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 PAGE 0-1 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 PAGE 0-2 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 PAGE 1-1 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. JULY 1, 1983 PAGE 1-2 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. JULY 1. 1983 PAGE 1-3 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. JULY 1, 1983 PAGE 1-4 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. JULY 1,1983 PAGE 1-6 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. JULY 1, 1983 PAGE 1-7 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. JULY 1. 1983 PAGE 1-8 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. JULY 1, 1984. ISSUE PAGE 2-1 GEORGIA FINANCIAL ACCOUNTING HANDBOOK PARl I 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. JULY 1, 1984, ISSUE PAGE 2-2 GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART I 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. JULY 1, 1984, ISSUE PAGE 2-3 GEORGIA FINANCIAL ACCOUNTING HANDBOOK PARl I 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. JULY 1, 19B4, ISSUE PAGE 2-4 GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART I 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. JULY 1, 1984, ISSUE PAGE 2-5 GEORGIA FINANCIAL ACCOUNTING HANDBOOK PARl I 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. JULY 1, 1984, ISSUE PAGE 2-6 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 JULY 1, 1984, ISSUE PAGE 2-1 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. JULY 1, 1984, ISSUE PAGE 2-8 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. JULY 1, 1984, ISSUE PAGE 2-9 GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART I 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 I I I I CHAPTER 2 I I I L_n I EDUCATION FOR I I I I I 490 THE HANDICAPPED I I I I I TITLE VI-B L_ I I L I 510 ADULT I I I I I EDUCATION I _1 1 I I 520 PSYCHO- I I I I I EDUCATION I I 1 I I I I I I I 530 G.L.R.S. I I I I I I I I I I 540 ALL OTHER I I I I I SPECIAL REVENUE I I I I I I I I I I 600 ENTERPRISE I I I i I I I J 1 I 650 INTERNAL I I I I I SERVICE I I I I I I I I I I 100 FIDUCIARY I I I I I I I I L I XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx I I I I I TOTAL (ALL FUNDS) I I I I I I _L ~ I I 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!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. JULY 1, 1983 PAGE 6-52 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. JULY 1, 1983 PAGE 6-53 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. JULY 1, 1983 PAGE 6-54 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. JULY 1, 1983 PAGE 6-55 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. JULY 1, 1983 PAGE 6-56 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. JULY 1, 1983 PAGE 6-57 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. JULY 1, 1983 PAGE 6-58 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. JULY 1, 1983 PAGE 6-59 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 PAGE 6-60 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. JULY 1, 1983 PAGE 6-61 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. JULY 1, 1983 PAGE 6-62 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. JULY 1, 1983 .. 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. JULY 1, 1983 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. JULY 1, 1983 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) ...... 1II'JV!'IIIrICAI. ICIIlllL IIfmC!' MUoI. GIlleU :~ 70S m...-.- ... 110 *lA "I'M\ I@a, C!!t4a moo li, \" 110. tQZ TI-.1.......:- .u.t .,,.... ." all In...lca IaCUore'. ~1l. or ladl:!' ..~d co~,"O"~.~:. HnoUlaU~ .hool ~.tZ'lc\ AU1n1aUaUon ...lltllll bUla .~ol'lll. 'lClSOO ~. --- AU J lIAla.. d- aft r OUlarw:.I. ,O,I ....u .,.c1n.d. aa u _ :..~. ?-2-U .:t.1r w"an I-.cli.\111 I '.C.. ,.,lnt I -:-.,.." Claa::U\7 UIIlU :ltlc:'lptlon AceOWlt ~..=-Z' .. .. . l 1 .. I l ! ~ ! 1. ! l'nH 1'Z'1:. !o\a1 I'r1c. 10 aau, NII\, -W" *\1 ~0lI0 OlIO Z6IO 6tO 10. ?'O 10'7.00 I ~ r .//1 ~AI. 101.00 J7 ).cd JIJt.. '1;:-/ ~:JonOWltd'~dptor t~.11 ....1' lIIlCl n.\I 1l!IIIl .... 1'I'0I'l vIlat .~ &/ll11Mnt JIlll .. " a , In...lc. in .u,u;ate. ), ~llC all, .UO\ MC_pany ...... I VIIrllDR I AC:OumllC I I I I UlIr 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 $8,800.00 for the Chapter 1 program is accrued at fiscal year end. MARCH 1, 1985, ISSUE PAGE 32-5 GEORGIA FINANCIAL ACCOUNTING HANDBOOK PART II :E >- :::0 n :%: ...... ...... CO~'8INEOJOURNAL -~-- ---_._---~ .!,!/_- '!!1~.!!'/~3_ lOflNK ACCOUNT t~lJ1,:R[nl /::>,'". t, c c c..v .. f y 15!-It()()l SY~Tf_MI rln~ (II 121 '.l"I_,!;'_ .c.cr"~ __CJll"'. ~. t)',._t",I-~~ ,.~~!~r_ J""~ ,,~, ." 10 ,,' ____ "Ire:- 1l~llnfNCE Nu~.mER y (31 141 [I; fHIS ' II' I lf1l r'('S1fSI l I 15) 'j~-~;~:~.;-~--I :;''r','::~'~):~;),1' ~MIT.O"~~' ~".'("n, r 16) 171 IR) o I ~/4!"IJ'" /' .'~I- ,",lSJ'AVI\Rtr 14711 I)f81 r CRlOlf y (Jlllrn (~I NrnAI. 1.r:I)(" IlI\'COi'NT$ orBIT (nrfllT y "X"' '"0 19) 110) 111 1'2) 113) 114 ":"z' 4/1./.00 t.'1 .o.... I./~.OC -c::i: ::lCI ?!:__~~e.rJ,.y~~_f . ., ,S.,/t'j,4.1 tJ '/1 '~t~- '~~-!,~,,!!_~ccr.,c.l C~.,/~r i 1 S.I.",C$ ".. ... '''r'~' J eMI'I.rj' . ..,!'. aCC'V'J - #.fc...: M.rm..lly., ..,i.II.,"4tr .s. ..._'/"1"1"" ~j . '"0 ,.,... II"t J.". ,'" .,J,6 > e;') I'T'I .~~=/:~Jd~I'It'I"I'1'~c~ W IV I 101, 0"1 I - 6:Jf. -- ->::0:0n>n,"oc";',) -1 l-=~---- .... 0cz::::: :0 .c.;.'.) I _L .........-..4. > '1'''''."", I ~t;P 01 .yeo. ""' c._$r ~B /#11011/0 ~ 'i<><>. I .tf71 '1'~1 J, l,../k,t ~r _f" ""' ~/"'" .. /fl ~ ,/I",,," ~-I"<; I I " ''''. ,,1 "\1 :>cz c ~_ rA"i.., 'hl~ (I) cC:O:: ::lCI (...I..). Lf'f.ClO f.., """".00 '5,800. 00 )( :E .~ -:::::=':::::' '100. CL o ~I 'foo !I . 01 I j -I ""I 1- ::::"'--1 - I ~.~. ~ 'foo 00 g..goo. ,'t' ... "'" ' 9~. Lf~ClO!~X I'T'I :z -i >n n o:c:z:: -i :z e;') ) n o :z -i :cz:: I'T'I o z -., c;') .... Z :> z1:nz> 01' 'ORMO_6I,J,,'v 19a5 0 .... CODr>- O ;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 ..... l.C .(X) CT' PI LR /V e: E=E ~ Y ........ r Y MIDIDMBN'r NO. 7 /0 J py '37 BOARD OF l!:DUCATION DATE J:v L-Y ~o' 19 E?~ ,.... Georgia Depart.ent of Bducation Vl cV:l m 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 -,:, noAI -,:, > l:j') m U"I CT' I in accordance with the attached reconcil..-nt. . .... ..c.:....~1j,-.::... .........~s...... Very truly yours. sU~ PBiUiiTBND cD:) o l:j') m -I -,:,>l:j') >n m ;::on 0 ---10;::0 C:l:j') -_-2I > - 2 "'T'I l:j') .... 2 ~~ " AIIIDIDMBNT SETUP AND/OR CHBCKBD BY /~\P ~ (S'l'APF MllmBR. FI~~L RBVIBW SECTION) AMBNDI'lBII'l' APPROVBD BY W CVWa... '. ) 2JC=i::- (STAPF ~. FIIWICIAL RBVIBW SECTION) DATE 7/Jcj ~(;; i j ) DATE 23 J-r~ &>b 7 ' n -o 2 -I c2 : m ..o...... GBORGIA DBPARTIIDJ'f OF 1II>IQ1ION I)BPORM 0111 (JULY 1, 1916) (8) XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX PIliE 1 OF OL 0.". D~)~ i'II: cc..:. I -< ...... ...... ~ CD -U' Vl cV:l I'T1 >-0 Ci' I'T1 U"I C" I U"I -o > >n C,i..', ,., n 0 -l 0 ,., --c: Ci' _2 - -l > 2 ..., Ci' -2 ::I: > > 2 2 n 0CD> 01 0 :;00:: GBNBRAL FUND BUDGET MBNDMBNT ~ )-INE "TREE COVA"-ry AMENDMENT NUMBER 7 / 0 / FY gz DATE BOARD OF BDUCATON TUL-)" ~ 19 g, ACCOUNT FUND ~ NUMBBR SOURCE/ FUNC'l'ION OBJBCT COLUMN 1 F 0 RV AR D 100 100 100 100 100 . 100 100 100 (JOO 0 0000 I 6 I/ /03 I /0'1'1 0000 I I) 0 /9?--0 /000 I~ IOOc) ;)..70 000 000 I )0 (;/0 b'fl I 80 BBO OF FY FUND BQUITY AND BBO OF FY FUND BQUITY ADJUSTMBNTS FY RBVBNUES AND OTHER SOURCES FY EXPENDITURES AND OTHER USES EWD OF FISCAL YEAR FUND BIOUI'l'Y COl.UItN 2 a>LUNPI 3 COLUMN 4 COLUMN 5 ,;U)~ 7 ';0 .9 ~ / ;l 30? ~ ~ .' () -~:?,; ")."2.7. 'fo -rt":> 70.) ..... 7--7 'fo -~o)~.Co-o _so ~ DO ........... .........-..;.!.J;i.>v~.'.~. ....... .... .... ....y. e.v.~.;..,...~..~ ...... .. '".. :l ng ")--).g .1-0 .- - / &7..J "8efl SO -t- /79 9 'rl. ~ - '.> ")",-00 00 -+- ~ OQ . 00 .- 7.) roo. DO -1-9 DO"'! 00 -70 9G.c.<:l0 -j- 7.~ 9 {" 0, cO -' 383. sg 5". I S- or-" - ~""o, ~").7. 'fD 70 ").-"). 7- 'fo -~ooo.,.oo --1->0 > 00 o. 00 +-/67 8<,11. se - /79. 9 <;;/ . .s:-o ~ S; :2-00.00 - y -,...00.00 + 7.) S-oO.~ - if 000 00 + 7 0 9l. 0,00 - 7~ 9 If, 0 DC 100 SUB TOTALS/GRAND TOTALS ;}..S;z. Cj '1 0 .~ ;2. 3b~ g~7-:"O ~ 1'1S-~~.'f0 'fl.S- '1 S >: J~ GEORGIA DEPARTMENT OF BDUCA'fION DB FORM 0777 (JULY 1. 1986) PAGB ~ OF ~ "'tl :no,:.:.0, ,..,..co: :::0 ..., ,o., > :K -I'T1 o2 2 Ci' -l ::I: I'T1 CcD: o Cj) I'T1 -l n -o 2 -l :cz: ..oI.'T..1. 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 PAGE 63-3 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 "rTn1 C;,:D;, ~ -< CO ~ V'I .... c-o-r-,-'B- I N O JOURNAL -----~~- 00- S- O~.." -_.- -- -. -. _.-_._~-- .~-~.- jBl\NI< ACCOUNT NUI,~Rf.nl /?"~_t,.~ ~."'_""y I~CHOOl SYSHMI til ctrni::l ."~ 7-/ o ,, /sl- ,4/.1-, ..... 1 B I< . ---- iN.;.:;;(,' "".... i orSCRIPflON 11I,~~ 121 _~...,.",E~~,, - Gc,.. ....... , ~HJ C..,/' ~ 11./.H <., -_ [-"-~-c,t,..,.c.,_,.f.. . J 4 ,Ih,.,'. y ""~::: -tl~1 JI~rfRrNCf l)' HI'S Illff'OSlfSl 151 19 .~:JT MilIAn '0' ,-"EOIlS ICUfCKSI 161 RANK Rl\,ll\,~CES. 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Q Q \ Q !~ I~ , .~ I) .~ I) Q .~ Q .. .. .. ,........ ...~ Q ,-4 I) . l Q , .<.,>. :-: ", .'l .~ I) l " - - - "" - - (03nNI1NOO) (L9vO WMO:I 30) lVNMOOr 03NI8WOO 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 = ........ - ..... > i 'I I F q ~~ b ~! F: ~~.I :~,~ i i ' "i i,l i : ~ _-w i ! i, I f i i i ' : ' ~~--;I --+---;"-+-+~-:---_"":-....o---.i --I~-Ir----.::; +<-.. -" ~ ; I I I ,I ,. I I I I! I1 , I iI ! i 'I :I :" - -0 n ,J> I" a lit -! I: 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/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 ** * * ********** ...................................... 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' .... Vl V,c..:.:l, -,:, J> ,e..n., w o I N ~ -J,>:,nJ>,.e.n, ~no --l 0 ~ c::en ..... 2 ..... ..... -!J> ..... 2 en .".'T..'.I :::I: 2 J>J> o 2 co n 2 ..... o OJr> ;:00: ,e.n., ,2.., ~ J> r "T1 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 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: 3J>: e0n ~ ~ J> -< 3: 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. 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 PAGE 151-& 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 SEPTEMBER 1. 1983. ISSUE PAGE 151-1 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. AUGUST 16, 1983, ISSUE 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. AUGUST 16, 1983, ISSUE 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. AUGUST 1&. 1983. ISSUE PAGE 15&-15 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