ling account serves as a check on the accuracy of the detailed account postings and summarizes the expenditures in relation to the budget estimates.

Cost-The amount of money or money's worth given for property or services. Costs may be incurred even before money is paid, that is, as soon as a liability is incurred. Ultimately, however, money ΟΙ money's worth must be given in exchange. Again, the cost of some property or service may in turn become a part of the cost of another property or service. For example, the cost of part or all of the materials purchased at a certain time will be reflected in the cost of articles made from such materials or in the cost of those services in the rendering of which the materials were used.*

Cost Accounting-That method of accounting which provides for the assembling and recording of all the elements of cost incurred to accomplish a purpose, to carry on an activity or operation, or to complete a unit of work or a specific job.*

Cost Ledger-A subsidiary record wherein each project, job, production center, process, operation, product, or service is given a separate account under which all items of its cost are posted in the required detail.

Cost Per Pupil-See CURRENT EXPENDITURES PER PUPIL.

Cost Unit-The unit of product or service whose cost is computed.

Current-As used in this handbook, the term has reference to the fiscal year in progress.

short period of time, usually no longer than a year.* See also FLOATING DEBT.

Current Loans-A loan payable in the same fiscal year in which the money was borrowed. See also TAX ANTICIPATION NOTES.

Current Year's Tax Levy-Taxes levied for the current fiscal period.*

Day in Session-A day on which the school is open and the pupils are under the guidance and direction of teachers in the teaching process. On some days the school plant itself may be closed and the student body as a whole engaged in school activities outside the school plant under the guidance and direction of teachers. Such days should be considered as days in session. Days on which school is closed for such reasons as holidays, teachers' institutes, and inclement weather should not be considered as days in session.**

Day of Attendance-A day of attendance is one in which a pupil is present for the full day under the guidance and direction of a teacher while school is in session. When a pupil is present for only part of the day, it should be considered as a partial day of attendance in the same proportion that his time present at school bears to the total length of the school day. If overcrowded conditions make it necessary to hold two separate sessions with a different group of pupils in each session, a pupil attending for all of either session should be considered as having attended for the full day. An excused absence during examination periods or because of sickness or for any other reason should not be counted as a day of attendance.** See also DAY IN SESSION.

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Equipment-A material item of a non-expendable nature, such as a built-in facility, a movable or fixed unit of furniture or furnishings, an instrument or apparatus, machine (including attachments), an instructional skilltraining device, or a set of small articles, whose parts are replaceable or repairable, the whole retaining its identity and utility over a period of time which is characteristic of and definable for items of its class. (NOTE: This definition is a modification of that in Handbook I, The Common Core of State Educational Information.) See also chapter 11.

Estimated Revenue-If the accounts are kept on an accrual basis, this term designates the amount of revenue estimated to accrue during a given period regardless of whether or not it is all to be collected during the period; if the accounts are kept on a cash basis, the term designates the amount of revenues es

timated to be collected during a given period.*

Expenditures-If accounts are kept on the accrual basis, this includes total charges incurred, whether paid or unpaid, for current expense, capital outlay, and debt service. If accounts are kept on the cash basis, this includes only actual disbursements for these purposes. (Transfers between funds, exchanges of cash for other current assets such as the purchase of stores and investment of cash in U. S. Bonds, payments of cash in settlement of liabilities already accounted as expenditures, and the repayment of the principal of current loans are not considered as expenditures.) **

Face Value-As applied to securities, this term designates the amount of the liability stated in the security document.*

Federal Aid for Education-Any grant made by the Federal Government for the support of education. See also GRANT, PUBLIC.

Fidelity Bond-A bond guaranteeing

the school district against losses resulting from the actions of the treasurer, employees, or other persons of the district. See also SURETY BOND.

Fiscal Period-Any period at the end of which a school district determines its financial condition and the results of its operations and closes its books. It is usually a year, though not necessarily a calendar year. The most common fiscal period for school districts is July 1 through June 30.

Fixed Assets-Land, buildings, machinery, furniture, and other equip

Full-time Equivalence—The amount of employed time required in a part-time position expressed in proportion to that required in a fulltime position, with "1" representing one full-time position. It may be expressed as a percentage or as a fraction. It is derived by dividing the amount of employed time required in the part-time position by the amount of employed time required in a corresponding fulltime position. When expressed as a percentage, it should be to the nearest tenth.**

Full-time Personnel-See PERSONNEL, FULL-TIME.

Function-See CLASSIFICATION, FUNCTION.

Fund-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.

Fund, Endowment A fund from which the income may be expended, but whose principal must remain intact. See also FUND, PERMANENT SCHOOL.

Fund, General -The fund used to finance the ordinary operations of the school district. It is available for any legally authorized purpose and consists of all school money not specifically designated for some particular purpose.

Fund, Permanent School-Money, securities, or lands which have been set aside as an investment for public school purposes of which the income but not the principal may be expended. These funds have, in most cases, been derived from the sale of State school lands set aside by the Federal and/or State Government, rents and royalties, and from surplus revenue returned to the State by the Federal Government. In some instances, there may be endowment funds for individual schools. There may also be nonexistent funds which are legally recognized as an obligation; these may be considered as permanent funds.** See also ENDOWMENT FUND.

Fund, Revolving-A fund provided to carry out a cycle of operations.