ED 081 103

AUTHOR

TITLE

DOCUMENT RESUME

EA 005 371

Roberts, Charles T., Comp.; Lichtenberger, Allan R.,Comp.Financial Accounting: Classifications and StandardTerminology for Local and StateEducational Records and ReportsRevised,

INSTITUTION National Center for EducationalWashington, D.C.DHEW-OE-73-1180073197p.; Replaces original handbook published in1957

AVAILABLE FROM Superintendent of Documents, U.S. Government PrintingOffice, Washington, D.C. 20402 ($2.35 postpaid or$2.00 GPO Bookstore)

REPORT NOPUB DATENOTE

School Systems.. StateSeries: Handbook II,

Statistics (DHEWSOE) ,

EDRS PRICE MF-$0.65 HC-$6.58DESCRIPTORS *Accounting; Administrator Guides; Classification;

*Costs; Definitions; Educational Finance; InformationSystems; Management Information Systems; ProgramBudgeting; School Accounting; *School Districts;*School District Spending; School Systems;Vocabulary

IDENTIFIERS Handbooks; *Program Cost Accounting

ABSTRACTThis handbook has been prepared as a vehicle or

mechanism for program cost accounting and as a guide to standardschool accounting terminology for use in all types of local andintermediate education agencies. In addition to classificationdescriptions, program accounting definitions, and proration of costprocedures, some units of measure and implications formanagement-oriented systems are presented. The appendixes include aset of criteria for identifying equipment as distinguished fromsupplies, an alphabetical listing of equipment and supplies, aglossary, examples of financial reports, and an index. (Author/DN)

FILMED FROM BEST AVAILABLE COPY

State Educational Recordsand Reports Series:Handbook II, Revised

DHEW Publication No. (OE) 73-11800

FINANCIAL ACCOUNTINGClassifications and Standard Terminology for

Local and State School Systems/9 7.5

Compiled and Edited in theOFFICE OF EDUCATION

by

Charles T. RobertsSpecialist in

Educational Records and Reports

and

Allan R. LichtenbergerChief,

Educational Data Standards Branch

U.S. DEPARTMENT OF HEALTH,EDUCATION 8. WELFARENATIONAL INSTITUTE OF

EDUCATIONTHIS DOCUMENT HAS BEEN REPRODUCED EXACTLY AS RECEIVED FROMTHE PERSON OR ORGANIZATION ORIGINATING IT POINTS OF VIEW OR OPINIONSSTATED DO NOT NECESSARILY REPRESENT OFFICIAL NATIONAL. INSTIJUTE OFEDUCATION POSITION OR POLICY

U.S. DEPARTMENT OF HEALTH, EDUCATION, AND WELFARECaspar W. Weinberger. Secretary

Education DivisionSP. Marland, J r.. Assistant Secretary for Education

Office of EducationJohn R. Ottina, Acting Commissioner

National Center for Educational StatisticsDorothy M. Gilford, Assistant Commissioner for Educational Statistics

U.S. GOVERNMENT PRINTING OFFICEWASHINGTON: 1973

For sale by the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C.:20102Price $2.33 domestic postpaid or $2 GPO Bookstore

PREFACE

This handbook, Financial Accounting: Classificationsrad Standard Terminology for Local and State SchoolSystems, replaces original Handbook II, published in1957 as part of the State Educational Records andReports Series. The revision has been cooperativelydeveloped, as was the original, and is designed to servethe same users more effectively as a vehicle foraccumulating data for management decisions concern-ing educational programs and students.

The first draft of the revision was prepared undercontract in ccope.ration with and under the guidance ofa national steering committee. The committee con-sisted of a representative from each of nine cosponsor-ing organizations: American Association of SchoolAdministrators, Council of Chief State School Officers,American Economic Association, Association for Edu-cational Data Systems, American Institute of CertifiedPublic Accountants, Research Division of the NationalEducation Association, Department of Rural Educa-tion of the National Education Association, NationalAssociation of School Boards, and the Association ofSchool Business Officials of the United States andCanada. A second contract was negotiated to conduct10 regional review conferences and prepare additionaldrafts of the handbook. After having been reviewed bya representative of each of these sponsoring associa-tions in each State of the regions of the U.S.Department of Health, Education, and Welfare, a

second draft was prepared.The second draft was sent to all State education

agencies, to about 2,000 large local education agencies,to the National Steering Committee, and to selectedconsultants for extensive review and testing. Sugges-tions for modification and improvement were receivedfrom these tests and when feasible, incorporated intothe final publication. A copy of the transmittalmemorandum is included in appendix D.

Exploratory and developmental resources drawnupon for this handbook have been extensive. Includedare the efforts of the national committee, interviews

iii

with many school finance officers in the States, and aspecial study made by _persons representing academicresearch interests. The study, contracted by NotreDame University, made recommendations concerningthe structure and content of the handbook. Itsrecommendations were very useful.

The Center for the Study of Evaluation of Instruc-tional Programs, University of California at Los An-geles, under financial arrangements with the U.S.Office of Education, conducted a conference on"Program Accounting for Public Schools" in 1968 toidentify the common elements in program accountingand recommended those which should be included inthe handbook.

The "Midwestern States Educational InformationProject," funded from 1966 through 1970 by theOffice of Education, was designed to develop anintegrated information system for State, educationagencies. Products of the project include programspecifications, a users' manual, and documentations forimplementing the system. The financial accounts speci-fied in that project are somewhat similar to thosetreated in this handbook.

Another project funded by the Office of Educationfrom 1968 to 1971 was the development of a program,planning, budgeting, and evaluation conceptual designunder the sponsorship of the Association of SchoolBusiness Officials' Research Corporation. The devel-opers have chosen to call the project the EducationalResources Management Design. The emphasis in thisproject is on the development of a goal-oriented systemfor evaluating educational programs. Coordination be-tween this project and the Handbook II revision hasbeen assured by liaison activities of selected staffmembers.

The recommendations of each of these conferencesand the developments of the related projects hadimpact on the nature, scope, and content of thishandbook. Almost all the suggestions have been in-coroorated.

Further acknowledgement of persons and organiza-tions who have contributed to the revision of thehandbook can be found in appendix C.

Handbook II is subject to updating and revision at

iv

short intervals because experience has shown thatconstant revision is not only desirable for managementpurposes, but is paramount in the interest of educationfor coming generations.

CONTENTS

Page

Preface iii

Chapter 1. INTRODUCTION 1

Purpose of the Handbook 1

Organization of the Handbook 3How the Handbook May be Used 3

Chapter 2. BALANCE SHEET ACCOUNTS 4

Fund Accounting 4Balance Sheet Summary 5

Definitions of Balance Sheet Accounts 7

Chapter 3. CLASSIFICATION OF REVENUES 12

Listing of Revenues 13Definitions of Revenue Accounts 15

Chapter 4. CLASSIFICATION OF EXPENDITURES 22

Summary of Expenditure Account Dimensions 22Definitions of Dimensions and Accounts 30

Chapter 5. IMPLICATIONS OF FINANCIAL ACCOUNTING IN USING THEHANDBOOK 60

Rationale for Expenditures Classification 60Units of Measure 64Implications of Financial Accounting for Program Accounting 70implications of Financial Accounting for Information Systems 77Implications of Financial Accounting for AnalysisImplications of Financial Accounting for Reporting 79

Chapter 6. INDIRECT COSTS AND PRORATION 81

Appendix A. Supplies and Equipment 93

Appendix B. Glossary 115

Appendix C. Acknowledgments 145

Appendix D. Transmittal Memorandum 166

Appendix E. Examples of Financial Statements and Reports 167

Index 175

Chapter 1

INTRODUCTION

Beginning with the nature and purpose of thehandbook, the introduction includes the reasons for itsrevision, its place as one in a series, criteria forincluding items of information in the manual, how itconforms with accounting principles, how it enhancesan information system, its significance for a planning,programing, budgeting, and Nation system, its usefor comparability, the seciL. .al arrangement of itscontents, and the various ways in which it may beused.

PURPOSE OF THE HANDBOOK

This handbook is designed to serve as a vehicle ormechanism for program cost accounting at the localand intermediate levels and eventually when programsare identified and benefits can be measured, a fullprogram, budeting, and evaluating system can then beoperated. The original handbook answered the need fora cost-accounting system that satisfied the legal andstewardship requirements connected with handlingpublic funds, but the classification structure prohibitedthe ability to accumulate costs of programs.

The developers of the first edition of Handbook IIIforesaw that it would not endure indefinitely. Theyobserved, "Handbook II will need to be revised fromtime to time to meet-changing financial accountingneeds. Through such action, its effectiveness may bemaintained."2 Those changing financial needs havecome.

Factors responsible for these needs are numerousand complex. They grew out of concerns of certain

Paul L. Reason and Alpheus L, White, Financial Ac, uunt-ing for Local and State School Systems, Standard Receipt andExpenditure Accounts. Washington: U.S. Government PrintingOffice, 1957. U.S. Department of Health, Education, andWelfare, Office of Education, State Educational Records andReports Series: Haldbaok II, Bullet'', 1957, No. 4, p. XVI.

'Ibid., p. VIII.

1

publics about the cost and relevance of education, theenactment of legislation in response to recognizededucational needs, and the resulting need for informa-tion to assist in planning and making decisions.Essentially, these factors gave rise to a need for moredetailed information organized differently than it is inthe original manual. Detailed data have meaning andvalue through systems which make possible combina-tions of data to produce many kinds of information.

New challenges and opportunities for the Nation'seducational systems have caused researchers and educa-tional decisionmakers to focus on new questions or atleast look at old questions in different ways. Therevised handbook makes it possible to organize data ina manner to permit the interrelating and combining ofdata elements that results in wide ranges of informa-tion. The goal of comparability is strengthened andachieved in the process.

Handbook Series

This revised handbook takes its place in a handbookseries developed and compiled cooperatively in theEducational Data Standards Branch of the Division ofIntergovernmental Statistics, National Center for Edu-cational Statistics. Other handbooks in the series are:

Handbos:.!-. I

Handbook II-B

Handbook I I I

Handbook IV

Handbook V

Handbook VI

The Common Core of State Edu-cational Information 1953Principles of Public School Ac-counting 1967Property Accounting for Localand State School Systems 7 1959Staff Accounting for Local andState School Systems 1965Pupil Accounting for Local andState School Systems 1964Standard Terminology for Cur-riculum and Instruction in Localand State School Systems 1970

Handbook V l I The State Education Agency,Standard Terminology .,nd a

Guide for Recording and Report-ing Information About State Edu-cation Agencies 1971

Two additional handbooks containing standardterminology for recording and reporting informationare in the exploration stages at this time. One isconcerned with the area of adult/continuing educationand the other will define and classify terms to describecommunity characteristics.

Criteria for Items of Information

Five basic criteria were used in determining itemsand classifications for inclusion in this handbook.These criteria are:

1. The items, .accounts, and categories of informa-tion must provide the basic framework funda-mental to a comprehensive system of educationalprogram information.

2. The handbook strategy must serve all sizes andtypes of Local Educational Agencies.

NOTE: The term "Local Education Agency" is usedthroughout this handbook as synonymous with theterms school district, public school, intermediateeducation agency, and school system. It is usedhereafter in its abbreviated form "LEA."3. The categories of accounts must be both con-

tractible and expandable, enabling all LEAs toto adapt to and support various planning, pro-gramming, budgeting, and evaluation systems.

4. Data elements must be additive into broadcategories for purposes of reporting and compar-ing at the local, State, and Federal levels.

5. The handbook chart of accounts must conformto generally accepted governmental accountingprinciples.

Conformance With Accounting Principles

This handbook is written to conform to the

accounting principles described and illustrated in Hand-book I I-B which adhered "to most of the criteria usedby a commercial enterprise in its accounting system.3

3Bert K. Adams, Quentin M. Hill, Joseph A, Perkins, Jr.,and Philip S. Shaw, Principles of Public School Accounting,Washington: U.S. Government Printing Office 1967. U.S.Department of Health, Education, and Welfare, Office ofEducation, State Educational Records and Reports Series:Handbook II-B, p. 3.

2

In keeping with these principles described in HandbookIt-B, but in no way indicating that LEAs must followthis procedure, balance sheet accounts and accrualbased accounting, modified in some cases, are pre-sented. They exhibit the LEA's resources and theextent to which they have been assigned, mortgaged, orextended.

Where comparatively large amounts of money arereceived and disbursed by a LEA, essential control offunds is enhanced through the use of balances preparedperiodically for each established fund (such as thegeneral fund, debt service fund, and capital projectsfund). This handbook, at the outset, sets forth themost commonly used accounts to be included in a

balance sheet. During the preparation of the manualthere was recognition of the fact that many LEAs donot and probably will not use balance sheets. But theaccounts have been included as a guide to those LEAswhich do not follow the practice of preparing them,and for those which may wish to improve theircontrol of funds by adopting balance sheet proce-dures. Their inclusion calls attention to their growingimportance in providing both management informationand financial accountability.

The use of the accrual basis in accounting forrevenues' am' expenditures is recommended to theextent applicable. Revenues, partially offset by provi-sions for estimated losses, should be taken intoconsideration when earned, even though not receivedin cash. Expenditures should be recorder' as soon asliabil;*ies are incurred. The value of this manual is in noway reduced for those LEA's which, for any reason,continue their accounting on a cash basis.

mplications for a Comprehensive Systemof Educational Information

In addition to having the data classifications ar-ranged for fund accounting and fund reporting, themanual has as one of its components additionaldimensions of classifications, not financial in natureand incorporated from other handbooks in the series,which provide not only a means of relating resourcesand processes with cost, but, which also contain theelements of a design for a comprehensive system ofeducational information. The financial record madewhen acquiring resources can be duplicated and filedunder each dimension for future analysis manuaily orcan contain a code for each dimension and be filedelectronically. In each case, the initiating acquisition

request is used as the control for relating re,Durces andprocesses with cost.

These classifications as they are defined and coded,do not constitute a system. Their items are groupedinto mutually exclusive categories, sets, or dimensions.In system arrangements, some of the classifications arerelated in such manner as to become subclassificationsof others. The procedure for filing and retrieving thesedimensions becomes the system.

Significance for Planning, Programing, Budget-ing, and Evaluation Systems (PPBES)

The chart of accounts in this manual has beenstructured to enable planners to budget, program, andevaluate the resources, processes, and effectiveness ofthe various objectives of a LEA. The dimensions andmechanism of a PPBES arc described. A dimension isprovided for programs, and a program structure is

inserted for illustrative purposes only. Programs in thecontext of PPBES may vary in different LEAK. Oncedesignated, however, their costs can be identified andincluded in the evaluation process. This is discussed indetail in chapter 5.

Comparability

Genera' use of the classifications and definitions inthis handbook will enhance comparability of recordedand reported information between LEAs and States.

ORGANIZATION OF THE HANDBOOK

The purposes, organization, and uses of this hand-book are described in this chapter. In chapter 2,classifications and definitions of funds and balancesheet accounts are presented. Chapter 3 includes a listof revenue accounts, defined; and chapter 4 is a

presentation of expenditure classifications, items, anddefinitions.

Along with descriptions of the classifications anddefinitions for program accounting some units ofmeasure and implications for management-orientedsystems are described in chapter 5. Chapter 6 containsdescriptions of procedures for proration of costs,including computation of indirect costs.

3

The appendixes include a set of criteria for identi-fying equipment as distinguished from supplies, analphabetit. list of equipment and supplies, a glossary,acknowledgments, a copy of the transmittal memoran-dum, examples of financial reports, and an index.

HOW THE HANDBOOK MAY BE USED

This handbook has been cooperatively prepared as aguide to standard school finance terminology for use inall types of local and intermediate education agencies.The chart of accounts described in this manual isapplicable in almost its entirety by IntermediateEducation Agencies. Local revenue items will be usedas applicable by an intermediate unit. Adherence to itsterms and definitions by personnel at State andnational levels is as important as it is in LEAs.

The manual may be applied in such manner, as Stateand local needs demand, probably through the use ofState-prepared manuals based on this handbook. Manykinds of approaches may be used to achieve the goal ofcomparability of school finance information as long asthe same terms and definitions are used. State laws andregulations are not to be superseded because of anyitem or other content of this manual.

The use of the classifications and definitions in thishandbook by Federal program managers in designinginformation request documents would enhance thedata gathering process substantially as well as hastenthe standardization of financial accounting terminology.In similar manner, all auditors can promote compara-bility through 'reviews consistent with the handbookclassifications and definitions. Utilization of the termsas defined in this handbook has potential for improvingall communication regarding school finance whether inconnection with legislation, regulations, or in strictaccounting procedures.

This document has been developed by persons inand outside government, representing many profes-sions, to benefit education and related enterprises.Within this concept, it should be useful not only toschool officials in public education but to those inprivate schools as well as others in the educationalcommunity.

Chapter 2

BALANCE SHEET ACCOUNTS

School accounting is necessary for the purpose ofproviding complete and accurate financial informationin such form as may be necessary to indicate fiscalaccountability and to aid management decisionmaking.Before implementing this handbook, it is

recommended that Handbook II.B, Principles of PublicSchool Accounting, be studied.t Handbook li-Bcontains a detailed explanation of fundamental LEAaccounting principles. School accounting is based uponthe basic principle that a fund's assets are equal to thesum of its liabilities and the fund balance, (ASSETSLIABILITIES + FUND BALANCE).

ASSETS and LIABILITIES are broad groupings ofaccounts that include what is owned (assets) and whatis owed (liabilities). Thus the accounting ledgers

contain such assets as CASH, TAXES RECEIVABLE,and ACCOUNTS RECEIVABLE and such liabilityaccounts as ACCOUNTS PAYABLE and RETAINEDPERCENTAGE PAYABLE. The most commonly usedbalance sheet accounts are identified and defined inthis chapter although all of the accounts may notnecessarily be used by each LEA.

FUND ACCOUNTING

A LEA is created by law. Most laws dictate thosemonies which a LEA is permitted to receive and theyexpressly and/or implicitly state the purposes forwhich those monies may be used. The accountingsystem used by LEA should provide for legal

compliance; that is, monies are receivnl and spentaccording to law. For this reason, LEAs have evolved ameans of indicating legal compliance by use of "fund

V accounting."

'Bert K. Adams, Quentin M. Hill, Joseph A. Perkins, Jr.,and Philip S. Shaw, Principles of Public School Accounting,Washington: U,S. Government Printing Office, 1967. U.S.Department of Health, Education, and Welfare, Office ofEducation State Educational Records and Reports Series:Handbook II-B.

4

A fund is an independent accounting and fiscal setof accounts, which is required for specific activities orfor attaining certain objectives. Separate funds areestablished to account for the financing of differentspecific activities of a LEA's operations.Recommended fund groups for LEA operationinclude:

General FundSpecial Revenue FundDebt Service RindCapital Projects FundFood Service FundPupil Activity FundTrust and Agency Funds

The use of balance sheet accounts is a significantdeparture from the method prescribed in the prioredition of Handbook II for recording nonrevenuereceipts and the use of certain other accountsdesignated as clearing accounts. Reference is made topages XVIII and XX and chapters 5 and 6 ofHandbook II (1957 Edition).

An account :s defined as a descriptive heading underwhich are recorded financial transactions that are .similar in terms of a given frame of reference, such aspurpOse, object, or source. A group of accountscomprises a ledger. Similarly, a group of accountsconsisting of all accounts required to describe thefinancial condition and results of a LEA operationcomprise a general ledger. In this case such group ofaccounts would include assets, liabilities, reserves, fundbalances, revenues, and expenditures. The first four ofthis group comprise balance sheet accounts and arediscussed in this chapter. Revenue and expenditureaccounts are discussed in succeeding chapters. In

addition, two self-balancing groups of accounts calledthe General Fixed Assets and General Long-Term Debtare included. These fund and account groups aredefined in chapter 4.

BALANCE SHEET SUMMARY

A summary of the balance sheet accounts and thefund in which they are frequently found is illustratedin table 1. Account numbers are included as anindication of how these accounts may be coded. Withinan individual LEA, account numbers should beassigned as appropriate. There are two major

groupings: (1) ASSETS and (2) LIABILITIES,RESERVES, and FUND BALANCE. These majorgroups are classified by subheadings generally used inbalance sheets and are arranged in the order in whichthey are usually presented. Separate balance sheets areprepared for each fund, and the same account may befound in more than one fund.

TABLE 1 Balance Sheet Account Summary and Funds in Which These Accounts Are Frequently Found

FUNDS AND GROUPS OF ACCOUNTS

Def.Page General

BALANCE SHEET ACCOUNTS No. Fund

ASSETS & OTHER DEBITS

Special Debt CapitalRevenue Service Projects

Fund Fund Fund

Food PupilService ActivityFund Fund

GeneralTrust and General Long-Agency Fixed TermFunds Assets Debt

100 Current Assets. 8

101 Cash 8 . X X X102 Petty Cash 8 X

103 Cash Change Funds 8104 Cash With Fiscal Agent 8 X110 Taxes Receivable 8 X X111 Estimated Uncollectible

Taxes (Credit) 8 X X112 Tax Liens Receivable 8 X113 Estimated Uncollectible

Tax Liens (Credit) 9 X X X120 Accounts Receivable 9 X X X'121 Bond Proceeds Receivable 9122 Loans Receivable 9 X

130 Due From_Fund 9 X X140 Due From_Govt. 9 X X150 Advance to Fund 9 X

161 Taxes Levied for OtherGovernmental Units 9 X

162 Interest Receivable onInvestments 9 X X

163 Accrued Interest on Invest-ments Purchased 9 X X

170 Inventory 9 X

171 Inventory of Stores forResale 9

180 Investments 9 X X181 Unamortized Premiums on

Investments 9 X X182 Unamortized Discounts on

Investments (Credit) 9 x x x X

191 Deposits 10 X x x x192 Prepaid Expenses 10 X X x x193 Unamortized Discounts on

Bonds Sold 10 X

200 General Fixed Assets 10

201 Land 10

202 Buildings 10

5

TABLE 1 Balance Sheet Account Summary and Funds in Which These Accounts Ire Frequently Found (Continued)

FUNDS AND GROUPS OF ACCOUNTSGeneral

Def. Special Debt Capital Food Pupil Trust and General Long-Page General Revenue Service Projects Service Activity Agency Fixed Term

BALANCE SHEET ACCOUNTS No. Fund Fund Fund Fund Fund Fund Funds Assets Debt

ASSETS & OTHER DEBITS(Continued)

200 General Fixed Assets (Continued)

203 Improvements Other ThanBuildings 10 X

204 Equipment 10 X205 Construction Work in

Progress 10 X

300 Budgeting Accounts andOther Debits 10

301 Estimated Revenues 10 X X X X

302 Revenues (Credit) , 10 X X X X

303 Bonds Authorized Unissued 10 X

304 Amount Available in DebtService Funds 11 X

305 Amount To Be Provided forPayment of Bonds 11 X

LIABILITIES, RESERVES, ANDFUND BALANCE 11

400 Current Liabilities-- 11

401 Vouchers Payable 11 X X X X X X X

402 Accounts Payable 11 X X X X X

403 Judgments Payable 11 X X X X X X

404 Contracts Payable 11 X X X X X

405 Construction ContractsPayable 11 X

406 Construction Contracts Pay-able Retained Percentage 11 X

410 Due to Fund 11 X X X X X X X

420 Due to Govt. 11 X X X X X X X

430 Advance From Fund 11 X X X X X X X

441 Matured Bonds Payable 11 X

442 Matured Interest Payable 11 X450 Payroll Deductions and

Withholdings 12 X X X X X X

461 Accrued Expenses 12 X X X X

471 Deposits Payable 12 X X X X X X

472 Due to Fiscal Agent 12 X

473 Unamortized Premiums onBonds Sold 12 X

474 Revenues Collected inAdvance 12 X X X X ..

475 Taxes Collected inAdv;.,nce 12 X X

6

FUIJDS AND GROUPS OF ACCOUNTS

BALANCE SHEET ACCOUNTS

Def.Page

No.GeneralFund

SpecialRevenue

F unr.

DebtServiceFund

CapitalProjects

Fund

FoodServiceFund

PupilActivity

Fu id

Trust andAgencyFunds

GeneralGeneral Long-Fixed TermAssets Debt

500 Long-Term Liabilities

501 Bonds Payable

12

12 X

600 Budgeting Accounts andOther Credits 12

601 Appropriations 12 X X X X X X602 Expenditures (Debit) 12 X X X X X X

603 Encumbrances (Debit) 12 X X X X X

700 Reserves & Fund Balance 12..,

701 Reserve for Encumbrances 12 .. X X X X X

702 Reserve for Inventory 12 X

703 Reserve for (Special12 X X X X X X XPurposes)

704 Fund Balance 13 X X X X X X X

705 Investment in GeneralFixed Assets 13 X

DEFINITIONS OF BALANCE SHEETACCOUNTS

Assets and Other Debits

Assets and Other Debits include what is owned andother items not owned as of the date of the balancesheet but expected to become fully owned at somefuture date as well as other budgeting and offsettingaccounts which normally have debit balances.

Code Descriptor

100 Current Assets. Cash or anything that can bereadily converted into cash.

101 Cash. Currency, coin, checks, postal and expressmoney orders, and bankers' drafts on hand, oron d.vosit, with an official or agent designatedas custodian of cash and bank deposits.

102 Petty Cash. A sum of money set aside for thepurpose of paying small obligations for whichthe issuance of a formal voucher and checkwould be too expensive and time-consuming.

102 Cash Change Funds. A sum of money set asidefor the purpose of providing change.

7

104 Cash With Fiscal Agent. Deposits with fiscalagents, such as commercial banks, for thepayment of matured bonds and interest:

110 Taxes Receivable. The uncollected portion oftaxes which a LEA or governmental unit haslevied and which has become due, including anyinterest or penalties which may be accrued.Separate accounts may be maintained on thebasis of tax roll year and/or current and delin-quent taxes.

111 Estimated Uncollectible Taxes (Credit). A pro-vision for that portion of taxes receivable whichit is estimated will not be collected. The accountif shown on the balance sheet as a deductionform the 110 Taxes Receivable account in orderto arrive at the net taxes receivable. Separateaccounts may be maintained on the basis of taxroll year and/or delinquent taxes.

112 Tax Liens Receivable. Legal claims against prop-erty which have been exercised because ofnonpayment of delinquent taxes, interest, andpenalties. The account includes .delinquenttaxes, interest, and penalties receivable up to thedate the lien becomes effective plus the cost ofholding the sale.

DEFINITIONS OF BALANCE SHEET ACCOUNTS(Continued)

Current Assets (Continued)

Code Descriptor

113 Estimated Uncollectible Tax Liens (Credit).That portion of tax liens receivable which it isestimated will never be collected. The account isshown as a deduction from the Tax Liens

Receivable account on the balance sheet in orderto arrive at the net amount of tax liens

receivable.

120 Accounts Receivable. Amounts owing on openaccount from private persons, firms, or corpora-tions for goods and services furnished by a LEA(but not including amounts due from otherfunds or from other governmental units). Al-though taxes receivable are covered by this term,they should be recorded and reported separatelyin the Taxes Receivable account.

121 Bond Proceed-: Fl6ceivable. An account used todesignate the amount receivable upon sale ofbonds.

122 Loans Receivable. Amounts which have beenloaned to persons or organizations, includingnotes taken as security for such loans, wherepermitted by statutory .authority. The account isusually carried o; ly in the Trust and AgencyFunds balance s' dbt although it may also appearin the General Fund.

130 Due From Fund. An asset accountused to indicate amounts owed to a particularfund by another fund in the same LEA forgoods sold or services rendered. It is recom-mended that separate accounts be maintainedfor each interfund receivable.

140 Due From Government. Amounts dueto the reporting governmental unit from anothergovernmental unit. These amounts may repre-sent grants-in-aid, shared taxes, taxes collectedfor the reporting unit by another unit, loans,and charges for services rendered by the report-ing unit for another government. It is recom-mended that separate accounts be maintainedfor each interfund receivable.

8

150 Advance to Fund. An asset accountused to record a loan by one fund to anotherfund in the same governmental unit. It is

recommended that separate accounts be main-tained for each interfund receivable loan.

161 Taxes Levied for Other Governmental Units. Anaccount carried in Trust and Agency Funds todesignate taxes which have been levied by thereporting LEA as agent for other governmentalunits, and which are to be collected, held intrust, and disbursed to the proper unit. Theyconsist of both current and delinquent taxes andmay also include tax liens. No allowance forestimated uncollectible taxes is set up againstthese taxes because the LEA is usually liableonly for the amount actually collected.

162 Interest Receivable on Investments. The amountof interest receivable on investments, exclusiveof interest purchased. Interest purchased shouldbe shown in a separate account.

163 Accrued Interest on Investments Purchased.Interest accrued on investments betw,. In the lastinterest payment date and date of purchase. Theaccount is carried as an asset until the firstinterest payment date after date of purchase. Atthat time an entry is made debiting account101Cash, and crediting the Accrued Intereston Investments Purchased account for theamount of interest purchased and an InterestEarnings account for the balance.

170 Inventory. The cost of supplies and equipmenton hand not yet distributed to requisitioningunits.

171 Inventory of Stores for Resale. The value ofgoods held by a LEA for resale rather than foruse in its own operations.

180 Investments. Securities and real estate held forthe production of income in the form ofinterest, dividends, rentals, or lease payments.The account does not include fixed assets usedin LEA operations. Separate accounts for eachcategory of investments may be maintained.

181 Unamortized Premiums on Investments. Theexcess of the amount paid for sec- .;;ties over the

face value which has not yet been amortized.Use of this account is normally restricted tolong-term investments.

182 Unamortized Discounts on Investments (Credit).Toe excess of the face value of securities overthe amount paid for them which has not yetbeen written off. Use of this account is normallyrestricted to long-term investments.

191 Deposits. Funds deposited by the LEA as aprerequisite to receiving services andkr goods.

192 Prepaid Expenses. Expenses entered in the ac-counts for benefits not yet received. Prepaidexpenses differ from deferred charges in thatthey are spread over a shorter period of t. nethan deferred charges and are regularly recurringcosts of operation. Examples of prepaid ex-penses are prepaid rent, prepaid interest, andunexpired insurance premiums. An example of adeferred charge is unamortized discounts onbonds sold.

193 Unamortized Discounts on Bonds Sold. Thatportion of the excess of the face value of bondsover the amount received from their sale whichremains to be written off periodically over thelife of the bonds.

200 General Fixed Assets. Those assets which theLEA intends to hold or continue in use over along period of time.

201 Land. A fixed asset account which reflects theacquisition value of land owned by a LEA. Ifland is purchased, this account includes thepurchase price and costs such as legal fees, fillingand excavation costs, and other associated im-provement costs which are incurred to put theland in condition for its intended use. If land isacquired by gift, the account reflects its ap-praised value at time of acquisition.

202 Building!. A fixed asset account which reflectsthe acquisition value of permanent structuresused to house persons and property owned bythe LEA. If buildings are purchased or con-structed, this account includes the purchase orcontract price of all permanent buildings and

9

fixtures attached to and forming a permanentpart of such buildings. If buildings are acquiredby gift, the account reflects their apprai .z: valueat time of acquisition.

203 Improvements Other Than Buildings. A fixedasset account which reflects the acquisitionvalue of permanent improvements, other thanbuildings, which add value to land. Examples ofsuch improvements are fences, retaining walls,sidewalks, pavements, gutters, tunnels, andbridges. If the improvements are purchased orconstructed, this account contains the purchaseor contract price. If improvements are obtainedby gift, it reflects the appraised value at time ofacquisition.

204 Equipment. Tangible property of a more or lesspermanent nature, other than land, buildings, orimprovements thereto, which is useful in car-rying on operations. Examples are machinery,tools, trucks, cars, furniture, and furnishings.

205 Construction Work in .:Progress. The cost ofconstruction work undertaken but not yetdieted.

300 Budgeting Accounts and Other Debits. Includebudgeted amounts related to expenditures andencumbrances as well as items which are off-setting accounts and which normally have debitbalances.

301 Estimated Revenues. The amount of revenuesestimated to be received or to become receivableduring the fiscal period. At the end of the fiscalperiod, the account is closed out and does notappear in a balance sheet prepared at the closeof the fiscal period.

302 Revenues (Credit). The increase in ownershipequity during a designated period of time. Theaccount appears only in a balance sheet preparedduring the fiscal period. At the end of the fiscalperiod, the account is closed out and does notappear in a balance sheet prepared at the closeof the fiscal period.

303 Bonds AuthorizedUnissued. Bonds which theLEA can issue without further proceedings other

DEFINITIONS OF BALANCE SHEET ACCOUNTS(Continued)

Budgeting Accounts and Other Debits (Continued)

Code Descriptor

than to direct their sale. The account is includedamong the resources of the Capital ProjectsFund offset by a credit to Appropriations. Whenthe bonds are sold, the account would becredited and Cash debited. An alternative ap-proach is not to show the Bonds AuthorizedUnissued account in the balance sheet butmerely to call attention to the amount of thebonds that have been authorized and not issuedin a footnote to the appropriate balance sheet.In this case, the journal entry at the time bondsare sold would be a debit to Cash for theproceeds and a credit to the revenue account,Sales of Bonds.

304 Amount Available in Debt Service Funds. Anaccount in the General LongTerm Debt Groupof Accounts which designates the amount ofassets available in a Debt Service Fund for theretirement of general obligation term bonds.

305 Amount To Be Provided for Payment of Bonds.An account in the General Long-Term DebtGroup of Accounts which represents the amountto be provided from taxes or other generalrevenue to retire outstanding general obligationterm bonds.

Liabilities, Reserves, and Fund Balance

Liabilities, Reserves, and Fund balance are LEAdebts plus its which are not debts but which maybecome debts at some future time, as well as otherbudgeting and offsetting accounts which normally havecredit balances and show up only on trial balance

sheets.

Code Descriptor

400 Current Liabilities. T ose debts the LEA expectsto pay within a short period of time, usuallywithin a year or less.

401 Vouchers Payable. Liabilities for goods andservices received as evidenced by vouchers whichhave been preaudited and approved for pay-ment but which have not been paid.

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402 Accounts Payable. Liabilities on open accountowing to private persons, firms, or corporationsfor goods and services received by a LEA (butnot including amounts due to other funds of thesame LEA or to other governmental units).

403 Judgments Payable. Amounts due to be paid bya LEA as the result of court decisions, includingcondemnation awards in payment for privateproperty taken for public use.

404 Contracts Payable. Amounts due on rontractsfor assets, goods, and services received by aLEA.

405 Construction Contracts Payable. Amounts dueby a LEA on contracts for construction ofbuildings, structures, and other improvements.

406 Construction Contracts PayableRetained Per-centage. Liabilities on account of constructioncontracts for that portion of the work which hasbeen completed but on which part of theliability has not been paid pending final in-spection, or the lapse of a specified time period,or both. The unpaid amount is usually a statedpercentage of the contract price.

410 Due to Fund. A liability account usedto indicate amounts owed by a particular fundto another fund in the same LEA for goods andservices rendered. It is recommended that sepa-rate accounts be maintained for each interfundpayable.

420 Due to Government. Amounts owedby the reporting LEA to the named govern-mental unit'. It is recommended that separateaccounts be maintained for each interfundpayable.

430 Advarce From Fund. A liability ac-count used to record a debt owed by one fundto another fund in the same governmental unit.it is recommended that separate accounts bemaintained for each interfund loan.

441 Matured Bends Payable. Bonds which havereached or passed their maturity date but whichremain unpaid.

442 Matured Interest Payable. Interest on bondswhich have reached the maturity date but whichremains unpaid.

450 Payroll Deductions ane Witholdings. Amountsdeducted from employees nlaries for withhold-

ing taxes and other purposes. A separate liabilityaccount may be used for each type of deduc-tion.

461 Accrued Expenses. Expenses incurred during thecurrent accounting period but which are notpayable until a subsequent accounting period.

471 Deposits Payable. Liability for deposits receivedas a prerequisite to providing or receiving serv-ices and/or goods.

472 Due to Fiscal Agent. Amounts due to fisalagents, such as commercial banks, for servicing aLEA's maturing indebtedness.

473 Unamortized Premiums on Bonds Sold. Anaccount which represents that portion of theexcess of bond proceeds over par value andwhich remains to be amortized over the remain-ing life of such bonds.

474 Revenues Collected in Advance. A liabilityaccount which represents revenues collectedbefore they become due.

475 Taxes Collected In Advance. A liability for taxescollected before the tax levy has been made orbefore the amount of taxpayer liability has beenestablished.

500 Long-Term Liabilities. Debts which a LEA plansto hold for a long period of time.

501 Bonds Payable. The face value of bonds issuedand outstanding.

600 Budgeting Accounts and Other Credits. Thesecategories represent accounts which reflectbudgeted amounts related to expenditures andencumbrances as well as offsetting accountswhich normally have credit balances.

601 Appropriations. This account records authoriza-tions granted by the legislative body to makeexpenditures and to incur obligations for spe-cific purposes. This account appears in a balancesheet prepared during the fiscal period. At theend of the fiscal period, the Appropriationsaccount is closed out and does not appear in thebalance sheet prepared at the close of the fiscalperiod.

602 Expenditures (Debit). This account ar, ears inbalance sheets prepared during the fiscal periodand iesignates the total of expenditures chargedagainst appropriations during such period. The

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account is shown in each balance sheet as adeduction from the Appropriations account toarrive at the unexpected balance oi total appro-priations.

603 Encumbrances (Debit). This account designatesobligations in the 'form of purchase orders,contracts, or salary commitments which arechargeable to an appropriation and for which apart of the appropriation is reserved. In aninterim balance sheet, encumbrances areducted along with the expenditures fromAppropriations account to arrive at thecumbered balance of appropriations.

700 Reserves and Fund Balance. These are accountswhich show the excess of the assets of a fundover its liabilities and those that have a portionof the balance reserved for future use.

701 Reserve for Encumbrances. A reserve represent-ing the segregation of a portion of a fundbalance to provide for unliquidated encum-brances. Separate accounts may be maintainedfor current and prior year encumbrances.

702 Reserve for Inventory. A reserve which repre-sents the segregation of a portion of a fundbalance to indicate that assets equal to theamount of the reserve are tied up in inventoriesof supplies and inventories on hand and notissued to requesting units.

703 Reserve for (Special Purposes). A re-serve which represents the segregation of a portionof a fund balance to indicate that assets equal tothe amount of the reserve are tied up for thenamed special purpose. Separate accounts may bemaintained for each special purpose reserve.

704 Fund Balance. The excess of the assets of a fundover its liabilities ind reserves, except in the caseof funds subject to budgetary accounting where,prior to the end of a fiscal period, it representsthe excess of the fund's assets and estimatedrevenues for the period over its liabilities,reserves, and appropriations for the period.

705 Investment in General Fixed Assets. An accountin the General Fixed Assets Group of Accountswhich represents the LEA's equity in generalfixed assets. The balance of this account issubdivided according to the source of fundswhich financed the asset acquisition, such asGeneral Fund ,Revenues, Special Revenue FundRevenues, bond issues, and contributions.

de-

theunen-

Chapter 3

CLASSIFICATION OF REVENUES

Revenues are classified by type and source for thevarious funds of a LEA. Revenues are defined asadditions to assets which do not increase any liability,do not represent the recovery of an expenditure, donot represent the cancellation of certain liabilitieswithout a corresponding increase in other liabilities ora decrease in assets, and do not represent contributionsof fund capital in Food Service and Pupil Activityfunds.

The diverse nature of school district operations andthe necessity of determining legal compliance precludea single set of accounts for recording and summarizingall the financial transactions of a LEA. Instead, therequired 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 identityof its resources, obligations, revenues, expenditures,and fund equities is continually maintained. Thesepurposes are accomplished by providing a completeself-balancing set of accounts for each fund whichshows its assets, liabilities, reserves, fund balances orretained earnings, revenues, and expenditures. Thetypes of funds are listed and defined in the chapter onexpenditures.

To illustrate the diverse nature of the financialtransactions of a LEA, consider the four sources ofrevenue and the objects of expenditure. Revenues fromintermediate, State, arid Federal sources pose no greatproblems, as they are used generally for the currentyear's operation. In other words, fiscal year money isspent for the current fiscal year.

Revenue from local sources, on the other hand, isexpended for two periods: the current year only andthe current year plus future years (capital outlay).Local revenue comes from several different localsources, also. It is generated from taxes, fees frompatrons (tuition and transportation), earnings oninvestments, services to other LEAs, sales from schoolenterprises (food and pupil activities), gifts, andinterfund transactions. These interfund transactions

12

result from (1) the sale of fixed assets, (2) the recoveryof losses on insured property, (3) the return of prioryear's expenditures, (4) the sale of bonds, and (5)transfers of money from one fund to another.

Each of these types of revenue increases the assets ofa fund but does not necessarily increase the assets ofthe LEA. Revenue from other LEAs is revenue to theLEA but is not revenue to the State when the LEAreports revenue to the State. Revenue for theenterprise funds (food service and pupil activity) arerevenues for the funds but are not necessarily revenuesfor the LEA. The enterprise funds exist only asbusinesses within the LEA, that is, they are accountingentities for activities which are not for profit but onlyto support the school activities.

Revenues resulting from the interfund transactions,even though they are revenues for funds, are notrevenues for the LEA. The sale of fixed assets merelychanges the form of an asset from fixed to cash.Recoveries from insurance adjustments are changes inthe form of an asset from fixed to cash. The return of aprior year's expenditures is carried to the fund balanceof the appropriate fund. Sales from bonds aretransferred to the Capital Projects fund as revenue andthe liability they incur is added to the Long-Term Debtgroup of accounts. A transfer of money from one fundto another is considered money collected by one fundas agent for another fund. It is revenue for thereceiving fund only. (The interfund revenues arestarred in the list of revenues.)

It is important to emphasize three points: (1) the list-ing of revenues in this chapter does not dictate proced-ures for reporting LEA income to State and Federal edu-cation agencies, (2) identification of LEA income dataneeded for reporting purposes will recr_:ire special instruc-tions, and (3) income generated from interfund transac-tions (listed above) is not income for a LEA and will re-quire separate identification to assure appropriate report-ing. Moreover, the definition of revenue has not changedand current revenue categories can be maintained.

Thus, just as it is essential to account for LEAoperations by funds, it is essential to report revenuesby funds in a combined statement for all funds ratherthan for the LEA as an entity. Financial reports toschool boards and State agencies showing status ofLEA revenues, exi ..:,tures, and balances are of fourtypes: (1) combined balance sheet statement showingLEA assets, liabilities, and fund balances for all funds,(2) combined income statement showing revenues andexpenditures for all funds, (3) changes in fund balancesfor all funds, and (4) changes in financial position forall funds. Full disclosu.T. .3f financial transactions ismade from these reports. Examples of these forms areshown in appendix E.

The types of revenue from each source, (1) local, (2)intermediate, (3) State, and (4) Federal are defined andlisted below.

(1) Revenue from LOCAL sources is the amount ofmoney produced within the boundaries of theLEA and available to the LEA for its use.

Money collected in the same amount by an-other governmental unit as an agent of the LEA(less collection costs), is recorded as revenuefrom local sources. Shared revenue (revenuelevied by another governmental unit, butshared in proportion to the amount collectedwithin the LEA) is also recorded as revenuefrom local sources. Money transferred withouthaving to be repaid, money received for therecovery of an expenditure, and proceeds fromthe sale of bonds are local revenue.

(2) Revenue from INTERMEDIATE sources is rev-enue from funds collected by an intermediateadministrative unit, or a political subdivisionbetween the LEA and the State, and distrib-uted to LEAs in amounts that differ in propor-tion to those which were collected within suchsystems.

TABLE 2Listing of Revenues

An illustration of revenue from intermediatesources is the case of a county which levies andcollects a sales tax in the county, and distrib-utes the money thus collected to the variousLEAs on some flat grant or equalization-aidbasis.

(3) Revenue from STATE sources is revenue fromfunds collected by the State and distributed toLEAs in amounts different proportionatelyfrom those which were collected within suchLEAs.

(4) Revenue from FEDERAL. sources is revenuefrom funds collected by the Federal Govern-ment and distributed to LEAs in amounts thatdiffer in proportion from those which werecollected within such LEAs. It is unimportantwhether the funds are distributed directly tothe LEA by the Federal Government orthrough some intervening agency such as theState. When a LEA does not nave a method fordetermining the prorate share of Federal, Stateand other sources of revenue in a commingledgrant, it is recommended that the distributingagency provide this information to the local orintermediate agency.

Within each source of revenue, individual items ofrevenue are classified into basic groupings of similartypes of revenue such as TAXES, or similar purposessuch as STUDENT ACTIVITIES. These group headingsare not account titles; they are used only as a

convenient means of identifying specific revenue ac-counts for reporting purposes.

LISTING OF REVENUES,

General types of revenue are summarized andgrouped in table 2. The revenues listed in the table aredefined in the next section.

Def. Page No.

1000 REVENUE FROM LOCAL SOURCES* 15

1100 Taxes 15

111' Ad Valorem Taxes Levied by LEA 151120 Ad Valorem Taxes Levied by Another Governmental Unit 161130 Sales and Use Taxes 161140 Income Taxes 161180 Other Taxes 161190 Penalties and interest o.1 Taxes 16

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TABLE 2Listing of Revenues (Continued)

1000 REVENUE FROM LOCAL SOURCES (Continued)

1200 Revenue From Local Governmental Units Other Than LEAs

1300 Tuition

Def. Page No.

16

16

1310 Regular Day School Tuition 16

1311 Tuition Frnm Pupils or Parents 16

1312 Tuition F rot., Other LEAs Within the State 16

1313 Tuition From Other LEAs Outside the State 16

1320 Adult/Continuing Educatinri Tuition 16

1321 Tuition From Pupils or Parents 161322 Tuition From Other LEAs Within the State 161323 Tuition From Other LEAs Outside the State 17

1330 Summer School Tuition 17

1331 Tuition From Pupils or Parents 17

1332 Tuition From Other LEAs Within the State 171333 Tuition From Other LEAs Outside the State 17

1400 Transportation Fees 17

1410 Regular Day School Transportation Fees 17

1411 Transportation Fees From Pupils or riarents 17

1412 Transportation Fees From Other LEAs Within the State 17

1413 Transportation Fees From Other LEAs Outside the State 17

1420 Summer School Transportation Fees 17

1421 Transportation Fees From Pupils or Parents 17

1421 Transportation Fees From Other LEAs Within the State 17

1423 Transportation Fees From Other LEAs Cutside the State 17

1500 Earnings on Investments 17

1510 Interest on Investments 17

1520 Dividends on Investments 17

1530 Gain or Loss on Sale of Investments 17

1600 Food Services 18

1610 Sales to Pupils 18

1620 Sales to Adults 18

1700 Pupil Activities 18

1710 Admissions 181720 Bookstore Sales 181730 Pupil Organization Membership 181790 Other Pupil Actii,ity Income 18

1900 Other Revenue From Local Sources 18

1910 Rentals 18

1920 Contributions and Donations From Private Sources 18

1930 "Sale and Loss of Fixed Assets 18

1931 Sale of Fixed Assets 18

1932 Compensation for Loss of Fixed Assets 18

1940 Services Provided Other LEAs 19

1941 LEAs Within the State 19

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Def. Page No,

1942 LEAs Outside the State1950 Refund of Prior Year's Expenditures1960 *Transfer From Other Funds1970 `Sales of Bonds1980 Premium on Bonds Sold1990 Miscellaneous

2000 REVENUE FROM INTERMEDIATE SOURCES

2100 Grantl-In-Aid

2110 Unrestricted Grants-In-Aid2120 Restricted Grants-In-Aid

2200 "Revenue in Lieu of Taxes

2300 Revenue for/on Behalf of the LEA

3000 REVENUE FROM STATE SOURCES

3100 Grants -In -Aid

3110 Unrestricted Grants-In-Aid3120 Restricted Grants-In-Aid

3200 Revenue in Lieu of Taxes

3300 Revenue for/on Behalf of the LEA

4000 REVENUE FROM FEDERAL SOURCES

4100 Grants-InAid

4110 Unrestricted Grants-In'-Aid Received Directly From Federal Government4120 Unrestricted Grants-In-Aid Received From Federal Government Through the State4130 Restricted Grants-In-Aid Received Directly From Federal Government4140 Restricted Grants-In-Aid Received From Federal Government Through the State

4200 Revenue in Lieu of Taxes

4300 Revenue for/on Behalf of the LEA

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19

19

19

19

19

19

19

19

19

19

20

20

20

2020

20

20

20

20

202021

21

21

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*Revenues with an asterisk are not revenues to a LEA.

DEFINITIONS OF REVENUE ACCOUNTS

Code Descriptor

1000 REVENUE FROM LOCAL SOURCES

1100 Taxes. Compulsory charges levied by a gov-ernmental unit for the purpose of financingservices performed for the common benefit.

1110 Ad Valorem Taxes Levied by LEAs. Taxeslevied by a LEA on the assessed valuation ofit-ml and personal property located within theLEA which, within legal limits, is the finalauthority in determining the amount to beraised for school purposes. Separate accountsmay be maintained for real property (1111)and for personal property (1112).

15

DEFINITIONS OF REVENUE ACCOUNTS(Continued)

Taxes (Continued)

Code Descriptor

1120 Ad Valorem Taxes Levied by Another Gov-ernment Unit. Taxes levied f:r school pur-poses by a governmental unit other than theLEA. The LEA is not the final authority,within legal limits, in determining the amountto be raised. For example, after a LEA hasdetermined that a certain amount of revenueis necessary, another governmental unit mayexercise discretionary power in reducing orincreasing the amount. Separate accounts:nay be maintained for real property and forpersonal property.

1130 Sales and Use Taxes. Taxes imposed upon thesale and consumption of goods and services.It can be imposed upon the sale and con-sumption either as a general tax on the retailprice of all goods and/or services sold withinthe LEA jurisdiction with few or limitedexemptions, or as a tax upon the sale orconsumption of selected goods and services.Separate accounts may be maintained forgeneral sales tax and for selective sales taxes.

1140 Income Taxes. Taxes measured by net in-come, that is by gross income less certaindeductions permitted by law. These taxes canbe levied on individuals, corporations, orunincorporated businesses where the incomeis taxed distinctively from individual income.Separate accounts may be maintained forindividual, corporate, and unincorporatedbusiness income taxes.

1180 Other Taxes. Other forms of taxes leviedwithin the LEA such as licenses and permits.Separate accounts may be maintained foreach specific type of tax.

1190 Penalties and Interest on Taxes. Amountscollected as penalties for the payment oftaxes after the due date or dates, and theinterest charged on delinquent taxes from the

16

due date to the date of actual payment. Aseparate account for penalties ar.i interest oneach type of tax may be maintained.

1200 Revenue From Local Governmental UnitsOther Than LEAs. Revenue from the appro-priations of another local governmental unit.The LEA is not the final authority, withinlegal limits, in determining the amount ofmoney to be received, and the money is

raised by taxes or other means which are notearmarked for school purposes.

1300 Tuition. Money received from pupils, theirparents, welfare agencies or other LEAs foreducation provided in the LEA. (All moneyreceived for tuition from any source is income for the LEA receiving it, but whentabulating total State income for tuition,items 1312, 1322, and 1332 are excluded.When tabulating total income from tuition atthe Federal level, items 1311, 1321, 1331 aretabulated only.)

1310 Regular Day School Tuition. Money receivedas tuition for pupils attending the regular dayschools in the LEA.

1311 Tuition From Pupils or Parents. Money re-ceived from pupils, parents, or welfare agen-cies as tuition in regular day schools,

1312 Tuition From Other LEAs Within the State.Money received for regular day schools tui-tion from other LEAs within the State.

1313 Tuition From Other LEAs Outside the State.Money received for regular day schools tui-tion from LEAs outside the State.

1320 Adult/Continuing Education Tuition. Moneyreceived as tuition for pupils attending adult/continuing education schools in the LEA.

1321 Tuition From Pupils or Parents. Money received from pupils, parents, or welfare agen-cies as tuition in adult/continuing educationschools.

1322 Tuition From Other LEAs Within the State.

Money received for adult/continuing edu-cation schools tuition from other LEAswithin the State.

1323 Tuition From Other LEAs Outside the State.Money received for adult/continuing educa-tion schools tuition from other LEAs outsidethe State.

1330 Summer School Tuition. Money received astuition for pupils attending summer school.

1331 Tuition From Pupils or Parents. Money re-ceived from pupils, parents, or welfare agen-cies as tuition in summer school.

1332 Tuition From Other LEAs Within the State.Money received for summer school tuitionfrom other LEAs within the State.

1333 Tuition From Other LEAs Outside the State.Money received for summer school tuitionfrom LEAs outside the State.

14C0 Transportation FP-- Money received fortransporting pi 9 from school andschool activities, ,,ioney received fortransportation from any source is income forthe LEA receiving it, but when tabulatingtotal State income for transportation, items1412 and 1422 are excluded. When tabulatingtotal income from transportation at theFederal level, items 1411 and 1421 are tabu-lated only.)

1410 Regular Day School Transportation Fees.

Money received from Pupils, parents, welfareagencies, or other LEAs for transportingpupils to and from regular day schools.

1411 Transportation Fees From Pupils or Parents.Money received from pupils or parents totransport pupils to and from regular dayschools.

1412 Transportation Fees From Other LEAsWithin the State. Money received from LEAswithin the State to transport 'pupils to andfrom regular day schools.

17

1413 Transnnrtation Fees From Other LEAs Out-side the State. Money received from LEAsoutside the State to transport pupils to andfrom regular day schools.

1420 Summer School Transportation Fees. Moneyreceived from pupils, parents, welfare agen-cies, or other LEAs to transport pupils to andfrom summer school.

1421 Transportation Fees From Pupils or Parents.Money received from pupils or parents totransport pupils to and from summer school.

1422 Transportation Fees From Other LEAs Withinthe State. Money received from other LEAswithin the State to transport pupils to andfrom summer school.

1423 Transportation Fees From Other LEAs Out-side the State. Money received from otherLEAs outside the State to transport pupils toand from summer school.

1500 ninys on Investments. Money received asprofit from holdings for savings or specula-tion.

1510 Interest on Investments. Interest received ontemporary orU.S. Treasuryaccounts; timemortgagee. ortions.

permanent investments inbills, notes, Lands; savin;ge

certificates of deposit; notes;other interest-bearing obliga-

1520 Dividends on Investments. Dividends receivedon stocks.

1530 Gain or Loss on Sale of Investments. Gains orlosses realized from the sale of bonds orstocks. Gains represent the excess of the salesproceeds over cost or other basis at date ofsale (cost less amortization of premium in thecase of longterm bonds purchased at a

premium over par value or cost plus amortiza-tion of discount on long-term bonds pur-chased at a discount under par value). Gainsrealized from sale of U.S. Treasury billsrepresent interest income and should becredited to account 1510.

DEFINITIONS OF REVENUE ACCOUNTS(Continued)

Earnings on Investments (Continued)

Code Descriptor

Losses represent the excess of the cost orother basis at date of sale (as described above)over the sales proceeds.

1600 Food Service. Money received for dispensingfood to pupils and adults.

1610 Sales to Pupils. Money received from pupilsfor sale of food products and services. Betterfinancial control and analysis and reportingfor Federal and State reimbursements can beobtained for maintaining separate accountsby type of sale, such as type of lunch sales,milk program sales, and other sales. Use ofthis account is required for Federal reim-bursement purposes.

1620 Sales to Adults. Money received from adultsfor sale of food products and services is

recorded here. Regular meals or food prod-ucts sold to staff can be segregated fromspecial dinners and affairs for special purposesby maintaining separate accounts.

1700 Pupil Activities. Money received from school-sponsored activities. Taxes associated withsale items which are required to be collectedmay be recorded as a liability, not as arevenue.

1710 Admissions. Money received from patrons ofa school-sponsored activity such as a dance ora football game. Admissions may be recordedin separate accounts according to the type ofactivity.

1720 Bookstore Sales. Revenues of sales resultingfrom the operation of a bookstore. Bookstoresales can be part of the distributive educationcourses offered, pupil organization sponsored,or a school or system enterprise. Sales may berecorded in separate accounts according tothe type of proat..-..t sold.

18

1730 Pupil Organization Membership. Money re-ceived from pupils for membership in a

school's pupil organization or club. Member-ship usually grants the pupil certain privilegessuch as the right to be admitted to dances orathletic contests without charge or at a

reduced rate.

1790 Other Pupil Activity Income. Other incomefrom pupil activities. Separate accounts maybe maintained for such income as advertisingincome, concession income, guarantees, andclub dues.

1900 Other Revenue From Local Sources. Otherincome from local sources which is notclassified above.

1910 Rentals. Money received from the rental ofschool property, real or personal. It does notinclude rental from real property held forincome purposes; this revenue is recordedunder account 1500, Earnings on Investments.Separate accounts may be maintained for realproperty, textbooks, equipment, lockers,towels, and other.

1920 Contributions and Donations From PrivateSources. Money received from a philanthropicfoundation, private individuals, or privateorganizations for which no repayment orspecial service to the contributor is expected.Separate accounts may be maintained forrevenue unrestricted and revenue which is

restricted as to use.

1930 Sale and Loss of Fixed Assets. Revenue fromthe sale of school property or realized fromrecoveries for loss of school property. Sepa-rate accounts may be maintained for varioustypes of property, such as buildings, land, orequipment.

1931 Sale of Fixed Assets. Revenues from the saleof school property.

1932 Compensation for Loss of Fixed Assets.Revenues realized from recoveries for-loss ofschool property.

1940 Services Provided Other LEAs. Revenue fromservices provided other LEAs, other than fortuition and transportation services. Theseservices include data processing, purchasing,maintenance, cleanir,g, consulting, and guid-ance. Intermediate units will use this code inidentifying revenue for services provided toLEAs.

1941 LEAs Within the State. Revenue from servicesto LEAs within the State.

1942 LEAs Outside the State. Revenue from ser-vices to LEAs outside the State.

1950 Refund of Prior Year's Expenditures. Moneyreceived in refund of an expenditure chargedto a prior fiscal year's budget. A refund of anexpenditure made in the same fiscal year'sbudget may be recorded in the appropriateexpenditure account as a reduction of theexpenditure.

1960 Transfer From Other Funds. Money receivedunconditionally from another fund withoutexpectation of repayment. Such monies arerevenues of the receiving fund, but not of theLEA as a whole. Separate accounts may bemaintained for specific funds.

1970 Sales of Bonds. This account appears in theCapital Projects Fund and includes proceedsfrom the sales of bonds, except that if bondsare sold at a premium, only those proceedsrepresenting the par value of the bondsconstitute a revenue of the Capital ProjectsFund. These proceeds are not revenue of theLEA as a whole.

1980 Premium on Bonds Sold. That portion of thesales price of bonds in excess of their parvalue. The premium represents an adjustmentof the interest rate. In the absence of a legalrequirement in this account, premium shouldbe credited to the Debt Service Fund.

.1990 Miscellaneous. Revenue received from fines,telephone coin box commissions, and any

19

other revenue from local sources such aspurchase discounts not covered by OtherRevenue From Local Sources accounts.

2000 REVENUE FROM INTERMEDIATESOUR( -S

2100 Grants-In-Aid. Grants-in-aid are contributionsmade by an intermediate unit to a LEA andare not related to specific revenue sources ofthe intermediate governmental unit; i.e., gen-eral sources, or if related to specific revenuesources of the intermediate governmentalunit, are distributed on some flat grant orequalization basis.

2110 Unrestricted Grants-in-Aid. Revenue receivedas grants by the LEA which can be used forany legal purpose desired by the LEA withoutrestriction. Separate accounts may be main-tained, for general source grants-in-aid whichare not related to specific revenue sources ofthe intermediate governmental unit, and forthose assigned to specific sources of revenueas appropriate.

2120 Restricted Grants-in-Aid. Revenues receivedas grants by the LEA which must be used fora categorical or specific purpose. If suchmoney is not completely used by the LEA, itmust be returned, usually, to the intermediategovernmental unit. Separate accounts may bemaintained for general source grants-in-aidwhich are not related to specific revenuesources of the intermediate gmarnmentalunit, and for those assigned to specificsources of revenue as appropriate.

2200 Revenue in Lieu of Taxes. Payments madeout of general revenues by an intermediategovernmental unit to the LEA in lieu of taxesit would have had to pay had its property orother tax base been subject to taxation by theLEA on the same basis as privately ownedproperty or other tax base. It would includepayments made for privately owned propertywhich is not subject to taxation on the samebasis as other privately owned property dueto action by the intermediate governmentalunit.

DEFINITIONS OF REVENUE ACCOUNTS(Continued)

Revenue From Intermediate Sources (Continued)

Code Descriptor

2300 Revenue for/on Behalf of the LEA. Pa,,ment,made by an intermediate governmental juris-diction for the benefit of the LEA, orcontributions of equipment or supplies. Itincludes the payment to a pension fun!) bythe intermediate governmental unit on behalfof a LEA employee fur services rendered tothe LEA, and a contribution of fixed assetsby an intermediate governmental unit to theLEA. Separate accounts should be maintainedto identify the specific nature of the revenueitem.

An offsetting charge would be made to theappropriate expenditure account as if theLEA had expended the funds itself.

3000 REVENUE FROM STATE SOURCES

3100 Grants-in-Aid. Grants -in -aid are contributionsmale from State funds to a LEA and are notreialed to specific revenue sources of theState; general source, or if related tospecific revenue sources of the State, aredish ihuted on some flat grant or equalizationbasis.

3110 Unrestricted Grants-in-Aid. Revenues receivedas grants by the LEA which can be used forany legal purpose desired by the LEA withoutrestriction. Separate accounts may be main-tained for general grants-in-aid which are notrelated to specific revenue sources of theState, and for those assigned to specificsources of revenue as appropriate.

3120 Restricted Grants-in-Aid. Revenues received asgrants by the LEA which must be used for acategorical or specific purpose.

If such money is not completely used by theLEA, it must be returned, usually, to theState. Separate accounts may be maintainedfor general source grants-in-aid which are notrelated to specific revenue sources of the

20

State, and for those assigned to specificsources of revenue as appropriate.

3200 Revenue in Lieu of Taxes. Payments madeout of general revenues by a State to the LEAin lieu of taxes it would have had to pay hadits property or other tax base been subject tothe taxation by the LEA on the same basis asprivately owned property or other tax base. Itwould include payments made for privatelyowned property which is not subject totaxation on the same basis as other privatelyowned property due to action by the State.

3300 Revenue for/on Behalf of the LEA. Paymentmade by a State for the benefit of the LEA,or contributions of equipment or supplies. Itincludes the payment of a pension fund bythe State on behalf of a LEA employee forservices rendered to the LEA, and a contribu-tion of fixed assets by a State unit to the

Cs LEA. Separate accounts may be maintainedto identify the specific nature of the revenueitem.

An offsetting charge would be made to theappropriate expenditure account as if theLEA had expended the funds itself.

4000 REVENUE FROM FEDERAL SOURCES

4100 Grants-in-Aid. Grants-in-aid are contributionsmade by the Federal Government to a LEAand are not related to specific revenue sourcesof the Federal Government; i.e., general, ifrelated to specific revenue sources of theFederal Government, are distributed on someflat grant or equalization basis.

4110 Unrestricted Grants-In-Aid Received DirectlyFrom Federal Government. Revenues receiveddirectly from the Federal Government asgrants by the LEA which can be used for anylegal purpose desired by the LEA withoutrestriction.

4120 Unrestricted Grants-In-Aid Received FromFederal Government Through the State. Rev-enues received from the Federal Governmentthrough the State as grants which can be used

for any legal purpose desired by the LEAwithout restriction.

4130 Restricted Grants-In-Aid Received DirectlyFrom Federal Government Revenues receiveddirectly from the Federal Governmert asgrants by the LEA which must be used for acategorical or specific purpose. If such moneyis not completely used by the LEA, it usuallyis returned to the governmental unit.

4140 Restricted Grants-In-Aid Received From Fed-eral Government Through the State. Reven-ues received from the Federal Governmentthrough the State as grants by the LEA whichmust be used for a categorical or specificpurpose. If such money is not completelyused by the LEA, it usually is returned to thegovernmental unit.

4200 Revenue v. Lieu of Taxes. Payments madeout of genera revenues by the Federal Gov-ernment unit to the LEA in lieu of taxes it

21

would have had to pay had its property orother tax base been subject to taxation by theLEA on the same basis as privately ownedproperty or other tax base. It would includepayment made for privately owned propertywhich is not subject to taxation on the samebasis as other privately owned property dueto action by the Federal Government unit. .

4300 Revenue for/on Behalf of the LEA. Paymentsmade by the Federal Government for thebenefit of the LEA, or contributions ofequipment or supplies. It includes a contri-bution of fixed assets by a Federal govern-mental unit to the LEA and foods donated bytheFe6eral Government to the LEA. Sepa-rate accounts should be maintained to iden-tify the specific nature of the revenue item.

An offsetting charge would be made to theappropriate expenditure account as if theLEA had expended the funds itself. .

Chapter 4

CLASSIFICATION OF EXPENDITURES

The expanding budgeting demands on LEAs formore services in the nature of special programs forexceptional pupils require prudent budgetary controlto efficiently utilize available resources. The purpose ofclassifying expenditures is to provide a basis forgrouping the expenditures so that a meaningful analysiscan be made. Expenditures are classified by function(why purchased), object (What purchased), organiza-tion unit and activity (for whom purchased), and fiscalyear (when purchased).

The purposes and objects for which expendituresare made are categorized into types. These types arecalled dimensions, such as Fund, Fiscal Year, Instruc-tional Organization, Function, and Object. These groupheadings are not account titles; they are used only asconvenient means of grouping specific expendituresaccounts for definition purposes. LEAs may also find,where they utilize the chart of accounts in an

accounting system, that certain dimensions can becombined as the system is developed. For example, theActivity Assignment dimension, useful in identifyingcost by staff activities, can be combined under anaccounting system with the Object classification, Sala-ries. Similarly, depending upon the designed system,Instructional Organization and Operational Unit can becombined.

No single expenditure classification grouping (re-ferred to in the Chart of Accounts as dimension) , sadalone would provide enough information for account-ability and responsive management. Objects of ex-penditures such as salaries, purchased services, supplies,and materials will be meaningless unless they can berelated directly to the service areas and responsibilityunits for which they were purchased. Thus, by relatinga specific expenditure to all dimensions, more com-plete accountability is realized and more information isavailable to management.

Careful evaluation of the results of classification ofexpenditures proves it to be well worth the time andexpense involved. By using requisition forms pre-printed for each unit or program area and having

22

additional descriptive information supplied by theperson ordering the object, the purchasing officer forthe LEA can file a copy of the form in each

appropriate file for future analysis. These forms canthen be consolidated on summary forms on a quart-erly, semiannual, or annual basis as needed. Themethod provides maximum utilization of accountinginformation for planning, budgeting, accounting, evalu-ating, reporting, and analysis procedures,

The amount of detailed information needed is notthe same for all LEAs. The extent to which the chartof accounts is implemented depends upon the degreeof detail necessary to meet the needs of all users of thefinancial information of LEAs. The classification ofexpenditures fisted in this handbook has been devel-oped as a guide for collecting and recording thefinancial information of a LEA in order to satisfystatutory requirements, provide prudent stewardship offunds, and meet various management needs. In addi-tion, the records system developed enables LEAs tosummarize data in usable formats for State and Federalreports.

For a LEA to perform all its various managementfunctions, it needs to utilize all the dimensions setforth in the following classification of expenditures.This classification has a built-in flexibility in that anyaccount may have additional subaccounts based on theneed for more detailed information, or accounts maybe combined for less detailed information. Small LEAsmay not need or desire to utilize all of the dimensions,either for economy or other reasons, but, any reduc-tion in the number of accounts used should be madeonly after local, State, and Federal information needshave been reviewed.

SUMMARY OF EXPENDITURE ACCOUNTDIMENSIONS

In table 3, related expenditure accounts and typesof expenditures or dimensions are summarized. Follow-ing the table, definitions of dimensions and expendi-ture accounts are listed.

TABLE 3Summary of Expenditure Accounts

(Utilize subcoding where appropriate)

A FUND

1 General Fund2 Special Revenue Fund3 Debt Service Fund4 Capital Project Fund5 Food Service Fund6 Pupil Activity Fund7 Trust & Agency Funds8 General Fixed Assets9 General Long-Term Debt

B OBJECTS

Def. Page No.

100 Salaries

110 Regular Salaries120 Temporary Salaries130 Overtime Salaries

200 Employee Benefits

300 Purchased Services

310 Professional and Technical Services311 Instruction Services312 instructional Programs Improvement Services313 Pupil Services314 Staff Services315 Management Services316 Data Processing Services317 Statistical Services318 Board of Education Services319 Other Professional and Technical Services

320 Property Services321 Public Utilities Services322 Cleaning Services323 Repairs and Maintenance Services324 Property Insurance325 Rentals329 Other Property Services

330 Transportation Services331 Pupil Transportation332 Travel339 Other Transportation Services

340 Communication350 Advertising360 Printing and Binding370 Tuition390 Other Purchased Services

400 Supplies and Materials

410 Supplies420 Textbooks

. 23

303030303030303030

30

30

31

3131

31

31

31

31

31

31

31

31

31

31

31

3232323232323232323232323232333333

33

3333

TABLE 3Summary of Expenditure Accounts (Continued)

Def. Page No.

B OBJECTS (Continued)

430 Library Books 33440 Periodicals 33450 Warehouse Inventory Adjustment 33490 Other Supplies and Materials 33

500 Capital Outlay 33

510 Land 34520 Buildings 34530 Improvements Other Than Buildings 34540 Equipment 34550 Vehicles 34560 Library Books 34590 Other Capital Outlay 34

600 Other Objects 34

610 Redemption of Principal 34

620 Interest 34630 Housing Authority Obligations 34

640 Dues and Fees 35

650 Insurance and Judgments 35

651 Liability Insurance 35

652 Fidelity Bond Premiums 35

653 Judgments Against the LEA 35659 Other Insurance and Judgments 35

69Q Miscellaneous Objects 35

700 Transfers 35

710 Fund Modifications 35

720 Transits 35

790 Other Transfers 35

C FUNCTION 35

1000 Instruction 36

1100 Regular Programs 371110 Elementary Programs 371120 Middle/Junior High Programs 371130 High School Programs 37

1131 Preparatory, Postsecondary Education Programs 371132 Preparatory, Postsecondary Employment Programs 371139 Other High School Programs 37

1190 Other Regular Programs 37

1200 Special Programs 371210 Programs for Gifted and Talented 371220 Programs for Mentally Retarded 371230 Programs for Physically Handicapped 371240 Programs for Einotionalh Disturbed 381250 Programs for Culturally Different 381260 Programs for Pupils Witn Learning Disabilities 38

24

Def. Page No.

1290 Other Special Programs 38

1300 Adult/Continuing Education Programs 381310 Adult Basic Education Programs 381320 Advanced Adult Education Programs 381330 Occupational Programs 381340 Upgrading in Current Occupation Programs 381350 Retraining for New Occupation Programs 381360 Special Interest Programs 381370 Life En richment Programs 381390 Other Adult/Continuing Education Programs 39

2000 Supporting Services 39

2100 Support ServicesPupils 3921'0 Attendance and Social Work Services 39

2111 Service Area Direction 392112 Attendance Services 39

2113 Social Work Services 392114 Pupil Accounting Services 392119 Other Attendance.and Social Work Services 39

2120 Guidance Services 392121 Service Area Direction 392122 Counseling Services 392123 Appraisal Services 392124 Information Services 392125 Record Maintenance Services 402126 Placement Services 402129 Other Guidance Services 40

2130 Health Services 402131 Service Area Direction 402132 Medical Services 402133 Dental Services 402134 Nurse Services 402139 Other Health Services 40

2140 Psychological Services 402141 Service Area Direction 402142 Psychological Testing Services 402143 Psychological Counseling Services 402144 Psychotherapy Services 412149 Other Psychological Services 41

2150 Speech Pathology and Audiology Services 412151 Service Area Direction 41

2152 Speech Pathology Services 412153 Audiology Services 412159 Other Speech Pathology and Audiology Services 41

2200 Support ServicesInstructional Staff 41

2210 Improvement of Instruction Services 412211 Service Area Direction 412212 Instruction and Curriculum Development Services 412213 Instructional Staff Training Services 412219 Other Improvement of instruction Services 41

2220 Educational Media Services 412221 Service Area Direction 412222 School Library Services 422223 Audiovisual Services 422224 Educational Television Services 422225 Computer-Assisted Instruction Services 422229 Other Educational Media Services 42

25

TABLE 3Summary of Expenditure Accounts (Continued)

C FUNCTION (Continued)

Def. Page No.

2300 Support ServicesGeneral Administration2310 Board of Education Services

2311 Service Area Direction2312 Board Secretary Services2313 Board Treasurer Services2314 Election Services2315 Legal Services2316 Tax Assessment and Collection Services2317 Audit Services2319 Other Board of Education Services

2320 Executive Administration Services2321 Office of the Superintendent Services2322 Community Relations Services2323 Staff Relations and Negotiations Services2324 State and Federal Relations Services2329 Other Executive Administration Services

2400 Support ServicesSchool Administration2410 Office of the Principal Services2490 Other Support ServicesSchool Administration

2500 Support ServicesBusiness2510 Direction of Business Support Services2520 Fiscal Services

2521 Service Area Direction2522 Budgeting Services2523 Receiving and Disbursing Funds Services2524 Payroll Services2525 Financial Accounting Services2526 Internal Auditing Services2527 Propel ty Accounting Services2529 Other Fiscal Services

2530 Facilities Acquisition and Construction Services2531 Service Area Uirectico2532 Land Acquisition and Development Services2533 Architecture and Engineering Service2534 Educational Specifications Development Services2535 Building Acquisition, Construction, and Improvements Services2539 Other Facilities Acquisition, and Construction Services

2540 Operation and Maintenance of Plant Services2541 Service Area Direction2542 Care and Upkeep of Buildings Services2543 Care and Upkeep of Grounds Services2544 Care and Upkeep of Equipment Services2545 Vehicle, Servicing and Maintenance Services (other than buses)2546 Security Services2549 Other Operation and Maintenance of Plant Services

2550 Pupil Transportation Services2551 Service Area Direction2552 Vehicle Operation Service2553 Monitoring Services2554 Vehicle Servicing and Maintenance Services2559 Other Pupil Transportation Services

2560 Food Services2561 Service Area Direction2562 Food Preparation and Dispensing Services2563 Food Delivery Services2569 Other Food Services

26

424242424242424242434343434343434343434343434344444444444444444444444444444545454545454545454545454545454646413

46

Def. Page No.

2570 Internal Services 462571 Service Area Direction 462572 Purchasing Services 402573 Warehousing and Distributing Services 462574 Printing, Publishing, and Duplicating Services 462579 Dther Internal Services 46

2590 Other Support ServicesBusines:. 462600 Support ServicesCentral 46

2610 Direction of Central Support Services 462620 Planning, Research, Development, and Evaluation Service 46

2621 Service Area Direction 46

2622 Development Services 462623 Evaluation Services 47

2624 Planning Services 47

2625 Research Services 47

2629 Other Planning, Research, Development, and Evaluation Services 472630 information Services 47

2631 Service Area Direction 472632 Internal Information Services 472633 Public Information Services 472634 Management Information Services 472639 Other Information Services 47

2640 Staff Services 472641 Service Area Direction 472642 Recruitment and Placement Services 472343 Staff Accounting Services 472(344 Inservice Training Services (for noninstructional staff) 472645 Health Services 472649 Dther Staff Services 47

2650 Statistical Services 472651 Service Area Direction 472652 Statistical Analysis Services 482653 Statistical Reporting Services 482659 Other Statistical Services 48

2660 Data Processing Services 482661 Service Area Direction 482662 Systems Analysis Services 4F,

2663 Programing Services /.82664 Operations Services 48

462669 Other Data Processing Services2690 Other Support ServicesCentral 48

2900 Other Supporting Services 48

3000 Community Services 48

3100 Direction of Community Services 483200 Community Recreation Services 483300 Civic Services 483400 Public Library Services 483500 Custody and Care of Children Services 493600 Welfare Activities Services 493800 Nonpublic School Pupils Services 493900 Other Community Services 49

4000 Nonprogramed Charges 49

4100 Payments to Other Governmental Units (within the State) 494200 Payments to Other Governmental Units (outside the State) 494300 Transfers of Funds 49

5000 Debt Services 49

27

TABLE 3Summary of Expenditure Accounts (Contlhued)

D OPERATIONAL UNIT (Example only)

001 Friedley Elementary School501 Mc Luna Middle School701 Jones High School751 Chismore Vocational-Technical School781 Curtis Junior College901 Central Administrative Office911 Main Warehouse921 Main Bus Garage

E PROGRAM {Example only}

Def. Page No.

4,

49

5050505050505050

50

'{Function, Program, and Operational Unit merge Into one array as cost centers in system development}

1100 000 Regular Programs

1110 000 Elementary Programs

1111 001 Program No. 1 Friedley Elementary School1112 001 Program No. 2 Friedley Elefiientary School

1111 1211112 121

X X X X X XProgram No. 1 Johnson Elementary SchoolProgram No. 2 Johnson Elementary School

X X X X X X1120 000 Middle/Junior High School Programs

1121 501 Program No. 1 McLune Middle School1122 501 Program No. 2 Mc Lune Middle school

X X X X X X1121 535 Program No. 1 Taft Junior High School1122 535 Program No 2 Taft Junior High School

X X X X X X

1130 000 High School Programs1131 701 Preparatory Postsecondary Education Jones High School1132 701 Preparatory Postsecondary Employment Jones High School

1131 721 Preparatory Postsecondary Education Martin Senior High School1132 721 Preparatory Postseccndary Employment ;-; Martin Senior High School

1200 000 Special Programs

1210 001 Program for the Gifted & Talented Friedley Elem. School1220 001 Program for the Mentally Retarded Friedley Elem. School1230 701 Program for the Physically Handicapped Jones High School

X X X X X X

1300 000 Adult/ContinuIng Education Programs

1310 501 Adult Basic Education McLune Middle School1310 701 Adult Basic Education Jones High School1320 701 Advanced Adult Education Jones High School1370 721 Life Enrichment Martin Senior High School

28

Def. Page No.

1350 801 Retraining for NPW Occupations Lamar Skill Center1341 901 Upgrading in Current Occupations (Accounting) Central Administration Building1342 921 Upgrading in Current Occupations (Mechanics) Bus Garage

X X X X X X

F SOURCE OF FUNDS

0 Nonidentifiable1 Local2 Intermediate3 State4 Federal9 Other

G FISCAL YEAR

0 FY 1969-701 FY 1970.712 FY 1971-723 FY 1972-734 FY 1973-745 FY 1974-75

H INSTRUCTIONAL ORGANIZATION

51

51

51

51

51

51

51

51

51

51

51

51

51

51

51

10 Elementary School 5120 Middle/Junior High School 5130 High School 5240 Adult/Continuing Education School 5250 Junior College 5290 Other School 52

I JOB CLASSIFICATION ACTIVITY 52

100 Official/Administrative200 ProfessionalEducational300 ProfessionalOther400 Technical500 Office/Clerical600 Crafts and Trades700 Operative800 Laborer900 Service Work

J TERM

525354555657575758

58

1 Fall TermDay 582 Fall TermEvening 583 Winter TermDay 584 Winter TermEvening 585 Spring TermDay 586 Spring TermEvening 587 Summer TermDay 588 Summer TermEvening 58

K SPECIAL COST CENTERS 58

29

DEFINITIONS OF DIMENSIONS ANDACCOUNTS

AFUND

A Fund is an independent fiscal and accountingentity, preferably with a self-balancing set of accounts,with its own assets, liabilities, resources, and fundbalances which are segregated for the purpose ofcarrying on specific activities of a LEA in accordancewith special regulations, restrictions, or limitations. Allmoney expended by a LEA is classified and defined inthis dimension.

Code Descriptor

1 General Fund. A set of accounts used to showall ordinary operation:: of a LEA, generally alltransactions which do not have to be accountedfor in another fund.

2 Special Revenue Fund. Sets of accounts used torepresent transactions of programs that are of aspecial nature. Sometimes called designated pur-pose funds, their uses and limitations are speci-fied by the legal authority establishing the fundand, generally, the resources of this fund cannotbe diverted to other uses. Programs that aredesigned for specific purposes, may be codedas sub-classifications of the Special RevenueFund.

3 Debt Service Fund. Used to account for pay-mant of interest and principal on all generalobligation debt. It does not include moneypayable exclusively from special assessments orrevenue debt issued for and serviced by agovernment enterprise.

4 Capital Project Fund. Used to account for allresources used for acquiring capital facilitiesincluding real property.

5 Food Service Fund. Used to record financialtransactions related to food service operations.

6 Pupil Activity Fund. Used to record financialtransactions related to school-sponsored pupiland interscholastic activities. These activities are

30

supported, generally, by income from pupils,gate receipts, and other fund-raising activities.Support may be provided, however, by localtaxation.

7 Trust and Agency Funds. Funds used to accountfor money and property held in trust by a LEAfor individuals, government entities, or non-public organizations. A Trust Fund is usually inexistence over a longer period of time than anAgency Fund. Primarily, Agency Funds are usedas a clearing mechanism for cash resourcescollected by the LEA, held for a short period,and then disbursed to authorized recipients.

8 General Fixed Assets. A self-balancing group ofaccounts used to provide a record of fixed assetsowned by the LEA. Fixed assets purchasedunder Lease-Purchase acireements are entered inthis group after the last payment is made.

9 General Long-Term Debt. A self-balancing groupof accounts used to record general obligationbonds supported by general revenues of a

governmental unit. The proceeds of such debtmay be spent for facilities which may be utilizedin the operations of several funds.

B.OBJECTS

Object means the service or commodity obtained asthe result of a specific expenditure. Seven major Objectcategories are identified and described in this hand-book: (1) Salaries, (2) Employee Benefits, (3) Pur-chased Services, (4) Supplies and Materials, (5) CapitalOutlay, (6) Other Objects, and (7) Transfers. Thesebroad categories are subdivided to obtain more detailedinformation about objects of expenditures. A three-digit serial number is used which makes it possible tosearch out detailed information. Following are defini-tions of the major categories and subcategories.

Code Descriptor

100 Salaries. Amounts paid to employees of the LEAwho are considered to be in positions of apermanent nature or hired temporarily, includ-ing personnel substituting for those in perma-nent positions. This includes gross salary forpersonal services rendered while ON THE PAY-ROLL of the LEAs.

110 Regular Salaries. Full-time, part-time, and pro-rated portions of the costs for work performedby employees of the LEA who are considered tobe in positions of a permanent nature.

120 Temporary Salaries. Full-time, part-time, andprorated portions of the costs for work per-formed by employees of the LEA who are hiredon a temporary or substitute basis to performwork in positions of either temporary or perma-nent nature.

130 Overtime Salaries. Money paid to employees ofthe LEA in positions of either a temporary orpermanent nature for work performed in addi-tion tothe normal work period for which theemployee is compensated under Regular Salariesand Temporary Salaries above. The terms ofsuch payment for overtime is a matter of Stateand local regulation and interpretation.

200 Employee Benefits. Amounts paid by the LEAin behalf of employees; these amounts are notincluded in the gross' salary, but are over andabove. Such payments are fringe benefit pay-ments, and, while not paid directly to em-ployees, nevertheless are part of the cost ofsalaries and benefits. Examples are: (a) GroupHealth or Life Insurance, (b) Contributions toEmployee Retirement, (c) Social Security, (d)Workmen's Compensation, and (e) paymentsmade to personnel on sabbatical leave.

300 Purchased Services. Amounts paid for personalservices rendered by personnel who are not onthe payroll of the LEA, and other services whichthe LEA may purchase. While a product may ormay not result from the transaction, the primaryreason for the purchase is the service provided.

310 Professional and Technical Services. Serviceswhich by their nature can be performed only bypersons with specialized skills and knowledge.Included are the services of architects, engineers,auditors, dentists medical doctors, lawyers, con-sultants, teachers, accountants, etc.

311 Instruction Services. Nonpayroll services per-formed by qualified persons directly engaged inproviding learning experiences for pupils. In-

31

eluded are the services of teachers, teachingassistants, and teacher aides and PerformanceContract activities.

312 Instructional Programs Improvement ServicesServices performed by persons qualified to assistteachers and supervisors enhance the quality ofthe teaching process. This category includescurriculum consultants, inservice trainingspecialists, etc., not on the payroll.

313 Pupil Services. Nonpayroll services of qualifiedpersonnel to assist pupils and their parents insolving mental and physical problems to supple-ment the teaching process.

314 Staff Services. Services performed by qualifiedpersonnel to assist in employing and assigningstaff. This category includes specialists in per-sonnel counseling and guidance.

315 Management Services. Services performed bypersons qualified to assist management either inthe broad policy area or in the general operationof the LEA. This category includes consultants,

Individually or as a team, to assist the'chiefexecutive in conference or through systematicstud ies.

316 Data Processing Services Services performed bypersons, organizations, or another agency quali-fied to process data. This category includesthose data processing services purchased fromanother agency or concern or specialists who arecontracted to perform a specific task on a shorttime basis.

317 Statistical Services. Nonpayroll services per-formed by persons or an organization qualifiedto assist in handling statistics. This categoryincludes special services for analysis, tabulations,or similar work.

318 Board of Education Services. ServiCes performedby qualified persons to assist the governing bodyof the LEA in its particular activities. Thiscategory includes the specialized services of legalcounsel, counseling the body in employing achief executive officer, counsel on tax policy,etc.

DEFINITIONS OF DIMENSIONS AND ACCOUNTS(Continued)

aOBJECTS (Continued)

Code Descriptor

319 Other Professional and Technical Services. Serv-ices which are professional and technical innature which have not been classified above.

320 Property Services. Services purchased to operate,

repair, maintain, insure, and rent propertyowned and/or used by the LEA. These servicesare performed by persons other than LEAemployees.

321 Public Utility Service& Expenditures for servicesusually provided by public utilities such aswater, sewerage, electricity, gas, and garbagecollection. This includes those same serviceswhether the utility company is public or private.Costs for telephone and telegraph are notincluded here, but are included in Communica-tion.

322 Cleaning Services. Services purchased to cleanbuildings other than those provided by LEAemployees.

323 Repairs and Maintenance Service& Expendituresfor repairs and maintenance services not pro-vided directly by LEA personnel. This includescontracts and agreements covering the upkeep ofgrounds, buildings, and equipment. Costs fornew construction, renovating, and remodelingare not included here, but are considered underCapital Outlay.

324 Property Insurance. Expenditures for insuranceon any type property owned or leased by theLEA.

325 Rental& Expenditures for leasing or rentingland, buildings, and equipment for both tempo-rary and long range use of the LEA. Thisincludes bus and other vehicle rental whenoperated by LEA personnel, lease or dataprocessing equipment, lease-purchase arrange-ments, and similar rental agreements. Costs for

single agreements covering equipment as well asoperators are not included here, but are con-sidered elsewhere under Purchased Services (seeTransportation, Printing and Binding, PublicUtility Services, Servicing and Maintenance Ser-vices).

329 Other Property Services: Property Services pur-chased which are not classified above.

330 Transportation Services. Expenditures for trans-porting children to school and official travel ofLEA employees.

331 Pupil Transportation. Expenditures to personsor agencies for the purpose of transportingchildren to school. These include those expendi-tures to individuals who transport themselves orto parents who transport their own children whotransport themselves for reimbursement of trans-portation experises. Expenditures for the rentalof buses which are operated by personnel on theLEA payroll are not recorded here; they arerecorded under Purchased ServicesRentals.

332 Travel. Costs for transportation, meals, hotel,and other expenses associated with traveling onbusiness for the LEA. Payments for Per Diem inlieu of reimbursements for subsistence roomand board) also are charged here.

339 Other Transportation Services. Transportationservices other than those classified above._

340 Communication. Services provided by persons orbusinesses to assist in transmitting and receivingmessages or information. This category includestelephone and telegraph services as well as

postage machine rental and postage.

350 Advertising. Expenditures for printed announce-ments in professional periodicals and newspapersor announcements broadcast by radio and tele-vision networks. These expenditures includeadvertising for such purposes as personnel re-cruitment, bond sales, used equipment sales, andother objects. Costs for professional fees foradvertising or public relation services are notrecorded here but are charged to ProfessionalServices.

32

380 Printing and Binding. Expenditures for jobprinting and binding usually according to specifi-cations of the LEA. This includes the design andprinting of forms and posters as well as printingand binding of LEA publications. Preprintedstandard forms are not charged here, but arerecorded under Supplies and Materials.

370 Tuition. Expenditures to reimburse other educa-tional agencies for services rendered to studentsresiding in the legal boundaries described for thepaying LEA.

390 Other Purchased Services. Expenditures for allother purchased services not included above.

400 Supplies and Materials. Amounts paid for mate-rial items of an expendable nature that areconsumed, worn out, or deteriorated by use; oritems that lose their identity through fabricationor incorporation into different or more complexunits or substances. Reference is made to Ap-pendix A for the criteria for distinguishingbetween a supply and an equipment item andfor a detailed list of supply and equipmentitems.

It should be noted that a more thoroughclassification of expenditures will be achieved byidentifying the Object with the Area of Respon-sibility; i.e., the type of supplies, such asaudiovisual supplies or classroom teaching sup-plies. Should greater detail be desired the ex-penditure classification may include programarea: mathematics supplies.

For evaluation of a particular supply object,supplies can be broken down into subdivisionssuch as food and other supplies in the FoodService program. To determine the merit ofprepared food versus raw food, two furtherbreakdowns could be used." (1) food preparedfor serving and (2) unprepared food.

410 Supplies. Expenditures for all supplies for theoperation of a LEA, including freight andcartage. Included are coal, wood, and oil usedfor heating purposes. If such supplies arehandled for resale to pupils, only the net cost of

_supplies is recorded here.

33

420 Textbooks. Expenditures for prescribed bookswhich are purchased for pupils or groups ofpupils, and resold or furnished free to them.This category includes the costs of workbooks,textbook binding or repairs, as well as the netamount of textbooks which are purchased to beresold or rented.

430 Library Books. Expenditures for regular orincidental purchases of library books availablefor general use by students, including anyreference books, even though such referencebooks may be used solely in the classroom. Alsorecorded here are costs of binding or otherrepairs to school library books. The initialpurchase of books for a new school library orany material accessions involving an expansionof the library are recorded under Capital Outlayas 560.

440 Periodicals. Expenditures for periodicals andnewspapers for general use by the school library.A periodical is any publication appearing atregular intervals of less than a year and continu-ing for an indefinite period.

450 Warehouse Inventory Adjustment. Expenditureswhich are the result of a deficit usually found inan audit or count of items held in a store orwarehouse inventory. Expenditures for the pur-chase of these items are generally debited to anAsset account, Inventory of Supplies, and arecharged to the proper appropriation as they arerequisitioned. Only a loss should be charged tothis account. If the physical inventory reflectsan overage in items, the excess is debited to theAsset account, Inventory and Supplies.

490 Other Supplies and Materials. Expenditures forall other supplies and materials not includedabove.

500 Capital Outlay. Expenditures for the acquisitionof fixed assets or additions to fixed assets. Theyare expenditures for land or existing buildings;improvements of grounds; construction of build-ings; additions to buildings; remodeling of build-ings; initial equipment; additional equipment;and replacement of equipment.

DEFINITIONS OF DIMENSIONS AND ACCOUNTS(Continued/

B.OBJECTS (Continued)

Code Descriptor

In the original Handbook II, Capital Outlay wastreated primarily as a Service Area, or function,rather than an object. Hence, it was importantto differentiate between Capital Outlay andMaintenance of Plant.

In this version, Capital Outlay is an object, orwhat is purchased. Using the multidimensionalcoding structure, Capital Outlay may be relatedto all Functions, Service Areas, Areas of Re-sponsibility, and Program Areas should it bedesirable.

For clarification of Maintenance Costs andImprovement Costs see Service Areas, Opera-tion and Maintenance of Plant, and FacilitiesAcquisition and Construction.

510 Land. Expenditures for the purcha.s of land.

520 Buildings. Expenditures for acquiring buildingsand additions, either existing or to be con-structed. Included are expenditures for install-ment or lease payments (except interest) whichhave a terminal date and result in the acquisitionof buildings, except payments to public school-housing authorities or similar agencies. Expendi-tures for major permanent structural alterationsand the initial or additional installation ofheating and ventilating systems, electrical sys-tems, plumbing systems, fire protection systems,and other service systems in existing buildingsare included also.

530 Improvements Other Than Buildings. Expendi-tures for the initial and additional improvementof sites and, adjacent ways after acquisition bythe LEA consisting of such work as grading,landscaping, seeding, and planting of shrubs andtrees; constructing new sidewalks, roadways,retaining walls, sewers and storm drains; install-big hydrants; initial surfacing and soil treatmentof athletic fields and tennis courts: furnishing

and installing for the first time, fixed play-ground apparatus, flagpoles, gateways, fences.and underground storage tanks which are notparts of building service systems; and demolitionwork. Special assessments against the LEA forcapital improvements such as streets, curbs, anddrains are also recorded here.

540 Equipment. Expenditures for the initial, addi-tional, and replacement items of equipment,such as furniture and machinery. In order todifferentiate between initial or additional equip-ment purchases and replacement equipmentpurchase it is recommended that subacoounts beestablished with those titles. See appendix A fora detailed list of supply and equipment items.

550

560

Vehicles. Expenditures for the purchase ofconveyances to transport persons or objects.

Library Books. Expenditures for books wh ichconstitute the initial furnishing of a newlyconstructed building. These include books out-side the library if they are capitalized and anyappreciable accession involving an expansion ofthe library.

590 Other Capital Outlay. Expenditures for all otherCapital Outlay not classified above.

600 Other Objects. Amounts paid for goods andservices not otherwise classified above. Thisincludes expenditures for the retirement of debt,the payment of interest on debt, payments to ahousing authority, and the payment of dues andfees.

34

810 Redemption of Principal. Expenditures whichare from current funds to retire serial bonds,longterm loans of more than 5 years, andshort-term loans of less than 5 years.

620 Interest. Expenditures from current funds forinterest on serial bonds, lease with option tobuy, longterm loans of more than 5 years. andshort-term loans of less than 5 years.

830 Housing Authority Obligations. A public school-housing authority is a public corporation orquasipublic corporation having power to per-

form one or more cf the following functions:issue authority bonds for public school purposes, construct public school buildings, leasepublic school buildings to local public schooladministrative units, or transfer title to suchunits. All expenditures of this nature are classi-fied in this category.

640 Dues and Fees. Expenditures or assessments formembership in professional or other organiza-tions or associations or payments to a payingagent for services rendered.

650 Insurance and Judgments. Insurance to protectschool board members and their employeesagainst loss due to accident or neglect.

651 Liability Insurance. Expenditures for insurancecoverage of the LEA, or its officers, againstlosses resulting from judgments awarded againstthe LEA, except pupil transportation insurance.Also recorded here are any expenditures (notjudgments) made in lieu of liability insurance.Payments of judgments awarded against theLEA and not covered by insurance are recordedunder 653, Judgments Against the LEA. Pupiltransportation insurance is charged to Function2550, Pupil Transportation Services.

652 Fidelity Bond Premiums Expenditures forbonds guaranteeing the LEA against losses re-sulting from the actions of the treasurer, em-ployees, or other persons of the LEA. Alsorecorded here-are-iny expenditures (not judg-ments) made in lieu of fidelity bonds.

653 Judgments Against the LEA. Expenditures fromcurrent funds for all judgments (except asindicated) against the LEA that are not coveredby liability insurance, but are of a type thatmight have been covered by insurance. Onlyamounts paid as the result of court decisions arerecorded here. Judgments against the LEA re-sulting from failure to pay bills or debt serviceare recorded under the appropriate expenditureaccounts as though the bills or debt service hadbeen paid when due.

659 Other Insurance and Judgements. Payments forinsurance and judgements not classified else-where.

35

690 Miscellaneous Objects. Amounts paid for allother expenses not classified above.

700 Transfers. This object category does not repre-sent a purchase; rather, it is used as an account-ing entity to show that funds have been handledwithout having goods and services rendered inreturn. Included here are transactions for inter-changing money from one fund to the other andfor transmitting flow-through funds to the re-cipient (person or agency).

710 Fund Modifications. This category representstransactions of conveying money from one fundto another. Generally this takes the form ofpayments from the General Fund to some otherand should be so recorded. They are notrecorded as expenditures.

720 Transits. This category represents transactionswhich are transit or flow-through means toconvey money to the recipient (person oragency). This includes transactions which placegrants-in-aid, special grants (stipends), and tui-tion and transportation for other LEA use, inthe hands of the user.

790 Other Transfers. This category is to be used forthose transfer transactions which cannot beidentified in the above classification.

C.FUNCTION

Function means the action a person takes or thepurpose for which a thing exists or is used. Functionincludes tie activities or actions which are performedto accomplish the objectives of an enterprise. Theactivities of a LEA are classified into five broad areasor functions; Instruction, Supporting Services, Com-munity Services, Nonprogramed Charges and DebtServices. Functions are further broken down intoSubfunctions and Service Areas which are subsequentlysubdivided into Areas of Responsibility.

Each of these program levels consists of activitieswhich have somewhat the same general. operationalobjectives. Furthermore, categories of activities com-prising each of these divisions and subdivisions aregrouped according to the principle that the activitiescan be combined, compared, related and be mutuallyexclusive. For example, subfunctions under the func-

DEFINITIONS OF DIMENSIONS AND ACCOUNTS(Continued)

C.FUNCTIONS (Continued)

tion of Instruction include Regular Programs, SpecialPrograms, and Adult/Continuing Programs. ServiceAreas, under the subfunction, Regular Programs, in-clude Elementary Programs, Middle/Junior High Pro-grams, and High School Programs.

It is not the purpose of this handbook to dictate anorganizational structure; i.e., how the administrativefunctions are organized. It does, however, identify anddefine the elements (Area of Responsibility) which canbe arranged into any organizational structure accordingto needs, philosophy, and tradition of each individualLEA. For comparability and compatibility of informa.tion it is essential that certain principles be followed inthe arrangement of the structure. These principles aredescribed below.

Principles of Cost Identification

1. Elements of cost which can be easily identifiedwith a specific activity are considered DirectExpenses (costs) for that activity. Costs notreadily identifiable with any specific activity areconsidered Indirect Expenses for that activity.

2. In the same manner, costs easily identified with aprogram or Area of Responsibility are consideredDirect Expenses (costs) for that program. Costsincurred for several different programs or costsnot readily identifiable with any specific pro-gram are considered Indirect Expenses for thatprogram.

3. All those activities associated with teacher-pupilinteractions are considered to be Instruction andare Direct Services; all other activities are con-sidered Indirect Services of Instruction. DirectExpenses (costs) of Direct Services (Instruction)are recorded under Instruction and Direct Ex-penses for Indirect Services to "Instruction" arerecorded under Supporting Services or Com-munity Services or transactions as applicable.

-4. Direct costs of a program may or may not berecorded under Instruction. The determiningfactor is whether or not the program is part of orassociated with the instructional process; i.e., thestaff involved are teaching pupils. If the programis associated with Instruction the Direct Ex-penses are recorded under the program, andthen, under Instruction. If, however, the pro-

36

gram is not directly associated with Instruction(School Lunch Program), Direct Expenses arerecorded under that programSchool Lunchand Supporting Services; and Indirect Expensesare reported under Supporting Services.

5. Each function under Instruction or Area ofResponsibility under Supporting Services can bea separate center for accumulating costs. Thisindicates that objects of expenditures are madefor each Area of Responsibility. For example,the object Salaries would be made for allfunctional activities in each Area of Responsi-bility.

6. Services or goods provided a LEA by otheragencies or persons at no cost to the LEA are nottreated as receipts, as such. They are sizeable insome LEAs and a fair market value should beentered into another noncash memorandumsystem to get at the total cost of education.Examples of the goods and services are: suppliesdonated by.the Parents-Teachers Association, orteachers themselves; donated services of bothprofessional and nonprofessional - people (studentteachers, parents who have teaching certificates);parents who monitor the playground or lunch-room; donated repairs of eqUipment or building;and supplies and/or equipment donated by serv-ice clubs or individuals. The receipt account tobe used is 1920 (contributions and donationsfrom private sources) under Definitions ofRevenue accounts, but object ant funCtipp.,:,accounts in the noncash' memorandum systemshould be the same as if they were cashtransactions. Tilde values can be distributed toprograms just as if theylvere=cash transactions.

Code Descriptor

1000 INSTRUCTION. Activities dealing directlywith the teaching of pupils, or the interactionbetween teacher and pupils. Teaching may beprovided for pupils in a school classroom, inanother location such as a home or hospital,and in other learning situations such as thoseinvolving cocurricular activities. It may alsobe provided through some other approvedmedium such as television, radio, telephone,and correspondence. Included here are theactivities of aides or assistants of any type

(clerk, graders, teaching machines, etc.) whichassist in the instructional process.

1100 Regular Programs. Instructional activities de-signed primarily to prepare pupils for activi-ties as citizens, family members, and workers,as contrasted with programs designed toimprove or overcome physical, mental, socialand/or emotional handicaps. Regular Pro-grams include Elementary; Middle/JuniorHigh; and High School. High School is brokeninto two types of programs Preparatory,Postsecondary Education Program and Pre-paratory, Postsecondary Employment Pro-gram.

1110 Elementary Programs. Learning experiencesconcerned with knowledge, skills, apprecia-tions, attitudes, and behavioral characteristicsconsidered to be needed by all pupils in termsof their awareness of life within our cultureand the world of work and which normallymay be achieved during the elementaryschool years.

1120 Middle /Junior High Programs. Learning ex-periences concerned wit'', knowledge, skills,appreciations, attitudes, and behavioral char-acteristics considered to be needed by allpupils in terms of understanding themselvesand their relationships with society and vari-ous career clusters; and which normally maybe achieved during th?. middle and/or juniorhigh school years. These are defined byapplicable Stan laws and regulations.

1130 High School Programs. Learning experiencesconcerned with knowledge, skills, apprecia-tions, atttitudes, and behavioral character-istics considered to be needed by all pupils interms of understanding themselves and theirrelationships with society and the variousoccupations and/or professions which norm-ally may be achieved in the high school years.

1131 Preparatory, Postsecondary Education Pro-grams. Learning" experiences concerned withknowledge, skills, appreciations, attitudes,and behavioral characteristics considered tobe needed by those pupils desiring further

37

education in postsecondary education pro-grams and which normally may be achievedduring the secondary school years.

1132 Preparatory, Postsecondary Employment Pro-grams. Learning experiences concerned withknowledge, skills, appreciations, attitudes,and behavioral characteristics considered tobe needed by those pupils desiring immediatepostsecondary employment which normallymay be achieved during the secondary schoolyears.

1139 Other High School Programs. Any HighSchool Program other than those above.

1190 Other Regular Programs. Any Regular Pro-gram other than those above.

1200 Special Programs. Instructional activities de-signed primarily to deal with pupil havingspecial needs. The Special Program ServiceArea includes Preprimary, Elementary, andSecondary services for the (1) Gifted andTalented; (2) Mentally Retarded; (3) Physic-ally Handicapped; (4) Emotionally Disturbed;(5) Culturally Different; (6) Pupils withLearning Disabilities; and (7) Special Pro-grams for other types of pupils.

1210 Programs for the Gifted and Talented. Speciallearning experiences for pupils identified asbeing mentally gifted or talented in areas suchas the following: General Academic, FineArts, and Vocational and Technical.

1220 Programs for the Mentally Reta d. Speciallearning experiences for pupils identified asbeing mentally retarded, according to thedegree of retardation. Children in this cate-gory are classified educationally as educablementally retarded, trainable mentally re-

tarded, and severely mentally retarded.

1230 Programs for the Physically Handicapped.Special learning experiences for pupils identi-fied as having one or more physical handi-caps; e.g., blindness, deafness, speech impair-ment, and lameness.

DEFINITIONS OF DIMENSIONS AND ACCOUNTS(Continued)

C.FUNCTION (Continued)

Code Descriptor

1240 Programs for the Emotionally Disturbed.Special learning experiences for pupils identi-fied as having emotional problems that re-quire special services.

1250 Pro 'irams for the Culturally Different. Speciallearnihn experiences for pupils whose back-ground is so different from that of mostpupils that they need additional educationalopportunities beyond those provided in theusual school program if they are to beeducated to the level of their ability. Certaintypes of these programs are referred to asBilingual Education, Migrant Education, andCompensatory Education programs.

1260 Programs for Pupils With Learning Disabili-ties. Special learning experiences for pupilsidentified as having deficiencies in one ormore aspects of the cognitive process and asbeing underachievers in relation to the generallevel of their overall abilities.

1290 Other Special Programs. Other special learn-ing experiences for dropouts, migrants, de-linquents, and others which cannot be classi-fied in the preceding service areas.

1300 Adult/Continuing Education Programs.Learning experiences designed to developknowledge and skills to meet immediate andlong range educational objectives of adultswho, having completed or interrupted formalschooling, have accepted adult roles andresponsibilities. Programs include activities tofoster the development of fundamental toolsof learning; prepare students for a postsecon-dary career; prepare students for postsecon-dary education proolms; upgrade occupa-tional competence; prepare students for a newor different career; develop skills and apprecia-tions for special interests; or to enrich theaesthetic qualities of life.

38

1310 Adult Basic Education Programs. Learningexperiences concerned with the fundamentaltools of learning for adults who have neverattended school, or who have interruptedformal schooling and need this knowledgeand these skills to raise their level of educa-tion, to increase self confidence and/or self-determination, to prepare for an occupation,and to function more responsibly as citizensin a democracy.

1320 Advanced Adult Education Programs. Learn-ing experiences designed to develop theknowledge, skills, appreciations, attitudes,and behavioral characteristics considered tobe needed by adults who, having completedor interrupted formal schooling, have ac-

cepted adult roles and responsibilities and arepreparing for postsecondary careers and/orpostsecondary education programs.

1330 Occupational Programs. Learning experiencesconcerned with the skills and knowledgerequired to prepare learners for immediateemployment in an occupation or cluster ofoccupations, (This type of program is thesame as that for secondary or junior collegestudents but differs in that adults are thestudents served.)

1340 Upgrading in Current Occupation Programs.Learning experiences concerned with skillsand knowledge designed primarily to extendor update workers' competencies for occupa-tions in which they are directly employed.

1350 Retraining for New Occupation Programs.Learning experiences concerned with theskills and knowledge required for preparationfor employment in a new and differentoccupation.

1360 Special Interest Programs. Learning experi-ences concerned with skiiis and knowledgerequired to prepare adults for a subordinateoccupation in addition to their vocation.Such programs also may be called avocationalprograms.

1370 Life Enrichment Programs. Learning experi-

ences concerned with skills and knowledgedesigned primarily for enjoyment, withoutregard to a vocation.

1390 Other Adult/Continuing Education Programs.Other adult/continuing education programswhich cannot be classified above.

2000 Supporting Services. Supporting services arethose services which provide administrative,technical, personal (such as guidance andhealth), and logistical support to facilitateand enhance Instruction and, to a lesser

degree, Community Services. Supporting Ser-vices exist to sustain and enhance Instruction,rather than as entities within themselves.

2100 Support ServicesPupils. Those activitieswhich are designed to assess and improve thewell-being of pupils and to supplement theteaching process.

2110 Attendance and Social Work Services. Thoseactivities which are designed to improve pupilattendance at school and which attempt toprevent or solve pupil problems involving thehome, the school, and the community.

2111 Service Area Direction. Activities associatedwith directing and managing Attendance andSocial Work Services.

2112 Attendance Services. Activities such as

prompt identification of patterns of nonat-tendance, promotion of positive attitudestoward attendance, analysis of causes ofnonattendance, early action on problems ofnonattendance, and enforcement of compul-sory attendance laws.

2113 Social Work Services. Activities such as inves-tigating and diagnosing pupil problems arisingout of the home, school, or community;casework and group work services for pupilsand parents; interpreting the problems ofpupils for other staff members; and promot-ing change in the circumstances surroundingthe individual pupil which are related to hisproblem insofar as effectively as the resourcesof the family, school, and community can bebrought to bear upon the problem.

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2114 Pupil Accounting Services. Activities of ac-quiring and maintaining records of schoolattendance, location of home, family charac-teristics, and other census data. Portions ofthese records become part of the cumulativerecord which is sorted for teacher and guid-ance information.

2119 Other Attendance and-Social Work Services.Attendance and Social Work Services otherthan those described above.

2120 Guidance Services. Those activities of coun-seling pupils and parents, providing con-sultation with other staff members on learn-ing problems, assisting pupils in personal and

-social development, assessing the abilities ofpupils, assisting pupils as they make their owneducational and career plans and choices,providing referral assistance, and workingwith other staff members in planning andconducting guidance programs for pupils.

2121 Service Area Direction. Activities associatedwith directing and managing Guidance Serv-ices.

2122 Counseling Services. Activities concernedwith the relationship between pupils andpupils, counselors and pupils as counsellees,and relationships between counselors andother staff members and parents all for thepurpose of assisting pupils to understand theireducational, personal, and occupationalstrengths and limitations; relate their abilities,emotions, and aptitudes to educational andcareer opportunities; utilize their abilities informulating realistic plans; and achieve satis-fying personal and social development.

2123 Appraisal Services. Activities having as theirpurpose an assessment of pupil characteris-tics, which are used in administration, instruc-tion, and guidance, and which assist the pupilin assessing his purposes and progress inpersonality and career development. Testrecords and materials used for pupil appraisalare usually included in each pupil's commuta-tive record.

2124 Information Services. Activities organized for

DEFINITIONS OF DIMENSIONS AND ACCOUNTS(Continued)

C.FUNCTION (Continued)

Code Descriptor

the dissemination of educational, occupa-tional, and personal - social information tohelp acquaint pupils with the curriculum andwith educational and vocational opportunitiesand requirements.

2125 Records Maintenance Services. Activities or-ganized for the compilation, maintenance,and interpretation of cumulative records ofindividual pupils, including systematic con-sideration of such factors as: Home andFamily Background, Physical and MedicalStatus, Standardized Test Results, Personaland Social Development, and School Perform-ance,

2126 Placement Services. Activities organized (1)to help place pupils in appropriate educa-tional situatiors and/or in appropriate part-time employment while they are in school,and in appropriate educational and occupa-tional situations after they leave school, and(2) to help pupils in making the transitionfrom one educational or occupational experi-ence to another. This may include, for ex-ample, admissions counseling, referral serv-

ices, assistance with records, and followupcommunications with employers.

2129 Other Guidance Services. Other guidance serv-ices which cannot be classified above.

2130 Health Services. Physical and mental healthservices which are not direct instruction.Included are activities that provide pupilswith appropriate medical, dental, and nurseservices.

2131 Service Area Direction. Activities associatedwith directing and managing Health Services.

2132 Medical Services. Activities concerned withthe physical and mental health of pupils, such

40

as health appraisal, including screening forvision, communicable diseases, and hearingdeficiencies; screening for psychiatric services;periodic health examinations; emergency in-jury and illness care; and communicationswith parents and medical officials,

2133 Dental Services. Those activities associatedwith dental screening, dental care, and ortho-dontic activities.

2134 Nurse Services. Those nursing activities whichare not instruction, such as health inspection,treatment of minor injuries, and referrals forother health services.

2139 Other Health Services. Other Health Servicesnot classified above.

2140 Psychological Serv:ces. Activities concernedwith administering psychological tests andinterpreting the results, gathering and interp-reting information about pupil behavior,working with other staff members in planningschool programs to meet the special needs ofpupils as indicated by psychological tests, andbehavioral evaluation and ple.r,ning and man-aging a program of psychological services,

including psychological counseling for pupils,staff, and parents.

2141 Service Area Direction. Activities associatedwith directing and managing the Psycho-logical Services.

2142 Psychological Testing Services, Activities con-cerned with administering psychological tests,standardized test and inventory assessmentsof ability, aptitude, achievement, interestsand personality and the interpretation ofthese measures for pupils, school personnel,and parents.

2143 Psychological Counseling Services. Activitieswhich take place between a school psycholo-gist or counselor, and one or more pupils ascounselees and their parents in which thepupils are helped to perceive, clarify, solve,and resolve problems of adjustment andinterpersonal relationships.

2144 Psychotherapy Services. Activities which pro-vide a therapeutic relationshipbetween aqualified mental health professional and oneor more pupilsin which the pupils arehelped to perceive, clarify, solve, and resolveemotional problems or disorders.

2149 Other Psychological Services. Other activitiesassociated with Psychological Services notclassified above.

2150 Speech Pathology and Audiology Services.Activities which have as theft purpose theidentification, assessment, and treatment ofpupils with impairments in speech, hearing,and language.

2151 Service Area Direction. Activities associatedwith directing and managing Speech Path-nlogv and Audiology Services.

2152 Speech Pathology Services. Activities organ-ized for she identification of pupils withspeech and language disorders; diagnosis andappraisal of specific speech and languagedisorders; referral for medical or other profes-sional attention necessary to the habilitationof speech and language disorders; provision ofrequired speech habilitation services; andcounseling and guidance of children, parents,and teachers, as appropriate.

2153 Audiology Services. Activities organized forthe identification of children with hearingloss; determination of the range, nature, anddegree of hearing function; referral for medi-cal or other professional attention as appro-priate to the habilitation of hearing; languagehabilitation; auditory training, speech reading(lipreading), and speech conservation as

necessary; creation and administration ofprograms of hearing conservation; and coun-seling and guidance of children, parents, andteachers as appropriate.

2159 Other Speech Pathology and Audiology Serv-ices. Other activities associated with SpeechPathology and Audiology Services not classi-fied above.

41

2200 Support ServicesInstructional Staff. Activi-ties associated with assisting the instructionalstaff with the content and process of provid-ing learning -!xperiences for pupils.

2210 Improvement of Instruction Services. Thoseactivities which are designed primarily forassisting instructional staff in planning, devel-oping, and evaluating the process of providinglearning experiences for pupils. These activi-ties include curriculum development, tech-niques of instruction, child devefopment andunderstanding, staff training, etc.

2211 Service Area Direction. Activities associatedwith directing and managing the Improve-ment of Instruction Services.

2212 Instruction and Curriculum DevelopmentServices. Activities designed to aid teachers indeveloping the curriculum, preparing andutilizing special curriculum materials, andunderstanding and appreciating the varioustechniques which stimulate and motivatepupils.

2213 Instructional Staff Training Services. Activi-ties designed to contribute to the professionalor occupational growth and competence ofmembers of the instructional staff during thetime of their service to thr LEA or school.Among these activities are workshops,demonstrations, schrJI visits, courses for col-lege credit, sabbatical leaves, and travel leaves.

2219 Other Improvement of Instruction Services.Activities for improving instruction otherthan those classified above.

2220 Educational Media Services. Activities con-cerned with the use of all teaching andlearning resources, including hardware. andcontent materials. Educational media are de-fined as any device, content material,method, or experience used for teaching andlearning purposes. These include printed andnonprinted senc'ry materials.

2221 Service area Direction. Activities concernedwith directing and managing EducationalMedia Services.

DEFINITIONS OF DIMENSIONS AND ACCOUNTS(Continued)

C.FUNCTION (Continued)

Code Descriptor

2222 School Library Services. Activities such asselecting, acquiring, preparing, cataloging, andcirculating books and other printed materials;planning the use of the library by teachersand othz,r members of the instructional staff;and guiding instructional staff members in theuse of library books and materials, whethermaintained separately or as a part of aninstructional materials center. Included hereare activities for planning the use of thelibrary by pupils and instructing pupils in theuse of library books and materials, whethermaintained separately or as a part of aninstructional materials cente or related work-study areas.

2223 Audiovisual Services. Activities such as select-ing, preparing, caring for, and making avail-able to members of the instructional staff theequipment, films, filmstrips, transparencies,tapes, TV programs, and other similar mate-rials, whether maintained separately or as apart of an instructional materials center.included are activites in the audiovisual cen-ter, TV studio, and related work-study areas,and the services provided by audiovisualpersonnel.

2224 Educational Television Services. Activitiesconcerned with planning, programing, writ-ing, and presenting educational programs orsegments of programs by way of closed-circuit or broadcast television.

2225 Computer-Assisted Instruction Services. Ac-tivities concerned with planning, program-ming, writing, and presenting educationalprojects which have been especially pro-gramed for a computer which is to be used asthe principal medium of instruction.

2229 Other Educational Media Services. Educa-

tional Media Services other than those classi-fied above.

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2300 Support Services Ger.eral Administration.Activities concerned with establishing andadministering policy in connection with oper-ating the LEA.

23W Board of Education Services. Activities of sizeelected or appointed body which has beencreated according to. State law and vestedwith responsibilities for educational planningand policy making for a governmental entity,usually designated as a LEA. These bodies aresometimes called school boards, governingboards of directors, school committees, andschool trustees. This Service Area includesState boards, intermediate administrative unitboards, and local administrative unit boards.

2311 Service Area Direction. Activities concernedwith directing and managing the generaloperation of the board of education. Thisincludes the activities of an executive of theboard of education, such as an executivesecretary, but does not include any specialactivities defined in the other Areas of Re-sponsibility described below.

2312 Board Secretary Services. Activities pertainingto the duties of the secretary (not executive)of the board of education.

2313 Board Treasurer Services. Activities pertainingto the duties of treasurer of the Board ofEducation.

2314 Election Services. Activities pertaining toservices rendered in connection with any LEAelection, including elections of officers, bondelections, and budget and appropriation elec-tions.

2315 Legal Services. Activities pertaining to coun-seling services provided to the board ofeducation in regard to laws and statutes.

2316 Tax Assessment and Collection Services. Ac-tivities pertaining to services rendered inconnection with tax assessment and collec-tion.

2317 Audit Services. Activities pertaining to inde-

pendent audit services provided to the boardof education.

2319 Other Board of Education Services. Otherservices which cannot be classified under thepreceding Areas of Responsibility.

2320 Executive Administration Services. Activitiesassociated with the overall general administra-tive or executive responsibility for the entireLEA.

2321 Office of the Superintendent Services. Activi-ties performed by the superintendent andsuch assistants as deputy, associate, and assis-tant superintendents, in the general directionand management of all affairs of the LEA.This program area includes all personnel andmaterials in the office of the chief executiveofficer.

Activities of the office of the deputy superin-tendent and associate or assistant, superin-tendents should be entered here unless theactivities can be placed properly into a

Service Area. In this case, they would becharged to Service Area Direction in thatService Area. When two or more ServiceAreas are directed by the same individual, theservices of that individual's office are chargedto Office of the Superintendent Services or pro-rated between the Service Areas concerned.

2322 Community Relations Services. Activities andprograms developed and operated systemwidefor betterment of school/community rela-tions.

2323 Staff Relations and Negotiations Serv,ces.Activities concerned with staff relations sys-temwide and the responsibilities for contrac-tual negotiations with both instructional andnoninstructional personnel.

2324 State and Federal Relations Services. Ac-tivities concerned with developing and main-taining good relationships with State andFederal officials.

2329 Other Executive Administration Services.

43

Other general administrative services whichcannot be recorded under the preceding Areasof Responsibility.

2400 Support ServicesSchool Administration. Ac-tivities concerned with overall administrativeresponsibility for a single school or a gi oup ofschools.

2410 Office of the Principal Services. Activitiesconcerned with directing and managing theoperation of a particular school or schools.Included are the activities performed by theprincipal, assistant principals, and other assis-tants in general supervision of all operationsof the school; ei..1:.ation of the staff membersof the school; assignment of duties to staffmembers; supervision and maintenance of theschool records; and coordination of schoolinstructional activities with instructional ac-tivities of the LEA. Clerical staff for theseactivities are included.

2490 Other Support ServicesSchool Administra-tion. Other school administration services

which cannot be recorded under the preced-ing Areas of Responsibility.

2500 Support ServicesBusiness. Activities con-cerned with purchasing, paying, transporting,exchanging, and maintaining goods and serv-ices for the LEA. Included are the fiscal,acquisition of facilities, operation and mainte-nance, and internal services for operating allschools.

2510 Direction of Business Support Services. Ac-tivities concerned with directing andmanaging the business support services as agroup.

2520 Fiscal Services. Activities concerned with thefiscal operations of the LEA. This programarea includes budgeting, receiving and disburs-ing, financial accounting, payroll, inventorycontrol, and internal auditing.

2521 Service Area Direction. Activities of directingand managing fiscal services which includesthe activities of the assistant superintendent,director, or business manager in directing and

DEFINITIONS OF DIMENSIONS AND ACCOUNTS(Continued)

C.FUNCTION (Continued)

Code Descriptor

managing fiscal activities including debt man-agement (see 2321, Office of the Superinten-dent Services, for further clarification).

2522 Budgeting Services. Activities concerned withsupervising budget planning, formulation,control, and analysis.

2523 Receiving and Disbursing Funds Services.Activities concerned with taking in moneyand paying it out which include the currentaudit of receipts and the preaudit of requisi-tions or purchase orders to determinewhether the amounts are within the budge-tary allowances, and whether such disburse-ments are lawful school or LEA expenditures.

2524 Payroll Services. Activities concerned withmaking periodic payments to individuals en-titled to remuneration for services rendered.Payments are also made for such payroll-associated costs as Federal income tax with-holding, retirement, and social security.

2525 Financi2! Accounting Services. Activities con-cernec: with maintaining records of the fi-nancial operations and transactions of the LEAwhich include such activities as accountingand interpreting financial transactions andaccount records.

2526 Internal Auditing Services. Activities con-cerned with verifying the account recordswhich include evaluating the adequacy of theinternal control system, verifying and safe-guarding assets, reviewing the reliability ofthe accounting and reporting systems, andascertaining compliance with establishedpolices and procedures.

2527 Property Accounting Services. Activities con-cerned with preparing and maintaining cur-rent inventory records of land, buildings, and

44

movable equipment. These records are to beused in equipment control and facilities plan-ning.

2529 Other Fiscal Services. Fiscal services whichcannot be classified under the precedingAreas of Responsibility.

2530 Facilities Acquisition and Construction Serv-ices. Activities concerned with the acquisitionof land and buildings; the remodeling andconstruction of buildings and additions tobuildings; initial installation or extension ofservice systems and other built-in equipment;and improvements to sites. Costs of theseitems are charged here.

2531 Service Area Direction. Activities pertainingto directing and managing Facilities Acquisi-tion and Construction Services.

2532 Land Acquisition and Development Services.Activities pertaining to the initial acquisitionof sites and improvements thereon.

2533 Architecture and Engineering Services. Activi-ties of architects and engineers related to landacquisition and improvement and to improve-ments to buildings.

2534 Educational Specifications Development Serv-ices. Activities concerned with preparing andinterpreting to architects and engineers de-scriptions of specific space requirements forthe various learning experiences of pupils tobe accommodated in a building. These specifi-cations are interpreted to the architects andengineers in the early stages of blueprintdevelopment.

2535 Building Acquisition, Construction, and Im-provements Services. Activities concernedwith building acquisition through purchase orconstruction and building improvements.Initial installation or extension of servicesystems and other built-in equipment as wellas building additions are included.

2539 Other Facilities Acquisition and ConstructionServices. Facilities acquisition and construc-

tion activities which cannot be classifiedabove.

2540 Operation and Maintenance of Plant Services.Activities concerned with keeping thephysical plant open, comfortable, and safe foruse, and keeping the grounds, buildings, andequipment in an effective working conditionand state of repair. Activities which maintainsafety in buildings, on the grounds, and in thevicinity of schools are included.

2541 Service Area Direction. Activities of directingand managing the operation and maintenanceof the school plant facilities.

2542 Care and Upkeep of Buildings Services. Ac-tivities concerned with keeping the physicalplant clean and ready for daily use. Operatingthe heating, lighting; and ventilating systems,and repair and replacement of facilities andequipment are included.

2543 Care and Upkeep of Grounds Services. Activi-ties concerned with maintaining land and itsimprovements, other than buildings, in goodcondition.

2544 Care and Upkeep of Equipment Services.Activities concerned with maintaining, ingood condition, equipment owned or used bythe LEA. Activities such as servicing andrepairing furniture, machines, and movableequipment are included.

2545 Vehicle Servicing and Maintenance Services(other than buses). Activities concerned withmaintaining general purpose vehicles such astrucks, tractors, graders, and staff vehicles ingood condition. Included are such activities asrepairing vehicles, replacing vehicle parts,cleaning, painting, greasing, fueling, and in-specting vehicles for safety; i.e., preventivemaintenance.

2546 Security Services. Activities concerned withmaintaining order and safety in school build-ings, on the grounds and in the vicinity ofschools at all times, and providing trafficcontrol on grounds and in the vicinity ofschools.

45

2549 Other Operation and Maintenance of PlantServices. Operation and maintenance of plantactivities which cannot be classified under thepreceding Areas of Responsibility.

2550 Pupil Transportation Services. Activities con-cerned with the conveyance of pupils to andfrom school, as provided by State law. In-cluded are trips between home and schooland trips to school activities. (To separatetrips for school activities, a cost per milecould be charged in memorandum account-i ng.)

2551 Service Area Direction. Activities pertainingto directing and managing Pupil Transporta-tion Services.

2552 Vehicle Operation Services. Activities con-cerned with operating vehicles for pupil trans-portation from the time the vehicles leave thepoint of storage until they return to thatpoint. Driving buses or other pupil transporta-tion vehicles are included.

2553 Monitoring Services. Activities concernedwith supervising pupils in the process of beingtransported between home and school andwhile being transported for school activities.These activities include supervision while intransit and while being loaded and unloaded,and directing traffic at the loading andunloading 'stations.-

2554. Vehicle Servicing and Maintenance Services.Activities concerned with maintaining pupiltransportation vehicles in good condition,including repairing vehicles; replacing vehicleparts; and cleaning, painting, greasing, fueling,and inspecting vehicles for safety. Replacing avehicle chassis or body individually is con-sidered to be equipment and is charged toCapital Outlay.

2559 Other Pupil Transportation Services. Pupiltransportation services which cannot be classi-fied under the preceding Areas of Responsi-bility.

2560 Food Services. Activities concerned with pro-

DEFINITIONS OF DIMENSIONS AND ACCOUNTS(Continued)

C.FUNCTION (Continued)

Code Descriptor

viding food to pupils and staff in a school orLEA. This Service Area includes the prepara-tion and serving of regular and incidentalmeals, lunches, or snacks in connection withschool activities, and the delivery of food.

2561 Service Area Direction. Activities of directingand managing food services.

2562 Preparing and Dispensing Food Services. Ac-tivities concerned with preparing and servingregular and incidental meals, lunches, orsnacks to pupils and staff in a school or LEAwhich include operating kitchen equipment,preparing food, cooking, serving food, clean-ing dishes, -and storing dishes and kitchenequipment.

2563 Food Delivery Services. Activities concernedwith delivering food to the school or LEA.

2569 Other Food Services. Food services activities'which cannot be classified under the preced-ing Areas ofResponsibility.

2570 Internal Services. Activities concerned withbuying, storing, and distributing supplies,

. furniture, and equipment; and those activitiesconcerned with duplicating and printing forthe LEA.

2571 Service Area Direction. Activities of directingand managing internal services.

2572 Purchasing Services. Activities of purchasingsupplies, furniture, equipment, and materialsused in school or LEA operation.

2573 Warehousing and Distributing Services. Theoperation of the Systeniwide activities ofreceiving, storing, and distributing supplies,furniture, equipment, materials, and mail.Thii program includes the pickup and trans-

46

porting of cash from school facilities to thecentral administrative office, or bank, forcontrol and/or deposit.

2574 Printing, Publishing, and Duplicating Services.Activities of printing and publishing adminis-trative publications such as annual reports,school directories, and manuals. Providingcentralized services for duplicating schoolmaterials and instruments such as schoolbulletins, newsletters, and notices are alsoincluded.

2579 Other Internal Services. Other internal serv-ices which cannot be classified under thepreceding Areas of Responsibility.

2590 Other Support ServicesBusiness. SupportServicesBusiness other than those classifiedabove.

2600 Support ServicesCentral. Activities, otherthan general administration, which supporteach of the other instructional and supportingservices programs. These activities includeplanning, research, development, evaluation,information, staff, statistical, and data proc-essing services.

2610 Direction of Central Support Services. Ac-tivities concerned with directing and

managing the central support services as agroup

2620 Planning, Research; Development, and Evalu-ation Services, Activities, on a systemwidebasis, associated with conducting and manag-ing programs of planning, research, develop-ment, and evaluation for a LEA.

2621 Service Area Direction. Activities associatedwith directing and managing the planning,research, development, and evaluation service

area.

2622 Development Services. Activities concernedwith the evolving process of utilizing theproducts of research and considered judgment

. for. the deliberate improvement of educa-tional programs.

2623 Evaluation Services. Activities concerned withascertaining or judging the value of an actionor an outcome of an.- action by carefulappraisal of previously specified data in lightof the particular situation and the goals andobjectives previously established.

2624 Planning Services. Activities concerned withthe selection or identification of the overall,long-range goals, priorities, and objectives ofan organization or program, and the formula.tion of various courses of action in terms ofidentification of needs and relative costs andbenefits for the purpose of deciding whichcourses of action are to be followed instriving to achieve those goals, priorities, andobjectives.

2625 Research Services. Activities concerned withthe systematic study and investigation of thevarious aspects of education, undertaken toestablish facts and principles.

2629 Other Planning, Research, Development, andEvaluation Services. Other services of thisnature not described above.

2630 Information Services. Activities concernedwith writing, editing, and other preparationnecessary to disseminate educational and ad-ministrative information to pupils, staff, man-agers, or to the general public through directmailing, the various news media, or personalcontact.

2631 Service Area Direction. Activities of directingand managing information services.

2632 Internal Information Services. Activities con-cerned with writing, editing, and providingadministrative information to pupils andstaff.

2633 Public Information Services. Activities con-cerned with writing, editing, and other prepa-ration necessary to disseminate educationaland administrative information to the publicthrough various news media or personal con-tact.

47

2634 Management Information Services. Activitiesconcerned with writing, editing, and other.iiiigliafatiolfnecessary to disseminate to man-agement (1) information needed about theoperation of the LEA and (2) informationabout the community, State, and nation, inorder to make logical decisions.

2639 Other 'Information Services. Activities con-cerned with information services not classi-fied above.

2640 Staff Services. Activities concerned withmaintaining an efficient staff for the LEAincluding such activities as recruiting andplacement, staff transfers, inservice training,health services, and staff accounting.

2641 Service Area Direction. Activities of directingand managing staff services.

2642 Recruitment and Placement Services. Activi-ties concerned with employing and assigningpersonnel for the LEA.

2643 Staff Accounting Services. Services renderedin connection with the systematic recordingand summarizing of information relating tostaff members employed by the LEA.

2644 inservice Training Services ffor noninstruc-tional staff). Activities developed by the LEAfor training of noninstructional personnel inall classifications.

2645 Health Services. Activities concerned withmedical, dental, and nurse services providedfor LEA employees. Included are physicalexaminations, referrals, and emergency care.

2649 Other Staff Services. Staff services whichcannot be classified under the precedingAreas of Responsibility.

2650 Statistical Services. Activities concerned withmanipulating, relating, and describing statistical information.

2651 Service Area Direction. Activities concernedwith directing and managing statistical serv-ices.

DEFINITIONS OF DIMENSIONS AND ACCOUNTS(Continued)

C.FUNCTION (Continued)

Code Descriptor

2652 Statistical Analysis Services. Activities con-caned with determining the nature and rela-tionships of data elements to arrive at conclu-sions and recommendations. This programarea includes institutional, management. andprogram studies, such as cost/effectiveness,space utilization, and teaching load.

2653 Statistical Reporting Services. Activities con-cerned with assimilating and writing statisticaldata into reports for further use. This pro-gram area includes the preparation of reportssuch as questionnaires and data collectionforms for internal as well as external use.

2659 Other Statistical Services Statistical serviceswhich cannot be dassified under the preced-ing Areas of Responsibility.

2660 Data Processing Services. Activities concernedwtih preparing data for storage, storing data.and retrieving them for reproduction as infor-mation for management and reporting.

2661 Service Area Direction. Activities concernedwith directing and managing data processing

--Termer

2662 Systems Analysis Services. Activities con-cerned with the search for and an evaluationof alternatives which are relevant to definedobjectives, based on judgment and, whereverpossible, on quantitative methods. Whereapplicable, these activities pertain to thedevelopment of data processing procedures orapplication to electronic data processingequipment.

2663 Programing Services. Activities concernedwith the preparation of a logical sequence ofoperations to be performed either manuallyor electronically, in solving problems or proc-essing data and the preparation of codedinstructions and data for such sequences.

48

2664 Operations Services. Activities concernedwith scheduling, maintaining, and producingdata. These activities include operating busi-ness machines and data processing machines.

2669 Other Data Processing Services. Activitiesconcerned with data processing which are notdescribed above.

2690 Other Support ServicesCentral. Central services not classified above.

2900 Other Supporting Services. Activities of anysupporting service or classification of services,general in nature, which cannot be calssifiedin the preceding service areas or Areas ofResponsibility.

3000 COMMUNITY SERVICES. Activities whichare not directly related to the provision ofeducation for pupils in a LEA. These includeservices such as community recreation pro-grams, civic activities, public libraries, pro-grams of custody and care of children, andcommunity welfare activities provided by theLEA for the community as a whole or somesegment of the community.

3100 Direction of Community Services Activities.Activities concerned with directing and man-aging community services activities.

3200 Community Recreation Services.. Activitiesconcerned with providing recreation for thecommunity as a.whole, or for some segmentof the community. Included are such staffactivities as organizing and supervising play-grounds, swimming pools, and other recrea-tion programs for the community.

3300 Civic Services. Activities concerned with pro-viding services to civic affairs or organiza-tions. This program area includes services toparentteacher association meetings, publicforums, lectures, and civil defense planning.

3400 Public Library Services. Activities pertainingto the operation of public libraries by a LEA,or the provision of library services to thegeneral public through the school library.Included are such activities as budgeting and

planning the library's collection in relation tothe community, and informing the com-munity of public library resources and ser-vices.

3500 Custody and Care of Children Services. Ac-tivities pertaining to the provision of pro-grams for the custodial care of children inresidential day schools, or child-care centerswhich are not part of, or directly related tothe instructional program, and where theattendance of the children is not included inthe attendance figures for the LEA.

3600 Welfare Activities Services. Activities pertain-ing to the provision of personal needs ofindividuals who have been designated as

needy by an appropriate governmental entity.These needs include stipends for school at-tenddr.ct, -salaries paid to pupils for workperformed whether for the LEA or for anoutside concern, anu for clothing, food, orother personal needs.

3700 Nonpublic School Pupils Services. Services topupils attending a school established by anagency other than the State, subdivision ofthe State, or the Federal Government, whichusually is supported primarily by other thanpublic funds. The services consist of suchactivities as those involved in providing in-structional services, attendance and socialwork services, health services, and transporta-tion services for nonpublic school pupils.Statutory requirements in individual Statesmay require construction of subfunctions forthese and other functions and subfunctionsrelated to expenditures for nonpublic schoolpupils. Special accounting provision may berequired for transfer of these expendituresfrom corresponding functional accounts forservices provided to public school pupils.

3900 Other Community Services. Services providedthe community which cannot be classifiedunder the preceding Areas of Responsibility.

4000 NONPROGRAMED CHARGES. Conduit-type (outgoing transfers) payments to otherLEAs or administrative units in the State orin another State, and transfers from one fundto another fund in the LEA.

49

4100 Payments to Other Governmental Units(within the State). Conduit type payments toLEAs, generally for tuition and transportat-ion, in the State for services rendered topupils residing in the paying LEA. Where agovernmental unit collects money from anonoperating LEA for the education of pupilsfrom the nonoperating LEA and pays it to anoperating LEA, the nonoperating LEA re-cords such payments here. (These are notcounted in State totals of expenditures.)

4200 Payments to Other Governmental Units (out-side the State). These are conduit-type pay-ments to LEAs outside. the State for servicesrendered to pupils residing in the payingLEA. These payments are generally for tui-tion and transportation. Where a govern-mental unit in one State collects money froma nonoperating LEA for the education ofpupils from the nonoperating LEA and paysit to an operating LEA in another State, thenonoperating LEA records such paymentshere. (These are not counted in nationaltotals of expenditures.)

4300 Transfers of Funds. These are transactionswhich withdraw money from one fund andplace it in another without recourse. UnlessState law prohibits, revenues should be alloca-ted between funds when received and re-corded in the funds to which they belong,rather than placing them in the General Fundand later transferring them. (These are notcounted in local LEA totals of expenditures.)

5000 Dett Service.:. The servicing of the debt of aLEA. Categories of debt services are listedunder objects.

D.OPERATIONAL UNIT

The term Operational Unit is used to denote thegroup and type of education activities for organiza-tional purposes. Each type-of unit has discriminatingcharacteristics. The units include individual schools, inmost cases, and can be used to designate school cotscenters. In other words, budgets and expendituresbe made for each school or operational unit. Such unitsare specific schools, transportation, administration,

DEFINITIONS OF DIMENSIONS AND ACCOUNTS(Continued)

D.OPERATIONAL UNIT (Continued)

and warehouses. Following are examples of OperationalUnits and codes:

Code Descriptor

001 Friedley Elementary School501 Mc Lune Middle School701 Jones High School751 Chismore Vocational-Technical School781 Curtis Junior College901 Central Administrative Office911 Main Warehouse921 Main Bus Garage

E.-PROGRAM

A program is a plan of activities and proceduresdesigned to accomplish a predetermined objective orset of allied objectives. Programs, as appropriate forthis manual, are of three types: instructional programs,'supporting services programs, and community serviceprograms. The function and program dimensions aremerged into a single dimension to become a cost centerin actual system practice. The supporting servicesfunctions become supporting services programs and thecommunity services functions in the same me,ner aredesignated community services programs. Instructionalprograms are divided into Regular, Special, and Adult/Continuing Education Programs.

This handbook is deigned to be a vehicle or guide for(1) program cost accou,iting or for (2) accounting forprograms in a program, planning, budgeting, andevaluating system. Its purpose does not encompassthose of specifying and defining specific programs for aLEA. There are suggestions and a rationale, however,for handbook users to develop plans (programs) toaccomplish predetermined objectives in chapter 5.

Users of the handbook are the ones to determine thenumber and nature of programs to be used. Somesuggestions at this time, however, might prove helpfulin making the transition to use of the handbook.

Converting accounting procedures from those hav-ing been in use heretofore to those described in thishandbook is not a tremendous task but utilizing thefull advantages of a program, planning, budgeting, and

50

evaluating system is a mission which should be ap-proached in phases over a period of years. Program costaccounting means, simply, budgeting of and accountingfor money on an instructional program basis ratherthan budgeting and accounting for instruction as onefuncticn Etc,d similarly as all other functions whichsupport instruction. But the concept of PPBES meansbudgeting, on a priority basis, instructional and sup-port programs which have been set up to accomplishmutually agreed upon objectives. Processesnumberand mix of services and goodsto achieve theseobjectives are determined through simulation andanalysis on an alternate basis. Recurring budgeting isdone on a priority basis after previous processes havebeen evaluated.

Converting to program cost accounting is the firstphase and before curriculum supervisors and programofficers have time to formulate goals and measurableobjectives, the problem concerning programs, or costcenters for which to budget and accumulate costsarises. Probably a minimum number of cost centersshould be used. In this case, functions could serve asthe cost centers or programs. That is, cost centerswould be established for four regular instructionalprograms (Elementary, Middle/Junior High, Prepara-tory Postsecondary Education, and Preparatory Post-secondary Employment), six or fewer special educationprograms, adult/continuing programs as needed, appro-priate community services programs and as many ofthe supporting service programs (functions) as feasible.Should fewer programs be needed, only those func-tions ending with two zeros could be used (RegularPrograms, Special Programs, Adult/Continuing Pro-

grams, Support ServicesPupils, Support ServicesInstructional Staff, etc.).

The above regular insturctional programs may bebroken into subject matter areas and program elementsif more detail cost centers are desired. These are codedand defined in Handbook VI, Standard Terminologyfor Curriculum and Instruction for Local and StateSchool Systems) Phasing into a Program, Planning,Budgeting, and Evaluating System means generatingbroad based goals and objectives, setting up proceduresand activities (programs) which have measurable subob-

' John F. Putnam and W. Dale Chismore, Standard Termi-nology for Curriculum and Instruction in State and LocalSchool Systems, State Educational Records and ReportsSeries: Handbook VI. U.S. Department of Health, Education,and Welfare, Superintendent of Documents, U.S. GovernmentPrinting Office, Washington, D.C., 1970. $3.

jectives, and determining appropriate processes(teacher-teacher assistants-teacher aides-machines-sup-plies-methods mixes) through simulated analyses.

F.--SOURCE OF FUNDS

Described in this dimension are the various originsof revenue _for a local LEA. Included are varioussources from within a local LEA, from an intermediateunit, from the State, from the Federal Government,and from other sources. Following are the definitionsfor the source of revenue categories:

Code Descriptor

1 Nonidentifiable. This is revenue from any or allsources which is not readily identifiable withspecific expenditures at fhc times when pay-ments are made.

1 Local. Revenue provided by the local govern-ment for educational activities at the localeducation agency level. Expenditures made fromthis revenue should be identifiable as locally-supported expenditures.

2 Intermediate. Revenue provided by intermediategovernmental units such as counties and bo-roughs for educational activities at the LEAlevel. Expenditures from this revenue should beidentifiable as having been supported by revenuefrom an intermediate governmental unit.

3 State. Revenue provided by the State govern-ment for educational activities at the LEA level.Expenditures from this revenue should be identi-fiable as State-supported expenditures.

4 Federal. Revenue provided by the Federal Gov-ernment for activities at the LEA level. Expendi-tures made from this revenue should beidentifiable as federally supported expenditures.

9 Other. Revenue provided by sources other thanthose above.

G.FISCAL YEAR

Fiscal year denotes a 12-month period of timeto which the annual budget applies and at the end of

51

which a LEA determines its financial position and theresults of its operations. The terminal digit of theapplicable year designates the code.

Code Descriptor

0 FY 1969-19701 FY 1970-19712 FY 1971-19723 FY 1972-19734 FY 1973-19745 FY 1974-1975

H.INSTRUCTIONAL ORGANIZATION

The general types of schools or other organizationalentities providing instruction are included in thisdimension. An instructional organization is coded bytwo digits, such as, 10Elementary, and 20Middle/Junior High.

It is recognized that the instructional organizationsuggested here may not coincide with that being usedin all States, but it does provide the basic subdivisionsfor any organizational structure.

Wherever it does not comply exactly, being in moreor less detail, school officials can combine subdivisionsor omit some as applicable. Comparability is improvedby using the same structure for reporting purposesthroughout the Nation. In the following definitions,grade span can be changed to age span when structur-ing a nor,craded school or LEA.

Code Descriptor

10 Elementary School. A school classified as ele-mentary by State and local practice and com-posed of any span of grades not above gradeeight, including preprimary.

20 Middle/Junior High School. A term describing aschool organization between an elementaryschool and a high school. This term 's used forbudget purposes, usually, when middle andjunior high schools need to be grouped for plan-ning. Any other type organization by any othername, between the elementary and high schools,should be included.

DEFINITIONS OF DIMENSIONS AND ACCOUNTS(Continued)

H.INSTRUCTIONAL ORGANIZATION (Continued)

Code Descriptor

30 High School. A school comprising any span ofgrades beginning with the next grade followingan elementary or junior high school, if thereis such a school, and ending with or belowgrade 12. This includes 3-year and 4-year voca-tional and technical high schools separatelyorganized under the direction and managementof an administrator (such as a principal) for theprimary purpose of offering education andtraining in one or more semiskilled, skilled, ortechnical occupations.

40 Adult/Continuing Education School. A schoolfor adults and out-of-school youth (16 years ofage and older who are not regularly enrolled inschool) who have either completed, interrupted,or have not begun their formal education andare pursuing skills or knowledge in other thanregularly prescribed courses. These include adultbasic schools, advanced adult schools, occupa-tional schools, and those schools which have astheir purpose the upgrading of occupationalskills, retraining existing skills, pursuit of specialinterests, or for enrichment.

50 Junior College. An institution of higher educa-tion which offers, usually, the first 2 years ofcollege instruction, which frequently grants anassociate degree, but does not grant a bachelor'sdegree. It is either an independently organizedinstitution (public or nonpublic), an institutionwhich is a part of a LEA, or an independentlyorganized system of junior colleges. Juniorcolleges offer college transfer courses and pro-grams; and/or vocational, technical, andsemiprofessional occupational programs or gen-eral education programs at the postsecondaryinstructional level; and may also offer con-tinuing education for adults as well as othercommunity services.

90 Other School. A school which does not fit into

52

one of the previous descriptions and cannot beclassified as such.

I.JOB CLASSIFICATION AND ACTIVITYASSIGNMENT

This series groups into general categories I. kindsof work staff members perform within the L.cA anddivides these categories (or classifications) into activityassignments describing the major activities of eachposition. The job classifications, which are based uponthe job categories defined and used by the EqualEmployment Opportunity Commission, the Bureau ofthe Census, and the U.S. Department of Labor, areintended to identify the major skill levels needed inLEA and to provide structure for reporting to local,State, and Federal agencies. Each general category maybe subdivided by the local administrator into as manyassignments as necessary, depending upon the size ofthe LEA and its own internal reporting needs.

The assignments identify the staff member by whathe does rather than by his job titlesince job titles forthe same position mdy differ across the countryor byhis education or experience. A staff member with adoctor of philosophy degree who is working in a

programing or teaching assistant assignment would beclassified under 407 or 411, respectively, even thoughthese assignments are considered Technical. However, astaff member who performs as a business managerwould be placed under the supervising/managing/directing assignment (110) in the Official/Administra-tive classification even if he has less than a high schooldiploma and no prior business experience.

If a staff member has more than one activityassignment, the full-time equivalency of each assign-ment should be recorded. (See appendix B, p. 127.)

100 OFFICIAL /ADMINISTRATIVE. A grouping ofassignments comprising the various skill levelsrequired to perform management activities, suchas developing broad policies for the LEA andexecuting these policies through direction ofstaff members at all levels of the LEA. Thoseactivities performed directly for policymakersare also included here. The Official/Administra-tive classification does not preclude Profes-sionalEducational or ProfessionalOtherstatus.

Under the Official/Administrative classification,the following activity assignments are the mostcommon in the LEA; the list may be expandedas necessary at the discretion of the localadministrator.

101 Administrative Assistant Assignment. An assign-ment to perform activities assisting an executiveofficer in performing his assigned activities inthe local education agency.

102 Administrative Intern Assignment. An assign-ment to perform activities which are a part of aninternship plan during which the staff member issupervised periodically and his performance eval-uated.

103 Assistant Deputy/Associate Superintendent As-signment. An assignment to a staff member (e.g.,an assistant, deputy, or associate superintendentor his assistant) to perform high level, system-wide executive management functions in a localeducation agency.

104 Assistant Principal Assignment. An assignrrantto a staff member (e.g., an assistant, deputy, orassociate principal) to perform high level execu-tive management functions in an individualschool, group of schools, or unit(s) of a LEA.

105 Board of Education Member Assignment. Anassignment to perform activities as a member ofa legally constituted body which has beencreated and vested with responsibilities foreducational activities in a given geographicalarea.

106 Foreman Assignment. An assignment, con-sidered to be a Junction of management, tosupervise the day-to-day operations of a groupof skilled, semiskilled, or unskilled workers (e.g.,the warehouse or garage workers).

107 Ombudsman Assignment. An assignment to re-ceive and investigate complaints made by individ-uals against alleged abuses or capricious acts ofadministrative LEA officials. (The ombudsmanusually works for the board of education in aquasi-official status.)

53

108 Principal Assignment. An assignment to a staffmember to perform highest level executivemanagement functions in an individual school,group of schools, or unit(s) of a LEA.

109 Superintendent Assignment. An assignment to astaff member (e.g., chief executive of schools orchancellor) to perform the highest level, system-wide executive management functions of a

LEA.

110 Supervising/Managing/Directing Assignment. Anassignment to direct staff members and managea function, a program, or a supporting service.As with all activity assignments, the scope ofthk assignment is broken into subaccounts. Ex-amples of staff members having this assignmentinclude chairmen of academic departments, sup-ervisors of purchasing, directors and managers ofpsychological services.

111 Tax Assessing/Collecting Assignment. An assign-ment to provide services in the assessment ofreal and personal property for tax computationpurposes and in the collection of taxes for theLEA.

200 PROFESSIONALEDUCATIONAL. A group-ing of assignments requiring a high degree ofknowledge and skills acquired through at least abaccalaureate degree (or its equivalent obtainedthrough special study and/or experience), in-cluding skills in the field of education oreducational psychology.

Under the ProfessionalEducational classifica-tion, the following activity assignments are themost common in the LEA; the list may beexpanded as necessary at the discretion of thelocal administrator.

201 Curriculum Specialist Assignment. An assign-ment to a staff member who has expertise in aspecialized field to provide information andguidance to other staff members to improve thecurriculum of a LEA. This assignment would in-clude the curriculum consultant and curriculumsupervisor.

202 Counseling Assignment. An assignment to per-

DEFINITIONS OF DIMENSIONS AND ACCOUNTS(Continued)

1. JOB CLASSIFICATION AND ACTIVITYASSIGNMENT (Continued)

form the activities of assisting pupils, assistingparents and teachers to assist pupils and inmaking personal plans and decisions in relationto education, career, or personal development.

203 Librarian/Media Assignment. An assignment todevelop plans for and the use of teaching andlearning resources, including equipment, contentmaterial, and services.

204 Remedial Specialist Assignment. An assignmentto perform activities concerned with correctingor improving specific marked deficiencies (suchas a deficiency in content previously taught butnot learned) which are not due to impairment ofmental or physical ability.

205 Teaching Assignment. An assignment to a staffmember to instruct pupils.

300 PROFESSIONALOTHER. A grouping of as-signments requiring a high degree of knowledgeand skills acquired through at least a baccalaure-ate degree (or its equivalent obtained throughspecial study and/or experience), but not requir-ing skills in the field of education.

Under the ProfessionalOther classification, thefollowing activity assignments are the mostcommon in the LEA; the lilt may be expandedas necessary at the discretion of the localadministrator.

301 Accounting Assignment. An assignment to de-sign and maintain financial, staff, pupil, pro-gram, or property records; to summarize, an-alyze, or verify such records; or to control andcertify expenditures and receipts.

302 Analyst Assignment. An assignment (e.g., a

systems analyst, budget analyst, statisticalanalyst, or psychological analyst) to examine,evaluate, and make recommendations in suchareas as cost, systems, curriculum, or othereducational sectors.

54

303 Architect or Engineer Assignment. An assign-ment to a staff member who is licensed as anarchitect or engineer to perform activities suchas designing and preparing plans and specifica-tions for the construction, remodeling, or repairof buildings and facilities and overseeing con-struction to ensure compliance with plans andspecifications.

304 Audiologist Assignment. An assignment to pro-vide services such_as diagnostic evaluation, habil-itative and rehabilitative services, and researchrelated to hearing.

305 Auditing Assignment. An assignment to performactivities concerned with examining, verifying,and reporting on the accounting records of theL EA.

306 Dentist Assignment. An assignment to a staffmember who is licensed as a dentist to diagnoseand treat diseases, injuries, and malformations ofthe teeth and gums.

307 Dietitian/Nutritionist Assignment. An assign-ment to plan and direct food services programs,including determining the nutritional value offood for meals.

308 Editing Assignment. An assignment to select,write, and review materials for publication.

309 Evaluating Assignment. An assignment to de-termine the value or effect of plans, programs,and activities by appraisal of data in light ofspecified goals and objectives.

310 Legal Assignment. An assignment to a staffmember (qualified to practice law) to performsuch activities as conducting lawsuits, drawingup legal documents, and advising the LEA onlegal, rights.

311 Negotiating Assignment. An assignment to per-form such activities as resolving labor/manage-ment problems and helping to settle disputesand effect compromises. This assignment wouldinclude representatives of either management orlabor (e.g., shop stewards).

312 Opthalmologist Assignment. An assignment to a

staff member who is licensed as a physician andcertified as an opthalmologist to provide special-ized services in the care of the eye and its relatedstructures.

313 Optometrist Assignment. An assignment to astiff member who is a licensed optometrist totreat optical and muscle defects of the eyewithout the use of drugs or surgery.

314 Personnel Assignment. An assignment to per-form activities concerned with staff recruitment,selection, assignment, promotion, and training;maintaining staff records; and working withadministrators in developing pension and in-surance plans.

315 Physician Assignment. An assignment to a staffmember who is licensed as a medical doctor todiagnose and treat diseases and disorders of thehuman body.

316 Planning Assignment. An assignment to performactivities concerned with selecting or identifyingthe goals, priorities, and objectives of the LEAand formulating the courses of action to fulfillthese objectives.

317 Psychiatrist Assignment. An assignment to astaff member who is licensed as a physician andcertified as a psychiatrist to study, diagnose, andtreat diseases and disorders of the mind.

313 Psychologist Assignment. An assignment to astaff member who is licensed as a psychologistto evaluate and analyze pupils' behavior bymeasuring and interpreting their intellectual,emotional, and social development, and diagnos-ing their educational and personal disabilities.

319 Public/Community Relations Assignment. Anassignment to foster good relations between theLEA and the public community as a whole, byplanning and conducting programs to dissemi-nate information through such media as news-papers, radio and television, public forums, andcivic activities; and reviewing material for anddirecting preparation of LEA publications.

320 Registered Nursing Assignment. An assignment

55

to a staff member who is licensed as a registerednurs, to perform activities requiring substantialspecialized judgment and skill in observation,care, and counsel of ill and injured persons andin illness prevention.

321 Registrar Assignment. An assignment to coordi-nate and direct LEA registration activities, i,i-cluding compilatidn and analysis of registrationdata for administrative use.

322 Research and Development Assignment. An as-signment to perform activities concerned withsystematic studies and investigations in somefield of knowledge and with the evolving processof using the products of research and judgmentto improve, educational programs.

323 Social Work Assignment. An assignment to assistin the prevention of, or solution of, those

personal, social, and emotional problems ofindividuals which involve such relationships asthose of the family, school, and community.

324 Statistician Assignment. An assignment to plansurveys and collect, summarize, and interpretnumerical data, applying statistical theory andmethods.

325 Therapist Assignment. An assignment to per-form activities involving occupational orphysical methods of treatment and rehabilita-tion other than the use of drugs or surgery.

400 TECHNICAL. A grouping of assignments requir-ing a combination of basic scientific knowledgeand manual skills which can be obtained throughapproximately 2 years of post high schooleducation, such as is offered in junior/com-

colleges and technical institutes, orthrough equivalent special study and/or on-the-job training.

Under the Te-,hnical classification, the followingactivity assignments are the most common n theLEA; the list may be expanded as necessary atthe discretion of the local administrator.

401 Audiometrist Assignment. An assignment toadminister audiometric (hearing acuity) screen-

DEFINITIONS OF DIMENSIONS AND ACCOUNTS(Continued

1.--JOB CLASSIFICATION AND ACTIVITYASSIGNMENT (Continued)

mg tests under the supervision of an audiologistor physician.

402 Computer Operating Assignment. An assignmentto operate and contwi computers and relatedperipheral equipment.

403 Dental Hygienist Assignment. An assignMent toa staff member who is licensed as a dentalhygienist to perform dental prophylactic treat-ments and to instruct others in the care of teethand mouth.

404 Graphic Arts Assignment. An assignment to planand arrange art layouts to illustrate programs orprocesses for publication, demonstration, andmore effective communication.

405 Inspector Assignment. An assignment to ap-praise the condition of equipment and buildingsas they relate to safety and health, and thecondition of new construction as it relates tospecifications and codes.

406 Practical Nursing Assignment. An assignment toperform auxiliary medical services, such as

taking and recording temperature, pulse, andrespiration rates and giving medication under thesupervision of a physician or a registered nurse.

407 Programing Assignment. An assignment to pre-pare logical coded sequences of operations to beperformed by a computer in solving problems orprocessing data.

408 Psychometrist Assignment. An assignment toperform activities concerned with measuring theintellectual, social, and emotional developmentof pupils through the administration and interp-retation of psychological tests. These activitiesare usuall / carried out under the direction orsupervision of a psychologist or related profes-sional.

409 Purchasing Agent Assignment. An assignment to

56

perform activities concerned with buying sup-plies, equipment, and materials used in theoperation of the LEA.

410 Student-Teaching Assignment. An assignment toinstruct pupils under the supervision of a certif-icated teacher as part of a formalized highereducation program of teacher preparation.

411 Teaching Assistant Assignment. An assignmentto perform the day today activities of teachingpupils under the supervision of a teacher. Theteaching assistant assignment does not includeany diagnostic or long-range evaluative decisionsregarding pupils taught. Staff members havingthis assignment may or may not be certificatedbut have completed at least 2 years of formaleducation preparatory for teaching or the equiv-alent in experience or training.

412 Teaching Intern Assignment. An assignment toinstruct pupils as part of on-thejob preparationfor full certification as a teacher. A teachingintern usually has all the professional educationnecessary for certification except for skills in thefields of education or educational psychology.

500 OF F ICE /CLER1CA L. A grouping of assignmentsto perform the activities of preparing, transfer-ring, transcribing, systematizing, or preservingcommunications, records, and transactions, re-gardless of the level of skills required, where theactivities ate predominantly nonmanual.

Under the Office/Clerical classification, the fol-lowing activity assignments are the most com-mon in the LEA; the list may be expanded asnecessary at the discretion of the local adminis-trator.

501 Bookkeeping Assignment. An assignment tokeep a systematic record of accounts or transac-tions and to prepare statements.

502 Clerical Assignment. An assignment to performactivities concerned with preparing, transferring,transcribing, systematizing, or filing writtencommunications and records. This assignmentincludes the positions of clerk, clerk-typist,stenographer, file clerk, and secretary.

503 Messenger Assignment. An assignment to delivermessages, documents, packages, and other itemsto offices or departments within or outside theLEA.

504 Records Managing Assignment. An assignmentto perform activities concerned with establishingand maintaining an adequate and efficient sys-tem for controlling the records of the LEA.

505 Teaching Aide Assignment. An assignment toassist a teacher with routine activities associatedwith teaching, those activities requiring minordecisions regarding students, such as monitoringconducting rote exercises, operating equipment,and clerking.

600 CRAFTS AND TRADES. A grouping of manualassignments requiring a relatively high skill level(usually acquired through an extensive period oftraining) as well as requiring considerable judg-ment and a thorough and comprehensive knowl-edge of the processes involved in the work.

Under the Crafts and Trades classification, thefollowing activity assignments are the mostcommon in the LEA; the list may be expandedas necessary at the discretion of the localadministrator.

601 Carpentering Assignment. An assignment to per-form activities involved in constructing, erecting,installing, and repairing wooden structures andfixtures.

602 Electrician Assignment. An assignment to per-form activities involved with planning layoutand installing and repairing wiring, electricalfixtures, apparatus, and control equipment.

603 General Maintenance Assignment. An assign-ment to perform activities concerned with repairand upkeep of buildings, machinery, and electri-cal and mechanical equipment.

604 Masoning Assignment. An assignment to per-form 'activities involved with working withstone, brick, concrete, artificial stone, and thelike in constructing, erecting, and repairingstructures and fixtures.

57

605 Mechanic Assignment. An assignment to per-form activities involved with inspecting, repair-ing, and maintaining functional parts of mechan-ical equipment and machinery.

606 Painting Assignment. An assignment to performactivities involved with painting, varnishing, andstaining the interior and exterior of buildingsand fixtures.

607 Plastering Assignment. An assignment to per-form activities involved with applying and re-pairing plaster in the interior and on the exteriorof buildings.

608 Plumbing Assignment. An assignment to per-form activities involved with assembling, install-ing, and repairing pipes, fittings, and fixtures ofheating, water, and drainage systems.

700 OPERATIVE. A grouping of manual assign-ments requiring an intermediate skill ,evel

(which can be mastered in a few weeks throughlimited training) necessary to perform machineoperating activities.

Under the Operative classification, the followingactivity assignments are the most common in theLEA; the list may be expanded as necessary atthe discretion of the local administrator.

701 Crafts and Trades Apprenticeship Assignment.An assignment to perform the activities of anapprentice in crafts and trades (see 600).

702 Dispatching Assignment. An assignment to as-sign vehicles and drivers to perform specificservices and to record such information concern-ing vehicle movement as the LEA may require.

703 Vehicle Operating Assignment. An assignmentconsisting primarily of driving a vehicle such as abus, truck, or automobile used in the service ofthe LEA.

800 LABORER. A grouping of manual assignmentswhich generally require no special training. Alllaborers performing lifting, digging, mixing,loading, and pulling operations would be classi-fic,d in this general job classification. Under the

DEFINITIONS OF DIMENSIONS AND ACCOUNTS(Continued)

1. JOB CLASSIFICATION AND ACTIVITYASSIGNMENT (Continued)

Laborer classification, the one fairly commonspecific activity assignment associated with anLEA is groundskeeping; other activity assign-ments may be added by the local administratorif needed by a particular LEA.

801 Groundskeeping Assignment. An assignment tomaintain grounds owned, rented, or leased, andused by the LEA. This assignment does notinclude the operation of machinery requiringsemiskilled training or experience.

900 SERVICE WORK. A grouping of assignments,regardless of level of difficulty, which relate toboth protective and nonprotective supportiveservices. Under the Service Work classification,the following activity assignments are the mostcommon in the LEA; the list may be expandedas necessary at the discretion of the localadministrator.

901 Attendance Officer Assignment. An assignmentto enforce compulsory attendance laws.

902 Custodian Assignment. An assignment to per-form LEA plant housekeeping, servicing, andsecurity services consisting of such activities ascleaning; operating heating, ventilating, and air-conditioning system; guarding and caring forschool property; and servicing building equip-ment.

903 ElevE ror Operating Assignment. An assignmentto transpirt passengers and freight between thefloors of a building via elevator.

904 Food Service Assignment. An assignment toperform the activities of preparing and servingfood.

905 Guard/Watchman Assignment. An assignment toperform activities concerned with maintainingthe safety and security of LEA property, facili-ties, and personnel.

58

906 Monitoring Assigninent An assignment to per-form such activities as helping to keep order onbuses and playgrounds and in lunchrooms, andtaking attendance. This assignment would in-clude traffic guards for loading buses.

907 Stores Handling Assignment. An assignment toperform the activities of receiving, storing, anddispensing school supplies, materials, and equip-ment.

J.TERM

Code Descriptor

Fall TermDay. This is a division which usuallybegins in August or September and ends inNovember or December and pupils attend theday sessions.

2 Fall TermEvening. This is the same as the termabove except pupils attend the evening session.

3 Winter TermDay. This is a division whichusually begins in November or December andpupils attend the day sessions.

4 Winter TermEvening. This is the same as theterm above except pupils attend the eveningsession.

5 Spring TermDay. This is a division whichusually begins in February or March and ends inMay or June and pupils attend the day sessions.

6 Spring TermEvening. This is the same as theterm above except pupils attend the eveningsession.

7 Summer TermDay. This is a division whichusually begins in June and ends in August andpupils attend the day sessions.

8 Summer TermEvening. This is theterm above except pupils attendsession.

K. SPECIAL COST CENTERS

same as thethe evening

A cost center is the "smallest segment of a programthat is separately recognized in the agency's records,

accounts, and reports. Program-oriented budgeting,accounting, and reporting aspects of an informationsystem are usually built upon the identification and useof a set of cost centers."2 When a LEA identifies itsinstructional programs, whether with broad based goalsand objectives or the designated subject matter areas asdefined in Handbook VI,3 they become in essence theinstructional cost centers. On the other hand, ifmanagement wishes to divide these LEA-wide costcenters into school cost centers, the number of thesecenters increases proportionately to instructional pro-gra ns for each school. Supporting services are arrangedfor accumulating costs, also. Each Area of Responsi-bility may be designated as a supporting services cost

2 Yeuell Y. Harris and Ivan N. Seibert, The Stale EducationAgency, State Educational Records and Reports Series: Hand-book VII. U.S. Department of .Health, Education, and Welfare,Superintendent of Documents, U.S. Government PrintingOffice, Washington, D.C., 1971. $1.75.

3 Jrqin F. Putnam and W. Dale Chismore, op. cit.

59

center. They are arranged in such way as to beprorated, in the simplest manner, to instructionalprograms. This is essential for total cost determinationof various programs.

A special .cost center is set aside to enable costs tobe accumulated on a subprogram basis; i.e., a portionof a cost center is set aside for special emphasis. Forexample, a program such as Health and PhysicalEducation has its program elements of Physical Educa-tion and Interscholastic Athletics (Football, Basketball,Track, Baseball). Here, the cost of transporting con-tesiants and/or boosters could be set aside in a specialcost center for analysis. Any program element could beset aside for special treatment; i.e., costs accumulatedfor that element in addition to those accumulated forthe entire program. Another example could be DrugAbuse Education, as it is done on a large group basissay in the assembly but takes manpower, space,supplies, and time. Essentially any segment of schoolactivities could be set aside and costs accumulated anddesignated a special cost center.

Chapter 5

IMPLICATIONS OF FINANCIAL ACCOUNTING IN USING THE HANDBOOK

Described in the preceding chapters is the chart ofaccounts which serves to link school financial transac-tions with resource items concerning curriculum,school staff, facilities, and with types of pupils. Usingthe chart in this manner provides an opportunity toestablish cost centers representing areas of educationaleffort and to account for the costs of such entities orprograms. The group of accounts is presented as aworkable frame for establishing cost centers but is notto be considered the ideal.

This chapter contains the implications for the use ofthese classifications for program cost accounting, forinformation systems, for analysis, and for reporting,along with some suggested financial measures for theeducational system and the rationale for the expendi-tures classification.

RATIONALE FOR EXPENDITURESCLASSIFICATION

The expenditures classification (dimensions) de-scribed in this handbook are presented in chapter 4.Revenue and expenditure accounts together reflect thechanges in the financial condition of a fund whichoccur during a 'given period of time. Revenues, asdescribed earlier, consist of increases in ownershipequity in a fund; that is, they consist primarily ofadditions to the assets which do not decrease someother asset or increase any liability. Expendituresconsist of decreases in assets or increases in liabilitieswhich result in a decrease in fund balance.

Revenues are clasiified by fund and source. Expend-

itures, in addition to being classified by fund andsource, may be classified by function, object, opera-tional unit, program, space, instructional organization,term, and staff assignment. There are classifications ordimensions useful for local school officials which arenot described here. But those considered most relevantto the decisionmaking process are discussed in .-a

preferential arrangement; i.e., the most relevant will belisted and defined first.

Dimensions

The extent of detail in the outline of thesedimensions is not to be taken as indicating that theFederal, State, or local government wants all theinformation in a statistical file. It is to be used whenneeded. The elaborateness of the items serves threepurposes: (1) it forms a logical, consistent array ofdata items for ease in use; (2) the large array providesflexibility in use and creates the possibility of aggrega-tion; and (3) it allows for the unexpected or specialcase. The art of the design is to be able to extract anyor all details for regular or special use.

The following list is not meant to suggest that thesedimensions be placed in this particular order when usedin an information system. They may be arranged in anyorder to facilitate use. All dimensions need not berecorded at the time of transaction but should berecorded and filed at some time during the year.Through methodical arrangement, discussed later inthis chapter, wo or more dimensions may be combined into one code.

To. comply with legal requirements in many Statesand to exhibit good custodial care of funds, localofficials, when keeping records about finances, areusually required at least to indicate from which fundan expense was paid, what was purchased,.and why itwas purchased. By recording each financial transaction,in these three dimensionsfund, object, and func-tionauditable records are made to comply with legaland stewardship requirements, and, with a minimumamount of analyses, trend data can be established forfuture planning.

These three entities, fund (1), object (2), andfunction (3) constitute, therefore, the three mostimportant dimensions for finance recordkeeping. Afund is an independent and fiscal accounting set ofaccounts which are segregated for specific activities or

for-4,btaining certain objectives. Funds are establishedby constitutional provisions or special statutes in manyStates to help assure that money is spent for

60

purposes specified in appropriations, Bonding andbuilding statutes reflect this motive. Identification offunds usually is made in terms of their legal basis, interms of objectives to be served, and sometimes interms of both the source of receipts and type ofactivities which they finance. Debt Service Fund, FoodService Fund, Student Activity Fund, and SpecialRevenue Fund, are examples of these types of fundidentification.

The significance of separating expenditures byobject (2), defined as goods and services, is provedwhen the decisionmaker can compare the cost effec-tiveness ratios of two or more pieces of equipment, orthat of a purchased service with the same type ofservice provided in-house. Through analysis, varioustypes of supplies and materials (textbooks or librarybooks) can be evaluated for a program if they areproperly identified.

Function (3) is the broad area of programs, subpro-grams, and activities into which expenditures areclassified to provide the capability of comparing costsamong communities and States and to assist localmanagers in setting up ratios or measures for estimatesin their demand for quick decisions. For example, theratio of the number of and cost of instructional staff tosupporting services staff is an important measure inmanagement. Again, the ratio of the number and costof staff (Function 2200) who support instructionalstaff to those supporting pupils (Function 2100) maybe an indicator of value to persons who makedecisions.

The four broad functions are: instruction, support-ing services, community services, and debt services.Instruction is subdivided into instructional programs.Supporting services is subdivided into supporting ser-vices programs. Further clarification of program is

made in the program dimension rationale in the section"Implications of Financial Accounting for ProgramAccounting."

The fourth dimension is operational unit (4). Thisunit is the particular activity or group of activitiesoperated by a LEA. Individual schools, transportation,or food services are examples of units of specializedactivities.

The operational unit, as a school, becomes impor-tant when decisions are made. regarding attendancecenters or types of programs to provide for theattendees. For example, remedial education may bebeneficial in one attendance area (operational unit), butless effective in others. Another example, given funds

61

for an experimental program in drug abuse educationfor only one attendance area, the decisionmaker mustchoose the school most apt to produce the greatestachievement toward emotional development objectives.The operational unit dimension provides cost centers(areas for localizing costs) enabling the local adminis-trator to compare the resources provided for variousschools,

The operational unit dimension provides the link tofacilities in system development. An operational unitsuch as a school, administration unit, or a transportation unit is housed in a building or buildings on asite. The operational unit code and site code may bemerged for this link. For example, Johnson ElementarySchool (code 18) is located in two buildings on sitenumber 22: The buildings are numbered 22 1 and 22 2. -

The Johnson Elementary School is coded 1822 and aCommunication Skills program might use the spacesdesigned 18221101-115, which means this programuses spaces in rooms 101 to 115 in building number 1.This linkage of an operational unit with space providesthe opportunity to assign the cost of using space to aprogram, which is an element of the operational unit.This is explained in more detail in the chapter onproration. (Facilities items are classified and defined inHandbook III, Property Accounting for Local andState School Systems.)1

Program (5) is the fifth dimension in this arrange-ment. It is the dimension in which goals, objectives,subobjectives, and preformance requirements are ana-lyzed and organized into procedures, activities, pro-grams, and courses. Instructional programs may begrouped into three major groupsregular, special, andadult/continuingor further divided into goals andobjectives and into specific objectives, such as com-munication skills development, personal development,and environmental understanding, and still furtherdivided into more detailed skills development pro-grams. Regardless of how programs are defined, thisdimension is useful in relating cost to effectiveness.Evaluation is accomplished only when educationalresults are identified. This is' discussed in more detaillater in this chapter under the section Implications ofFinancial Accounting for Program Accounting. This

Paul L. Reason and George C. Tankard, Jr., PropertyAccounting for Local and State School Systems. Washington:U.S. Government Printing Office, 1959. U.S. Department ofHealth, Education, and Welfare, Office of Education, StateEducational Records and Reports Series: Handbook III,Bulletin 1959, No. 22.

di mension links costs to curriculum and program typeswhich are defined in Handbook VI, Standard Terminol-ogy for arriculum and Instruction in Local and StateSchool Systems.2

Source of Funds (6), the sixth dimension, is

important to fund providers at all levels, local, State,and Federal. Appropriating bodies, school patrons, andschool boards at the lo.;a1 level and legislators at theState and Federal levels, have to make choices whenchanneling funds into broad public service areas:

education, health, personal and traffic safety, transpor-tation, etc. Each service competes for the dollar anddecisions have to be made regarding allocations. Theallocations are made for specific purposes. Goals andobjectives for which the funds are provided need to beidentified with the corresponding purchased goods orservices for proper evaluation. Some States specify useof special funds for specific purposes, such as bondfunds, and debt funds. Special funds usually are

identified as they are placed in the Special RevenueFund and expenditures from the particular specialfund can be identified by code as they are made.

The identification of expenditures, with the fiscalyear (7) they are presumed to benefit, is important inproperly accounting for the financial affairs of a LEA.Expenditures are of three types: (1) current expenses,which are presumed to benefit the current year; (2)capital outlays, which are presumed to benefit both thepresent and the future; and (3) debt redemptions,which involve expenditures on account of benefitsreceived, at least in part, in prior fiscal years as well ascurrent and future periods. Also, funds are appro-priated in some cases for a program which may extendinto another fiscal period which creates a need foridentifying money by fiscal year. For example, ifteachers are employed on a 9-month's basis but arepaid in 12 equal installments; one in July and one inAugust, the payroll for these staff members shouldcarry a fiscal* year code of the previous fiscal yearrather than the one in which they were paid. Inaddition to being important to the fiscal agent, thisdimension has value for the program manager as itprovides insight into the amount of money available.

The next dimension is instructional organization

2John F. Putnam and W. Dale Chismore, Standard Ter-minology for Curriculum and Instruction in State and LocalSchool Systems, State Educational Records and ReportsSeries: Handbook VI. U.S. Department of Health, Education,and Welfare, Superintendent of Documents, U.S. GovernmentPrinting Office, Washington, D.C. 1970, $3.00

62

(8). It differentiates between the various organizationaloperations of the LEA. When linked with operationalunit through systems arrangements, local officials mayfurther identify and budget for levels of educationsuch as elementary, middle/junior high, high, andadult/continuing education which is also essential inreporting to the State agency. This capability assiststhe local decisionmaker also to determine merits ofprograms by type of pupilsage, grade, etc.

Useful in identifying staff activities is a dimensioncalled assignment (9). This dimension has value princi-pally for local officials in personnel administration:staff evaluation, assignment, and recruiting. It may beused also in relating cost of staff services to the activityor project to which they are assigned and to the spacein which the activity occurs. It has value in manpowersupply/demand studies and reports. This classificationis adapted from Handbook IV, Staff Accounting forLocal and State School Systems. 3

Evidence points to a trend toward an extendedschool year and school day throughout the country,producing a need to designate and code divisions oftime. To differentiate among these divisions, a dimen-sion called term (10) is included. The various divisionsneeded may be quite dissimilar throughout the coun-try, as vocational schools may change programs orpupils often, say every few weeks, whereas others mayhave need for only two terms, day and evening orregular and summer. Officials operating schools on a12-months' basis may wish to designate divisions offour termsfall, winter, spring and summer. For com-parable purposes, therefore, it is suggested that, if pos-sible, the following divisions be used: fall--day, fallevening, winterday, winterevening, springday,springevening, summerday, and summerevening.This dimension has significant value when progrims orprojects differ somewhat from term to term, from dayto evening, or when levels of support may vary.

Another dimension, special cost center (11), is

included for use as needed. In addition to being used asa cost center for special projects, it can be used as adimension for target groups, such as migrants, drop-outs, or the blind, (if not recorded in the programdimension), and as a particular area for cost accumula-

3Allan R. Lichtenberger and Richard J. Penrod, StaffAccounting for Local and State School Systems. Washington,D.C.: U.S. Government Printing Office, 1966. U.S. Departmentof Health, Education, and Welfare, Office of Education, StateEducational Records and Reports Series: Handbook IV,Bulletin 1965, No. 18.

tion, such as girls' basketball, golf, senior trip, or fieldday. A segment of an existing program cost center maybe separated into a special cost center to be evaluated.

It is not suggested or implied that LEAs must use allthese dimensions in their accounting system, but theyare defined and presented for use when practicable.Their importance varies from LEA to LEA but theiruse is essential for comparability.

Recognizing that the logical relationships of dimen-sions have been stated, the following essential reasonsfor their inclusion are repeated for emphasis. The firstthree, (fund, object, and function) are required by lawin some States and by administrative decisions inothers. They are needed by the fiscal agent for fulldisclosure and fair presentation of revenues and ex-penditures. Operational unit, number 4, is importantto each level of fund appropriations, in that it permitsdifferentiation of program costs among individualschools as, well as individual operating units. It is ofconsiderable worth to those States administering pro-grams for building construction. The program dimen-

sion, number. 5, is to be used for programs asdetermined locally. This dimension is useful in accumu-lating costs of evaluating programs.

The sixth dimension, source of funds, has considera-ble worth; that of identifying fund providers for allappropriating agencies. Fiscal Year identification, num-ber 7, assists managers in keeping track of expend-able funds for programs which span more than onefiscal year. Dimensions 8, 9, 10, and 11 (instructionalorganization, assignment, term, and special cost center)have marked significance for local officials in accumu-lating costs by programs and subprograms by individualunits.

Consequently, in keeping with the above rationaleand to promote comparability throughout the educa-tional community, it is imperative that officials in eachLEA record financial transactions in at least each ofthe firct seven dimensions. These dimensions are:

1. Fund 4.. Operational 6. Source of Funds2. Object Unit 7. Fiscal Year3. Function 5. Program

TABLE 4Dimensions for Fund Transactions for Each LEA

Fund Object functionOperational

Unit ProgramSource of

Funds Fiscal Year

1 General 1 Salaries 1000 Instruction 001 Friedley Elem. Broad Based 1 Local 0 1969-1970Fund 2 Employee 1100 Regular 501 Mc Lune Middle Goals 2 Intermediate 1 1970.1971

2 Special Rev. Benefits Programs 701 Jones High 3 State 2 1971.19723 Debt Service 3 Purchased 1200 Special 751 Chismore Voc- and 4 Federal 3 1972.19734 Capital Project Services 1300 Adult/ 781 Curtis Jr. Coll. 4 1973-19745 Food Service 4 Supplies & Cont. Ed. 901 Central Adm. Subject Matter 5 1974-19756 Pupil Materials 2000 Support 911 Main Warehouse

Activity 5 Capital Services 921 Main Bus and7 Trust & Agen. Outlay 2100 Pupil Garage8 Fixed Assets 6 OtherObj. Support 990 -- Type of Pupils9 Long-Term 7 Transfers 2200 Staff

Debt Support2300 General

Combinedwith

Admin.Support Level of Instr:

2400 School orAdmin. Age of LearnerSupport

2500 BusinessSupport

2600 CentralSupport

3000 CommunityServices

4000 Nonpro-gramedCharges

5000 DebtServices

63

The remaining four dimensions are suggested princi-pally for purposes of more effective management ofeducational activities and will promote comparabilityin recording and reporting financial information. Thefour dimensions are:

TABLE 5Dimensions to be Included for Fund Transaction

8. Instructional Organization9. .Assignment

10. Term11. Special Cost Center

InstructionOrganization Assignment Term Special Cost Center

1 Elementary School 1 Official/Administrative 1 FallDay 01 Girls' Basketball2 Middle/Junior High 2 Professional-Educational 2 FallEvening 02 Drug Abuse3 High School 3 Professional-Other 3 WinterDay 03 Special Project4 Adult/Continuing 4 Technical 4 WinterEvening 99 Other Special

Education School 5 Office /Clerical 5 SpringDay Project5 Junior College 6 Crafts and Trades 6 SpringEvening9 Other School 7 Operative 7 SummerDay

8 Laborer 8 SummerEvening9 Service Work

UNITS OF MEASURE

Certain useful conventions or measures have beenadopted in professions, business, governmer'. andother organizations, indicating from time to time theirstatus or progress. These standard measures and ratiosgenerally provide indicators of conditions.

Measures and ratios in education generally are

derived by combining statistical elements from datafiles of pupils, staff, curriculum, property, and com-munity. Examples are: average daily membership,pupils per classroom, pupils per teacher, square foot ofspace per pupil, teaching workload, optimum size ofschool, and average achievement score of pupils.

Measures described and defined in this sectioninclude: (1) current expenditures; (2) operating costs;(3) building use cost; (4) equipment use cost; and (5)some techniques for educational evaluation.

1. Current Expenditures. Current expenditures aredefined as the total charges incurred for the benefit ofthe current fiscal year, whether paid or unpaid. Theyinclude all expenditures less capital outlay and debtservice. Current expenditures for all programs (instruc-tional and supporting) are derived by adding theaccumulated cost of

Function 1000 (Instruction)Function 2000 (Supporting Services)

64

Function 3000 (Community Services)Function 4000 (Nonprogramed Charges)

Less

Function 2530 (Fa^,ilities Acquisition andConstruction Services)

Function 4300 (Transfers of Funds)Object 540 (Equipment)Object 550 (Vehicles)Revenue 1600 (Food Services)Revenue 1700 (Pupil Activities)

Current expenditures for regular programs andspecial programs only would be calculated in the samemanner, except the total cost of adult/continuingprograms and community services programs would besubtracted. (The total cost includes the direct cost plusthe prorated indirect costs of there programs.) Simi-larly, the current expenditures for regular or specialprograms separately can be excluded from total currentexpenditures, or calculated individually by includingonly those categories applicable.

Current expenditure per pupil is a measure of longstanding, indicating, to some extent, community effort.It was adopted when general or basic educationcomprised most of the educational curriculum. Theextension of the schoolday and school year to includespecial education, occupational education, adult/

continuing education, and community services in even-ing and summer sessions has tended to make lessvaluable the per-pupil cost measure. The reason is thatthe units being compared are less alike.

The units to be compared in determining per-pupilexpenditures are:

(1) The types of activities for which expendituresare made; i.e., activities which require variedmixes of resources per pupil (lecture methodversus laboratory method of instruction).

(2) Length of time pupils are in session; i.e., 6hours per day for regular day session versus 3hours in the summer session or 3 hours in theevening session.

(3) The pupil unit of measure; i.e., average dailymembership, average daily attendance, enroll-ment, or other.

As the three types of units above approach simi-larity the per-pupil expenditure measure has meaning.The per-pupil expenditures for an elementary schoolhave value when comparing them to another ele-mentary school, but those of a secondary school inwhich there exists only a program for preparing pupilsfor postsecondary education are not comparable tothose in a school which prepares pupils only forimmediate employment. Similarly, the per-pupil ex-penditures of a LEA where the programs consist ofelementary and secondary education are not compar-able to those in a LEA which, in addition to the aboveprograms, has adult/continuing education programs.Therefore, it becomes important to specify the pro-grams for which the per-pupil expenditures are made.

in this handbook, for purposes of comparability andto indicate LEA effort, it is recommended that averagedaily membership be used in computing per-pupilexpenditures and that, when using them withoutreference to particular programs, they be computed forelementary and secondary education only in regularday session.

The procedure for computing the current expendi-tures per pupil for a LEA, then, would be to sum allcurrent expenditures, defined above, for elementaryand secondary education in the regular day session(subtracting the expenditures for all other pro,,, ams andtheir prorated share of the support programs) and dividethe sum by the average daily membership for the year.

When computing the per-pupil expenditures for asegment of the LEA programs, such as elementaryeducation, it is important to include all costs, prorated

65

indirect costs and direct costs. In other words, thoseindirect costs of elementary education; operation andmaintenance, pupils' support services, staff supportservices, and others; must be included. This procedureis discussed in chapter 6.

Per-pupil expenditures computed on this basis andincluding the same factors can have validity, and can beuseful for comparison purposes. The factors used andthe basis for their computation should be described toassure that comparisons are not misleading.

In the formulas below current expenditures meansthe direct expenditures of the programs plus their si:areof the prorated costs of the support programs.

Current expenditures per pupil can be calculated foreach segment of programs by dividing current expendi-tures of those programs by the average daily member-ship of the pupils in those programs.

The following formulas may be used in computingcurrent expenditures per pupil:

CE(1) CEP (ES) = ADM

(ES) Where

(2)

(3)

(4)

CEPES

CE

ADM

= Current Expenditures Per Pupil= Elementary Secondary= Current Expenditures= Average Daily Membership

CEP (R)CE (R)

WhereADM (R)

R = Regular Programs

CEP (S) = CE (S)Where

ADM (S)

S = Special Programs

CEP (A)CE (A)

WhereADM (A)

A = Adult /Continuing Programs

(5) CEP (CS) =CE (CS)

WhereADM (CS)

(CS) = Community Services

Current expenditures per pupil for regular andspecial instructional programs only include:

CEP (RS) = Function 1100 (Regular Programs)Function 1200 (Special Programs)Function 2000 (Supporting Services)

Less

Function 4300 (Transfers of Funds)Function 2530 (Facilities Acquisition and Con-

struction)Function 2000 (That Portion of Supporting Serv-

ices Prorated to Function 1300Adult/Continuing Programs and3000 Community Services Pro-grams)

Revenue 1600 (Food Services)Revenue 1700 (Pupil Activities)Object 540 (Equipment)Object 550 (Vehicles)

Divided by

ADM (RS) Average Daily Membership) WhereRS = Regular and Special Programs

Buildings

01

02

03

04

Transportation

Equipment

Bus No. 1

2

3

4

5

6

Other EquipmentList

Land Improvement

List

2. Operating Cost. The term "Operating Cost," asdefined here, is new to the field of education and meansthe total cost (direct cost, plus indirect cost, plus theuse cost of buildings and equipment) of all programs oractivities for the current school fiscal year. In calculat-ing the use cost, an operating cost or depreciation costschedule is maintained, not in the regular accounts butas memorandum accounting. This provides a yearlyrate for which the cost of using buildings and equip-ment may be allocated to the operation of the LEA'sactivities or programs. The method or schedule sug-gested for establishing these yearly operating or usecosts is described below.

If depreciation costs are to be calculated, a scheduleshould be established for depreciating buildings andequipment by individual units, that is, for each

Figure 1. Capital Assets and Depreciation Schedule

(1) (2)Original Depreciation

Cost in

Previous Years

(3) (4) (5) (6) (7)Balance of Life in Life Depreciation Depreciation

Cost Years Remaining Current Year Remaining

Remaining

Land oTOTALS

66

0 o

building and piece of equipment or group of pieces, ifthey are alike and purchased in a group (such astypewriters, chairs, desks). A sJggested schedule is

shown in figure 1, which is an adaptation of theschedule used by the Office of the Superintendent ofPublic Instruction of the State of Illinois.

Buildings and equipment should be depreciated on astraight line basis for a period of time corresponding totheir life expectancy. They may be remodelled orrepaired, or equipment may be traded for newerequipment of the same type or of a different type. Ineach case the cost of remodelling or repair should beconsidered in the depreciation schedule. Significantremodeling of a building, in the long run, will extendits life and will increase the amount to be recovered.The extended life as well as the increased value of thebuilding should be included in the depreciation sched-ule. The following formula is used for determining theextended life of a building when substantial improve-ments or remodeling is done, and the new yearlyrecovery rate can be calculated when the extended lifeis determined. (The ratio 4/ i 3 produced, through trialand error, the most. behavior when addi-tional costs were applied to extended life of a building.)

(I T\TD 4

lOC + T_/ Where13

TD = Ratio of extended time (life) to the originaldepreciation period

I = Improvement cost

OC = Original cost

T = Lapsed time in years between constructionand remodeling and/or between the firstand second remodeling. 1 has a minimumof 15 years and a maximum of 25 years.

L = Life expectancy of the building

I

OCRatio of remodeling cost to the originalcost

T = Ratio uf lapsed time to the original deprecia-L tion period

An example: riuilding No. 1 was constructed in195C at a cost if $1,314,000 and was remodeled in1969 for $262 600. The life expectancy of the buildingis 50 years. The ratio of extended time to the originaldepreciation p '.riod or TD is compiled as follows:

67

(1)

(2)

(IT \TD = 4 \ OC +

13

(262,500 19 \

4`1,314,000 50

=13

(3) = 4 (.1998 + .38)13

(4) = .18 or 18%

18 percent of 50 = 9 years, which is the extendedterm for depreciation. To arrive at the rate ofdepreciation for the remaining years, note:

OC= original amount depreciated yearly = $26,280.

50

Yearly depreciation multiplied by 19 years, lapsedtime from construction to remodeling, = $499,320which is amount already recovered at the time ofremodeling. Subtract $499,320 from $1,314,000 =$814,680 which is amount yet to be recovered on theoriginal building. Adding remodeling cost of $262,500to the amount to be recovered gives a total of$1,077,180, the new value of the building. The remain-ing life of the building (50 19 + 9) is 40 years and$26,929.50 per year is to be depreciated. Reference toequations 3 and "4 indicates remodeling of building at therate of .1998 or 20 percent of the cost of the buildingwill extend its life 18 percent or a ratio of 10 to 9.

An additional improvement of $150,000 in 18 yearswould extend the life of the building 7.3 or 7 yearsaccording to the same formula

TD 413

(I T \'OC L

and the yearly depreciation rate would be $25,601.The recovery rate has changed very little but the ratioof cost to extended life in this case is 11 to 7.

To arrive at the Current Operating Cost of the totalLEA program, add the accumulated costs of

Function 1000 (Instruction)Function 2000 (Supporting Services)Function 3000 (Community Services)Function 4000 (Nonprogramed Charges)Column 6 (Depreciation for Current Year)

Less

Function 2350 (Facilities Acquisition and Con-struction

Function 4300 (Transfers of Fund)Revenue 1600 (Food Services)Revenue 1700 (Pupil Activities)Object 560 (Equipment)Object 550 (Vehicles)

This is the Current Operating Cost of all programsfor the total fiscal year, including summer school. Thecurrent operating cost of the fall and spring terms onlyand the Regular and Special Programs only wouldexlude Adult/Continuing Education ProgramS (1300),Community Services Programs (3000), and summerschool which is designated Summer TermDay andSummer TermEvening.

Current operating cost for regular and special

programs for the fall and spring term include:

Function 1100 (Regular Programs)Function 1200 (Special Programs)Function 2000 (Supporting Services)Function 4000 (Nonprogramed Charges)Column 6 (Depreciation for Current Year)

Less

Function 2530 (Facilities Acquisition and Con-struction)

Function 4300 (Transfers of Funds)Revenue 1600 (Food Services)Revenue 1700 (Pupil Activities)Object 540 (Equipment)Object 550 (Vehicles)

And prorated portion of SupportingServices and Depreciation for Adult/Continuing programs, CommunityServices programs, and Summer Termprograms.

3. Building Use Cost. This is the cost of using abuilding for a fiscal year, the same as the yearlydepreciation allowance described earlier. The buildinguse cost or building operating cost for a year is

determined by dividing the original cost by its lifeexpectancy, or

BUC =OC

Where

BUC = Building Use CostOC = Original Cost

L = Life Expectancy

68

The total building use cost for a LEA is derived byadding the yearly depreciation allowances (column 6)for all buildings. Individual schools and operating unitsare housed generally in a group of buildings on abuilding site. To determine the building use cost for anindividual school, add the yearly depreciation allow-ance for each building on the school site. Formulas _forderiving space use cost for portions of a building aredescribed and iliustrated in the chapter on Prorationand Indirect Costs.

4. Equipment Use Cost. This is the cost of using apiece of equipment for a fiscal year, the yearlydepreciation allowance for that equipment, if it has alife expectanCy of more than one year. Instead ofcharging the total cost of a piece of equipment to afunction or program at *lie time of purchase, thedepreciation allowance is charged. For example, apiano for a music class would be charged to CapitalOutlay, equipment, and the yearly depreciation allow-ance would be entered as the operating cost ofInstruction, Regular Programs. Music, for each fiscalyear. If after a few years a substantial percentage of theoriginal cost is spent on repair, the life of theequipment might be extended. Use the same formulafor extending the life of equipment as that given abovefor extending the life of a building, except the value ofT is not limited.

The remaining depreciation on equipment traded-inshould be transferred to the replaced equipment. Theremaining depreciation on equipment sold is dropped.The revenue received from equipment sold is set asidefor future purchases.

Following is a formula for determining the new costto be depreciated on trade-in equipment:

NC = RD + MV - TI, WhereNC = New Cost (to be depreciated)RD = Remaining depreciation to be recoveredMV = Market Value of new equipment

TI = Trade-in value received.

An example: A piano costing $5,000, with a lifeexpectancy of 5 years, is depreciated at the rate of$1,000 yearly. It is traded for a new piano with a retailprice of $6,000, during the fourth year, for a differ-ence of $3,000. The remaining depreciation for thenew piano is calculated:

NC = RD + MV - TI

New Cost = $1,000 + $6,000 - $3,000

New Cost = $4,000

Therefore, the new piano should be depreciated atthe rate of $800 per year.

5. Techniques for Educational Evaluation. To thispoint, individual measures or ratios have been identi-fied and defined but emphasis is now direCted to sometechniques for measuring the results of education inrelation to its resources. The concept that alternatemixes of resources produce varied results is beingtested in-various LEAs. Some techniques for analyzingthe results of these alternatives are being tested also.Even though some techniques may need further modi-fication and refinement, putting thein to use as theyare now enhances their chances for improvement.

Experience with refined techniques will increase

their 'value to decisionmakers in several ways. Theymay be used to predict or plan for immediate needs orlong-range activities as well as to measure the effective-ness of various processes. Because resources must .bepurchased, nd funds, many times, are in short supply,the techniques are appropriate financial tools to beincluded in this manual.

a. Accountability is a relatively new concept that isvirtually certain to receive increased emphasis inthe years ahead. The term implies responsibility,value received for funds expended, or money'sworth. Accountability may liiiTlerzslai "evi-dence of fulfilling a measurable responsibilityassigned under certain conditions and con-straints." (This is a slight modification of thedefinition in Handbook VII.)

The measurement aspects of accountabilitycurrently lare _being explored. In assessing theconcept, cognizance of goal fulfillment in rela-tion to resources provided is the evolving theme.

b. Accreditation is not a new term. Most Statedepartments of education accredit LEAs withintheir respective States and have various standardstoward which schools strive. Qualifying as anaccredited school is 'important and in most Statesis a motivating factor in improving the quality ofschools.

Accreditation standardseuntil recently, have notemphasized fulfillment of goals. Some LEAs arebeing' asked to develop procedures for accredita-tion which are goal oriented. The_ principles of

69

accreditation standards, including the concept ofaccountability and State funds being used asincentives, imply the use of system techniquesfor financial accounting.

c. Operations Analysis has come into increasing useas a tool for management in education. It is ananalysis of operations with heavy reliance on thegeneration of mathematical .models that maydescribe appropriately key factors or variablesand relationships between them. It is a rationalsearch for optimum solutions to problems. Ac-cording to the Commission of AdministrativeTechnology of the American Association ofSchool Administrators, such applications arebeing made in food service management, trans-portation administration, utility-cost resourceallocation, student scheduling, space utilization,and Program Evaluation and Review. Technique(PERT) in the construction field. For details oftheir use, see the Commission publication.4

d. Cost effectiveness (resources effectiveness) im-plies somewhat the same concept as accountabil-ity; i.e., the relationship of resources, process;and goal fulfillment. Effectiveness implies impactor influence of one thing on another. Objectivesare established to fulfill goals, and goals arefashioned to provide benefits. When measurableobjectives are finally defined, various resource-mixes to fulfill them are priced. The costeffectiveness ratio is best when the optimum mixis attained. According to Handbook VII ,s "Costeffectiveness analyses are designed to measurethe extent to which resources (costs) allocated toa specific objective under, each of several alternatives actually contribute eto- accomiilishing thatobjective so that different ways of gaining theobjective may be compared."

'Stephen J. Knezevich, Editor. Administrative Technologyand the School Executive, submitted by the Commission ofAdministrative Technology, American Association of SchoolAdministrators, 1201 16th St., NW., Washington, D.C., 1969.

5 Yeuell Y. Harris and Ivan N. Seibert, The State EducationAgency, State Educational Records and Reports Series: Hand-book VII. U.S. Department of Health, Education and Welfare,Superintendent of Documents, U.S. Gover nt PrintingOffice, Washington, D.C., 1971. 61.75.

A simple illustration is to determine the costeffectiveness ratios resulting from an experiment,over a period of time, dealing with five separateresource nixes of the instructional process forfive groups of pupils. Cost effectiveness is de-termined by dividing the average increase testscores, by the cost per pupil and by the numberof weeks. Thus,

Average increase in test scoresCost effectiveness = Total cost per pupil

Total weeks

CE = S WhereC

T

CE = Cost Effectiveness

S = Average increase in Test Scores

C = Total Cost (salaries, supplies,space per pupil, etc.)

T = Time in Weeks

Illustrating the example further, suppose at the.end of the experiment

Mix

1 p-oduces2

45

Average Cost CE

Increase $/pupils /weeks Ratio

80 at 25 for a 3.2080 40 2.0090 42 2.1480 75 1.0790 30 3.00

From the above analysis mixes 1 and 5 haveprecedence over 2, 3, and 4. In other words,mixes and processes 1 and 5 are better than theothers, assuming all other variables were con-stant.

This example is used for illustrative purposes only.Educational phenomena are not easily controlled forcomparative purposes. The educational manager mustdetermine not only the mix but the amount ofresources to allocate to various programs, within aparticular school and also to the various schools. Othermajor decisions must be made involving choices withinprograms as well as between programs. Examples ofsome choices are: to employ an additional counselor

70

versus employing an additional band director orcurtailing luxuriant aspects of programs in favor ofproviding more resources for the essential ones. Someattempts are being made to set up performance criteria'models for these types of decisions and furtherresearch and exploration perhaps will produce usableformulae to help solve these problems.

In summary, there are measures and ratios whichhave been used readily in accounting heretofore, suchas current expenditures per pupil and square foot costof a building. Other measures and ratios are morecurrent, however, and may prove to be valuable.Current operating cost, the total cost of operating theLEA,' has great value if its standardization can beattained. Other conventions or ratios and techniquesare .emerging and have been mentioned for emphasis;accountability, accreditation, operations analysis, andcost effectiveness analyses. Accordingly, the practice ofallocating costs on the basis of value received ineducation is emergingand these measures will assistthat practice.

IMPLICATIONS OF FINANCIALACCOUNTING FOR PROGRAMACCOUNTING

The trend toward LEA management and operationby objectives has been a major consideration in thedevelopment of this handbook. Arrangements of thevarious accounting dimensions are designed to facilitatean extension of object-function accounting to programaccounting.

It is not the purpose of the manual to delineateprograms to be adopted by LEAs. When programs areidentified by a LEA, however, its system of financerecords should logically provide for program costaccounting.

Program

A broad definition of the term program as it is usedin the context of this manual is: .

A program is an endeavor of the LEA, missionoriented, described in terms of the activities andprocedures required to achieve its stated pur-poses or objectives.

The entire operation of a LEA is of course, aprogram._ As treated here, however, programs areentities of LEA endeavor. They are entities which are

planned, scheduled, have allocated resources, are operated, and evaluated to accomplish effects or results.

Program Selection

At the time of development of this handbook, noprevailing approach' to program selection could be

'discerned. In general, however, LEA programs could beseen in three broad classifications: instructional orlearning programs; supporting services programs; and

community services programs. These are not. suggestedas restrictive categories limiting approaches to programdelineation.

Instructional Programs

Instructional programs are those entities of a LEAendeavor clearly and closely associated with teachingand learning. The most compelling factors in theirselection are the needs of learners. If the purposes ofmanagement and operation are to be realized, needs oflearners must be determined as capably as circum-stances permit. ,

Instructional programs tend to be established anddescribed in terms of:

1. Goals or purposes2. Types of learners3. Instructional levels4.. Subject matter.

1. Instructional goals and purposes. Instructionalprograms can be described in part according to theeffects they are expected to produce. In broad classifications these may be: intellectual skills development,development of understanding of the environment,personal developinent, exploratory studies, preparationfor entering further education, and preparation for anoccupation.

These may be subdivided into more precise subcate-gories such as communication skills, computationskills, reasoning skills, culture, and life sciences.

Most instructional programs in LEAs have timedurations extending beyond ; single year. The develop-ment of pupils in reading competency for example, isan endeavor reaching over several years. In suchinstances, program planning, and -scheduling of pro-gram activities, logically should be for these longerperiods.

The program concept includes programs of shortduration also. While these may be of a project nature,lasting for comparatively brief periods of time, theyrequire planning, scheduling, resources, and account-ing.

2. Types of learners. The characteristics of pupils orstudents served by programs will affect their composi

.

tion. Examples are programs for regular pupils, giftedand talented pupils, mentally retarded, physicallyhandicapped, emotionally disturbed and culturallydisadvantaged pupils, or programs based on othercharacteristics of pupils. Programs may be furthersubdivided according to more specific pupil descrip-tions.

71

3. Instructional levels. Broad terms such as ele-mentary, middle/junior high school, and high schoolare des0tive of instructional levels. Under theseheadings, more explicit descriptors are prekindergarten,kindergarten, lower elementary, and upper elementary.In turn, these may be subdivided according to tradi-tional grade levels.

Many instructional programs are established innongraded operations, placing emphasis on teachingand learning in accordance with pupil needs, capabili-ties, and progress, irrespective of grade levels as

traditionally known. An indication of level of suchprograms is ior management and operationalpurposes, serving in lieu of grade levels.

4. Subject Matter. Most instructional programs arecharacterized in part by the subject matter taught andlearned. The program elements may be identified in.terms of broad subject-matter areas such as mathe-matics, or natural sciences, and may be subdividedaccording to more specific subject areas or subjects.

There may be other bases for ultimate instructionalprogram selection beyond those submitted here. Identi-fication of pupil needs, however, is basic to anyapproach. In practice, moreover, all of the bases fordelineation of instructional programs are likely to beused. Subject matter, alone, for example, does not-describe an instructional program,. nor does the type oflearner, alone. When, however, all the bases aretaken together, all according to learner needs, theinstructional program description takes on definitemeaning.

In a LEA operation many instructional programscan be further delineated in terms of their respective

administrative units, the specific authorities for theiroperations, the sources of their funding, and theaccounting mechanism through' which their funds areexpended.

Supporting Services Programs

Those services which help make instruction andlearning possible, but which are not directly associatedwith the teaching-learning circumstances, are referredto as supporting services. While their ultimate purposesare the:same._ as the instructional programs theysupport, they are identifiable as having their owndistinct purposes. Their delineation as programs is

important in management, planning, scheduling, andbudgeting.

Pupil transportation services offer a prime exampleof supporting services which may be regarded as aprogram. It is a LEA endeavor, with its own distinctpurposes, and requires planning, scheduling, budgeting,accounting, and evaluation.

Suppoiting services programs which may be identi-fied depends on the extent of such services offered bythe'LEA, and the requirements of management.

Community Services Programs .

LEAs may provide services which have the primaryfunction of serving the community, and which-are notclassified as instructional or as supporting services buthave purposes, and requiring planning, scheduling, andbudgeting. The custody and care of children may beclearly delineated as a community program.

Program Structure

In classifying LEA programs as instructional, sup-OOrting services, and community services, a design ofstructure is.discernible. Instruction, alone, is a broadprogram. It can be subdivided into subprograms.

One approach is that of subdividing instruction intoregular programs, special programs, and programs' ofadult education. Regular programs, in turn, can besubdivided into more specific programs such as basiceducationelementary, preparation for postsecondarycareer, preparation for postsecondary nonbaccalaureateprograms, and preparation for postsecondary bac-calaureate programs. In turn these programs may besubdivided according to subject matter taught, possiblyeven to spdcific subjects.

72

The program structure is that set of categorieswhich expresses in varying levels of detail the purposesof programs and shdws how they and their purposesrelate to each other and to the goals of the LEA. Itprovides a basis for more effective planning, schedul-ing, choices among alteratives, and communicationthan can be expected of traditional categories of LEAaccounting. Program structure is primarily nonfinancialin nature.

Budgeting and Accounting by Program

An extension of object-function accounting toencompass accounting by program is inkeeping wit'; alogical way of looking at how LEA monies are spent. Itassumes that the same funds budgeted by traditionalfunction categories may be shown in terms of theprograms they are expected to finance. in a programbudget, estimated costs are related to program pur-poses..

White this logic of program budgeting and account-ing is sOund, its operation' in practical circumstancesneeds to be considered from several points of view.

There is the fact that the availability of funds hasdirect bearing on the programs a LEA may delineateand establish. When there is not enough money to meetall needs, program priorities must be determined. Here,considerations of a financial nature cannot be avoided inprogram delineation and adoption. Not only must theworthiness of prograK--puFposes be sufficiently under-stood, but, .also, there must be funds to pay for theirachievement. Estimates of costs of program operationbecome essential.

A structure of well planned programs, however, Mayreflect programs at their most explicit levels in .suchnumbers that separate cost accumulation for each ofthem could be a very large undertakifig. Such effortmay not be justifiable in terms of benefits to manage-ment and operation.

At some workable levels in the program structure,program cost accumulation centers may be establishedin numbers that can be accommodated, and which willprovide, useful program cost information for management and accountability purposes.

With program cost accumulation centers, costs ofprograms at broader levels can be arrived at throughadding the costs of their subprograms. Below the levelsin the program structure where program cost accumula-tion centers are established,' the costs of subprogramsmay be usefully estimated on numbers of logical bases.

Accumulating costs by program requires effort andresources which should be taken into considerationwhen program operations are planned. The number ofprogram cost accumulation centers to be maintainedby a LEA should be kept at a minimum consonantwith the needs of management.

Direct costs of programs can be allocated to therespective cost accumulation centers, usually, at thetime of recording expenditure transactions. In a pro-gram structure which includes instructional, supportingservices, and community services programs, the total ofdirect costs of each program is likely to constitute acomparatively high percentage of all of the moniesexpended during any accounting period. Knowledge ofdirect costs of each program, and of all programs canserve management in many ways.

There are circumstances in which both direct andindirect costs, discussed in chapter 6, of a programneed to be accumulated. This is often necessary" inconnection with grant-supported programs. An alloca-tion of indirect costs to an instructional program, forexample, has a basic logic. The total of all of the directcosts of such a program does not represent the totalcost of its operation. A share of the cost of virtually allsupporting services programs may be attributed to eachinstructional program.

A basis for allocating indirect costs to any programis tsually an &location plan by means of which sharesof costs of programs which support it may bereasonably determined and included in the cost ac-cumulation center for that specific program. Prorationsand attributions of supporting services costs to aninstructional program are based on familiar procedurestreated in chapter 6.

Program Categories

To offer some of the concepts of possible programcategories, three examples are quoted from ProgramBudgeting for School District Planning (1972).6 Thisbook is a product of a significant research study ofprogram budgeting as a means to more effectiveallocation of educational resources at the LEA level.

'sue A. Haggart, Editor. Program Budgeting for SchoolDistrict Planning, A Rand Corporation Research Study, Educa-tional Technology Publications, Englewood Cliffs, N.J. 07632,1972. $9.95.

73

Example (1)

CATEGORIZATION OF ACTIVITIES INTO PRO-GRAMS ACCORDING TO THEIR RELATIONSHIPTO EDUCATIONAL OBJECTIVES

Instructional Programs Aimed at Providing a BasicEducation to all Students

1. Learning fundamental intellectual skills

1.1 Language and communication skills1.2 Quantitative and reasoning skills1.3 Study skills

2. Learning about the world2.1 Learning about the U.S. and other socie-

ties

2.2 Learning about the physical world andliving things

2.3 Learning about literature and the arts2.4 Learning knowledge and skills for every-

day. application

3. Development of the individual physically,socially, and emotionally

3.1 Physical development3.2 Development of means of self-expression3.3 Development of interpersonal relation-

-ships

Instructional Programs Aimed at Preparing Stu-deltas for Specific Futures

4. Learning knowledge and skills in preparationfor future employment or occupational training

(classified by occupation)

5. Learning academic subjects to prepare forhigher education

(classified by academic field)

Direct Support of Instructional Programs

6. Assessment, guidance, and counseling7. Program development and evaluation8. Instructional resource and media services

Ancillary and Support Programs

9. Auxiliary services -to- students9.1 Health services

9.2 Transportation9.3 Food services

10. Community service programs11. Operation and maintenance of physical plant

and equipment12. Provision of physical plant and equipment13. Administration and general support

As the heading indicates, these are categorizations ofactivities into programs according to educational objec-tives. There are distinct parallels between the categori-zations as shown, and the items in the functiondimension presented in this handbook when they areapplied in conjunction with subject matter areas.

As far as the instructional programs are concerned,in this categorization, there Is no reference to instruc-tional levels, or to types of learners. Arrangements ofinstructional situations with appropriate subject mattercontent selected according to practical instructionallevels and types of learners would complete the programpicture from this base of categorization of-activities.

In the following, programs are categorized by typesof pupils or students.

Example (2)

A. POSSIBLE CATEGORIZATION OF PROGRAMSBY TYPE OF STUDENT

1. Regular Program (may be differentiated byability levels)

2. Programs Differentiated by Environmental orCultural Background of Students

a. Culturally disadvantagedb. Non-English speaking

3. Programs for Students With Intellectual,Physical, or Emotional Exceptionalities

a. Educable mentally retardedb. Severe mentally retardedc. Mentally giftedd. Physically handicappede. Emotionally disturbedf. Other learning disorders or educational

handicaps

4. Programs Differentiated According to StudentCareer Options and Capacities

a. Programs for training in different occupa-tions

b. Programs to prepare for different areas ofhigher education

74

c. General programs

5. Programs for Adults and Others Not in theNormal School Population

6. Programs Not Categorized by Type of Stu-dent

In this categorization, direct parallels with thefunction classification, Instruction. as presented in thishandbook, can be noted. When this categorization ofinstructional programs according to types of pupils orstudents is merged with the categorization of activitiesinto instructional programs according to educationalobjectives, a representation of instructional programscan be seen to take on more of a quality ofcompleteness.

A third possible categorization of programs isexhibited below, this time by level of instruction.

Example (3)

A POSSIBLE CATEGORIZATION OF PROGRAMSBY LEVEL OF INSTRUCTION

1. Preschool Programs2. Kindergarten3. Elementary EducationLower Grades

Grade 1

Grade 2Grade 3

4. Elementary EducationUpper Grades

Grade 4Grade 5Grade 6

5. Junior High School Education

Grade 7Grade 8Grade 9

6. High School Education

Grade 10Grade 11

Grade 12

7. Junior College Education

Grade 13Grade 14

0. Programs Not Categorized by Level of In-struction

In this presentation, a categorization of programs bylevel of instruction is set forth, simply and directly.When this categorization is combined with that ofinstructional programs by types of pupils or students,and with the one of programs by educational objec-tives, there is a sound and logical baiis for programdelineation and program structure in terms of thecircumstances in which the programs exist and operate.

The three views of program categorization presentedare of help as LEA programs and program structuresare developed.

The product of the Research Corporation of theAssociation of School Business Officials of the UnitedStates and Canada, Educational Resources ManagementSystem, June 30, 1971 (2424 West Lawrence Ave.,Chicago, Ill. 60625; price $7.95 per copy, plus 50 centshandling charge),' represents another majoreffort to conceptualize the program approach. It is apublication- worth study on the part of people con-sidering education program planning, budgeting, andaccounting. The book contains a program structureillustrating a concept of how services and subjectmatter, taken as program elements, are parts ofsubprograms, which, in turn are parts of major pro-grams.

The major programi identified in Educational Re-sour= Management Systems are:

Intellectual-Skills DevelopmentUnderstanding the EnvironmentPersonal Development tExploratory StudiesPreparatory/Postsecondary EducationPreparatory/Postsecondary EmploymentManagement

Educational Media ServicesFacilities Services

Pupil-ServicesCommunity Seriiices

The structure is extensive and is not presented inits entirety in this handbook. The following shows howthe one major program, Intellectual Skills Devel-opment, is divided into 'subprograms, and, eventuallyto the program element.

'Charles W. Foster, ed., Educational Resources Manage;ment System, Research Corporation of the Association ofSchool Business Officials, Chicago, Ill. 60625, 1971..8.45

75

This exhibit is shown to illustrate program struc-ture. This is complementary to the examples cfprogram categorization as shown earlier in which levelsof instruction, types of learners, and purposes ofprograms are taken into account more specifically.

Program Subprogram Program Element

Skills De.velopment

CommunicationSkills

ComputationSkills

ListeningOralReading

WritingEnglish

Additional LanguagesSpellingHandwritingEtc.

/Number SkillsMathematicsProblem SolvingEtc.

Deductive1 Reasoning Inductive

Skills Problem SolvingEtc. '.

In this handbook, still another illustration of program structure is submitted. It is shown, not to suggesta sharp delineation of programs, but to exhibit thenature of program "pyradmiding" by "levels." (The"levels," as treated here, are not to be confused withinstructional levels.)

The structure begins at level 1 with the LEA as aprogram. At level 2, there are four major subdivisions:Instruction, Supporting Services, Community Services,and Nonprogramed Services. (The latter, Nonpro-gramed Services, is not a program in a strict sense, butis included for purposes of accounting for expendituressuch as outgoing transfers which do not relate toprograms of the LEAs.)

Instruction is then again subdivided into instruc-tional programs at lever 3. These subprograms areRegular Programs, Specini Programs, and Adult/Con-tinuing Education Programs.

At level 4, the third-level breakout, Regular Pro-grams, may again be subdivided into basic educationaccording to "instructional levels" such as Elementaryor Secondaiy. and to more explicit levels if necessary;Preparatory, Postsecondary Employment and Prepara-tory, Postsecondary Education.

Leve

lA

Typ

e of

Pro

gram

Str

uctu

re

Similarly, at level 4, the broad program. SpecialEducation, may be subdivided into more strictlydefined programs such as for gifted and talented.handicapped, and culturally different.

In the wine manner, at level 4, the broad program.Adult/Continumg Education, may be subdivided intomore specifically delineated endeavors such as basicadult, advanced adult. occupational, special interest,anti life emichment programs.

At level 5, each of the program delineations can bebroken out into more explicit program elementsdescriptive of subject matter areas, and, if desired, tolevel 6, in specific subprograms described according tosubjects or courses.

(At some points in this kind of structure, costaccumulation centers can be established.)

In the_ same manner that the second-level, majorprogram area, Instruction, may be subdivided tosuccessively more sharply delineated programs, Sup-porting Services may be subdivided to more preciselyidentified programs.

Similarly, Community Services may be subdividedinto subprograms as necessary.

In this schematic, for instructional programs, theemphaSis is on structure. At the same' time, however,types of learners, instructional levels, and subjectmatter are taken into account. The structure does notallude to instructional program purposes, nor is itoffered as exemplary as far as program delineation isconcerned. It is presented as an illustration of howprograms may be viewed in a structure from broadprogram areas down to more definitive programsthrough a series of levels to a point where endeavorscan be seen in relation to LEA goals and purposes.

IMPLICATIONS OF FINANCIALACCOUNTING FOR INFORMATIONSYSTEMS

The Educational Records and Reports series of theOffice of Education, the handbook series, providesstandard terminology for the various statistical datafields of education, such as finance, pupil, staff,curriculum, property,-and community. This handbook,in addition to providing a standard chatt of accountsfor finance, provides an interface with data elements inthe other fields, by displaying the various field classifi-cations (dimensions) in such manner as to indicate howthey relate to a particular activity or program. In doing

77

this. the program activity can be related to cost forevaluative purposes.

These dimensions (function, object, fiscal year,

fund, program, source of funds, operational unit. etc.)and their subclassifications are listed separately and arenot tied together in any systematic manner; i.e.,

systematized. They can be so arranged. however, intoinformation systemsiThis will be expanded upon laterin this section,

In an educational setting, an information system canbe defined as a network of communication channels(voice, digital, etc.) which acquires, processes. stores,retrieves, and redistributes data used in managing theeducational .process and in supporting the individualand collective decisionmaking process. In HandbookVII!' a system is defined as "an orderly arrangement ofdata and procedures which will produce any desiredinterrelationship or summation which may be pertinentto recording or decisionmaking."

The techniques for operating a system are the sameregardless of whether it is manual or electronic. Thedata derived from these dimensions can be arranged inan orderly manner either manually or electronically asappropriate for each user. They can be communicatedvocally, written, or electronically.

As stated earlier, the dimensions are presented asstandards but are not organized into a system. Orderingthe dimensions into a system means merging thosewhich are more closely related into a single code ornomenclature. For example, function, program, in-structional organization, and operational unit can -be--merged into one single entry or file. Those dimensionsmight be coded as follows:

Function, 1100 Regular ProgramsProgram, 05 English Language Arts

.-instruction Organization, 10 ElementaryOperational Unit, 07 Johnson School

These can be combined into the code number11051007 for an English Language Arts program (aRegular Program) in Johnson Elementary School.Further, systematizing the course could be done -bydesignating the particular English Language Arts classinto 0504, Composition. The code then becomes1105041007, Composition in the Johnson ElementarySchool. Additional coding could be included to desig-nate the age or grade of pupils in the composition class.

8Yeuell Y. Harris and Ivan N. Seibert, op cit.

This much detail seldom will he needed for costpurposes but could very well be useful in activityevaluation.

Sf-.Ould programs be establisned around broad goals,say a program based upon Communication Skills, thesystem would list the number or the program in lieu ofthe one for English Language Arts. Suppose Communi.ration Skills were coded 1 and a subprogram was OralExpression Skills 13, the code and designation wouldbe 1131007, Oral Expression Skills in Johnson Elementary School.

In this illustration, pupils are identified as regularelementary, but in special education programs couldbe identified according to their dissimilaritymentallyretarded, culturally different, etc.,according to theprogram code. The facility or spaci: in wh,..h theprogram is located could be identified by code designation such as 089201, where 08 is the school site, 9 isthe building number, and 201 is the room number.

The teacher identified on the pay:oll record bysocial security number and is linked to the programand space by accessing the schecible file. At thebeginning of the year a record is made on each classestablishing a basic program file or schedule file forreferencing. A class card is filed showing number andtype of pupils, pro tram name and code, teethe. nameand social security number, assignment and corre-sponding code, instructional organization and schoolwith code, individual building number and room.number, class period of the day, and term of the year.The class card is filed under a subprogram, say Drama,which is a subprogram of Oral Expression Skills,whichis a subprogram of Communication Skills.

The total salary of the teacher of the Communica-tion Skills program would be provided by the payrollofficer and would be entered into the program file ascost at the end of the year. Supplies would berequisitioned by the teacher and ordered by thepurchasing officer. Following is an example of theprocedural applications for requisitioning a recordingmachine. The requisition form would show the follow-ing information: Program for which requested, Com-munication Skills; description, recording machine; ap-proximate price, $62.50 (to be verified when received);date, September 30, 1972; and school, Johnson (if it isto be used in Johnson school exclusively). Copies ofthe requisition would be stored in the financial file andin the program file under Communication Skills. Theteacher payroll file would be kept intact until the endof the year at which time the total salary of each

.78

teacher, prorated, would be allocated to the respectiveprograms. These are the procedures for systematizingdirect costs. The procedures for treating indirect costswill be explained in the chapter on Indirect Costs andProration.

Total salaries on the payroll tape would be trans-ferred to the program tape at the end of the year orperiodically as needed. The same procedures' wouldapply in an electronically controlled system,. the onlyexception being that indirect expenses would beprorated, in some cases, at the time of requisition.

In summary, the dimensions are treated separatelyexpressly for the purpose of showing their discretenessand at the same time their relationship to each other.This illustrates a portion of a program informationsystem; i.e., the financial aspect. The dimensions, otherthan finance, are included to suggest a completeprogram information system.

IMPLICATIONS OF FINANCIALACCOUNTING FOR ANALYSIS

In the foregoing section various types of statisticaldata elements were enumerated along with suggestedfiles for storage. In this section emphasis is placed onuses to be made of these data through analysis or anexamination of the relationships of these data ele-ments.

Institutional Use will vary but man; LEAs havestatistical staff to do special studies and to analyzelocal data for special purposes. Each of the techniquesdescribed above requires special mathematical compe-tencies. Operations analysis, one of the techniques, isused to indicate relationships of variables for optimumresults. It is valuable for determining alternatives inprogram planning for maximum effectiveness.

Analysis of LEA data is becoming increasinglyimportant for local managers, especially in the area ofmeeting requirements for accreditation as the conceptsof accountability and effectiveness become importantterms in accreditation standards. Another concern isthe desire to reduce costs of various operation, Ach as

food services and building utilization. A simulatedmodel for procedures and processes for serving food isan example of such analysis. Determining the maxi-mum utilization of existing space is an'example of ananalysis exercise.

In addition to the task of keeping records, somedegree of analysis is necessary when comparing costs ofoperating individual schools. In addition to instruc-

tional costs, which' include cost of supplies, there arecosts for housing pupils, costs for replacing equipment,

stiff longevity and tenure factors, and pupil/teacher/teacher aide/equipment ratios or mixes. Each of thesetypes of functions may be include] in the analysis.

Important in another. resp, t is. community support(resources) in relation to ability of the LEA: Theability to support education is Measured according tosome average or standard established by the State orsome other agency. COmpiling status reports is thefunction of analysts.

With finances sometimes in short supply, schoolmanagers, beards of education, and interested citizensare faced v.ith setting priorities in programs and

Decisions regarding facilities include theirutility and esthetic value; the number of square feetneeded for an edircational activity; and the size, utility,and landscape value of the site.

Determining the cost of a program-tofulfill oneobjective versus all Others; i.e., the priority of, objectives, in relation to the cost of the respective programsis an analytical problem. Decisions called for in theabove problematical situations require a high degree ofsophistication in analytical competencies.

Extrainstitutional Use of standard data for analytical. purposes is important. Analysts, public and

private, play an important part in charting the courseof education. Analysts at all levels of education searchout critical data, prepare ?eports, and furnish back-ground information for important decisions for appro-priating and budgeting for programs, and establishingpriorities among all public affairs in view of educa-tional needs. Analysts in educational supporting husinesses and industries rely heavily on these types of datain preparing decisionmaking reports. Summary and de-tail data reach economists, social scientists, lawyers, andphilosophers to be analyzed in many ways and for rru-merous purposes. In other words, the ability to retrieveprogrammatic data about education is of no little consequence in the future course of education in the Nation.

In substance, the handbook serves as an instrumentfor establishing data elements which may be stored formeeting the highly technical and analytical financialneeds of program information systems.

IMPLICATIONS OF FINANCIALACCOUN'TING FOR. REPORTING

Previous to this section, emphasis was on the valueof this handbook to manager's, planners, accountants,

79

and other support staff such as statisticians and analystsin identifyrng and defining portiont -f the program in-formation system for LEAs. That purpose of the hand-.. _..book is very important, but another aim of rqual importis its provision of a standard terminology for reportingeducational information to and for its various users.

For social phenomena to be evaluated, benChmarksmust be established. The language and terminologyused to set the marks arid to measure the course ofevents should be common to each assessing agency,whether it be local, State, or Federal. The commonlanguage or data used in these measurements must ofnecessity, come from a record which is retrieved andassembled in some type of report. Hence, educationalreports from whatever source and for whomever theyare prepared, should be made from comparable data,

If the LEA, its officials and teachers, are account-able to the community, information which exemplifiesthe school's activities. and their' effectiveness must becommunicated to the beneficiaries. For the school teamto be effective, internal communication must be main-tained. Communication among pupils, teachers, prin-cipals, and central administrative personnel must-be clearand Meaningful, regular and timely. One measure of theeffectiveness of reports to planners, budgeters, evalua-tors, and analysts in a LEA is to facilitate their abilityto communicate both internally and externally.

There are beneficiaries of LEA accountability out-side the community as well as within. States haveresponsibility for education, and need information onwhich to base judgments. They are charged by thelegislatures with this responsibility which includes theoperation of or supervision of the operation of itsschools. Therefore, the LEA's information on whichjudgments are made, must ''be reported to them incommon language.

The U.S. Congress has charged the Office ofEducation with the responsibility of keeping theNation informed as to the cohdition and progress ofeducation. This charge, along with responsibility ofsupervising some Federal programs in education, hascreated a need for some program information--.fromeach State. To evaluate the effectiveness of Federalprograms, it is beneficial and almost necessary for theprogram managers at the Federal level to have "'grass-roots" or LEA information. In these instances, samplestudies are made, calling on States- to provide thenecessary information as reported from the. LEA. It isimperative that this informatic-, be reported to theFederal level in standard terminology.

The implications for the use of this handbook forstandardized data elements to t>e used in makingdecisions are not in any way deemphasized whenpointing up its value for reporting information to thevarious publics to which' LEAs are accountable. As it is

30

important to build inforMation systems with a corn;mon language, it is equally important that communica-tion with the lay public and professional officials be inthe same terminology..

Chapter 6

INDIRECT COSTS AND PRORATION

The interest in prorating indirect costs or overhead to instructional programs has increased signifi-cantly in the past few years. The importance of thesecosts to education manarers has been brought aboutchiefly by the need to develop cost allocation plans onthe part of local officials in order to deterMine andrecover the full cost of Federal programs. Anotherimportant reason for the recent interest is the realiza-tion that budgeting for and evaluation of programs andelements of programs in a satisfactory manner is almostimpossible . without including overhead or indirectcosts. For example, direct costs alone, in some cases,fall short of the proper base, for program evaluation.One program could have high direct expense and lowsupport costs while another could have costs of anopposite nature. A program using computer assistedinstruction, for example, would have higher indirectcosts, proportionately, than one in which individualteachers were involved, especially beginning teachers.

In the publication, .A Guide for Local GovernmentAgencies, Establishing Cost Allocation Plans and Indi-rect Cost Proposals for Grants and Contracts with theFederal Government,' issued by the U.S. Departmentof Health, Education, and Welfare, a practical approachto computation of indirect costs is presented. Thisrecognizes the principle that, as far as possible, all costsof a program, both direct and indirect, need to beconsidered in some instances.

The guide is based on Circular No. A-87, issued in Mayof 1968, by the U.S. Bureau of the Budget to meet anexpressed need on the part of State and local govern-ments for a more uniform approach to the problems ofdetermining costs of federally aided programs.

The circular provides principles and standards fordetermining costs applicable to grants and contractswith State and local governments. It points out, also,that the U.S. Department of Health, Education, and

' U.S. Government Printing Office, 1970, Washington, D.C.,OASC-C.

81

Welfare has responsibility for the negotiation andapproval of cost allocation plans for distributing centralsupport service costs to grantee departments at the Statelevel, and the adult of such cost allocation plans.

State agencies receive Federal funds through a

Letter of Credit system and are asked to submit a costallocation plan for the entire State. LEAs receivingFederal grants may be asked to submit a plan at thebeginning of the year by the State as data input for itsplan. Should this be done, assistance. in establishing theplan may be available from the State agency.

Depending on the circumstances, certain specifiedcosts, under established rey,,lations are unallowable;that is, they cannot be taken into account in determin-ing indirect costs relative to Federal grants andcontracts.

The purpose of Circular A.87, and its application inthis context, according to established regulations, isone of assisting education agencies to recover, as far aspossible, costs incurred in operations relating to Fed-eral grants and contracts. Well maintained schoolfinance records enhance such applications. Basically,the cost rates established are ratios of allowableindirect services costs to costs of direct services.

It is not the purpose of this handbook to establishany criteria concerning the application of CircularA-87, or to supersede in any way the establishedregulations and procedures involved, in the develop-ment and approval of allocation plans concerningindirect costs incurred in the operation of federallysupported grants and contracts. The principle of suchallocations, however, can be applied in similar manner,for management purposes, to determine substantiallythe cost ratios of indirect cost to costs of instructionalprograms in a LEA, irrespective of the sources offunds,

Generally, in indirect cost computations concerningany instructional program, aside from those in whichCircular A-87 specifically applies, all costs would beallowable unless choices are exercised to exclude them.

1e

The bases on which to prorate costs, in some cases,become a problem.

Bases for Allocation. Proration or allocation can .occur when the transaction is made, periodically duringthe fiscal year, or at the end of the year. For example,the salary of a person serving half time in two separateprograms can be prorated at the time paid, while athousand reams of duplicating paper would need to becharged to an account, say, stores, and charged toprograms as distributed.

There are many methods used for prorating expend-itures. The most common of these have for a basiseither: (1) time; (2) average-daily membership or pupilsenrolled; (3) time space; (4) time consumption; (5)number of pupils; (6) mileage; 17) units consumed; (8)

employees; (9) number of transactions; or (101 dollars.Undoubtedly, there will be expenditures at Times to

which these methods will not apply, in such cases.,some method. adjusted to particular local conditions, ormodifications in the methods presented here, may benecessary.

. Following are suggested' bases for distributing jointcosts of certain centraltype services to LEA's units orprograms utilizing these services. Any method ofdistribution can be used which will produce anequitable allocation of cost. In selecting one methodover another, consideration should be given to the

ad di-tionalalf or t rercrtreq icracbjeve-a -tre a te r degree o faccuracy.

TYPE OF SERVICE

Accounting

Auditing

Budgeting

Data Processing

Disbursing services

Employee benefits administration

Insurance management service

Legal services

Mail and messenger service

Motor pool costs

Equipment repairs

. Space. use (operation, maintenance, and depreciation)

Utilities and fuel

Management services

82

BASES FOR ALLOCATION

Total dollar volume or number of transactions proc-essed

Direct audit hours

Direct identifiable hours of employees of centralbudget

Machine and labor hours

Number of checks or warrants issued

Number of employees contributing

Dollar value of insurance premiums

Direct labor hours

Number of documents or employees served

Miles driven/days used

Direct hburs

Square feet of space used (for instruction: sq. ft perpupil per hour)

Time Consumption

Direct hours

3 lbid., p. 21.

Payroll services

Personnel administration

Printing and reproduction

Procurement services

Local telephone service

Health services

Fidelity bonding program

Transportation

School administration

Movable equipment

Pupil services

I nstru.tional services

Number of employees

Number of employees

Direct hours, job basis, pages, etc.

Number of transactions

Nurribct-i-elephone instrument: -

Number of employees or pupils

Employees subject to bond or penalty amounts

Number of pupils enrolled

Number of employees supervised

Hours used

`Average daily membership

Learners served (average daily membership)

Allocation. The common thread running throughthe design of this handbook is the relationships ofsupport services to the operating programs (RegularPrograms, Special Programs, Adult/Continuing Pro-grams, and Community Services Programs). Supportservices programs exist only for the purpose of servingor assisting the instructional process in accomplishingmutually acceptable goals for learners. Therefore,expenditures for service programs are indirect costs ofthe instructional process. But service programs havedirect costs and indirect costs, and instructional andother operating programs, such as community servicesprograms, have both direct and indirect costs. Therelationships of the direct and indirect costs of theseprograms are illustrated in figure 2.

The combined sum of direct and indirect costs ofany instructional program provides a total which mayreflect substantially the cost of the program. For somepurposes, this can be useful information. Such a termas "full cost" of a program is not exact, for there arecosts of education which are extremely difficult toidentify. This does not, however, discredit a computedcost made in terms of the best and most reasonablemethods of calculation available.

In such computations,, ratios of the indirect costs ofinstructional programs to direct costs, while not

83

invariably exact, are revealed, and, serving as indi-cators, can be useful to management. Through experi-ence and comparisons, such indicators can'be classifiedwithin ranges. When they are outside these ranges,management has reason to explore the causes, thecalculations, or both.

Circular A87 prescribes procedures for determiningratios of indirect costs to direct costs for Federal grantsand contracts. These same procedures may he adaptedfor determining such ratios for other programs tosatisfy management purposes.

Assuming that each school is a major cost center ofthe LEA and instructional programs within the schoolare individual cost centers, one procedure for distribut-ing the instructional costs which cannot be identifiedwith individual programs (indirect costs) is presentedfor illustrative purposes only. In most instances salariesand purchased services can be prorated at the time oftransaction. Other goods and services may be chargedto a school and prorated later, unless they serve morethan one school. In this case they may be charged to adistrictwide program and prorated later. For example,a television set may be charged to a school and its costor depreciation allowance can be calculated in cost perhour and prorated to the programs which use it. Thecost of producing the television program viewed by

Figure 2Relationships of Indirect and Direct Costs of Support and Operating Programs

SUPPORT PROGRAMS

A

B

C

INDIRECTCOSTS

DIRECTCOSTS

learners in more than one school could be charged toeducational television and later distributed to pro-grams on the basis of the number of viewers. Similarlythe cost of preparing meals is calculated by includingall costs of food, preparation, serving, etc., and

OPERATING PROGRAMS

REGULAR

SPECIAL

ADULT/CONTINUING

COMMUNITY SERVICES

distributed 'on a per meal basis. These types ofdistributions require a certain amount of analysis.

To compute the "full" cost of the operatingprograms, the following procedures may be applicable:'After the indirect costs of each of the operating

Figure 3Relationships of Supporting Programs to Each Other and to Operating Programs

SUPPORT PROGRAMS

84

OPERATING PROGRAMS

REGULAR

SPECIAL

ADULT/CONTINUING

COMMUNITY SERVICES

programs '.ave been determined and distributed to eachother the next step is to distribute the accumulatedcosts of the support programs to each other and to theoperating programs. The relationships of these types ofcosts are illustrated in figure 3.

As indicated in figure 3, support programs serveeach other as well as serving operating programs(Regular, 'Special, Adult/Continuing, and Community

.Services} For vsa.rnple, Opelation and Maintenance, asupport program, should be distribut.hi to all programs,support and operating. The process of computing the

-full costs of support programs and distributing them tooperating programs is accomplished in two steps. (1)The first step consists of prorating all the direct costsof each support program to each of the other supportprograms and to the operating programs on theappropriate !:asis for each. This means taking all thedirect costs of Operation and Maintenance, for example, and allocating them to other support programsand to operating programs on a per-square-foottinie-used basis.. (2) The second step consists of allocatingthe accumulated costs of support programs to theoperating programs. The prorated costs of the supportprograms are accumulated during the first step. Theprocedures described in these, two ste~lustratedin the cost-allocation model in figure 4. (This model isadapted from the one illustrated on page 81 in

Approaches to Program Accounting for PublicSchrott 3 )

To illustrate how the model is used, some selectivecost figures are assigned to support and operatingprograms and inserted into the costallocation model asshown in table 6 and table 7. Step one, allocatingdirect costs of support programs, is presented in table6. Distributing the prorated costs of support programs,step 2, is illustrated in table 7.

All the support programs are grouped, for purposesof this illustration, into nine separate programs. The firstsupport program consists of those types of serviceswhich are performed to assist learners and the instructional staff, called Pupil and Staff Support program.These services are classified under the expenditureclassifications C 2100 and C 2200. Administration, C2300, is comprised of the activities of the board ofeducation and the superintendent's office. Service

Areas of school administration; planning, research,development, and evaluation; operation and maintenance; transportation; and staff services are treated asindividual entities. Business services r:omprised of (C

'Erick L. Lindman, Editor. Approaches To Program Ar-counting for Public Schools, Center for the Study of Evaluation of Instructional Programs, University of California, LosAngeles, November 1968.

Figure 4Cost-Allocation Model

SupportPrograms

DirectCost

Support Programs Operating ProgramsAllocation

III , IV A

I.,

XXX (XXX) "xxx XXX xxx XXX XXX XXX XXX XXXII XXX XXX (XXX} XXX XXX XXX xxx XXX XXX XXX._,

III XXX XXX XXX (XXX) XXX XXX xx),( XXX XXX XXXIV XXX XXX XXX XXX (XXXI XXX XXX, XXX XXX XXXV XXX XXX XXX XXX XXX (XXX) xxx XXX XXX XXX

Total46tation

VIV

in

Indirect Cost (Total) XXXDirect Cost (Total) XXXTotal CostOperating Programs XXX

XXX XXX.- XXX

85

XXX XXX

XXX,' XXX XXXXXX XXX XXXXXX' XXX' XXXXXX XXX XXXXXX XXX XXX

XXXXXXXXXXXXXXX

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1,84

012

241

2520) Fiscial Services, (C 2530) Facilities Acquisitionand Construction Services, (C 2560) Food Services,and (C 2570) Internal Services. Service Areas (C 2630)Information Services, (C 2650) Statistical Services, and(C 2660) Data Processing Services are combined intoone group to conserve space.

As illustrated in table 6, the direct costs of eachsupport program are allocated to support programs andoperating programs, according to the ba.sii suggestedabove. For example, planning, research, development,and evaluation is allocated on the basis of direct hoursdevoted to each program. Transportation is allocatedon an average daily membership basis and schooladministration proportionately according to the num-ber of emplc; lees supervised.

As illustrated in the example in table 6, there is afine and a column for each support program and forthe group of programs under Regular, Special, Adult/Continuing, and Community Services. No costs aredistributed to pupil-staff support because these activi-ties are performed to benefit the operating programsonly. The same reason holds for school administrationand transportation. The of Plipil-Staff Sup.port received S60,000 in services, however, from theother support programs. Transportation receivedS54,000 in services.

The second step illustrated in table 7, shows how..... .

the S60,000 of received services for the Pupil-StaffSupport program is distributed to other operatingprograms-540,000 for Regular Programs, S16,000 forSpecii,1 Programs, S3,000 for Adult/Continuing Pro-grams, and S1,000 for Community Services Programs.Adding suppOrt services programs expenditures ofS9,500,000 to the direct costs of the operatingPrograms gives a total cost of S95,500,000 for theopera-ring programs. The full 'costs of the operatingprograms are: RegularS77,328,000, SpecialS11,976,000, Adult/ContinuingS5,145,000, andCommunity Services S1,051.

The combinations of support programs in the aboveexample are in no way to be considered recommenda-tions. They were combined for conciseness. In reality,transportation for special education, Food Services,and Facilities Acquisition and Construction Services,perhaps, should be treated seprately because of theirnature and discreteness.

In the above example, operating programs weredivided into four major areas, Regular, Special, Adult/Continuing, and Communit Services. Allocations ingreater detail would have made the explanations morecomplicated. Detailed data are presented inindicate how costs may be allocated toprograms by schools.

table 8 toindividual

TABLE 7Example Distribution of Total Prorated Costs of Support Services Programs to Operating Pro-grams, Total Cost of Operating Programs, and Grand Total

[Thousands)

Support ServicesProg ams Total

ProratedCost

RegularPrograms

Specialtlrograms

Adult/ContinuingEducation Programs

CommunityServices

Pupil-Staff Support $ 60 $ 40 $ 16 $ 3 $ 1

Administration 50 33 14 2 1

School Administration 77 50 22 5 00Planning, Research,

Dev. & Evaluation 45 35 10 00 00General Services 100 70 25 3 2Operation and Maintenance 115 aO 15 5 5Transportation 54 40 13 1 00Staff Services 28 20 6 1 1

Processing Services Data (etc.) 68 50 15 3 00Indirect Costs (from table 6) 597 6,900 1,840 122 41

Total Indirect Cost $ 9,500 7,328 1,976 145 51

Direct Cost Operating Programs 86,000 70,000 10,000 5,001) 1,000

Total Cost of Operating Programs 95,500 77,328 11,976 5,145 1,051

87

TABLE 8Example Distribution of Full Cost of Operating Programs by Instructional Organ,zation, School,Program, and Per.Pupil

;Thousands

Type of Program Cost Per PupO

Total 595.500 NA*Regular 77.32s St,t 10

Elementary $39.500 952School A 8,146 qt 7

Intellectual Skills S2,740 890Communication Skills 5 920 884Computation Skills 930 892Decisionmaking Skillls 890 890

Understanding the Environment 2.580 964ETC

Personal Development 2,916 960

ETCSchool B 8,413 924

ETCMiddle/Junior High 27,530 975

ETCHigh 31,830 1,127

School A 11,670

Preparatory for Education 5,240 1,114

Preparatory for Employment 6,430 1,147

ETCSpecial 11,976 983

Gifted & Talented 1,904 803ETC

Adult/Continuing Education i,rograms 5.145 732

Adult Basic Education 1,987 728

ETCCommunity Services 1;051 NA

Not applicable for cost shown

Full costs are displayed in a hierarchal arrangementfor each bregkout: Regular Programs, ElementarySchools; Intellectual Skills Development; Communica-tions Skills Development; Computation Skills Develop-ment; and Decisionmaking Skills Development. In a

similar manner, costs of programs in "/fiddle /JuniorHigh and High Schools and for Spe:ial Programs,Adult/Continuing Programs, and Community ServicesPrograms can be displayed.

transactions will need to be made. Broad basedprograms may be used for cost centers, such as on thelevel of. Intellectual Skills Development or on the

88

school level. But regardless of the level on which costcenters are established, the principle of allocation andanalysis is the same; only the number of transactionsvaries.

Building Use Cost. This term means the cost ofusing a building for a year, or the yearly depreciationallowance, as defined above. Depreciation allowance oryearly recovery of acquisition cost, however, are onlypart of the cost of providing shelter for pupils while inschool. This is known as housing costs.

tf memorandum accounting for building deprecia-tion is maintained, the term housing cost may haverelevance. Housing cost means the cost of providingquarters to shelter learners and employees during theprocess of instruction. Then, building use cost becomeshousing cost when the expenditures of Operation andMaintenance are included. Therefore, housing costs are

the sum of the expenditures for ON anon, Maintenan6. and Depreciation.

ShOuld school of ficials desire to include housingcosts the full costs of operating programs. they mustbe determined .:nd allocated to these programs_ This isnot a great problem when an entire building is assignedto a particular" program But when .two or moreprograms and the principal's office are included in thesame building prorations are'made. Circulation space,toilet space, library space, and storage spis::e are sharedin most buildings, ally by each program; while theprincipal's staff 't es, in the main, only the spaceassigned to them. Therefore, the total building space,exclusive of that assigned to the principal's office,. isprorated among Programs. A formula to be used incomputing the cost per program ina'buildincsisr

POMD X OS'

@MD/BSCPI = Where

BS OS

CPI

Pt

OMD

Prorated cost of program no. 1

Nuryer of classroom square feet assignedto pre gram no. 1

= Combined cost of operation, maintenance,and depreciation allowance

OS = Number of square feet in the principal' ;office

BS = Number of square feet in the building.

As an example, suppose a building, containing30,800 square feet, had a combined cost of OMD of60 cents per square foot, or S18,480. The principal'soffice contains 800 square feet and program no. 1

utilizes 8 classrooms with a total of. 6,000 square feet.Hoy% much of the $18,480 should be charged toprogram no. 1?

P1OMD X OS)

BSCPI

BS OS

18,480 X 8006,000 (18,480 30,800 1

30,800 800

89

6000 (13.000)30,000

$3,600 amount t bt! charged

prpQram no. 1.

In summary, this chapter on inditect costs rs rincluded for the purpose of indicating thedegree to which LEA officials should prorate costs. Itis included as a guide to those officials who Might need

. information:in their own recordkotping ocedures. It is advantageous,. however, to prorate indirectcosts to substantiate claims for reimbursement forFederal programs and to be able to apply costel fectiveness c-;teria to program evaluation.

The primary purpose of proration is to "presentaccurate information concerning the services and the.benefits II at are being obtained for the money beingspent."4 After the indirect costs of salaries and

materials for the Instructional and Community-Servicesprograms have been pre ated to the 'proper' program,prorating the support services can be done in two steps.Step 1 includes prorating the direct Costs of supportservices to each of the support programs and to theoperating programs, Instructional: and CommunityServices programs. Following this, step 2, the proratedcosts of the support programs (sum of the 'proratedcosts of support programs in step 1) are prorated tothe operating programs,

The accurateness of the results of proration in-creases in proportion to the amount of detail to beprorated increases; i.e., the detail of bases' of allocationand the number 6f program cost centers. As abeginning, however, even a few program centers' withbroad bases for allocation will provide valuable infor-mation for officials responsible for managing tclucational enterprises,

'Paul L. Reason and Alpheus L. White, Financial Account-ing for Local and State School Systems, Standard Receipts andExpenditi.re Accounts, State Educational Record and ReportSeries: Handbook 11. U.S. Department of He. Ith, Education,and Welfare, U.S. Government Printing Office, Washington,D.C., 1966.

APPLN5IXES

Appendix A. SUPPLIES AND EQUIPMENT

Appendix B. GLOSSARY

Appendix C. ACKNOWLEDGMENTS

Appendix D TRANSMITTAL MEMORANDUM

Appendix E. EXAMPLES OF FINANCIAL STATEMENTS AND REPORTS

Appendix A

SUPPLIES AND EQUIPMENT

In this section some guides are provided for distin-guishing between supplies and equipment. These guidesconsist of criteria for classifying an item as eithersupply (an ever-present problem in financial account-ing) or equipment, and a list of supplies, and a list ofequipment. Equipment built-in or fixed to the buildingor grounds are considered a part of the building or landimprovement, and are to be charged to those respectiveaccounts.

When there is doubt as to the nature of an item(supply or equipment) search on an alphabetical basisthe list in which it probably would be found. If it isnot in that list, search the other. If it is not in eitherlist, the question should be resolved by finding asimilar item and applying the necessary criteria.

CRITERIA FOR SUPPLY ITEMS

A supply item is any article or material which meetsany one or more of the following conditions:

1. It is consumed in use.2. It loses its original shape or appearance with use.3. It is expendable, that is, if the article is damaged

or some of its parts are lost or worn out, it isusually more feasible to replace it with an

entirely new unit rather than repair it (which isnot true of equipment).

4. It is an inexpensive item, having characteristicsof equipment, whose small unit cost makes itinadvisable to capitalize the item,

5. It loses its identity through incorporation into adifferent or more complex unit o substance.

LIST OF SUPPLIES

The following list of supplies is not intended to becomplete. While the list is extensive, it is not practical,nor possible, to make it complete. In looking for asupply item with a descriptive word or modifier (glass

93

wool) in the nomenclature, search first under the firstletter of the first word and then under the first letterof the second word. The multiple-worded nomencla-tures are not cross-referenced in every instance.

A

AbrasivesAbsorbent CottonAccount BooksAccounting FormsAcetyleneAchievement TestsAcidsAdding Machine RibbonsAdding Machine TapesAddressing Machine PlatesAddressing Machine RibbonsAddressing Machine StencilsAdhesive TapeAdzesAir, CompressedAir Gauges, TireAlbumsAlcoholAmmoniaAmpulesAnatomical ChartsAnestheticsAniline DyesAnimal BoxesAntifreezeAntiseptic GauzeAntisepticsAntitoxinsApplicators, ThroatApronsArch SupportsArchery SetsArchitect's Scales, 1 in. meas.

LIST OF SUPPLIES (Continued)

ArrowsArl CanvasesArt CrayonsArt ErasersArt PaintsArt PaperAsbestosAshcans

AsphaltAsphalt Roofing and SidingAstringentsAthletic UniformsAtlases

AtomizersAuger BitsAugersAutomotive Regulating ValvesAutomobile AccessoriesAtitomobile Controls for

Handicapped PersonsAutomobile DefrostersAutomobile Fuel TanksAutomobile HeatersAutomobile SignalsAutomobile Tires and TubesAwlsAxes

B

Babbit MetalBadges

Badminton RacketsBags, LaundryBaking PansBaking PowderBaking SodaBalances, Small SpringBall BearingsBall Peen HammersBalloonsBallot BoxesBalls

Band Saw BladesBandagesBands, RubberBanners

Barber Shop Tools, Hand

94

BarrelsBaseballs

Bases, BaseballBases, Electric LampBasins, PortableBasketball ShoesBasketballsBaskets, ContainerBath CurtainsBathmatsBathrobesBathtub FittingsBatonsBats

Batteries, ElectricBattery ElementsBatting, CottonBeads, Arts and CraftsBeakers

Beanbags

Bearings, BallBearings, RollerBeaters, Egg, HandBedpansBedspreadsBedspringsBeddingBeef ExtractBeeswaxBellows, HandBells, Small Hand or DeskBelt DressingsBench StopsBenzene

Bevels

BillheadsBinders, LooseleafBinding ClothBinding CordBiological ChartsBiology SpecimensBit BracesBit ToolsBitsBlackboard PointersBlackboards, Small SlateBladdersBlades, SawBlanketsBlanks, Printed

LIST OF SUPPLIES (Continued) Bows, ArcheryBox Files, Cardboard

Bleaches Boxes, ElectricalBlocks, Hat Boxing GlovesBlocks, Kindergarten Brake LiningBlocks, Surface Hardened Brakes, Complete Replacement UnitsBlocks, Terminal Brass PolishesBlotter Holders Brass RodsBlotter Pads Brass SheetBlotters BreadboardsBlow,3ipes Bread KnivesBlueprint Paper Bread PansBluing Breakers, Circuit`:yards, Bread BricksBoards, Carrom BridlesBoards, Checker BriefcasesBoards, Drawing Bronze, CastingBoards, Emery Bronzing LiquidBoards, Ironing Brooms, HandBoards, Lumber BrushesBoards, Mounting BucksawsBoards, Sandwich BucketsBoards, Wash Bug SpraysBobbins Bulbs, Electric LightBodkins Bulbs, FlowerBoiler Cleaners BuntingBoiler Compounds BurettesBoiler Firing Tools BurlapBolt Cutters Burners, BunsenBolts Bus AccessoriesBond Paper Bus Repair PartsBook Cards Bus TicketsBook Ends Bus Tires and TubesBook Jackets Bus TokensBookplates BushingsBook Pockets Butter SpreadersBook Records ButtonsBookcloth Buttons, PushBookcovers BuzzersBookkeeping FormsBooks, CashBooks, CompositionBooks, Looseleaf Note CableBooks, Record Cake KnivesBooks, Text CakepansBottle Syphons Cake SoapsBottles CalcimineBowling Alley Pins Calendar PadsBowls Calendar StandsBowls, Water Closet Calendars

95

LIST OF SUPPLIES (Continued)

CalicoCalipersCall BellsCan CoversCan OpenersCandlesCandlesticksCanes

Cans, AshCanvasCaps, MetalCarbideCarbon DioxideCarbon PaperCarbon RibbonsCarborundum StonesCarburetorsCardholdersCardboardsCardboard BoxesCards

Carpenters' SquaresCarpet BeatersCarrom BoardsCarrom CuesCarrom RingsCarving KnivesCases, BriefCases, Cardboard

Cash BoxesCasting BronzeCatalogue CardsCatchesCaulking CompoundsCaulking Irons, All SizesCausticsCellophaneCelluloidCement, ConstructionCement LiquidCertificatesChafing DishesChainsChains, TireChair PadsChalksChamoisChange Holders

96

CharcoalCharge SlipsChartsCheckbooksCheckerboardsCheckersChecks, BrassCheeseclothChemicalsChemistry GlasswareChemistry Rubber GoodsChinawareChisels, Not in SetsChoppers, Food, Hand-OperatedCircuit BreakersClampsClayClay Modeling ToolsCleaners, FlueCleaning CompoundsClippers, Hair, HandClipsClocks, DeskClothCloth NetsClothesbasketsClothesbrushesClothes HooksClotheslinesClothespinsCoalCoal bags

Coal HodsCoal ScreensCoal ScuttlesCoal ShovelsCoathangersCoat HooksCocoa MatsCoffee CansCoffeepotsCokeColandersColored PencilsColoring DyesCombsCompasses, BlackboardCompasses, DrawingCompasses, Magnetic, PocketCompounds, Chemical

LIST OF SUPPLIES (Continued)

Compounds, CleaningCompounds, GrindingCompounds, PatchingCompressed AirCondensers, ElectronicCondensers, Ignition DistributionCondimentsConduit BoxesConduits and FittingsConnectors, WireConstruction PaperContainersCooking UtensilsCoping Saw BladesCopperCoppers. SolderingCor yholdersr.r,rdCords, ElectricCores, ValveCorkCorkscrewsCornices, MetalCorrection Fluid, StencilCorrosives

Corrugated PaperCostumes, TheatricalCotter PinsCotton, AbsorbentCotton GauzeCounters, Revolution and StrokeCountersinksCouplingsCoverallsCovers

CrayonsCrockeryCrocksCross Section PaperCruciblesCrude OilCrushed RockCrystals, WatchCues, CarromCulverts, Sheet MetalCup AwardsCup GreaseCup Hooks

97

Cups

Curling IronsCurtain RodsCurtains, Shower and WindowCuticle PushersCutleryCutters, GlassCutters, PastryCutters, PlaneCylinder OilsCylinders, Dictating MachineCylinders, Hydrometer JarCylinders, Mailing

D

DampersDate StampsDatersDecorationsDental Abrasive PointsDental ChartsDental DrillsDental Instruments, SmallDeodorizersDesk BlottersDesk LampsDesk Letter BasketsDesk PadsDevelopers, PhotographicDeveloping TanksDextrinDextroseDiariesDictating Machine CylindersDictionaries, AbridgedDies, Not in SetsDiesel Engines, Integral Parts

of Larger UnitsDiploma CoversDiploma RibbonsDiploma SealsDiplomasDiscs, PhonographDish BrushesDishclothsDishpansDishes

DisinfectantsDisplay Mounts

LIST OF SUPPLIES (Continued)

Dissecting SetsDistilled WaterDistributor BoxesDistributorsDividersDoiliesDollsDoormatsDoorsDowelsDrafting InstrumentsDraglinesDrain CleanersDrain Pans

Drain plugsDrain PlungersDraintileDrainpipe FlushersDrapery ClothDrapes

Drawing BoardsDrawing CompassesDrawing InstrumentsDrawing PaperDrawing PensDressers, Emery WheelDressings, BeltDrier, InkDrier, PaintDrier, VarnishDriftpins, All SizesDrill BitsDrill PointsDrills, HandDrugsDrums, FiberDrums, MetalDry CellsDry MeasuresDrygoodsDumbbellsDuplicating Machine BrushesDuplicating Machine InkDuplicating Machine PaperDuplicating Machine PartsDuplicating Machine RollsDustclothsDusters

DustpansDyes

E

EarthenwareEdge Tools, Except Cuttir ) DiesEducational TestsEggbeaters, HandElasticElectric BatteriesElectric CordsElectric FusesElectric Lamp BasesElectric Light BulbsElectric SwitchesElectric WiresElectrical BoxesElectrodesElectromagnets, LaboratoryElectronic ComponentsElectronic TubesElements, BatteryEmbossing FluidEmbossing PansEmery BoardsEmery ClothEmery PowderEmery Wheel DressersEmery WheelsEnamel

Enameled WareEngineer's Scales, MeasureEngines, Integral Parts of

Larger UnitsEnvelopesEpsom SaltsEradicator, InkErasers, HandEssences

ExtractsEye ChartsEyelets

FabricsFace and Eye ShieldsFaces, ArcheryFasteners

98

LIST OF SUPPLIES (Continued)

Fasteners, ApparelFaucets, Combination or SingleFeldsparFeltFencing FoilsFerrulesFertilizersFiber RodFiber SheetsFiber TubesFiberboardFile BoxesFilecardsFile FoldersFiles, Wood and Metal WorkingFilingsFillers, BatteryFillers, InkFillers, PaintFillers, WoodFilm CementFilmsFilter PaperFilters, SmallFingers, RubberFire AxesFire Extinguisher RefillsFire HooksFire ShovelsFire TongsFittings, LubricationFirst Aid KitsFlags

FlashlightsFlasksFlavoringsFlaxseedFlexible Cord SetsFlexible Metal HoseFlexible Metal TubingFloats, HydrometerFloats, PlumbingFloor OilFloor WaxesFlourFlower BulbsFlowerpotsFlowers

99

Flue CleanersFluorescent LampsFluorescent StartersFlushers, DrainpipeFlush ValvesFluxFlypaperFly SpraysFoldersFoodFootball Dummies, TacklingFootball ShoesFootball UniformsFootballsForcepsForks, SilverwareForks, SpadingForks, TuningFormaldehydeForms, PrintedFrames, DoorFrames, MirrorFrames, OphthalmicFrames, PictureFrames, SawFrames, WindowFriction TapeFruitsFuelsFumigantsFumigatorsFungicidesFunnelsFurniture PolishFuses

F.

G

Gages, TireGamesGarbagecans

Garden HoseGarden ToolsGarmentsGarnet PaperGas MantelsGases

GasketsGasolineGasoline Dispensing Pumps, Hand Operated

LIST OF SUPPLIES (Continued)

Gauges, TireG'uzeGears

GelatinGelatin PadsGenerators, Integral Parts

of Larger UnitsGeographic Globes, Small

Desk TypeGlass

Glass, WatchGlasseuttersGlass WoolGlasses, DrinkingGlasses, MagnifyingGlasses, OphthalmicGlassware

GlazeGlidesGlobes, Electric LightGlobes, Geographic, Small Desk TypeGloves, RubberGlueGlyccGoggles

Graduated MeasuresGraph PaperGraphiteGrass Seed

Grass Shears, Hand OperatedGrates, StoveGravelGrease

Grease Guns, Air, Gun OnlyGrease Guns, HandGrinders, Hand OperatedGrinding CompoundsGrinding WheelsGroceriesGuards, ArmGuards, LampGuards, ShinGummed ClothGummed FiguresGummed LabelsGummed SealsGummed TapeGym ShoesGypsum

100

HacksawsHair Clippers, HandHairpinsHammers, BallPeenHammers, Light ForgedHammers, SledgeHampersHandbagsHandballsHandbooksHandsawsHandStampsHandtrJols, Not in SetsHandlesHandscrews, Wood and IronHangers, ClothingHangers, HardwareHardwareHot BlocksHatchetsHeadlightsHeating PadsHemp FibreHennaHinges

Hods, CoalHoes, GardenHolders, WotterHolders, ChangeHolders, CopyHooksHorns, otor VehiclesHorseshoesHose, ApparelHose, Flexible MetalHose, GardenHose ClampsHose NozzlesHot Water BottlesHydrometer FloatsHydrometersHygrometersHypodermic NeedlesHypodermic Syringes

Ice

Ice Bags

LIST OF SUPPLIES (Continued)

Ignition CoilsIncandescent Lamps, BulbsIndex CardsIndex LabelsIndex TabsIndian ClubsInkInk DrierInk EradicatorInk PadsInkwells and PartsInner Tubes, AutoInsect NetsInsect ScreeningInsecticidesInsignia

Instruments, Dental, SmallInstruments, DraftingInstruments, Medical, SmallInstruments, Surgical, SmallInsulatorsIntelligence TestsInterval TimersIodinelodeformIron FilingsIron GauzeIron Sheetiron WedgesIroning Boards

J

Jackets, BookJacks, MechanicalJars

Joints, Plumbing

K

Kerosene

KettlesKeyringsKeys

Keyboards, Piano, PaperKeyhole SawsKitchen UtensilsKits, First AidKneepadsKnives

101

t. ibblsLabora".ory Fittings, PlumbingLaboratory GlasswareLaboratory MountsLaboratory Tools, Small HandLacingLacquersLactoseLadlesLagscrews

Lamp BasesLamp BulbsLamps, DeskLamps, Drafting TableLantern SlidesLanternsLathsLawn Sprinklers, MovablE.Lead

Lead PencilsLead, RedLeatherLeather BriefcasesLeatherworking Tools, HandLedgersLenses

Letter BasketsLetter FilesLetter OpenersLetter S':P,E$

Letterhe.i&Lettering PensLevels, Precision Machinists'Levels, Small or Carpenters'Light BulbsLight GlobesLimeLine Markers, SmallLinensLiners, Staff, MusicLiners, TypeLining, BrakeLining, ClothLinoleumLinotype MetalsLinseed OilLiquid BronzingLiquid PolishesLiquid Soaps

LIST OF SUPPLIES (Continued)

Litmus PaperLoamLocknutsLocks, Small, not Built-inLoose leaf NotebooksLubricantsLubricating OilLubrication FittingsLugs, SolderingLumber

M

Machines, Dating, Small HandMachines, Numbering, Small HandMachines, Stamping, Small HandMagazine CoversMagnets, LaboratoryMagnifying GlassesMailboxesMalletsManicuring ToolsManila FilesManila FoldersManila RopeMap TracksMaps

Markers, Line, SmallMatchesMatrix, TypeMats, Door and BathMats, Gymnasium, Tumbling,

WrestlingMattocksMattresses

MaulsMeal

Meats

Mechanical Drawing InstrumentsMechanical PencilsMedalsMedical Instruments, SmallMedicine BallsMedicinesMegaphones

Memo BooksMending Materials

102

Mesh, Steel WireMetal PolishesMetalworking Tools, Small,

Hand OperatesMetals, Die CastingMetals, LaboratoryMetals, LinotypeMeter SticksMicrometers, Not in Sets.Milk CansMimeograph PaperMineral WoolMinerals, LaboratoryMinute BooksMirror FramesMirrors, SmallModeling ClayModeling ToolsMolding, MetalMop PailsMop WringersMopsMortarMoss

Motor Vehicle PartsMotors, Integral Parts of

Larger UnitsMounting BoardsMousetrapsMucilageMusic, SheetMuslinMustard

Nail PolishesNailsNapkinsNapkins, SanitaryNeatsfoot OilNeedles

Needles, HypodermicNegative RacksNegative TanksNets, ClothNewspapersNickel PolishesNotebook CoversNotebooks

LIST OF SUPPLIES (Continued) Parts, Radio, Resistors, Tubes,Transformers, etc.

Nozzles, Hose Parts, RepairNumbering Machines, Small Hand Paste

Nuts Paste BrushesPasteboard

0 Pasteboard BoxesPastries

Oakum Pastry CuttersOars Patching CompoundsOil PatternsOilcans Peat MossOilcloth Peelers, HandOintments Pen PointsOleomargarine Pencil SharpenersOpeners, Letter PencilsOphthalmic Frames Pencils, MechanicalOutlets, Electrical PenholdersOutline Maps PenknivesOvenware Dishes PennantsOxygen Pens

PeriodicalsP Pestles

Phonograph NeedlesPacking Phonograph Record AlbumsPadding Phonograph RecordsPadlocks Photoelectric CellsPads, Chair Photograph MountsPads, Desk Photographic LensesPads, Ink PhotographsPads, Stamp Piano PartsPads, Typewrtier PicksPads, Writing Picture FramesPails Picture WirePaintbrushes PigmentsPaint Drier PillowsPaint Remover Ping Pong SetsPaints Pinking ShearsPalettes PinsPamphlets PipePans \.) Pipe Dies, not in SetsPantographs Pipe FittingsPaper Pipe, SteelPaper Clips PipettesPaper Cups Piston RingsPaper Fasteners PistonsPaper Napkins PitchersPaper Punches Pitch PipesPaper Towels PitchforksPar- fin Plane Cutters

103

LIST OF SUPPLIES (Continued)

Planes, HardPlasterPlaster, AdhesivePlastic WoodPlate GlassPlates

Plates, Addressing MachinePlates, BatteryPlates, BookPlates, Lantern SlidePlates, PhotographicPliersPlugs, DrainPlugs, SparkPlumbing and Heating ValvesPlumbing Fixture Fittings and TrimPlumbsPlungers, DrainPockets, BookPointersPoints, DrillPoles

Poles, ClimbingPolishesPortfolios, LeatherPostersPosts

Pot CleanersPotsPotteryPowdersPreservatives

Printed MaterialsPrinting InkPrinting MaterialsPrinting Sets, RubberPrinting TypePrismsProtractorsPruners, HandPsychrometersPulleysPumicePunchesPushbuttonsPutty

Q

QuinineQuivers, Arrow

104

R

Rackets, BadmintonRackets, TennisRadio TubesRaffiaRags

Rakes, GardenRasps

RattanReamersReceptaclesRecord BooksRecord FormsRecording Tape and WireRecords, PhonographReedsReels, HoseReels, Motion Picture FilmReflectors, ParabolicRegisters, PrintedRegulating ValvesRegulators, VoltageRelief MapsRepair PartsReport FormsResistorsRespiratorsRetorts, Glass LaboratoryRibbons, Adding MachineRibbons, Addressing MachineRibbons, ClothRibbons, TypewriterRingtoss, GameRings, CcirromRings, KeyRivets

Rock, CrushedRoller BearingsRollers, InkRoofing MaterialsRopeRosinRotten StoneRougeRubber GoodsRubbish CansRugs, ScatterRulersRules, Shrink and Circumference

Safety Glass

LIST OF SUPPLIES (Continued)

Safety PinsSalts

SandSandpaperSandwich BoardsSanitary NapkinsSash, Combination Screen and

StormSash CordsSash, Screen

Sash, StormSaucers

Saw BladesSaw FramesSawdustSaws, HandScales, Draftsmen'sScales, SpringScalpelsScissors

Scoop Shovels, HandScouring PowdersScrapers, HandScreen DoorsScreens, WindowScrew ExtractorsScrew EyesScrew HooksScrewdriversScrews

Scrubbing CompoundsScythesSeasonings

Sedatives

Seed, Grass

Separators, Battery&rumsServing TraysShampooSharpeners, PencilShears, Hand-operatedSheaves

Sheet MetalSheet MusicSheetingShellacShelving MaterialsShinglesShock Absorbers

Shoes and BootsShopcoatsShovels, HendShower FittingsShrubsShuffleboard SetsShuttlecocksSiding, Sheet MetalSiftersSigns

Silk Screen Printing Apparatus,Complete Units

Silver PolishesSilverwareSink FittingsSkilletsSkisSlatsSledge HammersSlide RulesSlides, LanternSlides, MicroscopeSlides, ProjectorSnaps

SneakersSnips

Snow Shovels, HandSoap DispensersSoaps

Soccer BansSoccer ShoesSockets, WrenchSocks, PairsSoda, BakingSoddingSoftballsSofteners, Water, ChemicalSoilSoldering CoppersSoldering MaterialsSolventsSpades

Spading ForksSpark PlugsSpatulasSpecimens, LaboratorySpikesSpiritsSplintsSpokes.

Spokeshaves

106

LIST OF SUPPLIES (Continued)

Sponges

SpoonsSpotlightsSpray MixturesSprayers, HandSpreads, BedSpringsSprings, FurnitureSprinklers, Lawn, MovableSprocketsSquares

Squeegees

Staff Liners, MusicStain RemoversStainsStakes

Stamp PadsStamping Machines, Small HandStamps, RubberStands, CalendarStaplers, Small HandStaples

StarchStarters, ElectricStationerySteam PackingSteel Measuring TapesSteel, SheetSteel WoodStencil Correction FluidStencilsStenographers' NotebooksSterile GauzeSticks, ComposingSticks, HockeyStilts, SportStock RecordsStockingsStopwatchesStoppersStops, BenchStorage BatteriesStraight EdgesStrainersStraws, DrinkingStretchersStringsStylus

106

Sung lass FramesSunglasses

Supporters, AthleticSurfaceHardened BlocksSurgical Instruments, SmallSurgical PowdersSwages

Switch boxesSwitches, ElectricSynchronizers, CameraSyringesSyrup

Table ProtectorsTable Tennis BallsTable Tennis RacketsTableclothsTable, ComputingTablets, MedicinalTablets, WritingTabs, IndexTack HammersTacksTags

Talcum PowderTapeTape MeasuresTape, MeasuringTapsTar Roofing and SidingTargets, ArcheryTeam UniformsTelevision TubesTennis BallsTennis Court Nets, CordTennis RacketsTents, ShelterTerminals, BatteryTest Tube BrushesTest Tube RacksTest TubesTests, AchievementTextbooksTheatrical CostumesThermometersThermostatsThimblesThinners

LIST OF SUPPLIES (Continued)

ThreadsThroat ApplicatorsThumbtacksTicketsTile, DrainTimersTin CansTin CuttersTinwareTire ChainsTires and TubesTissues, CleansingToggle BoltsToilet PaperTokensTongsTongue DepressorsTools, Hand, Not in SetsTopsoilTow BarsTowelsToysTracing ClothTracing PaperTrammelsTransformers, LaboratoryTransmissions, Integral Parts

of Larger UnitsTriangles, DraftingTrimmers, Hedge, HandTrophiesTrowelsTubes, InnerTubes, RadioTubes, TelevisionTubing MaterialsTumblers, GlassTuning ForksTurpentineTweezersTwineType CleanerType LinersType, MatrixType, PrintingTypewriter BrushesTypewriter CoversTypewriter Ribbons

107

UnguentsUniformsUpholstering MaterialsUrns, FlowerUtensils

Vacuum BottlesValve PartsValves

Vaporizers, ElectricVarnish DriersVarnish RemoversVarnishesVases

Vaulting PolesVegetablesVinesVises, Small HandVision ChartsVolleyball NetsVolleyballs

V

W

Wall BrushesWallboardWallpaperWashbasins

WashclothsWashers, Rubber and LeatherWashing,PowdersWashtubsWaste, Machinists, etc.WastebasketsWatch CrystalsWatches, StopWatercolor BrushesWater GlassesWater SoftenersWax CrayonsWaxes, LiquidWaxes, PasteWaxes, SealingWeighing Scales, Small SpringWeightsWelding Rods

LIST OF SUPPLIES (Continued),

Wheels, AutomobileWheels, EmeryWhetstonesWhiskbroomsWhistlesWindow GlassWindow ScreensWindow ShadesWindow-Working Safety BeltsWipersWireWood, PlasticWood, FillersWood PreservativesWood StainsWoolWool, GlassWool, SteelWrapping PaperWrenches, Not in SetsWriting Paper

Yard BroomsYardsticksYard

Zinc

CRITERIA FOR EQUIPMENT ITEMS

An equipment item is a material unit which meetsall of the following conditions:

1. It retains its original sharg and appearance withuse.

2. It is nonexpendable, that is, if the article isdamaged or some of its parts are lost or wornout, it is usually more feasible to repair it ratherthan replace it with an entirely new unit (whichis not true of supplies).

3. It, represents an investment of money whichmakes it feasible and advisable to capitalize theitem.

108

4. It does not lose its identity through incorpora-tion into a different or more complex unit orsubstance.

Criterion number 4 is very important, especially iicapital outlay expenditures are to be depreciated, i,memorandum accounting, to arrive at equipment usecost.

LIST OF EQUIPMENT

The following list of equipment is not all inclusivebut does represent many of the common equipmentitems. Items of built-in or fixed equipment are notincluded in the list because expenditures for them arerecorded under different accounts from those for otherequipment.

A

Accounting MachinesAdding MachinesAddressing MachinesAir CompressorsAir Conditioning Units,

CasementAir HoistsAlidades, TelescopicAlignment Gauges, Chamber,

Toe-in, etc.Anatomical ModelsAndironsAn'emometersAnvilsApparatus CabinetsAquariumsArc Welding ApparatusArmature GrowlersAstrographs, WallAudiometersAutoclavesAutomobile LiftsAutomobiles

B

Balances, BeamBaling Presses, Compression

MouldingBand Instruments

LIST OF EQUIPMENT (Continued)

Band SawsBarbershop Tools, Electri.,aiBarber-Type FurnitureBarographsBarometersBars, Horizontal, PortableBattery ChargersBeaters, Egg, ElectricBeauty Class FurnitureBeds

Bellows, PowerBenches

Bicycle Racks, Portable.BicyclesBilling MachinesBinders, AgriculturalBiological ModelsBlackboards, PortableBleachers, PortableBlood Analysis Apparatus,

CompleteBlood Plasma CabinetsBlood Pressure ApparatusBlueprint MachinesBoards, Bulletin, PortableBoats or CanoesBodies, BusBodies, TruckBook StacksBook TrucksBookbinding MachineryBookcases, SectionalBookkeeping MachinesBooks, LibraryBoring Machines, Precision

Table or Vertical TypesBoxing Rings, CompleteBoyle's Law Apparatus,

Cc -.i Sete UnitBrake Lining MachinesBrakes and Folders, Hand or

PowerBread Slicers, MechanicalBread Toasters, ElectricBridges, Wheatstone and SimilarBroilers, ElectricBrooms, Power DrivenBuffers, Electric

Bulletin Boards, PortableBus WagonsBuses

C

Cabinets, ApparatusCabinets, Beverage Cooling, Ice

or ElectricCabinets, FilingCabinets, Frozen Food StorageCabinets, Ice Cream, Ice or

ElectricCabinets, LaboratoryCabinets, Lantern SlideCabinets, Print, DraftingCabinets, Printers, GalleyCabinets, Printers, TypeCabinets, SupplyCalculating MachinesCalorimeters, Continuous FlowCalorimeters, ElectricCameras, Motirm PictureCameras, StillCannersCanoes

Card Punching and Sorting DevicesCard RacksCard TablesCarpetsCases, DisplayCases, FileCases, LaboratoryCases, SupplyCases, TypeCattleCentering MachinesCentrifugesChain HoistsChairsChairs, FoldingChargers, BatteryChart StandsChassis, BusChassis, TruckCheck Handling MachinesCheckwriters

-Chisels, in SetsChoppers, Food, PowerCleaners, Steam Vapor

109

LIST OF EQUIPMENT (Continued)

Cleaners, VacuumClinometers, PhotoelectricClippers, Hair, ElectricClocks, WallCloth Cutting MachinesClothes DryersClutch Rebuilding ApparatusCoffee GrindersCoffee Percolators, ElectricCoffee UrnsCoin, Currency, and Check

Handling MachinesCollapsible TablesColorimetersCombinesCombustion AnalyzersComparatorsCompasses, MagneticCompressors, AirComputing MachinesConnecting Rod AlignersConnecting Rod Boring MachinesConnecting Rod Rebabbiting JogsConveyorsCookers, PressureCooking StovesCoolers, WaterCostumersCotsCouchesCounter FreezersCultivatorsCupboardsCylinder Boring MachinesCylinders, Gas

D

Dating MachinesDeep Fat Fry,..Deep Freezers

Dental BenchesDental CabinetsDental ChairsDental Drilling ApparatusDesks

Dictating MachinesDictionaries, Large Unabridged

110

Dictionary StandsDies, in SetsDiesel Engines for use in ClassroomsDiscs, OpticalDish TrucksDishwashing MachinesDisplay CasesDistilling ApparatusDitto MachinesDrafting MachinesDrawing TablesDrift MetersDrill Presses, Bench, Floor or RadialDrills, PowerDrinking Water Coolers, Electric or IceDrums, Bass, Kettle, SnareDryers, ClothesDryers, HairDrying Units, InfraredDuplicating Machines

E

Easels

Eggbeaters, ElectricElectric Clippers, Sheep, HorseElectric DishwashersElectric Floor ScrubbersElectric Hot PlatesElectric IronsElectric MixersElectric Sanding MachinesElectric ToastersElectric Tube TestersElectric Vacuum CleanersElectric Welding ApparatusElectrolysis ApparatusElectronic Deviation MetersElectronic Frequency MetersElectronic Power Supply and VoltageElectronic Recording Devices,

Graphical and VisualElectronic Volt-OhmmetersEmbossersEnd TablesEngine Flushing MachinesEngines, for Use in ClassroomsEnlargersEnvelope SealersErasers, Electric

LIST OF :QUIPMENT (Continued)

Exhibit CasesExposure Meters, CameraExtensometersExtinguishers, FireExtractors

F

Falling Weight RammersFans, Electric, PortableFigures, Geometrical, '4(4clels,

in SetsFiling CabinetsFiling MachinesFire ExtinguishersFireplace FixturesFlatirons, ElectricFloor Scrubbers, ElectricFluoroscopesFolding ChairsFolding TablesForgesForms, DressForms, Geometrical, Model,

in SetsFoundry MachineryFrames, BlueprintFreezersFreezers, Ice CreamFrequency MetersFurnaces, LaboratoryFurnaces, Remelting, Type MetalFurniture

GalvanometersGalvanoscopesGas CompressorsGas CylindersGas Meters, LaboratoryGas PlatesGas Stoves

Gasoline Dispensing Pumps,Ele

Gear L,utting MachinesGelatin DuplicatorsGenerators, Not Integral Parts of Larger Units

111

Geographic Globes, Large StandType

Globes, Geographic, Large Stand TypeGrass Shears, Power OperatedGrinders, Power OperatedGuns, Starting

H

Hair Clippers, ElectricHair DryersHall TreesHammers, Autobody, Pneumatic, etc.Hammers, Electric, HandHandtools, in SetsHandtools, Power Driven, Pneumatic and ElectricHandtrucksHarnesses

HarrowsHeaters, PortableHectographsHoists, Electric or PneumaticHolders, DictionaryHorses

Horses, Gym EquipmentHotplatesHurdlesHydraulic Jacks, Garage Type

ice Cream FreezersInductance StandardsInstruments, Band and MusicalInstruments, MusicalInstruments, Recording, ElectricalInterferometersIronersIrons, Electric

J

Jacks, Garage Type, HydraulicJointersJuice Extractors, ElectricJump Standards

Key RacksKilnsKitchen Tables

LIST OF EQUIPMENT (Continued)

L

Laboratofy Balances, BeamLaboratory FurnitureLaboratory ModelsLamps, Electric FloorLantern Slide CabinetsLathes, Brake DrumLathes, EngineLathes, Turret, or Automatic

Screw MachinesLathes, Wood-TurningLawnmowersLawn RollersLead, Slug and Rule Casting

Machines, ElrodLecternsLetter Presses

Library BooksLibrary FurnitureLibrary TrucksLifts, VehicleLighting Units, BlueprintingLine Markers, Large Push TypeLi n oty pes

LivestockLockers, Not Built-inLooms

M

Machine ToolsMachinery, CanningMachinery, Cemen, " :rakingMachines, AddingMachines, AddressingMachines, BillingMachines, BookkeepingMachines, Brake LiningMachines, CalculatingMachines, Check HandlingMachines, Coin HandlingMachines, Coin OperatedMachines, Dating, PowerMachines, DictatingMachines, DishwashingMachines, DraftingMachines, Drycleaning

112

Machines, DuplicatingMachines, LaundryMachines, MimeographMachines, MixingMachines, Numbering, PowerMachines, Polishingviacnines, PressingMachines, SandingMachines, ScrubbingMachines, SewingMachines, Stamping, PowerMachines, TabulatingMachines, WashingMachines, WaxingMagazine Racks, Large StandMarkers, Line, Large Push TypeMedicine CasesMetabolism ApparatusMetalworking MachineryMeters, Watt, Laboratory TypeMicrofilm Readers and Viewers

for Office UseMicrometers, in SetsMicroprojectorsMicroscopesMilking MachinesMillametersMilling Machines, Bench or FloorMillivoltmetpr5Mimeograph MachinesMirrors, Large WallMitre BoxesMixers, ElectricModels, Shop and LaboratoryMop TrucksMorti5ersMotion Picture ProjectorsMotor AnalyzersMotor Generator SetsMotor VehiclesMotorcyclesMotors, Not Integral Parts of

Larger UnitsMowersMusic StandsMusical Instruments

Wits, SteelNibbling Machines

LIST OF EQUIPMENT (Continued)

Noise and Field Strr.ngth MetersNumbering Mac ',s, Power

0

Office Composing Machines, Varitypes,etc.

Office FurnitureOhmmetersOptical DiscsOrgansOscillographsOutput MetersOvens

P

Paint Spraying OutfitsPaper CuttersPeelers, ElectricalPercolators, Coffee, ElectricPermanent Waving MachinesPhonographsPhotocopying ApparatusPhotoengraving ApparatusPhotometersPiAnoc

Pictures, Large WallPipe Dies, in SetsPlaners, PowerPlaning Machines, PhotoengraversPlaques, PermanentPlates, BenchPlates, HotPlatformsPlows, FieldPlows, SnowPolarimetersPolariscopesPostal MetersPotato Peelers, Large, MachinePower Sprayers and DustersPresses, ArborPresses, Book, BookbindersPresses, Cylinder, Flat Bed,

PrintingPresses, EngravingPresses, Letter

113

Presses, Lithographic or OffsetPrinting

Presses, PowerPresses, Punch, Foot PowerPrinting CasesPrinting Franc, sPrinting PressesProjectors, Motion PictureProjectors, StillPruners, PowerPublic Address Systems, PortablePush CartsPyrometers

R

Radio Receiving SetsRadio TransmittersRakes, WindowRanges, CookingRecord PlayersRecorders, SoundReference BooksRefracting ApparatusRefrigerators, Electric or Ice,

Not Built-inRegisters, CashRings, FlyingRollers, LawnRouters, Plate, PhotoengravingRowboatsRugs, Room Size

S

SaccharimetersSafes

Sanding MachinesSaws, BandSaws, CircularSaws, Power HackScc.'3s, Beam BalanceScreens, Projection, PortableScrubbing MachinesSealers, EnvelopeSeats

Sectional BookcasesSetteesSewing MachinesShakers, Laboratory

LIST OF EQUIPMENT (Continued)

Shapers, Bench and FloorShears, PoweroperatedShears, Power-operatedShorthand Writing MachinesSlicers, Bread, MechanicalSocket Wrench SetsSoil PenetrometersSoil Test MoldsSound RecordersSpark Plug Cleaning MachinesSpectroscopesSphygmomanometersSpiroms,tersSprayers, PowerSpreaders, ManureSpreaders, TireStacks, TireStacks, BookStadia RodsStadiometersStamping Machines, PowerStandards, JumpStands, ChartStands, Engine RepairStands, UmbrellaStaplers, Foot or Power OperatedStatuaryStereoscopes

St'rilizersStitchersStones, PrintersStoolsStovesStriking Bag OutfitsSupply Cases

T

TablesTabulating MachinesTanks, Bulk Storage, not Integral Parts of Buildings

or Building ServicesTelevision SetsTennis Court Nets, SteelTents, WallTheodolites and TripodsThermographsToasters, ElectricTool Sets, Hand

114

TractorsTransmissions, not Integral Parts of Larger UnitsTrimmers, Hedge, PowerTripods, CameraTrucks, HandTrucks, MotorTunnels, Models, WindTypecasesTypecasting MachinesTypewriter DesksTypewriters

Umbrella StandsUrns, Coffee

Vacuum CleanersVacuum Type VoltmetersVending MachinesVibrographsVises, BenchVoltmeters

U

V

w

Wagons

Washers and Dryers, PhotographicWashing MachinesWatchmen's TirneclocksWater CoolersWater Meters, Laboratory TypeWatt Meters, Laboratory TypeWave Meters and Wave AnalyzersWaxing MachinesWeaving MachinesWeighing Scales, BeamWelding ApparatusWheel Straightening ApparatusWheelbarrowsWheels, PotteryWorkbenchesWorktablesWrenches, in Sets

X-ray Machines

Yard Benches

Appendix B

GLOSSARY

This section contains definitions of selected terms as used in this handbook and definitions of some additionalterms as seems necessary for a common understanding of LEA accounting systems. Extensive use of the glossarywill help establish a high degree of comparability in LEA records and reports. The glossary is arrangedalphabetically with appropriate cross-referencing. Where a definition has been modified, the handbook reference isgiven; e.g., I, II, HI, IV, V, VI, and VII, followed by the letter "M".

Some of the definitions have been taken from Handbooks 1,1 11,2 111,3 1V,4 V,5 VI,6 and V117 in the StateEducational Records and Reports Series. In such cases, the definition used in this handbook is taken from thelatest handbook in which the term is defined.

'Paul L. Reason; Emery M. Foster, and R ol:ert F. Will, The Common Core of State Educational Information. Washington, D.C.:U.S. Government Printing Office, 1953. U.S. Department of Health, Education, and Welfare, Office of Education, StateEducational Records and Reports Series: Handbook I, Bulletin 1953, No. 8.

'Paul 1, Reason and Alpheus 1. White, Financial Acc oaring for Local and State School Systems, Standard Receipt andExpenditure Accounts. Washington, D.C.: U.S. Governmi Printing Office, 1957. U.S. ,Department of Health, Education, andWelfare, Office of Education, State Educational Records and Reports Series: Handbook n, Bulletin 1957, No. 4.

3 Paul L. Reason and George G. Tankard, Jr., Property Accounting For Local and State School Systems. Washington, D.C.: U.S.Government Printing Office, 1959. U.S. Department of Health, Education, and Welfare, Office of Education, State EducationalRecords and Reports Series: Handbook III, Bulletin 1959, No. 22.

Allan R. Lichtero and Richard J. Penrod, Staff Accounting r Local and State School Systems. Washington, D.C.: U.S.Government Print 966. U.S. Department of Health, Education, and Welfare, Office of Education, State EducationalRecords and Repon... ,ndbook IV, Bulletin 1965, No. 18.

'John F. Putnam at. George G. Tankard, Jr., Pupil Accounting for Local and State School Systems. Washington, D.C.: U.S.Government Printing Office, 1964. U.S. Department of Health, Educaticw, and Welfare, Office of Education, State EducationalRecords and Reports Series: Handbook V, Bulletin 1964, No. 39.

'John F. Putnam and W. Dale Chismore, Standa;d Terminology for Curriculum and Instruction in State and Local SchoolSystems. Washington, D.C.: U.S. Government Printing Office, 1970. U.S. Department of Health, Educat: )n, and Welfare, Office ofEducation, State Educational Records and Reports Series: Handbook VI, Bulletin 1970, No. 23052.

Yeuell Y. Harris and Ivan N. Seibert, The State Education Agency. Washington, D.C.: U.S. Government r',:nting Offic:, 1971.U.S. Department of Health, Education, and Welfare, Office of Education, State Educational Records and Reports Series: Hz ndbookVff, Buffetin 1971, No. 23054.

115

A

Abatement. A reduction of a previously recordedexpenditure or receipt item by such things as refunds,rebates, and collections for loss or damages to schoolproperty. (H )

Account. A descriptive heading under which are

recorded financial transactions that are similar in termsof a given frame of reference, such as purpose, object,or source. (11)

Accountability. The capability and the responsibilityto account for the expenditure of money and thecommitment of other resources in terms of the resultsachieved. This involves both the stewardship of moneyand other resources and the evaluation of achievementin relation to specified goals. (VII)

Accounting. The procedure of maintaining systematicrecords of events relating to persons, objects, or moneyand summarizing, analyzing, and interpreting the re-sults of such records. (VII M)

Accounting Ledgers. See Ledger.

Accounting Period. A period at the end of which andfor which financial statements are prepared; for ex-ample, July 1 to June 30. ( I I )

Accounting System. The total mechanism of recordsand procedures of recording, retrieving, and reportinginformation on the financial position and operations ofa governmental unit or any classifying of its funds,balanced account groups, and organizational com-ponents.

Accounts Receivable. Amounts owing an open accountfrom private persons, firms, or corporations for goodsand services furnished by a LEA (but not includingamounts due from other funds or from other govern-mental units). Although taxes receivable are covered bythis term, they should be recorded and reportedseparately in the Taxes Receivable account. (VII M)

Accrual Basis. The basis of accounting under whichrevenues are recorded when earned or when levies aremade, and expenditures are recorded as soon as theyresult in liabilities, regardless of when the revenue isactually received or them payment is actually made. See

116

also Current Expense, Estimated Revenue, and Ex-penditures. (VII I

Accrue. To record revenues when earned or when leviesare made, and to record expenditures as soon as theyresult in liabilities, regardless of when the revenue isactually received or the payment is actually made.Sometimes the term is used in a restricted sense todenote the recording of revenues earned but not yetdue, such as accrued interest on investments and therecording of expenditures which result in liabilities thatare payable in another accounting period, such asaccrued interest on bonds. See also Accrual Basis,Accrued Expenses, Accrued Liabilities, and AccruedRevenue. (VIII

Accrued Expenses. Expenses which have been incurredand have not been paid as of a given date. See alsoAccrual Basis and Accrue. (1 I

Accrued Interest accumulated between inter-est dates but not yet due. (Il)

Accrued Interest on Investments Purchased. Interestaccrued on investments between the last interestpayment date and date of purchase. The account iscarried as an asset until the first interest payment dateafter date of purchase. At that time an entry is madedebiting account Cash and crediting the AccruedInterest on Investments Purchased account for theamount of interest purchased and an Interest Earningsaccount for the balance.

Accrued Liabilities. Amounts owed but not yet due;for example, accrued interest on bonds or notes. Seealso Accrued Expenses. (Vi 1)

Accrued Revenue. Levies made or other revenue earnedand not collected regardless of whether due or not.

Administration. Those activities which have as theirpurpose the general direction, execution, and controlof the affairs of the LEA that are systemwide and notconfined to one school, subject, or narrow phase ofschool activity. (VII M)

Administrative Action. Any action which results in thegeneral regulation, direction, or control of the affairsof the organizational unit. (VII)

Administrative Unit, Intermediate. A unit smaller thanthe State which exists primarily to provide consulta-tive, advisory, or statistical services to local basicadministrative units: or to exercise certain regulatoryand inspectoral functions aver local basic administra-tive units. An intermediate unit may operate schoolsand contract for school services, but it does not existprimarily to render such services. Such units may ormay not have taxing and bonding authority. Wherethere is a supervisory union board, the union is

included as an intermediate unit. (II)

Administrative Unit, Local Basic. An administrativeunit at the local level which exists primarily to operateschools or to contract for school services. Normally,taxes can be levied against such unite for schoolpurposes. These units may or, may not have the sameboundaries as county, city, or town boundaries. (Thisterm is used synonymously with the term "schoolsystem," and "LEA). (I I M)

Admissions. Money received for a school-sponsoredactivity such as a dance or football game. Admissionsmay be recorded in separate accounts according to thetype of activity.

Adult Basic Education. Learning experiences con-cerned with the fundamental tools of learning foradults who have never attended school or who haveinterrupted formal schooling and need this knowledgeand these skills to raise their level of education toincrease self confidence, and/or self determination, toprepare for an occupation, and to function moreresponsibly as citizens in a democracy.

Adult/Continuing Education. Learning experiences de-signed to develop knowledge and skills to meetirnmediate and long range educational objectives foradults who, having completed or interrupted formalschooling, have accepted adult roles and responsibili-ties. Programs include activities to foster the develop-ment of fundamental tools of learning, to prepare for apostsecondary career, to prepare for postsecondaryeducation programs, to upgrade occupational compe-tencies, to prepare for a new or different career, todevelop skills and appreciations for special int'rests, orto enrich the aesthetic qualities of life.

Adult/Continuing Education Tuition. Money receivedas tuition for students attending adult/continuing educe-

117

tion classes. Separate accounts may be maintained fortuition received for residents and for tuition receivedfor nonresidents.

Ad Valorem Taxes Levied by Another GovernmentUnit. Taxes levied for school purposes by a govenmentunit other than the LEA. The LEA is not the finalauthority, within legal limits, in determining theamount to be raised. For example, alter a LEA hasdetermined that a certain amount of revenue is

necessary, another governmental unit may exercisediscretionary power in reducing or increasing theamount. Separate accounts may be maintained for realproperty and .for personal property.

Ad Valorcm Taxes Levied by LEA. Taxes levied by aLEA on the assessed valuation of real and personalproperty 1Jcated within the LEA which, within legallimits, is the final authority in determining the amountto ce raised for school purposes. Separate accountsmay be maintained for real property and for personalproperty.

Advance From "A" Fund. A liability account used torecord a debt owed by one fund to another fund in thesame governmental unit. It is recommended thatseparate accounts be maintained for each interfundreceivable loan.

Advance to "A" Fund. An asset account used to recorda loan by one fund to another fund in the samegovernmental unit. It is recommended that separateaccounts be maintained for each interfund receivableloan.

Advanced Adult Education. Learning experiences designed to develop the knowledge, skills, appreciations,attitudes, and behavioral characteristics considered tobe needed by adults who, having completed or inter-rupted formal schooling, have accepted adult roles andresponsibilities and are preparing for postsecondarycareers and/or postsecondary education programs.

Advancement Accounts. See Revolving Fund.

Agent. One who represents, acts for, and accounts toanother. The powers of a general agent are broad. Heinitiates transactions in the name of his principal andcarries on operations within a large discretionary area.His functions often resemble those of a general

manager. A special agent, on the other hand, is

restricted to the performance of a single act or theconduct of a single transaction.

Aggregate Days Attendance. The sum of the dayspresent (actually attended) of all pupils schoolwas actually in session during a given reporting period.Only days on which the pupils are under the guidanceand direction of teachers should be considered as daysin session. See also Day in Session and Day ofAttendance. (V I I )

Aggregate Days Membership. The sum of the dayspresent and absent of all pupils when school wasin session during a given reporting period. Only days onwhich the pupils are under the guidance and directionof teachers should be considered as days in session. Seealso Day in Session and Day of Attendance. (V)

Allot. To divide an appropriation into amounts forcertain periods or for specific purposes. ( I I )

Allotment. The amount allotted for a certain period orpurpose. (II)

Allotment Ledger. A subsidiary ledger which containsan account for each allotment showing the amountallotted, expenditures, encumbrances, the net balance,and other related information. See also AppropriationLedger. ( I I )

Amortization of Debt. (a) Gradual payment of anamount owed according to a specified schedule oftimes and amounts. (b) Provision for paying a debt bymeans of a Sinking Fund. (II)

Amount Available in Debt Service Funds. An accountin the General Long-Term Debt group of accountswhich designates the amount of assets available in aDebt Service Fund for the retirement of generalobligation term bonds.

Amount To Be Provided for Payment of Bonds. Anaccount in the General LongTerm Debt group ofaccounts which represents the amount to be providedfrom taxes or other general revenue to retire outstand-ing general obligation term bonds.

Apportionment. See Allotment.

118

Appraisal. The act of making an estimate of value,particularly of the value of property, by systematicprocedures that include physical examination, pricing,and often engineering estimates. Also, the value estab-lished by estimating. (VII)

Appraised Value. The value established by appraisal.See also Appraisal.

Appropriation. An authorization granted by a legisla-tive body to make expenditures and to incur obliga-tions for specific purposes. ( I I )

Appr',"-:riation, School. Money received out of fundsset aside periodically by the appropriating body (dis-trict meeting, city council, or other governmentalbodies) for school purposes; which funds have not beenspecifically collected as school taxes. ( I I )

Appropriation Balance. See Unencumbered Balance ofAppropriation or Allotment, and Unexpended Balanceof Appropriation or Allotment.

Appropriation Expenditure. An expenditure chargeableto an appropriation. (II)

Appropriation Ledger. A ledger containing an accountwith each appropriation. Each account usually showsthe amount originally appropriated, transfers to orfrom the appropriation, amount charged against theappropriation, the encumbrances, the net balance, andother related information. If allotments are made and aseparate ledger is maintained for them, each accountusually shows the amount appropriated, transfers to orfrom the appropriation, the amount allotted, and theunallotted balance. See also Allotment Ledger. ( I I )

Appropriations Received From Local GovernmentalUnits Other Than LEA. Money received from theappropriations of another local governmental unit. TheLEA is not the final authority, within legal limits, indetermining the amount of money to be received, andthe money is raised by taxes, or other means which arenot earmarked for school purposes.

Architecture and Engineering. Pertains to architecturaland engineering activities related to Land Acquisitionand Improvement and Building Acquisition, Con-struction, and Improvements.

Area Responsibility. A subdivision of a Service Areaconsisting of activitie,i which, regardless of their nature,have a common purpose directly related to theoperational objective of the Service Area. (IV)

Assessment, Special. A compulsory levy made by alocal government against certain properties to defraypart or all of the cost of a specific improvement orservice which is presumed to be of general benefit to.the public and of special benefit to the owners of suchproperties. (II)

Assets. The things of value a LEA owns. See also FixedAssets. (I I B)

Attendance, Aggregate Days. See Aggregate Days At-tendance.

Audiovisual Aids. Optical, electronic, and other de-vicesand related supplieswhich are designed toenhance learning through the combined senses ofhearing and sight; e.g., sound, motion pictures, printedmaterials, and television. Frequently two or more ofthese components are combined into electronic distri-bution systems, some of which incorporate remote ordial access capabilities. See also Educational Media.(VII)

Audit. The examination of records and documents andthe securing of other evidence for one or more of thefollowing purposes: (a) determining the propriety ofproposed or completed transactions, (b) ascertainingwhether all transactions have been recorded, (c) de-termining whether transactions are accurately recordedin the accounts and in the statements drawn from theaccounts. (II)

Audited Voucher. A voucher which has been examinedand approved for payment. (It)

Average Daily Attendance, ADA. The aggregate daysattendance of a given school during a reporting perioddivided by the number of days school is in sessionduring this period. Only days on which the pupils areunder the guidance and direction of teachers should beconsidered as days in session. The average dailyattendance for groups of schools having varying lengthsof terms is the sum of the average daily attendancesobtained for the individual schools. See also AggregateDays Attendance, Day in Session, and Day of Attend-ance. (VII)

119

Average Daily Membership, ADM. The aggregate daysmembership of a school during a reporting perioddivided by the number of days school is in sessionduring this period. Only days on which pupils areunder the guidance and direction of teachers should beconsidered as days in session. The average dailymembership for groups of schools having varyinglengths of terms is the sum of the average dailymemberships obtained for the individual schools. Seealso Aggregate Days Membership, Day in Session, andMembership. (V I I)

B

Balance Sheet. A formal statement of assets, liabilities,and fund balance as of a specific date. (V I I)

Balance Sheet Accounts. See Balance Sheet.

Board of Education Services. The activities of theelected or appointed body which has been createdaccording to State law and vested with responsibilitiesfor educational activities in a given geographical area.These bodies are sometimes called school boards,governing boards, boards of directors, school commit-tees, school trustees, etc. This Service Area relates tothe general term and covers State boards, intermediateadministrative unit boards, and local basic ad-

ministrative unit boards.

Board Secretary. The duties of the secretary of theboard of education.

Board Treasurer. The duties of the treasurer of theboard of education.

Bond. A written promise, generally under seal, to pay aspecified sum of money, called the face value, at afixed time in the future, called the date of maturity,and carrying interest at a fixed rate, usually payableperiodically. The difference between a note and a bondis that the latter usually runs for a longer period oftime and requires greater legal formality. See alsoRefunding Bonds, Serial Bonds, Surety Bonds, andTerm Bonds. ( I I )

Bond Attorney. The attorney who approves thelegality of a bond issue. (II)

Bond Discount. The excess of the face value of a bondover the price for which it is acquired or sold. Theprice does not include accrued interest at the date ofacquisition or sale. (VII)

Bond Premium. The excess of the price at which abond is acquired or sold, over its face value. The pricedoes not include accrued interest at the date elacquisition or sale. (H)

Bonded Debt. The part of the LEA debt which iscovered by outstanding bonds of the LEA. Sometimescalled "Funded Debt." (II)

Bond Proceeds Receivable. An account used to desig-nate the amount receivable upon sale of bonds.

Bonds AuthorizedUnissued. Bonds which the LEAcan issue without further proceedings other than todirect their sale. The account is included among theresources of the Capital Projects Fund offset by acredit to Appropriations. When the bonds are sold, theaccount would be credited and Cash debited. Analternative approach is not to show the Bonds Author-izedUnissued account in the balance sheet but merelyto call attention to the amount of bonds that havebeen authorized and not issued in a footnote to theappropriate balance sheet. In this case, the journalentry at the time bonds are sold would be a debit toCash for the proceeds and a credit to the revenueaccount, Sales of Bonds.

Bonds Payable. The face value of bonds issued andoutstanding.

Bookstore Sales. Revenues of sales resulting from theoperation of a bookstore. Bookstore sales can be partof the distributive education courses offered, pupilorganization sponsored, or a LEA enterprise. Sales maybe recorded in separate accounts according to the typeof product sold.

Book Value. Value as shown by books of account. (II)

Budget. A plan of financial operation embodying anestimate of proposed expenditures for a given period orpurpose and the proposed means of financing them.The budget usually consists of three parts. The firstpart contains a message from ti,e budget-makingauthority together with a summary of the proposed

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expenditures and the means of financing them. Thesecond part consists of schedules supporting the sum-mary. The schedules show in detail the proposed ex-penditures and means of financing them together withinformation as to past years' actual revenues and ex-penditures and other data used in making the estimates.The third part is composed of drafts of the appropria-tion, revenue, and borrowing measures necessary to putthe budget into effect. (VII).

Budgetary Accounts. Those accounts necessary toreflect budget operations and conditions, such as

estimated revenues, appropriations, and encumbrances,as distinguished from proprietary accounts. See alsoProprietary Accounts. (II)

Budgetary Control. The control or management of thebusiness affairs of the LEA in accordance with anapproved budget with a view toward keeping expendi-tures within the authorized amounts.(I I)

Budget Document. The instrument used by the budget.making authority to present a comprehensive financialprogram to the appropriating body. The budget docu-ment usually consists of three parts. The first partcontains a message from the budget-making authority,together with a summary of the proposed expendituresand the means of financing them. The second consistsof schedules supporting the summary. These schedulesshow in detail the information as to past years' actualrevenues, expenditures, and other data used in makingthe estimates. The third part is composed of drafts ofthe appropriation, revenue, and borrowing measuresnecessary to put the budget into effect.

Budgeting. Pertains to budget planning, formulation,administration, analysis, and evaluation.

Building Acquisition, Construction,,and Improvements.Pertains to building acquisition through purchase orco lstruction, and building improvements. It includesinitial installation or extension of service systems andother built-in equipment, as well as building additions.

C

Capital Outlay. An expenditure which results in theacquisition of fixed assets or additions to fixed assetswhich are presumed to have benefits for more than oneyear. It is an expenditure for land or existing buildings,

improvements of grounds, contruction of buildings,additions to buildings, remodeling of buildings, orinitial, additional, and replacement of equipment. (VIIM)

Capital Project Fund. Used to account for all resourcesused for acquisition of capital facilities including realproperty.

Care and Upkeep of Buildings. Pertains to cleaning thebuildings of school plants or supporting services fa-cilities; operating such equipment as heating andventilating systems; keeping the school plant safe foroccupancy and use; and keeping the buildings andbuilt-in equipment of the LEA in a state of goodcondition and repair.

Care and Upkeep of Grounds. Pertains to maintainingthe grounds and the equipment on the grounds (otherthan buildings) owned or used by the school or LEA ina state of good condition and repair.

Care and Upkeep of Equipment. Pertains to maintain-ing equipment owned or used by the school or LEA. Itincludes such activities as servicing and repairingfurniture, machines, and other equipment that is notbuilt-in.

Cash. Currency, checks, postal and express moneyorders, and bankers' drafts on hand or on deposit withan official or agent designated as custodian of cash; andbank deposits. Any restriction or limitations as to itsavailability should be indicated.(II)

Cash Basis. The basis of accounting under whichrevenues are recorded only when actually received, andonly cash disbursements are recorded as expenditures.(II)

Cash Change Fund. A sum of money set aside for thepurpose of providing cash register change.

Cash Discounts. An allowance received or given byvendors for payment of invoices within a stated periodof time.

Cash With Fiscal Agent. Deposits with fiscal agents,such as commercial banks, for the payment of maturedbonds and interest. (II B)

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Categorical Aid. Educational support funds providedfrom a higher governmental level and specificallylimited to (earmarked for) a given purpose; e.g., specialeducation, transportation, or vocational education.

Central Administrative Office. An office or buildingused primarily for housing personnel and equipmentengaged in activities which have as their purpose thegeneral regulation, direction, and control of the affairsof the LEA that are systemwide and not confined toone school, subject, or narrow phase of school activity.

Chart of Accounts. A list of all accounts generally usedin an individual accounting system. In addition toaccount title, the chart includes an account numberwhich has been assigned to each account. Accounts inthe chart are arranged with accounts of a similarnature; for example, assets and liabilities. (II B)

Check. A bill of exchange drawn on a bank payable ondemand; a written order on a bank to pay on demand aspecified sum of money to a named person, to hisorder, or to bearer out of money on deposit to thecredit of the maker. A check differs from a warrant inthat the latter is not necessarily payable on demandand may not be negotiable; and it differs from avoucher in that the latter is not an order t. pay. Avoucher-check combines the distinguishing marks of avoucher and a check; it shows the propriety of apayment and is an order to pay. (II)

Civic Activities. School related activities such as

parent-teacher association meetings and such non-school related civic activities as public forums, lectures,and civil defense planning usually connected withschool services.

Classification, Object. See Object Classification.

Clearing Accounts. Accounts used to accumulate totalreceipts or expenditures either for later distributionamong the accounts to which such receipts or expendi-tures are properly allocable, or for recording the netdifferences under the proper account. See also Revolv-ing Fund, Prepaid Expenses, and Petty Cash. (II)

Clerical Personnel. Personnel occupying positionswhich have as their major responsibilities the preparing,transferring, transcribing, systematizing, or preservingof written communications and records. This alsoincludes stock clerks and shipping clerks. (II)

Cocurricular Activities. Cocurricular activities (experi-ences) are comprised of the group of school-sponsoredactivities, under the guidance or supervision of quali-fied adults, designed to provide opportunities forpupils to participate in such experiences on an indi-vidual basis, VI small groups, or in large groupsatschool events, public Events or a combination ofthesefor such purposes as motivation, enjoyment, andimprovement of skills. In practice, participation usuallyis not required and credit usually is not given. Whenparticipation is required or credit is given the activitygenerally is considered to be a course. (VI M)

Code. See Coding.

Coding. Distinguishing among items and categories ofinformation by assigning numbers or other symbolicdesignations so that the items and categories are readilyidentifiable. (VII)

Communication. Expenditures for telephone and tele-graph services as well as postage machine rental andpostage.

Community/Junior College. An insitution of highereducation which usually offers the first 2 years ofcollege instruction and career education, grants anassociate's degree, and does not grant a bachelor'sdegree. It is either a separately organized institution(public or nonpublic) or an institution which is a partof a public school system or system of junior colleges.Offerings include transfer, occupational, and/or generalstudies programs at the postsecondary instructionallevel and may also include adult education programs.(V R)

Community Recreation. Concerned with providingrecreation programs for the community as a whole, orfor some segment of the community. It includes suchstaff activities as organizing and supervising play-grounds, swimming pools, and other recreation pro-grams for the community.

Community Relations. Concerned with conductingcommunity relations activities. It includes maintainingliaison with local civic groups, serving as the centralpoint for all requests for public speaking engagements,responses to public inquiry, arranging for tours of, andvisits to; the LEA.

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Community Services. Services, other than public schooland adult education functions, provided by the schoolor LEA for purposes relating to the community as awhole or some segment of the community. Theseinclude such services as community recreation pro-grams, civic activities, public libraries, programs ofcustody and care of children, community welfareactivities, and services for nonpublic school pupilsprovided by the public schools on a continuing basis.(IV)

Comparability. The characteristic of commonalityamong or between selected elements measured in termsof identical constants. The accuracy of the measure-ment of the degree of comparability is usually de-pendent on the number of constants applied.

Computer-Assisted Instruction. Programed instructionutilizing an electronic computer as the principal me-dium of instruction.

Consultant. A person who gives professional or tech-nical advice and assistance. A consultant may performhis services under contract (purchased services) or hemay be an employee on the payroll of a State agency.

Consultants or Supervisors of Instruction. See Super-visors of Instruction.

Contingent Fund. Assets or other resources set aside toprovide' for unforeseen expenditures, or for anticipatedexpenditures of uncertain amount.

Contingent Liabilities. Items which may become liabili-ties as a result of conditions undetermined at a givendate, such as guarantees, pending law suits, judgmentsunder appeal, and unsettled disputed claims.

Contracted Services. Services rendered by personnelwho are not on the payroll of the LEA including allrelated expense covered by the contract.

Contracts Payable. Amounts due on contracts forgoods and services received by a LEA.

Construction Contracts Payable. Amounts due by aLEA on contracts for construction of buildings, struc-tures, and other improvements.

Construction Contracts PayableRetained Percentage.

Liabilities on account of construction contracts forthat portion of the work which has been completedbut on which part of the liability has not been paidpending final inspection, or the lapse of a specifiedtime period, or both. The unpaid amount is usually astated percentage of the contract price.

Construction Work in Progress. The cost of construc-tion work undertaken but not yet completed.

Continuing Education. See Adult/Continuing Education.

Contributions and Donations From Private Sources.Money received from a philanthropic foundation,private individuals, or private organizations for whichno repayment or special service to the contractor isexpected. Separate accounts may be maintained forrevenue unrestricted as to use, and revenue which isrestricted as to use.

Controlling Account. An account usually kept in thegeneral ledger in which the postings to a number ofidentical, similar, or related accounts are summarizedso that the balance in the controlling account equalsthe sum of the balances of the detailed accounts. Thecontrolling account serves as a check on the accuracyof the detailed account postings and summarizes theexpenditures in relation to the budget estimates.

Cost Accounting. That method of accounting whichprovides for the assembling and recording of all theelements of cost incurred to accomplish a purpose, tocarry on an activity or operation, or to complete a unitof work or a specific job. (VII)

Cost Benefit. Analyses which provide the means fcrcomparing the resources to be allocated to a specificprogram with the results likely to be obtained from it;or, analyses which provide the means for comparingthe results likely to be obtained from the allocation ofcertain resources toward the achievement of alternateor competing objectives. (VII)

Cost Center. The smallest segment of a program that isseparately recognized in the agency's records, accounts,and reports. Program-oriented budgeting, accounting,and reporting aspects of an information system areusually built upon the identification and use of a :.:et ofcost centers. (VII)I )

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Cost Effectiveness. Analyses designed to measure theextent to which resources allocated to a specificobjective under each of several alternatives actuallycontribute to accomplishing that objective, so thatdifferent ways of gaining the objective may be com-pared. (VII)

Cost Ledger. A subsidiary record wherein each project,job, production center, process, operation, product, orservice is given a separate account under which allitems of its cost are posted in the required detail. ( I I )

Cost Per Pupil. See Current Expenditures Per Pupil.

Cost Unit. The unit of product or service whose cost iscomputed. (1 I )

Current. The term refers to the fiscai year in progress.(I I)

Current Assets. Cash or anything that can be readilyconverted into cash. (II B)

Current Expenditures. See Current Expense.

Current Expenditures Per Pupil. Current expendituresfor a particular period of time divided by a pupil unitof measure. (II M)

Current Expense. Any expenditure except for capitaloutlay and debt service. Current expense includes totalcharges incurred, whether paid or unpaid. (II M)

Current Expense, Total. The total of all expendituresmade during a period of time except for capital outlayand debt service. (II)

Current Funds. Money received during the currentfiscal year from revenue which can be used to payobligations currently due, and surpluses reappropriatedfor the current fiscal year. (I I M)

Current Liabilities. Debts which are payable within arelatively short period of time, usually no longer than ayear. See also Floating Debt. (II M)

Current Loans. A loan payable in the same fiscal yearin which the money was borrowed. See also TaxAnticipation Notes. ( I I )

Current Year's Tax Levy. Taxes levied for the currentfiscal period. ( I I )

Custody and Care of Children. The custodial care ofchildren in residential day schools, or child care cutterswhich are not part of, or directly related to, theinstructional program, and where the attendance of thechildren is not included in the attendance figures forthe LEA.

D

Data. See Fact.

Data Bank. A comprehensive collection of data, usuallyin machine-usable form (such as punch cards, tapes,and discs), which can be used for such purposes asdrawing subsamples for special studies, checking hy-potheses not formulated or tested previously, facilitat-ing historical studies, and deriving summations andcorrelation's. Typically, an educational data bank iscomprised of component files relating to specific areasof information such as pupils, staff, property, finance,instructional programs, and the community. (VII)

Data Processing. The activities of collecting and organ-izing data, storing for future use, and preparingstatistical reports. See Machine Data Processing.

Day in Session. A day on which the school is open andthe pupils are under the guidance and direction ofteachers in the teaching process. On some days theschool ;plant itself may be closed and the student bodyas a whole engaged in school activities outside theschool plant under the guidance and direction ofteachers. Such days should be considered as days insession. Days on which school is closed for suchreasons as holidays, teachers' institutes, and inclementweather should not be considered as days in session.(VII)

Day of Attendance. A day of attendance is one inwhich a pupil is present for the full day under theguidance and direction of a teacher while school is insession. When a pupil is present for only part of theday, it should be considered as a partial day ofattendance in the same proportion that his timepresent at school bears to the total length of the schoolday. If overcrowded conditions make it necessary tohold two separate sessions with a different group ofpupils in each session, a pupil attending for all of eithersession should be considered as having attended for thefull day. An excused absence during examination

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periods or because of sickness, or for any other reasonshould not be counted as a day of attendance. See alsoDay in Session. (V I I)

Debt Service. Expenditures for the retirement of debtend expenditures for interest on debt, except principaleind interest of current loans. See also Current Loans.(VW

Debt Service Fund. Used to finance and account forpayment of interest and principal on all generalobligation debt. Does not include money payableexclusively from special assessments or revenue debtissued for and serviced by a government enterprise.

Deferred Charges. Expenditures which are not charge-able to the fiscal period in which made but are carriedon the asset side of the balance sheet pendingamortization or other disposition. Deferred chargesdiffer from prepaid expenses in that they usuallyextend over a long period of time and may or may notbe regularly recurring costs of operation. See alsoPrepaid Expenses. ( I I )

Deficit. The excess of the obligations of a fund overthe fund's resources. (II)

Delinquent Taxes. Taxes remaining unpaid on and afterthe date on which they become delinquent by statute.(Ill

Deposits. Use of this account is normally restricted tolong-term investments deposited by the LEA as aprerequisite to receiving services and/or goods.

Deposits Payable. Liability for -deposits received as aprerequisite to providing or receiving services and/orgoods.

Depreciation. Loss in value or service life of fixedassets because of wear and tear through use, elapse oftime, inadequacy, or obsolescence, (II)

Development. Activities concerned with the evolvingprocess of utilizing the products of research andconsidered judgment in the deliberate improvement ofeducational programs. (VII)

Direct Costs. Those elements of cost which can beeasily, obviously, and conveniently identified with

specific activities or programs, as distinguished fromthose costs incurred for several different activities orprograms and whose elements are not readily identifi-able with specific activities. See also Indirect Costs.(VII)

Direct Services. Activities identifiable with a specificprogram. These are direct services for a particularprogram. Those activities concerned with the teaching-learning process are considered to be direct services forinstruction.

Disbursements. Payments in Cash. See also Cash. (VII)

Double Entry. A system of bookkeeping which re-quires for every entry made to the debit side of anaccount or accounts an entry for the correspondingamount or amounts to the credit side of anotheraccount or accounts. (II)

Due From "A" Fund. An asset account used to indicateamounts owed to a particular fund by another fund inthe same LEA for goods sold or services rendered. It isrecommended that separate account; be maintained foreach interfund receivable.

Due From "A" Government. Amounts due to thereporting governmental unit from another govern-mental unit. These amounts may represent grants-in-aid, shared taxes, taxes collected for the reporting unitby another unit, loans, and charges for services

rendered by the reporting unit for another government.It is recommended that separate accounts be main-tained for each interfund receivable.

Due to Fiscal Agent. Amounts due to fiscal agents,such as commercial banks, for servicing a LEA'smaturing indebtedness.

Due to "A" Fund. A liability account used to indiateamounts owed by a particular fund to another fund inthe same LEA for goods and services rendered. It isrecommended that separate accounts be maintained foreach interfund receivable.

Due to "A" Government. Amounts owed by thereporting LEA to the named governmental unit. It isrecommended that separate accounts be maintained foreach interfund receivable.

Dues and Fees. Costs of memberships or assessments inprofessional or other organizations and payments topaying agents for services rendered.

E

Earned Interest. Interest collected or due. (II)

Educational TV. Providing television programs as a partof the instructional program of the school or LEA. Itincludes writing, programing, and directing educationaltelevision programs.

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Educational Media. Any device, content material,method, or experience used for teaching and learningpurposes. These include printed and nonprintedsensory materials. See also Audiovisual Aids. (VI I)

Elections. Services rendered in connection with anyLEA election, including elections of officers, bondelections (regardless of whether or not the bond issuespass), and budget and appropriation elections.

Elementary School. A school classified as elementaryby State and local practice and composed of any spanof grades not above grade eight. A nursery school orkindergarten school is included under this heading onlyif it is an integral part of a regularly established schoolsystem. (IV)

Employee Benefits. Compensation, in addition toregular salary, provided to an employee. This rnEyinclude such benefits as health insurance, life insur-ance, annual leave, sick leave, retirement, and socialsecurity.

Encumbrances. Purchase orders, contracts, and salaryor other commitments which are chargeable to anappropriation and for which a part of the appropria-tion is reserved. They cease to be encumbrances whenpaid or when actual liability is set up. (VII)

Endowment Fund. A fund from which the income maybe expended, but whose principal must remain intact.(II)

Entry. The record of a financial transaction in its

appropriate book of accounts. Also the act of record-ing a transaction in the books of accounts.

Equipment. Any instrument, machine, apparatus, orset of articles which (a) retains its original shape andappearance with use and (b) is nonexpendable; i.e., ifthe article is damaged or some of its parts are lost orworn out, it is usually more feasible to repair it than toreplace it with an entirely ne+v unit. (VII)

Equity. Equity is the mathematical excess of assetsover liabilities. Generally this excess is called FundBalance. (II B)

Estimated Revenue. If the accounts are kept on anaccrual basis, this term designates the amount ofrevenue estimated to accrue during a given periodregardless of whether or not it is all to be collectedduring the period; if the accounts are kept on a cashbasis, the term designates the amount of revenuesestimated to be collected during a given period. (II)

Estimated Uncollectible Tax Liens. That portion of taxliens receivable which it is estimated will never becollected. The account is shown as a deduction fromthe Tax Liens Receivable account on the balance sheetin order to arrive at the net amount of tax liensreceivable.

Estimated Uncollectible Taxes. A provision of taxrevenues for that portion of taxes receivable which it isestimated will not be collected. The account is shownon the balance sheet as a deduction from the TaxesReceivable account in order to arrive at the net taxesreceivable. Separate acccnts may be maintained onthe basis of tax roll year and/or delinquent taxes.

Evaluation. The process of ascertaining or judging thevalue or amount of an action or an outcome by carefulappraisal of previrv.s'iy specified data in light of thef.articular situation and the goals and objectives pre-viously established. (VII)

Expenditures. Charges incurred, whether paid or un-paid which are presumed to benefit the current fiscalyear. (VII)

Expenditure Character. The period of time which theexpenditure is presumed to benefit. Character classifi-cation of expenditures are: current expenditures,capital outlay, and debt service.

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Face Value. As applied to securities, this term desig-nates the amount of the liability stated in the securitydocument. ( I I )

Facilities Acquisition and Construction. Cr,nsists ofactivities involved with the acquisition of land andbuildings; remodeling buildings; the construction ofbuildings and additions to buildings; initial installationor extension of service systems and other built-inequipment; and improvements to sites.

Fact. An event, feat, or a piece of informationpresented as having objective reality.

Federal Revenue. Revenue provided by the FederalGovernment. Expenditures made with this revenueshould be identifiable as federally supported expendi-tures.

Federal Aid for Education. Any grant made by theFederal Government for the support of education. Seealso Grant, Public.

Fidelity Bond. A bond guaranteeing the LEA againstlosses resulting from the actions of the treasurer,employees, or other persons of the system. See alsoSurety Bond. (II)

Fidelity Bond Premiums. Expenditures for any bondsguaranteeing the LEA against losses resulting from theactions of the treasurer, employees, or other persons ofthe system. Also recorded here are any expenditures(not judgments) made in lieu of fidelity bonds.

Financial Accounting. The recording and reporting ofactivities and events affecting the money of an adminis-trative unit and its program. Specifically, it is con-cerned (1) with determining what accounting recordsare to be maintained, how they will be maintained, andthe procedures, methods, and forms to be used, (2)with recording, classifying, and summarizing activitiesor events, (3) with analyzing and interpretin :cordeddata, and (4) with preparing and initialing , :zirts andstatements which reflect conditions as of .,iven date,the results of operations for a 'specific period, and theevaluation of status and results of operation in terms ofestablished objectives. (VII)

Fiscal Period. Any period at the end of which a LEA

determines its financial condition and the results of itsoperations and closes its books. It is usually a year,though not necessarily a calendar year. The mostcommon fiscal period for school systems is July 1

through June 30. (VII M)

Fiscal Services. Consists of activities involved withmanaging and conducting the fiscal operations of theLEA. This Service Area includes budgeting, receivingand disbursing, financial accounting, payroll, internalauditing, and purchasing.

Fixed Assets. Land, buildings, machinery, furniture,and other equipment which the LEA intends to hold orcontinue in use over a long period of time. "Fixed"denotes probability or intent to continue use or ipossession, and does not indicate immobility of an/asset. ( I I)

Fixed Assets Group of Accounts. This self-balanci4group of accounts is used to account for fixed assetowned by the LEA. Fixed assets purchased underLease-Purchase agreements are entered in this groupafter the last payment is made.

Fixed Charges. Charges of a generally recurrent naturewhich are not readily allocated to other expenditurecategories. They consist of such charges as: schoolboard contributions to employee retirement, insuranceand judgments, rental of land and buildings, andinterest on current loans. They do not include pay-ments to public schoolhousing authorities or similaragencies. (1 I )

Floating Debt. Liabilities (except bonds) payable ondemand or at an early date; for example, accountspayable, bank loans, notes, or warrants. See CurrentLiabilities. (II)

Floor Area. See Gross Floor Area.

Food Delivery. Delivering prepared food, ready forserving, within the LEA.

Food Preparation and Dispensing Services. Concernedwith preparing and serving regular and incidental meals,lunches, or snacks in connection with school activities.It includes cooking, operating kitchen equipment,preparing salads, serving food, cleaning dishes, andstoring dishes and kitchen equipment.

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Food Services. Activities involved with the fojdservices program of the school or LEA. This ServiceArea includes the preparation and serving of regularand incidental meals, lunches, or snacks in connectionwith school activities, and the delivery of food.

Food Service Fund. Used to record financial transac-tions related to food service operations.

Full-Time Equivalency. The amount of time for a lessthan full-time activity divided by the amount of timenormally required in a corresponding full-time activity.Full-time equivalency usually is expressed as a decimalfraction to the nearest 10th. (VI M)

Full-Time Personnel. School employees whose posi-tions require them to be on the job on school daysthroughout the school year, at least the number ofhours the schools in the LEA are in session. (II)

Function. An action which contributes to a largeraction of a person, living thing, or created thing. (VIIM)

Fund. An independent accounting entity with its ownassets, liabilities, and fund balances. Generally, fundsare established to account for financing of specificactivities of an agency's operations. (VII)

Fund Accounts. All accounts necessary to set forth thefinancial operations and financial condition of a fund.(11)

Fund Balance. The excess of the assets of a fund overits liabilities and reserves except in the case of fundssubject to budgetary accounting where, prior to theend of a fiscal period, it represents the excess of thefund's assets and estimated revenues for the periodover its liabilities, reserves, and apprcoriations for theperiod. (II B)

Fund, Endowment. See Endowment Fund.

Fund, General. See General Fund.

Fund, Permanent School. Sae also Endowment Fundand Permanent School Fund.

Fund, Revolving. See Revolving Fund.

Fund, Sinking. See Sinking Fund. (V I I )

Fund, Special. See Special Fund.

Funded Debt. Same as Bonded Debt which is thepreferred term.

Funding. The conversion of judgments and otherfloating debt into bonded debt.

G

Gain or Loss on Sale of Investments. Gains or lossesrealized from the sale of bonds oI stocks; gainsrepresent the excess of the sales proceec's over cost orother basis at date of sale (cost less amortization ofpremium in the case of long-term bonds purchased at apremium over par value or co "t plus amortization ofdiscount on long-term bonds purchased at a discountunder par value); gains realized from sale of U.S.Treasury bills represent interest income. Losses repre-sent the excess of the cost or other basis at date of sale(as described above) over the sales proceeds.

General Administration. Consists of those activitiesinvolved in the overall general administrative respon-sibility for the entire LEA.

General Fund. Used to account for all transaction.;which do not have to be accounted for in anotherfund. Used to account for all ordinary operations of aLEA. (II M)

General Ledger. A book, file or other device in whichaccounts are kept to the degree of detail necessary,that summarizes the financial transactions of the LEA.General ledger accounts may be kept for any group ofitems of receipts or expenditures on which an adminis-trative officer wishes to maintain a close check. (II)

General Long-Term Debt Group of Accounts. Thisself-balancing group of accounts is used to account forgeneral long-term debt of a governmental unit.

Gift. Money received from a philanthropic foundation,private individual, or private organization for which norepayment or special service to the contributor is

expected. (II)

Grant, Private. See Gift.

Grant, Public. See Public Grant.

Grants-In-Aid. Grants-in-aid are contributions made bya governmental unit to a LEA and are not related tospecific revenue sources of the respective governmentalunit; i.e., general, or if related to specific revenuesources of the governmental unit, are distributed onsome flat grant or equalization basis. Grants-in-aid aremade by intermediate governments, State governments,and the Federal Government.

Gross Earnings. See Gross Income.

Gross Floor Area. The sum of the areas at each floorlevel included within the principal outside faces ofexterior walls, neglecting architectural setbacks orprojections. This includes all stories or areas whichhave floor surfaces with clear standing head room (6'6"minimum) regardless of their use. (II)

Gross Income. Revenues before deducting any ex-penses: an expression employed in accounting forindividuals, financial institutions, and the like. Also,gross revenue, or, incidental revenue of a manufactur-ing or trading enterprise. See Income.

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Guidance Personnel. Persons who have been assignedspecific duties and school time to carry on recognizedfunctions of the guidance programs in whole or in part.Classify here: counselors, deans, placement counselors,guidance specialists, and similar personnel. This refersto both certificated and noncertificated personnel. (II)

H

Health Personnel. Persons in the field of physical andmental health, such as physicians, psychiatrists, schoolnurses, dentists, dental hygienists, psychiatric socialworkers, and therapists, whose services are directedprimarily at individuals, although sometimes used forgroup activities.

Home-School Counselors. See Visiting Teachers.

Housing Aux:lority Obligations. A public schoolhousirgauthority is a public corporation or quasi-publiccorporation having power to perform one or more ofthe following functions: issue authority bonds forpublic school purposes; acquire and hold property forpublic school purposes; construct public school build-

ings; lease public school buildings to local public schooladministrative units, or transfer title to such units.Recorded under this account are all expenditures tosuch authorities, or agencies with similar functiulis,

Imprest System. A system for handling disbursementswhereby a fixed amount of money is set aside for aparticular purpose. Disbursements are made from timeto time as needed. At certain. intervals, a report isrendered of the amount disbursed, and the cash is

replenished for the amount of the disbursements,ordinarily by check drawn on the fund or funds fromwhich the items are payable. The total of cash plusunreplenished disbursements must always equal thefixed sum of cash set aside. (II)

Improvements Other Than Buildings. A fixed assetaccount which reflects the acquisition value of per.manent improvements, other than buildings, which addvalue to land. Examples of such improvements arefences, retaining walls, sidewalks, pavements, gutters,tunnels, and ,bridges. If the improvements are ourchased or constructed, this account contains thepurchase or contract price. If improvements are ob-tained by gift, it reflects the appraised value at time ofacquisition,

Income Taxes. Taxes levied on net income, that is, bygross income less certain deductions permitted by law.These taxes can be levied on individual, corporation orunincorporated businesses where the income is taxeddistinctively from individual income. Separate accountsmay be maintained for individual, corporation andunincorporated business income tax.

Indirect Costs. See Overhead, Indirect Expenses.

Indirect Expenses. Those elements of cost necessary inthe provision of a service which are of such nature thatthey cannot be readily or accurately identified with thespecific service. For example, the custodial staff mayclean corridors in a school building which is usedjointly by administrative, instructional, maintenance,and attendance personnel. In this case, a part ofcustodial salaries is an indirect expense of each serviceusing the corridors. However, it is impossible todetermine readily or accurately the amount of thesalary to charge each of these services. See also DirectExpenses. (II)

Indirect Services. Services for programs which cannotbe identified with a specific program. All supportservices programs are indirect services of instructionprograms.

Instruction. Instruction includes the activities dealingdirectly with the teaching of pupils. Teaching may beprovided for pupils in a school classroom, in anotherlocation such as in a home cr hospital, and otherlearning situations such as those involving cocurricularactivities; it may also be provided through some otherapproved medium such as television, radio, telephone,and correspondence.

Instructional Organization. A school or other organiza-tional arrangement which provides instruction of agiven type or types.

Instructional Personnel. Those who render direct andpersonal services which are in the nature of teaching.Included here are: teachers (including teachers ofhomebound), teaching assistants, teacher aides, secre-taries for teachers, special graders, substitute teachers,and clerks serving teachers only. Attendance personnel,health personnel, and other clerical personnel shouldnot be included as instructional personnel. (II)

Insurance and Bond P;emiums. Expenditures for alltypes of insurance coverage such as property, liability,fidelity, bond premiums, as well as the costs ofjudgments. Insurance for group health, workmen'scompensation, etc., are not charged here, but arerecorded under Personal ServicesEmployee Benefits.

Interest. A fee charged a borrower for the use ofmoney. See also Debt Service.

Interest and Receivables. Interest received on tempo-rary or permanent investments in U.S. Treasury bills,notes, bonds, savings accounts, time certificates ordeposit, notes, mortgages, or other interest-bearingobligations and dividends received on stocks.

Interest Receivable on Investments. The amount ofinterest receivable on investments, exclusive of interestpurchased. Interest purchased may be shown in aseparate account.

Interfund Transfers. Money which is taken from onefund under the control of the board of education and

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added to another fund under the board's control.Interfund transfers are not receipts or expenditures ofthe LEA. (II)

Intermediate Sourcesadministrative unit orLEAs and the State

of Revenue. An intermediatea political subdivision betweenthat collects revenue and dis

tributes it to LEAs in amounts different from thosewhich are collected within such systems. (II)

Internal Auditing. Activities involved with evaluatingthe adequacy of the internal control system; verifyingand safeguarding assets; reviewing the reliability ofthe accounting and reporting systems; and ascertain-ing compliance with established policies and procedures.

Internal Control. A plan of organization under whichemployees' duties are so arranged and records andprocedures so designed as to make it possible toexercise effective accounting control over assets, liabili-ties, revenues, and expenditures. For example, undersuch a system, the employees' work is subdivided sothat no one employee performs a complete cycle ofoperations. For instance, an employee handling cashwould not post tho accounts receivable records. Again,under such a system, the procedures to be followed aredefinitely laid down and such procedures call forproper authorizations by designated officials for allactions to be taken. (II)

Internal Information. Information prepared for anddistributed to learners and/or staff of a LEA. Itconsists of such activities as news-gathering, writing,editing, photography, and newspaper reproduction,transmitted vocally in Orson or by way of electronicequipment.

Inventory. A detailed list or record showing quantities,descriptions, values, and frequently, units of measureand unit prices of property on hand at a given time.Also, the cost of supplies and equipment on hand notyet distributed to requisitioning units. (II M)

Inventory of Stores for Resale. The value of goods heldby a LEA for resale rather than for use in its ownoperations.

Investment in General Fixed Assets. An account in theGeneral Fixed Assets group of accounts which repre-

sents the LEA's equity in general fixed assets. Thebalance of this account is subdivided according to thesource of funds which financed the asset acquisition,such as General Fund revenues, Special Revenue Fundrevenues, etc.

Investments. Securities and real estate held for theproduction of income in the form of interest, dividends, rentals, or lease payments. The account doesnot include fixed assets used in LEA operations. (II M)

Invoice. An itemized list of merchandise purchasedfrom a particular vendor. The list includes quantity,description, price, terms, date, and the like. (II B)

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J

Journal. The accounting record in which the details offinancial transactions are first recorded. (II B)

Journal Entry. See Entry.

Journal Voucher. A paper or form on which thefinancial transactions of the LEA are authorized andfrom which any or all transactions may be entered inthe books. By means of the journal voucher, thebudget may be, put into operation and expendituresmade to meet authorized obligations. Journal vouchersare also used to set up revolving funds and petty cashfunds, and for authorizing all entries in the bookkeep-ing system for which no other authorizations, such asdeposit slips, invoices, etc., are available. A form ofjournal voucher is a memorandum in the school boardminutes. (II)

Judgment. An amount to be paid or collected by theLEA as the result of a court decision. (II)

Judgments Against the LEA. Expenditures from cur-rent funds for all judgments (except as indicated)against the LEA that are not covered by liabilityinsurance, but are of a type that might have beencovered by insurance. Only amounts paid as the resultof court decisions are recorded here. Judgments againstthe LEA resulting from failure to pay bills or debtservice, are recorded under the appropriate expenditureaccounts as though the bills or debt service had beenpaid when due.

Judgments Payable. Amounts due to be paid by a LEAas the result of court decisions, including condemna-tion awards in payment for private property taken forput lic use.

Junior College. A postsecondary institution whichoffers the first 2 years of college instruction, fre-quently confers an associate degree, and does notconfer a bachelor's degree. The term "junior college" isoften used interchangeably with the term "communitycollege." See also Community/Junior College. (VII)

Junior High School. A separately organized and adirm-istered secondary school intermediate between theelementary and senior high schools. See Middle School.(V)

Junior-Senior High School. A secondary school orga-nized on a junior-senior basis and administered underone head as one unit. (V)

K

Kindergarten. A group or class that is organized toprovide educational experiences for children for theyear immediately preceding the first grade. A kinder-garten class may be organized as a grade of anelementary school or as part of a separate kindergartenschool. in some LEAs these groups may be calledpreprimary, junior primary, or primary. (VII)

L

Land. A fixed asset account which reflects the acquisi-tion value of land owned by a LEA. If land is

purchased, this account includes the purchase price andcosts such as legal fees, filling and excavation costs, andother associated improvement costs which are incurredto put the land in condition for its intended use. Ifland is acquired by gift, the account reflects itsappraised value at time of acquisition.

Land Acquisition and Improvement. Activities involvedwith the initial acquisition of sites and improvementsthereon.

Ledger. Contains all the accounts of a particular fundor all those detail accounts which support a particularGeneral Ledger account. See also General Ledger,Appropriation Ledger, Allotment Ledger. (I I B)

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Legal Services. Counseling services of a legal nature tothe board of education.

Levy (Verb). To impose taxes or special assets. (Noun).The total of taxes or special assessments imposed by agovernmental unit. (II)

Liabilities. Debt or other legal obligations arising out oftransactions in the past which are payable but notnecessarily due. Encumbrances are not liabilities; theybecoma liabilities when the services or materials forwhich the encumbrance was established have beenrendered or received. (1 I )

Liability Insurance. Expenditures for insurance cover-age of the LEA, or its officers, against losses resultingfrom judgments awarded against the system. Alsorecorded here are any expenditures (not judgments)made in lieu of liability insurance.

Library Books. Books purchased for general use andnot primarily for use in certain classes, grades, or otherparticular student groups. They include reference setsand dictionaries, but not textbooks and periodicals.(VII)

Loans. See Bond, Current Loan, Long-Term Loan, andShort-Term Loan.

Local Education Agency. An educational agency at thelocal level which exists primarily to operate schools orto contract for educational services. Normally, taxesmay be levied by such publicly operated agencies forschool purposes. These agencies may or may not becoterminous with county, city, or town boundaries.This term is used synonymously with the terms"school district," "school system," and "local basicadministrative unit."

Loans Receivable. Amounts which have been loaned topersons or organizations, including notes taken assecurity for such loans, where permitted by statutoryauthority. The account is usually carried only in theTrust and Agency Funds balance sheet.

Long-Term Loan. A loan which extends for more than5 years from the date the loan was obtained and is notsecured by serial or term bonds. ( I I )

Machine Data Processing. The use of machines anddevices in the storing of individual items of informationin a form by which they may be retrieved rapidly andaccurately, processed, and reproduced as singlelineitems, as lists of items or desired combinations withother items. (Vii)

Maintenance Personnel. Personnel on the school pay-roll who are primarily engaged in the repairing andupkeep of grounds, buildings, and equipment. (II)

Maintenance of Plant (Plant Repairs and Repair andReplacement of Equipment). Those activities which areconcerned with keeping the grounds, buildings, andequipment at their original condition of completenessor efficiency, either through repairs or by replacementsof property (anything less than replacement of a totalbuilding). (II)

Maintenance Warehouse. A building used primarily forhousing personnel and equipment engaged in activitiesconcerned with the repair and upkeep of grounds,buildings, and equipment, or with the manufacture ofequipment. This includes building facilities for car-penters, cabinetmakers, machinists, mechanics, paint-ers, plumbers, electricians, and groundskeepers.

Management Information System. A network of com-munication channels (voice, digital, etc.) that acquires,retrieves, and redistributes data used in managing theeducational process and in supporting the individualand collective decisionmaking process.

Matured Bonds Payable. Bonds which have reached orpassed their maturity date but which remain unpaid.

Matured Interest Payable. Interest on bonds which hasreached the maturity date but which remains unpaid.

Membership. A pupil is a member of a class or schoolfrom the date he presents himself at school and isplaced on the current roll until he permanently leavesthe class or school for one of the causes recognized assufficient by the State. The date of permanent with-drawal should be the date on which it is officiallyknown that the pupil has left school, and not neces-sarily the first day after the date of last attendance.

Membership is obtained by adding the total originalentries and the total reentries and subtracting the totalwithdrawals: it may also be obtained by adding thetotal number present and the total number absent.This term is also known as the number belonging.(VM)

Membership, Aggregate Days. See Aggregate DaysMembership.

Membership. Average Daily. See Average Daily Mem-bership.

Memorandum Accounting. An informal record of aLEA transaction that cannot be recorded under theregular financial accounts but for which a. record isdesired.

Middle/Junior High School. A term describing a schoolorganization between an elementary school and a highschool. This term is used for budget purposes, usually,when middle and junior high schools need to begrouped for planning. Any other type organization byany other name, falling between the elementary andhigh schools, should be included.

Middle School. A separately organized and adminis-tered school usually beginning with grades five or six ortheir equivalent and including at least three grades or 3years. Most middle schools presume, in ultimate plan ifnot in present reality, a 4-year high school for thegrades or years which follow, as is a 444 or 5-3.4 plan.(VI)

...

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N

Net Expenditure. The actual outlay of money by theLEA for some service or object after the deducton ofany discount', rebates, reimbursements, or revenueproduced by the service or activity. (II)

Net Income. The balance remaining to the LEA afterdeducting from the gross revenue for a given period alloperating eApense and income deductions during thesame period. See Revenue.

Noncategorical. This is a term usually applied torevenue and means revenue from any or all sourceswhich is not identifiable with specific expenditures;

i.e., it is general fund revenue which loses its identity asit is expended for objects relating to many ServiceAreas.

Nonpublic Junior College. An independent or church-related junior college not supported by public funds.

Nonpublic School. A school established by an indi-vidual, institution, or agency other than the State,subdivisions of the State, or the Federal Government,which usually is supported primarily by other thanpublic funds, and the operation of whose program restswith other than publicly elected or appointed officials.(VII)

Nonresident Student. A student whose legal residenceis outside the geographic area served by a specifiedschool, LEA, or institution. (VIR)

Nursery School. A separately organized and adminis-tered elementary school for groups of children duringthe year or years preceding kindergarten, which pro-vides education experiences under the direction ofprofessionally qualified teachers. (VM)

0

Object. The commodity or service obtained from aspecific expenditure. (VII)

Object Classification. A category of goods or servicespurchased.

Obligations. Amounts which the LEA will be requiredto meet out of its resources, including both liabilitiesand encumbrances.

Overhead Costs. Those elements of cost necessary inthe production of an article or the performance of aservice which are of such a nature that the amountapplicable to the product or service cannot be deter-mined accurately or readily. Usually they relate tothose objects of expenditures which do not become anintegral part of the finished product or service, such asrent, heat, light, supplies, management, supervision,and other similar items. (II M)

Overtime galaries. Gross salary paid to employees 9fthe LEA in positions of either a temporary orpermanent nature for work performed in addition tothe normal work perlocl_for. which the employee is

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compensated under Regular Salaries and TemporarySalaries. The terms of such payment for overtime is amatter of State and local regulation and interpretation.

P

Part-Time Personnel. Personnel who occupy positionswhich require less than full-time service. This includesthose employed full time for part of the school year,part time for all of the school year, and part time forpart of the school year. See also Personnel, Full-Time.III)

Pan-Time Pupil. A pupil who is carrying less than a fullcourse load as determined by the State or the LEA. (V)

Payments In Lieu of Taxes. Payments made out ofgeneral revenues by a governmental unit to the LEA inlieu of taxes it would have had to pay had its propertyor other tax base been subject to taxation by the localLEA on the same basis as other privately ownedproperty or other tax base. It would include paymentmade for privately owned property which is notsubject to taxation on the same basis as otherprivately owned property due to action by the govern-mental unit owning or responsible for the property.

Payroll. A list of individual employees entitled to pay,with the amounts due to each for personal servicesrendered. Payments are also made for such payroll-associated costs as Federal income tax withholdings,retirement and social security. (II)

Payroll Deductions and Withholding. Amounts de-ducted from employees' salarids for taxes required tobe withheld and for other withholding purposes.Separate liability accounts may be used for each typeof deduction.

Penalties and Interest on Taxes. Amount collected aspenalties for the payment of taxes after the due date ordates, and the interest charged on delinquent taxesfrom the due date to the date of actual payment. Aseparate account for penalties and interest on eachtype of tax may be maintained.

Pension System. A free retirement plan wherebypersons leaving service in the educational systembecause of age, disability, or length of service receivepayments from funds to which they have not con-

tributed. Payments may be either in a lump sum or inthe form of annuity. See also Retirement FundSystem. (H)

Permanent Seim LI Fund. Money, securities, or landwhich have been set aside as an investment for publicschool purposes of which the income, but not theprincipal, may be expended. These funds have beenderived, in most cases, from the sale of State land setaside by the Federal and/or State Government, rentsand royalties, and from surpl.....s revenue returned to theState by the Federal Government. In some instances,there may be endowment funds for individual schools.There may be nonexistent funds, also, which are legallyrecognized as an obligation. See Endowment Fund. (II)

Personnel, Administrative. Personnel on the schoolpayroll who are primarily engaged in activities whichhave as their purpose the general regulation, direction,and control of the affairs of the LEA that aresystemwide and not confined to one school, subject,or a narrow phase of school activity; e.g., super-intendent of schools, business manager, and accoun-tent. (II)

Personnel, Clerical. See Clerical Personnel.

Personnel, Full-Time. See Full-Time Personnel.

Personnel, Guidance. See Guidance Personnel.

Personnel, Health. See Health Personnel.

Personnel, Instructional. See Instructional Personnel.

Personnel, Maintenance. See Maintenance Personnel.

Personnel, Operational. See Operational Personnel.

Personnel, Part-Time. See Part-Time Personnel.

Petty Cash. A sum of money set aside for the purposeof paying small obligations for which the issuance of aformal voucher and check would be too expensive andtime-consuming. Also, a sum of money, either in theform of currency or a special bank deposit, set asidefor the purpose of making change or immediatePayments of comparatively small amount. See alsoim,?rest System. ( II M)

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Planning. The selection or identification of the overall,long-range goals, priorities, and objectives of theorganization, and the formulation of various courses ofaction to be followed in working toward achievingthose goals, priorities, and objectives. (VII)

Planning-Programing-Budgeting-Evaluation System(PPBES). A structured procedu. e for determining policyin the allocation of resources for accomplishment ofpriority programs; it emphasizes long-range planning,analytic evaluative tools, and economic rationality insetting goals and objectives and in the determination ofprograms. (VII)I )

Posting. The act of transferring to an account in aledger the detailed or summarized data contained inthe cash receipts book, check register, journal voucher,or similar books or documents of original entry. (II BM)

Premium, Bond. See Bond Premium.

Premium on Bonds Sold. That portion of the. salesprice of bonds in excess of their par value. Thepremium represents an adjustment of the interest rate.

Prepaid Expenses. Expenses entered in the accounts forbenefits not yet received. Prepaid expenses differ fromdeferred charges in that they are spread over a shorterperiod of time than deferred charges and are regularlyrecurring costs of operation. Examples of prepaidexpenses are prepaid rent, prepaid interest, and un-expired insurance premiums. An example of a deferredcharge is unamortized discounts on bonds sold. (II M)

Principal of Bonds. The face value of bonds. See alsoFace Value. (II)

Printing and Binding. Amounts paid for job printingand binding, usually following the specifications of theLEA. This includes the design and printing of formsand posters as well as printing and binding LEApublications, Preprinted standard forms purchased arenot charged here, but are recorded under Supplies andMaterials.

Printing, 13, )lication, and Duplicating Services. Pertainsto printing and publishing administrative publicationssuch as annual reports, school directories, and manuals.It also includes providing centralized :9rvices for

duplicating school materials and instruments such asschool bulletins, newsletters, and notices.

Private School or Nonpublic. A school established byan agency other than the State or its subdivisionswhich is primarily supported by other than publicfunds, and the operation of whose program rests withother than publicly elected or appointed officials. (V)

Professional. A term denoting the level of personnelwho have had extensive training in a particular line ofwork (usually a minimum of a bachelor's degree) andwho perform activities regarded as professional by thelaws and regulations established by the State or otherprofessional requirements recognized by the State.Examples are teachers, architects, lawyers, and nurses.(VII M)

Professional and Technical Services. Services of indi-viduals having extensive training in a particular line ofwork. This includes such services as those provided byarchitects, auditors, dentists and doctors, consultants,lawyers, tax collectors, data-processing service bureaus,and others.

Program. A pla -1 of activities and procedures designedto accomplish a predetermined objective: or set of alliedobjectives.

Programing. Preparation of a logical sequence ofoperations to be performed by a computer in solving aproblem or processing data; he preparation of codedinstructions and data for such a sequence. (VII)

Property Insurance. Expenditures for all forms ofinsurance covering the loss of, or damage to, propertyof the LEA from fire, theft, storm, or any other cause.Also recorded here are costs for appraisals of propertyfor insurance purposes.

Proprietary Accounts. Those accounts which showactual financial conditions and operations such asactual assets, liabilities, reserves, surplus, revenues, andexpenditures, as distinguished from budgetary ac-

counts. See also Budgetary Accounts. (II)

Prorating. The allocation of parts of a single expenditure to two or more different accounts. The allocationis made in proportion to the benefits which theexpenditure provides for the respective purposes orprograms for which the accounts were established. (II)

Public Grant. A contribution, either money or materialgoods, made by one governmental unit to another unitand for which the contributing unit expects norepayment. Grants may be for specific or generalpurposes.

Public Information. Information for public consump-tion through news media about the condition andprogress of education in the LEA. It consists of suchactivities as writing news releases, speaking to civicgroups or other assemblies, and appearing on localradio and television programs to discuss LEA programs.

Public Library. A library operated by publicly electedor appointed officials and open to the public. When thelibrary is supported wholly or partially by a publicschool the expense is charged to Community Services.

Public Relations. See Community Relations.

Public School. A school operated by publicly electedor appointed school officials in which the program andactivities are under the control of these officials andwhich is supported primarily by public funds. (II)

Public S ch o olhousing Authority. See HousingAuthority Obligations.

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Public Utility Services. Expenditures for services usu-ally provided by public utilities such as water, sewer-age, electricity, gas, and garbage. This includes thosesame services whether the utility company be public orprivate. Costs for telephone and telegraph are notcharged here, but are recorded under Communication.

Publicly Owned Quarters. Any public school facilityowned by a school administrative unk. or under itscontrol through a contract to purchase. r'ublic schoolfacilities designed for school purposes and owned by acounty or municipal unit of government, public school-housing authority, or similar agency are included.

Pupil Accounting. A system for collecting, computing,and reporting information about pupils. (V)

Pupil Activity Fund. Financial transactions related toschoolsponsored pupil activities and interscholasticactivities. These activities are supported in whole or inpart by income from pupils, gate receipts, and otherfund-raising activities. Support may be provi, Pd bylocal taxation.

Pupil Organization Membership. A school organizationfor pupils. Membership usually grants the pupil certainprivileges such as the right to be admitted to dances orathletic contests without charge or at a reduced rate.

Pupil, Part-Time. See Part-Time Pupil.

Pupil, Resident. See Resident Student.

Pupil, Transfer. See Transfer Pupil.

Pupil Transportation Services. Consists of those activi-ties involved with the conveyance of pupils to andfrom school otiv!cies, as provided :11 State law. Thisincludes trips between home and sc;lool, or trips toschool activities. This Service Area is E4,iicable to bothschools and L.EAs.

Pupil, Transported. See Transported Student.

Pupil, Tuition. See Tuition Student,

Purchase Order. A written request to a vendor toprovide material or services at a price set forth in theorder and is used as an encumberance document. (II B)

Purchased Services. Personal services rendered by per-sonnel who are not on the payroll of the LEA, andother services which may be purchased by the LEA.See also Contracted Services. (VII)

Purchasing. Acquiring supplies, equipment, and ma-terials used in school or LEA operation.

R

Real Property. See Real Estate.

Real Estate. Land, improvements to site, and buildings;real property. (V I I)

Rebates. Abatements or refunds. (II)

Receipts. This term means cash received. See Revenue.

Receiving and Disbursing. Accepting and paying outfunds. It includes the current audit of receipts, thepreaudit of requisitions or pi.--hase orders before theorder is placed to determine whether the amounts arewithin the budgetary allowances, and to determine thatsuch disbursements are lawful expenditures of theschool or LEA.

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Record Management. Establishing and maintaining anadequate and efficient system for controlling therecords of a LEA.

Records. A collection of information which is preparedby a person, unit, or organization for the use of thatperson, unit, or organization. (VII)

Recruitment and Placement. Employing and assigningpersonnel for the LEA.

Redemption of Principal. Expenditures from currentfunds to retire serial bonds, long-term loans of morethan 5 years, and short-term loans of less than 5years.

Refund. A return of an overpayment or over-

collection. The return may be either in the form ofcash or a credit to an account. (II B)

Refunding Bonds. Bonds issued to pay off bondsalready outstanding. (II)

Refund of Prior Year's Expenditures. Revenue comingfrom a refund of an expenditure made to a prior fiscalyear's budget. A refund of an expenditure made in thesame fiscal year's budget may be recorded in theappropriate expenditure account as a reduction of theexpenditure.

Register. A record for the consecutive entry of acertain class of events, documents, or transactions,with a proper notation of all of the required particu-lars. The form 9f register for accounting purposesvaries !rom a one column to a multicolumnar sheet ofspecial design whereon the entries are distributed,summarized, and aggregated usually for convenientposting to the accounts. (H)

Registered Warrant. A warrant which is registered bythe paying officer for future payment on account ofpresent lack of funds, and which is to LE; paid in theorder of its registration. In some cases, such warrantsare registered when issued; in others, when firstpresented to the paying officer by the holders. See alsoWarrant. (1 I )

Regular Day School Transportation. Transportation ofpupils attending regular day school. Separate accountsmay be maintained for transportation fees received

from patrons, and for transportation fees received fromother LEAs.

Regular Day School Tuition. Tuition for resident andnonresident pupils attending the regular day schools inthe LEA. Separate accounts may be maintained fortuition received from patrons, and for tuition receivedfrom other LEAs.

Regular Salaries. Full-time, part-time, and proratedportions of the gross salary costs for work performedby employees of the LEA who are considered to be inpositions of a permanent nature.

Reimbursement. The return of an overpayment orovercollection in cash. (II B)

Remodeling. Any major permanent structural improve-ment to a building. It includes changes of partitions,roof structure, or walls. Repairs are not included herebut are included under maintenance. (III)

Rentals Received. Money received from the rental ofschool property, real or personal, It does not includerental from real property held for income purposes;this revenus is recorded under the account Earnings onInvestments. Separate accounts may be maintained forreal property, textbooks, equipment, lockers, towels,and other.

Rentals Expended. Expenditures for the lease or rentalof land, buildings, and equipment for the temporary orlong-range use of the LEA. This includes bus and othervehicle rental when operated by LEA personnel, leaseof data processing equipment, lease-purchase arrange-ments, and similar rental agreements. Costs for singleagreements covering equipment as well as operators arenot charged here, but are recorded elsewhere underPurchased Services. See Transportation, Printing andBinding, Public Utility Services, Repairs & MaintenanceServices

Repairs. The restoration of a given piece of equipment,of a given building, or of grounds to original conditionof completeness or efficiency from a worn, damaged,or deteriorated condition. See also Maintenance ofPlant. (III )

Repairs & Maintenance Service. Repairs and mainte-nance services not provided directly by LEA personnel.

This includes contracts and agreements covering theupkeep of grounds, buildings, and equipment. Costsfor new construction, renovating and remodeling arenot charged here, but are recorded under Capital Out-lay.

Replacement of Equipment. A complete unit ofequipment purchased to take the place of anothercomplete unit of equipment which is to be sold,scrapped, or written off the record, and serving thesame purpose as the replaced unit in the same way.(1 I I)

Reports. A collection of information which is preparedby a person, unit, or organization for the use of someother person, unit, or organization.

Requisition. A written request to a purchasing officerfor specified articles or services. It is a request fromone school official to another school official, whereas apurchase order is from a school official (usually thepurchasing officer) to a vendor. (II B)

Research. Systematic study and investigation in somefield of knowledge, undertaken to establish facts orprinciples. (VII)

Research, Planning, Development, and Evaluation. Theactivities involved with research, planning, develop-ment, and evaluation functions for the LEA.

Reserve. An amount set aside for some specifiedpurpose. (II B)

Reserve for Encumbrances. A reserve representing thesegregation of a portion of a fund balance to providefor unliquidated encumbrances. Separate accounts maybe maintained for current and prior year encum-brances.

Reserve for Inventory. A reserve which represents thesegregation of a portion of a fund balance to indicatethat assets equal to the amount of the reserve are tiedup in inventories of supplies and inventories on handand not issued to requesting units.

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Reserve for, "A" (Special Purposes). A reserve whichrepresents the segregation of a portion of a fundbalance to indicate that assets equal to the amount of

the reserve are tied up for the named special pur-pose.

Resident Student. A student whose legal residence iswithin the geographic area served by a specified school,LEA, or institution. (V R)

Restricted Grants -in -Aid. Revenues received as grantsby the LEA which must be used for a categorical orspecific purpose. If such money is not completely usedby the LEA, it usually must be returned to thegovernment unit. Separate accounts may be maintainedfor general source grants-in-aid which are not related tospecific revenue sources of the governmental unit, andfor those assigned to specific source of revenue asappropriate.

Retirement Fund System. A plan whereby a fund ofmoney, built up through contributions from partici-pants and other sources, is used to make regularpayments to those who retire from service in theeducational system by reason of age, disability, orlength of service. See also Pension Systems.

Revenues. Additions to assets which do not increaseany liability, do not represent the recovery of anexpenditure, do not represent the cancellation ofcertain liabilities without a corresponding increase inother liabilities or a decrease in assets, and do notrepresent contributions of fund capital in Food Ser-vice and Pupil Activity funds.

Revenues Collected in Advance. A liability accountwhich represents revenues collected before they be-come due.

Revolving Fund. A fund provided to carry out a cycleof operations. The amounts expended from the fund arerestored from earnings from operations or by transfersfrom other funds so that it remains intact, either in theform of cash, receivables, inventory, or other assets.These funds are also known as reimbursable funds.

S

Salary. The total amount regularly paid or stipulated tobe paid to an individual, before deductions, forpersonal services rendered while on the payroll of theLEA. Payments for sabbatical leave are also consideredas salary.

138

Sale of Fixed Assets. Proceeds from the sale of schoolproperty. Separate accounts may be maintained forsale of real property and for sale of equipment.

Sales and Use Tax. Taxes imposed upon the sale andconsumption of goods and services. It can be imposedeither as a general tax on the retail price of all goodsand/or services sold within the LEA jurisdiction withfew or limited exemptions, or as a tax upon the sale orconsumption of selected goods and services. Separateaccounts may be maintained for general sales tax andfor selective sales taxes.

Sales of Bonds. Proceeds from the sales of bonds,except that if bonds are sold at a premium, only thoseproceeds representing the par value of the bonds wouldbe included. The proceeds from the sale of bondsconstitute a revenue of the Capital Projects Fund butnot of the LEA as a whole.

Sales to Adults. Money received from adults for sale offood products and services. Regular meals or foodproducts sold to staff can be segregated from specialdinners and affairs for special purposes by maintainingseparate accounts.

Sales to Pupils. Money received from pupils for sale offood products and services. Better financial control andanalysis and reporting for Federal and State reimburse-ments can be obtained by maintaining separateaccounts by Type of Sales, such as type of lunch sales,milk program sales, and other sales.

School. A division of the LEA consisting of a group ofpupils composed of one or more -grade groups, °organ-ized as one unit with one or more teachers to giveinstruction of a defined type, and housed in a schoolplant of one or more buildings. More than one schoolmay be housed in one school plant, as is the case whenthe elementary and secondary programs are housed inthe same school plant. (VII)

School Administration. Consists of those activitieswhich have overall administrative responsibility for asingle school or a group of schools.

School Bus. A vehicle used for transporting studentswith a manufacturer's rated seating capacity of 12 ormore. (Seating capacity figures on the basis of at least13 inches of seat space per pupil.) (Ill M)

School District. See School System.

School, Elementary. See Elementary School.

School, Middle/Junior High. See Middle/Junior HighSchool.

School Plant. The site, buildings, and equipmentconstituting the physical facilities used by a singleschool or by two or more schools sharing the use ofcommon facilities. (1 I I )

School Plant, Combined Elementary and Secondary. Aschool plant which houses both an elementary schooland a secondary school. (III)

School, Private or Nonpublic. See Private School.

School, Public. See Public School.

School, Secondary. See Secondary School.

School, Senior High. See Senior High School.

School Site. The land and all improvements to the site,other than structures, such as grading, drainage, drives,parking areas, walks, plantings, play courts, and play-fields. (Ill)

School, Summer. See Summer School.

School System. All the schools and supporting servicesoperated by the board of education, a specifiedadministrative unit or by another organization wi.ichoperates one or more schools. See also Local EducationAgency. (V)

School Term. A prescribed span of time when school isopen and the pupils are under the guidance anddirection of teachers. See also Term. (VII)

School, Vocational or Trade High. See Vocational orTrade High School.

Secondary School. A school comprising any span ofgrades beginning with the next grade following anelementary or middle school and ending with or belowgrade 12. (VI)

Securities. Bonds, notes, mortgages, or other forms ofnegotiable or nonnegotiable instruments. (1 I )

Senior High School. A secondary school offering thefinal years of high school work necessary for gradua-tion and invariably preceded by a junior high school.(VI)

Serial Bonds. Issues redeemable by installments, eachof which is to be paid in full, ordinarily out of revenuesof the fiscal year in which it matures, or revenues ofthe preceding year. (III

Service Area Direction. Pertains to directing andmanaging the Service Area of any function. It includesactivities of all those engaged in managing and directinga given area. (IV)

Shared Revenue. Revenue which is levied by onegovernmental unit but shared, usually in proportion tothe amount collected, with another unit of governmentor class of governments.

Shared Tax. See Shared Revenue.

Short-Term Loans. A loan payable in 5 years or less,but not before the end of the current fiscal year. Seealso Current Loans. (I )

Single School. Activities vv!-.:ch extend or apply to onlya single Attendance Area.

Sinking Fund. Money wh:,:n has been set aside orinvested for the definitr purpose of meeting paymentson debt at some futhre time. It is usually a fund set upfor the purpose of accumulating money over a periodof years in order to have money available for theredemption of long-term obligations at the date ofmaturity. (VII I

139

Social Work. Activities concerned with the preventionof, or solution to, those personal, social, and emotionalproblems of individuals which involve such relation-.ships as those of the family, school, and community.(IV M)

Source of Funds. Identifies the agency, governmentalor otherwise, which appropriates the money used by alocal school or LEA.

Special Assessments. See Assessments, Special.

Special Cost Centers. A dimension for accumulating

additional details on costs of a segment of an existingcost center or for accumulating costs of a temporaryprogram or project for evaluative purposes. See alsoCost Center.

Special Education. Consists of direct instructionalactivities designed primarily to deal with the followingpupil exceptionalities: (1) physically handicapped; (2)eMotionaily disturbed; (3) culturally different includ-ing compensatory education; (4) mentally retarded; and(5) mentally gifted and talented. The Special EducationServices Area includes Preprimary, Elementary, Secon-dary, Postsecondary, or Adult/Continuing Education.

Special Fund. Any fund other than the general fund.

Special Revenue Fund. Used to account for moneyappropriated or granted for special purposes. Uses andlimitations are specified by the legal authority estab-lishing the fund and, generally, the resources of thisfund cannot be diverted to other uses.

Staff Accounting. Services rendered in connection withthe systematic recording, filing, and storing of informa-tion related to staff members employed by the LEA.

Staff Services. The activities concerned with recruiting,accounting, placing, transfering, and training staffemployed by a LEA.

State Aid for Education. Any grant made by a Stategovernment for the support of education. See alsoGrant, Public.

Statistical Services. Services concerned with collecting,organizing, summarizing, analyzing, and disseminatingeducational data pertinent to various educational inter-ests, including pupils, staff, instruction, facilities, andfinance. (VII)

Stores. Supplies, materials, and equipment in storerooms subject to requisition. (II)

Student-Body Activities. Direct and personal servicesfor public school pupils, such as interscholasticathletics, entertainment, publications, clubs, band, andorchestra, that .are managed or operated generally bythe student body under the guidance and direction ofadults or a staff member, and which are not part of theregular instructional program. See Cocurricu /ar Activi-ties. (VIM)

140

Subsidiary Accounts. Related accounts which supportin detail the summaries recorded in a controllingaccount. See also Clearing Accounts. (1 I )

Summer School. The name usually applied to theschool session carried on during tha period between theend of the regular school term and the beginning of thenext regular school term. (V M)

Summer TermDay. A division of the school yearwhich usually begins in June and ends in August andpupils attend the day sessions.

Summer TermEvening. A division of the school yearwhich usually begins in June and ends in August andpupils attend the evening sessions.

Summer School Transportation Fees. Money receivedfor transportation of pupils attending summer school.Separate accounts may be maintained for transporta-tion fees received from patrons, and for transportationfees received from other LEAs.

Summer School Tuition. Money received as tuition forpupils attending summer school classes. Separate ac-counts may be maintained for tuition received forresidents, and for tuition received for nonresidents.

Supply. A material item of an expendable nature thatis consumed, worn out or deteriorated in use; loses itsidentity through fabrication or incorporation into adifferent or more complex unit or substance. (VII)

Supporting Services. Activities which provide adminis-trative, technical, and logistical support to a program.Supporting Services exist tc sustain and enhance thefulfillment of the objectives of other major functions.

Surety Bond. A written promise to pay damages or toindemnify against losses cz ised by the party or partiesnamed in the document, through nonperformance orthrough defalcation; for example, a surety bond givenby a contractor or by an official handling cash orsecurities. (It)

Surplus. The excess of the assets of a fund over itsliabilities; or if the fund also has other resources andobligations, the excess of resources over obligations.The term should not be used without a properlydescriptive adjective unless its meaning is apparent

from the context. See also Unappropriated Surplus.(II)

Systems Analysis. Activities involving the search for anevaluation of alternatives which are relevant to definedobjectives, based on judgment, and, wherever possible,on quantitative methods; the development of dataprocessing procedures or application to electronic dataprocessing equipment. (V I I )

Systemwide. Activities which extend or apply to all ofthe schools in the LEA or to all of the schools in theLEA where the activities apply.

Tax Anticipation Notes. Notes (sometimes called "war-rants") issued in anticipation of collection of taxes,usually retirable only from tax collections, and fre-quently only from the tax collections anticipated withtheir issuance. The proceeds of tax anticipation notesor warrants are treated as current loans if paid backfrom the tax collections anticipated with the issuanceof the notes. (I!)

Tax Assessment and Collection. Activities concernedwith assigning and recording equitable values to realand personal property, assigning a millage rate (dollarsyield per thousand dollars), and receiving yield in acentral office.

Tax Liens Receivable. Legal claims against propertywhich have been exercised because of nonpayment ofdelinquent taxes, interest, and penalties. The accountincludes delinquent taxes, interest and penalties receiv-able up to the date the lien becomes effective plus thecost of holding the sale.

Taxes. Compulsory charges levied by a governmentalunit for the purpose of financing services performedfor the common benefit. The term includes licensesand permits. It does not include special assessments.See also Assessment, Special. ( I I )

Taxes Levied for Other Governmental Units. Taxeslevied by a governmental unit as agent for anothergovernmental unit, and which are to be collected, heldin trust, and disbursed to the proper unit. They consistof both current and delinquent taxes and may alsoinclude tax liens. No allowance for estimated uncollect-

141

ible taxes is set up against these taxes because the LEAis usually liable only for the amount actually collected.It is recommended that separate accounts be main-tained for each interfund receivable.

Taxes Receivable. The uncollected portion of taxeswhich a LEA or governmental unit has levied andwhich has become due, including any interest orpenalties which may be accrued. Separate accountsmay be maintained on the basis of tax roll year and/orcurrent and delinquent taxes.

Teacher. A person who instructs students. (IV R)

Teacher Aide. I. 7erson who assists a teacher withroutine activities associated with teaching, those activi-ties requiring minor decisions regarding students, suchas monitoring, conducting rote exercises, operatingequipment, and clerking.

Teaching Assistant. A person who performs the day-to-day activities of teaching students under the super-vision of a teacher. The teaching assistant does notmake any diagnostic or long-range evaluative decisionsregarding students taught. The person may or may notbe certificated but has completed at least 2 years offormai education preparatory for teaching or theequivalent in experience or training. (IV R)

Technical Education. Technical Education is concernedwith that body of knowledge organized in a plannedsequence of classroom and laboratory experiences,usually at the postsecondary level, to prepare pupils fora cluster of job opportunities in a specialized field ofteciwN.ology. The program of instruction normallyincludes the study of the underlying sciences andsupporting mathematics inherent in a technology, aswell as methods, skills, materials, and processes com-monly used and services performed in the technology.Technical education prepares for the occupational areabetween the skilled craftsman and the professionalperson such as the doctor, the engineer, and thescientist. (VI M)

Temporary Salaries. Full-time, part-time, and proratedportions of the gross salary costs for work by em-ployees of the LEA who are hired on a temporary orsubstitute basis to perform work in positions of eitheromporary or permanent nature.

Term. A prescribed span of time when school is openand the pupils are under the guidance and direction ofteachers. IV)

Term Bonds. Bonds of the same issue, usually maturingall at one tirr ?. and ordinarily to he retired from sinkingfunds. ( I I;

Textbooks. Books obtained primarily for use in certainclasses, grades, or other particular student groups ratherthan for general school use. (VII)

Trade Discount. An allowance usually varying inpercen age with volume of traosactions, made to thoseengaged in certain businesses and allowable irrespectiveof the time when the accouni is paid. The term shouldnot be confused with "cash discount." (II)

Transfer From Other Funds. Money received uncondi-tionally from another fund without expectation ofrepayment. Such monies are revenues of the receivingfund, but not of the LEA as a whole. Separateaccounts may be maintained for specific funds. (II)

Transfer Pupil. A pupil who severs his connection witha class, grade, or school in order to transfer to anotherclass, grade, or school. This includes pupils whotransfer or are promoted frorri an elementary school toa secondary school or from a junior high school to asenior high school. (V)

Transfer Voucher. A voucher authorizing posting ad-justments and transfers of cash or other resourcesbetween funds or accounts. (II)

Transfers Between Funds. See Interfund Transfers.

Transportation Fees. Money received for transporta-tion of pupils.

Transported Student. A pupil who is transported toand from school at public expense. (V)

Travel. Costs for transportation, meals, hotel, andother expenses associated with traveling on business forthe LEA. Payments for per diem in lieu of reimburse-ments for subsistence (room and board) also arecharged here.

142

Trial Balance. A list of the balances of the accounts ina ledger kept by double entry, with the debit andcredit balances shown in sepElral columns. If the totalsof the debt and credit columns are -equal or their netbalance agrees with a contraing account, the ledgerwhich the figures are taken is said to be "in balance."(II)

Trust and Ageacy Funds. Used to account for moneyand property held in trust by a LEA for individuals,government entities or nonpublic organizations. ATrust Fund is usually in existence over a longer periodof time than an Agency Fund. Primarily, AgencyFunds function as a clearing mechanism for cashresources collected by the LEA, held for a shortperiod, and then disbursed to authorized recipients.

Tuition. Money charged by a LEA or educationalinstitution for a period of time, not including specialcharges as for'bboks and laboratory fees. (VII)

Tuition Student. A pupil for whom tuition is paid.(VII)

Tuition Expended. Expenditures to reimburse othereducational agencies for services rendered to studentsresiding in the legal boundaries described for the,paying LEAs, both within and outside the State of thepaying LEA.

Tuition Received. Money received from pupils, theirparents, welfare agencies or other LEAs f )t- educationprovided in the schools of the LEA.

Two-Year Branch College. A division of an institutionof higher education, which offers the first 2 years ofcollege instruction and which is located in a com-munity different from that of its parent institution andbeyond a reasonable commuting distance from themain campus of the parent institution. (VI)

Two-Year Technical Institute. An institution offeringinstruction primarily in one or more of the tech-nologies at the postsecondary instructional level. (VI)

U

Unamortized Discounts on Bonds Sold. That portionof the excess of the face value of bonds over theamount received from their sale which remains to be

written offbonds.

Periodically over the life of the

Unamortized Discounts on Investments. The excess ofthe face value of securities over the amount paid forthem which has not yet been written off.

Unamortized Premiums on Bonds Sold. An accountwhich represents that portion of the excess of bondproceeds over par value and which remains to beamortized over the remaining life of such bonds.

Unamortized Premiums on Investments. The excess ofthe amount paid for securities over the face valuewhich has not yet been amortized. Use of this accountis normally restricted to long-term investments.

Unappropriated Surplus. That portion of the surplus ofa given fund which is not segregated for specificpurposes. (II 13)

Unencumbered Balance of Appropriation of Allot-ment: That portion of an appropriation or allotmentnot yet expended or encumbered; the balance remain-ing after deducting from the appropriation or allot-ment the accumulated expenditures and outstandingencumbrances.

Unexpended Balance of Appropriation or Allotment.That portion of an appropriation or allotment whichhas not been expended; the balance remaining afterdeducting, from the appropriation or allotment theaccumulated expenditures.

Unit Cost. Expenditures.for a function, activity, orservice divided by the total number of units for whichthe function, activity, or service was provided. (III MI

Unliquidated Encumbrances. Encumbrances outstand-ing. See also Encumbrances. (II B)

Unrestricted Grants-In-Aid. Revenues received as grantsby the LEA which can be used for any legal purposedesired by the LEA without restriction.

a

v

Vehicle. A conveyance used to transport persons orobjects. (Ill M)

Vehicle, Privately Owned. A vehicle owned by thecontractor; a vehicle partially owned by the contractor(for instance, the contractor may own the chassis andthe school own the body); or a car used by a parentwho is paid from public funds to transport his ownchildren and sometimes other children to schools. (III)

4

Vehicle Servicing and Maintenance. Pertain; to main-taining vehicles in as nearly new condition and originalefficiency as possible. It includes repairing vehicles,replacing vehicle parts, cleaning, painting, greasing,fueling, preventive maintenance, and inspection ofvehicles for safety.

Visiting Teacher (Home-School Counselor). A personwho visits pupils and parents in the home, assisting theschool and the home in solving the personal adjustmentproblems of pupils. See Social Work. (IV M)

Viicational or Trade High School. A secondary schoolwhich is separately organized under a principal for thepurpose of offering training in one or more skilled orsemiskilled trades or occupations. It includes suchschools whether federally aided or not. Departmentsof other types of high schools which offer com-mercial, agricultural, home economics, industrialarts, and other applied art courses would not beconsidered as separately organized vocational highschools. (II)

143

Vocational and/or Technical School. A school which isseparately organized under the direction and manage-ment of an administrator (such as a principal) for theprimary purpose of offering education and training inone or more semiskilled, skilled, or technical occupa-tions. (VI M)

Voucher. A document which authorizes the paymentof money and usually indicates the accounts to becharged. (1 I )

Voucher System. A system which calls for the prepara-tion of vouchers for transactions involving paymentsand for the recording of such vouchers in a specialbook of original entry known as a voucher register inthe order in which payment is approved. (II)

Vouchers Payable. Liabilities for goods and servicesreceived as evidenced by vouchers which have been

preaudited and approved for payment but which have Warrants Payable. Warrants issued by the school board

not been paid. but not yet signed by the treasurer. (II B)

Warehouse Inventory Adjustment. Amounts reflectedas a deficit as a result of an audit or count of itemsheld in a stores or warehouse inventory.

Warehousing and Distribution. Pertains to the opera-tion of the activities of receiving, storing, and distribut-ing supplies, equipment, materials, and mail. It includesthe pickup and transporting of cash from schoolfacilities to the central administrative office, or bank,for control and/or deposit.

Warrant. An order drawn by the school board to theLEA treasurer ordering him to pa'y a specified amountto a payee named on the warrant. Once signed by thetreasurer the warrant becomes a check payable by abank named on the warrant by the treasurer. B M)

Warrant Interest. Interest paid on registered warrants.(II)

144

Welfare Activities. Providing for personal needs ofindigent persons, when such aid is restricted to indigentpersons, and for providing services in connection withdisaster relief. (IV M)

Withholding. The process of deducting from a salary orwage payment an amount, specified by law or regula-tion, representing the estimated Federal or Stateincome tax of the individual that the employer mustpay to the taxing authority.

Withholding Taxes. See Withholding.

Work Order. A written order authorizing and directingthe performance of a certain task, issued to the personwho is to direct the work. Among the informationshown on the order are the nature and location of thejob, specifications of the work to be performed, and ajob number which is referred to in reporting theamount of labor, materials, and equipment used. (II)

Appendix C

ACKNOWLEDGMENTS

Development of this handbook was possible through the efforts of many people in many fields of work. It isobviously impossible to list the name of each person who made an important contribution. The organizations andpeople listed below, however, deserve special recognition.

The National Steering Committee and alternates for nine professional organizations appointed by the executivesecretary of each organization which met, discussed, and collaborated on the various phases of the handbookdevelopment follow:

ORGANIZATION

American Association of SchoolAdministrators

American Economic Association

Association of Educational DataSystems

American Institute of CertifiedPublic Accountants

Association of School BusinessOfficials

REPRESENTATIVE ALTERNATE

Mr. Barry MorrisAsst. Supt. for FinanceFairfax County SchoolsVirginia

Prof. Henry M. LevinDept. of EducationStanford UniversityPalo Alto, California

Mr. Russell E. WeitzDirector, Data Processing DivisionNational Education AssociationWashington, D.C.

Mr. Joe FitzmeyerAssistant Vice PresidentAmerican Institute of Certified Public

AccountantsNew York, New York

Mr. James S. McAllister, CPAChairman, ASBO He3earchCommittee in Pt gram Budgetingc/o Phoenix Union H.S. SystemPhoenix, /Ozone

Mr. Harold A. Wheeler, CPAChairman, ASBO Research Committe

in Accounting & Financedo Dade County Board of Public

InstructionMiami, Florida

146

Dr. William J. EllenaAssociate SecretaryAASA

Prof. Ernest BartellDept. of EconomicsUniv. of Notre DameSouth Bend, Indiana

Mr. Richard NewmanSystems AnalystMilwaukee Public SchoolsMilwaukee, Wisconsin

Mr. Fred M. OliverHaskins and SellsSalt Lake City, Utah

Dr. William H. CurtisPPBES Research Project DirectorResearch Corp. of ASBOChicago, Illinois

Prof. Sam B. Tidwell, CPADept..of Business Admin.Michigan Technological UniversityHoughton, Michigan

ORGANIZATION

Council of Chief State SchoolOfficers

National Education AssociationResearch Department

National Education AssociationRural Education

REPRESENTATIVE ALTERNATE

Mr. Paul R. FillionDivision of AdministrationState Department of EducationConcord, New Hampshire

Mr. Philip S. ShawComptrollerState Department of EducationTallahassee, Florida

Dr. Eugene P. Mc LooneAssistant DirectorNational Education AssociationWashington, D.C.

Dr. William J. EmersonSuperintendent of SchoolsOakland Count oatsPontiac, Michigan

National School Boards Association Mr. Freeman H. VaughnDirector of Special SeriiicesNational School Boards AssociationEvanston, Illinois

None

None

None

None

None

A group of social scientists, through Notre Dame University, made a study of the interests of academicresearchers and made recommendations for the revision of Handbook II. This committee included the following:

Rev. Ernest Bartell, ChairmanDepartment of EconomicsUniversity of Notre DameSouth Bend, Indiana

Dr. Charles S. BensdnSchool of EducationUniversity of California

at BerkeleyBerkeley, California

Dr. Samuel BowlesDepartment of EconomicsHarvard UniversityCambridge, Massachusetts

Dr. Mary Jean BowmanDepartment of EconomicsUniversity of ChicagoChicago, Illinois

146

Prof. Arthur CorazziniDepartmenrarconomicsDartmouth CollegeHanover, New Hampshire

Dr. H. Russell Cort, Jr.Senior AuociatiPlanning Research CorporationWashington, D.C.

Dr. William DavissonDepartment of EconomicsUniversity of Notre DameSouth Bend, Indiana

Dr. Robert A. FeldmesserDepartment of SociologyDartmouth CollegeHanover, New Hampshire

wg

Mr. Alvin K. KlevorickDepartment of EconomicsPrinceton UniversityPrinceton, New Jersey

Dr. Henry M. LevinResearch AssociateThe Brookings InstitutionWashington, D.C.

Mr. Allan R. LichtenbergerNational Center for Educational

StatisticsU.S. Office of EducationWashington, D.C.

Dr. Paul MarshScience Teaching CenterMassachusetts Institu , of

TechnologyCambridge, Massachusetts

Dr. Eugene McLooneSchool of EducationStanford UniversityPalo Alto, California

Dr. George PidotDepartment of EconomicsDartmouth CollegeHanover, New Hampshire

Dr. Richard PowersNational Center for Educational

StatisticsU.S. Office of EducationWashington, D.C.

Dr. Ernst StromsdorferInstitute for Research on

Human ResourcesThe Pennsylvania State UniversityUniversity Park, Pennsylvania

Mr. David M. WaxJoint Center for Urban Studies of

the Massachusetts Institute ofTechnology and Harvard University

Cambridge, Massachusetts

Dr. Finis WelchDepartment of EconomicsSouthern Methodist UniversityDallas, Texas

The following persons conferred and made recommendations on approaches to program accounting for publicschools as a contribution to this handbook at the Center for the Study of Evaluation of Instructional Programs,University of California at Los Angeles:

Marvin C. AlkinCenter for the Study of Evaluation

of Instructional ProgramsSchool of EducationUniversity of CaliforniaLos Angelus, California

Paul BethkeDivision of Organization

and ManagementState Department of EducationDenver, Colorado

Glenn C. BoerrigterOrganization and Administration

Studies BranchU.S. Office of EducationWashington, D.C.

147

Joseph BrooksCaliforr.:1 School Boards

AssociatonSacramento, California

Oliver S. BrownPPBS ProjectPhiladelphia School DistrictPhiladelphia, Pennsylvania

John W. BuckleyGraduate School of Business

AdministrationUniversity of CaliforniaLos Angeles, California

Cordelia J. BuckmannMt. Diablo Unified School DistrictConcord, California

George A. ChambersCollege of EducationUniversity of IowaIowa City, Iowa

James H. CorsonCalifornia Association of

School AdministratorsBurlingame, California

William H. CurtisResearch Corporation of the

Association of SchoolBusiness Officials

Chicago, Illinois

George EisentrautState Department of Public

I nstructionOlympia, Washington

Guy L. FountainOffice of the ComptrollerState Department of EducationTallahassee, Florida

Frederick G. FoxBudget DivisionLos Angeles. City SchoolsLos Angeles, California

Joseph E. HaringDepartment of EconomicsOccidental CollegeLos Angeles, California

Edward HarperDivision of Administration

and FinanceState Department of EducationSacramento, California

La Mar L. HillEl Monte Union High School

DistrictEl Monte, California

John A. HulbertState of California Advisory

Commission on School DistrictBudgeting and Accounting

Sacramento, California

148

Stephen J. KnezevichAmerican Association of

School AdministratorsWashington, D.C.

Sam LawsonBoard of EducationSt. Louis School SystemSt. Louis, Missouri

Allan R. LichtenbergerNational Center for Educational

StatisticsU.S. Office of Education /DHEWWashington, D.C.

Erick L. Lindman, ChairmanCenter for the Study of Evaluation

of Instructional ProgramsSchool of EducationUniversity of CaliforniaLos Angeles, California

Charles A. LipotDoctoral ProgramSchool of EducationUniversity of CaliforniaLos Angeles, California

Donald W. LuceOakland Unified School

DistrictOakland. Calitornia

George E. McMullenBudget DivisionLos Angeles City SchoolsLos Angeles, California

Dale H. ScottSanta Clara County Taxpayers'

Association, Iric.Santa Clara, California

Charles 0. SmoutPinellas County School SystemClearwater, Florida

Jim WatersState Department of EducationSacramento, California

The following regional representatives of each of the nine cooperating organizations appointed by the executivesecretary and Office of Education representatives, met and made recommendations in the 10 regions of the Office ofEducation:

Mr. William Logan, Jr.Regional CommissionerOffice of Education/DHEWJ. F. Kennedy Federal BuildingBoston, Massachusetts

Mr. Allan R. LichtenbergerNational Center for Educational

StatisticsU.S. Office of Education/DHEWWashington, C C.

Dr. Charles T. RobertsNational Center for Educational

StatisticsU.S. Office of Education/DHEWWashington, D.C.

Mr. Joseph J. FranchinaProgram Officer, Title IVOffice of Education/DHEWJ. F. Kennedy Federal BuildingBoston, Massachusetts

Mr. Frank A. AltieriSupervisor of FinanceNew Haven Board of EducationNew Haven, Connecticut

Mr. George A. BarbaritoAssistant Superintendent, BusinessNew Haven Board of EducationNew Haven, Connecticut

Mr. Kenneth 0. BealData Processing CoordinatorPortland Public SchoolsPortland, Maine

Mr. Henzo T. BozzonettiChief, Hospital Branch, OGAP, OASCOffice of the Secretary/DHEWWashington, D.C.

Region IBoston

149

Mr. Alton S. CavicchiExecutive SecretaryMassachusetts Association of

School CommitteesBoston, Massachusetts

Mr. Stanley R. CorcesFiscal Research AssociateDade County Public SchoolsMiami, Florida

Mr. Troy EarhartDirector of Program BudgetingDade County Public SchoolsMiami, Florida

Mr. Stewart R. EssexCoordinator of School Plant PlanningRoger Williams BuildingProvidence, Rhode Island

Mr. Michael C. ForrestChief, Non Profit Branch, OGAP, OASCOffice of the Secretary/DHEWWashington, D.C.

Mr. Roy S. FoxAudit ManagerHEW Audit AgencyJ. F. Kennedy Federal BuildingBoston, Massachusetts

Mr. Joseph J. HandzoChief, State and Local Branch, OGAP

OASCOffice of the Secretary /DREWWashington, D.C.

Mr. Richard H. HintsResearch Assistant, PPBES ProjectDade County Public SchoolsMiami, Florida

Mr. John H. Holdsworth, C.P.A.Lybrand, Ross Bros. and MontgomeryBoston, Massachusetts

Mrs. Lucille JohnsonDirector, Statistical ServicesState Department of EducationAugusta, Maine

Mr. Fred L. KenneySchool Business ManagerW.S.E.S. UnionBrattleboro, Vermont

Mr. Edward R. Lodge, Jr.Rhode Island Society of CPA'sProvidence, Rhode Island

Mr. Robert J. LordResearch AssistantGraduate School of Business AdministrationHarvard UniversityBoston, Massachusetts

Mr. Arthur J. McCannChief, Statistics and InformationState Department of EducationMontpelier, Vermont

Mr. Edward A. ParigianRegional Audit Director, Region IHEW Audit AgencyJ. F. Kennedy Federal BuildingBoston, Massachusetts

Mr. Michael P. CoffeyExecutive OfficerOffice of Education/DHEWFederal BuildingNew York, New York

Dr. Joseph L. HendrickActing Regional CommissionerOffice of Education/DHEWFederal BuildingNew York, New York

Mr. James G. RocheResearch AssistantGraduate School of Business

AdministrationHarvard UniversityBoston, Massachusetts

Mr. Arthur SarazimConsultant482 Congress StreetPortland, Maine

Mr. Gary TalesnikSpecial AssistantDivision of Cost Policy

and Negotiation, OASCOffice of the Secretary/DHEWWashington, D.C.

Mr. Leo P. TuroSenior Supervisor of EducationState Department of EducationBoston, Massachusetts

Mr. George J. WolffNegotiator, OGAP, OASCOffice of the Secretary /DREWWashington, D.C.

Region 11New York

150

Mr. Allan R. LichtenbergerNational Center for Educational

StatisticsU.S. Office of Education/DHEWWashington, D.C.

Dr. Charles T. RobertsNational Center for Educational

StatisticsU.S. Office of Education/DHEWWashington, D.C.

Mr. A. Buell ArnoldDirector, Division of Educational

Management ServicesState Education DepartmentAlbany, New York

Mr. Carl BrunoPartner600 Old Country RoadGarden City, New York

Mr. T. DuringFinancial CoordinatorDiocesan Accounting OfficeR.C. Diocese of Brooklyn, N.Y.Brooklyn, New York

Mr. Othello MaistoAccountant225 West State StreetTrenton, New Jersey

Dr. Walker F. AgnewRegional CommissionerOffice of Education/DHEWPhiladelphia, Pennsylvania

Mr. Charles E. Eby, Jr.Executive Officer, Region IIIOffice of Education/DHEWPhiladelphia, Pennsylvania

Mr. Allan R. LichtenbergerNational Center for Educational

StatisticsU.S. Office of Education/DHEWWashington, D.C.

Dr. Charles T. RobertsNational Center for Educational

StatisticsU.S. Office of Education/DHEWWashington, D.C.

Mr. Frederick A. WillRegional Contracting OfficerOffice of Education/DHEWPhiladelphia, Pennsylvania

Mr. Henry H. MatelscnDirector of Computer ServicesTrenton State CollegeTrenton, New Jersey

Miss Agnes E. Nash, DirectorMunicipal Accounting SystemsDepartment of Audit and ControlGovernor Alfred E. Smith State

Office BuildingAlbany, New York

Mr. James OszfolkChief AccountantState Department of EducationTrenton, New Jersey

Mr. Morton RappaportAssistant Regional Audit DirectorOffice of Education/DHEWFederal BuildingNew York, New Yorl:

Region 11:Philadelphia

151

Mr. Brian M. BensonDirector of Financial Services850 North Washington StreetRockville, Maryland

Dr. Jack B. ClinchAdministrative Assistant, Business

AffairsNew Castle County Vocational-Technical

School DistrictWilmington, Delaware

Mr. John J. Cronin, Jr.Supervisor AuditorU.S. General Accounting OfficeWashington, D.C.

Mr. R. S. DispanetCounty SuperintendentBerkeley CountyMartinsburg, West Virginia

Mr. Ivan E. DownsChief, School Accounting SystemsState Department of EducationHarrisburg, Pennsylvania

Mr. William J. GatelyCost Policy and Rate

Negotiation Specialist, OGAP, OASCOffice of the Secretary/DHEWWashington, D.C.

Mr. Joseph F. GeigerPartner, Dalton, Holt, Bruner

and DrinkardRichmond, Virginia

Mr. Edwin W. LewinSystems AnalystMontgomery County Public SchoolsRockville, Maryland

Mr. Mervin E. ManningDirector, Bureau of School

Accounting and SubsidiesState Department of EducationHarrisburg, Pennsylvania

Mr. J. McComb NicholsAssistant Director, FinanceState Department of EducationBaltimore, Maryland

Mr. James F. OgburnDirector of School FinanceHenrico County Public SchoolsHighland Springs, Virginia

Mr. Joseph J. OravitzDirector, Personnel and Research ServicesPennsylvania School Boards AssociationHarrisburg, .Pennsylvania

Dr. Bruce K. AlcornAssociate DirectorComputer Sciences ProjectSouthern Regional Education BoardAtlanta, Georgia

Mr. John A. Barker, Jr.EDP Systems Specialist/Consultant316 Education AnnexAtlanta, Georgia

Mr. Aaron Rapking, Jr.Assistant Superintendent, FinanceKanawna County SchoolsCharleston, West Virginia

Mr. John J. RyanDirector of FinanceState Department of Public

InstructionDover, Delaware

Mr. Kenneth L. SandvigSenior Research Associate:National Education AssociationWashington, D.C.

Mr. Henry F. Sanville, Jr.CPA

19 South High StreetWest Chester, Pennsylvania

Dr. Delmer K. SomervilleDean, Glenville State CollegeGlenville, West Virginia

Mr. Harold R. SpencerDirector of ResearchPennsylvania State Education

AssociationHarrisburg, Pennsylvania

Mr. John B. WelshPartnerMain Lafrentz & Co.Philadelphia, Pennsylvania

Region IVAtlanta

152

Mr. Harold R. BazzellAdministrator, District

School FinanceDepartment of EducationTallahassee, Florida

Mr. R. W. BurnetteDirector, Office of FinanceState Department of EducationColumbia, South 'Carolina

Mr. Charles H. Chewning, Sr.SuperintendentDurham County SchoolsDurham, North Carolina

Dr. Russell S. ClarkDirector, Division of Planning,

Research, and EvaluationState Department of EducationAtlanta, Georgia

Mr. Fred J. CrossonDirector of ResearchTennessee Education AssociationNashville, Tennessee

Mr. Delbert M. CushingFinance Officer, Title I, ESEAU.S. Office of Education/DHEWWashington, D.C.

Dr. John DeasonSuperintendentAlamance County SchoolsGraham, North Carolina

Dr. Jess P. ElliottCoordinator of EvaluationDivision of Planning, Research,

and EvaluationState Department of EducationAtlanta, Georgia

Mr. Arvil G. Ens leyDirector of Fiscal ServicesState Department of EducationAtlanta, Georgia

Mr. Charles N. Fagan, Jr.Director, Financial Research

and DevelopmentDepartment of EducationTallahassee, Florida

Mr. Shannon D. FaulknerSuperintendent of Tipton

County SchoolsCovington, Tennessee

153

Mr. Ernest C. GraysonAssociate SuperintendentAccounting and FinanceJefferson County Public SchoolsLouisville, Kentucky

Mr. John Rcy HamiltonSpecialist in State AidState Department of EducationBaltimore, Maryland

Mrs. Nell R. HaynesAccountant, Title IState. Department of EducationMontgomery, Alabama

Mr. Don E. HendrenDirector of ResearchAlabama Education AssociationMontgomery, Alabama

Miss R. Christine HoganAssistant Director of Statistical

ServicesState Department of EducationBaltimore, Maryland

Mr. James L. HowardAssistant Superintendent,

Business ServicesCobb County SchoolsMarietta, Georgia

Mr. Michael E. KuricExecutive OfficerOffice of Education, Region IVOffice of Education/DHEWAtlanta, Georgia

Mr. James H. LeutyDirector of Fiscal ManagementState Department of EducationNashville, Tennessee

Dr. C. J. MartinRegional CommissionerOffice of Education, Region IVOffice of Education/DHEWAtlanta, Georgia

Miss Josephine MartinAdministrator, School Food ServicesState Department of EducationAtlanta, Georgia

Mr. David S. MatthewsAssistant Director, Office of FinanceState Department of EducationColumbia, South Carolina

Mr. H. Claude MooreDirector of Field ServicesFinance and AdministrationState Department of EducationNashville, Tennessee

Mr. William A. NebletteDirector of FinanceChattanooga Public SchoolsChattanooaa, Tennessee

Mr. J. A. Porter, Jr.Director, Division of Auditing

and AccountingState Department of Public

InstructionRaleigh, North Carolina

Mr. Warren G. PostDirector, Financial Review

SectionState Department of EducationAtlanta, Georgia

Dr. Charles T. RobertsNational Center for Educational

StatisticsU.S. Office of EducationWashington, D.C.

Mr. William H. TaylorConsultant, Bureau of FinanceDepartment of EducationTallahassee, Florida

Miss Ruby M. ThompsonSupervisor, Finance and

StatisticsState Department of EducationJackson, Mississippi

154

Mrs. Molly SampleResearch DirectorFlorida Education AssociationTallahassee, Florida

Dr. Bill SipesEducational Program CoordinatorState Department of EducationAtlanta, Georgia

Mr. J. G. SowellBusiness ManagerDougherty County SchoolsAlbany, Georgia

Mr. Edward SpencerAssistant DirectorDivision of FinanceState Department of EducationFrankfort, Kentucky

Mr. Harold E. SteortsSupervisory AuditorHEW Audit AgencyOffice of Education/DHEWAtlanta, Georgia

Mr. Jack M. SummersAssistant SuperintendentSumter School District #7Sumter, South Carolina

Mr. Richard WalkerDirector of FinanceMemphis City SchoolsMemphis, Tennessee

Mr. Fred E. WellsBusiness Manager and Deputy

SuperintendentSumter School District #7Sumter, South Carolina

Mr. Charles WhaleyDirector of Research and

InformationKentucky Education AssociationLouisville, Kentucky

Mr. Harold A. WheelerDirector of FinanceDade County School BoardMiami, Florida

Dr. Joseph A. Murnin*Acting Regional CommissionerOffice of Education/DHEW

Chicago, Illinois

Dr. Charles T. RobertsNational Center for Educational

StatisticsU.S. Office of EducationWashington, D.C.

Mr. Charles A. Ross*Executive OfficerOffice of Education/DHEWChicago, Illinois

Mr. Fred BeckmanClerk-Treasurer1380 East Sixth StreetCleveland, Ohio

Mr. Bob CorlettSchool Finance ExecutiveDepartment of EducationLansing, Michigan

Mr. Lowell B. DavisClerk-Treasurer651 East 222 StreetEuclid, Ohio

Mr. Allen F. DyeBusiness Manager

Evanston Township High School'Evanston, Illinois

Mr. G. E. EbberttSuperintendent of Schools528 West 11th StreetAnderson, Indiana

"Deceased.

Mr. William C. WhittenEducational ConsultantDepartment of EducationTallahassee, Florida

Region VChicago

155

Mr. Steve S. Ed!CoordinatorCooperative Educational Service

Agency #18Burlington, Wisconsin

Mr. David E. ElderDirector, Research and Professional

DevelopmentIllinois Education AssociationSpringfield, Illinois

Mr. John W. FeldballeCoordinatorDepartment of Operations AnalysisChicago Board of EducationChicago, Illinois

Mr. Merrill GatesSuperintendentEducational Service RegionDu Page CountyWheaton, Illinois

Mr. Carl H. HeimerdingerClerk-TreasurerCincinnati Board of EducationCincinnati, Ohio

Mr. George L. Ka llosSuperintendentShiawassee County Intermediate

Board of EducationCorunna, Michigan

Mr. William R. LaughlinTreasurerColumbus Public SchoolsColumbus, Ohio

Mr. Harry M. LokkenResearch ConsultantState Department of EducationSt. Paul, Minnesota

Dr. Donald L. MaysAssistant to the Vice President

of Student AffairsAdministration Building - 401Ball State UniversityMuncie, Indiana

Mr. Richard B. NewmanDirector of Data ProcessingMilwaukee Public SchoolsMilwaukee, Wisconsin

Dr. Lloyd C. NielsenSuperintendent of Schools1251 County Road B-2Roseville, Minnesota .

Mr. Thomas J. NortheyDirector of ResearchMichigan Education AssociationEast Lansing, Michigan

Mr. Roland RockwellSupervisor of School FinanceState Department of Public InstructionMadison, Wisconsin

Mr. Gordon RosenbergerPrincipal Systems EngineerChicago Board of EducationChicago, Illinois

Mr. George R. TaylorAssistant DirectorDepartment of Claims

and AccountingOffice of the Superintendent

of Public InstructionSpringfield, Illinois

Dr. George D. HannRegional CommissionerOffice of Education/DREWDallas, Texas

Mr. Donald R. ThomasSenior Business ConsultantAries CorporationMinneapolis, Minnesota

Dr. Donald R. ThomsenAssistant Project DirectorAssociation of School Business

OfficialsChicago, Illinois

Mr. Sam B. Tidwell, C.P.A.Professor of AccountingSchool of Business and Engineering

AdministrationMichigan Technological UniversityHoughton, Michigan

Mr. Claude A. Welles, Jr.Director, Finance and PayrollsCity of AndersonAnderson, Indiana

Dr. John F. YoungAssociate SuperintendentFort Wayne Community SchoolsFort Wayne, Indiana

Dr. Donald G. ZahnDirector of Business AffairsIndependent School District

No. 197West St. Paul, Minnesota

Region VIDallas

Dr. Charles T. RobertsNational Center for Educational StatisticsU.S. Office of EducationWashington, D.C.

156

Mr. Lee H. Bats&Chief AccountantManagement Information CenterTexas Ethication AgencyAustin, Texas

Mr. Charles T. Bitters, Assistant DirectorRegion 1V, ESC, P.O. Box 51999San Angelo, Texas

Dr. Arnold W. BrownDirector, Organization Analysis

and Research

Box 4232, Station AAlbuquerque, New Mexico

Mr. Earl J. CantrellDirector of Research and Data

ProCessing

Texas State Teachers AssociationAustin, Texas

Mr. Perry L. CoxFiscal OfficerEducational Service Center Region XPost Office Box 1300Richardson, Texas

Mr. John GeorgeDirector of Business and

Financial ServiCis.State Department of EducationPhoenix, Arizona

Mrs. Shirley HallExecutive MemberTexas Association of School BoardsWeatherford, Texas

Mr. Guy HixsonDirector, Finance and

Business Affairs3205 Jenny LindFort Smith, Arkansas

Mr. Woodrow W. MagnessChief 'Audit ReviewTexacaucation AgencyAustin, Texas

Mr. W. Frank McNeillControllerTulsa Public SchoolsTulsa, Oklahoma

Mr. Don OffermanDirector, Management Information

CenterTexas Education AgencyAustin, Texas

157

Mr. Ronald G. Parsley------- -----Director of AccountingTexas Education AgencyAustin, Texas

Mr. H. D. (Spec) PearsonAssistant Superintendent, Business ServicesDallas Independent School DistrictDallas, Texas

Mrs. Jessie RodgersAccount-Auditor, Department of

Finance and AdministrationPublic School Finance DivisionState Department of EducationSanta Fe, New Mexico

Mr. T. W. SchettlerDirector of FinanceLas Cruces School District #2Las Cruces, New Mexico

Mr. Joe W. SteinDirector of Data ProcessingLas Vegas City SchoolsLas Vegas, New Mexico

Mr. Jimmie C. StylesVice-ChancellorResearch and DevelopmentTarrant County Junior College

DistrictFort Worth, Texas

Mr. Joe TaylorAssistant Regional Audit DirectorHEW Audit AgencyOffice of Education/DHEW .

Dallas, Texas

Dr. Charles WeberAssistant State Superintendent and

Director, Finance DivisionState Department of EducationOklahoma City, Oklahoma

Mr. W. Carl WhittemoreBudget Analyst, Department of

Finance and AdministrationPublic School Finance DivisionState Department of EducationSanta Fe, New Mexico

Region VIIKansas City

Dr. Freeman H. BeetsActing Regional CommissionerOffice of Education/DHEWKansas City, Missouri

Mr. Len M. DavisonExecutive OfficerOffice of Education/DHEWKansas City, Missouri

Dr. Charles T. RobertsNational Center for Educational StatisticsU.S. Office of EducationWashington, D.C.

Mr. John W. AlbertyDirectorSchool Finance and StatisticsState Department of EducationJefferson City, Missouri

Mr. Michael Azorsky, C.P.A.Lester Witte & CompanyKansas City, Missouri

Mr. Roy BennettDirector, Accounting and Finance2000 Franklin StreetBellevue, Nebraska

Dr. Merle R. Bolton. Superintendent of Schools

Topeka School DistrictTopeka, Kansas

Mr. Joseph L. CampbellAudit ManagerArthur Young & CompanyKansas City, Missouri

Mr. Dale M. DennisDirector of Statistical ServicesBoard of EducationTopeka, Kansas

Mr. gill L. FowlerAuditor,Board of EducationTopeka, Kansas

158

Mr. Lawrence L. GrahamAdministrative Director of School FinanceState Department of EducationLincoln, Nebraska

Mr. David L. IsonSupervisory AuditorRegional Office, HEW Audit AgencyOffice of Education/DHEWKansas City, Missouri

Dr. Carl A. JamesSuperintendent of SchoolsPost Office Box 1008Emporia, Kansas

Mr. John H. KellyBusiness ManagerTopeka School DistrictTopeka, Kansas

Mr. Gary KeplingerResearch AssistantIowa State Education AssociationDes Moines, Iowa

Dr. Joe McFarlandAssociate Executive Secretary and

Director of Research715 West 10th StreetTopeka, Kansas

Mr. B. M. MilvainVice PresidentAdvisory Associates, Inc.Kansas City, Missouri

Mr. Gordon NelsonExecutive SecretaryAssociated School Boards of

South DakotaHuron, South Dakota

Mr. Lyell Ocobock, Jr.Assistant Director .Kansas State Municipal Audit` ProgramState Auditor's OfficeStatehouseTopeka, Kansas

Mr. Kenneth E. RichAccountant::;oard of EducationTopeka, Kansas

Mr. Paul J. SkardaDirector, Administration

9nd FinanceDepartment of Public InstructionDes Moines, Iowa

Mr. Rodney SmallAssistant Regional Audit DirectorHEW Audit AgencyOffice of Education/DHEWKansas City, Missouri

Mr. Lowell BaumunkSuperintendent of SchoolsDouglas County School District #1Castle Rock, Colorado

Dr. Paul G. BethkeSenior ConsultantState Department of EducationDenver, Colorado

Mr. Howell Lee CannonCoordinator of School Finance

of UtahBoard of EducationSalt Lake City, Utah

Mr. Robert F. CheuvrontResearch AssistantBureau of Educational ResearchUniversity of DenverDenver, Colorado

Mr. John V. Connor, C.P.A.Supervising AuditorState Auditors OfficeDenver, Colorado

Mr. A. Donald SterlingBusiness AdministratorNormandy School DistrictSt. Louis, Missouri

Mr. W. Wayne WarnerAssistant Business ManagerWichita Public SchoolsWichita, Kansas

Mr. Fred WessendorfDirector of Business Affairs903 Washington StreetCedar Falls, Iowa

Mr. Richard A. WilsonSystems AnalystBoard of EducationTopeka, Kansas

Region VIIIDenver

159

Mr. Donald M. DuellDirector, Finance and PurchasingEnglewood Public SchoolsEnglewood, Colorado

Mr. Karl W. EricksonAssistant Superintendent for

BusinessGreat Falls Public SchoolsGreat Falls, Montana

Dr. Ralph A. ForsytheDirectorBureau of Educational ResearchUniversity of DenverDenver, Colorado

Mr. S. A. GlaimDirector of Business809 South StreetRapid City, South Dakota

Dr. John W. GottAssistant Superintendent, FinanceJefferson County SchoolsLakewoop, Colorado

Dr. Harold C. GuibrandsonAssistant Superintendent1104 Second Avenue South

Fargo, North Dakota

Mr. Gerald C. HickenDirector of BudgetingDenver Public SchoolsDenver, Colorado

Mr. Bill KalousAdministrative Assistant/

Business ManagerMorgan County Community CollegeFort Morgan, Colorado

Dr. Charles P. LloydDeputy SuperintendentGranite School DistrictSalt Lake City, Utah

Mr. M. Richard MaxfieldCoordinator, Advance Planning

for Data ProcessingBoard of EducationSalt Lake City, Utah

Mr. Peter P. McGrawDirector, Statewide SystemsState Services Building, Room 112Denver, Colorado

Mr. E. C. MikkelsenDirector of ResearchSouth Dakota Education AssociationPierre, South Dakota

Mr. Donald L. Munro, 11Director of ResearchColorado Education AssociationEnglewood, Colorado

Mr. Fred OliverPartnerHaskins and Sells

Salt Lake City, Utah

160

Mr. Dale SchimmelpfennigDirector of FinanceWeber County School DistrictOgde , Utah

Mr. Gale D. SchlueterDirector, Etatistical ServicesState Department of Public

InstructionPierre, South Dakota

Mr. James C. SchoolerAssistant Superintendent,

Administrative ServicesState Department of Public

InstructionPierre, South Dakota

Mr. Jim SheehanDirector, Management Information

Services

Department of EducationCheyenne, Wyoming

Mr. Howard J. SnortlandAssistant State SuperintendentState Department of Public

InstructionBismarck, North Dakota

Dr. Charles WeberAssistant State Superintendent and

Director of FinanceState Department of EducationOklahoma City, Oklahoma

Mr. Robert WegenerSystems AnalystE.M.I.S. DepartmentDenver Public SchoolsDenver, Colorado

Region IXSan Francisco

Mr. Henry ColtzFinancial Management OfficerU.S. Office.of Education/DHEWSan Francisco, California

Mr. John P. L. ThorslevExecutive OfficerU.S. Office of Education/DHEWSan Francisco, California

Mr. Harold K. FukunagaDirector of AccountingDepartment of EducationHonolulu, Hawaii

Mr. Glenn D. GwynnEducational Fiscal OfficerHeadquarters Education OfficeSaipan, Mariana Islands

Dr. John W. HagenSuperintendent of SchoolsPost Office Box /92Calexico, California

Mr. Harvey Lee HubbsAudit SupervisorOffice of the Auditor GeneralPhoenix, Arizona

Mr. James F. KnotekManagerErnst and ErnstSan California, California

Mr. Jack L. LiebermannField RepresentativeBureau of Apportionmer.ts and ReportsState Department of EducationSacramento, California

Mr. Quentin M. HillExecutive OfficerOffice of Education/DHEWArcade Plaza Building

'Seattle, Washington

Region XSeattle

161

Mr. A. C. LieblAssistant Business ManagerClark County School DistrictLas Vegas, Nevada

Mr. Fred M. OliverPartnerHaskins and SellsSalt Lake City, Utah

Mr. Richard K. PiperAssistant Management AuditorAudits DivisionDepartment of FinanceState Department of EducationSacramento, California

Mr. Allan W. RaishAssistant to Regional Audit

DirectorAudit Agency/DHEWSan Francisco, California

Mr. Jacque T. RossChief, Bureau of School

Apportionments and ReportsState Department of EducationSacramento, California

Dr. James E. WatersExecutive SecretaryAdvisory Commission on School

District Budgeting and AccountingState Department of EducationSacramento, California

Dr. Hal R. WeatherbeAssistant Research Executive1705 Murchison DriveBurlingame, California

Mr. William McLaughlinRegional CommissionerOffice of Education/DHEWArcade Plaza BuildingSeattle, Washington

Mr. Robert A. BellDirector of ResearchWashington Education AssociationSeattle, Washington

Mr. Don E. BreimoDeputy DirectorState-Operated SchoolsState Department of EducationAnchorage, Alaska

Mr. Melvin D. CollartSupervisorSchool Financial ServicesPost Office Box 527Olympia, Washington

Mr. Donaid L. DietschSenior AuditorFinance DivisionDepartment of EducationBoise, Idaho

Mr. Myron ErnstAssistant SuperintendentBellevue Public SchoolsBellevue, Washington

Mr. Francis FlerchingerSupervisorEducational Records SystemsDepartment of Public instructionOlympia, Washington

Mr. Don E. FridleyAssociate SuperintendentAnchorage Borough School DistrictAnchorage, Alaska

Mrs. Ramon J. GouldDirectorEdmonds School District #15Edmonds, Washington

Mr. Harmon J. GroesbeckDirector of Business AffairsSchool District #91Idaho Falls, Idaho

162

Mr. Frank J. KronesAssistant SuperintendentIndependent School District #101Lincoln County CourthouseDavenport, Washington

Dr. Richard C. LangtonSuperintendent of SchoolsSchool District 549CMedford, Oregon

Mr. Robert A. MillerSupervisorSchool District AccountingPost Office Box 754Olympia, Washington

Mr. Harvey A. MullinixAuditor, Finance DivisionDepartment of EducationBoise, Idaho

Mr. Fred M. OliverPartnerHaskins and SellsSalt Lake City, Utah

Mr. Vernon OsbornAssociate Superintendent,

Management ServicesState Board of EducationSalem, Oregon

Mr. Richard J. PenrodFiscal OfficerState Department of EducationJuneau, Alaska

Dr. Duane E. RichardsonProgram CoordinatorREACTNorthwest Regional Educational LabPortland, Oregon

Mr. Edward A. Sanford, Jr.Director, Fiscal Management

ServicesState Board of EducationSalem, Oregon

Mr. Robert E. SimpsonActing SuperintendentVancouver School District #37Vancouver, Washington

Mr. Thomas J. SommervilleSuperintendentMultnomah County Intermediate

Education DistrictPortland, Oregon

Mr. Guy E. WaldroopCoordinatorSchool Budget ServicesState Board of EducationSalem, Oregon

Many program managers and assistants at the Federal level reviewed the manual and contributed to itsdevelopment in organized conferences. Those who should be listed include:

William A. Walsh, C.P.A.Director, Audit Liaison and

Coordination StaffOffice of Business ManagementOffice of Education

Gene KennedyAssistant Director, Audit Liaison

and Coordination StaffOffice of Business ManagementOffice of Education

Henry G. KirschenmannChief, Cost Policy and Rate

Negotiation BranchOffice of the Secretary, ComptrollerDepartment of Health, Education,

and Welfare

Joseph J. HandzoSpecialist, Cost Policy and

Rate Negotiation BranchOffice of the Secretary, ComptrollerDepartment of Health, Education,

and Welfare

John F. StaehleAssistant Director for Policy and

ProceduresDivision of Compensatory EducationOffice of Education

Penrose B. JacksonSpecialist, Office of Program Planning

and EvaluationOffice of Education

163

Arthur S. KirschenbaumSpecialist, Office of Program

Planning and EvaluationOffice of Education

Tony UpchurchFederal/State Financial AssistantFinance DivisionOffice of Education

David A. QuinnActing DirectorDivision of Financial Management

and ReportingOffice of the SecretaryDepartment of Health, Education,

and Welfare

Donald E. McFallSystems Accountant in State/Local

Systems StaffDivision of Accounting SystemsOffice of the SecretaryDepartment of Health, Education,

and Welfare

Edward T. JenningsChief, Administrative ServicesBureau of Adult, Vocational,

and Technical EducationOffice of Education

Paul JanaskeChief, Research and Program

Development BranchBureau of Library and Learning ResourcesOffice of Education

Anthony CardinaleDirector of Dependents EducationOffice of Assistant Secretary of Defense

(Manpower and Reserve Affairs)/EducationDepartment of Defense

Significant and time-consuming assistance was given by the Purchasing and Supply-Management Committee,Association of School Business Officials of the United States and Canada in preparing Appendix A, Supplies andEquipment.

John Young, RSBA, ChairmanAssistant SuperintendentFort Wayne Community SchoolsFort Wayne, Indiana

Paul L. HelmersBusiness.AdministrationUnion Free District No. 6Port Jefferson, New York

Dale ShermanDirector of Fiscal AffairsFort Wayne Community SchontsFort Wayne, Indiana

Victor WeberDirector of PurchasingFort Wayne Community SchoolsFort Wayne, Indiana

Kenneth CarrollBusiness ManagerSkokie School District No. 68Skokie, Illinois

Charles W. FosterExecutive SecretaryAssociation of School Business OfficialsChicago, Illinois

Technical assistance was received from the following on the subject of building depreciation and the extended-lifeformula:

Dwayne E. Gardner Joseph F. MalinskiExecutive Director Director of Planning, Research,Council of Educational Planners, Development, and Evaluation

International Suburban Her nepin County AreaColumbus, Ohio Vocational Technical Schools

Minneapolis, MinnesotaRichard F. ToniganDirector, Bureau of Educational

Planning and DevelopmentUniversity of New MexicoAlbuquerque, New Mexico

Carroll McGuffeyProfessor, Educational AdministrationCollege of EducationUniversity of GeorgiaAthens, Georgia

William DorfmanChief, Statistical Systems BranchNational Center for Educational StatisticsOffice of Education

Masao YoshitsuMathematical StatisticianReference and Estimates BranchNational Center for Educational StatisticsOffice of Education

Preliminary research (in cooperation with the National Steering Committee), preparing the first draft of themanual, and supervising the regional review conferences were done tinder contract with Peat, Marwick, Mitchell andCo. Project director was J. Ashbridge Perkins. He was assisted by Robert Davis, Alvin Gitlitz, James Jeffrey, andJerry Waddell.

164

The following people served as consultants to the contractor:

Robert E. WilsonChairmanDepartment of Educational

AdministrationKent State UniversityKent, Ohio

James MitchellAssociate Commissioner of EducationDepartment of Public InstructionDes Moines, Iowa

William CurtisDirectorEducational Resources Management

SystemResearch Corporation/ASBOChicago, Illinois

James WhitlockDirector, Division of Surveys and

Field ServicesPeabody CollegeNashville, Tennessee

Much of the preliminary research in the early stages of development was done under the supervision of QuentinHill, Financial Accountant, Educational Data Standards Branch, National Center for Educational Statistics, Office ofEducation.

The following people in the Educational Data Standards Branch, National Center for Educational Statistics aredue much credit as follows: Ivan Seibert for patiently reading and editing the manuscript for the second and thirddrafts, Delores Austin for typing, and Dorothy Lenz for her patient and untiring efforts in putting the drafts on tapefor camera ready copy.

B. Harold Williams and Ron Waring, Publications Branch, National Center for Educational Statistics, are to becommended for their gracious time and patience in getting the drafts and camera copy ready to be sent to Office ofPublic Affairs and to the public.

165

Appendix D

TRANSMITTAL MEMORANDUM

MEMORANDUMDEPARTMENT OF HEALTH, EDUCATION, AND WELFARE

OFFICE OF EDUCATION

TO : Members of the Cooperating Organizations

FROM

SUBJECT:

Specialist, Educational Records and Reports

DATE: June 1972

Second Draft of Handbook II, Financial Accounting Classifications and Standard Terminologyfor Local and State School Systems

This working draft copy of Handbook II, Financial Accounting Classifications and Standard Terminologyfor Local and State School Systems is sent to you and others in the cooperating organizations for your review,for testing in your school system, and to provide opportunity for suggestions to be made for its improve-ment. It is anticipated that the Chart of Accounts will not be changed. The draft incorporates changes proposedand approved at 10 regional conferences conducted throughout the country in 1971. Duplicate, for your ownuse, as many copies as you need.

Your suggestions for improvement, after extensive critical review, should reach us within four weeks to be in-cluded in the revision. At that time, all comments will be carefully reviewed and considered for possibleincorporation in the refinement of the handbook. The published document will be distributed in final formbut after having used it, suggestions for a second revision should be forwarded.

The many significant contributions that you and others have made to this important project are appreciatedvery much. The development of the handbook through the second draft has included the combined efforts ofhundreds of people.

Appendixes C and D--acknowledgments and an indexare not included in this mailing but will be incorporatedinto the final draft. The final publication, it is hoped, will be distributed in the fall.

Let me have your suggestions to be considered for inclusion in the final publication, soon.

Charles T. Roberts

Enclosure

166

Appendix E

EXAMPLES OF FINANCIAL STATEMENTS AND REPORTS

Following are examples of financial statements and reports referred to above which present the overall picture of thefinancial position of a LEA and of the results of its operation.

Combined Balance Sheet. The combined balance sheet reports the assets, liabilities, appropriations, reserves, fundcapital, principal, and equity in condensed form for the entire LEA. Financial state'nents of individual fundsaccompany the combined balance sheet and supply a greater amount of detailed information. Figure E-1 illustrateshow the balance sheet for each fund used by the LEA can be made an integral part of the combined balance sheetfor the LEA.

Combined Statement of Revenues and Expenditures. Figure E-2 illustrates how financial statements for funds havingrevenues and expenditures can be combined in condensed form. It is important, however, that the combinedstatement be supported by the individual statement of each fund's revenue and expenditures. In this way, a greateramount of detail can be Presented while the condensed statement provides a total view of the operation of theLEA.

Changes in Fund Balanc !. The changes in fund balance at the cnd of the year from what they were at the beginningof the period are illustrated in figure E-3. These changes reflect, at a glance, the degree of change or fluctuation inrevenue-expenditure differences by funds in comparison with the previous year.

Changes in Financial Position. Figuie E-4 illustrates a combined statement of resources provided and to what theywere applied. Resources are provided from revenues for each fund; from reductions in assets during the year; fromincreasing liabilities, appropriations, and reserves during the year; from correcting revenues from prior year; andfrom expenditures being refunded. These resources are applied to operations by funds; to increasing assets during theyear; to decreasing liabilities during the year; to correcting expenses of prior year; and to refunding revenue collectedin excess in prior year. This statement provides full disclosure of resources and to what they are applied. Inconjunction with the revenue and expenditure statement full disclosure of the results of the LEA's financialtransactions is possible.

The above statement of resources provided and to what applied is prepared through the use of combined balancesheets at the beginning and end of the fiscal year and through the use of the combined statement of revenues andexpenditures. Comparative balance sheets from which this combined statement of resources and application wasprepared is presented in figure E -5.

167

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0B

onds

aut

horiz

ed a

nd u

niss

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. ....

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0,00

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310,

000

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ount

ava

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e en

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pro

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for

re-.

.

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ds a

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400,

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90,0

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bui

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630,

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Tot

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Liab

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s

$11,

229,

300

$205

,500

$228

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$1,9

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,$1

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$ 20

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$10,

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oth

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3100

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40,0

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80,0

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438,

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82,0

001,

400,

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$168

,800

$5,

000,

000

$2,4

00,0

00

$ 18

,000 80

0

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pay

able

in fu

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800,

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$197

,500

$ 38

,200

$50

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$ 28

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$ 18

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and

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App

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$ 30

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l fix

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$5,0

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00

Prin

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capi

tal

360,

000

$160

,000

$50,

000

$150

,000

Fun

d eq

uity

2,12

5,80

02,

000

175,

000

.$1

,885

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20,0

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35,8

00

Tot

al A

ppro

pria

tions

, Res

erve

s, a

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Fun

d E

quiti

es$

8,20

6,80

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8,00

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90,0

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$1,8

85,8

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720,

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$167

,200

$85,

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$150

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00

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s, A

ppro

pria

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, Res

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s,an

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Equ

ities

$11,

229,

300

$205

,500

$228

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$1,9

35,8

00$1

,000

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$195

,200

$95,

800

$168

,800

$5,0

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,400

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Fig

ure

E-2

.-C

ombi

ned

Sta

tem

ent o

f Rev

enue

s an

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Fund

s(E

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proj

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efu

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tivity

fund

Tru

st a

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fund

s

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enue

s

Tax

atio

ns a

nd a

ppro

pria

tions

'-$

2,56

1,00

0$1

,521

,000

$140

,000

$100

,000

$800

,000

Tui

tion

from

pat

rons

10,0

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pat

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000

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975,

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100,

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715,

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160,

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$1,9

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$358

,500

$412

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$858

,000

Figure E-3.--Changes in Fund Balances for All Funds

Funds(End of year)

GeneralSpecial Debt Capital Food Pupil Trust and

BALANCES Total revenue service projects service activity agencyfund

fund fund fund fund fund funds

Beginning of year $453,250 $300,000 $28,000 $ 5,000 $ 45,000 $ 1,100 $ (850) $ 75,000

End of year 599,280 150,280 80,000 34,000 184,000 48,500 1,500 101,000

Change $146,030 $1149,720) $52,000 $29,000 $139,000 $47.400 $2,350 $ 26,000

171

Figure E-4.-Changes in Financial Position for All Funds

Funds(End of year)

Resources Provided From

Revenue for year:General fund $4,088,280Special revenue fund 1,990,000Debt service fund 314,000Capital projects fund 1,424,000Food servir:e fund 407,000Pupil activity fund 414,000Trust and agency funds 959,000 $ 9,596,280

Reducing assets during year:Accounts receivable $ 12,000Notes receivable 20,000Taxes receivable, current inat) 10,000Interest receivable on taxes, delinquent 100Investments 60,000Amount available and to be provided for retention

of bonds and interest 200,000 $ 302,100

Increasing Liabilities, appropriations andreserves during the year:Vouchers payable $ 70,000Matured bonds and interest payable 137,200Due to other units of government 25,100Interest payable in future years 500,000Appropriatio ns 300,000Reserves for en cumbera nces 401,000 $ 1,433,300

Corrections of prior yearTaxes receivable, delinquent 39,000Interest receivable on taxes, delinquent 87,000Inventories 15,000 $ 141,000

Expenditures refunded from prior year:Elementary programs $ 10,000Middle/Junior High programs 39,000Community services 17,000 $ 66,000

Total Resources Provided $11,538,680

Resources Applied toOperations:

General fund $3,938,000Special revenue fund 1,910,000Debt service fund 280,000Capital projects fund 1,240,000Food services fund 358,500Pupil activity fund 412,500Trust and agency funds 858,000 $ 8,997,000

Increase assets during year:Cash $ 266,800Loans receivable (net) 20,000

r;-.5

Interest receivable on notes 1,000Taxes receivable delinquent (net) 600Due from other units of government 532,300Inventories 3,700Bonds authorized and unissued 310,000 $ 1,134,400

172

Figure E4.Changes in Financial Position for All FundsContinued

Decreasing liabilities during year:Contracts payable $ 333,000Bonds payable 652,000 $ 985,000

Corrections of prior year:Interest expense $ 2,200Contracts payable 73,080Due to other units of government 92,000 $ 167,280

Revenue rebates from prior year:Revenue from taxes $ 79,000Revenue from State sources 87,000Revenue from Federal sources 89,000 $ 255,000

Total Resources Applied $11,538,680

173

Figure E-5.-Comparative Combined Balance Sheets

Balance sheet accounts Beginningof year

End ofNet changes

year- Debits Credits

Assets and ResourcesCash $ 68,700 $ 335,500 $266,800Accounts receivable (net) 30,000 18,000 $ 12,000Loans receivable (net) .. 10,000 30,000 20,000Notes receivable 40,000 20,000 20,000Interest receivable on notes 2,200 3,200 1,000Taxes receivable, current (net) 250,000 140,000 110,000Interest receivable on taxes delinquent 1,400 1,400Taxes receivable delinquent (net) 7,800 8,400 600Interest receivable on taxes 1,900 1,800 100Due from other units of government 100,000 632,300 532,300Inventories 14,000 17,700 3,700Investments (including premiums and discounts) . 2,000,000 1040,000 60,000Bonds authorized and unissued 310,000 310,000Amount available and to be provided for retirement

of bonds and interest 2,500,000 2,400,000 100,000Land 87,000 90,000 3,000Buildings 3,250,000 3,553,000 303,000Improvements other than buildings 95,000 98,000 3,000Machinery and equipment 1,800,000 1,630,000 170,000

Total Assets and Resources $10,258,000 $11,229,300

Liabilities, Reserves and Fund EquityVouchers payable $ 10,200 $ 80,200 70,000Matured bonds and interest payable 137,200 137,200Contracts payable 703,000 370,000 333,000Due to other units of government 10,000 35,100 25,100Interest payable in future years 300,000 800,000 500,000Bonds payable 2,252,000 1,600,000 652,000Appropriations 300,000 30Q000Reserve for encumberances 20,000 421,000 401,000Investments in general fixed assets 4,861,000 5,000,000 139,000Principal on capital 250,000 360,000 110,000Fund equity 1,831,800 2,125,800 274,000

Total Liabilities, Reserves, Fund Equity,Debits and Credits $101258 000 $11,229,300 $2,428,400 $2,428,400

174

INDEX

A Adrno,is..r,0!on

Abatement. 116

AcademIc researchers, Iist of, 146

Account, definition, 4, 116

Accountability, 69

definition, 116

Accounting

assignment, 54definition, 116period, 116

Accounts

asset, 5balance sheet, 4, 5current, 5expenditure, 27receivable, 8, 116revenue, 12, 13payable, 10

Accreditation, 69

Accrual basis, 116

of accountir,g recommended; 2

Accrue

definition, 116

Accrued expenses

definition, 11, 116

Accrued interest

definition, 116liabilities, 116on investment purchased, 8, 116revenue, 116

Accumulating cost center, 36

Acknowledgements, 145

Activity assignment, 116

175

definition, 116general support services. 42

Administrative

act on, 116assistant assignment, 53intern assignment, 53unit, intermediate, 117unit, local basic, 117

Admissions, 18, 117

Adult basic education

definition, 117programs, 38

Adult/continuing edue.atiOri'

definition, 117programs, 38programs, list of, 25tuition, 16, 117school, 52

Ad valorem taxes

definition, 15levied by LEA, 117

Advance

from "a" fund, 10, 117to "a" fund, 8, 117

Advanced adult education program

definition, 44, 117

Advertising, 32

Agent, 117

Aggregate days attendance, 118

Aggregate days membership, 118

Allocation, 83

Allot. 118 «and other debits, 7definition, 119

Allotment, 118 of a LEA. 12

Allotment ledger, 1111 Assignment, 64

Amortization of debt, 118 as a dimension, 62need for, 64

Amount available in debt service funds, 10, 118Assiitantideputylassociate superintendent

. Amount to be provided for payment of bonds, 10, 118 assignment, 53

Analyst assignment, 54 Assistant principal assignment, 53

Appendixes, 91 Associate superintendent assignment assistant/deputy, 53

Appendix

B. Glossary, 115C. Acknowledgements, 145D. Transmittal memo, 166E. Examples of financial stataements and reports, 175

Appraisal

definition, 118services, pupil, 39value, 118

7-1Appropriation

definition, 14, 118school, 118expenditure, 118ledger; 118received from local governmental units other than

LEA, 118

Architecture and engineering

assignment, 54definition, 118services, 44

Area of responsibility, 119

Assessme4-

special, 119

Asset(s)

accounts, 5

176

Association of.school business officials, purchase andsupply committee,

list, 164

Attendance and social work services

definition, 39list, 25

Attendance officer

definition, 119assignment, 58services, 39

Average daily attendance, 119

Average daily membership, 119

Audiologist assignment, 54

Audiology services

definition, 41speech pathology and, 41'

Audiometrist assignment, 55

Audiovisual

aids, 119services, 42

Audit, 119

assignment, 54

t.

services, 42

voucher, 119

Attorney, bonded, 119

Auditors

use of handbook. 3

B

Balance sheet(s), 119

accounts, 4, 5assets and other debits, 5

budgetary, 6current assets, 5current liabilities, 5reserves, 7

for all funds, combined, illustrated, 168general fixed assets, 5

Bases for allocation, 82

Board of education

activities, 119member assignment, 53services

definition, 31, 41list, 26

Board secretafy, 119

services, 42

Board treasurer, 119

services, 42

Bonds

payable, 11proceeds receivable, 8

Bookkeeping assignment, 56

Bookstore sales, 18, 120

Book value, 120

Bond(ed(s), 119

attorney, 119authorizedunissued, 11, 120debt, 120discount, 120

premium, 120proceeds receivable, 120

Budget(ary), 120

accounts. 120control, 120discount, 120

Budgeting, 120

accounts and other credits, 6, 11.accounts and other debits, 9and accounting by program, 72services, 44

Building(s), 34

177

acquisition, construction, and improvementservices, 44, 120

care and upkeep of, services, 45definition, 9use cost, 58, 68, 86

formula, 68per program, 86

example, 86

Business

support services, 43

Bus operation services (vehicle), 45

C

Capital outlay, 33

definition, 120listing, 30

Capital project fund, 30

definition, 121

Care and upkeep

of 661idings, 45, 121of equipment, 45, 121of grounds, 45,121

Carpenter;rig assignment, 57

'Thsh, 121

basis, 121

change fund, 7, 121definition, 7discounts, 121with fiscal agent, 7. 121

Categorical aid, 12-

Center for the study of evaluation at UCLA, 147

Committee list, 147

Central administrative office, 121

Central support services, 46 .

Changes in financial position, 167

illustrated, 172

Changes in fund balance, 167

illustrated, 171

Chart of accounts, 22

definitiOn, 121

comparative, 174illustrated, 168

Combined statement of revenues and expenditures, 167

illustrated, 170

Communications, 32

definition, 122

Community/junior college, 122

Community

recreation, 48, 122relations, 43,122services, 48, 122

list, 27program§

Comparability, i22

Compagatiiie conibineCI balance sheets

illustrated p-i 74

Cdmpensatiori for loss of assets, 122

Check, 121Comprehensive System

Implications for a, 2

Circular A87, 81, 83

Civic activities, 121

Civic services, 48

Clearing accounts, 121 ')

Clerical assignment, 56

Cleaning services, 32

Classification of expenditures, 22

Classification of revenues, 12

Cocurricular activities, 122.

Coding, 122

Combined balance sheet, 167

178

Computer assisted instruction services, 42

Computer operating assignmentr-56

Construction contracts payable, 10, 122

retained percentage, 122

Construction services

facilities acquisition and, 44

Construction work in progress, 9, 123

Consultantls), 122

to the contractors, 164

Contingent

fund, 172liabilities, 122

Continuing education, 123adult, 117programs. 38

Contractor, 164

Contracts payable, 10, 122

Contracted services, 122

Contributions and donations from private sources, 123

Contributors to handbook development

academic research committee, 146Atlanta conference, 152at the .Federal level, 163Boston conference, 149center for-the-studv of evaluation, 147Chic-a-go co Terence, 155

educational data standards branch, 165Dallas conference, 156Denver conference, 159Kansas City conference, 158National steering committee, 145New York conference, 148Philadelphia -onference, 151

regional conferences, 149purchase and supply committee (ASBO), 164San Francisco conference, 161Seattle conference, 161technical assistance, 164

Controlling account, 123

Cost

accounting, 123allocation model, 86allocation plans, 81benefit, 123building use, 68center(s), 50, 123

special, 64minimum number of 50

current operating, 66, 67direct, 36effectiveness, 69, 70, 123

determining formula of, 70example of use of, 70'

equipment'use, 68formula.for operating, 67indirect, 36ledger, 123

179

per program in building, formula, 86per pupil, 123relationships, 84space for program, 86support services prorated to operating programs, 87,

88, 89total; 66unit, 123using space, 86

Cost center, 50, 123

speCial, 64

Counseling

assignment, 53services, 39

Crafts and trades apprenticeship assignment, 57

Crafts and trades assignment, 57

Criteria for identifying a supply item, 93

Criteria for identifying equipment, 106

Criteria for items to be included in the handbook, 2

Culturally different

programs for the, 38

Current, 123

asset accounts, 5assets, 7, 123funds, 123expenditures, 64, 123

formula, 64 -per pupil, 64, 113

formula, 65procedure for, 65units to be compared, 65

expense, 123'abilities, 6, 10, 123

loans, 123operating cost, 67

formula for, 67year's tax levy, 123

trricuium development sen, . I

instruction and, 41

Curriculum specialist assignment, 53

Custodian assignment, 68

Custody and care of children, 49, 124

Data, 124

bank, 124processing, 124

services, 31, 48list of, 27

Day

in session, 1,24

of attendance, 124

Debt service, 27, 49, 124

fund, 30, 124

Deferred charges, 124

Deficit, 124

Delinquent taxes, 124

Dental hygienist assignment, 56

Development assignment,

research and, 55

Development services, 46

Dietitician/nutritionist assignment, 54

Dimension(sl, 22, 60

for comparability, 63importance of, 60for greater detail, 64table of, 63

Direct costs, 36

cambe allocated, 73definition; 124expenses, 36

of support service; program; example distributionof, 85

Directing assignment, supervising, managing and, 53

Direct services, 125

Disbursements, -125

Dispatching assignment, 57

Dispensing food services, preparing and, 46

Dental services, 40 Distributive education, 125

Dentist assignment, 54 Dividends on investments, 17

Deposits, 9, 124 Donated goods and services; 36

payable, 11; 124Double entry, 125

Depreciation, 124Due from fund, 8, 125

cost, 66schedule, 66 - Due from government, 8, 125

Deputy/associate/superintendent assignment, 53

Development, 124

Due to a fiscalagerfc, 11, 125

Due to fund, 10, 125

Development and evaluation services, planning, -,0,

research, 46 Due to government, 10, 125

. i180

Dues and fees, 35, 125

Duplicating services, printing, publishing and, 46

E

Earned interest, 125

Earnings on investments, 14, 17

Editing assignment, 54

Educational specifications services, 44

Educational data standards branch contributors tohandbook development, 165

Educational Media,

definition, 125list, 25services, 41

Educational television services, 42

ti

Elaborateness of items in handbook, 60

Election, 125

services, 42

Electrician assignment, 57

a

Endowment fund, 125

Engineeer assignment, architect, 54

Entry, 125

Equipment, 34

cost of replaced, formula, 68definition, 9, 126services, care and upkeep of, 45use cost, 68

formula, 68list of, 108

Equity, 126

Estimated revenue, 9, 126

Estimated uncollectible taxes, 126

Estimated uncollectible tax liens, 126

Evaluating assignment, _Evaluation

definition; 126services, 47

techniques for educational, 69

Evaluation services, planning, research, developmentEleftlentary and 46

programs, 37school, 1:75 .

definition, 51, 125

Elevator operating assignment, 58

Eniotionally disturbed

programs for the, 39

Employee benefits, 31, 125

Example distribution, of direct costs of supportservices programs, 85, 88

Examples of financial statements and reports,- 167

Executive administration services

definition, 43list, 26

Expenditure(s), 126

Encumberances accounts, 23list of, 23

(debit), 11 combined statement of revenues, illustrated, 170definition, 124 (debit), 11

181

Extended life of

a building, 67formula, 67

a remodelled building, 67determination, example, 67

formula, 67

F

Face value, 126

Facilities acquisition and consruction

definition, 126services, 44

list of, 26

Fact, 126

Fall term, 58

day, 58eveninn 58

Federal aid for education, 126

Federal program managers' use of handbook, 3

Federal revenue, 13, 126

Fedetal source of funds, 52

Fidelity bond, 126

.premiums, 35,1.26

Financial accounting

definition, 126services, 44

Financial position, changes in, illustrated, 172.

Financial statements and reports, examples of, 167

Fiscal period, 126

Fiscal services, 43

definition, 127list, 26

as a dimension, 62code, 29need for, 63

Fixed assets,127

general, 5, 9group of accounts, 127loss of, 14, 18 ...sale of, 14, 18

Flexibility, elaborateness of items provides for, 60

floating debt, 127

Floor area, 127

Food

delivery, 46, 127preparation and serving, 127 .

services, 18, 45, 58, 127fund, 30, 127list of, 14, 26

Food service assignment, 58

Foreman assignment, 53

Full-time equivalence, 1,27

Full cost of operating programs by instructionalorganizations, school, program, and per pupil;example distribution of, 89

Full-time personnel, 127

Function, 35:16, 61, 64, 127

Fund(s)

accounting, 4accounts, 127and groups of acc-,unts, 5changes in financial position for all, 172

combined balance sheet for all, 172

definition, 4, 127list of, 4 23modifications, 35object, function, 63revenues, 12

Fiscal year, 64 Fund balance, 11, 127

182

changes in,. illustrated, 171

Funded debt, 128

Funding, 128

. . .cs .

Gain or loss on sale of investments, 18, 128

General administration, 128

support services, 42

General fund, 30

definition, 128

General fixed assets accounts,

definition, 9, 30list, 5

General ledger, 128

General Jong term debt accounts, 5, 30

General maintenance assignment, 57

Gifted and talented, programs for, 37

Gift, 128.

Glossary, 115

Goals and purposes, instructional, 71

Gross income. 128

Groundskeeping assignment. 58

Grounds services, care and upkeep of, 45

Guard/watchmanAaqigannnt,-58

Guidance services, 39

list of, 25

Guide for local government agencies in establishingcost allocation plans, 81

H

, Handbook contra .tor, 164

consultants to, 164

Handbook development contributorsediting and printing, 165educational data standards branch, NCES, OE,

165

Federal officers, 163purchase and supply committee, ASBO, 164technical assistance, 164

, Handbook series, 1, 115

Health services

list of, 25Grant(s) staff, 47

in-aid, 128 student, 40

Federal, 20intermediate, 19 High school, 52State, 20

private, 128High school programs, 37

public, 128

Graphic arts assignment, 56 Home school counselor, 143

Gross earnii j.., 128 Housing authority obligation, 34

Gross floor area, 128 definition, 128

183

Housing cost, 86 Inspector assignment, 56

How the handbook may be used, 3

-

Implications for a comprehensive system, 2, 77

Implications of financial accounting for

analysis, 78information systems, 77program accounting, 70reporting, 79using the handbook, 60

Imprest system, 129

Improvement of instruction services, 41

list of, 25

Improvement other than buildings, 9, 34, 129

Income tax, 16, 129

Index, 175

Indirect cost(s), 36

allocation model, 86"and proration,'81definition, 129prorated, illustration, 87, 89ratios, 83

Indirect expenses, 129

Indirect services, 39, 47, 129

Instruction, 36

definition, 129listing of, 24services, 31

Instruction and curriculum development services, 41

Instructional

definition, 129goals and purposes, 71levels, 71

for prograM delineation, 71media services, 25

organization, 64as a dimension, 62needed in accounting, 64

type, 29program improvement services, 31program types, 29, 71staff, inservice training for, 47

,.._.staff training services, 41staff support seivices,"41

Insurance and bond bremiums, 129

Insurance and judgments, 35

listing of, 24

Interest, 34

and receivables, 129bond, 34definition, 129on dividends, 17receivable on investments, 129warrant, 144

Information services, 27 nterfund

revenues, 12transactions, 12transfers, 129

Information system

coding example, 77definition, 77requisitioning a purchase, example in, 68

Inservice training services,

Interest receivable on investments, 8

Intermediate education agency, 3

(noninstructional staff), 47 Intermediate sources of revenue, 13, 51

184

re

Internal acquisition and improvernent, 131definition, 9

auditing, 130services, 44

control, 130information services, 47, 130services

definition, 46list of, 27

Inventory, 8, 130

warehouse adjustment of stores for resale:144

Investment(s), 8, 130

gain or loss in, 17in general fixed assets, 11, 130

Invoice, 130

Law

fund, object; function required by, 6

Learners, types of, 71

Ledger, 131

Legal

assignment, 54services, 42

definition, 131

Levy, 131

Liabilities,

current, 6long term, 6

J reserves and fund balance, 6, 10

Job 61assification and activity assig *lent, 52 Liability insurance, 3f.

type of, 29Librarian/media assignment, 54

Journal, 130

entry, 130 Library

voucher, 130 books, 33capital outlay, 34

Junio

co.lege, 52, 122, 131high school, 131

Judgment(s), 130

against the LEA, 35, 130payable, 9, 131

K

Kindergarten, 131

L

Laborer assignment, 57

Land, 34, 131acquisition and development services, 44

Life enrichment program, 38

Life of a remodelled building, extended, 67

185

List of equipment, 108

List of supplies, 93

Loans receivable, 8

current, 123

Local education agency, 2, 131

Local revInue

definition, 13list of, 13

Local (source of funds), 51

Long term debt group of accounts. 4, 5, 131

Long term liabilities, 6, 11

Loss of fixed assets, 14, 18

M

Maintenance assignment, general, 57

Maintenance of vehicle services, 45

Major programs in educational resources managementsystems, 75

Management information services, 47

. services, 47

system, 132

Management services, 31

Managing/directing assignment, supervising, 53

Masoning assignment, 57

Matured bonds payable, 10, 132

Matured interest payable 10, 132

Measure, units of, 64

Middle/junior high

programs. 37, 132school. 51, 132

Midwestern states educational information project, v

Monitoring

assignment, 58services, 45

N

National steering co r rnittee, v, 145

Nature and purpose of the handbook, 1

Negotiating assignment, 54

Negotiations services, staff relations and, 43

Net income, 1:2

Net expenditure, 132

Noncategoricat, 132

Nonidentifiable (source of funds), 51

Nonprogramed charges

definition, 49Mechanic assignment, 57 list of,.:7

Media assigninent, librarian, 54 Nonpublic

Medical services, 40

Membership, 132

Memorandum accounting, 66, 132

for donated services, 36

Mentally retarded, programs for the, 37

Messenger assignment, 57

Middle school, 132

186

junior college, 133school, 133

pupil services, 49

Notre Dame University, study supervised by, v, 146

Nursery school, 133

Nurse services, 40

Nonresident pupil, 133

Nutritionist assignment, dietitian, 54

Object(s), 60. 61, 63

definition, 30, 133listing of. 23

0

Painting assignnient, 57

Payments to other governmental units

Obligations, 133

Occupational programs, 38

Official/administrative, 52

Office/clerical assignment, 56

Office of the principal. 133

services, 43

Office of the superintendent services, 43

Omibudsman assignment, 53

Operating cost, 66

procedures for calculating, 67

Operation and maintenance services

definition, 45list of, 26

Operational unit, 61, 63

definition, 49list of, 28need for, 63

Operations analysis, 69

Operations services, 48

Operative assignment, 57

Opthalmologist assignment, 54.....j./.

Optometrist assignment, 55

Overhead costs, 133

Overtime salaries, 31, 133

(outside the State), 49(within the State), 49

Payroll, 133

deductions.and withholding, 11. 133services, 44

Penalties and interest on taxes, 16, 133

Pension system, 133

Perm-nent school fund, 134

Periodicals, 33

Personnel, administrative, 134

Personnel assignment, 55

Petty cash, 7, 134

Physically handicapped, programs for the, 37

Physician assignment; 55

Placement services, 40

187

Planning, 134

assignment, 55research, development, and evaluation service-, 27,

46programing, budgeting, evaluation, system, 3, 134PBES, meaning of, 50services, 47

Plastering a-'-'jprnent, 57

Plumbing assignment, 57

Posting, 134

PPBES, meaning of, 50

Proctor...I nursing assigranent, 56

Premilirs on bonds sold, 19. 134

Prepaid espemes fr. 134

Preparatory. postsecondary education programs. 37

Preparatory postsecondary employment.programs, 37

Preparing and disp.msing food services. 46 accounting sery .-es. 44

insurance, 32, 1.s5Principal services. 23. 32

assignment. 53office of the. 43services. 43

Principal of bonds, 134

Principles of cost identification, 36

Priming and binding, 33, 134

Printing, publishing, and duplicating services 46. 134

Professional, 135

and technical services, 23, 31, 135educational, 53other, 54

Program(s); 64Psychologist assignment, 55

to, the physically h indcapped. 37

Program cost in a budding. formula. 86

Programing. 135

assignment. 56

services, 48

Property

o pt ietary acco nits. 135

Prorated costs of support services programs tooperating programs. istrsbution of. 86

Prorating, 135

Proration purpose of. 88

Psychiatrist assignment, 55

Psychological

COU1314liAL). services, 40

testing services, 40services, 40

list of, 25

as a dimension, 62categories by level of instruction, 74 Psychometrist assignment, 56categories by type of student, 74categorization, 73, 74 Psychotherapy services, 41cost accounting, 50cash in a building formula. 88 Public/community relations assignment, 55

definition, 50, 135needed for accounting, 63 Public informationplanning, budgeting, and evaluation system, 50selection, 71

definition, 135

structure by levels, 75,services, 47

of educational resources management systems, 75Public library, 135

examples of, 28for pupils with learning disabilities, 38 services, 48for the culturally deprived. 38for the emotionally disturbed, 38 Publicly owned quarters, 135for the gifted and talented, 37for the mentally retarded, 37 Public scho3lhousing authority, 135

188

Public school, 135

Public relations, 135

Public utility services, 32, 135

Publishing and duplicating services, printing, 46

Pupil accounting, 135

Real property, 136

Rebates, 136

Receipts, 136

Receiving and disbursing, 136

services, 44

services, 39 Record(s), 136

Pupil activities, 18

list of, 14

Pupil activity fund, 30, 135

Pupil appraisal services, 39

Pupil organization membership, 18, 136

Pupil services, 31

Pupil transportation, 32

services, 45, 136list of, 26

Pupils with learning disabilities, programs for, 38

Purchased services,

definition, 31, 136list of, 23

Purchase order, 136

Purchasing, 36

agent assignment, 56and supply committee (ASBO), 164services, 46, 136

Purpose of the handbook, nature and, 1

R

Rationale for expenditures classification, 60

Re& estate, 136

189

management, 136managing assignment, 57maintenance services, 40

Recruii tient and placement

definition, 136services, 47

Redemption of principal, 34, 136

Refund, 136

of prior year's expenditures, 19, 136

Refunding bonds, 136

Regional conferees,

Atlanta, 152Boston, 149Chicago, 155Dallas, 156Denver, 159Kansas City, 158New York, 150Philadelphia, 151San Francisco, 161Seattle, 161

Register, 136

Registered nurse assignment, 55

Registered warrant, 136

Registrar assignment, 55

Regular day school

transportation, 17, 136tuition, 16, 137

Regular programs, 37

listing of, 24

Regular salaries, 31, 137

Reimbursement, 137

Relationship of indirect and direct costs, chart of, 84

Relationships of costs of supporting services programs toeach other and to operating programs, 84

Remedial specialist assignment, 54

Remodeling, 137

Remodelled building, extended life of a, 67

Rentals, 32

expended, 137received, 137

Repairing vehicle services, 45

Repairs, 137

and maintenance services, 32, 137

Replacement of equipment, 137

Reporting revenues, 12

Reports

definition, 137examples of financial statements and, 167

-lequisition, 137

Research

and development assignment, 55definition, 137development and evaluation services, planning, and

evaluation, 137services, 47

Reserve(s), 137

and fund balance, 7, 11for "A" (special purpose), 137

190

for encumberances, 11, 137for inventory, 11, 137for special purpose, 11

Resident student, 138

Restricted grants-in-aid, 19, 20, 138

Retirement fund system, 138

Retraining for new occupation programs, 38

Revenue(s)

and expenditures, combined statement of, 170collected in advance, 11, 138(credit), 9definition, 138estimated, 9, 126for funds, 12for/on behalf of the LEA, 20, 21Irom Federal sources, lufrom intermediate sources, 1from local governmental units other than LEAs, 16from State sources, 15

Ecu or taxes, 19, 20, 21local, 13of LEAs, 12reported, 12

Revolving fund, 138

Salaries, 30, 138

Sales(s)

and loss of fixed assets, 18and use tax, 16, 138of bonds, 12, 19, 138of fixed assets, 18, 128to fidults, 18, 138to pupils, 18, 138

Schoolbus, 138definition, 138district, 139elementary, 125junior high, 131library services, 42middle, 132

middle/junior high, 37, 132plant, 139secondary, 139senior high, 139site, 139summer, 140system, 139term, 139

School administration, 138

services, 26support services, 43

Securities, 139

Security services, 45

Senior high school, 139

Serial bonds, 139

Service area direction, 139

Services provided other LEAs, 19

Service work assignment, 58

Shared revenue, 139

Shared tax, 139

Short term loans, 139

Significance for planning, programing, budgeting, andevaluation systems, 3

Single school, 139

Sinking fund, 139

Social scientists, list, 146

Social work, 139

assignment, 55services, 39

Source of funds, 64

as a dimension, 62

191

definition, 51, 139list, 29need for, 63

Special assessment, 119

Special cost center, 64

as a dimension, 62definition, 139examples of, 64need for, 64

Special education, 140

Special fund, 140

Special interest programs, 38

Special programs

definition, 37interest, 38list of, 24

Speech pathology and audiology services, 25

Speech pathology services, 41

Spring term

day, 58evening, 58

Staff accounting

definition, 140services, 47

Staff

health services, 47relations and negotiations, 43services, 31

definition, 47, 140list of, 27

State aid for education, 140

State and Federal relation services, 43

State funds, source of, 51

State revenue, 13

Statements and reports, examples of financial, 167

Statistical

analysis services, 48reporting services, 48services, 31, 47

definition, 140list of, 27

Statistician assignment, 55

Stores, 140

handler, 140handling assignment, 58

Student body activities, 140

Student-teaching assignment, 56

Subject matter, 71

Subject matter, being part of program, 71

Subsidiary accounts, 140

Summer school, 140

transportation, 17fees, 140

tuition, 17, 140

Summer term

Support services, 25, 39

as cost centers, 36business, 26, 43central, 27, 46definition, 140general administration, 26, 42instructional staff, 25, 41programs, 72pupils, 25, 39school administration, 26, 43

Surety bond, 140

Surplus, 140

Systems analysis, 141

services, 48

Systemwide, 141

T

Tax assessing/collecting

assignment, 53definition, 141services, 42

Tax anticipation notes, 141

Tax liens

definition, 141receivable, 7

Taxes, 15, 141

day, 58, 140collected in advance, 11

evening, 58, 140levied for other governmental units, 8, 141list of, 13

Superintendent assignment, 53receivable, 7, 141

Supervising/managing/directing assignment, 53 Teacher, 141

Supply(s), 140Teaching

aide assignment, 57and equipment, 93 assignment, 56and materials, 23, 33 assistant, 141definition, 33 assignment, 56list of, 93 intern assignment, 56

192

Technical assistance to handbook de,,elopment, 164 Trial balance, 142

Technical Trust and agency fund, 30, 142

assignment, 55Tuition, 16, 33, 142

education, 141school, vocational and/or, 143 expended, 142

received, 142Tehcniques for education evaluation, 69 student, 142

types of, 14Temporary salaries, 31, 141

Term, 64, 142Two-year branch college, 142

as a dimension, 62 Two-year technical institute, 142bonds, 142need for, 64 Types of learners, 71type of, 29

Textbooks, 33, 142

Therapist assignment. 55

Total cost, 66

Trade discounts, 142

Trade high school, vocational or, 143

Traffic control, 58

Transfer from other funds, 19, 142

Transfer(s), 35list of, 24of funds, 49pupil, 142voucher, 142

Transits, 35

Transmittal memorandum to States and LEA users 166

Transportation

fees, 17, 142list of, 14services, 23, 32

Transported student 142

Travel, 32, 142

relating to program delineation, 71

U

UCLA study committee, list, 147

Unamortized

discounts of bonds sold, 9, 142discounts on investments, 8, 143premium on bonds sold, 11, 143premium on investments, 8, 143

Unit cost, 143

Units of measure, 64

Unappropriated surplus, 143

Unencumbered balance of appropriation ofallotment, 143

University of California at Los Angeles programaccounting committee, list, 147

Unliquidated encumberances, 143

Unrestricted grants-in-aid, 19, 20, 143

Upgrading in current occupation programs, 38

Use of handbook,

auditdrs, 3

193

Federal program managers, 3intermediate education agencies, 3

Watchman assignment, 58

Warehouse inventory adjustment, 33, 144

Warehousing and distributing services, 46, 144

Vehicle Warrant(s)

V

definition, 143operating assignment, 57operating services, 45privately owned, 34, 144servicing and maintenance services, 45, 143

Visiting teacher, 143

Vocational and/or technical school, 143

Vocational or trade high schools, 143

Voucher(s), 143

payable, 10, 143system, 143

194

definition, 144interest, 144payable, 144

Welfare activities

definition, 144services, 49

Winter term

day, 58evening, 58

Withholding, 144

Work order, 144

* U. 8. GOVERNMENT PRINTING OFFICE : 1973 515-296/2093