National School Boards Association GEORGE BOKLUND, President, Board ROBERT M. COLE, Executive Director, JUDSON V. FRANCIS, Chairman, Hen- GRACE T. GAEDE, Field Representative, California School Boards Association, Long Beach, Calif. NORMAN D. GEORGE, Vice-president, Pennsylvania School Boards Association, West Chester, Pa. JAY L. GLEASON, Secretary-Treas- EDWARD M. TUTTLE, Executive Sec- JAMES W. WHITEHEAD, Executive AUDREY WILLIAMS, School Board, Research Division of the National Education Association HAZEL DAVIS, Asst. Director of Re- SAM M. LAMBERT, Director of Research, Washington, D. C. (3) FRANK W. HUBBARD, Asst. Executive Secretary for Information Serv ices, Washington, D. C. (1) search, Washington, D. C. (1) (4) Bureau of the Census JACOB M. JAFFE, Data Collection Specialist, Washington, D. C. (3) (4) Office of Education HERBERT S. CONRAD, Director, Research and Statistical Services (1) (3) (4) EMERY M. FOSTER, Head, Reports and Analysis (1) (3) (4) LESTER B. HERLIHY, Educational Statistician (1) CLAYTON D. HUTCHINS, Chief, School SAMUEL SCHLOSS, Educational Statis- ROBERT F. WILL, Research Assistant (1) (3) (4) INTRODUCTION THIS HANDBOOK is a guide to receipt and expenditure accounting for local and State school systems. It contains standard receipt and expenditure accounts, classified and defined, and additional accounting terminology necessary to their effective use. Standard accounts and terminology are the foundation for accurate recording, reporting, and interpretation of financial information. Only when basic items of financial information have the same meaning everywhere in the Nation, can they be used profitably for all purposes. Universal use of the standard accounts and terminology in this handbook will: (a) help to insure appropriate initial recording of financial data; (b) improve the accounting for school funds; (c) improve school budgeting; (d) establish a sound basis for cost accounting; (e) improve the accuracy of local, State, and national summaries; (f) facilitate comparisons of financial information among communities and among States; (g) enable local and State educational authorities to obtain more suitable needed information for policy determination; (h) improve the accuracy of educational research; and (i) facilitate and improve reliable reporting to the public on the condition and progress of education. Certain additional features have been included in the handbook to enhance its value as a ready reference. Chapter 7 is a guide for determining per-pupil expenditures. Chapter 8 contains suggested methods for prorating expenditures. Chapters 9 and 10 provide an index for recording specific receipt and expenditure items. Chapter 11 provides criteria for distinguishing between supplies and equipment. Pertinent cross-referencing is designed to make the handbook easy to use. This handbook does not treat all phases of financial accounting. Additional handbooks dealing with student-body activity funds, stores, the general ledger, fund accounting, financial statements, and other pertinent topics are planned for future preparation. The items and terminology in this handbook have been closely correlated with the pertinent items and terminology in Handbook I, The Common Core of State Educational Information.1 1 Reason, Paul L., Foster, Emery M., and Will, Robert F. The Common Core of State Educational Information. Washington, U. S. Government Printing Office, 1953. (U. S. Department of Health, Education, and Welfare, Office of Education, State Educational Records and Reports Series: Handbook I, Bulletin 1953, No. 8.) This is necessary because both handbooks are parts of the same series. When Handbooks I, II, III, and IV have been completed, it will be necessary to reappraise items and definitions in the light of experience gained through usage to determine what modifications, if any, need to be made. Condensed outlines showing the standard receipt, expenditure, and clearing accounts are shown on pages XVIII, XIX, and XX. These outlines provide an overview of the classification of accounts. The detailed classification and definitions of accounts will be found in chapters 1 and 2. REVENUE RECEIPTS 10. REVENUE FROM LOCAL SOURCES 11. TAXATION AND APPROPRIATIONS RECEIVED 18. TRANSPORTATION FEES FROM PATRONS INCOMING TRANSFER ACCOUNTS 80. AMOUNTS RECEIVED FROM OTHER SCHOOL DISTRICTS IN THE 90. AMOUNTS RECEIVED FROM SCHOOL DISTRICTS IN ANOTHER STATE |