The purpose of this memo is to provide specific directions regarding the coding of certain financial transactions where there seems to be a lack of uniformity among school districts. If necessary, reclassify 2005-2006 transactions to conform with the following directions:
1. The July 1, 2005, Financial Accounting Manual with current year revisions is published by the Arkansas Department of Education (ADE)and is located on the Arkansas Public School Computer Network (APSCN) web site at http://www.k12.ar.us/apscndocs/finacct.pdf. The coding of all 2005-2006 transactions must conform to the requirements specified in this publication. For reporting purposes, all districts must code to the lowest detail level not italicized. Any district-defined code must logically “roll-up” to an existing required level of detail. For example: If a district defines the function code 1121 as “Elementary Instruction-1st Grade” this code would logically roll up and for state reporting purposes be grouped with function code 1120-Elementary-Instruction." All codes shown in the Financial Accounting Manual must be used for the purpose defined in the manual.
2. Source of Fund Codes are required for Federal Programs, Categorical Funds, Facilities Funds, Isolated Funding, Secondary Workforce Centers, Adult Education and Revenue from Vendors for Exclusive Rights Contracts.
3. Function 2134 is the required function code for Nurses.
4. Extra pay given teachers for non-instructional duties should not be charged to an instructional function code. A function code in the range of 2190-2199 should be used for pay related to non-instructional duties related to the supervision of students.
5. Function code 2650 is described as Vehicle Operation and Maintenance Services (Other than Student Transportation Vehicles). This function code should only be used for vehicles used in the Operation and Maintenance of Plant Services. Other vehicles should be charged to the function that utilizes the vehicle. For example, a vehicle used by the superintendent should be charged to function code 2321.
6. Program codes are required for Special Education, NSLA, athletics (unless athletic function code is used), facilities projects that utilize state facilities revenue, recruitment/retention incentives (Act 101-Second Extraordinary Session of 2003) and teachers in special settings (Act 85-Second Extraordinary Session of 2003).
7. Property Tax revenue must be properly identified in accordance with the revenue codes in the range of 11110-11169.
8. Arkansas code 6-20-401 defines revenue receipts of a school district and includes 40% Pullback within that definition. Therefore school districts must utilize the 40% Pullback amount, as calculated by the Arkansas Department of Education and shown on the Abstract of Assessments, in recording property tax revenue.
(a). If the amount collected by June 30th is less than the calculated 40% Pullback, the difference must be recorded with a journal entry by debiting "40% Pullback Receivable", account number 01215(new) and crediting revenue accounts 11120 and 11125. Account 01215 will be reduced to zero in the subsequent year after all 40% Pullback revenue has been collected.
(b). If the amount collected by June 30th is more than the calculated 40% Pullback, the excess must be recorded as a credit to "Deferred 40% Pullback", account number 04815(new). A journal entry should be made in Period 1 of the subsequent year that zeros out account 04815 and credits revenue accounts 11120 and 11125.
9. All funds received from the state must be coded to the revenue account shown on the remittance advice. State Equalization Aid (31100) no longer exists. State Foundation Funding must be charged to account 31101.