Georgia financial accounting handbook for local school systems [1983]

Werner Rogers State Superintendent ofSchools

Georgia Department of Education
Office of Administrative Services Twin Towers East
Atlanta, Georgia 30334-5050

H. F. Johnson Associate State Superintendent

DATE: August 18, 1988

TO:

HOLDERS OF GEORGIA FINANCIAL ACCOUNTING HANDBOOK FOR LOCAL SCHOOL

SYSTEMS

FROM:

James C. Tatman Financial Review Section
1566 Twin Towers East Atlanta, Georgia 30334-5050
Telephone (404) 656-2441

Enclosed is material for the GEORGIA FINANCIAL ACCOUNTING HANDBOOK FQR LOCAL SCHOOL SYSTEM. You should insert the following pages:

INSERT

65-1/65-3 (July 1988) 66-1/66-2 (July 1988)

I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I

Werner Rogers
State Superintendent of Schools

Georgia Department of Education
Office of Administrative Services Twin Towers East
Atlanta, Georgia 30334-5050

H. F. Johnson Associate State Superintendent

DATE: August 8, 1988

TO:

HOLDERS OF GEORGIA FINANCIAL ACCOUNTING HANDBOOK FOR LOCAL SCHOOL

SYSTEMS

FROM:

James C. Tatman Financial Review Section 1566 Twin Towers, East Atlanta, Georgia 30334-5050 Telephone (404) 656-2447

Enclosed is material for the GEORGIA FINANCIAL ACCOUNTING HANDBOOK FOR LOCAL SCHOOL SYSTEMS. You should remove and insert pages as follows:

REMOVE

INSERT

87-1/87-11 (7/ 1/86)

87-1/87-10 (7/88)

Georgia Department of Education
Memorandum

Date:

May 22, 1987

To: From:

Superintendents, Regional Directors RESA Directors James C. Tatman

Subject: GFAH & FY 88 Budget Revisions Enclosed are the latest revisions for the GEORGIA FINANCIAL ACCOUNTING
HANDBOOK, pages 3A-7 &8 and also page 2.2 of DE 0046 FY 88 Budget.
Please insert these revisions in their perspective places. As always, if we can be of any assistance, please call us at (404) 656-2447. JCT: jd Enclosure

GEORGIA FINANCIAL ACCOUNTING HANDBOOK
FOR LOCAL SCHOOL SYSTEMS
PART I
FINANCIAL ACCOUNTING - CLASSIFICATIONS AND STANDARD TERMINOLOGY
GEORGIA DEPARTMENT OF EDUCATION ATLANTA, GEORGIA

JULY 1, 1986

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GEORGIA FINANCIAL
ACCOUNTING HANDBOOK PART I

FOREWORD TO THE GEORGIA FINANCIAL ACCOUNTING HANDBOOK - PART I
There 1s a need to def1ne some of the statutory funds local school systems are requ1red to keep as Spec1al Revenue Funds 1n accordance w1th the Nat10nal Counc1l on Governmental Account1ng ' s statement I. These funds are:
410 Leave Fund 420 Instruct10nal Med1a Fund 430 Instruct10nal Equ1pment Fund 440 Compensatory Educat10n Fund 4&0 Post Secondary Vocat10nal Educat10n (AVTS) Fund 470 E.C.I.A. Chapter 1 Fund 480 E.C.I.A. Chapter 2 Fund 490 Educat10n for the Hand1capped T1tle VI-B Fund 510 Adult Educat10n Fund 520 Psychoeducat10n Center (SED) Fund 530 G.L.R.S. Fund 540 All Other Spec1al Revenue Funds

JULY 1, 1986

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GEORGIA FINANCIAL
ACCOUNTING HANDBOOK PART I

TABLE OF CONTENTS (PART I, GEORGIA FINANCIAL ACCOUNTING HANDBOOK)

CHAPTER 1: INTRODUCTION

DESCRIPTION

BEGINNING PAGE
1-1

CHAPTER 2: USES OF THE ACCOUNT CLASSIFICATION SYSTEM

2-1

CHAPTER 3: ACCOUNT CLASSIFICATIONS (PRIOR TO 7/1/86)

3-1

CHAPTER 3A: STATE CHART OF ACCOUNTS CLASSIFICATIONS AND

3A-l

DESCRIPTIONS (EFFECTIVE 7/1/86)

CHAPTER 4: IMPLEMENTING THE ACCOUNT CLASSIFICATION SYSTEM

4-1

CHAPTER 5: COST ACCOUNTING FOR EDUCATIONAL PROGRAMS

5-1

CHAPTER 6: ACCOUNT CLASSIFICATION DESCRIPTIONS (PRIOR TO 7/1/86) 6-1

CHAPTER 7: REVENUE AND EXPENDITURE ACCRUALS

7-1

CHAPTERS 8-24: THESE NUMBERS RESERVED FOR POSSIBLE FUTURE CHAPTERS IN PART I, GEORGIA FINANCIAL ACCOUNTING HANDBOOK

NOVEMBER 6, 1985, REVISION MARCH 15, 1985, ISSUE

PAGE 0-3

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART I

CHAPTER 1

INTRODUCTION

Part I of the Georgia Financial Accounting Handbook for Local School Systems

is an adaptation of Financial Accounting for Local and State School Systems,

U.S. Department of Education, June 1980. Part I is entitled Financial

Accounting-Classifications and Standard Terminology.

During the period 1978-1980, Robert Davis Associates, an Atlanta based

management consultant firm, developed the National Handbook under contract with

the U.S. Department of Education, with the cooperation and guidance of the

Council of Chief State School Officers, the National School Boards Association,

the American Institute of Certified Public Accountants, the Association of

School Business Officials of the U.S. and Canada, the Municipal Finance Officers

Association, and other organizations.

Of importance in the National Handbook effort was the definition of account

classifications, which provide meaningful financial management information,

while conforming to generally accepted accounting principles (GAAP). GAAP are

uniform minimum standards of and guidelines for financial accounting and

reporting which were set forth in the National Council on Governmental

Accounting's Governmental Accounting and Financial Reporting Principles,

Statement 1, published by the Municipal Finance Officers Association, Chicago,

Illinois, March, 1979.

The National Council on Governmental Accounting (N.C.G.A.) in 1934, when it

was known as the National Committee on Municipal Accounting, began the work of

formalizing accounting, auditing, and financial reporting standards for

governmental units under the sponsorship of the Municipal Finance Officers

Association (MFOA). JULY 1, 1983

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GEORGIA FINANCIAL
ACCOUNTING HANDBOOK PART I

INTRODUCTION (CONTINUED)
The name change in 1949 to the National Committee on Governmental Accounting emphasized that the authoritative pronouncements apply to states and all types of local governments. The Committee's last publication was Governmental Accounting, AUditing, and Financial Reporting in 1968. The National Council is the successor to the National Committee.
The NCGA was established in 1974 through the sponsorship of the MFOA as a continuing body. To assure that principles and procedures for governmental accounting are in conformity with generally accepted accounting principles, the NCGA maintains close liaison with the Financial Accounting Standards Board and the American Institute of Certified Public Accountants.
In the publication Standards for Audit of Governmental Organizations, Programs, Activities, and Functions, 1981 Revision. U.S. General Accounting Office. Elmer B. Staats, Comptroller General of the United States. in defining "generally accepted accounting principles" defines them as "rules and procedures established by authoritative bodies or conventions that have evolved through custom and common usage. The National Council on Governmental Accounting's Statement 1. IGovernmental Accounting and Financial Reporting Principles' is generally acknowledged as the authoritative publication in the area of accounting for state and local government units. II
In the development of the National Handbook. four regional meetings were held to provide an opportunity for input from state and local personnel. At the regional meeting in Atlanta. seven staff members from the Georgia Department of Education and local school systems in Georgia attended and participated.

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GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART I

INTRODUCTION (CONTINUED)
During Fiscal year 1980. Federal funds were made available through the U.S. Department of Education to the States interested in implementing/adapting the national handbook. The State Board of Education applied for and received a grant of $20.000 which was used to: (1) contract with Robert Davis Associates to assist Department of Education staff and the State Superintendent's Financial Accounting Advisory Committee in preparing an adaptation which would meet Georgia's needs; and (2) to pay travel expenses of the Advisory Committee.
Part II of the GEORGIA FINANCIAL ACCOUNTING HANDBOOK. which will be entitled Principles of Public School Accounting (Methods and Procedures) will be completed and issued later. It will illustrate the use of accounting principles and the account classification system for recording and reporting local school system's accounting activities.
Part III is also being completed a chapter at a time and issued as completed. It is entitled Financial Management.
Department of Education staff members for the development of the Handbook wish to express their appreciation to the members of the Financial Accounting Advisory Committee for the direction and guidance they provided to the project. Their services were invaluable.
The staff also wishes to express its appreciation to the local school systems. employers of the members of the Committee. for having contributed the time of Committee members to the project.
The Financial Accounting Advisory Committee (See Appendix C) consists of local superintendents. assistant superintendents. fiscal/accounting officers. and the Director of Financial Audits. Georgia Department of Audits and Accounts.

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GEORGIA FINANCIAL
ACCOUNTING HANDBOOK PART I

INTRODUCTION (CONTINUEQl
This handbook presents a uniform financial accounting and reportinug structure for public elementary and secondary schools in the State of Georgia.
This handbook is consistent with the U.S. Office of Education publication,
Financial Accouning for local and State School Systems. Financial Accounting is
a part of the State Educational Records and Reports Series maintained by the
National Center for Education Statistics. Appendix D contains a complete list
of these Handbooks.
PURPOSE OF THE MANUAL
The GEORGIA FINANCIAL ACCOUNTING HANDBOOK FOR LOCAL SCHOOL SYSTEMS is designed to serve four primary purposes:
1. Provide a structure to permit Local Education Agencies (LEA's) to demonstrate prudent use of funds.
2. Supply the means for collecting the financial data necessary to examine comparability of eductional outcomes at the local level.
3. Meet the many recent demands of the educational community for accoutability in terms of educational programs.
4. Bring the Georgia Manual into conformance with generally accepted accounting principles as recently restated by the National Council on Governmental Accounting.
Of primary consideration to any public agency is the demonstration of
prudent expenditure and control of public funds. The use of certain
classifications contained in this handbook permits the design of a local school
district accounting system which will meet this consideration.

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GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART I

INTRODUCTION (CONTINUED)

An additional consideration to both local and state legislative bodies, as

well as the public, is the desire for comparability of information about

education. The classifications contained in this manual provide mutually

exclusive, discrete dimensions and categories which may be used to describe

financial transactions. The logic of the classification system improves the

chances of correct coding and as a result improves comparability of reported

data. The adoption of the manual by LEA's in Georgia will put them in harmony

with most of the LEA's throughout the country since Financial Accounting will

serve as the basis for LEA financial accounting throughout the nation.

Past accounting systems were limited mainly to three dimensions: fund,

function, and object. Their use in accounting systems tended to provide

measures of resource uses in the functionl areas of the educational enterprise.

Expansion to additonal dimensions of classification, not financial in nature and

taken from other handbooks in the U. S. O. E. series, permits LEA's to better ~
manage programs. This approach places the emphasis on relating resources to the

product of educational programs and thus demonstrates accountability and

provides the basis for productivity measures.

CRITERIA FOR ITEMS OF INFORMATION

The basic criteria used in determining items and classifications for inclusion in this manual are:

1. The items, accounts, and categories of information should provide the basic framework fundamental to a comprehensive financial management system.

2. The manual should serve all sizes and types of LEA's.

3. The categories of accounts should be both contractible and expandable,

enabling all LEA's to adapt to and support various financial management

information systems.

GEORGIA FINANCIAL

ACCOUNTING HANDBOOK

JULY 1, 1983

PAGE 1-5

PART I

INTRODUCTION (CONTINUED)

4. Data elements should be additive into needed categories for purposes of reporting and comparing at the local, State, and Federal levels.

5. The manual should conform to generally accepted governmental accounting principles.

6. The manual should include the categories necessary to provide full disclosure of financial information.

7. The categories included should provide an adequate audit trail.

CONFORMANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES

A primary emphasis of this manual is to define account classifications that

provide meaningful financial management information to its users. As part of

this emphasis, this manual is written to conform to generally accepted

accounting principles (GAAP). GAAP are uniform minimum standards of and

guidelines for financial accounting and reporting. Adherence to GAAP implies

that LEA financial reports contain the same types of financial statements for

the same categories and types of funds and account groups, thereby enhancing the

comparability of LEA financial reporting. GAAP have recently been restated by

the national Council on Governmental Accounting (NCGA). In addtion, the NCGA

has updated its guidelines, Governmental Accounting, Auditing, and Financial

Reporting (GAAFR), in order to provide guidance for governmental accounting and

financial reporting. This manual adheres to GAAP as included in the revised

GAAFR.

The twelve GAAP are modified for LEA's and summarized below:

1. Accounting reporting capabilities. An LEA's accounting system must be capable of producing financial reports in conformity both with GAAP and with legal requirements if the two are different.

2. Fund accounting system. The LEA accounting system must be organized and operated on a fund basis.

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GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART I

INTRODUCTION (CONTINUED)
3. Types of funds. Only seven types of funds should be used by LEA's. These funds are listed in Chapter 3 and further described in Chapter 6.
4. Number of funds. An LEA should establish and maintain the least number of funds possible.
5. Accounting for fixed assets and long-term liabilities. Fixed assets and long-term liabilities not related to specific proprietary funds or trust funds should be accounted for in the general fixed assets and general long-term debt account groups, respectively.
6. Valuation of fixed assets. LEA fixed assests should be recorded at cost or estimated cost. Donated fixed assets are recorded at fair market value at date of donation.
7. Depreciation of fixed assets. Depreciation should not be recorded in the accounts of the governmental funds. If depreciation in governmental funds is required for cost accounting purposes, it may be recorded in the general fixed assets account group. Depreciation of proprietary fund fixed assets should be recorded in the accounts of the fund.
8. Accrual basis in governmental accounting. The accrual basis of accounting should be used for proprietary funds, non-expendable trust funds and pension trust funds. The modified accrual basis of accounting should be used for governmental funds and expendable trust funds.
9. BUdgeting. budgetary control. and budgetary reporting. Every LEA should adopt annual operating budgets and certain of those budgets should be reported in the financial statements.
10. Revenue, expenditure. transfer. and expense account classifications. An LEA should provide for the classification of revenues, expenditures, and expenses into certain specific categories. Interfund transfers and the proceeds from general long-term debt should be classified separately from revenues and expenditures or expenses.
11. Common terminology and classifications. An LEA should consistently utilize terminology and classifications common to the funds maintained.
12. Interim and annual financial reports. A comprehensive annual financial report should be issued by every LEA. Intertim financial statements should be prepared to facilitate management control of financial operations. These may be made available externally.

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GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART I

INTRODUCTION (CONTINUED) In keeping with GAAP. this manual's content and format have been based on double entry and the accrual or modified accrual basis of accounting.
ORGANIZATON OF THE MANAUAL The development and purposes of this manual are discussed in this chapter.
In Chapter 2. uses of the account classification system are illustrated. In Chapter 3. the actual account classifications are presented. Chapter 4 discusses methods for constructing the LEA char of accounts using the classifications provided in this manual. and offers suggestions about implementation in the LEA. Chapter 5 discusses cost accounting for education programs. Definitons and explanations of these same accounts are contained in Chapter 6.

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GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART I

CHAPTER 2
USES OF THE ACCOUNT CLASSIFICATION SYSTEM
This manual is designed to serve a multiplicity of purposes, and to reconcile these purposes in a set of financial classifications usable by the LEAs of Georgia. The purposes of this chapter are to: (1) describe the need for and advantages of the account classification system contained in the manual, (2) define the system's framework envisioned in the coding structure, (3) clarify the multiple uses that can and should be made of that coding structure, and (4) help the reader understand what may appear to be an imposing system.
EDUCATIONAL ACCOUNTABILITY
Changes are occurring rapidly on the education scene, and there is no reason to expect that this rapidity of change will diminish. One result of this atmosphere of change is an increasing amount of pressure on the school financial accounting and reporting system.
Many new and diverse programs have recently been highlighted in the operation of the modern school system. Some examples are special education of the handicapped. establishment of minimum education competencies, improved use of energy resources. greatly enlarged child nutrition programs, and school finance equalization. All of these programs arise from the public consciousness of the need to improve educational opportunities for all of our children; and all of them cost money. Pressures arise from the fact that the American public is less willing now to authorize and pay for new programs whenever they are proposed. Legislators, aware of this public mood. are more careful in authorizing expenditures for education.
One of the significant changes occurring as a result of these pressures is the increasing interest of Federal and State governments in the funding of education. Earliest pressure on school finances is felt by the local tax system, and as local fund resources reach their limits. the higher levels of government tend to take over. With increasing involvement by States and the Federal government comes an increased demand for accountability. This accountability is delivered through the financial and other reports.
Concurrently, the demand for changes in accounting techniques throughout all areas of government - the demands for full disclosure of financial activities. clearer presentation of the results of operations, full accountability, and improved comparability of reported information are impacting the school accounting system.
All of these pressures are leading to a need to improve governmental financial accounting and reporting standards. Hence, the need to produce this updated State standard for educational financial reporting.

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GEORGIA FINANCIAL
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USES_OF THE ACCOUNT CLASSIFICATION SYSTEM (CONTINUED)
USI:.RS OF THE LEA FINANCIAL REPORTS
Educational accounting and financial reporting systems must satisfy a number of objectives simultaneously. To quote GAAFR: ". . . governmenta 1 accounting exists for the purpose of providing complete and accurate financial information, in proper form and on a timely basis, to the several groups of persons responsibl~ for, and concerned with, the operations of governmental units and agencies."
The groups most interested in the output of the financial reporting system are; school administrators, school boards, State legislative bodies, creditors, and the general public, including taxpayers.
School Administrators and Other EmplQYfes
First and foremost, the account classification system is used by school administrators. Administrators must rely on financial reports for evaluation of past performance, to aid in day-to-day decision-making and to inform the general public.
Budgeting, an important managerial tool for the public school administrator, relies upon correct and properly classified accounting information. This manual's expenditure dimensions offer the administrator a variety of methods for budgeting and permit local judgment about the most appropriate technique. Additionally, the accounting system satisfies the administrator's obligation to ensure compliance with the legal, regulatory and fiduciary responsibilities of his position of pUblic trust. The manual is designed to meet these overlapping requirements.
School Boards
School boards have both a responsibility and an intense interest in the operation of the school system. The school board is responsible for establishing policies and for overseeing and evaluation the administrator in carrying out these policies. For these purposes, school boards need timely warning of the development of situations that require corrective action as well as information that serves as a basis of judging both the efficiency of the administration and its effectiveness in complying with policies and restrictions. Some of this information can be provided by general purpose financial reports. Comparable information obtained about other LEAs also is needed as a basis for comparison.

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USES OF THE ACCOUNT CLASSIFICATION SYSTEM (CONTINUED)
Congress and State Legislative Bodies
The State legislature provides a portion of the resources for the operation of LEAs in Georgia. Accordingly, legislators need information on the school's operations as a basis for deciding whether to commit additional resources, and how much. Additionally, governmental units need cumulative information (in compatible format) about the operations of groups of LEAs in order to formulate funding policies. To this end, legislators are interested in such matters as:
the ways in which local, State and Federal programs interact within specific operational areas.
profiles of school finance structures as related to tax resources.
the impact (and cost) of programs resulting from specific legislative initiatives.
Hence, characteristics of the accounting and reporting system of interest to State legislators are comparability of data, ability to achieve a variety of classifications, and timeliness in reporting.
Creditors and Potential Creditors
In governmental accounting, creditors are considered to include bondholders and prospective bondholders, commercial banks, vendors, and others who have extended credit, or who are considering the extension of credit, to the LEA. Typically, they would be interested in the financial position of the organization, its operating performance, and its likely sources and uses of funds as indications of the probability that the invoices, bonds or loans will be paid in full and on time.
The General Public
A school board represents the interest of its constituents (taxpayers, the general public, etc.). The constituents need to check on how well the school board represents their interests. In a general way, the interests of constituents are similar to those of resource providers; they want to know the nature of the school system's activities and how effectively and efficiently it is managed.
This manual's account classification system is designed to enable LEAs to produce the financial reports necessary to better meet all of these potential uses.

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USES OF THE ACCOUNT CLASSIFICATION SYSTEM (CONTINUED)
WHAT IS THE ACCOUNTING SYSTEM?
What is the accounting system? How does it go about serving the diverse needs of its users? The accounting system is that combination of people, equipment, forms, methods and procedures which are organized to record financial activity and to display that activity in the financial reports. A primary purpose of the accounting system is to produce financial information organized in various ways for various uses.
The Financial Reports
The financial reports necessary in an LEA can be thought of as being organized into two major grouping: internal and external. Some examples of the internal reports include:
Comparison of budgeted vs. actual revenues and expenditures
cash flow projections
building operation and maintenance cost, by building
the expenditure accounts, showing activity during the last reporting period
The external financial reports are those reports produced by the LEA to satisfy the needs of the various users who are not a part of the LEA. There are a variety of types of external reports defined by the NCGA in Statement 1 including the comprehensive annual financial report, the external general purpose financial statement, and the condensed summary financial data among the external reports. With regard to the first two types of reports Statement 1 says:
"The comprehensive annual financial report is the governmental unit's official annual report and should also contain introductory information, schedules necessary to demonstrate compliance with finance-related legal and contractual provisions, and statistical data.
"Governmental units may issue the general purpose financial statements separately from the comprehensive annual financial report. These may be issued for inclusion in official statements for bond offerings and for widespread distribution to users requiring less detailed information about the governmental unit's finances than is contained in the comprehensive annual financial report.

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GEORGIA FINANCIAL
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USES OF THE ACCOUNT CLASSIFICATION SYSTEM (CONTINUED)
"The major difference between the general purpose financial statements and the other statements in the comprehensive annual financial report relate to the reporting entity focus and the reporting on finance-related legal and contractual provisions that differ from GAAP. The comprehensive annual financial report includes (1) both individual fund and account group data and aggregate data by fund types, together with introductory, supplementary, and statistical information; and (2) schedules essential to demonstrate compliance with finance-related legal and contractual provisions. The general purpose financial statements present only aggregate data by fund type and account group, together with notes to the financial statements that are essential to fair presentation, including disclosures of material violations of finance-related legal and contractual provisions and other important matters that are not apparent from the face of the financial statements."
Examples of the external general purpose financial statements are included in Appendix A.
Other external reports generally are of a special purpose nature. They may include such reports as:
general financial/statistical summaries for consideration of legislators
specific reports of certain revenues and expenditures by program for use by the funding source(s).
program cost reports
The Accounting System
The accounting system is the means by which financial data are captured during actual operation of the LEA, recorded in the books of account, and then analyzed to produce the various kinds of reports needed. The account classification structure is the means by which the raw data can be coded to facilitate their accumulation in the categories needed on the required reports. This manual provides an account classification structure which will meet most of these needs of the accounting system and will permit comparability of reported data when reports from different LEAs are combined and/or compared.

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USES OF THE ACCOUNT CLASSIFICATION SYSTEM (CONTINUED)
Basic Philosophy Of the Manual
Several criteria are inherent in the design of the account classification structure in this manual. Taken together they support the needs expressed above. They are:
1. The chart of accounts encourages full disclosure of the financial positon of the LEA. Emphasis is placed during budget development on the accurate classification of financial transactions. Expenditures are recorded in the accounting categories applicable.
2. Comprehensiveness of financial reporting is encouraged. All financial activities of the LEA should be incorporated into a single accounting and reporting system for full disclosure. The account classifications in this handbook encourage this procedure. Accounts for such activities as food services, student activities, community services and commercial like enterprises all should be included in the financial reports of the LEA.
3. Simplified reporting is encouraged. Statement 1 encourages use of the minimum number of funds necessary for legal and operational use. Only the minimum number of funds consistent with legal and operating requirements should be established, since unnecessary funds result in inflexibility, complexity, and inefficient financial administration. Many think that readers of the LEA's financial statements are aided through consolidation of funds and better organization of the reports.
4. Financial reporting emphasizes the results of LEA operations more than the resources applied. The account code structure emphasizes program accounting and the application of supporting services costs to the products of the educational enterprise.

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GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART I

USES OF THE ACCOUNT CLASSIFICATION SYSTEM (CONTINUED)

5. The account classification system is flexible to meet
the needs of both small and large LEAs while retaining comparability of reported data. A minimum list of accounts essential for State reporting is provided, and a variety of operational classifications are included in the manual for use by those LEAs interested in a more comprehensive approach to financial accounting and reporting.

6. The classification of accounts and the recommended reporting structure remains in accordance with generally accepted accounting principles.

These criteria are central to the design and application of the account classification structure.

THE ACCOUNT CLASSIFICATION STRUCTURE

This manual provides for classifying three basic types of financial activity:
revenues, expenditures, and transactions affecting the balance sheet only. For
each type of transaction, the specific account code is made up of a combination of classifications called dimensions. Each dimension describes one way of classifying or describing financial activity. The dimensions applicable to each type of transaction are:

Revenues

Expenditures

Balance Sheet

Fund Revenue Source Project

fund Project Program Function Object Instructional Organization Operational Unit Subject Matter Job Classification Special Cost Center

Fund Balance Sheet
Account

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GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART I

USES OF THE ACCOUNT CLASSIFICATION SYSTEM (CONTINUED)
In this section, are described the purpose and uses of each of these dimensions, with the expenditure dimensions being listed first.
FUND - A fund is a fiscal and accounting entity with a self-balancing set of accounts recording cash and other financial resources, together with all related liabilities and residual equities or balances, or changes therein. Funds are established for the purpose of carrying on specific activities or attaining certain objectives of an LEA in accordance with special legislation, regulations, or other restrictions.
PROJECT - The project dimension permits LEAs to accumulate expenditures to meet a variety of specialized reporting requirements at local, State and Federal levels. It is envisioned as a three-digit code with the format fIX. The first two digits identify the particular projects and/or the fiscal year of the appropriation within that funding source.
PROGRAM - A program is a plan of activities and procedures designed to accomplish a predetermined objective or set of objectives. Nine broad program areas are identified in this manual: regular education, special education, vocational education, other instructional (PK-12), non-public school, adult/continuing education, community services, enterprises and undistributed expenditures.
The program dimension provides the LEA the framework to classify expenditures by program for cost determination purposes. In this process, only direct instructional costs are classified to the instruction function; those support costs which could be considered direct costs to an instructional program are classified to a support function. for example, special education transportation costs are classified to the support services function, transportation, even though they could be charged directly to the special education program. The program dimension allows all direct program costs, instructional and support, to be charged directly to the benefiting program. Additionally, use of this dimension allows concurrent classification of support services both to programs and to functions.

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GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART I

USES OF THE ACCOUNT CLASSIFICATION SYSTEM (CONTINUED)
FUNCTION - The function describes the activity being performed for which a service or material object is acquired. The functions of an LEA are classified into five broad areas: Instruction, Support Services, Operation of Non-Instructional Services, Facilities Acquisition and Construction Services, and Other Outlays. Functions and subfunctions consist of activities which have somewhat the same general operational objectives. Furthermore, categories of activities comprising each of these divisions and subdivisions are grouped according to the principle that the activities should be combinable, comparable, relatable and mutually exclusive.
As used in this manual, neither programs nor functions are related directly to the organization structure of a particular LEA, although there may be close correspondence between them. Organizational structure and responsibilities vary substantially from one LEA to another. Hence, it is not considered practical to attempt to align programs or functions and organization units for purposes of responsibility reporting. The operational unit dimension should be used to accomplish this objective.
OBJECT - This dimension is used to describe the service or commodity obtained as a result of a specific expenditure. Several major object categories are identified in this manual. These broad categories are subdivided into sub-objects for more detailed accounting.
INSTRUCTIONAL ORGANIZATION - This dimension permits separation of expenditures by organizational level. Financial reporting is sometimes required by instructional organization in order to compute tuition charges.
OPERATIONAL UNIT - This dimension has several common usages in LEAs: (1) to identify attendance centers, (2) as a cost center designator, (3) as a means of separating costs by building structure and (4) as a location code for payroll check distribution.
The usages sometimes coincide, but more often are in conflict with each other. For example, the first two are most frequently used for financial management of the school system. However, it is possible to have more than one attendance center within a budgetary unit, or vice versa. Hence, a classification designed for financial management purposes often represents a combination of the two uses. This combined classification may conflict with the requirements of the maintenance department to capture the costs associated with operating and maintaining the various physical structures.
Therefore, an LEA wishing to use this dimension must first have its objectives clearly in mind; then design the actual classifications. If too many conflicting objectives exist, it may be necessary to create extra dimensions in the LEA's chart of accounts to accommodate these needs.

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GEORGIA FINANCIAL
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USES OF THE ACCOUNT CLASSIFICATION SYSTEM (CONTINUED)

SUBJECT MATTER - The subject matter dimension describes a group of rel~ted
subjects. This dimension is provided in order to permit the accumulation of the costs of providing instruction in particular subject areas. The classifications used here are consistent with the first two digits of the subject matter classification in Handbook VI.

JOB CLASSIFICATION - This dimension enables LEAs to classify expenditures for
salaries and employee benefits by the employees job classification. (It should
not be used with object codes 300-900). There are at least three ways in which this dimension is used in school accounting: (1) to classify payroll costs for personnel purposes, (2) to separate certified and non-certified salaries and benefits and (3) to accumulate payroll costs by bargaining unit for purposes of labor negotiations.

SPECIAL COST CENTER- Finally, it is recognized that LEAs utilize many other methods of classifying expenditures for particular purposes. None of these
methods is used with enough regularity for inclusion in this manual, but when one is used, it is important. These codes may be added to the expenditure account designator at the LEA. Some of the possible additional dimensions are:

Term
Course Work order Bus route or vehicle State (or other supervisory authority) code Federal Common Accounting Number (CAN)

In addition, in automated systems, there may be a need to add some codes for used by the computer. These might include:

a transaction code to route the transaction through the system and post the correct files and fields in the data record.

a fiscal year code to assist with closing out one year

a reporting level code to assist in organizing report contents and subtotals.

a district or other organizational unit code in a multi-district system.

REVENUE SOURCE - This dimension permits separation of revenues by source. The primary classification differentiates local, State and Federal revenue sources.

BALANCE SHEET ACCOUNT - These classifications correspond to the items normally appearing on the balance sheet.

JULY 1, 1984, ISSUE

PAGE 2-10

GEORGIA FINANCIAL ACCOUNTING HANDBOOK
PART I

USES OF THE ACCOUNT CLASSIFICATION SYSTEM (CONTINUED)
THE MINIMUM CHART OF ACCOUNTS
In chapter 4 are found suggestions for constructing the LEA chart of accounts from the lists of dimensions and categories found in this manual.
Used in its entirety, the classification structure (particularly, the expenditure classifications) can generate an extremely large amount of detailed data. However, much of the classification system described herein is offered for the optional use of the LEA. Hence, LEAs may make choices as to which parts of the system they need or want to use.
These choices may be exercised in a number of ways:
1. The LEA may choose not to use certain dimensions at all.
2. The LEA may choose to consolidate certain dimensions in its own local chart of accounts. (A discussion of some of the possibilities for accomplishing this can be found on page 4-5).
3. The LEA may choose to use less than (or more than) the number of digits described for any particular dimension in this manual.
Nevertheless, a certain minimum list of these classifications is essential to meet State reporting requirements. This is referred to as the "minimum chart of accounts" which accounts are designated in this Handbook by an asterisK (*). The dimensions ~sed in this minimum chart of accounts are:
fund Function Object Revenue Source Balance Sheet Account
The reader will note that this minimum chart of accounts includes only some of the dimensions available to describe expenditures.

JULY 1, 1984, ISSUE

PAGE 2-11

GEORGIA fINANCIAL ACCOUNTING HANDBOOK PARl I

USES OF THE ACCOUNT CLASSIFICATION SYSTEM (CONTINUED)

BUDGETING

This classification system offers a variety of ways in which LEAs can
accomplish budgeting. Generally, an LEA will want to budget items for the various object classifications within function, subject matter, operational unit or program - or some combination of those dimensions. Budgets also are made up for separate projects using the project/reporting code as the key.

Because of the flexibility and comprehensive use of this classification
system, there is a tendency for budgets to become extremely detailed, with individual budget line items being drawn up for comparatively small amounts of money. This leads to needless restrictions on the budget manager, and, in some systems, can greatly increase the paperwork required for budget adjustment. To alleviate this problem, the Georgia budget forms are drawn and maintained at a higher level of classification than the level at which accounting records may be kept. More detailed budgets may be maintained for the use of individual budget managers. For example, suppose that ledgers are to be maintained on expenditure detail for the following accounts:

PROGRAM OBJECT

DESCRIPTIONS

AMOUNT SUBTOTAL

Vocational-Agriculture

310

130

Teacher Salaries

$ 60,000

150

Substitute Salaries

4,000

220

Socia 1 Security

Contributions

3,640

230

Retirement Contributions

3,000

250

Unemployment Compensation

500

430

Repair and Maintenance

Services

800

442

Rental of Equipment and

Vehicles

1,200

530

Communication

500

580

Travel

500

610

General Supplies

3,200

640

Books and Periodicals

2,250

Total - Vocational Agriculture

$ 79.590

JULY 1, 1984, ISSUE

PAGE 2-12

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART I

USES OF THE ACCOUNT CLASSIFICATION SYSTEM (CONTINUED)

The appropriation for these accounts might appear as follows:

Program

Major Object

Desc ritption

~PQrQQLialion Subtotal

310

Vocational-Agriculture

100

Sa laries

$ 64,000

200

Employee Benefits

7,140

400

Purchased Property

Services

2,000

500

Other Purchased Services

1,000

600

Supplies

5,450

Total - Vocational

Agriculture

$ 79.590

Hence, in this example, there would be five line items rather than eleven.

A similar practice can be followed for certain parts of the function
dimension. As an example of how that might work with the function codes, a detailed budget might read as follows:

Function Object

Description

Amounts

Operation of Buildings

Services

2620

190

Other Salaries

210

Group Insurance

220

Social Security Contributions

230

Retirement Contributions

411

Water/Sewer

421

Disposal Services

423

Custodial Services

430

Repair &Maintenance Services

520

Insurance - Other than

Employee Benefits

610

General Supplies

621

Natura I Gas

622

Electric i ty

624

Oil

$110,000 3,500 7,050 7,700
10,500 18,000 25,000
8,000
5,250 15,500 32,000 17,500 40.000

Subtotal

$300,000

JULY 1, 1984, ISSUE

PAGE. 2-13

GEORGIA FINANCIAL
ACCOUNTING HANDBOOK PART I

USES OF1HE ACCOUNT CLASSIFICATION SYSTEM (CONTINUED)

Function 9_bject

Des~ription

Amounts

2&30

Care &Upkeep of Grounds Services

190

Other Sa laries

210

Group Insurance

220

Social Security Contributions

230

Retirement Contributions

422

Snow Plowing Services

424

Lawn Care Services

441

Rental of Land and Buildings

&10

General Supplies

b26

Gasoline

730

E.quipment

&5,000 2,000 3,800 3,750 5,000
20,000 1,000 17,500 2,200 25,400

Subtotal

145 1 &50

Total

$445...1 b5O

The appropriation for these same items might be expressed as follows:

tunction

Obje~

Description

Amounts

2600

Operation &Maintenance of Plant

100

Salaries

200

E.mployee Benefits

400

Purchased Property Services

500

Other Purchased Services

bOO

Supplies

700

Property

$175.000 27,800 87,500
5,250 124,700
25.400

$445,&50

In this case, both the function and the object classifications were consolidated to a higher level for appropriations purposes. Obviously, many other similar combinations are possible. For instance, an LEA may choose to bUdget on a district-wide basis, but account for actual costs by cost center (operational unit).

JULY 1, 1984, ISSUE

PAGE 2--14

GEORGIA FINANCIAL
ACCOUNTING HANDBOOK PART I

Chapter 3
ACCOUNT CLASSIFICATIONS
This chapter contains a summary of the account classifications and definitions provided for LEA use. Accounts essential to meet State reporting requirements (minimum accounts) are indicated in the following lists by an asterisk (*). Specific descriptions for these classifications and definitions are included in another chapter of this handbook.
This chapter is divided into four sections:
Fund Classifications
Revenue Classifications
Expenditure Classifications
Balance Sheet Account Classifications
Each of these sections is explained below.
FUND CLASSIFICATIONS
Governmental accounting systems should be organized and operated on a fund basis. The diverse nature of governmental operations and the necessity of assuring legal compliance may preclude recording and summarizing financial transactions in a single accounting entity. Instead, the required accounts are organized on the basis of funds, each of which is completely independent of any other. Each fund must be so accounted for that the identity of its resources, obligations, revenues, expenditures and fund equities is continually maintained. These purposes are accomplished by providing a complete self-balancing set of accounts for each fund which shows its assets, liabilities, reserves, fund balances or retained earnings, revenues and expenditures or expenses.
A fund is a fiscal and accounting entity, with a self-balancing set of accounts into which are recorded cash and other resources, together with all related liabilities and remaining equities or balances, or changes therein. If one were to compare fund accounting with commercial accounting, each fund would equate to an independent business, with its own separate set of records.

JULY 1, 1983

PAGE 3-1

GEORGIA FINANCIAL ACCOUNTING HANDBOOK
PART I

ACCOUNT CLASSIFICATIONS (CONTINUED)
The classifications of fund types and account groups included in this manual are similar to those used by other State and local governmental units. They consist of the following fund types and account groups:
Governmental Fund Types- The funds through which most LEA functions are typically financed. The governmental fund reporting focus is upon determination of financial position and changes in financial position, rather than upon net income determination.
Proprietary Fund Types - The funds used to account for those LEA activities which are similar to business operations in the private sector; or where the reporting focus is upon determination of net income, financial position and changes in financial position.
Fiduciary Fund Types - The funds used to account for assets held by an LEA as trustee or agent. Each trust fund is treated for accounting measurement purposes in a manner similar to either a governmental fund or a proprietary fund. Expendable trust funds are accounted for in essentially the same manner as governmental funds. Non-expendable trust funds and pension trust funds are accounted for in essentially the same manner as proprietary funds. Agency funds are purely custodial (assets equal liabilities) and thus do not involve measurements of results of operations.
Account Groups - Groups of accounts which are used to record and control the LEA's general fixed assets and unmatured general long-term liabilities. Fixed assets and long-term liabilities of proprietary funds and trust funds should be accounted for through those funds.
Within these categories are funds and account groups which will be used by LEA's. They will be further defined in a later chapter of this handbook but are grouped as follows:

.lUL Y 1, 1983

PAGE 3-2

GEORGIA FINANCIAL APACRCTOUINTING HANDBOOK

ACCOUNT CLASSIFICATIONS (CONTINUED)

FUND CODES

GOVERNMENTAL FUND TYPES (01-59):

01 02 03 04-19

GENERAL DEBT SERVICE (SINKING) CAPITAL PROJECTS (BUILDING) (RESERVED FOR FUTURE POSSIBILITIES)

SPECIAL REVENUE FUNDS (20-59):

20 21 22 23 24 25 26 27 28 29 30-39 40 41-49 50
51-59

LEAVE INSTRUCTIONAL MEDIA INSTRUCTIONAL EQUIPMENT COMPENSATORY EDUCATION BUS REPLACEMENT POST SECONDARY VOCATIONAL EDUCATION (AVTS) PSYCHOEDUCATIONAL CENTER (S.E.D.) G.l.R.S. E.C.I.A. CHAPTER 1 E.C.I.A. CHAPTER 2 (RESERVED FOR FUTURE POSSIBILITIES) ALL OTHER (K-12) (RESERVED FOR FUTURE POSSIBILITIES) ALL OTHER SPECIAL REVENUE
(RESERVED FOR FUTURE POSSIBILITIES)

PROPRIETARY FUND TYPES (60-69):

60 61-64 65 66-69

ENTERPRISE (e.g., FOOD SERVICE) (RESERVED FOR FUTURE POSSIBILITIES) INTERNAL SERVICE (e.g., CESA) (RESERVED FOR FUTURE POSSIBILITIES)

FIDUCIARY FUND (70-79):

70

FIDUCIARY

71-79 (RESERVED FOR FUTURE POSSIBILITES)

ACCOUNT GROUPS (80-99):

80
81-89 90 91-99

GENERAL FIXED ASSETS
(RESERVED FOR FUTURE POSSIBILl1IES) GENERAL LONG-TERM DEBT (RESERVED FOR FUTURE POSSIBILITES)

JANUARY 16, 1985, REVISION JULY 1, 1983, ISSUE

PAGE 3-3

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART I

ACCOUNT CLASSIFICATIONS (CONTINUED)
CLASSIFICATION OF REVENUES AND OTHER SOURCES OF FUNDS
Revenues are classified by type and source for the various funds of an LEA. Revenues are defined as additions to assets which do not increase any liability, do not represent the recovery of an expenditure, and do not represent the cancellation of certain liabilities without a corresponding increase in other liabilities or a decrease in assets.
Revenues are classified into three major sources: Local, State and Federal. These classifications are defined below:
1. Revenue from local sources is produced within the boundaries of the LEA and available to the LEA for its use. For example, taxes levied by another governmental unit as an agent of the LEA (less collection costs), is recorded as revenue from local sources. Shared revenue (revenue levied by another governmental unit, but shared in proportion with the LEA) is also recorded as revenue from local sources.
2. Revenue from State sources is revenue from funds produced within the boundaries of and collected by the State and realized by LEA's in amounts different proportionately from those which were earned within such LEA's. Also included in this category are Federal funds that are administered by the Georgia Department of Education or other State agencies. Some of these grants such as Vocational Education have Federal and State funds commingled in the same grant. If a breakdown between State and Federal funds is needed, that information will be readily obtainable at the State level.
3. Revenue from Federal sources is revenue from funds collected by the Federal government and realized by LEA's in amounts that differ in proportion from those which were collected within such LEA's and flow directly from the Federal government to the LEA.
Within each source of revenue, individual items of revenue are classified into basic groupings of similar types of revenue such as taxes or tuition.
The revenue source classification includes "other sources" which constitute fund revenues in a strict fund accounting context, but are not considered revenues to the LEA. These include indirect cost reimbursement, the sale of bonds and interfund transfers. These other sources are described in the 5000 series of accounts.

JANUARY 16, 1985, REVISION JULY 1,1983, ISSUE

PAGE 3-4

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART I

SOURCE. Of
FUN[)~:; CODES 1000
1100 *1110
1111 11 12 *1120 *1130
1140
Jl ~O
11bO
*11/0
1180
*1190
1300
*1310
*1320
1400 1410
1420 1430
1495

ACCOUNT CLASSIFICATIONS (CONTINUED) ClASSI~ICAIION OF REVlNUlS AND OTHER SOURCES OF fUNDS
REVENUE ACCOUNTS REVlNUE FROM LOCAL SOURCES
Revenue From City or County Government Ad Valorem Taxes Current Year Prior '(ear Local Option Sales Tax Real Estate Transfer Tax Penalties and Interest on faxes National Forest Fines and Forfeitures Revenue from lscheated lstates Appropriation From City or county Revenue in lieu of Taxes Other laxes
Tuition luition From Other Georgia LEAls Other luition
lransportation Fees Iransportation Fees From Individuals rransportation Fees From Other LE.A's Within the State lransportation Fees From lEAls Outside the State Transportation Fees From Other Sources

JULY 25, 1984, REVISION JULY I, 1983, I~:;SUE.

PAGl 3-5

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PARI I

SOURCI: OF
FUNDS CODl;i
*1500
I~IO
1520
1530
1>00
lb10 1> I I 1bl2 1&13
lb20 1>21 lb22 1&29
1&30
1800
1900
*1910
*1920
*1940
*1950
1970
*1980
*1995

ACCOUNT CLASSIFiCATIONS (CONTINUlD.-L
REVlNUl ACCOUN1S
larnings on Investments or Deposits Interest on Investments or Deposits Dividends on Investments Gains or Losses on Sale of Investments
Child Nutrition Program Daily Sales - Reimbursable Programs National School Lunch Programs National School Breakfast Programs Child Care Programs Daily Sales - Non-reimbursable Programs Supplemental Sales Adult Sa les Other Special Functions
Revenue from Community Services Activities Other Revenue From Local Sources
Rentals Contributions and Donations From Private Sources lost and Damaged Textbooks/library Books Services Provided Other local Educational Agencies Services Provided Other Funds Student Supply Fees Miscellaneous

JULY 25, 1984, REVISION JULY I, 1983, ISSUE.

PAGE 3-&

GEORGIA FINANCIAL ACCOUNtING HANDBOOK
PARI I

ACCOUNT CLASSIFICATIONS (CONTINUED)
SOURCE OF
FUNDS CODES REVENUE ACCOUNTS
3000 REVENUE FROM SlATE SOURCES
*3100 Revenue from Georgia Department of Education for APEG Grants
3103 Salaries &Benefits - Extended Kindergarten Day
311B Instructional Aides - Kindergarten 3125 Salaries - School Psychologists 3132 Salaries - Teachers of Severely Emotionally Disturbed 3133 Salaries - Teachers in Georgia Learning Resources Systems 3134 Salaries - Teachers in Institutions 3144 Center for Severely Emotionally Disturbed 3141 Cooperative Educational Service Agency Grants 3159 Salaries - Instructional Aides 31&0 Salaries - Classroom Teachers 31&1 Salaries - Special Education Teachers 31&2 Salaries - Student Support Personnel 31&3 Supplements for Student Support Personnel 31&4 Salaries - Administrative and Supervisory Personnel 31&5 Supplements - Administrative and Supervisory Personnel 31&& Salaries - Special Education Leadership Personnel 31&1 Grants for Compensatory Education Grades 3-8 31&8 Salaries - Kindergarten Teachers 3110 Grants - Instructional Materials and Media 3111 Grants - Instructional Equipment 3112 Maintenance And Operation
3113 Sick & Personal Leave
3114 Travel 311& Pupil Transportation 3111 Salaries - Teachers - Isolated Schools 3118 Other Expense - Isolated Schools 3180 Pupil Transportation - Sick & Personal Leave 3181 Transportation - Bus Replacement 3183 Grants for Compensatory Education Grade 10 3199 Other Grants

JULY 1, 1984, REVISION JULY 1, 1983, ISSUE

PAGE 3-7

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART I

AC~9UNT CLASSIFICATIONS (CONTINUED)

SOURCE
OF FUNDS CODES

REVENUE ACCOUNTS

*3200 Superintendent's Salary and Supplement

*3300 Vocational Education Grants

3400 Other Funds from the Georgia Department of Education
*3401 Child Nutrition Program *3402 Staff Development *3403 Performance Based Certification
*3404 Adult Education *3405 Capital Outlay
*3406 Educational Purposes to Encourage Tax Relief *3499 Other Grants

*3500 Georgia Department of Education for Education Consolidation Improvement Act (ECIA)

3700 Revenue From Other State Agencies *3701 Georgia State Financing and Investment Commission
Reimbursement *3702 Railway Equipment Tax (Georgia Department of Revenue) *3799 Other Funds from Other State Agencies

*3900 Revenue For/On Behalf of the LEA

JULY 1, 1984, REVISION JULY 1, 1983, ISSUE

PAGE 3-8

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART I

ACCOUNT CLASSIFICATIONS (CONTINUED)

SOURCE OF
FUNDS CODES

REVENUE ACCOUNTS

4000

REVENUE FROM FEDERAL SOURCES

4300

Restricted Grants-In-Aid Direct From The Federal

Government

4310 4311 4312
4313 4314
4315 4316
4317

Elementary/Secondary Education Programs (Misc.)
Alcohol & Drug Abuse
Bilingual Education
Community Education Consumer Education
Education and the Arts Educational TV Programming Environmental Education

4320 4321 4322 4323
4324 4325 4326
4327
4329

Elementary/Secondary Education Programs (Other) F0 11 ow Th rough Gifted and Talented Head Start
Metric Education Right To Read Teacher Corps
Women's Educational Equity
Other

4330
4331 4332 4333

Vocational Programs
VEA Part C - Research VEA Part 0 - Exemplary VEA Part I - Curriculum

4340
4341 4342

Employment Programs
Career Education Neighborhood Youth Corps

4350
4351 4352 4353 4354 4355 4356

Handicapped Programs
EHA VI-C Early Education for Handicapped EHA VI-C Severely Handicapped EHA VI-C Deaf-Blind Centers EHA VI-E Research EHA VI-F Media Services for Handicapped EHA VI-G Specific Learning Disabilities,
Developmental Disabilities and Removal of Architectural Barriers

JULY 1, 1984, REVISION JULY 1, 1983, ISSUE

PAGE 3-9

GEORGIA FINANCIAL ACCOUNTING HANDBOOK
PART I

ACCOUNT CLASSIFICATIONS (CONTINUED)

SOURCE
OF FUNDS CODES

REVENUE ACCOUNTS

4360 4361 4362 4363

Indian Education Programs Basic Grants (Part A) Special Programs and Projects
Assistance for Non-Federal LEA's

4370 4371
4372 4373 4374

Desegregation Programs Civil Rights Technical Assistance Community Action
Emergency School Aid Act Magnet Schools

4800

Revenue in Lieu of Taxes

4810

Federal Forest Reserve

*4820

Impact Aid (PL 874)

*4830

Other Federal Revenue in Lieu of Taxes

4900

Revenue from Other Federal Sources

*4995

Revenue From Other Federal Sources

5000

OTHER SOURCES

*5100

Sale of Bonds

5110

Bond Principal

5120

Premium on Bonds

5130

Accrued Interest

*5200

Incoming Transfers From Other Funds

*5300

Sale or Compensation for the Loss of Assets

*5400

Indirect Cost Reimbursement

*5500

Cost of Sales (Proprietary Fund Only)

*5995

Other Sources

JULY 1, 1984, REVISION JULY 1, 1983, ISSUE

PAGE 3-10

GEORGIA FINANCIAL ACCOUNTING HANDBOOK
PART I

ACCOUNT CLASSIFICATIONS (CONTINUED)
CLASSIFICATION OF EXPENDITURES AND OTHER USES OF FUNDS
The expenditure classifications are divided into two groups or dimensions: Dimensions essential to meet reporting requirements at the State and Federal level, and dimensions available for LEA management use.
The classifications which are essential to meet many of these reporting requirements are found within the following dimensions:
FUND
FUNCTION
OBJECT
A number of additional dimensions are described in this manual for use at the option of th~ LEA. These include:
PROJECT/REPORTING
PROGRAM
INSTRUCTIONAL ORGANIZATION
OPERATIONAL UNIT
SUBJECT MATTER
JOB CLASSIFICATION
SPECIAL COST CENTER
DIMENSIONS ESSENTIAL FOR REPORTING EXPENDITURES
FUND. Fund is an essential dimension for reporting, and is required for State reporting purposes and for the LEA to be in compliance with GAAP. The fund codes and a discussion of each are presented at the beginning of this chapter.

JULY 1, 1963

PAGE 3-11

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART I

ACCOUNT CLASSIFICATIONS (CONTINUED)

FUNCTION. The function describes the activity being performed for which a service or material object is acquired. The functions of an LEA are classified into five broad areas: Instruction, Support Services, Operation of
Non-Instructional Services, Facilities Acquisition and Construction Services. and Other Outlays. Functions and subfunctions consist of activities which have somewhat the same general operational objectives. Furthermore. categories of activities comprising each of these divisions and subdivisions are grouped according to the principle that the activities should be combinable. comparable, relatable and mutually exclusive. Those functions identified with asterisks are considered to be essential for reporting to the
Georgia Department of Education.

FUNCTION CODES

FUNCTIONS

*1000

Instruction

2000

Support Services

*2100

Support Services - Students

2110

Attendance and Social Work Services

2111

Supervision of Attendance and Social Work Services

2112

Attendance Services

2113

Social Work Services

2114

Student Accounting Services

2115

Other Attendance and Social Work Services

2120

Guidance Services

2121

Supervision of Guidance Services

2122

Counseling Services

2123

Appraisal Services

2124

Information Services

2125

Record Maintenance Services

2126

Placement Services

2129

Other Guidance Services

2130

Health Services

2131

Supervision of Health Services

2132

Medical Services

2133

Dental Services

2134

Nursing Services

2139

Other Health Services

JULY 1. 1983

PAGE 3-12

GEORGIA FINANCIAL ACCOUNTING HANDBOOK
PART I

FUNCTION CODES
2140
2141 2142 2143 2149
2150
2151
2152 2153 2159
2190
*2200
2210
2211 2212 2213 2219
2220
2221 2222 2223 2224 2225 2229
2290
*2300
2310 2311 2312 2313
JULY 1. 1983

ACCOUNT CLASSIFICATIONS (CONTINUED)
FUNCTIONS
Psychological Services
Supervision of Psychological Services Psychological Testing Services Psychological Counseling Services Other Psychological Services
Speech Pathology and Audiology Services
Supervision of Speech Pathology and Audiology Services
Speech Pathology Services Audiology Services Other Speech Pathology and Audiology Services
Other Support Services - Students
Support Services - Instructional Staff
Improvement of Instruction Services
Supervision of Improvement of Instruction Services Instruction and Curriculum Development Services Instructional Staff Training Services Other Improvement of Instruction Services
Educational Media Services
Supervision of Educational Media Services School Library Services Audiovisual Services Educational Television Services Computer-Assisted Instruction Services Other Educational Media Services
Other Support Services - Instructional Staff
Support Services - General Administration
80ard of Education Services Supervision of Board of Education Services Board Secretary/Clerk Services Board Treasurer Services

PAGE 3-13

GEORGIA FINANCIAL
ACCOUNTING HANDBOOK PART I

FUCONDCETSION
2314 2315 2316 2319
2320
2321 2322 2323 2329
2330
*2400
2410
2490
*2500
2510
2511 2512 2513 2514 2515 2516 2517 2519
2520
2530
2540
2590

ACCOUNT CLASSIFICATIONS (CONTINUED)
FUNCTIONS
Election Services Tax Assessment and Collection Services Staff Relations and Negotiation Services Other Board of Education Services
Executive Administration Services
Office of the Superintendent Services Community Relations Services State and Federal Relations Services Other Executive Administration Services
Special Area Administration Services
Support Services - School Administation
Office of the Principal Services
Other Support S~rvices - School Administration
Support Services - Business
Fiscal Services
Supervision of Fiscal Services Budgeting Services Receiving and Disbursing Funds Services Payroll Services Financial Accounting Services Internal Auditing Services Property Accounting Services Other Fiscal Services
Purchasing Services
Warehousing and Distributing Services
Printing, PUblishing, and Duplicating Services
Other Support Services - Business

JULY 1,1983

PAGE 3-14

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART I

FUNCTION CODES
*2600 2610
*2620 *2630 *2640 *2650
2660 *2690 *2700 *2710 *2720
2730 *2740 *2'790

ACCOUNT CLASSIFICATIONS (CONTINUED)
FUNCTIONS
Operation and Maintenance of Plant Services Supervision of Operation and. Maintenance of Plant Services Operation of Buildings Services Care and Upkeep of Grounds Services Care and Upkeep of Equipment Services Vehicle Operation and Maintenance Services (Other than Student Transportation Vehicles) Security Services Other Operation and Maintenance of Plant Services
Student Transportation Services Supervision of Student Transportation Service Vehicle Operation Services Monitoring Services Vehicle Servicing and Maintenance Services Other Student Transportation Services

JULY 1. 1983

PAGE 3-15

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART I

FUNCTION CODES
*2800
2810
2811 2812 2813 2814
2820
2821 2822 2823 2824 2829
2830
2831 2832 2833 2834
2835 2839
2840
2841 2842 2843 2844 2849
*2900

ACCOUNT CLASSIFICATIONS (CONTINUED)
F~NCTIONS
Support Services - Central
Planning, Research, Development, and Evaluation Services
Development Services Evaluation Services Planning Services Research Services
Information Services
Supervision of Information Services Internal Information Services Public Information Services Management Information Services Other Information Services
Staff Services
Supervision of Staff Services Recruitment and Placement Services Staff Accounting Services Inservice Training Services (For Non-instructional
Staff) Health Services Other Staff Services
Data Processing Services
Supervision of Data Processing Services Systems Analysis Services Programming Services Operations Services Other Data Processing Services
Other Support Services

JULY 1, 1983

PAGE 3-16

GEORGIA FINANCIAL ACCOUNTING HANDBOOK
PART I

ACCOUNT CLASSIfICATIONS (CONTINUED)

FUNCTION CODES FUNCTIONS

3000

Operation of Non-Instructional Services

*3100

Food Services Operations

3200

Enterprise Operations

3300

Community Services Operations (Including Child Care Programs)

*3900

Other Operation Of Non-Instructional Services

4000

Facilities Acquistion and Construction Services

*4100

Land Acquistion And Development Services

*4300

Educational Specifications Development Services

*4500

Building Acquistion and Improvements Services

*4900

Other facilities Acquistion and Construction Services

5000

Other Outlays

*5100

Debt Service

*5200

Transfers To Other Funds

*5400

Indirect Cost Charged

*6000

Employee Benefits (Employer Costs Only) (Transitional For FY 85)

SEP1LMBER 10. 1984. REVISION JULY 1. 1983. ISSUE

PAGE 3-17

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART 1

ACCOUNT CLASSIfICATIONS (CONTINUED)

OBJECT. This dimension is used to describe the service or commodity obtained as a result of a specific expenditure. The object categories identified by asterisks are considered to be essential. These broad categories are subdivided into sub-objects for more detailed accounting as follows:

OBJECT CODES OBJECTS

100

Personal Services - Salaries

*110

Salaries - Teachers

*120

Salary - Superintendent. CESA Director. AVTS Director

*130

Salaries or Per Olem of Board Members

*140

Salaries - Aides and Paraprofessionals

*150

Salaries - Substitutes

*190

Other Salaries

In order to insure uniformity of recording and reporting salary information.
the PROFESSIONAL CODES defined in the OE-38 PROCESSING MANUAL will govern the OBJECT CODE in the accounting system. The OBJECT CODES are presented below
indicating the PROFESSIONAL CODES of the personnel to be included:

OBJECT CODES

PROfESSIONAL CODES

110

All the 100 series. all the 400 series. and

all the 500 series except 560. 580. 590 and 591

120

600. 605 and 370 (AVTS Director)

130

Not applicable

140

Not applicable

150

Not applicable

190

All the 200 Series. all of the 300 series

except any AVTS Olrector included in 370.

but including codes 560. 580. 590 and 591

SEPTEMBER 10. 1984. REVISION JULY 1. 1983. ISSUE

PAGE 3-18

GEORGIA fINANCIAL ACCOUNTING HANDBOOK PART I

OBJECT CODES
200
*210
*220
*230
240
*250
*260 *270
*290
300
310
320
330
340
400 *410
411 412 413 414 415 *430
*440
441 442

ACCOUNT CLASSIFICATIONS (CONTINUED)
OBJECTS Personal Services - Employee Benefits
Group Health Insurance Other Group Insurance Contributions to Teachers' Retirement System Tuition Reimbursement Unemployment Compensation Workers' Compensation Social Security Contributions Other Employee Benefits Purchased Professional and Technical Services Official/Administrative Services Professional-Educational Services Other Professional Services Technical Services Purchased Property Services Water/Sewer/Cleaning Services
Water/Sewer Disposal Services Snow Plowing Services Custodial Services Lawn Care Services Repair and Maintenance Services Rentals Rental of Land and Buildings Rental of Equipment and Vehicles

APRIL 4, 1984, REVISION JULY 1, 1983 ISSUE

PAGE 3-19

GEORGIA FINANCIAL ACCOUNTING HANDBOOK
PART I

OBJECT CODES
400
450
490
500
*510
511
512
519
*520
*530
540
550
560
*561 562 563
*569
570
580
590
*591 *592 *593

ACCOUNT CLASSIFICATIONS (CONTINUED)
OBJECT~
Purchased Property Services (Continued)
Construction Services
Other Purchased Property Services
Other Purchased Services
Student Transportation Services
Student Transportation Services From Another LEA Within the State
Student Transportation Services From Another LEA Outside the State.
Student Transportation Services From Other Sources
Insurance (Other Than Employee Benefits)
Communications
Advertising
Printing and Binding
Tuition
Tuition to Other LEA's Within the State Tuition to LEA's Outside the State Tuition to Private Sources Tuition - Other
Food Service Management
Trave 1
Miscellaneous Purchased Services
Services Purchased Locally Services Purchased From Another LEA or CESA Within Georgia Services Purchased From An LEA Outside the State

APRIL 4, 1984, REVISION JULY 1. 1983 ISSUE

PAGE 3-20

GEORGIA FINANCIAL ACCOUNTING HANDBOOK
PART I

OBJECT CODES
600
*610
*620
621 622 623 624 625 626 629
630
*640
*650
100
*110
*120
*130
131 132 133 139
140

ACCOUNT CLASSIFICATIONS (CONTINUED)
OBJECTS
Supplies
General Supplies
Energy
Natural Gas Electricity Bottled Gas Oil Coal Gaso1 ine Other
Food
Books and Periodicals
Parts
Property
Land and Improvements
Buildings and Improvements
Equipment
Machinery Vehicles Furniture and Fixtures Other Equipment
Depreciation (Proprietary Funds Only)

JULY 1, 1983

PAGE 3-21

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART I

ACCOUNT ClASSIFICATIOMS (CQkTINUEQ)

OBJECT CODES 800
810 820 *830 *840 *890 900 *910 920 *930 *940 *990 000

OBJECTS Other Objects Dues and Fees Judgments Against the LEA Interest Child Nutrition Program Claims Miscellaneous Expenditures Other Uses of Funds Redemption of Bond Principal Obligations To Georgia State Financing And Investment Commission Transfers To Other Funds Indirect Cost Charged Other Uses of Funds This is not an object code. It is used like an object code to identify totals of expenditures by function.

JULY 1. 1983

PAGE 3-22

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART I

ACCOUNT CLASSIFICATIONS (CONTINUED)
OPTIONAL DIMENSIONS AVAILABLE FOR USE IN LEA MANAGEMENT
A number of additional dimensions are available for use in LEA's for management and administration purposes. The use of these dimensions is optional and will depend upon the reporting requirements of each LEA. These dimensions include:
(1) PROJECT (2) PROGRAM (3) INSTRUCTIONAL ORGANIZATION (4) OPERATIONAL UNIT (5) SUBJECT MATTER (6) JOB CLASSIFICATION (7) SPECIAL COST CENTER

PROJECT DIMENSION

When an LEA records revenue for restricted use, it frequently must prepare
a report showing the amounts realized and the amounts expended for those purposes. When revenues of this nature are realized, the LEA could assign a project/reporting classification to the revenue transactions. The same project/reporting codes would be used in conjunction with expenditure classifications for the project. This optional dimension permits LEAs to accumulate expenditures to meet a variety of specialized reporting requirements at local, State and Federal levels. It is envisioned as a three-digit code as follows:

PROJECT CODES

PROJECT

100-399

LOCAL AND/OR STAlE PROJECTS

400-999

FEDERAL PROJECTS

000

NON-CATEGORICAL

JANUARY 30, 1984, REVISION JULY 1, 1983 ISSUE

PAGE 3-23

GEORGIA FINANCIAL
ACCOUNTING HANDBOOK PART 1

~CCOUNT CLASSIFICATIONS (CONTINUED)

PROGRAM. A program is a plan of activities and procedures designed to accomplish a predetermined objective or set of objectives. This optional dimension provides LEA's the framework to classify expenditures by program for cost. det.erminat.ion purposes. Use of t.his dimension allows concurrent
classificat.ion of cert.ain support. services costs to both the function and t.he program. It. is envisioned as a t.hree-digit. code.

PROGRAM CODES PROGRAMS

100

Regular Programs - Element.ary/Secondary

110

Kindergart.en

120

Elementary

130

Middle/Junior High

140

High

190

Ot.her

200

Spec i a 1 Prog rams

211

Learning Disabled

212

Emot.ionally Dist.urbed

213

Educable Mentally Retarded

214

Trainable Ment.ally Retarded

215

Severely Mentally Retarded

21&

Bahavior Disordered

219

Other Mentally Handicapped

220

Special Education - Physically Handicapped

221

Ha rd of Hea ri ng

222

Deaf

223

Deaf - Blind

224

Visually Impaired

225

Speech Impaired

22&

Orthopedically Impaired

229

Ot.her Health Impaired

JANUARY 30, 1984, REVISION JULY 1, 1983 ISSUE

PAGE 3-24

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART I

ACCOUNT CLASSIFICATIONS (CONTINUED)

PROGRAM CODES

PROGRAMS

250

Culturally Deprived

260

Bilingual

270

Compensatory

290 291 292 299

Other Special Programs Gifted Multi-Handicapped Other

300

Vocational Education Programs

310

Agriculture Education

320

Distributive Education

330

Health Occupations Education

340

Home Economics Education

341

Related Occupations

342

Consumer and Homemaking

343

Displaced Homemakers

350

Office Occupations Education

360

Technical Education

370

Trades And Industrial Education

380

Cooperative Education

390

Other Vocational Education Programs

391

Work Study

392

Energy Education

399

Other

400

Vocational Education Support Programs

410

Local Administration

420

Research Programs

430

Exemplary Programs

440

Curriculum Development

JULY 1, 1983

PAGE 3-25

GEORGIA FINANCIAL ACCOUNTING HANDBOOK
PART I

PROGRAM CODES 450 460 470 490 500 510 520 600 700 800 810 820 830 840 850
890 900
910 990 000

ACCOUNT CLASSIFICATIONS (CONTINUED)
PROGRAMS Vocational Guidance and Counseling Professional Development Programs to Overcome Sex Bias Other Vocational Education Support Programs
Other Instructional Programs - Elementary/Secondary School Sponsored Cocurricular Activites School Sponsored Athletics
Non-Public School Programs Adult/Continuing Education Programs Community Services Programs
Community Recreation Civic Services Public Library Services Custody and Child Care Services Welfare Activities Other Community Services Enterprise Programs Food Services Other Enterprise Programs Undistributed Expenditures

JULY 1. 1983

PAGE 3-26

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART I

ACCOUNT CLASSIFICATIONS (CONTINUED)

INSTRUCTIONAL ORGANIZATION. This dimension permits separation of expenditures by organizational level. LEA's may choose to use this dimension either standing alone or incorporated into function series 1000.

Within a particular LEA, a more careful definition of the distinction
betwe~n the elementary and secondary levels of education is needed. Many LEA's differentiate the middle grades from both elementary and secondary, but the definitions of this level could vary from district to district.

An example of a possible classification structure for this dimension is shown.

AN EXAMPLE

10

Elementary

11

Pre-Kindergarten

12

Ki nderga rten

13

Elementary Grades

20

Middle/Junior High

21

Middle Grades

22

Junior High Grades

30

Secondary

31

High School Grades

40

Post-Secondary

41

Adult/Continuing

42

Community/Junior College

00

District-wide

OPERATIONAL UNIT. This dimension has several common usages in LEA's: (1) to identify attendance centers, (2) as a budgetary unit or cost center designator, (3) as a means of separating costs by building structure, and (4) as a location code for payroll check distribution.

JULY 1, 1983

PAGE 3-27

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART I

ACCOUNT CLASSIFICATIONS (CONTINUED)

OPERATIONAL UNIT (CONTINUED)
These usages sometimes coincide. but more often are in conflict with each
other. For example. the first two coding systems most frequently are used for financial management of the school system. However. it is possible to have
more than one attendance center within a budgetary unit. or vice versa. Hence. a classification designed for financial management purposes often represents a combination of the two uses. However. this combined classification may conflict with the requirement of the maintenance department to capture the costs associated with operating and maintaining the various physical structures (Option 3 above).

Therefore. an LEA wishing to use this dimension must first have its objectives clearly in mind; then design the actual classifications. If too
many conflicting objectives exist. it may be necessary to create two dimensions in the LEA's chart of accounts to accommodate these needs.

Examples of some of the usages are presented here.

Example I (Budgetary Units)

01 Purchasing Department 02 Principal's Office 03 Health Department 04 Custodial Office 05 Adams Elementary School 06 Smith School 07 York High School

Example II (Physical Facilities)

01 Central Administrative Office
02 District Warehouse
03 District Bus Garage 11 Adams Elementary School 21 Churchville Middle School 31 York High School 32 Lincoln Vocational - Technical School
42 Davis Junior College

Example III (Combination of Examples I & II

01 Central Administrative Office - Purchasing Office
12 Adams Elementary School - Principal's Office 23 Churchville Middle School - Health Department 34 York High School - Custodial Office

SUBJECT MATTER. The subject matter dimension describes a group of related

subjects. This dimension is provided in order to permit the accumulation of

the costs of providing instruction in particular subject areas. The

classifications used here are consistent with the first two digits of the subject matter classification in Federal Handbook VI.

GEORGIA FINANCIAL ACCOUNTING HANDBOOK

JULY 1. 1983

PAGE 3-28

PART I

ACCOUNT CLASSIFICATIONS (CONTINUED)

SUBJECT MATTER (CONTINUED)

The LEA may choose to add more categories to this list and/or to increase the size (number of digits) in the code to provide for greater detail of classification. An example of a two digit code follows:

Code Subject Matter

01

Agriculture

02

Art

03

Business

04

Distributive Education

05

English Language Arts

06

Foreign Languages

07

Health Occupations Education

08

Health and Safety in Daily Living, Physical Education

and Recreation

09

Home Economics

10

Industrial Arts

11

Mathematics

12

Music

13

Natural Sciences

14

Office Occupations

15

Social Sciences

16

Technical Education

17

Trades and Industrial Occupations

18

General Elementary/Secondary Education

19

Differentialized Curriculum for Handicapped

Students

20

Cocurricu1ar Activities

21

Safety and Driver Education

22

Junior ROTC

JOB CLASSIFICATIONS: This dimension enables LEA's to break down expenditures for salaries and fringe benefits by the employee's job
classifications. It should not normally be used with object codes 300-900. There are at least three ways in which this dimension is commonly used in school accounting:

(1) to classify payroll costs for personnel purposes in accordance with
the classifications contained in Federal Handbook IV-R.
(2) to separate certificated and noncertificated salaries and benefits, and
(3) to accumulate payroll costs by bargaining unit for purposes of labor negotiations.

An example of each method of establishing these codes is shown.

JULY 1, 1983

PAGE 3-29

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART I

ACCOUNT CLASSIFICATIONS (CONTINUED)
JOB CLASSIFICATIONS (CONTINUED)
Option I Personnel Purposes
1 - Official/Administrative 2 - Professional/Educational 3 - Professional/Other 4 - Technical 5 - Office/Clerical 6 - Crafts and Trades 7 - Operative B - Laborer 9 - Service Work
Option II Certificated/Non-certificated
1 - Certificated 2 - Non-certificated
Option III Bargaining Unit
1 - American Federation of Teachers 2 - National Education Association 3 - Custodial Organization 4 - Food Service Organization 5 - Craftsman Organization 6 - Transportation Driver Organization
SPECIAL COST CENTER. Finally, it is recognized that LEA's utilize many other methods of classifying expenditures for particular purposes. None of these methods is used with enough regularity for inclusion in this manual. These classifications may be added to the expenditure account designators at the discretion of the LEA. Some of the possible additional dimensions are:
1. TERM - some LEA's like to classify expenditures by time of year and/or time of day. (Included as a separate dimension in Handbook II, Revised, 1973).
2. COURSE - LEA's may desire to expand the subject matter dimension to include a breakdown of expenditures by course or course cluster.
3. WORK ORDER - in some LEA accounting systems, charges to individual work orders are accumulated for maintenance and operational control.
4. BUS ROUTE OR VEHICLE - it may be desirable to allocate transportation costs to individual bus routes or student transportation vehicles.

JULY 1, 1983

PAGE 3-30

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART I

ACCOUNT CLASSIFICATIONS (CONTINUED)
SPECIAL COST CENTER (CONTINUED)
5. STATE ACCOUNTING NUMBER - an additional code is used by some LEA's to relate the coding to a pre-established and required State code.
6. FEDERAL COMMON ACCOUNTING NUMBER (CAN) - some LEA's may desire to use the Common Accounting Number to trace selected Federal programs.
In addition, in automated systems, there maybe a need to add some codes for use by the computer. These might include:
7. a transaction code to route the transaction through the system and post the correct files and fields in the data record.
8. a fiscal year code, to assist with closing out one year while beginning to process activity for the new year.
9. a reporting level code to assist in organizing report contents and subtotals.
10. a district or other organizational unit code in a multi-district system.

JULY 1, 1983

PAGE 3-31

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART I

ACCOUNT CLASSIFICATIONS (CONTINUED)

CLASSIFICATION OF BALANCE SHEET ACCOUNTS

The balance sheet codes and accounts are illustrated below. Asterisks indicate the accounts to be reported annually on the balance sheets submitted to the Georgia Department of Education on DE Form 0046. See examples of
financial reports in Appendix A.

BALANCE SHEET ACCOUNTS

BALANCE SHEET
ACCOUNT CODES

DESCRIPTIONS

Assets and Other Debits

Current Assets

Cash

*101 Cash Balances 102 Cash on Hand 103 Petty Cash 104 Change Cash

Cash with Fiscal Agents 105 Cash with Fiscal Agents

Investment Balances

*111 Investment Balances 112 Unamortized Premiums on Investments 113 Unamortized Discounts on Investments (Credits) *114 Interest Receivabl~

Taxes Receivable

*121 Taxes Receivable 122 Estimated Uncollectible Taxes (Credits)

JULY 1. 1983

PAGE 3-32

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART I

ACCOUNT CLASSIFICATIONS (CONTINUED)

BALANCE SHEET
ACCOUNT CODES

DESCRIPTIONS

CURRENT ASSETS (CONTINUED):

Interfund Receivables

*132

Interfund Accounts Receivable

*141

Intergovernmental Accounts Receivable

Other Receivables

151

Loans Receivable

152

Estimated Uncollectible Loans (Credits)

*153

Accounts Receivable (regular)

154

Estimated Uncollectible Accounts Receivable (Credits)

Bond Proceeds Receivable

161

Bond Proceeds Receivable

Inventories

171

Inventories for Consumption

*172

Inventories for Resale

Prepaid Expenses

181

Prepaid Expenses

Other Current Assets

191

Depos i ts

*199

Other Current Assets

JULY 1. 1983

PAGE 3-33

GEORGIA FINANCIAL
ACCOUNTING HANDBOOK PART I

BALANCE SHEET ACCOUNT CODES

ACCOUNT CLASSIFICATIONS (CONT,lNUED) DESCRIPTIONS

Fixed Assets

Sites

211

Sites

Site Improvements

221

Site Improvements

222

Accumulated Depreciation on Site Improvements (Credits)

Buildings

231

Buildings and Building Improvements

232

Accumulated Depreciation on Buildings and Building

Improvements (Credits)

Machinery and Equipment

241

Machinery and Equipment

242

Accumulated Depreciation on Machinery and Equipment

(Credits)

Construction in Progress

251

Construction in Progress

Budgeting Accounts and Other Debits

301

Estimated Revenues (Budget Account)

302

Revenues (Credits)

303

Amount Available in Debt Service Funds

304

Amount to be Provided for Retirement of General

Long-Term Debt

Current Liabilities

Interfund Payables

401

Interfund Loans Payable

*402

Interfund accounts Payable

JULY 1. 1983

PAGE 3-34

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART I

ACCOUNT CLASSIFICATIONS (CONTINUED)

BALANCE SHEET ACCOUNT CODES

DESCRIPTIONS

CURRENT LIABILITIES (CONTINUED):

Intergovernmental Payables

*411

Intergovernmental Accounts Payable

Other Payables

*421 Accounts Payable (regular) 422 Judgments Payable 423 Warrants Payable

Contracts Payable

431 Contracts Payable 432 Construction Contracts Payable - Retained Percentage 433 Construction Contracts Payable

Bond Payab1e

441 Matured Bonds Payable 442 Bonds Payable - Current Liability 443 Unamortized Premimums on Bonds Sold

Loans Payable

*451 Loans Payable

Interest Payable

455 Interest Payable

Accrued Expenses

461 Accrued Salaries

JULY 1, 1983

PAGE 3-35

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART I

ACCOUNT CLASSIFICATIONS (CONTINUED)

BALANCE SHEET ACCOUNT CODES

DESCRIPTIONS

Agency Payables (Employee Contributions Only: Employer Contributions Payable Are Included In Account 421 - Accounts Payable)

*471 Federal Income Tax Payable *472 Georgia Income Tax Payable *473 Teacher Retirement Payable *474 Public School Employees Retirement Payable
*475 Group Health Insurance Payable *476 Other Group Insurance Payable
*477 Social Security Payable *479 Other Agency Payables

Deferred Revenues

481 Deferred Revenues

Other Current Liabilities

491 Deposits Payable 492 Due to Fiscal Agent
*499 Other Current Liabilities

Long-Term Liabilities

Bonds

511 Bonds Payable - Long Term Liability

Notes Payable

521 Notes Payable

Lease Obligations

531 Lease Obligations

Unfunded Pension liabilities

541 Unfunded Pension Liabilities

JULY 1, 1983

PAGE 3-36

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART I

ACCOUNT CLASSIFICATIONS (CONTINUED)

BALANCE
SHEET ACCOUNT CODES

DESCRIPTIONS

BUdgeting Accounts

601

Appropriations (Budget Account)

602

Expenditures (Debit)

603

Encumbrances (Debit)

Fund Equity:

Investment in General Fixed Assets

711

Investment in General Fixed Assets

Contributed Capital

721

Contributed Capital

Retained Earnings

*730

Re serve for ::--=--=_-:--::::----:-_____ (Spec i f i c Purposes) - Retained Earnings

*740

Unreserved Retained Earnings

Fund Balance

751

Reserved for Inventories

752

Reserved for Prepaid Expenses

*753

Reserved for Encumbrances

*798

Reserved Fund Balance (Other)

*799

Unreserved Fund Balance

JULY 1. 1983

PAGE 3-37

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART I

1 1 1 1
1 1 1 1
1 1 1 1
1 1 1 1
1 1 1 1
1 1 1 1
1 1 1 1
1 1
1

CHAPTER 3A
STATE CHART OF ACCOUNTS CLASSIFICATIONS AND DESCRIPTIONS "EFFECTIVE JULY 1, 1986"
The chart of accounts is designed for reporting by the local unit of administration to the State. There is a need for a budget and an accounting system to have the capability to separate expenditures by organizational unit to correspond to the local unit's own organizational structure. No provision has been made in the chart of accounts for this classification since each local unit dictates its own organizational structure.
The chart of accounts will consist of the following maximum required fields for all accounting transactions:

Dl!SCRIPTION
RIlV1lIlUK I\CCOUNTS IlXPl!NDITURB IICCOU11TS 8lIL11NCl! SHEBT l\CCOUIITS

SYSTIlIl NO.
XXXll
XXXX
XXXll

Pl\CILITY 110.
0000 XllXX
0000

BLDG. 110.
0
x
0

PIJND 110.
xxx xxx
XXX

PROOIIM/ TYPB 110.
XllXO

FlSCIIL YI!IIR 110.
x

RBVl!NUB SOURCB/ FUNCTION/
8I\Ll\llCB SHEBT 110.
XXXX

llll.l!l!..- ~--.!_- ~-

XXXO

x

XXXX XXXX

OBJBCT 110.
000
xxx
000

SUBOBJECT
110.

llOOITIONIIL COIlB NOS.

00

_~__XXXl!l!X_ _ _ _

xx - ____ ..l!l!!1t.l!L_____
I1lL_ _ ____ ___ .l!l!l!l!~

NOTE 1: THE LAST DIGIT IN THE PROGRAM/TYPE INDICATES THE TYPB OF EXPENDITURBS (BASIC, ENRICHMENT. UNCLASSIFIED) AND WILL BE USBD ONLY FOR BXPENDITURES.
NOTE 2: PROGRAM/TYPE FIELD ON THE BALANCE SHBET WILL BE USED INITALLY FOR ACCOUNTS RECEIVABLB AND ACCOUNTS PAYABLE.
NOTE 3: FOR FY 87. THE GEORGIA DEPARTMENT OF EDUCATION IS MANDATING ONLY THREB DIGITS FOR THE OBJECT FIELD.
NOTE 4: THE LAST (THIRD) DIGIT IN THE FUND FIELD CAN BE USED FOR A FISCAL YEAR CODE OR TO NUPmER PROJECTS IN A FUND (e.g. E.C.I.A. CHAPTER 1 PROJECTS).
NOTE 5: THE FACILITY FIELD WILL BE USED TO REPORT FOR EXPENDITURES FOR (a) SCHOOL ADMINISTRATION (b) MAINTENANCE AND OPERATION OF PLANT AND (c) CAPITAL OUTLAY (FACILITIES ACQUISTION, CONSTRUCTION. AND IMPROVEI'IBNTS AND OTHER COSTS ALLOCABLB TO FACILITIES).
NOTE 6: THE ADDITIONAL CODES FIELD IS RESERVED FOR POSSIBLE FUTURB USE OF THE GEORGIA DEPARTP'IBNT OF EDUCATION.

JULY 2, 1986, REVISION

JULY 1, 1986, ISSUE

3A-l

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART I

STATE CHART OF ACCOUNTS CLASSIFICATIONS AND PESCRIPTIONS "EFFECTIVE 7/1/86" (CONTINUED)

FUND CODE

A three digit code identifies the accounting entity. The first two digits identify the major fund type. The remaining digit allows the local unit
flexibility to establish sub-funds as needed.

Fund

Codes

Fund

100 GENERAL FUND. A governmental fund type used to account for all financial resources of the LEA except those required to be accounted for in another
fund.

200 DEBT SERVICE FUND. A governmental fund type used to account for the accumulation of resources for, and the payment of, general long-term debt principal, interest and paying agents fees.

300 CAPITAL PROJECTS FUND. A governmental fund type used to account for financial resources to be used for the acquisition or construction of major capital facilities (other than those of proprietary funds and
fiduciary funds). The most common source of revenue in this fund would be the sale of bonds. A sub-fund should be used for each capital project.

410-540

SPECIAL REVENUE FUNDS. Governmental fund types used to account for the

proceeds of specific revenue sources (other than expendable trust or

major capital projects) that are legally restricted to expenditures for

specified purposes. Special revenue funds include:

410

LEAVE (APEG)

420

INSTRUCTIONAL MEDIA (APEG)

430

INSTRUCTIONAL EQUIPMENT (APEG)

440

COMPENSATORY EDUCATION (APEG)

460

POST SECONDARY VOCATIONAL EDUCATION

470

E.C.I.A. CHAPTER 1

480

E.C.I.A. CHAPTER 2

490

EDUCATION FOR THE HANDICAPPED TITLE VI-B

510

ADULT EDUCATION

520

PSYCHO-EDUCATIONAL CENTER

530

Georgia Learning Resources System (G.L.R.S.)

540

ALL OTHER SPECIAL REVENUE

At the local level separate accounting should be maintained for each of the above funds. Each fund must maintain its own identity by separate fund code when reporting to the Georgia Department of
Education.

JULY 2, 1986, REVISION

JULY 1, 198b, ISSUE

3A-2

GEORGIA FINANCIAL ACCOUNTING HANDBOOK
PART I

STATE CHART OF ACCOUNTS CLASSIFICATIONS AND DESCRIPTIONS "EFFECTIVE 7/1/86" (CONTINUED)

Fund

Code

Fund

600 ENTERPRISE FUND. A proprietary fund type used to account for
operations which are financed and operated in a manner similar to private business enterprises. The costs (expenses including depreciation and indirect costs) of providing goods or services to the students or general public on a continuing basis are financed or
recovered primarily through user charges. Enterprise funds are also used to account for operations where the school board or State regulatory agency has decided that periodic determination of revenues
earned, expenses incurred and net income is appropriate for capital
maintenance, public policy. management control, accountability or other purposes. The chief example of an Enterprise Fund is the School Food
and Nutrition Program. Other possibilities might include a bookstore operation, an athletic stadium operation, or a community swimming pool
operation.

650 INTERNAL SERVICE FUND. A proprietary fund type used to account for the operation of LEA functions which provide goods or services to other
LEA functions, other LEAs, or to other governmental units on a
cost-reimbursable basis. The chief example of the Internal Service Fund is a R.E.S.A (former C.E.S.A.). Other examples may be central
warehousing and purchasing, central data processing, and central printing and duplication operations.

700 FIDUCIARY FUND. A fund type used to account for assets held by a LEA in a trustee capacity or as an agent for individuals, private organizations, other governmental units and/or other funds. Trust
funds would include non-expendable trust funds, expendable trust funds, and pension trust funds. Fiduciary funds may include funds for a parent-teacher organization or a teacher organization.

ACCOUNT GROUPS

800 GENERAL FIXED ASSETS ACCOUNT GROUP. Account Groups to record the cost of all property, plant and equipment other than those accounted for in
the proprietary funds or fiduciary funds. General fixed assets include sites, site improvement, building and building improvement, machinery
and equipment.

900 GENERAL LONG-TERM DEBT ACCOUNT GROUP. Account groups to record the
principal amount of all long-term liabilities excluding those of the proprietary funds or fiduciary funds. The long-term liabilities include general obligation bonds, capitalized lease obligations, legal judgments, special assessments payable to cities or other governmental units, unfunded pension liabilities, and notes and warrants which are
not due within one year.

JULY 1, 1986, ISSUE

3A-3

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART I

STATE CHART OF ACCOUNTS CLASSIFICATIONS AND DESCRIPTIONS "EFFECTIVE 7/1/86" (CONTINUED)

PROGRAM CODE

A three digit code identifies specific activities and procedures designed to accomplish a predetermined objective. Initially this field will
accumulate the data for the functions used in QBE Program Accounting, and for required reporting of the QBE programs and other programs as specified by the Georgia Department of Education. Specific program codes are to be assigned by the Georgia Department of Education with a range of codes in the field to be used at the local unit's discretion. The first three digits of the code will denote the specific program. The fourth digit will identify the type of expenditure (Basic, Enrichment, or Unclassified).

TYPE CODES

XXXO

UNCLASSIFIED EXPENDI1URES (NOT QBE BASIC OR ENRICHMENT):

Unclassified type expenditures are those that are not General

Fund QBE Basic Expenditures or General Fund Enrichment

Expenditures.

For Example, parts purchased for bus repair would be charged to
Student Transportation supplies and coded 100-1320-2100-610. The last "0" in the code indicates an unclassified type expenditure (not QBE Basic or Enrichment).

XX Xl

QBE BASIC EXPENDITURES: Programs dealing with the interaction

between students and teachers whereby a uniformily sequenced

core curriculum is provided for grades kindergarten through 12

for those competencies defined by the State Board of Education

in Ga. Code Section 20-2-140 which a student is expected to or

provided the opportunity to master. Costs associated with these

programs are "basic expenditures" which are synonymous with

"direct instructional costs." Examples of Basic Programs are

those comprising the core curriculum. The last "1" in an

account indicates "Basic QBE expenditures."

XXX2

ENRICHMENT EXPENDITURES: Defined by the State Board generally

as programs which do not devote a major portion of class time to

the competencies adopted by the state board under Ga. Code

Section 20-2-140. Examples of enrichment programs would be

those outside the core curriculum. The last "2" in an account

indicates "Enrichment expenditures."

JULY 1, 19B6, ISSUE

3A-4

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART I

STATE CHART OF ACCOUNTS CLASSIFICATIONS AND DESCRIPTIONS "EFFECTIVE 7/1/86" (CONTINUED)

PROGRAM CODES

OOOX

UNDISTRIBUTED PROGRAMS (APEG/NON CATEGORICAL AND/OR LOCAL

PROGRAMS): All charges wh1ch are not d1rectly ass1gned to a

program are class1f1ed here. For example, General

Adm1n1strat1on expenses are not ass1gned to programs and are

charged to program code 0000 such as an expend1ture for

Comrnun1cat1on for the Super1ntendent 1 s off1ce would be coded

100-0000-2300-530 (See "T" accounts). The three zeros 1n the

program f1eld 1nd1cate the expense was not d1str1buted to a

program (000) and the last zero 1nd1cates the expense was

unclass1f1ed (not QBE Bas1c or Enr1chment).

Federal grant expend1tures are 1dent1f1ed by project year d1g1ts 1n the Fund Code. The Chapter I Fund codes are 470-479, w1th the last d1g1t 1dent1fy1ng the project year. For example, the
salary of a Chapter I K1ndergarten teacher 1n FY 87 project
would be coded 477-0000-1000-110. The code "0000" 1nd1cates the salary was not d1str1buted to a QBE program. It 1s 1mportant that program and project account1ng be used 1n Federal programs.

REGULAR PROGRAMS

101X

KINDERGARTEN

102X

GRADES 1-3

103X

GRADES 4-8

104X

GRADES 9-12

111X

SECONDARY GENERAL LABORATORY

121X

STAFF DEVELOPMENl (Code Sec. 20-2-182f)

122X

PROFESSIONAL DEVELOPMENl (Code Sec. 20-2-250/251)

131X

MEDIA CENTERS (FUNCTION 2220 ONLY)

JULY 2, 1980, REVISION

JULY 1, 1986, ISSUE

3A-5

GEORGIA FINANCIAL
ACCOUNTING HANDBOOK PART I

STATE CHART OF ACCOUNTS CLASSIFICATIONS AND DESCRIPTIONS "EFFECTIVE 7/1/86" (CONTINUED)

REGULAR PROGRAMS (CONTINUED)

PROGRAM/TYPE CODES

132X

PUPIL TRANSPORTATION (CODE SEC. 20-2-188)

133X

ISOLATED SCHOOLS (CODE SEC. 20-2-292)

134X

IN-SCHOOL SUSPENSION (CODE SEC. 20-2-155)

135X

LIMI1ED ENGLISH SPEAKING (CODE SEC. 20-2-156)

13bX

SPECIAL INSTRUCTIONAL ASSISTANCE (CODE SEC. 20-2-153)

137X

CAREER LADDER AND OTHER INCENTIVE COMPENSATION

(CODE SEC. 20-2-213)

141X

INNOVATION (CODE SEC. 20-2-240)

142X

ELECTRONIC TECHNOLOGY PROGRAM (CODE SEC. 20-2-242)

143X

GOVERNOR'S EMERGENCY PROGRAM

145X

INDIRECT COST

147X

EQUALIZATION GRANT

149X

SPARSITY GRANT (CODE SEC. 20-2-292)

151X

MIDDLE SCHOOL INCEN1IVE GRANT (CODE SEC. 20-2-290)

152X198X

SPECIAL PROJECTS

JULY 2, 1986, REVISION

JULY 1, 1986, ISSUE

3A-6

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART I

STATE CHART OF ACCOUNTS CLASSIFICATIONS AND DESCRIPTIONS "EFFECTIVE 7/1/86 A (CONTINUED)

SPECIAL EDUCATION PROGRAMS

200X SPECIAL EDUCATION (HOLD HARMLESS) (REVENUES ONLY)

201X SPECIAL EDUCATION PROGRAMS (QBE REGULAR) (REVENUES ONLY)
202X MILD RESOURCE (EXPENDITURES ONLY)
203X MODERATE RESOURCE (EXPENDITURES ONLY)
204X MODERATE SELF-CONTAINED (EXPENDITURES ONLY) 205X SEVERE SELF-CONTAINED (EXPENDITURE ONLY) 206X MENTAL RETARDATION SERVICE CENTER (REVENUES AND/OR EXPENDITURES) 211X GIFTED (REVENUES AND/OR EXPENDITURES)

Please note that 100% of the funds earned for special education under the

QBE formula and the hold harmless provision must be used exclusively for

special education programs (A. resourced mildly handicapped, B. resourced

moderate, C. self-contained moderate, D. self-contained severe and E.

gifted students).

---

221X REMEDIAL EDUCATION (FUNCTION 1000 ONLY) 231X TUITION FOR HANDICAPPED CHILDREN (CODE SEC. 20-2-152)
241X BUS REPLACEMENT 251X REGIONAL EDUCATIONAL SERVICES (RESA)
261X PSYCHOEDUCATIONAL SERVICES (SED) 271X GEORGIA LEARNING RESOURCES SERVICES (GLRS)

VOCATIONAL PROGRAMS

301X SECONDARY VOCATIONAL LABORATORY (FUNCTION 1000 ONLY) 390X OTHER SECONDARY VOCATIONAL

CONTRA PROGRAMS

400X SPECIAL EDUCATION (HOLD HARMLESS ADJUSTMENT) 401X LOCAL FAIR SHARE (CURRENT YEAR)

403X LOCAL FAIR SHARE (ADJUSTMENTS FOR AUDIT EXCEPTIONS)

405X LOCAL FAIR SHARE (ADJUSTMENT FOR FAILURE TO PROVIDE AND USE PREVIOUS FISCAL YEAR LOCAL FAIR SHARE)

407X LOCAL FAIR SHARE (ADJUSTMENTS FOR FAILURE TO SPEND REQUIRED AMOUNTS ON PREVIOUS FISCAL YEAR PROGRAMS)

409X PREPAID TEACHER RETIREMENT

GEORGIA FINANCIAL

ACCOUNTING HANDBOOK

JULY 22, 1986 (A)

3A-7

PART I

STATE CHART OF ACCOUNTS CLASSIFICATIONS AND DESCRIPTIONS "EFFECTIVE 7/1/86" (CONTINUED)

REVENUE SOURCE CODES

A four-digit code which descr1bes the source of revenues.

Source Codes Revenue Source

1000

REVENUE FROM LOCAL SOURCES.

1110 AD VALOREM TAXES. Tangible and intangible taxes received for school purposes by a city or county.

1120 LOCAL OPTION SALES TAX. Taxes assessed by a unit other than a LEA upon the sale and consumption of goods and services.

1170 APPROPRIATION FROM CITY OR COUNTY. Revenue received from a city or county government and transferred to the LEA.

1190 OTHER TAXES. Other forms of taxes collected by a city or county government and transferred to the LEA.

1310 TUITION FROM OTHER GEORGIA LEAs. Tuition revenue from other Georgia LEAs.

1320 OTHER TUITION. Tuition revenue from other sources.

1500 EARNINGS ON INVESTMENTS OR DEPOSITS. Revenue from invested holdings.

1920 CONTRI8UTIONS FROM PRIVATE SOURCE. Revenue from a
philanthropic foundation, private individuals, or private organizations for which no repayment or special service to the contributor is expected.

1950 SERVICES PROVIDED OTHER LOCAL EDUCATIONAL AGENCIES OR OTHER GOVERNMENTAL UNIT. Revenue from services provided other than for Tuition. These services could include
transportation, data processing, purchasing, maintenance, cleaning, consulting and guidance. This account also includes revenue from sales to LEA's.

1960 COST OF SALES. (Contra to Account 1950) Cost of goods purchased for resale.

1980 STUDENT SUPPLY FEES. Revenue from students for supplies.

1990 Federal Indirect Cost Reimbursement. Reimbursement from Federal Programs with an approved indirect cost rate.

GEORGIA FINANCIAL

ACCOUNTING HANDP'

JULY 22,1986 (A)

3A-8

PART I

STATE CHART OF ACCOUNTS CLASSIFICATIONS AND DESCRIPTIONS "EFFECTIVE 1/1/86" (CONTINUED)

Source Codes Revenue Source

1000 REVENUE FROM LOCAL SOURCES.

1995 OTHER LOCAL REVENUES. Revenue from Local Sources not otherwise c1ass if i ed .

Source Codes

3000

REVENUE FROM STATE SOURCES

3100 APEG GRANTS (INCLUDING SUPERINTENDENT'S SALARY). Revenue from Georgia Department of Education for APEG Items.

3120 QUALITY BASIC EDUCATION PROGRAM GRANTS (STATE AND LOCAL FUNDS). Total QBE Program Grant Amounts (includes Local Fair Share). The net of accounts 3120 and 3140 will equal QBE State Revenue.

3140 QBE CONTRA ACCOUNT (DEBIT). Debit entry for total OBE Program
Grant Local Fair share only. The net of accounts 3120 and 3140 will equal OBE State Revenue.

3200 EQUALIZATION (PARITY) (CODE SEC. 20-2-165). Revenue to Equalize local monies raised per student statewide.

3300 MIDDLE SCHOOL INCENTIVE (CODE SEC. 20-2-290). Incentive Grant to LEA for operating middle school.

3400 INCENTIVE AWARD GRANTS (CODE SEC. 20-2-243). Recognition Grants for outstanding performance or improvement.

3500 SCHOOL AND COMMUNITY NUTRITION GRANTS. State portion of school and community nutrition Grants. Federal portion of grant is
recorded in 4850.

3600 CAPITAL OUTLAY GRANTS. Entitlement for Acquisition, Construction, and Improvement of Educational Facilities.

3100 EDUCATION PURPOSES TO ENCOURAGE TAX RELIEF. Tax rebate appropriated by the General Assembly.

3800 OTHER GRANTS FROM GEORGIA DEPARTMENT OF EDUCATION. Other grants from the Georgia Department of Education not otherwise c1ass if i ed .

3995 FUNDS FROM OTHER STATE AGENCIES. Revenues from state agencies other than Department of Education.

JULY 1, 1986, ISSUE

3A-9

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART I

Source Code 4000
4820 4830
4850
4995
5000 5100 5200 5300 5995

STATE CHART OF ACCOUNTS CLASSIFICATIONS AND DESCRIPTIONS "EFFECTIVE 7/1/86" (CONTINUED)
REVENUE FROM FEDERAL SOURCES
PL 81-874 (School assistance in federally affected areas -
M&0.)
REVENUE IN LIEU OF TAXES. Commitments or payments made out of General Revenues by the Federal Government to the LEA in lieu of taxes 1t would have had to pay had 1ts property or other tax base been subject to taxation by the LEA on the same basis as pr1vately owned property or other tax base.
FEDERAL CATEGORICAL GRANTS THROUGH GEORGIA DEPARTMENT OF EDUCATION. Federal Revenue Grants or portion of grants paid through the Department of Education.
ALL OTHER FEDERAL GRANTS. Revenues direct from the federal government as grants. Unused monies are usually returned to the governmental unit.
OTHER SOURCES
SALE OF BONDS. Building Fund receipts from the Sale of Bonds (net proceeds).
INCOMING TRANSFERS FROM OTHER FUNDS. Amounts recorded from another fund whichw1ll not be repa1d.
COMPENSATION FOR LOSS OF ASSETS. Proceeds from the sale of school property or compensat1on for the loss of assets.
OTHER SOURCES. Any other source of funds not otherwise c1ass 1f1ed .

JULY 1, 1986, ISSUE

3A-10

GEORGIA FINANCIAL ACCOUNTING HANDBOOK
PART I

STATE CHART OF ACCOUNTS CLASSIFICATIONS AND DESCRIPTIONS "EFFECTIVE 1/1/86" (CONTINUED)

FUNCTION

The function describes the activity for which a service or material is acquired. Functions include all activities or actions which are performed to accomplish the objectives of an enterprise. l"he functions of a LEA are classified into five broad areas: Instruction, Support Services, Operation of Non-Instructional Services, Facilities Acquisition and Construction, and Other Outlays. Functions are further broken down into sub-functions and areas of responsibility.

Function Codes

FUNCTION

"1000

INSTRUCTION

Instruction. Instruction includes dealing directly with the interaction
between teachers and students. Teaching may be provided for students in a school classroom, in another location such as a home or hospital, and in other learning situations such as those involving co-curricular activities. It may also be provided through some other approved medium such as television, radio, telephone, and correspondence. Included here are the activities of aides or classroom assistants of any type (clerks, graders, teaching machines, etc.) which assist in the instructional process.

2000

SUPPORT SERVICES FUNCTION

2100

PUPIL SERVICES. Activities designed to assess and improve the

well-being of students and to supplement the teaching process.

2210

IMPROVEMlNT OF INSTRUCTIONAL SERVICES. Activities which are

designed primarily for assisting instructional staff in planning,

developing, and evaluating the process of providing challenging

learning experiences for students. These activities include

curriculum development, techniques of instruction, child

development and understanding, staff training, etc.

2220

EDUCATIONAL MEDIA SERVICES. Activities concerned with the use of

all teaching and learning resources, including hardware and

content materials. Educational media can be defined as any device

or content materials used for teaching and learning purposes.

These include printed and non-printed sensory materials.

2300

GENERAL ADMINISTRATION: Activities concerned with establishing

and administering policy for operating the LEA.

2400

SCHOOL ADMINISTRATION. Activities concerned with overall

administrative responsibility for school operations.

JULY 1, 198b, ISSUl

3A-11

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART I

Function Codes 2000
2500
2600
2100 2800
2900 3000
3100
3900

STATE CHART OF ACCOUNTS CLASSIFICATIONS AND DESCRIPTIONS "EFFECTIVE 1/1/86" (CONTINUED)
SUPPORT SERVICES fUNCTION (CONTINUED)
SUPPORT SERVICES - BUSINESS. Activities concerned with paying, transporting, exchanging and maintaining goods and services for the LEA. Included are the fiscal and internal services necessary for operating the LEA. This function includes budgeting, receiving and disbursing, financial and property accounting, payroll, inventory control, internal auditing and funds management.
OPERATION AND MAINTENANCE Of PLANT SERVICES. Activities concerned with keeping the physical plant open, comfortable, and safe for use, and keeping the grounds, bUildings, and equipment in effective working condition and state of repair. This includes the activities of maintaining safety in buildings, on the grounds, and in the vicinity of schools.
STUDENT l"RANSPORTATION SERVICE. Activities concerned with the conveyance of students to and from school. It includes trips between home and school, and trips to school activities.
SUPPORT SERVICES - CENTRAL. Activities, other than general administration, which support each of the other instructional and supporting services programs. These activities include planning, research, development, evaluation, information, staff, and data processing services.
OTHER SUPPORT SERVICES. All other support services not properly classified elsewhere in the 2000 series. Generally, this function will include services purchased from another LEA or RESA (CESA) as indicated by object codes 592 and 593.
OPERATION OF NON-INSTRUCTIONAL SERVICES
fOOD SERVICES OPERATION. Activities concerned with providing food to students and staff in a school or LEA. This service area includes the preparation and serving of regular and incidental meals or snacks in connection with school activities and delivery of food.
OTHER OPERATION Of NON-INSTRUCTIONAL SERVICES. Operations of non-instructional services not properly classified elsewhere in the 3000 series.

JULY 1, 1986, ISSUE

3A-12

GEORGIA fINANCIAL ACCOUNTING HANDBOOK PART I

Function Codei 4000
5000
5100

~JAlE. CHARl OF ACCOUNTS CLASSIFICATIONS AND DESCRIPTIONS "EFFECTIVE 1/1/86" (CONTINUED)
FACILITIES ACQUISITION AND CONSTRUCTION
FACILITIES ACQUISITION AND CONSTRUCTION SERVICES. Activities concerned with the acquisition of land and buildings; renovating buildings; the construction of buildings and additions to buildings, initial installation or extension of service systems and other built-in equipment; and improvements to sites.
OTHER OUTLAYS
OTHER USES. A number of outlays are not properly classified as expenditures, but require budgetary or accounting control. These are classified under Other Uses.
DEBT SERVICE. Servicing of the debt of the LEA including payments of both principal and interest and paying agent's fees. Normally, only long-term debt service (obligations in excess of one year) is recorded here. Interest on current loans (repayable within one year of receiving the obligation) is charged to function 2500. The receipt and payment of principal on those loans is handled as an adjustment to the balance sheet account 0451.

JULY 1, 1986, ISSUE

3A 13

GEORGIA FINANCIAL ACCOUN11NG HANDBOOK PAR r I

STATE CHART OF ACCOUNTS CLASSIFICATIONS AND DESCRIPTIONS "EFFECTIVE 7/1/86" (CONTINUED)

DESCRIPTIONS OF BALANCE SHEET ACCOUNTS

ASSETS AND OTHER DlBITS

Assets and other debits include what is owned and other items not owned as of the date of the balance sheet but expected to become fully owned at some future date as well as other budgeting and offsetting accounts which normally have debit balances.

Balance Sheet Codes

Description

0101

!=ASHJ!t BANK. All funds on depos it with a bank or savi ngs and

loan institution.

0111

INVESTMENTS. Securities and real estate held for the production

of income in the form of interest, dividends, rental, or lease

payments. The account does not include fixed assets used in LEA

operations. Separate accounts for each category of investments

may be maintained.

0114

INTEREST RECEIVABLE ON INVESTMENTS. The amount of interest

receivable on investments.

0121

TAXES REClIVABLE. The uncollected portion of taxes which a LEA

or governmental unit has levied and which has become due,

including any interest or penalties which may be accrued.

Separate accounts may be maintained on the basis of the tax

commissioner's records of current and/or delinquent taxes for a

calendar year.

0132

INTERFUND ACCOUNTS RECEIVABLE. An asset account used to

indicate amounts owed to a particular fund by another fund in

the same LEA.

0141

INTERGOVERNMlNTAL ACCOUNTS RECEIVABLE. Amounts due to the

reporting governmental unit from another governmental unit.

These amounts may represent grants-in-aids, shared taxes, taxes

collected for the reporting unit by another unit, loans, and

charges for services rendered by the reporting unit for another

government.

0153

OTHER ACCOUNTS RECEIVABLE. Amounts owing on open account from

private persons, firms or corporations for goods and services

furnished by a LEA (but not including amounts due from other

funds or from other governmental units).

JULY 1, 1986, ISSUE

3A-14

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART I

STATE CHART OF ACCOUNTS CLASSIFICATIONS AND DESCRIPTIONS "EFFECTIVE 7/1/86" (CONTINUED)

BALANCE SHEET ACCOUNTS (CONTINUED)

Balance Sheet Codes

ASSETS (0100) (CONTINUED)

0172

INVENTORIES FOR RESALE. The value of goods held by a LEA for

resale rather than for use 1n 1ts own operat1ons.

0199

OTHER CURRENT ASSETS. Current assets not prov1ded for elsewhere.

BUDGETING ACCOUNTS AND OTHER DEBITS (0300)

0301

ESTIMATED REVENUES AND OTHER SOURCE RECEIPTS (BUDGET ACCOUNT,

INTERIM STATEMENTS ONLY). The amount of revenues and other

source rece1pts est1mated to be rece1ved or to become rece1vable

dur1ng the f1scal per1od. At the end of the f1scal per1od, the

account 1s closed out 1nto Fund Equ1ty and does to appear 1n the

balance sheet. Th1s account would appear 1n 1nter1m f1nanc1al

statements.

0302

REVENUES AND OTHER SOURCE RECEIPTS. The total of all revenues

and other source rece1pts rea11zed dur1ng a per1od. Th1s

represents the 1ncrease 1n ownersh1p equ1ty dur1ng a des1gnated

per10d of t1me. The account appears only 1n a balance sheet

prepared dur1ng the f1scal per1od. At the end of the f1scal

per1od, the account 1s closed out 1nto Fund Equ1ty and does not

appear 1n the balance sheet.

LIABILITIES, RESERVES, AND FUND BALANCES

L1ab1l1t1es, reserves and fund balances are LEA debts plus 1tems wh1ch are not debts but wh1ch may become debts at some future t1me, as well as other budgetary accounts wh1ch normally appear only on the 1nter1m f1nanc1al statements.

CURRENT LIABILITIES. Those debts the LEA expects to pay w1th1n a short per10d of t1me, usually w1th1n a year.

JULY 22, 1986

3A-15

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART I

STATE CHART OF ACCOUNTS CLASSIFICATIONS AND DESCRIPTIONS "EFFECTIVE 7/1/86" (CONTINUED)

BALANCE SHEET ACCOUNTS (CONTINUED)

Balance
Sheet Codes

CURRENT LIABILITIES (0400) (CONTINUED)

0402

INTERFUND ACCOUNTS PAYABLE. A 11ab111ty account used to

1nd1cate amounts owed by a part1cu1ar fund to another fund 1n

the same LEA.

0411

INTERGOVERNMENTAL ACCOUNTS PAYABLE. Amounts owed by the

report1ng LEA to another governmental un1t.

0421

ACCOUNTS PAYABLE. L1ab111t1es on open account ow1ng to pr1vate

persons. f1rms. or corporat10ns for goods and serv1ces recorded

by a LEA.

0451

LOANS PAYABLE. Short-term ob11gat10ns represent1ng amounts

borrowed for short per10ds of t1me usually ev1denced by notes

payable or warrants payable.

0455

INTEREST PAYABLE. Interest due w1th1n one year.

0471

FEDERAL INCOME TAX PAYABLE. Payroll w1thho1d1ngs.

0472

GEORGIA INCOME TAX PAYABLE. Payroll w1thho1d1ngs.

0473

TEACHER RETIREMENT PAYABLE. Payroll w1thho1d1ngs.

0474

PUBLIC SCHOOL EMPLOYEES RETIREMENT PAYABLE. Payroll

w1thho1d1ngs.

0475

GROUP HEALTH INSURANCE PAYABLE. Payroll w1thho1d1ngs.

0476

OTHER GROUP INSURANCE PAYABLE. Payroll w1thho1d1ngs.

0477

SOCIAL SECURITY PAYABLE. Payroll w1thho1d1ngs.

0479

OTHER PAYABLES. Payroll w1thho1d1ngs.

0499

OTHER CURRENT LIABILITIES. Other current 11ab111t1es not

prov1ded for elsewhere.

JULY 22. 1986

3A- 16

GEORGIA FINANCIAL APACRCTOUINTING HANDBOOK

STATE CHART OF ACCOUNTS CLASSIFICATIONS AND DESCRIPTIONS "EFFECTIVE 7/1/86" (CONTINUED)

BALANCE SHEET ACCOUNTS (CONTINUED)

BUDGET ACCOUNTS. These categor1es represent accounts wh1ch reflect budgeted and actual amounts related to expend1tures and encumbrances.

Balance Sheet Codes

0601

APPROPRIATIONS (BUDGET~ACCOUNT). Th1s account records

author1zat1ons granted by the school board or leg1slat1ve

body to make expend1tures for spec1f1c purposes. Th1s

account appears 1n a balance sheet prepared dur1ng the f1scal

per1od. It 1s closed out and does not appear 1n the balance

sheet prepared at the close of the f1scal per1od.

0603

ENCUMBRANCES. Th1s account des1gnates ob11gat1ons 1n the

form of purchase orders, contracts, or salary comm1tments

wh1ch are chargeable to an appropr1at1on and for wh1ch part

of the appropr1at1on 1s reserved. In an 1nter1m balance

sheet, encumbrances are deducted along w1th the expend1tures

from the appropr1at1ons account to arr1ve at the unencumbered

balance.

Fund Egu1ty. These are accounts show1ng the excess of a fund's assets over 1ts l1ab1l1t1es. Port1ons of the fund balance may be reserved 1f there 1s a legally b1nd1ng restr1ct1on, usually externally 1mposed, earmark1ng resources for a spec1f1c future use such as a Reserve for Encumbrance. In add1t1on, there 1s a reservat10n of fund balance that denotes funds are not ava1lable for appropr1at1on or expend1ture and 1s app11cable only to Governmental Fund types, such as a Reserve for Inventor1es or Prepa1d Insurance.

If port1ons of the fund balance are set as1de for reasons other than those stated above, such "set as1de" 1s not a reserve but a port1on of the Unreserved Fund Balance wh1ch has been "des1gnated" for future use by management. Such des1gnat1on would be part of account 0799, Unreserved Fund Balance.

0721

CONTRIBUTED CAPITAL. An equ1ty account 1n the propr1etary

funds wh1ch shows the amount of fund cap1tal contr1buted by

the governmental un1t from general government revenue and

resources. Annual subs1d1es to cover operat1ng def1c1ts are

not recorded here. These amounts are recorded as other sources

(1nterfund transfers) and closed to the unreserved reta1ned

earn1ng account (0740).

JULY 22, 1986

3A-17

GEORGIA FINANCIAL
ACCOUNTING HANDBOOK PART I

STATE CHART OF ACCOUNTS CLASSIFICATIONS AND DESCRIPTIONS "EFFECTIVE 7/1/86" (CONTINUED)

BALANCE SHEET ACCOUNTS (CONTINUED)

Balance Sheet
Codes

FUND EQUITY ACCOUNTS (0700) (CONTINUED)

0730

RESERVE FOR---------(SPECIAL PURPOSES) - RETAINED EARNINGS.

The accumulated earnings of the proprietary funds which have

been retained in the fund and which are reserved for a specific

purpose. One example would be funds reserved for the future

purchase of equipment.

0740

UNRESERVED RETAINED EARNINGS. The accumulated earning of the

proprietary funds which have been retained in the fund and which

are not reserved for any specific purpose.

0753

RESERVE FOR ENCUMBRANCES. A reserve representing the separation

of a portion of a fund balance to provide for unliquidated

encumbrances. Separate accounts may be maintained for current

encumbrances and prior year encumbrances.

0798

RESERVED FOR

. A portion of fund equity set

aside for legally authorized purposes or to reflect that

spending resources are not available, having already been spent

(e.g., a Reserve for Prepaid Insurance).

0799

UNRESERVED FUND BALANCE. The excess of a fund's assets over

its liabilities and reserves. Portions of this account may be

"designated" as described above. (e.g., Designated for Equipment

Purchases).

JULY 22, 1986

3A-18

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART I

STATE CHART OF ACCOUNTS CLASSIFICATIONS AND DESCRIPTIONS "EFFECTIVE 1/1/86" (CONTINUED)

OBJECT CODE

Th1s d1mens1on 1s used to descr1be the serv1ce or commod1ty obta1ned as the result of a spec1f1c expend1ture. There are n1ne major object categor1es wh1ch may be further subd1v1ded. A LEA may use as many d1fferent objects as 1t deems necessary to record properly 1ts expend1tures, by choos1ng add1t1onal 3-d1g1t objects, or by us1ng the 2-d1g1t suff1x prov1ded 1n the account structure. However, for state report1ng, all objects must be class1f1ed to the objects descr1bed here1n as state-requ1red objects. If exper1ence shows that expend1tures reported to the State are be1ng mater1ally d1storted by these 11m1ted objects, add1t1onal objects w111 be added.

PERSONAL SERVICES - SALARIES (100)

Object Codes

110

TEACHER SALARIES (FUNCTION 1000, 2210). The contract salary of

full-t1me and part-t1me teachers whose employment requ1res that

they hold a va11d Georg1a teacher cert1f1cate. Salar1es of

subst1tute teachers are also recorded here.

115

EXTENDED STAFF SALARIES. (Funct1on 1000, 2100, 2220, 2300,

2400, 2500, 2600, 2100, 2800, 2900, 3100, 3800, and 4000)

Salar1es pa1d for Extended day and/or extended year contracts.

120

SALARY OF SUPERINTENDENT, RESA DIRECTOR, OR AVTS DIRECTOR

(FUNCTION 2300). Contract salary of super1ntendent, RESA

D1rector or AVTS D1rector.

130

SALARY OR PER DIEM OF BOARD MEMBERS (FUNCTION 2300). The

compensat1on (whether salary or per d1em) pa1d to the members of

the local board of educat1on.

140

SALARIES - AIDES AND PARAPROFESSIONALS (FUNClI0NS 1000, 2210).

Salar1es of a1des and paraprofess1onals who ass1st teachers 1n

the classrooms. Salar1es of other a1des and paraprofess1onals

should be charged to object 190.

142

SALARIES - CLERICAL (FUNCTIONS 1000, 2100, 2210, 2220, 2300,

2400, 2500, 2600, 2100, 2800, 2900, 3100, 3900, 4000). Salar1es

of cler1cal, secretar1al, account1ng cler1cal, or a

sub-profess1onal perform1ng adm1n1strat1ve support 1n any

funct1on.

JULY 2, 1986

3A-19

GEORGIA FINANCIAL
ACCOUNTING HANDBOOK PART I

STATE CHART OF ACCOUNTS CLASSIFICATIONS AND DESCRIPTIONS "EFFECTIVE 7/1/86" (CONTINUED)

OBJECT CODES (CONTINUED)

PERSONAL SERVICES - SALARIES (100) (CONTINUED)

Object Codes

180

SALARIES (BUS DRIVERS) (FUNCTION 2700). Salaries of full and

part-time bus drivers and substitute bus drivers.

190

SALARIES (OTHER) (FUNCTIONS 1000, 2100, 2210, 2220, 2300, 2400,

2500, 2600, 2700, 2800, 2900, 3100, 3900, 4000). For state

reporting, this object must contain all other salaries which are

not classifiable to one of the objects defined above.

PERSONAL SERVICES - EMPLOYEE BENEFITS (200)

200

EMPLOYEE BENEFITS (FUNCTIONS 1000, 2100, 2100, 2220, 2300, 2400,

2500, 2600, 2700, 2800, 2900, 3100, 3900, 4000). Expenditures

by the LEA on behalf of employees. These amounts are not

included in the gross salary, but are in excess of that amount.

Such payments are fringe benefit payments and, while not paid

directly to employees, are part of the cost of personal

services. For state reporting, the LEA must consolidate all of

its employee benefit objects into this object. The LEA may need

to assign objects in addition to those described in this

chapter; however, the employee benefit applicable to any salary

must be charged directly to the funct10n wh1ch the salary was

charged.

PURCH~SED PROFESSIONAL AND TECHNICAL SERVICES (300)

300

PURCHASED PROFESSIONAL AND TECHNICAL SERVICES (FUNCTIONS 1000,

2100, 2210, 2220, 2300, 2400, 2500, 2600, 2700, 2800, 2900,

3100, 3900, 4000). Serv1ces wh1ch can be performed only by

persons or f1rms w1th spec1a11zed sk1lls and knowledge. While a

product mayor may not result from the transact1on, the pr1mary

reason for the purchase 1s the serv1ce provided. Included are

the serv1ces of arch1tects, eng1neers, aud1tors, dent1sts,

med1cal doctors, lawyers, consultants, teachers, accountants,

etc. LEAs may ass1gn objects to each type of serv1ce prov1ded

and poss1bly expand beyond those descr1bed here1n, e1ther by

ass1gn1ng add1t1onal 3-d1g1t objects or by us1ng the 2-d1g1t

suffix in the account structure.

JULY 2, 1986

3A-20

GEORGIA FINANCIAL
ACCOUNTING HANDBOOK PART I

STATE CHART OF ACCOUNTS CLASSIFICATIONS AND DESCRIPTIONS "EFFECTIVE 7/1/86" (CONTINUED)

OBJECT CODES (CONTINUED)

Object Codes

PURCHASED PROPERTY SERVICES (400)

410

WATER, SEWER, AND CLEANING SERVICES (FUNCTION 2600).

Expend1tures for ut111ty serv1ces other than energy serv1ces

suppl1ed by publ1c or pr1vate organ1zat1ons. Water, sewerage,

and purchased clean1ng serv1ces are 1ncluded here (1nclud1ng

grounds ma1ntenance). Telephone and telegraph are not 1ncluded

here but are class1f1ed under object 530.

430

REPAIRS AND MAINTENANCE SERVICES (FUNCTIONS 2600, 2700).

Expend1tures for repa1rs and ma1ntenance serv1ces not prov1ded

d1rectly by LEA personnel. Th1s 1ncludes contracts and

agreements cover1ng the upkeep of bu1ld1ngs and egu1pment.

Costs for renovat1ng and remode11ng are not 1ncluded here, but

are class1f1ed under object 720. Repa1r And Ma1ntenance

Serv1ces to Bu1ld1ngs And Equ1pment should be charged to

funct10n 2600 (Ma1ntenance And Operat1on Of Plant). Repa1rs And

Ma1ntenance Of Buses should be charged to funct10n 2700 (Student

Transportat1on).

442

RENTAL OF EQUIPMENT AND VEHICLES (FUNCTIONS 1000, 2100, 2210,

2220, 2300, 2400, 2500, 2600, 2700, 2800, 2900, 3100, 3900,

4000). Expend1tures for leas1ng or rent1ng of equ1pment or

veh1cles for both temporary and long-range use of the LEA. The

lease or rental of veh1cles for or by employees for personal

transportat1on 1s class1f1able under object 580 (Travel) and the

LEAs, lease-purchase, or purchase of school buses are

class1f1able under object 732. (Purchase/Lease of Buses).

443

RENTAL OF COMPUTER EQUIPMENT (FUNCTIONS 1000, 2100, 2210, 2220,

2300, 2400, 2500, 2600, 2700, 2800, 2900, 3100, 3900, 4000).

Expend1tures for the leas1ng or rental of computer equ1pment

1nclud1ng CPUs, storage dev1ces, pr1nters, 1nput dev1ces, word

processors, or other equ1pment needed for electron1c comput1ng.

444

OTHER RENTALS (FUNCTION 2600). Expend1tures for the rental or

leas1ng of land and bu11d1ngs and other rentals not class1f1able

under object 442 or 443.

490

OTHER PURCHASED PROPERTY SERVICES (FUNCTIONS 1000, 2100, 2210,

2220, 2300, 2400, 2500, 2600, 2700, 2800, 2900, 3100, 3900,

4000). Expend1tures for other property serv1ces wh1ch are not

class1f1able to one of the objects descr1bed here1n.

JULY 2, 1986

3A-21

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART 1

STATE CHART OF ACCOUNTS CLASSIFICATIONS AND DESCRIPTIONS "EFFECTIVE 7/1/86" (CONTINUED)

OBJECT CODES (CONTINUED)

Object Codes

OTHER PURCHASED SERVICES (500)

530

COMMUNICATION (FUNCTIONS 1000, 2100, 2210, 2220, 2300, 2400,

2500, 2600, 2700, 2800, 2900, 3100, 3900, 4000). Serv1ces

prov1ded by persons or bus1nesses to ass1st 1n transm1tt1ng and

rece1v1ng messages or 1nformat1on. Th1s category 1ncludes

telephone and telegraph serv1ces, postage mach1ne rental, and

postage.

561

TUITION TO OTHER GEORGIA LEAs (FUNCTION 1000). Expend1tures for

tu1t1on charged to the LEA by another Georg1a LEA for educat1ng

all of 1ts students 1n one or more grade levels under a contract

between the two local boards of educat10n as spec1f1ed 1n QBE

sect10n 20-2-163. The LEA prov1d1ng the educat10n w1ll record

1ts revenue 1n account 1310.

569

OTHER TUITION (FUNCTION 1000). Expend1tures by the LEA for

tu1t1on to other LEAs outs1de the state, governmental

organ1zat1ons, and pr1vate organ1zat1ons for the educat10n of

1ts students.

580

TRAVEL (FUNCTIONS 1000, 2100, 2210, 2220, 2300, 2400, 2500,

2600, 2700, 2800, 2900, 3100, 3900, 4000). Expend1tures for

transportat1on, meals, hotel, and other expenses assoc1ated w1th

staff travel for the LEA.

585

COMMODITY HAULING (OUTSIDE CONTRACTS) (FUNCTION 3100).

Expend1tures to haul USDA commod1t1es for use 1n the School Food

Serv1ces Program or other feed1ng programs sponsored by the LEA

such as the Ch1ld Care Food Program.

586

SERVICES PURCHASED FROM LEAs OR RESAs (FUNCTION 2800).

Expend1tures to another LEA w1th1n or w1thout the State and to a

RESA for serv1ces, other than tu1t1on or transportat1on, should

be recorded here.

590

OTHER PURCHASED SERVICES (FUNCTIONS 1000, 2100, 2210, 2220,

2300, 2400, 2500, 2600, 2700, 2800, 2900, 3100, 3900, 4000).

Expend1tures for all other purchased serv1ces wh1ch are not

class1f1able under other codes. Th1s 1ncludes serv1ces

purchased from another LEA w1th1n or outs1de Georg1a, and pup11

transportat1on 1nsurance.

JULY 2, 1986

3A-22

GEORGIA FINANCIAL
ACCOUNTING HANDBOOK PART I

STATE CHART OF ACCOUNTS CLASSIFICATIONS AND DESCRIPTIONS "EFFECTIVE 7/1/86" (CONTINUED)

OBJECT CODES (CONTINUED)

Object Codes

SUPPLIES (600)

610

BOOKS, PERIODICALS, AND SUPPLIES (FUNCTIONS 1000, 2100, 2210,

2220, 2300, 2400, 2500, 2600, 2700, 2800, 2900, 3100, 3900,

4000). Expend1tures for 1tems of an expendable nature that are

consumed, worn out, or deter10rated 1n use (such as cop1er

parts), and expend1tures for books and per1od1cals 1nclud1ng

11brary books. Th1s object also 1ncludes the cost of b1nd1ng

and repa1r1ng 11brary books, but not textbooks.

620

ENERGY (FUNCTION 2600, 2700). Expend1tures for energy,

1nclud1ng gas, 011, coal, gaso11ne, and serv1ces from pub11c or

pr1vate ut111t1es should be charged to funct10n 2600

(Ma1ntenance And Operat1on Of Plant). Expend1tures for gaso11ne

and d1esel fuel to operate buses should be charged to funct10n

2700 (Student Transportat1on).

641

TEXTBOOKS (FUNCTION 1000). Expend1tures for the purchase of

textbooks used 1n the classroom 1nclud1ng reference books and

workbooks. The cost of b1nd1ng and repa1r1ng textbooks 1s

reported here. The compensat1on LEA rece1ves for lost and

damaged textbooks should be reported as a cred1t to th1s object

code.

JULY 2, 1986

3A-23

GEORGIA FINANCIAL
ACCOUNTING HANDBOOK PART I

STATE CHART OF ACCOUNTS CLASSIFICATIONS AND DESCRIPTIONS "EFFECTIVE 1/1/86" (CONTINUED)

OBJECT CODES (CONTINUED)

Object Codes

PROPERTY (100)

110

lAND ACQUISITION AND DEVELOPMENT (FUNCTION 4000). Expenditures

for the purchase of land and the improvements thereon.

Purchases of air rights, mineral rights and the like are

included here. Also included are special assessments against

the LEA for capital improvements such as streets, curbs, and

drains. This object does not include expenditures for the

improvement of sites and adjacent ways after acquisition by the

LEA, such as grading, landscaping, seeding, constructing new

sidewalks, roadways, retaining walls, sewers and storm drains.

Other examples of expenditures not included under this code are

the installation of hydrants, initial surfacing and soil

treatment of athletic fields and tennis courts, the furnishing

and installation of first time fixed playground equipment,

flagpoles, gateways, fences, and underground storage tanks (not

part of building service systems) and demolition work. These

expenditures are generally charged to objects 430 and 120 as

appropriate.

120

BUILDING ACQUISITION, CONSTRUCTION, AND IMPROVEMENTS (FUNCTION

4000). Expenditures for acquiring eXisting buildings. Included

are expenditures for installment of lease payments (except

interest) which have a terminal date and result in the

acquisition of buildings, except payments to public school

building authorities or similar agencies. Expenditures for the

contracted construction of buildings, for major permanent

structural alterations, and for the initial or additional

installation of heating and ventilating systems, fire protection

systems, and other service systems in existing buildings are

recorded here. Buildings built and alterations performed by the

LEA's own staff are charged to objects 100, 200, 610, and 130,

as appropriate.

JULY 2, 1986

3A-24

GEORGIA FINANCIAL
ACCOUNTING HANDBOOK PART I

STATE CHART OF ACCOUNTS CLASSIFICATIONS AND DESCRIPTIONS "EFFECTIVE 7/1/86" (CONTINUED)

OBJECT CODES (CONTINUED)

Object Codes

PROPERY (700) (CONTINUED)

730

PURCHASE OF EQUIPMENT (FUNCTIONS 1000, 2100, 2210, 2220, 2300,

2400, 2500, 2600, 2700, 2800, 2900, 3100, 3900, 4000).

Expend1tures for 1n1t1al, add1t10nal, and replacement 1tems of

equ1pment such as mach1nery, furn1ture and f1xtures, and

veh1cles.

732

BUSES PURCHASED OR LEASE-PURCHASED (FUNCTION 2700).

Expend1tures for purchase or lease-purchase of buses to

transport students are recorded under th1s code.

734

PURCHASE OF COMPUTERS &SOFTWARE (FUNCTIONS 1000, 2100, 2210,

2220, 2300, 2400, 2500, 2600, 2700, 2800, 2900, 3100, 3900,

4000). Expend1tures for the purchase or lease-purchase of

computers 1nclud1ng CPUs, storage dev1ces, pr1nters, 1nput

dev1ces, word process1ng, or other equ1pment needed for

electron1c comput1ng. Expend1tures for the use of computer

software are recorded under th1s code.

OTHER OBJECTS (800)

810

DUES AND FEES (FUNCTION 2500, 5100). Expend1tures or

assessments for membersh1p 1n profess10nal or other

organ1zat10ns or assoc1at10ns should be charged to funct10n 2500

(Bus1ness Support Serv1ces). Payments of fees to a pay1ng agent

for bonds for serv1ces rendered should be charged to funct10n

5100 (Debt Serv1ces).

830

INTEREST (FUNCTION 2500, 5100). Expend1tures for 1nterest on

notes payable should be charged to funct10n 2500 (Bus1ness

Support Serv1ces). Expend1tures for Interest On Bonds should be

charged to funct10n 5100 (Debt Serv1ces).

840

CHILO NUTRITION PROGRAM CLAIMS (FUNCTION 3100). State and

Federal Funds transferred to Ch11d Nutr1t10n Program account1ng

at the school level.

JULY 2, 1986

3A-25

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART I

STATE CHART OF ACCOUNTS CLASSIFICATIONS AND DESCRIPTIONS "EFFECTIVE 1/1/86 11 (CONTINUED)

OBJECT CODES (CONTINUED)

Object Codes

OTHER OBJECTS (800) (CONTINUED)

810

REDEMPTION OF BOND PRINCIPAL (FUNCTION 5100). Outlays from

current funds to ret1re ser1al bonds.

880

FEDERAL INDIRECT COST CHARGES (FUNCTION 2300). Charges made to

other programs to record the 1nd1rect costs perm1tted under

Federal grant adm1n1strat10n rules and approved by the Georg1a

Department of Educat1on.

890

OTHER EXPENDITURES. (FUNCTIONS 1000, 2100, 2210, 2220, 2300,

2400, 2500, 2600, 2100, 2800, 2900, 3100, 3900, 4000):

Expend1tures for goods and serv1ces not properly class1f1ed 1n

one of the objects descr1bed here1n. If the LEA's expend1tures

on the DE 0046 for th1s object exceed 10% of the total

expend1tures for the funct1on. a schedule by object must be

subm1tted w1th the DE 0046.

OTHER USES (900)

930

TRANSFERS TO OTHER FUNDS (FUNCTION 5000). Includes all

transact10ns convey1ng money from one fund to another w1th1n the

same LEA w1thout recourse. Generally, th1s takes the form of a

requ1red transfer from the General Fund to another fund.

990

OTHER USES (FUNCTION 5000). Other uses of funds wh1ch are not

properly class1f1able as expend1tures but requ1re budgetary or

account1ng control.

JULY 2, 1986

3A-26

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART I

I I BUDGET FOR YEAR ENDING JUNE 30, 1988 _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ BOARD OF EDUCATION

I I FINANCIAL REPORT FOR YEAR ENDING JUNE 30, 1988

STATEMENT OF CHANGES IN FUND EQUITIES - ALL FUNDS

6/30/81 FUND I

I

FY 88

I

FY 88

EQUITY BALANCES I ADJUSTMENTS I REVENUES AND I EXPENDITURES I

6/30/88

FUND

I FROM FY 86

I

TO 6/30/81 I OTHER SOURCES I AND OTHER USES I

FUND

CODES

FUND NAMES I FINANCIAL REPORT I FUND EQUITY I (A/C 6000) I (A/c 6000-000) I EQUITY BALANCES

Ll.L_u__

I

(2)

I

(3)

I

(4)

1

(5)

I

(6)

480 E.C.I.A.

I

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CHAPTER 2

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L_n

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EDUCATION FOR I

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490 THE HANDICAPPED I

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TITLE VI-B

L_

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EDUCATION

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520 PSYCHO-

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EDUCATION

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530 G.L.R.S.

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540 ALL OTHER

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SPECIAL REVENUE I

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600 ENTERPRISE

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650 INTERNAL

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SERVICE

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100 FIDUCIARY

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XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

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TOTAL (ALL FUNDS)

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xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

DE FORM 0046 (A) MAY, 1981 ISSUE

BUDGETIFINANCIAL REPORT

PAGE 2.2

CHAPTER 4
IMPLEMENTING THE ACCOUNT CLASSIFICATION SYSTEM
As part of the planning process for LEA implementation, certain activities which must be considered include:
Management techniques Orientation of personnel Reporting requirements Chart of accounts development Adaptation of Recordkeeping systems Training
MANAGEMENT TECHINIQUES
As part of the process of implementing this manual, the LEA should review its management style to determine whether any changes are necessary. Since this manual provides a vehicle to gather and report detailed financial information, the LEA may wish to centralize or decentralize the management process or develop a results-oriented management style. A change in the LEA's administrative structure or management technique may result in a change in cost centers, which in turn will affect the chart of accounts design.
Conversion to this manual does not require a change in management style, rather it affords the LEA an opportunity to review its management style in light of the change in accounting classifications.
Many LEA's use this conversion as an opportunity to make other changes which have been needed; such as improving the bookkeeping system, automating certain operations, decentralizing budget authority, and the like.
ORIENTATION OF PERSONNEL
After the management style is determined, an orientation for LEA personnel should be conducted. The orientation should begin with a justification for change. the rationale for change might include:
A need for better financial information for management
A desire for improvement of financial controls
Pressures from the local community
A mandate by the State

JULY 1, 1983

PAGE 4-1

GEORGIA FINANCIAL ACCOUNTING HANDBOOK
PART I

IMPLEMENTING THE ACCOUNT CLASSIFICATION SYSTEM (CONTINUED)
The extent of change must illustrated. The extent of change relates directly to the management style utilized. some activities to be illustrated would include:
Budget preparation and reporting
Accounting records
Business office procedures
Organization realignments
The extent of change will vary substantially from LEA to LEA, based upon the project objectives.
Assignment of specific conversion responsibilities should occur at this session. These responsibilities might include budgeting, expenditure coding, file and records conversion and procedural developments.
The final subject of the orientation session might be implemenation monitoring. Someone from the LEA must assume the overall responsibility for implementation. This responsibility is normally assumed by an LEA administrator such as the superintendent or business administrator. A project schedule should be developed which would include the tasks, estimated mandays and the person responsible.
REPORTING REQUIREMENTS
One of the first activities in converting to a new system is to determine any local reporting requirements beyond those established by the State. This process may be as simple as conducting a review of the existing budget report, or it may involve a consolidation of various separate accounting activities (e.g., Federal programs, food service, special education) or it may entail changes in managerial style.
All proposed reporting formats should be reviewed by LEA administrators and budget managers to insure that the chart of accounts will provide the financial information needed to make management decisions.

JULY 1, 1983

PAGE 4-2

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART I

IMPLEMENTING THE ACCOUNT CLASSIfICATION SYSTEM (CONTINUED)
CHART OF ACCOUNTS DEVELOPMENT
After the reporting requirements are determined, the next step in conversion is to develop a local chart of accounts. In this manual, the account classifications presented do not constitute a chart of accounts. Rather, it is necessary to combine the various dimensions and categories into number groups to create a specific chart of accounts for an LEA.
The process of constructing a chart of accounts at the LEA consists of a number of steps:
1. Determination of needed accounts and dimensions
2. Decisions on the expenditure coding structure for local use
3. Assignment of codes
4. Adaptation of recordkeeping systems
5. Preparation of the budget
The amount of effort involved at each of these stages will vary a great deal in different LEA's dependent upon such factors as the current condition of accounting in the LEA, whether or not the system is automated, and whether the LEA chooses to use the conversion as an opportunity to effect other changes (e.g. - decentralization of budget responsibility, improvement of accounting, recordkeeping, consolidation of records).
Determination of Needed accounts and Dimensions. An LEA must determine the accounts and dimensions needed for the balance sheet, revenues and expenditures. In Chapter 3 of this manual, the balance sheet accounts and revenue accounts are listed in their entirety. The LEA should choose only those accounts that are applicable locally.

JULY 1, 1983

PAGE 4-3

GEORGIA FINANCIAL ACCOUNTING HAND800K PART I

IMPLEMENTING THE ACCOUNT CLASSIFICATION SYSTEM (CONTINUED)
Choosing which expenditure dimensions to use is the most difficult decision. This manual provides the LEA with the dimensions required to be used for State reporting and also lists optional dimensions to be used for management purposes.

Development of Expenditure Coding Structure. Once the needed dimensions have been determined, the expenditure coding structure can be established. Several of the dimensions fit neatly together to reduce code size and make its organization more efficient. Here are some suggestions:

1. Depending on the amount of detail required, a subject matter breakdown can easily be established within the program dimensions. Operational unit, course and/or instructional organization also could be included within the program code, perhaps requiring more digits.

2. The highest order digit of job classification fits neatly
into the third position of the 100 and 200 series of the object code. This would facilitate a tabulation of salaries and benefits by barginning units.

3. The projects/reporting classification can be incorporated into a fund code, or can be consolidated with the program
dimension.

4. Instructional organization and operational unit can be combined into a single cost center code.

Often, combinations of dimensions will provide the proper classification of expenditures without adding categories within a given dimension. For example, teaching supplies are identified by the use of the function Instruction (1000) and the object code for General Supplies (610).

A specific order of the dimensions in the manual is not required.
Obviously, the dimension structure relates directly to the dimensions utilized. Some of the more common structures used in LEA's are:

Fund

Program

xx

xxx

Function
xxxx

Object
xxx

~roject/Reporting
XXX

Operational

Fund

Unit

XX

XXX

Program Function

xxx

xxxx

Object XXX

Fund Project/Reporting

XX

XX

Function
xxxx

Object
xxx

Program XXX

JUL Y 1, 1983

PAGE 4-4

GEORGIA FINANCIAL ACCOUNTING HANDBOOK
PART I

IMPLEMENTING THE ACCOUNT. CLASSIFICATION SYSTEM (CONTINUED)
Assigning Codes. Once the structure is established, individual codes are assigned. Probably the easiest way to start this process is to crosswalk (recode) the existing budget. As this is being done, decisions are needed on how much detail is required for:
the public
the Board of Education
the superintendent
cost center management
the auditor
the business office
In general, the amount of detail shown should decrease as one progresses up this list, so that the business office has the most detail available while the public and the Board of Education have carefully summarized figures to work with.
ADAPTATION OF RECORDKEEPING SYSTEMS
During the process of converting account codes, it is likely that some changes will be necessary in the recordkeeping system. These changes must be considered when establishing the new codes. Some of the conditions commonly encountered which are subject to change are:
1. The LEA maintains funds in a variety of different bank accounts. This condition generally arose from Federal and State guidelines stipulating that LEA's not commingle funds. Although these requirements still exist, most Federal offices have held that the requirement is met through proper application of the project/reporting dimension and does not require separate bank accounts.
There are several advantages to consolidating bank accounts. The practice of writing checks between accounts can be eliminated. Cash management by the LEA can be improved. The need to reconcile multiple accounts periodically is eliminated.

JULY 1, 1983

PAGE 4-5

GEORGIA FINANCIAL ACCOUNTING HANDBOOK
PART I

IMPLEMENTING THE ACCOUNT CLASSIFICATION SYSTEM (CONTINUED)
2. Separate accounting systems exist in a variety of offices within the LEA. The breadth and flexibility of the account codes permit consolidation of the various accounts of the LEA into a consolidated set of books for the LEA.
3. Automated districts will have to consider certain adaptations. The most significant change entailed is likely to be the modification of the payroll for the distribution of salaries and benefits by program and function code.
Other changes mayor may not be significant depending upon the design of the existing system.
Preparation of the Budget
As conversion generally takes place at the beginning of a new fiscal year, a decision must be made whether to construct the new budget on the old codes, the new codes or both. Generally speaking, it will be desirable to prepare the first budget on the old codes, then crosswalk it to the new budget, splitting or combining the budget line items as necessary. This will help ensure that nothing is left out of the budget during conversion, and will enable administrators to present either or both formats to the school boards and other interested parties.
Forms, Procedures and Record Systems
In some LEA's, it may be necessary to redesign forms and records to:
accommodate a larger account number
provide the necessary support to changes in management style or accounting procedures
For example, forms such as purchase requisitions, purchase orders, checks, receipts, timesheets and warehouse requisitions which currently include the account code structure must be changed. In a manual recordkeeping system, the format of the general ledger accounts, subsidiary ledger accounts and journal sheets may require changes. In a system whose records are automated or partly automated, this step may include appropriate modifications to imput document layouts, printed forms and reports, imput edit routines, and to the computer programs themselves.

JULY 1, 1983

PAGE 4-6

GEORGIA FINANCIAL ACCOUNTING HANDBOOK
PART I

IMPLEMENTING THE ACCOUNT CLASSIFICATION SYSTEM (CONTINUED)
If this step must be taken, adequate time should be allowed for forms to be redesigned and a sufficient supply printed, and for the necessary reprogramming to be accomplished.
Master Files and Records Conversion
Certain of the LEA's accounting master files and records may be carried over from one fiscal year to the next. It will be necessary to recode these files and records with the new account codes. Specifically, these include:
Outstanding purchase orders
Accounting ledger records
Payroll accounting distribution records
Automation
The most common technical problems in converting the automated system included:
distribution of salaries to multiple accounts
distribution of district-paid fringe benefits
size of the account code field

JULY 1, 1983

PAGE 4-7

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART I

IMPLEMENTING THE ACCOUNT CLASSIFICATION SYSTEM (CONTINUED)
TRAINING
Training can be provided for two groups of personnel: Employees of the LEA and personnel directly associated with the LEA.
LEA Employees. The first group of LEA employees to be trained should be the administrators. In order to provide the proper leadership, administrators must have knowledge of the new system and the effort required for conversion.
If the budget development and management is decentralized, the budget managers must also be trained. This training would include:
Why the change was made
The accounts and dimensions used
The definitions of the accounts and dimensions
The fonmat of the budget documents
The format of new financial reports and how to use them
Another group of LEA employees to be trained would be the personnel who would actually code the transactions and keep the records. This group must have a good working knowledge of the chart of accounts and how it works.
Personnel Directly Assoicated With The LEA. The second group of people to be trained would be such people as CPAs, outside accountants, the media, etc.
The training would follow about the same procedures as those followed for LEA employees.

.1ULY 1, 1983

PAGE 4-8

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART I

CHAPTER 5 COST ACCOUNTING FOR EDUCATIONAL PROGRAMS

As the costs of government in general and education specifically have increased, there has been an increasing demand for accountability for the resources utilized. More and more, legislators and the general public wish to examine the expenditures made for education in light of the results produced. Hence, there has developed among administrators an interest in ascertaining with considerable accuracy the costs of particular programs.

Few will argue that on the average it costs more to provide a categorical program such as vocational education and/or special education than it does to provide a general curriculum offering. Additionally, it costs more to provide others. However, few agree on the reasons for the cost differences or the actual amount involved. With increased emphasis on accountability and methods of funding it is important to have an accurate picture of the actual costs of operating a specific program including that program's fair share of support service costs compared to a base-level program. Knowing just the cost of one program is often of little value unless it can be compared to the average cost of educating a pupil in some base level program.

COST ACCOUNTING SYSTEM DESIGN

A program cost accounting system can best be described in terms of six basic elements:

1.

final cost objectives

2.

indirect cost pools (intermediate cost objectives)

3.

costing standards employed

4.

the crosswalk between the financial accounting system and the

cost accounting system

5.

the allocation bases

6.

the indirect cost allocation formula employed

To meet this requirement, there is a need for a State-level financial accounting system capable of providing cost information about educational programs. In addition to-meeting the need stated above, the system should:

1.

produce program costs that have reasonable accuracy and precision;

2.

be reasonably simple to implement and operate;

3.

be operated at the State-level using data extracted from annual

financial and statistical reports; and

4.

be computerized.

This chapter provides a description of the State-level syste~ and presents an example of how the indirect cost allocation formula will work.

JULY 1, 1983

PAGE 5-1

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART I

COST ACCOUNTING FOR EDUCATIONAL PROGRAMS (CONTINUED)

Cost Objectives

The purpose of the program costing system is to determine the cost of the programs operated in each LEA and for the State as a whole. The categories included in the program dimension and presented in Chapter 3. pages 3-16 through 3-18. become the final cost objectives in the system.

Costing Standards

Proper costing standards promote data that is internally consistent and highly comparable. Data developed under widely varying standards may provide misleading comparisons and may contain hidden inaccuracies. Many costing standards are currently included as a part of the financial accounting system. Others are presented below.

Cost information will be based on the modified accrual method of accounting.

Cost data will be reconcilable to official financial accounting data.

Non-financial data will be reconcilable to official records.

Cost information and related cost units will cover the same time period.

Cost information will be consistently determined from period to period.

Cost information will be accompanied by a disclosure statement.

Indirect Cost Pools

The indirect cost pools for the cost accounting system have been taken directly from the support services in the function dimension as follows:

2100 Student Support

2200 Instructional Staff Support

2300 General Administration

2400 School Administration

2500 Business

2600 Operations and Maintenance

2700 Student Transportation

JULY 1. 1983

PAGE 5-2

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART I

COST ACCOUNTING FOR EDUCATIONAL PROGRAMS (CONTINUED)

2800 Central Services

2900 Other Support Services

Crosswalk from Financial Accounting

All financial information will crosswalk from the financial accounting system without analysis.

Indirect costs in this system will be only those costs charged to one of the nine pools and to program 000 Undistributed Expenditures. Some costs will be assigned to the support services functions but will be direct-charged to programs at the time of recording the transaction. For example, the guidance counselor at the high school spends half-time working with special education students and half in regular education. This salary is charged directly to these two programs even though it is also charged to function 2130 - Guidance. As another example, an LEA might determine that all costs of preparing and serving food in the lunchroom can be direct-charged to the food service program. Only custodial and some administrative costs remain to be allocated in this example.

The Allocation Basis

Each indirect cost pool accumulates the costs of a certain type of support service. For each support service, a unit of measure has been selected which directly relates the costs of that service to the amount of benefit received by each program. For example, the amount of student personnel services associated with the instructional programs may be considered to vary with the number of students in each program. These units of measure are used to allocate support costs to each program and are called allocation bases.

The principle considerations in selecting allocation bases are accuracy and cost of collection. These often tend to conflict with each other. Proper choice of the allocation bases used can greatly affect the resulting accuracy of the indirect cost allocation formula. The more direct the relationship between an allocation basis and the cost of support services received by the benefiting program, the more closedly the resulting calculated program costs \o.Till approximate the "real" program costs.

The allocation bases selected for the indirect cost pools are as follows:

Function

Indirect Cost Pool

Codes

Allocation Basis

Student Support

2100

FTE - Average daily attendance (ADA) students by program

JULY 1, 1983

PAGE 5-3

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART I

COST ACCOUNTING FOR EDUCATIONAL PROGRAMS (CONTINUED)

Indirect Cost Pool

Function Codes

Allocation Basis

Instructional Staff Support

2200

Full-time equivalent (PTE) teaching staff assigned each program

General Administration

2300

Total program direct expenditures

School Administration

2400

Full-time equivalent (FTE) teaching staff assigned each program

Business

2500

Total program direct expenditures

Operation and Maintenance of Plant

2600

Total program direct expenditures

Central Support Services

2800

Total program direct expenditures

Other Support Services

2900

Total program direct expenditures

Indirect Cost Allocation Formula

The system utilizes a one-step cost allocation formula which is designed so that all indirect costs are distributed only to the final cost objectives and not to other indirect cost pools. Each indirect cost pool is fully allocated the first time and there are no additional allocations.

The assumption underlying this approach is that the services whose costs are contained in each indirect cost pool are rendered only to the final cost objectives (such as, instructional programs) and not to any of the support functions or activities in the other indirect cost pools. This assumption is not always true--support services can often serve other support activities. Such interrelationships are not reflected in the one-step process.

The following example is presented to illustrate how the indirect cost allocation formula will work. Figure 1 shows the statistical data required to calculate the allocation basis for each program. Figure 2 illustrates how to summarize the support service costs to be allocated by allocation basis. Direct, indirect and total programs costs are shown by Figure 3.

JULY 1, 1983

PAGE 5-4

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART I

COST ACCOUNTING FOR EDUCATIONAL PROGRAMS (CONTINUED)

110 120 140
213 214 215 221 222 223 224 225
310 320 330
341 342 343 350 360 370 380 391 392 399

XYZ SCHOOL SYSTEM STATISTICAL DATA FOR FISCAL YEAR
Ended June 30, 19XX

Program

Student

FTE ADA

II

%

FTE

Staff

II

%

Regular Education
Kindergarten Elementary High School
Total Regular

520 4,100 ~
6,360

6.90 54.38 23.07
84.35

26 5.5 186 39.6 104 22.1
316 67.2

Special
EMR TMR
SMR Hard of Hearing Deaf Deaf-Blind Visuallv Handicapped Speech Impaired
Total Spec ia 1

110 1.46 95 1. 36 80 1.06 70 .93 65 .86 60 .80 50 .66 30 .40

18 3.7 16 3.4 15 3.2 15 3.2 14 3.0 13 2.8
6 1.3 4 .9

560 7.43 101 21.5

Voca t iL~nal Education
Agriculture Distributive Education Health Occupations
Related Occupations Consumer & Homemaking Displaced Homemakers Office Occupations Technical Trades and Industrial Cooperative Education Work Study Energy Other

80 1.06 20 .27 30 .40
20 .27 30 .40 10 .13 60 .80 80 1.06 110 1. 46
20 .27 40 .51

8 1.7 2 .4 2 .4
2 .4 3 .6 1 .2 4 1.0 6 1.3. 8 1.7
2 .4 2 .4

Total Vocational Education

500 6.63 40 8.5

Direct

Program Cost

$

%

485,680 3,553,680 1,880,000
5,919,360

4.45 32.58 17.23
54.26

553,460 209,580 914,185
27,700 155,740 141,960 155,900 376,710
2,535,235

5.08 1. 92 8.38
.25 1. 43 1. 30 1. 43 3.45
23.2~

109,520 28,380 45.420
28,220 42,330 14,110 96,660 126,720 174,240
32,220 63,360

1.00 .26 .42
.26 .39 .13 .89 1.16 1.60
.30 .57

$ 761,180 6.98

JULY 1, 1983

PAGE 5-5

Figure 1, Page 1
GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART I

COST ACCOUNTING FOR EDUCATIONAL PROGRAMS (CONTINUED)
(C

XYZ School System Statistical Data for Fiscal Year 19XX

Program

Student

FTE

ADA

Ii

%

FTE Teaching

Staff

II

%

Vocational Support

410

Local Administration

420

Research

430

Exemplary

440

Curriculum

450

Guidance and Counseling

460

Professional Development

470

Sex Bias

490

Other Support

Total Vocational Support

Other Instructional Programs

510

Cocurricular

520

School Sponsored Activities

590

Other

600

Non-Public Schools

700

Adult/Continuing Ed.

120

1. 59

ill

1. 59

13

2.8

13 2.8

Community Services

810

Recreation

820

Civic Services

830

Library

840

Custody and Childcare

850

Welfare

890

Other

Total Community Services

Direct

Program Cost

$

0,
Ie

60,000

.55

10,000

.09

24,000

.2~

8,000

.07

102,000

.93

120,00CJ 120,000
70,000 24,000 32,000 126,000

1.10 1.10
.6~
.22 .29 1.15

Enterprise

910

Food Services

990

Other

Total Distributed

7540

100

1,344,900

12.34

470

100 $10~675

100

JULY 1, 1983

PAGE 5-6

Figure 1, Page 2
GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART I

COST ACCOUNTING FOR EDUCATIONAL PROGRAMS (CONTINUED)

2100 2200
2300 2400 2500 2600 2700 2800 2900 3000
4000 5000

XYZ School System Statistical Data for Fiscal Year 19:0::

Program Student Support

Student

FTE

AJJA

II

%

FTE Teaching

Staff

II

%

Instructional Staff Support

General Administration

School Administration

Business

Operations & Maintenance

Student Transportation

Central Services

Other Support Services

Non-Instructional Operations

Facilities Acquisition

Other Outlays

Direct

Program Cost

$

i:

218,000

130,000 170,600 176,700 67,000 774,120

Total Support Services Total Costs of Programs

..12!:2.

100 470

$1,536,420

100 $12,445,095

100

JULY 1, 1983

PAGE 5-7

Figure 1, Page 3
GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART I

COST ACCOUNTING FOR EDUCATIONAL PROGRAMS (CONTINUED)

2100 2200
2300 2400 2500 2600 2700 2800 2900 3000
4000 5000

XYZ School System Summary of Financial Data by Allocation Bases
For Fiscal Year 19XX

Allocation Bases

Students
FIE - ADA

FTE Teaching Staff

Direct Program
Cost

Student Support

218,000

Instructional Staff Support

130,000

General Administration

170,600

School Administration

176,700

Business

67,000

Operations and Maintenance

774,120

Student Transportation

Central Services

Other

Non-Instructional Operations

Facilities Acquisition

Other Outlays

$ 218,000

$ 306,700 $1,011,720

Unallocated
540,720
420,000 73,000
----
$1,033,720

JULY I, 1983

PAGE 5-8

Figure 2 GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART I

Lc:.:t
r-'
~
I-'
I-' \D 00 W

'"t1
~
t:rl
Ln I \D

:'x":-t1(:'X) :-t:0rl1-1r-"j

::0 (') 0 OQ

I-:lO::OC::

H ~0H'riD

1-:l:X:H

w

Z I-rj ~

0H

Z'"t1

~ (~')r~D

gt;;1-'

Or-' 0 7::

Program

Direct Program
Co~t

Regular

110 Kindergarten 120 Grades 1-8 130 Grades 9-12
Total Regular

485,680 3,553,680 i,880,OOO
5,919,360

Special

2ll E}lR 212 TMR 213 SMR 221 Hard of Hearing 222 Deaf 223 Deaf -Blind 224 Visually Handicapped 225 Speech Impa ired

553,460 209,580 914,185
27,700 155,740 141,960 155,900 376,710

Total Spedal

2,535,235

Vo.ca t lanaI _~~_lI~_t~

310 Agriculture

109,520

320 Distributive F.ducation 28,380

330 Health Occupations

1.5,420

)4J Home Ec-Rp 1;1 t Nj Occur. 2R,220

(')

0

Ul

XYZ Sf:HOOL SYSTr:M

I-:l

SUMMARY OF DIRFf:T AND INDIRECT PROGRAM COSTS

:x:-

FOR FISCAL HAR 19XX

(')

(')

Student %
100

FTE-ADA $
218,000

FTE Teachin!\
"(
_100

Staff Direct Progr-lm

Cost

$

%

$

306,700

10_0_ _ _ _ _ _1L91J , 720

Total Program
Cost

c0::
Z I-:l

H

Z

0

6.90 54.38 23.07
84.35
1.46 1. 26 1.06
.93 .86 .80 .66 .40
7.43

15,042 118,548 ___';O~29)
183,882
3,182 2,746 2,310 2,027 1,874 1,744 1,438 _ _8_78
16,199

5.5 39.6 22.1
67.2
3.7 3 ./~ 3.2 3.2 3.0 2.8 1.3
.9
21.')

16,868 121,453
~6~1
206,102

4.45 32.')8
1~23
54.26

11,347 10,427
9,814 9,814 9,201 8,587 3,987 ~}-
65,940

5.08 I.n 8.38
.2') I. 4 3 I. 30 1.4) ~
23.24

45,021

562,611

j

329,618

4,123,299

0

_174,32_~

2,172,393

::0

t:rl

548,959

6,8')8,303

ct:::1:

:(x':)-

I-:l

51,395 19,425 84,782
2,529

619,384 242,178 I,Oll,091
42,070

H 0
~

14,1.68 13 ,152

181,283 16'),443

'"t1 ::0

14, 4~R

17'),793

0

~,_~O/._
23'),123

__~..l~ 2,852,497

0
~

Ul

1.06 .27 .40 .27

2,310

1.7

588

.I,

872

.4

')8R

.I.

5,213 1,226
l,22~
I, 22~

1.00
.2~
.1.2
.2~

10, II 7 2,~ 30 4.249 2. ~'\O

r-.

(')

127,160
12,R24
51, 7~ 7 32,fi114

II

t:rl t::1
'-"

cc.:..:.,
r-' 0-< I-'

I-'

\0

OJ

Di Teet

W

Program

__ -.f!_o~m

~

~

_

......... ~L

J-i2

Hume El'-Consuffit.>T

Hllffil'mak ing

343

Home l':C-Disp!<lCpd

.klml'make r

3'>0 Office Occupations

300

Tf'chnil'al

370

Trades & Indllstrial

3HO

C(Joperative I~ducation

391

Work Study

J92

Energy

J99

Other

~2,330
I~, 110 %,660 120,720 17:',241)
--
32,220 63,360
-

rOTAL VOCATIONAL

'l:l

EDI)CATION

761,180

C:>) t'1

Vocal 10nal Sl~~

1Il

410

Local Administration

60,000

I

:'t~t)

Rl'search

I-'
0

:. 30

Exemplary

440

Curriculum

10,000

450 Guidance and Counseling

24,000

4hO

Professional Developmellt

8,000

:'/0 Sex Bias

:'90

Other Support

fOTAL VOCATIONAL SUPPORT

102,000

-,II)

'l:l:>C)>-rj

:>
:;0

(1 (1

t'1 0

efr-oJ,

J.' () )90

>-30:;OC

C::C)'i

HZH(D

>-3:> H

w

600 100

Z >-rj ~

CJH

Z'l:l

~:>z\elrol

Z(1(D

dH

b;J:>N

Or-'

0

7:

~tJI~~~~-':1_~_~_~J.52!1~1}_~ugrarns

C()\llrricuL..ir
St h1lu1 Sponsored Activities Other Tutdl Other Inst ruct illn ..d
Programs Nun-Public Schoo) s AJlllt!Continuing
Education

12U.OUO

XI'/. SCII')('1. IllSTKllT SlIHHAKY OF iJI KilT ANI> INlllKECl COSTS
FOK FISCAl. YEAK ENDLIl 19XX

Student %
100
-'-~---

FTE-AIlA

FTF Ttaching

$

2~,.r)OO __ ~_~_~1.()0~~

.40
.I3 .80 1.06 ]. 46
.27 .51

l72
2H3 I.l-'f(f 2, J I() 3,IH2
~)HH
1,116 _.---

.6
.2 1.0 1.3 1.7
.4 .4
~-

6.63

l4, (f53

8.'>

I. ,>q

1, (f6h

?A

Staff $
306, 700 1,840 613 J, 06 7 3,993 5,2lJ
--
1, 226 1,226
-
26,069
R,'P~

Direct Program

Cost

Total

X

S PrLlgram

~~~100

._ _-,IJ.'cc.0u..!~Cost_ _

(")
o

CIl

H

.39
.lJ .8q 1. 16 1.60
-
.30 .57

3,946 48,988

(:>1

1,315
9,004
II ,736
16,188
--

16,32 '
110,:' 75
144,759
198,823
--

(1
co::
Z >-3
H

3,OJ'>

J 7,069

~

5,768

71,470

I-zj
o
:;0

6.98
.5'> .09 .22 .07
.93

70,618 $ 872,320

t'1

cd:::

(")

:>

5,564 65,564

H

oH

911 2,226

IO,91l 26,226

~

708

8,708

'l:l

:;0

o

C)

9,409 11I,:'09

~

en

1. If)

-(o--1-
Z >-3
H
~
t'1 d
"-" 11,17 0 I If 1,1 114

s;eL,
t-'

t-'

I.D

(Xl

W

oo

Ul
>-'3

\'l'Z sr-ItI,IIL UlSTk reT Sl!~L"'L\f{Y Ill"' IJlk! (T Njl) U;LiJ I,'!':(;T COSTS
r'OI{ FI SCAL YLAK PWUJ 19XX

>ooeo

Z

OJ ree t

St Ildt'l1t

FTL-AIJA

FiE Tl.:'d,-hing

Staff

Direct Program

(1st

Tota]

~

H

I'rcl gram

$

_ ._.

f'~:.:;...rarr, _,~_

___~

C_t~~

l~)_~I_ _~_{J.H._!lJQ(~ _

I O/j

$

%

3.Q.f>..J~, _ _~~ _Ii'fl..

S

Prulo',rLlm

~ __l,,!~

~s_t_ _

oZ

~_~.u-.!.,--i.-S.-~::'Vn' l, ,.~

Hill

R.>,'r, ,t in

70,000

t>o-d

Hill

Civi. )er-.. 1Ct":j

H JO

Librar',

H40

Custody "nJ Childcdre

24,000 --

t"Ij

B,O II,-]farc

32,000

B90

Other

U1

I t-'

TOTAL

126,000

t-'

Enteq,ri St:S

'l10

Ft(,d ')t:rvit',-

990

Other

1,344,900

TOTAL

JO,90~~

t-d>0'"rJ > 0 t"IjI-" ?=' 0 0 en >-'30?='C
e0'i HZHro
>-'3> HW Z '"rJ ~ 0H
Zt-d
~ z>ooOJ
oro t:lH b:I>w Or-< 0 7:

IIlIl

21,H_,_O!jf)

100

,306,700

,64 .22 .29 1. 15
12,34 100

o'"rJ
?='

6,475

76,475

2,226

26,226

gt"Ij

2,934

34,934

~
>-'3

Ho

11,635

137,635

~

r-<

t-d

124,847 1,469,747

?oo='

~1,720 12,445,095

~

Ul

,....,

oo

Z >-'3

H

2

t"Ij

t:I

'-'

COST ACCOUNTING FOR EDUCATIONAL PROGRAMS (CONTINUED)

UNITS OF MEASURE

A variety of measures have been developed for the operation of schools using financial data. Among them are current expenditures, per student cost, and excess costs.

Current Expenditures

"Current expenditures" is a term describing the expenditures of the current year for the education of elementary-secondary students who are resident in the reporting LEA. In general, current expenditures include all current outlays of the LEA for elementary/secondary education of its resident students except for (1) the acquisition of property and (2) outlays for enterprise-type operations of the LEA (whether or not included in the proprietary funds) which are recovered through offsetting revenues.

"Current expenditures per student" is a measure used for several different purposes by users of educational data. These include: comparison of program costs between States and LEA's, measurements of the quality of educational opportunity, and reimbursement of direct expenditures under various State and Federal aid programs. Generally, these costs will be most useful when compared on a program basis. ~_\!.r.!ent expend i tur~e.!-.:':.t~dent is a ratio composed ()f two measures, each of which is described separately below.

As of the time of publication of this manual, the term "current expenditures" is defined in Federal law to mean: "Expenditures of free public education, including expenditures for administration, instruction, attendance and health services, pupil transportation services, operation and maintenance of plant, fixed charges, and net expenditures to cover deficits for food services and student body activities, but not including expenditures for community services, capital outlay, and debt service, or any expenditures made from funds granted under Title II of this Act or Title II or III of the Elementary and Secondary Education Act of 1965".

Currently, this definition is used as the basis for calculating allowable reimbursement to States and LEA's under several Federal programs.

The categories defined in this paragraph appear to match the major classifications of expenditures described in the original (1957) version of Handbook II. Since these classifications are no longer used, it is necessary to redefine the term. Using the expenditure classification structure contained in this manual, "current expenditures" includes all expenditures charged to the elementary/secondary program (100-500 and 900) and to the instruction (1000), support services (2000) and operations of non-instructional services (3000) functions. From this total must be subtracted all revenues received as incoming transfers (1320, 1330, 1420, 1430, and 1950) and local revenues
earned through enterprise activities (1600, 1940, and any State and Federal support for the Food Service activity.)

JULY1,l983

PACE 5-12

GEORGIA FINANCIAL
ACCllll NT 1NC: HAN J) B()() K PART ]

COST ACCOUNTING FOR EDUCATIONAL PROGRAMS (CONTINUED)

For reimbursement purposes, this figure is often further modified to meet particular conditions of Federal law.

Current Expenditures Per Student

Current expenditures per student is a measure of long standing, indicating, to some extent, community effort. It was adopted when general or basic education comprised most of the educational curriculum. The extension of the school day and school year to include special education, vocational education, adult/continuing education, and community services in evening and summer sessions has tended to make less valuable the per-student cost measure. The reason is that the units being compared are less alike. On the other hand, this measure has become increasingly important as the emphasis on achieving equality of educational opportunities has increased.

The units to be compared in determining per-student expenditures are shown below.

1. The types of activities (programs) for which expenditures are made; (e.g. - regular, vocational, special education.)

2. Length of time students are in session; (e.g. - six hours per day for regular day session versus three hours in the summer session or three hours in the evening session.)

3. The student unit of measure; (e.g. - average daily membership, average daily attendance, enrollment, or other.)

The per-student expenditures for an elementary school have value when comparing them to another elementary school, but those of a secondary school in which there exists only a program for preparing students for postsecondary education are not comparable to those in a school which prepares students only for immediate employment. Similarly, the per-student expenditures of an LEA where the programs consist of elementary and secondary education are not comparable to those in an LEA which, in addition to the above programs, has adult/continuing education programs. Therefore, it becomes important to specify the program for which the per-student expenditures are made.

For purposes of comparability and to indicate LEA effort, it is recommended that average daily attendance be used in computing per-student expenditures. When using these data without reference to particular programs, they should be computed for elementary and secondary education only in regular day session. In most cases, it will be desirable to express the average daily attendance in terms of full time equivalent (FTE) students assigned to programs.

The procedure for computing the current expenditures per student for

an LEA, then, would be to sum all current expenditures, defined above, for

elementary and secondary education in the regular day session (subtracting

the expenditures for all other programs and their prorated share of the

support programs) and divide the sum by the average daily attendance FTE's

for the year.

GEORGIA FINANCIAL

ACCOUNTING HANDBOOK

JULY I, 1983

PAGE 5-13

PART I

COST ACCOUNTING FOR EDUCATIONAL PROGRAMS (CONTINUED)
When computing the per-student expenditures for a particular LEA program, such as vocational education, it is important to include all costs, prorated indirect costs and direct costs. In other words, those indirect costs of vocational education, such as operation and maintenance, student support services, staff support services, and others, must be included. This procedure was discussed above.
Current expenditures per student can be calculated for each program by dividing the current expenditures of that program by the average daily membership of the students in that program.
Excess Costs for Special Education
Laws governing the use of Federal funes for special programs for the education of the handicapped dictate that such funds may only be used to pay the excess costs of providing special education and related services for the handicapped children. "Excess costs" are defined as; "Those costs which are in excess of the average annual per student expenditure in an LEA during the preceding school year for an elementary or secondary school student, as may be appropriate."
Using the classifications in this handbook excess costs may be computed as follows:
1. The LEA determines current expenditures (calculated as above) for students in the regular, vocational and other instructional (PK-12) programs. This includes an allocation of indirect support services costs to these programs.
2. This total is then divided by the number of full time equivalent (FTE) students (including "main-streamed" handicapped students) giving "average annual per student expenditures".
3. Total current expenditures for special education programs are then calculated (including allocated indirect support services). Amounts expended for equipment (object 730) in the special programs should be added.
4. This total is divided by the FTE students in handicapped programs to arrive at average annual per student expenditures for special education programs.
5. The amount calculated in Step 4 is reduced by the average annual per student expenditure amount arrived at in step 2 to give
"excess costs".

JULY 1, 1983

PAGE 5-14

GEORGIA FINANCIAL ACCOUNTING HANDBOOK
PART 1

CHAPTER 6

ACCOUNT CLASSIFICATION DESCRIPTIONS

This chapter contains descriptions of the categories for the revenue, expenditure, and balance sheet accounts presented in Chapter 6. As the fund
codes are applicable to all three types of accounts, they are described separately at the outset.

FUND CLASSIFICATIONS

Fund

01

GENERAL FUND. Governmental Fund to account for all financial

resources of the LEA except those required to be accounted for

in another fund.

02

DEBT SERVICE FUND. Governmental Fund to account for the

accumulation of resources for, and the payment of, general

long-term debt principal and interest.

03

CAPITAL PROJECTS FUNDS. Governmental Funds to account for

financial resources to be used for the acquisition or

construction of major capital facilities (other than those of

proprietary funds and fiduciary funds). The most common

source of revenue in this fund would be the sale of bonds. A

separate fund may be used for each capital project or one fund

may be used supplemented by the dimension "Project/Reporting"

code.

20-59

SPECIAL REVENUE FUNDS. To account for the proceeds of specific revenue sources (other than expendable trust or major capital projects) that are legally restricted to expenditure
for specified purposes. Special revenue funds include:

Leave Fund Instructional Media Fund Instructional Equipment Fund Compensatory Education Fund Bus Replacement Fund Post Secondary Vocational Fund Psychoeducational Center (S.E.D.) Fund Georgia Learning Resources System
(G. L. R. S.) Fund E. C. I. A. Chapter 1 Fund E. C. I. A. Chapter 2 Fund All Other (K-12) All Other

A separate fund should be used for each of the above or one Special Revenue Fund may be used supplemented by the dimension
"Project/Reporting" code. Reporting to the Georgia Department of Education will be by separate fund code.

JULY 1, 1983

PAGE 6-1

GEORGIA FINANCIAL
ACCOUNTING HANDBOOK PART I

Code_ 60
65 10
80 90

ACCOUNT CLASSIFICATION DESCRIPTIONS (CONTINUED)
Fund
ENTERPRISE FUND. Proprietary Fund to account for operations that are financed and oRerated in a manner similar to private business enterprises where the stated intent is that the costs (expenses, including depreciatlon and indirect costs) of providing goods or services to the students or general public on a continuing basis are financed or recovered primarily through user charges. Enterprise funds are also used to account for operatlons where the school board or State regulatory agency has decided that periodic determination of revenues earned, expenses incurred, and net income is appropriate for capital malntenance, public policy, management control, accountability, or other purposes. The chief example of an Enterprise Fund is the School Food and Nutrition Program. Other possibilities might include a bookstore operation, an athletic stadium operation, or a community swimming pool operation.
INTERNAL SERVICE FUNDS. Proprietary Fund to account for the operation of LEA functions which provide goods or services to other LEA functions, other lEAls, or to other governmental units on a cost-reimbursable basis. The chief example of the Internal Service Fund is a C.E.S.A. Other examples might be central warehousing and purchasing, central data processing, and central printing and duplication operatlons.
FIDUCIARY FUNDS. To account for assets held by an LEA in a trustee capacity or as an agent for individuals, private organizations, other governmental units and/or other funds. Trust funds would include non-expendable trust funds, expendable trust funds, and pension trust funds. Fiduciary funds could include funds for a parent-teacher organization or a teacher organization.
GENERAL FIXED ASSETS ACCOUNT GROUP. To record the cost of all property, plant and equipment other than those accounted for in the proprietary funds or fiduciary funds. General fixed assets include sites, site improvements, buildings and building improvements, machinery and equipment.
GENERAL LONG-TERM DEBT ACCOUNT GROUP. To record the principal amount of all long-term liabilities excluding those of the proprietary funds or fiduciary funds. The long-term liabilities include general obligation bonds, capitalized lease obligations, legal judgments, special assessments payable to cities or other governmental units, unfunded pension liabilities, and notes and warrants which are not due within one year.

JULY 1, 1983

PAGE 6--2

GEORGIA FINANCIAL ACCOUNTING HANDBOOK
PART I

1000 1100 1110 1111 1112 1120 1130 1140
1150 1160
1170 1180
1190

ACCOUNT CLASSIFICATION DESCRIPTIONS (CONTINUED)
Revenue Source
REVENUE FROM LOCAL SOURCES
REVENUE FROM CITY OR COUNTY GOVERNMENT. Revenue recorded by the LEA from a city or county government.
AD VALOREM TAXES. Tangible and intangible taxes recorded for school purposes by a city or county.
AD VALOREM TAXES - CURRENT YEAR. Revenue from taxes recorded for the current year on personal property and real estate.
AD VALOREM TAXES - PRIOR YEARS. Revenue recorded for taxes which were levied in prior years.
LOCAL OPTION SALES TAX. Taxes assessed by a unit other than an LEA upon the sale and consumption of goods and services.
REAL ESTATE TRANSFER TAX. Taxes assessed upon the transfer of ownership of real estate.
PENALTIES AND INTEREST ON TAXES. Revenue as penalties for the payment of taxes after the due date or dates, and the interest charged on delinquent taxes from the due date to actual payment.
NATIONAL FOREST FINES AND FORFEITURES. Revenue from fines and forfeitures for violations of wildlife laws in National Forests and Reserves.
gEVENUE FROM ESCHEATED ESTATES. Revenue from the sale of property that has reverted to the local government because a deceased person has died both intestate and without an heir.
APPROPRIATIONS FROM CITY OR COUNTY. Revenue received from a city or county as a result of an appropriation.
REVENUE IN LIEU OF TAXES. Payments made out of general revenues by a city or county to the LEA in lieu of taxes it would have had to pay had its property or other tax base been subject to taxation by the LEA on the same basis as privately owned property.
OTHER TAXES. Other forms of taxes collected by a city or county government and transferred to the LEA.

JULY 1, 1983

PAGE 6-3

GEORGIA FINANCIAL
ACCOUNTING HANDBOOK PART I

Code 1000
1300
1310 1320 1400
1410 1420 1430 1495 1500 1510
1520

ACCOUNT CLASSIFICATION DESCRIPTIONS (CONTINUED)
Revenue Source
REVENUE FROM LOCAL SOURCES (CONTINUEDjl
TUITION. Revenue from individuals, welfare agencies, private sources and other LEA's for education provided by the LEA.
TUITION FROM OTHER GEORGIA LEA'S. Tuition revenue from other Georgia LEA's.
OTHER TUITION. Tuition revenue from other sources.
TRANSPORTATION FEES. Revenue from individuals, welfare agencies, private sources, or other LEA's for transporting students to and from school and school activities.
TRANSPORTATION FEES FROM INDIVIDUALS. Transportation revenue from individuals.
TRANSPORTATION FEES FROM OTHER LEA's WITHIN THE STATE. Transportation revenue from other LEA's within the State.
TRANSPORTATION FEES FROM LEA's OUTSIDE THE STATE. Transportation revenue from LEA's outside the State.
TRANSPORTATION FEES FROM OTHER SOURCES. Transportation revenue from other sources.
EARNINGS ON INVESTMENTS OR DEPOSITS. Revenue from invested holdings.
INTEREST ON INVESTMENTS OR DEPOSITS. Interest revenue from temporary or permanent investments in United States Treasury bills, notes, savings accounts, NOW deposits, certificates of deposit, or other interest bearing investments.
DIVIDENDS ON INVESTMENTS. Revenue from dividends on stocks held for investment.

JULY 1, 1983

PAGE 0-4

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART I

1000 1500 1530
1600 1610
16J 1 1612 1613 1620
1b21

ACCUUNT CLASSIFICATION DESCRIPTIONS (CONTINUED)
Revenue Source
REVENUE FROM LOCAL SOURCES (CONlINUED)
EARNINGS ON INVESTMENTS OR DlPOSI1S (CONTINUED)
GAINS OR LOSSES ON SALE OF INVESTMENTS. Gains or losses realized from the sale of bonds or stocks. Gains represent the excess of the sales proceeds over cost or other basis as of the date of the sale (cost less amortization of premium in the case of long-term bonds purchased at a premium over par value or cost plus amortization of discount on long-term bonds purchased at a discount under par value). Losses represent the excess of the cost or other basis at date of sale (as described above) over the sale proceeds. Gains realized from the sale of U. S. Treasury Bills represent interest income and should be credited to Interest on Investments or Deposits.
CHILD NU1RITION PROGRAM. Revenue from dispensing food to students and adults.
DAILY SALES-REIMBURSABLE PROGRAMS. Revenue from students for the sale of breakfasts, lunches, and milk which are considered reimbursable by the United States Department of Agriculture. Federal reimbursements are not entered here. lhey should be recorded under Revenue From Other Federal Sources.
NA1IUNAL SCHOOL LUNCH PROGRAM. Revenue from students for the sale of reimbursable lunches as part of the National School Lunch Program.
NATIONAL SCHOOL BREAKFAST PROGRAM. Revenue from students for the sale of reimbursable breakfasts as part of the School Breakfast Program.
CHILD CARE PROGRAM
DAIl Y SALES -- NON-REIMBURSABLE PROGRAMS. Revenue from students or adults for the sale of non-reimbursable breakfasts, lunches and milk. This category would include all sales to adults, the second type A lunch to students and a la carte sales.
SUPPLEMENTAL SALES. Revenue from the sale of extra portions or items.

JULY 25, 1984, REVISION JUL Y I, 1983, 1SSUE

PAGE b-~

GEURGIA fINANCIAL ACCOUNIING HANDBUOK PART I

Code 1000
1600 1b20
1>22
1>29
1>30
1800
1900
1910
1920
1940 1950

ACCOUNT CLASSIFICATION DESCRIPT"IONS (CONIINUED)
Revenue Source
REVENUE fROM LOCAL SOURCES (CONliNUED)
CHILO NUTRIlION PROGRAM (CONTINUED)
DAILY SALES - NON-REIM8URSABLE PROGRAMS (CONTINUED)
AUULI SALES. Revenue from the sale of meals to adults.
OTHER. uther revenues recorded as a result of food service activities.
SPECIAL FUNCTIONS. Revenue from students, adults, or organizations for the sale of food products and services considered special functions. Some examples would include pot lucks, PTA sponsored functions and athletic banquets.
REVENUE FROM COMMUNITY SERVICES ACTIVITIES. Revenue from community services activities operated by an LEA. For example, revenue from operations of a tennis court by an LEA as a community service would be recorded here. Multiple accounts may be established within the 1800 series to differentiate various activities.
OTHER REVENUE FROM LOCAL SOURCES. Other revenue from local sources which are not classified above.
RENTALS. Revenue from the rental of either real or personal property owned by the LEA.
CONTRIBUTIONS AND DONATIONS FROM PRIVAIE SOURCES. Revenue from a philanthropic foundation, private individuals, or private organizations for which no repayment or special service to the contributor is expected.
TEXIBOOK SALES AND FEES. Revenue from sale of textbooks and fees for lost or damaged textbooks.
SERVICES PROVIDED OTHER EDUCATIONAL AGENCIES OR OTHER GOVERNMENTAL UNITS. Revenue from services provided other LEA'S other than for tuition. These services could include transportation services, data processing, purChasing, maintenance, cleaning, consulting, and guidance. This account also includes receipts for sales to local educational agencies.

JULY 25, 1984, REVISION JULY 1, 1983, ISSUE

PAGE I)-I)

GEORGIA FINANCIAL
ACCOUNIING HAND800K PART I

1000 1900 1970
1980 1995 3000 3100
3103
3118 3125 3132
3133
3134 3144

ACCOUNT CLASSIFICATION DESCRIPTIONS (CONTINUED)
Revenue Source
REVENUE FROM LOCAL SOURCES (CONTINUED)
OTHER REVENUE FROM LOCAL SOURCES (CONTINUED)
SERVICES PROVIDED OTHER FUNDS. Services provided other funds such as printing or data processing. This account would only be used in the Internal Service Fund.
STUDENT SUPPLY FEES. Revenue from students for supplies.
MISCELLANEOUS. Revenue from local sources not otherwise classified.
REVENUE FROM STATE SOURCES.
REVENUE FROM GEORGIA DEPARTMENT OF EDUCATION FOR APEG GRANTS. Revenue recorded from the Georgia Department of Education for APEG items. This does not include Superintendent's salary and supplement. vocational education grants. or other funds received from the Georgia Department of Education.
SALARIES & BENEFITS-EXTENDED KINDERGARTEN DAY. Revenue recorded for salaries and benefits for extended kindergarten day.
INSTRUCTIONAL AIDES-KINDERGARTEN. Revenue recorded for kindergarten instructional aides.
SALARIES-SCHOOL PSYCHOLOGISTS. Revenue recorded for salaries of school psychologists.
SALARIES-TEACHERS OF SEVERELY EMOTIONALLY DISTURBED. Revenue recorded for salaries of teachers of severely emotionally disturbed.
SALARIES-TEACHERS IN GEORGIA LEARNING RESOURCES SYSTEMS. Revenue recorded for salaries for teachers in GLRS (SED).
SALARIES-TEACHERS IN INSTITUTIONS. Revenue recorded for salaries for teachers in institutions.
CENTER FOR SEVERELY EMOTIONAllY DISTURBED. Revenue recorded for Centers for Severely Emotionally Disturbed (SED).

MARCH 7. 1984. REVISION JULY 1. 1983. ISSUE

PAGE &-7

GEORGIA FINANCIAL
ACCOUNTING HANDBOOK PART I

Code 3000
3100 3141
3159 31&0 31&1 31&2 31&3 31&4
31&5
31&6
3161
31&8 3110

ACCOUNT CLASSIFICATION DESCRIPTIONS (CONTINUED)
Revenue Source
REVENUE FROM STATE SOURCES (CONTINUED)
REVENUE FROM GEORGIA DEPARTMENT OF EDUCATION FOR APEG GRANTS (CONTINUED)
COOPERATIVE EDUCATIONAL SERVICE AGENCY GRANTS. Revenue recorded for Cooperative Educational Services Agencies (CESA).
SALARIES-INSTRUCTIONAL AIDES. Revenue recorded for salaries for instructional aides.
SALARIES-CLASSROOM TEACHERS. Revenue recorded for salaries of classroom teachers.
SALARIES-SPECIAL EDUCATION TEACHERS. Revenue recorded for salaries of special education teachers.
SALARIES-STUDENT SUPPORT PERSONNEL. Revenue recorded for salaries of student support personnel.
SUPPLEMENTS FOR STUDENT SUPPORT PERSONNEL. Revenue recorded for supplements of student support personnel.
SALARIES-ADMINISTRATIVE AND SUPERVISORY PERSONNEL. Revenue recorded for salaries of administrative and supervisory personnel.
SUPPLEMENTS-ADMINISTRATIVE AND SUPERVISORY PERSONNEL. Revenue recorded for supplements for administrative and supervisory personnel.
SALARIES-SPECIAL EDUCATION LEADERSHIP PERSONNEL. Revenue recorded for salaries for special education leadership personnel.
GRANTS FOR COMPENSATORY EDUCATION GRADES 3-8. Revenue recorded as grants for compensatory education for grades 3 through 8.
SALARIES-KINDERGARTEN TEACHERS. Revenue recorded for salaries for kindergarten teachers.
GRANTS-INSTRUCTIONAL MATERIALS AND MEDIA. Revenue recorded as grants for instructional materials and media.

MARCH 1, 1984, REVISION JULY 1. 1983. ISSUE

PAGE &-8

GEORGIA FINANCIAL
ACCOUNTING HAND800K PART I

~ode
3000 3100
3 J71
3112 3113
3174
3116 3117 3118 3180 3181 3183 3199 3200
3300

ACCOUNT CLASSIFICATION DESCRIPTIONS (CONTINUED)
Revenue Source
REVENUE FROM STATE SOURCES (CONTINUED)
REVENUE FROM GEORGIA DEPARTMENT OF EDUCATION FOR APEG GRANTS (CONTINUED)
GRANTS-INSTRUCTIONAL EQUIPMENT. Revenue recorded as grants for instructional equipment.
MAINTENANCE AND OPERATION. Revenue recorded as maintenance and operatlon.
SICK AND PERSONAL LEAVE. Revenue recorded to pay the salaries of substitute teachers.
TRAVEL. Revenue recorded for reimbursement of travel expenses.
PUPIL TRANSPORTATION. Revenue recorded as pupil transportation grants.
SALARIES-TEACHERS-ISOLATED SCHOOLS. Revenue recorded for salaries of teachers in isolated schools.
OTHER EXPENSE-ISOLATED SCHOOLS. Revenue recorded for other expenses for isolated schools.
PUPIL TRANSPORTA1ION-SICK & PERSONAL LEAVE. Revenue
recorded to pay the salaries of substitute bus drivers.
fRANSPORTATION-BUS REPLACEMENT. Revenue recorded as bus replacement funds.
GRANTS FOR COMPENSATORY EDUCATION GRADE 10. Revenue recorded for compensatory education for grade 10.
OTHER GRANTS. Other revenue recorded as APEG grants.
SUPERINTENDENT'S SALARY AND SUPPLEMENT. Revenue recorded by the LEA from the Georgia Department of Education for the state portion of the Superintendent's salary.
VOCATIONAL EDUCATION GRANTS. Revenue recorded by the LEA from the Georgia Department of Education for Vocational Education.

JULY 1, 1984, REVISION JUL Y I. 1983. ISSUE

PAGE 6-9

GEORGIA FINANCIAL ACCOUNliNG HANDBOOK PAR r I

ACtOUNl CLASSIFICATION DESCRIPTIONS (CONTINUE~)

Code

R~venue Source

3000

REVENUE FROM STATE SOURCES (CONTINUED)

3400

OTHER FUNDS FROM THE 6EOR6IA DEPARTMENT OF EDUCATION

3401

CHILO NU1RITION PROGRAM. Revenue recorded by the LEA from

the Georgia Department of Education for the Child

Nutrition Program.

3402

STAFf DEVELOPMENT. Revenue recorded by the LEA from the

Georgia Department of Education for staff development.

3403

PERFORMANCE BASED CERTIfICATION. Revenue recorded by the

LEA from the Georgia Department of Education for

performance based certification.

3404

ADULT EDUCATION. Revenue recorded by the LEA from the

Georgia Department of Education for adult education.

340!J

CAPITAL OUTLAY. Revenue recorded by the LEA from the

Georgia Department of Education for capital outlay.

340b

EDUCATIONAL PURPOSES 10 ENtOURAGE TAX RELIEF. Revenue

recorded by the LEA from the Georgia Department of

Education for educational purposes to encourage tax

relief.

3499

OTHER GRANTS. Other grants recorded by the LEA from the

Georgia Department of Education.

3500

GEORGIA DEPARTMENT OF EDUCATION FOR EDUCATION CONSOLIDATION

IMPROVEMENT ACT (ECIA)

3/00

REVENUE FROM OTHER STATE AGENCIES

3101

GEORGIA STATE FINANCING AND INVESTMENT COMMISSION

REIMBURSEMENT. Funds recorded by the LEA from the Georgia

State Financing and Investment Commission.

3"102

RAILWAY EQUIPMENT TAX. Revenue recorded from the Georgia

Department of Revenue for Railway Equipment Tax.

3199

OTHER FUNDS FROM OTHER STATE AGENCIES. Funds recorded by

the LEA from other State agencies not listed above.

3900

REVENUE FOR/ON BEHALF OF THE lE.A. Commitments or payments made by

the State for the benefit of the LEA, or contributions of equipment

or supplies.

JULY 1, 1984, REVISION JULY 1, 1983, ISSUE

PAGE b-10

GEORGIA FINANCIAL
ACCOUNTING HANDBOOK PART I

ACCOUNT CLASSIFICATION DESCRIPTIONS (CONTINUED)

Revenue Source

3900

REVENUE FOR/ON BEHALF OF THE LEA (CONTINUED)

It includes the payment to a pension fund or health

insurance fund by the State on behalf of an LEA employee

for services rendered to the LEA and a contribution of

capital outlay funds by a State unit to the LEA.

Separate accounts may be maintained to identify the

specific nature of the revenue item.

4000

REVENUE FROM FEDERAL SOURCES

4300

RESTRICTED GRANTS-IN-AID DIRECT FROM THE FEDERAL

GOVERNMENT. Revenue direct from the Federal Government

as grants to the LEA which must be used for a categorical

or specific purpose. If such money is not completely

used by the LEA, it usually is returned to the

governmental unit.

4310
4311 4312 4313 4314 4313 4316 4317

ELEMENTARY/SECONDARY EDUCATION PROGRAMS
(MISCH I ANEOUS) ALCOHOL AND DRUG ABUSE BILINGUAL EDUCATION COMMUNITY EDUCATION CONSUMER EDUCATION EDUCATION AND THE ARTS
EDUCATIONAL TV PROGRAMMiNG ENVIRONMENTAL EDUCATION

4320

ELEMENTARY/SECONDARY EDUCATION PROGRAMS (OTHER)

4321

FOllOW THROUGH

4322

GIFTED AND TALENTED

4323

HEAD START

4324

METRIC EDUCATION

432~

RIGHT TO READ

4326

lEACHER CORPS

4321

WOMEN'S EDUCATIONAL EQUITY

4329

OrHER

4330

VOCATIONAL PROGRAMS

4331

VEA PART C - RESEARCH

4332

VEA PARI D - EXEMPLARY

4333

VEA PARI I - CURRICULUM

4340

EMPLOYMENT PROGRAMS

4341

CARE.ER [DUCATION

4342

NEIGHBORHOOD YOUTH CORPS

JULY I, 1984, RE.VISION JULY 1,1983, ISSUE

PAGE 6-11

GEORGIA FINANCIAL
ACCOUNIING HANDBOOK PARI I

Code 4000
4300
43!>0 4351 43S2 4353 4354 4355 435b
4360 4361 4362 4363
4310 4311 43"12 4373 43J4
4BOO
4810 4820 4830 4900
4995

ACCOUNT CI.ASSIFICATION DESCRIPTIONS (CONTINUED)
Revenue Source
REVENUE FROM FEDERAL SOURCES (CONTINUED)
RESTRICTED GRANtS-IN-AID DIRECT FROM THE FEDERAL GOVERNMENT
HANDICAPPED PROGRAMS EHA VI-C EARLY EDUCATION FOR HANDICAPPED EHA VI-C SEVERELY HANDICAPPED EHA VI-C DEAF-BLIND CENTERS EHA VI-E RESEARC~ EHA VI-F MEDIA SERVICES FOR HANDICAPPED EHA VI-G SPECIFIC LEARNING DISABILITIES.
DEVELOPMENT DISABILITIES. AND REMOVAL OF ARCHITECTULAL BARRfERS
INDIAN EDUCATION PROGRAMS BASIC GRANTS (PART A) ~PECIAL PROGRAMS AND PROJECTS ASSISTANCE FOR NON-FEDERAL LEAls
DESEGREGATION PROGRAMS CIVIL RIGHTS TECHNICAL ASSISfANCE COMMUNITY ACTION EMERGENCY SCHOOL AID ACT MAGNET SCHOOLS
REVENUE IN LIEU OF TAXES. COlOOlitments or payments made out of general revenues by the Federal Government to the LEA in lieu of taxes it would have had to pay had its property or other tax base been subject to taxation by the LEA on the same basis as privately owned property or other tax base. It would include payment made for privately owned property which is not SUbject to taxation on the same basis as other privately owned property due to action by the Federal Governmental unit.
FEDERAL FOREST RESERVE
IMPACT AID (P.L. 814)
OTHER FEDERAL REVENUE IN LIEU OF TAXES
OtHER FEDERAL REVENUE
REVENUE FROM OTHER FEDERAL SOURCES

JULY I. 1984, REVISION JULY I, 1983. ISSUE

PAGE 6-12

GEORGIA FINANCIAL
ACCOUNTING HANDBOOK PAR I I

5000 5100 5110 5120
5130 5200
5300
5400 5900
5995

ACCOUNT CLASSIFICATION DESCRIPTIONS (CONTINUED)
Revenue Source
REVENUE FROM OTHER FEDERAL SOURCES
SALE OF BONDS. The proceeds from the sale of bonds.
BOND PRINCIPAL. Proceeds of principal from the sale of bonds.
PREMIUM ON BONDS. Proceeds from that portion of the sales price of bonds in excess of their par value. The premium represents an adjustment of the i nterest rate.
ACCRUED INTEREST. Proceeds from the accrued interest on bonds sold.
INCOMING TRANSFERS FROM OTHER FUNDS. Amounts recorded from another fund which will not be repaid. Interfund loans are not recorded here. but are handled through the balance sheet accounts 131 and 401 in the funds affected.
SALE OR COMPENSATION FOR LOSS OF ASSETS. Proceeds from the sale of school property or compensation for the loss of assets.
INDIRECT COST REIMBURSEMENT. Revenue recorded as reimbursement for indirect cost.
OTHER SOURCES
OTHER SOURCES

Descriptors for the fund codes can be found on pages 6-1 and 6-2.
FUNCTION
The function describes the activity being performed for which a service or material object is required. Functions include all activities or actions which are performed to accomplish the objectives of an enterprise. The functions of an LEA are classified into five broad areas; Instruction. Support Services. Operation of Non-Instructional Services. Facilities Acquisition and Construction and Other Outlays. Functions are further broken down into subfunctions and areas of responsibility.

MARCH 7. 1984. REVISION JULY 1. 1983. ISSUE

PAGE 6-13

GEORGIA FINANCIAL ACCOUNTING HANDBOOK
PART I

ACCOUNT CLASSIFICATION DESCRIPTIONS (CONTINUED)

Each of these levels consists of activities which have somewhat the same general operational objectives. Furthermore, categories of activities
comprising each of these divisions and subdivisions are grouped according to the principle that the activities can be combined, compared, related, and are mutually exclusive. For example;

Function - Support Services

2000

Sub-function - Support Services -

General Administration

2300

Service area - Board of Education

Services

2310

Area of responsibility - Board

Treasurer Services

2313

It is not the purpose of the function structure in this manual to dictate
an organizational structure; i. e., how the administrative functions are organized. Rather, an effort has been made to group together functions in relation to the magnitude of expenditures typically found in the LEA. This grouping corresponds to the categories most frequently requested in reporting
to external authorities. Those LEA's wishing to utilize an organizational
structure within their account code should consider the use of the dimensions instructional organization and operational unit.

Code

Function

1000

Instruction. Instruction includes the activities dealing

directly with the interaction between teachers and

students. Teaching may be provided for students in a

school classroom, in another location such as a home or

hospital, and in other learning situations such as those

involving co-curricular activities. It may also be

provided through some other approved medium such as

television, radio, telephone, and correspondence. Included

here are the activities of aides or classroom assistants of

any type (clerks, graders, teaching machines, etc.) which

assist in the instructional process.

2000

Support Services. Support services are those services

which provide administrative, technical (such as guidance

and health), and logistical support to facilitate and

enhance instruction. Support services exist as adjuncts

for the fulfillment of the objectives of instruction,

community services and enterprise programs, rather than as

entities within themselves.

MARCH 1, 1984, REVISION JULY 1, 1983, ISSUE

PAGE 6-14

GEORGIA FINANCIAL ACCOUNTING HANDBOOK
PART I

ACCOUNT CLASSIFICATION DESCRIPTIONS (PRIOR TO 7/1/86) (CONTINUED)

2100

Support Services - Students. Activities designed to assess

and improve the well-being of students and to supplement

the teaching process.

2110

Attendance and Social Work Services. Activities which have

as their purpose the improvement of the attendance of

students at school and which attempt to prevent or solve

the problems of students which involve the home, the

school, and the community. Activities of the registration

function for adult education programs are included here.

2111

Supervision of Attendance and Social Work Services.

The activities associated with directing, managing and

supervising attendance and social work.

2112

Attendance Services. Activities such as prompt

identification of patterns of nonattendance, promotion of

improved attitudes toward attendance, analysis of causes of

nonattendance, early action on problems of nonattendance,

and enforcement of compulsory attendance laws.

2113

Social Work Services. Activities such as investigating and

diagnosing student problems arising in the home, school, or

community; casework and group work services for the child,

parent, or both; interpreting the problems of students for

other staff members; and promoting modification of the

circumstances surrounding the individual student which are

related to his/her problem insofar as the resources of the

family, school, and community can be brought to bear

effectively upon the problem.

2114

Student Accounting Services. Activities of acquiring and

maintaining records of school attendance, location of home,

family characteristics, and census data. Portions of these

records become a part of the cumulative record which is

sorted and stored for teacher and guidance information.

Pertinent statistical reports are prepared under this

function as well.

2115

Other Attendance and Social Work Services. Attendance and

social work services other than those described above.

AUGUST 27, 1985, REVISON JULY 1, 1983, ISSUE

PAGE 6-15

GEORGIA FINANCIAL ACCOUNTING HANDBOOK
PART I

ACCOUNT CLASSIFICATION DESCRIPTIONS (PRIOR TO 7/1/86) (CONTINUED)

Code

Function

2000

Support Services (Continued)

2100

Support Services - Students (Continued)

2120

Guidance Services (Continued)

2120

Guidance Services. Activities involving counseling with

students and parents, providing consultation with other

staff members on learning problems, evaluating the

abilities of students, assisting students as they make

their own educational and career plans and choices,

assisting students in personal and social development,

providing referral assistance, and working with other

staff members in planning and conducting guidance

programs for students.

2121

Supervision of Guidance Services. Activities associated

with directing, managing, and supervising guidance

services.

2122

Counseling Services. Activities concerned with the

relationship between one or more counselor(s) and one or

more students as counselee(s), students and counselors

and other staff members, all for the purpose of assisting

the student to understand his educational, personal, and

occupational strengths and limitations; relate his/her

abilities, emotions, and aptitudes to educational and

career opportunities; utilize his/her plans; and achieve

satisfying personal and social development.

2123

Appraisal Services. Activities having as their purpose

an assessment of student characteristics which are used

in administration, instruction, and guidance, and which

assist the student in assessing his/her purposes and

progress in career development and personality

development. Test records and materials used for student

appraisal are usually included in each student's

cumulative record.

2124

Information Services. Activities organized for the

dissemination of educational, occupational, and personal

social information to help acquaint students with the

curriculum and with educational and vocational

opportunities and requirements. Such information might

be provided directly to students through activities such

as group or individual guidance, or it might be provided

indirectly to students, through staff members or

parents.

AUGUST 27, 1985, REVISION JULY 1, 1983, ISSUE

PAGE 6-16

GEORGIA FINANCIAL ACCOUNTING HANDBOOK
PART I

ACCOUNT CLASSIFICATION DESCRIPTIONS (CONTINUED)

Function

2000

Support Services (Continued)

2100

Support Services - Students (Continued)

2120

Guidance Services (Continued)

2125

Record Maintenance Services. Activities organized for the

compilation, maintenance, and interpretation of cumulative

records of individual students, including systematic

consideration of factors such as the following:

Home and family background Physical and medical status
Standardized test results Personal and social developments School performance

2126

Placement Services. Activities organized to help place

students in appropriate educational situations while they

are in school, in appropriate part-time employment while

they are in school, and in appropriate educational and

occupational situations after they leave school. These

activities also help facilitate the student's transition

from one educational experience to another. This may

include, for example, admissions counseling, referral

services, assistance with records, and follow-up

communications with employers.

2129

Other Guidance Services. Guidance services which cannot be

classified above.

2130

Health Services. Physical and mental health services which

are not direct instruction. Included are activities that

provide students with appropriate medical, dental, and

nursing services.

2131

Supervision of Health Services. Activities associated with

directing and managing health services.

2132

Medical Services. Activities concerned with the physical

and mental health of students, such as health appraisal,

including screening for vision, communicable diseases, and

hearing deficiencies; screening for psychiatric services;

periodic health examinations; emergency injury and illness

care; and communications with parents and medical officials.

2133

Dental Services. Activities associated with dental

screening, dental care, and orthodontic activities.

MARCH 7, 1984, REVISION JULY 1. 1983. ISSUE

PAGE 6-17

GEORGIA FINANCIAL ACCOUNTING HAND800K PART I

Code 2000
2100 2134 2139
2140
2141 2142
2143
2149 2150

ACCOUNT CLASSIFICATION DESCRIPTIONS (CONTINUED)
Function
Support Services (Continued)
Support Services - Students (Continued)
Nursing Services. Activities associated with nursing such as health inspection, treatment of minor injuries, and referrals for other health services.
Other Health Services. Health services not classified above.
Psychological Services. Activities concerned with administering psychological tests and interpreting the results, gathering and interpreting information about student behavior, working with other staff members in planning school programs to meet the special needs of students as indicated by psychological tests, and behavioral evaluation and planning and managing a program of psychological services, including psychological counseling for students, staff, and parents.
Supervision of Psychological Services. Directing, managing and supervising the activities associated with psychological services.
Psychological Testing Services. Activities concerned with administering psychological tests, standardized tests, and inventory assessments of ability, aptitude, achievement, interests and personality and their interpretation for students, school personnel, and parents.
Psychological Counseling Services. Activities that take place between a school psychologist or other qualified person as counselor and one or more students as counselees in which the students are helped to perceive, clarify, solve, and resolve problems of adjustment and interpersonal relationships.
Other Psychological Services. Other activities associated with psychological services not classified above.
Speech Pathology and Audiology Services. Activities which have as their purpose the identification, assessment, and treatment of children with impairments in speech, hearing, and language.

HARCH 7, 19B4, REVISION JULY 1. 1983. ISSUE

PAGE 6-18

GEORGIA FINANCIAL ACCOUNTING HANDBOOK
PART I

2000 2100 2150 2151 2152
2153 2159 2190

ACCOUNT CLASSIFICATION DESCRIPTIONS (CONTINUED)
Function
Support Services (Continued)
Support Services - Students (Continued)
Speech Pathology and AUdiology Services (Continued)
Supervision of Speech Pathology and Audiology Services. Activities associated with directing, managing and supervising speech pathology and audiology services.
Speech Pathology Services. Activities organized for the identification of children with speech and language disorders; diagnosis and appraisal of specific speech and language disorders; referral for medic~l or other professional attention necessary to the rehabilitation of speech and language disorders; provision of required speech rehabilitation services; and counseling ~nd guidance of children, parents, and teachers, as appropriate.
AUdiology Services. Activities which have as their purpose the identification of hearing problems.
Other Speech Pathology and Audiology Services. Other activities associated with speech pathology and audiology services not classified above.
Other Support Services - Students. Other support services to students not classified elsewhere in the 2100 series.

2200 2210
2211

support Services - Instructional Staff. Activities associated with assisting the instructional staff with the content and process of providing learning experiences for students.
Improvement of Instruction Services. Activities which are designed primarily for assisting instructional staff in planning, developing, and evaluating the process of providing challenging learning experiences for students. These activities include curriculum development, techniques of instruction, child development and understanding, st~ff training, etc.
Supervision of Improvement of Instruction Services. Activities associated with directing, managing and supervising the improvement of instruction services.

MARCH 7, 1984, REVISION JULY 1, 1983, ISSUE

PAGE 6-19

GEORGIA FINANCIAL ACCOUNTING HANDBOOK
PART I

Code 2000
2200 2210 2212
2213
2219 2220
2221 2222

ACCOUNT CLASSIFICATION DESCRIPTIONS (CONTINUED)
Function
Support Services (Continued)
Support Services - Instructional Staff (Continued)
Improvement of Instruction Services (Continued)
Instruction and Curriculum Development Services. Activities designed to aid teachers in developing the curriculum, preparing and utilizing special curriculum materials, and understanding and appreciating the various techniques which stimulate and motivate students.
Instructional Staff Training Services. Activities designed to contribute to the professional or occupational growth and competence of members of the instructional staff during the time of their service to the school system or school. Among these activities are workshops, demonstrations, school visits, courses for college credit, sabbatical leaves, and travel leaves.
Other Improvements of Instruction Services. Activities of improving instruction other than those classified above.
Educational Media Services. Activities concerned with the use of all teaching and learning resources, including hardware and content materials. Educational media are defined as any devices or content materials used for teaching and learning purposes. These include printed and nonprinted sensory materials.
Supervision of Educational Media Services. Activities concerned with directing, managing and supervising educational media services.
School Library Services. Activities such as selecting, acquiring, preparing, cataloging, and circulating books and_ other printed materials; planning the use of the library by students, teachers and other members of the instructional staff; and guiding individuals in their use of library books and materials, whether maintained separately or as a part of an instructional materials center. Textbooks will not be charged to this function but rather to the instruction function.

MARCH 7, 1984, REVISION JULY 1. 1983. ISSUE

PAGE 6-20

GEORGIA FINANCIAL
ACCOUNTING HANDBOOK PART I

2000 2200 2220 2223
2224
2225
2229 2290 2300 2310

ACCOUNT CLASSIFICATION DESCRIPTIONS (CONTINUED)
Function
Support Services (Continued)
Support Services - Instructional Staff (Continued)
Educational Media Services (Continued)
Audiovisual Services. Activities such as selecting, preparing, caring for, and making available to members of the instructionil staff the equipment, films, filmstrips, transparencies, tapes, TV programs, and other similar materials, whether maintiined sepirately or is part of an instructionil miterials center. Included ire activities in the audiovisual center, TV studio, and related workstudy areas, ind the services provided by audiovisual personnel.
Educational Television Services. Activities concerned with planning, programming, writing, and presenting of educationil programs or segments of programs by WiY of closed circuit or broadcast television.
Computer-Assisted Instruction Services. Activities concerned with planning. programming, writing, and presenting educational projects which hive been especially programmed for a computer to be used as the principal medium of instruction.
Other Educational Media Services. Educitional media services other than those classified above.
Other Support Services - Instructional Staff. Supporting services to the instructional staff not properly classified elsewhere in the 2200 series.
Support Services - General Administration. Activities concerned with establishing and administering policy in connection with operating the LEA.
Board of Education Services. Activities of the body which has been created according to State law and vested with responsibility for educational activities in a given administrative unit.

MARCH 7, 1984, REVISION JULY 1. 1983. ISSUE

PAGE 6-21

GEORGIA FINANCIAL ACCOUNTING HANDBOOK
PART I

Code 2000
2300 2310 2311
2312 2313 2314 2315 2316
2319 2320

ACCOUNT CLASSIFICATION DESCRIPTIONS (CONTINUED)
Function
Support Services (Continued)
Support Services - General Administration (Continued)
Board of Education Services (Continued)
Supervision of Board of Education Services. Activities concerned with directing and managing the general operation of the Board of Education. This includes the activities of the members of the Board of Education, but does not include any special activities defined in the other areas of responsibility described below. It also includes any activities of the school system performed in support of the Board of Education meeting. Legal activities in interpretation of the laws and statutes and general liability situations are charged here, as are the' activities of external auditors.
Board Secretary/Clerk Services. The activities required to perform the duties of the Secretary/Clerk of the Board of Education. Board Treasurer Services. The activities required to perform the duties of Treasurer of the Board of Education.
Election Services. Services rendered in connection with any school system election, including elections of officers and bond elections.
Tax Assessment and Collection Services. Services rendered in connection with tax assessment and collection.
Staff Relations and Negotiations Services. Activities concerned with staff relations systemwide and responsibilities for contractual negotiations with both instructional and noninstructional personnel.
Other Board of Education Services. Board of Education services which cannot be classified under the preceding areas of responsibility.
Executive Administration Services. Activities associated with the overall general administration of, or executive responsibility for the entire LEA.

MARCH 7, 19B4, REVISION JULY 1, 1983, ISSUE

PAGE 6-22

GEORGIA FINANCIAL ACCOUNTING HANDIOOK
PART I

2000 2300 2320 2321
2322 2323 2329 2330
2400

ACCOUNT CLASSIFICATION DESCRIPTIONS (CONTINUED)
Function
Support Services (Continued)
Support Services - General Administration (Continued)
Executive Administration Services (Continued)
Office of the Superintendent Services. Activities performed by the superintendent and such assistants as deputies. associate. and assistant superintendents in general direction and management of all affairs of the LEA. This includes all personnel and materials in the office of the chief executive officer. Activities of the offices of the deputy superintendents should be charged here unless the activities can be placed properly into a service area. In this case. they would be charged to the service area.
Community Relations Services. Activities and programs developed and operated systemwide for betterment of school/community relations.
State and Federal Relations Services. Activities associated with developing and maintaining good relationships with State and Federal officials. The activities associated with grant procurement are included. Other Executive Administration Services. Other general administrative services which cannot be recorded under the preceding functions.
Special Area Administration Services. Activities concerned with area-wide supervisory responsibility. This function could include the activities of the chief business official and directors of districtwide instructional programs that have administrative responsibilities. It also would include such general administrative activities is Chapter 1 Coordinator. When two or more service areas are directed by the same individual. the services of that individual may be charged to this function or prorated between the service areas concerned.
Support Services - School Administration. Activities concerned with overall administrative responsibility for a school.

HARCH 1. 1984. REVISION JULY 1. 1983. ISSUE

PAGE &-23

GEORGIA FINANCIAL ACCOUNTING HAND800K PART I

ACCOUNT CLASSIFICATION DESCRIPTIONS (CONTINUED)

Code

Function

2000

Support Services (Continued)

2410

Office of the Principal Services. Activities concerned

with directing and managing the operation of a particular

school. It includes the activities performed by the

principal, assistant principal(s), and other assistants in

general supervision of all operations of the school,

evaluation of the staff members of the school, assignment

of duties to staff members, supervision and maintenance of

the records of the school, and coordination of school

instructional activities with instructional activities of

the LEA. It includes clerical staff for these activities

and for support of the teaching staff.

2490

Other Support Services - School Administration. Other

school administration services. This function includes

graduation expenses and department chairpersons.

2500

Support Services - Business (Continued)

2500 2510

Support Services - Business. Activities concerned with paying, transporting, exchanging, and maintaining goods and services for the LEA. Included are the fiscal and internal services necessary for operating the LEA. Fiscal Services. Activities concerned with the fiscal operations of the LEA. This function includes budgeting,
receiving and disbursing, financial and property
accounting, payroll, inventory control, internal auditing and funds management.

2511

Supervision of Fiscal Services. The activities of

directing, managing and supervising the fiscal services

area. It includes the activities of the assistant

superintendent, director, or school business official whose

efforts are devoted to directing and managing fiscal

activities.

2512

Budgeting Services. Activities concerned with supervising

budget planning, formulation, control and analysis.

2513

Receiving and Disbursing Funds Services. Activities

concerned with taking in money and paying it out. It

includes the current audit of receipts, the preaudit of

requisitions or purchase orders to determine whether the

amounts are within the budgetary allowances and to

determine that such disbursements are lawful expenditures

of the school or an LEA, and the management of school funds.

MARCH 7, 1984, REVISION JULY 1, 1983, ISSUE

PAGE 6-24

GEORGIA FINANCIAL
ACCOUNTING HANDBOOK PART I

2000 2500 2510 2514
2515
2516
2517
2519 2520 2530

ACCOUNT CLASSIFICATION DESCRIPTIONS (CONTINUED)
Function
Support Services (Continued)
support Services - Business (Continued)
Fiscal Services (Continued)
Payroll Services. Activities concerned with making p~riodic payments to individuals entitled to renumeration for services rendered. Payments are also made for such payroll associated costs as Federal income tax withholding, retirement, and social security.
Financial Accounting Services. Activities concerned with maintaining records of the financial operations and transactions of the school system. It includes such activities as accounting and interpreting financial transactions and account records.
Internal Auditing Services. Activities concerned with verifying the account records which include evaluating the adequacy of the internal control system, verifying and safeguarding assets, reviewing the reliability of the accounting and reporting systems, and ascertaining compliance with established policies and procedures.
Property Accounting Services. Activities concerned with preparing and maintaining current inventory records of land, buildings and equipment. These records are to be used in equipment control and facilities planning.
Other Fiscal Services. Fiscal services which cannot be classified under the preceding functions.
Purchasing Services. Activities concerned with purchasing supplies, furniture, equipment, and materials used in schools or school system operation.
Warehousing and Distributing Services. The activities of receiving, storing, and distributing supplies, furniture, equipment, materials, and mail. It includes the pickup and transporting of cash from school facilities to the central administration office, or bank, for control and/or deposit.

MARCH 1, 19B4, REVISION JULY 1. 1983, ISSUE

PAGE 6-25

GEORGIA FINANCIAL
ACCOUNTING HANDBOOK PART I

Code 2000
2540
2590 2>00 2600
2610 2620
2>30 2640

ACCOUNT CLASSIFICATION DESCRIPTIONS (CONTINUED)
Function
Support Services (Continued)
Printing, Publishing, and Duplicating Services. The activities of printing and publishing administrative publications such as annual reports, school directories, and manuals. It also includes centralized services for duplicating school materials and instruments such as school bulletins, newsletters and notices.
Other Support Services - Business. Other support services to business not classified elsewhere in the 2500 series.
Operation and Maintenance of Plant Services (Continued)
Operation and Maintenance of Plant Services. Activities concerned with keeping the physical plant open, comfortable, and safe for use, and keeping the grounds, building, and equipment in effective working condition and state of repair. This includes the activities of maintaining safety in buildings, on the grounds. and in the vicinity of schools.
Supervision of Operation and Maintenance of Plant Services. The activities involved in directing, managing and supervising the operation and maintenance of school plant facilities.
Operation of Buildings Services. Activities concerned with keeping the physical plant clean and ready for daily use. It includes operating the heating, lighting. and ventilating systems, and repair and replacement of facilities and equipment. Also included are the costs of building rental and property insurance.
Care and Upkeep of Grounds Services. Activities involved in maintaining the land and its improvements other than buildings. It includes snow removal. landscaping, grounds maintenance and the like.
Care and Upkeep of Equipment Services. Activities involved in maintaining, in good condition. equipment owned or used by the LEA. It includes such activities as servicing and repairing furniture, machines and movable equipment.

MARCH 7. 1984. REVISION JULY 1, 1983, ISSUE

PAGE 6-26

GEORGIA FINANCIAL
ACCOUNTING HA~DBOOK PART I

2000 2650
2660
2690 2100 2100
2110 2120 2730

ACCOUNT CLASSIFICATION DESCRIPTIONS (CONTINUED)
Function
Support Services (Continued)
Vehicle Operation and Maintenance Services (Other Than Student Transportation Vehicles). Activities involved in maintaining general purpose vehicles such as trucks, tractors, graders, and staff vehicles in good condition. It includes such activities as repairing vehicles, replacing vehicle parts, cleaning, painting, greasing, fueling, and inspecting vehicles for safety, i.e., preventive maintenance.
Security Services. Activities concerned with maintaining order and safety in school buildings at all times, on the grounds and in the vicinity of schools. Included are police activities for school functions, traffic controls on grounds and in the vicinity of schools, building alarm systems and hall monitoring services.
Other Operation and Maintenance of Plant Services. Operations and maintenance of plant services which cannot be classified elsewhere in the 2600 series.
Student Transportation Services (Continued)
Student Transportation Services. Activities concerned with the conveyance of students to and from school. It includes trips between home and school, and trips to school activities.
Supervision of Student Transportation Services. Activities pertaining to directing and managing student transportation services.
Vehicle Operation Services. Activities involved in operating vehicles for student transportation from the time the vehicles leave the point of storage. It includes driving buses or other student transportation vehicles.
Monitoring Services. Activities concerned with supervising students in the process of being transported between home and school and between school and school activities. These activities include supervision while in transit, while being loaded and unloaded, and directing traffic at the loading stations.

MARCH 1, 1984, REVISION JULY 1. 1983, ISSUE

PAGE. 6-27

GEORGIA FINANCIAL
ACCOUNTING HANDBOOK PARl I

ACCOUNT CLASSIFICATION DESCRIPTIONS (CONTINUED)

Code

Function

2000

Support Services (Continued)

2740

Vehicle Servicing and Maintenance Services. Activities

involved in maintaining student transportation vehicles in

good condition. It includes repairing vehicle parts,

replacing vehicle parts, cleaning, painting, fueling, and

inspecting vehicles for safety.

2790

Other Student Transportation Services. Student

transportation services which cannot be classified

elsewhere in the 2700 series.

2800

Support Services - Central. Activities, other than general

administration, which support each of the other

instructional and supporting services programs. These

activities include planning, research, development,

evaluation, information, staff, and data processing

services.

2810

Planning, Research, Development, and Evaluation Services.

Activities associated with conducting and managing programs

of planning, research and development, and evaluation for a

school system on a sy~tem-wide basis.

2811

Development Services. Activities concerned with the

evolving process of utilizing the products of research and

considered judgment in the deliberate improvement of

educational programs.

2812

Evaluation Services. Activities concerned with

ascertaining or judging the value or amount of an action or

an outcome by careful appraisal of previously specified

data in light of the particular situation and the goals and

objectives previously established.

2800

Support Services - Central (Continued)

2810

Planning, Research. Development. and Evaluation Services

(Continued)

2813

Planning Services. Activities concerned with the selection

or identification of the overall long-range goals,

priorities, and objectives of the organization or program,

and the formulation of various courses of action in terms

of identification of needs and relative costs and benefits

for the purpose of deciding on courses of action to be

followed in striving to achieve these goals, priorities,

and objectives.

MARCH 7, 1984, REVISION JULY 1. 1983. ISSUE

PAGE 6-28

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART I

2000 2800 2814 2820
2821 2822 2823
2824
2829 2830
2831 2832

ACCOUNT CLASSIFICATION DESCRIPTIONS (CONTINUED)
Function
Support Services (Continued)
Support Services - Central (Continued)
Research Services. Activities concerned with the systematic study and investigation of the various aspects of education, undertaken to establish facts and principles.
Information Services. Activities concerned with writing, editing, and other preparation necessary to disseminate educational and administrative information to students, staff, managers, and the general public through direct mailing, the various news media, or personal contact.
Supervision of Information Services. The activities of directing, managing and supervising information services.
Internal Information Services. Activities concerned with writing, editing, and providing administrative information to students and staff.
Public Information Services. Activities concerned with writing, editing, and other preparation necessary to disseminate educational and administrative information to the pUblic through various news media or personal contact.
Management Information Services. Activities concerned with writing, editing, and other preparation necessary to disseminate to management for making logical decisions (1) the information needed about the operation of the LEA and (2) information about the community, State and nation.
Other Information Services. Activities concerned with information services not classified above. Staff Services. Activities concerned with maintaining an efficient staff for the school system. It includes such activities as recruiting and placement, staff transfers, inservice training, health services, and staff accounting.
Supervision of Staff Services. The activities of directing, managing and supervising staff services.
Recruitment and Placement Services. Activities concerned with employing and assigning personnel for the LEA.

MARCH 7, 1984, REVISION JULY 1. 1983. ISSUE

PAGE. &-29

GEORGIA FINANCIAL ACCOUNTING HANDBOOK
PART I

Code 2000
2800 2833 2834 2835
2839 2840
2841 2842
2843

ACCOUNT CLASSIFICATION DESCRIPTIONS (CONTINUED)
Function
Support Services (Continued)
Support Services - Central (Continued)
Staff Accounting Services. Services rendered in connection with the systematic recording and summarizing of information relating to staff members employed by the LEA.
Inservice Training Services (For Non-Instructional Staff). The activities developed by the LEA for training of non-instructional personnel in all classifications.
Health Services. Activities concerned with medical. dental, and nursing services provided for school district employees. Included are physical examinations, referrals. and emergency care.
Other Staff Services. Staff Services which cannot be classified under the preceding functions.
Data Processing Services. Activities concerned with preparing data for storage, storing data. and retrieving them for reproduction as information for management and reporting.
Supervision of Data Processing Services. Activities concerned with directing. managing and supervising data processing services.
Systems Analysis Services. Activities concerned with the search for and evaluation of alternatives which are relevant to defined objectives. based on judgment. and wherever possible. on quantitative methods. Where applicable, they pertain to the development of data processing procedures or application to electronic data processing equipment.
Programming Services. Activities concerned with the preparation of a logical sequence of operations to be performed, either manually or electronically. in solving problems or processing data and the preparation of coded instructions and data for such sequences.

MARCH 1, 1984, REVISION JULY 1, 1983, ISSUE

PAGE &-30

GEORGIA FINANCIAL ACCOUNTING HANDBOOK
PART I

ACCOUNT CLASSIFICATION DESCRIPTIONS (PRIOR TO 1/1/86) (CONTINUED)

Funct10n

2840

Data Process1ng Serv1ces (Cont1nued)

2844

Operations Serv1ces. Act1v1t1es concerned with scheduling,

maintaining. and produc1ng data. These activities include

operat1ng business machines. data preparat10n devices. and

data processing machines.

2849

other Data Process1ng Serv1ces. Act1v1t1es concerned with

data process1ng wh1ch are not described above.

2900

Other SUDDort Services. All other support serv1ces not

properly class1f1ed elsewhere in the 2000 ser1es.

Generally. this funct10n w1ll 1nclude serv1ces purchased

from another LEA or CESA as 1nd1cated by object codes 592

and 593.

3000

Operat1on of Non-Instruct1onal Services. Act1v1t1es

concerned w1th providing non-1nstruct1onal services to

students, staff or the community.

3100

Food Serv1ces Operat1ons. Act1vltles concerned w1th

prov1d1ng food to students and staff in a school or LEA.

Th1s serv1ce area 1ncludes the preparation and serving of

regular and 1nc1dental meals or snacks 1n connect1on with

school act1vlt1es and the de11very of food.

3200

Enterpr1se Operations. Act1vlt1es that are f1nanced and

operated 1n a manner s1m1lar to private bus1ness

enterprises where the stated intent 1s that the costs are

f1nanced or recovered primarily through user charges. Food

serv1ces should not be charged here but rather to function

3100. One example could be the LEA bookstore.

3300

Commun1ty Serv1ces Operat1ons (Including Ch1ld Care

Programs). Act1v1t1es concerned w1th prov1d1ng community

serv1ces to students, staff or other commun1ty

part1c1pants. Examples of this funct10n would be the

operat1on of a community sw1mm1ng pool, a recreat10n

program for the elderly, a ch1ld care center for work1ng

mothers, etc.

3900

Other Operat1on of Non-Instruct1onal Serv1ces. Operat1ons

of non-1nstruct1onal serv1ces not properly class1f1ed

elsewhere 1n the 3000 ser1es.

JULY 30. 1985. REVISION JULY 1. 1983. ISSUE

PAGE 6-31

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART I

ACCOUNT CLASSIFICATION DESCRIPTIONS (PRIOR TO 1/1/86) (CONTINUED)

Code

Function

4000

Facilities Acquisition and Construction Services.

Activities concerned with the acquisition of land and

bu1ld1ngs; remodeling bu1ld1ngs; the construction of

buildings and add1t1ons to buildings; initial

installation or extens10n of service systems and other

built-in equ1pment; and improvements to s1tes.

4100

Land Acqu1s1t1on and Development Serv1ces. Act1v1t1es

concerned with the 1n1t1al acqu1s1t10n of s1tes and the

improvements ex1st1ng thereon.

4300

Educational Spec1f1cat10ns Development Services.

Act1v1t1es concerned w1th preparing and 1nterpret1ng to

arch1tects and eng1neers descr1pt10ns of spec1f1c space

requ1rements for the var10us learn1ng experiences of

students to be accommodated 1n a bu1ld1ng. These

spec1f1cat10ns are interpreted to the arch1tects and

eng1neers 1n the early stages of bluepr1nt development.

4500

BU1ld1ng Acqu1s1t10n and Improvements Serv1ces.

Act1v1t1es concerned w1th bu1ld1ng acqu1s1t1on through

purchase or construct10n.

4900

Other Fac1l1t1es Acqu1s1t10n and Construction Services.

Fac1l1t1es acquisition and construction act1v1t1es wh1ch

cannot be class1f1ed above.

5000

Other Outlays. A number of outlays are not properly

class1f1ed as expend1tures. but requ1re budgetary or

account1ng control. These are class1f1ed under Other

Outlays. These 1nclude interest on bonds. redempt10n of

bond principal. other costs of debt service. transfers to

other funds. and 1nd1rect cost charged.

5100

Debt Serv1ce. Serv1c1ng of the debt of the LEA 1nclud1ng

payments of both principal and interest. Normally. only

long-term debt serv1ce (obl1gat10ns 1n excess of one

year) is recorded here. Interest on current loans

(repayable w1th1n one year of rece1v1ng the obl1gat10n)

is charged to funct10n 2519. The rece1pt and payment of

pr1nc1pal on those loans is handled as an adjustment to

the balance sheet account 451.

JULY 30. 1985. REVISION JULY 1. 1983. ISSUE

PAGE 6-32

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART I

ACCOUNT CLASSIFICATION DESCRIPTIONS (PRIOR TO 7/1/86) (CONTINUED)

5000

OTHER OUTLAYS (CONTINUED)

5200

Transfer to Other Funds. Transact10ns wh1ch w1thdraw

money from one fund and place 1t 1n another w1thout

recourse. Interfund loans are not recorded her, but are

handled through the balance sheet accounts 132 and 401 1n

the funds affected.

5400

Ind1rect Cost Charged. Expend1tures reported as 1nd1rect

cost.

5500

Cost Of Sales (Propr1etarY Funds). Th1s funct10n 1s used

w1th object code 890 to record purchases for resale

dur1ng the f1scal year. At the end of the f1scal year,

1t 1s used 1n determ1n1ng the Cost of Sales for cost

account1ng purposes. Th1s w1ll be expla1ned 1n more

deta1l 1n a chapter to be 1ssued ent1tled "Propr1etary

Fund Account1ng".

6000

EmDloyee Benef1ts (EmDloyer Cost Only). Trans1t1onal

funct10n for FY 85 to record employer costs for employee

benef1ts. The use of th1s funct10n 1s opt1onal for FY

85. Employee benef1ts may also be reported w1th1n the

appropr1ate funct10ns for FY 85.

JULY 30, 1985, REVISION JULY 1, 1983, ISSUE

PAGE 6-33

GEORGIA FINANCIAL
ACCOUNTING HANDBOOK PART I

ACCOUNT CLASSIFICATION DESCRIPTIONS (PRIOR TO 7/1/86) (CONTINUED)

OBJECT ---~1s dimension is used to describe the service or commodity obta1ned"as the result of a specific expenditure. There are nine major object categories,
each of which is further subdivided. FolloWing are definitions of the object and subobject categories:

Code

Object

100

Personal Services - Salaries. Amounts earned by

employees of the LEA who are considered to be in

positions of a permanent nature or hired temporarily.

This includes gross salary for personal services rendered

while on the payroll of the LEA's.

110

Teacher Salaries. Contract salary of teachers whose

employment requires they hold a valid Georgia teacher

cert1f1cate, whether their employment is full-time or

part-time.

120

Salary of Superintendent. CESA Director. or AVTS

Director. Contract salary of superintendent, CESA

director or AVTS director.

130

Salaries or Per Diem of Board Members. The compensation

(whether salary or per diem) paid members of the local

board of education.

140

Salaries - Aides and Paraprofessionals. Salar1es paid to

licensed aides and paraprofessionals.

150

Salaries of Substitutes. The amount of salary for

substitutes for employees when the regular employee is

absent from the job assigned.

190

Other Salaries. The amount of salaries paid other

personnel not properly classifiable in 110-150 above.

This would include adm1n1strat1ve and clerical salaries,

transportation drivers' salaries, custodial salar1es,

maintenance and operating personnel salaries, salaries of

food service personnel, and mechan1cs' salaries.

200

Personal Services - Employee Benefits. Expend1tures by

the LEA on behalf of employees. These amounts are not

included in the gross salary, but are in excess of that

amount. Such payments are fringe benefit payments and,

while not paid directly to employees, are part of the

cost of personal services. For FY 85, these charges may

be charged to object 200 in Function 1000, 2100, 2200,

2300, 2400, 2500, 2600, 2790, 2800, 2900, 3100, or 3900

as is appropriate or they may be charged to 6000-XXX.

JULY 30, 1985, ISSUE JULY 1, 1983, ISSUE

PAGE 6-34

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART I

200 210 220 230
240 250 260 270 290
300

ACCOUNT CLASSIFICATION DESCRIPTIONS (CONTINUED)
Object
Personal Services - Employee Benefits (Continued).
Group Health Insurance. Employer's share of costs of group health insurance.
Other Group Insurance. Employer's share of costs of any other group insurance.
Contributions to Teachers' Retirement System. Employer's share of any State or local employee retirement system contribution paid by the LEA including the amount paid for employees assigned to Federal programs.
Tuition Reimbursement. Amounts reimbursed by the LEA to any employee qualifying for tuition reimbursement based upon LEA policy.
Unemployment Compensation. Expenditures by the LEA to provide unemployment compensation for its employees.
Workers' Compensation. Expenditures by the LEA to provide workers' compensation for its employees.
Social Security Contributions. Employer's share of social security costs paid by the LEA.
Other Employee Benefits. Employee benefits other than those classified above. LEA's may establish sub-codes locally for various accrued amounts, such as "unused sick leave".
Purchased Professional and Technical Services. Services which by their nature can be performed only by persons or firms with specialized skills and knowledge. While a product mayor may not result from the transaction, the primary reason for the purchase is the service provided. Included are the services of architects, engineers, auditors, dentists, medical doctors, lawyers, consultants, teachers, accountants, etc. It is recommended that a separate account be established for each type of service provided to the LEA. In general, LEA's should adnere to the classification of staff activities in Handbook IV-R when assigning accounts within the sub-objects in this group.

JULY 1, 1983

PAGE 6-35

GEORGIA FINANCIAL ACCOUNTING HANDBOOK
PART I

Code 300
310
320 330
340 400
410

A~COUNT CLASSIFICATION DESCRIPTIONS (CONTINUED)
Object
Purchased Professional and Technical Services (Continued).
Official/Administrative Services. Services in support of the various policy-making and managerial activities of the LEA. Included would be management consulting activities oriented to general governance or business and financial management of the LEA, school management support activities, election, and tax assessing and collection services.
Professional - Educational Services. S0rvices in support of the instructional program and its administration. Included would be curriculum improvement services, counseling and guidance services, library and media support and contracted instructional services.
Other Professional Services. Professional services other than educational in support of the operation of the LEA. Included are medical doctors, lawyers, architects, auditors, accountants, therapists, audiologists, dieticians, editors, negotiations specialists, systems analysts, planners, and the like. See Handbook IV-R for further detail.
Technical Services. Services to the LEA which are not regarded as professional but require basic scientific knowledge and/or manual skills. Included are data processing services, purchasing and warehousing services, gruphic arts and the like.
Purchased Property Services. Services purchased to operate, repair, maintain, and rent property owned and/or used by the LEA. These services are performed by persons other than LEA employees. While a product mayor may not result from the transaction, the primary reason for the purchase is the service provided.
Water/Sewer/Cleaning Services. Expenditures for utility services other than energy services supplied by public or private organizations. Water, sewerage, and purchased cleaning services are included here. Telephone and telegraph are not included here but are . classified under object 530.

JULY 1, 1983

PAGE 6-36

GEORGIA FINANCIAL
ACCOUNTING HANDBOOK PART I

Code 400
410 411 412 413 414 415
430
440 441 442
450

ACCOUNT CLASSIFICATION DESCRIPTIONS (CONTINUED)
Object
Purchased Property Services (Continued).
Water/Sewer/Cleaning Services (Continued).
Water/Sewer. Expenditures for water/sewer utility services from a private or public utility company.
Disposal Services. Expenditures for the pickup and handling of garbage not provided by LEA personnel.
Snow Plowing Services. Expenditures for snow removal not provided by LEA personnel.
Custodial Services. Services purchased to clean buildings.
Lawn Care Services. Expenditures for lawn and grounds upkeep, minor landscaping, nursery services and the like not provided by LEA personnel.
Repairs and Maintenance Services. Expenditures for repairs and maintenance services not provided directly by LEA personnel. This includes contracts and agreements covering the upkeep of buildings and equipment. Costs for renovating and remodeling are not included here, but are classified under object 450.
Rentals. Costs for rental or leasing of land, buildings, equipment and vehicles.
Rental of Land and Buildings. Expenditures for leasing or renting land and buildings for both temporary and long-range use of the LEA.
Rental of Equipment and Vehicles. Expenditures for leasing or renting of equipment or vehicles for both temporary and long-range use of the LEA. This includes bus and other vehicle rental when operated by an LEA, lease-purchase arrangements, and similar rental agreements.
Construction Services. Expenditures to contractors for constructing, renovating and remodeling.

JULY 1, 1983

PAGE 6-37

GEORGIA FINANCIAL ACCOUNTING HANDBOOK
PART I

Code 400
490 500
510 511
512 519
520

ACCOUNT CLASSIFICATION DESCRIPTIONS (CONTINUED)
Qbject
Purchased Property Services (Continued).
Other Purchased Property Services. Purchased property services which are not classified above. Costs for telephone and telegraph are not included here, but are included in object 530.
Other Purchased Services. Expenditures for services rendered by organizations or personnel not on the payroll of the LEA other than Professional and Technical Services or Property Services. While a product mayor may not result from the transaction, the primary reason for the purchase is the service provided.
Student Transportation Services. Expenditures for transporting children to/from school and other school activities.
Student Transportation Services from an LEA Within 1~e State. Expenditures made to other LEA's within the State for the purpose of transporting children to/from school and school related events. These include costs for individuals who transport themselves or their own children or for reimbursement of transportation expenses on public carriers. Expenditures for the rental of buses which are operated by personnel on the LEA payroll are not recorded here. They are recorded under object 442.
Student Transportation Services from an LEA Outside the State. Expenditures made to other LEA's outside the State for transporting children to school and school related events.
Student Transportation Services from Other Sources. Expenditures to persons or agencies other than LEA's for transporting children to/from school and school related events.
Insurance (Other than Employee Benefits). Expenditures for all types of insurance coverage including property, liability, and fidelity. Insurance for group health is not charged here, but is recorded under object 200.

JULY 1, 1983

PAGE 6-38

GEORGIA FINANCIAL ACCOUNTING HAND800K
PART I

500 530 540
550
560 5&1 5&2 5&3

ACCOUNT CLASSIFICATION DESCRIPTIONS (CONTINUED)
Object
Other Purchased Services (Continued)
Communications. Services provided by persons or businesses to assist in transmitting and receiving messages or information. This category includes telephone and telegraph services as well as postage machine rental and postage.
Advertising. Expenditures for printed announcements in professional periodicals and newspapers or announcements broadcast by way of radio or television networks. These expenditures include advertising for such purposes as: (1) the annual budgets, (2) personnel recruitment, (3) legal notices, (4) sale of new and used equipment, and (5) sale of real estate. Costs for professional fees for advertising or public relations services are not recorded here but are charged to object 330.
Printing and Binding. Expenditures for printing and binding, usually according to specification of the LEA. This includes the design and printing of forms and posters as well as printing and binding of LEA publications. Preprinted standard forms are not charged here, but are recorded under object &10.
Tuition. Expenditures to reimburse other educational agencies for instructional services rendered to students residing in the legal boundaries of the paying LEA.
Tuition to Other LEA's Within the State. Expenditures for tuition to other LEA's within the State.
Tuition to LEA's Outside the State. Expenditures for tuition to LEA's outside the State.
Tuition to Private Sources. Expenditures for tuition to private schools.

MARCH 7, 1984, REVISION JULY " 1983, ISSUE

PAGE &-39

GEORGIA FINANCIAL
ACCOUNTING HANDBOOK PART I

Code 500
560 569
580 590
591 592
593

ACCOUNT CLASSIFICATION DESCRIPTIONS (CONTINUED)
Object
Other Purchased Services (Continued).
Tuition (Continued)
Tuition - Other. Expenditures for tuition to the State and other governmental organizations for reimbursement for the provisions of specialized instructional services to students residing within the boundaries of the paying LEA.
Travel. Expenditures for transportation, meals, hotel, and other expenses associated with staff travel for the LEA.
Miscellaneous Purchased Services. Purchased services other than those described above.
Miscellaneous Services Purchased Locally. Any expenditur@s for purchased services not otherwise classified in the 300, 400 or 500 series of objects are classified here.
Services Purchased from Another LEA or CESA Within Georgia. Expenditures to another LEA within the State for services rendered, other than tuition and transportation fees, are recorded here. Examples of such services are data processing, purchasing, nursing and guidance. Questions might arise as to whether to code such payments to the 300 series of objects or to this code (592). In order that all interdistrict payments can be eliminated when consolidating reports from multiple LEA's at State and Federal levels, code 592 should be used. Expenditures to a CESA for services rendered, other than tuition and transportation fees, are recorded here. Examples of such services are repair of audio-visual equipment and data processing services.
Services Purchased from an LEA Outside the State. Expenditures to an LEA outside the State for services rendered, other than tuition and transportation fees, are recorded here. Examples of such services are data processing, purchasing, nursing and guidance. Where a question arises as to whether to code such paYments to the 300 series of objects or to this code (593), 593 should be used in order that all interdistrict payments can be eliminated when consolidating reports at the Federal level.

MARCH 1, 1984, REVISION JULY 1, 1983, ISSUE

PAGE 6-40

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART I

ACCOUNT CLASSIFICATION DESCRIPTIONS (PRIOR TO 7/1/86) (CONTINUED)

Object

600

SUDD11es. Expend1tures for material items of an expendable

nature that are consumed, worn out, or deteriorated in use;

or items that lose their identity through fabrication or

incorporation into different or more complex units or

substances. Reference is made to Appendix B for the criteria

for distinguishing between a supply and an equipment item.

No specific category for materials has been prOVided. For

clarification of this point, the reader is referred to

Federal Handbook III, Revised, page 78.

610

General Supplies. Expenditures for all supplies (other than

those listed below) for the operation of an LEA, including

freight and shipping charges.

620

Energy. Expenditures for energy, including gas, oil, coal,

gasoline, and services recorded from public or private

utility companies.

621

Natural Gas. Expenditures for gas utility services from a

private or public utility company.

622

Electricity. Expenditures for electric utility services from

a private or public utility company.

623

Bottled Gas. Expenditures for bottled gas, such as propane

gas recorded in tanks.

624

Oil. Expenditures for oil for heating buildings or

lubricating vehicles.

625

Coal. Expenditures for raw coal normally used for heating.

626

Gasoline. Expenditures for gasoline purchased in bulk or

periodically from a gasoline service station.

629

Other Energy. Expenditures for energy not classified above.

630

Food. Expenditures for food used in the school food service

program. Food used in instructional programs is charged

under object 610.

640

Books and Periodicals. Expenditures for books, textbooks and

periodicals prescribed and available for general use,

including any reference books. This category includes the

cost of workbooks, textbook binding or repairs, as well as

textbooks which are purchased to be resold or rented. Also

recorded here are costs of binding or other repairs to school

library books.

JULY 30, 1985, REVISION JULY 1, 1983, ISSUE

PAGE 6-41

GEORGIA FINANCIAL ACCOUNTING HANDBOOK
PART I

ACCOUNT CLASSIFICATION DESCRIPTIONS (PRIOR TO 7/1/86) (CONTINUED)

Code

Object

650

Parts. Expend1tures for parts.

100

Property. Expend1tures for the acqu1s1t1on of f1xed

assets. 1nclud1ng expend1tures for land or ex1st1ng

bu1ld1ngs and 1mprovements of grounds; 1n1t1al equ1pment;

add1t1onal equ1pment; and replacement of equ1pment.

710

Land and Improvements. Expend1tures for the purchase of

land and the 1mprovements thereon. Purchases of a1r

r1ghts. m1neral r1ghts and the 11ke are 1ncluded here.

Spec1al assessments aga1nst the LEA for cap1tal

1mprovements such as streets. curbs, and dra1ns are

recorded here. Th1s object does not 1nclude expend1tures

for the 1mprovement of s1tes and adjacent ways after

acqu1s1t1on by the LEA, consisting of such work as

grad1ng, landscaping. seeding, and planting of shrubs and

trees; constructing new sidewalks, roadways, retaining

walls, sewers and storm drains; 1nstal11ng hydrants;

1n1t1al surfacing and soil treatment of athletic fields

and tennis courts; furnishing and installing for the

first time f1xed playground apparatus, flagpoles,

gateways, fences. and underground storage tanks which are

not parts of bu1ld1ng service systems; and demo11t1on

work. These expenditures are generally charged to

objects 430 and 450, as appropriate.

720

Buildings and Improvements. Expenditures for acquiring

existing bu1ld1ngs. Included are expenditures for

1nstallment or lease payments (except interest) which

have a terminal date and result in the acquisition of

bu1ld1ngs, except payments to public school building

authorities or similar agencies. Expend1tures for the

contracted construction of buildings, for major permanent

structural alterations. and for the initial or add1t1onal

1nstallat1on of heating and ventilating systems, fire

protection systems, and other service systems in ex1st1ng

buildings are recorded under object 450. Bu1ld1ngs built

and alterations performed by the LEA's own staff are

charged to objects 100. 200, 610, and 730, as appropriate.

730

Egu1pment. Expenditures for 1n1t1al, add1t10nal, and

replacement 1tems of equipment such as machinery,

furn1ture and fixtures, and vehicles.

731

Mach1nery. Expend1tures for equipment usually composed

of a complex combination of parts (excluding vehicles).

Examples are lathes. drill presses. printing presses, etc.

JULY 30, 1985, REVISION JULY 1. 1983. ISSUE

PAGE 6-42

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART I

700 730 733 739 740
800 810 820
830 840 890

ACCOUNT CLASSIFICATION DESCRIPTIONS (CONTINUED)
Object
Property (Continued).
Equipment (Continued).
Furniture and Fixtures. Expenditures for equipment used for sitting; as a support for writing and work activities; and as storage space for material items.
Other Equipment. Expenditures for all other equipment not classified elsewhere in the 730 object series.
Depreciation. The portion of the cost of a fixed asset which is charged as an expense during a particular period. In accounting for depreciation, the cost of a fixed asset, less any salvage value, is apportioned over the estimated service life of the asset, and each period is charged with a portion of such cost. Through this process, the cost of the asset is ultimately charged off as an expense In accordance with G. A. A. P., using depreciation is required in proprietary funds only. Computing depreciation is optional in the general fixed assets group of accounts, but it would not be recorded there as an expense.
Other Objects. Expenditures for goods and services not otherwise classified above.
Dues and Fees. Expenditures or assessments for membership in professional or other organizations or associations or payments to a paying agent for services rendered.
Judgments Against the LEA. Expenditures from current funds for all judgments (except as indicated below) against the LEA that are not covered by liability insurance, but are of a type that might have been covered by insurance. Only amounts paid as the result of court decisions are recorded here.
Interest. Expenditures for interest on bonds or notes payable.
Child Nutrition Program Claims. Claim funds transferred to Child Nutrition Program accounting.
Miscellaneous Expenditures. Expenditures for goods or services not properly classified in one of the objects included above.

JULY 1, 1983

PAGE 6-43

GEORGIA FINANCIAL
ACCOUNTING HANDBOOK PART I

Code 900
910 920
930 940 990 000

ACCOUNT CLASSIFICATION DESCRIPTIONS (CONTINUED)
Object
Other Uses of Funds. This series of codes is used to classify transactions which are not properly recorded as expenditures to the LEA, but require budgetary or accounting control. These include redemption of bond principal, building authority obligations and fund transfers.
Redemption of Bond Principal. Outlays from current funds to retire serial bonds and long-term loans.
Obligations to Georgia State Financing and Investment Commission. Outlays from current funds to satisfy building authority obligations of the LEA. A public school building authority is a public or quasi-public corporation having power to issue authority bonds for public school purposes, construct public school buildings, lease public school buildings to local public school administrative units or transfer title to such units. All expenditures of this nature are classified in this category.
Transfers to Other Funds. Includes all transactions conveying money from one fund to another without recourse. Generally, this takes the form of a required transfer from the General Fund to some other fund.
Indirect Cost Charged. Used to record the recovery of indirect cost for Federal projects.
Other Uses of Funds. Other uses of funds not properly classified elsewhere in series 900.
This is not an object code. It is used like an object code to identify totals of expenditures by function.

JULY 1, 1983

PAGE 6-44

GEORGIA FINANCIAL ACCOUNTING HANDBOOK
PART I

ACCOUNT CLASSIFICATION DESCRIPTIONS (CONTINUED)

PROJECT/REPORTING

The project reporting codes permit LEA's to accumulate expenditures to meet a variety of specialized reporting requirements at local, State, and Federal
levels. It is envisioned as a three-digit code. Since this is an optional dimension, LEAs may create project/reporting codes as needed within a framework as follows:

Project

100-399

Local and/or State Projects. Expenditures that require specialized reporting for categorically funded State and/or Loca 1 programs.

400-999

Federal Projects. Expenditures that require specialized reporting to the Federal Government directly or through the State.

000

Non-Categorical. Expenditures that do not require specialized

reporting.

PROGRAM

A program is a plan of activities and procedures designed to accomplish a
predetermined objective or set of objectives. Nine broad program areas are identified in this manual: (1) regular education, (2) special, education, (3) vocational education, (4) other instructional (K-12), (5) non-public school, (6) adult/continuing education, (7) community services, (B) enterprises and (9) undistributed expenditures.

The program dimension provides the LEA the framework to classify
expenditures by program for cost determination purposes. In this process,
only direct instructional costs are classified to a support function. For example, special education transportation costs are classified to the support services function, transportation, even though they could be charged directly to the special education program. The program dimension allows all direct program costs, instructional and support, to be charged directly to the benefiting program. Additionally, use of this dimension allows concurrent classification of support services both to programs and to functions.

JANUARY 30, 19B4, REVISION JULY 1, 19B3, ISSUE

PAGE 6-45

GEORGIA FINANCIAL
ACCOUNTING HANDBOOK PART 1

ACCOUNT CLASSIFICATION DESCRIPTIONS (CONTINUED)

Code

Program

100

Regular Programs-Elementary/Secondary. Act.ivities

designed to provide grades K-12 students with learning

experiences to prepare them for activities as citizens,

family members, and non-vocational workers as

contrast.ed with programs designed to improve or

overcome physical, mental, social and/or emotional

handicaps.

110

~indergarten.

120

!J ementa ry.

130

Middle/Junior High.

140

High.

190

Other.

200

Special Programs. Activities designed primarily to

deal with students having special needs. The Special

Programs include pre-kindergarten, kindergarten,

elementary, and secondary services for the gifted and

talented, mentally retarded, physically handicapped,

emotionally disturbed, culturally different, students

with learning disabilities, bilingual students, and

special programs for other types of students.

210

Special Education - Mentally Handicapped. Activities

designed for students identified as being mentally

impaired according to the degree of impairment.

211

Learning Disabled. Activities for those students

identified as having deficiencies in one or more

aspects of the cognitive process and as being

underachievers in relation to the general level of

their overall abilities.

212

Emotionally Disturbed. Activities for those students

who exhibit an emotional handicap of such a nature and

severity as to require specialized services.

213

Educable Mentally Retarded. Activities designed for

those students who because of impaired intellectual

development are incapable of being educated profitably

and efficiently through the regular education program.

JANUARY 30, 1984, REVISION JULY 1, 1983, ISSUE

PAGE 6-46

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART I

200 210 214
215 216 219 220 221 222 223

ACCOUNT CLASSIFICATION DESCRIPTIONS (CONTINUED)
Program
Special Programs (Continued).
Special Education - Mentally Handicapped (Continued).
Trainable Mentally Retarded. Activities designed for those students who because of impaired intellectual development are incapable of being educated profitably and efficiently through the regular education program or the special education program for educable mentally retarded.
Severely Mentally Retarded. Activities for students who because of impaired intellectual development are incapable of being educated profitably and efficiently through the program for trainable mentally retarded.
Behavior Disordered. Activities for students with behavior disorders.
Other Mentally Handicapped. Activities for students identified as mentally handicapped but not properly classified elsewhere in the 210 series.
Special Education - Physically Handicapped. Activities for students identified as having one or more physical handicaps; e. g. blindness, deafness, speech impairment, or lameness.
Hard of Hearing. Activities for those students who because of impaired physical development cannot understand the spoken word or develop a language thus causing extreme deprivation in learning and communication.
Deaf. Activities for those students who because of severely impaired physical development cannot understand the spoken word or develop a language thus causing extreme deprivation in learning and communication.
Deaf - Blind. Activities for those students who because of impaired physical development are totally unable to hear and are without the power of sight and as such they cannot develop their educational potential without specialized services.

JULY 1, 1983

PAGE 6-47

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART I

Code 200
220 224
225
226 229 250 260 270 290 300
JULY 1, 1983

ACCOUNT CLASSIFICATION DESCRIPTIONS (CONTINUED)

Program

~pecial Programs (Continued).

Special Education - Physically Handicapped (Continued).

Visually Impaired. Activities for those students who because of impaired physical development are without the
power of sight or who have impaired vision and as such cannot develop their educational potential without specialized services.

Speech Impaired. Activities for those students who because of impaired physical development have difficulty in oral communications and whose speech deviates or differs from average or normal speech to the extent that it hinders adequate communication and requires specialized services.

Orthopedically Impaired. Activities for those students who because of impaired physical development and/or deformities, diseases, and injuries of the bones, joints,
and muscles are prevented from educational development.

Qther Health Impaired. Activities for those students who exhibit a physical or health impairment, either temporary or permanent, which interferes with their regular educational program.

Culturally Deprived. Activities for those students whose background is so different from that of most students that they need additional opportunities beyond those provided in the regular educational program.

Bilingual. Activities for students from homes where the English language is not the primary language spoken.

Compensatory. Activities for those students who are achieving below grade level.

Other Special Programs. Other special programs for students which are not properly classified elsewhere in the 200 series (Gifted, multi-handicapped, etc.).

Vocational Education Programs. Activities that provide students with the opportunity to develop the knowledge, skills and attitudes needed for employment in an occupational area.

PAGE 6 -48

GEORGIA FINANCIAL ACCOUNTING HANDBOOK
PART I

Code 300
310 320
330 340
341 342 343
350 360 370 JULY 1, 1983

ACCOUNT CLASSIFICATION DESCRIPTIONS (CONTINUED)

Program

Vocational Education Programs (Continued).

Agriculture Education. Learning experiences that provide opportunities for students to prepare for or improve their
competencies in agriculture operations.

Distributive Education. Activities organized for the purpose of preparing students to perform activities that direct the flow of goods and services, including their appropriate utilization, from the producer to the consumer
or users.

Health Occupations Education. Activities organized to provide students with the knowledge, skills, and understanding required by occupations that support the health professions.

Home Economics Education. Activities organized for the purpose of enabling students to acquire knowledge and
develop understanding, attitudes, and skills relevant to personal, home, and family life, and to home economics
occupations.

Related Occupations. Activities that prepare students with requisite knowledge, understanding and skills for entry into home economics occupations.

Consumer and Homemaking. Activities that prepare students to acquire knowledge and develop understanding, attitudes
and skills relevant to personal, home and family life

Displaced Homemakers. Organized educational programs to prepare these persons for employment, special courses
preparing these individuals in how to seek employment, and the provision of placement services for the graduates of these programs.

Office Occupations Education. Activities organized for the purpose of preparing, upgrading, or retraining students for
selected office occupations.

Technical Education. Actlvities organized for the purpose of preparing students for job opportunities in a
specialized field of technology.

Trades and Industrial Education. Actlvities organized for

the purpose of preparing students for initial employment in

a wide range of trade and industrial occupations.

GEORGIA FINANCIAL

ACCOUNTING HANDBOOK

PAGE 6-49

PART I

Code
300 380
390 391
392 399 400 410 420
JULY 1, 1983

ACCOUNT CLASSIFICATION DESCRIPTIONS (CONTINUED)

Program

Vocational Education Programs (Continued).

Cooperative Education. Activities organized for persons who, by written cooperative arrangements between the school and employers, are employed, receive compensation, and
receive instruction, including required academic courses in related vocational occupational fields. Work periods and school attendance may be on alternate half days, full days, weeks, or other periods of time in fulfilling the cooperative program.

Other Vocational Education Programs. Other activities that provide students with the opportunity to develop the
knowledge, skills, and attitudes needed for employment in an occupational area.

Work Study. Furnished to a student who has been accepted or is enrolled full-time and is in good standing in an
approved vocational education program; is in need of the earnings to begin or continue his or her vocational
program; is at least 15 years of age and less than 21 years of age at the onset of employment; can maintain good standing in school while employed; is employed for no more
than 20 hours in any school week; is paid no more than the prevailing rate for similar duties; and is employed by a public or nonprofit private agency or institution.

Enerqv Education. Training for occupations in coal mining and coal mining technology, and solar energy.

Other. Other vocational education instructional programs.

Vocational Education Support Programs.

~ocal Administration. The costs of supervision and administration of vocational education programs.

B~search Programs. Programs for research in:

(1) Applied research and development in vocational

education.

(2) Experimental, developmental, and pilot programs and

projects designed to test the effectiveness of

research findings, including programs and projects to

overcome problems of sex bias and sex stereotyping.

(3) Improved curriculum materials in vocational education

and new curriculum materials for new and emerging job

fields.

GEORGIA FINANCIAL

ACCOUNTING HANDBOOK

PAGE 6-50

PART I

400 420
430

ACCOUNT CLASSIFICATION DESCRIPTIONS (CONTINUED)
Program
Y9cational Education Support Programs (Continued).
Research Programs (Continued). (4) Projects in the development of new careers and
occupations. (5) Dissemination of the results of the funded contracts
as well as the results of other research projects, including employment of persons to act as disseminators of these results on a local level.
~xemplary Programs. Includes: (l) Programs to develop high-quality vocational education
programs for urban centers with high concentrations of: (a) economically disadvantaged individuals, (b) unskilled individuals, and (c) unemployed individuals. (2) Programs to develop training opportunities for: (a) persons in sparsely populated rural areas, and (b) individuals migrating from farms to urban areas. (3) Programs of effective vocational education for persons of limited English proficiency. (4) Establishment of cooperative arrangements between public education and manpower agencies, designed to correlate vocational education opportunities with current and projected needs of the labor market. (5) Programs designed to broaden occupations aspirations and opportunities for youth who have academic, socioeconomic, or other handicaps. (6) Dissemination of the results of these projects, including employment of persons to act as disseminators, on a local level, of these results.

JULY 1, 1983

PAGE 6-51

GEORGIA FINANCIAL ACCOUNTING HANDBOOK
PART I

Code 400
440
450

ACCOUNT CLASSIFICATION DESCRIPTIONS (CONTINUED)

Program

Vocational Education Support Programs (Continued).

Curriculum Development. Includes: (1) Development and dissemination of vocational education
curriculum materials for new and changing occupational
fields. (2) Development and dissemination of vocational education
curriculum materials for persons with special needs.
(3) Development and dissemination of curriculum and guidance and testing materials designed to overcome sex bias and sex stereotyping in vocational education programs.
(4) Support services designed to enable teachers to meet the
needs of individuals enrolled in vocational education programs traditionally limited to members of the
opposite sex. (5) Development and dissemination of other curriculum
materials designed to improve the vocational education
programs.

Vocational Guidance and Counseling. Includes:

(1) Initiation, implementation, and improvement of

high-quality vocational guidance and counseling programs

and activities.

.

(2) Vocational counseling for children, youth, and adults,

leading to a greater understanding of educational and

vocational options.

(3) Provision of educational and job placement programs and

follow-up services for students in vocational education

and for occupations requiring a baccalaureate or higher

degree.

(4) Vocational guidance and counseling training designed to

acquaint guidance counselors with (a) the changing work

patterns of women, (b) ways of effectively overcoming

occupational sex stereotyping, and (c) ways of assisting

girls and women in selecting careers solely in their

occupational needs and interests, and to develop

improved career counseling materials that are free.

(5) Vocational and educational counseling for youth

offenders and adults in correctional institutions.

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GEORGIA FINANCIAL ACCOUNTING HANDBOOK
PART I

400 450
460
410
490 500

ACCOUNT CLASSIFICATION DESCRIPTIONS (CONTINUED)
Program
Vocational Education Support Programs (Continued).
Vocational Guidance and Counseling (Continued). (6) Vocational guidance and counseling for persons with
limited English proficiency. (1) Establishment of vocational resource centers to meet
the special needs of out-of-school individuals, including individuals seeking second careers, individuals entering the job market late in life, handicapped individuals, individuals from economically depressed communities or areas, and early retirees. (8) Leadership for vocational guidance and exploration programs at the local level.
Professional Development. Programs which improve the qualifications of persons serving or preparing to serve in vocational education programs. Such training programs can include exchange of vocational education staff with skilled workers in business, industry, and agriculture; training to provide vocational education to persons with special needs; provision of short-term or regular session institutes to train or retrain staff to teach new and emerging occupations areas; and the provision of stipends for training.
Programs to Overcome Sex Bias. Research projects on ways to overcome sex bias and sex stereotyping, the development of curriculum materials free of sex stereotyping, the development of criteria for use in determining whether curriculum materials are free from sex stereotyping, and training to acquaint guidance counselors, administrators, and teachers with methods of effectively overcoming sex bias and sex stereotyping, especially assisting persons in selecting careers according to their interests and occupational needs rather than according to stereotypes.
Other Vocational Education Support Programs. Vocational Education support programs not specified above.
Other Instructional Programs-Elementary/Secondary. Activities that provide grades K-12 students with learning experiences not included in the Program Codes 100-300, 600, and 100.

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GEORGIA FINANCIAL ACCOUNTING HANDBOOK
PART I

Code 500
510
520
590 600

ACCOUNT CLASSIFICATION DESCRIPTIONS (CONTINUED)
Program
Qther Instructional Programs-Elementary/Secondary (Continued).
School Sponsored Cocurricular Activities. School sponsored activities, under the guidance and supervision of LEA staff, designed to provide students such experiences as motivation, enjoyment, and improvement of skills. Cocurricular activities normally supplement the regular instructional program and include such activities as band, chorus, choir, speech and debate. Also included are student financed and managed activities, such as: Class of 19XX, Chess Club, Senior Prom, and Future Farmers of America. Athletics are coded to Program 520.
School Sponsored Athletics. School sponsored activities under the guidance and supervision of LEA staff, designed to provide opportunities to students to pursue various aspects of physical education. Athletics normally involves competition between schools, and frequently involves off-setting gate receipts or fees.
Other. Activities that provide students with learning experiences not included in the other program 500 codes.
Non-Public School Programs. Activities for students attending a school established by an agency other than the State, a subdivision of the State, or the Federal government, which usually is supported primarily by other than public funds. The services consist of such activities as those involved in providing instructional services, attendance and social work services, health services, and transportation services for non-public school students.

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GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART I

700
800 810 820 830

ACCOUNT CLASSIFICATION DESCRIPTIONS (CONTINUED)
Program
Adult/Continuing Education Programs. Activities designed to develop knowledge and skills to meet immediate and long range educational objectives of adults who, having completed or interrupted formal schooling, have accepted adult roles and responsibilities. Programs include activities to foster the development of fundamental tools of learning; prepare students for a postsecondary career; prepare students for postsecondary education programs; upgrade occupational competence; prepare students for a new or different career; develop skills and appreciations for special interests; or to enrich the aesthetic qualities of life. Adult basic education programs are included in this category.
Community Services Programs. Activities which are not directly related to the provision of educational services in an LEA. These include services such as community recreation programs, civic activities, public libraries, programs of custody and care of children, and community welfare activities provided by the LEA for the community as a whole or some segment of the community.
Community Recreation. Activities concerned with providing recreation for the community as a whole, or for some segment of the community. Included are such activities as organizing and supervising playgrounds, swimming pools, and other recreation programs for the community.
~ivic Services. Activities concerned with providing services to civic affairs or organizations. This program area includes services to parent-teacher association meetings, public forums, lectures, and civil defense planning.
Public Library Services. Activities pertaining to the operation of public libraries by an LEA, or the provision of library services to the general public through the school library. Included are such activities as budgeting, planning and augmenting the library's collection in relation to the community, and informing the community of public library resources and services.

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GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART I

Code 800
840
850
890 900
910 990 000

..f
ACCOUNT CLASSIFICATION DESCRIPTIONS (CONTINUED)
Program
Community Services Pro_grams (ContinueAl.
Custody and Child Care Services. Activities pertaining to the provision of programs for the custodial care of children in residential day schools, or child care centers which are not part of, or directly related to the instructional program, and where the attendance of the children is not included in the attendance figures for the LEA.
Welfare Activities. Activities pertaining to provision of personal needs of individuals who have been designated as needy by an appropriate governmental entity. These needs include stipends for school attendance, salaries paid to students for work performed whether for the LEA or for an outside concern, and for clothing, food, or other personal needs.
Other Community Services. Activities provided the community which cannot be classified under the other program 800 codes.
~nterprise Programs. Programs which are intended to be self-supporting. This program category would normally be used with the proprietary funds.
Food Services. Activities concerned with providing food service to students and staff.
Other Enterprise Programs.
Undistributed Charges. All charges which are not readily assignable directly to a program are classified here. For program costing purposes, the charges to functions in the 1000, 2000 and 3000 series and this account may be attributed indirectly to instructional, community service and enterprise programs. Charges to functions 4000 and 5000 and this program normally are not allocated to other programs. See another part of this handbook for a discussion of indirect cost allocation techniques.

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GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART I

ACCOUNT CLASSIFICATION DESCRIPTIONS (CONTINUED)

INSTRUCTIONAL ORGANIZATION

This dimension permits segregation of expenditures by organizational level. In the following definitions, grade span can be changed to age span when structuring a nongraded school or LEA.

Instructional Organization

10

Elementary. A school organization classified as

elementary by State and local practice and composed of

any span of grades from preprimary through seventh grade.

11

Pre-Kindergarten. A school organization composed

entirely of any span of ages below kindergarten. This

category is normally used for students identified as

needing special services.

12

Kindergarten. A school organization for children for the

year immediately preceeding the first grade.

13

~lementary Grades. A school organization composed of any

span of grades not above grade seven except

pre-kindergarten and kindergarten.

20

Middle/Junior High. A school organization composed of at

least three grades beginning with the next grade

following elementary and ending with the grade preceding

secondary.

21

Middle Grades. A school organization usually beginning

with grades five or six or their equivalent. Most middle

school organizations presume a four year high school to

follow the middle school.

22

Junior High Grades. A school organization composing any

span of grades normally beginning with grades six or

seven.

30

Secondary. A school organization composing any span of

grades beginning with the next grade following the

elementary of middle/junior high and ending with grade

twelve.

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GEORGIA FINANCIAL ACCOUNTING HANDBOOK
PART I

ACCOUNT CLASSIFICATION DESCRIPTIONS (CONTINUED)

Code

Instructional Organization

31

High School Grades. A school organization comprising any

span of grades beginning with the next grade following an

elementary or junior high school, if there is such a

school, and ending with grade 12. This includes 3-year and

4-year vocational and technical high schools separately

organized under the direction and management of an

administrator (such as a principal) for the primary purpose

of offering education and training in one or more

semiskilled, skilled, or technical occupations.

40

Post-Secondary. A school organization for adults and

out-of-school youth (16 years of age and older who are not

regularly enrolled in school) who have either completed,

interrupted, or have not begun their formal education or

for students attending an institution of higher education.

41

Adult/Continuing. A school organization for adults and

out-of-school youth (16 years of age and older who are not

regularly enrolled in school) who have either completed,

interrupted, or have not begun their formal education and

are pursuing skills or knowledge in other than regularly

prescribed courses. These include adult basic schools,

advanced adult schools, occupational schools, and those

schools which have as their purpose the upgrading of

occupational skills, retraining existing skills, pursuit of

special interests, or for enrichment.

42

Community/Junior College. An institution of higher

education which offers, usually, the first two years of

college instruction, which frequently grants an associate

degree, but does not grant a bachelor's degree. It is

either an independently organized institution (public or

non-public), an institution which is part of an LEA, or an

independently organized system of junior colleges. Junior

colleges offer college transfer courses and programs;

and/or vocational, technical, and semi-professional

occupational programs or general education programs at the

post-secondary instructional level; and may also offer

continuing education for adults as well as other community

services.

00

District-Wide. Assigned to any expenditure transaction

applicable to the entire LEA and not clearly assignable to

an instructional level.

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GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART I

ACCOUNT CLASSIFICATION DESCRIPTIONS (CONTINUED)

OPERATIONAL UNIT
This dimension has several common usages in LEA's: (1) to identify attendance centers, (2) as a budgetary unit or cost center designator, (3) as a means of separating costs by building structure, and (4) as a location code for payroll check distribution.

SUBJECT MATTER

The subject matter dimension describes a group of related subjects. This dimension is provided in order to permit the accumulation of the costs of
providing instruction in particular subject areas. The classifications used here are consistent with the first two digits of the subject matter classification in Federal Handbook VI.

The LEA may choose to add more categories to this list and/or to increase the size (number of digits) in the code to provide for greater detail of
classification.

Subject Matter

01

Agriculture. Comprised of the group of related courses

or units of subject matter which are organized for

carrying on learning experiences concerned with

preparation for or upgrading in occupations requiring

knowledge and skills in agricultural subjects. The

functions of agricultural production, agricultural

supplies, agricultural mechanization, agricultural

products (processing), ornamental horticulture, forestry,

agricultural resources, and the services related thereto,

are emphasized in the instruction designed to provide

opportunities for students to prepare for or improve

their competencies in agricultural occupations. An

agricultural occupation may include one or any

combination of these functions.

02

Art. Comprised of the organized body of subject matter

or related courses involving primarily visual, tactile,

and kinesthetic expression. Included in art instruction

are the two-dimensional forms such as drawing, painting,

print-making; the three-dimensional forms such as

sculpture or pottery; other spatial concepts such as

architecture and design for the performing arts; and the

history and theory of art. Emphasis is placed upon the

esthetic and creative factors of visual forms.

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GEORGIA FINANCIAL ACCOUNTING HANDBOOK
PART I

ACCOUNT CLASSIFICATION DESCRIPTIONS (CONTINUED)

Code

Subject Matter

03

Business. Includes the body of related subject matter, or

related courses, and planned learning experiences which are

designed to develop in students the attitudes, knowledge,

skills, and understanding concerned with business principles

and practices having applications for personal use and/or

activities in the business world. Business also includes a

wide variety of aspects of general education, e.g., subject

matter from other subject areas such as English (language

arts), social science/social studies, and mathematics.

04

Distributive Education. Includes various combinations of

subject matter and learning experiences related to the

performance of activities that direct the flow of goods and

services, including their appropriate utilization, from the

producer to the consumer or user. These activities include

selling, and such sales-supporting functions as buying,

transporting, storing, promoting, financing, marketing

research and management.

05

English Language Arts. Comprised of the body of related

subject matter, or the body of related courses, organized for

carrying on learning experiences concerned with developing

(1) an understanding of the language system;

(2) proficiency and control in the use of the English

language; (3) appreciation of a variety of literary forms;

(4) understanding and appreciation of various aspects of past

and present cultures as expressed in literature; and

(5) interests which will motivate lifelong learning.

06

Foreign Languages. This body of subject matter is comprised

of a variety of foreign languages, including English as a

foreign language. Classified under this heading are the

various classical and modern foreign languages.

JULY 1, 1983

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GEORGIA FINANCIAL ACCOUNTING HANDBOOK
PARl I

ACCOUNT CLASSIFICATION DESCRIPTIONS (CONTINUED)

~ubject Matter

07

Health Occupations Education. Comprises the body of

related subject matter, or the body of related courses and

planned experiences designed to impart knowledge and

develop understanding and skill required to support the

health professions. Instruction is organized to prepare

students for occupational objectives concerned with

assisting qualified personnel in providing diagnostic,

therapeutic, preventive, restorative, and rehabilitative

services to people, including understanding and skills

essential to provide care and health services to patients.

08

Health and Safety in Daily Living, Physical Education, and

Recreation. The body of related sUbject matter and

activities in health and safety in daily living, physical

education, and recreation organized for carrying on

learning experiences concerned with developing: (l)

knowledge, attitudes, appreciation, and conduct essential

to individual and group health; (2) awareness of, concern

for, and knowledge, skills and judgment necessary for

practicing and promoting personal and public safety in the

home, at school, on the job, and in traffic; and (3)

physical and mental growth and fitness by means of

activities designed to improve the muscles, motor skills,

attitudes and habits of conduct of individuals and groups.

09

Home Economics. Comprises the group of related courses or

units of instruction organized for purposes of enabling

students to acquire knowledge and develop understanding,

attitudes, and skills relevant to: (1) personal, home, and

family life, and (2) occupational preparation using the

knowledge and skills of home economics. The subject matter

of home economics includes, in addition to that which is

unique to the area, concepts drawn from the natural"and

social sciences and the humanities.

10

Industrial Arts. Includes the body of related subject

matter, or related courses, organized for the development

of understanding about the technical, consumer,

occupational, recreational, organizational, managerial,

social, historical, and cultural aspects of industry and

technology. Learning experiences involve activities such

as experimenting, designing, constructing, evaluating, and

using tools, machines, materials, and processes which

provide opportunities for creativity and problem solving.

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GEORGIA FINANCIAL ACCOUNTING HANDBOOK
PART I

Code
11
12 13
14
15

ACCOUNT CLASSIFICATION DESCRIPTIONS (CONTINUED)
Subject Matter
Mathematics. Comprise~ the body of related subject matter, or the body of related courses, organized for carrying on learning experiences concerned with the science of relations existing between quantities (magnitude) and operations and the science of methods used for deducing from other quantities, known or supposed, the quantities sought.
Music. Includes the fine art that utilizes sounds in time in a meaningful and organized manner. Subject matter and activities in music are designed to impart the skills and knowledge necessary for the understanding, appreciation, creation, performance and enjoyment of music.
Natural Sciences. Includes the body of related subject matter, or the body of related courses, organized for carrying on learning experiences concerned with knowledge of the physical and biological world, and of the processes of discovering and validating this knowledge.
Office Occupations. Includes the body of subject matter, or combinations of courses and practical experience, which is organized into programs of instruction to provide opportunities for students to prepare for and achieve career objectives in selected office occupations. In the instructional process various aspects of subject matter frequently are drawn from other subject matter areas. Learning experiences are designed to lead to employment and/or advancement of individuals in occupations in public or private enterprises or organizations related to the facilitating function of the office. "Facilitating functions", as used here refers to the expediting role played by office occupations as the connecting link between the production and distribution activities of an organization. Included is a variety of activities, such as recording and retrieval of data, supervision and coordination of office activities, internal and external communications and the reporting of information.
Social Sciences. Comprised of interrelated subject matter organized to impart knowledge, develop skills, and identify goals concerning elements and institutions of human society in the disciplines of history, economics, political science, sociology, anthropology, psychology, geography, and philosophy.

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GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART I

ACCOUNT CLASSIFICATION DESCRIPTIONS (CONTINUED)

Subject Matter

16

Technical Education. Concerned with that body of knowledge

organized in a planned sequence of classroom and laboratory

experiences, usually at the post-secondary level, to

prepare students for a cluster of job opportunities in a

specialized field of technology. The program of

instruction normally includes the study of the underlying

sciences and supporting mathematics inherent in a

technology, as well as methods, skills, materials, and

processes commonly used and services performed in the

technology. A planned sequence of study and extensive

knowledge in a field of specialization is required in

technical education, including competency in the basic

communication skills and related general education.

Technical education prepares for the occupational area

between the skilled craftsman and the professional person

such as the physician, the engineer, and the scientist.

17

Trades and Industrial Occupations. Comprises the branch of

vocational education which is concerned with preparing

persons for initial employment, or for upgrading or

retraining workers in a wide range of trade and industrial

occupations. Such occupations are skilled or semiskilled

and are concerned with layout designing, producing,

processing, assembling, testing, maintaining, servicing, or

repairing any product or commodity. Instruction is

provided: (1) in basic manipulative skills, safety

jUdgement, and related occupational information in

mathematics, drafting, and science required to perform

successfully in the occupation, and (2) through a

combination of shop or laboratory experiences simulating

those found in industry and classroom learning. Included

is instruction for apprentices in apprenticible occupations

or for journeymen already engaged in a trade or industrial

occupation. Also included is training for service and

certain semiprofessional occupations considered to be trade

and industrial in nature.

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PAGE 6-63

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART I

Code 18 19 20
21
22

ACCOUNT CLASSIFICATION DESCRIPTIONS (CONTINUED)
Subject Mat't:er
General Elementary/Secondary Education. Refers to instruction which takes place in a self-contained class. Learning experiences are concerned with the knowledge, skills, appreciations, attitudes and behavioral characteristics considered to be needed by all students in terms of the broad educational outcomes which should be achieved by all students to the limits of their capacities during the elementary and secondary school years or grades.
Differentialized Curriculum for Handicapped Students. Refers to instruction for those students whose handicaps are of such nature and degree as to interfere with intellectual development and learning under regular class methods and will require differentialized curriculum for some part of, and frequently for all of, their education.
Cocurricular Activities. Comprised of the group of school sponsored activities under the guidance or supervision of qualified adults designed to provide opportunities for students to participate in such experiences on an individual basis, in small groups, or in large groups - at school events, public events, or a combination of these for purposes such as motivation, enjoyment, and improvement of skills. In practice, participation usually is not required and credit is not given. When participation is required or credit is given the activity is considered to be a course.
Safety and Driver Education. The subject matter and related activities in safety and driver education are organized for carrying on learning experiences concerned with developing in the learner the ability to respond appropriately and efficiently in the operation of a motor vehicle, and as a pedestrian in traffic. Subject matter and activities in safety education are primarily concerned with enhancing personal characteristics and values involved in preventing accidents and saving lives.
Junior ROTC. Comprised of a body of subject matter, or combinations of courses and practical experience, organized into programs of instruction to provide opportunities for students to prepare for and achieve career objectives in selected branches of the military service. In the instructional process various aspects of subject matter frequently are drawn from other subject matter areas.

JULY 1, 1983

PAGE 6-64

GEORGIA FINANCIAL ACCOUNTING HANDBOOK
PART I

ACCOUNT CLASSIFICATION DESCRIPTIONS (CONTINUED)

JOB CLASSIFICATION

This dimension enables LEA's to break down expenditures for salaries and fringe benefits by the employee's job classification. (It should not be used
with object codes 300-900). There are at least three ways in which this dimension is used in school accounting: (1) to classify payroll costs for personnel purposes in accordance with the classifications contained in Federal Handbook IV-R, (2) to separate certified and non-certified salaries and
benefits and (3) to accumulate payroll costs by bargaining unit for purposes of labor negotiations. The descriptors for personnel purposes are described below:

Job Classification

1

Official/Administrative. A grouping of assignments

comprising the various skill levels required to perform

management activities; such as developing broad policies

through direction of staff members at all levels of the LEA.

Those activities performed directly for policymakers are also

included here. The Official/Administrative classification

does not preclude Professional-Educational or Professional-

Other status. This classification normally includes the

district-wide administrators and Board of Education members

and Board of Education appointed officials.

2

Professional-Educational. A grouping of assignments

requiring a high degree of knowledge and skills acquired

through at least a baccalaureate degree (or its equivalent

obtained through special study and/or experience), including

skills in the fields of educational psychology. Included are

curriculum specialists, counselors, library/media

specialists, remedial specialists and teachers. Teachers'

aides are classified under 4 - Technical.

3

Professional-Other. A grouping of assignments requlrlng a

high degree of knowledge and skills acquired through at least

a baccalaureate degree (or its equivalent obtained through

special study and/or experience), but not requiring skills in

the field of education. This classification normally

includes nurses, social workers, psychologist, architects,

lawyers, accountants, physicians and therapists, among others.

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PAGE &-&5

GEORGIA FINANCIAL ACCOUNTING HANDBOOK
PART I

Code
4
5
6
7 8
9

ACCOUNT CLASSIFICATION DESCRIPTIONS (CONTINUEDJ
Job Classification
Technical. A grouping of assignments requiring a combination of basic scientific knowledge and manual skills which can be obtained through approximately 2 years of post-high school education such as is offered in junior/ community colleges and technical schools, or through equivalent special study and/or on-the-job training. This classification normally includes interns, aides, computer operators, practical nurses and the like.
Office/Clerical. A grouping of assignments to perform the activities of preparing, transferring, transcribing, systematlzing, or preserving communications, records, and transactions, regardless of the level of skills required.
Crafts and Trades. A grouping of manual assignments requiring a relatively high skill level (usually as well as requiring considerable judgment and a thorough and comprehensive knowledge of the processes involved in the work). This classification normally includes carpenters, electricians, painters, plumbers and mechanics.
Operative. A grouping of manual assignments requiring an intermediate skill level (which can be mastered in a few weeks through limited training) necessary to perform machine operating activities. This classification normally includes bus or truck drivers.
Laborer". A grouping of manual labor assignments which generally require no special training. All laborers who perform lifting, digging, mixing, loading, and pulling operations would be classified in this general job classification. Under the laborer classification, the one fairly common specific activity assignment associated with an LEA is groundskeeping; other activity assignments may be added by the local administrator if needed by a particular LEA.
Service Work. A grouping of assignments, regardless of level of difficulty, which relate to both protective and non-protective supportive services. Under the Service Work classification, the following activity assignments are the most common in the LEA; custodians, warehousemen and food service employees. The list may be expended as necessary at the discretion of the local administrator.

JULY 1, 1983

PAGE 6-66

GEORGIA FINANCIAL ACCOUNTING HANDBOOK
PART I

ACCOUNT CLASSIFICATION DESCRIPTIONS (CONTINUED)

SPECIAL COST CENTER

Finally, it is recognized that LEA's utilize many other methods of classifying expenditures for particular purposes. None of these methods is used with enough regularity for inclusion in the manual but when one is used, it is important.

DESCRIPTIONS OF BALANCE SHEET ACCOUNTS

ASSETS AND OTHER DEBITS

Assets and other debits include what is owned and other items not owned as of the date of the balance sheet but expected to become fully owned at some
future date as well as other budgeting and offsetting accounts which normally have debit balances.

Code

Description

CURRENT ASSETS. Cash or anything that can be readily converted into cash.

101

Cash in Bank. All funds on deposit with a bank or

savings and loan institution.

102

Cash on Hand. Currency, coins, checks, postal and

express money orders, and bankers' drafts on hand.

103

Petty Cash. A sum of money set aside for the purpose of

paying small obligations for which the issuance of a

formal voucher and check would be too expensive and

time-consuming.

104

Change Cash. A sum of money set aside for the purpose of

providing change.

105

Cash With Fiscal Agents. Deposits with fiscal agents,

such as commercial banks, for the payment of matured

bonds and interest.

111

Investments. Securities and real estate held for the

production of income in the form of interest, dividends,

rentals, or lease payments. The account does not include

fixed assets used in LEA operations. Separate accounts

for each category of investments may be maintained.

112 JULY 1, 1983

Unamortized Premiums on Investments. The excess of the

amount paid for securities over the face value which has

not yet been amortized. Use of this account is

restricted to long-term investments.

GEORGIA FINANCIAL

ACCOUNTING HANDBOOK

PAGE 6-67

PART I

AC~OUNT CLASSIFICATION DESCRIPTIONS (CONTLNUED)

Code

Description

CURRENT ASSETS (CONTINUED).

113

Unamortized Discounts on Investments (Credits). The excess

of the face value of securities over the amount paid for them

which has not yet been written off. Use of this account is

restricted to long-term investments.

114

Interest Receivable on Investments. The amount of interest

receivable on investments, excluding interest purchased.

Interest purchased should be shown in a separate account

(115).

115

Accrued Interest on Investments Purchased. Interest accrued

on investments between the last interest payment date and

date of purchase. The account is carried as an asset until

the first interest payment date after date of purchase. Upon

receipt and deposit of the cash, an entry is made debiting

the account Cash in Bank, and crediting the Accrued Interest

on Investments Purchased account for the amount of interest

purchased and an Interest Earned revenue account (1510) for

the balance.

121

Taxes Receivable. The uncollected portion of taxes which an

LEA or governmental unit has levied and which has become due,

including any interest or penalties which may be accrued.

Separate accounts may be maintained on the basis of tax roll

year and/or current and delinquent taxes.

122

Estimated Uncollectible Taxes (Credits). A provision for

that portion of taxes receivable which it is estimated will

not be collected. The aCCQunt is shown on the balance sheet

as a deduction from the Taxes Receivable account in order to

arrive at the net taxes receivable. Separate accounts may be

maintained on the basis of tax roll year and/or delinquent

taxes.

132

Interfund Accounts Receivable. An asset account used to

indicate amounts owed to a particular fund by another fund in

the same LEA.

141

Intergovernmental Accounts Receivable. Amounts due to the

reporting governmental unit from another governmental unit.

These amounts may represent grants-in-aid, shared taxes,

taxes collected for the reporting unit by another unit,

loans, and charges for services rendered by the reporting

unit for another government.

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PAGE 6-68

GEORGIA FINANCIAL ACCOUNTING HANDBOOK
PART I

ACCOUNT CLASSIFICATION DESCRIPTIONS (CONTINUED)

Description

CURRENT ASSETS (CONTINUED)

151

h9ans Receivable. Amounts which have been loaned to

persons or organizations, including notes taken as

security for such loans, where permitted by statutory

authority.

152

Estimated Uncollectible Loans (Credits). A provision for

that portion of loans receivable which is estimated will

not be collected. The account is shown on the balance

sheet as a deduction from the Other Loans Receivable

account.

153

Other Accounts Receivable. Amounts owing on open account

from private persons, firms or corporations for goods and

services furnished by an LEA (but not including amounts

due from other funds or from other governmental units).

154

Estimated Uncollectible Accounts Receivable (Credits). A

provision for the portion of accounts receivable which is

estimated will not be collected. The account is shown on

the balance sheet as a deduction from the Other Accounts

Receivable account.

161

Bond Proceeds Receivable. An account used to designate

the amount receivable upon sale of bonds.

111

Inventories for Consumption. The cost of supplies and

equipment on hand not yet distributed to requisitioning

units.

172

Inventories for Resale. The value of goods held by an

LEA for resale rather than for use in its own operations.

181

Prepaid Expenses. Expenses paid for benefits not yet

recorded. Prepaid expenses differ from deferred charges

in that they are spread over a shorter period of time

than deferred charges and are regularly recurring costs

of operation. Examples of prepaid expenses are prepaid

rent, prepaid interest, and unexpired insurance

premiums. An example of a deferred charge is unamortized

discounts on bonds sold.

191

Deposits. Funds deposited by the LEA as prerequisite to

receiving services and/or goods.

199 JULY 1, 1983

Other Current Assets. Current assets not provided for

elsewhere.

GEORGIA FINANCIAL

ACCOUNTING HANDBOOK

PAGE 6-69

PART I

ACCOUNT CLASSIFICATION DESCRIPTIONS (CONTINUED)

Code

Description

FIXED ASSETS. Those assets which the LEA intends to hold or continue in use over a long period of time.

211

Sites. A fixed asset account which reflects the

acquisition value of land owned by an LEA. If land is

purchased, this account includes the purchase price and

costs such as legal fees, filling and excavation costs,

and other associated improvement costs which are incurred

to put the land in condition for its intended use. If

land is acquired by gift, the account reflects its

. appraised value at time of acquisition.

221

Site Improvements. A fixed asset account which reflects

the acquisition value of permanent improvements, other

than buildings, which add value to land. Examples of

such improvements are fences, retaining walls, sidewalks,

pavements, gutters, tunnels and bridges. If the

improvements are purchased or constructed, this account

contains the purchase or contract price. If improvements

are obtained by gift, it reflects the appraised value at

time of acquisition.

222

Accumulated Depreciation on Site Improvements (Credits).

Accumulated amounts for depreciation of land

improvements. The recording of depreciation is optional

in the general fixed assets account group.

231

Buildings and Building Improvements. A fixed asset

account which reflects the acquisition value of permanent

structures used to house persons and property owned by

the LEA. If buildings are pu~chased or constructed, this

account includes the purchase or contract price of all

permanent buildings and the fixtures attached to and

forming a permanent part of such buildings. This account

includes all building improvements. If buildings are

acquired by gift, the account reflects their appraised

value at time of acquisition.

232

~ccumulated Depreciation on Buildings and Building

Improvements (Credits). Accumulated amounts for

depreciation of buildings and building improvements. The

recording of depreciation is optional in the general

fixed assets account group.

JULY 1, 1983

PAGE 6-70

GEORGIA FINANCIAL ACCOUNTING HANDBOOK
PART I

ACCOUNT CLASSIFICATION DESCRIPTIONS (PRIOR TO 7/1/86) (CONTINUED)

Code

Descr1pt10n

FIXED ASSETS (CONTINUED).

241

Hach1nery and Equ1pment. Tang1ble property of a more or

less permanent nature, other than land, bU11d1ngs, or

1mprovements thereto, wh1ch 1s useful 1n carry1ng on

operat10ns. Examples are mach1nery, tools, trucks, cars,

buses, furn1ture and furn1sh1ngs. Append1x B prov1des

cr1ter1a to d1st1ngu1sh whether a purchase 1s a supply or a

p1ece of mach1nery or equ1pment.

242

Accumulated Deprec1at1on on Hach1nery and Equ1pment

(Cred1ts). Accumulated amounts for deprec1at1on of

mach1nery and equ1pment. The record1ng of deprec1at1on 1s

opt1onal 1n the general f1xed assets account group and

requ1red 1n the propr1etary funds.

251

Construct10n 1n Progress. The cost of construct10n work

undertaken but not yet completed.

BUDGETING ACCOUNTS AND OTHER DEBITS. Budgeted and actual amounts for revenues as well as offsett1ng accounts wh1ch normally have deb1t balances.

301

Est1mated Revenues (Budget Accounts). The amount of

revenues est1mated to be recorded or to become

rece1vable dur1ng the f1scal per1od. At the end of the

f1scal per10d, the account 1s closed out and does not

appear 1n the balance sheet. Th1s account would appear

1n 1nter1m f1nanc1al statements.

302

Revenues. The total of all revenues real1zed dur1ng a

per1od. Th1s represents the 1ncrease 1n ownersh1p

equ1ty dur1ng a des1gnated per10d of t1me. The account

appears only 1n a balance sheet prepared dur1ng the

f1scal per10d. At the end of the f1scal per10d, the

account 1s closed out and does not appear 1n the balance

sheet.

303

Amount Ava11able 1n Debt Serv1ce Funds. An account 1n

the General Long-Term Debt Account Group wh1ch

des1gnates the amount of fund balance ava11able 1n the

Debt Serv1ce Fund for the ret1rement of long-term debt.

304

Amount to be Prov1ded for Ret1rement of General

Long-Term Debt. An account 1n the General Long-Term

Debt Account Group wh1ch des1gnates the amount to be

prov1ded from taxes or other revenue to ret1re long-term

debt.

HAY 9, 1985, REVISION JULY 1, 1983, ISSUE

PAGE 6-71

GEORGIA FINANCIAL
ACCOUNTING HANDBOOK PART I

ACCOUNT CLASSIFICATION DESCRIPTIONS (PRIOR TO 7/1/86) (CONTINUED)

LIABITITIES, RESERVES, AND FUND BALANCES

L1ab111t1es, reserves and fund balances are LEA debt plus 1tems wh1ch are not
debts but wh1ch may become debts at some future t1me, as well as other bUdget1ng accounts wh1ch normally appear only on the 1nter1m f1nanc1al statements.

Current L1ab111t1es. Those debts the LEA expects to pay w1th1n a short per10d

of t1me, usually w1th1n a year or less.

Code

Descr1pt10n

401

Interfund Loans Payable. A 11ab111ty account used to

record a debt owed by one fund to another fund 1n the same

governmental un1t.

402

Interfund Accounts Payable. A 11ab111ty account used to

1nd1cate amounts owed by a part1cu1ar fund to another fund

1n the same LEA.

411

Intergovernmental Accounts Payable. Amounts owed by the

reported LEA to another governmental un1t.

421

Accounts Payable. L1ab111t1es on open account ow1ng to

pr1vate persons, f1rms, or corporat10ns for goods and

serv1ces recorded by an LEA (but not 1nc1ud1ng amounts due

to other funds of the same LEA or to other governmental

un1ts).

422

Judgments Payable. Amounts due to be pa1d by an LEA as the

result of court dec1s10ns, 1nclud1ng condemnat10n awards 1n

payment for pr1vate property taken for pUb11c use.

423

Warrants Payable. Amounts due to des1gnated payees 1n the

form of a wr1tten order drawn by the LEA d1rect1ng the LEA

treasurer to pay a spec1f1c amount.

431

Contracts Payable. Amounts due on contracts for assets,

goods, and serv1ces recorded by an LEA.

432

Construct10n Contracts Payab1e-Reta1ned Percentage.

L1ab111t1es on account of construCt10n contracts for that

port10n of the work wh1ch has been completed but on wh1ch

part of the 11ab111ty has not been pa1d pend1ng f1nal

1nspect10n, or the lapse of the spec1f1ed t1me per10d or

both. The unpa1d amount 1s usually a stated percentage of

the contract pr1ce.

MAY 9, 1985, REVISION JULY 1, 1983, ISSUE

PAGE 6-72

GEORGIA FINANCIAL ACCOUNTING HANDBOOK
PART I

ACCOUNT CLASSIFICATION DESCRIPTIONS {CONTINUED}

DESCRIPTION

LIABITITIES, RESERVES, AND FUND BALANCES (CONTINUED).

Current Liabilities (Continued).

433

Construction Contracts Payable. Amounts due by an LEA on

contracts for construction of buildings, structures, and

other improvements.

441

Matured Bonds Payable. Bonds which have reached or passed

their maturity date but which remain unpaid.

442

Bonds Payable-Current Liability. Bonds which have not

reached or passed their maturity date but are due within

one year or less.

443

Unamortized Premiums On Bonds Sold. An account which

represents that portion of the excess of bond proceeds over

par value and which remains to be amortized over the

remaining life of such bonds.

451

Loans Payable. Short-term obligations representing amounts

borrowed for short periods of time usually evidenced by

notes payable or warrants payable.

455

Interest Payble. Interest due within one year.

461

Accrued Salaries and Benefits. Salary and fringe benefits

costs incurred during the current accounting period which

are not payable until a subsequent accounting period.

471

Payroll Deductions and Withholdings. Amounts deducted from

employees' salaries for withholding taxes and other

purposes.

481

Deferred Revenues. A liability account which represents

revenues collected before they become due.

491

Deposits Payable. Liability for deposits received as a

prerequisite to providing or receiving services and/or

goods.

492

Due To Fiscal Agents. Amounts due to fiscal agents, such

as commercial banks, for servicing and LEA's matured

indebtedness.

499 JULY 1, 1983

Other Current Liabilities. provided for elsewhere.
PAGE 6-73

Other current liabilities not
GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART I

ACCOUNT CLASSIFICATION DESCRIPTIONS lCONTINUEDl.

LONG-TERM LIABILITIES. Debt with a maturity of more than one year after the date of issuance.

Code

Description

511

Bonds Payable (long-Term Liabili1Yl. Bonds which have not

reached or passed their maturity date and which are not due

within one year.

521

~otes Payable. An unconditional written promise signed by

the maker to pay a certain sum of money one year or more

after the date of issuance.

531

Lease Obligations. Amounts remaining to be paid on lease

or lease-purchase agreements.

541

Unfunded Pension Liabilities. The amount of the actuarial

deficiency on a locally-operated pension plan to be

contributed by the LEA on behalf of present employees.

590

Other Long-Term Liabilities. Other long-term liabilities

not provided for elsewhere.

BUDGET ACCOUNTS. These categories represent accounts which reflect budgeted and actual amounts related to expenditures and encumbrances.

601

Appropriations. This account records authorizations

granted by the school board or legislative body to make

expenditures for specific purposes. This account appears

in a balance sheet prepared during the fiscal period. It

is closed out and does not appear in the balance sheet

prepared at the close of the fiscal period.

602

Expenditures. This account appears in balance sheets

prepared during the fiscal period and designates the total

of expenditures charged against appropriations during such

period. The account is shown in each balance sheet as a

deduction from the Appropriations account to arrive at the

unexpended balances of total appropriations.

603

Encumbrances. This account designates obligations in the

form of purchase orders, contracts, or salary commitments

which are chargeable to an appropriation and for which part

of the appropriation is reserved. In an interim balance

sheet, encumbrances are deducted along with the

expenditures from the appropriations account to arrive at

the unencumbered balance.

JULY 1, 1983

PAGE 6-74

GEORGIA FINANCIAL ACCOUNTING HANDBOOK
PART I

ACCOUNT CLASSIFICATION DESCRIPTIONS (CONTINUED)

FUND EQUITY. These are accounts which show the excess of a fund over its liabilities. Portions of that balance may be reserved or designated for future use.

Description

711

Investment in General Fixed Assets. An account in the

General Fixed Assets Account Group which represents the LEA's

equity in general fixed assets. The balance of this account

is normally detailed according to the source of funds which

financed the asset acquisition.

721

Contributed Captial. An equity account in the proprietary

funds which shows the amount of fund capital contributed by

the governmental unit from general government revenue and

resources. Annual subsidies to cover operating deficits are

not recorded here. These amounts are recorded as other

sources (interfund transfers) and closed to the unreserved

retained earnings account (740).

730

Reserve for ----------(Special Purposes) - Retained

(~rnings. The accumulated earnings of the proprietary funds

which have been retained in the fund and which are reserved

for a specific purpose. One example would be funds reserved

for the future purchase of equipment.

740

Unreserved Retained Earnings. The accumulated earnings of

the proprietary funds which have been retained in the fund

and which are not reserved for any specific purpose.

751

Reserve For Inventories. A reserve which represents the

separation of a portion of a fund balance to indicate that

assets equal to the amount of the reserve are tied up in

inventories and are, therefore, not available for

appropriations. The use of this account is optional.

752

Reserve For Prepaid Expenses. A reserve which represents the

separation of a portion of a fund balance to indicate that

assets equal to the amount of the reserve are tied up in

prepaid expenses and are, therefore, not available for

appropriation. The use of this account is optional.

753

Reserve For Encumbraces. A reserve representing the

separation of a portion of a fund balance to provide for

unliquidated encumbrances. Separate accounts may be

maintained for current encumbrances and prior year

encumbrances.

JULY 1, 1983

PAGE 1)-75

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART I

ACCOUNT CLASSIFICATION DESCRIPTIONS (CONTINUED)

Code

Description

FUND EQUITY (CONTINUED).

761

Reserve For Sick And Personal Leave. A reserve for sick and

personnel leave which represents the separation of a portion

of a fund balance to indicate that assets equal to the amount

of the reserve are not available for general appropriation.

762

Reserve For Instructional Materials And Media. A reserve for

instructional materials and media which represents the

separation of a portion of a fund balance to indicate that

assets equal to the amount of the reserve are not available

for general appropriation.

763

Reserve For Instructional Equipment. A reserve for

instructional equipment which represents the separation of a

portion of a fund balance to indicate that assets equal to

the amount of the reserve are not available for general

appropriation.

764

Reserve For Compensatory Education. A reserve for

compensatory education which represents the separation of a

portion of a fund balance to indicate that assets equal to

the amount of the reserve are not available for general

appropriation.

765

Reserve For Post Secondary Vocational. A reserve for post

seconday vocational which represents the separation of a

portion of a fund balance to indicate that assets equal to

the amount of the reserve are not available for general

appropriation.

766

Reserve For Psychoeducational Center. A reserve for

Psychoeducational Center which represents the separation of a

portion of a fund balance to indicate that assets equal to

the amount of the reserve are not available for general

appropriation.

767

Reserve For Bus Replacement. A reserve for bus replacement

which represents the separation of a portion of a fund

balance to indicate that assets equal to the amount of the

reserve are not available for general appropriation.

768

Reserve For Debt Service. A reserve for debt service which

represents the separation of a portion of a fund balance to

indicate that assets equal to the amount of the reserve are

not available for general appropriation.

JULY 1, 1983

PAGE 6-76

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART I

ACCOUNT CLASSIFICATION DESCRIPTIONS (CONTINUED)

Description

FUND EQUITY (CONTINUED).

769

Reserve For Other State Purposes. A reserve for other

state purposes which represents the separation of a portion

of a fund balance to indicate that assets equal to the

amount of the reserve are not available for general

appropriation.

770

Reserve For Federal Projects. A reserve for Federal

projects which represents the separation of a portion of a

fund balance to indicate that assets equal to the amount of

the reserve are not available for general appropriation.

771

Reserve For Regional Assessment Center. A reserve for

regional assesment center Which represents the separation

of a portion of a fund balance to indicate that assets

equal to the amount of the reserve are not available for

general appropriation.

791

Reserve For Unemployment Compensation Claims. A portion of

a fund balance voluntarily separated by action of a local

board of education for unemployment compensation claims.

792

Reserve For Insurance Claims. A portion of a fund balance

voluntarily separated by action of a local board of

education for insurance claims.

798

Reserved Fund Balance (Other). A portion of a fund balance

voluntarily separated by action of a local board of

education for any purpose not covered elsewhere.

799

Unreserved Fund Balance. The excess of the assets of a

fund over the liabilities and reserves.

JULY 1, 1983

PAGE 6-77

GEORGIA FINANCIAL ACCOUNTING HANDBOOK
PART I

I I I I I I
I I I I I I
I I I I I I
I I I I I I
I I I

CHAPTER 1
REVENUE AND EXPENDITURE ACCRUALS
1. The Governmental Accounting Standards Board (GASB) was established in April 1984 as a successor to the National Council on Governmental Accounting (NCGA). In its Statement 1, July 1984, the GASB recognized, and continued in force, the Statements and Interpretations which were previously issued by the NCGA, including NCGA Statement 1, March 1919. GASB Statement 1 refers to NCGA Statement 1 as follows: "Through widespread acceptance, NCGA Statement 1 and subsequent NCGA pronouncements have been acknowledged as the primary authoritative source of generally accepted accounting principles for state and local governments."
2. Concerning the accrual and modified accrual bases of accounting, NCGA Statement 1 says,
"Governmental fund revenues and expenditures should be recognized on the modified accrual basis. Revenues should be recognized in the accounting period in which they become available and measurable. Expenditures should be recognized in the period in which the fund liability is incurred, if measurable, except for unmatured interest on general long-term debt and on special assessment indebtedness secured by interest-bearing special assessment levies, which should be recognized when due."
This chapter provides detailed information on items that should or should not be accrued.
3. In order for a revenue to be accrued, it must meet two criteria:
a. It must be measurable. Measurable means that either the precise amount is known because the transaction has been completed, or the amount can be determined or reasonably estimated from other available information.
b. It must be available. Available means it must be collectible in the current period or soon enough thereafter to pay liabilities of the current period. Taxes can be recognized as available and measurable when received at the board's tax collecting agency. Interest can be recognized as available and measurable when it is due. All funds due from the State should be accrued except for APEG Deferred Salaries And School Food Services State Grants under HB 182.
For proprietary funds (Enterprise and Internal Service Funds), revenue should be recognized in the accounting period in which it is earned and becomes measurable.

MAY 8, 1985, ISSUE

PAGE 1-1

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART I

REVENUE AND EXPENDITURE ACCRUALS (CONTINUED)

4. An expenditure and related liability can not be recognized until a legally binding obligation has been incurred. Obligations are commitments for the acquisition of goods, property or services. The following table
illustrates when an obligation is incurred for various types of transactions.

If the obligation is for ..

The obligation is made.

Personal Services (Salaries, etc.)

When the services are performed (See note a).

Travel reimbursements

When the travel has been performed.

Contracts

When the contract has been signed by both parties and some work has been performed.

Rental of facilities

When the rented facilities are used.

Purchases of equipment or other material

When the equipment or material has
been delivered and accepted (the time at which title passes).

Public utility services

When the services are rendered. (See note b).

Interest expense

When the interest is due. (See note c).

MAY 8, 1985, ISSUE

PAGE 7-2

GEORGIA FINANCIAL
ACCOUNTING HANDBOOK PART I

REVENUE AND EXPENDITURE ACCRUALS (CONTINUED)
4. (CONTINUED)
NOTES:
a. All salaries paid from federal funds shall be considered an obligation in the period the salary is earned, the expense for which should be accrued at year end. There are four (4) State programs paid through APEG where all funds due are paid during the current fiscal year. These programs are Compensatory Education, Kindergarten Aides, Section 10 Aides, and Extended Day Aides. If salaries for these programs are deferred at year end, the expense should be accrued. State salaries or other expenses which are paid from the appropriation for the next fiscal year (i.e. deferred APEG summer salaries and School Food Services Grants under HB 782) are not considered an obligation until due, and are not required to be accrued at year-end.
b. If the billing period for public utility services covers parts of two months, and the bill is received after June 30, but prior to closing the books, it will be necessary to accrue the amount of the bill applicable to the fiscal year being closed. Proration of utility invoices is necessary only at year end. In other months the expenses may be charged to the month in which the invoice is received.
c. Interest expense shall be considered as an obligation at the time the interest is due, except that interest payable must be calculated and recorded (accrued) at year end.
5. Outstanding purchase orders for which materials or equipment have not been received are encumbrances rather than liabilities, in that no liability exists until the goods are delivered and accepted. Encumbrances are commitments which are chargeable to an appropriation and for which a part of the appropriation is reserved. They cease to be encumbrances when paid or when an actual liability is set up.
6. Encumbrances should be recorded at the end of the fiscal year for federally funded programs, effective June 30, 1986. These encumbrances should include all open purchase orders as of June 30 for all federal programs for which a project completion report is required. The entry for recording encumbrances at year-end is a Debit to Encumbrances (Account 603) and Credit to Reserve for Encumbrances (Account 753). The encumbrances account is then closed to Fund Balance (Debit Unreserved Fund Balance, Account 799, and Credit Encumbrances, Account 603). The Reserve for Encumbrances Account (for federal programs) would then reflect the total value of all outstanding (open) purchase orders at year end.

MAY 8, 1985, ISSUE

PAGE 7-3

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART I

REVENUE AND EXPENDITURE ACCRUALS (CONTINUED)
7. At the beginning of the next fiscal year, an entry should be made to restore the encumbrances by reversing the previous entry (debit Encumbrances, Account 603 and credit Unreserved Fund Balance, Account 799). At the time the material or equipment is received, the Encumbrances and Reserve for Encumbrances accounts must be adjusted by debiting Reserve for Encumbrances (Account 753) and crediting Encumbrances (Account 603) for the amount of the purchase order if fully delivered, or for the invoice amount if the invoice is for partial delivery and the invoice is processed in accordance with usual procedures.
8. The above instructions for year-end processing and opening entries to record encumbrances apply only to those LEAs which are not on a full encumbrance accounting system. LEAs which are on an encumbrance system should follow their normal procedures for continuously recording and clearing encumbrances.
9. Liabilities should normally be liquidated (paid or cancelled) within 90 days after the end of the fiscal year or, in the case of federal grants, within 90 days of the end of the grant period. Any liabilities not liquidated within the 90 day period must be documented; for example, by maintaining a separate file for invoices over 90 days old.
10. See Chapters 29 and 80 of this Handbook for further information on revenue and expenditure accruals.

MAY 8, 1985, ISSUE

PAGE 7-4

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART I

GEORGIA FINANCIAL ACCOUN1ING HANDBOOK
FOR LOCAL SCHOOL SYSfEMS PAR I II
PRINCIPLES OF PUBLIC SCHOOL ACCOUN1ING METHODS AND PROCEDURES
GEORGIA UEPARTMENl OF EDUCAliON ATlANTA. GEORGIA

JULY 24. 1984. ISSUE

PAGE 2~-1

GEORGIA FINANCIAL ACCOUNTING HANDBOOK
PART II

PART 11 TABLE OF CONTENTS (CONTINUED)
PART 11 TABLE OF CONfENTS (RESERVED FOR FUTURE MATERIAL) FOREWORD TO PART II THE BASICS OF ACCOUNIING PRINCIPLES OF ACCOUNTING BUDGETARY ACCOUN1ING REVENUE AND RECEIPT ACCOUN1ING EXPENDITURE AND DISBURSEMENT ACCOUNTING PAYROLL AND BENEFITS ACCOUNTING INVENIURY AND PROPERlY ACCOUN1ING OPENING THE GENERAL LEDGER RECORDING THE APPROVED BUDGET A SAMPLE MONTH OF TRANSACTIONS CLOSING fHE BOOKS CAPITAL PROJECT FUNDS DEBT SERVICE fUNDS GENERAL LONG TERM DEBT ACCOUNT GROUP GENERAL FIXED ASSETS ACCOUNT GROUP ENlERPRISE FUNDS INTERNAL SERVICE FUNDS fRUST AND AGENCY FUNDS

BEGINNING PAGE 25-1 2&-1
21-1 28-1 29-1 30-1
31-1
32-1
33-1
34-1 35-1
3b-1
31--1 38-1 39--1
40-1 41-1 42-1 43-1 44-1 45-1

JULY 24. 1984. ISSUE

PAGE 2!l-2

GEORGIA FINANCIAL ACCOUNTING HANDBOOK
PART II

PART II TABLE OF CONTENTS
PartJDr Principles of Public School Accounting. Methods and Procedures
THE BASICS OF ACCOUNTING
The accounting equation Operating statements Commercial vs. governmental accounting Governmental funds Debits and credits Bookkeeping records Chart of accounts
PRINCIPLES OF ACCOUNTING
Accounting for governmental organizations Basis of Accounting
BUDGETARY ACCOUNTING
Revenue Budgets Expenditure budgets Budgetary reporting Expenditure budget report Recording the budget Encumbrance accounting
REVENUE AND RECEIPT ACCOUNTING
Accounting for cash receipts Typical revenue accruals Revenue and receipts journal Revenue ledger
EXPENDITURE AND DISBURSEMENT ACCOUNTING
Purchasing procedures Accounting procedures Receiving procedures Expenditure accruals Expenditure ledger

CHAPTER 28
29
30
31
32

OCTOBER 18, 1983, ISSUE

PAGE JJl-l

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART II

PART 11 TABLE OF CONTENTS (CONTINUED)
PAYROLL AND BENEFITS ACCOUNTING
Payroll journal Calculating the payroll Summarizing the payroll Matching benefits Payroll deductions and withholdings Individual earnings records Encumbering salaries
INVENTORY AND PROPERTY ACCOUNTING
Inventory methods Valuation of inventory Inventory controls Inventory of fixed assets
OPENING THE GENERAL LEDGER
Single entry vs double entry Developing the opening trial balance Preparing the opening journal entry Posting the general ledger
RECORDING THE APPROVED BUDGET
Budget estimate of revenue Recording the estimated revenue Posting the general ledger Posting the subsidiary ledger Appropriation or expenditure budget Recording the appropriation Posting the general ledger Posting the subsidiary expenditure ledger

CHAPTER
33
34
35 3&

OCTOBER 18, 1983, ISSUE

PAGE n-2

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART II

PART II TABLE OF CONTENTS (CONTINUED)
A SAMPLE MONTH OF TRANSACTIONS
Recording transactions Payroll encumbrance summary Purchase order journal Payroll register Combined journal Posting the ledgers General ledger Expenditure ledger Summary of expenditure ledger The trial balance
CLOSING THE BOOKS
Adjusting entries Worksheet Proof of the year's operations Revenues and expenditures Balance sheet accounts Closing entries
CAPITAL PROJECT FUNDS
Number of funds required Alternative accounting approaches Creation of the fund Bond premiums, discounts and interest Illustrative entries - first year Financial statements - first year Illustrative entries - second year Financial statements - second year
DEBT SERVICE FUNDS
Types of bonds Number of funds required Refunding bond issues Financial statements

CHAPTER
37
38 39
40

OCTOBER 18, 1983, ISSUE

PAGE lI.-3

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART II

PART II TABLE OF CONTENTS (CONTINUED)
GENERAL LONG TERM DEBT ACCOUNT GROUP
Accounting Obligations incurred Sample transactions Discounts premiums and accrued interest Financial statements
GENERAL FIXED ASSETS ACCOUNT GROUP
Accounting for acquisitions Additions, betterments and renewals Accounting for dispositions Sale or salvage Replacement Transfers Depreciation Financial statements
ENTERPRISE FUNDS
Applicable accounting standards Establishing the fund Accounting for fixed assets Classifying food services Determination of an enterprise activity Enterprise fund statement
INTERNAL SERVICE FUND
Budgeting Establishing the fund Revenues Expenses Closing the books Financial statements
TRUST AND AGENCY FUNDS
Trust funds Agency funds Financial statements
SCHOOL FOOD SERVICE ACCOUNTING

CHAPTER
41 42
43 44 45
46

OCTOBER 18, 1983, ISSUE

PAGE n-4

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART II

FOREWORD TO PART II
Accounting has been defined as the art of classifying, recording, summarizing, reporting and interpreting the results of financial activities.
Keeping records is an important function in the day-by-day operation and administration of a local school system. Without adequate records, decisions would have to be based on memory and guesswork. Records summarizing the financial transactions and other activities of local school system facilitate wise and informed decisions. Persons who systematically record information about the various financial activities of a local unit of administration provide a basic and indispensable service.
Accounting includes planning (budgeting), doing (bookkeeping), and disseminating (reporting). The purposes of accounting are threefold:
1. Safeguard the assets of the organization
2. Report on the stewardship responsibility for individual resources
3. Provide information for decision making
Accounting records must provide meaningful, reliable, accurate and timely information to the many persons and groups with legitimate interests in the financial affairs of a local administrative unit (such as an LEA). These include:
The professional management of an LEA, including the superintendents, business administrations, principals, and budget managers, and others who must evaluate past performance, make current decisions and plan future operations.
The local board of education which sets policy for the LEA and has the final responsibility for compliance with legal provisions and budgetary restrictions.
The general public, composed of residents, taxpayers, and political groups, who are concerned with the cost and quality of education.
Grantor agencies interested in determining LEA eligibility for grant monies.
Oversight bodies, including the Georgia Department of Education and the Federal government, which have statutory responsibilities to regulate various aspects of LEA operations and to provide source material for research and statistical purposes.
The business community, including bond purchasers and potential bond purchasers, creditors, investment bankers, bond rating services, and general vendors, who must decide whether or not to provide resources to an LEA.

FEBRUARY 24, 1986, ISSUE

PAGE 27-1

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART II

FOREWORD TO PART II (CONTINUED)
Systematic and well-kept records are also invaluable to the persons responsible for keeping them. Systematic records summarize and bring into orderly arrangement the numerous and unpredictable details of day-by-day financial operations. When records are kept in an orderly manner, it is possible to trace information on individual transactions back to supporting source documents and to prepare reliable, accurate and timely financial reports; an effective audit trail is left for independent auditors, and improved quality and decreased costs of audits result.
This part of the Georgia Financial Accounting Handbook for Local Units of Administration introduces the basic accounting equation and explains the general principles of public accounting. It includes a discussion of governmental budgetary accounting and explanations of the various sub-systems that make up an accounting system. It contains illustrations of entries reflecting changes to be implemented at the local level.

FEBRUARY 24, 1986, ISSUE

PAGE 27-2

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART II

CHAPTER 28

THE 8ASICS OF ACCOUNTING

Basic financial statements present information concerning a person's or
an organization's financial position on a certain date; changes in that
position and results of operations during a period ending on that date. Financial statements presenting the financial posit.ion at a certain date are called balance sheets. and statements reflecting changes in that position
and results of operations during a period ending on that date are called operating statements.

BALANCE SHEETS

The financial position information presented on the balance sheet indicates what an organization owns, what it owes, and the difference which is a measure of its net worth. These elements of financial posit.ion and their relationship to each other are summarized mathematically in the basic account.ing equation:

OWNED - OWED = NET WORTH

In accounting terminology, things that are owned are called assets, things
that are owed are called liabilities, and net worth is usually referred to as equity. By applying this terminology, we can restate the accounting equation as follows:

OWNED OWED

NET WORTH

ASSETS LIABILITIES

EQUITY

To illustrate, assume that an organization has cash in the bank of $6,000
and owes $5,000. What is its equity? Since assets (what is owned) less liabilities (What is owed) equals equity -

ASSEIS - LIABILITIES

EQUITY

$6,000 $5,000

$1,000

Try another one: Assume that another organization has $200,000 in the bank, but it owes salaries to employees in the amount of $115,000.

What. is its equity? Since equity equals asset.s minus liabilities, then -

ASSETS - LIABILITIES EQUITY

$200,000 - $115,000

EQUITY

$25,000

= EQUITY

OCTOBER 18, 1983, ISSUE

PAGE 28-1

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART II

THE BASICS OF ACCOUNTING (CONTINUED)

Assume, now, that we know the value of liabilities and equity. Can we determine the value of assets? In the preceding example, we state that assets - liabilities = equity. Using the same amounts for equity and liabilities we would have

ASSETS - LIABILITIES = EQUITY

ASSETS - $175,000 = $25,000

or

ASSE1S ~ LIABILITIES + EQUllY

ASSETS ~ $ll~,OOO

+ $25,000

Thus, we derive that the value of assets is $200,000.

We have now stated the accounting equation two ways:

1. ASSETS

LIABILITIES

EQUITY

$200,000

$175,000

$25,000

2. ASSETS

LIABILITIES + EQUITY

$200,000

$175,000 + $25,000

The accounting equation can be added to or subtracted from as long as the same amount is added or subtracted on both sides of the equation. It is important to remember that the equation must always be in balance.

Current Assets and Liabilties

Assets and liabilities are further classified according to their degree of
permanency. Assets which are likely to be used up, or converted into cash,
within the next year (cash, investments, most receivables, inventories, etc.) are called current assets. Longer lived assets, land, buildings, equipment, etc. are called fixed assets. Similarly, liabilities payable within one year are called current liabilities and those payable in more than one year are called long-term liabilities. The difference between current assets and current liabilities is called net current assets. It is a measure of an organization's l~uidity. These elements of an organization's liquid financial position and their relationships to each other can be summarized by the basic accounting equation as follows:

CURRENT ASSETS - CURRENT LIABILITIES = NET CURRENT ASSETS

OCTOBER lB, 1983, ISSUE

PAGE 28-2

GEORGIA FINANCIAL ACCOUNTING HANDBOOK
PART II

THE BASICS OF ACCOUNTING (CONTINUED)
To be considered financially healthy, an organization must meet both liquidity (sufficient net current assets) and solvency (sufficient equity) tests.
OPERATING STATEMENTS
Results of operations can be measured and reported in several different ways.
Cash Receipts and Disbursements
Cash receipts are increases in cash; cash disbursements are decreases in cash. The statement of cash receipts and disbursements is an operating statement which summarizes cash flows during a period.
Revenues and Expenditures
Revenues are additions to assets which do not incur an obligation and do not represent exchanges of property for money. Expenditures are charges incurred whether paid or unpaid, which are presumed to benefit the current fiscal year. A statement of revenues and expenditures, therefore, summarizes the receiving and spending activities of an organization during a period.
Revenues and Expenses
Revenues are increases in equity and expenses are decreases in equity. The principal way in which expenses differ from expenditures is that expenses include the cost of using fixed assets over time, even though the expenditures for those costs may not be reflected in current financial activity. A statement of revenues and expenses summarizes the effect which an organization's financial operations during a period have had on its equity.
Commercial vs. Governmental Accounting
In our free enterprise system, business organizations are permitted significant discretion in choosing how to spend their resources. Further, since business organizations exist primarily to earn profits, accounting standards governing their behavior place minimal emphasis on spending activities and focus almost exclusively on the extent to which operations have maintained or added to net worth, or equity.

OCTOBER 18, 1983, ISSUE

PAGE 28-3

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART II

THE BASICS OF ACCOUNTING (CONTINUED)

Americans as taxpayers, on the other hand, are not nearly so inclined to allow their governments similar discretion in deciding how to spend public monies. Further, earning a profit is at best a secondary objective even for functions of government with profit-producing activities. Americans have not, therefore, found business accounting standards particularly useful for evaluating their governments' financial activities and have turned instead to an accounting system which emphasizes the control of spending. This is
done through the establishment of bUdgets and the preparation of reports which show the extent of compliance with the budget. The legal authority to spend in a governmental organization is the approved budget or the appropriation.

FUND ACfOUNlING

Often, different functions of a governmental activity require different
kinds of controls. 10 accommodate this need, separate funds are established
to account separately for resources affected by different types of spending restrictions. Separate funds are required when unique reporting requirements exist. This process is referred to as fund accounting. Fund accounting allows a government to account for part of its activities using business accounting standards and the rest using governmental accounting standards. Three categories of funds are used.

Governmental funds

Proprietary funds

Fiduciary funds

Governmental Funds

Governmental funds are used to account for governmental activities financed primarily from taxes and state and Federal appropriations. They are accounted for using governmental accounting standards. Therefore, they generally report only current assets and current liabilities on their balance sheets and their primary operating statement is the statement of revenues and expenditures. Their equity consists of the accounts called fund balance and reserves. The relationship between a governmental fund's statement of revenues and expenditures and its balance sheet can be indicated using the
accounting equation as follows:

EQUllY + REVENUES

(At Start (During

Of Year)

Year)

EXPENDITURES (During Year}

EQUITY
(At End Of Year)

35,000 + 115,000

180,000

30,000

OCTOBER 18, 1983, ISSUE

PAGE 28-4

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART II

THE BASICS OF ACCOUNTING (CONTINUED)

Also another equation would be:

EQUITY (At End Of Year)

ASSETS (At End Of Year)

LIABILITIES (At End Of Year)

30,000

150,000

120,000

Proprietary Funds

Proprietary funds are used to account for operations that are financed and operated in a manner similar to private business enterprises and/or where the intent is that they be financed primarily from user charges. They are accounted for using business accounting standards. Therefore, their primary operating statement is the statement of revenues and expenses and their equity consists of separate invested monies (called contributed capital) and earned monies (called retained earnings).

The fact that the statement of revenues and expenses reflects changes during the year in fund equity is indicated in the previous accounting equation.

Fiduciary Funds

Fiduciary funds are used to account for activities undertaken by a
government on behalf of, or in a fiduciary capacity for, some other persons or groups. Fiduciary funds are accounted for as either proprietary or governmental. Nonexpendable trust and pension trust funds are treated like governmental funds. Agency funds are purely custodial (assets exactly equal liabilities and, hence, equity is always zero) and thus do not involve measurement of results of operations.

RELATIONSHIP OF BALANCE SHEET AND OPERATING STATEMENTS

It is possible to demonstrate the effect of financial transactions on the accounts by using the accounting equation. Amounts can be added to or subtracted from the equation as long as equal amounts are applied to both sides. The equation must always be in balance; itls equality must be
maintained.

OCTOBER 18, 1983, ISSUE

PAGE 28-5

GEORGIA FINANCIAL ACCOUNliNG HANDBOOK PART II

THE BASICS OF ACCOUNTING (CONTINUED)

Certain types of transactions affect only assets and liabilities and hence only the balance sheet. Three such transactions are illustrated below:

1. An asset can be increased and another asset decreased an equal amount. For example, an LEA purchases $5,000 of investments (asset) and disburses cash (asset). The asset account "Investment" has been increased but the asset account "Cash" has been decreased by the same amount, $5,000. Hence, we still have the same total assets. Thus,

ASSETS

LIABILITIES + EQUITY

50,000 50,000 + 5,000 - 5,000

22,000 22,000

+ 28,000 + 28,000

2. An asset can be increased and a liability increased an equal amount.
For example, an LEA borrows $8,000 for the current year (liability)
and receives cash (asset). The asset account "Cash" has been increased and a liability account "Loan Payable" has been increased
by the same amount, $8,000. Now the accounting equation looks like this,

ASSETS

LIABILITIES

+ EQUITY

50,000 50,000 + 8,000 58,000

22,000 22,000 + 8,000 30,000

+ 28,000 + 28,000 + 28,000

3. An asset can be decreased and a liability decreased an equal amount.
For example, an LEA issues checks (asset) totaling $4,000 to vendors,
paying off some accounts payable (liability). The liability account "Accounts Payable" is decreased and the asset account "Cash" is also decreased by like amount, $4,000. Thus,

ASSETS

LIABILITIES

+ EQUITY

50,000 50,000 - 4,000
46,000

22,000 22,000 - 4,000 18,000

+ 28,000 + 28,000 + 28,000

There are two other types of transactions t.hat affect equity-revenues and
expenditures (or expenses). Revenues increase equity while expenditures (or expenses) decrease equity. The accounting equation now can be expanded as follows:

ASSETS

LIABILITIES + (EQUITY + REVENUES - EXPENDITURES)

OCTOBER 18, 1983, ISSUE

PAGE 28-6

GEORGIA FINANCIAL ACCOUNTING HANDBOOK
PART II

THE BASICS OF ACCOUNTING (CONTINUED)

To illustrate the expanded equation, these examples are given.

1. An LEA receives approval from the State Department of Education for a State aid claim totaling $9,000. The asset account, "Accounts Receivable", is increased and the "Revenue" account is increased.

ASSETS - LIABILITIES

(At End

(At End

Of Year) Of Year

FUND
EQUITY (At Start Of Year)

+ REVENUES - EXPENDITURES (During (During The Year) The year)

50,000

22,000

28,000

50,000 + 9,000 -

22,000

28,000 + 9,000 -

o

59,000 -

22,000

28,000 + 9,000

This transaction increased the Fund Balance $9,000 (by increasing revenues) while maintaining the balance in the accounting equation.

2. The LEA approves invoices for payment amounting to $7,000. This
increases "Expenditures" and it increases the Liability "Accounts Payable. II

ASSETS (At End Of Year)

LIABILIlIES
(At End Of Year)

FUND

+ EQUITY + REVENUES - EXPENDITURES

(At Start (During

(During

Of Year)

The Year) The Year)

50,000 50,000 50,000

22,000

+

22,000 + 7,000 +

29,000

+

28,000 28,000 + 21,000

o-

7,000

This transaction decreased the Fund Balance $7,000 (by increasing expenditures) while maintaining the balance in the accounting equation.

DEBITS AND CREDITS

As illustrated earlier in this chapter, each financial transaction increases or decreases the LEA accounts. Accounting shows these increases or decreases as debits or credits. These terms are sometimes abbreviated, as follows:

Debit - DR

Credit - CR

OCTOBER lB, 1983, ISSUE

PAGE 28-7

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART II

THE BASICS OF ACCOUNTING (CONTINUED)

You can think of a general ledger account as looking like a "T". The left side of an account is called the debit side; the right side is called the credit side.

Debit Side

An Account

Credit Side

A debit will either increase or decrease an account depending upon where that account appears in the accounting equation. The same thing is true of a credit.

The accounting equation is illustrat.ed to show where debits and credits appear as increases (Inc.) or decreases (Dec.)

Assets

Liabilities + Fund Eguit~ + Revenues - Expenditures

Debit. Credit Debit . Credit Debit . Credit Debit. Credit Debit.. Credit

!..n.h-... Dec. Dec . . Inc. Dec. . Inc. Dec.. Inc. Inc.. Dec.

Since t.he accounting equation must always be in balance (i.e., ASSETS
LIABILITIES + FUND BALANCE), every transaction must always be made up of debit amounts equal to the credit amounts posted. Each t.ransaction must be analyzed individually to det.ermine which account.s are increased and decreased, resulting in specific debit.s and credit.s. The affect. of debits and credits on the accounts may be illustrat.ed as follows:

Account Assets Liabilities Fund Equity Revenues
Expenditures

Normal Balance Debit Credit Credit
Credit Debit

Debit Increase Decrease Dec rease
Decrease Increase

Credit Decrease Increase Increase Increase
Decrease

To furt.her illustrat.e t.he use of debits and credit.s, some examples are present.ed:

1. Assume that t.he LEA began the year with assets of $20,000, no liabilities and a fund equity of $20,000.

Assets

= Liabi 1ities + Fund Equity + Revenues

- Expenditures

Debit . Credit Debit . Credit Debit . Credit Debit . Credit Debit. Credit

!..n.h-... Dec.

Dec. . Inc. Dec . . Inc. Dec. . Inc. Inc.. Dec.

20,000.

o+

20,000

2. The LEA receives approval of the State aid claim totaling $8,000. This t.ransaction increases assets and increases revenues by the same amount.

OCTOBER 18, 1983, ISSUE

PAGE 28-8

GEORGIA FINANCIAL ACCOUNTING HANDBOOK
PART II

THE ~ASICS OF ACCOUNTING (CONTINUED)

__~A~s~s~e~ts~ = Liabilities + Fund Balance + Revenues

Debit .Credit Debit .Credit Debit . Credit Debit . Credit

Inc.

Dec. Dec.

Inc. Dec. ~ Dec.

Inc.

(1 ) 20,000.

.20,000

(2) 8,000.

(T) 28,000.

=

o+

.20,000 +-

8,000 8,000

Expenditures Debit . Credit Inc. _ Dec.
-o

3. The LEA received invoices for expenditures totaling $&,000. This transaction increases expenditures and increases liabilities.

Assets = Liabilities

Debit .Credit Debit .Credit

Inc.

Dec. Dec.

Inc.

(1 ) 20,000.

(2) 8,000.

(3)

.&,000

(T) 28,000.

=

.6,000

+- Fund Balance t- Revenues

Expenditures

Debit .Credit Debit .Credit Debit .Credit

Dec.

Inc. Dec.

Inc. Inc.

Dec .

. 20,000

. 8,000

. &,000

+-

.20,000 +-

8.000 - &,000.

4. The LEA borrowed $9,000 from the bank to cover future operating expenditures. This transaction increases assets and increases liabilities.

Assets Debit .Credit Inc. Dec. (1 ) 20,000. (2) 8,000.
(3)
(4) 9,000.

Liabilities

Debit .Credit

Dec.

Inc.

. &,000 . 9.000

+ Fund Balance +- Revenues

Debit .Credit Debit .Credit

Dec.

Inc. Dec.

Inc.

. 20.000

. 8,000

Expenditures Debi t . Cred it Inc. Dec .
. &,000

(T) 37,000.

.15.000 +-

.20,000 +-

.8.000

&,000

The accounting equation is still in balance, $37.000 = $15.000 + $22.000 ($20.000
+- $8.000 - $&.000). Also note that each transaction involved credit amounts equal to the debit amount.

Now try analyzing some transactions yourself. Remember:

A debit - increases an asset - decreases a liability - decreases fund balance - decreases revenue
- increases expenditure

A credit - decreases an asset
- increases a liability - increases fund balance
- increases revenue - decreases expenditure

OCTOBER 18. 1983. ISSUE

PAGE 28-9

GEORGIA FINANCIAL
ACCOUNTING HANDBOOK PART II

THE BASICS OF ACCOUNTING (CONTINUED)

Following is a list of nine transactions to be recorded on the cash basis of accounting. Take a separate sheet of paper, list the number from 1 to 9 and indicate which accounts (assets, liability, fund balance, revenue,
expenditure) are to be debited and which are to be credited. When you have completed your list check the answers against those shown below:

1.

Tuition is collected.

2.

Teachers salaries are paid.

3.

Investment matures.

4.

Money owed to the XYZ Company is paid.

5.

Money is borrowed from the bank.

b.

A telephone bill is paid.

7.

Investments are purchased.

8.

State aid funds are received.

9.

Custodians salaries are paid.

Your answers should be:

l.

Debit Assets (Cash); credit Revenue.

2.

Debit Expenditures; credit Assets (Cash).

3.

Debit Assets (Cash); credit Assets (Investments).

4.

Debit Expenditures; credit Assets (Cash).

5.

Debit Assets (Cash); credit Liabilities (Loans Payable).

b.

Debit Expenditures; credit Assets (Cash).

7.

Debit Assets (Investments); credit Assets (Cash).

8.

Debit Assets (Cash); credit Revenue.

9.

Debit Expenditures; credit Assets (Cash).

OCTOBER 18, 1983, ISSUE

PAGE 28-10

GEORGIA FINANCIAL ACCOUNTING HANDBOOK
PART II

THE BASICS OF ACCOUNTING (CONTINUED)
BOOKKEEPING RECORDS
In order for an LEA to utilize the accounting process, books and records must be maintained. These books and records may be classified into two major types; journals and ledgers.
Journals
A journal is a book of original entry. It is like a log book or a diary: that is, transactions are entered in it in the sequence in which they occur, in date order. As transactions occur they are recorded first in the journal. This recording is called a journal entry and contains a summary of the transaction the date on which the transaction took place, the accounts affected, how they are affected (whether debits or credits), the amounts to be debited or credited,' and a brief description of the nature of the transaction.
A journal is classified as a general journal or a special journal. Special journals are used to record transactions of a like nature. Some examples of special journals include:
revenue and receipts journal
expenditures and disbursements journal
payroll journal (payroll register)
purchase order journal
These special journals are illustrated in subsequent chapters of this handbook.

OCTOBER 18, 1983, ISSUE

PAGE 28-11

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART II

THE BASICS OF ACCOUNTING (CONTINUED)

All transactions could be recorded in a general journal. journal is illustrated below.
General Journal

Fund

_

A sample general

Page

_

p

General . 0

. Date . Account Title and Explanation. ledger . s. Debits

Account , t ,

Humber . e .

_____'-fL.

'

Credits , _

.

._-------

. ._-------
A88ume that on JU1~ 28, the LEA purchases $10,000 of u.s. Treasur~ bills as
an investment for cash totaling $9,542. The actual entry in journal form is
shown below. Note that the account to be debited is listed first and the account to be credited is listed second and indented - this is accepted practice. Also note that a brief explanation follows the recording of the account names.
Genera 1 Journa 1

Fund

General

Page _1_

, Date

General Account Title and Explanation . ledger
Account
Number

.1980
.Jul 28. Investments
Cash in Bank ______ To record purchase of
______ ,U.S. Treasury bills in the _____.amount of $10,000

._1-111 _1-1 01

p
o. s.
t.
,e.
,-fL.
,~.
,~,

Debits
' 9.542.00,
.

Credits
_ _ 9.542.00.

--_._--

OCTOBER 18, 1983, ISSUE

PAGE 28-12

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART II

THE BASICS OF ACCOUNTING (CONTINUED)

Ledgers

A ledger is a book that may be used to summarize the financial activity in each account of an LEA. It usually has a separate page for each account. Ledgers are classified as general or subsidiary. The general ledger contains the basic accounts of the LEA, and serves as the source of data for preparing the balance sheet. A sample general ledger account is illustrated below:

General Ledger

Fund

Account Title

_

Account Number

Page No.

Date

Description . Ref. . Debit

Credit

Balance

---- -------- --- ----- -----
Thh general ledger format includes t.he lip account, and has been modified to include a column to maintain a running balance of the account. The balance in the account will be a debit if entries in the debit column total more than those in the credit column; on the other hand, the balance will be a credit if credits total more than debits.
The accounts normally included in the general ledger are: individual asset accounts
individual liability accounts individual equity accounts budgetary control accounts revenue control account expenditure control account encumbrance control account

OCTOBER 18, 1983, ISSUE

PAGE 28-13

GEORGIA FINANCIAL ACCOUNTING HANDBOOK
PARl II

THE BASICS OF ACCOUNTING (CONTINUED)

Budgetary and encumbrance accounting will be discussed in subsequent chapters.

An illustration of the posting to an individual asset account, "Cash in Bank,- is shown below,

!ienera 1 ledger

Fund General

Account Title Cash in Bank --""=="---'~=:..:..:..:-_-------

Account Num_b_p..r 1-101

Page No. _1

_

Date

Description . Ref.

1980

__~l!J_l .' Balance Forward

~

Debit

Credit

81,090.40.

Balance 81.090.40.

Subsidiary ledgers provide detai led breakdowns of selected genera 1 ledger accounts. The most co"",on subsidiary ledgers are:
the revenue ledger
the expenditure ledger
the project ledger

Sample subsidiary ledgers are illustrated in subsequent chapters of this handbook,
Posting
The process of taking the information from the journals and recording the same information in the ledgers is referred to as posting.

OCTOBlR 18. 1983, ISSUE

PAGE 28-14

GEORGIA FINANCIAL ACCOUNTING HANDBOOK
PART 11

THE BASICS OF ACCOUNTING (CONTINUED)

The journal entry on page 2B-12 is posted to the appropriate general ledger accounts as follows:

General Ledger

Fund Genera 1

Account Title Cash in Bank

Account Number ..:-1-_1:..;:0;..:.1

Page No. _1.:..-_ _

Date

Description . Ref.. Debit

1980 Jul 1 . Balance Forward >1\. 81,090.40 . ___~2=8~. Check No. 3909 . GJ-1 .

Credit

Balance

---=_::_ 81,090.40 9,542.00. 71,548.40

Fund Genera 1

General Ledger

Account Title _~I~n~v~e~st~.m~e~n~t~s

___

Ac count Numbe r __-:1_--:..1...:-11:...-.--___ Pa ge No. __1:...-.--__

Date

Description . Ref.. Debit

. 1980 . Jul 28 . $10,000 maturity .
_______. value U.S. _______. Treasury Bills . GJ-1 . 9,542.00 .

Credit __

Balance _
9,542.00 .

OCTOBER 18, 1983, ISSUE

PAGE 28-15

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART II

THE BASICS Of ACCOUNTING (CONTINUED)

The posting Reference column in the general ledger indicates which
journal and page the posting came from. The check mark ( ) indicated a balance carried forward from last year's general ledger. The balance column in the general ledger allows the bookkeeper to maintain a running balance in the account. Usually, each time the general ledger is posted, the accounts are totaled and the balance is entered with a notation as to whether the balance is a debit (DR) or a credit (CR).

General Journal

fund General

Page _1_

Date

p
. General. 0 . Account Title and Explanation . Ledger . s.
Account. t .
______________. Number ..-!eL..

Debits
_

Credits

.1980 .Jul 28 . Investments
Cash in Bank
To record ~urchase of .$10.000 U.S. Treasury bi 11s .b~ check numbered 3909.

. 1-111 . i . 9,542.00 .

~:-:--

. 1-101 .~.

. 9,542.00 .

Numbers journal

in the General Ledger Account entry was posted and the check

N(u,m>bemr acroklsuminn

show to which accounts the the posted column indicates

the accounts have been posted.

OCTOBER 18, 1983, ISSUE

PAGE 28-1 >

GEORGIA fINANCIAL ACCOUNTING HANDBOOK PART II

THE BASICS OF ACCOUNTING (CONTINUED)
THE TRIAL BALANCE
If posting to the accounts has been done correctly, the total of all the debits posted should equal the total of all the credits posted. This is true because for every debit entry or entries there has been a credit entry or entries of an equal amount.
At the end of the month, when you are getting ready to prepare your reports, the first step is to prepare a trial balance for each Fund. The General Fund trial balance would look like this:
SCHOOL DISTRICT XYZ TRIAL BALANCE. GENERAL FUND JULY 31, 19X1

Genera 1 .
ledger Account . Number .

.....:.A.:..::c;;::c~o~un:.:.;t~T.....:.i~t...:..;le:::..:s~

Account Balances

-=D~e=b...:...it"--

-=C;..:..r-=:.e.=..d t,,--_ 1.:....;

101

Cash in bank

111

Invest.ments

141

Intergovernmental

accounts receivable

171

Inventory - for consumption

4T1

Payroll deductions and

. withholdings - Federal Income Tax

421

Accounts payable

799

Fund Balance

........................

66,000 95,000 159,000 3,500
323,500
....

14,000 8,500 301,000 323,500
.....

OCTOBER 18, 1983, ISSUE

PAGE 28-17

GEORGIA FINANCIAL
ACCOUNTING HANDBOOK PART I I

THE BASICS OF ACCOUNTING (CONTINUED)

The debits and credits should be equal in the trial balance. A trial
balance is necessary because errors can occur. For example, errors may occur while posting transactions to the ledger accounts. Numbers can be transposed (such as the accidental posting of a debit as $48 and the related credit as $84) or posting missed. The trial balance is simply a listing of all the account balances in the general ledger as a check to see that the ledger is in balance.

CHAR1 OF ACCOUNTS

The chart of accounts is a listing of all accounts used in an individual accounting system. Each account is assigned a number, and is grouped in the ledger with similar accounts. Following is a simple chart of general ledger accounts showing current assets and current liabilities for the general fund. Remember, assets are what the LEA owns, liabilities are what the LEA owes, and fund balance is the difference between the two. The number of accounts has been kept small to illustrate principles and procedures, but additional or different accounts may be necessary depending on the law and the needs of a particular LEA.

Current
Assets What the LEA owns:

GFAH Handbook Part. I
Account. No.

Norma 1 Balance

Cash in Bank. .

Pet.t.y Cash

.

Invest.ments . .

Int.ergovernmental Accounts

Receivable

.

Ot.her Account.s Receivable

Prepaid Expenses

. .

101

Debit

103

Debit

111

Debit

141

Debit

153

Debit

181

Debit

Current _ Liabilties What the LEA owes:

Account.s Payable. . . . Accrued Salaries and Benefits . .
Federal Income Tax Payable . .

421

Credit

461

Credit

411

Credit

OCTOBER 18, 1983, ISSUE

PAGE 28-18

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART II

THE BASICS OF ACCOUNTING (CONTINUED)

Fund Equity

The difference between what the LEA owns and owes:

Part I
Account No.

Normal Balance

Reserve for Encumbrances . . .

Fund Balance

.

753

Credit

799

Credit

Subsidiary Control Accounts

To control budgetary amounts:

Estimated Revenues . . .

Revenues . . . .

Appropriations ..

Expenditures .

Encumbrances

.

301

Debit

302

Credit

601

Credit

602

Debit

603

Debit

A complete list of accounts and their definitions may be found in Chapters 3 and 6 of Part I of the Georgia Financial Accounting Handbook.

CONTROL ACCOUNTS

The subsidiary control accounts (301, 302, 601, 602 and 603) and the Reserve for Encumbrance account (753) are normally used as summary or control accounts. This simply means that the balances in these accounts are summaries of the
balances of the detailed budget, revenue, expenditure or encumbrance accounts maintained in separate subsidiary ledgers. For example, revenue received from the Federal Government, the State, and from local sources is posted in total to
the Revenues summary account (account 302). However, it is also necessary to keep a record of revenue from each individual source - Federal, State and
local. Therefore a subsidiary revenue ledger is maintained which contains an account for each source of revenue in order to provide the detailed record needed. This ledger is called the revenue subsidiary ledger or, simply, the revenue ledger. At all times the total revenue shown in the general ledger Revenues account should equal the total of the revenue amounts posted in the revenue ledger. When posting an item or items for which there is a control account, one would post the total to the control account and then post the individual amount(s) to the proper accounts in the subsidiary ledger.

OCTOBER lB, 1983, ISSUE

PAGE 28-19

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART II

THE BASICS OF ACCOUNTING (CONTINUED)

The Revenue control account was used as a sample here; however, the same principle applies to any control account. Any subsidiary ledger should, like the revenue ledger above, be summarized in a single account in the general ledger. This is illustrated below using "T" accounts.

Assume that an LEA records the following revenues:

1. Federal sources.

20,000

2. State sources ..

30,000

3. Local sources . .

80,000

--

101

Cash in Bank

_ Debit. . Credit. (3) 80,000

141 Intergovernmental Accounts Receivable Debit . Credit (1) 20,000 (2) 30,000

302 Revenue (Control)

Debit

Credit
. (1) 20,000 . (2) 30,000
(3) 80,000

And, the revenue (subsidiary) ledger would look like this:

Revenue From Loca 1 Sources Debit. . Credit
(3) 80,000

Revenue From St.ate Sources Debit . Credit
(2) 30,000

Revenue From Federa 1 Sources Debit . Credit
. (1) 20,000

ACCOUNTING
__~YSTEM _

The accounting system is the system used by the LEA to complete the accounting process. An LEA accounting system can consist of several sub-systems.

Revenues

Account.s Payable

Payroll and Benefits

Inventory and Property

Budget.ary Control

General Ledger

Accounting for these sub-systems is discussed later.

OCTOBER 18, 1983, ISSUE

PAGE 28-20

GEORGIA FINANCIAL
ACCOUNTING HANDBOOK PART II

THE BASICS OF ACCOUNTING (CONTINUED)
SUMMARY
1. A balance sheet shows the financial position at a given date.
2. An operating statement shows the changes in financial position and results of operations during a period ending on the balance sheet date.
3. The things an LEA owns are called assets.
4. The amounts an LEA owes are called liabilities.
5. The excess of assets over liabilities is called equity or fund balance.
6. Receipts are increases in cash.
7. Disbursements are decreases in cash.
8. Increases in assets or decreases in liabilities which result in an increase in fund balance are called revenue.
9. Decreases in assets or increases in liabilities which result in a decrease in fund balance are called expenditures.
10. Increases and decreases in equity are called revenues and expenses, respectively.
11. Fund accounting is used by LEA's to permit accounting separately for resources affected by different types of spending restrictions and/or accounting principles.
12. Debits are entries to the left side of the account.
13. Credits are entries to the right side of the account.
14. Assets normally have debit balances; therefore debits increase assets credits decrease assets
15. Liabilities and fund balances normally have credit balances; therefore debits decrease liabilities and fund balances credits increase liabilities and fund balances

OCTOBER 18, 1983, ISSUE

PAGE 28-21

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART II

THE BASICS OF ACCOUNTING (CONTINUED)
16. The original entry of a financial transaction in the records is made in a journal.
17. From the journal, transactions are posted to accounts in the ledgers.
18. A set of account records is called a ledger.
19. A trial balance is a listing of account titles, account numbers, and balances for the purpose of determining whether the accounts are in balance - whether the total of all debit account balances equals the total of all credit account balances.

OCTOBER 18, 1983, ISSUE

PAGE 28-22

GEORGIA FINANCIAL ACCOUN1ING HANDBOOk PART II

CHAPTER 29
PRINCIPLES OF ACCOUNTING
There are many similarities between governmental accounting and commercial, or private enterprise accounting. Both are concerned with controlling and reporting on financial position and results of operations. Both emphasize relevance, materiality, freedom from bias, comparability, consistency, and understandability. Both systems utilize:
Double entry bookkeeping
Many common terms (e.g., balance sheets, assets, liabilities, equity).
Common accounting processes (e.g., journalizing, posting to ledgers, preparing of financial statements).
There also are significant differences between the two types of accounting. Some of these are:
Objectives - While commercial enterprises are organized to make a profit for their owners, governmental entities exist to provide services to their citizens on a non-profit basis. Even though some LEA activities such as the food service program or the student store provide commercial-like services, their primary objective usually is not to earn a profit.
Reporting emphasis - Since governmental entities are primarily not seeking to increase capital, the accounting emphasis is not on profit. This emphasis requires the reporting of revenues and other financing sources (i.e., sale of bonds, interfund transfers) and expenditures and other uses of funds (i.e., interfund transfers, purchase of fixed assets, debt retirement) in the operating statements rather than on the balance sheet.
Legal requirements and restrictions - Since governmental entities are created by law, they are continuously regulated by legal provisions. Their accounting records must illustrate that they have complied with all applicable laws and regulations. Most small commercial enterprises have more flexibility in their accounting processes than do governmental entities.

MAY 16, 1986, ISSUE

PAGE 29-1

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART II

PRINCIPLES OF ACCOUNTING (CONTINUED)
fund accounting - Because of these legal provisions and the diverse nature of governmental bodies, fund accounting is required. A fund is defined as a separate, self-balancing set of accounts which is separated for the purpose of carrying on specific activities or attaining certain objectives. Unlike a commercial enterprise, governmental entities must maintain separate funds, requiring a self-balancing set of accounts for each fund.
These and other characteristics of governmental accounting are formalized in a set of generally accepted accounting principles (GAAP) for governmental accounting. Throughout this chapter (and others) we will be explaining the principles which govern governmental accounting.
ACCOUNTING fOR GOVERNMENTAL ORGANIZATIONS
The National Council on Governmental Accounting (NCGA) publishes the set of basic principles applicable to the accounting and reporting of all governmental organizations, including LEA's. These principles prescribe the need for governmental units to maintain three categories of funds: governmental, proprietary and fiduciary. Fiduciary funds may be accounted for either as governmental or proprietary funds depending upon the nature of the particular fiduciary fund involved. A summary of these principles as applied to the operation of LEA's is in part I, Chapter 1, of the Georgia financial Accounting Handbook.

MAY 1&, 1986, ISSUE

PAGE 29-2

GEORGIA FINANCIAL ACCOUNTING HANDBOOK
PART II

PRINCIPLES OF ACCOUNTING (CONTINUED)
BASIC Of ACCOUNTING
One of the most important principles deals with the "basic of accounting. 11 Basis of accounting refers to the point in time when revenues, expenditures or expenses (as appropriate), and the related assets and liabilities are recognized in the accounts and reported in the financial statements. In other words, the "basic of accounting" governs the timing with which the accounting system recognizes transactions.
There are three bases of accounting in common use: cash, accrual, and modified accrual. The accrual basis (or the modified accrual basis in the case of governmental fund types) is preferred by most professionals and standards setting groups because it presents a more accurate picture of the operations of the LEA.
In cash basis accounting, financial transactions are recognized in the accounting records only when money is paid out or taken in.
Under the accrual basis, revenues and expenses are recognized when the economic events which give rise to those revenues and expenses occur. Thus, revenues are recorded when they are earned (not necessarily when they are received in cash), and expenses are recorded when goods are consumed or services are rendered (not necessarily when cash is actually disbursed).
Since governmental fund type financial statements are concerned with spending and available spendable resources, rather than with a determination of net income, they are accounted for by using the modified accrual basis of accounting. The modified accrual basis is the accrual basis of accounting adapted to focus on spending rather than on net profits. Thus, revenues are accrued when they are "available", and expenditures are deferred when the liability is incurred.
The following paragraphs provide further elaboration of these concepts.
Cash Basis Accounting
With regard to cash basis accounting, the Municipal Finance Officers Association says:
"Cash basis accounting recognizes transactions only when cash changes hands. There exists no comprehensive set of cash basis accounting principles corresponding to the specifically defined sets of principles which comprise the accrual and modified accrual basis of accounting. As a result, the term cash basis accounting is used, in actual practice, to mean different things at different times."

MAY 16, 1986, ISSUE

PAGE 29-3

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART II

PRINCIPLES OF ACCOUNTING (CONTINUED)
In the s1mplest vers10n of cash bas1s account1ng, the balance sheet presents the cash balance of the ent1ty as 1ts only asset and does not recogn1ze any l1ab1l1t1es. In such an 1nstance, the balance sheet's representat10n of net worth (wh1ch 1s the d1fference between total assets and total l1ab1l1t1es) 1s s1mply the same amount as 1ts cash balance. The statement of operat10ns then presents as revenue only amounts actually rece1ved 1n cash and presents as expenditures only amounts wh1ch have actually been pa1d.
Th1s s1mple version of cash basis accounting 1s, however, seldom found 1n actual pract1ce because 1t has potent1al to be mislead1ng 1n certain s1tuat10ns. For example, cash rece1ved as proceeds from a loan taken out at the bank would be reflected as revenue on the operat1ng statement, but no l1ability would be reflected on the balance sheet to 1nd1cate that the loan must later be repaid to the bank.
In such a system, the balance sheet presents as assets, the ent1tys cash balance and any other assets ar1s1ng from cash transact10ns (amounts rece1vable for loans prev10usly made to other ent1t1es, material expense refunds, rece1vable, etc.). It presents as liab1lit1es only those l1ab1lities ar1s1ng from cash transact10ns (amounts due as repayment for monies prev10usly borrowed. employee payroll w1thhold1ngs unrem1tted, etc.). In such an 1nstance. the balance sheet's representat10n of net worth 1s the d1fference between the sum of 1ts assets and the sum of 1ts 11ab1l1t1es ar1s1ng from cash transactions.
Cash bas1s f1nanc1al statements are ord1nar1ly not 1ntended to present f1nanc1al posit10n or results of operations. They are 1ntended to ass1st management w1th its 1nternal plann1ng of cash flows. so that suff1c1ent cash w1ll be ava1lable to pay b1l1s as they come due and so that excess cash m1ght be 1nvested unt1l needed.
Cash bas1s f1nanc1al statements om1t recogn1t10n of assets and l1ab1l1ties not ar1s1ng from pr10r cash transact10ns. Accord1ngly. they 19nore the effect upon f1nanc1al pos1t10n and results of operat10ns of accounts rece1vable. accounts payable and other accrued 1tems. S1nce these 1tems are commonly of s1gnif1cant dollar magnitude. cash basis f1nancial statements rarely present f1nanc1al pos1t10n or results of operation 1n conform1ty w1th generally accepted accounting pr1nc1ples.

MAY 16. 1986. ISSUE

PAGE 29-4

GEORGIA FINANCIAL
ACCOUNTING HANDBOOK PART II

PRINCIPLES OF ACCOUNTING (CONTINUED)
For these reasons. author1t1es prescr1be the use of the accrual bas1s of account1ng or the mod1f1ed accrual bas1s 1n the case of governmental type funds.
Accrual Bas1s Account1ng
Under th1s method. revenues are recogn1zed 1n the account1ng per10d 1n wh1ch they are earned and become object1ve1y measurable. When a revenue 1s earned. the LEA has prov1ded the serv1ce. for example. an LEA food serv1ce program prov1des meals for the LEA Nat10na1 Honor Soc1ety sponsored by a local bank. After the meal. the revenue would be cons1dered earned regardless of when the bank pays the b11l.
Us1ng the accrual bas1s of account1ng. expenses. 1f measurable. should be recogn1zed 1n the per10d 1ncurred. Note the term "expenses" rather than the expend1tures. The major d1fference 1n the terms 1s that expenses 1nc1ude var10us a1locat10ns of costs such as deprec1at10n but do not 1nc1ude the purchase of f1xed assets or the payment of debt pr1nc1pal. The oppos1te 1s true for expend1tures. Th1s 1s to say. expend1tures 1nc1ude purchase of f1xed assets and the payment of debt pr1nc1pa1 but do not 1nclude the a110cat10n of cost such as deprec1at10n.
ModH1 ed Accrual Bas1s Account1ng
Under the mod1f1ed accrual bas1s. revenues should be recogn1zed 1n the account1ng per10d 1n wh1ch they become ava11ab1e and object1ve1y measurable as net current assets.
Normally, a revenue becomes ava11ab1e when 1t qua11f1es as an asset. There are at least two except10ns to th1s statement 1n wh1ch the asset 1s recogn1zed but the revenue 1s deferred.
1. Board of Educat10n po11cy - A budgetary po11cy may requ1re certa1n revenue to be deferred to a subsequent per10d (see balance sheet account 481).
2. Externally 1mposed restr1ct10ns - An external restr1ct10n may be 1mposed on the LEA, prec1ud1ng record1ng the 1ncrease 1n assets as revenue. For example. 1f an LEA rece1ves funds from a State or Federal agency to f1nance the operat10ns of a project 1n a subsequent year. the revenue should be deferred.

MAY 16. 1986. ISSUE

PAGE. 29-5

GEORGIA FINANCIAL ACCOUNTING HANDBOOK
PAR"' I I

PRINCIPLES OF ACCOUNTING (CONTINUED)
Revenues are considered objectively measurable if the amount can be reasonably determined. Some revenues considered measurable are:
extended tax levies
State and Federal claims
Tuition rates extended by the number of tuition students served
Interest income projections
Some revenues which generally are not considered susceptible to accrual include income taxes and sales taxes since the amount to be collected cannot be adequately determined.
Property taxes generally are measurable and should be accrued when available.
In applying the available and measurable criteria to Federal, State and other grants, the terms of each grant must be reviewed. If expenditure of monies is the prime factor in determining grant eligibility, the revenue should be recognized at the time of recording the expenditure.
Expenditure should be recognized, under the modified accrual basis, when the liability is incurred. For the liability to be incurred, the service must be performed or the goods received in satisfactory condition. Normally, the expenditure is accrued when goods or services are received or repairs completed and the invoice is received.
Some exceptions or alternatives to the above criteria include:
Principal and interest on general long-term debt are recognized only in the fiscal year when due.
Inventory items such as supplies may be considered expenditure either when purchased or when used.
If the unused inventory not expended is significant, it should be reported on the balance sheet.
Expenditure which are prepaid for insurance and similar services extending over more than one accounting period may be allocated between accounting periods or may be recognized in the period of acquisition.

MAY 16, 1986, ISSUE

PAGE 29-b

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART II

PRINCIPLES OF ACCOUNTING (CONTINUED)
As previously indicated, all accounting activity illustrated in this handbook is based on either the accrual or modified accrual basis of accounting, as appropriate.
SUMMARY
1. Generally accepted accounting principles (GAAP) are standards for accounting and reporting. GAAP applicable to governmental organizations are published by the National Council on Governmental Accounting.
2. The basis of accounting refers to the point in time at which transactions are recognized in the accounting system.
3. In cash basis accounting, financial transactions are recognized only when cash is taken in or paid out.
4. In accrual basis accounting,revenues are recognized when they are earned and expenditures are recognized when goods are consumed or services rendered.
5. The modified accrual basis of accounting is used for governmental funds. On this basis, revenues are recognized when they are available and objectively measurable and expenses are recognized when a liability is incurred.

MAY 16, 1986, ISSUE

PAGE 29-7

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART II

CHAPTER 32
EXPENDITURE AND DISBURSEMENT ACCOUNTING
Expend1tures are decreases 1n assets or 1ncreases 1n 11ab111t1es that decrease the fund equ1ty. D1sbursements are decreases 1n cash. Some d1sbursements, but not all, are expend1tures. Under the mod1f1ed accrual bas1s of account1ng, an LEA may 1ncur expend1tures w1thout d1sburs1ng cash (e.g. a port1on of teachers' sa1ar1es earned dur1ng the school year, are not pa1d unt11 July and August). At the end of June, the amount owed these teachers 1s recorded as Accrued Sa1ar1es (461) and as an expend1ture (01-1000-110). Conversely, d1sbursements can be made wh1ch are not expend1tures. For example, when the teachers' payroll checks are d1str1buted 1n July and August, the Accrued Sa1ar1es (461) account 1s deb1ted (reduced) and cash 1s cred1ted.
Account1ng procedures used w1th expend1tures generally are d1v1ded 1nto three major subsystems: payroll, purchas1ng and pay1ng vendors, and 1nventory. M1sce11aneous d1sbursements wh1ch are not expend1tures generally are handled through the vendor payment process. Payroll account1ng procedures w111 be d1scussed 1n Chapter 33. Inventory and property account1ng w111 be d1scussed 1n Chapter 34. Th1s chapter 111ustrates the procedures for process1ng purchase orders and pay1ng vendors.
PROCESSING PURCHASE ORDERS
In the larger LEA's, purchas1ng generally 1s handled centrally. The request to purchase an 1tem 1s made on a purchase regu1st1on, wh1ch prov1des the purchas1ng agent w1th the fo110w1ng 1nformat10n:
Name and department of person request1ng the purchase
Nature and quant1ty of the 1tem(s) to be purchased
Preferred vendor, or recommended source
Pr1ce quoted (1f ava11ab1e)
Date 1tem(s) needed
Account number(s) (1.e. - budget 1tem to be charged)

MARCH 1, 1985, ISSUE

PAGE 32-1

GEORGIA FINANCIAL
ACCOUNTING HANDBOOK PART II

EXPENDITURE AND DISBURSEMENT ACCOUNTING (CONTINUED)
Purchas1ng Procedures
Upon rece1pt of the requ1s1t1on, the purchas1ng agent may elect to follow any of a number of procedures depend1ng upon the s1ze of the purchase, whether the 1tem(s) should be purchased 1n quant1ty, whether the 1tem(s) 1s (are) already 1n stock and local purchas1ng po11c1es.
A purchase order someth1ng 11ke the one on the follow1ng page 1s 1ssued once the dec1s1on 1s made on what vendor(s) to use, the quant1ty and pr1ce of the 1tems to be purchased, and all the necessary terms of purchase have been determ1ned.
Note that the sample purchase order has a pre-pr1nted sequent1al number. Also shown are the vendor name and address, de11very and b1111ng addresses, order 1nformat1on, the date of 1ssuance and the appropr1ate account1ng d1str1but1on.
After the purchase order 1s 1ssued, cop1es are d1str1buted to the requ1s1t1on1ng department, the rece1v1ng po1nt, and the account1ng department. An add1t1onal copy 1s f11ed 1n the purchas1ng department 1n alphabet1cal sequence, by vendor name (for follow-up). On the rece1v1ng copy the quant1t1es and pr1ces are not shown.

MARCH 1, 1985, ISSUE

PAGE 32-2

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART II

EXPENDITURE AND DISBURSEMENT ACCOUNTING (CONTINUED)

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MARCH 1. 1985. ISSUE

PAGE 32-3

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART II

EXPENDITURE AND DISBURSEMENT ACCOUNTING (CONTINUED)
Rece1v1ng Procedures
As goods or serv1ces are rece1ved. another process 1s set 1n mot10n. The goods are 1nspected and accepted or rejected. If accepted. the rece1v1ng copy of the purchase order 1s 1n1t1aled. the quant1ty rece1ved entered and the form returned to purchas1ng to be matched w1th the purchase order and the vendor's 1nv01ce. When all these documents are present. the 1nv01ce 1s approved for payment.
As soon as the 1nv01ce 1s approved. two events take place:
1. The check 1s 1ssued.
2. The expend1ture 1s entered 1n the Comb1ned Journal (DE Form 1108 or DE Form 0461).
EXPENDITURE ACCRUALS
The mod1f1ed accrual bas1s of account1ng should be used for governmental funds.
In FY 86. accruals w111 be requ1red whenever mater1als and/or serv1ces are rece1ved. Payroll 1tems w111 not be accrued unless the amounts w111 show up on federal and state complet10n reports to be furn1shed to the Georg1a Department of Educat10n.
Expend1tures should be accrued dur1ng the month. as soon as the 11ab111t1es are 1ncurred. and the amount 1s known. As a m1n1mum. accruals should be made at the end of each month for all transact10ns where the goods or serv1ces have been rece1ved. These accruals should be recorded on the Comb1ned Journal (DE Form 1108 or DE Form 0461) and 1n the General Ledger. so that monthly year-to-date f1nanc1al reports on the mod1f1ed accrual bas1s can be made d1rectly from the General Ledger.
To accomp11sh monthly accruals. a rev1sed comb1ned journal (DE Form 0461) has been developed. The use of th1s form 1s d1scussed 1n other chapters of th1s handbook.

MARCH 1. 1985. ISSUE

PAGE 32-4

GEORGIA FINANCIAL
ACCOUNTING HANDBOOK PART II

EXPENDITURE AND DISBURSEMENT ACCOUNTING (CONTINUED)

Listed below are some of the expenditures typically accrued in an LEA.

Account Description

Balance Sheet Account

Supplies

421

Contracts

431

Salaries and Benefits (Accrued only if funds

have been earned)

461

Some typical accrual transactions with the proper Journal entr1es are shown below.

1. June 25, 1986, an invoice is received in the amount of $44.00 for a typewriter repair. Typewriter is located in the High School Principal's Office.

2. June 30, 1986, an 1nvo1ce for supp11es for which expense was accrued at the end of last month is paid. This was for the bus1ness off1ce and 1s for $400.00.

3. June 30, 1986, teachers' salaries in the amount of $8,800.00 for the Chapter 1 program is accrued at fiscal year end.

MARCH 1, 1985, ISSUE

PAGE 32-5

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART II

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;1'1:

GEORGIA FINANCIAL ACCOUNTING HANDBOOK
FOR LOCAL SCHOOL SYSTEMS
PART III
FINANCIAL MANAGEMENT
GEORGIA DEPARTMEN1 OF EDUCATION AlLANIA, GEORGIA

JULY 1. 1984, ISSUE

PAGE 49--1

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PAR1 II I

PART 111 TABLE OF CONTENTS FINANCIAL MANAGEMENT

DESCRIPTIONS

CHAPTER

PROCEDURE FOR PREPARATION AND APPROVAL OF THE BUDGET

55

PROCEDURE FOR AMENDING THE BUDGET

56

BUDGETS FOR SYSTEMS IN DEFICIT

57

PROCEDURE FOR PREPARATIONS AND APPROVAL OF FINANCIAL REPORTS

58

SPECIAL REPORTING FOR SYSTEMS IN DEFICIT

59

APPLICABLE STATE LAW, STATE BOARD POLICY, EXECUTIVE PROCEDURES,

AND STATE BOARD REGULATIONS

60

ILLUSTRATION OF TENTATIVE BUDGET ADVERTISEMENT

61

ILLUSTRATION OF PUBLISHER'S CERTIFICATION OF BUDGET ADVERTISEMENT

62

STATE BOARD REGULATIONS AND PROCEDURES PERTAINING TO LOCAL SYSTEM

BUDGETS AND FINANCIAL REPORTS

63

GENERAL INFORMATION

70

BUS REPLACEMENT FUNDS

71

CESAs

72

DEPRECIATION AND JOINT HAZARD RESERVE FUNDS

73

EQUIPMENT ACQUIRED WITH FEDERAL FUNDS

74

INDIRECT COSTS

75

INSTRUCTIONAL EQUIPMENT

76

INSTRUCTIONAL MEDIA AND MATERIALS

77

INVESTMENT ACCOUNTING AND INTEREST EARNED ON CHECKING ACCOUNTS

78

LEAVE

79

SCHOOL FOOD AND NUTRITION PROGRAMS' FUNDS

80

OCTOBER 19, 1983, REVISION SEPIEMBER 1, 1983, ISSUE

PAGE 111-1

GEORGIA FINANCIAL
ACCOUNTING HANDBOOK PART III

!lESCRI PTlONS

PART III TABLE OF CONTENTS (CONTINUED)

SELF-INSURANCE EMPLOYEE BENEFIT FUND ACCOUNTING FOR PAYROLL DEDUCTIONS ACCOUNTING REQUIREMENTS FOR SPECIFIC FEDERAL PROGRAMS EQUIPMENT INVENTORY CONTROLS RECOMMENDED PURCHASING PROCEDURES CASH MANAGEMENT AND INVESTMENTS TRAVEL REGULATIONS FINANCIAL REVIEWS AND AUDITS TRANSITION FROM CASH BASIS ACCOUNTING TOWARD
DOUBLE ENTRY MODIFIED ACCRUAL BASIS ACCOUNTING (FY 83 TO FY 84) DESCRIPTIONS FOR "NO. OF POSITIONS ALL FUNDS" ON DE FROM 0046 LOCAL EFFORT WOR1HY FISCAL GOALS ILLUSTRATION OF CESA INTERNAL SERVICE FUND PROFIT
AND LOSS STATEMENT FINANCIAL ADVISORY AND ASSISTANCE SECTION TERRITORIES FINANCIAL ADVISORY AND ASSISTANCE SECTION TERRITORIES
FOR SCHOOL FOOD AND NUTRITION AND CHILD CARE SCHOOL DISTRICT CASH MANAGEMENT FY 84 DEFINITIONS OF ITEMS ON DE FORM 0046 UNEMPLOYMENT INSURANCE COVERAGE E.C.I.A. CHAPTER 2 ACCOUNTING

CHAPTER
81
82
83 84
85 86 87 88
89 90 91
92
93 94
95
96
97
98
99

OCTOBER 19, 1983, REVISION SEPTEMBER 1, 1983, ISSUE

PAGE III-2

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART I II

PART 111 TABLE OF CONTENTS (CONTINUED)
DESCRIPTIONS TRANSI TION FROM FY 84 TO FY 85 INSTRUCTIONS FOR DE FORM 1108 (COMBINED JOURNAL) REVIEWS AND AUDITS ACCOUNTING FOR DEPRECIATION AND JOINT HAZARD RESERVE FUNDS QUESIIONS AND ANSWERS ABOUT HANDLING OF SCHOOL FOOD AND
NUTRITION EQUIPMENT USE OF SCHOOL NUTRITION PROGRAM OPERATING FUNDS ACCOUNTING BY MIGRANT EDUCATION AGENCY FISCAL AGENTS GEORGIA SALES AND USE TAX (SCHOOLS) E.C.I.A. CHAPTER 1 ACCOUNTING AND REPORTING LEA REAL ESTATE TRANSFER TAX ACCOUNTING (RESERVED FOR FUTURE CHAPTER) (RESERVED FOR FUTURE CHAPTER) VOIDING OR WRITING OFF OUTSTANDING CHECKS PROCEDURES FOR CLOSING MONTHLY FINANCIAL RECORDS SAMPLES OF LOCAL PLANS FOR SELF INSURED EMPLOYEE BENEFIT FUNDS

-CH-AP-TE-R 100
102 103
104 105 106 107 108 109 110
112 113 114

REVISED: OCTOBER 19, 1983 SEPTEMBER 1,1983, ISSUE

PAGE 111-3

GEORGIA FINANCIAL ACCOUN1ING HANDBOOK PART 111

PART III TABLE OF CONTENTS FINANCIAL MANAGEMENT
DESCRIPTIONS PART III TABLE OF CONTENTS NON-CERTIFICATED HEALTH INSURANCE ACCOUNTING INTERNAL SERVICE FUND ACCOUNTING ACCOUNTING FOR PREPAID TEACHER RETIREMENT SAMPLE ILLUSTRATION OF LEAVE FUND PLAN PROCEDURE FOR PREPARATION AND APPROVAL OF THE BUDGET PROCEDURE FOR AMENDING THE BUDGET BUDGETS FOR SYSTEMS IN DEFICIT PROCEDURE FOR THE PREPARATION AND APPROVAL OF FINANCIAL REPORTS SPECIAL REPORTING FOR SYSTEMS IN DEFICIT (DE FORM 0396) (RESERVED FOR NEW MATERIAL LATER) ILLUSTRATION OF TENTATIVE BUDGET ADVERTISEMENT ILLUSTRATION OF PUBLISHER'S CERTIFICATION OF BUDGET ADVERTISEMENT STATE BOARD REGULATIONS AND PROCEDURES PERTAINING TO LOCAL SYSTEM
BUDGETS AND FINANCIAL REPORTS (RESERVED FOR NEW MATERIAL LATER) CAPITAL PROJECTS ACCOUNTING BUS REPLACEMENT FUNDS CESAs DEPRECIATION AND JOINT HAZARD RESERVE FUNDS

BEGINNING PAGE 50-1 51 - 1 52-1 53-1 54-1 55-1 56-1 57-3 58-1 59-1 60-1 61-1 62-1
63-1 64- 1 70-1 71-1
72-7
73-1

JULY 1, 1986

PAGE 50-1

GEORGIA FINANCIAL
ACCOUNTING HANDBOOK PART II I

PART III TABLE OF CONTENTS (CONTINUED)
DESCRIPTIONS EQUIPMENT ACQUIRED WITH FEDERAL FUNDS INDIRECT COSTS EXPENDITURE CLASSIFICATIONS BY POSITION (EFFECTIVE 7/1/86) INSTRUCTIONAL MEDIA AND MATERIALS INVESTMENT ACCOUNTING AND INTEREST EARNED ON CHECKING ACCOUNTS LEAVE ACCOUNTING FOR SALARY ACCRUALS SELF-INSURANCE EMPLOYEE BENEFIT FUND ADMINISTRATION OF PAYROLL DEDUCTIONS (RESERVED FOR NEW MATERIAL LATER) (RESERVED FOR NEW MATERIAL LATER) RAILROAD EQUIPMENT TAX ACCOUNTING FOR POSTSECONDARY TUITION FEES TRAVEL REGULATIONS (RESERVED FOR NEW MATERIAL LATER) ACCOUNTING FOR POSTSECONDARY STUDENT SUPPLY/LAB FEES COMBINED JOURNAL (DE FORM 0461) LOCAL EFFORT (PRIOR TO FY 87) QBE LOCAL FAIR SHARE (EFFECTIVE FY 87) WORTHY FISCAL GOALS ILLUSTRATION OF CESA INTERNAL SERVICE FUND PROFIT
AND LOSS STATEMENT FINANCIAL REVIEW SECTION TERRITORIES

BEGINNING PAGE
74-1
75-1 76-1
77-1
78-1 79-1 80-1 81-1 82-1 83-1 84-1 85-1 86-1 87-1 88-1 89-1 90-1 91-1 91A-1 92-1
93-1 94-1

JULY 1, 1986

PAGE 50-2

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART III

PART III TABLE OF CONTENTS (CONTINUED)
DESCRIPTIONS SAMPLE ILLUSTRATION OF GENERAL FUND
MONTHLY FISCAL YEAR-TO-DATE REPORT (DE FORM 039&) SCHOOL DISTRICT CASH MANAGEMENT (RESERVED FOR NEW MATERIAL LATER) UNEMPLOYMENT INSURANCE COVERAGE E.C.I.A. CHAPTER 2 ACCOUNTING (RESERVED FOR NEW MATERIAL LATER) INSTRUCTIONS FOR DE FORM 1108 (COMBINED JOURNAL) REVIEWS AND AUDITS ACCOUNTING FOR DEPRECIATION AND JOINT HAZARD RESERVE FUNDS (RESERVED FOR NEW MATERIAL LATER) (RESERVED FOR NEW MATERIAL LATER) INSTRUCTIONS FOR COMPLETING EDA P000090-R STATEMENT OF STATE FUNDS RECEIVED AND SPENT FOR INSTRUCTIONAL AIDES (FISCAL YEAR 1985) GEORGIA SALES AND USE TAX (SCHOOLS) E.C.I.A. CHAPTER 1 ACCOUNTING AND REPORTING LEA REAL ESTATE TRANSFER TAX ACCOUNTING
PLANNING & ISSUING GENERAL OBLIGATION SCHOOL BONDS
DEBT SERVICE (BOND SINKING FUND ACCOUNTING) VOIDING OR WRITING OFF OUTSTANDING CHECKS PROCEDURES FOR CLOSING MONTHLY FINANCIAL RECORDS

BEGINNING PAGE
95-1 9&- 1 97-1 98-1 99-1 100-1 101 - 1 102-1 103-1 104-1 105-1
10&-1 107-1 108- 1 109-1 110-1
"1 -1
112- 1 113-1

JULY 1. 198&

PAGE 50-3

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART II I

PART III TABLE OF CONTENTS (CONTINUED)
DESCRIPTIONS SAMPLES OF LOCAL PLANS FOR SELF-INSURED EMPLOYEE BENEFIT FUNDS REVENUE RECEIPTS AND NON-REVENUE RECEIPTS TAX ON HEATING OIL BORROWING WITH AD VALOREM TAXES AS SECURITY (RESERVED FOR NEW MATERIAL LATER) INSTRUCTIONAL EQUIPMENT FUND ACCOUNTING PROCEDURES FOR MIGRANT EDUCATION AGENCY ACTIVITIES
THROUGH MEA FISCAL AGENTS AND LOCAL EDUCATION AGENCIES ACCOUNTING FOR INDIRECT COSTS FOR FEDERALLY ASSISTED PROGRAMS THE FINANCIAL AREA OF A SUPERINTENDENCY CHANGE SAMPLE ILLUSTRATION OF LETTER TO LOCAL COMMISSIONER OF REVENUE EQUIPMENT INVENTORY CONTROL PROGRAM (RESERVED FOR NEW MATERIAL LATER) INTERFUND TRANSFERS, TRANSACTIONS BETWEEN SYSTEMS, AND MONIES
RETURNED TO THE GEORGIA DEPARTMENT OF EDUCATION (RESERVED FOR NEW MATERIAL LATER) (RESERVED FOR NEW MATERIAL LATER) TRANSITION FROM FY 86 (APEG) TO FY 87 (QBE) QBE PROGRAM ACCOUNTING ACCOUNTING FOR EXTENDED DAY/EXTENDED YEAR SALARIES

BEGINNING PAGE 114-1 115-1 116-1 117-1 118-1 119-1
120-1 121-1 122-1 123-1 124-1 125-1
126-1 127-1 128-1 129-1 130-1 131-1

JULY 1, 1986

PAGE 50-4

GEORGIA FINANCIAL
ACCOUNTING HANDBOOK PART III

CHAPTER 51
NONCERTIFICATED PERSONNEL HEALTH INSURANCE ACCOUNTING
Georg1a Code Sect10n 20-2-918 allows local school systems to part1c1pate 1n health 1nsurance for noncert1f1cated personnel. Th1s 1nsurance coverage 1s adm1n1stered by the Georg1a State Mer1t System, and 1s s1m11ar to the ex1st1ng health 1nsurance coverage for teachers and other cert1f1cated personnel. The Mer1t System elected to make the effect1ve date for coverage of noncert1f1cated personnel January 1, 1985.
All persons who are covered by the Pub11c School Employees Ret1rement System, such as Bus Dr1vers, School Food Serv1ce Employees, and Transportat10n Personnel w111 be e11g1ble 1f the local school system elects to part1c1pate. Other employees such as Paraprofess10nals, Classroom A1des, Adm1n1strat1ve and Cler1cal Personnel are also e11g1ble, prov1ded the employee 1s not employed on an emergency or temporary bas1s and the employee works at least 60 percent of the t1me requ1red to carry out the dut1es of such pos1t10n or a m1n1mum of twenty hours per week, wh1chever 1s greater. E11g1ble employees can cont1nue coverage upon ret1rement, prov1ded the school system elects to fully part1c1pate, and they have been enrolled for at least one month pr10r to ret1rement (therefore, no person who ret1res pr10r to February 1, 1985, 15 e11g1ble).
The cost and benef1ts for covered employees w111 be the same as those for teachers.
Th1s 1nsurance program 1s one 1n wh1ch the employer's port10n 1s shared by both the state (approx1mately 38%) and the local educat10nal agenc1es (approx1mately 37%). The employee's port10n w111 be approx1mately 25%.
The State Mer1t System w111 b111 the school systems per10d1cally at the current rate (presently $52 per part1c1pant per month), plus the requ1red monthly employee contr1but10ns. Federal regulat10ns state that employee benef1ts (fr1nge benef1ts) 1n the form of employer's contr1but10ns are proper, prov1ded that such benef1ts are granted under approved budgets and are d1str1buted equ1tably to grant programs and to other act1v1t1es. Th1s means that each fund must be charged for 1ts appropr1ate port10n of the employer cost. However, the Attorney General has ruled that ne1ther state compensatory educat10n funds nor state k1ndergarten funds may be used to prov1de the local system's shar~ of the health 1nsurance prem1um for non-cert1f1cated employees. The table at the end of th1s chapter sumrnar1zes the var10us categor1es of a1de grants and how the funds may be used.
When deduct10ns are made on payrolls, account numbers for Group Health Insurance Payable (XX-475) should be cred1ted for the total deduct10ns for each fund affected.
When a check 1s wr1tten to the Georg1a State Mer1t System, the Group Health Insurance Payable accounts must be cleared w1th deb1ts (charges) to the var10us funds (XX-475). The employer port10n of th1s check must be deb1ted to XX-6000-210 (Group Health Insurance-Employer Cost).

APRIL 1, 1985, REVISION MARCH 25, 1985, ISSUE

PAGE 51-1

GEORGIA FINANCIAL
ACCOUNTING HANDBOOK PART III

NONCERTIFICATED PERSONNEL HEALTH INSURANCE ACCOUNTING (CONTINUED)
A school system may elect to pay any port1on they choose of the coverage normally pa1d by the employee. In th1s case, the system would deb1t both the $52 per month per 1nd1v1dual and the add1t1onal employer contr1but1on to XX-6000-210.
On the next page, you w111 f1nd a summary of the "Account1ng For State A1de Grants."

APRIL 1, 1985, REVISION MARCH 25, 1985. ISSUE

PAGE 51-2

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART III

~ONCERTIFICATED PERSONNEL HEALTH INSURANCE ACCOUNTING (CONTINUED)

ACCOUNTING FOR STATE AIDE GRANTS

AIDES FOR

LEGAL BASIS

HEALTH OTHER SALARY RETIREMENT INSURANCE BENEF ITS

l. Klndergarten GA Code Sectlon Aldes Yes

Yes

No

No

20-2-153

Approprla-

t10ns Act

2. Transporta- Approprla-

Teachers Yes

Yes

tlon funds t10ns Act

Aldes Yes

Yes

to extend

Klndergarten

day.

Yes

No

No

No

3. Grade 1

GA Code Sectlon Aldes Yes

No

and 2

20-2-157

Approprla-

t10ns Act

No

No

4. Compensatory GA Code Sect10n Teachers Yes

Yes

Educat10n 20-1-163

Aldes Yes

Yes

Grants

Approprla-

t10ns Act

Yes

Yes

No

Yes

MARCH 25, 1985, ISSUE

PAGE 51-3

GEORGIA FINANCIAL
ACCOUNTING HANDBOOK PART II I

.J

CHAPTER 52

INTERNAL SERVICE FUND ACCOUNTING

1. Enterprise Funds and Internal Service Funds are classified as proprietary
funds. One of the major differences between accounting for proprietary funds
and for governmental funds is the treatment of sales, purchases for resale,
cost of sales, and inventories. Unlike the other fund types, proprietary fund types should be largely "self-financed". In other words, a significant proportion of the revenues of the fund are derived from user charges. Since Enterprise Funds (School Food and Nutrition Funds) are covered in other chapters of this handbook, this chapter will cover only Internal Service Funds.

2. The most common example of Internal Service Funds among Georgia local
educational agencies is CESA Cooperative Purchasing Funds. School systems
which operate central warehousing or maintenance operations where users are
charged for goods or services should account for these activiti~s in an Internal Service Fund. NOTE: Internal Service Funds should not be used to account for charges by a
school system to the individual schools of that system, since in this case the reported revenues of the Internal Service Fund would not be revenues to the
school system as a whole.

3. At the beginning of Fiscal Year 1985, before any transactions for the year are posted, the only accounts in the ledger which have balances should be the
balance sheet accounts: Assets (Cash, Accounts Receivable, Inventory for
Resale, etc.), liabilities (Accounts Payable, etc.), and Fund 8alance. These account balances would have been carried forward from the previous fiscal year.

4. When items are purchased for resale, the cost is debited to account
65-5500-890 (Cost of Sales). The corresponding credit is to account 65-421 (Accounts Payable), No entries are made during the year to the Inventory for Resale account (65-172). NOTE: Internal Service Funds may use either a periodic inventory system or a perpetual inventory system. In a periodic inventory system, a physical
inventory is taken at the end of the year and the accounting records are adjusted to reflect the physical inventory values. In a perpetual inventory
system, a continuous inventory record is maintained, and adjusted at least once a year to reflect physical inventory values. This physical inventory should be done at year end if possible.

5. When items from inventory are sold, 65-101 (Cash) or a receivable account
(65-132, 141, or 153) is debited, and Other Sources (65-5995) is credited. It is important to segregate revenue received for sales from revenue received for providing services. Revenue for sales is credited to 65-5995, revenue for
providing services is credited to 65-1950.

6. At the end of the Fiscal Year, accrual entries should be made to record any accounts receivable (and related revenues) and accounts payable (and related expenditures).

JULY 1, 1984 ISSUE

PAGE 52-1

GEORGIA FINANCIAL ACCOUNTING HAND800K PART III

INTERNAL SERVICE FUND ACCOUNTING (CONTINUED)

1. After year-end accruals are made, the Inventory for Resale account
(65-112) is adjusted to reflect the actual value of the inventory at June 30. A physical inventory at year-end should be the basis for this adjustment. If a perpetual inventory system is used, the year-end value according to the perpetual inventory system is used for this adjustment. Those Internal Service Funds which use a perpetual inventory system should conduct a physical inventory at some time during the year (preferably at year-end) and adjust the perpetual inventory records to agree with the physical inventory.

8. At the close of business on June 30, the balance in the Cost of Sales account (65-5500-890) will reflect the cost of all items purchased for resale
during the year. The following entries are made at year-end to adjust the inventory account and calculate the Cost of Sales:

65-5500-890 (Cost of Sales) 65-112 (Inventory for Resale)

xxx.xx xxx.xx

65-112 (Inventory for Resale) 65-5500-890 (Cost of Sales)

xxx.xx xxx.xx

After these entries are made, the Cost of Sales account (65-5500-890) will
reflect the cost of all goods sold during the year, and the Inventory for Resale account (65-112) will reflect the value of the year-end inventory.

9. After the entries described in Paragraphs 1 and 8 are made, all Revenue accounts and all Expenditure accounts are closed to the Fund Balance account. (either 65-198 or 65-199). The Cost of Sales account (65-5500-890) is also closed into Fund Balance, in the same manner as an expenditure account.

10. The account descriptions and definitions in this handbook (Chapter 6) provide accounts for Contributed Capital (xx-121), Reserved Retained Earnings (xx-130), Unreserved Retained Earnings (xx-140), and Reserve for Inventories (xx-151) in the Fund Equity section. The use of these accounts is not required for Fiscal Year 1985; however, their use will provide a more accurate
picture of a fund's financial position than the required accounts. If these optional accounts are used, the year-end closing procedure would be as follows:

Incoming Transfers from Other Funds (65-5200) would be closed to the Contributed Capital account (65-121).

Other revenues and expenditures would be closed to the Unreserved Retained Earnings account (65-140).

JULY 1, 1984 ISSUE

PAGE 52-2

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART I II

INTERNAL SERVICE FUND ACCOUNTIN' (CONTINUED)
After this procedure is completed, a Reserve for Inventory should be estiblished in either the Reserved Retained Earnings account (&5-730) or the Reserve for Inventories account (&5-751). This reserve should be equal to the Inventory for Resale balance (&5-172) as of the end of the year. This account is set up by debiting Retained Earnings or Fund Balance and crediting Reserved Retained Earnings or Reserve for Inventories.

JULY 1, 1984 ISSUE

PAGE 52-3

GEORGIA FINANCIAL ACCOUNTING HANDlOOK PART III

CHAPTER 53

ACCOUNTING FOR PREPAID TEACHER RETIREMENT

S1nce the Leg1s1ature appropr1ated funds to the Teacher Ret1rement System 1n advance to pay a major port1on of local school systems' teacher ret1rement costs for FY 87, 1t 1s necessary that local school systems establ1sh and l1qu1date a prepa1d ret1rement account. A suggested method for account1ng for these funds 1s as follows:

When QBE checks are d1sbursed by the Georg1a Department of Educat10n beg1nn1ng 1n July, 1986, the monthly check amount w111 be reduced by 1/12th of the total Local Fa1r Share and 1/12th of the total prepa1d Teacher Ret1 rement.

The entr1es for record1ng the Revenues, Prepa1d Teacher Ret1rement and Local Fa1r Share are:

Acct. No.

Descr1pt1on

Deb1t

CredH

100-0000-0101-000
100-4010-3140-000 100-4090-0199-000
100-1011-3120-000 100-1021-3120-000
100-1031-3120-000
100-1041-3120-000 100-1111-3120-000
100-2011-3120-000 100-2111-3120-000 100-2211-3120-000 100-3011-3120-000
100-1210-3120-000 100-1310-3120-000
100-0000-3120-000

Check Amount (Cash)
Local Fa1r Share (1/12) Prepa1d T. Ret1rement (1/12)
K1ndergarten
Grades 1-3 Grades 4-8
Grades 9-12 Secondary General Lab Spec1al Educat10n
G1fted Remed1al Secondary Vocat1onal Lab Staff Development
Med1a Centers
Other QBE Grants

XXX,XXX.OO
XXX,XXX.OO XXX,XXX.OO

XXX,XXX.OO XXX,XXX.OO XXX,XXX.OO XXX,XXX.OO XXX,XXX.OO XXX,XXX.OO XXX,XXX.OO XXX,XXX.OO XXX,XXX.OO XXX,XXX.OO XXX,XXX.OO XXX,XXX.OO

Total Deb1ts Equal Total CredHs

XXX,XXX.OO XXX,XXX.OO

JULY 21, 1986

PAGE 53-1

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART I II

ACCOUNTING FOR PREPAID TEACHER RETIREMENT (CONTINUED)
The total 11ab111ty to the Teacher Ret1rement System w111 be calculated on the rem1ttance adv1ce from the ret1rement system as 1n the past. The only d1fference for FY 87 1s that you w111 not subm1t a check for the employer's contr1but10ns but you w111 wr1te a check for the employee contr1but10ns.
Start1ng 1n July 1986 as 1n the past. the var10us Teacher Ret1rement (Employer Match1ng) Expend1tures Accounts 1n all Funds/Programs/Funct10ns w111 be deb1ted. The cred1t entry (equal to the Total Deb1ts) w111 be to the Prepa1d Teacher Ret1rement (Asset Account Number 0199). When a check 1s wr1tten for employee w1thhold1ng the 11ab111ty account 0473 w111 be deb1ted.
If you are ma1nta1n1ng separate bank accounts for ECIA Chapter I. their port10n of the Teacher Ret1rement Match1ng w111 also be cred1ted to the Prepa1d Teacher Ret1rement Account Number 100-4090-0199-000. The ECIA Chapter I Fund would also need to re1mburse the General Fund for the employer's Teacher Ret1rement amounts.
For the months of July and August. ret1rement expend1tures w111 be for locally pa1d salar1es and supplements (no entry requ1red for the State's share). The entry should be recorded to Fund/Program/Funct10n/Object. as an unclass1f1ed program expend1ture. The cred1t for the above entr1es w111 be to account 100-4090-0199-000 (Other Current Assets).
Beg1nn1ng 1n September. 1986 the full amount of the employer's share of ret1rement should be d1str1buted to fund/program/funct10n/object. The cred1t for the above entr1es should be to Account 100-4090-0199-000 (Other Current Assets). It 1s probable that Account 100-4090-0199-000 (Other Current Assets) w111 have a cred1t balance because the deb1ts from the QBE checks w111 be smaller than the cred1ts result1ng from your monthly ret1rement calculat10ns for the employer's share; however. the account w111 zero out by the end of the f1scal year.

JULY 21. 1986

PAGE 53-2

GEORGIA FINANCIAL
ACCOUNTING HANDBOOK PART III

ACCOUNTING FOR PREPAID TEACHER RETIREMENT (CONTINUED)

The account mlght look somewhat as follows:

100-4090-0199-000 PREPAID TEACHER RETIREMENT ($372,000)

DATE 7/31/86 7/31/86 8/31/86 8/31/86 9/30/86 9/30/86 10/30/86 10/30/86 11/30/86 11/30/86 12/31/86 12/31/86 1/31/87 1/31/87 2/28/87 2/28/87 3/31/87 3/31/87 4/30/87 4/30/87
5/31/87 6/30/87

ITEM GDE CHECK T R REPORT (APEG) GDE CHECK T R REPORT (APEG) GDE CHECK T R REPORT (QBE) GDE CHECK T R REPORT (QBE) GDE CHECK T R REPORT (QBE) GDE CHECK T R REPORT (QBE) GDE CHECK T R REPORT (QBE) GDE CHECK T R REPORT (QBE) GDE CHECK T R REPORT (QBE) GDE CHECK $48.000 T R REPORT
LESS $16.000 CASH GDE CHECK GDE CHECK

DEBIT 31, 000.00 31, 000.00 31,000.00 31,000.00 31, 000.00 31,000.00 31,000.00 31, 000 .00 31, 000.00 31, 000.00

CREDIT
2,000.00
2,000.00
'I- GOC'. DO
48,000.00
. ~A cve-.C C
48,000.00
10.(..1, () c.c.. .DO
48,000.00
/ 'f9 ooc;., .DC.
)
48,000.00 ''7'-, ceo ~. c-
48,000.00
2-o,I'~> cc.-c c,C
48,000.00
;;J.. 9::l.ce-o .G C
48,000.00
:3 >--C". 6 ~o. c... l-

BALANCE DR OR CR AMOUNT DR 31, 000.00 DR 29,000.00 DR 60,000.00 DR 58,000.00 DR 89,000.00 DR 41,000.00 DR 72,000.00 DR 24,000.00 DR 55,000.00 DR 7,000.00 DR 38,000.00 CR 10,000.00 DR 21,000.00 CR 27,000.00 DR 4,000.00 CR 44,000.00 CR 13,000.00 CR 61,000.00 CR 30,000.00

32,000.00 CR 62,000.00

"5TJ-- OC6 C;,6

31, 000.00

)

CR 31, 000.00

31, 000.00

DR

NONE

JULY 21. 1986

PAGE 53-3

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART II I

ACCOUNTING FOR PREPAID TEACHER RETIREMENT (CONTINUED)

Every t1me you cred1t 100-4090-0199-000, you also are deb1t1ng var10us Teachers Ret1rement expend1ture accounts (Object 200).

In the above 111ustrat1on, the local school system w111 f1nd 1t necessary to 1ssue a check for $16,000 1n Apr11, 1987 to the Teacher Ret1rement System for the employer's contr1but1on. If
the l1ab111ty stays the same, the above school system would be 1ssu1ng checks for May, and June 1n the amount of $48,000 each month to the Teacher Ret1rement System and cred1t1ng Cash
(100-0000-0101-000). The total cash d1sbursed dur1ng FY 87 would be $112,000 as follows:

Aprl1, 1987 May, 1987 June, 1987

$ 16,000 48,000
48.000 $112,000

The total expend1tures for Teacher Ret1rement match1ng dur1ng FY 87 would be $484,000 as follows:

July, 1986

$ 2,000

August, 1986

2,000

September, 1986 48,000

October, 1986 48,000

November, 1986 48,000

December, 1986 48,000

January, 1987 48,000

February, 1987 48,000

March, 1987

48,000

Apr1l, 1987

48,000

May, 1987

48,000

June, 1981

48.000

$484,000

The net d1fference between the total l1ab111ty for employer's share to the Teacher Retirement System for FY 81 ($484,000) and cash d1sbursed ($112,000) is the amount of the prepayment
($372,000).

JULY 21, 1986

PAGE 53-4

GEORGIA FINANCIAL ACCOUNTING HAN&BOOK PART III

CHAPTER 54 SAMPLE ILLUSTRATION OF LEAVE FUND PLAN
PINETREE COUNTY BOARD OF EDUCATION ALLOCAliON PLAN: LEAVE FUND
1. A "Leave Fund" will be established as a Separate fund. This fund will be used to pay substitutes for employees who are absent from work due to sickness or for personal and professional reasons as provided by law, and to pay the employer's portion of social security on substitutes paid out of Leave Fund.
2. Each fund will pay $180.00 per employee to the Leave Fund annually based on the number of employees on the payroll as of September 30.
3. The contribution rate may be adjusted at the beginning of any fiscal year if necessary to keep the fund solvent.
SAMPLE ILLUSTRAllON

FEBRUARY 7, 1984, ISSUE

PAGE 54-1

GEORGIA FINANCIAL ACCOUNTING HANDBOOK
PART I II

CHAPTER 55 PROCEDURE FOR PREPARATION AND APPROVAL OF THE BUDGET Budgets for county schools systems, city school systems, CESA's and AVTS boards are prepared in accordance with provisions of the Adequate Program for Education in Georgia Act, on forms furnished by the Georgia Department of Education. After the local board has tentatively adopted a budget, it must be advertised in form and manner prescribed by the local board, at least one time in a newspaper of general circulation in the local unit of administration. At the next regular meeting of the local board after the advertisement, the local board revises the tentative budget as necessary and adopts a final school budget. If the local board decides to consider the budget at a special meeting, the date, time and place of the special meeting should be included in the advertisement. The local board should not adjourn a meeting at which it considers final adoption of the budget until the final budget is adopted; if additional time is needed. the local board should recess the meeting with a resolution to resume consideration of the budget on a certain date and time and at a certain place. When the budget is finally adopted. an original copy of the approved budget document is forwarded to the Financial Review Section. Georgia Department of Education on or before July 25. The copy of the approved budget document must be accompanied by a clipping of the budget advertisement and a certified statement by the publisher of the newspaper in which the ad appeared. as to the date and page on which the ad appeared.

AUGUST 1, 19B3

PAGE 55-1

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART III

PROCEDURE FOR PREPARATION AND APPROVAL OF THE BUDGET (CONTINUED) ILLUSTRATION OF PUBLISHER'S CERTIFICATION OF BUDGET ADVERTISEMENT

This is to certify that a budget for the Pine Tree County Board of Education for the fiscal year ending June 30. 1983. was advertised in the Pine Tree County Telegram on May 23. 1983. on Page 6.

(Signed)

(Pub1i sher)

Sworn to and subscribed before me this

___ day of

19

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Notary.

********************

**

SAMPLE

**

** ILLUSTRATION **

*

*

********************

AUGUST 1. 1983

PAGE 55-2

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART III

CHAPTER 56
PROCEDURE FOR AMENDING THE BUDGET
A local school system's annual budget may need to be amended because of an ant1c1pated 1ncrease or decrease 1n budget 1tems.
Local boards of educat10n and/or boards of control can amend any t1me two or more 1tems need to be changed but the FINANCIAL REVIEW SECTION of the GEORGIA DEPARTMENT OF EDUCATION does not requ1re that all of these changes be subm1tted to 1t and formally approved by FINANCIAL REVIEW SECTION staff members.
However, 1t 1s 1mportant that budgets be constantly mon1tored by local school boards and, 1f any two or more General Fund ser1es totals of ant1c1pated budget amounts vary as much as f1ve percent (5%), 1t 1s 1mperat1ve that 1nformat10n be subm1tted to the FINANCIAL REVIEW SECTION of the GEORGIA DEPARTMENT OF EDUCATION so that the staff can or1g1nate a formal budget amendment. Funds other than the General Fund can be amended by local school boards and/or boards of control w1thout subm1tt1ng a budget amendment request to the GEORGIA DEPARTMENT OF EDUCATION.
The term "General Fund ser1es totals" refers to categor1es of revenues, expend1tures beg1nn1ng w1th July 1, 1986, on budget forms (DE FORM 0046) and 1ncludes the follow1ng:
Total General Fund Local Revenues (Ser1es 100-1000) (On Page 3.2 of DE FORM 0046)
Total General Fund State Revenues (Ser1es 100-3400) (On Page 3.4 of DE FORM 0046)
Total General Fund Federal Revenues (Ser1es 100-4000) (On Page 3.5 of DE FORM 0046)
Total General Fund Rece1pts From Other Sources (Ser1es 100-5000)(On Page 3.6 of DE FORM 0046)
Total General Fund Expend1tures For Instruct10n (Ser1es 100-1000-000) On Page 3.8 of DE FORM 0046)

JULY 1, 1986, ISSUE

PAGE 56-1

GEORGIA FINANCIAL
ACCOUNTING HANDBOOK PART III

PROCEDURE FOR AMENDING THE BUDGET (CONTINUED)
Total General Fund Expenditures For Pupil Services (Series 100-2100-000) (On Page 3.10 of DE FORM 0046)
Total General Fund Expenditures For Improvement of Instructional Services (Series 100-2210-000) (On Page 3.12 of DE FORM 0046)
Total General Fund Expenditures for Educational Media (Series 100-2220) (On Page 3.14 of DE Form 0046)
Total General Fund Expenditures For General Administration (Series 100-2300-000) (On Page 3.16 of DE FORM 0046)
Total General Fund Expenditures For School Administration (Series 100-2400-000) (On Page 3.18 of DE FORM 0046)
Total General Fund Expenditures For Business Services (Series 100-2500-000) (On Page 3.20 of DE FORM 0046)
Total General Fund Expenditures For Maintenance &Operation of Plant
(Series 100-2600-000) (On Page 3.22 of DE FORM 0046)
Total General Fund Expenditures For Student Transportation Services (Series 100-2700-000) (On Page 3.24 of DE FORM 0046)
Total General Fund Expenditures For Support Services - Central (Series 100-2800-000) (On Page 3.26 of DE FORM 0046)
Total General Fund Expenditures For Other Support Services (Series 100-2900-000) (On Page 3.28 of DE FORM 0046)
Total General Fund Expenditures For School And Community Nutrition Serv\ees (Series 100-3100-000) (On Page 3.30 of Of FORM 0046)
Total General Fund Expenditures For Other Operations of Noninstruction.l Services (Series 100-3900-000) (On Page 3.32 of DE FORM 0046)
Total General Fund Expenditures For Facilities Acquisition And Construct'\on Services (Series 100-4000-000) (On Page 3.34 of DE FORM 0046)
Total General Fund Disbursements For Other Uses (Series 100-5000-000) (On Page 3.35 of DE FORM 0046)
Total General Fund Expenditures For Debt Services (Series 100-5100-000) (On Page 3.35 of DE FORM 0046)

JULY 1. 1986. ISSUE

PAGE 56-2

GEORGIA FINANCIAL ACCOUNTING HAttOBOOK PART II I

PROCEDURE FOR AMENDING THE BUDGET (CONTINUED)
In submlttlng a request for a General Fund BUdget Amendment, wrlte or call the FINANCIAL REVIEW SECTION (Phone 404/656-2447) and glve to one of the Flnanclal Revlew Staff members the page numbers, the account numbers or ltem numbers that need changlng, the budgeted amounts before maklng the changes and the bUdgeted amounts after maklng the changes. Be sure the budget tles ln before and after the bUdget amendment. The amounts you request amended are lndlvldual line ltems and not serles totals.
On recelvlng the request to amend the General Fund, The FINANCIAL REVIEW SECTION wlll process the request, develop a General Fund Budget Amendment and forward three coples to the local school system for verlflcatlon and slgnatures of the Superlntendent/RESA Dlrector and the local board chalrman. These offlclals should slgn the document only after a majorlty of a quorum of the local board have voted to approve the General Fund Budget amendment. The orlglnal and one copy should then be returned to the FINANCIAL REVIEW SECTION of the GEORGIA DEPARTMENT OF EDUCATIQN. When the amendment has been further processed by the GEORGIA DEPARTMENT OF EDUCATION, the FINANCIAL REVIEW SECTION wlll approve both coples and return one copy to the local school system to be flled wlth the system's offlclal copy of the budget. If General Fund Budget Amendment requests are recelved late ln the flscal year, the FINANCIAL REVIEW SECTION may elect to flle them ln thelr records for Itlnformatlon only".
It should be emphaslzed that a local board may amend any fund whenever lt deslres but lt ls only when the General Fund needs amendlng that the FINANCIAL REVIEW SECTION of the GEORGIA DEPARTMENT of EDUCATION needs to be lnformed.
A sample lllustratlon of a budget amendment ls shown on the next two pages of thls handbook.

JULY 1, 1986, ISSUE

PAGE 56-3

GEORGIA FINANCIAL
ACCOUNTING HANDBOOK PART III

ccr..-:..
.-.<...

GENERAL FUND BUDGBT MBNDtIBNT

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Georgia Depart.ent of Bducation

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Financial Review Section

1554 TWin Towers East

Atlanta. Georgia 30334 This is our request that you approve a General Fund Budget Amendment for our school system to change budget accounts

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in accordance with the attached reconcil..-nt.
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Very truly yours.
sU~ PBiUiiTBND<Ca OUiftY3 /CITYCSYS~ TBM)
OR DIR8C'lOR (RESA BOARD)



DIISCIlIP'fION

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(arPRR 'ftIIS

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TUL-)" ~ 19 g,

ACCOUNT

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NUMBBR
SOURCE/
FUNC'l'ION OBJBCT

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AND BBO OF FY FUND BQUITY ADJUSTMBNTS

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AND OTHER SOURCES

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USES

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FISCAL YEAR FUND
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DB FORM 0777 (JULY 1. 1986)

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CHAPTER 57 BUDGETS FOR SYSTEMS IN DEFICIT
If a school system begins a fiscal year'with a deficit of one or more mills, the budget for that year must anticipate the elimination of at least the equivalent of one mill; that is to say, a system in deficit must reserve at least one mill of the total levy set for the reduction of the deficit. If a system begins a fiscal year with a deficit of less than one mill, the budget for that year must provide for the elimination of the deficit during that same fiscal year.
If a school system begins the fiscal year with a deficit and finds that it is impossible to eliminate the deficit by the end of the same fiscal year, it must submit a uDeficit Financing Elimination PlanU for approval by the Financial Review Section. The uPlanD must be signed by the superintendent and a majority of the local board members for that school system. Upon approval it is attached to and becomes a part of the budget for that fiscal year.

JULY 1, 1983

PAGE 57-1

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART I II

CHAPTER 58 PROCEDURE FOR PREPARATION AND APPROVAL OF FINANCIAL REPORTS Annual financial reports for county school systems, city school systems, CESA's and AVTS boards are prepared and submitted to the Financial Review Section by July 25 following the June 30 closing of the fiscal year, on forms provided by the Georgia Department of Education. The present form number is DE FORM 0046 and a set of this form consists of several pages.
I
The Financial Reveiw Section should be called at (404) 656-2447 if local school system personnel have Questions about the forms or if the local school system needs technical assistance from the Georgia Department of Education.
A copy of the financial report is transmitted to the Georgia Department of Audits by the Georgia Department of Education and that set is usually used by the auditors to begin their audit.

JULY 1, 1983

PAGE 58-1

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART III

CHAPTER 59
SPECIAL REPORTING FOR SYSTEMS IN DEFICIT
local school systems in deficit must file a monthly General Fund Financial
Report (DE FORM 0396) with the Financial Review Section. This monthly report
is required until the local system has been out of deficit for one full year
unless it ends a fiscal year with an operating reserve of at least 10% of the
local M&0 taxes and/or appropriations collected during a calendar year.
Only eleven reports are due each fiscal year as follows:
(1) Report for July 1 - July 31 (Due August 25) (2) Report for July 1 - August 31 (Due September 25) (3) Report for July 1 - September 30 (Due October 25) (4) Report for July 1 - October 31 (Due November 25) (5) Report for July 1 - November 30 (Due December 26) (6) Report for July 1 - December 31 (Due January 25) (7) Report for July 1 - January 31 (Due February 25) (B) Report for July 1 - February 2B (Due April 25) (9) Report for July 1 - March 31 (Due April 25) (10) Report for July 1 - April 30 (Due May 25) (11) Report for July 1 - May 31 (Due June 25)
The final financial report for the fiscal year will be the annual financial report and will be submitted on a set of DE FORM 0046.

JULY 1, 19B3

PAGE 59-1

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART III

CHAPTER 61 ILLUSTRATION OF TENTATIVE BUDGET ADVERTISEMENT

TENTATIVE BUDGET FOR ALL FUNDS PINE TREE COUNTY BOARD OF EDUCATION
JULY 1, 19XX THROUGH JUNE 30, 19XX

Ant1c1pated Revenues And July 1, 19XX. Fund Equ1ty:
Local Taxes And/Or Appropr1at1ons Other Local Sources of Revenue State And Federal Sources Other Sources (Includ1ng Bonds) Fund Equ1ty (July 1, 19XX)
Ant1c1pated Expend1tures And June 30, 19XX, Fund Equ1ty:
Instruct10n Pup1l Serv1ces Improvement of Instruct1onal/Staff Serv1ces Educat10nal Med1a Serv1ces General Adm1n1strat1on Serv1ces School Adm1n1strat1on Serv1ces Bus1ness Serv1ces Ma1ntenance and Operat1on of Plant Serv1ces Student Transportat1on Serv1ces Support Serv1ces (Central/Other) School and Commun1ty Nutr1t1on Serv1ces Other Operat1ons of Non-Instruct1onal Serv1ces Fac1l1t1es Acqu1s1t1on/Construct1on Other Uses Debt Serv1ce Fund Equ1ty (June 30, 19XX)

***************

**

SAM P L E

**

* ILL U S T RAT ION *

** * * * * * * * * * * * * * **

989,078.22 110,305.75 4,387,944.52 153,684.03 278,964.48 5,919,977 .00
3,476,032.47 25,085.78 28,097.40 52,000.00 88,682.22
107,321.88 482,977.00 400,000.00 111,237.79 15,000.00 200,600.00
5,000.00 300,000.00
1,000.00 253,261.68 373,680.78 5,919,977.00

MAY 9, 1986, ISSUE

PAGE 61-1

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART II I

CHAPTER 62 ILLUSTRATION OF PUBLISHER I S CERTIFICATION OF BUDGET ADVERTISEMENT

This is to certify that a budget for the Pine Tree County Board of Education for the fiscal year ending June 30, 1984, was advertised in the Pine Tree County Telegram on May 23, 1983, on Page 6.

(Signed) _ _-=-.....,.....,_,...--:--

_

(Publisher)

Sworn to and subscribed before me this

___ day of

19

______________ Notary.

****************

**

SAMPLE ILLUSTRATION

**

****************

JULY 2, 1983

PAGE 62-1

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART III

CHAPTER 63
STATE BOARD REGULATIONS AND PROCEDURES PERTAINING TO LOCAL SYSTEM BUDGETS AND FINANCIAL REPORTS
1. Budgets for county systems, c1ty schools systems, and reg10nal educat10nal serv1ce agenc1es shall be prepared 1n accordance w1th the prov1s10ns of the Qua11ty Bas1c Educat10n Act.
2. After the local board has tentat1vely adopted a budget, such budget must be advert1sed 1n form and manner to be prescr1bed by the local board, at least one t1me 1n a newspaper of general c1rculat10n 1n the local un1t of adm1n1strat10n. At the next regular meet1ng of the local board after advert1sement, the local board shall rev1se the budget as necessary and adopt a f1nal school budget. If the budget 1s to be cons1dered at a spec1al local board meet1ng (a meet1ng other than the next regular board meet1ng), the date, t1me, and place of the spec1al meet1ng should be placed 1n the advert1sement. The local board should not adjourn a meet1ng that cons1ders a f1nal adopt10n of the budget unt1l the f1nal budget 1s adopted. If add1t10nal t1me 1s needed for any reason, the local board should recess w1th a resolut10n that the cons1derat10n of the budget w1ll be resumed on a certa1n date and t1me and at a def1n1te place.
3. An or1g1nal set of the f1nal approved budget shall be forwarded to the Georg1a Department of Educat10n, F1nanc1al Rev1ew Sect10n, w1th1n 60 days after rece1pt of allotment sheets or July 25, wh1chever 1s the latest date. It w1ll also be necessary for the local school systems to send to the Georg1a Department of Educat10n a c11pp1ng of the budget advert1sement and a cert1f1ed statement by the local pub11sher as to the date and page on wh1ch the advert1sement appeared.
4. Th1s budget 1s 1ntended to be a careful est1mate of ant1c1pated revenues for a f1scal year and a proposed plan for spend1ng these funds.
5. Est1mated expend1tures shall be class1f1ed accord1ng to law and State Board po11cy, and actual expend1tures must be w1th1n budget est1mates unless budgets are changed by amendments processed through the usual channel.
6. An or1g1nal set of the annual f1nanc1al report for county school systems, c1ty school systems, and RESAs shall be f1led by July 25 follow1ng the June 30 clos1ng of the f1scal year on forms prov1ded by the Georg1a Department of Educat10n.
7. The budget from each school system shall 1nclude funds for payment of any ant1c1pated beg1nn1ng of f1scal year ob11gat10ns except those wh1ch may be author1zed by law to extend beyond a s1ngle f1scal year.

JULY 1, 1986, ISSUE

PAGE 63-1

GEORGIA FINANCIAL
ACCOUNTING HANDBOOK PART II I

STATE BOARD REGULATIONS AND PROCEDURES (CONTINUED)
8. A local school system budget wh1ch 1s not 1n balance shall not be approved by the State Board of Educat10n or by the Georg1a Department of Education. In order that state funds can be transmitted for the fiscal year, a balanced budget must have been transmitted to the Georgia Department of Education for approval by the State Board of Education.
9. The practices of local school system boards of education and local system superintendents in operating under their approved annual budgets shall be subject to review at any time by representatives of the Georgia Department of Education.
10. All financial operations of school systems of the state shall be conducted in conformity with the budgeting and accounting practices prescribed by law and State Board of Education policies.
11. When monies are advanced to a local school system, separate fund accounting is required but not necessarily a separate bank account.
12. Program accounting is required for State defined QBE programs.
13. All payments of state funds to local school systems must be withheld until reports required by state law and the State board have been filed with the Department of Education. Reports not filed by the designated date will be considered in arrears until they are on file.
14. Local school systems of the State must not use general operating funds for the cost of physical examinations for teachers.
15. Local school systems with def1c1ts must f11e a monthly DE Form 0396 report with the Financial Rev1ew Section of the Georgia Department of Education. This monthly report shall be required until the local school system is out of debt for one full fiscal year. However, any school system that ends a
fiscal year with an operating reserve of at least 10% of the local M&0
taxes and/or appropriations collected during the previous fiscal year shall not be required to submit monthly financial reports to the Georgia Department of Education.
16. State law prohibits deficit financing. Therefore, the State Board of Education will not approve budgets for local school systems anticipating a deficit at the end of a fiscal year if funds are included for the general operation of the school for personnel above the State FTE generated a allotments.
17. If a school system begins a fiscal year with a deficit and that school system finds that it is impossible to eliminate the deficit by the end of the same fiscal year, the school system must submit a "Deficit Financing Elimination Plan " to be attached to and made a part of the budget for that fiscal year. The Plan must be signed by the superintendent and a majority of the local board members for that school system.

JULY 1, 1986, ISSUE

PAGE 63-2

GEORGIA FINANCIAL
ACCOUNTING HANDBOOK PART I II

STATE BOARD REGULATIONS AND PROCEDURES (CONTINUED)
18. If a school system beg1ns a f1sca1 year w1th a def1c1t of less than one effect1ve m111, the budget for that f1scal year must ant1c1pate the e11m1nat10n of the def1c1t before the end of that same f1scal year.
19. If a school system beg1ns a f1scal year w1th a def1c1t of one or more effect1ve m111s, the budget for that f1scal year must ant1c1pate the e11m1nat10n of at least the equ1valent of one effect1ve m111. Th1s does not mean that a school system, must or could, 1ncrease the1r levy one effect1ve m111 over the prev10us levy set the year before. It means that a school system w1th a def1c1t of one or more effect1ve m111s must reserve at least one effect1ve m111 for the reduct10n of the def1c1t. The school system should set the levy as needed to take care of 1nflat10n and all other 1ncreases requ1red.
20. If a local school system 1s sett1ng the max1mum H &0 m111age levy allowed by law, then that school system must reduce ant1c1pated expend1tures on the budget unt11 the revenue from the max1mum levy plus all other revenues w111 cause the def1c1t to be reduced or e11m1nated as out11ne above.
21. The State Board of Educat10n requ1res that county school systems that beg1n a f1scal year 1n def1c1t shall subm1t, on a t1mely bas1s, to the Assoc1ate State Super1ntendent of Schools for Adm1n1strat1ve Serv1ces, the follow1ng 1tems: (1) Budget, (2) Cert1f1ed Tax D1gest,
and (3) Proposed H &0 Tax Levy. W1th1n a max1mum of th1rty days,
follow1ng rece1pt of the foreg01ng 1tems, the Assoc1ate Super1ntendent shall adv1se 1n wr1t1ng the school system 1f the proposed H &0 tax levy 1s acceptable, and 1f not, what levy would be acceptable. No county
school system 1n def1c1t shall off1c1a11y set a H &0 m111age levy unt11
approval 1n wr1t1ng 1s rece1ved from the Assoc1ate State Super1ntendent. A copy of the cert1f1ed d1gest and the letter of H &0 levy author1zat10n shall be attached to and become a part of the f1sca1 year budget. C1ty school systems beg1nn1ng a f1sca1 year 1n def1c1t shall secure from c1ty off1c1als a schedule of month by month est1mates of taxes and/or appropr1at10ns for the school system and transm1t th1s schedule to the F1nanc1al Rev1ew Sect10n. A copy of th1s schedule shall be attached to and become a part of the f1scal year budget. All of the tax and/or appropr1at1on 1nformat10n shall be subm1tted on forms furn1shed by the F1nanc1al Rev1ew Sect10n, Georg1a Department of Educat10n.

JULY 1, 1986, ISSUE

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GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART III

STATE BOARD REGULATIONS AND PROCEDURES (CONTINUED)
22. When refunds of federal and/or state aud1t or rev1ew except10ns are drawn on appropr1ate local school system bank accounts, the check vouchers should show deta1led amounts that were quest10ned costs 1n the federal and/or state projects. Refund checks should be made payable to the Georg1a Department of Educat10n and sent to the Grants Management Sect10n, Georg1a Department of Educat10n. Unexpended funds for certa1n programs must be returned to the Georg1a Department of Educat10n, Account1ng Serv1ces.
23. When an area vocat10nal-techn1cal school 1s operated through a county or c1ty board of educat10n, a separate fund ent1tled "Post-Secondary Vocat10nal Fund" 1s requ1red as a separate column on the general budget and annual f1nanc1al reports of the local school system.
24. Local school systems (county and c1ty) that beg1n the f1scal year w1th a General Fund reserve of a least 20% of the pr10r f1scal year tax and/or appropr1at10n revenue 1n the General Fund may secure perm1ss10n from the F1nanc1al Rev1ew Sect10n of the Georg1a Department of Educat10n to ma1nta1n a m1n1mum of one bank account. However, a county system that has a Debt Serv1ce Fund must always ma1nta1n a spec1al bank account for the Deb1t Serv1ce account1ng as well as another bank account for all other funds. Before perm1ss10n can be granted, 1t w1ll be necessary to show the F1nanc1al Rev1ew Sect10n that the proper reserve 1s on hand at the beg1nn1ng of the f1scal year and also that all requ1red funds are ma1nta1ned properly 1n the local school system General Ledger.
25. Reg10nal Educat10n Serv1ce Agenc1es that beg1n a f1scal year w1th a General Fund reserve of at least 20% of the pr10r f1scal year state rece1pts 1n the General Fund may secure perm1ss10n from the F1nanc1al Rev1ew Sect10n to ma1nta1n a m1n1mum of one bank account. Before perm1ss10n can be granted, 1t w1ll be necessary to show the F1nanc1al Rev1ew Sect10n that all requ1red funds are ma1nta1ned 1n the RESA General ledger.

JULY 1, 1986, ISSUE

PAGE 63-4

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART III

STATE BOARD REGULATIONS AND PROCEDURES (CONTINUE.D)
26. Georg1a Code, 1979 Rev1s10n, Sect10n 87-701a, author1zes the 1nvestment of bond proceeds 1n the follow1ng secur1t1es: Bonds or ob11gat10ns of count1es, mun1c1pa11t1es, school d1str1cts, po11t1cal subd1v1s10ns, or of the State of Georg1a; bonds or other ob11gat10ns of the Un1ted States or of subs1d1ary corporat10ns of the Un1ted States Government 1ssued by the Federal Land Bank, the Federal Home Loan Bank, Federal Intermed1ate Cred1t Bank, and Central Bank for Cooperat1ves; bonds or other ob11gat10ns 1ssued by any pub11c hous1ng agency or mun1c1pa11ty 1n the Un1ted States (prov1ded the are fully secured as to the payment of pr1nc1pal and 1nterest); and cert1f1cates of depos1t of Nat10nal or state banks, Federal sav1ngs and loan assoc1at10ns and State bu11d1ng and loan assoc1at10ns located w1th1n the State of Georg1a wh1ch have depos1ts 1nsured by the Federal Sav1ngs and Loan Insurance Corporat10ns; prov1ded, however, that the port10n of such cert1f1cates of depos1ts 1n excess of the amount 1nsured, 1f any, shall be secured by depos1t w1th the Federal Reserve Bank of Atlanta, Georg1a, or w1th any Nat10nal or State bank located w1th1n the State of Georg1a, of one or more of the follow1ng secur1t1es 1n an aggregate pr1nc1pal amount equal at least to the amount of such excess: d1rect and general ob11gat1ons of the State of Georg1a, or of any county or mun1c1pa11ty 1n the State of Georg1a, ob11gat1ons of the Un1ted States or subs1d1ary corporat1ons of the Un1ted States Government descr1bed above or bonds, ob11gat10ns or project notes of pub11c hous1ng agenc1es, urban renewal agenc1es or mun1c1pal1t1es.
27. The Local Government Investment Pool Act, passed 1n 1980, author1zes school d1str1cts to 1nvest 1n the Local Government Investment Pool any funds "wh1ch are ava11able for 1nvestment and wh1ch are not requ1red by law or by any covenant or agreement w1th bondholders or others to be segregated and 1nvested 1n a d1fferent manner." (Quote from Georg1a Laws, 1980 Sess1on, Volume 1, Page 1715, Georg1a Code Sect10n 34-35). Add1t1onal 1nformat1on concern1ng the Local Government Investment Pool can be secured by contact1ng the state of Georg1a, Department of
Adm1n1strat1ve Serv1ces, f1scal D1v1s10n, P. o. box 38198, Cap1tol H111
Stat10n, Atlanta, Georg1a 30334.

JULY 1, 1986, ISSUE.

PAGE 63-5

GEORGIA fINANCIAL ACCOUNTING HANDBOOK PART III

CHAPTER 65
INTERPRETATION OF 15% RATIO OF FUND BALANCE .TO EXPENDITURfS AND CAPITAL ACCUMULATION ACCOUNTS PER QBE REVISER BILL, 1987

Senate Bill 179, Quality Basic Education Reviser Bill, Section 20-2-167, paragraph

(5) states, in part:

"Except as otherwise provided in this paragraph, all amounts allocated to

each fund or account and any existing balance in each fund or account

shall be intended for expenditure within the budget year for the purposes

of that fund or account. There shall be no fund or account in the nature

of a 'surplus' or unobligated surplus' fund or account. Each local

school system may, however, establish a single reserve fund or reserve

account intended to cover unanticipated deficiencies in revenue or

unanticipated expenditures, provided that the budget for any year shall

not allocate to such reserve fund or reserve account any amounts which,

when combined with the existing balance in such fund or account, exceed 15

percent of that year's total budget. A local school system may also

establish one or more capital accumulation funds or accounts, and amounts

may be allocated to such capital accumulation funds or accounts for

expenditure in future budget years only if the purpose for which such

amounts will be expended and the anticipated date of expenditure of such

amounts are clearly and specifically identified. The purpose of this

paragraph is to prohibit local school systems from accumulating surplus

funds through taxation without accounting to the taxpayers for how such

funds will be expended, and this paragraph shall be liberally construed to

accomplish this purpose."

.

Since the effective date of this legislation is July 1, 1987, its first application will be to the FY 89 budgets. The purpose of this chapter is to define the position of the Georgia Department of Education relative to the law and to provide guidance to school systems in preparation of budgets, giving
consideration to the ratio of the Unreserved Fund Balance to proposed expenditures. Monitoring for compliance will be conducted by the Financial Review Section of the department, effective July 1, 1988.

Section 20-2-167(5) allows school systems to establish a "s ingle reserve fund or reserve account intended to cover unanticipated deficiencies in revenue or unanticipated expenditures, provided that the budget for any year shall not allocate to such reserve fund or reserve account any amounts which, when combined with the existing balance in such fund or account, exceed 15 percent of that year's total budget." (The term "that year's total budget" refers to the amount of budgeted expenditures.) One purpose of the Unreserved Fund Balance (account 0799) is to "cover unanticipated deficiencies in revenue or unanticipated expenditures."

JULY 1988, ISSUE

PAGE 65-1

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART III

When each system's annual budget is received, the Financial Review staff will review the fund balance and expenditure totals of all funds reported on the "Statement of Changes in Fund Equities". If the projected fund balance exceeds 15 percent of budg~ted expenditures, Financial Review will contact the system to determine whether any part of the fund balance is expected to be reserved for a specific purpose or, if possibly, the budget can be modified to comply with SB179, Section 20-2-167(5).
Instructions for establishing reserves for specific purposes are found in the GEORGIA FINANCIAL ACCOUNTING HANDBOOK, PART III, Chapter 66.
In considering steps which might be taken to correct any projected excess Unreserved Fund Balance, the following possibilities might be considered:
A reduction in the millage rate, lowering the revenue from local taxes.
A thorough review of proposed expenditures to determine whether an increase in budgeted expenditures can be justified.
A review of the data used in calculating the projected Unreserved Fund Balance to determine whether amounts used are reasonably accurate.

CAPITAL ACCUMULATION FUNDS OR ACCOUNTS

An additional provision of the Bill allows school systems to:

Establish one or more capital accumulation funds or accounts for expenditure in future budget years only if the purpose for which such amounts will be
expended and the anticipated date of expenditures of such amounts are clearly and specifically identified.

The Department's interpretation of SB179, Section 20-2-167(5) is that permission is given to local school systems to set aside money for special purposes without
the purposes having to be "Capital Outlayll as the term is corrmonly known. The money to be set aside must be designated for a future expenditure. of which~e superintendent is reasonably certain.

When a decision has been made to establish a capital accumulation fund for a specific project, the following procedures should be followed:

To establish a Capital Accumulation Fund in the General Fund:

Fund lOX, Unreserved Fund Balance, 0799 Debit

Fund lOX. Reserve Fund Balance, 0798

Credit

To establish a separate accounting record in the Capital Projects Fund (Fund 300), assigning a sub-fund code for each project:

JULY 1988, ISSUE

PAGE 65-2

GEORGIA FINANCIAL ACCOUNTING HANDBOOK
PART III

A. Transfer the amount to be set aside from the General Fund to the

Capital Projects Fund, for each project:

Fund 100, Function 5000, Object 930 Debit

Fund 100. Cash Account 0101

Credit

Fund 30X, Cash Account 0101

Debit

Fund 30X, Other Sources Account 5200

Credit

B. Reserve the fund balance at the end of each fiscal year:

Fund 30X, Unreserved Fund Balance, 0799

Debit

Fund 30X, Reserved Fund Balance, 0798

Credit

Retain all documentation regarding each project in system files to support the entries in the accounting records.

If further assistance is needed with the above procedures, contact the Financial Review Section.

JULY 1988, ISSUE

PAGE 65-3

GEORGIA FINANCIAL ACCOUNTING HANDBOOK
PART III

CHAPTER 66
RES E R V E S
Chapter 65 of the Georgia Financial Accounting Handbook addresses SB 179, Section 20-2-167 (5), limitation of 15 percent ratio of Unreserved Fund Balance to Expenditures. In order that the term "Reserved Fund Balance" may be fully understood and related to the "Unreserved Fund Balance" as discussed in Chapter 65, it is appropriate to provide an explanation of the concept of "Reserves."
The term "Reserve" should be limited to indicate that a portion of a reported fund equity is (1) legally restricted to a special future use or (2) not available for appropriation or expenditure. Reserves should be reported as a part of fund equity.1
The key to the first type of reserve is the existence of a legal restriction earmarking resources for a specific future use. Examples of this type of reserve which might be applicable to Georgia's local school systems are:
Reserve for Debt Service (Debt Service Fund) - to reserve funds, as required, for payment of principal and interest on debt of the lUA and for payment of agent's fees.
Reserve for State Capital Outlay Projects (Capital Projects Fund) to reserve funds, by project, for approved capital outlay projects, at the time of approval.
Reserve for Bus Replacement (General Fund) - to reserve unused bus replacement funds at year-end. Beginning in FY 87, Bus Replacement funds are recorded in the General Fund and the balance available at June 30 each year must be reserved. The amount available is calculated as follows:
Beginning Balance, July 1, Current FY Plus Revenue July 1 - June 30, Current FY Minus Expenditures July 1 - June 30, Current FY Equals Balance Available
If the balance is a positive amount, it should be reserved in the General Fund. If the balance is a negative amount, you have expended all funds, no reserve would be established, and the beginning balance for the next fiscal year would be zero.
Reserve for Unobligated Grant Balance (Federal Programs) - to reserve unobligated grant balances due to Georgia Department of Education.

1 Governmental Accounting Standards Board and Government Accounting Research Foundation of the Government Finance Officers Association, Codification of
Governmental Accounting and Financial Reporting Standards, 1985, 1800.123, p. 53

JULY 1988 ISSUE

PAGE 66-1

GEORGIA FINANCIAL ACCOUNTING HANDBOOK
PART III

Reserve for Questioned Costs (By Auditors) - to reserve funds to be returned to Georgia Department of Education as a result of an audit finding. The refund to the Department should be remitted as soon as
a request is received from Grants Management. (This reserve should be established at the end of the fiscal year if the funds have not been remitted to Grants Management.)

Reserve for Endowment Principal (Trust Fund) - to reserve the investment principal. Earnings on the investment are not reserved.
(Trust documents should be reviewed for any possible restrictions.)

The second type of reserve is intended to indicate that the portion of the fund balance represented by particular reported assets does not represent
"available spendable resources." Examples of this type of reserve are:

Reserve for Encumbrances (Any Fund) - to be used when purchase orders are encumbered. Instructions are in Georgia Financial Accounting Handbook, Part I, Pages 7-3 and 7-4.
Reserve for Inventories (General Fund or Enterprise Fund) Reserve for Fixed Assets (Any Fund) Reserve for Prepaid Insurance (Any Fund)

All reserves listed above except Reserve for Encumbrances should be recorded

in account 079B "Reserved Fund Balance." The "Reserve for Retained Earnings H

(0730) might be used in proprietary funds, such as Enterprise Fund (600) or

Internal Service Fund (650).

.

When establishing a reserve, the accounting entry is a debit to Unreserved Fund Balance (0799) and a credit to Reserved Fund Balance (0798) in the
appropriate fund.

JULY 1988 ISSUE

PAGE 66-2

GEORGIA FINANCIAL ACCOUNTING HANDBOOK
PART II I

CHAPTER 70
CAPITAL PROJECT ACCOUNTING
A system may apply annually for state cap1tal outlay funds 1f 1t has suff1c1ent state ent1tlement and local funds for 1ts project or projects. Projects must be subm1tted 1n pr1or1ty order as approved 1n the most recent local fac111t1es plan. A school system must prov1de the requ1red local part1c1pat1on wh1ch shall be 25 percent of the e11g1ble project cost as mod1f1ed by the local ab111ty 1ndex and annual debt serv1ce. No local un1t's requ1red local part1c1pat1on can be less than 10 percent, nor greater than 25 percent of the cost of an e11g1ble construct1on project. State-generated funds cannot be used for requ1red local part1c1pat1on.
In add1t1on to the 10 to 25 percent requ1red local part1c1pat1on, a system may have an add1t1onal amount that must be supp11ed due to one or more of the follow1ng cond1t10ns:
(1) The project total amount 1ncludes add1t10nal local funds, necessary to fund the project, 1n excess of state ent1tlements and requ1red local part1c1pat10n.
(2) The Leg1s1ature funds the project at a lower level of ent1tlement wh1ch requ1res an add1t10nal local amount 1n order to fund the project.
(3) The project 1ncludes 1n 1ts spec1f1cat10ns 1tems 1n excess of state cr1ter1a such as space for athlet1c act1v1t1es, overs1zed classrooms, unearned classrooms, etc.
In any and all of the above 1nstances, the local board must have on hand as of June 30 of the f1scal year 1n wh1ch the app11cat10n 1s funded by the Leg1s1ature for the next f1scal year, the amount of local funds needed to equal the total project amount when added to appropr1ated state funds. These funds must be 1n the cap1tal outlay account and des1gnated by project name and number.
If your system 1s not currently class1fy1ng Cap1tal Projects Fund transact10ns by 1nd1v1dual project, procedures should be 1mplemented 1mmed1ately to correct th1s def1c1ency. Your 1986 f1nanc1al records should be corrected retroact1vely to July 1,1985, 1f necessary.
If your account1ng records were not ma1nta1ned by 1nd1v1dual GSFIC projects and/or grant programs for the f1scal year ended June 30, 1985, you should 1mmed1ately prepare supplementary analyses (by GSFIC project 1dent1f1er and/or other grant program) of each amount reported 1n the Cap1tal Projects Fund column, Fund 03, on the DE Form 0046 (Annual F1nanc1al Report).

JULY 3, 1986

PAGE 70-1

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART III

CAPITAL PROJECTS ACCOUNTING (CONTINUED)

This includes all revenues, expenditures, transfers and balance sheet accounts.
These analyses should be prepared prior to the commencement of your annual
audit for the year ended June 30, 1985. Any working papers you use to prepare these analyses should be retained and made available to the auditors. Failure to have this information available for the FY 85 and subsequent audits may possibly result in an audit finding or qualification of your financial statements.

This means that fund control must be maintained for each project. For instance, a school system might have have four active Capital Outlay projects as follows:

Project 1 Hazard And Depreciation Reserve

Project 2 FY 87 Project 1

Project 3 FY 87 Project 1

Project 4 FY 87 Project 2

If this is the case, each of the Capital Outlay Projects would be maintained as separate funds beginning July 1, 1984.

The opening entries might be the following:

Debit Cash (301-0000-0101-000)

XXX.XX

Debit Cash (302-0000-0101-000)

XXX.XX

Debit Cash (303-0000-0101-000)

XXX.XX

Debit Cash (304-0000-0101-000) Credit Reserved Fund Balance (301-0000-0798-000)

XXX.XX

xxx.xx

Credit Reserved Fund Balance (302-0000-0798-000)

XXX.XX

Credit Reserved Fund Balance (303-0000-0798-000)

XXX.XX

Credit Reserved Fund Balance (304-0000-0798-000)

XXX.XX

JULY 3, 1986

PAGE 70-2

GEORGIA FINANCIAL
ACCOUNTING HANDBOOK PART III

CAPITAL PROJECTS ACCOUNTING (CONTINUED)

As money 1s rece1ved from the General Fund dur1ng the f1sca1 year, entr1es should be made as follows:

Deb1t Cash (301-0000-0101-000)

xxx.xx

Deb1t Cash (302-0000-0101-000)

xxx.xx

Deb1t Cash (303-0000-0101-000)

xxx.xx

Deb1t Cash (304-0000-0101-000)

xxx.xx

Cred1t Incom1ng Transfers From General Fund (301-0000-5200-000)

xxx.xx

Cred1t Incom1ng Transfers From General Fund (302-0000-5200-000)

xxx.xx

Cred1t Incom1ng Transfers From General Fund (303-0000-5200-000)

xxx.xx

Cred1t Incom1ng Transfers From General Fund (304-0000-5200-000)

xxx.xx

As money 1s pa1d out dur1ng the f1sca1 year, entr1es should be made as follows:

Deb1t Bu11d1ng Acqu1s1t1on, Construct1on and Improvements (301-0000-4000-720)

xxx.xx

Deb1t Bu11d1ng Acqu1s1t1on, Construct1ve and Improvements (302-0000-4000-720)

xxx.xx

Deb1t Bu11d1ng Acqu1s1t1on, Construct1on and Improvements (303-0000-4000-720)

xxx.xx

Deb1t Bu11d1ng Acqu1s1t1on, Construct1on and Improvements (304-0000-4000-720)
Cred1t Cash (301-0000-0101-000)
Cred1t Cash (302-0000-0101-000) Cred1t Cash (303-0000-0101-000)
Cred1t Cash (304-0000-0101-000)

xxx.xx xxx.xx xxx.xx xxx.xx xxx.xx

Th1s type of project account1ng 1s much 11ke the account1ng for ECIA Chapter 1 Projects. You may have other entr1es but the pr1nc1p1e 1s the same. At the end of the f1sca1 year, a worksheet m1ght be needed to gather together entr1es for the DE Form 004& (Annual F1nanc1a1 Report).

JULY 3, 198&

PAGE 70-3

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART II I

CHAPTER 71
BUS REPLACEMENT FUNDS
1. Funds received for bus replacement must be accounted for in a separate Bus Replacement Fund. A separate bank account is not necessary but separate fund accounting is required.
2. The final APEG allotment sheet for the fiscal year indicates the minimum amount which must be transferred from the General Fund to the Bus Replacement Fund. In addition to this required transfer, monies derived from the salvage of old buses should be accounted for as a receipt in the Bus Replacement Fund.
3. Bus replacement funds, including any funds derived from the salvage of old buses, must be budgeted and spent only for the following:
a. The purchase (outright or by lease purchase agreement) of new buses.
b. Contracted transportation services.
c. School bus shop construction and shop equipment.
4. Any unexpended balance in the Bus Replacement Fund at the end of the
fiscal year is carried forward to the next year and should be reflected in the budget for that year.
5. The Bus Replacement Fund should not have a deficit fund balance at the end of the fiscal year. Transfers should be made from the General Fund as necessary to insure that the fund has a zero fund balance or a positive fund balance at the end of the year.

JULY 1, 1983

PAGE 71-1

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART III

CHAPTER 74
EQUIPMENT ACQUIRED WITH FEDERAL FUNDS
(1) Requirements relating to equipment.
In addition to federal and State requirements relating to equipment the essentials of an equipment inventory control program are included in this section.
(2) Equipment acquired with Federal funds.
Under United States Department of Agriculture (School Food And Nutrition Programs and Child Care Food Programs) regulations, "Equipment" is defined as tangible personal property having a useful life of more than two years and an acquisition cost of $500.00 or more.
Under United States Department of Education regulations, "Equipment" is defined as tangible personal property having a useful life of more than one year and an acquisition cost of $300.00 or more.
State programs could have other definitions for "Equipment".
In some Federal programs, when equipment is purchased by a school system using Federal funds for all or part of the cost, title to the equipment is vested in the school system; in other programs, the equipment belongs to the State Department of Education, while in others the Federal Government retains a residual interest in the equipment.
Equipment purchased in whole or in part with ECIA, Chapter 1 funds, for example, both are and are not the property of the local school system which purchased them. They are the property of the system as long as there is a need for the property to accomplish the purpose of the project under which the equipment was purchased; when the equipment is not longer needed in that project, the local system shall use the property in connection with other Federal projects, first with other Federal projects administered by the U. S. Department of Education and, secondly, with grants from other Federal agencies.
When the system which acquired equipment with ECIA, Chapter 1 funds no longer has need for the equipment in connection with any Federally-assisted project, the property may be used by the local system for its own official activities as follows:
A. Equipment with a unit acquisition cost of less than $1,000 may be retained, sold or otherwise disposed of without obligation to the Federal Government.

AUGUST 17, 1983

PAGE 74-1

GEORGIA FINANCIAL
ACCOUNTING HANDBOOK PART III

B. All other equipment purchased with ECIA. Chapter 1 funds may be retained or sold and the Federal Government shall have the right to an amount calculated by multiplying the current market value or proceeds from the sale by a percentage derived by dividing Federal funds used in the purchase of the equipment by the total cost of the equipment. If the equipment is to be retained. the current market value must be determined; the Financial Advisory and Assistance Section will provide assistance in making that determination and should be contacted.
If the equipment is to be sold. $100 or 10% of the total sales proceeds. whichever is greater, may be deducted and retained from the amount due the Federal government for selling and handling expenses.
If the project or program under which the equipment was acquired is still receiving grants funds, the amount due may be used for allowable costs of that project or program. If there is no current project or program, the amount due must be returned to the Georgia Department of Education.
As indicated above, different Federal rules apply to different Federal programs - to Migrant Education, to Vocational Educational. etc. Questions concerning the proper accounting for any equipment purchases or dispositions should be directed to the Financial Advisory and Assistance Section.
Federal law and regulations.
(Federal) Education Division General Administrative Regulations (EDGAR), 74.130-74.145. (Same as office of Management and Budget. Circular A 102, Attachment 0.)
(3) Instructional equipment.
In accordance with State law, the State Board of education grants funds to local school systems for the purchase, maintenance. repair and replacement of equipment for instructional laboratories and for special education classrooms.
Funds granted by the State Board to a local system must be accounted for by that system in a separate fund.
State law. State Board policy. executive procedures and State Board regulations.
State law; 32-614a State Board Policy: DFBB Executive Procedures: DFBB-EP Regulations: IFA

AUGUST 17, 19B3

PAGE 74-2

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART I II

CHAPTER 75
INDIRECT COSTS
Each local school system is required to submit to the State Department of Education either an indirect cost plan for Federally-assisted programs or written notification that such a plan will not be submitted. If an indirect cost plan is not submitted, indirect costs cannot be recovered at a later time.
In preparing the indirect cost plan, all costs from the general fund must be analyzed and categorized as: (a) unallowable, (b) indirect, or (c) direct.
Unallowable costs
Includes the salaries of the superintendent and his secretary, the fringe benefits for both positions, and other costs applicable to those positions, such as travel and office expenses. Also, any expenditures related to the local board of education, such as per diem and travel, are unallowable costs. Salaries of principals of the various schools, salaries of their clerical assistants, and their related office expenses, etc. all fall into this category of unallowable costs. In addition, such items as interest expenses and all other costs of general local government are considered as unallowable costs.
Indirect Cost
Includes the salaries and other expenditures for direction and control of system-wide activities. This, generally, would include the salaries and other expenses directly attributable to those personnel who have responsibilities in budgeting, payroll, personnel, and purchasing and would include assistant superintendents, business managers, bookkeepers, etc. This category may include such items as the salaries of clerical assistants, office expense, travel, contributions for social security, retirement, etc., and various insurance programs directly related to these positions. In preparing the restricted indirect cost plan, consider only administration and fixed charges as indirect costs. Operation and maintenance of plant may be considered indirect costs for the non-restricted cost plan.
Direct costs
Includes those costs which are neither unallowable costs or indirect costs. Salaries of associate and/or assistant superintendents who are assigned specific functions in one area or program, along with the salaries of their clerical assistants, and related items of cost would be considered direct costs. Salaries of project directors and their immediate clerical assistants are also considered direct costs. This would include the relevant portion of salaries of those persons whose positions are funded by more than one program.

APRIL 15, 1983

PAGE 75-1

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART III

INDIRECT COSTS (CONTINUED)

FORMULA FOR CALCULATING AN INDIRECT COST RATE

Indirect Costs
Unallowable Cost + Direct Cost

Indirect Cost Rate

Use of the Indirect Cost Rate

After an indirect cost rate has been submitted and a rate has been approved, the system then may charge indirect costs to Federal programs in accordance with the plan and the law and regulations of those programs. Within each program, indirect costs should be figured on each project separately.

The school system is required to use the approved indirect cost rate in all applications for Federal grants during the fiscal year to which the rate applies. The rate should be applied against the grand total. A check is to be written for the amount of the indirect cost calculated and the expenditure charged to the appropriate fund. The receipt should be credited in the general fund (since it is being reimbursed for expenditures previously made) as 4600 Indirect Cost.

Federal law and regulations.

Office of Management and Budget Circular A 87 (Issued 1/15/81).

APRIL 15, 1983

PAGE 75-2

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART III

CHAP1ER 76
CLASSIFICATION OF VARIOUS JOB POSITIONS (EFFECTIVE 7/1/86)
The classification of job positions is designed to promote statewide uniformity in reporting. The use of these classifications will improve comparability of reported data at all levels (local, state and federal). It should be understood that these are simply guidelines and are not mandatory for salary classification purposes. The re1ations1p between job titles and functional responsibility varies so much among school systems that a complete classification listing is impossible to produce.

INSTRUCTION CLASSROOM TEACHERS SUBSTITUTE TEACHERS
* AIDES/PARAPROFESSIONALS (CLASSROOM) * CLERK * SECRETARY * STENOGRAPHER
* Must directly assist teacher to be recorded here.
Job positions not listed should be coded as 1000-190.

1000-11 0
1000-11 0 1000-140 1000-142 1000-142 1000-142

PUPIL SERVICES
AIDES/PARAPROFESSIONALS
CLERK SECRETARY STENOGRAPHER GUIDANCE COUNSELORS
PSYCHOLOGIST
PSYCHOMETRIST VISITING TEACHER

2100-140 2100-142 2100-142
2100-142
2100-190 2100-190
2100-190 2100-190

Job positions not listed should be coded as 2100-190.

JULY 2, 1986, REVISION JULY 1, 1986, ISSUE

PAGE 76-1

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART I II

CLASSIFICATION OF VARIOUS JOB POSITIONS (lFFECTIVE 7/1/86) (CONTINUED)

SUPPORT SERVICES-IMPROVEMENT OF INSTRUCTIONAL SERVICES
AIDES/PARAPROFESSIONALS
CLERK SECRETARY STENOGRAPHER FEDERAL PROGRAMS - DIRECTOR SPECIAL EDUCATION - DIRECTOR STAFF DEVELOPMENT - DIRECTOR DRIVERS EDUCATION - DIRECTOR P.E. DIRECTOR VOCATIONAL EO. - DIRECTOR CURRICULUM DIRECTOR ROTC - DIRECTOR CONSULTANT - SPECIAL PROGRAMS COORDINATOR PROGRAM SPECIALIST

2210-140
2210-142
2210-142 2210-142 2210-190 2210-190 2210-190 2210-190
2210-190 2210-190
2210-190 2210-190 2210-190 2210-190
2210-190

Job pos1t1ons not 11sted should be coded as 2210-190.

SUPPORT SERVICES - EDUCATIONAL MEDIA SERVICES
CLERK LIBRARIANS
AIDES-LIBRARIAN SECRETARY STENOGRAPHER MEDIA SERVICES - DIRECTOR MEDIA SPECIALIST

2220-142
2220-190 2220-190 2220-142 2220-142 2220-190 2220-190

Job pos1t1ons not 11sted should be coded as 2220-190.

JULY 2, 1986, REVISION JULY 1, 1986, ISSUE

PAGE 76-2

GEORGIA FINANCIAL ACCOUNTING HANDBOOK
PART III

CLASSIFICATION OF VARIOUS JOB POSITIONS (EFFECTIVE 7/1/86) (CONTINUED)

GENERAL ADMINISTRATION
SUPERINTENDENT CESA DIRECTOR
RESA - DIRECTOR AVTS - DIRECTOR (FUND 460 ONLY) PER DIEM - BOARD MEMBERS CLERK SECRETARY STENOGRAPHER OFFICE MANAGER ADMINISTRATIVE ASSISTANT
* TREASURER
G.L.R.S. - DIRECTOR S..D. - DIRECTOR ADULT ED. DIRECTOR ASSISTANT SUPERINTENDENT ASSOCIATE SUPERINTENDENT DEPUTY SUPERINTENDENT

2300-120
2300-120
2300-120
2300-120 2300-130
2300-142 2300-142
2300-142
2300-190 2300-190 2300-190 2300-190 2300-190 2300-190 2300-190 2300-190 2300-190

Job pos1t10ns not l1sted should be coded as 2300-190.
* Depending on scope of job; may be more appropriate to 2500.

JULY 2, 1986, REVISION JULY 1, 1986, ISSUE

PAGE 76-3

GEORGIA fINANCIAL ACCOUNTING HANDBOOK PART II I

CLASSIFICATION OF VARIOUS JOB POSITIONS (EFFECTIVE 7/1/86) (CONTINUED)

SCHOOL ADMINISTRATION
CLERK SECRETARY STENOGRAPHE.R PRINCIPALS PRINCIPALS (ASSISTANT)

2400-142 2400-142 2400-142 2400-190 2400-190

Job pos1t1ons not 11sted should be coded as 2400-190.

SUPPORT SERVICES - BUSINESS CLERK SECRETARY STENOGRAPHE.R ACCOUNTING CLERK PAYROLL CLERK COMPTROLLER BUDGET/FINANCE OFFICER FISCAL SERVICES DIRECTOR SUPERVISOR BUSINESS AFFAIRS BUSINESS MANAGER CHIEF ACCOUNTANT ACCOUNTANT BOOKKEEPER INTERNAL AUDITOR PURCHASING DIRECTOR WAREHOUSE/DISTRIBUTION DIRECTOR
Job pos1t1ons not 11sted should be coded as 2500-190.

2500-142
2500-142 2500-142 2500-142 2500-142 2500-190 2500-190
2500-190 2500-190
2500-190 2500-190 2500-190 2500-190 2500-190 2500-190 2500-190

JULY 2, 1986, REVISION JULY 1, 1986, ISSUE

PAGE 76-4

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART III

CLASSIFICATION OF VARIOUS JOB POSITIONS (EFFECTIVE 1/1/86) (CONTINUED)

MAINTENANCE AND OPERATION OF PLANT SERVICES
CLERK SECRE.TARY STENOGRAPHER PLANT MAINTENANCE - DIRECTOR PLANT OPERATION - DIRECTOR PLANNING/CONSTRUCTION DIRECTOR SAFETY/SECURITY DIRECTOR AUDIO/VIDEO EQUIP. REPAIR SPECIALIST
JANITOR MAINTENANCE WORKERS

2600-142 2600-142 2600-142 2600-190 2600-190 2600-190 2600-190 2600-190 2600-190 2600-190

Job pos1t1ons not 11sted should be coded as 2600-190.

STUDENT TRANSPORTATION SERVICES
CLERK SECRETARY STENOGRAPHER BUS DRIVERS SUBSTITUTE DRIVERS TRANSPORTATION DIRECTOR
SAFETY DIRECTOR SUPERVISOR - MECHANICS MECHANICS

2100-142 2100-142 2100-142 2100-180 2100-180 2100-190
2-'00-190 2700-190 2100-190

Job pos1t1ons not 11sted should be coded as 2700-190.

JULY 2, 1986, REVISION JULY 1, 1986, ISSUE

PAGE 76-5

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART II I

CLASSIFICATION OF VARIOUS JOB POSITIONS (EFFECTIVE 1/1/86) (CONTINUED)

SUPPORT SERVICES - CENTRAL
CLERK SECRETARY STENOGRAPHER COMPUTER SERVICE COORDINATOR DATA PROCESSING MANAGER PUBLIC RELATIONS DIRECTOR PERSONNEL DIRECTOR SYSTEMS ANALYST COMPUTER PROGRAMMER COMPUTER OPERATOR SOFTWARE SPECIALIST DATA PROCESSING SUPERVISOR

2800-142
2800-142 2800-142 2800-190 2800-190 2800-190 2800-190 2800-190 2800-190 2800-190 2800-190 2800-190

Job pos1t1ons not 11sted should be coded as 2800-190.

OTHER SUPPORT SERVICES
CLERK SECRETARY STENOGRAPHER DIRECTOR

2900-142 2900-142
2900-142 2900-190

Job pos1t1ons not 11sted should be coded as 2900-190.

SCHOOL AND COMMUNITY NUTRITION SERVICES
CLERK SECRETARY STENOGRAPHER SCHOOL FOOD SERVICE SUPERVISOR SCHOOL NUTRITION - DIRECTOR SCHOOL NUTRITION - ASSISTANT DIRECTOR
SCHOOL NUTRITION - MANAGERS SCHOOL NUTRITION - ASSISTANT MANAGERS SCHOOL NUTRITION - WORKERS CASHIERS

3100-142
3100-142 3100-142
3100-190 3100-190 3100-190 3100-190
3100-190 3100-190 3100-190

Job pos1t1ons not l1sted should be coded as 3100-190.

JULY 2, 1986, REVISION JULY 1.1986. ISSUE

PAGE 76-6

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART III

CLASSIFICATION OF VARIOUS JOB POSITIONS (EFFECTIVE 1/1/86) (CONTINUED)

OTHER OPERATIONS OF NON INSTRUCTIONAL SERVICES
CLERK SECRETARY STENOGRAPHER ATHLETIC - DIRECTOR ADULT EDUCATION COORDINATOR COMMUNITY SCHOOL COORDINATOR MUSE.UM DIRECTOR

3900-142
3900-142
3900-142 3900-190
3900-190 3900-190 3900-190

Job pos1t1ons not 11sted should be coded as 3900-190.

FACILITIES ACQUISITION AND CONSTRUCTION SERVICE.S
CLERK SECRETARY
SHNOGRAPHER DIRECTOR ARCHIETECT ENGINEER CRAFTSMAN LABORER

4000-142
4000-142
4000-142 4000-190
4000-190
4000-190 4000-190 4000-190

Job pos1t1ons not 11sted should be coded as 4000-190.

JULY 2, 1986, REVISION JULY 1, 1986, ISSUE

PAGE 76-7

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART 1I I

I
j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j

CHAPTER 77 INSTRUCTIONAL MEDIA AND MATERIALS
Georgia Code 20-2-159 provides for Instructional Media and Materials grants to the local school systems. These grants are a part of their A.P.E.G. checks and are so recorded in the General Fund with all other A.P.E.G. receipts. The gross amount shown on the computer printed Allotment Sheet (Current Revision) is the amount to be transferred, either by journal entry or check, to the Instructional Media Fund (21). Even though a separate fund is required a separate bank account is not required and the Instructional Media Fund (21) may be a part of the general bank account.
Expenditures from the Instructional Media Fund (21) are teaching supplies, textbooks, library books, periodicals and newspapers and audio visual supplies. When the required amount for the fund is not great enough for expenditures, extra local funds should be transferred from the General Fund to the Instructional Media Fund so that all media expenditures are from only one fund and not divided between the Instructional Media Fund and the General Fund.

DECEMBER lS, 1983, REVISION JUNE 30, 1983, ISSUE

PAGE 77-1

GEORGIA FINANCIAL ACCOUNTING HANDBOOK
PARl III

CHAPTER 78
INVESTMENT ACCOUNTING AND INTEREST EARNED ON CHECKING ACCOUNTS
(1) INVESTMENT ACCOUNTING INSTRUCTIONS
This section is written for those school systems that have idle monies available for temporary investments. Normally, these monies would be in the Debt Service Fund, Capital Projects Fund, Leave Fund, SFN Fund, and/or General Fund.
Some of the possible investments might include time deposits in commercial banks, savings deposits including saving certificates, or U.S. Treasury Notes. It is lawful to invest monies in securities of the States, United States, municipalities of this State, or bank certificates of deposit. The investment of proceeds from the sale of school bonds may be more restrictive than for other funds and legal guidance is recommended.
To properly control investments, it is necessary to establish an investment account in the appropriate fund in your ledger. The Asset Account for Investments is Account No. 300-0000-0111-000.
As an example, let us assume that your school system has approximately $100,000.00 in the Capital Projects Fund bank account that could be invested for a period of 90 days. A decision is reached on July 10, 1986, to invest in U.S. Treasury Bills at the current interest rate for 90 days. Your bank advises that $100,000 maturity in 90-day U.S. Treasury Bills can be purchased for $98,943.00. A Capital Project Fund check is issued in the amount of $98,943.00 and becomes the basis for your first Capital Project Fund investment accounting entry. This entry would be a debit to account number 300-0000-0111-000 for $98,943.00 and credit to account 300-0000-0101-000 for a like amount. A description of the transaction (bank name, investment number and maturity date) should be noted.
At maturity, your school system will receive a check or credit memorandum from the bank in the amount of $100,000.00 to liquidate the investment. The accounting entries for this transaction would be a debit on ledger sheet 300-0000-0101-000 for $100,000.00; a credit to account number 300-0000-0111-000 (Investment) for $98,943.00; and a credit to account number 300-0000-1500-000 (Interest Earned) for $1,057.00.
Interest earned on certain funds (Capital Projects Fund, Debt Service Fund or School Food Service Fund, for example) must remain in the same fund from which the investment was made. Unless so restricted, the school system has the option of (1) leaving interest in the fund where earned to be used only for approved program purposes or (2) transferring the interest earned to another fund where it will be used only for appropriate education purposes.

JULY 1, 1986

PAGE 78-1

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART III

INVESTMENT ACCOUNTING (CONTINUED)

,

(2) INVESTMENT OF FEDERAL FUNDS

Rec1p1ents of Federal funds, whether by d1rect grant or through the Georg1a Department of Educat10n. are subject to the prov1s10ns 1n Sect10n 203 of the Intergovernmental Cooperat10n Act of 1968 (Pub11c Law
90-577) relat1ve to m1n1m1z1ng the t1me elaps1ng between the transfer of such funds to the Local Educat10n Agency and the d1sbursement thereof by the LEA. S1nce th1s restr1ct10n 1s app11cable whether such d1sbursement occurs pr10r to or subsequent to a transfer of funds, Federal funds would not normally be ava11able for 1nvestment by the LEA. In the event that Federal funds are 1nvested, prov1s10ns of Georg1a law w111 govern
the propr1ety of the 1nvestment.

Also 1n accordance w1th Sect10n 203 of the above ment10ned Act and
Sect10n 74.47 (b) of the Federal Educat10n Department General
Adm1n1strat1ve Regulat10ns, grantees or subgrantees are not requ1red to return to the Federal Government any 1nterest 1ncome earned where th1s
1ncome 1s attr1butable to grants-1n-a1d as def1ned 1n Sect10n 106 of the Act. In all other cases, the rec1p1ent shall rem1t any 1nterest earned on advances of Federal funds.

If the enab11ng leg1s1at10n for a spec1f1c grant program prescr1bes
requ1rements that d1ffer from these 1nstruct10ns, the prov1s10n of the
enab11ng leg1s1at10n shall govern. For example, USDA regulat10ns, 7CFR, requ1re that all 1ncome accru1ng to the School Food Serv1ce program shall be used only for program purposes. Interest 1ncome result1ng from the 1nvestment of School Food Serv1ce funds 1s, by def1n1t10n, program 1ncome and as such must rema1n as part of School Food Serv1ce funds spendable only for appropr1ate program purposes.

(3) INTEREST EARNED ON CHECKING ACCOUNTS INSTRUCTION

It has been determ1ned that local school systems are perm1tted to estab11sh check1ng accounts wh1ch w111 earn 1nterest on the funds on depos1t. These check1ng accounts, commonly referred to as NOW Accounts, became ava11able on January 2, 1981, through most commerc1al banks as well as sav1ngs and loans 1nst1tut10ns. Terms and cond1t10ns for
earn1ng 1nterest vary among the var10us organ1zat10ns offer1ng these accounts. Unless so restr1cted, the school system has the opt10n of (1) leav1ng the 1nterest 1n the fund where earned or (2) transferr1ng the
1nterest earned to another fund where 1t w111 be used only for appropr1ate educat10nal purposes.

A sample of the requ1red account1ng entry to record the 1nterest 1n the General Fund earned would be a deb1t to account number 100-0000-0101-000 (Cash In Banks) and a cred1t to account number 100-0000-1500-000 (Interest Earned).

JULY 1. 1986

PAGE 78-2

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART I II

INVESTMENT ACCOUNTING (CONTINUED)
(4) Consult Chapter 63 of the Georg1a F1nanc1al Account1ng Handbook for further 1nformat10n on how Board of Educat10n funds, 1ncluding bond proceeds, may be invested.

JULY 1. 1986

PAGE 78-3

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART II I

CHAPTER 79
LEAVE FUND ACCOUNTING
The Adequate Program for Education in Georgia Act provides funds for paying the expenses of substitutes for certain personnel of a local school system.
Laws have set an amount for each of the allocated personnel in APEG Sections 5. 7. 10. and 25 and 25(a) as the amount to be placed in a Leave Fund for payment of substitutes' expenses.
In order that all school systems in the state fulfill their obligation in this matter. the following formula is to be used to determine the amount required to be placed in the Leave Fund.
(1) Special Education Personnel Under Section 5 (2) Professional Units Under Section 7 (Kindergarten) (3) Personnel Under Section 10(a) (1) (4) Personnel Under Section 10(a) (2) (5) Bus Driver Personnel Under Section 25 (6) Teachers Under Section 25(a) (Isolated Schools) (7) Total Allocated
Multiply the units allocated for Sections 5. 10(a) (1). 10(a) (2). 25 and 25(a) by the required amount to arrive at the required amount to be transferred from the General Fund to the Leave Fund for the fiscal year. Annual allotment sheets (currently revised) will show the required amounts separately for teachers and bus drivers. After the required amount is determined for the fiscal year. it is recommended that this amount be transferred from the General fund to the Leave Fund as soon as possible each fiscal year. The receipt of Leave Funds will then be reflected in the Incoming Transfer From Other funds account and the General Fund transfer will be shown as part of the Outgoing Transfer To Other funds account.
Payments for substitute teachers are recorded in the salaries (Substitute Teachers) account and payments for substitute bus drivers are recorded in the Salaries (Substitute Bus Drivers) account.
Normally. the Leave Fund will be part of the general bank account along with at least the General Fund. the Instructional Media Fund. the Instructional Equipment Fund. the Compensatory Education Fund. the Bus Replacement fund. etc.
It is improper to pay teachers or bus drivers that do not have accumulated leave the difference between their regular pay and the substitutes' pay. It is also improper to allow the teacher or bus driver to pay their substitutes. Furthermore. it is not proper to pay teachers or bus drivers for excess leave i earned. Unused leave can accumulate from one year to the next up to a maximum of 45 days. State Board policy provides for transfer of leave to another school system if the person earning leave changes employment.

DECEMBER 14. 1984. REVISION AUGUST 2. 1983. ISSUE

PAGE 79-1

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART III

LEAVE FUND ACCOUNTING (CONTINUED)
The balance in the Leave Fund on June 30 must be set up as a reserve balance for July 1 of the next fiscal year to be used for proper Leave Fund expenditures only.
If a local school system has a Leave Fund reserve any June 30 sufficient to guarantee 30 days of leave for all eligible employees. any balance accumulated beyond the required reserve may be transferred to the General Fund to be used for the general operation of schools.
No school system shall use Leave Funds to pay the cost of physical examinations for any employee.
It is permissible to charge to the leave Fund the employer IS portion of social security on substitutes authorized for payment from the Leave Fund but this is optional.
If E.C.I.A. 1 projects have amounts for leave built into the projects. these amounts should be transferred in a lump sum to the leave Fund as soon as 'the project is approved.
The expense 1n the E.C.I.A. 1 Fund will be a debit to an expense account and the receipt 1n the Leave Fund w111 be a cred1t to the other Federal Source Revenue account.
If E.C.I.A. 1 employs bus drivers. the required amount per driver should also be handled as above.
If MEA projects have amounts for leave bu11t 1nto the projects. these gross amounts should be transferred in a lump sum to the Leave Fund as soon as the project is approved.
On the MEAls books this payment will be included in the grant amount to the LEA to be reported in expenditure account 20-1000-561. Tuition to Other Georgia LEAs. On the LEAs books. the receipt would be recorded in Revenue Account 20-1950. Services Provided other Local Educational Agencies or Other Governmental Units.
All local school systems must have Leave Plans in their files. Regional Directors with the Georgia Department of Education are responsible for assisting local school systems in the development of leave policies (Leave Plans).

DECEMBER 14. 1984. REVISION AUGUST 2, 1983, ISSUE

PAGE 79-2

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART III

CHAPTER 80
ACCOUNTING fOR SALARY ACCRUALS
Generally Accepted Accounting Principles -require that salary and fringe benefits earned during one fiscal year but not paid until the following fiscal year must be accrued on June 30 of each year. Salaries and benefits must be accrued in all programs for which revenue has been received to cover this expense or for which revenue has been accrued to cover this expense. Salaries of APEG funded positions should not be accrued due to the fact that APEG funds to pay deferred salaries are in the following fiscal year appropriation and are not available on June 30.
Accruals should be made for such programs as ECIA Chapter 1. Compensatory Education. and any other program where current year funds are used to pay salaries in July and August of the following year. Completion reports for these programs would include salaries paid during the year and accruals made at the end of Jhe year. Amounts on the completion report should agree with the amount reported on the financial Report. DE form 0046.
The Georgia Department of Audits will audit for compliance with Generally Accepted Accounting Principles. and they may make adjustments while they are auditing. or they may footnote their audits.

NOVEMBER 9. 1984. ISSUE

PAGE 80-1

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART III

CHAPTER 85
RAILROAD EQUIPMENT TAX
Georgia Code Section 91A-2209 establishes a procedure for the Georgia Department of Revenue to collect a "Railroad Equipment Tax".
The law requires the amount collected in each school district to be transmitted by the Georgia Department of Revenue to the local school districts.
Each school system receiving money from the Georgia Department of Revenue for the railroad equipment tax should deposit the funds in the general bank account crediting account 01-3702 (Railway Equipment Tax).
If the school system has a levy for bonds, it should figure the percent this
levy is of the combined M&0 and Bond levies and transfer by check that percent
of the receipt from the General Fund to the Debt Service Fund.
As an example, suppose the school system has a school M&0 levy of 12 mills and a school Bond levy of two mills. The M&0 portion would be 86% (12 divided by 14) and the Bond portion would be 14% (2 divided by 14). Then, if a school system receives $500.00 for railroad equipment tax, the $500.00 would first be deposited in the General Fund crediting 01-3702. A General Fund check for $70.00 (.14 times $500.00) should then be issued debiting the General Fund $70.00 in account 01-3702. When the deposit is made in the Debt Service Fund bank account, the $70.00 would then be credited to account 02-3702.
Thus, the General Fund account 01-3702 would be reduced down to a balance of $430.00 and the Debt Service Fund account 02-3702 would show revenue of $70.00.

MARCH 22, 1985, ISSUE

PAGE 85-1

GEORGIA FINANCIAL
ACCOUNTING HANDBOOK PART III

CHAPTER 86

ACCOUNTING FOR POSTSECONDARY TUITION FEES

Beglnnlng with FY 1985 State law and Policies of the State Board of
Postsecondary Vocatlonal Education makes it mandatory that a strlct accounting be malntalned for all postsecondary tultlon fees collected from students.

As tultion fees can not be put into the Postsecondary Vocational General Fund (Fund 25), it is necessary that these tuition fees be put in a special revenue fund which should be entitled "Special Revenue Fund (Tuition)". It is suggested that you assign a project number to this fund and it is therefore
suggested that your Fund/Project number might be 50-101 in accordance with the codlng structure in Chapter 3 of this handbook.

As thls will be a new Fund, it will be permissible to begin with $0.00 in the Fund on July 1, 1984. The Fund Equity on June 30. 1985. must be picked up on July 1, 1985, as the FY 86 beginning Fund Equity (50-101-799).

All tuition fees collected July 1. 1984, or thereafter should be credited to 50-101-1320 (Other Tuition).

As tuition funds can be expended for such things as library books. salaries,
equlpment, computer hardware, computer software, M&O. facilities
1mprovements, etc . the classification for expenditures could be various classification such as:

50-101-1000-110 50-101-2200-640 50-101-1000-130 50-101-4500-720

(Salaries) (Library Books) (Instructional Equipment)
(Building Acquisition. Construction And Improvements)

The law and policy require that the tuition fees shall not be used to supplant exlst1ng State or local fund1ng.

Guidel1nes and procedures for implementing the policy of the State Board of
Postsecondary Vocational Education establishes two priority categories.
Pr10rity 1 has to do with improv1ng programs. Priority 2 has to do with M&0
and facility improvements.

It 1s suggested that th1s handbook be consulted for other classification that you m1ght need (especially Chapters 3 and 6).

Refunds of tuition due to w1thdrawals would cause a debit to the same account you orig1nally credited (probably 50-101-1320) if the tuition has been collected during the current fiscal year.

Account 50-101-799 (Fund Equ1ty) should be deb1ted 1f the tu1tion was collected 1n a prior fiscal year.

NOVEMBER 1, 1984, ISSUE

PAGE 86-1

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART III

CHAPTER 87
TRAVEL REGULATIONS
GENERAL INFORMAl ION
1. "Personnel" as used in these regulations is defined as persons governed by the rules and regulations of the local school systems or RESA.
2. Approved local travel is on the basis of reimbursement for the actual and necessary expenses incurred subject to the limitations set forth herein.
3. Travel must be by the most direct route possible. However, an expressway route, for example, which involves more total mileage may result in a saving of personnel time which would make it, in effect, the most direct route available.
4. The headquarters of an individual is defined as the office at which he normally carries out the responsibilities of his position or as otherwise designated by the local school superintendent or RESA director. The official job description may be the basis for determining the individual's office headquarters.
5. Cost of meals which normally would be eaten before departure or after return from travel status will not be allowed. Even though there is not overnight travel, the noon meal can be allowed if the noon meal is an integral part of a scheduled meeting. In order to be an integral part of a scheduled meeting, the luncheon must include a program such as, but not limited to, a speaker, a panel discussion, or other similar presentation. The individual must be an official representative of the local unit of administration, and the superintendent, or RESA director, must approve the payment of the noon meal. Reimbursement may be claimed whenever the noon meal is part of a required fee or is included in the cost of a luncheon ticket which is required for a participant to attend a required meeting. Reimbursement will not be allowed for breakfast unless the individuals depart their homes or official headquarters prior to 6:30 a.m. Individuals will not be reimbursed for the evening meal unless they arrive at their homes or official headquarters after 7:30 p.m., or providing the employee was away from home on the work assignment for more than 13 hours. The noon meal is not reimbursable except when:
a. The meal is an integral part of a conference or a scheduled meeting at which the employee is representing the local educational agency.
b. The employee is traveling prior to 6:30 a.m. and returns after 7:30 p.m.
c. The employee is away from home or headquarters on a work assignment for more than 13 hours.

JULY, 1988

PAGt 87-1

GEORGIA FINANCIAL ACCOUN1ING HANDBOOK PART III

TRAVEL REGULATIONS (CONTINUED)
The noon meal is always reimbursable if the employee leaves the home or headquarters before 11:00 a.m. for an overnight trip or comes back to the home or headquarters after 1:00 p.m. from an overnight trip.
6. Receipts are required for all expenses except for meals, taxi fares, limousine fares, parking, bridge tolls and porterage. In the event of a lost receipt for which a duplicate cannot be obtained, a sworn notarized statement may be submitted.
7. Each expense statement must be approved by the individual's immediate supervisor prior to reimbursement.
8. It shall be the intention of the local school system or RESA to reimburse individuals for such reasonable and necessary expenses as may be incurred while traveling away from their headquarters or residence; however, it is expected that conservatism and good judgment will be exercised in the choice of lodging and eating places.
9. Personnel who receive travel expense reimbursement from sources other than the local school system, RESA, etc., may not receive dual payments for the same expenses. If expenses reimbursed by the local school system, RESA, etc., are subsequently reimbursed by another source, such as professional organizations, another state, the federal government, or a state agency of Georgia, reimbursement to the local school system, RESA, etc., shall be made by the employee.
INTRASTATE TRAVEL EXPENSE
For the purpose of these regulations travel within the state of Georgia and within a 50-mile radius of the Georgia state line shall be considered intrastate travel.
A. TRANSPORTATION
1. Reimbursement for mileage will be made for transportation expense incurred by use of personally owned, rented, or leased vehicles. Reimbursement for the usage of private aircraft will be at the common air carrier rate or actual expense, whichever is lower, between departure and destination points. Payments to friends or other individuals will not be allowed. No transportation costs will be allowed between an individual's residence and his headquarters, even though official business is conducted between these two points. However, in instances where an individual is required to leave home during off-duty hours (night, weekend or holiday) to attend meetings or other events, he or she may be reimbursed for any transportation cost incurred. Local transportation costs incurred on official business requiring transport from one department location to another, or any other such local travel other than to or from an individual's residence, will be allowed.

JULY, 1988

PAGE 87-2

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART III

TRAVEL REGULATIONS (CONTINUED)
INTRASTATE TRAVEL EXPENSE (CONTINUED)
A. TRANSPORTATION (CONTINUED)
2. Reimbursement for transportation expense incurred by use of personally owned or leased vehicles will be at the rate per mile as provided by law for the actual mileage traveled in the performance of official duties. Legislative Act fixed the mileage rate at $.21 per mile effective July 1, 1986. The initial point of departure shall be the individual1s residence or headquarters, whichever is nearer to the destination point during the employee1s normal work week. However, the actual departure point may be used for night, weekend, or holiday departures. The use of personal aircraft will be authorized only after careful analysis of the distance, timeliness and overall cost factors of the trip to be considered. Private aircraft travel will be reimbursed at $.21 per road mile for the most direct route from the employee's residence or headquarters to the destination point, whichever is nearer.
Actual odometer readings shall be reported; however, personal mileage must be excluded in determining the mileage for which reimbursement is made. Point-to-point designations must be clearly identified on the expense statement. The authorized mileage rate is to include all expenses incurred in the operation of personally owned or leased vehicles and reimbursement for such items as gas and oil will not be permitted. Parking, bridge, and road tolls are an allowable and reimbursable expense. Individuals using vehicles owned or leased by a local school system or RESA are not entitled to the authorized mileage rate provided by law. This is discussed in the paragraph in this chapter, "USE OF SYSTEM-OWNED VEHICLES."

JULY, 1988

PAGE 87-3

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART III

TRAVEL REGULATIONS (CONTINUED)
INTRASTATE TRAVEL EXPENSE (continued)
A. TRANSPORTATION (continued)
3. Employees may be reimbursed for rental of passenger cars as follows:
a. Authorized Rental: Rental of a passenger-carrying automobile is authorized in connection with official travel during which the employee's departure from and return to the city of his/her residence, place of employment, or other authorized terminal point is by means of commercial airlines, rail or bus.
b. Unauthorized Rental: Rental is not authorized when travel to and from destination is accomplished by means of:
1. Another rented or leased automobile.
2. The employee's personally owned automobile or that of a member of his family.
3. The personally owned automobile of another system employee who travels with the employee to and from the same destination for the same or substantially same reason.
4. Where a motor vehicle owned by the employee's school system is reasonably available at the destination.
5. For the execution of official duties routinely involving high volume travel for which transportation by personally owned automobile or system owned automobile has been previously authorized.

JULY, 1988

PAGE 87-4

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART III

TRAVEL REGULATIONS (CONTINUED)
INTRASTATE TRAVEL EXPENSE (continued)
A. TRANSPORTATION (continued)
3. b. Unauthorized Rental (continued)
6. In any case in which transportation by other available commercial means is more economical and suitable for the accomplishment of official business involved; for example:
a. Rental of a vehicle is not authorized for one way or round trip travel between an airport and a single point in the destination city when limousine or taxi service is available.
b. Rental of a vehicle is not authorized solely for travel between an employee's place of temporary lodging and a single place of business within a destination city where taxi or other public transportation is more economical and satisfactory for accomplishment of the official duties concerned.
c. On holidays, Saturdays, Sundays or for more than five business days on a single trip without specific approval of the employee's superintendent or director.
c. A copy of the paid rental contract must be attached to the employee's expense statement.
4. Transportation by common carrier will be by scheduled plane, train or bus. Reimbursement will be made upon presentment of the ticket stub, receipt or other documentary evidence of expenditure. Travel by scheduled airline will be by minimum fare service whenever practicable.
5. If a federal tax is imposed on amounts paid for the taxable transportation of persons by air, and on payments for seating or sleeping accommodations in connection with taxable transportation, it will be on a reimbursable expense.
6. When a common carrier is used, round trip tickets should be obtained whenever this results in a savings.
7. Limousine service (or taxi fares if less expensive to the school system or RESA) will be reimbursed for transportation between the individual's departure point and the common carrier's departure point and between the common carrier's arrival point and the individual's lodging or meeting place. It is expected that limousine service will be utilized when available and when arrival or departure is during daylight hours.

JULY, 19BB

PAGE B7-5

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART III

TRAVEL REGULATIONS (CONTINUED)

INTRASTATE TRAVEL EXPENSE (continued)

A. TRANSPORTATION (continued)

7. (continued)

Reimbursement for travel by private automobile from the individual1s residence to the airport will be allowed, and reimbursement for parking will also be allowed. Transportation costs by a private automobile from
the individual1s residence to the nearest limousine pickup service will be allowed and from that point the actual cost of limousine service to the airport. In traveling between lodging and meeting place, individuals are encouraged to use public conveyances (bus or subway) when available. When such transportation is not available, reimbursement will be made for use of taxicabs. Although receipts are not necessary for such items of transportation, a point-to-point explanation is required for each such
item reimbursed.

B. Baggage handling services (porterage) may be reimbursed when actually incurred in moving luggage.

9. Mileage shown for the route traveled in excess of that indicated by the current official Georgia State Highway Department map must be fully explained and intermediate out-of-the-way points of contact of official
business must be identified.

B. SUBSISTENCE

1. Reimbursement claims for subsistence (meals and lodging) are to be reported on travel expense statements by date and amount for each meal and lodging.

2. An individual taking annual or sick leave while away from headquarters on official business is not entitled to subsistence for the period of leave.

3. Lodging

a. Reimbursement may be made for actual lodging expenses up to $50.00 plus sales tax unless specifically authorized by the local
superintendent or director.

b. When a room is shared with other employees on travel status, reimbursement will be calculated on a pro-rata share of the total
cost; however, when a pro-rata share of lodging costs is claimed, the expense statement must show the name or names of the employees with whom the room is shared. The simplest method would be for each employee to ask for a separate bill for his share of the room cost. This eliminates the need for cross referencing expense statements. An individual on travel status accompanied by husband, wife or other
individual who is not an employee on travel status will only be entitled to reimbursement at the single room rate.

JULY, 19BB

PAGE B7-6

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART III

TRAVEL REGULATIONS (CONTINUED)
INTRASTATE TRAVEL EXPENSE (continued)
B. SUBSISTENCE (continued)
3. c. Lodging expense will not be allowed for other than overnight accommodations.
d. An amendment to O.C.G.A. 48-13-51 provides that no county or municipal excise tax shall be levied on the fees or charges for meeting rooms or for any rooms, lodging, or accommodations furnished government officials or employees when traveling on official business. When registering for lodging or arranging for the use of meeting rooms, employees should claim exemption from the hotel/motel tax as stated in O.C.G.A. 48-13-51.
4. Meals
a. Reimbursement will be made for actual cost of meals within reasonable limitations. The meal limit per day for three meals is $22.00. Charges in excess of $22.00 must be explained in writing. If only one or two meals are claimed, charges in excess of $5.00 for breakfast, $6.50 for lunch and $12.50 for dinner must be explained in writing.
b. Reimbursement shall be limited to the cost of meals for the individual only.
5. Subsistence within the county of an individual's headquarters or residence or within a 30-mile radius of an individual's headquarters or residence is not allowable. However, a teacher or other personnel acting as a student club advisor may, with prior approval of his/her superintendent, be reimbursed for meals, motel and mileage while serving as a chaperon at a regional, state or national meeting of the club.
INTERSTATE TRAVEL EXPENSE
A. TRANSPORTATION
1. The regulations under "TRANSPORTATION" for intrastate travel (Items A1-A9) are applicable to interstate travel also.
2. Interstate travel to be reimbursed from local funds must be in the interest of the local school system or RESA and undertaken only with prior written approval of the local school system superintendent or RESA director. Failure to secure prior written approval shall cause the superintendent or RESA director to withhold reimbursement of expenditures.

JULY, 1988

PAGE 87-7

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART I II

TRAVEL REGULATIONS (CONTINUED)
INTERSTATE TRAVEL EXPENSE (continued)
A. TRANSPORTATION (continued)
3. Transportation outside of the State will be by common carrier unless specific authorization is received prior to the trip for use of a personally owned vehicle. When authorization for use of a personally owned vehicle has been granted, reimbursement will be made in accordance with the provisions of the regulations under "TRANSPORTATION" for intrastate travel (Item A2). When out-of-state travel by private automobile is approved for an individual staff member, the transportation costs may not exceed tourist air fare or mileage, whichever is less. Annual leave must be used for travel time in excess of the time required for air travel. No subsistence will be allowed while in such travel status.
B. SUBSISTENCE
1. Reimbursement claims for subsistence (meals and lodging) are to be reported on travel expense statements by date and amount for each meal and lodging.
2. An individual taking annual or sick leave while away from headquarters on official business is not entitled to subsistence for the period of leave.
3. Lodging. Reimbursement will be made for lodging expense within reasonable limitations incurred in hotel or motel on presentation of a "paid" copy of the bill. Charges in excess of $75.00 per day must be explained in writing. Personnel should only be reimbursed for actual costs expended and should not consider the allowable charges as a per diem allowance.
4. Meals.
a. Reimbursement will be made for actual costs of meals within reasonable limitations. The meal limit per day is $24.00 for three meals. Charges in excess of $24.00 must be explained in writing. If only one or two meals are claimed, charges in excess of $5.50 for breakfast, $7.00 for lunch, and $13.50 for dinner must be explained in writing.
Reimbursement shall be limited to the cost of meals for the individual only.

JULY, 1988

PAGE 87-8

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART III

TRAVEL REGULATIONS (CONTINUED)
TRAVEL EXPENSE (continued)
MEETINGS, CONFERENCES, CONVENTIONS. ETC.
1. An individual who is assigned by the local school system superintendent, or RESA director to attend a National, Regional, or State meeting will be reimbursed for registration fees. Meal expense incurred by authorized attendance at such meetings will be reimbursed when such meal expense is an integral part of the meeting or conference program whether or not it is included in the required registration fee. Within the context of the travel regulations a scheduled meeting only means that it is a prearranged meeting. The question is whether employees are official representatives of the local units of administration. If a meal is a part of the meeting (e.g., a luncheon with a guest speaker or organized by the sponsoring agency) and the employee is attending as an official representative of the local unit of administration, the meal is reimbursable. The meal is not reimbursable if the employee is attending of their own choice or if the lunch is not a part of the meeting discussed above.
2. Any portion of registration fees covering cost of social activities will not be allowed.
MISCELLANEOUS TRAVEL EXPENSE
1. The following incidental expenses relative to travel will be allowed, provided such expenses are less than $1.00 and the necessity for them is sufficiently explained in writing:
a. Stationery and supplies b. Stenographic or duplicating services
2. The purchase of items mentioned in Item 1 above shall be reimbursed on the expense statement if the expense is $1.00 or less.
3. Postage expense incurred relative to travel will be allowed if a validated receipt is attached to the travel report.
4. Reimbursement for gratuities will not be allowed. Expenditures for valet service, theater, and entertainment are personal items and will not be allowed.
5. Expense for official telephone and telegraph messages which must be paid for by the individual are allowable. The expense statement must indicate the origin of the communication, the person contacted and justification for it.
6. Reimbursement is allowed an employee for one personal telephone call when it is necessary to notify someone that his/her travel schedule has been changed.

JULY, 1988

PAGE 87-9

GEORGIA FINANCIAL APACRCTOUINITIING HANDBOOK

TRAVEL REGULATIONS (CONTINUED)
EXPENSE REIMBRUSEHENT PROCEDURE
1. An "Employee Expense Statement" is completed in duplicate for all travel completed as of the end of the month and signed by the employee. A sample form can be secured from the Financial Review Section, Georgia Department of Education.
2. Departure time and arrival time must be shown on the travel statement for each trip. Departure time is the time an employee departs from residence or headquarters and arrival time is the time of arrival back at the residence or headquarters.
3. The employee submits both copies of the "Employee Expense Statement" and required receipts to his local superintendent or RESA director.
4. The superintendent or RESA director reviews the "Employee Expense Statement" and, if it appears to be in order, approves it by signing on the appropriate line, and gives it to the bookkeeper for payment.
5. Reimbursement shall be made on a general operating check of the appropriate fund (General, ECIA Chapter 1, etc.) and should not be included in the payroll check.
STATE FUNDS RECEIVED FOR TRAVEL PURPOSES
In cases where State funds are provided on an estimated basis for city or county school systems, regional libraries, or any other educational unit funded through the Georgia Department of Education grant program for travel expenses, reimbursement should only be made when proper vouchers are submitted covering actual and allowable expense incurred.
USE OF SYSTEM-OWNED VEHICLES
Personnel using system-owned vehicles must identify on the "Employee Expense Statement" the tag number of the vehicles used. Actual odometer readings shall be reported. Point-to-point designations must be clearly identified. Reimbursement due for each trip, (i.e., number of miles times $.21) should be shown in parenthesis under point-to-point designation with vehicle tag number by the amount. Total System-car expense for the month should be shown at the bottom of each employee's monthly expense statement in parenthesis separate from the employee's total individual expenses for the month.

JULY, 1988

PAGE 87-10

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART III

CHAPTER 69
ACCOUNTING FOR POSTSECONDARY STUDENT SUPPLY/LABORATORY FEES
Beg1nn1ng w1th FY 1985. state law and regu1at10ns of the State Board of Postsecondary Vocat10na1 Educat10n makes 1t mandatory that a str1ct account1ng be ma1nta1ned for all postsecondary student supply/laboratory fees collected from students.
Charg1ng student supply fees 1s opt10na1 and the amount can vary as long as the total supply/laboratory fees charged are not greater than the actual cost to purchase the supp11es. Funds collected can be used only for the purpose for wh1ch they were collected.
As postsecondary student supply/laboratory fees cannot be put 1nto the Postsecondary Vocat1onal General Fund (Fund 25). 1t 1s necessary that these fees be put 1n a spec1al revenue fund wh1ch should be ent1tled "Spec1a1 Revenue Fund (Student Supp11es)". It 1s suggested that you ass1gn a number 1n the Spec1a1 Revenue Fund area 1n accordance w1th the cod1ng structure 1n Chapter 3 of th1s handbook. For example. 1f you have not already used fund 52. you could use th1s fund number. However. when you report to the Georg1a Department of Educat10n on DE Form 0046. you would report Funds 50-54 as Fund 50 (All Other Spec1a1 Revenue Funds). If you have used all of the fund numbers from 50-59. you would have to use Fund 50 and a project number also (e.g. Fund 50. Project 102 etc).
As th1s w111 be a new Fund. 1t w111 be perm1ss1ble to beg1n w1th $0.00 1n the Fund July 1. 1984. The Fund Equ1ty on June 30. 1985. must be p1cked up on July 1. 1985. as the Beg1nn1ng Fund Equ1ty for FY 86 (50-102-799).
All 1nstruct10nal supply/laboratory fees collected July 1. 1984. or thereafter should be cred1ted to 50-102-1980 (Student Supply Fees).
Expend1tures should be charged to 1000-610 (Instruct10na1 Supp11es). It 1s suggested that th1s handbook be consulted for other c1ass1f1cat10ns you m1ght need (espec1a11y Chapters 3 and 6).
Refunds of supply fees due to w1thdrawals would cause a deb1t to the same account you or1g1nally cred1ted (probably 1980 1f the supply fees have been collected dur1ng the current f1scal year).
Account 799 (Fund Equ1ty) should be deb1ted 1f the supply fees were collected 1n a pr10r f1scal year.
Other revenues such as Student Act1v1ty Fees. Park1ng Fees. etc . should not be put 1n the Spec1a1 Revenue Fund but should be depos1ted d1rect1y 1nto the Postsecondary Vocat10nal General Fund (Fund 25).

NOVEMBER 1. 1984. ISSUE

PAGE 69-1

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART III

CHAPTER 90

COMBINED JOURNAL (DE FORM 0461)

In FY 86 the transition toward modified accrual accounting will be taken a step further. Accruals will be required on a monthly basis. Accruing monthly will present a more accurate picture of the school system's financial position and their results of operating at the end of each month. Maintaining greater control over outstanding obligations on a monthly basis could help prevent possible deficit situations from occurring.

To assist those LEA's without automated accounting systems, the Combined Journal (DE Fonm 0461) is avallable.

You should record balance sheet Accounts Payable (421) transactions in Column 9 and 10 and all other General Ledger accounts in Column 12 and 13 (Other General Ledger Accounts). If you should accrue revenues and expenditures on a continuous basis, all revenues and expenditures would be recorded in accounts receivable and accounts payable accounts. Cash Balances will be increased or decreased when cash is deposited and/or checks are written. This job becomes easier when electronic equipment is available.

July 1 -

The Balance Sheet account balances are recorded. These balances are June 30, 1985, balances in the FY 85 General Ledger after the year-to-date revenues and year-to-date expenditures have been closed into the Fund Equity Account (No. 799) for each fund within the General Operating Account.

Listed are the balance sheet account balances to be recorded.

Assets

GENERAL (Fund 01)

Cash in Bank (101) Investments (111) Interest Receivable (114) Taxes Receivable (121)
Total

14,823.11 300,000.00
7,875.00 16,253.00 338,951. 11

Liabilities And Fund Equities

Accounts Payable (421) Teachers Retirement (Withholdings) (473) Group Health Insurance Payable (Withholdings) (475) Fund Equity (799)

18,750.43 3,475.20
300.18 316.425.30 338,951. 11

Media (Fund 21)

ECIA I (Fund 28)

152.09 20,000.00
525.00
20,677 .09

58,720.48 58,720.48

58,720.48

20,677 .09 20,677 .09

0.00 58,720.48

FEBRUARY 8, 1985, ISSUE

PAGE 90-1

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART III

COMBINED JOURNAL (DE FORM 0461) (CONTINUED)

July 1 - The General Fund $300,000.00 and Media Fund $20,000.00 Investment matures at First National Bank. The total deposit is $328,400.00 and includes interest.

The transaction is recorded on the Combined Journal (DE Fonn 0461) as follows:

Account Nunber

Description

Debit

Credit

01-111 01-114 21-111 21-114

Investments Interest Receivable Investments Interest Receivable

300,000.00 7,875.00 20,000.00 525.00

July 1 - Check No. 1529 is issued to Pine Tree County Bank for $330,000.00 (General Fund $310,000.00, Media Fund $20,000.00), certificate of Deposit No. 0107. The interest rate is l~ for six months.

The transaction is recorded in the Combined Journal as follows:

Account Nunber

Description

Debit

01-111 21-111

Investments Investments

310,000.00 20,000.00

Credit

July 3 - Check No. 1530 is issued to Teacher Retirement System for June invoice in the amount of $5,297.20. The transaction is recorded in the Combined Journal as follows:

Account NlIlber

Description

Debit

Credit

01-421 21-421 01-473

Accounts Payable Accounts Payable Teacher Retirement Payable

1,722.00 100.00
3,475.20

July 3 - Check No. 1531 is issued to ABC School Supply for $17,027.00 for FY 85 Supplies.

The transaction is recorded in the Combined Journal as follows:

Account Nunber

Description

Debit

Credit

01-421 01-799

Accounts Payable Fund Equity

17 ,028.43 1.43

FEBRUARY 8, 1985, ISSUE

PAGE 90-2

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART III

COMBINED JOURNAL (DE FORM 0461) (CONTINUED)

July 23 - Received FY 85 Taxes collected in June 1985 from Tax Commissioner, in the amount of $16,253.00.

The transaction is recorded in the Combined Journal as follows:

Account Nunber

Descr; pt ion

Debit

Credit

01-121

Taxes Receivable

16,253.00

July 31 - A check in the amount of $400,000.00 is received from the Georgia Department of Education for APEG and the check is deposited and recorded in the Combined Journal as follows:

Account Nunber

Description

Debit

Credit

01-3100 01-3200

State Revenue APEG Superintendent's Salary

397,000.00 3,000.00

July 31 - Payroll Checks Nos. 6570-6656 in the amount of $116,750.00 are issued and the transaction is recorded in the Combined Journal as follows:

Account NlJlt>er

Description

Debit

Credit

01-1000-110 01-1000-190 01-2100-190 01-2200-190 01-2300-120 01-2400-190 01-2500-190 28-421 01-471 01-472 01-473 01-477

Teachers Salaries Other Instructional Salaries Guidance Salaries Curriculum Salaries Superintendent's Salary Principals' Salaries Budgeting/Accounting Salaries ECIA I Teachers Salaries Federal Income Tax Payable State Income Tax Payable Retirement Payable FICA Tax Payable

73,640.00 16,000.00 1,500.00 5,000.00 3,500.00 14,000.00 7,000.00 29,360.00

10,000.00 3,000.00 9,000.00 11,250.00

July 31 - Entries are recorded to transfer monies to the special funds, (leave, Media, Equipment, Compensatory Education and Bus Replacement). In this sample illustration the entry for Media Fund only is shown as follows:

Account Nunber

Description

Debit

Credit

01-5200-930 21-5200

Transfer To Media Fund Transfer From General Fund

75,000.00

75,000.00

FEBRUARY 8, 1985, ISSUE

PAGE 90-3

GEORGIA FINANCIAL
ACCOUNTING HANDBOOK PART III

COMBINED JOURNAL (DE FORM 0461) (CONTINUED)

July 31 - Check No. 1532 in the amount of $600.00 is issued to M&MHardware for M&0 Supplies.
The transaction is recorded in the Combined Journal as follows:

Account Nunt>er

Description

Debit

Credit

01-2600-610

Custodial Supplies

600.00

July 31 - Check No. 1533 is issued, to Pine Tree Bank for Federal Income Taxes $10,000.00 and is recorded as follows:

Account Nunt>er

Description

Debit

Credit

01-471

Federal Income Tax Payable

10,000.00

July 31 - July Expenditures are accrued and recorded in the Combined Journal.

Vendor

Account NlJIber

DescriQt ion

Debit

Credit

Teacher's Retirement System Employee's Retirement System Georgia Power

01-600-230 01-600-270 01-2620-620 01-421

Teacher's Retirement Hatching FICA Hatching Electricity Accounts Payable

2,500.00 11,250.00 5,000.00

18,750.00

July 31 - Interest earned in July on the monies invested in the General Fund and Media Fund has accrued and would be available subject to penalty if the certificate were cashed. we recommend that interest be accrued at the close of the fiscal year only (not monthly).

July 31 - Check #1534 is written for $1,000.00 to School Equipment Company to pay for ECIA Chapter I Equipment.

Account NlJIber

Description

Debit

Credit

28-421

Accounts Payable

1,000.00

FEBRUARY 8, 1985, ISSUE

PAGE 90-4

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART III

COMBINED JOURNAL (DE FORM 0461) (CONTINUED)

Total the Debit and Credit columns after all transaction have been entered for the month, and Trial Balance. The Total Debits must equal the total credits.

Post all entries recorded in Other General Ledger Accounts columns to the accounts in the proper fund.

Summarize the debit and credit transactions, in the Accounts Payable and Other General Ledger Accounts columns by fund. The total of the fund summaries for each column must agree with the monthly column total.

Post the Accounts Payable (421) Fund summary totals to the Accounts Payable (421) Account in the proper funds.

cash Balance Account No. 101

In each fund post the total fund debits in the Accounts Payable Column and the total Fund Debits in the Other General Ledger Accounts column as credits to the Fund cash Balance Account (101). In each fund post the Total Fund Credits in the Accounts Payable column and the Total Fund Credits in the Other General Ledger Accounts column as Debits to the Fund cash Balance Account (101). These entries are sanetimes referred to as "contra entries".

Balance each account within the General Ledger. Trial Balance each Fund (Debits = Credits). The monthly financial statements are prepared using balances in the ledger.

Start over on a new month after your year-to-date balances trial balance.

The remainder of this chapter consists of sample illustrations of combined journals (DE Fonm 0461) and sample General Ledger accounts. The Trial Balance Statements and Monthly Financial Statements are also illustrated.

General Ledger - General Fund

Balance Sheet Accounts

01-101 cash Balance
7/1 14,823.11 7/31 18,750.00 18,750.43 7/31 757,379.43 538,465.20
Bal. 233,736.91

01-111 Investments

7/1 300,000.00 7/1 7/1 310,000.00

300,000.00

Bal. 310,000.00

01-114 Interest Receivable

7/1 7,875.00 7/1

7,875.00

Bal.

0.00

FEBRUARY 8, 1985, ISSUE

PAGE 90-5

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART III

COMBINED JOURNAL (DE FORM 0461) (CONTINUED)

Balance Sheet Accounts (Continued)

01-121

Taxes Receivable

I
7/1 16,253.00 :

7/3

I I

16,253.00

I

BAL.

0.00 I

01-472 State Tax Payable

I

7/1

I
I

3,000.00

BAL.

I 3,000.00

01-477 FICA Payable

7/31

I I

11,250.00

BAL.

! 11,250.00

01-421

Accounts Payable

I

7/1 7/31

I
18,750.43 II

18,750.43 18,750.00

Bal.

I 18,750.00

01-473 Ret. Payable

I

7/1

I I

3,475.20

7/31 3,475.20

7/31 Bal.

II 9,000.00 9,000.00

01-799 Fund Equity

7/1

II 316,425.30

7/3

I I

1.43

I

Bal.

II 316,426.73

01-471

Fed. Tax Payable

I

7/1

I I

10,000.00

7/31 10,000.00

BAL.

I

0.00

01-476 Insurance Payable

I

7/1

I
I

300.18

Bal.

I 300.18

Revenues - General Fund

Rev. 0S1-t3a1t0e0APEG

7/31

397,000.00

BAL.

397,000.00

SUQt. 0S1t-a3t2e00Salar.les

7/31

3,000.00

BAL.

3,000.00

FEBRUARY 8, 1985, ISSUE

PAGE 90-6

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART III

COMBINED JOURNAL (DE FORM 0461) (CONTINUED)

Expenditures - General Fund

01-1000-110

Teacher Salaries

I

I 7/31 73,640.00

BAL.

73,640.00 I I

01-1000-190

Other Sa1ad es

I
7/31 16,000.00 I
I

I

BAL.

16,000.00 I I

01-2100-190 Guidance Salaries
It
7/31 1,500.00
I
BAL. 1,500.00 !I

01-2200-190 Curriculum Salaries

I

7/31

5,000.00

I I

I

I

I

BAL.

5,000.00

I
I

01-2300-12Q Supt. Salarles
I
7/31 3,500.00 :
I I
BAL. 3,500.00 !I

01-2400-190 Principal Salaries
I
7/31 14,000.00 :
I I
BAL. 14,000.00 !I

01-2500-190 BUdget/Accounting Salaries
I
I 7/31 7,000.00
BAL. 7,000.00

01-2600-610

M & 0 Supplies

7/31

II
600.00

BAL. 600.00 I

01-2620-620 Electricity
I
7/31 5,000.00 1
BAL. 5,000.00 I

01-5200-930

Transfer OUt

t

7/31

75,000.00

I I

I

I

BAL.

75,000.00

I I

01-6000-230

Teacher Ret. (Employer)

I

7/31

2,500.00

I I

I

I

BAL. 2,500.00 I

01-6000-270
FICA (Employer)
I
7/31 11,250.00 :
t
BAL. 11,250.00 II

APRIL 17, 1985, REVISION FEBRUARY 8, 1985, ISSUE

PAGE 90-7

GEORGIA FINANCIAL
ACCOUNTING HANDBOOK PART III

COMBINED JOURNAL (DE FORM 0461) (CONTINUED)

General Fund Trial Balance 1/31/85

Account Nos.

Account

Debit

01-101 01-111 01-421 01-412 01-413 01-416 01-477 01 799 01-3100 01-3200 01-1000-110 01-1000-190 01-2100-190 01-2200-190 01-2300-120 01-2400-190 01-2500-190 01-2620-620 02-5200-930 01-2600-610 01-6000-230 01-6000-210

cash Ba1ance Investments Accounts Payable State Income Tax Payable Teacher Retirement Payable Insurance Payable FICA Payable fund EquIty State Revenue-APEG State Revenue-Superintendent's Salary Teachers Salaries Other Instructional Salaries Guidance Salaries Curriculum Salaries Superintendent's Salary Principal's Salaries Budget/Accounting Salaries E1 ectri ci ty Transfers To Other Funds M& 0 Supplies Teacher Retirement (Employer Contributions) F.I.C.A. (Employer Contributions)

233,136.91 310,000.00
13,640.00 16,000.00 1,500.00 5,000.00 3,500.00 14,000.00 1,000.00 5,000.00 15,000.00
600.00 2,500.00 11 ,250.00 158,126.91

Credit
18,150.00 3,000.00 9,000.00
300.18 11,250.00 316,426.13 391,000.00 3,000.00
758,726.91

APRIL 17, 1985, ISSUE FEBRUARY 8. 1985. ISSUE

PAGE 90~

GEORGIA FINANCIAL
ACCOUNTING HANDBOOK PART III

COMBINED JOURNAL (DE FORM 0461) (OONTINUEO)

After the books are balanced, financial statements are prepared for the Superintendent and Board. Using the sample ledger accounts a statement follows:

Statment of Revenue And Expenditures 7/1/85 - 7/31/85

General Fund

Revenues

01-3100 01-3200

Revenues from State APEG Revenues From State Superintendents Salary Total Revenue 7/31/85

397,000.00 3,000.00
400,000.00

Expenditures
01-1000-100 01-1000-190 01-2100-190 01-2200-190 01-2300-120 01-2400-190 01-2500-190 01-2600-610 01-2620-620 01-5200-930 01-6000-230 01-6000-270

Teachers Salaries Other Instructional Salaries Guidance Salaries Curriculum Salaries Superintendent's Salary Principal's Salary Budget/Accounting Salaries M/O Supplies Electricity Transfer To Other Funds Teacher Retirement (Employer Contributions) F.I.C.A. (Employer Contributions)

73,640.00 16,000.00 1,500.00 5,000.00 3,500.00 14,000.00 7,000.00
600.00 5,000.00 75,000.00 2,500.00 11,250.00 214,990.00

FEBRUARY 8, 1985, ISSUE

PAGE 90-9

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART III

COMBINED JOURNAL (DE FORM 0461) (CONTINUED)

Changes In Fund Equity Statement (7/1/85 - 7131/85) General Fund

Fund Equity 7/1185 Adjustments To Fund Equity (Plus or Minus) Adjusted Fund Equity 7/1/85 Revenues (711/85 - 7131/85) Expenditures(7/1/85 - 7/31/85) Fund Equity 7/31/85

316,425.30

+

1.43

316,426.73

+ 400,000.00

- 214,990.00

501,436.73

FEBRUARY 8, 1985, ISSUE

PAGE 90-10

GEORGIA FINANCIAL ACCOUNT ING HANDBOOK PART III

COMBINEO JOURNAL (DE FORM 0461) (CONTINUED)

Assets
01-101 01-111
Liabilities
01-421 01-472 01-473 01-476 01-477
01-799

Balance Sheet 7/31/85 General Fund

cash Balance Investments Total Assets

233,736.91 310,000.00

Accounts Payable State Income Tax Payable Teacher's Retirement Payable Insurance Payable FICA Payable Total Liabilities Fund Equity (From Statement)
Total Liabilities &Fund Equity

18,750.00 3,000.00 9,000.00
200.18 11 ,250.00 42,300.18 501,436.73

543,736.91 543,736.91

FEBRUARY 8, 1985, ISSUE

PAGE 90-11

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART III

COMBINED JOURNAL (DE FORM 0461) (CONTINUED) General ledger - Media Fund

21-101

cash Ba1ance

7/31

152.09 II

7/31 95,525.00 I 20,000.00

BAl. 75,677.09 I

21-111 Investments
I 7/1 20,000.00 II 20,000.00
7/31 20,000.00
I BAl. 20,000.00

21-114

Interest Receivable

I

7/1

525.00 : 525.00

I

I

BAl.

0.00 iI

21-799

Fund Equity

I

7/1

I
I

20,677.09

I

BAl.

I I

20,677.09

21-5200

Transfers From Other Funds

I

7/31

I
I

75,000.00

I

BAl.

I I

75,000.00

FEBRUARY 8, 1985, ISSUE

PAGE 90-12

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART III

COMBINED JOURNAL (DE FORM 0461) (CONTINUED)

Account Nos.
21-101 21-111 21-799 21-5200

Media Fund Trial Balance 7/31/85 Media Fund

Account
cash Balance Investments Fund EquHy Transfers From Other Funds

DebHs 75,677 .09 20,000.00
95,677.09

Credits
20,677 .09 75,000.00 95,677 .09

FEBRUARY 8, 1985, ISSUE

PAGE 90-13

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART III

COMBINED JOURNAL (DE FORM 0461) (CONTINUED)
Statement Of Revenues And Expenditures 7/1/85 - 7/31/85 Instructinal Media Fund

Revenues 21-5200

Transfer From Other Funds Total Revenues

75,000.00 75,000.00

Expenditures

Total Expenditures

0.00

FEBRUARY 8, 1985, ISSUE

PAGE 90-14

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART III

COMBINED JOURNAL (DE FORM 0461) (CONTINUED)

Instructional Media Fund Changes In Fund Equity (7/1/85 - 7/31/85)

Fund Equjty 7/1/85 Total Revenues July, 1985 Total Expenditures July, 1985 Fund Equity 7/31/85

20,677 .09 + 75,000.00
0.00 95,677 .05

FEBRUARY 8, 1985, ISSUE

PAGE 90-15

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART III

Assets: 21-101 21-111

COMBINED JOURNAL (DE FORM 0461) (CONTINUED)
Instructional Media Fund Balance Sheet 7/31/85

cash Ba1ance Investments Total Assets

75,677.09 20,000.00

95,677 .09

Liabilities And Equity:

21-799

Liabilities Fund Equity Total Liabilities And Fund Equity

0.00 95,677 .09

95,677 .09

FEBRUARY 8, 1985, ISSUE

PAGE 90-16

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART III

COMBINED JOURNAL (DE FORM 0461) (CONTINUED) E.C.I.A. 1 Ledger Accounts

28-101

28-421

Cash Bt1ance

Account~ Payable

7/1 58,720.48 I

7/31

I I

30,460.00

7/31

I
30,460.00 II

58,720.48

7/1

I

I

I
Bal. 28,260.48 I

Bal.

I 28,260.48

BAL.

28-799

Fund E9uity

I I

0.00

I

I

I

I

I

0.00

FEBRUARY 8, 1985, ISSUE

PAGE 90-17

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART III

Account Nos.
28-101 28-421

COMBINED JOURNAL (DE FORM 0461) (CONTINUED)
Trial Balance 7/31/85 E.C. LA 1 Fund

Account
cash Balance Accounts Payable

Debits 28,260.48 28,260.48

Credits
28,260.48 2B,260.48

FEBRUARY B, 1985, ISSUE

PAGE 90-18

GEORGIA FINANCIAL ACCOUNT ING HANDBOOK PART III

COMBINED JOURNAL (DE FORM 0461) (CONTINUED)

Statements Of Revenues And Expenditure (1131/85 - 1/31185) E.C.I.A. CHAPTER 1 Fund

Revenues (July, 1985)

0.00

Expenditures (July, 1985)

0.00

FEBRUARY 8, 1985, ISSUE

PAGE 90-19

GEORGIA FINANCIAL ACCOUNT ING HANDBOOK PART III

COMBINED JOURNAL (DE FORM 0461) (CONTINUED)

Changes In Fund Equity (7/1/85 - 7131/85)

Fund Equity 7/1/85 Total Revenues July, 1985 Total Expenditures July, 1985 Fund Equity 7/31/85

E.C.I.A. CHAPTER 1 FUND

0.00 0.00 _ _ _0:.00
0.00

FEBRUARY 8, 1985, ISSUE

PAGE 90-20

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART III

COMBINED JOURNAL (DE FORM 0461) (CONTINUED)

Assets 28-101

cash Balance Total Assets

BALANCE SHEET JULY 31, 1985 E.C.I.A. CHAPTER 1 FUND
28,260.48

28,260.48

liabilities And Fund Equity

28-421

Accounts Payable

28-799

Fund Equity

Total liabilities And Fund Equity

28,260.48 0.00

28,260.48

FEBRUARY 8, 1985, ISSUE

PAGE 90-21

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART III

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FEBRUARY 8, 1985, ISSUE

PAGE 90-23

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART III

III ll:lVd )I0090NVH ONIlNrlOOJV
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COMBINED JOURNAL (DE FORM 0461) (CONTINUED)
FY 1981 For post1ng the FY 1981 account numbers to the Comb1ned Journal, see Chapter 3A for the new "Chart of Accounts" and account code class1f1cat10ns and Chapter 129 for the "FY 1981 Convers10n Table" reflect1ng account number changes for FY 81. See page 90-26 for a sample 111ustrat10n of FY 1981 entr1es on the Comb1ned Journal (DE Form 0461).

JULY 1, 1986, ISSUE

PAGE 90-25

GEORGIA FINANCIAL ACCOUNTING HANDBOOK
PART III

II I HI\fd
~0090N\fH 9NI1NnOJJ\f 1\fIJN\fNlj \fI9~039

92-06 39\fd

3nSSI '986L 'L Alnr
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I

CHAPTER 91
LOCAL EFFORT
Local units of administration are required to use local funds in support of the cost of the Adequate Program for Education in Georgia. The minimum amount of local funds required (Required Local Effort) is listed on the Fiscal Year Allotment sheets provided by the Georgia Department of Education.
The amount of local funds "provided and used" is defined as the local revenues for the Fiscal Year, plus the beginning Fund Equity, less the ending Fund Equity (General Fund only).

JANUARY 28, 1985, REVISION JULY 2, 1983, ISSUE

PAGE 91-1

GEORGIA FINANCIAL
ACCOUNTING HANDBOOK PART III

LOCAL EffORT (CONTINUED)

Therefore. the amount of local revenues used for any f1scal Year can be calculated as follows:

DESCRIPTION

DOLLAR AMOUNTS

REVENUES fROM TAXES AND/OR APPROPRIATIONS (Ad Valorem and Sales Tax)

+ ~$

_

REVENUES fROM REAL ESTATE TRANSfER TAX

+

REVENUES fROM TUITION

+

REVENUES fROM INTEREST EARNED

+

REVENUES fROM RENT

+

REVENUES fROM DONATIONS

+

REVENUES fROM fEDERAL GOVERNMENT IN LIEU Of TAXES

+

JULY 1 fUND EQUITY

+

OR

JULY 1 fUND DEfICIT

SUB TOTAL fUNDS AVAILABLE TO EARN A.P.E.G. fUNDS

+

JUNE 30 fUND EQUITY

OR

JUNE 30 fUND DEfICIT

+

GRAND TOTAL REVENUES USED TO EARN A.P.E.G. fUNDS

+

It should be po1nted out that th1s calculat10n must be made tw1ce for each
f1scal Year. The calculat10n should f1rst be made us1ng the f1scal Year Budget. It should be calculated the second t1me after the year 1s over by us1ng f1gures from the f1scal Year f1nanc1al Report.

JANUARY 18. 1985. REVISION JULY 2. 1983. ISSUE

PAGE 91-2

GEORGIA fINANCIAL ACCOUNTING HANDBOOK PART II I

CHAPTER 91A
ill.. LOCAL fAIR SHARE
Local units of administration are required to provide and use local funds in support of the Quality Basic Education Act (Section 20-2-164). A minimum of the equivalent of 4 mills must be provided and used in FY 1987 and a minimum of the equivalent of 5 mills must be provided and used in fY 1988 and thereafter. The minimum amount of local funds (Local fair Share) is listed on the fiscal year allotment sheets provided by the Georgia Department of Education.
Local systems may use any revenue source to raise the Local Fair Share except the fo 11 owi ng.
1. federal funds not designed to replace local revenues
2. State funds
3. Student tuition and fees
4. Funds transferred from another local school system or other public education agency

BUDGETARY SOURCES TO PROVIDE PROJEClED LOCAL FAIR SHARE

The amount of General Fund Local Revenues projected for budgetary purposes can be calculated as follows:

Account Number

Description

Amount

100-0799 100-1110
100-1120
100-1170 100-1190 100-1500 100-1920 100-4820 100-4830

July 1 Unreserved Fund Balance
Ad Valorem Taxes Local Option Sales lax
Appropriations From City/County
Other Taxes Earnings On Investments/Deposits
Contributions From Private Sources Public Law 81-874 Federal Funds In Lieu Of Taxes
General Fund Local fair Share Provided

+ X,XXX,XXX.XX + X,XXX,XXX.XX
+ XXX,XXX.XX
+ X,XXX,XXX.XX
+ XXX,XXX.XX + XXX,XXX.XX + XXX,XXX.XX + XXX,XXX.XX + XXX,XXX.XX
XX,XXX,XXX.XX

Georgia's Quality Basic Education Act - Local Fair Share (20-2-164) IIIn the event a local school system fails to provide for or to use the amount of
local funds required to be raised and applied by the local school system toward the support of the Quality Basic Education Program as defined by this article
during any fiscal year, the state board shall calculate the total amount of such funds which was not raised or used in support of such programs and add that amount to the local fair share being required of the local school system for the next ensuing fiscal year.

FEBRUARY 11, 1986, REVISION JULY 1, 1986 ISSUE

PAGE 91A-l

GEORGIA FINANCIAL
ACCOUNTING HANDBOOK PART III

aBE lOCAL FAIR SHARE (CONTINUED)
Further, should the state auditor cite an audit exception which requires that a local school system return an amount of funds to the state general fund, the State Board of Education shall add said amount to the local fair share of the local school system for the next ensuing year if the board has not been provided documentation that the said amount has already been paid to the state general fund. Such additions will thereby reduce the amount of state funds which shall be allotted to such local school systems. If the State Board of Education deems it unlikely that any local school system will fulfill its obligation relative to its assessed local fair share or any other provisions of this article for any fiscal year, the State Board of Education may withhold any portion or all of the state funds to be allotted during the fiscal year."
lOCAL FAIR SHARE PROVIDED AND USED
The amount of General Fund local Revenues provided and used can be calculated from financial records as follows:

Account Number
100-0799 100-0799 100-1110 100-1120 100-1170 100-1190 100-1500 100-1920 100-4820 100-4830 100-0799 100-0799

Description
July 1 Unreserved fund Balance or July 1 Fund Deficit Ad Valorem Taxes local Option Sales Tax Appropriations From City/County Other Taxes Earnings On Investments/Deposits Contributions From Private Sources Public law 81-874 Federal funds In lieu Of Taxes June 30 Unreserved Fund Balance or June 30 Fund Deficit
General Fund local Fair Share Provided And Used

Amount

... XXX,xxx.xx

XXX,XXX.XX

... XXX,XXX.XX

+ XX,XXX.XX

... XXX,XXX.XX

...

X,XXX.XX

... XX,XXX.XX

...

XXX.XX

... XX,XXX.XX

... XX,XXX.XX

XX,XXX.XX

... XX,XXX.XX

XXX,XXX.XX

This amount must equal or exceed the amount shown on the allotment sheet as the calculated local fair share for the preceeding Fiscal Year including increases resulting from audit exceptions which have not been repaid to the State Board per QBE Code Section 20-2-164h, from failure to meet the 90% expenditure requirement per QBE Code Section 20-2-167a and from failure to meet the local fair share
requirement per QBE Code Section 20-2-167a.

FEBRUARY 11, 1986, REVISION JULY 1, 1986 ISSUE

PAGE 91A-2

GEORGIA FINANCIAL ACCOUNTING HANDBOOK
PART III

OBE LOCAL FAIR SHARE (CONTINUED)
Other local revenues (1995) could be used 1n the Local Fa1r Share after the source of all revenues recorded as "Other" has been 1dent1f1ed. For the purpose of 1dent1fy1ng Other Local Revenues (1995), See form below:

LOCAL REVENUE OTHER THAN LOCAL TAXES FOR FISCAL YEAR __

SYSTE",

_

FEDERAL FUIIDS DESI6IED TO REPLACE LOCAL TAl REVENUES:

I"PACT AID (PL 81-87.) (4820)

REVEIIUE III LIEU OF TAlES (.830) (FOREST SERVICE PAYIIEIITS, TVA PAYIIEIITS, IIATIONAL FLOOO CONTROL PAYIlEIITS, ETC.)

OTHER (.995) (DESCRI8E)

__

IIICOIIE FROII OTHER SOURCES:

APPROPRIATIOIS FROII CITY/COUIIT, GOVERMllEIIT (1110):

lIEER. lilliE. AIID LlOUO- TAl IKOIIE

_

IIATER AIID SEllR IIICOIIE

ELECTRICITY IIICORE

OTHER APPROPRIATIONS

FROII CITy/CUTY

GOVERNII(IIT (DESCRIBE)

TOTAL APPROPRIATIONS FROII CITY/COUITY GOVERMllEIIT

TUITION FROII OTHER 6EOR6IA LEAS (1310)

EARllIII'S 011 IIIVESTllEIITS OR DEPOSITS (1500)

REllTALS (1910)

CONTRIBUTIOIIS FROII EllDOIIMEIITS AND PRIVATE

SOURCES (1920)

I.COIIE FROII SERVICES PROVIDED OTHER LOCAL

EDUCATIOIIAL AGENCIES OR OTHER GOVERIlllEIITAL

UIIITS (1950)

STUDEIIT SUPPLY FEES (1980)

IIICOIIE FROII SALES (FIlED ASSETS) (1995)

I.COIIE FROII SALES (TUllER) (1995)

I.COIIE FROII SALES (OTHER)(19'5)

OTHER LOCAL IKOIIE (1995) (DESCRIBE)

_

I CERTIFY THAT THE ABOVE IIIFOIMATION IS TRUE AIID CORRECT.

DE FOR" 0181 SEPTEIIIER 24, 1915. ISSUE

JULY 1, 1986 ISSUE

PAGE 91A-3

GEORGIA fINANCIAL ACCOUNTING HANDBOOK
PART III

CHAPTER 92
WORTHY FISCAL GOALS FOR LOCAL SCHOOL SYSTEMS
1. So that you can meet emergenc1es, not f1nd yourself 1n def1c1t f1nanc1ng, and not have to borrow funds, work unt11 the general Fund Equ1ty each June 30 1s at least 10% to 25% of the pr10r year taxes and/or appropr1at10ns for the General Fund.
2. Respect the ho11ness of each respect1ve fund. Never allow money 1ntended for a spec1f1c purpose to be spent for another purpose.
3. If you don't already have a good monthly f1nanc1al report so that the super1ntendent and all local board members can be 1nformed concern1ng f1scal operat10n, we suggest you cons1der DE Form 0396.
4. If your board meets regularly the f1rst week 1n the month, cons1der chang1ng the regular meet1ng date to the second week so that current f1scal 1nformat10n can be presented.
5. If you don't already have these, cons1der h1r1ng a qua11f1ed bus1ness manager and good bookkeepers. Our exper1ence has shown that they w111 save the local school system much more than they cost.
6. Look at poss1ble mechan1cal means for keeplng f1nanc1al records even though th1s m1ght mean two or more local school systems cooperat1ng to secure account1ng mach1nes or data process1ng equ1pment. Be sure a good account1ng system 1s 1nstalled.
7. Always 11ve w1thin the law with no deficit financ1ng (See Ga. Code Section 29-2-504).
8. Acqua1nt yourself w1th tax valuat10ns, tax d1gests and millage levies. Know approx1mately how much a mill w111 bring for your school system for the general operat10ns of your school system and for the Debt Serv1ce Fund (Sink1ng Fund) to retire bonds. Know also col1ect10n rat10s.
9. Work unt11 your f1nanc1al system does a smooth job of work1ng w1th the annual financial report subm1tted to the Georgia Department of Education. Call the F1nancial Review Sect10n anyt1me you have a question regarding the Georg1a Financial Accounting Handbook for Local School Systems. Be sure you always have access to a current Georgia Financial Accounting Handbook for Local School Systems.
10. Be sure all reports submitted to state and federal offic1als are supported by your school system's books.
11. Clear all audit exceptions as quickly as poss1ble.

NOVEMBER 26, 1984, ISSUE

PAGE 92-1

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART III

CHAPTER 93
ILLUSTRATION OF CESA INTERNAL SERVICE FUND PROFIT AND LOSS STATEMENT

INTERNAL SERVICE FUND (COOPERATIVE PURCHASING) PROFIT AND LOSS STATEMENT PREPARED FROM REVENUE AND EXPENDITURE RECORDS

JULY 1, 1983 THROUGH JUNE 30, 1984

REVENUES: From Local Boards of Educat~on for Sales or Services From CESAs for Sales or Services Other Local Sources TOTAL REVENUES

160,500.00 3,000.00 500.00

164,000.00

EXPENDITURES: Salaries - All Enterprise Personnel
Travel Office Supplies and Materials Purchases of Supplies and Materials to be
Sold Through Enterprise Fund Utilities Telephone Property Insurance Equipment Purchases CESA Contribution to State Retirement System Workmen's Compensation Insurance CESA Contributions to Social Security TOTAL EXPENDITURES

10,000.00 100.00 100.00

145,500.00 300.00 100.00 100.00
2,000.00 100.00 100.00 100.00

158,500.00

NET PROFIT

5,500.00

****************

* *

SAMPLE ILLUSTRATION

* *

****************

JULY 3, 1983

PAGE 93-1

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART III

CHAPTER 94 FINANCIAL REVIEW SECTION TERRITORIES

SYSTEM
APPLING COUNTY ATKINSON COUNTY BACON COUNTY .. BAKER COUNTY BALDWIN COUNTY
BANKS COUNTY BARROW COUNTY BARTOW COUNTY BEN HILL COUNTY BERRIEN COUNTY
BIBB COUNTY BLECKLEY COUNTY BRANTLEY COUNTY BROOKS COUNTY BRYAN COUNTY
BULLOCH COUNTY BURKE COUNTY BUTTS COUNTY CALHOUN COUNTY CAMDEN COUNTY
CANDLER COUNTY CARROLL COUNTY CATOOSA COUNTY CHARLTON COUNTY CHATHAM COUNTY
CHATTAHOOCHEE COUNTY CHATTOOGA COUNTY CHEROKEE COUNTY CLARKE COUNTY CLAY COUNTY
CLAYTON COUNTY CLINCH COUNTY COBB COUNTY COFFEE COUNTY COLQUITT COUNTY

FINANCIAL REVIEW SECTION TERRITORIES
LANDRUM STONE LANDRUM STONE MOORE
MOORE MOORE SMITH STONE STONE
LANDRUM MOORE STONE STONE STONE
ADAIR ADAIR SMITH STONE STONE
LANDRUM SMITH SMITH STONE STONE
JUSTICE SMITH MOORE ADAIR JUSTICE
LANDRUM STONE SMITH STONE STONE

AUGUST 18, 1986

PAGE 94-1

GEORGIA FINANCIAL
ACCOUNTING HANDBOOK PART III

FINANCIAL REVIEW SECTION TERRITORIES (CONTINUED)

SYSTEM
COLUMBIA COUNTY COOK COUNTY COWETA COUNTY CRAWFORD COUNTY CRISP COUNTY
DADE COUNTY DAWSON COUNTY DECATUR COUNTY DEKALB COUNTY DODGE COUNTY
DOOLY COUNTY DOUGHERTY COUNTY DOUGLAS COUNlY EARLY COUNTY ECHOLS COUNTY
EFFINGHAM COUNTY ELBERT COUNTY EMANUEL COUNTY EVANS COUNTY FANNIN COUNTY
FAYETTE COUNTY FLOYD COUNTY FORSYTH COUNTY FRANKLIN COUNTY FULTON COUNTY
GILMER COUNTY GLASCOCK COUNTY GLYNN COUNTY GORDON COUNTY GRADY COUNTY
GREENE COUNTY GWINNETT COUNTY HABERSHAM COUNTY HALL COUNTY HANCOCK COUNTY

FINANCIAL REVIEW SECTION TERRITORIES
ADAIR STONE JUSTICE LANDRUM JUSTICE
SMITH MOORE STONE MOORE LANDRUM
JUSTICE STONE SMITH STONE STONE
STONE ADAIR JUSTICE LANDRUM MOORE
JUSTICE SMITH MOORE MOORE SMITH
MOORE ADAIR LANDRUM SMITH STONE
ADAIR MOORE MOORE MOORE ADAIR

AUGUST 18, 1986

PAGE 94-2

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART III

FINANCIAL REVIEW SECTION TERRITORIES (CONTINUED)

SYSTEM
HARALSON COUNTY HARRIS COUNTY HART COUNTY HEARD COUNTY HENRY COUNTY
HOUSTON COUNTY IRWIN COUNTY JACKSON COUNTY JASPER COUNTY JEFF DAVIS COUNTY
JEFFERSON COUNTY JENKINS COUNTY JOHNSON COUNTY JONES COUNTY LAMAR COUNTY
LANIER COUNTY LAURENS COUNTY LEE COUNTY LIBERTY COUNTY LINCOLN COUNTY
LONG COUNTY LOWDNES COUNTY LUMPKIN COUNTY MACON COUNTY MADISON COUNTY
MARION COUNTY MCDUFFIE COUNTY MCINTOSH COUNTY MERIWETHER COUNTY MILLER COUNTY
MITCHELL COUNTY MONROE COUNTY MONTGOMERY COUNTY

FINANCIAL REVIEW SECTION TERRITORIES
SMITH JUSTICE MOORE JUSTICE LANDRUM
LANDRUM STONE MOORE SMITH LANDRUM
ADAIR ADAIR JUSTICE MOORE LANDRUM
STONE JUSTICE JUSTICE STONE ADAIR
STONE STONE HOORE LANDRUM HOORE
JUSTICE ADAIR STONE JUSTICE STONE
STONE LANDRUM JUSTICE

AUGUST 18. 1986

PAGE 94-3

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART II I

FINANCIAL REVIEW SECTION TERRITORIES (CONTINUED)

SYSTEM
MORGAN COUNTY MURRAY COUNTY MUSCOGEE COUNTY NEWTON COUNTY OCONEE COUNTY
OGLETHORPE COUNTY PAULDING COUNTY PEACH COUNTY PICKENS COUNTY PIERCE COUNTY
PIKE COUNTY POLK COUNTY PULASKI COUNTY PUTNAM COUNTY QUITMAN COUNTY
RABUN COUNTY RANDOLPH COUNTY RICHMOND COUNTY ROCKDALE COUNTY SCHLEY COUNTY
SCREVEN COUNTY SEMINOLE COUNTY SPALDING COUNTY STEPHENS COUNTY STEWART COUNTY
SUMTER COUNTY TALBOT COUNTY TALIAFERRO COUNTY TATTNALL COUNTY
TAYLOR COUNTY TE LF AIR COUNTY TERRELL COUNTY THOMAS COUNTY TIFT COUNTY

FINANCIAL REVIEW SECTION TERRITORIES
ADAIR SMITH JUSTICE SMITH ADAIR
ADAIR SMITH LAMDRUM SMITH STONE
LANDRUM SMITH LANDRUM SMITH JUSTICE
MOORE JUSTICE ADAIR SMITH JUSTICE
ADAIR STONE LANDRUM MOORE JUSTICE
JUSTICE JUSTICE ADAIR LANDRUM
LANDRUM LANDRUM JUSTICE STONE STONE

AUGUST 18, 1986

PAGE 94-4

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART III

FINANCIAL REVIEW SECTION TERRITORIES (CONTINUED)

SYSTEM
TOOMBS COUNTY TOWNS COUNTY TREUTlEN COUNTY TROUP COUNTY TURNER COUNTY
TWIGGS COUNTY UNION COUNTY UPSON COUNTY WALKER COUNTY WALTON COUNTY
WARE COUNTY WARREN COUNTY WASHINGTON COUNTY WAYNE COUNTY WEBSTER COUNTY
WHEELER COUNTY WHITE COUNTY WHITFIELD COUNTY WILCOX COUNTY WILKES COUNTY
WILKINSON COUNTY WORTH COUNTY

FINANCIAL REVIEW SECTION TERRITORIES
LANDRUM MOORE JUSTICE JUSTICE STONE
MOORE MOORE LANDRUM SMITH ADAIR
STONE ADAIR ADAIR LANDRUM JUSTICE
LANDRUM MOORE SMITH LANDRUM ADAIR
MOORE STONE

AMERICUS CITY AtlANTA CITY BREMEN CITY BUFORD CITY CALHOUN CITY
CARROLLTON CITY CARTERSVILLE CITY CHICKAMAUGA CITY COMMERCE CITY DALTON CITY

JUSTICE SMITH SMITH MOORE SMITH
SMITH SMITH SMITH MOORE SMITH

AUGUST 18, 1986

PAGE 94-5

GEORGIA FINANCIAL
ACCOUNTING HANDBOOK PART I II

nftANCIAL REVIEW SECTIO", TERRITO,RIES (CONTINUED)

~YSTEM
DECATUR CITY DUBUN CITY FITZGERALD CITY GAINESVILLE CITY HOGANSVILLE CITY
JEFFERSON CITY LAGRANGE CITY MARIETTA CITY PELHAM CITY ROME CITY
SOCIAL CIRCLE CITY THOMASTON CITY THOMASVILLE CITY TRION CITY VALDOSTA CITY
VIDALIA CITY WAYCROSS CITY WEST POINT CITY

FINANCIAL REVIEW SECTION TERRITORIES
MOORE JUSTICE STOM MOORE JUSTICE
MOORE JUSTICE SMITH STONE SMITH
ADAIR LAtIDRUH STONE
SM~ITH
STONE
LANDRUM STON JUSTICE

AUGUST 18, 1986

PAGE 94-6

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART III

FINANCIAL REVIEW SECTION TERRITORIES (CONTINUED)

NORTHEAST GA CESA NORTH GA CESA PIONEER CESA METRO CESA NORTHWEST GA CESA
WEST GA CESA GRIFFIN CESA MIDDLE GA CESA OCONEE CESA CEN SAV R CESA
CHAlT FLINT CESA HEART OF GA CESA FIRST DISTRICT CESA SOUTHWEST GA CESA
COASTAL PLAINS CESA OKEFENOKEE CESA

ADAIR MOORE MOORE SMITH SMITH
JUSTICE LANDRUM LANDRUM ADAIR ADAIR
JUSTICE LANDRUM ADAIR STONE
STONE STONE

AUGUST 15. 1986

PAGE 94-7

GEORGIA FINANCIAL
ACCOUNTING HANDBOOK PART III

FINANCIAL REVIEW SECTION TERRITORIES (CONTINUED)

SUMMARY (LANDRUM)

SYSTEM
APPLING BACON BIBB CANDLER CLAYTON CRAWFORD
DODGE EVANS GLYNN HENRY HOUSTON JEFF DAVIS
LAMAR MACON MONROE PEACH PIKE
PULASKI SPALDING TATTNALL TAYLOR TELFAIR TOOMBS UPSON
WAYNE WHEELER WILCOX
THOMASTON VIDALIA

SYSTEM
GRIFFIN CESA HEART OF GA CESA MIDDLE GA CESA

AUGUST 15. 1986

PAGE 94-8

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART III

FINANCIAL REVIEW SECTION TERRITORIES (CONTINUED)

SUMMARY (SMITH)

SYSTEM
BARTOW BUTTS CARROLL CATOOSA CHATTOOGA COBB
DADE DOUGLAS FLOYD FULTON GORDON
HARALSON JASPER MURRAY NEWTON PAULDING
POLK PUTNAM ROCKDALE WALKER WHITFIELD
ATLANTA BREMEN CALHOUN CARROLLTON CARTERSVILLE
CHICKAMAUGA DALTON MARIETTA ROME TRION

SYSTEM
METRO CESA NW GA CESA

AUGUST 15. 1986

PAGE 94-9

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART I II

FINANCIAL REVIEW SECTION TERRITORIES (CONTINUED)

SUMMARY (STONE)

SYSTEM
ATKINSON BAKER BEN HILL BERRIEN BRANTLEY
BROOKS BRYAN CALHOUN CAMDEN CHARLTON
CHATHAM CLINCH COFFEE COLQUITT COOK
DECATUR DOUGHERTY EARLY ECHOLS EFFINGHAM GRADY
IRWIN LANIER LIBERTY LONG LOWNDES McINTOSH
MILLER MITCHELL PIERCE SEMINOLE THOMAS
TIFT TURNER WARE WORTH

SYSTEM
FITZGERALD PELHAM THOMASVILLE VALDOSTA WAYCROSS
COASTAL PLAINS CESA OKEFENOKEE CESA SW GA CESA

AUGUST 15. 1986

PAGE 94-10

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART I II

FINANCIAL REVIEW SECTION TERRITORIES (CONTINUED)

SUMMARY (MOORE)

SYSTEM
BALDWIN BANKS BARROW BLECK LEY CHEROKEE
DAWSON DEKALB FANNIN FORSYTH FRANKLIN
GILMER GWINNETT HABERSHAM HALL HART JACKSON
JONES LUMPKIN MADISON PICKENS UNION
RABUN STEPHENS TOWNS TWIGGS WHITE
WILKINSON

SYSTEM
BUFORD COMMERCE DECATUR GAINESVILLE JEFFERSON
NORTH GA CESA PIONEER CESA

AUGUST 15. 1986

PAGE 94-11

GEORGIA FINANCIAL
ACCOUNTING HANDBOOK PART III

FINANCIAL REVIEW SECTION TERRITORIES (CONTINUED)

SUMMARY (ADAIR)

SYSTEM
BULLOCH BURKE CLARKE COLUMBIA ELBERT
GLASCOCK GREENE HANCOCK JEFFERSON JENKINS
LINCOLN MCDUFFIE MORGAN OCONEE OGLETHORPE
RICHMOND SCREVEN TALIAFERRO WALTON WARREN
WASHINGTON WILKES

SYSTEM
SOCIAL CIRCLE
CEN SAV R CESA FIRST DIS CESA N E GA CESA
OCONEE CESA

AUGUST 15 .. 1986

PAGE 94-12

GEORGIA FINANCIAL
ACCOUNTING HANDBOOK PART III

FINANCIAL REVIEW SECTION TERRITORIES (CONTINUED)

SUMMARY (JUSTICE)
SYSTEM
CHATTAHOOCHEE CLAY COWETA CRISP DOOLY
EMANUEL FAYETTE HARRIS HEARD JOHNSON
LAURENS LEE MARION MERIWETHER MONTGOMERY
MUSCOGEE QUITMAN RANDOLPH SCHLEY STEWART
SUMTER TALBOT TERRELL TREUTLEN TROUP
WEBSTER

SYSTEM
AMERICUS DUBLIN HOGANSVILLE LAGRANGE WEST POINT
CHATT FLINT CESA WGA CESA

AUGUST 15. 1986

PAGE 94-13

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART III

CHAPTER 95

FINANCIAL ADVISORY AND ASSISTANCE SECTION TERRITORY ASSIGNMENTS FOR SCHOOL FOOD NUTRITION AND CHILD CARE

BOBBIE SMITH

BAKER COUNTY BARTOW COUNTY
CARTERSVILLE CITY BIBB COUNTY BROOKS COUNTY

GILMER COUNTY GORDON COUNTY
CALHOUN CITY GRADY COUNTY GWINNETT COUNTY

SUMTER COUNTY AMERICUS CITY
TALBOT COUNTY TAYLOR COUNTY TERRELL COUNTY

CALHOUN COUNTY CARROLL COUNTY
CARROLLTON CITY CATOOSA COUNTY CHATTAHOOCHEE COUNTY

BUFORD CITY HARALSON COUNTY
BREMEN CITY HARRIS COUNTY HEARD COUNTY

THOMAS COUNTY THOMASVILLE CITY
TIFT COUNTY TROUP COUNTY
LAGRANGE CITY

CHATTOOGA COUNTY TRION CITY
CHEROKEE COUNTY CLAY COUNTY CLAYTON COUNTY

HENRY COUNTY HOUSTON COUNTY LAMAR COUNTY LEE COUNTY LOWNDES COUNTY

HOGANSVILLE CITY WEST POINT CITY TURNER COUNTY UPSON COUNTY THOMASTON CITY

COBB COUNTY MARIETTA CITY
COOK COUNTY CRAWFORD COUNTY

VALDOSTA CITY MACON COUNTY MARION COUNTY
TRI-COUNTY HIGH

WALKER COUNTY CHICKAMAUGA CITY
WEBSTER COUNTY WH IT FI ELD COUNTY

CRISP COUNTY DADE COUNTY DECATUR COUNTY DEKALB COUNTY
DECATUR CITY

MERIWETHER COUNTY MILLER COUNTY MITCHELL COUNTY
PELHAM CITY MURRAY COUNTY

DALTON CITY WORTH COUNTY

DOOLY COUNTY DOUGHERTY COUNTY DOUGLAS COUNTY EARLY COUNTY ECHOLS COUNTY

MUSCOGEE COUNTY PAULDING COUNTY PEACH COUNTY PIKE COUNTY POLK COUNTY QUITMAN COUNTY

FANNIN COUNTY FAYETTE COUNTY FLOYD COUNTY
ROME CITY FULTON COUNTY
ATLANTA CITY

RANDOLPH COUNTY ROCKDALE COUNTY SCHLEY COUNTY SEMINOLE COUNTY SPALDING COUNTY STEWART COUNTY

MARCH 3, 1983

PAGE 95-1

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART III

TERRITORY ASSIGNMENTS FOR SFN AND CHILD CARE (CONTINUED)

CAROLYN SIMS

APPLING COUNTY ATKINSON COUNTY BACON COUNTY BALDWIN COUNTY BAN KS COUNTY

HANCOCK COUNTY HART COUNTY IRWIN COUNTY JACKSON COUNTY
COMMERCE CITY

TELFAIR COUNTY TOOMBS COUNTY
VIDALIA CITY TOWNS COUNTY TREUTLEN COUNTY

BARROW COUNTY BEN HILL COUNTY
FITZGERALD CITY BERRIEN COUNTY

JEFFERSON CITY JASPER COUNTY JEFF DAVIS COUNTY JEFFERSON COUNTY

TWIGGS COUNTY UNION COUNTY WALTON COUNTY
SOCIAL CIRCLE CITY

BLECKLEY COUNTY BRANTLEY COUNTY BRYAN COUNTY BULLOCH COUNTY BURKE COUNTY

JENKINS COUNTY JOHNSON COUNTY JONES COUNTY LANIER COUNTY LAURENS COUNTY

WARE COUNTY WAYCROSS CITY
WARREN COUNTY WASHINGTON COUNTY WAYNE COUNTY

BUTTS COUNTY CAMDEN COUNTY CANDLER COUNTY CHARLTON COUNTY

DUBLIN CITY LIBERTY COUNTY LINCOLN COUNTY LONG COUNTY

WHEELER COUNTY WH ITE COUNTY WILCOX COUNTY WILKES COUNTY

CHATHAM COUNTY CLARKE COUNTY CLINCH COUNTY COFFEE COUNTY COLQUITT COUNTY

LUMPKIN COUNTY MADISON COUNTY MCDUFFIE COUNTY MCINTOSH COUNTY MONROE COUNTY

WILKINSON COUNTY

COLUMBIA COUNTY COWETA COUNTY DAWSON COUNTY DODGE COUNTY

MONTGOMERY COUNTY MORGAN COUNTY NEWTON COUNTY OCONEE COUNTY

EFFINGHAM COUNTY ELBERT COUNTY EMANUEL COUNTY EVANS COUNTY FORSYTH COUNTY

OGLETHORPE COUNTY PICKENS COUNTY PIERCE COUNTY PULASKI COUNTY PUTNAM COUNTY

FRANKLIN COUNTY GLASCOCK COUNTY GLYNN COUNTY GREENE COUNTY

RABUN COUNTY RICHMOND COUNTY SCREVEN COUNTY STEPHENS COUNTY

HABERSHAM COUNTY HALL COUNTY
GAINESVILLE CITY MARCH 3, 1983

TALIAFERRO COUNTY TATTNALL COUNTY PAGE 95-2

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART III

CHAPTER 95
SAMPLE ILLUSTRATION Of GENERAL fUND fISCAL YEAR-TO-DATE REPORT (DE fORM 0396)
This chapter 1neludes an 111ustrat1on of the above report for July 1, 1985, through January 31, 1986, as follows:

GENERAL FUND FISCAL YEAR-TD-DATE REPORT GENERAL FUND REVENUES
BEGINNING JULY 1, 19B5, THROUGH THE END OF Januray 31 ,19 86
(MONTH/DAY) (l1f)
58 PERCENT OF FISCAL YEAR COMPLETED SCHOOL SYSTEM Pine tree County

I

I ITEM

DESCRIPTION I NUM8ER

I

I

(1)

I (2)

I

REVENUES:

I

LOCAL (TAXES AND/ I 1110-

OR APPROPRIATIONS) I 1190

1310-

LOCAL (OTHER)

1995

STATE (A.P.E .G.) STATE (OTHER) FE OERAL OTHER SOURCES

3100 32003900 48204995 52005995

TOTAL REVENUES

7 MONTHS/FY 86 -ACTUAL (GENERAL LEDGER)
(31
765,090.00 6,500.00
2,863,505.83 321,819.00
77,453.00
4,034,367.83

86 FY BUDGET (41
1,352,000.00 6,500.00
4,908,864.00 915,000.00
140,000.00 7,322,364.00

I PERCENT I (COL.3 I DIVIDED I BY COL.4) I
(5 ) I I I I
57 " 100 " 58 " 35 "
"
55 "
55 "

DE FORM 0396 (JULY 1,1985, ISSUE)
JULY 1, 1985, ISSUE

PAGE 95-1

PAGE 1 of 4
GEORGIA fINANCIAL ACCOUNTING HANDBOOK PART I II

SAMPLE ILLUSTRATION OF GENERAL FUND FISCAL YEAR-TO-DATE REPORT (DE FORM 0396) (CONTINUED)

__ .-_- .. -.",-

..

GENERAL FUND FISCAL YEAR-TO-DATE REPORT GENERAL FUND EXPENDITURES
BEGINNING JULY 1, 19B5, THROUGH THE END OF January 31 (MONTH/DA Y)
_~_-,ij_ _ PERCENT OF FISCAL YEAR COMPLETED ',CHOOl ~ 1<; IE M :' ) riP' f"" ',','In t. Z

1986
1"Yif)

I

I InM I 7 MONTHS/F Y 86 I

1 PERCENT I

I DESCRIPTION

1 NUMBER 1 -ACTUAL

1 86 FY BUDGET I (COL.3 I

I

I

I (GENERAL LEDGER) I

1 DIVIDED I

I

I

1

1

I BY COL. 4) I

1

(1)

I (2) I

(3)

I

(4)

I (5) 1

I EXPENDITURES 1 INSTRUCTION

1 1000- I I 000 I

I 2,705,602.92 I

I 4,638,177.00 1

I 58" I

I SUPPORT SERVICES 1 2100- I

I

1

I

I (PUPIl)

I 000 1

96,535.75 I

165,492. 00 I

58 "

I SUPPORT SERVICES I

I

I

1

I ( INSTRUCTIONAL

I 2200- I

I

I

I (STAFF)

I 000 I

128,232.75 I

220,000.00 1

58"

I GENERAL

I 2300- 1

1

I

1 ADMINISTRATION

I 000 I

121,135.00 I

224,900.00 I

54 "

I SCHOOL I ADMINISTRATION

1 2400- I I 000 I

1
24),314.00 I

I

420,600.00 1

58 "

I SUPPORT SERVICES I 2500- I

I

I

I (BUSINESS)

I 000 1

II,OOO.DO 1

22,000.00 1

)0"

I MAINTENANCE AND I 2600- I

I

I

1 OPERATION

I 000 I

436,975.0() I

an,9)0.OO I

50"

I STUDENT 1 TRANSPORTATI ON

1 2700- I I 000 I

I 16,065.00 I

9,000.00

1
I

179" I

I SUPPORT SERVICES 1 2800- 1

1 CENTRAL

I 000 I

1
3,800.00 1

I

I

6,100.00 1_ _ _6~1

I OTHER SUPPORT

I 2900- I

I SERVICES

1 000 1

I SCHOOL FOOD ANO I 3100- I

I NUTRITION SERVICES I 000

1
7,000.00 .....1 I....-...........

7,000.00

I 1_

_

_10!'JI

I1_

_

~

I
I

I OTHER OPERATIONS I OF NON INSTRUCI TI ONAL SE RV ICE S I FACILITIES I ACQUISTION AND I CONSTRUCTION

1
I 3900I 000
1
I 4000I 000

...........)...v..'"v.~"v""~\V.).-...'."c...".."........

.....",. I

.... I

93,900.00 I

134,150.00

1
I
"I I
7~ I

I I OTHER USES

I 5000I 000

129,474.00

I I

222, 000. 00

I 58" I

I EMPLOYEE BENEFITS 1

I

I

1 (EMPLOYER COSTS I ONLY)

I 6000I 000

I 135,103.00 I

231,600.00

I 58" I

I

I

I

I

I

I

I

I TOTAL EXPENDITURES I

I
1

4,130,137.42

I I

7,174,969.00

I I

5~ I

DE FORM 0396 (JULY 1,1985. ISSUE)

PAGE 2 of 4

JULY 1, 1985, ISSUE

PAGE 95-2

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART I II

SAMPLE ILLUSTRATION Of GENERAL fUND fISCAL YEAR-TO-DATE REPORT (DE fORM 0396) (CONTINUED)

SCHOOL SYSTEM

GENERAL FUND FISCAL YEAR-TO-DATE REPORT CHANGES IN GENERAL FUND EQUITY
JULY 1. 1985. THROUGH January 31, 19 86 (MONTH/OAY) ~
Pinetree county

ITEM

DESCRIPTION

NO.

(1)

(2)

A

JULY 1, 1985, GENERAL FUND

EQUITY

ADJUSTMENT TO JULY 1, 1985, GENERAL FUND EQUITY (PLUS OR MINUS)

TOTAL REVENUES & INCOMING TRANSFERS (PLUS) (FROM PAGE 1, COLUMN 3)

TOTAL EXPENDITURES AND OUTGOING TRANSFERS (MINUS) (FROM PAGE 2. COLUMN 3)

END OF PERIOD GENERAL FUND EQUITY (THIS LINE MUST BE THE SAME AS ITEM 721-799, COLUMN 3. PAGE 4)

EQUATION: ITEM A, COLUMN 4 PLUS OR MINUS ITEM B, COLUMN 4 PLUS ITEM C, COLUMN 4 MINUS ITEM 0, COLUMN 4 EQUALS ITEM E, COLUMN 4

ACCOUNT NOS. (3)
721799

AMOUNTS
(4)
193,092.58

+

631. 15

4,034,367.83

4,130.137.42

97,954.14

OE FORM 0396 (JULY l,19B5. ISSUE)

PAGE 3 of4

JULY 1. 1985. ISSUE

PAGE 95-3

GEORGIA fINANCIAL ACCOUNTING HANDBOOK
PART I II

SAMPLE ILLUSTRATION Of GENERAL fUND fISCAL YEAR-TO-DATE REPORT (DE fORM 0396) (CONTINUED)

GENERAL FISCAL YEAR-TO-OATE REPORT END OF PERIOD GENERAL FUND BALANCE SHEET SCHOOL SYSTEM Pinetree County

I

1
I

I

DE SCR IPTI ON (1)
ASSETS: CASH BALANCES INVESTMENT BALANCES RECEIVABLES INVENTORy FOR RESALE

1

I ITEM I

I NUMBER 1 I (2) I

I

I

I 101 I

I

I

I 111 1

1 114- I

I 153 1

I

1

1 172 I

OTHER CURRENT ASSETS TOTAL ASSE TS (MUST BE SAME AS

1

1

1 199 1

I

I

TOTAL LIABILITIES AND FUND

I .... 1

EQUITY BELOW)

I ..

LIABILlITES- ANO

- ---- ..",:\10'".\'..S"'#''''V"''i.,.~'o\.s(.~).~.....'-1

FUNO EQUITY:



I

'1

I

INTERFUND ACCOUNTS PAYABLE

I 402 I

I 411- I

ACCOUNTS PAYABLE

1 421 I

LOANS ANO

I 451- I

INTEREST PAYABLE

I 455 I

FEOERAL AND STATE

I 471- I

INCOME TAX PAYABLE

I 412 I

RETIREMENT

I 413- I

PAYABLE

1 414

INSURANCE

I 415-

PAY ALE

1 416

SOCIAL SECURITY

I

PAYABLE

1 417

I 419-

OTHER CURRENT LIABILITIES

1 499

FUND EQUITY

1

(MUST BE SAME AS PAGE 3.

1 121-

ITEM E, COLUMN 4)

I 199

I

TOTAL LIABILITIES AND FUNO EQUITY

I

(MUST BE SAME AS TOTAL ASSETS ABOVE) I

DE FORM 0396 (JUL Y 1.1985. ISSUE)

END OF PERIOD ( January 31, , 19~)
(MONTH/DAY) (YR)
DOLLAR AMOUNT
(3 ) 7,954.14
200,000.00 500.00

208,454.14

I

I

I

1

10,050.00

I I

100,450.00

1
I

I

I

I

I

t

I

I

1

1

I

t

97,954.14

I I

I

208,454.14

I I

PAGE 4 of 4

JULY 1,1985, ISSUE

PAGE 95-4

GEORGIA fINANCIAL ACCOUNTING HANDBOOK PART II I

CHAPTER 98

UNEMPLOYMENT INSURANCE COVERAGE

The 1977 session of the Georgia General Assembly passed a number of amendments to the Georgia Employment Security Law. One of the amendments provides unemployment
insurance coverage to employees of state and local governments (including school
boards) effective January 1, 1978. In extending this coverage to governmental workers, it excludes from coverage (1) elected officials in nontenured major policymaking and advisory positions, and policymaking and advisory positions which require less than eight hours of work a week; (2) members of a legislative body or the judiciary; and (3) members of the state National Guard of Air National Guard. It also permits governmental entities the option to reimburse the Employment Security Trust fund dollar for dollar for all benefits paid to their former employees rather than paying taxes as a private employer does.

Each school board has been responsible for making payments to finance the new unemployment insurance coverage. Boards had the option to elect to pay unemployment contributions under the regular contributory method of payment or to make payments in lieu of contributions (reimbursable method). Each board was required to make an election as to method of payment.

Under the regular contributory method of payment, each board paid 2.70% of the first $7,000 in covered wages paid to each employee in a calendar year beginning January 1, 1978. The standard 2.70% tax rate is in effect for the first two years of coverage. Beginning with the third year of coverage, each school system is rated based on its own experience and this could result in a tax rate either higher or lower than 2.70%, depending upon the past experience of the school system.

Under the reimbursable method of payment, each board reimbursed the State on a dollar-for-dollar basis the amount of unemployment insurance claims paid to its former employees. The maximum potential amount that could have been paid to a former employee under the present Georgia Employment Security law is $3,510.00.
However, not all claimants qualify for the maximum weekly benefit amount or received benefits for the maxim~m number of weeks.

The election to make payments under either the regular contributory method or the reimbursable method was binding for a two-year period. At the end of a two-year period, the board might by written notice, have required that its method of payment be changed for the next two-year period.

Each board was responsible for reporting and making payments for unemployment insurance effective January 1,1978. Reports were made on a quarterly basis and were due at the end of the month following the end of the calendar quarter. For example, the report covering the period January, February and March, 1978, was due on April 30, 1978. The quarterly reporting forms were preprinted with the account number, name, mailing address, tax rate and other pertinent information and were mailed to the school system before the end of each quarter. You were
required to provide total gross covered wages, non taxable wages and taxable wages paid during the quarter.

AUGUST 1, 1983

PAGE 98-1

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART III

UNEMPLOYMENT INSURANCE COVERAGE (CONTINUED)

The name, social security number and total amount of covered wages paid to each employee must have been listed. The list of employees was grouped by school or location or in any sequence convenient for the system provided that each employee is included in a single report. Noncovered wages, such as wages paid to officials elected by the public and sick pay paid under a plan or system, should have been completely omitted from the report. If the election to make payments under the contributory method was made, the correct amount of tax due should be remitted
with the report. Boards electing the reimbursable method of payment are billed one a quarterly basis.

QUESTIONS AND ANSWERS

l. QUESTION: When do the school systems become liable for unemployment insurance coverage on their employees?

ANSWER:

1/1178

2. QUESTION: When was the first contributory payment due?

ANSWER:

4/30178

3. QUESTION: Who is covered .in the public school systems?

ANSWER:

All employees (teachers, bus drivers, lunchroom workers, custodians, and janitors, maintenance workers, office help, etc.) except elected officials.

4. QUESTION:

If, a professional person is employed for the school year (10 months) and is given a normal or written contract to return for the following school year, is that person eligible for benefits during the summer?

ANSWER: No.

5. QUESTION:

When a nonprofessional person is on an unpaid vacation, during the summer, is he/she eligible for unemployment compensation even if it is understood that his/her job is available when the vacation period is over?

ANSWER:

A. All nonprofessional individuals unpaid during the summer months (between terms) who have -reasonable assurance- of returning to employment in the ensuing school term will be denied unemployment benefits.

AUGUST 1, 1983

PAGE 98-2

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART III

UNEMPLOYMENT INSURANCE COVERAGE (CONTINUED)

The name, social security number and total amount of covered wages paid to each employee must have been listed. The list of employees was grouped by school or location or in any sequence convenient for the system provided that each employee is included in a single report. Noncovered wages, such as wages paid to officials elected by the public and sick pay paid under a plan or system, should have been completely omitted from the report. If the election to make payments under the contributory method was made, the correct amount of tax due should be remitted
with the report. Boards electing the reimbursable method of payment are billed one a quarterly basis.

QUESTIONS AND ANSWERS

l. QUESTION: When do the school systems become liable for unemployment insurance coverage on their employees?

ANSWER: 1/1/78

2. QUESTION: When was the first contributory payment due?

ANSWER: 4/30178

3. QUESTION: Who is covered in the public school systems?

ANSWER:

All employees (teachers, bus drivers, lunchroom workers, custodians, and janitors, maintenance workers, office help, etc.) except elected officials.

4. QUESTION:

If, a professional person is employed for the school year (10 months) and is given a normal or written contract to return for the following school year, is that person eligible for benefits during the summer?

ANSWER: No.

5. QUESTION:

When a nonprofessional person is on an unpaid vacation, during the summer, is he/she eligible for unemployment
compensation even if it is understood that his/her job is
available when the vacation period is over?

ANSWER:

A. All nonprofessional individuals unpaid during the
summer months (between terms) who have "reasonable assurance" of returning to employment in the ensuing school term will be denied unemployment benefits.

AUGUST 1, 1983

PAGE 98-2

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART III

UNEMPLOYMENT INSURANCE COVERAGE (CONTINUED)

B. Nonprofessional individuals who are unpaid during Christmas or spring holidays would be eligible if the Christmas or spring holidays are during a school term. If the beginning of Christmas or spring holidays coincides with the end of a school term and there is
"reasonable assurance" that the individuals will return to employment at the beginning of the next school term,
they will be denied unemployment insurance benefits.

6. QUESTION: How often may a person claim unemployment benefits?

ANSWER:

Under the Georgia Law when individuals file claims and are
momentarily eligible, they may establish basic benefits for a maximum of 26 weeks. In establishing the claim, they establish a 'benefit year" of 52 weeks. Therefore, they may receive the basic 26 weeks, if eligible, anytime during the 52 week period. NOTE: During periods of high unemployment, based strictly
on the provisions of the Georgia Employment Security law, an individual may be entitled up to 13 additional weeks. This
is referred to as -Extended Benefits".

1. QUESTION: How long is an unemployed person (claimant) eligible for benefits?

ANSWER:

A maximum of 26 weeks of regular UI. During periods of high unemployment, an individual may be entitled to 13 additional weeks.

8. QUESTION: How much is a claimant entitled to draw?

ANSWER: A maximum of $90/week and a minimum of $21/week.

9. QUESTION: How will a school system pay for these claims?

ANSWER:

One of two ways: (1) contributions or (\'2) reimbursing Georgia Department of Labor for payments to claimant.

10. QUESTION: What is the cost to the school system for each of the above methods?

ANSWER: (1) Contribution = 2.1% of first $1,000 per year of each employee's salary or wages.

(2) Reimbursable - Payment of actual cost of each claim.

AUGUST 1, 1983

PAGE 98-3

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART II I

UNEMPLOYMENT INSURANCE COVERAGE (CONTINUED)

11. QUESTION: Which will cost the system the least amount of money each year?

ANSWER: This will depend on each individual system's size and number of claims filed.

12. QUESTION: What is the advantage of the contributory method?

ANSWER: (1) Easier to budget for exact expenditure each year. (2) Not apt to keep undesirable employees.

13. QUESTION: What is the advantage of the reimbursable method?

ANSWER:

In case of low employee turn-over rate, it could result in
less cost to the school system. Also. a large system should look closely at both methods to determine which is the best method for it.

For example - (30 employees - each making $7.000 or more.)

Situation 1: Three people unemployed for four weeks each.

CONTRIBUTORY METHOD

REIMBURSABLE METHOD

$7,000 base (Max.)
X 2.7% $189.00 per employee X 30 employees $5.670.00/year

$90.00/week (per claim)
X 4 weeks $360 X 3 employees $1.080.00/year

Situation 2: 11 people unemployed for 11 weeks each.

CONTRIBUTORY METHOD

REIMBURSABLE METHOD

(still $5.670.00/year. However. high rate of unemployment could cause the 2.7% contribution rate to increase in future years).

$90.00/week (per claim) X 11 weeks $990.00 X 11 employees
$10.890.00

14. QUESTION: In the reimbursable method, does the system pay the funds directly to the employee?

ANSWER: No. The State pays the ex-employee and the school system reimburses the State on a quarterly basis.

AUGUST 1. 1983

PAGE 98-4

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART III

UNEMPLOYMENT INSURANCE COVERAGE (CONTINUED)

15. QUESTION: Can the unemployment insurance be deducted from the employee's salary?

ANSWER: No. The school system will have to pay this from its own funds.

16. QUESTION: What is meant by -Taxable Wage Base of $7,000" (Contributory method)?

ANSWER:

This base is set by state law and mandated by federal law.
It means that under the contributory method that the school system will pay insurance tax on salaries or wages on the first $7,000 on each employee/year. EXAMPLE:

John Doe

Mary Doe

Yearly Earnings

$10,000

$3,500

Premium Paid

2.7%

2.7%

Amount Paid to State

2.7% of $7,000 or $189 2.7% of $3,500 or $94.50

17. QUESTION: Will the Labor Department contact the school system regarding the law payment of claims etc.?

ANSWER: Yes.

18. QUESTION: Will school systems. have to handle claims?

ANSWER: No. The claims will be filed by the employee and processed by the Labor Department.

19. QUESTION: Will the school system have to keep records, make reports, etc?

ANSWER: Yes. Those mandated by law and the Labor Department.

20. QUESTION: Is there any in,stance where an employee ,is rele.ased when he/she will not be eligible for unemployment benefits?

ANSWER:

Yes, when the employee separates under disqualifying
conditions, refuses an offer of suitable employment, or fails to meet other eligibility requirements of the law. A
system electing the reimbursable method should be
responsible for an benefits paid, provlded the individual mitigated the disqualification. Under the contributory method, the system could be relieved of any benefits paid subsequent to a disqualification period provided their
actions in responding to the Agency were in a timely manner.

AUGUST 1, 1983

PAGE 98-5

GEORGIA FINANCIAL
ACCOUNTING HANDBOOK PART I II

UNEMPLOYMENT INSURANCE COVERAGE (CONTINUED)

21. QUESTION: Is an employee that quits his/her job (not fired) ever eligible for benefits?

ANSWER: Yes. If he/she quits for good cause in connection with work.

22. QUESTION: If an employee who has been drawing benefits during the summer vacation reports back to work when school opens and is notified that he/she will not be employed, is he/she
eligible to draw additional benefits?

ANSWER:

If the individual reports back to school and is not re-employed, he/she would be potentially eligible to receive the remaining benefits in his/her benefit year.

23. QUESTION: Will the employee file unemployment benefit claims with the school system?

ANSWER:

No, the ~laim must be filed by the claimant with the Unemployment Insurance Office of the Georgia Labor Department.

24. QUESTION: How soon after being discharged from employment can an employee file a claim?

ANSWER: The day of 4ischarge, if desired.

25. QUESTION: If an elected superintendent of a school system is removed from office with cause, is the superintendent eligible for benefits?

ANSWER: No. Elected officials do not qualify for benefits.

26. QUESTION: If a teacher or state employee reaches mandatory retirement age, is he/she eligible to receive benefits upon retirement?

ANSWER: Yes, according to current law.

AUGUST 1, 1983

PAGE 98-6

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART I II

UNEMPLOYMENT INSURANCE COVERAGE (CONTINUED)

15. QUESTION: Can the unemployment insurance be deducted from the employee's salary?

ANSWER: No. The school system will have to pay this from its own funds.

16. QUESTION: What is meant by -Taxable Wage Base of $7.000" (Contributory method)?

ANSWER:

This base is set by state law and mandated by federal law. It means that under the contributory method that the school
system will pay insurance tax on salaries or wages on the first $7.000 on each employee/year. EXAMPLE:

John' Doe

Mary Doe

Yearly Earnings

$10.000

$3.500

Premium Paid

2.7%

2.7%

Amount Paid to State

2.7% of $7.000 or $189 2.7% of $3.500 or $94.50

17. QUESTION: Will the Labor Department contact the school system regarding the law payment of claims etc.?

ANSWER: Yes.

18. QUESTION: Will school systems, have to handle claims?

ANSWER: No. The claims will be filed by the employee and processed by the Labor Department.

19. QUESTION: Will the school system have to keep records. make reports. etc?

ANSWER: Yes. Those mandated by law and the Labor Department.

20. QUESTION: Is there any in,stance where an employee ,is rele.ased when he/she will not be eligible for unemployment benefits?

ANSWER:

Yes. when the employee separates under disqualifying
conditions. refuses an offer of suitable employment, or fails to meet other eligibility requirements of the law. A
system electing the reimbursable method should be responsible for an benefits paid. prov\ded the individual mitigated the disqualification. Under the contributory
method. the system could be relieved of any benefits paid subsequent to a disqualification period provided their
actions in responding to the Agency were in a timely manner.

AUGUST 1. 1983

PAGE 98-5

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART II I

UNEMPLOYMENT INSURANCE COVERAGE (CONTINUED)

21. QUESTION: Is an employee that quits his/her job (not fired) ever eligible for benefits?

ANSWER: Yes. If he/she quits for good cause in connection with work.

22. QUESTION: If an employee who has been drawing benefits during the summer vacation reports back to work when school opens and is notified that he/she will not be employed, is he/she
eligible to draw additional benefits?

ANSWER:

If the individual reports back to school and is not re-employed, he/she would be potentially eligible to receive the remaining benefits in his/her benefit year.

23. QUESTION: Will the employee file unemployment benefit claims with the school system?

ANSWER:

No, the claim must be filed by the claimant with the Unemployment Insurance Office of the Georgia Labor Department.

24. QUESTION: How soon after being discharged from employment can an employee file a claim?

ANSWER: The day of qischarge, if desired.

25. QUESTION: If an elected superintendent of a school system is removed from office with cause, is the superintendent eligible for benefits?

ANSWER: No. Elected officials do not qualify for benefits.

26. QUESTION: If a teacher or state employee reaches mandatory retirement age, is he/she eligible to receive benefits upon retirement?

ANSWER: Yes, according to current law.

AUGUST 1, 1983

PAGE 98-6

GEORGIA FINANCIAL ACCOUNTING HANDBOOK
PART III

CHAPTER 99
ECIA CHAPTER 2 ACCOUNTING
Records and Reports
In applying for its allocation of Chapter 2 funds, each school system agrees to keep adequate records of all fiscal transactions involving Chapter 2 funds and to have such records available for audit and review.
Transactions involving Chapter 2 funds must be recorded in a separate general ledger fund by the school system. Funds must be kept separate by fiscal year. It is not necessary to maintain a separate bank account for Chapter 2 funds.
The only reports required will be the application, annual budget summary, a preliminary completion report and a final completion report. Forms for these reports will be provided by the State Department of Education. Adequate documentation of data reported must be maintained on file in the school system. All such data is subject to state and federal audit and review.
For more detailed information on accounting requirements and for assistance in setting up or maintaining fiscal records, contact:
Mr. Warren Post, Administrator Financial Review Section State Department of Education 1554 Twin Towers East Atlanta, Georgia 30334
Phone: (404) 656-2441
Program Audits
The Georgia Department of Audits will conduct fiscal audits of Chapter 2 programs. These audits will be comprehensive in scope and will also cover other federal programs.

MAY 10, 1984, ISSUE

PAGE 99-1

GEORGIA FINANCIAL
ACCOUNTING HANDBOOK PART III

CHAPTER 101

DE FORM 1108 (COMBINED JOURNAL)

DE Form 1108 is a simplified combined journal for entering revenues, expenditures, and general journal entries. It was especially designed for the new bookkeeper but it has also been found to be excellent for the more experienced pen and ink
bookkeeper.

Given below is a column by column description.

Column 1. Date

Enter the transaction date.

Column 2. From or To/Description

If a revenue, enter infonmation necessary to identify. If two or more checks make up a deposit, use as many lines as needed (see
example). If a payment, show to whom paid
and a brief description. If a payroll,
write the word "payroll" on the first
line. On the second line, write Superintendent's State Salary. On the
third line, write System Supervisor's Salaries, etc., using as many lines as necessary.

Column 3. Reference Number

If a deposit, show a "0" and date (e.g. 0 04/25). If an expenditure, show a check number. If a payroll, show the beginning
and ending numbers (an example would be 1429-1601). If the transaction consists of
general journal entries, show GJ and the
date (e.g. GJ 04/28).

Column 4. Check Mark

This column is provided so that you may check off deposits and checks as the bank
statement is reconciled. We recommend that
you enter a figure for the month the deposit or check appears on the bank
statement (if April enter 4, if May enter 5). On the lines where nothing appears in
columns 5 or 6, an X should be entered in column 4 to indicate your awareness.

Column 5. Deposit Amounts

Enter the amount of each deposit.

Column 6. Check Amounts

Enter the amount of each check or series of checks as in a payroll series. A payroll
entry should be the net amount of the
series of checks.

MAY 14, 1984, ISSUE

PAGE 101-1

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART III

INSTRUCTIONS FOR DE FORM 1108 (CONTINUED)

Co1umnn 1. Bank Balances

In the space above the column heading, there is sufficient room to enter the beginning of the month reconciled bank balance. This balance must be entered on every page for the month. As columns 5 and 6 are ente~ed, the bank balance is added to or subtracted from the month-to-date total to give you a running bank balance. A new
bank balance at the end to each day is enough.

Column 8. Account Number

Enter the general ledger account number for the debit in Column 9.

Column 9. Amount

Enter the amount charged to the account number in Column 8.

Column 10. Check Mark

This column is provided so that you may check off the entry in Column 9 as it is posted to the genera 1 1edger.

Column 11. Account Number

Enter the General ledger account number for the credit in Column 12.

Column 12. Amount

Enter the amount credited to the account number in Column 11.

Column 13. Check Mark

This column is provided so that you may check off the entry in Column 12 as it is posted in the general ledger.

You will notice small numbers in the upper left hand corner of many of the boxes. This is merely to help you stay on the same line across the page.

MAY 14, 1984 ISSUE

PAGE 101-2

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART III

INSTRUCTIONS FOR DE FORM 1108 (CONTINUED)
The Debit and Credit columns (Deposit Amount, Check Amount, General Ledger Debit and General Ledger Credit columns) should be sub-totalled and balanced once on each page, or at the end of a transaction if it covers more than one page. In each of these columns, begin with the previous sub-total and add each entry to arrive at a new month-to-date sub-total. The sub-totals are then balanced by entering the debit columns in the calculator as pluses, and the credit columns as minuses. If the total is zero, the DE Form 1108 is in balance.
At the end of the month, all columns except the 8ank Balance column are totaled by adding all entries beginning with the previous sub-total. The month end bank balance is calculated by adding the beginning bank balance and the total of the "Deposit Amounts" column, and subtracting the total of the "Check Amounts" column. The four Debit and Credit columns are then balanced as explained in the previous paragraph.
After the DE Form 1108s are balanced at the end of the month, contra entries must be made to distribute the bank balance among the various funds. These entries are made as follows:
1. Total the entries in the General ledger Debit Column separately by fund.
2. Total the entries in the General Ledger Credit Column separately by fund.
3. The contra entry to the 101 (Bank Balance) account for a particular fund is the difference between the General Ledger Debits and the General Ledger Credits for that fund. For example, if the total of the General Ledger Debits for the General Fund (01) ;s $150,000, and the total of the General Ledger Credit is $100,000, then the contra entry to 01-101 is a Credit for $50,000. These contra entries should be entered in the appropriate General Ledger Debit or Credit column of the DE Form 1108 posted to the bank balance accounts in the General ledger. After these contra entrie~ are entered in the General Ledger Debit and Credit columns of the DE FORM 1108, the total of these columns should be the same. Correct posting of all debits and credits in the General Ledger should result in a zero trial balance" of each fund in the General Ledger.
After all posting for the month is completed, a trial balance should be taken of each section of the General Ledger using year-to-date totals. The quick way to take a trial balance is to enter in your calculator/adding machine all accounts having net debit balances as pluses and all accounts having net credit balances as minuses. If your answer is zero, the books are in balance. If the total is not zero, the General ledger does not balance and the error must be found and corrected.

MAY 14, 1984, ISSUE

PAGE 101-3

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART I II

j
j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j
J

CHAPTER 103
ACCOUNTING FOR DEPRECIATION AND JOINT HAZARD RESERVE FUNDS
local school systems will be recelvlng funds that have been held in reserve by the Georgia Education Authority on buildings constructed since 1961. It is necessary that local boards of education and superintendents be aware that these are restricted funds and are to be handled as approved by the State Board of Education at their March, 1979, meeting. The following procedures are to be followed for use of these funds:
(a) Project applications will be submitted to the State Department of Education through the Office of Administrative Services using forms developed by the Department of Education.
(b) Projects will be approved for the use of funds to construct, modernize, and improve facilities at permanent centers as identified by the most recent approved facility survey.
(c) Where systems desire to utilize funds for projects not approvable above, the system may appeal to a committee composed of the Associate Superintendent for Administrative Services, and to other members. One of the two members shall be a Department of Education staff member, and both shall be agreeable to both the local system staff members and Associate Superintendent for Administrative Services.
(d) Any interest accrued through the investment of Depreciation and Joint Hazard Reserve Funds shall become a part of those funds.
It is suggested that to adequately account for all receipts and expenditures that a separate fund be set up for the Depreciation and Joint Hazard Reserve Fund. This fund will be budgeted and reported as part of the Capital Projects (Building) Fund column.
In addition to (b) above, systems are permited to use Joint Hazard Reserve Funds to pay the insurance premiums on the buildings previously covered by the Georgia Education Authority. Regional Directors must approve this expenditure.

JULY 1, 19B4, ISSUE

PAGE 103-1

GEORGIA FINANCIAL
ACCOUNTING HANDBOOK PART III

CHAPTER 104
QUESTIONS AND ANSWERS ABOUT HANDLING OF SCHOOL FOOD AND NUTRITION EQUIPMENT
(1) When old equipment is used as a trade-in on new equipment, would the cash cost of the new equipment be listed on the SCHOOL FOOD SERVICE EQUIPMENT INVENTORY for depreciation purposes?
ANSWER: No; the full value of the equipment cash cost plus trade-in allowance would be recorded in Column 3 on the School Food Service Equipment Inventory.
(2) Where do you record income from sale of equipment?
ANSWER: (Income from the sale of School Food Service equipment is recorded in the DAILY CASH JOURNAL (DE FORM 0113) as Other Income.
(3) How do you add or delete equipment received or disposed of during the year from the TOTAL DEPRECIABLE SCHOOL FOOD SERVICE EQUIPMENT VALUE (DE Form 0804)?
ANSWER: Additions or deletions to equipment inventory during the fiscal year are not reported to the Georgia Department of Education until the end of the fiscal year. The report (DE Form 0804) submitted as of June 30 of each fiscal year should include all equipment purchased during that year and ~hould not include equipment disposed of during that year or equipment that is over 12 years old.
(4) Should the value of equipment donated to the lunchroom be included in the TOTAL DEPRECIABLE SCHOOL FOOD SERVICE EQUIPMENT VALUE (DE Form 0804) reported to the Georgia Department of Education?
ANSWER: Only equipment purchased with School Food Service Funds are reported for depreciation purposes; however, school systems should maintain a record of the equipment donated.
(5) What are the current cost guidelines for items to be classified as equipment?
ANSWER: Effective November 10,1981, items with an acquisition cost of $500 or more, and a useful life of more than two years, are classified as equipment. The previous guideline, which was in effect from July 1, 1971 through November 9, 1981, was $300 or more, and prior to July 1, 1971, it was $100 or more.

OCTOBER 5, 1983, ISSUE

PAGE 104-1

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART III

QUESTIONS AND ANSWERS ABOUT HANDLING OF SCHOOL FOOD AND
NUTRITION EQUIPMENT (CONTINUED)
(6) Does the State Department of Education have a rate we can use for depreciating our equipment annually (before reporting the total value)?
ANSWER: No. Equipment is not depreciated at the school or school system level. All School Food Service equipment is reported to the Georgia Department of Education at the purchased value plus (+) any delivery or installation charges and allowances for trade-in; minus (-) any federal assistance received for equipment. The value of equipment reported to the Georgia Department of Education on the TOTAL DEPRECIABLE SCHOOL FOOD SERVICE EQUIPMENT VALUE (DE Form 0804) will not change from year to year except when adding or deleting items.
(1) If we purchased six (6) tables at a cost of $125.00 each for a total of $150.00, would this purchase be classified as equipment?
ANSWER: No; the $500 guideline applies to unit cost. Since the tables have a unit. cost of $125.00, they would be recorded as Other Expense in the Daily Cash Journal (DE Form 0113).
(8) Is a separate bank account mandatory for an Equipment Reserve Fund?
ANSWER: No. Equipment Reserve funds are controlled at the system level and may be accounted for as a separate fund in the general operating account or in a separate bank account. Proper fund control is a must when accounting for school lunchroom monies in the general bank account. Lunchroom monies can not be used for general fund operations or cash balances invested as general fund monics.
(9) Can the purchase value of School Foods Service office equipment be reported for depreciation purposes?
ANSWER: No. The provision for depreciating equipment was intended to be applied to that equipment used in the preparation and serving of food, and office equipment does not fall in this category although it may be an essential piece of equipment in School Food Service operations.

OC10BER 5, 1983, ISSUE

PAGE 104-2

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART I II

CHAPTER 10&
INSTRUCTIONS FOR COMPLETING EDAP0090-Rl STATEMENT OF STATE FUND RECEIVED AND SPENT FOR INSTRUCTIONAL AIDES
FISCAL YEAR 198&
Grant Code 18 - Instruct10nal A1des - Sect10n 07
The amount on l1ne one 1s the total Sect10n 07, K1ndergarten A1de Funds you rece1ved through the EDAP0035-Rl APEG Grants and Other Grants To Systems for salar1es and ret1rement of your Sect10n 07 K1ndergarten Regular A1des.
Enter 1n the blank on l1ne two the actual amount of salar1es and ret1rement pa1d for your Sect10n 07 Regular A1des h1red for k1ndergarten. Th1s 1ncludes any deferred salar1es and ret1rement to be pa1d 1n July and August 198&. Do
not 1nclude any deferred salar1es pa1d 1n JYl! and August 1985 or any a1de
salar1es that may have been reported 1n any other program.
Enter 1n the blank on l1ne three the d1fference between l1ne one and l1ne two. If l1ne two 1s equal to or exceeds l1ne one, enter a zero on l1ne three.
Grant Code 59 - APEG Instruct10nal A1des Sect10n 10 Grades 1 and 2.
The amount on l1ne four 1s the total funds for salar1es only of Grades 1 and 2 Instruct10nal A1des rem1tted to you through the EOAP0035-Rl APEG Grants and Other Grants To Systems dur1ng FY 198&.
Enter on l1ne f1ve the actual salary amount pa1d to a1des h1red 1n l1eu of add1t10nal teachers 1n grades 1 and 2. Include any deferred salar1es to be pa1d 1n July and August 198&. Do not 1nclude any deferred salar1es pa1d 1n
JYl! and August 1985. Also double-check to see that none of the a1des
employed 1n Grant Code 59 are reported 1n any other a1de program.
Enter on l1ne s1x the d1fference between l1ne four and l1ne f1ve. If l1ne f1ve 1s equal to or exceeds l1ne four, enter zero on l1ne s1x.
Grant Code &7 - APEG Compensatory Edu.cat10n Grades 3-11
The amount on l1ne seven 1s the total Compensatory Educat10n funds you rece1ved for FY 198& through the EDAP0035-Rl APEG Grants and Other Grants To Systems.
Enter 1n the blank on l1ne e1ght the actual amount of salar1es and any benef1ts pa1d to Compensatory Educat10n Teachers wh1ch were 1n your approved budget as f11ed w1th the State Compensatory Educat10n Program. Th1s 1ncludes any deferred salar1es and/or benef1ts to be pa1d 1n July and August 198&. Do
not 1nclude any deferred salar1es pa1d 1n JYl! and August 1985 or any Sect10n
10 teachers that were reported and 100% APEG selected on the FY 198& OE38 Salary Re1mbursement Requ1s1t10n Reg1ster.

JULY 2, 198&

PAGE 10&-1

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART II I

INSTRUCTIONS FOR COMPLETING EDAP0090-Rl STATEMENT OF STATE FUND RECEIVED AND SPENT FOR INSTRUCTIONAL AIDES
FISCAL YEAR 1986 (CONTINUED)
Enter 1n the blank on l1ne n1ne the actual amount of salar1es and any benef1ts of Compensatory Educat10n A1des wh1ch were 1n your approved budget as f1led w1th the state Compensatory Educat10n Program. Th1s 1ncludes any deferred salar1es and/or benef1ts to be pa1d 1n JUly and August 1986. Do not 1nclude any deferred salar1es pa1d for ~ and August 1985.
Enter 1n the blank on l1ne ten the Other Compensatory Educat10n Costs (1nstruct10nal mater1als, etc.) approved by the state Compensatory Educat10n Program.
Enter 1n the blank on l1ne eleven the total of l1nes e1ght through ten.
Enter 1n the blank on l1ne twelve the d1fference between l1ne seven and l1ne eleven. If l1ne eleven 1s equal to or exceeds l1ne seven, enter zero on l1ne twelve.
NOTE TO SYSTEMS: Amounts reported on th1s form for State Compensatory Educat10n Program should agree w1th the amounts reported on the State Compensatory Educat10n Evaluat10n and F1nanc1al Report, DE Form 0527. Both of these reports should be reconc1lable to Fund Code 23, Compensatory Educat10n, on DE Form 0046, F1nanc1al Report for F1scal Year Ended June 30, 1986.
Grand Total
Enter 1n the blank on l1ne th1rteen the total of the amounts on l1nes three, s1x, and twelve. If the amount 1s greater than zero, 1ssue a check 1n th1s amount to the Georg1a Department of Educat10n and enter the check number 1n the blank space prov1ded. There should not be any negat1ve amounts on l1nes three, s1x and twelve. The report should then be s1gned (no stamp facs1m1le) by the Super1ntendent or off1c1al who has been des1gnated by the Super1ntendent, on f11e w1th the Department's Account1ng Serv1ces Sect10n. If the report 1s f1led w1th an unauthor1zed s1gnature, the Grants Management Sect10n w1ll return the report to the Super1ntendent for correct10n. One copy of the report w1th or1g1nal s1gnature, w1th check, 1f app11cable, made payable to the Georg1a Department of Educat10n, should be ma1led to Jack R1chardson, Grants Management Sect10n, 1570 Tw1n Towers East, 205 Butler Street, S. E., Atlanta, Georg1a 30334 by September 15, 1986. The system should keep one QQY of the a1de report for Hs f1les.

JULY 2, 1986

PAGE 106-2

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART II I

INSTRUCTIONS FOR COMPLETING EDAP0090-R1 STATEMENT OF STATE FUND RECEIVED AND SPENT FOR INSTRUCTIONAL AIDES
FISCAL YEAR 1986 (CONTINUED)
Departmental staff have worked w1th staff from the Georg1a Department of Aud1ts 1n des1gn1ng work1ng papers to support the sums reported for the three a1de programs. Enclosed for your use 1s a set of forms. Please note, the work papers show that any fr1nge benef1t(s) pa1d for two of the three grant categor1es represents the employer's share only. There 1s no requ1rement that the forms be used, but the Department does recommend that each system use the forms and have them on f1le to ass1st the aud1tor when your a1de report 1s aud1ted. Please do not send the completed work1ng papers to the Department.

JULY 2, 1986

PAGE 106-3

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART III

INSTRUCTIONS FOR COMPLETING EDAP0090-R1 STATEMENT OF STATE FUND RECEIVED AND SPENT FOR INSTRUCTIONAL AIDES
FISCAL YEAR 1986 (CONTINUED)

PAGE

CF

DETAIL

lOlKING

PAPERS

-:F"':"OR::--:S"':"EC:':T:-IlI-:--:0~7

llCWlO CF EWCATIlI KlNllERGNlTEN INSTRUCTIlIAL

AIDE

PRllGIlNl

"STATEIlENT CF STATE FUNDS RECEIVED NIO SPENT FOR

INSTRUCTIlIAL AIDES IN FISCAl YENl 18"

Code 18 INSTRUCTIlIS - List belC* the ~ts ~id or obligAted to be ~id to AIDES
in the section 01 KIIIlERGMTEN INSTRUCTIlIAL AIDE PRllGIlNl. Also s/QI nllltler of dlys llOrked for Hch a i ct..

IWIE CF AIDE

SAlARY NQIIT PAID SEPT. 1985 TlIlIJ JIJIE 18

SALARY NQIIT OBLIGATED TO BE PAID JULY & AUG 18

TOTAL NQIIT

NlftlER CF DAYS IOlKED

Sl.8-TOTAL CF SALARIES aF AIDES

Ell'lOYER'S SMME CF RETIAEIEIIT lI NIDfE. AIDES

TOTAl NQIIT PAID IN FISCAl YENl 18 (DO NOT INCLlllE NQIITS PAID IN JUl-4IG 1985)

$-----

TOTAL NQIITS OBLIGATED AT JUNE 30, 18 (TO BE PAID IN JUl-4IG 18)

$-----

TOTAl COST aF AIDES IN TIE KIIlDERGMTEN INSTRUCTIlIAL AIDE

"."_,."_._"",,_.,._,,.,.,._.,*.,. PROGIWI (ENTER
"'iIi.a',", .

TMIS
",,

_N_,Q,_IIT"'I.N'."LI'N'E''_2 'l''I*"'S_T_A'*TE'I'l'E'N'T''")'''.*".,.,...

$

,,.,_.".A'Aa

EQUIVAlENT FULL-TIllE POSITIqIS FILLED

TOTAl IUlIlER CF DAYS IiOlKED FOR AlL AIDES LISTED MtNf. ANO ENTER IERE

ENTER TIE IUIIER CF DAYS CONSIDERED BY TIE SYSTEIl TO BE A FULL-TIllE AIDE POSITIlI (SMlILD BE AT lEAST 1811 DAYS ANO NOT IDlE TIN 190 DAYS) ENTER IUIIER aF DAYS lI TMIS LINE

DIVIDE IUIIER aF DAYS aF A FULL-TIIlEPOSITIlI INTO TIE TOTAl IUlIlER aF DAYS lotIRICED BY AlL AIDES NIO ENTER NQIIT AllLNlED TO THE IlEARST TENTM aF A POSITIlI IERE.

RETAIN TlESE lOlKING PAPERS WITM A rJ1P'Y aF THE "STATEIlENT aF STATE FUNDS RECEIVED NIO SPENT FOR INSTRUCTIlIAL AIDES IN FISCAl YENl 18". DO NOT MIL ....ING PAPERS TO GEORGIA DEPNlTllENT aF EWCATIlI.

RETAIN FOR AlIlITORS!!! DE FCRI 1200, July 18

JULY 2, 1986

PAGE 106-4

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART I II

INSTRUCTIONS FOR COMPLETING EDAP0090-R1 STATEMENT OF STATE FUND RECEIVED AND SPENT FOR INSTRUCTIONAL AIDES
FISCAL YEAR 1986 (CONTINUED)

PAGE

OF

___--::----:--,1llWIO OF EllUCATIaf DETAIL IOlKING PAPERS FOR GRADES 1 AND 2 AIDES - INSTRUCTI~L AIDE PROGRNI (SECTlaf 10)

STATElEHT OF STATE F\JIOS RECEIVED AND SPENT Fat INSTRUCTI~L AIDES IN FISCAL YEAR 1986

Code 59 INSTRUCTIONS - List below the amounts p.aid or obligated to be p.aid to Grades 1 and 2 AIDES
in the INSTRUCTIONAl AIDE PROGIWl (SECTlaf 10) (or SALARIES afLY.

fW OF AIDE

SALARY NIllIlT PAID SEPT. 1985 TMlU JUNE 1986

SALARY NIllIlT 08LIGATEO TO BE PAID JULY & AUG 1986

TOTAL NIllIlT

TOTAL SALARY NIllIlT PAID IN

FISCAL YEAR 1986

(00 NOT INCLOOE NIllIlTS

PAID IN JUl....-Jel 1985)

$

_

TOTAL SALARY NIllIlT 08LIGATEO
AT JUNE 30. 1986 (TO BE PAID IN JUL....-Jel 1986)

$,

_

TOTAL SALARY COST OF AIDES Fat TIE INSTRUCTIOIW. AIDE PAOGIWl (ENTER THIS NIllIlT IN LINE 5 af STATElEHT)

$-----

RETAIN TlESE IQlI(ING PAPERS WITH A Cf1II"( OF TIE STATElEIIT OF STATE F\JIOS RECEIVED AND SPENT Fat INSTAUCTIOIW. AIDES IN FISCAL YEAR 1986. 00 NOT MIL IQlI(ING PAPERS TO GEatGIA DEPNlTIlENT OF EllUCATIaf.

RETAIN FOR ALIlITORS!!! DE FORII 1201, July 1986

JULY 2, 1986

PAGE 106-5

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART III

INSTRUCTIONS FOR COMPLETING EDAP0090-R1 STATEMENT OF STATE FUND RECEIVED AND SPENT FOR INSTRUCTIONAL AIDES
FISCAL YEAR 1986 (CONTINUED)

PAGE

OF

___-=-:--:-1lOAAO OF EoocATION

DETAIL \Oll(I!!!i PAPERS F<Jl COI'ENSAT<JlY EDUCATION PROGIWI TEAOlERS

STATIIENT OF STATE FI.-:lS RECEIVED Nfl) SPENT F<Jl

INSTRUCTIONAl AIDES IN FISCAL YEAR lCJ86

Cd 67 INSTRUCTIONS - List belOlil the aIlIDUnts paid 0,. ob1i~ted to be paid to TEAOlERS
in the COIPENSAT<JlY EDUCATION PROGIWI.

IWlE OF TAOR

SAlNIY
AIlCUlT PAID SEPT. 1985 ntlU .!IE lCJ86

SAlARY AIlCUlT 08LIGATEO
TO BE PAID
JUlY & AUG lCJ86

TOTAL NOJNT

SUB-TOTAL OF SAlARIES OF TEACHERS
EIlPlOYER'S SHARE OF FRINGE lIENEF ITS ON ABOVE TEACHERS

TOTAL AIlCUlTS PAID IN FISCAL YEAR 1CJ86 (110 NOT INCLUDE AIlCUlTS PAID IN JUl~ 1985)

$-----

TOTAL NOJNTS 08UGATEO AT JI.IE 30. lCJ86 (TO lIE PAID IN JUl~ lCJ86)

$,-----

TOTAL COST OF TEACHERS F<Jl THE COIPENSAT<JlY EDUCATION

PROGIWI (EHTER THIS AIlCUlT IN lINE 8 ON STATEl'iENT)

,$,----

RETAIN THESE liOlKI!!!i PN'!!S WITH A lXlPY OF THE STATEIlENT OF STATE FI.-:lS RECEIVED Nfl) SPENT FOR

INSTRUCTIONAl AIDES III FISCAl YEM 1CJ86. 110 NOT MIL WRtI!!!i lW'ERS TO GE<JlGIA DEPARTMENT OF

EDUCATION.

RETAIll F<Jl QIT(JlS!!! DE FlRI 1202. Ju1Y lCJ86

JULY 2, 1986

PAGE 106-6

GEORGIA FINANCIAL ACCOUNTING HANDBOOK
PART II I

INSTRUCTIONS FOR COMPLETING EDAP0090-R1 STATEMENT OF STATE FUND RECEIVED AND SPENT FOR INSTRUCTIONAL AIDES
FISCAL YEAR 1986 (CONTINUED)

DETAIL

IOlKING

~PAPERS-=---F-:al:-CDlPE-:---I'lONASAAOTOalFY

EllJCATIlJI EllJCATIlJI

PllOGIWI

AIDES

"STATEIlENT OF STATE FUNDS RECEIVED AND SPENT Fal

INSTRUCTIlJIAl AIDES IN FISCAL YEAR 1986"

cae 67
INSTRUCTIlJIS - List belClll the -.nts INld or obllgited to be INld to AIDES In the CDlPENSATalY EllJCATIlJI PAOGIWI.

NNE OF AIDE

SAI.NlY AIDJIT PAID SEPT. 1985 TIRJ JUNE 1986

SAlNlY AIDJIT OBLIGATED
TO BE PAID
JULY & A!JG 1986

TOTAL AIDJIT

SUl-TOTAL OF SAlNlIES OF AIDES
Ell'LOYER'S SIWl OF FRINGE lIENEF ITS lJI NItNf. AIDES

TOTAl AIDJIT PAID IN FISCAL YEAR 1986 (DO NOT INCLUDE AIDJITS PAID IN JUL-AUG 1985)

$,-----

TOTAl AIDJIT OBLIGATED AT JUNE 30. 1986 (TO BE PAID IN JUL-AUG 1986)

$-----

TOTAL alS T OF AIDES Fal M CDIPENSATalY EllJCATIlJI PAOGIWI (ENTER THIS AIDJIT IN LINE 9 lJI "STATEIlENT")

$-----

RETAIN MSE IDlKING PAPERS WITH A art OF M "STATEIlENT OF STATE FUNDS RECEIVED AND SPENT Fal INSTRUCTIlJIAl AIDES IN FISCAl YEAR 1986". DO NOT MIL lq!!ING PAPERS TO GEalGIA DEPARTIlENT OF EllJCATIlJI.

RETAIN f(Jl AOOITalS!!! DE F<RI 1203. July 1986

JULY 2, 1986

PAGE 106-1

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART II I

INSTRUCTIONS FOR COMPLETING EDAP0090-R1
STATEMENT OF STATE FUND RECEIVED AND SPENT FOR INSTRUCTIONAL AIDES FISCAL YEAR 1985 (CONTINUED)

PAGE

OF

_

IlOAAD OF EDUCATION

DETAIL lJRKING PAPERS FOR COI'tPENSATORY EDUCATION PROGRAII AIDES STATEIlENT OF SlATE FUNDS RECEIVED AND SPENT FOR

INSTRUCTIONAL AIDES IN FISCAL YEAR 1985"

INSTRUCTIONS - List below the amJUnts paid or obligated to be paid to AIDES in the COI'tPENSATORY EDUCAIION PROGIWI.

IWlE OF AIDE

SALARY AIlXJN T PAID SEPT. 1984 TIflU JUNE 1985

SALARY AIllJNT OlILIGATED TO BE PAID JULY & AUG 1985

TOTAL NOIlT

SW-TOTAL OF SALARIES OF AlDES
EIlPLOYER'S SIWlE OF FRINGE BENEF IlS ON ABOVE AlOES

TOT AL NOJNI PAID IN FI SCAL YEAR 1985 (DO NOT INCLUOE NOJNIS PAID IN JUL-IIUG 1984)

TOTAL NOJNT OlILIGAIED AT JUNE 30. 1985 (TO BE PAID IN JUL-IIUG 1985)

$,

_

TOTAL COST OF AIDES FOR THE COI'tPENSAIORY EDUCATION PROGIWI (ENTER THIS NOJNT IN LINE 14 ON "STAIEIlENT")

$

_

RETAIN THESE lJRKING PAPERS WIlH A copy OF THE STATEIlENT OF SlATE FUNDS RECEIVED AND SPENT FOR INSTRUCTIONAL AlOES IN FISCAL YEAR 1985". DO NOI IlAll lJRKING PAPERS TO GEORGIA DEPARTIlENT OF EDUCA lION .
RETAIN FOR mOIlORS! ! ! DE FORIl 1203, July 1985

JULY 1. 1985. ISSUE

PAGE 106-9

GEORGIA FINANCIAL
ACCOUNTING HANDBOOK PART III

CHAPTER 107
GEORGIA SALES AND USE TAX - SCHOOLS
All Boards of Education and the schools under their control are required to comply with the Georgia Sales and Use Tax Laws and Regulations. In order that you may have some guide lines we are quoting from the Sales and Use Tax Regulations as follows:
(1) Vendors and lessors of tangible property to public schools, public school principals, teachers, officers and employees, public school organizations (parent, student, teacher or otherwise) and public school students (individually or as unorganized groups) shall collect the tax at the time of sale, at the sales price thereof,irrespective of the fact that same may be sold for resale.
(a) Public schools, for the purpose of this regulation, include all state, county or municipal education institutions, except such schools as may be required to register, collect, remit and report sales and use taxes.
(b) A Certificate of Registration shall be granted only to those public schools having a continuity of sales of tangible personal property or charges for admission to games or entertainments and maintaining adequate facilities for collecting, remitting and reporting sales and use taxes.
(c) A Certificate of Registration may be issued to a county or municipal Board of Education for reporting sales and use taxes for all schools under its jurisdiction, provided adequate records are maintained and regularly audited by the Board.
(d) Exemption certificates covering purchases of tangible personal property by registered schools and Boards of Education shall be honored only when purchase is pursuant to an official purchase order signed by a person authorized to obligate the school or Board of Education for payment therefore out of public funds.
(2) Purchase orders, oral or written, issued by a person duly authorized to obligate a Board of Education, municipality, county, or the State for payment of tangible personal property so purchased shall be deemed "Official Purchase Orders". However, purchase orders issued for property which does not become and remain the property of the Board of Education, municipality, county or the State will not be considered Official Purchase Orders sufficient to exempt the property from taxation.

OCTOBER 18, 1983

PAGE 107-1

GEORGIA FINANCIAL
ACCOUNTING HANDBOOK PART III

GEORGIA SALES AND USE TAX - SCHOOLS (CONTINUED)
(3) Public funds shall include what is usually referred to as "School Revolving Funds" or "Unappropriated School Funds" provided such funds are subject to audit and control of a Board of Education, municipality, county or the State.
(4) Certificates of Exemption (Form ST-5): Certificates of Exemption (Form ST-5) shall be honored only when purchases are made pursuant to official purchase orders to be paid for out of public funds. Such certificates must be completed and signed by a person authorized to issue Official Purchase Orders. Item 5 should be checked, and "Board of Educatlon, . . . . County, (City or State of Georgia)" inserted in the space provided for "Certificate or Registation number".
(5) School Lunches. Sales tax does not apply to school lunches sold and served to pupils or employees of public schools. Food and drink which become component parts of such lunches are also exempt from the tax and may be purchased under Certificate of Exemption (Form ST-5).
(6) School Cafeterias. Schools operating cafeterias selling meals to students and the public are required to register, collect and remit sales tax. Such cafeterias may purchase tangible personal property for resale under Certificates of Exemption (Form ST-5). (Meals sold to students in these cafeterias may not be claimed for federal or State School lunch funds reimbursement.)
(1) Snack Bars. Snack bars operated by schools, the proceeds from which go directly into "School Revolving Funds", or "Unappropriated School Funds" shall pay the tax to the vendors at the time of purchase at the purchase price thereof. Any Certificates of Registration heretofore issued to schools for the purpose of reporting and remitting the tax on such sales must be returned to this office for cancellation.
(8) Miscellaneous Sales. Where public schools hold doughnut sales, candy sales, carnivals, etc. and such purchases for resale are made from pUblic funds, the tax must be paid to the vendors at the time of purchase at the purchase price thereof. Proceeds from the resale of such property, which go directly into "School Revolving Funds" or "Unappropriated School Funds", are not taxable.
(9) Admissions. The tax applies to all charges for admissions, voluntary contributions and donations in lieu of charges for admission to athletic events, entertainments, lectures, concerts, etc. Public schools which are not registered shall file a Miscellaneous Sales and Use Tax Report for each quarter in which charges are made.

OCTOBER 18, 1983

PAGE 101-2

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART I II

GEORGIA SALES AND USE TAX - SCHOOLS (CONTINUED)
(10) Purchases by Public Schools, School Groups, Organizations, etc. Official Purchase orders shall not be recognized for tangible personal property such as year books, class rings, graduation gowns and caps, photographs, etc. or purchases for any school group, organization, association, or individual. The tax shall be paid to vendors on such purchases. If tax is not charged by the vendor, purchaser must declare the tax and file a "Miscellaneous" Sales Tax Report (Form ST-5).
(11) P.T.A.ls, Classroom Mothers, Student Groups, etc. Where P.T.A.ls etc. hold fund raising projects, the gross proceeds derived from charges for admission, voluntary contributions and donations in lieu of admission charges, and sales of tangible personal property, including candy, doughnuts, etc. are subject to the tax. Purchases for resale on which tax is paid to vendors may be claimed as exemptions on Line 4 of the Sales Tax report form. If tax is not charged by the vendor, "Miscellaneous" Sales Tax reports must be filed for each month in which taxable sales are made.
If you have situations not covered by the above regulations you should contact the Georgia Department of Revenue, Sales and Use Tax Unit, Atlanta, Georgia 30334 or a Regional Sales Tax office in your area.

OCTOBER 18, 1983

PAGE 107-3

GEORGIA FINANCIAL
ACCOUNTING HANDBOOK PART III

CHAPTER 108
E.C.I.A. CHAPTER 1 ACCOUNTING AND REPORTING
Chapter 1 of the Educational Consolidation Improvement Act is a state-administered program of federal aid. It provides grants for compensatory education programs for severely educationally disadvantaged children living in school attendance areas having a high incidence of low-income families, for children of migratory agricultural workers, and for children in state-operated or state-supported schools for the handicapped, neglected, or delinquent. After the federal grant to Georgia has been allotted among the school systems in the state, a system may submit one or more projects, meeting the provision of Chapter 1 up to amount of its allotment. If allotment amounts are changed, amendments are necessary to change project amounts.
PROJECT APPLICATION BUDGETS
The estimated costs of proposed activities are classified in the project application into the accounts as defined in Financial Accounting for Local and State School Systems, Handbook II of the State Educational Records and Reports Series published by the U.S. Office of Education.
An upward or downward deviation is permitted in an amount not to exceed ten percent of the total amount of an approved project provided such a variation does not prevent the project from continuing to meet the requirements of the "Act" and of the "Regulations". Of course, such a variation cannot be made without a project amendment if it involves additional or different personnel or equipment form that originally in the project; and, in no case, may exceed the ratably reduced allocation to a school system for a given fiscal year.
No upward variation from the amount approved for a given project may be permitted unless there is a corresponding decrease in the amount spent in a second project being carried out during the same fiscal year (e.g., a summer-term project); and, the variation (upward in one project and downward in another project) may not exceed ten percent in either of the projects.
This is such an important matter that you are urged to constantly check your project budgets and expenditures and make any necessary and appropriate project amendments prior to getting into difficulties in connection with these requirements.
The requirement of adhering to a maximum variation of 25 percent in line items of the budget is very important.

OCTOBER 6, 1983, ISSUE

PAGE 108-1

GEORGIA FINANCIAL
ACCOUNTING HANDBOOK PART III

E.C.I.A. CHAPTER 1 ACCOUNTING AND REPORTING (CONTINUED)
GENERAL LEDGER INSTRUCTIONS
Each approved project must be accounted for separately. Payment accounts should be established for all budget categories for which funds have been approved.
BANK ACCOUNT INSTRUCTIONS
Chapter 1 funds are advanced monthly to provide for each project's estimated payments for the period. Funds for several projects and/or fiscal years can be in one bank account along with other Funds as long as the accounting records show the separate identities. Chapter 1 cash balances should not be allowed to accumulate over what is currently needed.
PROJECT PERIOD
The "effective beginning date" specified in the project approval is the first date on which project funds can be obligated. Commitments made or services including salaries for twelve-month personnel and project coordinators prior to that date are not project activities and cannot be paid for with project funds.
All unfinished business and outstanding purchase orders must be settled on or before one year after the ending date for the project. Any obligations remaining after the closing deadline should be paid from the school system's General Fund. No obligations made during one project grant period can be paid from project funds of another grant period except in the case of carry-over funds.
Law provides that appropriations which are not obligated and expended prior to the beginning of the fiscal year succeeding the fiscal year for which such funds were appropriated, shall remain available for obligations and expenditures for the succeeding fiscal year.
Regular year projects approved for a fiscal year must be completed, so far as services and obligations are concerned, on or before the end of the grant period. Chapter I personnel employed for the regular school year who are paid on a twelve-month basis can paid during July and August on the regular project.

OCTOBER 6, 1983, ISSUE

PAGE 108-2

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART II I

E.C.I.A. CHAPTER 1 ACCOUNTING AND REPORTING (CONTINUED)
A separate regular-term project may be funded entirely with carry-over funds from the fiscal year just ended. Also, a regular term project may be funded by combining (but not commingling) prior fiscal year carry-over funds and current fiscal year funds. Any project submitted must have a budget of $2.500.00 or more. This does not include project amendments. In all projects. it is important that the identity of funding from each fiscal year be maintained. A separate "Budget" and separate "Budget DetaiP must be prepared, as parts of the application, for the money of each fiscal year involved.
Prior fiscal year funds carried over to the current fiscal year must be documented and accounted for separately from regular current year funds.
All project activities to funded with carry-over funds must be conducted so as to be completed by September 30 of the current federal fiscal year.
If a current year project proposes to use carry-over funds preiously budgeted in prior fiscal year project, a letter must accompany the current fiscal year project proposal stating exactly how much money is being carried over from which project (or projects) identified by the project number (or numbers).
Any carry-over funds to be used in the current fiscal year must be bUdgeted in a current fiscal year project. Shortly after November 1st, any unused prior fiscal year funds will be subject to reallocation.
ACCOUNTING REPORTS TO THE STATE DEPARTMENT OF EDUCATION
1. "Quarterly Report of Expenditures and Estimated Requirements of Grants Funds": A form is due quarterly for each project as long as advanced funds are present in the local school systems. a separate form is required for each fiscal year's funds included in the BUdget of a project.
2. "Project Completion Report tl : A form is prepared at the close of all project activities and accompanied by a refund of any unspent project cash. A separate form is required for each project.
Any questions about the recording of Chapter 1 transactions, report requirements or request for forms should be directed to: State department of Education, Fiscal Services Division, 1554 Twin Towers East. Atlanta, Georgia 30334. Telephone: (404) 656-2497.

OCTOBER 6, 1983, ISSUE

PAGE 108-3

GEORGIA FINANCIAL
ACCOUNTING HANDBOOK PART I II

E.C.I.A. CHAPTER 1 ACCOUNTING AND REPORTING (CONTINUED)
INDIRECT COST ACCOUNTING
Indirect cost as originally estimated for the approved projects must be recalculated at the end of the project to determine the actual amount to be allowed. It should be remembered that Indirect Cost applies to federal projects if an Indirect Cost Rate has been established with Fiscal Services of the Georgia Department of Education and the school system has elected to go the "Indirect Cost Route".

OCTOBER n, 1983, ISSUE

PAGE 108-4

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART III

CHAPTER 109

LEA REAL ESTATE TRANSFER TAX ACCOUNTING

Revenues from real estate transfer taxes must be pro-rated proportionately between the General Fund and the Debt Service Fund (Sinking Fund) based upon the ratio of the millage levies. For example, if the M& 0 levy is 14.0 and
bond levy is 2.0, and $1,500.00 is received from real estate transfer taxes, the revenue would be pro-rated as follows:

(1) 14.0 M& 0 Levy ~ Bond Levy ~ Total Levies

(2) 14.0
16.0 x $1,500 = $1,312.50 for General Fund

(3)

2.0

16.00 x $1,500 = $187.50 for Debt Service Fund (Sinking Fund)

Account Number 1-1130 (General Fund FY 85) should be credited for $1,500.00.
A General fund check should then be issued for $187.50 and the General Fund account 01-1130 should be debited. The Debt Service Fund account 02-1130 should be credited for $187.50 when this check is deposited. These transactions leave the General Fund with a net of $1,312.50 in account 01-1130 and $187.50 in account 02-1130. If a school system does not have a Debt Service (Sinking) fund, the entire receipts from the real estate transfer tax would be put into Account Number 01-1130, General Fund.

DECEMBER 5, 1983, REVISION OCTOBER 6, 1983, ISSUE

PAGE 109-1

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART III

CHAPTER 110
PLANNING AND ISSUING GENERAL OBLIGATION SCHOOL BONDS
By Jerry D. Wootan, Jr.
Much of this material has been gathered from a pUblication by the Chase Manhattan Bank entitled "Planning and Marketing a Municipal Bond Issue." It is a thorough publication.
Georgia school districts are limited almost entirely to financing capital outlay projects through the Georgia State Financing and Investment Commission or through the issuance of general obligation bonds. The initial decisions are what to build and how to finance. The discussion in this material will be limited to general obligation bonds.
After the school board makes the initial decision to call a referendum for school bonds the entire staff becomes important public relations people. The idea must be sold to the public. It makes it easier to sell voters on the idea of school bonds if the school board and staff have kept faith with the people in constructing what was promised in prior bond issue campaigns.
However, it is not the function of this presentation to tell how to get bonds voted, but to outline the steps that need to be taken in anticipation of a referendum and those to be taken after a successful referendum has been held.
Early in the process, an expert municipal bond attorney should be employed to work with the local board attorney in making sure every legal Hi" is dotted and every legal "t" is crossed. The importance of a municipal bond attorney should never be underestimated. The procedure through which a school district may borrow is specifically prescribed by law and the prospective bond purchaser must be assured that each and every step in the authorization process has been in strict observance of the law. This assurance is given to prospective investors by securing the unqualified approving legal opinion of a nationally recognized attorney.
It would be very difficult to market a school bond issue without such an oplnlon. The bond attorney, in cooperation with the local attorney, should supervise all legal activities from inception to final delivery.

FEBRUARY &, 1984, REVISION DECEMBER 14, 1983, ISSUE

PAGE 110-1

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART II I

PLANNING AND ISSUING GENERAL OBLIGATION SCHOOL BONDS (CONTINUED)
Of course, a bond amortization schedule must be worked up by the school fiscal officer in cooperation with the independent auditor of the school system if there is one. This schedule is part and parcel of the prospectus which the school district must prepare and issue. (A bond amortization schedule is illustrated in Chapter 111 of this handbook.)
Even while the preliminary steps are being taken, preparation should be underway for the proper timing and presentation of the bond issue. Usually a school district's need is urgent, but, within reasonable limits, the time of the sale may be varied to avoid selling on a day when supply and demand factors are unfavorable. Here your local banker and other financial advisors will be able to help.
The NOTICE OF SALE should be prepared with the aid of bond counsel and include:
a. The legal name of the issuing body. b. The amount of bonds and purpose for which they are being sold. c. The date, time and place that the bids will be opened and considered. d. The dates of the bonds, maturity dates and any options as to prior payment. e. Bond denominations and registration privileges. f. The interest payment dates and the name and address of the paying agent. g. The basis for bidding with limitations specified. h. The basis for det.ermining the winning bid. i. The amount of the "good faith" deposit that must accompany the bid. j. The complete name, title and address of t.he official to whom the bids must
be submitted. k. The name of the bond counsel who will provide the unqualified approving
legal opinion. 1. Any costs that must be borne by the purchaser. m. The time and place where the bonds will be delivered. n. The provisions made for payment of principal and interest. A clear, concise
and complete statement of the legal security and source of payment for the bonds, including the limits if any on taxes to pay principal and/or interest. o. A statement that the purchaser will receive the proper closing papers at the time of settlement. p. The name and address of the person who can be contacted for further information if needed.
The preparation and distribution of information to interested parties, including t.he financial services and prospective underwriters, can result in considerable savings in interest cost if it is well done. There are many items that should be included in a prospectus. As a bare minimum the prospectus should show where the school district is located, population, major activities, what manufacturing plants are located therein, etc. (all to help determine the economic stability of the school district).

FEBRUARY 6, 1984, REVISION DECEMBER 14, 1983, ISSUE

PAGE 110-2

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART I II

PLANNING AND ISSUING GENERAL OBLIGATION SCHOOL BONDS (CONTINUED)
For general obligation school bonds, the following minimum data should be included in the PROSPECTUS.
a. The current assessed valuation, by classes of property assessed, and a five-year trend of valuations.
b. Percent of fair market value at which the assessments are made. c. A complete statement of debt showing all bonds outstanding. it is also
desirable to show the overlapping debt, i.e., the debts of overlapping taxing jurisdictions. Also, the sinking fund should be part of the prospectus. d. A statement showing the amount of taxes levied in each of the last five years, the amount of current collections on those levies and the amount of such levies still outstanding as of the date of the statement. A statement showing the receipts and disbursements of the major operating funds of the district, i.e., the amounts received from local property taxes, state aid and other major sources; the amounts expended for debt service (both principal and interest), capital outlay, salaries, maintenance, operations, etc. e. A current balance sheet showing the year end cash balances of the major operating funds and such current liabilities as may have been outstanding against those funds annually for the last three to five years. f. A complete maturity schedule of all the outstanding bonds, the principal and interest due each fiscal year from the present to final maturity on all bonds outstanding issued by the school district. g. A statement describing the limitations upon the levy of property taxes, if any. h. A statement showing tax collection dates and the manner of enforcing delinquent tax collections.
Of course, if the district has ever been in default on any of its bonds, the causes of such default should be explained in complete detail as well as the method by which the default was corrected. If there has never been any default, this should be made perfectly clear in the prospectus.
The prospectus should be sent first to all of the "services" that rate bond offerings, Moody's Investor Service and Standard and Poor's Corporation, in addition to Dun and Bradstreet, Inc., which prepares a confidential report for its subscribers. These services should review the prospectus several weeks before bids are to be received. Because these services evaluate issues, it is vital that they should receive the fullest information possible.

FEBRUARY &, 1984, REVISION DECEMBER 14, 1983, ISSUE

PAGE 110-3

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART III

PLANNING AND ISSUING GENERAL OBLIGATION SCHOOL BONDS (CONTINUED)
School districts would do well to make a visit to the rating services headquarters and carry the prospectus to the meeting. If not, the name, address and telephone number of the appropriate school official should be given them in case they have questions.
ADVER1ISING - The issuer must adhere to regulations required by law with respect to advertising the sale of bonds. The Official Notice of Sale should be published in the Daily Bond Buyer and/or other financial pUblications at least ten days or two weeks prior to the sale.
When the advertising appears, any prospective bidders who may not have received the Notice of Sale and prospectus may write for the information which should be ready for immediate transmittal to them. It is a cardinal rule that the issuer of general obligations bonds should try to convey as much pertinent information as possible to rating services and underwriters and must be prepared to answer inquiries promptly.
The appearance of the Official Notice of Sale is a signal to begin forming competitive accounts to bid. This is known in financial circles as "putting together" a syndicate, a group of commercial banks and investment banking firms which join together to bid on the issue. One of the firms or banks in the syndicate serves as the manager and is responsible for all matters relative to submitting the bid.
When the market day arrives, the school board should meet at the hour announced to receive and publicly open all bids. The bonds should be awarded to the bidder with the most. advantageous terms specified in the law and Official Notice of Sale.
The announcement of the award should be made immediately. After the sale and its confirmation by the school board, all good faith deposit checks of unsuccessful bidders should be returned promptly. Papers required to complete the transaction should be conveyed to the attorneys as soon as possible.
Because the winning bid is based on current market conditions, it is important to underwriters to dispose of the bonds quickly before the market changes. The importance of a prompt award cannot be stressed too much. Competing syndicates check each other's bid immediately at sale time and the winning bidder will start a nation-wide sales effort almost immediately. A delay in award may jeopardize this effort and mar the issuer's reputation.

FEBRUARY 6, 1984, REVISION DECEMBER 14, 1983, ISSUE

PAGE 110-4

GEORGIA FINANCIAL ACCOUNTING HANDBOOK
PART I II

PLANNING AND ISSUING GENERAL OBLIGATION SCHOOL BONDS (CONTINUED)
The bonds must first be engraved. This should be done by a firm specializing in such work, which can take the necessary precautions against counterfeiting and forgery and also insure the numbering of the bonds and coupons is accurate.
The bond owner should have the option of registering his bonds as to principal and interest. This service can be performed by the Paying Agent, and it adds to the attractiveness of an issue if the Registrar is located in a large financial center. Actually, these requirements occur when the Official Notice of Sale is prepared, but they should be implemented specifically when the bonds are engraved.
The printed bonds are sent to a signature company, usually in a large financial center. There, the school superintendent, school board chairman and the clerk of the superior court must sign the bonds with the help of machinery which enables them to sign a number of bonds simultaneously and the seal of the school board and of the clerk of the superior court must be affixed.
It is a very good idea to have the legal opinion of the bond attorney printed on the bonds. There are several other technicalities that must be attended to by the bond attorney before the bonds are delivered.
When the delivery has been accomplished and the school district has received the proceeds of the bonds, most of the funds should be invested in accordance with the estimated requirement of funds. U. S. Treasury Bills are excellent for this purpose.
Now that the debt has been incurred, arrangements must be made for prompt payment of the principal and interest as they become due. It is recommended for the convenience of bond holders that the school district name a bank in a large financial center and a local bank to serve as co-paying agents. That is, they will pay the interest coupons and bonds when due from funds deposited with them by the school district. This matter also is decided and announced in the Official Notice of Sale.
After the bonds are sold and the mechanics of payment are functioning smoothly, the school board should continue to supply financial information to the credit agencies and local banks to maintain and improve its credit standing. You may be back with another bond issue before you realize it!
SUMMARY: Issuance of school bonds is obviously a highly specialized and complicated undertaking.

FEBRUARY 6, 1984, REVISION DECEMBER 14, 1983, ISSUE

PAGE 110-5

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART III

PLANNING AND ISSUING GENERAL OBLIGATION SCHOOL BONDS (CONTINUED)
This material can serve only as a guide. The following check list might be helpful in preparing and selling a bond issue.
1. Determine the capital need. 2. Gain public support and get bonds voted. 3. Check with local bankers. 4. Meet with financial consultant. 5. Retain bond attorney.
o. Select paying agent.
7. Prepare prospectus. 8. Furnish full information to rating agencies. 9. Mail information to interested parties. 10. Publish official Notice of Sale in the Daily Bond Buyer. 11. Award bonds promptly. 12. Deliver bonds as soon as possible. 13. Make debt payments promptly. 14. Continue to keep the underwriter and especially the rating agencies
informed about the school district.
It is very important that these steps be taken with the best advice and assistance available. Only in this way can the proposed school district financing be made most attractive when it comes to market.

FEBRUARY 0, 1984, REVISION DECEMBER 14, 1983, ISSUE

PAGE 110-6

GEORGIA FINANCIAL
ACCOUNTING HANDBOOK PART II I

CHAPTER 111
DEBT SERVICE (BOND SINKING) FUND ACCOUNTING
(1) The Debt Service (Bond Sinkin~) Fund account is a separate fund with its own bank account used solely to record receipts of bond tax levies, interest earned and the payments of principal, interest and a~ent's hand1in~ fees in the retirement of outstandin~ bonds of the local school system.
(2) The Debt Service (Bond Sinkin~) Fund arises in the normal course of events after the local board of education and school superintendent decide that their school system need bui1din~s, equipment, land, etc. This decision must be made at a board meetin~ and recorded in the board minutes.
(3) The next step is a bond election voted on by voters of the school district. The bond election must clearly state what the bonds are to be used for, i.e., bui1din~s, equipment, land, bond election costs, etc.
(4) When the bond election has been passed by the voters, the attorney for the board then makes the arran~ement for the validation and sale of the bonds through a bank or other financial a~ency.
(5) When the bonds are sold, an amortization schedule ~lvln~ payment dates, interest payment, principal payment and balance is made and put into the minutes of the next board meetin~. A sample amortization schedule follows at the end of this chapter.
(6) Receipt from the sale of the bonds is recorded in account 5100, "Sale of Bonds" in the Capital Projects Fund (03). Payments for the bui1din~s, land, equipment, etc., are recorded in the appropriate accounts of the series 4000-000 desi~nated as Facilities Acquisition and Construction of the Capital Projects Fund (03).
(7) Payments for the retirement of the bonds are made throu~h the Debt Service (Bond Sinkin~) Fund (02) usin~ Function 5100 and objects as
follows: 830-Interest; 910-Redemption of Bond Principal and 810-Dues &
Fees for payina aaents fees.
(8) Receipts for the retirement of the outstandina bonds are received from a
tax levy which is set annually at the same time the M&0 mil1a~e rate
is set and recorded in the account "Other Property lax and Other Appropriations" in the Debt Service (Bond Sinkin~) Fund (02). It is recommended that an operatina reserve of one year's payments be maintained.

DECEMBER 15, 1983, ISSUE

PAGE 111-1

GEORGIA FINANCIAL ACCOUN1ING HANDBOOK PART III

BOND SINKING FUND ACCOUNTING (CONTINUED)
(9) It is always a ~ood fiscal policy to invest idle funds, and it has been found that the use of idle funds for the purchase of short term investments, such as time certificates, etc., will yield interest earnin~s which in turn lower the amount of tax money required for the retirement of the bonds. Debt Service interest earned should be recorded in the 02-1500 account, "Earnin~s On Investments or Deposits.
(10) In some instances the local boards of education may decide to purchase some of its outstandin~ bonds before the bond maturity date. This is not always possible as most purchasers of school bonds prefer to hold them until the maturity date. However, when the bonds are bou~ht early, the principal. interest and a~ent's fee should be recorded and handled in the same manner and accounts as in the annual retirement of matured bonds.
(11) It is important that coupons when returned by the payin~ a~ent be cancelled by the local school system if the bank or payin~ a~ent does not take care of this detail. A better operation results if the payin~ a~ent cremates the coupons and so certifies by bond number and coupon number to the local board of education.

DECEMBER 15, 1983, ISSUE

PAGE 111-2

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART III

BOND SINKING FUND ACCOUNTING (CONTINUED)

10 YEAR BOND AMORTIZATION SCHEDULE ISSUE DATE 12/1/78; 7% INTEREST PAYABLE EACH JUNE 1st AND DECEMBER 1st; PRINCIPAL PAYMENT TO BE MADE EACH DECEMBER 1st

DATES

FY

PAYMENTS

INTEREST PAYMENT

PRINCIPAL P"'YMENT

BONDS OUTSTANDING BALANCE

1211/78
6/1/79 12/1/79
6/1/80 1211/80
>/1/81 1211/81
6/1/82 1211/82
6/1/83
12/1/83 6/1/84
12/1/84
6/1/85
12/1/85 6/1/86
1211/86 6/1/87
1211/87 6/1/88
1211/88

79 FY 80 FY 80 FY 80 FY 81 FY 81 FY 82 FY 82 FY 83 FY 83 FY 84 FY 84 FY 85 FY 85 FY 86 FY 86 FY 87 FY 87 FY 88 FY 88 FY 89 FY

87,500.00 337,500.00 78,750.00 328,750.00 70,000.00 320,000.00 >1,250.00 311,250.00
52,500.00 302,500.00 43,750.00 293,750.00 35,000.00 285,000.00
26,250.00 276,250.00 17,500.00 267,500.00
8,750.00 258,750.00

87,500.00 337,500.00 78,750.00 78,750.00 70,000.00 70,000.00 >1,250.00 61,250.00
52,500.00 52,500.00 43,750.00 43,750.00 35,000.00 35,000.00 26,250.00 26,250.00 17,500.00 17,500.00 8,750.00 8,750.00

250,000.00 250,000.00 250,000.00 250,000.00 250,000.00 250,000.00 250,000.00 250,000.00 250,000.00 250,000.00

2,500,000.00 2,500,000.00 2,250,000.00 2,250,000.00 2,000,000.00 2,000,000.00 1,750,000.00 1,750,000.00 1,500,000.00 1,500,000.00 1,250,000.00 1,250,000.00 1,000,000.00 1,000,000.00
750,000.00 750,000.00 500,000.00 500,000.00 250,000.00 250,000.00
0.00

TOTALS

3,4&2,500.00 9&2,500.00 2,500.000.00

DECEMBER 15, 1983, ISSUE

PAGE. 111-3

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART III

CHAPTER 112
VOIDING OR WRITING OFF OUTSTANDING CHECKS
Checks may be voided only when they are in your possession. When a check is voided, you should write VOID across the face of the check and cut a V out of the signature space. A reverse entry to the original entry should be made to put the money back into your bank account if the check is voided during the current fiscal year. If the voided check was written in a previous fiscal year, the bank account should be debited and "Fund Balance account 799 (FY 85)" credited. All voided checks should be kept with the returned cancelled checks for the fiscal year in which the check was written.
Outstanding checks that appear in bank reconciliations for three months or more may be written off. These checks would not be in your possession and would have been lost or for some other reason have not been cashed. To put the money back into the bank account, the same procedure as with voided checks should be followed. If at a later date these checks are presented to the bank for payment, a general journal entry must be written to re-enter the check. If the bank should refuse payment of the check because of a stale date, you still owe the obligation and a new check must be written. The old check when presented to you should be marked VOID and IISee Check No. __II and filed in the proper fiscal year with t.he reconciled checks. The new check should be entered in the cash book in the same manner as any other check that is written.

OCTOBER 14, 1983, ISSUE

PAGE 112-1

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART I II

j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j

CHAPTER 113
PROCEDURE FOR CLOSING MONTHLY FINANCIAL RECORDS
In order to expedite the closing of monthly financial records, the following procedures are recommended:
(l) After the Combined Journal is in balance and all postings have been made to the General ledger, and year-to-date totals entered, you should be able to total the accounts in each fund (add if debit, subtract if credit) and come up with a total of $0.00. This indicates that you have in the General ledger exactly the same debits and credits.
(2) You should compare the bank balance in the Memo column of the Combined Journal with the reconciled bank statement to make sure your books are in balance with the reconciled bank statement.
(3) It should be pointed out that the Financial Review Section of the Georgia Department of Education recommends that the bank reconcilments always be assigned to a person who is not responsible for originating checks and deposits for the bank account being reconciled.
(4) Two of the more common mistakes made in posting and balancing a ledger are:
(A) Posting a debit as a credit, and/or posting a credit as a debit. This could also apply to properly designating an account balance as "Dr" or "Cr".
(B) lransposing figures. An example of this would be posting an item which is $830.00 as $803.00 or $380.00. Differences caused by transposition are always divisible by "9".
(5) Although there is no fool proof method of posting and balancing each month, the methods suggested above should be helpful in monthly closing of the books in the least amount of time. It should be stressed that it is imperative that the Combined Journals, the General ledger, and the reconciled bank statements must all tie in with each other before work is begun in the General ledger for a new month.

JULY 1, 1984, ISSUE.

PAGE. 113-1

GEORGIA FINANCIAL ACCOUN1ING HANDBOOK PART II I

PROCEDURE FOR CLOSING MONTHLY FINANCIAL RECORDS (CONTINUED)
(6) At the end of the fiscal year (June 30) you must close out the total of your expenditures into the fund balances. This entry would show on your combined Journal with a date of June 30 as a debit to a Fund Balance account (Such as 1-295) and a credit to total expenditures for the same amount. You must also close the Revenues into the Fund Balance accounts by debiting Total Revenues and crediting Fund Balances for identical amounts.
(1) It is important that when the bank statement is reconciled, the cancelled checks be placed in numerical order. This enables your office. our office, and the State Department of Audits to quickly locate any cancelled check. In a local school system which uses a two or three part voucher check. the original check (the one disbursed to the payee and which goes through the bank) should be placed in numerical order with the bank statement. The first copy of the voucher check should be securely attached (by staple, slide fastener, etc.) to the invoices(s) covered by the check and to other pertinent papers. The invoices along with the copy of the voucher check should be filed in numerical order. The second copy of the voucher check should be kept numerically and used to make entries on the Combined Journal. After the entries are made in the Combined Journal. these second voucher copies should be alphabetized and filed for use in checking vendor statements, etc. Notation should be made on the voucher to indicate the check has been posted to the Combined Journal. An example would be a check mark or the word "Posted ll , etc.
(8) We recommend that all local school systems that do not presently have two or three part voucher checks consider ordering this type of check voucher the next time the school system has to order checks.
(9) local school systems still using check books without file copies should at least write the check number on each invoice paid and file the invoice. etc., numerically by check number.
(10) Voided checks should have the signature area torn off and the word "void" written across the face of the check. Voided check numbers should be entered in the Combined Journal in numerical sequence with a notation that the check or checks have been voided. Every check must be retained and filed in numerical sequence along with other checks enclosed with a reconciled bank statement.

JULY 1, 1984. ISSUE

PAGE 113-2

GEORGIA FINANCIAL
ACCOUN1ING HANDBOOK PARl II I

CHAPTER 114 SAMPLES OF LOCAL PLAN FOR SELF-INSURED EMPLOYEE BENEFIT FUND

PINE TREE COUNTY BOARD OF EDUCATION ALLOCATION PLAN: SELF-INSURED EMPLOYEE BENEFIT FUND

1. A "Self-Insured Employee Benefit Fund" will be established as a separate fund. This fund shall be used to pay the cost of workers' compensation claims and to reimburse the Georgia Department of Labor for its costs. The cost of maintaining. this fund shall be allocated to all other funds which pay salaries, in accordance with the fo11wing plan.
2. Each fund will pay $50.00 per employee to the Employee Benefit Fund annually for worker's compensation, based on the number of employees on the payroll as of September 30.
3. Each fund will pay $15.00 per employee to the Employee Benefit Fund annually for unemployment compensation, based on the number of employees on the payroll as of September 30.
4. Either of these contribution rates may be adjusted at the beginning of any fiscal year if necessary due to claims experience.

**********

*

*

* SAM P L E *

*

*

**********

MARCH 7, 1984, REVISION OCTOBER 19, 1983, ISSUE

PAGE 114-1

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART II I

SAMPLES OF LOCAL PLANS FOR SELF-INSURED EMPLOYEE BENEFIT FUND (CONTINUED)

PINE TREE COUNTY BOARD OF EDUCATION ALLOCATION PLAN: SELF-INSURED EMPLOYEE BENEFIT FUND

1. A "Self-Insured Employee Benefit Fund" will be established as a separate fund. This fund shall be used to pay workers' compensation claims and to reimburse the Georgia Department of Labor for its costs. The cost of maintaining this fund shall be allocated to all other funds which pay salaries. in accordance with the follwing plan.
2. Each fund will pay $ 50.00 per employee to the Employee Benefit Fund annually for workers' compensation based on the number of employees on the payroll as of September 1.
3. Each fund will pay to the Employee Benefit Fund for unemployment compensation. 2.5% of the first $600 of each employee's annual salary. "Annual salary" is defined as salary paid during the fiscal year.
4. Either of these contribution rates may be adjusted at the beginning of any fiscal year if necessary due to claims experience.

**********

** SAM P L E **

*

*

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......................................

MARCH 7. 1984. REVISION OCTOBER 19. 1983. ISSUE

PAGE 114-2

GEORGIA FINANCIAL ACCOUNTING HANDBOOK
PART I II

CHAPTER 115
REVENUE RECEIPTS AND NON-REVENUE RECEIPTS
The purpose of this chapter 1s to assist you in the distinction between revenue receipts from local sources and receipts that are not revenue. Most items are self-explanatory; however. two illustrations should be helpful.
(1) A revenue account in the 1000 series should be used for monies received from tax collectors as a result of fines and forfeitures from the Game and Fish Department and monies received from the local courts under Georgia Code Section 44-5-190 thru 44-5-210 and pertaining to "Escheat and Forfeiture" should also be recorded and reported in the series 1000 accounts. The proceeds from all fines and forfeitures arising from the violation of the wildlife laws. rules. and regulations shall be used first to pay the proper officers of the trial court. The money remaining shall be remitted by the clerk of the court in which the case is disposed of to the county treasurer who shall deposit the funds in the general fund of the county and then allocate these funds to the county school board. In like manner. all proceeds of escheated property is to be paid to the General Fund of the local county board of education. These items are revenue and should be recorded in a revenue account.
(2) The account entitled "Other Sources" (5995) is to be used as a clearing account for miscellaneous local receipts such as abatements. refunds. and rebates. These receipts are to be recorded in "Other Sources" as receipts (credits) until general journal entries can, be made debiting "Other Sources" for these amounts and crediting the proper expense accounts. These items are not revenue and should not remain in revenue accounts.
An example of these types of receipts would be a school reimbursing the local school system for long distance telephone calls. If this occurred on February 10th. "Other Sources" would be credited with a notation that the credit was for a telephone expense reimbursement. Later. a general journal entry would be made debiting "Other Sources". and crediting the telephone expense account.
This procedure will result in clearing the account of abatements. refunds and rebates but will still provide the receipts-to-deposits trail required by the State Department of Audits. In addition. the expense accounts will reflect the actual cost of operations to the school system.

JANUARY 22. 1985. REVISION DECEMBER 14. 1983. ISSUE

PAGE 115-1

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART III

CHAPTER 116
TAX ON HEATING OIL
The Motor Fuel lax Unit, Department of Revenue, advises that heating oil is no. 2 or no. 3 fuel oil and i's not taxable for the 3% motor fuel tax if the distributor places the fuel oil in the tank and that there is no petcock or other means of drawing off the fuel oil between the tank and the heating element.
lhe Sales and Use tax Unit, Department of Revenue, advises that if the above conditions exist that the local school system should present the distributor with a Form ST-5 for the exemption of Sales Tax on the fuel for heating. Sales tax on gasoline for the operation of the school buses will remain in effect until the State l.egislature makes a change.

DECEMBER 20, 1983 ISSUE

PAGE 116-1

GEORGIA FINANCIAL
ACCOUNTING HANDBOOK PART III

CHAPTER 117
BORROWING WITH AD VALOREM TAXES AS SECURITY
The Constitution of the State of Georgia authorizes local county boards of education to borrow money for the operation of the school system. Section 2-5205 (Art. IX. SEC. V) Paragraph V. Temporary loans authorized "the governing authority of any county. municipality. or other political subdivision of this state may incur debt by obtaining temporary loans in each year to pay expenses. The aggregate amount of all such loans shall not exceed 75 percent of the total gross income from taxes collected in the last preceding year. Such loans shall be payable on or before Uecember 31 of the calendar year in which such loan is made. No such loan may be obtained when there is a loan then unpaid obtained in any prior year. No such county. municipality. or other political subdivision of this state shall incur in anyone calendar year an aggregate of such temporary loans or other contracts. notes. warrants. or obligations for current expenses in excess of the total anticipated revenue for such calendar year.-
NOTE: By definition a county board of education is a political subdivision. Section 20-2-390 of the Code of Georgia Annotated also authorizes local county boards of education to borrow money. However. this Section is in conflict with Section 2-5205 as to the amount that may be borrowed and Section 20-2-390 does not specify a time that the loan must be repaid. Section 2-5205 will prevail for authority to borrow money by local boards of education.

DECEMBER 15. 1983. ISSUE

PAGE 117-1

GEORGIA FINANCIAL
ACCOUNTING HANDBOOK PART III

CHAPTER 119
INSTRUCTIONAL EQUIPMENT FUND (THROUGH 6/30/86)
Ga. Code Section 20-2-159 requires the State Board of Education to grant funds to local units of administration for the purchase, maintenance, repair and replacement of equipment for instructional laboratories and special educational classrooms.
Instructional equipment funds are received in the local school system as a part of A.P.E.G. and must first be recorded in the General Fund along with all other A.P.E.G. receipts. The gross amount shown on the computer printout that accompanies the A.P.E.G. check is the amount to be transferred from the General Fund (01) to the Instructional Equipment Fund (22). The tranfers can be either general journal entries (if the general bank account handles both the General Fund and the Instructional Equipment Fund) or by check (if the Instructional Equipment Fund is in a different bank account from the General Fund).
Even though a separate fund is required for instructional equipment, a separate bank account is not required and the Instructional Equipment Fund can be in the same bank account as the General Fund.
Expenditures from the Instructional Equipment Fund (22) are recorded in the Instruction Section in account 1000-730. The repair of instructional equipment should be charged to 1000-890 and not 2640-430. When the required amount for the fund is not great enough for expenditures, extra local funds should be transferred from the General Fund to the Instructional Equipment Fund so that all instructional equipment expenditures are from only one fund and not divided between the Instructional Equipment Fund and the General Fund.

JULY 18, 1985, REVISION DECEMBER 20, 1983, ISSUE

PAGE 119-1

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART III

CHAPTER 120
ACCOUNTING PROCEDURES FOR MIGRANT EDUCATION AGENCY (MEA) ACTIVITIES THROUGH MEA FISCAL AGENTS AND LOCAL EDUCATION AGENCIES
The state Migrant Education Program State Coordinator and Staff are components of the State Department of Education and the Department's accounting policies apply to them. There are four MEAs throughout the state, each having a fiscal agent LEA to provide migrant education services within the geographic areas of the four MEAs. These procedures are directed both to the fiscal agent MEAs and to the LEAs having migrant education program activity.
The procedures set out below have been developed cooperatively by the State Depart.ment of Education (SDE) and t.he State Department of Audits (SDA). The uniqueness of MEA activit.y requires unique accounting t.echniques to insure proper financial reporting and t.o avoid over reporting.
The four MEAs write a grant application each year and enter into a contract. with the St.ate Board of Education (SDE) to receive funds. The grant applicat.ion describes t.he needs, program objectives, geographic area t.o be served, services t.o be provided and an est.imat.e of t.he number of children to whom each service will be provided. It. includes a line it.em budget. Line it.ems in t.he bUdget may not. vary by more t.han 25% without an amendment. Budget. amendment.s are required for any increase in the t.ot.al budget..
DISBURSEMENT OF FUNDS:
(1) Each year the LEA prepares a form, signed by t.he Superint.endent., which lists the names of t.he LEA personnel who perform migrant educat.ion funct.ions - normally on a supplement.ary basis - t.heir salary and fringe benefit.s. The LEA may receive an appropriate share of unemployment insurance premiums if the LEA has an unemployment insurance plan. The LEA makes a quarterly request of t.he fiscal agent for funds for salaries and benefit.s.
(2) If the MEA fiscal agent has an approved indirect cost plan, it. may receive migrant. education program funds in accordance therewit.h.
(3) All t.ravel expense for migrant LEA st.aff is paid directly t.o t.he LEA staff member by t.he MEA fiscal agent. aft.er receiving aut.horizat.ion from the LEA board of educat.ion t.o do so. Travel reimbursement request.s originate wit.h LEA migrant staff, are checked by the LEA contact. person and are checked by MEA staff before being approved for payment.
(4) One MEA may pay tot.al cost.s for certain statwide program activites or functions, including, but. not limited to information dissemination, pupil accident. insurance, St.ate Parent Advisory Council.

JULY 1, 1984, ISSUE

PAGE 120-1

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART I II

ACCOUNTING PROCEDURES FOR MIGRANT EDUCATION AGENCY ACTIVITIES THROUGH
MEA FISCAL AGENTS AND LOCAL EDUCATION AGENCIES (CONTINUED)
Becording and Reporting:
(1) Each MEA paying migrant staff LEA personnel must submit a report as of June 30 annually to the State Department of Audits for the travel it has paid LEA migrant staff personnel. The report is to be broken down by LEAs and the travel amount.s wi 11 be report.ed as per diem and fees since there will be no direct salary payment. Each MEA will pay travel only to the LEA migrant. staff personnel in its area.
(2) The MEA fiscal agent will record any indirect cost it receives from the MEA grant in account 01-5400, Indirect Cost Reimbursement..
(3) Since the MEA program is federally funded but state administered, the Grant will be recorded in the fiscal agents revenue account 40-3499, Other Grants from the Georgia Department. of Education. Salary and benefit payments made to the LEAs will be charged t.o account 40-1000-5&1, luit.ion to Other Georgia LEAs. Use of this account (luition to ot.her Georgia LEAs) wi 11 make it possible not to duplicate these amounts in state totals.
(4) The LEA will record receipt. of quarterly grant from the MEA in account. 01-1950, Services Provided Other LEAs or Governmental Units. If Sick and Personal Leave funds are included that amount must be transferred to the Leave Fund of the LEA.
(5) The LEA will pay its migrant personnel through it.s regular payroll procedures charging accounts 01-1000-110,
Salaries-Teachers or 01-1000-140 Salaries Teacher Aides &
Paraprofessionals, as is appropriate.
(&) The MEA staff will purchase all supplies and mat.erials and furnish them directly t.o the LEA migrant staff personnel. This provision includes, but is not limited t.o, office supplies, communications expenses, postage, and similar items. Within t.he MEA Fund, appropriat.e function and object account.s will be charged for these expenses.
(1) The MEA may pay per diem and fees t.o consultants engaged to perform certain program related functions.

JULY 1, 1984, ISSUE

PAGE 120-2

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART I II

CHAPTER 121
ACCOUNTING fOR INDIRECT COSTS fOR fEDERALLY ASSISTED PROGRAMS
Each local school system 1s requ1red to (1) subm1t to the State Department of Educat10n a restr1cted or non-restr1cted 1nd1rect cost plan for federally ass1sted programs or (2) g1ve the State Department of Educat10n wr1tten not1f1cat10n that such a plan w111 not be subm1tted. If a plan 1s not subm1tted. then 1nd1rect cost cannot be recovered at a later t1me from federal grants and contracts.
All costs from the General fund most be analyzed and d1v1ded 1nto costs that are (a) unallowable costs. (b) 1nd1rect costs. and (c) d1rect costs. follow1ng are some defin1t10ns wh1ch may help you 1n the preparat10n of your 1nd1rect cost plan.
Unallowable Cost
Th1s category 1ncludes the sa1ar1es of the super1ntendent and h1s secretary. the fr1nge benef1ts for both pos1t10ns. and other costs app11cab1e to these pos1t10ns. such as travel and off1ce expense. Also. any expend1tures related the local board of educat10n. such as per d1em and travel. are unallowable costs. Salar1es of pr1nc1pals of the var10us schools. salar1es of the1r c1er1ca1 ass1stants. and the1r related off1ce expenses. etc. also fall 1nto th1s category of unallowable costs. In add1t10n. such 1tems as 1nterest expense and all other costs of general government are cons1dered as unallowable costs.
Ind1rect Cost
Th1s category 1nc1udes the sa1ar1es and other expend1tures for d1rect1on and control of system-w1de act1v1t1es. Th1s would generally 1nc1ude the sa1ar1es and other expenses d1rectly attr1butab1e to those personnel who have respons1b111t1es 1n budget1ng. payroll. personnel. and purchas1ng and would 1nc1ude ass1stant super1ntendents. bus1ness managers. bookkeepers. etc. Th1s category may 1nc1ude such 1tems as the salar1es of cler1ca1 ass1stants. off1ce expense. travel. contr1but10ns for soc1al secur1ty. ret1rement. etc . and var10us 1nsurance programs directly related to these pos1t10ns. In preparat10n of restricted 1nd1rect cost plans. only adm1n1strat1on and f1xed charges can be cons1dered as 1nd1rect costs. Operat10n and ma1ntenance of plant may be cons1dered 1nd1rect costs on the non-restricted cost plan.

JULY 1. 1984. ISSUE

PAGE 121-1

GEORGIA fINANCIAL ACCOUNTING HANDBOOK PART III

ACCOUNTING FOR INDIRECT COST (CONTINUED)
D1rect Cost
Th1s category 1ncludes those expend1tures for all other purposes that are left after proper d1str1but10n of costs to unallowable costs and 1nd1rect costs. Salar1es of assoc1ate and/or ass1stant super1ntendents who are ass1gned spec1f1c funct10ns 1n one area or program. along w1th the salar1es of the1r cler1cal ass1stants. and related 1tems of cost would be cons1dered d1rect costs. Salar1es of project d1rectors and the1r 1mmed1ate cler1cal ass1stants are also cons1dered d1rect costs. Th1s would 1nclude persons whose pos1t10ns may be funded by more than one program.
The follow1ng formula will be used 1n calculat1ng an 1nd1rect cost rate:
Ind1rect Cost D1v1ded By (Unallowable Cost Plus D1rect Cost) Equals Ind1rect Cost Rate.
After an 1nd1rect cost plan has been subm1tted and a rate has been approved. the system then may charge 1nd1rect cost to federal programs 1n accordance w1th the plan and the approved federal programs. Ind1rect cost should be f1gured on each project separately.
The school system 1s requ1red to use the approved 1nd1rect cost rate 1n all app11cat10ns for federal grants dur1ng the f1scal year for wh1ch the rate has been estab11shed. The rate shall be app11ed aga1nst the grant total. A check w111 be wr1tten for the amount of 1nd1rect cost calculated. and the expend1ture charged to the appropr1ate fund. The rece1pt should be cred1ted 1n the General Fund to account 5400 (Ind1rect Cost Re1mbursement).
Annually. the Georg1a Department of Educat10n Account1ng Serv1ces Sect10n w111 send each Super1ntendent/CESA D1rector a complete set of 1nstruct10ns and forms on wh1ch to apply for an 1nd1rect cost rate-1nclud1ng a dec11nat10n form. Normally th1s 1s sent 1n December and responses are due by the follow1ng January 31. The forms are keyed to the F1nanc1al Report (DE 0046) for the prev10us f1scal year. 1.e . 1nd1rect cost rates for FY 85 w111 be based on f1nanc1al data reported on Annual F1nanc1al Reports (DE FORM 0046) for the year ended June 30. 1983.

JULY 1. 1984. ISSUE

PAGE 121-2

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART III

CHAPTER 122
THE FINANCIAL AREA OF A SUPERINTENDENCY CHANGE
(1) The outgoing superintendent should see that all sections of the Combined Journal (Record of Revenues and Expenditures) are current and posted to the General Ledger. Any subsidiary ledgers should agree with the appropriate general ledger control account.
(2) Each bank account should then be cleared by the new superintendent going to each bank and signing new signature cards for each bank account. Reconciled bank statements through the last day for the old superintendent should also be tied into the cash account balances in the General Ledger.
(3) The outgoing superintendent should notify all banks concerned of the change of superintendent and when loans or investments are involved, request guidance as to how the change should be handled.
(4) All books, loan papers, investment certificates, etc., should be turned over to the incoming superintendent at the opening of business on the first working day of the term of office of the incoming superintendent.
(5) The outgoing superintendent as well as the incoming superintendent should individually write to Mr. William M. Nixon, Jr., State Auditor, Trinity-Washington Building, Atlanta, Georgia 30334, informing Mr. Nixon of the change in administration, the date of the change and requesting an early audit of the books of the local school system.
(6) The incoming superintendent must secure a surety or fidelity bond in accordance with state law. The original should be filed with the county ordinary and a certified copy transmitted to the State Superintendent of Schools, Georgia Department of Education, Twin Towers-East, Atlanta, Georgia 30334. The bond should be secured before taking office as the Georgia Department of Education cannot send money to the incoming superintendent until a certified copy of the bond is on file.
(7) The outgoing superintendent should, as a courtesy, inform the incoming superintendent of bond payments, due after the change of superintendents, and of building programs, etc., currently under way.
(8) It is wise to keep the same bank accounts so that you will not need to order new checks.
(9) The incoming superintendent should have the books and records continued that are presented by the outgoing superintendent for the remainder of the fiscal year ending June 30. As of June 30, the Revenue and Expenditure accounts will be closed into the Fund Equity accounts, financial statements prepared for the entire fiscal year and submitted to the local board of education ..

DECEMBER 20, 1984, ISSUE

PAGE 122-1

GfORGIA FINANCIAL ACCOUNTING HANDBOOK PART III

CHAPTER 123 SAMPLE ILLUSTRATION OF LETTER TO LOCAL COMMISSIONER OF REVENUE

PINEIREE COUNTY BOARD OF EDUCATION ANYTOWN, GEORGIA 33333

August 12, 1984

Mr. John Doe Commissioner of Revenue Pinetree Count.y Anyt.own, Georgia 33333
Dear Mr. Doe:

***********

*

SAMPLE

*

** ILLUSTRATION **

*
*

*

*

*

*

*

*

*

*

*

*
*

The Pinetree County Board of Educat.ion at it.s regular meeting on Tuesday, August 7, 1984, set 1984 tax millage levies based on the Tax Digest submitted to this office as follows:
For the retirement of school bonds and the interest on school bonds:
2.5 mills on Tax Digest of $86,556,000
For t.he maint.enance and operation of schools: 18.5 mills on a Tax Digest of $69,245,000

Respectfully submitted,
Gt:J:"uJ~-:rL
ahn Smith, Superintendent Pinet.ree County Board of Education

cc: Georgia Revenue Commissioner

JANUARY 12, 1984, ISSUE

PAGE 123-1

GEORGIA FINANCIAL
ACCOUNTING HANDBOOK PART III

CHAPTER 124
EQUIPMENT INVENTORY CONTROL PROGRAM
In order to maintain a proper control on equipment purchased with federal, state, and/or local funds, the following procedure is suggested.
(1) Maintain an inventory control card or computerized record for each piece of equipment showing the name of the equipment, date purchased. serial number, from whom purchased, cost, location and date assigned.
(2) When a piece of equipment is purchased. two of these cards should be filled out as soon as the delivery is made. One copy should be filed in the superintendent's office and one copy should be filed in the principal's office of the school receiving the equipment. If the equipment has a serial number, that number may be assigned as a control number. If the equipment has no serial number, a control should be placed on the equipment, the inventory cards, and the invoice for the equipment. In the case of serially numbered equipment, it is optional whether or not another control number is assigned.
(3) If a piece of equipment is transferred from one school to another, the date of transfer and the school receiving the equipment should be noted on both cards at time of transfer. If a piece of equipment is stolen or traded, the date and pertinent facts should be shown on the card.
(4) An annual physical check should be made by the principal of each school and the superintendent's office should make sure that inventory records are always up-to-date and equipment is properly labeled.

JUNE 20, 1984, ISSUE

PAGE 124-1

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART I II

CHAPTER 126
INTERFUND TRANSFERS, REFUNDS, TRANSACTIONS BETWEEN LEAs AND OTHER GOVERNMENTAL UNITS, AND FUNDS RETURNED TO THE GEORGIA DEPARTMENT OF EDUCATION
As nearly as practicable transactions between funds and among the funds of LEAs, CESAs, and other governmental units should be made in accordance with generally accepted governmental accounting principles. Currently, the National Council on Governmental Accounting Statement 1 recognizes four categories of such transactions as follows:
(1) Quasi-External Transactions: Transactions that would be treated as revenues, or expenditures if they involved organizations outside of the LEA. For example, payments to a CESA or a local government for goods or services would be recorded as an expenditure;
(2) Reimbursements: Transactions which constitute reimbursements of a fund for expenditures or expenses initially made from it which are properly applicable to another fund--e.g., an expenditure properly chargeable to a Special Revenue Fund such as ECIA Chapter 1 was initially made from the General Fund, which is sUbsequently reimbursed.
(3) Residual Equity Transfers (RE1): Non-recurring or non-routine transfers of equity between funds. Typically, their purpose is (1) to increase or decrease the operating capacity of a Proprietary Fund or (2) to transfer the balances of discontinued funds to other funds. An example of a residual equity transfer would be to transfer the balance of a Debt Service (Sinking) Fund to the General Fund after all obligations had been liquidated upon a proper resolution of the local board. Another example is if the General Fund had to contribute to a Special Revenue Fund because it fell below the required legal minimum. However, the Department will not observe the distinction between Residual Equity Transfers and Operating Transfers.
(4) Operating Transfers: All other Interfund transfers, which are legally authorized transfers from a fund receiving revenue to the fund through which the resources are to be expended. There are several other troublesome transactions involving the movement of funds between LEAs and other governmental units, the treatment of which are covered in this Chapter. The following table attempts to depict the above transactions according to NCGA Statement 1 and the equivalent treatment in the Georgia Financial Accounting Handbook.

JULY 1, 19B4, ISSUE

PAGE 126-1

GEORGIA FINANCIAL ACCOUN1ING HANDBOOK PART III

INTERFUND TRANSFERS, REFUNDS, TRANSACTIONS BETWEEN LEAs AND OTHER GOVERNMENTAL UNITS, AND FUNDS RETURNED TO THE GEORGIA DEPARTMENT OF EDUCATION (CONTINUED)

INTERFUND TRANSFERS AND TRANSACTIONS BETWEEN LEAS AND OTHER GOVERNMENTAL UNITS

According to NCGA Statement

Characteristics

Treatment

Ga. Fin. Acctg. Handbook Chapter 126 Eguivalent

Recipient

Payer

1. Quasi-External

Each Entity gives and Revenue receives consideration

Expenditure

Used for Transactions between LEA and: another LEA, CESA, or Govt. Unit including transactions of Internal Services Funds within the LEA.

2. Reimbursements

Paid from one fund for another fund as an expedient/or in error

Reduce Expenditures

Expenditure

Used when one fund disburses funds for another fund for expediency (Chapter I, Etc.)

3. Residual Equity Transfers (RETS)

Non-recurring or Non-routine shifts of equity between funds

Govt. Fund: Adjustment to

Govt. Fund: Adjustment to

RETS will be treated as operating transfers

Fund Ba1ance

Fund Ba1ance

Proprietary Fund: Proprietary Fund:

Change in

Ei ther as

contributed

reduction of

capital

retained

earnings or

capita1

4. Operating Transfers Only one Entity gives or receives consideration not both Purpose 1s to support nonnal level of operations in recipient fund
.. .. .. ,. .. It.
5. Other Transactions LEA receives funds designated for another entity.

Operating transfers in
Revenue

Operating transfers out

Used for 5 APEG transfers or to give funds to another fund when they are not loans.

Reduction of Revenue

..





,.













It .. .. .. .. .. .. .. .. ..

NOT APPLICABLE

JULY 1, 1984, ISSUE

PAGE 126-2

GEORGIA FINANCIAL ACCOUNTING HANDBOOK
PART I II

INTERFUND TRANSFERS, REFUNDS, TRANSACTIONS BETWEEN LEAs AND OTHER GOVERNMENTAL UNITS, AND FUNDS RETURNED TO THE GEORGIA DEPARTMENT OF EDUCATION (CONTINUED)

INTERFUND TRANSFERS

Interfund transfers are defined as transactions between the funds of the local system and generally are limited to the five (5) types of transactions required by the APEG Law and Georgia Department of Education Policy. These 5 types of interfund transfers are those to set-up in required Special Revenue Fund accounts the gross amount of APEG funds the state share of which is included in monthly APEG checks to the LEA for:

Fund Code

1. Leave

20

2. Instructional Media

21

3. Instructional Equipment

22

4. Compensatory Education Program (CEP)

23

5. Bus Replacement

24

The accounts to be used in making these transfers are:

Acct No.

Account Title

xx-5200-930 Outgoing Transfers to Other Funds

xx-5200

Incoming Transfers from Other Funds

JULY 1, 1984, ISSUE

PAGE 126-3

GEORGIA FINANCIAL ACCOUNTING HANDBOOK
PART 111

INTERFUND TRANSFERS, REFUNDS, TRANSACTIONS BETWEEN LEAs AND OTHER GOVERNMENTAL UNITS, AND FUNDS RETURNED TO THE GEORGIA DEPARTMENT OF EDUCATION (CONTINUED)

When the LEA receives its APEG check the credit to account 01-3100, APEG Grants, includes the state share of funds for these required Special Revenue accounts. No required local effort (RLE) applies to the Compensatory Education Program and the remittance advice (EDAP0035-Rl) that accompanies the APEG check shows the
same amount for Compensatory Education in both the gross amount and net amount
columns. RLE does apply to the other grants and is shown on the AP-035 to the right of the gross amount from which it is deducted to get the net amount. Most
LEAs will use only one bank account for its General Fund and these 5 required
Special Revenue Funds. The required entry for the five amounts to be transferred should be made monthly by general journal entry as follows:

Amounts are Gross Amounts Per AP-035

Account NO.

Account Title

Debit

Credit

01-5200-930
20-5200 21-5200 22-5200 23-5200 24-5200

Transfers to Other Funds
Transfers from Other Funds Transfers from Other Funds Transfers from Other Funds Transfers from Other Funds Transfers from Other Funds

Total Of 5 Special Revenue
Grants

Leave* Media Instr. Equip Compo Ed. Bus Replacement

*Teachers Plus Bus Drivers

JULY 1, 1984, ISSUE

PAGE 126-4

GEORGIA FINANCIAL ACCOUNTING HANDBOOK
PART III

INTERFUND TRANSFERS, REFUNDS, TRANSACTIONS BETWEEN LEAs AND OTHER GOVERNMENTAL UNITS, AND FUNDS RETURNED TO THE GEORGIA DEPARTMENT OF EDUCATION (CONTINUED)
If the required transfers to one or more of these required special revenue funds plus the beginning fund equity is not sufficient to cover all expenditures for that fund for the fiscal year, additional General Fund transfers of local funds would have to be made to leave a fund balance in the special revenue fund of not less than zero.
For example, suppose the Leave Fund had a beginning fund balance of $1,000, required transfers of $10,000 but the substitute teacher payroll for the year was $12,500. This would require an additional transfer from the General Fund of $1,500 of local funds to offset the deficit. This transfer would be recorded like the monthly transfer, except it would probably be a year end adjustment.
Occasionally, an LEA may have to record a transaction between funds that is not one of the five APEG required transfers and it should also be classified as an interfund transfer. An example might be the transfer to the Capital Projects Fund (03) of funds from the General Fund (01) with no expectation that the funds would ever be repaid to the General Fund but would be used to finance capital projects. In such a case the entry would be:
assuming separate bank accounts: Debit 01-5200-930, Outgoing Transfers to Other Funds Credit 01-101, Cash Balances
and
Debit 03-101, Cash Balances Credit 03-5200, Incoming Transfers from Other Funds
Care should be exercised to insure that the Total of Incoming Transfers from Other Funds equals the Total of Outgoing Transfers to Other Funds. These totals will be called for on page 3 of the financial report DE Form 0046. Interfund transfers are classified as Other Sources and Other Uses because the transfer does not represent additional revenue to the LEA as a whole.

JULY 1, 19B4, ISSUE

PAGE 126-5

GEORGIA FINANCIAL ACCOUNTING HANDBOOK
PART III

INTERFUND TRANSFERS. REFUNDS. TRANSACTIONS BETWEEN LEAs AND OTHER GOVERNMENTAL UNITS. AND FUNDS RETURNED TO THE GEORGIA DEPARTMENT OF EDUCATION (CONTINUED)
OTHER INTERFUND TRANSACTIONS:
An LEA with an approved Indirect Cost Plan and an ECIA Chapter 1 project may reimburse the General Fund for incurred indirect costs. The entry to record the payment to the General Fund of Chapter 1 indirect costs would be:
assuming one bank account: Debit 28-5400-940, Indirect Cost Charge Credit 01-5400, Indirect Cost Reimbursement
or
assuming separate bank accounts: Debit 28-5400-940, Indirect Cost Charge Credit 28-101, Cash 8alances
and
Debit 01-101, Cash Balances Credit 01-5400, Indirect Cost Reimbursement
An LEA may charge an ECIA Chapter 1, Chapter 2, or other federally funded grant program for leave expenditures, provided the leave amount is included in the approved project budget. In this case, the leave amounts would not be a transfer to the leave fund. They would be accounted for in the paying fund as an expenditure, and in the leave fund as a revenue. The entry to charge the ECIA Chapter 1 fund for leave and credit the leave fund would be:
assuming both funds are in the same bank account: Debit 28-1000-890, Other Instructional Expenditures Credit 20-5995, Other Sources

JULY 1, 1984, ISSUE

PAGE 12&-&

GEORGIA FINANCIAL
ACCOUNTING HANDBOOK PART III

INTERFUND TRANSFERS, REFUNDS, TRANSACTIONS BETWEEN LEAs AND OTHER GOVERNMENTAL UNITS, AND FUNDS RETURNED TO THE GEORGIA DEPARTMENT OF EDUCATION (CONTINUED)
An LEA with a bond tax levy and Debt Service (Sinking) Fund with its required separate bank account receives an ad Valorem tax check from the tax commissioner. The entry to record the issuance of a General Fund check to pay the Debt Service Fund its share of taxes would be:
Debit 01-1110, Ad Valorem Taxes Credit 01-101, Cash Balances
The entry to record the receipt by the Debt Service Fund would be:
Debit 02-101, Cash Balances Credit 02-1110, Ad Valorem Taxes
In this case the check contained revenue for both funds. Because it was a single check it had to be received, credited to revenue and deposited in the General Fund. The temporary overstatement of the General Fund revenue account is corrected by a charge (debit) to the overstated account when the check is issued to the Debt Service Fund.
NOTE: Many systems receive separate checks for M&0 and for bonds. These separate checks should be credited directly to the fund in which they belong. A separate check for bond tax should not be deposited in the General Fund and then transferred to the Debt Service Fund.
Payment of Funds to Other School Systems, CESAs or Other Governmental Units: Payment of funds to other school systems, CESAs or other governmental units should be charged to the fund, function and object for which the payment is made. Usually such payments are for transportation of pupils, teachers salaries, tuition, purchase of supplies or obligations to a CESA. The following illustrations are examples of payments to another Georgia LEA, CESA, or other governmental entity and the accounts to be utilized by both the paying and the receiving agencies.

JULY 1. 1984, ISSUE

PAGE 126-7

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART III

INTERFUND TRANSFERS, REFUNDS, TRANSACTIONS BETWEEN LEAs AND OTHER GOVERNMENTAL UNITS, AND FUNDS RETURNED TO THE GEORGIA DEPARTMENT OF EDUCATION (CONTINUED)

PURPOSE OF PAYMENT

PAYING LEA OR CESA CHARGES

RECEIVING LEA OR CESA CREDITS

Pupil Transportation
CESA Support (i.e. CESA membership fee)

xx-2900-592, Services
Purchased from another LEA or CESA within Georgia

xx-1950, Services Provided other LEAs or Governmental Units

xx-2900-592 (Regular LEA) xx-1950 (CESA) NOTE: Georgia Financial Accounting Handbook, Chapter 6, provides
different objects; i. e. 592 for services purchased
from another LEA within the. state and 594 for services .
purchased from a CESA. If these separate objects
are used in the ledger, they should be combined
into xx-2900-592 for the DE Form 0046.

Share of cost of an inservice workshop financed
by another LEA or CESA

xx-2200-B90, Other Instructional Staff
Expenditures

xx-1950

Purchased Instructional Supplies

xX-l000-610, Instructional . xx-5995, Other Sources Supplies

Purchased Custodial Supplies xx-2600-610, Custodial and xx-5995 Maintenance Supplies

Teaching Pupils

xx-1000-561, Tuition to Other Georgia LEAs.

xx-1310, Tuition From Other Georgia LEAs.

Purchased light bulbs from the county commission

xx-2600-610, Custodial and Not applicable Maintenance Supplies

JULY 1, 19B4, ISSUE

PAGE 126-8

GEORGIA fINANCIAL ACCOUNTING HANDBOOK
PART III

INTERFUND TRANSFERS, REFUNDS, TRANSACTIONS BETWEEN LEAs AND OTHER GOVERNMENTAL UNITS, AND FUNDS RETURNED TO THE GEORGIA DEPARTMENT OF EDUCATION (CONTINUED)

PURPOSE OF PAYMENT

PAYING LEA OR CESA CHARGES

RECEIVING LEA OR CESA CREDITS

Paid the county rent on a county owned truck because its maintenance truck was temporarily out of service
Purchased equipment for use in the maintenance department from the Surplus Property Section of Georgia Department of Administrative Services
Reimbursement for teacher's salary (Migrant) and/or travel
Reimbursement for substitute teachers (inservice workshop)
CESA purchased material for resale
LEA purchased material for resale

xx-2690-890, Other M& 0 of Plant Expenditures

Not applicable

xx-2600-130, Maintenance Equipment

Not applicable

xx-1000-890

xx-1950

xx-1000-890

xX-1950

xX-5500-890, Cost of Sales Not applicable xx-5500-890, Cost of Sales. Not applicable

JULY 1, 1984, ISSUE

PAGE 126-9

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART III

INTERFUND TRANSFERS, REFUNDS, TRANSACTIONS BETWEEN LEAs AND OTHER GOVERNMENTAL UNITS, AND FUNDS RETURNED TO THE GEORGIA DEPARTMENT OF EDUCATION (CONTINUED)

REFUNDS MADE:

Occasionally an LEA will need to refund money that it had previously credited to a revenue account. The entry to record such payment will depend upon whether
the revenue account to which the funds were credited has been closed into Fund Equity or not. If the revenue account has not been closed, debit the revenue
account and credit cash. If the revenue account has been closed into Fund Equity when the refund is made there will have to be an adjustment to the Fund Equity
because it was overstated. Consideration should be given to revenue accounts that might have refunds to be paid BEFORE closing so as to avoid needless adjustments
to Fund Equity. The entries to record sample refunds are as follows:

assuming the appropriate revenue account has not been closed:

Purpose of Refund:

Rent

Debit 01-1910 Rentals; Credit 01-101, Cash Balances

Tuition

Debit 01-1320, Other Tuition; Credit 01-101, Cash Balances

Lost Book
Found

Debit 21-1940, Lost & Damaged Textbooks And Library Books;
Credit 21-101, Cash Balances

assuming the appropriate revenue account has been closed:

Rent
Tuition
Lost Book Found

Debit 01-799, Unreserved Fund Balance; Credit 01-101, Cash Balances Debit 01-799, Unreserved Fund Balance; Credit 01-101, Cash Balances Debit 21-799, Unreserved Fund Balance; Credit 21-101, Cash Balances

JULY 1, 1984, ISSUE

PAGE 126-10

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART I II

INTERFUND TRANSFERS, REFUNDS, TRANSACTIONS BETWEEN LEAs AND OTHER GOVERNMENTAL UNITS, AND FUNDS RETURNED TO THE GEORGIA DEPARTMENT OF EDUCATION (CONTINUED)
These changes in Fund Equity will be reported in column 3. page 2 of DE Form 0046 for the year during which the refunds were made for 01 (General Fund) and 21 (Instructional Media Fund) separately.
NON-REVENUE RECEIPTS
Sometimes an LEA will receive funds which it must transmit to another LEA. CESA. other governmental unit or a private agency that are not revenue to the receiving LEA. Normally. these funds will be included in a check that also includes revenue to the LEA. Accordingly. the entire check must be received and deposited and the LEA must issue its check to another agency. Crediting the entire check to a revenue account overstates that revenue to the LEA. Accordingly. when the LEA issues its check to the intended agency. it should charge (debit) the revenue account that was temporarily overstated. Due to certain accounting restraints at the state level. the APEG check for an LEA may include an amount that must be transmitted to another entity. Following are several examples of this kind of transaction indicating accounts to be used. The important thing to remember is to charge (debit) the overstated revenue account when checks are issued to the agency for which the funds are intended. Do not charge the check transmittilng the funds to an expenditure account.

JULY 1. 1984. ISSUE

PAGE 126-11

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART III

INTERFUND TRANSFERS, REFUNDS, TRANSACTIONS BETWEEN LEAs AND OTHER GOVERNMENTAL UNITS, AND FUNDS RETURNED TO THE GEORGIA DEPARTMENT OF EDUCATION (CONTINUED)

TRANSACTION

ACCOUNTING

DEBIT CREDIT

An LEA receives an APEG check for:

01-101, Cash Balances $ 96,500

Supt1s Salary &Supplement $ 1,500 01-3100, APEG Grants

Other APEG items

100,000

01-3200, Supt1s. Salary

For transmittal to Central

State Hospital

5,000

Required Local Effort

10,000 CR .

Net amount of check

$ 96,500

$ 95,000 1,500

The LEA issues its check to Central State Hospital for $ 5,000

01-3100, APEG Grants $ 5,000

01-101, Cash Balances

$ 5,000

An LEA receives an APEG check for:

01-101, Cash Balances $ 47,600

Supt1s Salary & supplement $ 1,600 01-3100, APEG Grants

Other APEG items

50,000

01-3200, Supt's. Salary

For transmittal to a private day

care center

1,000

Required Local Effort

5,000 CR

Net amount of check

$ 47,600

$ 46,000 1,600

The LEA issues its check to the

01-3100, APEG Grants $ 1,000

private day care center for $1,000 01-101, Cash Balances

$ 1,000

An LEA receives an APEG check for:

01-101, Cash Balance $ 72,600

Supt1s Salary &Supplement $ 1,600 01-3100, APEG Grants

Other APEG items including

01-3200, Supts. Salary

$1,800 salary, M& 0 and Leave

for a Section 05 teacher to be

paid to another agency--public

or private

75,000

Required Local Effort

4,000 CR .

Net amount of check

$72,600

$ 71,000 1,600

LEA issues check to the other agency for above Section 05 funds

01-3100, APEG Grants $ 1,800

01-101, Cash Balances

$ 1,800

JULY 1, 1984, ISSUE

PAGE 126-12

GEORGIA FINANCIAL ACCOUNTING HANDBOOK
PART III

INTERFUND TRANSFERS, REFUNDS, TRANSACTIONS BETWEEN LEAs AND OTHER GOVERNMENTAL UNITS, AND FUNDS RETURNED TO THE GEORGIA DEPARTMENT OF EDUCATION (CONTINUED)

TRANSACTION

ACCOUNTING

DEBIT CREDIT

An LEA receives an APEG check for:

Supt1s Salary &Supplement $ 1.600

Other APEG items including

$15.000 salaries. supplements.

M&0, leave for an SED (Or GLRS)

for which it is not the

Fiscal Agent

145,000

Required Local Effort

10.000 CR

Net amount of check

$136,600

01-101, Cash Balance $136,600

01-3100. APEG Grants

$135,000

01-3200, Supt1s. Salary

1,600

Since the LEA is Not Fiscal Agent for the SED (or GLRS) entitled to the $15,000, it issues its check to the Fiscal Agent

01-3100, APEG Grants $ 15,000

01-101. Cash Balances

$ 15,000

If the receiving LEA was the Fiscal
Agent of the SED (or GLRS), when it received the $136,000 check the entry
would be to divide the revenue between the separate funds upon receipt.

01-101. Cash Balances $121,600

26 (or 27)-101, Cash

Balances 15,000

01-3100 APEG Grants

$120,000

01-3200 Supt's Salary & supplement 1,600

26 (or 27)- 3100 APEG Grants

15,000

Occasionally an LEA, CESA or AVTS may need to return funds to the Georgia Department of Education. In these cases there is no applicable function or object because nothing is being obtained by the disbursement. The usual case is that the
grant amount from the state was larger than it should have been. The appropriate accounting procedure is to reduce the grant amount. If the account for the revenue
amount received in excess has not been closed into Fund Equity when the refund is made, the LEA would debit the revenue account containing the excess amount and credit cash. If the account containing the excess revenue has already been closed
into the Fund Equity at the end of a previous fiscal year when the check for the return amount is issued, the LEA would debit the Fund Equity account. This debit to fund equity would be reported as an adjustment to Fund Equity on the Statement of Changes in Fund Equity - All Funds (DE Form 0046 Page 2) as of the end of the fiscal year because that statement must also reflect the beginning Fund Equity before plus or minus adjustments are made.

JULY 1. 1984, ISSUE

PAGE 126-13

GEORGIA FINANCIAL ACCOUNTING HANDBOOK
PAR1 III

INTERFUND TRANSFERS, REFUNDS, TRANSACTIONS BETWEEN LEAs AND OTHER GOVERNMENTAL UNITS, AND FUNDS RETURNED TO THE GEORGIA DEPARTMENT OF EDUCATION (CONTINUED)

Illustration of entries required to record refunds to the Georgia Department of

Education of grant funds previously recorded in revenue accounts which have not

been closed into Fund Equity at the time the refund is made.

---

On June 25, LEA returns to the Georgia Department of Education $3,000 in aide grants which it was not able to utilize in the fiscal year. The funds were credited to account 01-3100, APEG Grants when received.

Debit 01-3100, APEG Grants Credit 01-101, Cash Balances

$3,000

$3,000

On June 25 an LEA returns to the Georgia Department of Education $2,000 of ECIA Chapter 1 funds for a program that was funded and completed within the fiscal
year. The funds were credited to account 01-3500, APEG Grants when received.

Debit account 28-3500, ECIA Credit account 28-101, Cash Balances

$2,000

$2,000

The above revenue accounts were reduced for the refunds before they were closed so the reduced (correct) balances in these revenue accounts would be closed into Fund Equity on June 30.

If the above refunds to the Georgia Department of Education had been made after the respective revenue accounts had been closed into Fund Equity the refunds would have
to be recorded as deductions from the overstated Fund Equity. In that case these
refunds would be recorded as follows:

Debit Account 01-799, Unreserved Fund Balance Credit Account 01-101, Cash Balances
and Debit Account 28-199, Unreserved Fund Balance Credit Account 28-101, Cash Balances

$3,000 $2,000

$3,000 $2,000

These debits to Fund Balance would be reported in column 3 page 2 of DE Form 0046 as decreases in Beginning Fund Equity ($3,000) for Fund 01 (General Fund) and ($2,000) for Fund 28 (ECIA Chapter 1 Fund).

JULY 1, 1984, ISSUE

PAGE 126-14

GEORGIA fINANCIAL ACCOUNTING HANDBOOK PART I II

CHAPTER 128
TRANSITION FROM FY 85 TO FY 86
MODIFIED ACCRUAL SYSTEM
Prior to FY 84 Georgia local school systems kept their financial records and made their reports to the Georgia Department of Education under the cash basis of accounting under which basis receipts were recorded when cash was received and disbursements were recorded when cash was paid out. In FY 84 (7/1/83 6/30/84) local school systems began a transition to the modified accrual basis of accounting under which revenues were recorded when they are measurable and available and expenditures are recorded when the liability is incurred.
In FY 85. local school systems were required to accrue revenues and expenditures at June 30 to reflect revenues earned but not received and expenditures incurred but not paid. This included the recording of accounts receivable and accounts payable for these revenues and expenditures.
In FY 86 the transition toward modified accrual accounting will be taken one step further. Accruals will be required whenever invoices are received for goods and/or contracted services already provided. Payroll items will not be accrued unless the amounts will show up on federal and state completion reports to be furnished to the Georgia Department of Education.
Advantages of this monthly accrual practice include accounting measurements based on the substance of transactions and events. rather than merely recording when cash is received and/or disbursed. It will also present a more accurate picture of the school system's financial pos1t1on and their results of operat1on at the end of each month.
Another reason for accruing monthly revenues and expenditures is for maintaining greater control over outstanding obligations which could help prevent possible deficit situations from occurring.
DE FORM 0046 BUDGET AND FINANCIAL REPORT FOR FY 1986
1. There will be no changes to the DE Form 0046 format. other than fiscal year. for FY 1986.
2. Employee Benefits - Employer Costs
Systems are encouraged to continue reporting the employer costs of employee benefits as they have 1n the past or currently. Systems are not ~ required to report this expenditure by function (1e. Instruction. etc.). It was optional 1n FY 85 whether or not employee benefits were budgeted and reported in series 6000-000 or by var10us functions and objects. The opt1on is still built into the FY 86 DE FORM 0046.

APRIL 25. 1985. REVISION JANUARY 30. 1985. ISSUE

PAGE 128-1

GEORGIA FINANCIAL
ACCOUNTING HANDBOOK PART III

TRANSITION FROM FY 85 TO FY 86 (CONTINUED)
ENCUMBRANCE ACCOUNTING
Encumbrance accounting, whereby funds are reserved at the time a purchase order or contract is issued, is not required in FY 86. Some local school systems are already uti11zing encumbrance accounting and are encouraged to cont1nue encumbrance accounting in FY 86. Encumbrance account1ng may be requ1red in the future but that requirement and some other requ1rements necessary to conform to generally accepted accounting principles (GAAP) will be phased in dur1ng years subsequent to FY 86.
MONTHLY CLOSING FY 1986
Revenues should be recorded in the month in which they f1rst become available and measurable. In many cases, revenues will not be available and measurable until they are actually received; in which cases no entries will be made until the cash is rece1ved and deposited in the bank. Other revenue items can be measured with an acceptable degree of accuracy. No accruals should be made for State and federal funds to be received in subsequent periods.
Expenditures should be accrued during the month, as soon as the 1iabi11t1es are 1ncurred, and the amount is known. As a minimum, accruals should be made at the end of each month for all transactions where the goods or services have been received and the invoice or statement is on hand, but was not pa1d during the month. These accruals should be recorded on the Combined Journal (DE Form 0461) and in the General Ledger, so that monthly year-to-date financ1a1 reports on the modif1ed accrual basis can be made directly from the Ledger.
It is important to note that differences in accruals and payments or receipts during a fiscal year will necessitate an adjustment to expenditures or revenues (not fund equity). The only time Fund Equity should be adjusted 1s when you are adjusting prior year payab1es or rece1vable because of differences when inv01ces are paid or when rece1pts are entered to clear June 30 Account Payable or June 30 Accounts Receivable.
To accomp11sh monthly accruals. a revised combined journal have been developed. The use of these forms 1s discussed in other chapters of th1s Handbook.
These accounting documents can fac1litate mod1fied accrual accounting by prov1ding information to use for post1ng by summary totals and to support in deta11 the general ledger accounts. There are optional controls which can be implemented to accurately account for invoices.

APRIL 25. 1985. REVISION JANUARY 30. 1985. ISSUE

PAGE 128-2

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART II I

TRANSITION FROM FY 85 TO FY 86 (CONTINUED)
YEAR-END CLOSING FY 86
In the year-end c10s'ng process, the total of the revenue accounts and the total of the expend'ture accounts should be closed to the Fund Equ'ty account (799) 'n the General Ledger. Th's year-end clos'ng process's essent'a11y the same as was descr'bed and 'llustrated 'n Chapter 100 of th's handbook.

MARCH 18, 1985, REVISION JANUARY 30, 1985, ISSUE

PAGE 128-3

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART III

CHAPTER 129
TRANSITION FROM FY 1986 (APEG) TO FY 1987 (QBE)
The method for fund1ng educat10n 1n Georg1a dur1ng FY 1986 was the APEG law. However, start1ng July 1, 1986 (FY 1987), the "Qual1ty Bas1c Educat10n Act" (QBE) becomes law for educat10na1 fund1ng. Th1s chapter w111 br1efly expla1n the necessary account1ng and report1ng procedures requ1red to convert to QBE. Chapters 3A, 76, 91A, and 130 of the GEORGIA FINANCIAL ACCOUNTING HANDBOOK prov1de more 1nstruct10ns on account1ng for QBE programs. For 1nformat10n regard1ng other aspects of the QBE Act, such as fund1ng we1ghts, the number of QBE Programs, and other pert1nent changes, a copy of Georg1a's QBE Act can be obta1ned from the Pub11c Informat10n and Pub11cat10ns D1v1s10n of the Department of Educat10n.
ACCOUNTING PROCEDURES UNCHANGED
Mod1f1ed Accrual Account1ng
All school systems, Reg10nal Educat10n Serv1ce Agenc1es (RESAs), and Post Secondary Vocat10nal Techn1cal Schools under local school system adm1n1strat10n w111 cont1nue to ma1nta1n the1r f1nanc1al records on the mod1f1ed accrual account1ng system on a year-end as well as on a monthly bas1s. Reference should be made to Chapters 7, 80, 90, and 128 (monthly clos1ng FY 86) of the GEORGIA FINANCIAL ACCOUNTING HANDBOOK for 1mplement1ng the mod1f1ed accrual method of account1ng.
Encumbrance Account1ng
Th1s method of account1ng whereby funds are reserved at the t1me a purchase order 1s 1ssued 1s not requ1red. However, local school systems and other un1ts of adm1n1strat10n wh1ch have 1mplemented encumbrance account1ng should cont1nue th1s pract1ce. Encumbrance account1ng may be requ1red subsequent to FY 1987.
NEW QBE ACCOUNTING REQUIREMENTS AND PROCEDURES
The QBE law prov1des funds for educat10n by several d1fferent programs as def1ned 1n the law. The law states that each local school system must prov1de and use a local fa1r share. Th1s local fa1r share may be app11ed by the system to any program where local match1ng 1s requ1red. Funds 1ncluded 1n the payment 11st1ng sent w1th the monthly check for QBE grants w111 show a comb1nat10n of state and local funds for each program and total local fa1r share.

JULY 1, 1986

PAGE 129-1

GEORGIA FINANCIAL
ACCOUNTING HANDBOOK PART III

TRANSITION FROM FY 1986 (APEG) TO FY 1987 (QBE) (CONTINUED)
NEW QBE ACCOUNTING REQUIREMENTS AND PROCEDURES (CONTINUED)
The use of a contra account (number 3140) for record1ng the State revenue of these funds 1s needed; that 1s, the revenue recorded for a part1cu1ar program w111 1nc1ude both state and local funds w1th the local funds deducted 1n an offset account 1n total. The total of all entr1es to revenue and the offset entry of the contra account w111 equal the net amount 1nd1cated by the QBE monthly allotment check from the state.
RECORDING OF CHECK FROM GEORGIA DEPARTMENT OF EDUCATION Sample entry: A sample entry to record a few of the QBE Program Revenues w111 be as follows:

Account Number

Account/Program

DR

CR

100-0000-0101-000

Cash (Bank Balance)

XXX

100-4010-3140-000

Contra Account (Local Effort)

XXX

100-4090-0199-000

Prepa1d Teacher Ret1rement

XXX

100-1011-3120-000

K1ndergarten

XXX

100-1021-3120-000

Grades 1-3

XXX

100-1031-3120-000

Grades 4-8

XXX

100-1041-3120-000

Grades 9-12

XXX

100-1111-3120-000

Secondary General Lab

XXX

100-2011-3120-000

Spec1a1 Educat10n

XXX

100-2111-3120-000

GHted

XXX

100-2211-3120-000

Remed1a1

XXX

100-3011-3120-000

Secondary Vocat1ona1 Lab

XXX

100-1210-3120-000

Staff Development

XXX

100-1310-3120-000

Med1a Centers

XXX

100-0000-3120-000

Other QBE Grants

XXX

Note: Revenue for other QBE Grants (for example, Ind1rect Cost, Pup1l Transportat1on) would be posted to account number 100-0000-3120-000.

JULY1,1986

PAGE 129-2

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART II I

TRANSITION FROM FY 1986 (APEG) TO FY 1987 (OBE) (CONTINUED)
PRORATION OF OBE EXPENDITURES
EMPLOYEE SALARIES
In 1mp1ement1ng QBE program account1ng requ1rements, 1t w1ll be necessary to prorate sa1ar1es of personnel charged to the Funct10n Instruct10n. Examples of such personnel would be teachers, teacher a1des, and paraprofessionals. Local un1ts of adm1n1strat10n w1ll need to code and class1fy salary expense properly to the d1fferent programs and funds. The salar1es for July and August for personnel charged to the Funct10n, Instruct10n on 190-day contracts should be prorated as they were 1n June. Salar1es of 1nstruct1onal personnel on extended day and extended year contracts should be charged ent1rely to the extended day or extended year program for wh1ch the personnel are work1ng. Regard1ng subst1tute teachers, local systems may prorate the salar1es 1f they w1sh. However, there 1s no requ1rement for the prorat10n of a subst1tute ' s salary. See Chapters 130 for deta1led 1nstruct10ns.
EMPLOYEE BENEFITS
Along w1th salar1es, the employee benef1ts (employer cost) such as soc1al secur1ty match1ng, teacher ret1rement match1ng, group health 1nsurance, etc. must be accounted for by program and funct10n. A prov1s10n was made 1n the Chart of Accounts and on the DE Form 0046 for allocating employee benefits by funct10n as an opt1on beginning 1n FY 1985. Starting 1n FY 1987, all local school systems must record employee benef1ts by program and function. Those local systems already us1ng th1s opt1on and report1ng employee benef1ts by funct10n w1ll only need to expand their present account1ng system to prov1de for the allocat1on of employee benef1ts by program. See Chapter 130 for deta1led 1nstructions.
MONITORING OF THE BASIC OBE PROGRAMS
Each QBE program requ1rement 1s a comb1nat10n of state and local funds. Mon1toring of the requ1rement w1l1 be performed by the F1nanc;al Review Section of the Georgia Department of Educat10n as well as by the Department of Aud1ts.
1. A minimum of 90% of the program earn1ngs for the Kindergarten, 1-3, 4-8, 9-12, Secondary General Laboratory, Staff Development, Media Center, Remed1al Educat10n Programs, and Vocat10nal Laboratory Programs, must be expended in the programs where earned. Profess1onal Development is not funded for FY 87.
2. 100% of the total earnings for the Spec1al Educat10n Programs and 100% of the earnings for the G1fted Program must be expended 1n the programs where earned.

MAY 7, 1986

PAGE 129-3

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART III

TRANSITION FROM FY 1986 (APEG) TO FY 1987 (QBE) (CONTINUED)
3. 100% of the 90% Hold Harmless earnings must be expended in the Special Education (Regular) and the Special Education (Gifted) Programs.
In order to monitor the Fiscal Year program expenditure requirement, it will be necessary to report program expenditures in detail on the General Fund Basic Program Expenditure Detail (DE Form 0420) (See Exhibit 3). The summary of allotment and expenditures for each of these programs will be reported on General Fund QBE Basic Program Summary (DE Form 0420).
MONITORING OF THE BASIC QBE PROGRAMS (CONTINUED)
The reporting of the Basic QBE Programs on the DE Form 0420 will be required in addition to the DE Form 0046 (Annual Financial Report) at the end of the fiscal year. If expenditure shortages exist, the State Board will increase the local fair share for the next fiscal year by the difference between the actual amount expended and obligated and the required expenditure amount for each program.
Examples of the DE Form 0420 are shown on the following pages.

MAY 7, 1986

PAGE 129-4

GEORGIA FINANCIAL ACCOUN1"ING HANDBOOK PART III

lRANSITION FROM FY 198b (APEG) TO FY 1981 (aBE) (CONTINUED)
(EXHIBIT 1)
GENERAL FUND QBE PROGRAM EXPENDITURE DETAIL
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _B.OARD OF EDUCATION
1 1 FY 87 BUDGET _/_1 FY 87 FINANCIAL REPORT
INSTRUCTIONS THESE EXPENDITURES FOR 15 QBE PROGRAMS WILL NOT AGREE WITH THE EXPENDITURES ON THE DE FORM 0046 INASMUCH AS THE DE FORM 0046 REPORTS ALL EXPENDITURES AND THIS DOCUMENT REPORTS ONLY THOSE PROGRAM EXPENDITURES SUBJECT TO THE 90\ TEST OR THE 100\ TEST REQUIRED BY QBE.

GEORGIA DEPARTMENT OF EDUCATION DE FORM 0420. APRIL. 1986. ISSUE

MAY 7, 1986

PAGE 129-5

PAGE 1 of 17
GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART III

~
-..J

I-'

\0

00 0\

GENERAL FUND QBE PROGRAM EXPENDITURE SUMMARY

-I :::0 ]>

BOARD OF EDUCATION

2
V....I.

I I FY 81 BUOOIlT

PROGRAM
DESCRIPTION COL. 1
SPIlCIAL I!DUCATION

ALLOTIll!NT5

PROGRAM/

SOURCE

I\IlOUNT

COL. 2

2000-

RROlJ IRIlD
PRRCIlNT COL. 3

"INIPIU" RRnlJIRIlD
~T
COL. 4

I I FY 81 FINANCIAL REPORT

t:I:]

DIFFERENCE

><
:I:

OVER

t-'

EXPIlND ITURES

(UNDER)

c:l

PROGRAM FUNCTION/
XXXXXXXXXXX

NlOUNT
COL. 5

COL. 5 "INUS COL. 4

H t-3

lUlOUNT
COL. 6

--IV

.-...I.
0 2
-"
:::0 0 3:
""Tl
-<

(HOLD HAIlIfLESS)

3120

100\

XXXXXXXXXXX

0.00 (

)

-'

2021

ID

1000

CaO-

SPIlCIAL BDUCATION

2010-

THROUGH 2051-

......

(RIlGU~ PROGllMlS I

3120

100\

1000

"'C ]>

SPECIAL BDUCATION

2110-

2111-

Ci)

(GIP'rl!lJ)

3120

100\

1000

I'T1

XXXXXXXXXXXXXXXXXXXX XXXXXXXXXXX xxxxxxxxxxxxxxxxxxx XXXXXXXX xxxxxxxxxxxxxxxxxxx xxxxxxxxxxx xxxxxxxxxxxxxxxxxxx XXXXXXXXXXXXXXXXXXX

SPHeIAL BDUCATION XXXXXXXXXXX

xxxxxxxxxxx

N ID

(TOTAL)

XXXXXXXXXXX

100\

XXXXXXXXXXX

XXXXXXXXXXXXXXXXXXXX xxxxxxxxxxx XXXXXXXXXXXXXXXXXXX xxxxxxxx xxxxxxxxxxxxxxxxxxx XXXXXXXXXXX xxxxxxxxxxxxxxxxxxx XXXXXXXXXXXXXXXXXXX

]> "'C
--rr:
Ci)
-I 0

aI -

KINDI!RGARTI!N

10113120

GRJ\DES 1-3

1021-

1011-

90\

1000

1021-

--<"
......

3120

90\

1000

ID

GRJ\DES 4-8

1031-

1031-

CO

GRJ\DES 9-12

3120 1041

90\

1000

1041-

-.l
......

SECONDARY GI!NRRAL LABORATORY STAFF DEVELOPIIIlNT

3120 1111 3120 12103120

90\

1000

1111-

90\

1000

1210-

90\

2210

0
--c:o
I'T1
......

"'C]>cn

PROFESSIONAL DEVELOPIIIlNT

12203120

U20-

90\

2210

C"'l 0 2

]>C"'lf"'l'l :::OC"'lO

"EDIA CIlNTIlRS

1310 3120

1310-

90\

2220

.-..I..

-10:::0 c:cn
..... 2 .....

RI!l!EDIAL IlDUCATION

2211 3120

2211-

90\

1000

2 c:
I'T1

.......... -....!..]>

VOCATIONAL LABORATORY

3011 3120

3011-

90\

1000

0

2 ""Tl

Ci) ......
2

GEORGIA DEPARTIIIlNT OF IlDUCATION

::J:]>

DE FO~ 0420. APRIL. 1986

PAGE 2 OF 11

]>2
2n

0 ......

0']> OrO
""

TRANSITION FROM FY 1986 (APEG) TO FY 1987 (OBE) (CONTINUED)

(EXHIBIT 3)

GENERAL FUND aBE PROGRAM EXPENDITURE DETAIL _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ BOARD OF EDUCATION

_1 1 BUDGET FOR FY 87

1 1 FINANCIAL REPORT FOR FY 87

PROGRAM NAME: KI~ERGARTEN (CBE) (BASIC ONLY)

EXPENDITURE DESCRIPTION SALARIES (TEACHERS)

FUND-PROGRAM/TYPEFUNCTION-OBJECT
100-1011-1000-110

EXPENDITURE DOLLAR AMOUNTS

EXTENDED STAFF SALARIES

100-1011-1000-115

SALARIES (AIDES AND PARAPROFESSIONALS)

100-1011-1000-140

SALARIES (CLERICAL)

100-1011-1000-142

SALARIES (OTHER)

100-1011-1000-190

EMPLOYEE BENEFITS

100-1011-1000-200

PURCHASED PROFESSIONAL AND TECHNICAL SERVICES

100-1011-1000-300

RENTAL OF EQUIPMENT & VEHICLES

100-1011-1000-442

RENTAL OF COMPUTER EQUIPMENT

100-1011-1000-443

OTHER PURCHASED PROPERTY SERVICES

100-1011-1000-490

COMMUNICATION

100-1011-1000-530

TUITION TO OTHER GEORGIA LEAS

100-1011-1000-561

OTHER TUITION

100-1011-1000-569

TRAVEL

100-1011-1000-580

OTHER PURCHASED SERVICES

100-1011-1000-590

BOOKS. PERIODICALS. AND SUPPLIES

100-1011-1000-610

TEXTBOOKS

100-1011-1000-641

PURCHASE OF EQUIPMENT

100-1011-1000-730

PURCHASE OF COMPUTERS AND SOFTWARE

100-1011-1000-734

OTHER INSTRUCTIONAL EXPENDITURES

100-1011-1000-890

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

TOTAL (KINDERGARTEN QBE BASIC EXPENDITURES)

xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxxxxxxxxxxxxxxxxxxxxxxxxx

GEORGIA DEPARTMENT OF EDUCATION DE FORM 0420. APRIL. 1986. ISSUE

PAGE 3 OF 17

MAY 7, 1986

PAGE 129-7

GEORGIA FINANCIAL ACCOUNliNG HANDBOOK PART II I

TRANSITION FROM FY 1986 (APEG) TO FY 1987 (OBE) (CONTINUED)
ANNUAL FINANCIAL REPORT/BUDGET (Dl FORM 0046)
The format of th1s report1ng document w1ll be essent1a'Ily the same as in the past except that all fund (column) headings w11l be identif1ed in FY 1987. The deadline for subm1tt1ng both the Financial Report and Budget documents to the Georg1a Department of Educat10n w1ll still be July 25th. In FY 1987, the Financial Report will include a balance sheet sect10n; however, a balance sheet will not be part of the Budget document. Changes to the DE Form 0046 report include support1ng schedules DE Form 0420 by program as previously mentioned in this chapter.

RECORDING OF FEDlRAL FUNDS

Start1ng FY 1987, the federal funds flow1ng through the Georgia
Department of Educat10n to the local school systems w1ll be des1gnated separately from the state revenue on the voucher from the state.

Sample entr1es: The FY 87 entry recording lSIA Chapter 1 funds flowing through the state w1ll be as follows:

Account Number

Account/Program

DR

CR

470-0101 470-4850

Cash (Bank Balance) ECIA Chapter I

XXX XXX

The entry for recording General Fund Grants that 1nclude both state and federal revenue will be as follows:

Account Number

Account/Program

DR

CR

600-0101 600-3800
600-4850

Cash (Bank Balance)

XXX

School Food & Nutr1tion

(State Funds)

XXX

School Food & Nutr1t10n

(Federal Funds)

XXX

In the above entry, state and federal funds would be designated separately on the state payment voucher. As noted in Chapter 3A, the revenue account number 4850 denotes Federal Grants through the Georgia Department of Education and account number 3800 denotes other grants from the Georg1a Department of Education (state funds only).

MAY 7, 1986

PAGE 129-8

GEORGIA FINANCIAL ACCOUN1'ING HANDBOOK PART III

TRANSITION FROM FY 1986 (APEG) TO FY 1987 (OBE) (CON1INUED)

ANNUAL FINANCIAL REPORT/BUDGET (DE FORM 0046) (CONTINUED)

FY 87 "COST OF SALES" (ACCOUNTS 1950 AND 1960)

Other major changes to the DE Form 0046 1nclude the reclass1f1cat10n of
account t1tled "Cost of Sales" ut1l1zed pr1mar1ly by RESAs (former CESAs) 1n
the enterpr1se fund. On the FY 1986 report1ng document, "Cost of Sales" was
an expend1ture account number 5500-890 to record expend1tures of goods purchased for resale to other governmental ent1t1es, wh11e the local revenue generated from such sales was recorded 1n account number 1950 (Serv1ces Prov1ded other Local Educat10nal Agenc1es or Other Governmental Un1ts).

However, start1ng FY 1987 "Cost of Sales" 1s reclass1f1ed as account number 19&0 under local revenue. Th1s account w111 be ut111zed as a contra account to record the costs of goods sold (beg1nn1ng 1nventory plus purchases m1nus end1ng 1nventory) e1ther by RESAs or school systems. At the end of the account1ng per10d the sum of the calculat10n, "Cost of Goods Sold," w1ll be recorded as:

Account No. 19&0 0172

Descr1pt10n Cost of Goods Sold Inventory

Debit
xxx.xx

Credit
xxx.xx

Many computer1zed account1ng systems allow for perpetual 1nventory account1ng. Th1s type system would calculate the cost, reduce the 1nventory account, and record the net 1ncome from sales for each 1tem sold. The account 1960 "Cost of
Sales" would not be used; the gross prof1t from sales would be reflected 1n account 1950, "Serv1ces Prov1ded Other LEAs or Governmental Agenc1es." See Chapter 43 Enterpr1se Account1ng.

The revenue from the sale of goods and serv1ces prov1ded other LEAs other than for tu1t10n and transportat10n serv1ces w11l st111 be recorded 1n revenue
account number 1950.

OTHER CHANGES TO DE FORM 0046

In add1t10n to these changes, there w111 be an Adult Educat10n Fund (Fund 510) wh1ch was not on the DE Form 004& 1n FY 198& as a separate fund. Furthermore, Fund 40 (All Other K-12) appear1ng on the FY 198& f1nanc1al/budget document w111 be deleted on the FY 1987 report1ng document
as a separate fund. The f1nanc1al act1v1ty for "All Other K-12" grants w1ll be 1ncluded w1th1n the General Fund (100) for FY 1987. It should be noted
that entr1es to the contra account (Account 3140/ QBE Contra Account) ma1nta1ned 1n the ledger w1l1 be recorded as deb1ts and reported 1n the revenue sect10n on the DE 0046 Form as a deb1t"( )."

MAY 7, 1986

PAGE. 129-9

GEORGIA FINANCIAL ACCOUN1ING HANDBOOK
PART III

TRANSITION fROM FY 1986 (APE-G) TO FY 1987 (OBE) (CONTINUED)
APEG SPECIAL REVENUE FUNDS
APEG Special Revenue funds will be maintained as in FY 1986 if there are fund balances remaining as of the end of FY 1986 (6/30/86). As of this date it is not known whether LEAs will be permitted to close the Leave Fund, Instructional Media fund, and Equipment Fund to the Fund Balance account at June 30, 1986. It is known, however, that the Bus Replacement fund will be maintained under OBE as it was under APEG. LEAs will be advised when a decision is made regarding the disposition of the other fund balances.
OBJECT CODES
There will be an increased number of Object Codes in FY 1987 in ~rder to classify expenditures more clearly. (See Chapters 76 and 3A). In FY 1981, one object code can be utilized for more than one function. For example, object code 130 (Purchase of Equipment) may be utilized in all functions. Object Code 810 (Dues and Fees) can be utilized in function 2500 (Support ServiceS-Business) as well as in Function 5100 (Debt Services).
FY 1981 CONVERSION TABLE
Please refer to the FY 1987 Conversion Table, reflecting changes only, on the following pages.

MAY 7, 1986

PAGE 129-10

GEORGIA FINANCIAL ACCOUNTING HANDBOOK
PART II I

TRANSITION FROM FY 1986 (APEG) TO FY 1987 (QBE) (CONTINUED)

FY 1987 CONVERSION TABLE (CHANGES ONLY)

FY 86 ACCOUNT NUMBER/DESCRIPTION

FY 87 ACCOUNT NUMBER

REVENUE ACCOUNTS

1130

REAL ESTATE TRANSFER TAX

1910

RENTALS

1940

LOST/DAMAGED TEXTBOOKS & LIBRARY BOOKS

3200

SUPT'S SALARY (A.P.E.G.)

3300

VOCATIONAL EDUCATION GRANT

3401

CHILO NUTRITION GRANT

3402

STAFF DEVELOPMENT

3403

PERFORMANCE BASED CERTIFICATION

3404

ADUU EDUCATION

3405

CAPITAL OUTLAY GRANTS

3406

TAX RELIEF

3499

OTHER GRANTS FROM GA DOE

3500

LC.LA.

3701

GA STATE FINANCING/INVESTMENT

3702

RAILWAY EQUIPMENT TAX

3799

OTHER FUND FROM OTHER STATE AGENCIES

3900

REVENUE FOR/ON BEHALF OF LEA

5400

INDIRECT COST REIMBURSEMENT

1190
1995 5300 3100
3120/3140 3500/4850
3120/3140 3120/3140
3800/4850 3120/3140
3700 3800/4850 4850 3995 3995
3995
3995
1990

EXPENDITURE ACCOUNTS

1000-150 1000-110 1000-190 1000-569 1000-640 2200-190
2200-190
2200-200
2200-580
2200-610 2200-640

SUBSTITUTE TEACHERS SALARIES - EXTENDED DAY AND/OR YEAR
CLERICAL
OTHER TUITION
TEXTBOOKS SALARIES-INSTRUCTION STAFF (IMPROVEMENT) SALARIES-INSTRUCTION STAFF (EO. MEDIA)
CLERICAL SALARIES (IMPROVEMENT) CLERICAL SALARIES (EO. MEDIA) EMPLOYEE BENEFITS (IMPROVEMENT) EMPLOYEE BENEFITS (EO. MEDIA) TRAVEL (IMPROVEMENT) TRAVEL (EO MEDIA)
LIBRARY/AUDIO VISUAL SUPPLIES LIBRARY BOOKS/PERIODICALS

1000-110 1000-115 "1000-142
1000-569 1000-641 2210-190 2220-190 2210-142 2220-142 2210-200 2220-200 2210-580 2220-580 2220-610 2220-610

NOTE: EXPENDITURES IN FUNCllON 2200 (SUPPORT SERVICE-INSTRUCTIONAL STAF F)
WILL BE DISTRIBUTED OVER FUNCTION 2210 (SUPPORT SERVICES-IMPROVEMEN1 OF INSTRUCTIONAL SERVICES) AND FUNCTION 2220 (SUPPORT SERVICES-EDUCATIONAL MEDIA SERVICES).

MAY 7, 1986

PAGE 129-11

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART I II

TRANSITION FROM FY 1986 (AP~LJO FY 1987 (QBE) (CONTINUED)

FY 1987 CONVERSION TABLE (CHANGES ONLY) (CONTINUED)

FY 86 ACCOUNT NUMBER/DESCRIPTION

FY 87 ACCOUNT NUMBER

EXPENDITURE ACCOUNTS (CONTINUED)

2200-730 2200-890
2300-190 2400-190 2500-520 2600-190 2620-410 2620-430 2600-440 2620-530 2620-620 2630-430 2640-430 2650-430 2690-890 2700-510 2700-520 2700-"130 2710-190 2"120-150 2720-190 2790-190 2790-190 2720-620 2740-190 2740-610 2740-650 2740-730 2790-200 2790-890 2800-190 2900-190 2900-190 2900-591 2900-592 2900-593 3100-190 3100-590

LIBRARY &AUDIO VISUAL EQUIPMENT OTHER EXPENDITURES (IMPROVEMENT) OTHER EXPENDITURES (ED MEDIA)
CLERICAL SALARIES CLERICAL SALARIES PROPERTY, LIABILITY, & FIDELITY BOND INSURANCE CLERICAL SALARIES WATER, SEWER, CLEANING SERVICE
BUILDING MAINTENANCE
BUILDING RENTAL
TELEPHONE NATURAL GAS, FUEL & ELECTRICITY GROUNDS MAINTENANCE EQUIPMENT MAINTENANCE VEHICLE MAINTENANCE ALL OTHER M&0 EXPENDITURES EXPENDITURES IN-LIEU OF TRANSPORTATION PUPIL TRANSPORTATION INSURANCE
PURCHASE/LEASE PURCHASE BUSES
SALARIES-SUPERVISOR SALARIES-SUBSTITUTE DRIVERS
SALARIES-DRIVERS SALARIES - OTHER SALARIES - CLERICAL
FUEL &LUBRICANTS
SALARIES-MECHANICS
SUPPLIES
PARTS OTHER EQUIPMENT
EMPLOYEE BENEFITS OTHER TRANSPORTATION EXPENDITURE
SALARIES-CLERICAL
SALARIES-OTHER SALARIES-CLERICAL MISC. SERVICES PURCHASED LOCALLY
SER. PUR FROM LEA/CESA WITHIN GA SER. PUR FROM LEA/CESA OUTSIDE GA SALARIES - CLERICAL COMMODITY HAULING

2220-730 2210-890 2220-890 2300-142 2400-142 2500-590 2600-142 2600-410 2600-430 2600-444 2600-530 2600-620 2600-410 2600-430 2600-430 2&00-890 2700-590 2700-590 2700-732 2700-190 2700-180 2700-180 2700-190 2700-142 2700-620
2700-190 2700-610 2700-430 2700-730 2"/00-200
2700-890 2800-142 2900-190 2900-142 2900-590 2900-590 2900-590 3100-142 3100-585

MAY 7, 1986

PAGE 129-12

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART II I

TRANSITION FROM FY 1986 (APEG) TO FY 1981 (QBE) (CONTINUED)

FY 1987 CONVERSION TABLE (CHANGES ONLY) (CONTINUED)

FY 86 ACCOUNT NUMBER/DESCRIPTION

FY 87 ~CCOUNT NUMBER

EXPENDITURE ACCOUNTS (CONTINUED)

3900-190 3900-190 4100-710 4300-300 4500-120 4500-730
4900-890 5100-910 5100-990 5200-930 5400-940 5500-890

SALARIES-OTHER SALARIES-CLERICAL LAND ACQUISITION/DEVELOPMENT ARCHITECTURE & ENGINEERING BUILDING ACQUISITION/CONSTRUCTION/IMPROVEMENT EQUIPMENT
OTHER EXPENDITURES REDEMPTION BOND PRINCIPAL OTHER COST OF DEBl SERVICE TRANSFERS TO OTHER FUNDS INDIRECT COST CHARGE COST OF SALES (DEBIT REVENUE)

3900-190 3900-142 4000-710
4000-300 4000-720
4000-"130
4000-890
5100-870
5100-810
5000-930 2300-880 1960

6000

DELETED - DIS-rRIBUTE BENEFITS TO EACH FUNCTION

ALL BALANCE SHEET ACCOUNT NUMBERS IN FY 1986 WILL ESSENTIALLY REMAIN
UNCHANGED IN FY 1987 EXCEPT FOR ADDING AN ADDITIONAL DIGIT (ZERO) PRECEDING THE FORMER THREE DIGIT NUMBER (SEE EXAMPLE BELOW).

FY 1986 EXAMPLE: 101 (CASH)

FY 1981 0101

ALL OTHER ACCOUNT NUMBERS FROM FY 1986 TO FY 1987 REMAIN UNCHANGED.

MAY 7, 1986

PAGE 129-13

GEORGIA FINANCIAL ACCOUNTING HANDBOOK
PART III

I
j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j

CHAPTER 130

QBE PROGRAM ACCOUNTING

PROGRAM

A program 1s a plan of act1v1t1es des1gned to accomp11sh a predeterm1ned
object1ve. The program d1mens1on prov1des the LEA the framework to c1ass1fy expend1tures by program for cost determ1nat1on purposes. The
program d1mens1on allows all d1rect program costs to be charged d1rectly to the benef1t1ng program. There are four broad program areas 1dent1f1ed
under the QBE.

PROGRAM CODES

(1) OOOX

UNDISTRIBUTED PROGRAMS (NON CATEGORICAL AND/OR LOCAL PROGRAMS): All charges wh1ch are not d1rectly ass1gned to a state def1ned program are class1f1ed here. For example, General Adm1n1strat1on expenses are not ass1gned to programs but are charged to program code 0000 such as an expend1ture for Commun1cat1on for the Super1ntendent ' s off1ce would be coded 100-0000-2300-530. The three zeros 1n the program f1eld 1nd1cate the expense was not d1str1buted to a program (000) and the last zero 1nd1cates the expense was unclass1f1ed (not QBE Bas1c or Enr1chment).

Federal grant expend1tures are 1dent1f1ed by project year d1g1ts 1n the Fund Code. The Chapter I Fund codes are
470-479, w1th the last d1g1t 1dent1fy1ng the project year. For example, the salary of a Chapter I K1ndergarten
teacher 1n FY 87 project would be coded 477-1010-1000-110. The program code "1010" 1nd1cates that the salary was for a K1ndergarten expense but was not d1str1buted to QBE. It 1s 1mportant that program and project account1ng be used
1n Federal programs.

(2) 100X

REGULAR PROGRAMS

(3) 200X

SPECIAL PROGRAMS

(4) 300X

VOCATIONAL PROGRAMS

JULY 3, 1986, ISSUE

PAGE 130-1

GEORGIA FINANCIAL ACCOUNTNG HANDBOOK PART III

aBE PROGRAM ACCOUNTING (CONTINUED)

EXPENDITURE TYPE CODES

The specific programs are identified by a three-digit program code plus a one digit expenditure type code. The fourth digit of the program/type field indicates the type of expenditure (Basic, Enrichment, Unclassified).

XXXQ

UNCLASSIFIED EXPENDI1URES (NOT aBE BASIC OR ENRICHMEN1):

Unclassified type expenditures are those that are not

General Fund aBE Basic Expenditures or General Fund

Enrichment Expenditures.

For example, parts purchased for bus repair would be charged to Student Transportation supplies and coded 100-1320-2700-610. The last "0" in the program/expenditure type field indicates an unclassified type expenditure (not
aBE Basic or Enrichment).

XXX1

aBE BASIC EXPENDITURES: Defined as expenditures dealing

-

with the interaction between students and teachers whereby

a uniformly sequenced core curriculum is provided for

grades kindergarten through 12 for those competencies

defined by the State Board of Education in Ga. Code Section

20-2-140 which a student is expected to or provided the

opportunity to master. Costs associated with these

programs are "basic expenditures" which are synonymous with

"direct instructional costs." Examples of Basic Programs

are those comprising the core curriculum. The last "1" in

a program/expenditure type field indicates "Basic aBE

expenditures."

XXXl

ENRICHMENT EXPENDITURES: Defined by the State Board

generally as programs which do not devote a major portion

of class time to the competencies adopted by the state

board under Ga. Code Section 20-2-140. Examples of

enrichment programs would be those outside the core

curriculum. The last "2" in a program/expenditure type

field indicates "Enrichment expenditures."

JULY 3, 1986, ISSUE

PAGE 130-2

GEORGIA FINANCIAL
ACCOUNTNG HANDBOOK PART III

QBE PROGRAM ACCOUNTING (CONTINUED)

The programs to be used 1n FY 87 are the fol1ow1ng:

NON CATEGORICAL (INCLUDING ENTIRELY LOCALLY FUNDED PROGRAMS)

0000

UNDISTRIBUTED PROGRAMS (APEG/NON CATEGORICAL ANO/OR LOCAL

PROGRAMS)

REGULAR PROGRAMS

101X

KINDERGARTEN (Code Sec. 20-2-182)

102X

GRADES 1-3 (Code Sec. 20-2-182)

103X

GRADES 4-8 (Code Sec. 20-2-182)

104X

GRADES 9-12 (Code Sec. 20-2-182)

111X

SECONDARY GENERAL LABORATORY (Code Sec. 20-2-182)

121X

STAFF DEVELOPMENT (Code Sec. 20-2-182 Part f)

122X

PROFESSIONAL DEVELOPMENT (Code Sec. 20-2-250/257)

131X

MEDIA CENTERS (FUNCTION 2220) (Code Sec. 20-2-167)

132X

PUPIL TRANSPOR1ATION (CODE SEC. 20-2-188)

133X

ISOLATED SCHOOLS (CODE SEC. 20-2-292)

134X

IN-SCHOOL SUSPENSION (CODE SEC. 20-2-155)

135X

LIMITED ENGLISH SPEAKING (CODE SEC. 20-2-156)

136X

SPECIAL INSTRUCTIONAL ASSISTANCE (CODE SEC. 20-2-153)

137X

CAREER LADDER AND OTHER INCENTIVE COMPENSATION

(CODE SEC. 20-2-213)

141X

INNOVATION (CODE SEC. 20-2-240)

142X

ELECTRONIC TECHNOLOGY PROGRAM (CODE SEC. 20-2-242)

143X

GOVERNOR1S EMERGENCY PROGRAM

145X

INDIRECT COST

147X

EQUALIZATION GRANT (CODE SEC. 20-2-165)

149X

SPARSITY GRANT (CODE SEC. 20-2-292)

151X

MIDDLE SCHOOL INCENTIVE GRAN1 (CODE SEC. 20-2-290)

152X/198X SPECIAL PROJECTS

JULY 2, 1986, ISSUE

PAGE 130-3

GEORGIA FINANCIAL ACCOUNTNG HANDBOOK PART III

QBE PROGRAM ACCOUNTING (CONTINUED)

SPECIAL EDUCATION PROGRAMS

200X

SPECIAL EDUCATION HOLD HARMLESS (REVENUES ONLY)

201X

SPECIAL QBE PROGRAMS (REVENUES ONLY)

202X

MILD RESOURCE (EXPENDITURES ONLY)

203X

MODERATE RESOURCE (EXPENDITURES ONLY)

204X

MODERATE SELF-CONTAINED (EXPENDI1URES ONLY)

205X

SEVERE SELf-CONTAINED (EXPENDITURES ONLY)

211X

GIFTED (FUNCTION 1000) (REVENUES AND/OR EXPENDITURES)

Please note that 100% of the funds earned for spec1al educat10n under the QBE formula or the hold harmless prov1s1on must be used exclus1vely for spec1al educat10n programs (A. resourced m1ldly hand1capped, B. resourced moderate, C. self-conta1ned moderate, D. self-conta1ned severe and E.
g1fted students).

221X

REMEDIAL EDUCATION (FUNCliON 1000)

231X

TUITION FOR HANDICAPPED CHILDREN (CODE SEC. 20-2-152)

241X

BUS REPLACEMENT

VOCATIONAL PROGRAMS

301X

SECONDARY VOCAlIONAL LABORATORY (FUNCTION 1000)

390X

OTHER SECONDARY VOCATIONAL

CONTRA PROGRAMS

401X

LOCAL FAIR SHARE (CURRENT YEAR) (CONTRA TO ACCOUNT 3120)

403X

LOCAL FAIR SHARE (ADJUSTMENT FOR AUDIT EXCEPTIONS)

(CONTRA TO ACCOUNT 3120)

405X

LOCAL FAIR SHARE (ADJUSTMENT FOR FAILURE TO PROVIDE AND USE

PERVIOUS FISCAL YEAR LOCAL FAIR SHARE) (CONTRA TO ACCOUNT 3120)

407X

LOCAL FAIR SHARE (ADJUSl~ENTS FOR FAILURE TO SPEND REQUIRED

AMOUNTS ON PREVIOUS YEAR PROGRAMS) (CONTRA TO ACCOUNT 3120)

409X

PREPAID TEACHER RETIREMENl (ASSET ACCOUNT 0199)

JULY 2, 1986, ISSUE

PAGE. 130-4

GEORGIA FINANCIAL ACCOUNTNG HANDBOOK PART III

OBE PROGRAM ACCOUNTING (CONTINUED)
SALARY PRORATIONS - OBE PROGRAMS
Local un,ts of adm'n1strat10n expend over two-th1rds of the1r operat1ng funds for personal serv1ce expenses. Consequently, the greatest emphas's should be on encod1ng and class1fy1ng salary expend1tures to the proper programs.
The salary of each employee chargeable to two or more programs should be prorated accord1ng to the percentage of t1me worked 1n each program area. No allowance 1s made for the beg1nn1ng homeroom per10d nor for breaks and lunch per10ds. Only the t1me actually spent 1n ass1gned act1v1t1es 1s used to prorate expenses. Ass1gned act1v1t1es assumes a s1x per10d workday. Each per10d 1s assumed to be 50 m1nutes.
A teacher's salary should be prorated to each program based on a fract10n wh1ch denotes the percentage of t1me worked 1n the program. The fract10n should take the follow1ng form:
Per'ods Worked 1n a Spec1f1c Program (Numerator) Total Per10ds Worked (Denom1nator)
The salary of a teacher w1th a plann1ng per10d free of ass1gned students w1ll be prorated between programs as 1f the plann1ng per10d d1d not ex1st. Plann1ng per10ds are cons1dered des1rable under the OBE and are an allowable expense of any of the programs. Log1cally, the teacher would use the plann1ng per'od to prepare for class 1n the same rat10 as the d1str1but10n of the1r t1me 1n the var10us programs. A plann1ng per10d w1ll reduce the numerator and the denom1nator of the fract10n by one per10d each.
The salary of a teacher w1th a study hall of ass1gned students should be prorated between programs cons1der1ng the study hall as a separate und1str1buted program. The study hall 1s not an a"llowable expend1ture of any of the QBE programs and therefore the salary must be absorbed by the local un1t of adm1n1strat10n and could not be charged to any QBE program. A study hall of ass1gned students w1ll reduce the per10ds chargeable to State and/or other programs but does not reduce the number of per10ds worked by the teacher. The salary of an employee respons1ble for a study hall should not be charged to one of the bas1c QBE programs.

JULY 2, 198&, ISSUE

PAGE 130-5

GEORGIA FINANCIAL
ACCOUNTNG HANDBOOK PART III

QBE PROGRAM ACCOUNTING (CONTINUED)
SALARY PRORATIONS QBE PROGRAMS (CONTINUED)
A substitute teacher should be charged to the QBE program or other program based on the major program to which the teacher being substituted for is charged. (When the major program is equally split between two programs, the local unit may charge the substitute salary to either of the major programs.) The LEA may prorate the salary of the substitute if it so desires. However, there is no requirement for the proration of a substitute's salary. There may be situations when a teacher substitutes for the same individual for an extended period and a proration is desirable by the LEAs, but this is entirely at the local unit's discretion.
The salary for July and August for teachers on 190-day contracts should be charged in the same proration to the various programs as they were charged in June.
INSTRUCTIONAL MATERIALS ALLOCATIONS QBE PROGRAMS
It is recognized that school systems are not structured in the same manner as are the QBE programs. A LEA may have an elementary school with Grades 1 through 5, yet QBE is structured with programs for Grades 1-3 and Grades 4-8. Most expenditures for instructional materials for the individual QBE programs can be identified specifically by the program for which they were purchased. These would include purchases for textbooks, and workbooks, etc. There are many other items that can not be specifically identified for one of the QBE programs. These includes purchases for paper, chalk, music books, and other items of an instructional nature which are not identifiable for a specific program. There is the need for an approved method of allocation for these costs among the individual QBE programs.
The acceptable method of allocating direct costs for instructional supplies and materials not directly charged to QBE programs is a prorata share of the total costs based on the FTE count served from each program where the denominator is the total FTE count for the state-approved programs and the numerator is the FTE count in each program.
It is acceptable for a LEA to develop a method of inventorying paper or similar supplies, and subsequently charge the cost of the supplies to the program based upon actual use.

JULY 2, 1986, ISSUE

PAGE 130-6

GEORGIA FINANCIAL
ACCOUNTNG HANDBOOK PART III

QBE PROGRAM ACCOUNTING (CONTINUED)
QBE ACCOUNTING
SAMPLE ILLUSTRATIONS - LEDGER ACCOUNTS
The ledger accounts 111ustrated for the QBE Bas1c Programs are examples of how these programs w111 appear 1n your revenue and expend1ture ledger. for the sake of brev1ty and s1mp11c1ty, the 111ustrat1ons 1n th1s chapter w111 be examples of ledger accounts w1th year-to-date totals only. It 1s understood that the year-to-date totals are an accumulat10n of da1ly and monthly transact1ons. for 1l1ustrat1on purposes, all of the object numbers that could be used are not ut1l1zed 1n anyone program. The selected programs for 1llustrat1on purposes are:
(1) 101 X KINDERGARTEN (2) 104X GRADES 9-12 (3) 200X SPECIAL EDUCATION HOLD HARMLESS (REVENUES ONLY) (4) 201X SPECIAL EDUCATION (REVENUES ONLY) (5) 202X SPECIAL EDUCATION-MILD RESOURCE (EXPENDITURES ONLY) (&) 203X SPECIAL EDUCATION-MODERATE RESOURCE (EXPENDITURES ONLY) (7) 204X SPECIAL EDUCATION-MODERATE SELf-CONTAINED (EXPENDITURES
ONLY) (8) 205X SPECIAL EDUCATION-SEVERE SELf-CONTAINED (EXPENDITURES ONLY) (9) 211X GIfTED (REVENUES AND/OR EXPENDITURES)

JULY 2, 198&, ISSUE

PAGE 130-7

GEORGIA fINANCIAL
ACCOUN1NG HANDBOOK PART I II

QBE PROGRAM ACCOUNTING (CONTINUED)
KINDERGARTEN - QBE BASIC PROGRAMS REVENUES AND EXPENDITURES

6/30

100-1011-3120-000
.Q,8! R!VENUE
I 190.000.00

100-1011-1000-110 SWlltllS-tpCHIltS 6130 70.000.00

,lOt. 100-1011-1000-140
SAL. AlDIS/PABA 6/30 30.000.00

100-1011-1000-200
,",LOY!! BINIPlTS 6130 33.000.00

100-1011-1000-300
PUI PIQf/tICJI sa
1/30 1. 000.00

100-1011-1000-580

mm..

6130

600.00

100-1011-1000-610
llOOlCS. PQIODIClU.S. SUPPL
6/30 10.000.00-

6130

100-1011-1000-641 tptlOQ!(J
3.000.00

100-1011-1000-730
IQU lPltPJlt
6130 2.000.00

6130

100-1011-1000-890
~
400.00

JULY 2, 198&, ISSUE

PAGE 130-8

GEORGIA FINANCIAL ACCOUNTNG HANDBOOK PARl II I

aBE PROGRAM ACCOUNTING (CONTINUED)
GRADES 9-12 aBE BASIC PROGRAM REVENUES AND EXPENDITURES

100-1041-3120-000

OIl RIVINUI

6/30

215.000.00

100-1041-1000-110
pwIp tpCHII!
6130 200.000.00

6130

100-1041-1000-140
SAL. AIRPIlW PaOf.
60.000.00

6/30

100-1041-1000-200
DlPLOXQ 'INVtts
39.000.00

100-1041-1000-580

6/30

DAVIL
9.000.00

100-1041-1000-190

6/30

9'rHII
1.000.00

JULY 2, 1986, ISSUE

PAGE 130-9

GEORGIA FINANCIAL ACCOUNTNG HANDBOOK PART II I

aBE PROGRAM ACCOUNTING (CONTINUED)
SPECIAL EDUCATION/GIFTED aBE BASIC PROGRAMS REVENUES

100-2001-3120-000

QBE REVENUE - HOLD HARMLESS

6/30

I 30.000.00

100-2011-3120-000

OBE REVENUE - SPEC ED

6/30

I 300.000.00

100-2111-3120-000

OBE REVENUE - GIFTED

6/30

I 40.000.00

EXPENDITURES - MILD RESOURCES

100-2021-1000-110 SALMIq-tIACHBRS
6130 44.000.00

100-2021-1000-140

100-2021-1000-200

S~LARIES-~IDlS/PAIA' PROP.

EMPLOYEE BENEFITS

6/30 15.000.00 I

6/30 14.000.00'

100-2021-1000-300

PUlCH!\SID PROF/TBCH. SQ.

6/30 3.000.00 I

6/30

100-2021-1000-580
~
1,000.00

100-2021-1000-610 BOQICS. PBRIODICALS, SUPPL. 6/30 3.000.00'

6130

100-2021-1000-641
DXDQOKS 1.000.00

100-2021-1000-130

8O!J IP!'!IN'l'

6/30

500.00

6/30

100-2021-1000-890
~
100.00

JULY 2, 1986, ISSUE

PAGE 130-10

GEORGIA FINANCIAL ACCOUNTNG HANDBOOK PART III

QBE PROGRAM ACCOUNTING (CONTINUED)
SPECIAL EDUCATION/GIFTED QBE BASIC PROGRAMS EXPENDITURES - MODERATE RESOURCES

100-2031-1000-110
SALAlII' IpcHDS 6/30 44.000.00

100-2031-1000-140 SAL.-AIDSS/PARft PIO' 6/'0 15.000.00

100-2031-1000-200 Pl'LOYII l_lITS
6/30 14.000.00

100-2031-1000-300

6130

PYa PROf/IIQI Spv. 500.00

JULY 2, 1986, ISSUE

PAGE 130-11

GEORGIA FINANCIAL
ACCOUNTNG HANDBOOK PART III

gBE PROGRAM ACCOUNTING (CONTINUED)
SPECIAL EDUCATION/GIFTED gBE BASIC PROGRAMS ~XPENDIIURES - MODERATE SELF-CONTAINED

100-2041-1000-110
SA~IES-T!ACK!RS
6130 30.000.00

100-2041-1000-140 SAL.-AIDES/PARA PROP. 6/30 29.000.00'

100-2041-1000-200
lP'PLOXIB B!NIl'ITS 6/30 14.000.00

6130

100-2041-1000-300
PUR PROP/TICH SERVo 2.500.00 .

6/30

100-2041-1000-580
~
600.00

100-2041-1000-610
BOOKS. PKRIOOICALS, SUPPL
6/30 3.000.00'

6130

100-2041-1000-730
!WUIPtqNI 500.00

6130

100-2041-1000-890
~
500.00

JULY 2, 1986, ISSUE

PAGE 130-12

GEORGIA FINANCIAL ACCOUNTNG HANUBOOK PAR1 III

OBE PROGRAM ACCOUNTING (CON1"INUED)
SPECIAL EDUCATION/GIfTED OBE BASIC PROGRAMS EXPENDITURES - SEVERE SELf-CONTAINED

100-2051-1000-110
SAbAlIIS-TIACH!lS 6130 20.000.00

100-2051-1000-140 SAL.-AIOIS/PA8A PROP. 6/30 43 000 00

100-2051-1000-200
ftLOYIi 'NPITS 6/30 15.000.00

100-2051-1000-300 PU!! PROP/T!C!f Spy. 6/30 1. 000 00

100-2051-1000-580
IIl.lVIL
6130 600.00

100-2051-1000-610 8OQl(S, PERIODICALS, SUPP!. 6130 1. 000 , 00

100-2051-1000-890

0'1'HII

6/30

100.00

JULY 2, 1986, ISSUE

PAGE 130-13

GEORGIA fINANCIAL
ACCOUNTNG HANDBOOK PART III

aBE PROGRAM ACCOUNTING (CONTINUED)
SPECIAL EDUCATION/GIFTED aBE BASIC PROGRAMS EXPENDITURES - GIFTED

100-2111-1000-110 SALARIES-TEACHERS 6/30 40.000.00

100-2111-100-200 EMPLOYEE BENEFITS 6/30 10.000.00

6/30

100-2111-1000-580 TRAVEL
1.000.00

100-2111-1000-610 BOOK PERIODICALS/SUPPLIES 6/30 3.100.00

JULY 2, 1986, ISSUE

PAGE 130-14

GEORGIA FINANCIAL ACCOUN1~G HANDBOOK PART III

QBE PROGRAM ACCOUNTING (CONTINUED)
PROGRAM REPORTING
The budgetary and financial requirements for reporting the QBE Program revenue and basic expenditures to the Georgia Department of Education are:
1. As stated in the QBE Act, (Section 20-2-167), "Of the total funds designated for direct instructional costs for each program, a minimum of 90 percent shall be spent on such program, except as modified in this subsection. Each local school system shall spend a minimum of 90 percent of the total system-wide funds designated for each of the media and staff development categories in the category for which the funds were earned. In the event any local school system should fail to encumber at least 90 percent of such funds as intended, the state board shall increase the local fair share for an ensuing year by the difference between the actual amount encumbered and the 90 percent amount for each underexpenditure." Special Education (Regular, Hold Harmless and Gifted must spend 100% each fiscal year.
2. Total of all program types (unclassified, basic and enrichment) by function and object are reported on the Budget and Financial Report (DE Form 0046).
3. The detail program expenditures for the QBE Basic Programs are reported on the General fund Program Detail (DE Form 0420). The detail reported on the QBE Basic Programs must agree with the program controls in the accounting records.
4. The total allocations and expenditures for each QBE Basic program are reported on the General Fund QBE Basic Program Summary (DE Form 0420). Column 4 on the form is for calculating and reporting the minimum program requirement. The calculations must be made twice for each fiscal year. The calculations should be made using the budgeted amounts and calculated a second time at year end using the actual amounts from the financial records.
The following program reports is General Fund Program Expenditure Detail (DE Form 0420) reports are prepared using the year-to-date totals from the sample "T Account" illustrations on pages 130-8 through 130-14.

JULY 2, 1986, ISSUE

PAGE 130-15

GEORGIA FINANCIAL
ACCOUNTNG HANDBOOK PART III

QBE PROGRAM ACCOUNTING (CONTINUED)

The expend1ture deta11 report for the k1ndergarten program 1s prepared us1ng ledger accounts on page 130-8.

GENERAL FUND QBE PROGRAM EXPENDITURE DETAIL
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ BOARD OF EOUClI.TION

I I BUDGET FOR FY 87

I I FINl\.NCIAL REPORT FOR FY 87

PROGRAM NME: KINDIRGARTBN (OBB) (BASIC ONLY)

EXPIDIDITURB DBSCRIPTION SALARIIS (TEACHERS)
IXTIDIDBD STlI.PF SALARIBS

FUND-PROORAMlTYPBFUNCTION-oBJBCT
100-1011-1000-110
100-1011-1000-115

EXPIDIDITURE DOLLAR AfIOUNTS
on '7C),(JOD,

SALARIES (AIDBS AND PARAPROFBSSIONALS)
SALARIIS (CLERIClU.)

100-1011-1000-140 100-1011-1000-142

30,000, Dc

SALARIIS (OTHER)

100-1011-1000-190

EMPLOYEB BENEPITS
PURCHASBD PROFESSIONAL AND TBCHNIClU. SERVICIS
RIDlTAL OP !QUIPftBNT , WRICLIS

100-1011-1000-200
100-1011-1000-300 100-1011-1000-442

33000.00
r ()OO .00

RIDlTAL OF COMPUTER !QUIPMBNT

100-1011-1000-443

OTHER PURCHASBD PROPERTY SERVICES

100-1011-1000-490

CCMtUNICATION

100-1011-1000-530

TUITION TO OTHER GEORGIA LEAS

100-1011-1000-561

OTHER TUITION

100-1011-1000-569

TRAVEL OTHER PURCHASED SERVICES

100-1011-1000-580 100-1011-1000-590

l:,()() ,(ltJ

~KS. PERIOOIClU.S. AND SUPPLIES
T~S
PURCHASE OP !QUIPMIDIT
PURCHASE OP COMPUTERS AND SOFTWARE

100-1011-1000-610 100-1011-1000-641 100-1011-1000-730
100-1011-1000-734

/O.()()t),OO
::rOOO.Oo ;;J. .OeM Ot)

OTHER INSTRUCTIONAL EXPIDIDITURBS

100-1011-1000-890

/.foo,oo

I XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX!!XXXXXXXXXXXXXXXXXXX!!XXXXXXXXXxXXxxxxxxxxxxxxxx

TOTAL (KINDIRGARTBN QBB BASIC EXPENDITURES)

ISO tJoo ,00

j
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

GEORGIA DEPARTMENT OF EDUCATION

DE FORM 0420, APRIL, 1986, ISSUE

PAGB 3 OF 17

JULY 2, 1986, ISSUE

PAGE 130-16

GEORGIA FINANCIAL ACCOUNTNG HANDBOOK PART II I

QBE PROGRAM ACCOUNTING (CONTINUED)
The expenditure detail report for the Grades 9-12 program is prepared using Ledger Accounts on page 130-9.

GENERAL FUND OBE PROGRAM EXPENDITURE DETAIL
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ ' BOARD OF EDUCATION

I I BUDGET FOR trY 87

I I FINANCIAL RBPORT FOIl trY 87

PROGRAM NAME:

GRADBS 9-12 (OBB) (BASIC ONLY)

DBSCRIP'rIOII SALARIES (TBACHBRS)

PUND-PROGRAM/TYPBP'UNCTION-QBJBCT
100-1041-1000-110

EXPBNDITURB DOLLAR I\MOUNTS

KXTBNDBD STAFr SALARIBS

100-1041-1000-115

SALARIES (AlDIS AND PARAFROrISSlaaLS)

100-1041-1000-140

SALARIIS (CLBRlCAL)

100-1041-1000-142

SALARIES (OTHBR)

100-1041-1000-190

BMPLOYU BBNKrITS

100-1041-1000-200

PURCHASBD PROPISSIONAL AND TBCHNlCAL SERVICBS

100-1041-1000-300

RIDITAL or 8QUIPMBN'r & VlHICLBS

100-1041-1000-442

RIDITAL or COMPU'rBR BQUIPMIDIT

100-1041-1000-443

OTHIR PURCHASBD PROPmrrY SERVICES

100-1041-1000-490

COMMUNICATION

100-1041-1000-530

TUITION TO OTHBR GBOllGIA LIAs

100-1041-1000-561

OTHIR TUITION

100-1041-1000-569

TRAWL
OTHIR PURCHASBD SERVICBS

100-1041-1000-580 100-1041-1000-590

qddeJ.OO

BOOKS. PBRlOOlCALS. AND SUPPLIBS

100-1041-1000-610

TBX'rBOOKS

100-1041-1000-641

PURCHASB or BQUIPMBN'r

100-1041-1000-730

PURCHASB or COMPU'rBRS
AND SOP"lWJUlB

100-1041-1000-734

OTHIR INSTRUCTIONAL IXPBNDlTURIS 100-1041-1000-890

I xxxxxxxxxxxxxxxxxxxxxxxxxxxxx;gmxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx TOTAL (GRADIS 9-12 QBB BASIC IXPBNDITURIS)

1"

!IS;0(/(J. (10

xxxxxxxxxxxxxxxxxxxxxXX!xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

GEORGIA DEPARTMENT OF EDUCATION DE FORM 0420, APRIL, 1986, ISSUE

PlIGB 6 OF 11

JULY 2, 1986, ISSUE

PAGE 130-17

GEORGIA fINANCIAL ACCOUNTNG HANDBOOK PART I II

QBE PROGRAM ACCOUNTING (CONTINUED) The expend1ture deta11 report for the Spec1al Educat10n/G1fted Programs (2011, 2021, 2031, 2041 are prepared us1ng ledger accounts on page 130-10 through 130-14). Spec1al Educat10n - M1ld Resources

GENERAL FUND OBE PROGRAM EXPENDITURE DETAIL
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ BOARD OF EDUCATION

I I BUDGET !'OR FY 87

I I FINl'NCllU. REPORT FOR FY 87

PROGRM NJUm:

"ILD RESOURCE (OBS) (BASIC ONLY)

S DESCRIPTION SALARIES (TEACHERS)
!XTBNDBD STAPF SALARIBS

F\JND-PROGRAMITYPSPUNCTION-QBJBCT
100-2021-1000-110
100-2021-1000-115

BXPBNDlTURE DOLLAR l\MOUNTS
"~~.oC

SALARIES (AIDES 100) PARAPROFESSIONALS)
SALAIlIES (CURlCAL)

100-2021-1000-140 100-2021-1000-142

b-poo .00

SALAIlIES (0'l'H8R )

100-2021-1000-190

!MPLOYBE BBNKPITS
PURCHASBD PROFESSIONAL lUlD TBCHNlCAL SBRVICBS
RBNTAL OF EQUIPMENT , VBHICLIS

100-2021-1000-200
100-2021-1000-300 100-2021-1000-442

/Lf,OOO.oo
3.600,00

RENTlU. OP COMPUTER EQUIPMIDIT

100-2021-1000-443

0'l'H8R PURCHASBD PROPERTY SBRVICES

100-2021-1000-490

caMJNlCATION

100-2021-1000-530

TUITION TO 0'l'H8R GEORGIA LDs

100-2021-1000-561

0'l'H8R TUITION

100-2021-1000-569

TRAWL 0'l'H8R PURomsBD SBRVICES

100-2021-1000-580 100-2021-1000-590

/,O()O,oO

BOOKS. PERIODICALS. lUlD SUPPLIES

100-2021-1000-610

3.t>()() , ()()

TEXTBOOKS
PURCHASE OP EQUIPMIDIT
PURCHASE OF COMPUTBRS 100) SOFTWARE

100-2021-1000-641 100-2021-1000-730
100-2021-1000-734

I J 00 () .00
.s()t).Ot)

0'l'H8R INSTRUCTIONAL BXPBNDlTURBS 100-2021-1000-890

MtJ.oo

XXXXXX!p!!!xxx!!YlJ!!!!!!lJ!!xxxxxxxxxxxxxxxxxxxIXxxxxxxxxxxxyXXXXXx

TOTAL (MILD RBSOURC! OBE BASIC BXPBNDlTURES)

I 8 1) faoe;. 00

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

GEORGIA DEPARTMENT OF EDUCATION

DE FORM 0420, APRIL, 1986, ISSUE

PAGE 11 OF 17

JULY 2, 1986, ISSUE

PAGE "130-18

GEORGIA FINANCIAL
ACCOUNTNG HANDBOOK PART I II

QBE PROGRAM ACCOUNrlNG (CONTINUED) Spec1a1 Educat10n - Moderate Resources

GENERAL FUND OBE PROGRAM EXPENDITURE DETAIL
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ BOARD OF EDUCATION

I I BUDGET FOR I"Y 87

I I FINANCIAL RBPORT FOR l"Y 87

PROGRAM NAMB:

ta>BRl\.TB RBSQURCB (OSB) (BASIC ONLY)

BXPBNDI'I'lJRB DBSCRIP'I'ION SALARIBS (TEACHBRS)

FUND-PROGRAHlTXPB-
l"UNCT'ION-QRJRCT
100-2031-1000-110

BXPBNDITURB DOLLAR MOUNTS

BXTBNDBD STAFF SALARIBS

100-2031-1000-115

SALARIBS (AIDBS lUll) PARAPROFBSSIotW.S)
SALARIBS (CLKRICAL)

100-2031-1000-140 100-2031-1000-142

15 tJOo.oo

SALARIBS (0THBIl) BMPLOYBB BBNBFITS

100-2031-1000-190 100-2031-1000-200

PURCHMlBD PROFBSSIotW. MID TBCHNlCAL SBRVICBS
RDITM. OF BQUIPMIDIT & VBKICLBS

100-2031-1000-300 100-2031-1000-442

501).00

RBNTlU. OF COMl'U'rBR BQUIPMIDIT

100-2031-1000-443

0THIDt PURCHASBD PROPBRTY SBRVICBS
COIMJNlCATION TUITION TO OTHBR GBORGIl\. LEAs OTHER TUITION TRAWL

100-2031-1000-490 100-2031-1000-530 100-2031-1000-561 100-2031-1000-569 100-2031-1000-580

0THBIl PURCHASBD SBRVICBS

100-2031-1000-590

BOOKS. PBRIODlCALS. MID SUPPLIBS

100-2031-1000-610

TBXTBOOKS

100-2031-1000-641

PURCHASB OF BQUIPMIDIT

100-2031-1000-730

PURCHASB OF COMPUTBRS MID SOFTWARB

100-2031-1000-734

0THIDt DlSTRUCTlotW. BXPBNDITURBS 100-2031-1000-890

I 7~ ~()C). XXXXXXXXXXXXXXXX!XX!!!!!XXXXXXXXX!IXXXXXXXXXXXXXXXX!XXX!IXXXXXX!IXXXXXXXXXXXXXXX

TOTAL (MODBRATB RBSOURCB OBB BASIC BXPBNDITURBS)

00

XXXX!X!XXXXXXXXXxXX!xxxXXXXXXXXX!!IXXXXX!XXXXXXXXXxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

GEORGIA DEPARTMENT OF EDUCATION DE FORM 0420. APRIL. 1986. ISSUE

PMB 12 OF 17

JULY 2, 1986, ISSUE

PAGE. 130-19

GEORGIA FINANCIAL
ACCOUNTNG HANDBOOK PART II I

QBE PROGRAM ACCOUNTING (CONTINUED) Special Education - Moderate Self Contained

GENERAL l'UND ODE PROORAM EXPENDITURE DETAIL
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ BOlUW OF EDUCATION

I I BUDGET FOR trY 87

I I FINANCIAL RBPORT FOR trY 87

PROGRAM NAME:

!!?DERATB SELF-CONTAINBD (OBB BASIC ONLY)

BXPBNDITURB DBSCRIP'rION SALARIES (TBACHBRS)
BX'rBNDBD STAFF SlU.ARIBS

FUND-PROGRAMlTYPBFUNCTION-QBJECT
100-2041-1000-110
100-2041-1000-115

BXPEND ITURE DOLLAR MOUNTS
306"0.00

SALARIES (AIDES AND PARAPROFESSIONALS)
SALARIES (CLDICAL)

100-2041-1000-140 100-2041-1000-142

;rI,MO. dO

SALARIES (OTKD)

100-2041-1000-190

BllPLOYEI!: BENBFITS
PUROfASBD PROFESSIONAL AND TJ!:CH)/ICAL SIRVICBS
RDI'rAL OF BQUIPMIDIT & VBHICLBS

100-2041-1000-200
100-2041-1000-300 100-2041-1000-442

NtJo(}.oo
~,500.tJI)

RDI'rAL OF COMPUTBIl BQUIPtUDI'r

100-2041-1000-443

OTHER l'tJRCHASBD PROPD'l'Y SIRVICES
COIRJNICATION

100-2041-1000-490 100-2041-1000-530

TUITION TO OTKD GEORGIA LBAs

100-2041-1000-561

OTHER TUITION

100-2041-1000-569

TRAVEL 0'fHBR PURCHASBD SIRVICBS

100-2041-1000-580 100-2041-1000-590

bOO.oo

BOOKS. PBRIODICALS. AND SUPPLIES
TKXTBOOKS

100-2041-1000-610 100-2041-1000-641

3.000.00

PURCHASE OF !QUIPMIDIT
PURCHASE OF COMPUTBRS AND SOFTWARE

100-2041-1000-730 100-2041-1000-734

5l)tJ,dO

OTHER INSTRUCTIONAL BXPBNDITURBS 100-2041-1000-890

500.00

:X:

,XXXX

TOTAL (MODERATE SELF-CONTAINID OBE BASIC BXPBNDITURBS)

$JA/OO,tJO

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx!l!XXXX!l!XXXXXXXXXlxxxxxxxxxxxxxxxXXXXXXXXXXXXX

GEORGIA DEPARTMENT OF EDUCATION DE FORM 0420, APRIL, 1986, ISSUE

PAG! 13 OF 17

JULY 2, 1986, ISSUE

PAGE 130-20

GEORGIA fINANCIAL ACCOUNTNG HANDBOOK PART III

QBE PROGRAM ACCOUNTING (CONTINUED) Spec1al Educat10n - Severe Se1f-Conta1ned

GENBRAL FUND OBE PROGRAM EXPENDITURE DETAIL
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ BOARD OF ImUCATION

I I BUDGET FOR FY 81

I I FINANCIAL REPORT POll FY 81

PROGUM MAIm:

SIMDlI SBLI"-eoNTAINBD (OBI BASIC ONLY)

nPDlDYTURIl: DBSCRIPTYON SALARIBS (TBACHBRS)
IXDNDBD STAPP SALARIBS

100-2051-1000-110 100-2051-1000-115

EXP!NDlTURE

DOLLAR MOUNTS

1,.. r

, Of)

SALARIBS (AIDBS AND PARAPROFESSIONALS)
SALAIlIBS (CLBRlCAL) SALARIBS (0'rHBIl) BMPLOYBB BBNBI"ITS

100-2051-1000-140 100-2051-1000-142 100-2051-1000-190 100-2051-1000-200

PURCIWlBD PROFESSIONAL AND TBCHNlCAL SBRVICBS
RDrrAL 01" BgUIPMBIlT , VlHICLBS
RIDITlU. 01" COMPUTBR BgUIPMDIT

100-2051-1000-300 100-2051-1000-442 100-2051-1000-443

/000 .00

0'rHBIl PURCIWlBD PROPBRTY SBRVICBS
COIRJNlCATION TUITION '1'0 0'rHBIl GIORGIA LIAs 0'rHBIl TUITION
TRAVIL
0'rHBIl PURCIWlBD SBRVICBS

100-2051-100a-490 100-2051-1000-530 100-2051-1000-561 100-2051-1000-569 100-2051-1000-580 100-2051-1000-590

IotJo.oo

BOOKS. PBRIODlCALS. AND SUPPLIBS

100-2051-1000-610 100-2051-1000-641

',OOO,OlJ

PURCIWlI 01" BgUIPMBNT

100-2051-1000-130

PURCIWlI 01" COMPU'l'BRS AND SOP'l'WARB

100-2051-1000-134

0'rHBIl INSTRUCTIONAL EXPBNDlTURBS 100-2051-1000-890

/OO,(}()

11=1::uxx::~::::=!~:;!::x:::::xxxxxxrxx~~x;;:~:7

!!!!!!XXXXXXXXXXX!!XXXXXXXJXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

GEORGIA DEPARTMENT OF EDUCATION
DE FORM 0420, APRIL, 1986, ISSUE

P~I 1401" 11

JULY 2, 1986, ISSUE

PAGE 130-21

GEORGIA FINANCIAL ACCOUNTNG HANDBOOK PAR"' III

aBE PROGRAM ACCOUNTING (CONTINUED) Special Education - Gifted

GENERAL FUND QBE PROORM EXPENDITURE DETAIL
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ BOARDOF ImUCATION

/ / BUDGET FOR fPY 87

/ / FINANCIAL REPORT FOR Py 87

PROGRAM NAMK:

GIPTIP (OBK) (BASIC ONLY)

KXPKHDI'1'URK DESCRIPTIOII SALARIES (TEACHERS)
KXTKHDED STAPP SALARIES

PUND-PROGRAMlTYPK'-QBJ8CT
100-2111-1000-110
100-2111-1000-115

KlCPKHDITURK DOLLAR MOUNTS
i-f>.oa::>. 00

SALARIIS (AIDKS MD PARAPROPESSIONALS)

100-2111-1000-140

SALARIIS (CLKRICAL)

100-2111-1000-142

SALARIES (OTHER)'

100-2111-1000-190

KMPLOYD BKNBPITS
PURCHASED PROPKSSIOIW. MD TBCHNICAL SBIlVICBS

100-2111-1000-200 100-2111-1000-300

IO,oo().oo

RDITAL OP KQUIPlWN'T & VBHICLKS

100-2111-1000-442

RDITAL OP COMPUTKR KQUIPtUDI'f

100-2111-1000-443

OTHER PURCHASED PROPBaft SBRVICIS
COI'KlNICATION

100-2111-1000-490 100-2111-1000-530

TUITION TO OTHER GKOIlGIA LDs

100-2111-1000-561

OTHER TUITION

100-2111-1000-569

TRAWL OTHER PURCHASED SBIlVICES

100-2111-1000-580 100-2111-1000-590

1.000,00

BOOKS. PKRIODICALS. MD SUPPLIES
TKXTBOOkS

100-2111-1000-610 100-2111-1000-641

3lOo.()o

PURCHASK OP EQUIPlWN'T

100-2111-1000-730

PURCHASK OP COMPUTKRS MD SOP"1'WARK

100-2111-1000-734

OTHER IHSTRUC'rIOIW. KXPKHDITUUS 100-2111-1000-890

I X!!!TJ!XXXXXXXXXXXX!XX!""""""'!""'JJ!!!!XXXXXXXXXXXXIXXXXXXXlXXXXXXXXXXX

TOTAL (GIP'rKD OBK BASIC KXPDIDITUUS)

.s~ /('0. VO

!!!TJ!xxxx!XXxxxx!XXxxx XXXxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

GEORGIA DEPARTMENT OF EDUCATION DE FORM 0420, APRIL, 1986, ISSUE

PllGK 15 OF 17

JULY 2. 198b, ISSUE

PAGE 130-22

GEORGIA FINANCIAL
ACCOUN1NG HANDBOOK PAR"! II I

QBE PROGRAM ACCOUNTING (CONTINUED)
COMPLIANCE MONITORING
In order to monitor the Fiscal Year program expenditure requirement, it will be necessary to report program expenditures on the General Fund QBE Basic Program Summary (DE Form 0420).
Each QBE program requirement is a combination of state and local funds. Monitoring of the requirement will be performed by the Financial Review Section of the Georgia Department of Education as well as the Department of Audits.
1. A minimum of 90% of the program earings for the Kindergarten, 1-3, 4-8, 9-12, General Laboratory, Staff Development, Media Center, Remedial Education Programs, Vocaional Laboratory Program must be expended in the programs where earned. Professional Development is not funded for FY 81.
2. 100% of the total earnings for the Special Education Programs and 100% of the earnings for the Gifted Program must be expended in the programs where earned.
3. 100% of the 90% Hold Harmless earnings must be expended in the Special Education (Regular) and the Special Education (Gifted) Programs.
The reporting of the Basic QBE Programs on the DE Form 0420 will be required in addition to the DE Form 0046 (Annual Financial Report) at the end of the fiscal year. If expenditure shortages exist, the State Board will increase the local fair share for the next fiscal year by the difference between the actual amount expended and obligated and the required expenditure amount for each program.
Example of the DE form 0420 is shown on the following page.

JULY 2, 1986, ISSUE

PAGE 130-23

GEORGIA FINANCIAL
ACCOUNTNG HANDBOOK PART III

e:.."
c:: r -<
N
lcDo
(7'
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q~NI!RI\L FUND Q81! PROGRM I!XPI!NDITURII SIlIlIV\RY

c::

2

BOI\RD OF IlDUCI\TION

0

_1_1 I'Y 81 BUDGIlT

co

J>

1_ _1 FY 81 FINI\NCII\L RI!PORT

V....I.

n

DIFI'I!IIIlNCIl

"INIIlIJII

<JIIIlR

-,:,

PROGRI\Il

I\LLO'I'IlIIIlTS pROGRI\IlI

RIlOlIIRBD

RIlOlIIRIlD

I!XPBNDITURIIS PROGRM

(UNDIlR)

~

COL. 5 "IMUS COL. 4

0
en

DllSCRIPTION COL. I

SOURCE

I\IlOUIIT COL. 2

PBRCIIlT COL. 3

I\IlOUIIT COL. 4

I'UNCTIONI

I\IlOUIIT

COL. 5

I\IlOUIIT COL. 6

J~ >

SPI!CII\L IDUCI\TION (HOLD HI\RIlI.BSS I

2000 3120

_~<100,oo 100\

on 30 (JeJO.

XXXXXXXXXXX
xxxxxxxxxxx

2021-

3:

0.00 ( _~ !JOel. O() )

Vc:I:

,c.,o.,
-,:,
~

SPllCII\L IDUC"TIOll (RDJIJ\Il PIIOOIIJlIIS I

20103120

3~ OCJO.OO 100\

30tJ eJeJO. 00

1000 'l'IlIlOOOII
20!)l-
1000

3/S.Q{)(J.oo

Is-. 9tJo. 00

3:
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~

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SPI!CII\L IDUCl\TIOll (GII'TIlDI

21103120

110.00. Of) 100\

~,t>oo.OO

21111000

xxxxxxxxxxxxxxxxxxxx XXXXXXXXXXX 'XOlDXXXXXXXXXX XXXXXXXX xxxxxx

XXXXXXXXXXX

5'1./00. 00

/4100.00
XXXXIlXXX

,0.,.,

SPI!CI"L IDUC"TIOll XXXXXXXXXXX

(TOTllL)

xxxxxxxxxxx

37 () 000.06 100\

310 000. () 0

xxxxxxxxxxx
XXXXkXDAXX

370 O(Jo. 00

0.00

"T1

Jn> n
0
c::

XXXXXXXXXXXXXXXXXXXX XXXXXXXXXXX XXXXXXXlCXXlO<XXXXXXX XXXXXXXX

IUNDBRGI\RTIlN

10113120

jqo IYn /1/\

90\

GRl\DI!S I - 3

1021-

3120

90\

GR"DIlS 4-8

1031-

XIlXXXXXXXXX xxxxxxxxxxxxxxx XXXIlXXXXXXXXXXXXXXX

J7J 000.00
/

10111000 10211000

" /50o(}(>. 00 I ;;. / om 00) /

1031-

0
~
3:
0
~ N
0

2
.-..-.l.
e2n In

3120

90\

1000

0

GRI\DIlS 9 12

1041 3120

J.15:0oo,OO 90\

,;}J./75"U).()I.

1041 1000

3/5/VY1 /Jr)

C// ..c:Ot').Oo

2
.-..!..

SIlCONDI\RY GIlNIlRI\L

1111-

I

1111-

/

2

LllBORl1TORY STI\I'I' DIlVIlLOPlllllT
PROPIlSSIOll"L

3120 1210-
3120 1220-

90\

1000

1210-

90\

2210

1220

,c..:.:,
-0-

D8IIIlLOPlllllT

3120

90\

2210

IlBD I" CENTIlRS

1310-

1310-

3120

90\

2220

RIlIl8DII\L IDUCI\TIOll

2211

2211-

3120

90\

1000

IIOCIITIOllI\L

3011

3011-

lJ\IIl)RI\TORY

3120

90\

1000

GIlORGII\ DIlPI\RTIIlIIlT OF IDUCl\TIOll Dil PORJlI 0420. I\PI1IL. 1986

P _ 2 OF 11

QBE PROGRAM ACCOUNTING (CONTINUED) PROGRAMS' SUMMARY ANALYSIS: 1. In the K1ndergarten Program where 79% expend1ture 1s reported, the system
would be requ1red to 1ncrease 1ts local fa1r share for the ensu1ng f1scal
year by 11% or $21,000.00 (calculated as $190,000.00 X 90% = $171,000.00,
m1nus $150,000.00 = $21,000.00).
I~

2. The $67.500.00 excess of bas1c program expendHures (over 90% of the allotment) 1n the Grades 9-12 program cannot be app11ed to another program
show1ng less than 90% (1.e. K1ndergarten program).

I 1-- - - -'-1-2 . J - -.I. -lli~iiU.e~_.J-I.- ---'~::l.7.!...:S::J-!OO=O~.~ o~oL...-.m--! i/JfZ54?O.1Il!I !iM!!ii-

3/~aaa.(J() 1

3. The total expend1ture requ1rement for the Spec1al Educat10n Program was met 1n th1s 11lustrat10n.

,- , "17 IlUDOIlT

_ _0 OP IIDUCIITIOlI
, ' " 17 Pl-=I"L IlG'QRT Dlppa-=CMIII

JULY 2, 1986. ISSUE

PAGE. "130-25

GE.ORGIA FINANCIAL
ACCOUNTNG HANDBOOK PART III

1 1 1 1
1 1 1 1
1 1 1 1
1 1 1 1
1 1 1 1
1 1 1 1
1 1 1 1
1 1 1 1
1 1 1 1
1 1 1 1
1 1 1 1
1

CHAPTER 131
ACCOUNTING fOR EXTENDED DAY/YEAR SALARIES
The Q.B.E. Act provides funding for an extended day program or an extended year program or both for Grades 9-12, high school laboratory program, and vocational laboratory program. Systems may supplement other programs and activities with local and/or other available resources. Instructors approved for extended day/year salaries will be limited to teaching one segment out of field. The local school system will determine personnel eligible to receive extended day/year salaries in accordance with approved criteria and activities.
The base salaried teacher is to perform such tasks as teaching and teacher preparation, staff meetings, conferences with students and parents, planning conferences and related school activities in the community and extra class responsibilities. The minimum workday for teachers is eight hours. The minimum work year is 190 days. Extended day/year salary time must be beyond the minimum workday and year.
The extended day/year salary time must be scheduled to meet additional program responsibilities and student needs. The extended instructional day will require one additional hour beyond the required teaching workday.
Instructors may coordinate student organizations if approved for one of the extended instructional eligible activities. The organization must be an integral part of a curriculum area and provide students the opportunity to demonstrate content knowledge skills, develop leadership skills, and exhibit them in ways not available through other school programs. Instructors coordinating extracurricular, athletics, such as coaches' supplements, and socially related student organization, such as Junior Civitan Clubs and Key Clubs are not eligible under this criteria.
The maximum reimbursement for extended day/year salaries shall not exceed:

Extended Instructional Day

1/8 of 10-month base salary
(State salary schedule only and does not include local supplement.)

Extended Year

maximum of 40 days; daily rate not to exceed 1/190 of base salary (does not include any supplements.)

APRIL 8, 1986, ISSUE

PAGE 131-1

GEORGIA fINANCIAL ACCOUNTING HANDBOOK
PART II I

ACCOUNTING FOR EXTENDED DAY/YEAR SALARIES (CONTINUED)

Funds are generated for extended day/extended year salar1es through the FTE
allocat10n formulat10n for Grades 9-12, h1gh school laboratory program, and the vocat10nal laboratory program. Thus, the allotments shown on the allotment sheets for these three programs 1ncludes funds for extended staff sa1ar1es. When the QBE check 1s received monthly, the funds for these three programs are credited as follows:

Grades 9-12 H1gh School Laboratory Vocat10na1 Laboratory

100-1041-3120-000 100-1111-3120-000 100-3011-3120-000

When the extended staff salary payments are expended, they are charged as follows:

Grades 9-12 H1gh School Laboratory Vocat10nal Laboratory

100-1041-1000-115 100-1111-1000-115 100-3011-1000-115

Systems may supplement other programs and act1v1t1es w1th local and/or other
ava11able resources. Examples are 1nstructors coord1nat1ng soc1ally related student organ1zations, and athlet1c coach's supplement. The expense account charged for these type act1v1t1es would be as follows:

100-0000-1000-115

Please refer to State Board Po11cy for add1t10nal deta11s on extended day/extended year, state approved course and students early release.

APRIL 8, 1986, ISSUE

PAGE 131-2

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART III

CHAPTER 150 APPENDIX TABLE OF CONTENTS
APPENDIX A SAMPLE FINANCIAL STATEMENTS APPENDIX B SUPPLIES AND EQUIPMENT APPENDIX C (RESERVED FOR NEW MATERIAL LATER) APPENDIX D FULL TITLES OF HANDBOOKS IN THE USOE'S
EDUCATIONAL RECORDS AND REPORTS SERIES APPENDIX E DEPRECIATION METHODS APPENDIX F TERMINOLOGY

BEGINNING PAGE 151-1 152-1 153-1
154-1 155-1 156-1

APRIL 12, 1985, REVISION AUGUST 2, 1983, ISSUE

PAGE 150-1

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART IV

APPENDIX A
EXAMPLES OF FINANCIAL STATEMENTS
There are three levels of differential financial reporting: comprehensive annual financial report, general purpose financial statements, and the popular report. This appendix does not address the comprehensive annual financial report or the popular report.
The general purpose financial statements should be designed to meet most of the needs of those interested in the local education agency's (LEA's) finances. Examples A - F illustrate the general purpose financial statements required for the fair presentation of financial position and results of operation. Each of these statements is explained below.
COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS (EXAMPLE A)
This statement is a summary of the assets and other debits, liabilities and equities of all funds and account groups of the LEA. The fund types and account groups are classified into the following categories: general governmental fund types, proprietary fund types, fiduciary fund types and account groups. The totals of the amounts in all fund types and account groups are reported for each caption. Eliminations mayor may not be made in arriving at the total. If eliminations are made, it should be disclosed by the heading on the statement. Eliminations have not been made on example A.
COMBINED STATEMENT OF REVENUES, EXPENDITURES. AND CHANGES IN FUND BALANCE ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUNDS (EXAMPLE B)
This statement is a summary of the operations and other equity changes of the general governmental funds and expendable trust funds. The statement contains a separate column for each of the general governmental fund types maintained by the LEA. The final number in each column should agree with the equity balance for that fund type as reported in the balance sheet. Excessive detail should be avoided in choosing the captions for reporting revenues and expenditures.
COMBINED STATMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL - GENERAL AND SPECIAL REVENUE FUND TYPES (EXAMPLE C)
This statement is presented to display a comparison of the actual results with the budget. With the exception of budget data, this statement contains the same captions and amounts as example B. The statements have three columns: Budget, "Actual" and "Over (Under) Budget". This statement should also include budget and actual data for other governmental fund types for also include budget and actual data for other governmental fund types for which budgets have been adopted. The budget data should be obtained from the LEA's legally adopted budget. Obviously, the budget and the actual should be prepared on the same accounting basis, i.e., accrual or modified accrual.

SEPTEMBER 1, 1983, ISSUE

PAGE 151-1

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART IV

APPENDIX A (CONTINUED)
COMBINED STATEMENT OF REVENUES. EXPENSES AND CHANGESO IN FUND EQUITY - ALL PROPRIETARY FUND TYPES AND NON-EXPENDABLE TRUST FUNDS (EXAMPLE 0)
This statement present s summary of the revenues, expenses, and other sources and uses of resources, and changes in retained earnings. There is a column for each fund group presenting the totals for all funds in that group. The final numbers in each column should agree with the equity balances for that fund type as reported on the balance sheet (example A).
COMBINED STATEMENT OF CHANGES IN FINANCIAL POSITON - ALL PROPRIETARY FUND TYPES AND NON-EXPENDABLE TRUST FUNDS (EXAMPLE E)
This statement discloses the working capital or cash provided from or used in the operations of a specific period. It also provides a link between the
balance sheet (example A) and the statement of operations (examples B &0) for
transactions that are not disclosed. The 'elements of net increase (decrease) in working capital reflect changes in the current asset and current liability accounts during the reporting period. This statement could be considered a statement of source and application of funds.
NOTES TO FINANCIAL STATEMENTS (EXAMPLE F)
The notes are explained in example F.

SEPTEMBER 1, 1983, ISSUE

PAGE 151-2

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART IV

V,..I,

,"-..0l,

cm3a:

.:.:.0.

Exa~le A.-School diatrict XYZ: ca8bined balance aheet; all fund typea and account groupa. June 30. 19XX

....

ID

ca

-(,oJ
VI

Asaeta and other debita

VI

Cm

Current ...eta:

Caah

General

Gove~ntal fund types

Proprietary fund typea

Fiduciary fund typea

Special Debt

Capital Enter-

revenue aervice projects priae

Internal Truat aud aervice agency

Account groupa Totala
(--
randua General General only)
Uxed longaaaeta tera debt

$ 56.050 $ 22.310 $ 34.210 $ 12.700 $ 78.090 $ 10.500 $ 5.620

$219.480

Caah with fiacal agenta

92.000

92.000

lnveatlllenta

215.000 65.000 132.000 419.000

270.000

1.101.000

Taxea receivable (net of allowancea

for eatimated uncollectiblea. aee notea to financial atatement)

62.000

2.660

4.250

68.910 :

lnterfund receivablea Intergovernmental receivablea

67.000 30.000

75.260

15.000

2.000 11.200 11.000

106.200 I 105.260

Other receivablea (net of allowancea

">0
.0m..').

for eatiaated uncollectiblea. aee notea .to financial atatement) Bond proceeda receivable lnventoriea

950 27.200

9.400

.I.J.'.l

Prepaid expenaea Other current aaaeta

32.500 12.200

31.300 900

10.000 800

3.900
45.900 1.480

18.200 1.480

I
!
4.850 10.000 101.500 66.760 I 13,100 I

I

W

Total current ..aeta

502,900 206,830 262.460 457,500 131,370 41,380 286,620

1,889,060 I

:"->:lOoOn>n:m :(O0i)
-CO')
-< z - l >-
Z"
0')-
:z>xnz>Z cC la >-
OrO
~

Fixed aaaeta: Sitea Site i~rovementa (net of accuaulated depreciation. $4,240) Buildinga (net of accumulated depreciation. $429,480) Machinery and equipment (net of accuaulated depreciation. aee notea to financial atatementa) Conatruction in progreaa
Total fixed aaaeta
Other debita Amount avaUable in debt aervice funda Aaount to be prOVided for retirement of general long-tera debt
Total other debita

52.050 52.050

54.950 54,950

$192.000 39.260
3.994.320

C
192.000 I
..C.
39.260
3.994.320

709.080 892,000
5,826,660

816,080 892,000
5,933,660

$169.710 169.710 2,630,290 2,630,290
2.800.000 2.800.000

VI

".,
-a

-I

".,

31:

ClI:l

".,

BuII{Ile A.-School d1atl:lct XU: cClllb1Ded balauc:e .heat; all fllllcl typea aDel accoUDt Iroup., J _ 30, 19D-eOAt1Duad

:lC

-'

Proprietary

Piduciary

-'

ID

Liabilitie. and fund equity

Gove~ntal fund type.

fllllcl tYPe.

fund type.

Account sroup.

Total.
(-

CO

General Gener.l rand. .

(,oJ

Special Debt Capital nter- Internal Tru!lt and

fixed lons-tera only)

....

General revenue service projects prise

service asency

assets debt

VI

VI C

Current liabilities:

".,

Interfund payables

$ 35,200 $ 2,000

$ 4,000

$ 65,000

$106,200

Intersovernmental payables

9,250

$ 42,000

51,250

Other payables

87,950 36,150

48,600 $ 16,400 15,000

204,100

Contracts payable

57,600 18,000

69,000

26,100

170,700

Matured bonds psyable

$ 50,000

50,000

Loans paysble Interest payable

60,000 3,000

42,750

60,000 : 45,750

Accrued expenses

34,300 19,900

2,280 4,260

60,740 I

Psyroll deductions and withholdinss

3,900

1,780

210

380

e"'nC

Deferred revenues Other current liabilities

18,000

900

800

".,

Total current lisbilities

300,850 87,880 92,750 121,600

44,990 84,640

42,000

6,270

18,000

I I

1,700 :

774,710

-'

fJ'I

Lons-tera liabilitiea:

-'

Bonds psyable

I .".

Hotes payable Lease oblisations

$2,700,000 90,000 10,000

I
2,700,000 I 90,000 10,000. I

Total lons-tera liabilitiea

"'Cn "(l.',)
:0 n 0

-l 0 :lC

C(l')

.... .<...

Z -l

....

z"
(l')-

: z> n zZ

CCIlI:-l Or-
:O:oc

Fund equity: Invest..nt in general fixed assets Contributed capital Retained earnings: Reserved for property purchases Unreserved Pund balsnces Reserved for inventories Reserved for prepsid expenses Reserved for encumbrsnces Reserved for conatruction Unreaerved
Totsl fund equity
Totsl lisbilities snd fund equity

27,200 32,500 38,000
104,350
202,050
502,900

9,400 31,300 46,500
31,750
118,950
206,830

169,710 169,710 262,460

300,800 35,100
335,900
457,500

50,000
8,000 80,430

8,000 3,690

138,430 183,420

ll,690 96,330

244,620 244,620 286,620

2,800,000 $5,826,660

2,800,000

I I

I

~

5,826,660

58,000

8,000 84,120

5,826,660

36,600 63,800 84,500 300,800 585,530
7,048,010

5,826,660 2,800,000 10,622,720

APPENDIX A (CONTINUED)

Example B. - School diatrict %tZ: combined statement of revenues, expenditurea, and changes in fund balances; all governmental fund typea and expendable trust funds, for the fiscal year ended June 3O,19XX

General

Governmental fund types

Special revenue

Debt aervice

Capital projects

Fiduciary fund type
Expendable trust

Totals
(memo randum
only)

Revenues: Local sources: Taxes Tuition Earnings on invest.ents Textb~ok rentals

$1,016,660 . 17,440
2,200 9,250 1,045,550

State aources: Unrestricted grants-in-aid Restricted grants-in-aid

413,000 30,000
443,000

Federal sources: Unrestricted grants-in-aid Restricted grants-in-aid

8,900 100,000 108,900

Total revenues

1,597,450

Expenditures: Instruction aervices Regular education programs Special programs
Vocational education programs
Other inatructional programs Nonpublic school progr...
Adult/continuing education programs
Co_unity seryices prO~q

680,590 . 134,200 86,270
42,090 1,290
10,430 3,110
958,580

Supporting aervicea: Student
Instructional ataff General administration School administration Business Operation and maintenance of
plant
Student transportation Central Other

78,500 51,350 52,100 141,980 19,970
169,080 17,250 10,840 46,820
587,890

$238,000 1,000
239,000

$110,000 17,840 127,840

2,400 2,400

14,000 14,000

19,000 19,000
260,400

141,840

19,010 161,230
4,760

185,000
14,800 9,200
18,000

42,000

$42,050 42,050
42,050

$ 200 200
200

$1,364,660 17,440 63,290 9,250
1,454,640
413,000 46,400
459,400
8,900 119,000 127,900
2,041,940
699,600 295,430 86,270 42,090
6,050
10,430 3,JlO
1,143,580
93,300 60,550 70,100 141,980 19,970
169,080 17,250 10,840 46,820 629,890

SEPTEMBER 1, 1983, ISSUE

PAGE 151-5

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PARl IV

APPENDIX A (CONTINUED)

Example B.-School district ~Z: combined statement of revenues, expenditures, and changes in fund balances; all governmental fund tyPes and expendable trust funds, for the fiscal year ended June 30, 19XX-continued.

Governmental fund types

General

Special revenue

Debt service

Capital projects

Fiduciary fund type
Expendable trust

Totals (memo-
randua only)

Expenditures-continued:

Operation of non-instructional serv:Lces

.

Fac:Ll:Lt:Les acqu:Ls:Lt:Lon and construct:Lon serv:Lcea
Debt service

114,420

813,800

Total expenditures Excess of revenues over
(under) expend:Ltures

1,546,470 50,980

227,000 33,400

114,420 27,420

813,800 (771,750)

Other f:Lnanc:Lng sources (uses): Proceeds from the ssle of bonds Operat:Lng transfers :Ln Operating transfers out

(50,000)

950,000 18,000

Total other financina sources

(uses)

(50,000)

968,000

Excess of revenues and other sources over (under) expend:Ltures and other uses

980

33,400

27,420

196,250

Fund balances-July 1

201,070

85,550 142,290

139,650

Fund balances - June JO

202,050

118,950 169,710

335,900

The notes to the finsnc:Lal statement are an intearal part of this statement.

2,420
2,420 (2,220) 2,530 2,530
310 26,560 26,870

2,420
813,800 114,420 2,704,110 (662,120)
950,000 20,530 (50,000)
920,530
258,360 595,120 853,480

SEPTEMBER 1, 19B3, ISSUE

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GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART IV

APPENDIX A (CONTINUED)

Example C.-School district ~Z: Itatementl of revenues, expenditures, and changes in fund balances-budget and actual; general and special revenue fund types, for the fiscal year ended June 30,19XX

Revenues: Local aourcea: Taxes
Tuition Earnings on investments Textbook sales and rentala

Budget

General fund Actual

Over (under) budget

$1,202,700 14,000 3,500 8,600
1,228,800

$1,146,660 17 ,440 2,200 9,250
1,175,550

( 56,040) 3,440 (1,300) 650
(53,250)

Budget

Special revenue funds

Over

Actual

(under)

budget

$ 89,000 $109,000

$20,000

89,000 109,000

20,000

State sources: Unrestricted grants-in-aid Restricted grant-in-aid

485,000 485,000

413,000 413,000

(72,000) (72,000)

34,000 34,000

32,400 32,400

(1,600) (1,600)

Federal aources: Unrestricted grants-in-aid Restricted grants-in-aid

9,200 9,200

8,900 8,900

(300) (300)

112,000 112,000

119,000 119,000

7,000 7,000

Total revenues
Supporting services Student Instructional ataff General administration. School administration Business Operation and maintenance of plant Student transportation Central Other

1,723,000
79,500 50,900 54,800 152,000 18,000
142,000 30,800 12,000 50,000
590,000

1,597,450 (125,550)

78,500 51,350 52,100 141,980 19,970

(1,000)
450 (2,700) (10,020) 1,970

169,080 17,250 10,840 46,820
587,890

27,080 (13,550) (1,160) (3,180) (2,110)

235,000 13,000 11,500 20,500
45,000

260,400 14,800
9,200 18,000
42,000

1,800 (2,300) (2,500)
(3,000)

Total expenditures
Excess of revenues over (under) expenditures

1,555,000 168,000

1,546,470 (8,530) 50,980 (117,020)

235,000

227,000 33,400

(8,000) 33,400

Other financing aources (uses) operating transfers out

(50,000)

(50,000)

Excess of revenues and other sources over (under) expenditures and other uses

118,000

980 (117,020)

Fund balances - July 1

201,070

201,070

85,550

Fund bslances - June 30

319,070

202,050 (117,020)

85,550

The notes to the financial statements are an integral part of this statement,

33,400 85,550 118,950

33,400 33,400

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GEORGIA FINANCIAL ACCOUNTING HAND800K PART IV

APPENDIX A (CONTINUED)

Example D.- School district nz: combined stat_nt of revenues, ezpenses, and changes in fund equity; all
proprietsry fund types and nonezpendable trust funds, for the fiscal year ended June 30, 19XX
--

Proprietary fund types Enterprise funds Food service Bookstore Total

Fiduciary fund type

Internal Nonexpendable

service

trust

Total
(meDlO-
randum only)

Opersting revenues: Local sources: Earnings on invest.ents Food service sales Bookstore sales Charges for services

$136,200

$ 9,440

136,200 9,440

$ 2,580 $43,335

$ 2,580 136,200
9,440 43,335

Total operating revenues 136,200

9,440 143,640

43,335

2,580

191,555

Operating ezpenses: Personal services Employee benefits Purchased services Supplies and other expenses Depreciation

49,820 4,600 19,200
130,540 4,890

3,260 200 90
260 180

53,080 4,800 19,290
130,800 5,070

22,820 2,290 1,810
21,090 2,600

75,900 7,090
21,100
151,890 7,670

Total operat1n& ezpenses 209,050

3,990 213,040

50,610

263,650

Operat1n& inca.e (loss)

(72,850)

5,450

(67,400)

(7,275)

2,580

(72,095)

Non-operating revenuea: Stste sources: Restricted grants-in-aid

1,950

1,950

1,950

Federal sources: Restricted grants-in-aid 12,000

Total non-operat1n& Revenues

13,950

12,000 13,950

12,000 13,950

Income (loss) before operating transfers

(58,900)

5,450

(53,450)

(7,275)

2,580

(58,145)

Operating transfers in (out) 32,000

Net inca.e

(26,900)

Retsined earu1nas/ fund balance - July 1

147,260

Retained earnings/ fund bslance - June 30

120,360

5,450 12,620 18,070

32,000 (21,450) 159,880 138,430

(7,275)

(2,530) 50

18,965 217,700

11,690 217,750

(29,470) (28,675) 396,545 367,870

The notes to the financial statementa are an integral part of this statement.

SEPTEMBER 1. 19B3. ISSUE

PAGE 151-8

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART IV

APPENDIX A (CONTINUED)

Example E.-School diatrict XYZ: coabined statement of changea in financial position; all proprietary fund types and nonexpendab1e trust funds, for the fiscal year ended June 30, 19XX.

Proprietary fund types

Enterprise funds Food service Bookstore Total

Internal service

Fiduciary fund type Nonexpendab1e
trust

Totals (memorandum only)

Sources of working capital:

Operations:

Net inc.,..

Ite.. not requiring (providing)

working capital: depreciation $ 4,890

sale of fixed assets

40,120

Total sources of working capital

(45,010)

Uaes of working capital: Operationa:
Net 10SB Acquisition of fixed assets

26,900 16,600

Total uses of working capital 43,500

Net increase (decrease) in working capital

1,510

Elements of net increase (decrease) in working capital Cash Inveatmenta Interfund receivab1ea Other receivab1ea Inventories Prepaid expenses Interfund payab1eB Other payables Contracts payable Accrued expenses Payroll deductions and withho1dings

41,830
1,000 3,900 (41,900)
580
(14,210) 12,800 (2,280)
(210)

Net increaae (decrease) in working capital

1,510

$ 5,450 180

$ 5,450
5,070 40,120

$ 50
$ 2,600 6,800

5,630

(50,640)

9,400

50

26,900 16,600
43,500

7,275 7,275

5,630

7,140

2,125

50

17,630 (12,000)

59,460
1,000 3,900 (53,900)
580
(14,210) 12,800 (2,280)
(210)

5,630

7,140

(2,835) 3,000 (6,400) 8,000 5,000 (4,260)
(380)
2,125

(15,950) 19,000 (3,000)
50

$ 5,500 7,670
46,920
(60,090)
34,175 16,600 50,775
9,315
40,675 19,000
1,000 3,900 (60,300)
580 8,000 (9,210) 12,800 (6,540)
(590)
9,315

SEPTEMBER 1. 19B3. ISSUE

PAGE 151-9

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART IV

APPENDIX A (CONTINUED)

Example F - Notes to Financial Statements

The notes to the financial statements are intended to communicate
information not readily apparent from the financial statement. This information is necessary for a fair presentation of financial position and results of operations. notes are required to make the financial statement clear and understandable. Specific notes will vary from LEA to LEA. depending on the individual circumstances. Therefore sample notes are not provided. Rather. a list of items has been developed that should be considered for inclusion in the notes. The list includes. but is not limited to:

Summary of significant accounting po licies

statutory violations

property taxes

commitments

long-term debt

litigation

fixed assets

contingent liabilities

pensions

subsequent events

fund def ic its

SEPTEMBER 1. 1983. ISSUE

PAGE 151-10

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART IV

APPENDIX B (CONTINUED)
A piece of equipment that is simply bolted or screwed to the floor, such as a heavy lathe or desk, and that can be moved as a unit once these fasteners have been removed, is "movable equipment". The term movable refers to permanency of installation and not to size or weight.
Selecting the Level of Control for Supplies and Equipment
LEA managers carry great responsibilities for stewardship of the funds and property of the LEA. They are responsible for tracking and periodically reporting on the condition of these financial and physical resources. A major decision in devising methods for carrying out these responsibilities is selecting the level of control to be applied to various kinds of supplies and equipment.
The level of control to apply to any supply or equipment item can be thought of as the amount of time and effort spent in keeping track of the item and the amount of information kept about the condition and whereabouts of the item. The level of control applied to a supply or equipment item usually falls into one of three broad categories:

/
SEPTEMBER 1, 1983 (B)

PAGE 152-4

GEORGIA FINANCIAL
ACCOUNTING HANDBOOK PART IV

APPENDIX C
ADVISORY COMMITTEE FOR FINANCIAL ACCOUNTING Mr. Lennard Thompson. Administrative Assistant. Colquitt County. Committee Chairman Mr. J. B. Blount. Controller. Richmond County Schools Mr. Bob Clay. Superintendent. Lee County Schools Mr. David Crews. Assistant Superintendent. Gwinnett County Schools Mr. Clint Dobbs. Director of Financial Audits. State Department of Audits and Accounts Mrs. Betsy Fordham. Administative Assistant. Baldwin County Schools Mr. Bob Fowler. Associate Superintendent. Dougherty County Schools Dr. Chuck Green. Superintendent. Spalding County Schools Mr. Harold Grindle. Administrative Assistant. Fulton County Schools Mr. John Grindle. Superintendent. Fulton County Schools Mr. Jim Puckett. Superintendent. Buford City Schools Mr. Bill Rogers. Assistant Superintendent. Cobb County Schools Mrs. Iris Sidwell. Bookkeeper. Fitzgerald City Schools Mr. Jack Thomas. Director of Finance. Spalding County Schools
State Department of Education Staff Working with the Committee H. F. Johnson. Jr . Associate State Superintendent. Administrative Services Mr. David Lariscy. Director. Fiscal Services Division Mr. Arvil Ensley. Administrator. Accounting Services Section Mr. Warren Post. Administrator. Financial Review Section Mr. Jerry Wootan. Consultant. State Department of Audits and Accounts

SEPTEMBER 1. 19B3

(B)

PAGE 153-1

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART IV

APPENDIX B (CONTINUED)

An LEA can take two basic approaches to distinguish between supplies and equipment in the decision-making situations just mentioned: (1) adopt a predetermined list of items, classifying each entry as either a supply or an item of equipment; or (2) adopt a set of criteria to be used in making its own classification of supply and equipment items. Each of these approaches is
discussed in the sections which follow.

The Disadvantages of a Supply/Equipment List

Several U.S.E.D. Publications have provided detailed lists of material
items used in LEA operations, identifying each entry as either a supply or an equipment item. These lists have been helpful to many users, but they have at least four inherent drawbacks:

1. Various State and Federal aid programs offer supply/equipment
categorizations which conflict with one another; 2. Technological and philosophical changes in education continued to
occur at an ever-increasing pace. It is impractical to list and classify the thousands of materials and devices used in LEAs today, particularly in vocational educational curricula. Therefore, without periodic updates, supply/equipment list quickly become obsolete; 3. Classifications of certain items change, due to changes in price or technology. For example, most LEAs classified hand-held,
mini-calculators as equipment several years ago when they cost over $100. Now that the price of these items has dropped to the $5 and $25 range, some LEAs are changing the classification of these items
to supplies; 4. Users tend to treat the list as comprehensive and up-to-date, even
when warned otherwise.

For these reasons, developing universally applicable and easily updatable supply/equipment list impractical. Instead of presenting a list which might
raise as many issues as it would propose to resolve, this guide suggests that the distinction between supplies and equipment can better be made through consistent, Statewide application of uniform criteria. If an LEA wishes to supplement these criteria with a list, Handbook II, Revised, 1973, provides the most current one.

Criteria for Distinguishing Supply and Equipment items

Some Federal, State, and local laws and regulations, usually in the form
of funding programs, present conflicting criteria for distinguishing between supplies and equipment. The criteria below are based on a combination of the most practical guidelines from these sources. Unless otherwise bound by Federal, State, or local law, LEAs should use these criteria in their supply/equipment classification decisions. In cases where the distinction is unclear, the LEA, as always, must apply reason and good judgement in making
its decision.

SEPTEMBER 1, 1983 (B)

PAGE 152-2

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART IV

I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I

APPENDIX B
Supplies and Equipment
U.S.E.D.'s Handbook II, Revised, provided a list of several hundred items commonly used by local education agencies (LEAs), identifying each as supply or equipment. Rather than present a list, another U.S.E.D. document, Handbook III, Revised, offers a set of guidelines for distinguishing supplies and equipment. Financial Accounting has adopted this latter technique. Accordingly, this appendix discusses the importance of distinguishing between supplies and equipment and suggests criteria for making that decision. The majority of this appendix is taken directly from Handbook III, Revised.
Reasons for Distinguishing Between Supplies and Equipment
Education agencies have found it useful to distinguish between supplies and equipment for several reasons:
1. This distinction may assist in deciding how to control or keep track of an item. For example, some funding programs require that all equipment items be inventoried annually. At the same time, many LEAs will inventory certain items, regardless of whether they are equipment or whether they are required by law to do so;
2. The distinction may bear on insurance decisions. Supplies and movable equipment are usually insured as part of the contents of buildings, while built-in equipment is usually insured as part of the structure;
3. The distinction is important in identifying the funds with which to purchase a given item. For example, some funds, such as bond funds, typically cannot be used to purchase supplies, while other funds might exclude the purchase of equipment;
4. The distinction can affect calculations of cost of operations and cost per student. While most LEAs include expenditures for supplies in calculating current operating costs, many LEAs treat equipment differently. Some include all expenditures for replacement equipment in the current operating cost total, excluding the cost of new and additional equipment. Others prorate the cost of all equipment over several years. In both cases, the incorrect classification of supplies or equipment items can affect the resulting cost calculations;
5. The distinction can affect the amount of State or Federal aid allocated to an LEA. Several funding sources use per-student costs as part of their funding formula (see the preceding paragraph). Most funding programs limit the ways in which their funds may be spent, sometimes excluding either supplies or equipment from the list of eligible purchases.

SEPTEMBER 1, 1983 (B)

PAGE 152-1

GEORGIA FINANCIAL ACCOUNTING HANDBOOK
PART IV

SECTION III (SCHOOL FOOD AND NUTRITION)
CHAPTER 153
MEALS FURNISHED TO SCHOOL FOOD EMPLOYEES
In a recent memorandum, the Social Security Administration (SSA) stated that "The value of meals provided employees is wages if it is understood by the employer and employee that the employer will furnish meals on a regular basis". We suggest that each school system protect themselves by requesting a status determination from:
Regional Commissioner SSA 101 Marietta Tower Atlanta, Georgia 30323

JULY 15, 1981

GEORGIA ACCOUNTING HANDBOOK FOR LOCAL SCHOOL SYSTEMS

PAGE 153.1

APPENDIX D
FULL TITLE OF HANDBOOKS IN THE STATE EDUCATIONAL RECORDS AND REPORTS SERIES

Handbook 1: The Common Core of State Educational Information: Bulletin 1953,
No.8. Compiled by Reason, Paul L., Emery M. Foster, and Robert F. Will. Washington: U.S. Office of Education, 1953. 116 pp.
"This Handbook contains the items, with their definitions, which comprise the common core of State Educational information that should be available annually in each State department. of educat.ion. 11 The 516 listed it.ems pert.ain t.o Stat.e Education Agencies, Intermediat.e Administrative Unit Organization, Personnel and Finance for Public Elementary, Secondary, Adult, and Community College Programs of Education, Nonpublic Elementary and Secondary Day Schools and other Full Time Day Schools and Inst.it.utions, Excluding Colleges and Universities. A minimum list of items which should be available in t.he fall is given. (Out of print).

Handbook II: Financial Accounting for Local and State School Systems. Bulletin 1956, No.4. Complied by Reason, Paul L., and Alpheus L. White. Washington: U. S. Office of Educat.ion, 1957. 235 pp.
"This Handbook is the basic guide to financial accounting for local and St.ate school systems in the United St.ates." It was "recommended that Federal, Stat.e and local agencies effect it.s use promptly and
complet.ely." There was recognition that "Handbook II will need to be revised from time to time to meet changing financial account.ing needs" and t.hat "through such action, its effectiveness may be maintained." (Out. of Print).

Handbook II, Revised: Financial Accounting: Classificat.ions and Standard

Terminology for Local and State School Systems. DHEW Publication No. (OE)

73-11800, Washington: U. S. Office of Education, 1957. 235 pp. Compiled by

Robert.s, Charles T. and Allan R. Lichtenberger.

"This Handbook . . . replaces original Handbook II

. The revision has

been cooperatively developed, as was t.he original, and is designed to

serve the same users more effectively as a vehicle for accumulat.ing data

for management decisions concerning educational programs and students."

It was recognized that. "Handbook II is subject to updating and revision at

short int.ervals . . . for management purposes . . . "

Handbook II, Revised, Second Revision; Financial Accounting for Local and
State School Systems. Barr, Richard H., Project Officer. Washington: National Center for Education Statistics, 1980. 178 pp.
"This Handbook replaces Handbook II, Revised. It has been designed as a national standard for school dist.rict accounting and financial report.ing. 11 The emphasis was to insure conformance with generally accept.ed account.ing principles (GAAP) as they apply to governmental accounting.

OCTOBER 16, 1983, ISSUE

PAGE 154-1

GEORGIA FINANCIAL
ACCOUNTING HANDBOOK PART IV

APPENDIX D
ULL TITLE OF HANDBOOKS IN THE STATE EDUCATIONAL RECORDS AND REPORTS SERIES (CONTINUED)
Handbook lIB: Principles of Public School Accounting. OE 22025. Adams, Bert K., Quentin Hill, Joseph A. Perkins, Jr., Philip S. Shaw. Washington: National Center for Educational Statistics, 19&7. 272 pp.
As an extension of the State Educational Records and Reports Series, this Handbook is a procedural manual, supplementing the other Handbooks in the Series. It is designed for persons not having extensive training and experience in school financial accounting and is intended to be useful in all schools as a means of self-improvement, inservice development, and a ready reference. (Out of Print)
Bulletin No. 21: Financial Accounting for School Activities. Compiled by Samuelson, Everett V., George G. Tankard, Jr., and Hoyte W. Pope. Washington: U. S. Office of Education, 1959. 190 pp.
This Handbook is a supplemental volume to Handbook II: Financial Accounting for Local and State School Systems. It contains a standard classification and definitions of accounts for handling receipts and expenditures for school activities and presents a fund system of accounting to illustrate how these accounts may be used. It is recommended that the Handbook be used as tithe guide for financial accounting for school activities in every school throughout the Nation. II Revisions are recommended based on I'experience gained through use of the handbook." (Out of Print)
Handbook III: Property Accounting for Local and State School Systems. Bulletin 1959, No. 22. Compiled by Reason, Paul L., and George G. Tankard, Jr. Washington: U. S. Office of Education, 1959. 194 pp.
This handbook is the basic guide to property accounting for local and State school systems in the United States. It was undertaken "at the request of a number of national organizations. 11 Each item provides information that (1) is important to a local school district in the operation of the school system; (2) is important to school districts throughout the country; (3) is needed for comparisons among school districts; and (4) can be maintained as a record with reasonable effort. The Handbook "will need to be revised from time to time to meet changing property accounting needs." (out of Print)
Guide for Implementaing Handbook II: Property Accounting for Local and State School Systems. OE-23029, Cir, 797. Roberts, Charles T. Washington: U. S. Office of Education, 19&6. 54 pp.
I'This Guide has been developed to serve as a suggested procedural manual for local and State school systems officials seeking assistance in setting up school facilities data systems. II It contains suggestions about types of organizations to implement the project, to stimulate interest, to operate the project, and to evaluate its use. Some manual and automatic data systems for recording and reporting on sites, buildings, and equipment are illustrated. (Out of Print)

OCTOBER 16, 1983, ISSUE

PAGE 154-2

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART IV

APPENDIX D

FULL TITLE OF HANDBOOKS IN THE STATE EDUCATIONAL RECORDS AND REPORTS SERIES (CONTINUED)

Handbook III, Revised: Property Accounting: A Handbook of Standard
Terminology and a Guide for Classifying Information about Education Property. Seibert, Ivan N., Project Officer. Washington: National Center for Education Statistics, 1977. 131 pp.
This revised edition of Handbook III provides property terminology, definitions, concepts, and a classification structure for property information." These are intended to assist in planning and decision making to help ensure compatible and comparable recording and reporting of data on education property. This handbook addresses property used in elementary, middle, secondary, and community (adult) education.

Handbook IV: Staff Accounting for Local and State School Systems. Bulletin 19&5, No. 18. Compiled by Lichtenberger, Allan R. and Richard J. Penrod.
Washington: U. S. Office of Education, 19&5. 174 pp.
"This Handbook is a basic guide that identifies and defines those items of information about school staff members which need to be collected and
maintained by local and State school systems in the United States." Handbook IV will need to be revised from time to time to meet changing staff accounting needs." (Out of Print)

Handbook IV: Staff Accounting: Classifications and Standard Terminology for Local and State Schools Systems, 1974. Roberts, Charles T. Washington: National Center for Education Statistics, 1974. 139 pp.
This revision of Handbook IV contains "classifications, definitions and coding schemes for the data elements about staff members necessary to assist administrative decision making . . . The handbook covers information about staff members in both public and nonpublic educational institutions, including elementary, middle/junior high, and high schools, vocational-technical schools, and special education and adult/continuing education learning centers . . . The basic purpose of Handbook IV is to provide a framework for the accumulation of necessary data about staff members . . . The handbook is intended only as a guide . . . "

Handbook V: Pupil Accounting for Local and State School Systems. Bulletin

No. 3&, 19&4. Compiled by Putnam, John F. and George G. Tankard, Jr.

Washington: U. S. Office of Education, 19&4. 133 pp.

This Handbook is a basic guide for items of information to be used in

pupil accounting in local and State school systems in the United States.

"It classifies and defines specific items of information about pupils and

related terminology. It provides the basis for maintaining records about

all pupils under the jurisdiction of local boards of education or other

units operating schools . . . Use of the terminology can improve the

quality of education by facilitating the . . . evaluation, . . . planning

and . . . operation of education systems throughout the United States. It

is anticipated that it will be necessary to reappraise all items and

definitions at some future date. lt (Out of Print)

GEORGIA FINANCIAL

ACCOUNTING HANDBOOK

OCTOBER 1&, 1983, ISSUE

PAGE 154-3

PART IV

APPENDIX D

FULL TITLE OF HANDBOOKS IN THE STATE EDUCATIONAL RECORDS AND REPORTS SERIES (CONTINUED)

Handbook V, Revised: STUDENT/PUPIL ACCOUNTING: Standard TerminoloQv and Guide
for Managing Student Data in Elementary and Secondary Schools, Community/Junior Colleges, and Adult Education. Putnam, John F. Washington: National Center for Education Statistics, 1974. 230 pp.
The new edition of the handbook appears similar to its predecessor in its organization and its prime function remains to identify the terms and definitions most needed at the current time for collecting, using, and reporting data about students. There are major differences in scope and content. Confidentiality of student information is treated. The concept of continuous student accounting is stressed.

Handbook VI: Standard Terminology for Curriculum and Instruction in Local and
State School Systems. Compiled and edited by Putnam. John F. and W. Dale Chismore Washington: National Center for Education Statistics, 1970. 319 pp.
liThe terminology, definitions, and classifications in this handbook -
representing, in effect, a language of communication - are the result of 5 years of cooperative effort of some 70 national organizations and the U. S. Office of Education. The handbook is a guide for local and State school systems for items of information used in keeping records and making reports about curriculum and instruction. 11 It classifies and defines specific items of information about development and instruction, and includes related terminology. The handbook applies to elementary, middle, and secondary schools, junior colleges and adult education arrangements. Consistent "use of
the terminology in this handbook can help improve evaluation, realistic planning, and efficient operation of educational systems throughout the United
States. II It is anticipated that it will be necessary to reappraise all items
and definitions at some future date.

Handbook VII: The State Education Agency: A Handbook of Standard Terminology and
a Guide for Recording and Reporting Information About State Education Agencies.
Compiled and edited by Harris, Yeuell Y. and Ivan N. Seibert. Washington:
National Center for Education Statistics, 1973. 168 pp. This handbook is "devoted to the work of the State instrumentalities which
serve as trustees of American education." State education agencies "are the fulcrum in the American system of education. II The handbook is intended to comprehensively reflect the broad responsibility of State education agencies, current and future. Appropriate revision will be necessary to keep abreast of
the emerging responsibilities of State education agencies. The handbook classifies and defines terms concerned with State education authorities, the functions of State departments of education, the personnel and property of State education authorities and State departments of education, and the financial operations of state departments of education. The terminology contained in this handbook provides a plan according to which information
about State education agencies can be recorded, reported, and studied, and it
permits records to be prepared with greater speed, accuracy and flexibility.

OCTOBER 16, 1983, ISSUE

PAGE 154-4

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART IV

APPENDIX D
FULL TITLE OF HANDBOOKS IN THE STATE EDUCATIONAL RECORDS AND REPORTS SERIES (CONTINUED)
Handbook VIII: Community Information in Education. Harris, Yeuell Y., Project Officer. Washington: National Center for Education Statistics, 1980. 2Sb pp.
A handbook of terminology and definitions about community characterist.ics which are significant in educational administration and planning. It is designed for a wide range of users, not professional statisticians, and is for units as small as a school attendance area and as large as a State. It encompasses a variety of statistical data with particular emphasis on Census data and locally generated data. The handbook intends to aid in the solution of such community educational issues as securing financial support for schools, recognizing curriculum, involving citizenry in school planning and utilizing community resources. This handbook is primarily external to the school and its operation and as such departs from the other handbooks in the Series. Periodic revisions are expected.
Handbook IX: A Handbook of Standard Termninolgv About Learning Opportunities for Adults (tentative title). Putnam, John F., Project Officer. Washington: National Cent.er for Education St.at.istics. Forthcoming (l978).
Covers the field of "Adult/Continuing Education" wit.h respect. t.o such areas as learner characterist.ics, t.ypes of programs, sponsorship and staff.
Handbook X: Educat.ional Terminology; A Handbook of Standard TerminoloQV and a Guide for Recording and Reporting Informat.ion about Educational Technology. Seibert., Ivan N., Project. Officer. Washington: Nat.ional Center for Education Statistics, 1975. 27b pp.
This handbook is intended to aid in t.he gat.hering, compiling, and interpret.ing of dat.a relating to the application of technology to instruct.ion. It assists by providing standardized terms and definitions and by providing a struct.ure showing the interrelationships of those t.erms.
Handbook XI: A Classification of Educational Subject Matter. Hill, Quentin M. and W. Dale Chismore, Project. officer and Consultant, respectively. Washington: National Cent.er for Educat.ion St.atistics, 1978. 223 pp.
This handbook is a classification of educational subject matter as it currently exists from pre-elementary through postdoctoral levels. Its primary purpose is to facilitate the recording, reporting, and exchange of data about subject matter. Although direct.ed primarily t.oward formal educational agencies and institutions, t.he document will facilitate communications and understanding among a wide range of people having different. int.erests and needs related t.o subject mat.ter and instructional program. The handbook makes a strong distinct.ion between subject matter and instructional program.

OCTOBER lb, 1983, ISSUE

PAGE 154-5

GEORGIA fINANCIAL
ACCOUNTING HANDBOOK PART IV

APPENDIX D
fULL TITLE OF HANDBOOKS IN THE STATE EDUCATIONAL RECORDS AND REPORTS SERIES (CONTINUED)
Combined Glossary: Compiled and edited by Seibert, Ivan N. and W. Dale Chismore. Washington: National Center for Education Statistics, 1974. 293 pp.
An alphabetical listing of terms and definitions covering the following handbooks: I, II, III, IV, V, lIB, VI, VII, IIR, IVR, VR. Coded to indicate source.
No Number: A Classification of Instructional Programs; Gerald S. Maitz, National Center Education Statistics, 1981. 215 pp.
10 complete and update classification structure, terminology, and definitions describing them.
Handbook lIB, Principles of Public School Accounting, Revised; Richard H. Barr, Project Officer, National Center for Educational Statistics; 1980. 434 pp.
10 update Handbook lIB for changes in governmental accounting since 1967 and to incorporate changes in account classifications contained in the first and second revisions of Handbook II.

OCTOBER 16, 1983, ISSUE

PAGE 154-6

GEORGIA FINANCIAL
ACCOUNTING HANDBOOK PART IV

APPENDIX F
TERMINOLOGY
- A-
ABATEMENT - a reduction of a previously recorded receipt or expenditure item
by a refund or a rebate or the collection of fees for lost or damaged property.
ACCOUNT - a descriptive heading under which are recorded financial transactions that are similar in terms of a given frame of reference, such as purpose, object or source.
ACCOUNTABILITY - the capability and responsibility to account for the receipt, expenditure and custody of money and the commitment of other resources in terms of the results achieved. This involves both the stewardship of money and other resources and the evaluation of achievement in relation to other goals.
ACCOUNT GROUP (OR "GROUP OF ACCOUNTS") - selected accounts which are used to record and control the school system1s fixed assets and unmatured general long-term liabilities. Fixed assets and long-term liabilities of proprietary and trust funds should be accounted for through those funds.
ACCOUNTING - the art of classifying, recording, summarizing, reporting and interpreting the results of financial activities.
ACCOUNTING PERIOD - any calendar period at the end of which the financial condition and results of operations are determined; usually this is a month, calendar year or fiscal year. Georgia law provides that "Each fiscal year shall begin on the first day of July and end on the thirtieth day of June of the following year."
ACCOUNTING PRINCIPLES - that body of knowledge accepted by the accounting profession as the uniform minimum standards of accounting and financial reporting.
ACCOUNTING SYSTEM - the records, procedures, methods and means utilized in classifying, recording, summarizing, analyzing, interpreting and reporting on financial position and the results of financial operations.
ACCOUNT NUMBER - a number assigned to an account to be used in lieu of the account title in recording transactions. The account number used generally is much shorter than the account title and its function is to reduce the work involved in writing references to the account.
ACCOUNTS PAYABLE - amounts owed on open accounts to persons, firms, corporations or other units of government for goods and services received from them.

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PAGE 156-1

GEORGIA FINANCIAL
ACCOUNTING HANDBOOK PARl IV

APPENDIX F

TERMINOLOGY (CONTINUED)

- A (CONTINUED) -

ACCOUNTS RECEIVABLE - amounts receivable on open accounts from persons, firms, corporations or other units of government for goods and services provided to them.

ACCRUALS - revenues which have been recorded when earned or expenditures which have been recorded as soon as the liability for them exists.

ACCRUAL BASIS - the basis of accounting under which revenues are recorded when earned or when levies are made, and expenditures are recorded as soon as they
result in liabilities, regardless of when the revenue is actually received or the payment is actually made.

ACCRUE - to record revenues when earned or when levies are made, and to record expenditures as soon as they result in liabilities, regardless of when the revenue is actually received or the payment is actually made.

ACCRUED EXPENSE - expenses which have been incurred and have not been paid as of a given date.

ACCRUED INTEREST ON INVESTMENTS PURCHASED - interest earned on investments purchased between the last interest payment date and the date of purchase.

ADJUSTING ENTRIES - entries made at the end of an accounting period to bring accounts up to date.

AD VALOREM TAXES - taxes levied on the assessed valuation of real and personal property.

ALLOT - to divide an appropriation into amounts for specific purposes or for specific periods.

ALLOTMENT - the amount set aside for a certain purpose or for a certain period.

~LLOTMENT LEDGER - a subsidiary ledger which contains an account for each allotment and also contains the amounts expended and encumbered and the
balance of the allotment remaining.

AMORTIZATION OF DEBT - payment of an amount owed according to a specified schedule of times and amounts.

APPRAISED VALUE - the value established by appraisal or estimate.

APPROPRIATION - an authorization granted by a legislative body to make expenditures and incur obligations for specific purposes.

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PAGE 156-2

GEORGIA FINANCIAL
ACCOUNTING HANDBOOK PART IV

APPENDIX F

TERMINOLOGY (CONTINUED)

- A (CONTINUED) -

APPROPRIATION LEDGER - a subsidiary ledger containing an account for each appropriation. Each account will include the amount appropriated, transfers
to or from that appropriation, expenditures and encumbrances against that appropriation, and the unobligated balance.

ASSESSED VALUE - value established as the basis for taxation against which the tax levy is applied.

ASSETS - things of value owned.

AUDIT - the examination of records and documents and the securing of evidence for one or more of the following purposes: (a) determining the propriety of proposed or completed transactions; (b) ascertaining whether all transactions have been recorded; (c) determining whether transactions are accurately recorded in the accounts and reflected in the statements drawn from the
accounts.

- B-

BALANCE SHEET - a formal statement of assets, liabilities and fund equity as of a specified date.

BANK RECONCILIATION - a statement which is prepared on receipt of the bank statement which composes the difference between the bank balance shown on the
books and the balance shown on the bank statement.

BASIS OF ACCOUNTING - refers to the point in time when revenues, expenditures, or expenses (as appropriate), and the related assets and liabilities are recognized in the accounts and reported in the financial statements.

BOND DISCOUNT - the excess of the face value of a bond over the price at which it is acquired or sold.

BOND PREMIUM - the excess of the price at which a bond is acquired or sold over its face value.

BONDED DEBT - the total amount of debt owed on outstanding bonds.

BOND PROCEEDS RECEIVABLE - an account established to record the amount at which bonds were sold which has not yet been collected.

BONDS - written promises, generally under seal, to pay a specified sum of

money, called the face value, at a fixed time in the future, called the date

of maturity, and usually carrying interest at a fixed rate, payable

periodically.

GEORGIA FINANCIAL

ACCOUNTING HANDBOOK

AUGUST 16, 1983, ISSUE

PAGE 156-3

PART IV

APPENDIX F
TERMINOLOGY (CONTINUED)
- B (CONTINUED) -
~ONDS AUTHORIZED - UNISSUED - bonds authorized by referendum of the voters or by the governing body (where they were authorized by law to do so) which have not been issued.
~ONDS PAYABLE - the face value of bonds issued and outstanding.
BOOK VALUE - the value at which an asset is carried in the records.
BOOKKEEPING - the term applied to any of several technical functions in the general area of accounting, such as the preparation of journal entries, posting to assigned records, preparation of payrolls, reviewing invoices, etc.
BUDGET - a plan of financial operations consisting of an estimate of expenditures for a given period or purpose and the proposed means of financing them.
BUDGETARY ACCOUNTS - accounts which reflect budgeted items and amounts and their status. Such accounts include estimated revenue, appropriations, expenditures, and encumbrance accounts in the general ledger along with supporting subsidiary ledgers.
BUDGETARY CONTROL - management of financial affairs in accordance with the approved budget with a view toward keeping expenditures within authorized amounts.
- C-
CAPITAL - includes major facilities such as land and sites or grounds improvements, construction of buildings, additions to buildings or remodeling of existing buildings, and initial, additional or replacement equipment.
CAPITAL OUTLAY - an expenditure (or outlay of funds) which results in the acquisition of fixed assets or additions to fixed assets.
CAPITAL PROJECT FUND - a fund used to account for resources provided for the acquisition or construction of major capital facilities (other than facilities of enterprise funds, internal service funds or trust funds). Capital project funds may be financed by the sale of bonds, State or Federal grants, special tax levies, or transfers of resources from other funds.
CASH - consists of currency, checks, postal or express money orders, and bankers' drafts on hand, or on deposit with an agent designated as custodian of cash, or on deposit with a bank or banks.

AUGUST 1&, 1983, ISSUE

PAGE 15&-4

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART IV

APPENDIX F

TERMINOLOGY (CONTINUED)

- C (CONTINUED) -

CASH BASIS - the basis of accounting under which revenues are recorded when actually received and expenditures are recorded when cash is disbursed.

CASH DISCOUNT - an allowance given by vendors for payment of invoices within a stated period of time.

CHART OF ACCOUNTS - a list of all accounts used in an individual accounting system. Accounts in the chart are arranged with all other accounts of a similar nature; that is, all accounts of a particular dimension are listed with all others of that dimension and assigned account numbers in the same series. Dimensions used include assets, liabilities, fund balance and reserves, funds, project/reporting, source of revenue, programs, functions and objects. The chart of accounts includes the name of the account and the assigned number.

CHECK - a written order on a bank to pay a specified sum of money on demand to a person named on the check, to his order or to bearer out of money on deposit to the credit of the maker.

CLOSING ENTRIES - entries which are made at the end of the accounting period to transfer balances in the general ledger revenue, expenditures, appropriations, and estimated revenue accounts into the fund balance account.

CODING - (a) assigning numbers to accounts in such a manner that the numbers assigned may be used as abbreviations for account titles in coding invoices, preparing journal entries, taking trial balances, etc; (b) entering account numbers on invoices for the purpose of indicating to which accounts purchased items are to be charged or entering account numbers on receipts to show to which accounts funds received are to be credited.

CONTINGENT LIABILITIES - items which may become liabilities if certain contingencies occur. for example, a law suit may be pending or an unsettled disputed claim may be pending against the school system. If either of these matters is settled against the school system, a real liability will exist. Until a decision is reached or settlement is made, a contingent liability exists.

CONTRACTED SERVICES - services rendered by personnel who are not on the payroll, including all related expensed covered by the contract.

CONTRACTS PAYABLE - amounts due on contracts for goods and services.

CONTROL ACCOUNTS - accounts in the general ledger or other ledgers for which subsidiary ledgers are maintained.

AUGUST 16, 1983, ISSUE

PAGE 156-5

GEORGIA fINANCIAL ACCOUNTING HANDBOOK PART IV

APPENDIX F
TERMINOLOGY (CONTINUED)
- C (CONTINUED) -
COST ACCOUNTING - that phase of accounting which provides for the accumulation of costs incurred to accomplish a specific purpose, to carryon a specific program or service, or to complete a unit of work.
COST BENEFITS - the results of analyses which provide the means for comparing the resources to be allocated to a specific program with the results likely to be obtained from it; or, analyses which provide the means for comparing the results likely to be obtained from the allocation of certain resources toward the achievement of alternate or competing objectives.
COST CENTER - a segment of a program or function or an operational or budgetary unit that is separately recognized in the agency's records, accounts and reports.
COST EFFECTIVENESS - analyses used to measure the extent to which resources allocated to a specific objective under each of several alternatives actually contribute to accomplishing that objective, so that different ways of gaining the objective may be compared.
COST LEDGER - a ledger used to accumulate costs incurred to accomplish a specific purpose, to carryon a specific program or service, or to complete a unit of work.
CREDIT - an entry on the right-hand side of an account.
CURRENT ASSETS - assets which are likely to be used up, or converted into cash, within the next year.
CURRENT EXPENSE - in public school accounting, this term includes all expenditures for operating the public schools, except debt service and capital outlay. It includes total charges incurred for operations whether paid or unpaid.
CURR~NT FISCAL PERIOD - the fiscal period presently in progress.
CURRENT LIABILITIES - debts which are payable within a short period of time, usually within one year.

- D-

DEBT SERVICE FUND - the fund used to finance and account for payment of interest and principal on all general obligation debt.

DEBIT - an entry on the left side of an account.

AUGUST 10, 1983, ISSUE

PAGE 150-f>

GEORGIA FINANCIAL
ACCOUNTING HANDBOOK PART IV

APPENDIX F
TERMINOLOGY (CONTINUED)
- D (CONTINUED) -
DEPRECIATION - loss in value or service life of fixed assets because of wear and tear through use, elapse of time, inadequacy or obso1esence. It is a process which prorates the cost of a fixed asset over its useful life rather than recognizing the total cost in the month or year in which purchased.
DISBURSEMENTS - payments in cash.
DISCOUNT ON BONDS SOLD - when bonds are sold at a price less than face value, the discount is the difference between face value and the selling price.
DOUBLE ENTRY - a system of accounting requiring that every transaction be recorded by both debits and credits in equal total amounts to appropriate accounts so as to maintain the integrity of the basic accounting equation that assets less liabilities equals equity.

- E-

ENCUMBRANCE - an obligation arising from the issuance of a purchase order, contract or salary commitment which is chargeable to a particular
appropriation or appropriations and for which a part of that appropriation or those appropriations must be reserved.

ENTERPRISE FUND - a fund used to account for services provided to the general public (including students) on a user charge basis. May also be used to account for operations where the governing body has decided that the determination of revenue earned, expenses incurred, and/or net income is
appropriate for accountability, capital maintenance, management control,
public policy. or other purposes.

ENTRY- the recording of a transaction in a journal or the posting from the journal to the appropriate ledger account or accounts.

EQUITY - the mathematical excess of assets over liabilities and reserves. This mathematical excess is also known as net worth.

ESTIMATED REVENUE - if the accounts are kept on the accrual basis, this term
designates the amount of revenue estimated to accrue during a given period regardless of whether or not it is collected during that period; if the accounts are kept on a cash basis, the term designates the amount of revenues estimated to be collected during a given period.

EXPENDITURES - charges incurred, whether paid or unpaid, which are presumed to benefit the current fiscal year.

AUGUST 16, 1983, ISSUE

PAGE 156-7

GEORGIA FINANCIAL ACCOUNTING HANDBOOK
PART IV

APPENDIX F
TERMINOLOGY (CONTINUED)
- E (CONTINUED) -
EXPENSES - decreases in equity. The principal way in which expenses differ from expenditures is that expenses include the cost of using fixed assets over time. even though expenditures for those costs may not be reflected in current financial activity.
- F-
FACE VALUE - the amount of the debt stated in the debt instrument.
FINANCIAL REPORTING -- the process of communicating information concerning the financial position and the results of financial operations. Financial reports may be written or oral. formal or informal. and technical or non-technical. They are usually classified according to their use as internal or external and according to their timing as interim or annual.
FISCAL PERIOD - see accounting period.
FISCAL SERVICES - consists of activities involved with managing and conducting fiscal operations. Includes budgeting. receiving and disbursing. financial accounting. payroll. purchasing, auditing. budget management, cash management and grants management.
FIXED ASSETS - land, buildings. machinery and other equipment. and furniture which will be held or used over a long period of time.
FUND - an independent accounting entity with its own assets. liabilities and fund balance.
FUND BALANCE - the excess of the assets of a fund over its liabilities and reserves.

- G-

GENERAL FIXED ASSET GROUP OF ACCOUNTS - Fixed assets purchased by enterprise. internal service. and trust funds are charged to those funds. General fixed assets purchased by all other funds belong to the governmental unit as a whole
and not to any specific fund; therefore. these fixed assets are represented in
an "account group" rather than in a fund.

GENERAL FUND - the fund used to account for all resources not required to be accounted for in another fund.

GENERAL LONG-TERM DEBT GROUP OF ACCOUNTS - the accounts used to record the

principal amount of all long-term liabilities excluding those of enterprise.

internal service or trust funds.

GEORGIA FINANCIAL

ACCOUNTING HANDBOOK

AUGUST 16. 1983. ISSUE

PAGE 156-8

PART IV

APPENDIX F
TERMINOLOGY (CONTINUED)
- G (CONTINUED) -
GRANT - a contribution, either in money or material goods, usually made by one governmental unit to another governmental unit; however, grants may be made by a governmental unit to a non-governmental recipient which usually would be a not-for-profit entity.

-I-

IMPREST SYSTEM - a system in which a fixed amount of money is set aside for making minor disbursements. At certain intervals, a report is rendered of the amount disbursed, and cash is replenished for the amount of the disbursements, ordinarily by check drawn on the fund or funds from which the items are payable. The total of cash plus unreplenished disbursements must always equal
the fixed sum of cash authorized for the imprest system.

INDIRECT COSTS - those costs which cannot be readily identified with a specific program, function, activity or service.

INDIVIDUAL EARNINGS RECORD - a record maintained for each employee on which are
recorded all earnings, withholdings and net pay, along with information concerning the employee's address, marital status, sex, tax status, etc. It is
essential an earnings record be maintained for each employee regardless of whether the record is maintained by hand, by accounting machine or by computer. The record is the source of data used in the preparation of quarterly and annual payroll and withholding reports.

INTEREST - a fee charged a borrower for the use of money.

INTERFUND TRANSFER - money which is taken from one fund under the control of the board of education and added to another fund under the board's control.

INTERNAL AUDIT - consists of anyone or more of the following: evaluating the adequacy of the internal control system; verifying and safeguarding assets; reviewing the reliability of the accounting and reporting systems; and ascertaining compliance with established policies and procedures.

INTERNAL CONTROL - the organization of employees' duties and records and procedures so as to make it possible to exercise effective accounting control over assets, liabilities, revenues and expenditures. Under a system of internal control, procedures to be followed are laid down; they call for proper
authorizations by designated officials for all actions taken. Work of employees is subdivided so that no one employee performs a complete cycle of operations; for example, an employee handling cash would not post accounts receivable or accounts payable records.

AUGUST 16, 1983, ISSUE

PAGE 156-9

GEORGIA FINANCIAL ACCOUNTING HAND800K PART IV

APPENDIX F
TERMINOLOGY (CONTINUED)
- I (CONTINUED) -
INTERNAL SERVICE FUNDS - these funds are used to account for services provided exclusively to other departments of local government on a cost reimbursement basis. They are established to centralize activities and to promote economic, efficient and effective use of resources; they would be established to centralize activities such as printing and duplicating, purchasing and stores, or motor pools. The goal of such funds is to cover both direct and indirect costs of operations by user charges without producing a significant profit.
INVENTORY - a detailed list or record showing quantities, descriptions, values, units of measure and unit prices. A physical inventory usually is taken annually to either determine the quantities of items on hand or to verify a perpetual inventory. A perpetual inventory is maintained throughout the year and verified by a physical inventory.
INVESTMENTS - money put into intangible property for the purpose of obtaining an income or profit. (Georgia school systems are not authorized to invest in real property).
INVOICE - an itemized list of goods or services purchased from a particular vendor. It includes quantity, description, price, terms and date. It is the vendor's request of the purchaser for payment.

- J-
JOURNAL - the accounting record or records in which details of financial transactions are first recorded.
JUDGMENT - the amount to be collected or paid as the result of a court decision. If the judgment was issued in favor of the school system, a Judgment Receivable would be set up on the books, pending receipt; if it was issued against the school system, a Judgment Payable would be set up pending payment.

- L-

LEDGER - all of the accounts of a particular fund or all those detail accounts which support a particular general ledger account. For example, the revenue ledger supports the general ledger Revenue account, or, the expenditure ledger
supports the general ledger Expenditure account.

l~VY - (a) to impose taxes on specified assets; (b) the total of taxes or special assessments imposed by a governmental unit.

LIABILITIES - amounts owed. AUGUST 16, 1983, ISSUE

PAGE 156-10

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART IV

APPENDIX F TERMINOLOGY (CONTINUED)

- M-
MODIFIED ACCRUAL BASIS - the accounting basis in which revenues are recorded when they are available and measuarable, and expenditures are recorded when the liability is incurred.
- N-
NET CURRENT ASSETS - the mathematical excess of current assets over current liabilities.
NET INCOME - the excess of gross income for a given period over total operating expenses and income deductions for that period.
NET WORTH - the excess of the assets of a fund over its liabilities and reserves (see EQUITY).

- 0-
OBJECT - the commodity or service obtained from a specific expenditure.
OBLIGATIONS - amounts which the school system will be required to meet out of its resources, inclUding both liabilities and encumbrances.
OPENING ENTRIES - (a) entries made in the general journal to record the opening trial balance - this occurs only when ledger account balances are being recorded for the first time; (b) postings of entries in (a) above to the general ledger.
OPERATING STATEMENTS - statements which reflect changes in financial position during a given fiscal period and results of operations for that period.
OVERHEAD COSTS - elements of cost which are of such a nature that the amount applicable to the particular product or service possibly cannot be determined accurately or readily; usually they relate to those objects of expenditures which do not become an integral part of the finished product or service, such as rent, heat, light, supplies, etc.

- P-

PAYMENTS IN LIEU OF TAXES - payments made out of general revenues by a

governmental unit to the school system in lieu of taxes it would have had to

pay had its property been sUbject to tax on the same basis as privately owned

property.

GEORGIA FINANCIAL

ACCOUN1ING HANDBOOK

AUGUSl 1&, 1983, ISSUE

PAGE 15&-11

PARl IV

APPENDIX F
TERMINOLOGY (CONTINUED)
- P (CONTINUED) -
PAYROll - a list of individual employees entitled to pay, with the gross amounts due to each, authorized deductions for each, and the net amount due each.
PAYROll ACCOUNTING - includes establishing and maintaining payroll records; calculating gross pay, withho1dings and net pay, balancing total payrolls; requesting (or authorizing) transfer of funds from a general bank account to a payroll account, if one is used; and preparing accounting entries relating to payrolls and employee benefits.
PAYROLL REGISTER (OR JOURNAL) - a list prepared each pay period showing the name of each employee, the individual's gross pay, deductions and net pay.
PETTY CASH - a sum of money, either in the form of cash or a special bank account, set aside for use in making immediate payments of comparatively small amounts.
POSTING - the act of transferring to an account in a ledger the detail or summarized data contained in the general journal, cash receipts book or other similar books of original entry.
PREMIUM ON BONDS SOLO - that portion of the sales price of bonds in excess of the face value of the bonds.
PREPAID EXPENSES - those payments made during a fiscal period for benefits to be received in a succeeding fiscal period or periods.
PRINCIPAL OF BONOS - the face value of bonds.
PROPRIETARY ACCOUNTS - those accounts which show actual financial condition and'operations. Accounts involved are assets, liabilities, fund balances, revenues and expenditures.
PRORATING - the allocation of parts of a single expenditure to two or more accounts. The allocation is made in proportion to the benefits received by each account being charged.
PURCHASE ORDER - a written request to a vendor to provide material or services at a price set forth in the order.

REBATE - abatement or refund. RECEIPTS - increases in cash.

- R-

AUGUST 16, 19B3, ISSUE

PAGE 156-12

GEORGIA FINANCIAL ACCOUNTING HANDBOOK
PART IV

APPENDIX F
TERMINOLOGY (CONTINUED)
- R (CONTINUED) -
REFUND - the return of an over-payment or over-collection.
REQUISITION - a written request for specified articles or services. If those articles or services are available within the school system, the requisition would be filled from supply; if not available from within the system, they would be purchased or acquired by the purchasing officer.
RESERVE - an amount set aside for a specific purpose.
RESERVE FOR ENCUMBRANCES - a reserve representing the segregation of a portion of a fund balance to provide for unliquidated encumbrances.
RETAINED EARNINGS - excess of earnings over expenses of an enterprise fund or an internal service fund.
RETAINED PERCENTAGE - an agreed on percentage of a contractor's requisitions which is withheld from payment pending satisfactory completion of the construction project.
REVENUE - an addition to assets which does not incur an obligation and does not result from the exchange of property for money.
-S-
SECURITIES - bonds, notes, mort.gages, or ot.her forms of negotiable or non-negot.iable inst.rument.s.
SERIAL BONDS - long-t.erm obligations in which bot.h t.he principal amount and the int.erest are paid in periodic inst.allments over t.he life of the issue.
SINKING FUND - The Georgia Constitut.ion, in Art.icle IX, Section V, Paragraph VI, provides t.hat. "all amounts collected from any source for the purpose of paying t.he principal and int.erest. of any bonded indebtedness of any---subvision and t.o provide for the retirement of such bonded indebtedness---shall be placed in a sinking fund to be held and used to pay off the principal and interest of such bonded indebtedness thereafter maturing.
SPECIAL REVENUE FUNDS - funds used to account for money granted or appropriated which is legally restricted to specific uses.

AUGUST 1&, 19B3, ISSUE

PAGE 15&-13

GEORGIA FINANCIAL
ACCOUNTING HANDBOOK PART IV

APPENDIX F
TERMINOLOGY (CONTINUED)
- S (CONTINUED) -
SUPPLY - a material of an expendable nature that is consumed, worn out or deteriorated in use.
SURPLUS - the excess of the assets of a fund over its liabilities.
- T-
TERM BONDS - long-term obligations, the principal of which is repaid in a lump sum on a specified maturity date.
TRANSACTION - a piece of business or a business event.
TRANSFER - moving money from one fund to another without expectation of repayment.
TRIAL BALANCE - a list of the balances in the accounts in a ledger of a double-entry system, with the debit amounts shown in one column and the credit amounts shown in another. Its purpose is to determine whether total debits equal total credits.
TRUST AND AGENCY FUNDS - funds used to account for money or property held in trust.
- U-
UNAPPROPRIATED SURPLUS - that portion of a surplus or fund balance which is not appropriated to a specific purpose or purposes.
UNLIQUIDATED ENCUMBRANCES - outstanding encumbrances or obligations remaining outstanding.

AUGUST 16, 1983, ISSUE

PAGE 156-14

GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART IV

APPENDIX F
TERMINOLOGY (CONTINUED)
- V-
VOUCHER - a document which authorizes the payment of money and usually indicates the accounts to be charged.
VOUCHER SYSTEM - a system which calls for the preparation of vouchers for transactions involving payments and for the recording of such vouchers in a special book of original entry known as a voucher register in the order in which payment is approved.
VOUCHERS PAYABLE - liabilities for goods and services received as evidenced by vouchers which have been approved for payment but which have not been paid.
- W-
WARRANT - an order drawn by the school board on its treasurer or other custodian of its funds ordering him to pay a specified amount to a payee named on the warrant.

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GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART IV

I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I