80-b. Transportation.-Amounts received from other school districts in the State for the transportation of pupils from the paying district to schools in the transporting district or to schools in the paying district. 80-c. Miscellaneous.-Amounts received from other school districts in the State for any services rendered to pupils from the paying district, except payments for transportation and tuition. Examples of the kinds of services that might be involved are health services and the use of recreational facilities. 90. AMOUNTS RECEIVED FROM SCHOOL DISTRICTS IN ANOTHER STATE 90-a. Tuition.-Amounts received from school districts in another State for education provided in the schools of the receiving district to pupils from the paying district. 90-b. Transportation.-Amounts received from school districts in another State for the transportation of pupils from the paying district to schools in the transporting district or to schools in the paying district. 90-c. Miscellaneous.—Amounts received from school districts in another State for any services rendered to pupils from the paying district, except payments for transportation and tuition. Examples of the kinds of services that might be involved are health services and the use of recreational facilities. CHAPTER 3 Classification of Expenditure Accounts THIS CHAPTER contains the classification of standard expenditure accounts included in this handbook. The classification is designed to accommodate the needs of both small and large school districts. It contains minimum essentials for all school districts and provides additional standard accounts for those districts that may wish to go beyond the minimum. ADAPTING TO FUND ACCOUNTING A FUND is a sum of money or other resources set aside for specific activities of a school district. The fund accounts constitute a complete entity and all of the financial transactions for the particular fund are recorded in them. The number and kinds of funds employed depend upon local and State laws or regulations. An ACCOUNT is a descriptive heading under which are recorded financial transactions that are similar in terms of a given frame of reference, such as purpose, object, or source. The accounts shown in this chapter are the basic accounts which should be used in accounting for the expenditures of any established fund. They are not solely for the general fund or any particular special fund.-When legal requirements or other considerations necessitate the establishment of individual funds for specific activities, appropriate standard accounts should be selected from those contained in this chapter to account for the expenditures of such special funds. It is quite likely that not all of the accounts in this chapter would be necessary, or applicable, to account for the expenditures of any given fund. In setting up the accounts for a fund, the purposes for which expenditures are made would determine which of the standard expenditure accounts would be needed. That is, if expenditures could be made from a fund for any current expense item, appropriate accounts would be selected from the classification utilizing the 100-1100 Series of expenditure accounts in accordance with the purposes for which money from the fund is expended; for example, 100 Series, ADMINISTRATION; 200 Series, INSTRUCTION; 300 Series, ATTENDANCE SERVICES; etc. If money from the fund could also be expended for Capital Outlay purposes, appropriate accounts from the 1200 Series, CAPITAL OUTLAY, would be used to account for such expenditures. In a similar manner, the expenditure accounts for any given fund can be assembled using the standard expenditure accounts in this chapter. ADAPTING TO CASH AND ACCRUAL BASES The CASH BASIS of accounting is the basis under which revenues are recorded only when actually received, and only cash disbursements are recorded as expenditures. The ACCRUAL BASIS of accounting is the basis under which revenues are recorded when earned or when levies are made, and expenditures are recorded as soon as they result in liabilities, regardless of when the revenue is actually received or the payment is actually made. Falling between these two bases are various modifications. In some cases, most items of revenue and expenditure may be handled on the accrual basis, but certain items are handled on the cash basis. This is considered a slightly modified accrual basis. In other instances, revenue items may be handled on the cash basis while expenditures are handled on the accrual basis. This is known as the modified cash basis or modified accrual basis. This handbook is not recommending any particular basis over another. The accounts presented in this handbook are for use with any basis: cash, modified cash, or accrual. ADAPTING TO DOUBLE AND SINGLE ENTRY BOOKKEEPING The accounts shown in this handbook are for use with either method of bookkeeping, double entry or single entry. When used with either method, they will result in comparable financial data among school districts. The handbook makes no recommendations as to the method of bookkeeping that should be used. ACCOUNTING FOR EXPENDITURES BY PROGRAM AREA In using information supplied by the financial accounting system, it is often necessary for a school district to know the amounts expended for the different program areas: Elementary day schools, secondary day schools, summer schools, etc. Such information can be made available in either of two ways: (1) By distributing expenditures directly to the individual program areas at the time expenditures are recorded in the accounts, which would, for most systems, involve |