ADE Director's Communication Memo Form

Memo Number : COM-08-121

Date Created : 03/27/2008


Co-op Directors
other: District Business/Financial Officers

Type of Memo: Regulatory
Response Required: No
Section:   APSCN - Bill Goff, Director
New Financial Coding Requirements for 2008-2009

Regulatory Authority:
Ark. Code Ann. § 6-22-2203 (as amended by Act 1006 of the 2007 Regular Session)

Contact Person:
Kathleen Crain

Phone Number:


The following changes have been made to financial coding requirements for school districts and educational service cooperatives and will become effective beginning with the 2008-2009 school year (fiscal year beginning July 1, 2008):

1. Based on the requirements of Act 1006 of 2007, the following source of fund codes will be required for the applicable revenue and expenditures:

225 - Technology Grant
234 - Distance Learning
235 - Technology Improvement Grant
265 - Special Education Catastrophic Loss Funding
392 - General Facilities Funding

The Arkansas Department of Education (ADE) will have the correct source of fund and revenue code printed on the remittance document when funds are distributed.

2. Added definitions for function codes 1511, 1525, 1591, 1592 and 1593.

3. Added function code 2101 and definition for Dean of Students. Matches job code 7060 which states: “A Dean of Students shall not be hired to perform building level administrator or curriculum/program administrator duties such as evaluation of staff (licensed or classified) or developing/directing curriculum. As the title implies, this individual’s sole responsibility is working with students.”

4. The definition for function 2191, Supervision of Students, Non-Instructional, has been changed to read: “Includes all supervisory aides that are non-instructional (outside the classroom) to include bus duty, cafeteria duty, playground duty, etc. If aide is “on the bus” then that becomes a transportation expenditure (27xx). If aide is in the lunchroom doing lunchroom duties like taking up money, etc., it is food services expenditures (31xx). If aide is supervising students in the lunchroom it is function 2191.

5. The definition for function code 2324-State and Federal Relations-Federal Program Director/Coordinator was changed to include a federal funded migrant director.

6. Added function code 2325 and definition for Director of Student Services. This position is considered an executive administrative position that does not work directly with students. Duties include: enrollment, student transfer requests, coordinating due process hearings for suspended students, attendance zone issues, coordinating the activities of social workers and guidance counselors, and other duties as assigned by the superintendent.

7. Retired function code 2370-Dean of Students (added function 2101 for Dean of Students).

8. Retired function 3400-Other Non-Instructional Services.

9. Added required program code 016 for NSLA funds used to pay ACT fees for 11th grade students taking the ACT for the first time (Act 881 of 2007).

10. Changed definition for object code 66260-Gasoline to allow with functions other than 2650 and 2740.

11. Reactivated revenue code 11200-Sales and Use Tax for tax revenue a school district receives from a sales tax passed by the school district strictly to be used by the school district.

12. Added revenue code 11500 for interest received from the county that was earned on Unapportioned Taxes.

13. Per Commissioner’s Memo COM-07-138 dated 6/20/2007, program code 110 is required for all pre-school expenditures other than those funded by NSLA. NSLA funded pre-school expenditures should utilize source of fund code 281 and program code 005.

The revised Financial Accounting Manual for school year 2008-2009 is posted on the Arkansas Public School Computer Network (APSCN) web site at Open the drop down menu under FMS on the top menu bar and select “Financial Management System.” The link to the document is located in the Accounting Documentation section. All changes are listed by page number immediately following the cover page and are also highlighted throughout the manual. Additional resource information and updates have been provided in the appendix to the Financial Accounting Manual.

Please remember that the function codes in the range 1500-1599 are for direct instruction given through “Compensatory Education Programs.” Compensatory Education is defined as the instructional activities designed primarily to meet the educational needs of pupils judged to be underachievers or educationally deprived. All compensatory education must be supplemental to the normal instruction in the areas covered. Several districts are charging expenditures to function code 1525-Technology. By definition, this should be for classroom “compensatory” instruction that is supplemental to the normal instruction in the area covered. Districts using functions 1515-School Improvement, 1540-Educational Reform, and 1545-At-Risk should also attempt to utilize a function code that better describes the specific activity.


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