Accounting - District Account Types
The accounts of the District are organized on the basis of funds and account groups, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures, as appropriate.
Government resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. The various funds are grouped into seven generic fund types and three broad fund categories as follows:
Governmental Fund Types:
General Fund: The General Fund of the District is used to account for all financial resources except those required to be accounted for in another fund. All property taxes, intergovernmental revenues, charges for services, education finance act revenues, and miscellaneous revenues are recorded in this fund except amounts which are specifically collected to service debt or for which the District collects funds in a fiduciary capacity. Operational expenditures for general instruction, support services, general administration and other departments of the District are paid through the General Fund.
Special Revenue Fund: The Special Revenue Fund accounts for financial transactions of the various special projects in which the District participates. All special projects supported in whole or in part with federal, state and local resources are accounted for in this Fund. The Education Improvement Act (EIA) of 1984 required a new addition to the Special Revenue Fund. The purpose of the EIA, in general, is to provide additional funding to local school districts for the purpose of raising academic standards by providing for, among other special purposes, basic skills remediation, teacher salary increases, modernization of vocational equipment and instructional facilities.
Debt Service Fund: The Debt Service Fund is used to account for the accumulation of resources for, and the payment of, general long-term debt principal, interest and related costs on bonded indebtedness of the District. The primary financing source for the Fund is county property taxes.
Capital Projects Fund: The Capital Projects Fund is used to account for financial transactions relating to the construction, renovation or improvement of buildings and facilities, the purchase and installation of related equipment, and the acquisition of land except for those financed in the enterprise fund. These activities are generally financed through the issuance of general obligation bonds.
Proprietary Fund Types:
The Proprietary Fund Type is used to account for the District's ongoing activities which are similar to those often found in the private sector. The measurement focus is upon economic resources and the determination of net income.
Enterprise Fund: The Enterprise Fund is used to account for operations (a) that are financed and operated in a manner similar to private business enterprises - where the intent of the District is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through use charges; or (b) where the District has decided that periodic determination of revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes. The Student Nutrition Services Fund is the District's only enterprise fund and is used to account for the USDA approved school breakfast and lunch programs.
Internal Service Funds: The Internal Service Funds are used to account for the financing of goods and services provided by one department to other departments of the School District, on a cost-reimbursement basis. The District only has one internal service fund which is Warehouse Services. This fund accounts for the operation of the School District warehouse, for which supplies and materials are purchased.
Fiduciary Fund Type:
Agency Fund: Agency Fund accounts for financial transactions relating to the individual schools. These funds have no equity (assets are equal to liabilities) and do not include revenues and expenditures for general operation of the District. This accounting reflects the agency relationship of the District with the student activity organizations.
Student Activity Funds
Student Activity Funds consist of monies received by the schools to be expended for the benefit of students in accordance with District Policy. The responsibility of safeguarding, accounting, and managing Student Activity Funds is assigned to the applicable school’s principal.
The Chief Financial Officer is responsible for the design of the accounting system and the implementing of guidelines and procedures. However, the principal remains accountable for all activities of the Student Activity Fund.
Property denotes the accounting process that maintains records on assets with continued use or possession. Furniture, durable equipment, land/buildings, vehicles, etc. are forms of fixed assets. School Districts need to be concerned about these accounts in order to provide replacement data to assist management decisions, to maintain inventory records for insurance purposes and to monitor capital expenses for jointly funded programs.