ADE Director's Communication Memo Form


Memo Number : COM-06-088

Date Created : 05/02/2006

Attention:

Superintendents
Co-op Directors
other: District Business/Financial Officers

Type of Memo: Administrative
Response Required: No
   
Section:   APSCN - Bill Goff, Director
Subject:
Coding Requirements Effective July 1, 2006

Regulatory Authority:
N/A

Contact Person:
Kathleen Crain

Phone Number:
501-682-4887

E-mail:
kcrain@arkedu.k12.ar.us

The purpose of this memo is communicate certain financial coding changes for 2006-2007.

1. The July 1, 2006, Financial Accounting Manual will include revisions applicable to the 2006-2007 school year. This version of the manual will be posted to the Arkansas Public School Computer Network (APSCN) web site, located at http://www.k12.ar.us by May 1, 2006. The coding of all 2006-2007 transactions must conform to the requirements specified in this publication. Changes to Chapter 2, Account Classification Structure, have been shaded. Changes have also been made in Chapter 3 in order to conform with the definitions in the Federal Accounting Manual.

2. Source of Fund Code 995 will be required for Revenue from Vendors for Exclusive Rights Contracts. Any carryover from 2005-2006 should be reclassified to Source of Fund code 995 and all future revenue and expenditures related to Exclusive Rights Contracts should be recorded with this Source of Funds code.

3. Function code 2240-Student Assessment (Testing) has been added as a required function code for expenditures related to Student Assessment.

4. Function code 2320 will no longer be available for coding purposes. All expenditures relating to the Office of the Superintendent or Educational Cooperative Director must be charged to function code 2321 and only contain one FTE (full-time equivalency). Expenditures related to the Office of the Assistant, Deputy or Associate Superintendent must be charged to function code 2323. Federal Program Directors/Coordinators must be charged to function code 2324.

5. Function codes in the 2600-2699 range have been changed in order to comply with the Federal Accounting Manual.

6. Function code 2791-Crossing Guard has been removed. According to the Federal Handbook these expenditures should be charged to Function 2670-Safety. Function 2670 has been added as a new function code for 2006-2007.

7. Function codes in the 2800-2899 range have been moved to the 2500-2599 range in order to comply with the Federal Accounting Manual.

8. Function code 2990-Medicaid Match has been added as a required function code for Medicaid matching expenditures.

9. Function codes in the 4000-4999 range have been changed in order to comply with the Federal Accounting Manual.

10. Health insurance benefits should be coded to object codes 62710 and 62720. Object codes 62110 and 62120 should be used for group insurance other than Health.

11. Object codes in the 63000-63999 range have been changed in order to comply with the Federal Accounting Manual.

12. Object codes in the 64300-64399 range have been changed in order to comply with the Federal Accounting Manual.

13. In order to comply with the Federal Accounting Manual, object code 67500-Technology Equipment has been deleted and 67340-Technology Related Hardware and 67350-Technology Software have been added.

14. All athletic expenditures, regardless of the function code, must be charged to a budget unit that includes program code 115 and other, non-athletic, extra-curricular expenditures, regardless of the function code, must be charged to a budget unit that includes program code 116.

15. All expenditures, regardless of the fund, must be charged to the correct function code. Some districts utilize Activity Funds for a multitude of purposes and charge all expenditures from the Activity Fund to a common function code such as 1160." This distorts statewide reports that classify expenditures based on the function code charged. The function code that best describes the expenditure should be used.

16. No fund transfers should be made to the Activity Fund. If it is necessary to supplement an Activity Fund with Operating Funds, expenditures originally charged to the Activity Fund should be reclassified to the Operating Fund and recorded with the correct function, location, program and object code.

17. Program codes in the 900-999 range are being reserved for school district use. Required program codes will be limited to 001-899.


Attachments:
    None

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