stones-SCarburetors-SCard holders-S

and punching and sortingce-E

Card racks -ECard tables-ECardboard -SCardboard boxes --SCards-S4Carpenters squares -SCarpet beaters -SCarpets --E

cCarrom boards -SCarrom cues- S'Carrom rings-SCarts-1-ECarving knives SCases, brief -SCases, cardboard-SCases, display ECases, file -ECases, laboratory E,Cases., musical instruments,

' .large-E \

ases, musical instruments,small-S

Cases, supply -ECases, type-ECash boxes-SCash registers -FCasters-SCasting bronze-SCatalog cards-SCatches-SCattle-ECaulking compounds-SCaulking irons, all sizes-SCaustics-SCellophane-SCells, photoelectric-SCelluloid-S (Cement,. construction-SCement, liquid-SCentering machines -ECentrifuges-ECertificates-SChafing dishes --SChain hoists-EChains-SChains, tire-SChair pads-SChairs-EChairs, folding-EChalkboards, fixed-BFChalkboards, portable -EChalks-S

-Chamoisk-SChange holders-SCharcoal-SCharge slips-- SChargers, battery EChart stands-ECharts, large-- ECharts, small SChassis, bus- E

"1-Chassis, truck ECheck handling rnak;ntilt:oCheckbooks SChecker boards SCheckers-SChecks, brass SCheckwriters-ECheeseckftti -S

4

iChemicals --SChemistry glassware-SChemistry rubber goods-SChimes, large-EChimes, small ---SChinaware ---SChisels, in sets --EChisels, not in sets -SChoppers, food, hand-operated -SChoppers, food; power-- ECircuit breakers--SClamps-SClay -SClay modeling tools-SCleaners, flue-SCleaners, steam vapor-ECleaners, vacuum-ECleaning compounds-SClinometers, photoelectric-EClippers, electric-EClippers, hand-SClips-SClock systems, program,

electric-SSClocks, desk-SClocks, wall-ECloth-SCloth binding-SCloth cutting machines-ECloth nets-S.Clothes baskets-SClothes brushes-SClothes dryers-EClothes liooks-SClotheslines-SClothespins-S -CClothing-SClutch rebuilding apparatus ECoat hangers-SCoat hooks.-SCocoa mats-SCoffee cans-S.Coffee grindersLECoffee percolators, electric-- ECoffee pote-SCoffee urns-ECoin, currency, and check

handlpig machineS-E .

Colanders-S

Collapsible tables-EColored pencils-SColorimeters --EColoring dyes-SCombines-ECombs-SCombustion analyzers --EComparators-ECompasses, blackboard-SCompasses, drawing-SCompasses, magnetic-E1Compasses, magnetic, pocket-S'compounds-SCompressed air -SCompressors, air-EComputing machines-ECondensers, electronic-SCondensers, ignition

distribution --SCondiments --SConduit boxes-SConduits and fittings-SConnecting rod aligners-EConnecting rod boring

machines-EConnecting rod rebabbiting

jigs-EConnectors, wire-SConstruction paper-SContainers-SConveyors-ECookers, pressure-ECooking stoves-ECooking utensils-SCoolers, water ---ECoping saw blades-SCopper -SCoppers, soldering SCopyholders -SCord-- SCords, electric SCores, valve-SCork-SCorksciews--Cornices, metal SCorrection fluid, stencil SCOrrosiVes-S

-

Corrugated paperCostumers--E

Costumes, theatrical -SCots-ECotter pins-SCotton, absorbent SCotton gauie-SCouches-ECounter freezers -ECounters, fixed-BFCounters, revolution and

strobe -SCounteWnIcs-SCouplings-5Coveralls-SCovers --SCrayons --S

crocks-SCrockery-5

`Cross-section paper --SCrucibles-SCrude Oti-SCrushed rock-SCrystals, watch-S

cues, carrom-SCultivators-E .

Culverts, sheet metal -SCup h9oks-SCupboards-ECups-SCups, grease-SCurbs-ICurling irons-SCurtain rods-SCurtains, shower and window-SCurtains, stage-,I1FCurtains, cyclorama-BF .

Curt s, window-SCuticle p ers-SCutlery -SCutters, glass SCutters, large ECutters, pastry S

Cutters, plane SCutters, small- SCylinder boring MIL:1110J tCylinder oils--SCylinders, dictating machine SCylinders, gas --ECylinders, hydrometer jar SCylinders,:inailing -S

4

Dampers-SDate stamps -SDaters-SDating machines-EDecorations-SDeep fat fryers-EDeep freezers-EDental abrasive points --SDental benches-EDental cabinets-EDental chairs-EDental charts-S.,Dental drilling ap atus -EDental drills-SDental instruments, small-SDebdorizers-S .

Desk blotters-SDesk lamps -SDesk tter baskets-SDe pads-SDe s-EDe Topers, photographic-S

eveloping tanks-SDextrin-SDextrose --SDiaries-SDictating machine cylinders,

, discs, and tapes-SDictating machines-EDictionaries, abridged-SDictionaries, large

unabridged-EDictionary stands-EDies, in sets-EDies, nokin sets-SDiesel engines, integral

parts of larger units-SDiesel engines for use in

classrooms-EDiploma cOvers-SDipionia ribbons-SDiploma. seals -SDiplomas-S

. Discs, optical-EDiscs, phonograph-SDish brushes-LSDish cloths -'SDish pans-SDish trucks-E

Dishes-SDishwashers, fixed-BFDishwashers, portable-EDisinfectants-SDispensers, soap-S,Display cases-EDisplay mounts-SDissecting sets-SDistilled water-SDistilling apparatus ÈDistributor boxes`Distributors-SDitto machines-EDividers SDoilies-SDollies-SDolls-SDoormats --SDoors-SDowels-SDrafting instruments-SDrafting machines-EDraglines-SDrain cleaners-SDrain pans-SDrain plugs-SDrain plungers-SDrain tile-SDrainpipe flushers-SDrapery-BFDrapery cloth-SDrawing boards-SDrawing compasses-SDrawing instruments-SDrawing paper-SDrafting pens-SDrawing tables-EDressers, emcry wheel -SDressings, eft -SDrier, in S'Drier, paint-SDrier, varnish -SDrift meters --EDrift pins, all sizes SDrill bits-SDrill points- SDrill presses, bench, fluor,

or radial-E,Drills, hand-S

1111

Drills, poAr-EDrinking water coolers,

s-Iayelect ice-E

DriveDrugs SDrums, bass, kettle, snare EDrums, fiber-SDrums, metal-SDrums, other ttan musical -SDry cells-SDry measures-SDryers-EDryers, clothes-EDryers, hair-EDrygoods-SDrying units, infrared-EDumbbells-SDuplicating machine brushes-8Duplicating machine ink-S .

Duplicating machine paper-SDuplicating machine parts -S'Duplicating machiDuplicating mac ps -E 'Dustcloths-SDusters-SDustpans-SDyes-SEarthenwa\re-SEasels, large-EEasels, small-SEdge tools, except cutting

dies-SEdgers, lawn -EEducational tests-SEggbeaters, electiic-EEggbeaters, hand-SElastic-SElectric batteries.._SElectric clippers, sheep,

horse -EElectric cords; -SElectric dishwashersElectric' floor scrubbers EElectric fuses -SElectric hot plates- EElectric irons -EElectric lamp bases.Electric light bulbs .SElectric Mixers -.E

Electric sanding machines-EElectric switchesaSElectric toasters-EElectric tube testers-EElectric vacuum cleaners--EElectric waxing machine EElectric welding apparElectric vtfires-SElectrical boxes-SElectrical systeins-SSElectrodes-SElectrolysis apparatus-EElectromagnets, laboratory-S

\ Electronic components-SElectronic deviation meters-EElectronic frequency'meters-EElectronic power. supply and

voltage regulators-EElectronic recording devices,

graphical and visual -EElectronic tubes-SElectronic volt-ohmmeters -EElements, battery-SEmbossers-EEmbossing fluid-SEmbdssing pans-SEmery boards-SEmery cloth-SEmery powder-SEmery wheel dressers -SEmery wheels-SEnamel-S'Enameled ware-SEncyclopedia, set-8End tables-EEngineers scales, measure-SEngine flushing machines -E .`

Engines, for use in classrooms -EEngines, integral parts of

larger units-SEnlargers-EEnvelope sealers -EEnvelopes -SEpsom salts--SEradicator, ink SErasers, electric -EErasers, hand-S

!rtExhilt cases -EExpire meters, camera E

Extensometers-EExtinguishers, fire F,

Extractors--EExtracts -SEye charts- S

yelets-SPabrics-SFace and eye shields .-SFaces, archery-SFalling weight Yammers--EFans, electric, portable -EFasteners-SFasteners, apparel-SFaucets, combination or single ---EFelds'par-SFelt - -SFences-IFencing foils --SFerrules-S I.

Fertilizers-SFiber rod-SFiber sheets-SFiber tubes-SFiberboard -SFigures, geometrical, models, 1

in sets-EFile-boxes-SFile cardsSFile folders-SFiles, wood and metal working-SFiling cabinets-EFiling machines-EFilings -SFillers, battery-SFillers, ink-SFillers, paint ---aFillers, wood --SFilm SFilms, motion pi?ture- IFilms, photographic SFilms, television -SFilm cement .-SFilter paper SFilters, small SFingers, rubber SFilmstrips-SFirearms. EFire axes-

extin isher S

Fire extinguishers -EFire hooks-SFire safety systems SSFire shovels-SFire tongs-SFireplace fixtures-FFittings, lubrication SFirst aid kits-S

agpole bases--IR gpoles-I

gs, large-Eags, small-S

flashlights -SFlasks-SFlatirons, electric-EFlavorings-SFlaxseed-SFlexible cord sets-SFlexible metal hose -5Flexible metal tubing-SFloats, hydrometer -SFloats, plumbing-SFloodlights, portable-EFloor covering, wall-to4fivall-- BFFloor oil-SFloor scrubbers, electric-EFloor waxes-SFlour-SFlower bulbs-SFlowerpots --SFlowers-S .

Flue cleaners-SFluot-escent lamps-SFluorescent starters-Shuoroscope.s7EFlushers, drainpipe SFlush valves-SFlux SFly sprays --SFolders--SFolding chair& LFolding tables EFood .5Football dummies,Football shoes SFootball uniformsFootballs SForceps . SForges B

Forks,. silverware --SForks, spading-SForks, tuning -SFormaldehyde-SForms, dress-EForms, geometrical, model,

in sets-EForms, printed-SFoundry machinery-EFrames, blueprint -EFrames, door-S

, mirror-SFrathes, ophthalmic-SFr , picture-SFrames, saw-SFrames, window-SFreezers-EFreezers, ice cream-EFrequency meters-EFriction tape-SFruits-SFuels-,SFumigants-SFumigators-SFungicides-SFunnels-SFurnaces-EFurnaces, heat treating-EFurnaces, laboratory-EFurnaces, remelting, type

metal-EFurnituret-EEur*ture polish-SFuse -SGages, tire,SGalvanometers--EGalvanoscopes -EGames -SGarbage cans -S

iden hose -SCarden tools -SGarments-SGarnet paper --SGas compressors EGas c1linders -EGas mantels-SGas meters, laboratory typeGas plates-EGas stoves-E

Gases-Gaskets-SGasoline-SGasoline dispensing pumps,

electric-EGasoline dispensing pumps,

hand operated -SGates--IGauges, aliment, 'cambers,

toe-in-EGauges, tire-SGauze-S

cutting machines --E

Gelatin duplicators-EGelatin pads-SGenerators, integral parts

of larger units-SGenerators, not integral parts

of larger units-EGeographic globes, large

stand type-EGeographic globes, small

desk type-SGlass ---S

Glass, watch-SGlass cutters-SGlass wool-SGlasses, drinking-SGlasses, magnifying-SGlasses, ophthalmic-SGlassware-SGlaze-SGlides-SGlobes, electric lightLSGlobes, geographic, large

stand type - -EGlobes, geographic, small

desk type-;SGlovet\rubber SGlue-S

cerin TSalp sts71

es- -SGrading,l

E Graduated ineasukcsGraph paper --SGraphite-- 11

Grass seed-S'Grass shears, hand opeiated-SGrass shears, power operated -EGrates, stove- SGravel-SGrease-SGrease guns, air, gun only -SGrease guns, hand -SGrinders, coffee-EGrinders, hand operated-d-,Grinders, power operate --EGrinding compounds-SGrinding wheelGroceries-SGrowlers, armaturGuards, arm-SGnards, lamp-SGuards, shin-SGummed cloth=-SGummed figures-SGummed labels-SGummed seals -SGummed tape-SGuns, starking -EGym shoes-SGypsum -SGyroscopes-EHacksaws-SHair clippers, electric-Hair clippers, hand-SHair dryers-EHairpins-SHall trees-EHammers, autobody, pneu-

matic-EHammers, ball peen-S

rnmers, electric, hand EHa ers, light forged SHa mers, power EHammers, sledge SHampers--SHand bags SHand saws SHand stamps SHand tools, in sc ' LHand tools, not sets S

Hand tools, po er driven,pneumatic a d electric b

Iland trucks

I

Handballs-SHandbooks-SHandles-SHandscrews, wood and iron S

Hangers, clothing-SHangers, hardware -SHardware-SHarnesses-EHarrows 7EHat blocks-SHatchets-SHeadlights-SHeaters-EHeaters, portable-EHeating pads-SHeating systems-SSHectographs-E .

Hemp fibre-SHinges-SHoes, garden-SHoists-EHoists, electric or pneumatic -EHolders, blotter-SHolders, change-Sholders, copy-SHolders, dictionary-EHooks -fHorizontal bars, portable -E.Horns, motor vehicle-SHorses-EHrses, gym equipment-E

rseshoes-SHose, apparel-SHose, flexible metal-SHose, garden-SHose clamps7S'Hose nozzles-SFrot plates-EHot water bottles S,liPurdles -EHydraulic jacks, garage type E

ydrometer floats.-SytIromete9s- S

grometeh-Spodermic needles Spodermic syringes --S

I SIce b --SIce cream cabinets, ice or

electric-E

Ice cream freezers-EIgnition coils-SImplements, farm FIncandescent lamps, bulbsIncinerators, fixed -IIncinerators, portableIncubators-EIndex cards-SIndex labels-SIrglex tabs-StIndian clubs --SInductance standards FInk-S.Ink drier-SInk eradicator-SInk pads,-SInner tubes, auto -SInsect nets-SInseam screening --SInsecticides-SInsignia-SInstruinents, band and musical-EInstruments, dental, sn?all -SInstruments, drafting-SInstruments, drawing-SIn'struments, medical, small --SInstruments, musical-EInstruments; recordihg,

electrical-EInstruments, surgical, small-S

_Instruments, surveying-EInstruments, testing-EInsulators-SIntelligence tests -S `-Intercommunication systems-SSInterferometers EInterval timers SIodine-SIodoform SIron filings -SIron gauze SIroners EIron, sheet SIron wedges SIroning boards SIrons, electric EJackets, book SJacks, garage type, IJacks, mechanical S

c

Jars -S

Jointers-EJoints, plumbing-SJ 'extractors, electric FJump standards EKerosene-SKettles-SKey racks -EKey rings -SKeys- SKeyboards, piano, paper -SKeyhole saws-SKilns.-EKitchen tables-E A

Kitchen utensils-SKits, first aid-SKnee pads-SKnives ---SLabels-SLaboratory balances, beam 'ELaboratoryfittings, plumbing-SLaboratory furniture-ELaboratory glassware-SLaboratory nitidels-ELaboratory mounts --SLaboratory tools, small hand-SLacing-SLacquersLactose SLadders, arge-ELadders, allLadles-SLagscrewsLamp bases-SLamp bUlbs-SLamps-ELamps, desk-2SLamps, drafting table-SLamps, electric floor--ELandscaping-ILantern slide cabinets E

.Lantern slides SLanterns -SLathes-Lathes, brake drum ELathes, turret, or automatic

screw machines- -E\Lithes, wood turning ELaths SLawn mowers ELavin rollers E

Lawn sprinklers, movableSLawn sprinklers, travelingELawn sprinkling systemsILawnsILeadSLead pencilsSLead, redSLead, slug and rule casting

machines, elrodELeatherSLeather 1:;riefdasesSLeatherworking tools, hand--SLecternsELedgersSLensesS.Letter basketsSLetter filesSLetter openersSLetter scalesSLetterheadsSLettering pensSLetterpressesELevels, precision machinist'sSLevels, small or carpenter'sSLevels, surveyingELibrary booksELibrary furnitureELibrary trucksELifts, vehicleELight bulbs SLight globesSLight systemsSSLighting units, blueprintingELime --SLine markers, large push typeELine markers, s SLinens ---SLiners, staff, music -SLiners) type SLining, brakeSLining, clothSLinoleumSLinotype metals- -SLinotypesELinieed oilSLiquid bronzingS

polishesSLiquid soaps SLitmus paperS

LivestockELoamSLocker, built-inBFLockers, movableELocknutsSLocks, small, not built-inSLoomsELoose leaf bindersSLoose leaf notebooksSLubricantsSLubricating oilSLubrication. fittings SLugs, solderingSLumberSMachine toolsEMachinery, canningEMachinery, cement-makingEMachines, addingEMachines, addreisingEMachines, billing EMachines, bookkeepingEMachines, brake\liningEMachines, calculating--EMachines, check handlingEMachines, coin handlingEMachines, coin operatedEMachines, dating, power --EMachines, dating, small hndSMachines, dictatingEy,Machines, dishwashingtMachines, draftingE;Machined, drycleaningEMachines, duplicatingEMachines, large EMachines, laundryEMachines, mimeographEMachines, mixing EMachines, numbering, power--- EMachines, numbering, small

hand --SMachines, polishingEMachines, pressingEMachines, sanding ----EMachines, scrubbing --1Machines, sewing/E -

Machines, small, hand. .

Machines, stamping, power---EMachines, stamping; small.. ,1

handS ,

Machines, tabulatingEMachines,RvashingEMachines, waxingEMagazine coversSMagazine racks, large stand -EMagnets, laboratorySMagnifying glassesSMail boxesSMalletsSManicuring toolsSManila filesSManila foldersSManila rtrpeSMap tracksSMIps, largeEMarkers, line, large push-typeEMarkers, line, smallS ,

MatchesSMatrix, typeSMats, door and bathSMats, gymnasium, tumbling,

wrestlingEMattocksSMattressesSMaulsS

MeatsSMechanical drawing instrumentsSMethanical pencilsSMedals --SMedical instruments, smallSMedicine ballsSMedicine casesEMedicines SMegaphonesSMemo booksSMending materials SMesh; steel wire - -S

atus ENletaMetal polishes - -S

Metal working machinery EMetal working tools, small,

hand operated--SMetals, ,die casting SMetals, laboratory -S

(./MetalS, lino eSMeter sticksSMeters, watt, Iaboratly typo E

-Microfilm readers and viewersfor office useE

Micrometers, in setsEMicrometers, not in setsSMicroprojetct o EMicroscopes EMilk cansSMilking macinesEMillianunetersEMilling machines, bench or

floorEMillivoltmetersEMimeograph machinesEMimeograph paperSMineral woolSMinerals, laboratorySMinute booksSMirror framesSMirrors, large wallEMirrors, smallSMitre boxesE-Mixers, electricEModeling claySModeling tools--fSModels, dressEModels, shop and laboratoryEMolding, metalSMop pailsSMop trucksEMop wringersSMopsSMortarSMortisersEMossSyotion picture camerasEIsIkotion picture filmsEMotion picture projectorsEMotor analyzersEMotor generator setsEMotor vehicle parts-. SMotor vehiclesEMotorcycles ---EMotors, integral parts of

unitsSMotors, not integral parts tof

larger unitsEMounting boardsS

'..2Mousetraps SMowers, lawnE

'06

MucilageSMultimedia setsSMusic stands EMusic, sheetSMusical instruments EMuslinSMustardSNail polishesSNailsSNapkinsSNapkins, sanitary -SNeatsfoot oilSNeedlesSNeedles, hypodermicSNegative racksSNegative tanks SNets, clothSNets, steelENewspapersSNibbling machinesENickel polishesSNoise and field strength

metersENotebook coversSNotebooksSNotebooks, stenographersSNo es, hoseSNumbe g machines, powerE,

ering machines, smalldS

NuOakumSOarsSOffice composing machines,

VaritypesEOffice furnitureEOhmmeters--.EOil -SOil cans SOilclothSOintments,--.5- .

Oleomargarine - S .4 1;4OPeilers, letter- S "Oplithalinic frames- SOptical dist;s --E

1,0

Outlets, electricalSOutline mapsSOutput metersEOvensEOvenware dishes S.OxygenSPackingSPaddingSPadlocksSPads,Pads, deskSPads,Pads, stampSPads, typewriterSPads, writingSPails--SPaint drierSPaint removerSPaint spraying outfitsEPaintbrushesSPaintsS

(PalettesSPamphletsSPans, largeEPans, smallSPantographsSPaperSPaper clipsSPaper cups--SPaper cutters --EPaper fastenersSPapernapkins SPaper punchesSPaper towelsSParaffin SParts, automotiveSParts, radio, resistors; tubes,

transformers --SParts, repairSPaste --SPaste brushes SPasteboard --S

Pasteboard boxes SPali. es 5Pastry cutters-

Organs E Patc g compd'undsOscillatorsE t rns- SOscillographsE g -IOscilloscopeE Feat moss S

S

/

Lb

Peelers, eledrical-EPeelers, hand-SPen points-SPencil sharpeners-SPencils-SPencils, mechanical-SPenetrometers, soil-EPenholders-SPenknives-SPennants-SPens-SPercolators, coffee, electric-EPerforators, large-EPerforators, small-SPeriodicals-SPerinanent waving machines-EPestles-SPhonograph needles -SPhonographsecord,albums-SPhonograph records-SPhonographs-EPhotocopying apparatus-EPhotoelectric cells-SPhotoengraving apparatus-EPhotograph mounts-SPhotographic lenses-SPhotographs-SPhotometers-EPiano parts-SPianos-EPicks -S'Picture frames-S

'Picture '

Pictures, small-SPictures, wall, large-EPigments-SPillows-SPing-pong sets- SPinking shears-- SPins-SPipe-SPipe dies, in sets EPipe dies, not in sets SPipe fittings-Pipe, steel-SPipettes-SPiston rings- S

, Pistons-SPitchers-S

Pitch pipes-SPitChforIcs-SPlane cutters-SPlaners, power-E'Planes, hand-S

'Planing machines, photo-engravers-E

Plaques, perKanentEPlarimeters-EPlaster -SPlaster, adhesive-SPlastic wood -SPlate glass-SPlates-SPlates, addressing machine-SPlatgs, battery --SPlates, bench-EPlates, book-SPlates, hot-EPlates, lantern slide-SPlates, photographic --SPlatforms-EPlayground equipment, fixed-IPlayground equipment, movable-Playground surfacing-IPliers-SPlows, field-EPlows, snow-EPlugs, drain-SPlugs, spark-SPlumbing and heating valves -SPlumbing fixture fittings

and-trim-SPlumbs-SPlungers, drairi-SKickets, book -SPointers-S )

Points, drill --SPolarimeters --EPolariscopes -EPoles -SPoles, climbing SPoles, vaulting,ipanibou SPoles, vaulting, metal EPolishes --SPortfolios, leatherPostal meters-- EPosters -SPosts--S

Posts,fixed-IPot cleaners-SPotafo peelers, lairge.

machine -EPots, large-EPots, small-:SPottery-3Powders--SPower sprayers and dusters -F.Preservatives-SPresses, arbor-EPresses, book, bookbinders-EPresses, cylinder, flat bed,

printing-EPresses, engraving--EPresses, letterE .

Presses, lithographic or offsgtprinting-E

Presses, mechanical-EPresses, power-EPresses, punch, foot power EPressure cookers -' -EPrinted materials-SPrinting cases-EPrinting fratnes-EPrinting ink-SPrinting materials-SPrinting presses-EPrinting sets, rubber-SPrinting type-SPrisms-SProjectors-EProtectors, check-EProtractors-SPruners, hand-SPruners, power7EPsychrometers-SPublic address systems,

installed SSPublic Address systems,

portable -EPulleys -SPumice SPPumps, large EPumps, small --SPunches -SPunches, electrical.Push buttons& SPushcarts E

PuttySPyrometersEQuivers, arrowSRackets, badmintonSRackets, terulisSRacks, bicycle, fixedIRacks, bicycle, portableRacks, large standERadio receiving sets7ERadio transmitters ERadio tukesSRadiosE)RaffiaSRags SRakes, ertSRakes, wERams, hydraulicERanges, cookingERaspsS.RattanSReamersS.ReceptaclesSRecord booksSReco'rd formsSRecoict playersERecorders, soundERecording tape and wire SRecord, phonographSReedsSReels,.hoSeSReels, motion picture filmSReference booksEReflectors, parabolicSRefracting apparatusERefrigeratorsERegisters, cashERegisters, printedSRegulating valves SRegulators, voltage- SRelief maps -SRepair partgSReport forms--SResistors --SRe iratorsS

illr

torts, glass laboratory- S( RheostatE

Ribbons, adding Machine SRibbons, addressing machine .5Ribbons, clothS

Ribbons, typewriterSRingtoss gameSRings, bbxingERings, carromSRings, flyingERings, keySRivetsSRobesSkbc1c, crushedSRoller bearingsSRollers, inkSRollers, lawnERoofing materials --SRopeSRosinSRottenstoneSRougeS y,Routers gRouters, plate, photoengravRowboatsERubber bands..4rRubber goodsSRubbish cansSRugs, room sizeERugs, scatter7SRulersSRules, shrink and circum-

ferenceSSaccharirnetersESafesESafety belts, window-workingS,Safety glass --SSafety pinsSSaltsSSand SSanders, electric-..ESandpaperS1Sandwich boards SSanitary nipkins SSanitary systems SSSash, combination screen &HAI

stormS

4

Sa horses -ESa s, bandES ws, circularES ws, handSaws, powerEaws, power hack -E

I Scales, beam balance F.

Scales, draftsmens -SScales,springSScalpelsSScissorsSScoop shovels, handSScpuring powdersS

.. Scrapers, handSScreen doorsSScreens, projection, built-inBFcreens, projection, rnovableE

Screens, window*Screw extractors SScrew eyesSScrevi hooksS .

Screwdrivers SScrews SScrubbing compoundsSScrubibing machinesEScythes SSealers, envelope, inechanicalESeasoningsSSeatsESectional bookcase'§ESedatives--SSeed, grassSSeparators, batterySSeparators, milkESerums--SServing traysSSettees--E .

Sewer systems. I or SSSewing machines- EShades, windowBFShakers, Laboratory- EShakers, power-- ESampoo -Sgrapers, bench and foci trShapers and routers-,-ESharpeners, electrical --ESharpeners, pencil

-E

Sash cords -SSash, screenSSash, stormSSatrcersSSaw blades -SSaw framesSSa.wduit`S

Shears, hand operated SShears, power-operated h

SheavesSSheet metalS

G.. Sheet musicSSheeting SiShellac SShelves, kilnSShelvingBFShelving materialsSShinglesSShock absorbersSShoes and boetsSShopcoatsSShorthand writing machinesEShovels, handSShower fittingsSShrubsIShrubsSShuffleboard sets:SShuttlecockiSSidewalksI 'Siding, sheet metalSSiftersS

Signs, smallSSilk screen printing apparatus,

complete units-/S. --Silver pOlishesS

.SilverwareSSink fittings-1SSkeletons ESkilletsSSkisSSlats7S

,,SlidgehammersSSlicers, bread, mechanical ESlide rulesSSlides, lanternSSlides, microscope$Slides,projectorSStraps SSneakers-7S

Snow shovels, hand- -SSoap dispensersSSoapsSSoccer balls--SSoccer shoesSSocket wrench setsESockets, wrenchS

Socks, pairs ISSoda, bakingSSOddingSSoftballsSSofteners,. water, chemical ---SSoilSSoil penetrometersESoil test moldsESoldering coppersSSoldering materials--SSolventsSSound recordersESound systemsSSSpadesSSpading forksSSpark plug cleaning machinesESpark plugsSSpatulasSSpecimens, laboratory SSpectroscopesESphygmomanometersESpikesSSpiritsS'..

tSpirometersE"Splints SSpokesSSpokeshavesSSponges S.Spoons SSpotlightsSSpray mixturesSSprayers, handSSprayers, poWerE'Spreaders, manure ESpreaders, tireESpreads, bedSSpringsSSprings, furniture -SSprinters, lawn, movableSSprinklers, lawn, travelingESprinkling systems, lawn 4-ISprocketsSSquares.---SSqueegees, -SStacks, book----EStadia rodsEStadioinetersEStaff liners, musicSStain removersS

.16

StainsSStakesSStamp pads7SStamping machines, powerEStamping machines, small hand--.--SStamps, rubberSStandards, jumpEStands, calendirSStands, chartEStands, dictionaryEStands, engine repairEStands, umbrellaEStaplers, foot- or power-

. operated ;-.EStaplers, small hand ---SStaplesSStarch SStarters, electricSStationerySStatuary'ESte vapor cleaneriESteam ackingSSteel measuring tapesSSteel, sheetSSteel wool-3Stencil, correction fluidSStencilsS .

Stenographers notebooksS`'StereoscopesESterile gauzeSSterilizersESticks, compOsingSSticks, hockeySStilts, sportSStitchers-;EStock receordsSStockingsSStones, printers EStools-::EStop watchesSStoppersStops, beStotage batt :SStorm dgrain systemsStoveiEStraightedges SStrainersSStraws, drinking -SStretcheis S

d

StringsStriking b -outfits-EStyluses-SSunglass frames -SSung,lassef -SSupply cases. -ESuppprters, athletic-SSurfdce hazdened blocks-SiSurgical instruments',.small-SSurgical powders-SSwages-SSweepers, carpet, electric-ESweepers, hand-SSwitch boxes-SSwitches, electricw-SSynchronizers, cvnera-SSyringes-SSyrup -STable protectors-LSTable tennis balls-STable tennis rackets -;-STablecloths-STableware-STables-E g

Tables, computing-STablets, medicinal-STablets,writing,STabs, index-STabulating machinesLETack hammeri-STackling dummies, football-STacks-S'.Tags-STalcum powder-STanks, bulk storage -ETape--STape measures -STapes, measuring -STaps-STar,,rookg STaikets, arZW-Team uniforms- -STelephone systems- SSTelevision cameras -ETelevision sets-ETelevision tubes-STennis balls-STennis court nets, cord--7STennis court nets, steel--=E

Tennis rackets-STents, w11-E-Tents, shelter-S°Terminals, battery -STest tube brushes --STest tube racks-STest tube§-STests, achievement -STextbooks-STheatrical costumes-LSTheodolites and tripods-EThermographs-EThermometers-SThermostats-SThimbles-SThinners-SThreads-SThroat applicators-S.;`Thumb tacks--LSTickets-STile, drain-STime clocks, watchmens-ETimers, large-ETimers, small-STin cans-STin cutters-STinware-gTire chains-STires and tubes-STissues, cleansing-SToasters, electric-EToggle bolts-SToilet paper-STokens-S

..Tongs-STongye depreisors-STool sets, hand -ETools, hand, not in sets STools, power-ETopsoil-ITow bars-SToWels-LSToys, large EToys, small--STracing cloth ---STracing paper -STractors-ETrammelsTrampolines .-E

Transformers, laboratory-STransit, engineers-ETransmissions, integral parts

of larger units-STransmissions, not integral

parts of larger units- ETransmitters- ETrays-STrees-ITrees, hall-ETriangles, drafting -STrimMers, hedge, hand-STrimmeri, hedge, power-ETripods-ETrophies-STrowels-STruclechassis-ETrucks, hand-ETrudk., motor-ETubes, inner-STubes, radio-STubes, television-STubing materials-STurriblers, glass -STuning forks-STunnels, models, wind-ETurf-IThrpentine-STweezers-STwine-S

, _Type cases-EType casting machines-E.Type cleaner-S e'-Type liners-SType, matrix-SType, printing-S/ typewriter brushes--STypewriter covers -STypewriter desk. .-E -

Typewriter ribbons. $Typewriters--EUmbrella stands- -EUnguen is S

.Uniforms SUpholstering materials' SUrns, coffee- EUrns, flower- -SUtensils -SVacuum bottles S

Vactium cleaners-EVacuum. , tube voltxneters-EValve parts-SValves, large, automatic-EValves, small-S °-

Vaporizers, electric -SVarnish driers-SVarnish removers-SVarnishesSVases-SVapl.ting poles:S.Vegetables-3,Vending machines-EVentilating systems--SS

Vessels, large -E

Vtssels, small-SVibrographs-EVideo cameras --EVideo recorders-E'Video tapes-SVines-SVises, bench -EVises, small

Vision charts4Volleyball' nets -SVolleyballs-SVoltmeters --'E

Wagons-EWall brUshes-S

Wallboard-SWallpaper-S

Walls, 'retaining -I

Washbasins-SWashbibths-S..'Washers and/or dryers --E

Washers, rubber and ,leather -S

1/4

er

1'

1'

Washers and dryers, photcf-

graphic-EWashing machines --E

Washing powders -Srastitulbs-S

aste, machInists--8ebaskets-S

Watch crystals-Watches, stop --S

Watchniens time clocks ---E

Water coolers-EWater, distilled-SWater glasses-e

Water meters, laboratory type-Water softeners-8Water sistems-SSWatitiplor brushes:-SWatt laboratory.

type-Way.ertieters and wave

analyzers-EWax crayons --S

Waxes, liquid-S/Waxes, pasteLS

Waxes, sealing-S

Waxing machines-EWeaving Machines-EWeighing scales, beam-E

Weighing scales, small.

springs -S

Weights:-'7S

Welding apparatus ,EWelding rods-SWheel 0.

apparatus-E'Wheelbarrows-E

1Wli s; automobile --S

Wheels, imery-SWheels, pottery-- E

Whetstones-SWhiskbrooms --5

Whistles-gWindow glass --S

Window screeds -S:

Window shades-S

Window -working safety belts-4k;Wipers-S

-E

or,

Wire-SWood fillers-SWood, plastic-SWood preservatives-S,Wood stains-S

Wool, glas-SWool, steel-SWork benches --E

Work tables-EWrapping paper-S,Wrenchesl in ;sets -E

WrnChE,' not insets -SWringers, ,cloth -S

Wriniers, mop; large

Wringers, mop,

Witers, check -EWriting,paper-SX-ray macbitres-E

benches-EYard brobms-SYardsticks-S *Yarn-S-Zinc--S

ro

;'

r4

:e4

1

LCIVIVOIVIA4 VUU.4I4

Biological models --E

Biology specimens-S

Bit braces-S

Bit tools-S

Bits-S

Blackboard pointers-S

Blackboards, portable -E

Blackboards, small slate --S

Bladderi-S

Blades, saw-S

Blankets --S

Blanks, printed-S

Bleachers,, indoor, fixed -BF

Bleachers, outdoor, fixed- I

Bleachers, portable-E

Bleaches-S

Blinds, vnetian ,BF

BlOcks, hat- S

Blocks, kindergarten- S

Blocks, surface hardened -S

Blocks, terminal -S

Blood analysis apparatus,

complete-E

Blood plasma cabinets

Blood pressure apparatus E

Blotter holders -S

Blotter pads --S

Blotters-S

1177995

MU V IJ L110 t..1

Bodies, bus-E

Bodies, truck E

Bodkins-S

oiler cleaners-S

B filer compounds --S

Boiler firing tools -S

Bolt cutters-S

Bolts-S

Bond paper-S

Book cards --S

Book jackets-S

Book pockets-S

Book records-S

Book stacks-E

Book trucks-E

Bookbinding machine!), h

Bookcases, portable,-E

Bookcases, sectional E

Bookcloth S

Bookcovers-S

Bookends-S

Boo4eeping fowls .S

Bookkeeping machines E

Bookplates S

Books -S

ooks, cash S

ks, composition S

Boo

144 UAW., 11LLLILb 11161V1 Ps

Brakes and folders, hand or

power-E

Brakes, complete replacement units S

Brass polishes--S

Brass rods-S

BraIsheets-S ,

Bread knives-S

Bread pans-S

Brea4 slicers, mechanical-E

Bread toasters, electric,-E

Breadboards -S

Breakers, circuit-S

Bricks-S

Bridges, wheatstone and

similar-E

Bridles -S'

Briefeases S A

Broilers, electric E

Bronze, casting S

Bronzing liquid-S 'at

Brooders-E

Brooms, hand -S

Brooms, power4lrivcn,

Brushes-ZS

lickets-S

cksaws " -S

Buffers, electric

tlkiNtays .S

sling,

I./LUC -0

Carbon dioxide-SCarbon paper-SCarbon ribbons --SCarborundfunNstones-SCarburetors-S

storage -E *Card holders --Se or . Qard punching and sorting

ce-EE Card racks --E

-E 1 Card tables-ECardboard -SCardboard boxes-SCards-SkCarpenters squares-SCarpet beaters -SCarpets --ECarrom boards -SCarrom cues- S'Carrom rings --S-Carts:-ECarving knives S

E Cases, brief-- SCases, cardboard --SCases, display ECases, file -ECases, laboratory E,Cases, musical instruments,

1

14g -E

ley -E-E

Lentrituges-cCertificates --SChafing dishes-S.'Chain hoists-EChains-SChains, tire-SChair pads-SChairs --E

Chairs, folding --EChalkboards, fixed-BFChalkboards, portable -EChalks-S

-ChamoisLSChange holders-SCharcoal-SCharge slips-- SChargers, battery- EChart stands-ECharts, large--ECharts, small SChassis, bus- E

'''Chassis, truck kCheck handling niaciailub 12,

Checkbooks SChecker boards SCheckersSChecks,, brass SCheckwriters-ECheeseclatt -S

rlea 1.1) 1144

Clips --S

Clock systems, program,electric-SS

Clocks, desk ---S

Clocks, wall-ECloth -SCloth binding-SCloth cutting machines --ECloth nets-S.Clothes baskets-SClothes brushes-SClothes dryers-EClothes hooks -SClotheslines-SClothespins-SClothing ---S

Clutch rebuilding apparatus ECoat hangers-SCoat hooks. .-S

Cocoa mats-SCoffee cans -S.Coffee grindersLECoffee percolators, electric- ECoffee pote-SCoffee urns -E

currency, and check

handling rnachinesLEColanders-S ,

Conduits and fittings-SConnecting rod aligners-EConnecting rod boring

machineS-EConnecting rod rebabbiting

jigs-EConnectors, wire --S

Construction paper-SContainers-SConveyors-ECookers, pressure-ECooking stoves-ECooking utensils -SCoolers, water-ECoping saw blades-SCopper ---S

Coppers, soldering SCopyholdersCord -..S

Cords, electric SCores, valve-SCork-SCorksciews-SCornices, metal SCorrection fluid, steticii SCOrrosjires-S

r

Corrugated paper.Costumers--E

Crystals, watticues, carrom-Cultivators-ECulverts., sheet

Cup hooks ---S

Cupboards-ECups --S

Cups, grease-5Curbs-ICurling irons--Curtain rods-4.

Curtains, show

Curtains, stageCurtains, cycic

Curt s, wind

Cuticle p erCu ilery -S

Cutters, glassCutters, large

Cutters, pastryCutters, planeCutters, small-Cylinder borinCylinderCylinders, dietCylinders, gas

Cylinders, hYd

Cylindess:friai:

4

t 4:31T Snrk S.c ct rrictal ---S-s

I

e S

SLc) vs" r andaeer ifc 1 Ici r- nraiita c) NKrcrs S

;try_fa

Srim IAIAL

Ls.-- Sc Ca. t. ii k i I

;ascirriz) Y 1.1 t x-- j alLx-

allira S

N,Nr- cl cco SEt E"

f

Part V

Stores System Procedures, Controls, and Accounting

A central stores system enables a school districtto take advantage of the economies of qUantitybuying and to fill requisitions for standard suppliespromptly. However, no set rules can be establishedto determine when it would be to the best interestof a school district to adopt a stores systeth.Availability of material, facilities for storing anddelivering merchandise, and the size and number ofplants in a school district all mt0 be taken intoconsideration. Costs of receiving, storing, and'

.elivering stock items, as well as costs. of ftockcontrol, should be included in the total cos of astores system (as compared to the cost of directpurchasing) in deciding on the desirability of thestores system.'

Optidnal Meth s of Financing,Accountin and Controlling

Either of two accounting methods may be used:

Stores Account Method

The establishment and maintenance of a storessystem by the use a Stores account carriedwithin the General and is g long-established prac-tice. Stores accou ay also be maintainedwithin other funds.

Revolving Fund Method

Education Code sections 42830-42834 dutho-.

rize and prescribe procedures for the establishmentof a revolving warehouse stock fund fct schooldistricts. Permission ais also given for two or moredistricts to establish a common -revolving fund forthis purpose. The amount of the revolving fundshall not exceed an amount from the General Fundof the district or districts equal to the dailyattendance of the district or districts for the nextpreceding year multiplied by fifteen dollars($15.00) plus such amounts as the governin oard

V Ic

or governing liOards may appropOate from otherfunds of the district or districts, as outlined inEducation Code sections 42830-42834:

Types of SUpplies in a Stores System

Items purchased for a stores system should bethose that are used in sufficient quantity to justifythe cost of.establishing tkkin as stock items. InitialpurcCase of a new item should be conservative asto quantity to test its turnover, thereby establish-ing a basis for determining the' quantity needed.Committees composed of users of the Various itemscan be helpful in determihing standard items to bewarehoused and in encouraging their use. Tlietypes of items most frequently stockeld are includedin the list that follows:

Instructional supplies, including paper; pencils.chalk, paste, art supplies, and the like

. -Office supplies, including typewriter ribbons.

duplicating supplies, desk files, and the likeCustodial suppliesMaintenance supplies, including lumber, small

tools, electrical supplies, paints, sandpaper,and the like

NOTE: Many of these items are fre uently requisitioned for usein the school shops. Sometimes it is ecessary to early more thanone quality of supply for this purpo

Food and related suppliesPrinted fol-rnsEquipment (When it is Known that its such as

typewriters, scrubbing machines, and the likewill be needed in the near future, it issometimes economical to purchase this equip-ment in quantity. It is not recommended. thatequipment items such as these be maintainedon a minimum-malximum basis as are items ofsupply.) V

Essentials of a Stores System

The essefttial features to be provided in connec-tion .witt the establishment and operation- of astores system are presented in this section.

DevIceS for Control of Purchases

Provision for numbering, cataloging, and stan-dardizing stock items: Printed catalogs that list allitems by stock nujnber, unit of issue, description,and unit cost should be available to all Who willrequisition "them from the warehouse. The catalogshould preferably,,be loose4eaf to allow for replac-ing pages in the event of Substitutions, additiofis,or deletiOns.

Provision for the addition or deletion of stockitems., A special form may be used to notify alldepartments concerned of the necessary informa-tion regarding the action taken.

Provjsion for minimizing losses because of ob.sioi-lescence.. Special' committees can be helpful ingiving information in advance on pr4rined changesin curriculum whiali will affect the use of supplie,already stocked. If it is known that a changec, splanned, supplies to bef-discontinued can beallowed to run out without reordering when thestock drops to the minimum.

Control oijinaximum and minimum stock bal-ancs. Care shld be exercised iti the setting ofmaximum and. \minimum quantities. Coritinualstudy of stock activity and periodic readjustmentof the limits set are required because of suchconditions as growth, grade levels of users, changesin curriculum, changes of personnel placing requisi-tions, storage capacity, and the likeci Some itemswill 'deteriorate when stored too long; this factorshoo et considered when placing orders. Verysmall,, inexpensive ites should be ordered inadequate supply for anticipated need; more expen-sive items should be ordered according to .conser-vative estiVes of need.

Records of perpetual Inventory

Individual cards or. records that contain thefollowing information should be kept for each itemstocked:

1. Identifying stock numberTh. 2. Specification of unit of issue

37Description of item

V--2

.4)

4. Unit price .

5. Posting references: date, document number,and the like

6. Receipts in terms of stock units7. Issues in terms of stock units8. Bala,nces on hand in terms,of stock units

, NOTE: The' following additional 'information on the stockre-cords may be desirable; (I) minimum and maximumquantities to be stofeked; (2) reference "to vendor's fromwhom stock is purchased: (3) memoranda of orders placed;(4) memoranda of unfilled regulations; (5) reference towarehouse location of item if the identifying stock numberdkiinot be used kir this purpose; and (6) provision for valuesa receipts, issues, and balances on hand.

Verification by Physical Inventory

Provisions should be *made for at least an annualcount of all items- stocked. This can be done on acyclical basis with a portion of the total stockinventoried each period. This count should bem9de by persons other than warehouse personnel,In the event warehouse personnel are used to takethe. count, the record 'should be spot-checked bypersons other than those responsible for stock. Acommon practice is for the firm performing theschool audit to make the spot checks.

Security Control and System of Internal Checks,

In planning the stores system, provisions shciuldbe made for adequate security o stock and asystem of internal checks.. Buil ings used forwarehouse- storage should be as fi proof as pos-sible and should have adequate loc s. Only speci-fied personnel should be allowed t issue stock.Preferably the stock records should e maintainedin an office other than the war ouse (stockrecords are commonly maintained i the account-ing or purchasing offices). At inV ntory time orother periodic_ checkup time, ny differencebetween the book record and actual quantitycount should be investigated and necessary adjust-ments made.

Planned Procedures for Receiving and Issuing

1. items to be stocked should be purchased bymeans of an official district purchase orderissued in compliance with the EducationCode and. the district's policies coveringbidding and `purchasing. An ",on order" nota-tion may be made on the individual stockcontrol records at this. point. On receipt' of

merchandise, the items shogld be countedand inspected for condition and compliancewith specifications. The signed receiving copyof the purchase order or other receivingdocument authorizes paymelit to the 'vendorand 'charge of the cost of th merchandise tothe Stores account. Either the receivingdocument or the 'payment warrant may beused as the basis for entering receipt of stockby quantiV and value on the stock controlrecords -affecisd by the ?Purchase. I

2. Stores ,should be issued only upon theauthortty of a pro rly approved, prenum-bered reqgisition, which should give thefollbwing irkormatio .

Source an6date of requisitionDelivery instructionsAccount or accounts to be chargedProvision for approvals as to budget, items

allowed, quantities, and the like-Provision for posting referenceFor each item: quantity ordered, unit,

stock number, description, unit price,total amount; and on eaiti requisition,columns cor noting substitutions, hackorders. and the film-

\ Provision for evidence of receipt and dateof delivery. A multiple copy snap-outform is commonly used for warehouse

o issues, with copies of each transactiongoing to the requisitioner, the ware-houseman, and the recording office.Posting is done from, this 'document tothe stock control records.

NOTE: The term requisition as used here should btunderstood to include requisitions, billings, stor.-voices; or similar documents for use by certain diffiPtsthat find it desirable to use additional documentsbetween: the time of preparation of the [equation forthe materials and'the actual delivery of these materials tothe school or department requesting them.

Lines of Authority and ResproAbility. of Personnel e

Lines of authppity and responsibility shouldfollow a logical" ililantand be clear-cut and definite;

NOTE: In 'planning the establishment oc a stores system,consideration should be given to the location of the warehouseor warehouses and to the transmittal of documents between the

7-77995

te

warehouse and the accounting office. The space requirements,physical requirements for propel stprage, and arrangement oftock items should be determined in adltance. Stored items

ihould be arranged when possible in an order corresponding totheir order on standard supply lists.

Accountinfor a Stores System

Accounting for a stores system may be done byemploying (1) the\stores account method; or (2)the revolving fund method.

Stores Account Method

The stores account method provides/ for theestablishment- of a Store( account within theGeneral Fund., Stores acco

Store(may, also be estab-

lished within other funds of the clisirict. Paymentsfor the purchase of stores are not classified asexpenditures; these payments constitute an increaseof the 'asset account, Stores, equal fp- thereduction in another asset account, Cash in CountyTreasury. The issuance of 'stores should be re-corded as a reduction o the asset account, Stores,and as a charge to th appropriate expenditureaccount for which the s res were issued. Suchaccounting ma) be contilituous, or summaries ofstores issuance may he made periodically, prefer-ably at least monthly, and the total credited to theStores asset account. Charges to titgNarious expen-diture accotints for whidh the stores were ,issuedwould he made at this time in summary., To the\,, riextent that the county upentendent of schoolsmaintains corresponding r ords, summaries of the,;<"issuance of stores should be reported to the countysuperintendent of schools' periodically. The remain -,der of the Stores account- should represent the

cinventbry value of merchandise in the warehouse.When goods are purchased for stores witlituct the

dse of a revolving fund, budget control of 'expen-jAitures occurs at the time of issuance ak suchmerchant se and not' at the time of purMase.Uncontrolled purchasing may result in an uNeces-sary and excessive investment in .stores and a-7(11serious depletion of cash needed for other budgetpurposes. The establishment of the 'Stores accoyntshould follow, not precede, the budgetary authori-zation, whieh is made by entrii of the intendedamount in the budget under Ending Balance. Onceestablished, the 'actual balance of the Storesaccount should appear in, the budget under Begin-ning Balance; and the same amount, or a deliber-

I4.

V-3S.

ately chosen larger or smallel amount, should beentered under Ending Balance. Procedures for thew.control of purchases shotild, be established so that,considering existing inventory and carefully pre-.pared estimated rdistribtitions, an ending inventory-will not exceed the investment in stores as indi-

.cated,in the budget.

Revoliing Fund Method

A revolving fund is a separate fund established inaccordance with Education Code sections 42830-42834. Payments for purchases of stores aremade 'by warrants drawn on the RevolvingFuntl for Warehotip.. Stock. The school districtbuys merchandise frimn the fund and makes pay-ments by warrants drawn payable to the RevolvingFunefor Warehouse Stock. The county treasury isthe depository for cash. This revolving fund planprovides a semiautomatic control of the amountinvested in stops.

. Accounts for the Revolving ,Fund for WarehouseStock include Cash in Ctunty'rreasury, AccountsReceivable, Stores, Current Liabilities, and Reservefor Working Capital. These accounts are self-balancing because the initial value of the fundremains constant unless changed by hoard action.The balan s in the accounts always reflect s fixedamount, w .they' it he in stock `-pr_ cash rr acombing of both, including, receivables andl4hilities. The same fixed amount shall he recordedal year-end on official budget forms 'and reportsunder the Stores account as s part ,,f Prv.;,,,,i,,eRaj ce ant Ending Balance. _,

Typical Costs of Receiv4ig,-Warehousing.and Distribution in Connection with

a Centra Stores SystemCosts of receiving, w housing, nd distributing

stores items, in addition to e cost of merchan-dise, should be charged to the Stores accoura.These overhead expeles should ultimately becharged to the several expenditure accounts towhich merchandise costs are charged in proportionto the .costs of the merchandise. :De procedureused is not important if the results-are equitable.

- Use of one or more subsidiary expense accounts is-..common practice.

,;'

One method is to add 'an. estimated overheadcharge to merchandise unit prices, a justing it as

-,.

O

.,V 4 Fr

1.

needed from time t6 time. This method provides at6ta1 unit charge for each item_cazid avoids thepossibilitiy, of delayed overhead charges tp ro-Pilations that haveLbecome exhausted. ,

Another ,Tethod is.to distribute estimated oven;.head charges to expenditure accounts pn 'anencumbrance at the beginning of a fiscal ytar.Such charges e t be determined. on, the basis ofInticipated stor i ues to the several expenditureaccounts. At the cl se of the year, on periodically,the encurnbrantes v,:y be liquidated and theactualoverhead expense o ').

atever methoet),' used, overhead chargesould be cleared at e end of each %fisca year so.

that the Stores acC unt will represent only thevalue of the invento of material on hand. at*

Charges and crOts to the Stores accountsubaccounts should include the costs' of receivin ,

storing, and delivering in adldition to the diremerchandise is (cost of item, saki tax, postage,freight, cartage, and other deliverf'charges to tlifwarehouse): as folloWs:

Sald,rteS of ,peaaonnel (storekeeper and others)directly related to the warehouseapplies used in connection with recei,vh'Pd warehouse refordkeep ng.

ent of space, facilities. and PiiiirniP'11+tilitiesirect expense of trIkaking

Gas an oil -1GreaseRepairsTires and tubesAccessoriesOther expenses

.4

: When trucks are used for several purposes otherth the delivery of stores. such costs may be distributed by

ost accounting or by any other equitable method.

6. A. stments to Stores accountPe bdically orat the end 61 the fiscal year,it y bed necessary to adjust the Storesacc nt, after proper administrative reviewand ti. proval, coweasons anditril the mannerUsc ed*below.

a: D repancies:lletween th7* quantity ofite s as shown on the individual stockrecp cis AtAlItheyetual physicalfo nt of

I

r

it

'Odolipdisc in the ware se ma'' jetit

$1 11.°5 01 ilie

rpaillteiipcc .of pe teal e to

,Tecor(iss, ;Such dis cruces 'tug be

sit!d. on the. inkiclui stock records;,

iesuit. ,a,d"ebit (lipease) or

1')0 ciedji (4creasc) the talue of the Stotts1/ ;

accotylt,:

rtIcesi 'nty httsva1s

bi;ice of th Stor0 account au the,4

'of' merliziO,i,se lethid,. as

on the in(li 4istcles rcords,

from t ethotibf emu

ploye.d fustments or rtisi

result a debiti

crease ar credit.

(decrease) to the value of, the Stores',

account.

Periodicaty, stock b removed from',

the nrehouse because

obsolescence, and the like. Either the

regular warehouse reqUisition (I)1 a special

form' may be Ise& This form shoui(be

Ipproyed by, someone with authority to

aitholze the dispositiolof such merchan

dise. Vitt of de lock removed should

be charged to a stiblcoati under Stores,

to be included in other costs of.oyerheld

for future to exppdituft

accounts:Individual stock records should

be adjusted to reflect the issues.

1

The inclusion of general ledger accounting in. this manual is not to be construed' as a requirementthat such accounting be employed by school districts or that Otheraccounting. methods and

ocedures no* in force be Modified. It is, .howeverijecoMmended that general ledger accountinggeed: .Such a ,system will provide the.; data and controls needed for efficient adminiStration. The

pro dtires :recommended are fully in harmony with the law and the requirements of the CaliforniaStsat Department of Education with respectto budgeting; acc untirig, and re ctortingl: This' treatment of general ledger accounting was prep ed especially for accounting by schOoldistricts; but with the eieptiOn of a few prttions, it is ap cable to the accounting of most county

school. funds. .,

.

Pam, .VI,

'.G.ehera) arict. SubsidiaryLedger. AccovAtirig. "-

11''.

. ,

Definition ofsGeneril Ledger Accounting o

A general ledger is a batiegrouP of accounts in width are recorded in Surnthary or iri detail alltransactions of a fund, 14a6h fUnd should have its own records; including a .selfbalaricing generalledger and subsidiary ledgers .as needed, regardlesS of how small or, biief such ledgers may be ThisshoUld not be construed, as necessitating separate binders for looseleaf ledger PageS or separate traysfor machine-posted ledger sheets; the. Qhysical separation achievecfby division leaves or guides issuffkient if the self-balancing principle is mainfainedl for each portion., .

.0 , --'.c_ . General and Sulpidiary Ledgers

Ledgers are comprised of accourits..)kn account is .a dqvice;ustrally a separate, page, sheet, or cardt

for the accumulation of debit and credit postings and the determinatiOn of the excess of debits orcredits, known as the debit or credit balance, respectively. AecoUhts usually provide for thecolumnar showing Of. dateand posting reference and often for'scnne description of each posting.Accounts usually have,separate columns for debits, credits; and balances. "..:

f All accounts may be carried in a single ledger. Proof of :the accuracy, completeness, and balancecondition of accounting can be achieved by trial balance, which should be taken frequentlyat leastlimonthly. 'Ot er means Of. Verifying account balances should utilized regularly.be utilizeregularly. For example, the'balance of he account, Cash in County Treasury, khould be 'reconciled with the records of thecounty superintendent of schoOls Or of the county auditor on a regular, perio7lic basis. (The countytreasurer's. records normallY9.shoW;,..a larger_ balance, the differencerepresenting warrants not yethonored by him.) The account, Revolving .Cash Fund, can bOreriSed by making a count of cash andreceipts for disbursenients. Citheracounts are susceptible tcilAiofs aVvarious kinds. These checks .or proofs should be employed regularly. , ,

Most of the accounts .named'here are likely to be needed, by most schOEg.distiists. -However,certain accounts may be found to be of liftl'R :use to some small schoql districts': On the other hand,there are specific divisionbf certain accounts that will be found useful in the large, city schooldistricts. As an example, large districts employ workmen for maihtenance, alteration, and minorcoriStrtietion.work. Proper accouraingitif bor and terial =1.9r:job.a.younts and work orders eachfiseal.,Year requires the use of a Work 'ii} Process account or S.

rly named account, the accounting

for which should bek

e on the eticumbrande, basis. f'Zf

Pi ; j'6.14''SI.'

If the accounts in a ledger become to numerous, it is more difficult to apply the trial balanceproof. Accounts of a similar nature are removed to a subsidiary ledger with'substitutron of a singlecontrolling account in the General Ledger. Only two subsidiary ledgers with controlling accounts,,:are explained in detail in this manaal. Other examples of controlling accounts for which subsidiaryledgers (or supporting detail of a comparable nature) should be maintained include the following:Accounts Receivable,Invek.rments, Stores, Prepaid Expense, Fixed Assets (four kinds of property),

'Current Liabilities, and Reserve for Encumbrances. 'Accounts pertaining to income .may?be maintained in the General Ledger. Analyiis by source

should parallel generally the pattern of the school district budget form, which is furnished-by theDepartment of Education for use in' California public schools, using an account for each source.A

Olkibsidiary ledger iis often found desirable. Each account should contain two partsactually two_ ...)accounts. The first part, -requiring a small portion of the form, should .be employedfor estimatedincome only. The second, part, occupying the larger portion of the form, should be employed fori-actual incomeoHlr.The arn6unt by which estimated 'income balance (debit) exceeds the actual

ìncome balance (accurn4lated credits for the year to dvate).rwresents unrealized income; that is, the.antiti a ed amount for the remainder of the fiscal year. Actual income in excess of estimated

I ,inco ignifies an underestimate. Information accumulated in the income ledger accounts and inreports prepared from these accounts is of vital inil)ortance in administration. It deserves closeattenjiori month by month and year by . yea,. The 'two portions .of the several income ledgeraccounts arece\fitrolled by General Ledger accounts, Estimated Income andincome.

Accounts pertaining to appropriations and expenditures may be maintained in the GeneralLed er . only. Hotwever, the reruired classes of expenditure,' yv' ithout cOr5sideration of tfierecommended subordinate classes, are sufficiently numerous to justify the 6.stablishment. of asubsidiary ledger. Furthermore, the statutory requirement for appropriation control Of expenditureis facilitated by use of a special form which is not suitable for General Ledger accounts. Thissubsidiary ledger is usually called An AppropriytfonLedger. Its accmints, as in the case of theIncome Ledger, contain a minimum of two palls, a small portion for appropriation (credit) and alarger rors;on for expenditures (debit), Expenditures are'liniiie3 by appropriattons, by law .witrirespect t thr. rtnjor ringcrq i.f hnd qtanciard practice with respect to glibrildinatemolasses.

Expenditures are classified in two ways within the subsidiary ledger: in detail byprogram and insummary by object of expenditure. F,,r example, instructional supplies would be pOsted to eachusing program, then subtotaled to the object account for control. The total of all of. the objectaccounts (or thus the detailed prdgrams) would support the subsidiary entry in the General Ledger.

Every proposed expenditure should he compared with the unencumbered balance (appropriationminus expenditures and encumbrances) of the proPeleAccount to determineyhethel the balance isadequate. Expenditures include 'Fro/t only those items for which payments have been made but alsothose that have becdn* current liabilities. Regardless of the exact plan of accounting, there oftenare appreciable delays between the time that goods or services are received and the time that theexpenditure posting is made. Furthermore, theintdrval between authorization and consummationof an expenditure may be even greater. For these reasons, recognition must be given to alloutstanding commitments against each appropriation account when cons ring expenditures. Thisis accomplished fairly easily and satisfactorily by informal methods in tofatively small `districts. Inlarge school districts, the encumbrance accounting method Is generally used so that each proposedexpenditure is compared With the un urgivred 'balance (appropriation minus expendiSkes dencumbrances.) The Appropriation. Ledg r accounts are controlled by General Ledger accountdesignated as Appropriations, Expenditur , and Encumbrances. respectively.

Transfers for tuition and the like' are not classed as expenditures in the strict meaning of the -terra however. Nnsfes should he accounted for in the Appropriation Ledger. Appropriation for

VI- 2irr)

t. 4;t

N Contingencies ds an appropriation that sho d be carried in the Appropriation Ledges} although no?

.. ."

expenditures should ever be chargesUar that category. General Resefve should be a General Ledgeraccount only. Stores is a General Ledgfr account. ,Z__

1

Appropriation control is not necessarily maintained for all of the subordMate accounts for whichexpenditure analysis is desired. .

It sbhould be recognized that the accounting ofIncotnetand of expenditures, as currently .pra cticedin Most distriCts, is on a cash basis during most of each fiscal year. At the close of each fiscal year,

Ification of a cap record is requir by, theV4ntry of current-d-liatnies, which representexpenditures incurred during the fiscal ar. Sithilarly, at the, end of the year, entry of accpunts .jreceivable, which represent income aecru5d. durin the fiscal year, is required. It should be notedthat not all income that has theoretically ac ed is required to be entered as receivable. 'For ,

'exarnple, taxes levied but uncollected are not required td be set 3/41p as receivable for the fveparation''of state reports. Sinc?-a considerableFtart of the accounting istpry nearly on a cash basis and since /-the yeas -end modifications do not constitute the full accrual of 'certain income, the term modified 4cash basis may be employed as descriptive of school accounting practices as currently authoiizect.

Standard commercial forms including those for both general and subsidiary ledgers as welt asspecialized forms such as those for the Appropriation Ledger are suitable in many cases for eithermanually br machine-posted accounts.

N General Ledger Accounts -N4sk

All General Ledger accounts,commonly required for public school a counting are listed here in thefollowing Chart of Accounts. While all of ihese .accounts are pertinent to the General-Fund, ,,theyalso may be applicable to the veral other funds which a district ay maintain. Brief explanatiort

_ concerning the use of the ounts are given in each case, and in 'so e cases comments regarding thesignificance of debit or'credit b ances of such accounts-are also inclu ed.

Certain accounts, such as Re lying Cash Fund, Cash Collections Awaiting Deposit, Invest-mend,Accounts ReceivableStores and Prepaid ,14/The rises:are provided especially for use by large ,st:honidistricts and may h 0 ti)itteri by flictricts if thy are mit neerieri

11.Chart f A ef:otirlry

c

Assets / If0,.

..2110 Cash in County Treasury !9120 Cash in Bank(s) (Education Code sections/35314: -5213, 52704, or 39892 only)9130 Revolving Cash Flied (Education Code se tions 428-Gi0 -- 42806, 42810,

, .42820, and 42821)

to

91110 Cash ollections Awaiting Deposit (Education C sections 41001-41d21)9150 Inv ments at Cost (EducAtion Code Section 41615) .9160 Accounts Receiv le '9(170 Due from Other unds I '9210 St s

9220 Pre aid Ex nses

9300 Ot er Current Assets

i.

9310 Assets Frozen i .* 11..

9400 Fixedksets / ILiabilities

9510 Accounts;Payaiile (Current Liabilities) , -

9520 Due to Other Funds .. .

9530 Temporary Loans9540 Deferred Income

,

:.

?!

balanceDr

Dr

. DrDrDrDrDrDrDr .',"DrDrDr

CrCrCr

Cr

-1e) 3 -7-

-(=

V1-3

sig i t,a s

Reserves 4i

. ss , 1./ .ar

9610 Reserve for Working Capital . . . ...... ..... . Cr. ,, ' oft/ ,9620 - Reserve for Encumbrances / 1 Cr

9630 General Reserve le9690 . : Investment in Fixed Assets . .. . . . .... : . .. . -.). ..... .. . .,.

, tCrCr,

1

,...4.,;. Fund balances I . ' s r 1

9710 Unappropriated kund Balanice :I.:, .7:: ,. . ...... J. ..... / . . . . .

,-

ce,

Budgetary and control 4coountsg ,

.9810 Estimated Income , .,N. Dr '

9820 . Appropriations CrDr

9840 me . Cr9850 Expenditures e Dr

IVonoperating accounts9910 &Suspense Clearing '. , Dr Cr,

9830 cumbrwices

I

Definitions of, and explanatory notes about, the accou ts lis4ted in the Chart of Accounts follow:

9000 issets,-Liabilities, and Fund Balances

'9160 Cash, Investments, and Receivables 7 .

94 1-0 Cash in county .Treasury. Beginning cash b/lanCe, pits all monies deposited in"the county treasury lest disbursements. Included herein are all amounts addedor deducted at the county level.

9120 Cash iBank(s) (Applicable to General 1511.1-nd and/or other funds). Indic

A

(1.-4

4

edbalan es i separate blrik accounts foiAdult Education Incidental, Scholar-ships Loansy, School rarm acco ts, and Cafeteria accounts if maintainedby the district (Education Code (ections 15314, 52613, 52704, and-'39892).

'sl430 Revolving Cash Fund. (1) A recording of the establishment and maintenanceof a cash fund for the use of the chief accounting officer or olihgrdesignatedofficial of the district in accordance with Education Code sections42860-42806, 42810, 42820, and 42821. This fund similar in use andcontrol to accounts known as Petty Cash. Once thi ?t. tp4 is established, itshould be carried indefinitely in the General Ledger akld shown in all balancesheets...and budgets until abolished. The amount rcorded will 'vary onlythrough increase or decrease iiffrthe total amount ap oved for the fund. Itshould be noted that the Revolving Cash Fund is a reservation of cash withinan already established schtidig fund and is not to be considered or accountedfor as It separate fund or entity. (2) A sum of money, either in the Arm ofcurrency or a speciall3ank 'account, set aside for the piii-pbsd-df making changeor immediate payments of small amounts., The invoices for*theise payments areaccumulated and the furtd is reimbursed from diAtrict funds, thus maintainingthe fund atothe predetermined amcunt

9140 Cash Collections Awaiting Dep6s Receipts not yet deposited in tie county;treasury. This account also irr4ides any monies in bank clearing atcou:psawaiting deposit in the county tr asury (Education Code Section 41017).

9150 Investments. Setturities issued y- the United States Government ,in wtichmoney is invested. Invlstments are to Nbecarried on books at cost (EducationCode Section 41015).

4P.14

4

0,4

1).

, 4L (

V3.

.

1'4111.

.1t! I

:es--9160 AcoUnts.Receivable. Ainounts.thie from private iersoris; firins, corporatiitilS; .

or governmental, agencieS. Accouks receivable shall be limited to auditable.amounts (usually based upon con,tractual agreements), to amounts billed ,bUtnot received, and, upon provisions)of law, to amounts iviiiCh-lvere 'earned. bythe 9iose of theTcal year and which might hairelieenjeceived and (101,44tscls-'in the couAty treasury by that date except for the lack of ;time,for. setfterno-rit.

9170 Due from Other Funds. Amounts due frorftOthe funds of the dist:rig.

9200 Stores, Inventories, and Prepaid Expenses 4;,1)-40.9210 Stores. Amounts of materials, supplies, and possibly certain egoipmenikeptlii

a central warehouse and not yet charged to "expenditures (see littrt V of .this ,amanual).

9220 Prepaid Expe'nses. Amounts of payments mack,inadvan"ce Of -.the receipt and.r utilization of services. Prepaid insurance pre 'urns are illustiative. That. portion of the premium paid in adv.ance for cove ge beyond the cUrrent,fiical, ,

year is charged to Prepaid Expenses. Adjustments' ;to` ti is accouni in. the .' ..'...'ftsucceeding' fiscal years apportion the premium over the period 'cover& :

9319 Other Current Assets. Assets that are available br can be adce Lead" lt ayill" a.bleo.tip.meet the cost 'of operations or to pay Current liabilities. ..,. . ,i.- .,,i,

.

9310 'Assets Frozen. Funds withheld with -certain legal: rkuireritents are.met (e.g., ..4, ... .. 4 -.. 1 0 ;funds withheld under provisions of Education Code Section.,4137.2). '.

9400 Fixed Assets. Assets of a p t°rnar4et character having continuit.*:atLie (e.g.,buildings, machinery,' furnittir64 and other equipMent). The Ater Ri 'cap:ff-al' assets issometimes wed in the same sense. hilt fiYerl acsoc, rrefel'ed94109420943094'10

Landfinprorernrnt C./fry

BvildingsEquipp7A7/(Refer to object cl:ISSification (.m0 for definitions of :Thome, faccounts.)

9450 Woi k in Frngress An asset representing the value of partially completed 4.forkA:

9500 Liabilities. Legal obligations, exclusive- of encumbrances, that are unpaid.1/4

Q510 Accounts Payable (airren't Amounts due to priveeipersons,corporations, or governmental agencies for services renared and- goodsreceived on or before the close of the fiscal year; Do- not include"encumbrarices" i'-'41resented by.. purchase orders or, contracts,.;or portiOnsthereof, for services or goods to be furnished after the Close of the fiScal year.Include salaries' earned but not paid untlil after June 30, amourits owed toother school districts for tuition payments, that portion of conseruc,tioncontracts represented by 'work *lone to the close of the fisCal period, invoices,for materials or equipmentreteived prior to June 30,-gthd so forth. -.

9520 Due to Other Funds. Amounts due to. other funds within the district.9530 Temporary Loans. Short-term obligatio4s represepling amounts. for

short periods of Arne and usually evidenced by notes paya,ble. They 'Mayunsecured or secured by specific revenues, to be collected, such as tax.anticipation notes.

f

VI-5

4111I

.

.9540 Deferted Income. "A liability account formonies received, unearned at a given.

.ak.i date but included, as earned, inincorne subsequent periods.

.9600 Reserves9610 Reserve for Woiling Capital. An account set up to reflect the value of`

Working capital accounts such as Stores, Prepaid Expenses, and Revolving, CashFund. At the beginning of the fiscal .year, this account is credited witil,thesame arhounts set up as debits to-the previously described asset accounts. Atthe close of the year, it is adjusted to reflect the net ,increase of 'decreaseduring the year in these amounts.

9620 Reserve for Encumbrances.' A reserve Akt up out of appropriatiOns. Theencumbrance procedure may be either a memorandum or a foiral,,prOcediire..Under the Memorandum procedure, only one account, ,42.eserve, 'for'Encumbrances, fs...irequiredt During the-year this account is a rpServe. set up mkt,of appropriations. At year-,end the outstanding orders may be recorded as 'areservation of surplus. Under the fo,a1 procedure, a wand account,Encumbrances, is needed. The encurnb,rnce is an offset to the appropriationaccount and may be closed against the account at year-end.

9630 General Reserve. An account hi which the budgeted. reserve-: is recorded,necessary-so that cash may be made avai4re during that period" of the fiscalyear when taxes and state' funds have rrdityetbecorne available.

9690 Investment in Fixed Assets. The book value of fixed assets.

9700 Fund Balance. The difference. between assas -and liabilities..0710 Unappropriated Fund Balance. That portion of a fund balance, that is not

-segregated for specific purposes. All assets-and estimated income available forppropriation are credited to this account. General ReServe, budgeted

appropriations, and other obligations are debited. -Ili& TtV". VP V.' if 111? arcoiliorepresents the unappropriateit fund hstance.

9800 Frudgra.ov and Control ActotintsQR10 Estimated Income All income estimated to accrue during a given period

whether i is all collected during that period or not. This account will be a.., giftarate c ntrol)account i the General Ledger and will include all income

estimated to accrue during tie current fiscal year.. 9820 Appropriations. Authorization granted by the Board to make expenditures-and

4....to incur obligation for specific_purpqses and amounts within a given period.This account reresents the total of the authorizations and is us as a control'

..- account in the eneral. Ledger.... Details are recorded in the subsid4a Appropriations Ledger; as eincumbrances

and expenditures are .made they are charged against appropriations in the-subsidiary AppropritiOns Ledger, leaving as a balance the amount that may-still be encumbered and expended.A portion of thibcurrent fiscal year's appropriation that is not appropriated for

4 any specific purpose but is held subject to intrabudget transfer may be.. 1 recorded in an account titltd-Appropriation for Contingencies. This subsidiary

account will be closed at year-end in the same manne4 as all otherappropriation accounts. This approfiriation is used only for 'emedtencytransactions that were not anticipated in the original bi-idget process.

7 S 031' `,)-`)I.,

e9830 Encumbrances. ,Obligations in the forip of purchase orders, contracts, salaries,

fr other commitments that are chargeable to an appropriation and for which aart of the appropriation is reserved. Eric mbrances are, liquidated when the

obligation is paid or when the actual Hab ty is set up. This control account1

represents the total amount of the appropriatidns that has been earmarked forexpenditure for specified purmes.Details. of encumbrances by classification o account re recorded,in the samesubsidiary Appropriations Ledger in which e penditureis are recorded.

9840 Income. Additions to cash or other cuyrent as ets that do not reduce any other, asset, nor increase any .liability or reserve, nor represent the recovery of an

expenditure. To the extent that the) accounts are kept on an accrual basis, theterm income refers to all income that accrues during a given period whether it

(\\ is collected during the period or, not. This account will be a separate controlacco4nt in the General Ledger.

'9850 Etpenditures. A control account that includes total expenditures by warrantsas well as amounts deducted at the county level. If accounts are maintained onan accrual basis, all chargeS incurred are included. whether paid or not. Foraccounts mXntained on a cash basis", only actual disbursements ate included.Details of expenditures by classification or accounts are recorded in the. ,

subsidiary ApprOpriations Ledger.

990(1" Nonoperating Acrounts

0Q10 Suspense clearing. An account that carries, charges or credlits temporarilypending to,the determination of the proper account or accounts to which theyare to be posted and that may be used for posting of amounts not yet analyzedto decide if they should be income. expenditure. or abatement. Charges thatmust be allocated or prorated may posted in this accnint until stichallocation or proralioncaji be cafeulated. a,:count 7c-1(1 1 1111,Nee

the cloP-; (( the fiscal year and s1t,1,1,-1 l'1;` 41 WOVIt/lk

General Letrgrr Pr (If ,-(jurcs

Certain procedures should hp followed in operii' opri maiht,lie.ing.t (;.,,orql T PdgOr.

Opening the General Ledger

` In opening the General Ledger for the first time, ca,e should be taken to use the proper.accountsand amounts. These are available from either the coll,It'y qiiperintettdent of schools or thecounty auditor.'

Determining Ass' et. Liability, and Unappropriated ruird Bala/Icel./values. One of the first steps inopening the general Ledger is to list each fund's acsetc by title and.amount with the-total. as infollowing example:

Account Ass; it

91109120913091409150

..91609-170

Cash in County TreasbryCash in Bank 0Revolving Cash Fund .500.00

74.17

$100,040 67

C 'ash Collections Awaiting neptisitInvestmentsAccounts ReceivableDue from Other Funds

4. 6

01,597,88

694.39

VI-7

.

A4count921092209310

---., Assets ,

,

Stores'6'''r -Prepaid Expenses '

Assets.Frozen

Total assets

_.

.

-1

i

...1

\--

,- ., .

(

67.47-.$

1,572.38t 0

$104,431.49

A similar list is then made of the fund's liabilities:

Atr Liabilities-. --.

a'

4" ?511° Accounts Payable. ,. $9163.45r. .9520 Due to Other Funds 113.18

Total liabilitiesJ $9,8.76.63

)Now the total liabilities are sub ct d fiorn the total' assets, and the difference is labeledUnappropriated Fund Balanfln this annex:

AccountTotal assets $104,431.49Less: total liabilities 9,876.63 s

9710 Unappropri ied Fund Balance 4 $ 94,54.86

This iliformation is now used to prepare an opening journal entry. This opening entry is usually'made on a form known as a General Journal Entry Form, listing accounts affected and showing inseparate ckelumns the' amounts to be posted later to the General Ledger as debits or credits. Acomplete eile of these-forms, either bound in a book or collected in some other file, makes up theGeneral Journal. ; 3

Preparing the opening General Journal entry. The opening Genera -Journal entry is made asfollows:

J1:

Date Account Debit

7-1-73 9110 Cash in County Treasury $100,042.679130c Revolving Cash Fund ,-- 500.009140 Cash Collections Awaiting Deposit 24.17

..=. 9160 . Accounts Receivable 1,597.889170 Due from Other Funds 694.399220 Prepaid Expenses 1572.389510 Accounts Payable9520 Due to Other Funds9710 Unappropriated Fund Balance

$1P4,431.49,vs344104 ,431 .49

To record assets, liabilities, and unapprceisted fund balance forthe dime as.of July 'IL, 1973

Credit

$ 9,763.45113.18

94,554 86

(01.

-Several points should be noted' as illustrated in the preceding General Journal entry. First, noaccount is opened that is not needed. For example, no amount, is shown in the original list of assetsfor Cash in Bank, Stores, or Investments. Themfdre, no account was opened for anf of these assets.Shout eed arise later in the year for any of these accounts, the account may, be opened at-thattime.

.>V1-8

The second point to note is that the total-of the *bit amounts equals the total of the credit* amounts. This must always be true dl` any journal enhi!r. care exercised at this tri-ne in'ass g the 0

equality of debit and credit totals will rvord difficulty with the General Ledger lateron..Another-point to note is the layout or "form" of the, entry itself. The debit accounts and

amounts are placed to the left, and the credit accounts arld amounts are placed tothe right. This isusual bookkeeping practice. ,

A final point is the description of the entry. This is the explanation of what is being done bymeans of the entry. In the illustration, the explanation shows that this entry cords for the firsttime the assets, liabilities, and unappropriated fund balance of the fund as of 1 1, 1973. Somedescription is always necessary in a General Journal entry. When at a later entries Hare madefrom other sources such as payroll listings, warrant registers, and the like, explanations ai- usualfyunnecessary since the title of the form describeswhat is being done.

Posting the General Ledger. The General Ledger is posted from the General Journal. The termposted means the orderly transcription of the informationtrom one place to another. Each line ofthe journal is posted to the proper ledger account as either a debit, or a credit entry. For exam_ inthe preceding illustration, the first line of the journal entry is "Cash in CountyTreasury. . . $100,042.67" and is posted to the General Ledger sheet or card as follows:

Page 1Account 9110 Cash in County TreasuryDate Reference Debit

7-1-73 J 1 $100,642.67

Credit Balance., Dricr$100,042.67 Dr

Note that the entry is made in the debit column and is also entered in the balance column. In thiscase, the amount of the debit is the same as the balance since there was no previous balance in theaccount. (Had there been such a balance, this entry would have been added to a debit balance orsubtracted from a credit balance and the new balance entered.) Finally, in the last column an entryis made to show that net balance of this account is a debit (DO-balance.

Each line of the jo al entry is similarly posted until the entire opening entry has beencompletely transcribed to the General Ledger. Opening of the General Ledger is now complete. Atthis point a total of -nine General Ledger accounts will be Open with balances the same as shown inthe opening journal entry.

The colunin in,the General Ledger account headed "Reference" is used to show the page or otherreference to the source 6f the entry. In this illustration the entry "J 1" was made to indicate that'information for this entry was obtained from the General Journal (abbreviated as "J") and that it,was found on page 1. Other references will be developed for other posting sources as they arerequired: By this methOd any item in the General Ledger may be traced back to its origin withoutdifficulty.

Recording the Approved BudgetIncome

The approved school district budget form provides information for recording the budget invtheGeneral Ledger.

Determining values to be entered. The information to be entered, is shown in column 3 of thebudget form under the heading of Income.

The income section of the General Fun't1 budget might look like this:

I. INCOME

8100 Federal Income

8110 Maintenance and Operation (Public Law 81-874) $ 2,5008210 NDEA (Public Law 85-'864) 1,000

f

1 0 9V1-9

..r.8500 Combined State and Federal Income 0

8600 State Income8610 Principal Apportionment -Iv ...4

8 11 Basic and Equalization Aid and Supplemental Support 277,528 .

8 16 Educptionatly Handicapped 1,1488620 S cial Purpose Apportionment

8622 Allowance for Traniportation 1 7,500.

8,00 County Income

8800 Local Income8810 District Taxes

8811 Secured Roll 345,8888812 Unsecured Roll . 2,700. ...

8900 Incoming Transfers

8920 Other Tuition 3,000

Total Estimated Income $641,264

Each of the items of estimated income should be accounted for separately so that excess incomeor income deficiencies may be readily seen. This is accomplished by the use of a group of accountsknown as the Income Ledger. C

-The Income Ledger is a subsidiary ledger. The total of the original estimates Satered in this ledgeragrees with the total of the General Ledger controlling account, Estimated Income. The subsidiaryledger (Income Ledger) and the General Ledger ate both posted from the same journal entry.

The original entry of the approved income budget is subject to adjustment latdr if incomeestimates change.

Preparing the journal en try. The General Ledger and subsidiary ledger accounts and the amountsfor each -are listed in the journal entry as a record bf the estimated income, as has been done in thefollowitig example:

J 2:Date Account Debit ) Credit

7-1-73 9810 Estimated Income . $641,264.009710 Unappropriated Fund 8alance $41,264.00

\-fr Account Subsidiary Income Ledger8110 Maintenance and Operation (Public Law 81-874) $ 2,5500.00

8210 Natiorial Defense Education Act (Public La85-864) 1#` 1,000.00

8611 8asic and Equalization Aid and Supplemental Support 277,528.008616 Educationally Handicapped 1,148.008622 Allowance for Transportation 7,500.008811 District Secured Tax Roll 345,888.008812 District Unsecured Tax Roll 2,700 008920 Other Tuition 83,070.00

To record estimated income for the fiscal year 1973-74 as containedin the official approved budget

Several things should be noted about the preceding journal entry. First, this is a General JournR1entry, just like the one used to open the books for the first time. This one, however, also carries theinformation for posting a subsidiary ledger.

I 0

u

Nex note that this entry is referrid, to as simply a journ al. entry, rather than a Ge.nelikJournaf.

entry. usuafpractice. The term general is used only when there is4 possibility of confusion ifit Were omitted.

One should also observe the arrangement Of the journal entry. The General- Ledger amounts arecarried in debi and credit columns,-respectively. Subsidiary ledger amounts are carried to theleft and do not hav the balancing featurerof debits and credits. This simply means thaethe singlppostings to the indi dual Income Ledger accounts represent the breakdown of the total shown inthe Esti aced Income, GeneralLedger account.

Postin the General Ledger. The journal entry for recording the approved budget is posted to ttieGeneral ger in the .same manner as the journal entry that originally opened the books, as hasbeen done in e following examples: 4Account 9810

Date Reference

Estimated Income Pg9c I. , _

Debit Credit ilk Balance Dr/Cr

7-1-73 J 2 . $641,264.00 $641,264.00 Dr

Unappropriated Fund Balaric,c Page 1Account 9710Date Reference Debit Credit Balance Dr/Cr

,7-1-73, J 1 4,554.$6 $ 94,554.86 Cr

J2 64 ,264.00 735,818.86 Cr

Note that in the Unappropriated Fund Balance account, this credit is added to the credit balanceresultOg from the original opening entry to give a new credit balance of $735,818.86, the total netassets bd estimated income available for appropriation.

Posting .the subsidiary ledger. The subsidiary ledger, in this case the hedger, is postedfrom the' detailed breakdown shown in the journal entry. Each account is posted to show theamounts carried in the journal entry in the "Estimated income" and "Estimated to be received"columns.

ACONIE LEDGER

Account 8811 District Secured Roll Taxes 7j Page 6

Estimated Amounts - Total received Estimated toDate Reference income received ___1_,_ _

to date be received

7-1-73 J 2 $345,888.00 1 $345,888.00

Each Income Ledger account is similarly posted.e

Recording the Approved BudgetExpenditures

Expenditure values, like income values, are taken from column 3 of the expenditures section ofthe official budget form, as has been done in the example that follows:

II. EXPENDITURES AND OTHER OUTGO1000 Certificated S'aries

1100 Teactahrs', Salaries $360,0001200 School Administrators' Salaries 20,0001300 Supervisors' Salaries 14' 25,0001400 Librarians' Salaries 2,0001500 Guidarrce, Welfare, and Attendance Salaries 10,0001600 Physical and, Mental Health Salaries 1,500e

' 2000

it?

3000

4

4000

\ ...1700 S perintendents' Salaries -..

1860 Cher Certificated Salaries of District and County Administrative Offices1900 :Other Certificated Siltries .., ,,,

,...

7$ 10,000

- 5,000.1,000

.Total Cbrtificated Salariesvr NC>

.

$434,500

Classified Salaries , ,

2100 Instrirctional Aides' Salaries 2,0002200 Office of County Superintendent and.istrict Administiative Personnel Silaries .. 3,1002300 Clerical and Other Office Salaries 7,0002400 Maintenance and Qiieration Salaries 36,0002500 Food Services Salarie? 5,0002600 Transportation Salaries 5,0002900 Other Classified Salaries ,

. 500

I Total Classified Salaries $58,600

Employee Benefits3100 State Teachers' Retirement stem Fund3200 Public Employees' Retirement Fund

11,9002,000

3300 Old Age, Survivors, Disability, and Health Insurance 1,500$400 Health and.pelfare Benefits 9003600 Workers'Compensation Insurance 900

Total Employee Benefits. $17,200

Books, Supplies, and Equipment Replacement4100 Textbooks 2,0004200 Other Books 5004300 Instructional Supplies 2,5004500 Other Supplies 8004800 Equipment Replacement 6,000

Total Books, Supplies, and Equipment Replacement $11,800

5000 Contracted Services and Other Operating Expenses510052005300540055005600570058005900

Contracts for Personal Services of Consultants, Lecturers, and OthersTravel and Conference and Other Expense ReimbursedDues and MembershipsInsuranceUtilities and Housekeeping Services 'Contracts, Rents, and LeasesLegal, Election, and Audit Expenses

:-/4"--Other Services and ExpensInterprogram Charges and r dits for Direct'

Total Contracted Service nd Other Operational Expenses

1

..

41. '

,

.' ; ^

..

500300200

1,0005,0004,500

5004,500

0

.$16,500

6000 Sites, Buildings, Books and Media, and New Equipment6100 Sites and Improvemerif of Sites 2,500

6200 Buildings and Improvertnent of Buildings 22500-6300 Books and Media for New or Expanded Libraries 1,5006400 Equip...tent 7,800

Total Capital Outlay $34,300'

-

,-

7000 --Othet Outgo7200 Outgoing Tuition

t. I..we

is,$ 1:1,50.0

ti 7900 Appropriation'for Contingencies , 170130

Total Other Outgo ,e, 142,6b0

TOTAL BUDGET. ' . ,4 $615,400.

(

As with income, each of the expenditure' items should be accounted for separately so thatexpenditures may be controlled within the various budget classifications. This is accomplished byuse of a subsidiary ledger usually known as the Appropriation Ledger. While 4parate accountsshould be maintained for each of the require'd expenditure classifications,. additional subdivisions oftheselclasses.may be maintained as separate accounts if needed.

Preparing the journal entry. This budgeted expenditure total of $615,400 totals the appropria-tion to the district's programs; the programs provide a classification of 6xpenditure usage while theobjects provide cl sification of expenditure source.

This procedu shown in the following example:

Date Account

7-1-73 9710 Unappropriated Fund Balance9820 Apprcipriations

Debit

$615,400.00

Credit

i615,400.00

. Account' Subsidiary Appropriation Ledger1100 Teachers' Salaries $360,600

11200' School Administrators' Salaries 20,0001300 Supervisors' S,alarlas

V 25,0001400 Librarians' Silaries ; 2,0001500 Guidance, Welfare, and Attendance Salaries 10,000

1600 Physical and Mental Health Salaries 1,5001700 Superintendents' Salaries 10,000

1800 Other Certificated Salaries of District and Countyg il

Adminisfrafiv e Offices 5,0001900 Other Certificated 'Salaries .

1,0002100 Instructional Alps' Salaries 2,0002200 Office of County Superintendent and District Administrativse

Personnel Salaries 3,6002300 Clerical and Other Office Salaries t 7,0002400 Maintenance and Operation Salaries 36,0002500 Food Services Salaries 5,0002600 Transpotatiorr±..Salaries 5,0002900 Other Classified Salaries 5003100 State Teachers' Retirement System Fund 11,9003200 Public Erriployees' Retirement Fund 2,0003300 011:1-Age, Survivors, Disability, and Health Insurance 1,5003400 Health and Welfare Benefits 9003600 Workers' Compensation Insurance .9,00

4100 Textbooks 4/ 2,0004200 Other Books 5004300 Instructional. Materials and'Supplies 2,5004500 Other Supplies . 8004800 Equipment Replacement 6,0005100 Contracts'for Personal Services of ConVants, Lecturers,

and OthersE.

5005200 Travel anti Conference Expense Reimbursed 300

c8-77995

113,

-

V1-13

5300 Dues and, Memberships.* $ 2005400 Insurance 1,0005500 Utift'tles and Housekeeping Services 5,0005600 Contrafts, Rents, and Leases 4,50057Q0 Legal, ElectiOn, and Audit Expenses 5005800 Other Services and Expense 44,5005900 Interprogram Charges and Credits for Direct Services 0-6100 Sites and Improvement of Sites 2,5006200 tiarldi-ngs<and Improvement of Buildings 22,5006300 t-N Books and Media for New or Expanded Libraries 1,5006400 Equipment 7,8007200 Outgoing Tuition 30,5007900 Appropriation for ContingeOies 12,000

The preceding journal entry is similar to the one rewding estimated income except that the totalof appropriations isidebited to the Unappropriated Fund Balance account. The total appropriationsto all accounts in the Appropriation Ledger must agree with the batoce in the General Ledgercontrolling account, Appropriations.

Posting the General Ledger,. The journal entry for recording ,the approved appropriationOisposted to the General. Ledger.'in the same manner as the original opening entry and thetentry,recording estimated income, as has been done in these examples:

Account 9710Date Reference

7-1-73 J 1

J 2J 3f

Acco-unt 9820

Unappropriated Fund Balance Pagel

Debit Credit Balance Dr /9

CrCrCr

Page 1

$ 94,554.86a 641t4.00

$615,400:00

Appropriations

$ 94,55486735,818.86120,418.86

Date' Reference Debit Credit Balance Dr/Cr7-1-73 J 3 $615,400.0 $615,400.00 Cr

Note that the debit io the Unappropriated Fund Balance account has been subtracted from theprevious credit balance to produce a new credit balance of $120,4113.86, the remainingunappropriated fund balance after the estimated' income and budgeted appropriations have been.posted.

Posting the Appropriation Ledger. The subsidiary Appropriation Ledger is posted from thejournal entry in a manner similai to that used for posting estimated income as shown in thisexample:

Acc'ount 1100

APPROPRIATION LEDGERTeachers' Salaries Page 1

IUnenaorn-

Refer- Appropri Encurn- EnCumbered , Expended ,bered,Date ence ation brances to date Expended , to date balance

7,1-73 J 1 $360,000.00 $360,40.00 .

V1-14 .

,

The preceding lilbrm differs from the Incothe Ledger form because it must carry space for enteringencumbrances as 'they -Occur; as well as expenditures. The amount appropriated for this accopt hasbeen entered ift the "Abpropriation".cblumn and again in the "tinencumbered balance" colikn.arplounts are later entered the "Encumbrance" or ',Èxpenditure" columns, the "Unencumberedbalance" column will be adjustedaccordingly -

When aepropriations are illocat d to programs, each of the program ledger cards is posted withits respective appropriation. An xample of a possible program ledger card is displayed_ in theillustration on page VI.716.._ cr,

It Should be noted that the appropriation to a program is a collection of portions of single objectsor expenditure (such as teachers'- salaries) that are controlled wMh the Appropriation Ledgeijheprogram aKropriatio'n iS.the ,cztal of all of the direct expenses expected to be incurred on beat' ofthe progra

Because the Appropriation Ledger ontrols expenses by objects, it is not essential that expensesalso be controlled by program when district records expenditures by site (or location). Control ofprogram expenses can be' delegated to the principals. (Or site managers) within the limits of fixedobject appropriations. For example, if a given school (site) is budgeted $75,000 in instructionalsupplies, this amount will provide district control on the site on this object. The site May allocatethis $75,000 to its several programs, and the district may record these allocations as part of theappropriations to the site's programs. Districts using manual or bookkeeping machine systems neednot control the amount of instructional' supplies appropriated for a particular program because theywill be able to control the total appropriation to the site.

If the district controls only on objects, then the ,principal or site manager will have to comparethe program reports to the,program. budgets to observe discrepancies in an object of any particularprogram. I

Recording the Approved BudgetReservek

Reserves are portions of the balance remaining as unappropriated funds that are not available forappropriations, such as amounts in the Revolving Fund, Stores, and Prepaid Expense accounts. AGeneral Reserve account is recommended to help finance the district in the year following, prior toreceipt of that year's income.

The values to be set asis:: in these reserves are contained in the official budgeti column 2,opposite Ending Balance. These are used to prepare the journal entry, as in this example:

....Date Account Debit Credit

7-1-73 9710 Unappropriated Fund Balance $120,419.009610 Reserve for Working Capital $ 2,072.009630 General Reserve 118,347.00.

To record reserves for Working Capital and General Reserve, fiscalyear 1973-74, as contained iri the approved budget "

This journal entry' -is then posted to the General Ledger in the usual manner:

Account 9710 Unappropriated Fund Balance Page 1

Date Reference ,,Debit Credit Balance Dr/Cr

7-1-7,3 J 1 to 94,554.86 $ 94,554.86 CrJ 2 . 641,264.00 735,818.86 CrJ 3 $615,400.00 120,418.86 CrJ 4 120,419.00 0.14 Dr

V1-15

,,Account:

0 '

PROGRAM LEDGER

Program A

1\

Page

Appropriation: $32,000.00

Bboks, sup- Contracted

Encumbrances Certificated Classified plies and services Direct

Refer-,

salaries and salaries and equipment and Capital Available support'

Date ence Description Reserved Cancelled benefits bdiefits replacement other outlay b'alance charges

7.1-73 J 3 Budget appropri (Optional) $32,700 $4,000 $2,500 $1,500 $1,040 $32,000 $1,600

ation (maY be

memorandum only)

7.31-73 PJ July payroll.; 1,800 30,200

teachers', salaries

118

11'

C

4

Account 9610.p.

Okeserve'fdr Working Capital Page 1

Date i

7 -1-73

Reference

J4

ACcount 9630*Date Reference Debit

7 -1 -73' J4

Debit k Credit

2,072.00

General ReserveCredit

et $118,i47.00

Note that the amount .ebite to the Una Orothan the previous balance of that account, \ adiscrepancies are likely to occur because theincluding cents, while the officiaLbudget form

At this point the General Ledler has been opetrial balance will show the n't results of the entriei.made thus far.. The trial balance is a list of theGenerral Ledger accounts and the debit or credit p.alance for each aceotint,The total debits -and thetotal credits must be equal, indicating a balanced ticneral Ledger. The trial balance of the GeneralLedger at this point looks like this: t:

Balance Dr/Cr

$ 2,072.00 Cr

V

Page 1

Balance Dr/C;

$118,347.00 Cr

priated Fund Balance account is slightly greaters results_ in a debit balance of 14 cents. Small

tri is books are maintained in exact amounts,de out to the nearest do114r only.

and the official budget has been recordedAA

Acc9\unt

91169130

,

fp,

Cash in County TrepsitryRevolving Cash FuOd

Debit

$100,042.67500.00

Credit

9140 Cash Collections AWaiting Deposit 24.179160 Accounts Receivable 1,597.889170 Due from Other Funds 694.399220 Prepaid Expenses -.ado, 1,572.389510 Accounts Payable .$ 9,763.459520 Due to Other Funds 113.189610 Reserve for Working Capital 2;072.009630 General Reserve 118,347.009710 Unappropriated Fund Balance . 0.149810 Eitimated Income Y. 641,264.00 f,9820 Appropriations 615,400.00

$745,695.63' $745,695.63

The appropriatiOns; having been gp ted both to the program ledge* and to the subsidiaryappropriation ledgers (objects of ekpenclIture), should be,,checAed to assure that the two are equal.

'Recording EnCumbrarzes 4.1%.

Effective expenditure control re uires not only the recording of cash - expenditures and thecharging off of assets and prepaid expenses but also the recognizing of expense obligations.

Encumbrance procedures that serve to reserve or restrict portions of the budget appropriations ofthe district for which definite commitments or contractual obligations have been made may beincorporated into the accounting system of a school district.

The method of deterinining amounts of encumbrances to 1?e entered into the accounts may varywith the accounting methods used in thedistrict and with the type of transactions beingencumbered.

ti:/

C rtificated Payroll Encumbrance 6 inary

,

.

. i.°.

,

,.

,

Clatfication: 1100 ".t I 1200 p 1300 ?. "''' t .1700 , . .

. ;'

Name , , Months, Year Month Year 4 ,R' Year Month :Year,* Totals,1000

Superintendent a '.,

0 , ,

Bartlett, James , A1;050 112,600.00 $ 12,600.00,

Assista'nt Syperilende t 1 ..../. ,

1

Garcia, Fred ...... ,.- 750,00 9,000.00' , ,coo,r.0o

Principals ,,

';'''' ,/6ampbell, George ' c $ 500.00, $ 6,000.00 1'

' , ., ,t);.., .

6,000.00

Harmon, Robert ( 500.00 6,000.00 , /I 6,000,0Hotzel, Frank t00.00 6,000.00 , 6,,b0 ,00

,

Lawrence, Charles , 500.00 C,000,00 , , 6,0 00

,Supervisors .

Evans,' Raymond . . , ,i v. $' 450.00, $ 5,409,00 ( 5,400,00

Johnson, Arthur 500,00 6,000.00 , 6,000.00

'. Pont, ilizleth,/

430501 4,800,00 4,800.00,

Sorenson, Albert r' .00 4,200.00 4,200.00

wade, Johnson 300.00 3,600.00 3:60.0d

Teachers

Alter, Ruth $ 350.00 $ 4,200.00 x..) 4,200.00

1.

nr

Bennett, Betty ° 350.00 4,200.00 , 4,200.00

Curren, Patricia 375.00 4,500.00

;4 5061' .00

Total encumbered 30,000.00 360,000.00 2,000,00 l 24!000.00 2,000.00 24,000.00 1,800.04 21,600,00 429,600,00

7.15.73

Bennett, Betty

resignation 3502 4,200.00 4,200.00

Totals -,, 29,6540 355,800.00 2,000.00 24,000,00 2,00Q,00 24,000.90 1,800.00 21,600.00 425,400.00

7.20.73

Thompson,

4

Ted 450.00 5,400.00 7 5,400.00-

Totals $30,100.00 $361,200.00 $2,000.00 $24,000.00 $2,000.00 $24,000.0 $1,800,00 $21,600.00 $430,800.00

- . % ° -5,..; 4'1, . .' ''''-' ,,"1114* .. - --,..,

s , ; VF * .4 . .. ,. 1. 71,_.

0. b. fr , .,1,..,, - : . "3` ! ..

r,.._ , ,,-- ...

1.: ....b, -r ..4 .P.

4 4,1f.,,', (

-... .

f-"°/ecaue districts ncay. need "to distinguish reReqation,s ex- restrigtions of apprd'priation from'. 1 , .actual expenditures, it isreconlritbndedthat Encumbrandes and Rerve for Encumbrances' accountsbe used in. the Gtheral LediOi\iiiitl,-that encumbrance amounts in the 'apbrdpriations sub4idialy

4 accounts and the. program leNers be recorded in a separge ' alumn or in' such a_ manner that. they -,

may be distinguished from actUal:expenditures ,,

_. ;, , .

: ,.

Encumbering prograths is ciption since ol;jects may be encumbered and controlled. Districts.,..- with makial and bookkeepinglmachme 'systems that break costs dOwn* by. sites (or locations) will

find encumbe'rna-programs rather difficult-whereas. districts with data-processing ectili.ement will beable to encumber programs-at the sametime they encumber their appropriation 1,gdgefirbis of'expenditure. i,,,:

,.,.. .

Encumbering of salaries. At the beginning of each year, the total annual salafi.; es Of personnel,employed for that yeai- may be determined for purpo s of appropriations for paying,these salaries during the year. Similarly, the total monthly salaries of these peonnel should beobtained, for the purpose of removing that amount of encumbrance when a monthly salary paymentis made. Totals of the annual and monthly salarieS must be adju§ted for personnel changes and .-

salary rate changes.: .

Although the salary encumbrance summary may differ in detail depending on the methods ofaccounting -used by the -district, a schedule such as that illustrated in the Certificated PayrollEnbum ranee Summary on pOge V1-1 8 may adequately serve this purpose. -Basic requireniefits are acomplet accounting for all personnel having salaries to be encumbered, a groupin of these salariesto. prov e monthly and annual salary totals by budget classifications, and provision efor recordingchanges i personnel and salaries.

The C rtificated Payroll Encumbrance Summary illustrates the adjustment in encumbrance totalsthat must be recognized when personnel changes occur. \

Journal entries to record the salary encumbrance transactions shown in the.t rtificated pa y rollEncumbrance Summary are as follows:

J 12:Date ACcount st Debit Credit

7-1-73

r

Account

9830 Encumbrances9620 Reserve for Encumbrances

Appropriation Ledger

$429,600.00 .$429,6130.00

1100 Teachers' Salaries * $360,000:0012014 School 'Administrators Salaries 24,000.001300: Supervisors' Salaries 24,000.001700 ..Superintendents' Salaries -, 21,600.00

.To record salary encumbrance for certificated staff employed 7-1.73 ,

J13:7-15-73 9620" Reserve for Eiicumbrances

9830 Encumbcances

scount e Appropriation Ledger41,100 Teachers' Salaries

..

$4,200.00$4,200.00.

$4,200.00 (

To cancel 12 frlonths' salary encumbrange for' B: Bennett, resignation, 7-16-73

J 14:7-20-73 .9830 Encumbrances

9620 Reserve for Encumbrances,

121

$5,400.06

r

$5,400 00 .

VI-19

1100Approprietion Ledger ,

Teachers' Salaries $5,400.00To establish salary encumbrance for 12 months' payment of T..Thompson,

employed-7-20/73

oThe posting of the preceding entries to the General Ledger is as follows:

Account 9830 EncumbranceS Page 4

Date Reference Debit Credit Balance

7-1-73 J 12 $429,600.00 $429,600.007-15-73 J 13 $4,200.00 425,400.007-20-73 - J 14 5,400.00 430,800.00

Account 9620 Reserve for. EncumbrancesDate Reference Debit ,

,

, Credit c.. . kalance Dr/Cr

7-1-73 J 12 ''' $4,29,600.00 \ $429,600.00 Cr'. ..7:15-73 J 13 $4,200.00 425,400.00 Cr7-20-73 J 14 -5,400,00 430,800.00 Cr

The posting of the Teachers' Salaries account to the subsidiary Appropriation Ledger is illustratedas follows: .1

Dr/Cr

DrprDr j,

Account 1100

C'APPROPRIATION LEDGER

Teachers' Salaries Page 5

I lnencum-

Date_ .

Reference_ _

Aopropriation

F ncum-trances

F nctimberpd

to dateF x pended

.Expended to datebered

b6lance

7-1-73 J 12 T*500,000.00 T.479,600.00 9'.429,600.00 447CN00.007.15-73 J 13 500,000.00 4,200.00e'. 425,400.00 . 74,600.007 20 73 \ J 14 C00.0o0 Of) 5,400 00 430)100.00 69,200 00

In the foregoing illustreion, it has been assumed that the changes in personnel were made priorto payment of any payroll in that year. It is important, however, that encumbrances be reduced bythe unpaid installments of the annual salaries of personnel leaving the payroll a,i in crea4ed for theunpaid installments of personnel being added to the)Dayroll.

Adjustments' of encumbrances for., salaries paid is discussed in he section, RecordingEncumbrance AdjustmentsSalaries.

Encyinbering of other expenses. Effective° expenditure control requires the establishment of aprocedure to reserve oPrestrict appropriations for obligation of nonsalary types of expenses as wellas salaries.

.

If the purchase orders are drawn in order to confirm orders for all materials and services to bepurchased by the district, they may be used for encumbrance pUrposes. A sample of a purchaseorder is shown on page VI-21.

. The methods of encumbering purchase orders -may vary from the direct ,posting to theAppropriation Ledger subsidiary accounts from the individual purchaik: orders to some form ofsummary recording for groups of purchase orders. When a record of Otte individual purchase orderscontained in a Summary recording is desired. a Purchase Order Enc. Jmbrance Summary such as theOne on page' VI-21 might be used.

aR

,.

PURCHASE ORDER.,

. .

To: Student Supply Company Date:

.A

". Ordered. school

7---From: School

No. 2

July 10, 1973

.

by.

District

Account4300

--weAppropriationLedger

. ..

Deliver to: ,,100 Main Street*

Received Quantity

.

'Unit

,.

Item

.Unitprice

.

Amount

_

Amountcancelled

65

\

1,000100300

ReamGrossBox

Newsprint,#2 school pencils. .

Crayons

$0.603.000.30

.$600.00300.0090.00'

$41.67

$990.00

Payment R7ord: ,

Date: July 20tAmount: $41.67 4

Ftwchase Order Encumbrance Summary . For July, 1973

Vendor's, NameAppropriation

account number Dateri IF chase Orricq

ru irnhorAmount of

Pncumbrance

Justrite Roofing Company 4500 10 1 $ 805.63Student Supply Company 4300 11 2 990.00L.A. Determent Company 4500 26 3 50.00

Total $1,845.63

A journal entry to record the encumbrance information contained in the. summary is illustratedas follows:

.115:Date Account Debit

7 -1 -73 9830 Encumbrances $1845.639620 Reserve for Encumbrances

Credit

$1,845.63

Account Appropriation Ledger4300 Instructional Supplies .

,s.

$990.004500 Other Supplies 855.63

To record purchase order encumbrances for July 1, 1973

VI-21

123

The posting of the Other Expenses of Instruction item to the account, in the subsidiaryAppropria-.tion Ledger is illustrated as follows:

AccOunt 4300

Date Reference

APPROPRIATION LEDGERInstructional Supplies Page 5

Unencum-Appropri- Encum- Encumbered Expended bered

ation sbrances- to date Expended io date balance's

7-1-73 J 15 $5,000.00 $990.00 $990.00 s $4,010.00

The instructions for recording encumbrance adjustments 'in this section outline the proced.ireused to adjust encumbrances when payments are made involving encumbered purchase orders.

--100

Recording Income and Other Cash Receipts -

Source documentsfor postingincome are apportionment notices from the county superintendentof schools for deposits made directly to the county treasury or copies of receipts for moniesreceived directly by the distiict.

1 An apportionment notice from the county superintendent of schools is illustrated in the TypicalApportionment Notice on this page.

Each of the items of actual income should be accounted for separately so that they may becompared with income estimates. This is accomplished by posting receipts to the Income Ledger.The total from any giVen apportionment notice is posted to the General .thclger, and individualitems are posted to the subsidiary Income Ledger.

TYPICAL APPORTIONMENT NOTICE

County of

To geshnnl Dicti

This is to certify that income noted below has been received and has her, t *1" Î;your district on

Date

8611 Basic and Equalization Aid and Supplem tal Support8616 Educatr4ally Handicapped Minors ....8622 Allowances for Transportation8670 Tax Relief Subventions

-8710 . Community College Tuition Tax8811 District Secured Roll Taxes8812 District Unsecured Roll Taxes

Other Income (Describe)

AK

`Preparing the journal entry for income deposits made directly in the county treasury. The journalentry to record income receipts lists the General Ledger and subsidiary ledger accounts and theamounts for each as in the following example:

VI-22 i2 4,

Date Account Debit redit

7-20-73 9110 Cash 'in County Treasury9840 Income

Account Subsidiary Income Ledger OP../ 8811 District Secured Roll Taxes

881 District Unsecured Roll Taxes8611. Basic and Equalization Aid

To re,ord income received on apportionment notice dated 7-20-73

The journal entry is posted to the. General Ledger in the usual manner...,

The subsidiary Income Ledger is posted from the journal entry in a manner similar to that usedfor posting estimated income. Each account is posted to show, in tlie amounts received portion, theamount of the ledgers' that has been carried in the journal entry, as has been done in the followingexample:

INCOME LEDGERAccount 8811 District Secured Roll Taxes Page 6

Estimated. Amounts Total received Estimated toDate' Reference income received to date be received ,.--

crt7-1-73 J 2 e $345,888.00 $345,888.007-20-73 J___

_ ,..

INCOME LEDGER

Account 8812 District I /ns.f.tpred Roll T9v.,,

rstirnatpriDate nnferep,r, 'rwdme

7 1.73 J " ,1f1

7 70 71

Account 8611

Date

7.173

\mountFme OiVel(

"al recei

Page 1

r: stimated tc-

)E rqi:eived

INCOME LEDGER

Basic and Equalization Aid Page 1

Estimated Amounts I otal received Estimated toeference income received to date be received

J 2 $777,528.00 $277,578.00

A summary of receipts issued for cash received directly by the school district serves as the basisfor preparing the journal entry to record this type of income and other cash receipts: Abatements ofexpenditures are treated in Part III of this manual. If this summary is a formal` record, it might looklike this example of a Cash Received Journal:

125VI-23

Cash Received Journal Month of July, 1973

Current income

Date Description Received Accou

Abatements of General Ledgerexpenditures

t Amount ..Account Amount Account Amount

7-3-73 ReceiptsNos. 6801-6815

8110\ 580088428850

8880

430043004300

Totals

Preparing the journal entry to record cash received directly by the school district. The journalentry to record actual income and other cash receipts received directly b the' school district liststhe General Ledger and subsidiary ledger accounts and the amounts for h. For example:

Date Account

7-31-73 9110 Cash in County Treasury9840 Income9850 Expenditures

Account Subsidiary Income Ledger8110 Maintainance and Operation (Public taw

81-874)8842 Sale of Equipment and Si Inntiac8850 Rentals ...... . . ..... ....8871 Adult Education Ferric8880 Miscellaneous . . .

Subsidiary Appropriatin i pricier4300 Instructional Supplies .....

fviervIr tatiort rayirwrItT from Othpr

1

Ditto. icts

Debit Credit

The General Ledger is posted in the usual manner. The subsidiary Income Ledger is posters in rhosame manner as that illustrated 4nder income ilepositq made directly in the county treasury.

The subsidiary Appropriation Ledger iq pocted came Twin rlpy that show!) imdryexpenditures. as in the following example

APPROPRIATION LEDGFRAccount 4300

Refer Encurn I iquidaDate ence brances tions

7-31-73

Instructional Supplies Page 2

Expended

outstanding I inencurnencum F xpenderi heredbrances to date Budget balance A....

.17 ,

Account 5800 .

1

APPROPRIATION LEDGERPayments from Another School District Page 1

Outstanding Unencum- .

Date ence brances 'dons Expended brances . to 'date Jget balance 1.

.... Refer- Encurn-

1.LiqUida- . encum- Expended bered

7-31-73

Recording Expenditures and Other DisburseinentsSalaries

Salary expenditures are generally more efficiently posted by total from the payroll paymentorder, or similarly titled listing, which is an itemizeds detailed list of individual salaries for aparticular payroll. A summary-of amounts to be charged to the various. expenditure classifications isneeded for this procedure (see California School District Payroll Payment Order, page VI-26).

Very rarely, such as when'accounting salaries for a one- or two-teacher school, individual salariespaid might be entered directly in the General Journal.

paring the journal entry. The journal entry to record paYrO1/411 payments lists the GeneralLedger and subsidiary ledger accounts an the amounts for each, as in the following example:

Date Account Debit Credit

7-31-13 9850 Expenditures $40,275:009110 Cash in County Treasury $40,275.00

Accdunt Appropriation Ledger1100 Teachers' Salaries 112,000.001200 School Administrators' Salaries , 1

i 1,600.001300 Supervisors' Salaries ?,000.001600 Physical and Mental Health Salaries 125.001800 Other Certificated Salaries of Dist, if's' Artei;eimr, ',1i,w1 800.002200 District Adminictrative Salaries . . 250.002300 Clerical Salaries

..650 00

?inn Moint-roance and Operation Splaries -"ism% nr.

Y *-* .1"4,1 el 0 Sr r1011.41 ;;;; for pay.e,11 ttttt 'ohne I (1,1 the tr,t 11111 flf he,

Posting the General Ledce,. The journal entry for payroll expenditureq ;I edger in the garfle nnanne, a9 r.,tries. as in the follrlvvit4 exaIrle

it% 411, I .7f`v)(^1111

,

Account 9850 Expenditures \ Page 1

Date Reference Debit Credit _ Balance or/Cr---- . ---7. 31 73 ,I R T All 276 no fp 40 975 00 n,

Account 9110 Cash in CountyTreasuryDate .Reference .2.. Debit Credit

7-1-737-31-73

a 1 $100.042 67J8 $40,275.00

Page 1

Balance Dr/Cr

$100,042.67 Dr59.767 67 nr

Note that the posting to the cash account is a credit entry that deductq .11/1 the rteViellIq halATI reto give a new. debit balance of $59,767.67.

127 VI- 25

California SchO4istrict Payroll Payment Order

Employee name

Warrant

number

4

Occupation oritlitle

Expend'

ture

class

fication

Period

ending

Gross

earnings

Social

Security

Retire-

ment

With-

holding

tax Other

.

.)

Net pay

Abbott, Ellen . , .... 2200 , Teacher i 1100 7.31-73 $ 500.00 . $ 40.00 $ 80.00 $ 21.00 $ 359.00

Adams, George 2201 Custodian 2400 350.00 $ 9.00 21.00 18,00 12.00 290.00

Allen, Rose, 2202 Teacher 1100 475.00 35.00 68,00 16.50 355.50

Arnold, Robert' 2203 Teachers 1'100 ' 550.00 48.00 60.00 25.00 , 417.00

Ashworth, James 2204 Assistant Superintendent 1700 `900.00 70,00 150.00 28.00 652.00

Bailey, John 2205 Teacher 1100 580.00 50.00 75.00 22.50 432.50

Banner, Roger 2206 Principal 1200 750.00 62.00 90.00 26.00 572,00

Boyd, Alice 2207 Secretary 2300 300.00 7.50 16.00 21,00 12.00 243.50

Brown, Thomas 2208 . Teacher 1100 530.00 45.00 61,00 18.00 406.00

Carter, Mabel 2209 Teacher / 1100 500.00 42.00 65.00 24,00 369.00

Cross, Arthur , , 2210. Custodian( 2400 375.00 10.00 22.50 12.00 18.50 312.00

Curran, Jane 2211 Teacher 1100 47,00 38.50 60.00 21.00 355.50

ti

Totals 71143 $6,285.00 $26.50

ExpenditUre Classification Summary: 1100 7.31-73 3,610.00

1200 750.00

1700 900.00

2300 300.00

2400 725.00

$6,285.00

128

$490.00

I

paw $244.50 $4,764.00

129

Posting the Appropriation Ledger. Entries in the subsidiary Appropria n LeaiE. are made in theexpenditure column in each case, as shown in the following example:

APPROPRIATION LEDGERAccount 1110 Teachers' Salaries Page 1

Unencum-Refer- Appropri- Encum- Encumbered . Expended- bered

Date ence ation brances to date Expended . to date balance

7-1-73 , ., $390,000.00 t. . $390,000.00J 5 390,000.00 $390,000.00 $390;000.00 $32,000.00. . -0.00

7-31-73 J 8 399,000.00 .396,000.00 $32,000.00 32,000.00Cr

In normal procedures the liquidation of an amount correspohding to the payment takes place'simultaneously with this posting. The liquidating entry is described in'the section headed Recording 7Encumbrance AdjustrnentsSalaries, following. For purpcles of explanation, this account will becarried this way until the liquidating entry is posted. .,

Note that the "Appropriation," Encumbered-to-date," and "Expended-to-date" Columns arecarried forward with each posting.

Entries in the program ledger are posted by object classifipatiot in the appropriate columns in theprogram -led rs, to subtotaled on the object of expenditure card ir4 the Appropriation Ledger..

The total postings to the program ledgers for the object classification (teachers' salaries) will. amoun $32,000, which can be subtotaled in the Appropriation Ledger. (see sample program

leclg r, page W-16). .

Recording Expenditures and Other DisbursementsOther

Payments to vendors are usually made at regular intervals, monthly oi- oftener; and listed on awarrant register that can be used as the source to enter are total expenditure. Like the payrollcharges, the amounts to -be charged to the various expenditure :classifications will need to besummarized (see Califolnia School District Warrant Register Number l on phe

Other expendiVares, such as a district's retirement payments, repayments on loans, and the like,which ate disburs4d at the county level, may be entered individually as reports are received from theoffice of the county superIntendent of schools. Expenditure transfers between funds of a districtrequire a similar entry. It is possible to include all such items in one listing and to enter the total inthe General Journal with a summary of amounts to be charged to the various expenditure cla'sses. Ineither procedure, reference to, the original report or notice should he made. and cuch dociunentcshould be kept readily available.

Pre. paring the journal entry. The journal entry to record vendor payments or other expenditureitems lists the General Ledger and subsidiary ledger accounts and the amounts for each. This journalentry is posted to the General Ledger and the Appropriation Ledger as illustrated in the entries thatfollow:

Date Account Debit Creditti

7-31-73 9850 Expenditures $6,245.009840 Income 500.009100 Cash

g11

Account Appr cation Ledger4500 Other S ies , $1,620.004100 Textbooks 350.(10

'$6,745.00

130 Vi --27

J4300 Instructional giaterials and Supplies $ 475.005500 Utilities and Housekeeping Services 1,300.006200 New Buildings and Improvement of Buildings

c'2,500.00

Income Ledger :...

8110 Maintenance and Operation (Public Laf1-874)

To record expenditures for Wa Register Number 1 for the month of July

500.00

Warrant Register NUmber 1

. CALIFORNIA SCHOOL DISTRICT

. .

Warrant Expenditurenanber Vendor classificatAin

k

1 Aldrich & Aldrichjnc 43002 American Book Co. 41003 Best Music Company 4300 '4 E.P._finigan Company 620045 Office Supply Co 45006' Pacific Gas & Electric mpany 55007 Pacific Telephone & Tele ph Co 55008 Read's Fence Company 45009 Sun Custodial Supplies 4500

10 Taylor's School Supplies 430011 .U.S. Treasury

(Abatement of income) 8110

Date: July'31, 1973

Amount

$ 48.0q350.00210.00

2,500.0065.00

700.00600.00875.00680.00216.94

'

500.00

Total $46,745.0Q

Expenditure Classification Summary:4100 Textbooks $4 350.004300 Instructional Materials and Supplies 475.00'4500 Other Supplies 1,620.005500 Utilities and Housekeeping Services 1,300.006200 New Buildings and improvement of Buildings

A2,500.00

$6,245.00

Income Classification Summary:8110 Maintenance and Operation (Public Law 81-874)

abatement 500.00500.00

$6,745.06

At,

Posting the Income Ledger. This posting to the subsidiary Income Ledger is an example of anabatement of income.

0

Vi-28

Account 8100

INCOME LEDGER

Maintenance and Operation (Public Law 81=874) Page 1

Date ReferenceEstimated

incomeAmountsreceived

Total receivedto date

Estimated tobe received

7-1-73 J 1 $2,500.00 $2,500.00

7-31-732,500:002,500.00

° $2,400.00 -

500.00 Cr$2,400.00

1,900.00100.00600.00

Recording Encumbrance Adjustments Salaries.

.The amount of encumbrance to be adjusted err liquidated when salary payments are made is the

same amount as is being paid, provided such.amountS have been encumbered. This procedure willleave the proper balance of encumbrance for each succeeding month if there is no change in rate ofpay.

Further adjustment is necessary for chan es of contract, terminations,pand the like. rt is generallypreferable to liquidate the exact amoun of the payroll posting and to pick up additionaladjustments in a separate posting from a t of changes: For example, a payroll expenditure of$40,275 represents the regular monthly 'payroll for salaries encumbered for the year. However,because one employee terminated in July and received less than a full month's salary, the differencebetween the individual amount encumbered, $300, and the amount paid and liquidated, $200,represents a cancellation of $100 to encumbrances for July in addition to the encumbrance for therest of the gear, $3,300, or a total cancellation of encumbrances in the amount of $3,400. Theperson replacing this employee was paid $511 in July and will be paid $2,750 for the rest of the year.This is an additional total encumbrance of $2,800. The net adjustment to encumbrances is areduction of $600. The Certificated Payroll Encumbrance Summary illustrated in this section (seepage VI-18) provides for a method of adjusting salary encumbrances.

N The use of some machine systems makes it more practical to liquidate all encumbrances forsalari es a the time p,ayrbll expenditures are posted and to reencumber the adjusted amounts for the

ofrem d of the year.Preparing the journal entry. The journal entry to record encumbrance adjustments lists the

leriger accnIni and the qtvlolintc for each. ac chown in the InllowingGeneral Ledger and subsidiary I I

example

Date Account Debit CrPrtif

7-31.73 9620 Reserve for Encumbrances $40.275.009620 Reserve for Encumbrances 600.00

'_9830 Encumbrances $40,275.009830 Encumbrances 600.00

Account Appropriation Ledger1100 Teachers' Salaries $32,000.001200 School Administrators' Salaries ., 1,600.00

1300 Supervisors' Salaries 2,000.001600 Physical and Mental Health Salaries 125.001800 Other Certificated Salaries of District and

County Administration 800.00 .

2200 Office of County Superintendent and District ,Administrative Personnel Salaries doom

2200 Office of County Superintendent and DistrictAdministrative Personnel Salaries 250.00

9--77995 132. VI-29

/ .c.2300 t ',erica! Salaries ., $ 650.002400 MAntenance and Operatian Salaries 2,850.00

.

To record salary encumbrance liquidations and adjustments for the monthof July

Posting the General Ledger.. The journal entry for salary encumbrance liquidations andadjustments is posted to the General Ledger as usual. .7

Posting the Appropriation Ledger. Entries in the subsidiary Appropriation. Ledger are made in the"Encumbrances" column in thellowing example:

Account 1100APPROPRIATION. LEDGER

Teachers' Salaries Page 1

Refer-Date ence

7-1-73

7-31-73

J 3d5J8J 10

Account 2200

AN

Appropri-ations

$390,000.00390,000.00390,000.60390,000.00

E noun,:brances

$390,000.00

32,000.00

Encumberedto date

ExpendedExpended to date

Unencum-bered

balance

$390,000.00390,000.00#158,000.00

$32,000:00 $32,000.0032,000.00

APPROPRIATION LEDGERDistrict Administrative Salaries

`!-

-$390,000.000.00

32,000.00 Cr0.00

Page 1

ReferDate ence

7-1C-73

7 31 7'3

J3J5J8J 10

1()

Appropri-ation

$3,600.003,600.003,600.003,600.001,R00 00

Encum-brances

fP3,60Q.00

250.00Q00 no

Encumbered .

to date Expended

$3,600.003,600.003.350.002,7cri 00

UnencumExpended bered

to date balance

$1,600.000.00

$9co nn $250.00 750.00 C,250.(0 '0.007R0 no ROO on

The control account, Encumbrances, in thi. General Ledger can be proved by \adding the t,,ff+i- 'ifthe "Encumbered to elate" column in each of e11haidinrti Arrrnt,riatinn Ledge. Rcr-IirstR

Recording Encumbrance Adjustments Other than Salaries

The amount of encumbrance to be adjusted or liquidated wheAtendor payments or otherexpenditures are recorded is th amount originally encumbered for the specific items. Thus, if apurchase order was originally encumbered for $100 but the actual payment was $99.50, the original$100 encumbrance is liquidated. Partial payments on an ofdeiare liquidated-in the same amount asoriginally encumbered for items being paid, and the balance of encumbrance is liquidated when thefinal payment is made. -

Depending on the encumbrance method being' used, the adjustments or liquidations ate postedeither directly from the purchase order as illustrated on page VI-21 or from a Purchase OrderLiquidation 'Summary listing tip purchase orders being paid. The same fOrm can be used as thatshown for the Purchase Order Encumbrance Summary on page VI-21. The warrant register formshown on page VI-28 might also be used to Indicate liquidations of encumbrances by addingcolumns for purchase order number, amount encumbered, and encumbrance classification.

VI-30

- ,

Here again it is true that with some machine systems its is wore piactical to liquidate allencumbrances incumbrances and to reencumber those that are outstanding after paid,items have been deleted.If an encumbranc7.-amount is cancelled or changed because items ordered are unavailable or.pricesare changed, theladjustment is recorded in the same manner as the routine liquidations, followingpayments. .

Preparing the journal entrj'. The journal entry to record encumbrance adjustments lists' theGeneral Ledger and subsidiary ledger accounts and the amounts for each, as shown inthe followingexample:

- Date Account , Debit I Credit. . ,

7-31-73 9620 Reserve for Encumbrances $6,246.009830 Encumbrances

Account Appropriation Ledger 40.)4100 Textbooks 4 350.004300 Instructional Materials and Supplies 475.004500 Other Supplies 1,620.005500 Utilities and Housekeeping Services 1,300.006200 Buildings and I mpr9vement of Buildings 2,500.00

$6,245.00

To record encumbrance liquidations (other than salaries) for the month of July

The journal entry for encumbrance liquidations (other) is posted to the General Ledger in theusual manner.,.,

Posting the Appropriation Ledger. Entries in the subsidiary Appropriation Ledger are made in theEncumbrances column, as shown in the following example:

-4.

APPROPRIATION .LEDGERAccount 4300 Instructional Supplies Page 1

1 Inenclun

Refer Appropri t ncurn r rIcurnber po Expended bered

Date ence ation brances to date Expended tr) date balance

7 1 73 J 3 12,500.00 $2,500,00J 6 2,500.00 1050 00 `1750.00 1,750.00

7 11 71 J 9 2,500.00 750,00 ,4175 no t47 00 1275 00.1 11 9,500 00 4 7c 00 775 00 4 7R 09 1,750 nn

Recording Other Adjustmentc

Changes, or adjustments, must often he made to entries recorded in the' General Ledger andsubsidiary ledgers. Some of the more common adjustments are cited in the following paragraphs

Recording a -ust ents to estimated income. When information is received that income willriexceed the o estimate in the official budget, anew estimate of income is made, and the

increase is recorded in the General Ledger and the Income Ledger The incieage in estimated incomeis recorded as follows:


5.31-74 9810 Estimated Income / $1.100.009710 Unappropriated Fund Balance $1.100.00

itt2.,

Account Income Ledger8611 Basic and Equalization Aid and Supplemental Support $1,100.00 Dr

To record revised estimate of a state apportionment

Vi 31

This entry increases the estimated income in the. General Ledger and in the Income Ledger. Italso increases the amount available for appropriation. as itiaicated by a credit balance in the-Unappropriated Fund Balance account. (Note (that the entry siipply-.records the amount available.'for appropriation. Actual appropriation may be made by governing board action Only, as prescribedin education Code ections 42610 and 42602.),

,Wlksn a revised iriome estimate indicates a decreasen amount of estimated receipts, the decreaseis recorded in a similar manner, as follows: .

Dath Account Debit Credit5-31-74- 9710 Unappropriated Fund Balance $1,100.00 .

9810 Estimated InoOtne -- $1",100.00

Account lncotn`lt Ledger. , ..

8611' Bask and Equalization Aid . $1,100.00 CrTo record revised estimate of basic and equalization aid

.

.

Note that when this entry is posted to the General Ledger, a dbit b ance-in the UnappropriatedFund Balance. account usually results. A debit balance indicates that ap rOpriatiOns exceed availableresources and is a warning that expenditures must be ,controlled so that this amount remains asunexpended appropriation at the end Of the fiscal year. .,. , s ,

Recording adjustments to appropriations: Except when:4 revised appropriation budget has beenadopted, adjustments involving changes in current appropriations wilt' have no net effect on theGeneral Ledger balances. The bhanges will affect only the, Appropriation Ledger, because the totalamount appropriated is not changed but is simply redistributed amt tg the appropriations accounts:

\ :.

Date Account , Debit .. , it Credit10-30-73 9820 Appropriations

9870 AppropriaVons *;i, (pgro 00

Account Appropriation Ledger°5400 New Equipment ....,.. .

' 4800 rnuipment ReplacementTo ronord ann. opr iptino t,2,,tf4o'^ f-:+,rInri 1c)//0 'il

isr:'$500.00

?500.00 DrXto on

Recording adjustments ,to expenditureN: When information shows that an amount alreadyrecorded as an expenditure should be charged to some other expenditure account, the adjustment ismade without. net .effect opt the G6neral Ledger. The expenditures portion of the AppropriationLedger will reflect the change. ac in the following examples

' Date . Account Debit Credit11 16 73 9850 FxOenditures $25.00

Fxpenditures $25.00985%

Account Appropriation Ledger4100 Textbooks $25.00 Dr4200 Other Books 25.00 Cr

To record correction of expenditures classification coding on warrant number123215, 10-15.73

Date Account Debit

11 -3Q -73 9850 Expenditures $200.009850 Expenditures

Account' Appropriation Ledger1100 Teachers' Salaries $200.00 Dr1300 Supervisors' Salaries 200.00 Cr

To record portion of J. D. Smith's November salary as Teachers' Salariesbecause he substituted for A. B. Clark

Credit

$200.00

Recording adjustments to stores. Adjusting entries resulting from a stores operation are shown inthe next example. When a physical inventory reveals a stores 'overage or shortage, the amount mustbe recorded in the records. The usual practice is to adjust the StoresInventory and theStoresOverhead accounts.

Date Account

11-25-73 9210 StoresInventory9210 StoresOyerhead

Debit Credit

$75.00$75.00

To record stores average per inventory of 11-15-73

An inventory shortage is reflected by a-similar entry, except that the debit and credit entries arereversed.

Periodically, the StoresOverhead account is cleared of its charges. This must be done at leastonce a year to assure that the year-end balance in the overall Stores account represents onlymaterial on hand in the warehouse and available for issue.

Clearing the StoresOverhead account requires an entry to distribUte t balance of this accountto the various expenditure accounts. One of several methods may be u ecl for determining thisdistribution. Regardless of the method.used, the entry is made as shown the following example:

Date Account - Debit

6-30-74 9850 Expenditures .:. $1,500.009210 StoresOverhead $1,500.00

Credit-

Account Appropriation Ledger4300 Instructional Supplies $1,000.00 Dr4500 Other Supplies 500.00 Dr

,-,

To distribute warehouse overhead expense for the fiscal year

Closing the General Ledger

The closing entries fall into two categories. The f category is the adjusting or the accrual ofcertain balance sheet accounts. The second category is the closing of all budgetary and operatingaccounts.

Determining the adjusting entries. Adjustments of prior year accruals may become necessarybecause of errors in estimating the amounts to be accrued or changes resulting ftpm informationavailable at a later date.

At year-end, amounts of income or transfers 'from other districts due and not yet received aredetermined and recorded in the current fiscal year. However, !Ironies due from tax delinquencies arenot included, because tax income is recorded on a cash basis. Only those amounts that can be

11413.6

reasonably determined are recorded. The amount recorded as Accounts Receivable must agree withthe report filed with the county superintendent of schools.

Those amounts that are due and receivable from other funds of the district are recorded as Duefrom Other Funds rather than as Accounts Receivable.

Accounts Payable or Current Liabilities are amounts due but unpaid at year-end for goods andservices received during the year. The amounts set up as current liabilities must agree with thereport sent to till county superintendent of schools.

Those liabilities that are due and payable to other funds of a district are recorded as Due to OtherFunds, rather than Current Liabilities.

If the district maintains a Stores account, refer to Part V of this manual for information., If the prordtion for prepaid expense items is made at the time of the expenditure, no furtheraction is necessary at yearend. The prepaid expense proration schedules should be checked at thistime. If there is an erroi to be corrected or an adjustment to be made, the debit or credit will bemade to the Prepaid Expense account and the offset to the appropriate expenditure account.

The Reserve for Working Capital account is adjusted to reflecte net'increase or decrease duringthe year.

The total amount of the General Reserve account is closed to Unappropriated Fund Balance, thetotal amounts in the Income and Estimated Income accounts are closed to Unappropriated FundBalance, and the total amounts in the Appropriations and Expenditures accounts are closed toUnappropriated Fund Balance.

Closing Accounts Receivable and Accounts Payable accounts, The closing entries arc wade asfollows:

Date Account Debit Cietlit6-30-7b 9160 Account Receivable

9710 Unappropriated Fund Balance

To close additionar Accounts Heceivabia Luile..tiuns

6-30.75 9710 Unappropriated Fund Bal'acuie9160 Accounts Receivable

To close unrealized Accounts liectivable uuliek.tiuns

6-30-75 9710 Unappropriated Fund ealance9510 Accounts Payable

To close additional Accounts Payable payments.0%

6-30.75 9510 Accounts Payable9710 .Unappropriated Fund Balance

To close overestimated Accounts Payable prrients

When accounts are closed, the General Journal entries are made as illustrated in the followingexamples:

VI-34

TO CLOSE THt\tENERAL RESERVE ACCOUNT.10`

Date Account Debit Credit6-30-74 9630 General Reserve

P 9710 Unappropriated Fund Balance

To close the General Reserve account

_L'1

TO CLOSE ESTIMATED INCOME AND INCOME


6-30-74 9840 Income9710 Unappropriated Fund Balance9810 Estimated Income

Account Subsidiary Income Ledger8110. Maintenance and Operation (Public Law 81-874)8210 National Defense Education Act

(Public Law 85-864)8611 Basic Aid and .Equalization Aid8616 Educationally Handicapped8622 'filnsportation8811 District Secured Tax Roll8812 District Unsecured Tax Roll8880 "Miscellaneous Funds"8920 Other Tuition

Date.)

6-30-74

To close Estimated Income and Income to Unappropriated

TO CLOSE APPROPRIATIONS AND EXPENDITURES

Account

9820 Appropriations. 9850 Expenditures

9710 Unappropriated Fund Balance

Fund Balance

Debit Credit

Account Subsidiary Expenditures Ledger1100 Teachers' Salaries $360,0001200 School A1 dMinistrators' Salaries 20,0001300 Supervisors' Salaries 25,0001400 Librarians' Salaries 2,0001500 Guidance, Welfare, and Attendance Salaries 104000

1600 Physical and Mental Health Salaries 1,5001700 Superintendents' Salaries 10,0001800 Other Certificated Salaries of District and County

Administration 5,0001900 Other Certificated Salaries 1,0002100 Instructional Aides' Salaries 2,0002200 Offices of County Superintendent and District

Administrative Salaries 3,6002300 Clerical and Other Office Salaries, 7,0002400 Maintenance and Operation Salatres 36,0002500 Food Services Salaries 5,0002600 Transportation Salaries 5,0002900 Other. Classified Salaries 5003100 State Teachers' Retirement System Fund 11,9003200 Public Employees' Retirement Fund 2,0003300 Old Age, Survivors, Disability, and Health Insurance 1,5003400 Health and Welfare Plans 9003600 Workers' Compensation Insurance 9004100 Textbooks 2,0004200 Other Books i. . 500

4300 Instructional Materials and Supplies 2,5004500 Other Supplies 8004800 Equipment Replacements 6,0005100 Contracts for Personal Services of Co ultants,

Lecturers, and Others 5005200 Travel and Conferences Expense Reimbursement 3005306 Dues and Memberships -2005400 Insurance 1,0005500 Utilities and Housekeeping Services 5,0005600 Contracts, Rents, and Leases 4,5005700 Legal, Election, and Audit Expenses 5005800' Other Services and Expense 4,5005900 Interprogram Charges and Credits 06100r Sites and Improvement of Sites 2,5006200 Buildings and Improvement of Buildings 22,5006300 Books and Media for New or Expanded Libraries 1,5006400 New Equipment 7,8007200 Outgoing Tuition 30,500

Prepaid ExpensesCash is often disbursed by school districts for services or materials, a portion or allof which

actually applies to a future fiscal period other than that in which the cash disbursement is made.The most common such disbursement is for insurance, the full premium of which is paidimmediately, but the coverage of which extends into future school years. Were the entire premiumcharged to the year in which the premium is paid, expenses for such a year would be overstated, anda comparison with years in which such premium was not paid would become invalid.. For thepurpose, therefore, of including expenditures in the year that the services or materials werereceived, it becomes necessary to accrue as an asset the arilou sh disbursed for an itemallocated to a future year.

When the dash disbursement for an item as discussed above is made, it is necessary to credit thecash .accotint for the \full amount of the disbursement. The debit st be split to two accounts, thatportion which applies to the current school year being charged to ent year expense appropriateto the item, and the remaining portion applicable to a future ye charged to the asset accountentitled Prepaid Expenses, as in the following example:

VI-36

General Ledger

Date Account

7.15-73 9850 Expenditures9220 Prepaid Expenses

i...\9110 Cash in Cotinty Treasury

$100.00400.00

To record payment of a five-year insurance policy, one year ofwhich applies to the current year

Appropriation Ledger

Date Account Debit7-15-73 5400 Insurance $100.00

To record payment of a five-year insurance policy, one year ofwhich applies to the current year

i3

Credit

$500.00

Credit

At the end of the school year when the books are closed, the asset account, Prepaid Expenses, isincluded with other ending balances and becomes a part of the beginning balance for the nextschool y .

After the books are opened for the next school year, it is necessary to determine whether all or aportion of Prepaid Expenses applies to the current year. This amount must be charged to theappropriate expense account of the new year, leaving as a remainder in the asset account anyamounts not yet applicable. These, in turn, must be arried over as Prepaid Expenses to the nextschool year. To facilitate determination of the amount to charge to a year other than that in whichthe original cash disbursement was made, it is good practice to prepare a schedule of amounts andperiods applicable at the time when the original cash disbursement is made, as shown in thefollowing example:

7

PREPAID EXPENSES SCIILLAil

' Analysis of total applying to cti succ.eed in

1-,11..y Ovou all F list Second Third Fourth1.)atc I illalbet 1,,.:, 1 I. total Year year ye-__

15 73 $400.00 $100.00 $100.00 $100.00 $100.00It_

y year

FifthYear

This schedule is retained for teletelice at the time of a tututc yea Jtatge-off to onsule that the,,orrect amounts are charged to each succeeding year in which a benefit is received. The precedingschedule would be updated at the beginning of each school yeas by reducing the control total bythe amount of the first year succeeding, which is charged to expense, and by moving each figure inthe next several columns one column to the left.

To charge off the portion applicable to a new year at the beginning of that yea', a juutttal citify ismade, with the debit to the appropriate expenditures account and the credit to Prepaid Expenses.This should be one of the first entries.

Act. ring for

1'01 thosu school dr.bur,,is that indintain central stores of ilia ILIIIAL it w morel 1/. illtippl tP1/1 hill: it,charge the ..mount of cash disbursed for stores as an expense for any given year. Instead, it is

necessary to charge as expense only the value of the stores issued during each year The value ofstores paid for but not issued must be accrued as an asset to become a part of the ending balance atthe close of the school year. The same amount in turn becomes a part of the beginning balance ofthe new year when the .books for the new year are opened.

Unless a Stores Revolving Fund has been established in accordance with provisions in theEducation Code, payments for stores are made from the General Fund, with the'debit to stockpurchases within the Stores account and the credit,to Cash, as in the next example:

Journal Entry

Date Account Debit GI' edit

9-11-73 9210 Stores, purchases for stuck9110 Cash in County Treasury

Tp record supplies purchased for stuck

$55.10$55 10

When stock is issued, an entry must be made crediting stock purchases within the Stores aueuiuttand debiting the appropriate expense account, ;This may be done by posting detailed requisitions to

I 0-77995140

VI+37

a special journal, the accumulated total of which is posted to the General Ledger at monthlyintervals. Such posting is shown in the following examples:

Stock Issued Ledger

RequisitionDate number School Account

9-7-73 12501 Roosevelt 4300 Instructional Materials and Supplies. $ 2.k29 -9 -73. 332 Garfield 4506 Other Supplies 7.669-10-73 2661 Waihington 4500 Other Supplies 12.019-27-73 32 Wilson 4300 Instructional Materials and Supplies . 19.43

Monthly Jouinai Entry

Date Stock Issued Ledger Debit 'Credit9-30-73 4300 Instructional Materials and Supplies $22.15

Nr4500 Other Supplies 19.679210 Stores, withdrawals from stock $41.82

a

Stores Ledger

Date

To record withdrawals of stores for the thoilth t,r beptembei 1913

Overhead Overhead Stock Stock totalreimbursed expense purchases 'iririthdrawais stores

9-11-73 $55.109-30-73 $41.82

$55.1013.28

In he event that a Stores Revolving Fund has been established, a warrant must be drawn on theGeneral Fund payable to the Revolving Fund in the amount of the total withdrawals in lieu of thejournal entry just given; but the accounts are otherwise the same.

To extend the value of stock issues, the most common practice is to compute an average priceeach time new stock is received and to use this average price for extending all requisitionsprior tothe next receipt. The data necessary to compute an average price is accumulated by maintainingperpetual stock records for each item carried in the warehouse. Part V of this manual Containsdetailed information about methods of maintaining perpetual stock records.

Certain expenses, other than the disbursement of cash for stock, are usually incurred in theoperation of a warehouse. Examples Of such expenses are the salaries. of warehousemen ordeliverymen, utilities, rented space,, and vehicles. If stores are accounted'for, in the General Fund,these other expense may be distributed directly to the appropriate expenditure accounts orcharged td-overhead expehse. if a Revolving Stores Fund has been established, these other expenseswould be charged to overhead expeuse withjl the Stores account in the revolving fund rather thanin the General Furici. Eventually it will be necessary to prorate these expenses to the appropriateexpense accounts. x p s s may be prorated either at the tiro sues are made or by the end of theyear; the basis used is the distribution charge..for stock, withO'rSwals.

One method, of distributing overhealkincurred in operating a stores warehouse is to add to theaverage cost col each item requisitioned a fixed percent (overhead) that is sufficient to cover alldperation expenses.' Thisa method of distributing overhead allows the total warehouse operating

'.costs to be distributed to applicable expenditure accounts by the end of the year. Any surplus ordeficit in the At total of the two remaining overhead accounts is then prora'ted and distributed

4.1among the liable expgrditure accounts.overhead is not distributed: along with theHstock issues, then some means for eventual

distribution ofi-bveihead must be maintained. This may be done by keeping a running analysis ofwithdrawals by classification of the expenditure accounts to which the charges are being made. Thetotals are converted to percents of the total withdrawals at year's end, and the total overhead

(1-38

expense incurred in operating the stores warehouse is distributed to expenditure accounts on thebasis of these percents. When a constant percent is added to issues in accounting for the aboveentries, the debit of the total amount, including the percent for overhead, is charged to theappropriate expenditure account. The credit, however, must be split between actual value of theitems of stock withdrawals (computed at the latest average price) and the amount that was obtainedby extbridiiig that value by the constant percent to cover overhead reimbursed to the Stores.account. For this purpose an overhead reimbursed account should be maintained within the Storesaccount At the end of the year, the total charges to overhead expense wilt be available separatelyfrom the credits to overhead reimbursed. For the followingyear, percents may be. adjusted toreduce differences between the overhead :amounts expended and reimbursed. Any differencesbetween these two accounts at the end of the year must be charged or credited as the case dray beto appropriate expense accounts according to the value of items issued.

As mentioned in Part V of this manual, an actual physical inventory shoul e taken at least onceannually, and a comparison should be made between the control count on the perpetual inventoryand the actual count. At this time any difference should be adjusted by charging or creditingoverhead expense, by the value of any difference in the quantity on hand, with the offset to stockwithdrawals. If at any time the warehoUse is unable to.t.lomplete a request because of insufficientstock, an indication of how much was actually issued, should be noted on the reqtiisition. This willmake possible a simple check of agreement with the perpetual inventory on that item, since theaccount will now be zero, or very small. Inventory variations discovered at such ties should beaccounted for when convenient, but no later than the end of the year.

Specifically, if the Stores account is maintained in the General l'und, the net value of theinventory will be reported in Part 1 of the Annual Financial and Budget Report, both as an endingbalance for the current year and as a beginning balance for the new year If a warehouse RevolvingStqres Fund account has been established, the net value of the inventory will be entered on Part IXof the Annual Financial and Budget Report, which is for special funds. List the accounts as "stores'for both beginning and ending balances. Expenditures for operating purposes will be zeroin allcases' since thekeexpenditures are accounted for the General Fund. Should additional capital beadded to the Wiad'res ting from an increase in average daily attendance, the increased capital isaccounted .f j ;:aJran er expense on the General Fund and a transfer income on the RevolvingStores FIc410 , should some portion of the capital funds be returned to the General Fund,t I le- .4t400. y6t d is a transfer expense on the Revolving Stores Fund and a transfer income onthe es eictii.FFund 4

11 the event that the Revolving Stores fund is established as 'a common fund of two or moledistricts, duplicate Annual Financial and Budget Report forms (Nit 1X) are prepared,. for inclusionwith the budgets of each co-owner of the fund. An indication is nciade showing the percer4 of equityof each co- owning district according to the value of its initial cash and inventory contributions tothe established fund.

When the Revolving Stores Fund is establiihed initially, the transfer expense account in theGeneial Fund is in the amount of cash plus inventory contributed to the fund. In this year theGeneral Fund will show the value of Stores as a beginning balance but will show no ending balance.The' Revolvirig Stores Fund of the first year will Show no beginning balance but will show a transferincome.in the total value of cash plus inventory received and an ending balance of Cash and Stores.

General Ledger Accounting for Building FundsBuilding funds are used to account for the receipt and disbursement proceeds of the sale of bonds

authorized by election and issued by a school district under Education Code Section 15100. Themajor expenditures in a school district building fund are related to the purchase and improvementof sites, construction and modification of buildings, and the purchase of equipment.

1 42 VI-39

The accounting entries desCribed earlier in this section for appropriations, expenditures, andencumbrances are found in the building fund. However; there are some accountieg features in thisfund that are not found in other funds.

To illustrate the accounting for a building fund, a series of typical transactions and entries insummary form is given, as follows:

I . An issue of bonds totaling $5,000,000 is authorized by the voters for the purchase of sites andthe construction of buildings.

Serial Bonds AuthorizedUnissued $5,000,000Reserve for Unissued Bonds $5,000,000

2. The full issue is sold to the Bank of America_Cash in County Treasury $5,000,000

IncomeSale of Bonds $5,000,000Reserve for Unissued Bonds $5,000,000

Serial Bonds AuthorizedUnissued $5,000,000Estimated Income $5,000,000

Appropriations $5 ,00d,000

NQTE: Because contracts cannot be let until tuiids ale available, appropriation authority is withheld untilbonds are sold.

3. Construction contracts and agreements to purchase sites are made in the amount of$4,900,000.

Encumbrances $4,900,000Reserve for Encumbrances $4,900,000

*Other costs, not encumbered, are paid in the amount of $20,000.

'Expenditures $20,000. Cash $20,000

tOritructi9n contracts and agreements to purchase Sites, previously encumbered, are paid inthe amount of $4,910;000.

Reserve for Encumbrances $4,900,000Encumbrances $4,900,000

Expenditures $4,910,000Cash $4,91 0,000

6. An entry is made to close Expenditures into Appropriations.

VI-40

AppropriationsExpenditures

7. An entry is made to close Income into Estimated Ihcome*

$4,930,000_$4;930,000

IncomeSale of Bonds $5,000,000Estimated Income $5,000,000

8. An entry is made to close Appropriations into Unexpended Fund Balance.

Appropriations $70,000Unexpended Fund Balance $70,000

4 3

Part VII

Accounting Terminology,

Abatement. The return of part or all of an item ofincome or expenditure t its source during thecurrent fiscal year.

Accounting period. A period of time for whichrecords are maintained and at the end of whichfinancial statements are prepared covering the

. period.Account nUmbers or letters. Numbers and/or let-

ters assigned to the ordinary titles of accountsfor classification of accounts and ease ofreference.

ACcounts payable. Amounts due and owed toprivate persons, business firms, governmentalunits, or other's for goods received and services,rendered prior to . the end of, the fiscal year.Includes amounts billed buf 'not paid.

Accounts receivable. Amounts due and.owed fromprivate persons, business .firms, governmentalunits, or others for. goods received and servicesrendered prior to the end of thermal -year.Includes amounts billed butnot received.

Accrual basis. That method of accounting in whichincome is recorded when earned, even though..not collected, and expenditures are recordedwhen the liabilities are incurred but not yetpaid.

Ad valorem tax. A tax based on a percent of thevalue of goods or services. (

Allocation. Division or distribution accOrding to a-. predeterniined plan.Allowance. A provision for, valuing an asset at net,

such as an allowance f,/ bad debts. This valua-tion account will net 'accounts receivable toreflect collectable receivables.

Allowances: Sums granted as reimbursement forexpenses or services rendered.

Apportionment. Antication of state or federal aid,district taxes, .or other monies among school dis--tti6s or other governmental units.

App(rtionthent notice. , A document notifyingschool districts when monies 'have been depos-itedWith the county treasurers

Appraisal. An estimate of property value made bythe use of systematic procedures based uponphysical inspection and .inventory, engineeringstudies; and other economic factors.

Appropriation. An allocation of budgetary fundsmade by the governing board for specific pur-poses and limited as to the time when it may 'beexpended.

Approprirition for contingencies (formerly termed 1

undistribyted reserve). That portion of the..cyr-rent fiscal year's budget that is not appropriated'.for any specific purpose but is held subject to

. intrabudget ,transfer; i:e., transfer to other spe-cific appropriations as needed 'during the fiscalyear.

Appropriation ledger. A record eolltainipg anaccount with each item allocated or budgeted.Such accounts sually show the amount origi-nally approp ted, transfers to or from theappropriation, amounts charged against theappropriation, the encumbrances, the unencum-bered balance, and other related information.

Assessed valuation. Value plaCed upon personaland real property by a governmental unit fortaxation purposes.

Assets. Anything g oOrned 'that has value tangible orintangible. (See also current asset/and fixedassets.)

Audit. An examination of documents, records, andaccounts for the purpose of (1) determining thepropriety of transactions; (2) ascertainingwhether all transactions are recorded 'properly;and (3) determining whether statements drawn.from accounts reflect an ccurate picture offmancial operations and finahcial status.,

W1-1

144.

Available cash. Cash on hand or on deposit in agiven fund that is unencumbered and can be uti-lized for meeting current obligations.

Available surplus. That portion of the excess ofassets over liabilities not obligated for currentappropriations or for restricted purposes.0(Seealso unappropriated fund balance.)

Average daily attendance (q.d.a.). Total approveddays of attendance in the school district dividedby the number of days the schools in the districtare in session for at least the required minimum

, day. (Refer to Education Code Section 46300and California Administrative Code, Title 5,Education, sections 400-424.)

Balance sheet. A Statement that shows assets, liabil-ities, reserves, and fund balance or fund deficitof an entity at a specific date and is properlyclassified to exhibit the financial condition ofthe entity as of that specific date.

'Bond. A certificate containing a written promise topay a specified sum of money, called the facevalue, at a fixed time in the future, called thedate of maturity, and specifying interest at afixed rate, usually payable Periodically.

Bond discount. The 'excess of the face value of abond over the price for which it is acquired orsold. (The price does not include accrued inter-est at the date of acquisition or sale.)

Bond interest and redemption fund. A fund estab-,fished to pay bond interest and liquidate indebt-edness when due and payable.

Bond premium. The 'excess of the price at which abond is acquired or sold over its face value. (Theprice, does< not include accrued interest at thedate. of acquisition or sale))

Bonded. debt. That portion, Of .indelitednes,s repre7sented by outstanding boil&

Bonded debt service. Expenses incurred for interestad redemption of bonds.

Bonds authorized and unissued. Legally authorizedbonds that have not been sold and that may besold without the necessity of holding anotherelection.

Budget. A plan of financial operation consisting of. an estimate of Proposed income and* expendi-

tures for a given period and purpose.Budget document. The instrument used by the

budget-making authority to present,a compre,hensive financial program of the governmenial

ti

VII-2

unit. It includes a balanced statement of reve-nues and expenditures as well as other, exhibitsto report (1) the financial condition of the sev-eral funds of the governmental unit at the end ofthe preceding completed fiscal period; (2) theestimated condition of the funds at the end ofthe fiscal period in progress; and (3) the esti-mated condition of the funds at the close of theensuing fiscal peribd based on the financial pro-posals contained in the budget document.

Budgetary accounts. Accound that reflect budgetoperations; i.e., estimated income, appropria-tions, and encumbrances ct from the, pro-prietary accounts.

Budgetary control. The man gement of businessaffairs in accordance with 'an approved plan ofestimated income and expenditures.

Budgeting. The process of allocating the availableresources of an organization among potential'activities to achieve the objectives of the organi-zation; planning for the use of resources.

Building fund. A fund established to control theincome and expenditures related to the purchaseand maintenance of school buildings, sites, andequipment.

Cafeteria account. Receipts and disbursements ofthe cafeteria function.,that are processed througha bank.

Cafeteria fund. Receipts' and disbursements of thecafeteria function that are processed through thecounty treasurer.

Capital assets. See fixed assets.Capital outlay,. Amounts paid for the acquisition of

fixed assets or additions to fixed assets, includ-ing land or existing buildings, improvements ofgrounds, construction of buildings, additions tobuildings, remodeling of buildings, or initial and

'additional equipment.Cash. Currency, cheeks, postal and express money

orders, and banker's drafts on hand or on depositwith an official 9r agent designated as custodianof cash; and bank deposits: Any restriction orlimitation-1as to the availability of cash shot&be indicated.

Cash advance. Cash apportioned in advance'of theusual apportionment period.

Cash basis: Method of accounting in which incomeand expenditures are recorded only when cash isactually received or disbursed.

Cash collections awaiting deposit.' Receipts on, hand or monies in a bank clearing account await-ing deposit in the county treasury.

Cash discount. An allowance made on a purchase ifpaid within a stated period. (The term is not tobe confused with trade discount.)

.Cash in bank. Balances in separate bank accountssuch as student body accounts, adult educationincidentals, -school farm accounts, and cafeteriaaccounts.

Cash in county treasury. Cash balances on depositin the' county treasury for'the various funds ofthe school districts.

Chart of accounts. A list of accounts, systemati-cally arranged, applicable to a specific concern.411 account names and numbers, if any, arelisted in.order.

Check. A bill of exchange drawn on a bank payabledefnand; a written order on a bank to.pay- on

'demand a specific sum of money to a named .

person, to his order; or .to bearer out of moneyon deposit to the credit of the. maker. A checkdiffers from a warrant in that a `warrant is notnecessarily payable on demand and may not be,negotiable; it differs from a voucher in, that avoucher is not an order to pay. A voucher -checkcombines the distinguishing marks of a voucherand a check; it shows .the propriety of a pay-ment and is an order tp pay. :.

Child development fund. A fund established tocontrol the financial operations Of childrenr,centers.

Classification. The naming or identification of anitem or a category, such as the designation of theparticular account into which a. receipt or expen-diture is to be recorded, or the separation of datainto acceptable groupings so that financial factscan be stated more accurately. e

Clearing accounts. Accounts used to accumulatetotal receipts or expenditures for later distribu-tion among the accounts to which such receipts,or -expenditures. are properly allocable or forrecording the nef differences under the properaccount. (See also revolving cash fund, prepaidexpenses, and petty cash.)

Code. (1) A distinguishing reference number orsymbol. (2) A statement of the laws of a specificfield; e.g., Education Code, Penal Code, CivilCode, and Lab Code.

L

Collier Factor. A ratio developed for each countyby the State Board of Equalization for the pur-pose of adjusting to the statewide average theassessed value of the local property rolls in rela-tion to the market value thereof.

Contingent liabilities. Items that may becomeliabilities as a result of conditions Undeterminedat a given date; e.g., guarantees, pending law-,suits, judgments and appeals, and unsettled dis-puted claims.

Contracted services. Expense of services renderedunder contract by personnel who are not on thepayroll Ofthe school system, including all relatedexpenses covered by the contract.

Controlling account. A summary account, usuallymaintained in the general ledger, in which isentered the aggregate of the debit and the creditpostings to a number of identical, similar, orrelated accounts called subsidiary accounts. Itsbalance equals the sum of the balances of thedetail accounts.

Cost. The amount of money or its equivalent valuepaid or agreed to be paid for property or ser-vices. Costs may be incurred even before moneyis paid; that is, as soon as a liability is assumed.Ultimately, however, money or its equivalentmust be given in exchange. The cost of someproperty or service may in turn become a part ofthe cost of another property or service. Forexample, the cost .of materials will be reflectedin the cost of articles made from such materials.

County School Service Fund (C.S.S.F.). A fundestablished to control the financial operations ofthe ogices of county superintendents of schools.

Credit. The right side of a double -entry posting.The credit will reduce assets and expendituresandncrease liabilities, income, and fund balance.

Current assets. Assets that are available or can bemade readily available to meet the cost of oper-ations or to pay current liabilities.

Currenkexpense of education. The current generalfund operating expenditures of a school distrinctfor kindergarten and grades one through twelveexcluding expenditures for food services, com-munity services, facility, aquisition and construc-tion, . and object classifications 6000 and 7000(exCept 7250, Current. Expense for RegionalOccupational Centers or Regional Occupational

, Programs).

1.46N

-t

4

V. 1 1 3

Current liabilities. Amounts due and payable forgoods and services received prior to the end ofthe fiscal year. Current liabilities should be paidwithin a. relatively short period of time, usuallywithin a year.

Current loans. A loan payable, in the same fiscalyear in which the money was borrowed.

Debit. The left side of a double-entry posting. Thedebit will increase assets and expenditures andreduce liabilities, income, and fund'balance.

Debt limit, The maximum amount Of bonded debtfor which a school district may legally obligateitself.

Debt service. Expenditures for the retirement ofdebt and for interest on debt, except principaland interest on current loans.

Deferred charges. Expenditures not chargeable tothe period in which they are made but set' up asassets to be eliminated by charges as expendi-tures in subsequent periods.

Deferred income. Income unearned in a givenperiod but set up as a liability to be included asincome earned in subsequent periods.

Deficit. Excess of liabilities over asset.Delinquent taxes. Taxes remaining unpaid

.4after the

close of the year in which levied. (See also prioryears' taxes, in most cases the preferred term.)

Depreciation. Estimated loss in value or service lifeof fixed assets because of wear and tear throughuse, elapse of time, inadequacy, or obsolescence.

Designated income. Income received for a specificpurpose.

Development Center for Handicapped MinorsFund. A fund established to control the finan-cial operations of development centers forhandicapped minors. .

Direct expenses or 'costs. Expenses that can beseparately 'identified and charged as a part of thecost of a product, service, or department.

Direct support charges. Charges for a support pro-grarn and services that directly benefit otherprograms.

Disbursements. Payments by currency, check, orwarrant. (The term is not synonymous withexgenditures.)

Doithle entry. A system of bookkeeping thatrequires an amount credited for every corre-spanding amount debited. Thus, the double-entry ledger maintains equality of debits andcredits.

VII-4

Earned interest income. A sum of money receivedor due to be received for the use of moneyloaned or invested.

Employee benefits. Amounts paid by the schoolsystem on behalf of employees; these amountsare not included in the gross salary, but are overand d above. They are fringe benefit payments;and while not paid directly to employees, theyare nevertheless a part of the cost of salaries andbenefits. Examples are (1) group health or lifeinsurance payments; (2) contributions to em-ployee retirement; (3) O.A.S.D.I. (Social Secu-rity) taxes; (4) worker's compensation pay-ments, and (5) payments made to personnel onsabbatical leave.

Encumbrances. Obligations in the form of purchaseorders, contracts, salaries, and other commit-ments chargeable to an appropriation for whicha part of the appropriation is reserved.

Endowment fund. A fund from whic the incomeiirnay, be withdrawn but the princ)al sum ofwhich must remain intact or be accounted for inaccordance with the terms of the trust docu-ment.

Entitlement. An estimate of an apportionmentbased on specific qualifications.

Estimated income. Expected receipts or accruals ofmonies from revenue'or nonrevenue sources dur-ing a given period.

Expenditures.. Amounts paid or liabilities incurredfor all purposes. Accounts kept on an accrualbasis include all charges whether paid or not.Accounts kept on a cash basis will include onlyactual cash disbursements. (See Part III of thismanual.)

Face value. As applied to securities, the amountstated in the security document.

Fees. Amounts collected from or .paid to individ:uals or droups for services or for use of school orother facilities.

Fidelity bond. A form of insurance that providesfor the indemnification of the school district orother employer for losses afising from the theftor dishOneSty of employees.

Fiscal year. A period- of one year, t'zie beginningand ending dates of which are fixed by statute;in California, the period beginning July 1 andending June 30.

Fixed assets, Assets ola permanent character havingcontinuing value; e.g., land, buildings, machinery,

.

furniture, and equipment. The term capital assetsis sometimes used in the same sense, but fixedassets is preferred.

Full-time equivalent. The ratio of time expended ina part-time position to that of a full-time posi-tion. The ratio is derived by dividing the amountof employed time required in the partgime posi-tion by the amount of employed time requiredin a corresponding full-time position.

Function. An act, service, or group of servicesproper to a person, thing, or institution andaimed at accomplishing a certain end.

Functional accounting. A systerrrof accounting inwhich_ records are maintained to accumulateincome and expenditure data by purpose andusually are further classified within generalizedfunctional areas such as instruction, administra-tion, or operations.

Fund. A sum of money or other resources set asidefor the purPose of carrying on specific activitiesor attaining certain objectives in accordancewith special regulations, .restrictions, or limita-tions. A fund is a distinct financial or fiscalentity.

Fund. balance. The difference between 'assets and

Funded debt. See bonded debt, the preferred term.General fund. The fund used to finance the ordi-

nary operations of the school district. It is avail-able for any legally authorized purpose.

General ledger. A book, file, or other_ device inwhich accounts are kept to the degree of detailnecessary to summarize the financial transac-tions of the school system.. General ledgeraccounts may be kept for any group of items Ofreceipts or expenditures on which an administra-tive officer wishes ;0 maintain a close check.

General purpose ta.errate. Tax rate authorized bylegislative statute or by an elebtion held in the'schOol district for the purpose of acquiring taxincome for the general operation of the 'schooldistrict.

Gneral reserve. An account to record the reservebudgeted to provide operating cash' in the suc-ceeding fiscal, year until taxes and state fundsbecome available.

Gift.. Anything of value received from any sourcefor no repayment or service to the con-tributor Is expected.

Grade level. Assigned clasSification of pupilsaccording to age and progress; e.g., kindergarten,first grade, and so forth.

Grant. A contribUtion, either in money or materialgoods, made by one entity to another. Grantsmay be for specific or general purposes..

Grants-in-aid. Outright donations or contributionusually by a superior governmental unit, withoutthe prior establishment of conditions with whichthe recipient must comply..

Holding accounts. Suspense accounts used tempo-rarily to accumulate costs that will ultimately becharged to other using programs.

Income. Revenue and nonrevenue receipts. Reve-nue receipts are additions to assets for which noobligations are incurred. NonreVenue receipts arereceipts of money in exchange for property ofthe school district or for which the districtincurs an obligation.

Indirect expense and overhead. Those elements ofindirect cost necessary in the operation of thedistrict or in the performance of a service thatare of such nature that the amount applicable toeach accounting unit cannot be separately iden-tified:

Indirect support charges. Routine services not per-formed as a special service for a particular pro-gram but allocated to using programs.

In lieu of taxes. Income to replace the loss of taxrevenue resulting from property exempted fromtaxation.

Interest. A fee charged a borrower for the use ofmoney.

Interfund accounts. Accounts in which transac--tions between funds -are reflected.

Interfund transfers. Money that is taken from onefund under the control .of the governing boardand added to another fund under the board'scontrol. Interfund transfers are not receipts orexpenditures of the school system.

Internal audit. An examination *made by school dis-trict employees whose duty it is to make contin-uous or periodic checks on the reliability of theschool district's accounting and reporting proce-dures:

Internal control.. A plan of organization underwhich employees'. duties are so arranged andrecords and procedures so designated as to pro-

: Vide, a system of self-checking, thereby enhanc-

1 4 8

.

VII-5

ing accounting control over assets, liabilities,income, and expenditures. Under such Va systemthe employee's work is subdivided, so thaV.4oone employee performs a complete cycle not

}operation; such procedures call for, prorierauthorization by designated officials.

Intrabudget nsfers. Amounts transferred fromone appropriation account to another within thesame fund.

.

Inventory. A detailed list showing quantities anddescriptipn of property on hand at a given time.It may also include units of measure, unit prices,and values.

Investments. Disbursements of cash for the pur-pose of generating income.

Investment in fixed assets. The book 'value of fixedassets. . .

Invoice. An itemized statem frrof charges for mer-chandise sold or services ndered to the pur-chaser. .

I,

Job account. Art"Paccount- established to record theaccumulation of costs of a specific piece ofwork; work orders showing charges for materialand labor used. -

Journal. Any accounting record in which the finan-cial transactions of the school district are for-mally recorded for the first time; e.g.,°the cashreceipts .book, check register, and journal,voucher.

Journal vopcher. A form provided for the record-ing of certain transactions or infoiii4tion inplace likf, or supplementary to, the journal orregisters. 4,"

Judgments. Amounts due to be paid or collectedby the school district as the result of court deci-sions.

.

Ledger. A group of accounts in which are recorded 1.the financial transactions of a governmental unitor other organization. (See also general ledgerand appropriation ledger.)

Level. A !division of thesnanagement levels describedby the program structure of the district.

Levy. The imposition of taxes or special assess-;-,ments for the support of governmental activities;also, the total: amount of taxes, special assess-ments, or service charges imposed by a govern!mental unit.

Ljapil,pties Legal obligatiOns (exclusive of encum-boes)-fitat"'ate -UnPaid.

Life span (grade span): Broad group classificationof pupils or students according to ate and prog-ress; i.e., preforrnal, elementary, secondary, andadult.

Long-term loan. A loan that extends -for more thanfive years from the date the loan was obtainedand is not secured by serial or term bonds.

Lump-sum appropriation: An appropriation madefor a stated purpose o_ f for a named departmentwithout the amounts that may be spent for paT7ticular object classifiCationrbeing specified.

Modified assessed valuation. Local assessed v;Oua-tion adjusted by application of a ratio knovri asthe Collier Factor and other factors when ppli-cable; e.g., motionpicture, . RedevelopmentAgency, and so forth.

Modified cash basis (modified actrual basis). Anymethod of accounting that combines the con'-eepts occash basis accounting with those ofaccrual a counting

Multiyear financial plan. A plan' that presentsfinancial estimates of programs in tabular formfor a period of years. These estimates shouldreflect the future grianciat impact of curreritip..decisiohs. The data in the MYFP should be orgarnized along the lines of the program structure.

Objec''st. As'used in -an expenditure classification,term that applies to the article purchased or theservice obtained.

Obligations. Amounts that the school district maybe legally required to meet out of its resources.They include not only actual liabilities but alsounliquidated encumbrances. (See also liabilities. )

Order (for payMent). A written demand of the gov-erning board of a school district requiring thecounty superintendent of -schools° to draw hisrequisition on the county auditor for the pay-ment'oLa claim against the school district.

Oveidraft. The amount by which checks, drafts, orother demands for payment on the treasury, oron a bank account e?c&ed tire arnouht of ;thebalance upon which they are ,drawn; or theamount by which encumbrances and expendi-tures exceed the appropriation to *Inch they arechargeable.

Overhead. Elements of indirect cost necessary inthe opergtion of the school district or in thbperformance of a service that are of such nature

thatIlthe amount applicable each accountingunit cannot be determined readily anti accurately.

Override tax nate. A tax rate levied at the discre-.tion of the school board for a specific purpose.The tax income received from. this source maybe used only for the designated purpose. Over-ride tax. rates may be levied in addition to thegeneral purpose 'tax rate.

Par value. The price at which securities are issued.Payroll register. A document accompanying one Or

more orders on a school, district fund for thepayment of salaries, or wages to employees thatcontains the names of such employees and pro-vides information substantiating such orde35;

Payroll warrant. A document used as an order or .arequisition on funds of a school district for thepurpose of paying salaries or wages.

Personal property. All property except real estate..Petty cash. A-sum of money setaside for the pur--

pose. of making change or immediate paymentsof small amounts. (See also revolving, cashfund.) .

Prepaid expenses. Items for which payment hasbeen made but for which benefits have not beenrealized as of a certain date; e.g., prepaid rent,prepaid interest, and premiums on unexpiredinsurance Benefits and corresponding charges toexpenses will he honer in f ac-ountinpperiods.

Prior lean. InYe.7 'Taxes collected within the current filcal yea, for levies in previons fiscal years

l', )gram (noun), A group of related activities consisting of a unique combination of objectl thatoperatc together to accomplish common ends

Program accouriti,lg A system of a, counting inwhich records are maintained fa accim"ilateincome and expenditnrp rhta h. rlicyrn,t1 (qt.,/

Part I of this manual.)Program costs Costs incurred and allocated by pro-

grams rather than by organizations. Programcosts should he those direct costs that are essen-tial to maintain the pYrogram. (See also directcosts.)

Program dPerinitioncthis manual.

Program structure. The hierarchical arrangement ofprograms that represent the- interrelationship ofactivities to goals and objectives The programstructure contains categories of activities with

See Part 1 and Fx14rit ID in

common outputs and objectives. Programs maycut across existing departments and agencies.

Property tax rate. See tax rate.Proprietary account. An account refledting the

assets and liabilities of the district.Prorating. The allocating of expenditures or

income from a single source to two or moreaccounts to show the correct distribution of.charges or income.

"Protested taxes. Tax money paid under protest andheld by the county auditor pending settlementof:the protest.

e

Purchase order. A document which, issued to avehdor, authorizes the delivery of specified mer-chandise or the performance of certain servicesand the making of a charge for them.

Real property. Property consisting of land, build-ings,_ minerals, timber, landscaping, and allimproveinents thereto.

Rebates. Abatements or refunds.Rqceipts. nonrevenue. Amounts received that

either incur an obligation that must be met atsome futuA date or change the form of an assetfrom property to cash and therefore decreasethe amount and value of school property.Money received from loans, 'sale of bonds, saleof property purchased from capital funds, andproceeds frem insurance adjmost of the nomevenue receipts

r(I.Pmt.e Aitiorl, to a-sets that 0,-) notincur an olligation that mist be met a* somefuture (late and di, twf 1 rtÌ II1 e e.i

i'roperty for oneyRedesignation of current year's

income or exprnditure items previously postedto one n"count and later determined to he moreproperly charged to a different account.

Rqind An amount paid back or r;-(lit allowed onaccount of an overcollection

Pgistrreci warrant 7i warrant that is registpred bythe county treasurer for future payment onaccount of present lack of funds and tht. is tohe paid with interest in the ordet of its rpgistrnfirm.

Rcgi.sters A listing of transactions of like kind thatmay he totaled .acid summarized for conveniencein posting: e.g.. payroll registers. warrant rrgis

teyq, and atfrit(hitle,E trilictet

I jij VII 7

Reimbursement. Cash or other assets received as arepayment of the cost of. work or services per-formed; or repayment of other expendituresmade for or on behalf of another governmentalunit, fund, or department. (See also refund.).

r\ Requisition. A document submitted initiating apurchase order to secure specified articles or ser-

. vices.Reserve. An amount set aside to.provide. for esti-

, mated future expenditures or losses, for working'capital, or for other specified purposes. t,

Reserve for encumbrances. reserve representingthe segregation of a portfion of a fund balance toprovide for unliquidated encumbrances. Sepa-rate accounts may be maintained for .current andprior year encUmbranCes.

Resources. All assols...ewned including land, build-ings, cash, estineted_ income not realized, and, incertain funds, bonds authorized but unissued.

Restricted funds. Monies the use of which is re-stricted by legarrequirements,

Revenue. Additidh to assets not accompanied byan obligation to perform service or deliverproducts.

7 roll ink cash fund A stated amount of moneyused primarily for emergency of small or sundryd i sb u-r se rn en ts and reimbursed periodicallythrough properly donmte ti ted ex renditures,which are summarized awl choyfird nsAccounting r.s..iaRificationc.

,/er and 1I.Ve 1t:1Y Tax iinuosed upon the sale andconsumption of goads and services It clri heimposed as a general tax nn the retail price of allgoods and services sold witlifii the school s) CtfTY1

jurisdiction with few or limited exemptions or as

a tax upoia the sale or consumption of selectedgoods and services. Separate accoTI.f S Tray bemaintained for general Sales taxes and fmtive sales taxes.

Sbedule ExplanAtory or supplementary state-ments that accompany the balance sheetother financial statements.

Sift-tired roll Assessed value of real property, suchas land, buildings, secured personal property, oranything permanently attached to land ac determined by each county assessor.

SPcurities. Bonds, notes, mortgages, or other formsof negotiable or nonnegotiable instruments

Self-contained classroom. A classroom in which af teacher usually instructs one group of students

in a majority of the instructional, programs for aschool year. Self-contained classrooms ale usu-ally found at the elementary-school level.

Serial annuity bonds. Notes or other evidences ofobligation in Bch the annual payment of prin2cipal and interest combined are approximatelythe same each year.

Serial bonds. Notes or other evidences of obliga-tion redeemable by installment, each of which isto be paid out of income of the year in which itmatures.

Shared revenue. Revenue levied by one govern-mental unit but shared, usually in proportion tothe amount collected, with another unit of gov-ernment or class of governments.

Short-term loans. A loan payable in five years orless but not before the end of the current. fiscalyear. (See also current loans.).

Site. The location of a school or a central adminis-. trative unit.

Snurce document. Any voucher or other data thatsupports an entry in the accounting records.

Crecial audit. An examination of the accountingrecords having a specific purpose. or a generalexamination in addition to of in extension ofthe usual examination.

crecifications. ,Those parti,,,lar qualities tr'tutiTetif products or services.

":1 rirmetits Formal written presentations settingforth financial irifftrmation. The term includpsexhibits. srhediilc.s. and written reports.qtr S'chi)c/ find Monies provided by statute tothe qtatr. Deparfenent of dti ation for distribu-tion to crl,,,11 d ,)II 9 prcrlirtrrminedformula,

Sion's. Goo& rail hnitri irl qt,tf tootm silhiPot torequisition.

Strident body fund A fund to control the receiptsand the di cbm gementc e f ti I t fiCSOCi:1 ti

activities..Vribsidiary account A related account that sup -

pnrts in detail the debit and credit summariesrecorded in a controlling account.

Subsidiary ledger A group of subsidiary accounts,the sum of the balances of which equal the bal-ance of the related controlling 9crotint

Subvention. Provision of assistance or financialsupport, usually from a superior governmentalunit.

Summary. Consolidation of like items for account-ing purposes.

Supply. A material item..of an expendable naturethat is consumed, wears out, or deteriorates inuse; or,one that loses its identity thrOugh fabri-cation .or incorporation into a different or morecomplex unit or substance.

Surety bond. A written promise to pay damage's orto indemnify against losses caused by the partyor parties named in the dwument through non-performance or through defalcation; e.g., asurety bond given by a contractor or by an offi-cial who handles cash or securities.

Surplus. The excess of assets cover liabilities.Suspense account. An account to which postings

are made temporarily pending determination ofthe proper account to be charged or credited.

Suspense clearing. An account that carries tempo-rarily pending charges Or credits to the properaccount or accounts to which they are to beposted.

Tax anticipation notes. Instruments issued tosecure monies borrowed in expectation ofreceipt of tax-funds.

Tax liens. Claims by governmental units uponproperties for which ta'xes lcrvied remain unpaid.

Tax rate. The amountunit of the tax base.

Mx rare limit. The maximum 7"tf*q 'fgovernmental unit may /..vy.

Tay redemption. Proceeds fr-mdelinquent property.

Talc relief subrentions Funds ordinarily paid tocompensate for taxes loci hernuRe of tax reliefmeastyA.

Tax. roll. The list showing the amount of taxeslevied against each taxpayer or property. .

Taxes. Compulsory charges levied within its bound-aries by a governmental unit against the incomeor property of persons, natural or corporate. to'support its activities.

Taxes receivable. An asset account representing theuncollected portion of taxes levied.

Term bonds. Bonds of the same issue maturing at aspecified time or for a specified period.

(f tax f,tatpd ITl leyniq of

t that

the cal- tnx

Test check. The verification of selected items onthe assumption that those selected are represen-tative of the entire group from which they areselected. If no errors are found, the uncheckeditems in the group are assumed to be correct.

Trade discount. A reduction of the list price, usu-ally expressed as a percent and related to volumeof business transacted. (The term is not to beconfused with cash discount.)

Trailer coach fees. Assessments collected fromowners of trailer homes, which constitute per-sonal 'property used in lieu of taxable realproperty.

Transfer. Interdistrict or interfund payments orreceipts not chargeable to expenditures or cred-ited to income. Certain budget revisions areoften referred to as transfers.

Trial balance. A list of the balances of the accountsin a ledger kept by double entry, with the debitand credit balances shown in separate columns.If the totals of the debit and credit columns areequal or if their net balance agrees with a con-trolling account, the ledgers from which thefigures are taken are said to be "in balance."

Trust fund. A fund consisting of resources receivedand held by the school district as trustee to beexpended or invested in accordance with theconditions of the trust.

Mition An amount charged for educntionnl gervices provided to a student.

Lappropriated fund balance. The portion of afund balance not segregated for specific purpose*. All assets and estimated income availablefor appropriation are credited to the accotirand General Reserve: budgeted nppoppekotiontand other obligations are d-bited. The net valueof' the account rerresentq the Imat`Protnisedfund balance.

152

Unencumbered balance. That portion of an appro-priation or allotment not yet expended or obli-gated.

Unit cost. The total expenditure for,9a product,program, or service divided by the total quantityobtained or some other quantitative measure;e.g., total expenditure divided by number of stirdents equals cost per student.

Unrealized income. Estimated income less incomereceived to date; also, the estimated,e- .ncorne forthe remainder of the fis61 year

VII - 9

Unsecured roll. Assessed value of personal propertyother than secured property.

Voucher. Any document that supports or verifies acertain transaction.

Voucher warrant. A form: embodying a warrantand "voucher in one. document.

Warrant. A written order drawn by the governingboard or its authorized officer(s) or em-ployee(s), approved by the county superin-tendent of schools, and allowed by the countyauditor, directing the county treasurer to pay aspecified amount to a designated payee.

Warrants payable. The face amount of warrantsoutstanding and unpaid.

0

VII- 10

Withholding. The process of deducting from a sal-ary or wage payment an amount, specified bylaw or regulation, representing the estimatedfederal, or state income tax of the individual thatthe employer must pay...to the taxing authority.

Work in process. An asset representing the value ofpartially completed work.

Work order. A written authorization for the per-formance of 'a particular job containing a de-scription of the nature and location of the joband specifications for the work to be performed.Such authorizations are usually assigned jobnumbers, and provision is made for accumulat-ing and reporting labor, material, and othercosts.

Part VIII

Data Processing Terminology

a.

Alpha. The term used to -indicate letters of thealphabet as opposed to numbers.

Alphandmeric. A term used to indicate a combina-tion of letters, numberS; and special symbolssuch as punctuation or mathematical notation.

Automated data processing (ADP). The continuousintegrated operation of data processing in whichautomatic machines are used; different frommanual data processing.

Batch. A controlled group of data gathered to-gether for processing or balancing.

Batch processing. A technique by which items tobe processed must be coded and collected intogroups before processing. ,

Binary number system. An internal numberingsystem incorporated by computers which uses abase of two, expressed as 0 or 1 (as opposed tothe decimal system, which uses a base of ten).

Block diagram. A graphic presentation of a system,computer, or program in which selected portionsare represented by boxes and interronlicrtinglines. (See also flow chart.)

Bug, A mistake, malfunction, or omission in thedesign of a program or computer.

By- product information. Data, which, as a result ofbeing tabulated in a particular fashion or as aresult of being processed for other than the areaof specific design, becomes available for existingrecords created for an entirely different purpose.

Card; punch. A machine that encodes data into tab-ulating cards in the form of a pattern of roundor 'rectangular holes; card punches may be acti-vated by a computer or from a keyboard. (Seealso key punch.)

Cathode ray tube (CRT). A device similar to a tele-vision screen upon which data can be stored ordisplayed.

Central processing unit (CPU).. That portion of acomputer containing the arithmetic, logic, con-trol, and in some - cases, main storage units.

...

Character reader. A machine that optically scansalphabetic, numeric, or special characters pre-viously entered on a document (usually by high-speed printer, typewriter, or imprinter).

Code. A system of rules or signals for using a set ofcharacters to represent data or instructions.

Collating. Comparing' and 'merging two or moresimilarly sequenced groups- of items into onesequenced group. ..

Common Business-Oriented Language (COBOL). Acomputer programming language using basicEnglish phrases designed for business applications.

Common language., A single code used by severaldevices (for examfile, typewriters, cnIeulators,and transmitters) nintIlif rtilted by diffetpntcompanies.

(.mpilatio,7. Preparation of a machine languageprogram by translation of each symbolic codedinstruction intoinstructions.

Data. Basic elements of information lact.F.. numbpeurstey symbolsetterq, or sy I, 1 s with or Witt-1mA :1 rmtl

Data collection. The act of bringing data from oneor more points to a central point.

Data communication. The transmission of datafrom one point to another.

Data processing. A series of lanned actions andoperations upon data to ac 'eve a desired result.

Data processor. A group.of peop and/or machinesorganized and acting together to proces data.

Debugging. Finding and removing the mistakesfrom the design of a program or computer.

two (T 111(ty rrinctlitIP innp_nage

Electronic data processing (EDP). A term referringto equipment that processes data by electronicmeans; i.e., analog and digital computers.

Flow chart. A graphic representation of the majorsteps of work in process. (See also block diagram.)

Fortran (FOR mula TRANslation). A programmingsystem that converts mathematical statementsinto computer language.

Hard copy. Any printed copy: of machine output;e.g., repOrts, listings, documents, or other copyin the form printed out by a computer.

Hardware. The physical equipment or deviceswhich together comprise a computer and associ-ated- data processing machines; the mechanicalor machine portion of a computer system.

InforMation. Facts and intelligence that resultfrom data processing operations.

Information retrieval. The methods and proceduresfor recovering specific information from storeddata.

Input. Transfer of external information into thecentral processing unit or ifito an intermediatedata-processing storage device.

Inquiry station A remote terminal device, such asa typewriter keyboard, from interrogationof the enrc,nrc. If 9 CIIIITIlitrtc St' 1 Ige c'IT, 1"made.

r< 1. pvirch A card punch .%, li, Ite 'I 1, l+ ht111.1

(See alc.,) aid rfr 7( /7 1

presenri - and co,,nnunifikumkr Cycteyn for

Ina-hhles.i?(- pt 177: twit (I 1.111 111, 11. ..1 i,;.. `,;

of outwit rT;TOPTS

11,rv7r I( dis I A flat, cirnilar plate VV;f1' f, MT," rthat can he maymeti7e,1 t'+ store data

11,1velic lap,' A plastic o, mylar strip -oated ifha metallic.' oxide upon whi.-1) culrf, cnt, 1,, t,corded in magnetized spots.

iffirk 'wade, r A machine that optically scans marksentered (usually manually) in specific positions on a form and assigns valiie. s based nn curbpositions.

Mark sense. Pencil strokes generally entered cmbubbles n a .punch card that pan he read PIP('trically y a mAchine.

Optical character recognition (O(P), A generalterm referring to the technimle of using ma

VIII 2

chines for optical reading of characters, symbols,or marks from a printed input document.

Optical scanner. A device that optically. readsprinted or written data, which is stored orentered into a computer.

Output. Information transferred from internal stor-age to output devices to produce cards, apes,business forms, reports, and so forth.

Paper tape. A ribbon-like strip of paper, one inchor less in width, used as a means of recordingdata in the form of-coded perforations.

Peripheral equipment. The auxiliary machines thatmay be placed under the control of the centralcomputer; e.g., card readers, punches, and high-speed, printers.

Printdut. Display of computer processed informa-tion as hard copy.

Program. A series of instructions that tell the com-puter in minute detail how to process data.

Programmer. A pdrson who prepares problem-solving procedures and flow charts and who mayalso write and debut picograms-

Random access A storage technique in which thecomputer can find one hit of data as quickly asany other, regardless of its specific location instorage. without requiring a sequential storage.al /Mi p1orev-cinQ A method of processing datain which the machine begins to flutction at therrt(inent of initial input co that there is virtl.wlf

paseage of time hetWeen inaniry and eS1.111

written progrriur anc-1 ro11th1, t"extend the enpahilit+e of

'1,1( o" 1i,"70'171 Aril ""taken for 110:-esking.

he reteatipn of data for flitnie retrieval7 ci ,11//////c A program designed to show w1,,111rr

of not a ei,unpliteT is functioning properly.'',:origiwrit Prwilletivity based on all 'facets of anoperation: e.g., a computer that can read. write,and compute Sinviltaneoush would have a highthroughput rating Processing through the system.

chariiik I/sing a computer to process multiplerequests by independent users and providingresponses rapidly so that each user feels that thecomputer is entirely at his disposal.

I 'Nit record equipmeirt Computerized auxiliary

hi, 11. ,11.11

equipment such asinterpreters.

A77995 300 7 7R 3n,i

card renders, collators. and

1)PN:if-zing .7., n- y111'1'1.'1111 (Iran

77 717 0.1 1017 7019 7 78 $NA