Beginning with the 2009-2010 fiscal year (July 1, 2009), Source of Fund Code 000 and Source of Fund codes in the range of 100-199 are to be used solely with Foundation Funding and Enhanced Funding. All expenditures from Foundation Funding and Enhanced Funding must be charged to either Fund 1 (Teacher Salary) or Fund 2 (Operating).
Foundation Funding includes state funding (revenue code 31101), the revenue resulting from the 25 mills Uniform Rate of Tax (URT), and miscellaneous funds revenue. Miscellaneous funds revenue include:
Federal Forest Reserves (42100),
Federal Grazing Rights (42400),
Federal Mineral Rights (42300),
Federal Impact Aid (42500),
Federal Flood Control (42200),
Wildlife Refuge Funds (41200),
Severance Taxes (21200),
Revenue in Lieu of Taxes (12800),
and Local Sales and Use Taxes Dedicated to Education (11200).
Enhanced Funding includes state funding in revenue code 31102.
If districts have voted Maintenance and Operations mills in excess of the 25 mills URT, and/or excess Debt Service mills (voted debt service mills not needed to service bonded debt), the Arkansas Department of Education (ADE) will adjust expenditures to account for the mills above the URT. Therefore districts should code expenditures from Maintenance and Operations mills above 25 and excess Debt Service mills as though the expenditures are from foundation funding.
A more detailed explanation of this financial coding requirement was posted to the FMS listserv on December 19, 2008. A copy is attached for reference purposes.