The Big Picture of the Account Code System for your 21st Century BudgetsBy Londa Schwierking January 21, 2014

What is USAS Coding

• Is USAS coding a big deal? It’s just a bunch of codes we use that separate the expenses. Why do we use numbers for codes? Why don’t we just code expenses to a wording system of salaries, benefits, services, supplies and equipment? Why not keep it simple? We have so much complicating our jobs in schools and we would just like something to be easy.

USAS coding is a big deal

• Coding is a big deal. Up until 1977, all expenses were coded to salaries, benefits, services, supplies and equipment and it became a monster in big districts. Searching for a record became a nightmare.

• USAS coding was implemented by the State Auditor’s office in 1977 . It was set up to be a 28-digit coding system in anticipation of a basic software program that would integrate into data processing system. It was modeled after the National Uniform Accounting System established in the early 1970’s.

USAS codes are unique

• The State Auditors office developed the system so that schools could categorically separate their expenses and be able to track these expenses.

• Recognizing that each school district in the state functions differently, the State Auditors office came in to each district to set up codes in 1977 so that each district could remain its unique self, and districts should not compare how they code certain items.

USAS codes are in a manual

• If you look at the USAS system as a whole, you can view every aspect of a school district’s operational system. If we put that into context, you should be able to see where each piece of the system fits into it’s place.

•

Link to State Auditor-USAS Manual

http://www.auditor.state.oh.us/services/lgs/publications/LocalGovernmentManualsHandbooks/uniform_school_accounting_system_user_manual.pdf

How the codes workIf you look at the USAS coding system as a whole, the “Method to the Madness” has a pattern: The coding system includes:

Fund ( 3 digits) mandatory code

Function (4 digits) mandatory code

Object ( 3 digits) mandatory code

Special Cost Center (4 digits) optional code

if separating cash funds mandatory code

Subject (6 digits) optional code

Operational Unit ( 3 digits) optional code

Instructional Level (2 digits) optional code

Job (3 digits) optional code

Fund- Who’s paying for itFunction- What type of expense is it

If we look at the big picture of USAS Coding System :– The most important fund which also includes most of a

school’s expenditures, the general fund is #1 or 001, the and radiates out from there (funds are three digits)

– The most important function, over 50% of a school’s expenditures are spent in this area, is in the area of instruction, which is why it is the 1000, then 2000 is support services, 3000 community services, 4000 extra-curriculars, etc. ( functions are four digits)

Object - what is your expense?

• The most important object, which makes up about 50% of a school’s general fund expenditures is for salaries, which are 1xx. This is why, during district budget cuts, staff must be cut to make a significant impact (object codes are three digits)

• The next most expensive object code is 2xx, which total the benefits to those salaries, make up about 20% of a school budget.

• If a school reaches 80% of their budget in salaries and benefits, that it puts a school budget in the danger zone, as only 20% of the budget is left for all else.

Special Cost Center –used to track expenses

–Special cost centers are used to track program expenses (four digits)

–Special costs centers within the funds that are used to track programs need to begin with a number less than 9xxxx

–If you want to create a separate cash account in a fund, then the special costs center should begin with a 9xxx.

–This is important in federal grants in separating grant years of each fund.

Subject – should it be separated by subject?Operational unit – should it be separated by

building/department?

• Subject codes are used for secondary teachers salaries and textbooks only. You will not need to use these codes.

• Operational units are used to separate expenses by building. You will not need to use these codes

Instructional level- do we separate by grade?Job level – do we separate for any other

reason?

• The Instructional Level is used to show grade level for elementary teachers salary. You will not use these codes

• The job is for whatever the district wants it to be and is optional. You will not use these codes.

• Now you know how the 28 digit system is set up, so how does it work?

Budget grid•    

 

Let’s Make Sense of the Codes

Let’s try an example

• After school tutor salary – • What fund is our expense coming from? 21st

Century Grant has a code of 599• What school function are we using? the

function says it is instructional, look under the codes in the USAS manual, 1270 is for disadvantaged/at risk youth, so that fits.

• What are we buying – the object code is a salary, and certificated is 111

Let’s try an example

• Will this need a special cost center? Yes, because Title grants go by fiscal year (July 1 through June 30), so we need to separate FY14’s expenses from FY15’s expenses due to separate grant funds in each year.

• For the FY14 grant, there may expenses for both years in FY15. (i.e. an FY14 purchase order issued before June 30, 2014 but paid after July 1, 2014 is paid in FY15. Most schools try to create a special cost center that reflects the year of the grant, thus 9014.

• You would probably not use a subject code, OPU, an instructional level or job code.

Let’s look at purchased services

• What fund is our expense coming from? 21st century, Fund 599

• What function are we using? If it is professional development or other support services, it will probably be in a 2xxxx function code.

• What are we buying – the object code is a service code 414 for staff services and 415 is for management services , 425 for rent/leases, 432 for professional development and then goes on into utility services.

Let’s try equipment

• Let’s buy some ‘tablets’ for students• First the fund will be 599• The function will be for student instruction, 1xxx• The object code – When do we use 5xx object codes and

when do we use 6xx object codes? Is there a dollar value assigned with the cut off to count it as a supply vs. equipment? Whether you count it as a supply or equipment depends mainly on how you are going to track it for insurance purposes. You may also look at the fact that 5xx supplies would be consumed or disposed when used. 6xx equipment codes usually would have repairs attached to it or maintenance agreements.

What about your grants

• Do you need help with how to code your specific grant issues???

• Let’s hear some great ideas for grants and what codes you need help with!!!!

• We are here to support each other!!!

londa.schwierking@ education.ohio.gov

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