ADE Director's Communication Memo Form


Memo Number : FIN-09-068

Date Created : 04/07/2009

Attention:

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

Type of Memo: Regulatory
Response Required: No
   
Section:   Fiscal and Administrative Services - William J. Goff, Assistant Commissioner
Subject:
Financial Coding Requirement for 2009/2010

Regulatory Authority:
Ark. Code Ann. § 6-20-2203

Contact Person:
Kathleen Crain

Phone Number:
501-682-4887

E-mail:
kathleen.crain@arkansas.gov

The following changes have been made to financial coding requirements for school districts and educational service cooperatives. The changes become effective beginning with the 2009-2010 school year (fiscal year beginning July 1, 2009).

1. REVENUE REQUIRED TO BE RECORDED IN FUND 2000
-- Reference Commissioner Memo # FIN-09-047

11110 - Property Taxes, Current
11115 - Property Tax Relief, Current
11120 - Property Tax – 40% P.B.
11125 - Property Tax Relief – 40% P.B.
11140 - Property Tax, Delinquent
11150 - Excess Commission
11160 - Land Redemption
11200 - Sales & Use Tax Dedicated To Education
11400 - Penalties & Interest on Taxes
11500 - Interest on Unapportioned Property Taxes

21100 - County General Apportionment
(Definition: Per the Co. Treasurer, this is money that is collected throughout the year [1/2 of the penalty on delinquent personal taxes], and is placed in the General Fund. At the end of the year, it is distributed to all districts in the county based on Average Daily Membership (ADM). It used to come through the county Board of Education, but that no longer exists. They call it county general apportionment.)

31101 - Foundation Funding
31102 - Enhanced Educational Funding
31103 - 98% Tax Collection Guarantee

MISCELLANEOUS FUNDS REVENUE:
12800 - Revenue In Lieu Of Taxes
21200 - Severance Tax
28000 - Revenue In Lieu Of Taxes
41200 - Wildlife Refuge Funds
41300 - Revenue In Lieu Of Taxes
42100 - Federal Forest Reserve
42200 - Federal Flood Control
42300 - Federal Mineral Rights
42400 - Federal Grazing Rights
42500 - Federal Impact Aid
48000 - Revenue In Lieu Of Taxes

If a district desires a FUND/SOF other than 2000 to separate expenditures by fund source for whatever reason for revenues listed above, then that source must be in range 2100-2199. Expenditures for all above revenue to be reported to the legislature will be pulled from funds 1000; 1100-1199; 2000; 2100-2199. (Example: If a district gives each campus a source of fund for budgeting purposes, then those FUND/SOFs would have to be in range 2100-2199. A transfer would be made from fund 2000 to sources 2100 to 2199 to zero out negative balances. Revenue will not be receipted in funds 2100-2199.)

Transfers allowed from fund 2000 to salary fund 1000.
Transfers allowed from fund 2000 to 2100-2199.
Transfers allowed from funds 2100-2199 to funds 1100-1199.
Transfers allowed from funds 2100-2199 back to fund 2000 (example might be cashing in of a CD and the need to transfer it back to fund 2000).

NO REVENUE OTHER THAN THE ABOVE SHOULD BE RECORDED IN FUND/SOF 2000

2. FUND 2001 will be the new ‘OTHER GENERAL OPERATING FUND’ (Non-Foundation) for receipting general unrestricted revenue formerly receipted to fund 2000 (basically local revenue code ranges 13000-19999, and all other general, unrestricted state revenue in the 30000 code range formerly receipted to fund 2000)

FUND RANGES 2002-2099 ARE RESERVED FOR DISTRICT-DEFINED RESTRICTED FUNDS.

Transfers will be allowed from fund 2001 to fund 1001.
Transfers will be allowed from funds 2002-2099 to funds 1002-1099.

3. The following Program Codes must be used to transfer Categorical Funds:
017 - Transfer to NSLA Categorical Fund
018 - Transfer to ALE Categorical Fund
019 - Transfer to ELL Categorical Fund
020 - Transfer to Professional Development Categorical Fund

4. It is now REQUIRED to use Function 2213 for substitute pay for a teacher participating in profesional development.

5. SPECIAL EDUCATION Program code 200 or 201 is required for all expenditures coded to Special education and no program code in the 200 range can be used that is not assigned. The following Programs codes are required to use for 2009-2010:
268 - Private School Proportionate Share
269 - Coordinated Early Intervening Services

6. When the expense is for SPECIAL EDUCATION in NSLA, replace the leading 0 in the Program Code to the number 2. For example:
201 – NSLA Literacy, Math, Sci. Specialist/Coaches
202 – NSLA, Professional Devel. Lit., Math/Sci.
on through to the last NSLA Program Code 216 – NSLA, ACT fees for 11th graders.

7. The following is found on Commissioner Memo COM-08-158:
School districts must dedicate nine percent (9%) of foundation funding exclusively to payment of utilities and costs of custodial, maintenance, repair, and renovation activities, which include related personnel costs, for public school facilities.

For 2008-2009, foundation funding is equal to $5,789. Therefore, a school district’s maintenance and utilities expenditure requirement for 2008-2009 will be equal to $5789 times .09 times the 2007-2008 3 QTR ADM.

School districts should code expenditures eligible to meet the 9% requirement as follows: Fund = 2000, Function = 2600 through 2699, Objects 61000 through 65199 and 65300 through 69999 (excludes 65200-65299). This will include all Operating Fund expenditures charged to Operating and Maintenance of Plant Services, except for ‘Insurance Other than Employee Benefits.’ ONLY fund 2000 expenditures count toward the requirement. No exceptions or corrections after submission of Cycle 1 data will be allowed. If the expenditures reported in fund 2000 do not meet the requirement, district will be required to set up the escrow fund as required by law.

These changes are reflected in the 2008-2009 Financial Accounting Manual, and are noted as required for the 2009-2010 fiscal year. The 2009-2010 Financial Accounting Manual will be posted on the web site, www.apscn.org by April 30, 2009. 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.

Attachments:
    None

Back to the Customer List

Copyright © 1997 Arkansas Department of Education. All rights reserved.
Department of Education Home Page