ADE Director's Communication Memo Form


Memo Number : FIN-00-033

Date Created : 04/17/2000

Attention:

Superintendents
Co-op Directors
other: Business Officials

Type of Memo: Informational
Response Required: No
   
Section:   Public School Finance and Admin Support - Ms. Patricia Martin
Subject:
Financial Accounting Announcements for the 2000-2001 Fiscal Year

Regulatory Authority:
N/A

Contact Person:
Donna Ralph

Phone Number:
501/682-5128

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

Financial Accounting Announcements for the 2000-2001 Fiscal Year

The Department is pleased to announce two innovative changes to the Annual Financial Report and Budget (AFRB) for 2000-2001.
The Report will be submitted to the State Information System by Fund/Function/Object.
The use of the building location code will only be required in conjunction with specific restricted-use funds categories and salary expenditures.

Fund/Function/Object

Local district participation in the test pull of financial data and the ideas shared with us are greatly appreciated. As a result of this test pull, the AFRB will be submitted by Fund/Function/Object in September 2000. This means that the AFRB will no longer be pulled by page and line, rather, every line of the expenditure ledger and every line of the revenue ledger will be pulled directly into the report. The Department is in the process of designing the new report. All districts and coops will be trained in the new reporting procedure this Spring.

Building Location Codes

The use of the building location code will only be required in conjunction with salary expenditures and specific funding categories. As of July 1, 2000, location coding will be required on all certified and classified salary expenditures. The Department is hopeful that in the future the use of a location code with salary expenditures will eliminate the District's submission of full time equivalent salary data (the AFRB pages 36 and 37). Some specific funding categories may require the use of Department specified source of fund and revenue codes and/or location coding in order to receive the specified funding. At this time, only the Poverty Index Funds revenues have this requirement. All districts and coops will be trained in the new reporting procedure this Spring.

The Financial Accounting Manual (Handbook) dated May 1999, is the financial coding that should be used by all school districts using Pentamation software. The Handbook provides uniform coding and definitions for fund, source of funds, location, function, object, revenue and balance sheet classifications. The coding listed for source of funds and location classifications is provided for districts that choose to utilize these coding classifications but is not mandated for all transactions. Districts should use the source of funds and location coding prescribed in the Handbook or specified by the Department when this coding is required for funding purposes.

Please contact Donna Ralph in Financial Accountability of Public School Finance and Administrative Support for questions about coding.

Attachments:
    None

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