The Director's Communication FIN-99-027 has been removed from the Web site. Please refer to this Director's Memo for information concerning Handbook IIRČ.
Effective FY 1999-00, school districts must maintain their accounting system in accordance with the Financial Accounting Manual of Handbook IIRČ (Handbook). The Handbook contains coding and definitions for fund, source of fund, location, function, object, revenue and balance sheet classifications. No classifications are listed for subject and program because these classifications are not required by the Department of Education at this time. There are also sections on maintaining an inventory accounting system and a glossary.
The only classification coding contained in the Handbook that will not be implemented in FY 1999-00 is the source of fund classifications. Source of fund classifications prescribed by the Handbook will be required beginning FY 2000-01.
Districts must code to the lowest detail level shown in the Handbook that is not italicized. The italicized coding is optional and may be used at the discretion of the district. It is included to provide greater detail in your accounting system but is not required for reporting purposes.
For fiscal year 2000-01, districts will use a location code on selected data. Location is used to designate individual schools or cost centers to allocate costs associated with their operation. Districts should use the last three digits of the school's LEA number as the location code.
If you have any questions, please contact Financial Accountability of Public School Finance and Administrative Support.