Standard Receipt and Expenditure Accounts

246 Pages·2010·34 MB·English

I.
FINANCIAL ACCOUNTING FOR
LOCAL AND STATE SCHOOL SYSTEMS
Standard Receipt and Expenditure Accounts
Compiled in the Office of Education by
PAUL L. REASON
Specialist, Educational Records and Reports
ALPHEUS L WHITE
Research Assistant
COOPERATING AMOCIATION$
American Association of School Administrators
Assokiation of School Business Officials of the United States
and Canada
Council of Chief State School Officers
Department of Rural Education, National EducatiQn Association
National School Boards Association
Director of the Project: SI
FRED F. BEACH, Chief,
State School Administration
Stat. Education& Records and Rop4wts Series* Handbook N
liedletin 1957, No. 4
S.
.a
U. S. DEPARTMENT OF HEALTH,
EDUCATION, AND WELFAREp . . MARioN B. FOulom, Secretary
OFFiCA OF EDUCATION . . .
, db
LAMING', G. DIIRTHICK, COflPfli8SiOfltt
CONTINTS
P.O.
FORMCWORD
Alf&
A CK NOWLEN ht&NTs II MD. -
fa.
1NTRODUCTION Am. .1 xvi
a
Part I. BaciGit* Accounts
Chapter 1. aesstikation of Receipt Accounts
411 411111
Adapting to fund accounting; adapting to cash and
accrual bases; adapting to double and single entry;
accounting for receipts by program area; minimum and
detailed accounts; account numbers; classification of
accounts.
Chaptr 2. Do fliWiees OfItes*ot Aocoaats 8
MN. mo am.
Revenue receipts; nonrevenue receipts; incoming trans-
fen.
gg,
Pert II. 111?Ep1naUttwe Accounts
v,
Chaptr 3. Clesolf.ketiee of EXpelidhyro Meows!. 28
Adapting to fund accounting; adapting to cash and
accrual lases; adapting to Amble and single entry;
accounting for expenditures byprogram area; minimum
and detailed amunts account numbers; classification
of accounts.
e-
d
Chapter . Definitions Istpesidilere 36
1t -alloremviwwwomemilwomommompowmmal......m moo-mmeolo
i°
Admhiistration, instruction; attendance and health
services; pupil transportation services; operation of
plant; mantsiance of plant;thud charges food sem
ices and - 4odr activities; i; taliouit;y* services;
capital outlay; debt service; air 1141.traPsters
4k -
Iv
ti TENTS
Part 111 Clearing Accounts
Page
Chapter 5. a Ick of 034- 17: ,1'1 A -A _ 105
1 4111M,sNia . aims.
Place of clearing accounts in the acmunting sy
adapting to fund amounting. account numbers; cl
fication of accounts.
Cheror 6. ff)oitathietbs cf Clearing Accounts__
110
Asset accounts; liability Remounts; food services opera-
tion accounts; other ope -ounts miscellaneous
accounts.
Part IV Ana ix pondWpms
Chapter 7. Determkting, Poir-INA Expenclitune
127
Pupil unit of measure; expenditure accounts; period of
time; program areal..
-4
Chapter S. Preruthsg Experttnterits - .....
111. .. OW M11. +Oralma. 1 - - J.. 4. 130
Necessity for proraa . tion; methods for prorating ex-
penditures; considersqions in selecting a method for
prorating expenditures; application'of the methods for
prorating; establishing standards for prorating.
Part V. A Guide far Recording Receipts and Expenditures
Chapter 9. A °Wee for Itecordieg Itocoles
143
4
Explanation of guide; alphabetical index of receipt
transactketa.
Chapter 10. A Guide for noway. lispe4adbom..
t 160
I
Explanation ofguide; alphabetical index ofexpenditure
transactions.
co/mum
Pori V1 Flncindal Accounting Terminology
a
*a
['mg,
artwilew 1 1 Supplies vitc1 iuttinsi_ 191
glor Ar- %N.
Crit4ri for supply items; criteria fo, winipment items;
built-in Nuipment. a1phabetft1 list of supplies and
equipment.
-
Chapter 12. GlossesPy of Tenivrts_ _ _ _ _ ",_ 214
4
wo
sea
11k
a
4
OP.
ammo
4
FOREWORD
Financial Accounting for Local and State School Sys-
tems is the product of the cooperative efforts of five
nationwide education associations and the Office of Edu-
cation over a period of more than two years. Hundreds
of individuals constituting a broad cross section of Amer-
ican education shared in its
development,
This handbook is the baaic guide to financial account-
ing for local and Stata school sygstems in the United
State& It is the second in a series fpur handbooks in
the State Educational Recordi and ports Series under-
taken at the regtest of a number of national organiza:
tiOns. Handbook I, The Common Core of State Educa-
tional Inforaation, vras published by the
Office of
Education in 1963. Handbooks on pmpertp and person-
nel accounting will complete the series.
At the call of the U. S. Commissioner of Education in
September 1954, a policy committee for the financial ac-
counting project held its ferst meeting. Members of the
complittei *ere: Shirley Coper, :f- late Secretary,
American Associatioh of School Administrators; Joseph
'P. McElligott, Chairnian of the Accounting and Finance
Research Committee, Association of School Business Offi-
cial4 of the United States and Caziada; Edgar Fuller,
Exibutive Secretary, Council of Chief State Sthool Offi-
cells; Hoivard A. Dawson, Executive Secretary, Depart-
nunt of RuralEducation, NationalEducationAssociation (
;
and Edward M. Tuttle, Executive Secretary, -National
;cixoca Boards Association. Fred F. Beach, Chief, State
School Administration, Office of Education, served as sec-
retary of the policyomfinlitt,e.
At its initial meting, the policy committee, the
u
impose of the project the development of a financial
accmnting manual for the guidancit of school districts,
41. vs
A.14
a
.sP
4.
IVREWORD VII
mt.
State departments of education, and the Office of Educa-
tion. Agreement was reached on the 'overall plan for
sonducting the project and the steps to be taken to utilize
to the full*
extent the availablie resources of thr co-
operating organizations.
The firs for a planning conference of repre-
sentatives of the five associations and the Office of Edii-
cation to determine the scope and content of the financial
accounting manual. The planning cohference was held
November 22-23, 194
.
Following the guidelines established at the, planning
conference, Paul L. Reason compiled the first preliminary
draft of the financial accounting manual. Items included
in the draft met four basic criteria: Each item provides
information that (1) is important to a local di4rict in
the operation of the school system; (2) is important to
local school d*tricts throughout the country; (3) is
needed for comparisons among local school districts; and
(4) can b4 maintained as a record with reasonable effort.
In May 1955, a committee of three representatives of
the Association of School Business Officials of the United
States aild Canada met with Office of Education staff to
'consider the first preliminary draft. This 5-day meeting'
played an importa* part in preparing the document for
consideration at th first national conference.
The First Natis't Conference on Financial Account-
4
ing for Local Lind State School Systezns was held in With-
ington, August 16-19., 1956, to consider the preliminary
,
manualasit had beenrevind at theMay meeting.' Twenty-
seven representatives of the cooperating organizations
pip
reviewed the second draft by page. The painstaking ir
reviiw improved the doctithent and advanced the project
Immeasurably.
Ths, next step consisted Of a series of eight. 3-day re-
gional conferences to consider the revised draft embodr-
ing the recommendations of the first natAmal conference.
Thee were held during January and- February 1956 at
.
VIII FINANCIAL ACCOUNTING
Washingtoif, D. C.; Boston, Mass.; Atlanta, G&; Little
Rock, Ark. ;Lincoln, Nebr.;Salt LakeCity, Utah;Spokane,
Wash. and Chicago, Ill. The 198 conferees at these meet-
ingt, deisignated bi the cooperating organizations, repre-
. sented the States and localities where they were serving
education. Every Statewas represented. Atesting ground
was provided for determining the suitability of the man-
. ual under differinglocal and State conditions throughout
N,
the United States. Results of the regional conferences
revealed common agreement on the vastmajority of items°e"
in the revised preliminary manual. The relatively few
issues on which differences existed became topics for con-
sideration at the second national conference.
The Second National Conference on Financial Account-
ing for Local and Staie School Systems was held June 18-
20, 1956. Its membership, except in a few instances, was
the same as for the first national conference. At this
3-day meeting the issues on which the differences existed
were resolved, and final decisions were made on the con-
tents of the handbook.
After te
second nationalconference, the -handbook was
completa and duplicated. Copies were sent to each of
the participating organizations. Subsequently, each of
the five cooperating organizations officially approved the
handbook as the basic guide for financial accounting for
local and State school systems in the United States and
recommended that Federal, State, and local agencies
effect its doe promptly and completely.
Handbook II will need to be revised from time to time
to meet changing financial accounting needs. Through
such action, its effectiveness may be mahitained.
PAUL J. 11,182412, President, AmericanAssociation of School Admin.-
istrators
3. Wnaus War, President, Associationof 34o1Business Officials
Of as United States and Canada
,
.
DUN M. Ikawswzaium,Presiding, Councilof Chief ofState Selma
_olksors
11.
'
FOREWORD IX
R. EmmaTr Emus, Pruident, Department of Rural Education, Na-
timed Education Ail. lung
a
TAYLOR T. HICKS, President, National School Boards Association
LAWNS:NCI G. DicirificK, U.S. Commissioner of °Education
4r.
W Anis 0. REMAssistant Commissioner,Divisionof State and Local
School Systsms, Office of Education
E. GLENN FICATITICUTONIDirecior,Administrationof State and Local
&hoot Systems, Office of Education
611
a.
4...
7
4
.0
AC
any individuals actively shared in developing ifi handbook. T.:
Many contributions wer e by lox& and to tasks" officials
in which suge,__ons were channeled throu designatet1 refre-
4-4
Ives. In addition, a committee. of the American Institute of
ts y reviewed the draft of the manual Elnd pro-
vided constructive 'IA. ons for its improvement
It is obvious eble to list the name of each person who
made an imporaL,t ntribution. The following list is aa
ii
therefore, to repintatives of th Ve perMing associat ons
and the Office of Education who gelpated in national or re-
gional conferences where the detisions were made that deter
mined the contents of the handbook. In a few instances, one
person represented two asLciviiations at a conference and has been
listed under ftch.
Thegreat majority of individuals listed participated .n regional
4 conferences. Participation in other conferences is indicated by
numbers placed after the names of the individuals concerned,
according to the following d:
(1) Planning Conference. (8) First Nationai Conference.
(2) Committee of Stlimol Business (4) Second National Cintferente.
Officials thatrevieweA fl.r-Adraft.
Amrkan Auociüo e &hod Administrators
0. H. AMMO), Superintendent, Lan- Administrators, iirton, D. C.
caster, Pa.
(1)
C. S. BLAcKsuRN, Superinten&nt, P. C. CRUMP, Superintim
r- _
North Little Rock, Ark. Mont
I.
APRED A. FM.AcY, Superintendent, MYRON &am, Acting Sursarintm
Damariscotta, Maine dent, Shoreline Svdiool District,
EDWARD J. BRAUN, Must Supwan- Seattle, Waith.
tendent, Arlington, Va. (8) (4) WALTER W. irailinsmANt Sulmvising
M. L. Bummers, Superintendent, Principal, Uppai Township
Hillsboro, Tex. RSUchLools, Port W iiAgtion, Pa. (3)
J. FLANAtux, Ant. Super-
Jilt W. Baum, Administrative As-
intendemt., Ne*Haven, Com
sistant to the Superinteuknt, Ard-
JAMB H. FotaY, AAA. Superintend-
more, Okla.
est, Providswe, R. I.
Stmuzr ComsatAssociateSecretary., R. X Qom, Business Manager,
American Association of School Pones City, Okla.
t,
CKNONVLWX XI
14 W GOIWBAU, Superintemkrnt, et. FRANK NEWFIL, Superintendent,
Aukirn, Mass. Calhoun County, Anniston, Ala.
AusED E=. rAANT Mud. Buroarintes- WALDO OLIRM, Consultant, State De-
dent, Cranske, R. I. pariment of Education, Denver
llzwimarG. GRAY,Dfrwtmof Records co
and Accounts, Kansas tit Kans. G. WARREN PH = Superinten-
ku,AN J. HEATH, Suwintenthint, ent., Val Ind.
t-- Vt J. E. PITCHER, SuperIntenien Web-
Gummi D. ITMAITZLL, auperintmdent, ster Parish. Minden, La
.ntm. Mo. Ymt, W. Swam, Superintendent,
J. A.Humus,Suixtrinternient,F Morgan County, Berkeley Springs,
Liam, Minn. W. Va. (3)
T. J. hums
ti 4-=4 IXtimAnitif Inwre- WARD G. STAPLETON, Superinten-
wood. Wbi. &nit, Baltimore County, Towgon,
JOHN R. MARTIN, County SehoW if&
Supervisor, DeWitt, Ark a B. SULLIVAN, Superintendent, De-
WORTH iteraetaat Executive berm- Kalb, M.
tary, Amulean Amiciatitm of ARTHUR E Tom, Superintendent,
School Administrator; Washing- Sonwrsworth, N. EL
tat, D. C. (4) LLOYD T. MIME, Superintendent,
J. G. licOurEEN Superintawbant Mitchell, FL Dak.
Spartanimg, S. 0. L S. Wnvint, Superintendent, Dur-
MINA= IticOmA. Superintendent, ham, N. C.
%Talky City, N. Dak. Rimx M. WRITE, Superintendent,
RALPH D. IRIaurr, Supaintaulmt, White Pine Cminty, Ely, Nev.
Jackson, Mich, Tom WILEY, Research Director, New
JoHN D. MUfi Supsarintexhmt, Mexico Education Associatitm,
Jacks= County, Marianna, Fla. Santa Fe, N. Mex.
Vim= B. Mawr; thiperinteadint, Knows F. WOOMURY, Asst QHn-
Addando %to miioner of Education, State De-
JOHN I. MURRAY, Director of Buil- partnumt of Education, Trenton,
rasa, Witheten, Da. N. J. (1) (a) (4)
sweintion oi School Business OfAds 01 the
Mated Stake and Gawk
Ramp ARMY, Ant. Surninten- Ron Boma, Mug. Superintendent,
_ t, Itoetwister, N. Y. Kanawha County, Charleston, W.
O. 3 Auwnwr Haptsivbmw of Va.
&Mal keanntin
Baltimore, Md. GARLAND T. liaowit, Omnpireller,Ca-
BAUM Mamma, Avg. &spirt*. ball County, HuntingtAmt W. Va.
tenths* Alarm MuMir, Louis- Lim J. Bum., %sinew Manager,
vati,
Ky. Boston, 1(an.
Dims, O. AMID, Anti 8uma1n- L. O. CALHOUN, Direct= of Finance,
twito4 CommdtN. IL Duval County, Jacksonville, Fla.
L. A. Amax, rimineivallear, Pete*. Waiting D. CfmnfiuN, Ama. Superin-
kin Va.
tendent, Louisville, Ky.
Gams M. :Daiwa& Click and JAY E Cam Athabthdrative Aa
ContOrollert Pcnikaid, Ones Adam., optimism, Vt.