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Charter Schools

For additional compliance guidelines issued through SBOA Bulletins, please see this page.

Charter School - Uniform Compliance Guidelines Manual

  • Introduction

    INTRODUCTION


    Each Charter School Organizer in accepting the responsibility of administering the financial affairs of the school must recognize not only its responsibilities toward the educational needs of the student population of the school but also the organizer's relationship with and responsibilities toward the taxpayers of the State. Among other items, faithful performance of duty requires accurate accounting and informative reporting of all financial transactions and the establishment of sound business practices for effective and efficient operation of all schools.

    A prescribed accounting system for any area of government, including the charter schools, must be flexible enough to adapt to units which are large, small or intermediate in size. The system must be capable of functioning as a manual system or one which may be maintained with mechanical or with electronic data processing equipment. A system must be organized to provide a uniform classification of receipts and disbursements, effective internal controls and audit trails for post-audit purposes. Additionally, the system must conform to legal requirements as established by legislation and administered by the controlling agencies.

    The information contained herein is intended to assist you and does not represent legal advice, or a legal opinion, references to statutes or other authoritative materials may not be all inclusive.

    SCOPE OF THE SYSTEM - APPROVAL OF FORMS

    The accounting system detailed in the Manual is intended to cover fund accounting by program for any charter school in the State of Indiana with adequate provision for separation by Object classification.

    All the necessary forms for fund, program and object accounting are prescribed by the State Board of Accounts in accordance with the Indiana Public Accounting Law. These forms can be used in their original design for manual systems. Although the accounting forms and ledgers cannot be used in systems utilizing electronic data processing equipment, such systems must provide, as a minimum, the information contained in the manual system with no changes in the fund accounting requirements or the classifications of receipts and expenditures.

    When the forms and ledgers are modified for use with computer hardware and software, they must be submitted to the State Board of Accounts for approval as replacements for the prescribed forms. The approval process necessitates submitting, to the attention of the State Examiner, each of the forms exactly as they must be modified for use with a computer and a letter from the charter school requesting approval for use in the system of the charter school. The forms submitted shall be a facsimile of the prescribed system (headings of reports, etc.). Otherwise a cross-reference to the prescribed form intended to be replaced shall be submitted.

    As a result of advances in computer technology, some computer hardware, software, and application systems can now produce exact replicas of the forms prescribed by the State Board of Accounts. Additionally, some of the prescribed forms are currently replicated on continuous, preformatted computer paper.

    The State Board of Accounts prescribes the required accounting system forms, but does not specify the source from which the forms must be obtained. Therefore, the State Board of Accounts will not take exception to the use of forms which provide exact replications of the prescribed forms created by the computer printer or utilizing continuous form computer paper. These exact replications must be identical to the prescribed forms in format, titles and locations of data. These exact replications of prescribed forms are not required to be submitted to the State Board of Accounts for approval and each form should be identified as "PRESCRIBED BY THE STATE BOARD OF ACCOUNTS" in the same location as on the prescribed form.

    DEFINITIONS

    The following are definitions, for the purposes of the manual, of frequently used terms.

    Clearing Account - A memorandum account for controlling charter school assets or liabilities detached from the regular operation accounts of the charter school.

    Contractual Service - A service performed under contract, express or implied, by persons or firms other than charter school personnel.

    Expenditure Account - An account for recording amounts expended for a specific purpose.

    Fund - A complete accounting entity established for controlling available cash, which has been collected for either general or specific purposes, through the recording of both receipt and disbursement transactions.

    Ledger - A collection, group, book, or file of ledger accounts.

    Ledger Account - A page, sheet, card, or other hard copy provision for recording all transactions of a particular or related nature.

    Object - Identifies the expenditure by function or purpose.

    Program - An account for recording and controlling the expenditure of amounts for a general area of related purposes.

    Receipt Account - An account for recording amounts received from the same source.

    Salaries - Amounts paid for personal services of employees of the charter school, whether on an annual, a monthly, a daily or an hourly basis.

    SINGLE ENTRY ACCOUNTING SYSTEM

    The description of the system prescribed in the manual is generally for use as a single entry system on the cash basis of accounting. It is provided with certain Clearing Accounts which are used as memorandum accounts to provide a record of transactions that temporarily change the nature of some assets or liabilities. The proper use of the system will provide the school administration, its governing body, and the controlling state and federal agencies with the necessary information regarding financial transactions of a current operating nature. Subsidiary ledgers are necessary to maintain area cost or property and plant records which may be desired or found to be necessary for other purposes. Some of these may be included as component parts of a double entry system.

    DOUBLE ENTRY ACCOUNTING SYSTEM

    Although the Manual does not mandate the use of double entry accounting for charter schools, it does not prohibit the adoption of a double entry accounting system. The system described herein can be modified to double entry accounting.   Some additional accounts that are required are presented in this part along with representative journal entries and "T" accounts showing the results of those journal entries.

    The fund concept is followed throughout the Manual; therefore the balance sheet accounts presented are for specific funds. Each fund has its own set of self-balancing accounts.

    Capital assets and long term debt are not recognized in individual funds, but are recorded in two separate self-balancing groups of accounts.

    Each fund has asset, liability, budgetary, and fund balance accounts in which are recorded on a control basis all of the transactions affecting that fund. Subsidiary appropriation, expenditure, and revenue accounts are maintained in the manner explained in other parts of the Manual. The General Ledger Control Accounts are for the most part posted from totals developed from posting detailed appropriation, encumbrance, expenditure, and revenue accounts.

    The system as presented herein embraces double entry accounting but is not on an accrual basis. That is, revenue is not recognized until actually received and expenditures are not recognized until the cash disbursements are made. The concept of profit accountability and the necessity to properly match revenue with the expense of generating the revenue typically present in commercial accounting systems is not pertinent to school accounting. Instead, emphasis is placed on the disclosure of dollar accountability and the matching of actual expenditures with planned expenditures as presented in the school budget.

    Therefore, in summary, emphasis shifts from accounting practices concerning the matching of costs and revenues toward techniques designed to account for and control the expenditure of funds in accordance with predetermined plans as shown by the budget adopted by the school board.


    CHART OF ACCOUNTS GENERAL FUND

    Asset and Budgetary Accounts

     

    Cash

     

    Petty Cash

     

    Cash Change

     

    Investments

    *

    Supplies Inventory

     

    Estimated Revenue

    #

    Encumbrances

    #

    Expenditures


    Liability, Fund Balance and Budgetary Accounts

     

    Payables

    #

    Revenue

    #

    Appropriations

     

    Reserve For Encumbrances – 2009

     

    Reserve For Encumbrances - 2010

    *

    Reserve For Supplies Inventory

    Liability, Fund Balance and Budgetary Accounts

    Fund Balance


    * Optional Account


    # These are control accounts for which detailed subsidiary accounts are provided in the prescribed system.


    In order to show the interrelationship of the balance sheet accounts and the method of posting them, some typical journal entries are illustrated.


    The first group are those that would be required to initially set up the double entry system.


    The second group illustrates various transactions. These entries are presented in summary form for an entire period. Actual entries would be made from totals of postings to subsidiary ledgers on a monthly basis.


    The third group illustrates the method of closing the nominal or temporary accounts at the end of the year.


    The fourth group illustrates capital asset requirements.


    SPECIAL REVENUE FUNDS


    Asset and Budgetary Accounts

     

    Cash

     

    Investments

    #

    Encumbrances

    #

    Expenditures

     

    Estimated Revenue

    Liability, Fund Balance and Budgetary Accounts

     

    Payables

    #

    Revenue

     

    Reserve For Encumbrances - 2010

    #

    Appropriations

     

    Fund Balance


    # Control Accounts for which subsidiary ledgers are included in the prescribed system.


    DEBT SERVICE FUND


    Asset and Budgetary Accounts

     

    Cash

     

    Investments

    #

    Expenditures

     

    Estimated Revenue

    Liability, Fund Balance and Budgetary Accounts

     

    Payables

    #

    Revenue

    #

    Appropriations

     

    Fund Balance


    # Control Accounts. Detailed accounts in subsidiary ledgers are included in prescribed accounting system.

    CAPITAL PROJECTS FUND


    Asset and Budgetary Accounts

     

    Cash

     

    Investments

    #

    Encumbrances

    #

    Expenditures

     

    Estimated Revenue

    Liability, Fund Balance and Budgetary Accounts

     

    Payables

    #

    Revenue

     

    Reserve For Encumbrances - 2010

    #

    Appropriations

     

    Fund Balance


    # Control Accounts for which subsidiary ledgers are included in the prescribed system.


    Reserve for Encumbrance accounts are established for each year in which construction contracts are signed and carried forward from year to year until the particular project is completed or abandoned.


    CAPITAL ASSETS


    Assets

    Land

    Structures and Improvements

    Equipment

    Other Credits

    Investment In Capital Assets


    The capital assets is a group of accounts in which are recorded acquisition of all capital assets.


    The entries in these accounts are made in addition to the normal posting to the regular fund accounts. For example the purchase of equipment costing $10,000 would be recorded in the General Fund as follows:


    Expenditures

    10,000

    Cash

    10,000


    The corresponding entry in the capital assets group is:


    Equipment

    10,000

    Investment in Capital Assets

    10,000


    These accounts would be used only if capital assets are to be recorded in the accounting records.


    GENERAL LONG TERM DEBT ACCOUNT GROUP


    Assets

    Amount Available in Debt Service Fund

    Amount To Be Provided for Retirement of Long Term Debt

    Assets


    Liability

    Leases Payable

    General Obligation Bonds Payable


    The general long term debt account group is a group of accounts in which are recorded the unmatured portion of the school corporations long term indebtedness.


    OTHER FUNDS


    Other funds of the School Corporation would be kept with generally the same Chart of Accounts as the General Fund or Capital Projects Fund.


    IMPLEMENTATION OF DOUBLE ENTRY ACCOUNTING SYSTEM


    School corporations that desire to implement a double entry accounting system should contact the State Board of Accounts for assistance before proceeding.


    ILLUSTRATED JOURNAL ENTRIES


    Opening Entries

    (1)

    Cash

    10,000

     

    Petty Cash

    100

     

    Cash Change

    500

     

    Fund Balance

    10,600

     

    To set up cash balances and fund balance.

     

    (2)

    Investments

    5,000

     

    Fund Balance

    5,000

    To set up cost of investments not previously recorded.

    (3)

    Supplies Inventory

    2,000

     

    Reserve For Supplies Inventory

    2,000

     

    To set up initial supplies inventory (these accounts are optional and would not ordinarily be used).


    (4)

    Fund Balance

    1,500

     

    Reserve For Encumbrances - 2010

    1,500

     

    Set up prior year encumbrances to be carried forward to current year.  This entry would be made only when double entry records


    are established for the first time. The Reserve for Encumbrance Account will ordinarily be carried forward from the previous year.


    The above entries set up the basic General Ledger for the first time.


    Transaction Entries

    (5)

    Estimated Revenue

    100,000

     

    Appropriations

    95,000

     

    Fund Balance

    5,000

    To establish estimated revenues and appropriations at the beginning of the budget year. If the appropriations had been in excess of Estimated Revenue the balancing entry to Fund Balance would have been a debit.

    Opening Entries

    Transaction Entries


    (6)


    Encumbrances


    4,000

     

    Reserve For Encumbrances - 2010

    4,000

    This account records the balance of encumbrances as shown by subsidiary appropriation and encumbrance ledgers. It should be adjusted to actual outstanding encumbrances before financial statements are taken from the records, but at least at June 30 and December 31 each year. Most school corporations will find it desirable to make the entry monthly. At the end of the budget year, the Encumbrance Account will be closed and the Reserve for Encumbrances carried forward to the succeeding year.

    (7)

    Expenditures

    95,400

     

    Cash

    95,000

     

    Payroll Deductions

    400

    To record cash expenditures and payroll deductions. This entry is made from totals of posting subsidiary appropriation and expenditure ledgers.

    (8)

    Cash

    102,000

     

    Revenue

    102,000

     

    To record revenue received.

     

    (9)

    Reserve For Encumbrances - 2009

    100

     

    Fund Balance

    100

    This entry cancels the encumbrances brought forward from the prior year and credits fund balance with the excess of the encumbrance brought forward over the actual expenditures made against the encumbrance.

    (10)

    Cash

    2,600

     

    Investments

    2,500

     

    Revenue

    100

     

    To record liquidation of investments and interest received.


    (11)

    Investments

    3,000

     

    Cash

    3,000

     

    To record purchase of investments.

     

    Closing Entries

    (a)

    Reserve For Encumbrances - 2009

    1,400

     

    Appropriations

    95,000

     

    Fund Balance

    3,000

     

    Expenditures

    95,400

     

    Encumbrances

    4,000

    (b)

    Revenue

    102,100

     

    Estimated Revenue

    100,000

     

    Fund Balances

    2,100


    Note that expenditures includes both expenditures from current year appropriations and expenditures from prior year encumbrances brought forward.


    "T" ACCOUNTS SHOWING ILLUSTRATED JOURNAL ENTRIES

    ANYWHERE, INDIANA CAPITAL ASSETS TRIAL BALANCE


    July 1, 2009


    Land

    $      30,000

     

    Buildings

    500,000

     

    Improvements Other Than Buildings

    100,000

     

    Machinery and Equipment

    800,000

     

    Construction in Progress

    --

     

    Assets Under Capital Lease

    --

     

    Investments in Capital Assets:


    General Fund

     

    $     800,000

    Special Revenue Fund

     

    200,000

    Capital Projects Funds

     

    400,000

    Donations

     

    30,000

    Totals

    $ 1,430,000

    $ 1,430,000


    JOURNAL ENTRIES


    Example 1


    Capital assets of $10,000 (machinery and equipment) are purchased outright from the General


    Fund.

     

    DR      

    CR      

    Machinery and Equipment

    $ 10,000

     

    Investment in Capital Assets - General Fund

     

    $ 10,000

    (To record purchase of capital assets with


    General Fund resources.)

      

    Example 2


    A capital assets (truck) is purchased from the General Fund for $15,000 ($17,000 less trade-in of


    $2,000 for capital assets originally purchased for $14,000 from the General Fund).


     

    DR      

    CR      

    Machinery and Equipment

    $ 17,000

     

    Investment in Capital Assets - General Fund

     

    $ 17,000

    (To record purchase of capital assets with trade-in from General Fund resources.)

      

    Investment in Capital Assets - General Fund

    $ 14,000

     

    Machinery and Equipment

     

    $ 14,000

    (To record retirement of trade-in.)

      





    Example 3


    A computer system is acquired through the General Fund through a capital lease at a cost of






    $25,000 - net present value. The total of all lease payments if $35,000 ($10,000 represents the interest portion of the lease).


     

    DR      

    CR      

    Assets Under Capital Lease

    $ 25,000

     

    Investment in Capital Assets - General Fund

     

    $ 25,000

    (To record assets acquired through a capital lease.)

      

    Example 4


    $20,000 is expended from a Capital Projects Fund for the construction of a new building not yet completed.


     

    DR      

    CR      

    Construction in Progress

    $ 20,000

     

    Investment in Capital Assets - Capital Projects Fund

     

    $ 20,000

    (To record expenditures incurred in Capital Projects Funds for construction.)

      

    Example 5


    Another $30,000 is expended for the building from the Capital Projects Fund and the building is completed.


     

    DR               CR  

    Buildings                                                                  $

    50,000

    Construction in Progress

    $ 20,000

    DR      

    CR      

    Investment in Capital Assets - Capital Projects Fund

    30,000

    (To record completed building project.)

     

    Example 6


    Capital assets originally costing $30,000 from the Transportation Fund are sold for $5,000.


     

    DR      

    CR      

    Investment in Capital Assets - Special Revenue Funds

    $ 30,000

     

    Machinery and Equipment

     

    $ 30,000

    (To record sale of capital assets originally purchased with transportation funds.)

      

    Example 7


    Capital assets with an original cost of $10,000 are considered obsolete and scrapped.


     

    DR      

    CR      

    Investment in Capital Assets - General Funds

    $ 10,000

     

    Machinery and Equipment

     

    $ 10,000

    (To record disposal of equipment.)

      

    Example 8


    The school corporation receives a donation of ten (10) acres of land from the Chamber of Commerce with a fair market value of $50,000.


     

    DR      

    CR      

    Land

    $ 50,000

     

    Investment in Capital Assets - Donations

     

    $ 50,000

    (To record donation of land.)

      

    ANYWHERE, INDIANA CAPITAL ASSETS TRIAL BALANCE


    July 1, 2007


    Land

    $      80,000

     

    Buildings

    550,000

     

    Improvements Other Than Buildings

    100,000

     

    Machinery and Equipment

    773,000

     

    Construction in Progress

    --

     

    Assets Under Capital Lease

    25,000

     

    Investments in Capital Assets:


    General Fund

     

    $     828,000

    Special Revenue Fund

     

    170,000

    Capital Projects Funds

     

    450,000

    Donations

     

    80,000

    Totals

    $ 1,528,000

    $ 1,528,000

  • Prescribed Forms

    PRESCRIBED FORMS


    DESCRIPTION OF PRESCRIBED FORMS


    The forms prescribed to be used by school corporations in the application of the system are listed below and are discussed in the following part. Some of these forms, as indicated, are illustrated in the appendix following Part 9.

    *

    Requisition Blank (Form 500)

    Exhibit A

     

    Quotation Blank (Form 501)

     

    *

    Purchase Order (Form 98)

    Exhibit B

    *

    Accounts Payable Voucher (Form 523)

    Exhibit C

    *

    Payroll Schedule and Voucher (Form 99)

    Exhibit D

     

    Publisher's Claim (Form 99P) (Revised 1995)

     

    *

    Mileage Claim (Form 101)

    Exhibit E

    *

    Schedule of Payments Due School Bus Independent Contractors for Pupil Transportation (Form 504)

     
     

    Exhibit F

    *

    Accounts Payable Voucher Register (Form 364)

    Exhibit G

    *

    Fund Ledger and Ledger of Receipts (Form 508)

    Exhibit H

     

    Ledger of Appropriations, Allotments, Encumbrances, Disbursements and Balances (Form 512)


    Exhibit I

    *

    Treasurer's Daily Balance of Cash and Depositories (Form 361)

    Exhibit J

    *

    Storeroom Record (Form 513)

    Exhibit K

    *

    Teacher's Service Record (Form 514)

    Exhibit L

    *

    Employee's Service Record (Form 99A)

    Exhibit M

    *

    Employee's Earnings Record (Form 99B)

    Exhibit N

    *

    Check in Duplicate (Form 509)

    Exhibit O

    *

    Payroll Check in Triplicate (Form 516)

    Exhibit P

    *

    Receipt in Duplicate (Form 517)

    Exhibit Q

     

    Bond Register (Form 53)

     

    *

    Register of Investments (Form 350)

    Exhibit R

     

    Register of Insurance (Form 351)

     
     

    Treasurer's Daily Balance of Cash, Depositories and Investments (Form 361)

     
     

    Report of Collections (Form 362)

     
     

    Receipt Register (Form 370)

    Exhibit V

     

    Contractor's Combination Bid Bond and Bond for Construction (Form 86)

     
     

    Contractor's Bond for Construction (Form 86A)

     
     

    Contractor's Bid for Public Work (Form 96)

     
     

    Authorization Agreement for Automatic Deposit (Electronic Funds Transfers Form 368)

     

    *

    Official Receipt - Individual Curricular materials Rental List (Form TBR-2, Rev. 1997)

    Exhibit S

     

    Application for Free Meals or Reduced Price Meals and Other Benefits


    (Form 521)

     
     

    Application for Free Milk and Other Benefits (Form 522)

     
     

    Capital Assets Ledger (Form 369, Revised 2004)

    Exhibit T

     

    Transfer Tuition Statement (Form 515)

     

    *These forms illustrated in the Appendix.


    School Lunch and Curricular Materials (Textbook Rental) prescribed forms can be found in the Accounting and Uniform Compliance Guidelines Manual for Extracurricular Accounts.

    REQUISITION BLANK (Form 500)


    The Requisition Blank (Form 500) is to be used by all departments making requisitions for supplies or equipment to be purchased or for items to be provided from the storeroom. The form is self-explanatory and must be prepared in triplicate; one copy to be retained by the department making the requisition, one copy to be sent to the business office and the other copy sent to the storekeeper or purchasing agent.


    QUOTATION BLANK (Form 501)


    The Quotation Blank (Form 501) is prescribed for use in securing competitive price quotations on school supplies, materials and equipment without advertising for bids. Quotation Blank (Form 501) should be used only when the purchase of any item of supplies, materials or equipment will cost less than $50,000.


    PURCHASE ORDER (General Form 98)


    The Purchase Order (General Form 98) form in triplicate is prescribed for the placing of orders for school supplies, materials, goods and equipment. The original (with a claim blank) is forwarded to the vendor, the duplicate is filed in the ordering department or school to be used as a receiving copy and the triplicate is retained in the file of the business office as a public record. The purchase order should show the amount of the purchase, if known, or if not known an estimate should be made. The actual or estimated amount should be posted as an encumbrance to the Ledger of Appropriations, Allotments, Encumbrances, Disbursements and Balances (Form 512) in the "Value of Purchase Orders Encumbered" column and added to the amount in the "Value of Purchase Orders Outstanding" column of the Expenditure Account concerned and carried in accumulated totals to the corresponding column of the program account.


    ACCOUNTS PAYABLE VOUCHER (FORM 523)


    The Accounts Payable Voucher (Form 523) must be used in accordance with the following conditions: School corporations may not draw a warrant or check for payment of a claim unless; (1) there is a fully itemized invoice or bill for the claim; (2) the invoice or bill is approved by the officer or person receiving the goods and services; (3) the invoice or bill is filed with the fiscal officer; (4) the fiscal officer audits and certifies before payment that the invoice or bill is true and correct; and (5) payment of the claim is allowed by the board having jurisdiction over the allowance of the payment of the claim.


    PAYROLL SCHEDULE AND VOUCHER (General Form 99)


    The Payroll Schedule and Voucher (General Form 99) should be used to prepare all payrolls from the attendance records of the employees listed thereon. The attendance information should be supplied to the business office by the school principal or by the department head for all employees under his jurisdiction or supervision.


    Upon completion of the payroll claim by the business office, the certificate must be executed by the superintendent of schools or the business manager of the school corporation (provided the business manager is not also the treasurer) and the attest or approval signed by the treasurer of the school corporation. The payroll claim should then be processed, numbered, allowed by the school board and filed in numerical sequence with other claims.


    The applicable amounts will be posted from the form to the proper expenditure account, program and fund, as well as to the Employee's Earnings Record (Form 99B).

    PUBLISHER'S CLAIM (General Form 99P)


    The Publisher's Claim (General Form 99P) is designed to serve as a claim by the publisher in all cases where the law now provides for the publication of notices in any newspaper.


    After the claim has been filed by the publisher, processed by the business office, allowed by the school board and the check issued, it should be filed numerically with the other claims.


    MILEAGE CLAIM (General Form 101)


    The Mileage Claim (General Form 101) is designed to serve as a claim for mileage reimbursement to be presented to the school board for allowance.


    Administrators, teachers and other employees may be reimbursed for actual miles traveled in their own motor vehicles on official business of the school corporation at a reasonable rate per mile as fixed by a resolution of the school board. Reimbursement mileage shall not include travel to and from the employee's home and place of employment. If two or more persons ride in the same motor vehicle, only one mileage reimbursement is allowable. The odometer reading columns on the form are to be used only when distance between points cannot be determined by fixed mileage or official state highway map.


    After the claim has been completely processed, allowed by the school board, and the check issued, it should be filed numerically with the other claims for the same period.


    If travel is required of a teacher in order to hold classes in more than one location during the year, the amount of reimbursement for the travel should be stated in the contract and drawn periodically by using the form as outlined above.


    SCHEDULE OF PAYMENTS DUE SCHOOL BUS INDEPENDENT CONTRACTORS FOR PUPIL TRANSPORTATION (Form 504)


    The Schedule of Payments Due School Bus Independent Contractors for Pupil Transportation (Form 504) provides the business office with a means of conveniently scheduling payments to those school bus drivers who own a part or all of their equipment and are under contract for pupil transportation. The use of the schedule eliminates the need for each contractor to file a separate claim for each period in which payment is due. The schedule must be prepared for each period for which a payment is due the school bus contractors and requires approval by the business office and allowance by the school board in the same manner as other claims.


    The total amount of each of these schedules is posted to the proper expenditure account in the program which includes transportation and carried to the program and fund accounts in the accumulated totals for the posting run.


    ACCOUNTS PAYABLE VOUCHER REGISTER (General Form 364)


    The Accounts Payable Voucher Register (General Form 364) is designed so that the form may be prepared in a standard typewriter or handwritten and contained in a standard post binder. All mileage claims, accounts payable vouchers, payroll vouchers, publisher's claims and schedules of payments to school bus contractors shall be listed on the record in claim number sequence and the action of the school board on each claim shall be noted. Space is provided for the board members and treasurer to sign the register if they do not wish to sign each claim.

    FUND LEDGER AND LEDGER OF RECEIPTS (Form 508)


    As the title indicates, the Fund Ledger and Ledger of Receipts (Form 508) is designed for the purpose of maintaining two distinctly separate ledgers; namely, the "Fund Ledger" which provides a record of receipts, disbursements and balances for each fund in use, and the "Ledger of Receipts" which provides a record of all receipts detailed as to source from which derived.


    A separate ledger account shall be prepared for each fund and for a control of all funds. When used as a fund ledger, no information will be entered in the blank spaces following "Source of Receipt" or "Receipt Account Number" on the upper margin.


    A separate ledger account shall be prepared on Form 508 for each receipt account listed in the chart of accounts for each fund in which activity is anticipated. The separate ledger will constitute the "Ledger of Receipts."


    After preparing the ledger accounts, arrange them so the "All Funds-Control" account is first, followed by the "General Fund" account. Follow the General Fund account with an account for each "Receipt Account" of the General Fund in numerical sequence. Arrange the other fund and receipt accounts in the same manner following the last Receipt Account of the General Fund.


    The "Fund Ledger" accounts will be used as control accounts for both receipts and disbursements, the details of which will be posted to the "Ledger of Receipts" and the "Ledger of Appropriations, Allotments, Encumbrances, Disbursements and Balances," Form 512. Each ledger account must be totaled and footed monthly, the totals of all accounts proved to the control account for each fund and for all funds at the close of each month, and then reconciled monthly with the balances in the depository accounts.


    An account on the form will also be prepared for each "Clearing Account" used by the school corporation. For example, for the federal tax payroll deductions, an account should be prepared showing "Clearing Account-Payroll Deductions" as the fund title, "920" as the fund number, "Federal Tax" as the source of receipt and "921" as the receipt account number. The total federal tax deductions for each payroll is entered in the "Receipts" column (921.1) when the payroll is posted. The check for transmittal of these funds to the proper payee is posted to the account in the disbursements column (921.2). Receipts to a clearing account increase the amount in the "Balance" column and disbursements from the account decrease the balance.


    The clearing accounts are to be arranged in account number sequence in accordance with the chart of accounts and placed in the same binder with the Fund Ledger and Ledger of Receipts following the last fund and receipt account in the ledger.


    LEDGER OF APPROPRIATIONS, ALLOTMENTS, ENCUMBRANCES, DISBURSEMENTS AND BALANCES (Form 512)


    The Ledger of Appropriations, Allotments, Encumbrances, Disbursements and Balances (Form 512) serves as a control over appropriations and allotments. It is designed to serve as a Program Distribution Ledger, as an Encumbrance Ledger and as a Disbursement Ledger. A separate ledger account must be prepared for each program within each fund and one for each expenditure account within each program in which activity is anticipated during the year.


    The program account (which will serve as a control over all expenditure accounts within the program for each fund) will show the fund title and number, the program title and the program account number. The first entry on the record each calendar year will be the amount of the appropriation approved in the annual budget. Any balance remaining in the appropriation on June 30 when the accounts are closed for the school fiscal year, will be carried forward to open the account on July 1, the beginning of the new fiscal year.

    The expenditure accounts will show the fund title and number, the program title and the expenditure account title and number from the master chart of expenditure accounts. The first entry on the record each calendar year will be the amount of the allotment approved by the school board. Balances on June 30 are carried forward to July 1 in the same manner as appropriation balances in the program accounts.


    Arrangement and further use of these accounts is detailed in Part 6, Accounting for Disbursements.


    TREASURER'S DAILY BALANCE OF CASH, DEPOSITORIES AND INVESTMENTS (General Form 361)


    The Treasurer's Daily Balance of Cash, Depositories and Investments (General Form 361) provides for a daily accounting for total cash activities, both as to receipts and disbursements. It provides for a daily proof between record balances and cash in the bank plus cash on hand. Also, when more than one depository is used, the record provides a guide to the treasurer in maintaining deposits in the banks in the predetermined ratio that is applicable. It further provides a record of investments purchased from total monies on deposit.


    Entries are made on the record in totals only and, to be current, they must be posted each day that a financial transaction occurs.


    STOREROOM RECORD (Form 513)


    The Storeroom Record (Form 513) is a form detailed to provide an accurate accounting for each item of receipts to and withdrawals from the central storeroom. A separate form is to be used for each item. The record provides the basis for a perpetual inventory of all items in the central storeroom.


    If a storeroom is maintained, a ledger account shall be established on Form 508 in the Clearing Accounts section of the Fund Ledger to provide a control over the storeroom record. The Clearing Account will be charged with all payments for supplies or materials purchased for the central storeroom and will be credited with all withdrawals as they are requisitioned on Form 500 and removed for use. The balance shown on the clearing account should reflect at all times the value of the inventory of the storeroom. The balance should be verified periodically by an actual physical inventory.


    TEACHER'S SERVICE RECORD (Form 514)


    Prepare a page of the form for each teacher. It is to be maintained as a permanent record of the teacher's service and as proof of payments on the teacher's contract. The form is designed to record one contract year of service on each page. The accumulated sick leave unused in former years shall be brought forward each year and entered in the "Balance Sick and Quarantine Days Unused" column. Enter the number of days available for the current year's contract (including not to exceed three days carried forward from the Indiana public school corporation of last employment) and the total of these two items should be entered directly above the double ruling to show the total number of days available for use during the current year.


    An entry will be posted to the form each pay period to record the maximum number of work days in the period, days lost (number of days not worked for which the teacher receives no pay), days worked, sick and quarantine days used, number of sick and quarantine days allowed in pay period, family death days used and personal or civic affairs days used. The Gross Salary column shall be used to record the total salary paid the teacher for the pay period computed as follows: total the days worked plus sick and quarantine days used, family death days used and personal or civic affairs days used times the rate per day. As a proof, the total number of days for which salary is paid must equal the number of working days in the period less the number of days lost.

    The form is a cumulative record for the teacher and should be preserved, even though the teacher leaves the system. It is recommended that when a teacher (not reaching the age of retirement) leaves the school system, all Forms 514 for the teacher be placed in a "Former Teacher File" to be preserved as a permanent record.


    EMPLOYEE'S SERVICE RECORD (General Form 99A)


    The Employee's Service Record (General Form 99A) is designed for use by the school principals in providing the business office the attendance information for preparing Payroll Form 99. A page should be prepared for each employee other than teaching personnel (see use of Form 514). The space for each scheduled work day should be marked per the code on the lower margin to indicate whether the employee worked, lost time or was on authorized leave of absence. Space is provided for a twelve month record on each side of the page. IC 5-11-9-4(b) states in part " . . . shall require that records be maintained showing which hours were worked each day by employees employed by more than one (1) public agency or in more than one (1) position by the same public agency . . ." Form 99A may be used for providing the information.


    EMPLOYEE'S EARNINGS RECORD (General Form 99B)


    A page of the form shall be prepared for each employee and shall be posted from the information on the payroll schedule and voucher, General Form No. 99. In addition to the personal history data on the upper margin, space is provided for recording the earnings and deductions for one year by utilizing both sides of the page. These are totaled by quarter and quarterly totals are accumulated for the year to provide information for preparing earnings and payroll deduction reports to the governmental agency concerned and annual statements to the employee.


    A page of the form should also be set up as a "Control" over all earnings and deductions to which the "totals" of all earnings and deductions would be posted, thus furnishing a proof of the individual ledger sheets.


    TRANSFER TUITION STATEMENT (Form 515)


    The following instructions are applicable only for transfer tuition statements issued for periods starting with calendar year 2017.


    The Transfer Tuition Statement (Form 515) must be prepared in duplicate for each school corporation transferring school children to your school corporation or for cash transfers. One copy is sent to the transferring corporation or parent and the other copy is retained in the school business office. The first page, in addition to pertinent school information to be entered at the top, provides for entering lawful costs according to classified budget accounts and according to school organizations maintained by the receiving school corporation. Lawful costs, listed by program expenditure account number, are set out in the various sections of the form.


    INSTRUCTIONS FOR COMPLETING TRANSFER TUITION STATEMENT (Form 515) (Revised 2008)


    Page One


    Begin by identifying the school year, the name of the transferring school corporation (the one whose pupils you have received) and the name of the receiving (your) school corporation and identify each with the county in which it is located. Enter the number of days that school was in session for pupil attendance and the number of pupils in Average Daily Membership (ADM). Enter the identity of the class of school at the top of the column (i.e., kindergarten, elementary, middle/junior high, high school).


    On lines 1 through 7 enter the amount of cost or expense for the school year for the account classifications listed which are applicable for the class of school for which the billing is being prepared. Costs shown on page 1 for remediation (16100 and/or 16200) are limited to remediation expenses from the education fund. Please remember, specifically on line 7, use only costs that apply to the class of school the form is being completed for. Use only the amounts expended from the Education Fund for these operating costs. Where an expense or costs cannot be allocated to a class of school it shall be prorated to all classes of school on the basis of the Pupil Enrollment for each class in the receiving corporation as compared to the total Pupil Enrollment in the school corporation. To be included in the billing, the expense must be applicable to the class of school for which the billing is being prepared. The "classes of school" shall include kindergarten, elementary, middle/junior high, high school, each of the various classifications of special education (handicapped) classes and other special programs. However, "classes of school" does not include students attending vocational education classes in another school corporation on a one-half day (or less) basis. These vocational education students are not transferred and Form 515 does not apply. Total lines 1 through 7 of the column and enter the total amount on line 8. The result is the total operating cost for the class of school.

    Transportation Section


    If a transportation contract has been entered into by the transferring and receiving corporations, calculate the transportation cost per pupil transported by dividing transportation costs by the number of students furnished transportation.


    In the TRANSPORTATION section on page 1, calculate the cost per pupil per day by dividing the Cost Per Pupil Transported by the number of days school was in session for pupil attendance (from upper portion of page 1). Carry this result to the next line and multiply by the total days the transferred pupils were furnished transportation (page 2) to obtain the costs of transporting the pupils named in the statement. Enter the product on the line provided.


    Page Two


    Each pupil transferred in (from the transferring corporation named on page 1 and for the class of school identified) must be listed in the first column and the information detailed in each of the columns. On the line with the pupils name, enter the date of the pupil's birth, grade level, and the first date and last date of the pupil's enrollment for the school year for which you are billing. Show the actual number of days the pupil was enrolled in the program. Also affirm if the pupil was enrolled on the ADM count day.


    If transportation was provided per written agreement, enter the number of days the pupil was furnished transportation. If the child qualifies for a special education grant or a vocational education additional pupil count factor, enter such information in the column provided. Total the columns for which the form indicates totals are required.


    Page Three


    In Item A, calculate the full time pupil equivalent by dividing the total pupil days enrolled (Page 2) by the number of days school was in session for pupil attendance (from Page 1) and enter such full time pupil equivalent on the appropriate line.


    In Item B, calculate the per capita operating cost by dividing the total operating cost (from Line 8 on Page 1) by the number of pupils in Pupil Enrollment for the class of school (from Page 1). Enter the quotient on the appropriate line.


    In Item C, per capita cost (Item B) multiplied by the full time pupil equivalent (Item A) provides the gross amount due for the operating cost for the transferring corporation for the class of school. The amount is entered on the line under class of school.


    In Item D, A transferee school shall subtract state and local revenues that are derived from ADM or pupil count in which the transfer student was included. Amounts can be determined as follows by dividing: (1) the total amount of revenues received; by (2) the ADM of the transferee school for the school year that ends in the calendar year in which the revenues are received. However, for any state distribution computed using less than the total ADM of the transferee school, the transferee school shall allocate the revenues to the transfer student by dividing the revenues that the transferee school is eligible to receive in a calendar year by the student count used to compute the state distribution. Therefore, complete each line as appropriate.

    State Support


    Tuition Support per ADM for basic programs. The amount should be from information provided by the Department of Education DOE SA 54.


    Complexity Grant under IC 20-43-13.


    Special education grants under IC 20-43-7 based on a student's exceptionality area.


    Honors Diploma Award under IC 20-43-10-2. Per eligible pupil who successfully completed an academic honors diploma program ending in the previous calendar year, (current amount is $900).


    Vocational education grants under IC 20-43-8 (For students enrolled in an approved vocational program consider labor wage category and class credit hours in determining the credit).


    In Item E, subtract the total credits of state distributions from the gross amount due for operating (Item C).


    Enter on the bottom of page 3 the amount due for transfer tuition for operating (E); the amount due for transfer tuition for special equipment (from Page 4, column G total); and the net amount due for transportation (from Page 1). Sum the three items for the Total Net Amount Due for Transfer Tuition and Transportation.


    If quarterly payments have been received to apply against the total net amount due, enter the date and amount of each on the spaces provided, total them and subtract the total quarterly payments from the total net amount due. The difference will be the balance due.


    Page Four


    Complete the listing of Special Equipment, including the description (A), the original cost (B), the year purchased (C), the estimated life of the equipment (D) and the number of students using the special equipment during at least part of the school year (F). Divide the Original Cost (B) for each piece of equipment by the Estimated Life (D) to obtain the annual allocated cost (E). Next divide the annual allocated cost (E) by the number of students who used the special equipment during at least part of the school year to obtain the portion of special equipment cost attributable to the student named on Page 2. Sum all the special equipment costs in column G to obtain the total special equipment costs for the student named.

    We would recommend that a separate Form 515 be completed for each student that used special equipment or a separate page four.


    Complete the certification which must be dated and signed by the school corporation treasurer before presenting Form 515 to the transferring party.


    CHECK IN DUPLICATE (Form 509)


    The check form is to be used for all disbursements, other than payroll, and each check must be supported by an itemized claim (Accounts Payable Voucher) allowed by the school board. The original check must be signed by the Treasurer of the School Corporation and both the original and copy must show the name of the depository on which the check is drawn. The original, when returned by the depository after payment, must be carefully preserved by the treasurer. The duplicate copy is the register of checks and will serve as the source document for posting to the disbursements column of the Fund Ledger; the Ledger of Appropriations, Allotments, Encumbrances, Disbursements and Balances; and, the Treasurer's Daily Balance of Cash and Depositories record.

    When checks are paid and returned by the bank each month they must be checked off against the duplicate copies with a stamp showing the month in which paid. The procedure is necessary not only to prepare a list of outstanding checks at the close of the month for reconciling with the depository but also to facilitate tracing and locating a paid check should a question thereon later arise


    The form is printed in duplicate, five to the sheet, and shall be serially prenumbered by the printing supplier. The original is perforated for tearout and the duplicate, not perforated, is punched for containing in a post binder for preservation as a Check Register and Journal of Disbursements. Space must be provided at the lower edge of each original of the form for printing the magnetic ink character recognition (M.I.C.R.) symbols for use of the depository.


    All checks routed through the federal reserve banking system must be imprinted with the magnetic ink characters to facilitate sorting, routing and paying.


    PAYROLL CHECK IN TRIPLICATE (Form 516)


    The form must be prenumbered in triplicate by the printing supplier. It is prescribed for use in paying all salaries and wages of school employees and provides for showing the number of hours worked, gross pay, the amount of each payroll deduction and the net pay. Space is also provided for entering the title of the fund from which the payment is made, the number of the claim on which the payment was allowed and the name of the payee.


    The original is signed by the treasurer of the school corporation and must bear the name of the depository on which the check is drawn. Space is provided for the encoding of magnetic ink character recognition (M.I.C.R.) symbols to comply with the requirements of the federal reserve banking system. The duplicate, which serves as a statement of earnings and deductions for the employee's records, is given to the employee along with the original. The triplicate is retained in the business office in numerical sequence as a register of payroll checks. It must bear the name of the depository on which it was drawn so that outstanding checks may be identified with the proper depository for purposes of reconciling the balance in the depository account.


    When checks are paid and returned by the bank each month, they must be checked off against the duplicate copies with a stamp showing the month in which paid. The procedure is necessary not only to prepare a list of outstanding checks at the close of the month for reconciling with the depository but also to facilitate tracing and locating a paid check should a question thereon later arise.


    RECEIPT IN DUPLICATE (Form 517)


    The form is to be prenumbered by the printing supplier in duplicate, five receipts to the page. A receipt must be written on the form each time any money is received by the school corporation, regardless of whether it is in the form of cash, check, money order, bank card/credit card, EFT (all on which must be indicated as payment type and amount) or other negotiable instrument. The original, signed by the treasurer of the school corporation, is to be issued to the person paying the money. The duplicate is punched for containing in a post binder and serves as a permanent register of receipts. It also serves as a source document for posting to the Ledger of Receipts, the Fund Ledger and to the Treasurer's Daily Balance of Cash and Depositories Record. In the case of county or state distribution of school monies, it is not necessary to mail the original to the distributing agency.


    BOND REGISTER (General Form 53)


    The form provides columns and space for all data required in connection with the accounting for general obligation bonds issued. Each bond must be entered separately with sufficient space allowed for its interest coupons. All pages for bonds of the same issue must be bound in the same register. The register must be maintained in the business office of the school corporation even though payments are made through a paying agent.

    REGISTER OF INVESTMENTS (General Form 350)


    The form is designed to record investment transactions as they occur. It will reflect investments purchased and sold and the cost of those remaining on hand in each fund. The record will support the entries in the Clearing Account-Investments which controls investments from all funds.


    The current inventory at any time must be represented either by a safekeeping receipt from a duly designated depository or actual physical custody of the securities. The Register of Investments is to be kept by the treasurer since that officer is the custodian of the securities. A separate line should be used for recording each security and a separate sheet should be used for each fund from which investments are made. A separate sheet should also be used for recording investments from "Total Monies on Deposit." The sheets for all investments may be kept in the same post binder.


    Entries will be made as investments are purchased or sold.


    REGISTER OF INSURANCE (General Form 351)


    The form is designed to provide a record of all insurance policies. Entries will be made chronologically as policies are purchased or as premiums are paid. If the register is kept up to date and the proper entries made in the "Renewal or Replacement of Policy No." column, little difficulty will be experienced in determining what policies are currently in force, whether or not certain property is covered by insurance, and the dates and amounts of the premium payments.


    REPORT OF COLLECTIONS (General Form 362)


    The form is designed for use by collecting authorities or other persons collecting and remitting funds to the corporation treasurer or extracurricular treasurer, who will issue an official cash receipt for the funds covered by the report. The form is adaptable and its use is highly recommended in the collection of vocational fees, school lunch funds, curricular materials rental fees, swimming pool receipts, etc.


    CONTRACTOR'S COMBINATION BID BOND AND BOND FOR CONSTRUCTION (General Form 86)


    The form, properly executed, may accompany any bid for public work and may be used as a guarantee of faithful performance in the case of a successful bidder upon approval by the awarding body.


    CONTRACTOR'S BOND FOR CONSTRUCTION (General Form 86A)


    The form, properly executed and approved by the awarding body, will be furnished by the successful bidder as a guarantee of faithful performance in connection with a contract for public work.


    CONTRACTOR'S GENERAL BID FOR PUBLIC WORK (General Form 96)


    The form is designed to be used by bidders in submitting bids on construction and repair projects, new buildings, alterations, or additions. It is to be used where work (materials and labor) is done under contract and must be used whenever a contract is to be awarded.


    SCHOOL BUDGET FORMS (Nos. 1 to 5)


    The preparation of the annual budget and the use of these forms are can be found on the State’s Gateway reporting system. Please, see the Department of Local Government Finance for directions on budget preparation.

    AUTHORIZATION AGREEMENT FOR AUTOMATIC DEPOSIT STATE OF INDIANA DISTRIBUTION TO POLITICAL SUBDIVISIONS BY EFT (General Form 368)


    The form is designed to be used to notify the Treasurer of State as to which state distributions the school corporation wants to receive by way of electronic funds transfer. Each type of distribution to be received by EFT by a school corporation (Basic Grant, etc.) must be a separate request. The system of distribution cannot process a request for a split distribution (i.e., split between banks).


    OFFICIAL RECEIPT - INDIVIDUAL CURRICULAR MATERIALS RENTAL LIST (Form TBR-2)


    This form is to be prenumbered and printed in triplicate. The form, one set for each student, is to be prepared when curricular materials and related materials are issued to the student. The form provides for the date the curricular materials were issued, the name of the student and the total fee collected. The completed form shall be signed by the issuing officer who could be the treasurer or someone designated by the treasurer to issue the curricular materials and collect the rental fees. If the volume of transactions for grades with a fixed list (applicable to all students) of books and materials is great enough to demand it, a copy of the printed list may be attached to the TBR-2 form and the form processed with a reference to such attached list instead of further itemization.


    The original of Form TBR-2 is to be given the payer (student or parent). The duplicate is to be retained by the issuing officer and the triplicate is to remain intact in the book. The duplicate, together with rental fees collected, must be transmitted daily to the treasurer. The treasurer may direct the issuing officer to deposit all fees collected each day and submit an acknowledged, duplicate deposit slip with duplicate copies of Form TBR-2. The treasurer may also require the issuing officer to submit a summary or recap sheet of all fees collected by grade or other designated categories. If this is done, the total of the summary or recap sheet must agree with the amount on the duplicate deposit sheet as well as the total of all TBR-2 forms submitted for the day. All duplicates of Form TBR-2 shall be filed alphabetically, by student last names, in the office of the treasurer for audit purposes. A separate TBR-2 should be issued each time a payment is made.


    The triplicate copy of Form TBR-2 with book list attached, if any, must be kept in the files of the issuing officer until the close of the semester. When the students return rented curricular materials, the issuing officer must check the returned books to the list of those issued as shown on the copy of the files. The student should then pay for all curricular materials damaged or not returned in accordance with the policy adopted by the school officials. All money received for lost or damaged books together with the triplicate books of Form TBR-2 containing proper notations must be remitted to the treasurer. The treasurer will file the triplicate copy (complete books).


    Duplicate and triplicates will remain intact in the book if the issuing officer is the treasurer.


    The original copy of Form TBR-2 shall be given to the student if the student pays the fee. The copy serves as a receipt for the rental fees collected from the student. When book lists are used in lieu of itemization on the form (all students using the same books), a copy of the appropriate list shall be attached to the student's copy and one copy shall be retained for audit.


    When issuing officers other than the treasurer are designated to issue books and collect rental fees, the treasurer shall issue an official receipt to the issuing officer each time the issuing officer transmits the money or submits a certified deposit slip, to cover such fees, to said treasurer.


    Receipts should be issued and recorded at the time of the transaction; i.e., when cash or a check is received, a receipt is to be immediately prepared and given to the person making payment.


    APPLICATION FOR FREE MEALS OR REDUCED PRICE MEALS AND OTHER BENEFITS (Form 521)


    Forms used in determining eligibility are distributed by the Department of Education.

    APPLICATION FOR FREE MILK AND OTHER BENEFITS (Form 522)


    Forms used in determining eligibility are distributed by the Department of Education.


    CAPITAL ASSETS LEDGER (Form 369 – Revised 2004)


    The form is designed to comply with federal requirements and to account for inventorying and tracking of capital assets.


    RECEIPT REGISTER (Form 370)


    The form is designed to contain all of the information on the prescribed receipt forms. Very strict adherence to form conditions for duplicates is required.

  • Funds and Fund Accounting

    FUNDS AND FUND ACCOUNTING

    The funds listed in this chapter are part of an all-encompassing list that is applicable to the various types of schools in the state of Indiana. Charter schools will need to determine the applicability of each fund per Indiana Code and guidelines from state agencies.

    FUNDS


    A fund, as used in the manual, represents moneys set aside for specific activities of a school corporation. A fund constitutes a complete accounting entity and all financial transactions, both receipts and disbursements, are to be recorded in the fund to which they pertain. The funds established by law for Indiana school corporations are: Education Fund, Operating Referendum Tax Levy Fund, Debt Service Fund, Operations Fund, School Lunch Fund, Curricular Materials Rental Fund, Self-Insurance Fund and Levy Excess Fund. Tax levies, subject to limitations, may be established for the Debt Service, and Operations Fund. No tax levies may be established for the School Lunch Fund or the Curricular Materials Rental Fund as these funds are designed to be self-supporting. Under certain conditions, Construction Funds and other Special Funds may be established.

    Numerical designations for each of these funds shall be as follows:

    Education Fund

    0101

    Operating Referendum Tax Levy Fund

    0160

    Referendum Controlled Project Tax Levy Fund

    0170

    Debt Service Fund

    0200

    School Safety Referendum Debt Service

    0220

    Retirement/Severance Bond Debt Service Fund

    0250

    Exempt Debt (St. Joseph and Lake Counties Only)

    0290

    Exempt Pension Debt Fund  (St. Joseph and Lake Counties Only)

    0291

    Referendum Debt - Exempt Capital

    0292

    Referendum Debt - Post 20090293

    Operations Fund

    0300

    Rainy Day Fund

    0610

    Retirement/Severance Bond Fund

    0620

    Post-Retirement/Severance Future Benefits Fund

    0630

    Construction Funds

    0700-0799

    School Lunch Fund

    0800

    Curricular Materials Rental Fund

    0900

    Self-Insurance Fund

    1100-1110

    Levy Excess Fund

    1200

    Joint Operations - Special Education Cooperative Funds

    1300-1399

    Joint Operations - Area Vocational Education Funds

    1400-1499

    Joint Operations - Other

    1500-1599

    Child Care Program

    1600-1699

    Other Local Funds

    1700-1799

    Judgments

    1800-1849

    Educational License Plates

    1850

    Unassigned Local Funds*

    1851-1899

    School Library Printed Material

    1900-1959

    Federal Lieu in Taxes (Impact Aid)

    1960-1969

    Unassigned Local Funds*

    1970-1999


    2000 Series - Donations, Gifts, and Trusts. Identify funds where the sources of revenue are gifts and donations from persons or organizations who have established memorials or endowments for projects in which the funds are administered by the school corporation.


    Donations, Gifts, and Trust Funds

    2000-2199

    Local, Adult, Alternative and Continuing Education Funds

    2200-2299

    Extracurricular Activities Funds

    2300-2399

    Recreational Activities Funds

    2400-2499

    Cultural Arts Funds

    2500-2599

    Welfare Activities Funds

    2600-2699

    Scholarships and Awards Funds

    2700-2799

    Unassigned Local Funds*

    2800-2999

    3000 Series – State Programs. Identify funds where the sources of revenue are the State of Indiana.


    State Instructional Support

    3000-3027

    Formative Assessment

    3028

    Special Education Excess Costs

    3029

    Indiana Preschool Grants

    3030

    Student Learning and Recovery Grant Program3031

    Unassigned State Funds*

    3032-3139

    Teacher Quality Improvement Program

    3140-3149

    Tech Prep

    3150-3159

    Principal Leadership Academy

    3160-3169

    Unassigned State Funds*

    3170-3179

    Economic Education Mini Grant

    3180-3189

    Computer Consortium/ Ed Tech Advance

    3190-3199

    Adult and Continuing Education

    3200-3209

    Step Ahead

    3210-3219

    Drug Free Communities

    3220-3229

    Early Childhood Intervention (First Steps)

    3230-3238

    Early Education Matching Grant

    3239

    Social Service Block Grant

    3240-3249

    Medicaid Reimbursement

    3250-3259

    Unassigned State Funds*

    3260-3269

    Secured Schools Safety Grant

    3270

    Science, Technology, Engineering, and Math Grants

    3271-3299

    Alternative Education Grant

    3300-3349

    SAFE School Haven

    3350-3399

    Early Intervention Grants

    3400-3499

    Reading Recovery

    3500-3599

    School Intervention and Counseling

    3600-3699

    Non-English Speaking Programs

    3700-3748

    Career and Technical Performance Grant

    3749

    Teacher Appreciation Grant

    3750-3759

    Indiana School Academic Improvement

    3760-3768

    High Ability Students

    3769

    Access Indiana

    3770-3779

    State Connectivity Grant 3780
    COVID Temporary Grants to Retain Child Care3781

    Unassigned State Funds*

    3782-3789

    21st Century Scholars

    3790-3799

    Nutrition Grant - State3800-3809

    Unassigned State Funds*

    3810-3950

    Charter School Innovation

    3951

    ISTA Settlement

    3952

    Innovative School Improvement Grant

    3953

    Unassigned State Funds*

    3954-3955

    Project Lead the Way

    3956

    Other State Funds

    3957-3999


    4000, 5000, 6000, and 7000 Series - Federal Programs. Identify funds where the sources of revenue are the Federal Government.


    Unassigned Federal Funds*

    4000-4099

    Title I

    4100-4299

    Title I Migrant

    4300-4399

    Refugee Child Assistance

    4400-4499

    Title II-B

    4500-4599

    Title II-C

    4600-4649

    Federal Math and Science Grants

    4650-4699

    Youth Employment Training

    4700-4799

    Summer Youth Employment

    4800-4899

    Unassigned Federal Funds*

    4900-4919

    Local Reading Improvement

    4920-4229

    Unassigned Federal Funds

    4230-4239

    Tutorial Assistance

    4940-4949

    Migrant Farm Workers

    4950-4999

    Unassigned Federal Funds

    5000-5099

    Other Federal Community Programs

    5100-5109

    Homeless Assistance Grants

    5110-5119

    Unassigned Federal Funds*

    5120-5149

    Serve America

    5150-5159

    Unassigned Federal Funds*

    5160-5199

    IDEA Special Education Grant

    5200-5249

    Unassigned Federal Funds*

    5250-5399

    Preschool Handicap

    5400-5499

    Adult Basic Education

    5500-5599

    Other Federal Training Program

    5600-5699

    Career Incentives

    5700-5799

    Student Support, Title IV

    5800-5899

    Nutritional Grant - State

    5900-5909

    Removal of Barriers to Handicapped

    5910-5999

    Other Federal Technology Programs

    6000-6099

    Other Federal Energy Programs

    6100-6199

    Vocational and Technology Board Grants

    6200-6299

    Unassigned Federal Funds*

    6300-6399

    Federal Child Care and Development Programs

    6400-6409

    Child Care and Development Block Grants

    6410-6419

    Unassigned Federal Funds*

    6420-6459

    Medicaid Reimbursement - Federal

    6460-6469

    Enhance Alternative Education Programs

    6470-6499

    Unassigned Federal Funds*

    6500-6599

    21st Century Learning Center

    6600-6609

    Environmental Benefits Grants

    6610-6629

    Unassigned Federal Funds*

    6630-6999

    Federal School to Work Programs

    6700-6729

    Workforce and Innovation Opportunity

    6730

    Unassigned Federal Funds*

    6731-6829

    School Technology

    6830-6839

    Title II Part A, Supporting Effective Instruction

    6840-6849

    Unassigned Federal Funds*

    6850-6859

    Rural Schools-Direct

    6860-6869

    Rural Schools and Low Income Program

    6870-6879

    Title III, English Language Acquisition

    6880-6889

    Expanding Opportunities Through Quality Charter Schools

    6890-6899

    Title II, Part B, Math and Science, NLCB

    6900-6909

    Unassigned Federal Funds*

    6910-7909

    Homeless Children and Youth (ARPA-ESSA)7910

    Individuals with Disabilities Education Act (ARPA 84.027X)

    7911

    Individuals with Disabilities Education Act (ARPA 84.173X)

    7912

    Unassigned Federal Funds*

    7913-7920

    Emergency Connectivity (American Rescue Plan)

    7921

    CTE Summer Bridge

    7922

    Elementary and Secondary School Emergency Relief (ESSER III)

    7923
    Education Stabilization - Rethink K127924
    Education Stabilization - Reimagine Workforce7925
    Emergency Broadband for Families7926
    Emergency Broadband for Families II7927
    Child Care Development Block Grant Program7928
    Child Care Development Block Grant Program II7929
    Governor's Emergency Education Relief (GEER II)7930
    Elementary and Secondary School Emergency Relief II7931
    Elementary and Secondary School Emergency Relief (ESSER) SEA Discretionary II7932

    Project School Emergency Response to Violence

    7933

    Coronavirus Relief Fund (CRF)

    7934

    Other CARES Act

    7935-7939
    Federal Stimulus – 18002 Governor’s Emerg. Educ. Relief7940
    Federal Stimulus – 18003 Educ. Stab Relief7941
    Federal Stimulus – 18004 Supplemental7942
    COVID Paycheck Protection Program7943
    Other Federal Stimulus Funds7944-7949
    Unassigned Federal Funds*7950-7959

    Other Federal Funds

    7960-7999


    8000 Series – Trust funds. Identify funds where the sources of revenue are agreements to hold money on behalf of another individual or entity.


    Petty Cash Funds

    8000-8099

    Cash Change Funds

    8100-8199

    Unassigned Trust Funds*

    8200-8399

    Prepaid School Lunch

    8400

    Unassigned Trust Funds*

    8401-8499

    Investment Funds

    8500-8599

    Other Trust Funds

    8600-8999

    9000 Series – Clearing Account funds. Identify funds where money will be disbursed from the fund in which will be initially receipted and still property of the school.


    Payroll Withhold Funds

    9000-9499

    Other Clearing Funds

    9500-9999


    *Unassigned Funds should not be used until prescribed by the State Board of Accounts. When a new grant is added the Department of Education will contact us to edit the chart of accounts. The Other Funds sections should be used when Form 9 reporting does not require a fund to be accounted for separately.


    Accounting systems which require the use of account numbers for identification, the fund number may be included to the left of the receipt or expenditure account designation listed in the chart of accounts to build a complete numerical identification for each item in each fund. Some examples are illustrated below using an eight digit account number for receipt accounts and a nine digit account number for expenditures.


    From left to right, the first four digits are reserved for the fund designation and the next four and five digits are for application of the account numbers as they appear in the chart of accounts. If further detailing is desired by the school corporation, more digits may be added to the right of these digits. Examples of account numbers and their interpretation are:


    Receipts:

     

    Education Fund – State Tuition Support

    0101-3111

    Debt Service Fund - Local Property Taxes

    0200-1110

    Operations Fund - Rentals

    0300-1910

    School Lunch – School Lunch Reimbursement

    0800-4291

    Expenditures:

     

    Education Fund - Elementary, Regular Instruction

    0101-11100

    Debt Service Fund – Interest on Bonds

    0200-52100

    Operations Fund – Financial Accounting

    0300-25160

    Curricular Materials Rental Fund – Textbooks/workbooks and Repairs

    0900-25520


    Sufficient digits for all items should be available on the master chart of accounts and allow for expansion for additional funds. Additionally, each transaction must also be identified with a three digit "Object" 100 through 999. These Objects can be found in their own chapter in the manual.


    FUNDS ESTABLISHED BY STATUTE


    Education Fund


    Education Fund, designated Fund 0101 in the prescribed accounting system, is required by IC 20-40-2. The Education Fund is to be used to record all receipts of tuition support distributions and disbursements for expenses allocated to student instruction and learning. Per IC 20-40-2-6, transfers are allowed from the Education Fund to the Operations Fund after they are authorized by the governing body in a public meeting. The transfers would allow for tuition support distributions to be used for expenditures not allocated to student instruction and learning. A detail of the receipt and expenditure accounts will be found in Parts 5 and 6.


    Debt Service Fund


    The Debt Service Fund, designated Fund 0200 in the prescribed accounting system, is required by IC 20-40-9. The fund is to be used to record all receipts and disbursements for (1) all debt and other obligations arising out of funds borrowed or advanced for school buildings when purchased from the proceeds of a bond issue for capital construction; (2) a lease to provide capital construction; (3) interest on emergency and temporary loans; (4) all debt and other obligations arising out of funds borrowed or advanced for the purchase or lease of school buses when purchased or leased from the proceeds of a bond issue, or from money obtained from a loan made under IC 20-27-4-5, for that purpose; (5) all debt and other obligations arising out of funds borrowed to pay judgments against the school corporation; or (6) all debt and other obligations arising out of funds borrowed to purchase equipment. Included are payments of school bonds and coupons, lease-rental agreements, civil bond obligations assumed through reorganization, veterans' memorial fund repayments and common school fund repayments, but shall not include emergency and temporary loans obtained for the benefit of any other fund. A detail of the receipt and expenditure accounts will be found in Parts 5 and 6.

    Operations Fund


    The Operations Fund 0300, in the prescribed accounting system, is authorized by IC 20-40-18. The Operations Fund shall be used to record receipts of the operation property tax levy; may be used to record receipts of excise taxes and local income tax; and transfers from the Education fund or Operating Referendum Tax Levy Fund. The Operations fund may be used to carry out a capital projects plan; to pay transportation costs; to carry out a school bus replacement plan; or to pay expenses allocated to overhead and operational activities. The complete detail of allowable sources and uses of the Operations fund can be found in IC 20-40-18 and are summarized in the detail of receipt and expenditure accounts that will be found in Parts 5 and 6.


    OTHERS


    Operating Referendum Tax Levy Fund, designated Fund Number 0160, is required for a successful operating referendum by IC 20-40-3.


    Referendum Controlled Project Tax Levy Fund, designated Fund Number 0170, is required for a successful controlled project referendum by IC 20-40-19.


    Retirement/Severance Bond Debt Service Fund, designated Fund Number 0250, is required by IC 20-48-1-2(c)(6).


    A Rainy Day Fund, designated Fund Number 0610, is authorized by IC 36-1-8-5.1.

    Retirement/Severance Bond Fund, designated Fund Number 0620, is authorized by IC 20-48-1-2.


    Post-retirement/Severance Future Benefits Fund, designated Fund Number 0630, is required by IC 20-42-4.


    Self-Insurance Fund, designated Fund Number 1100, may be established by IC 20-40-12. The Levy Excess Fund, designated Fund Number 1200, is required by IC 20-40-10 and IC 20-44-3 for each local taxing unit.


    The School Lunch Fund, designated Fund Number 0800, is required by IC 20-41-1 when established in the school corporation account. It is to be used to record all receipts from the sale of lunches, federal and state reimbursement, gifts and other receipts. The School Lunch Fund will also be used to record all disbursements for personal service, food, supplies and equipment for the school lunch program. The school lunch program may be operated through the school corporation's extracurricular account or accounts per IC 20-41-2-4. If a school chooses to account for the School Lunch program in this way, then it will be required to compile and add the extracurricular activity to the school corporation’s financial statements. A detail of the receipt and expenditure accounts will be found in Parts 4 and 5.


    The Curricular Materials Rental Fund, designated Fund Number 0900, is required by IC 20-41-1 when established in the school corporation account. It is to be used to record receipts of fees collected for rent of curricular materials furnished to students; also, to record disbursements for purchase of curricular materials, for repair of curricular materials and for supplemental materials to be used with rented curricular materials furnished to students for a designated fee. Disbursements from the fund may be made without appropriation or the application of other laws relating to budgets of municipal corporations. Where no curricular materials have been purchased and no financial commitments or guarantees for such purchases have been made by the school corporation, the curricular materials rental program may be operated through the school corporation extracurricular account or accounts per IC 20-41-2-5. If a school chooses to account for the Curricular Materials program in this way, then it will be required to compile and add the extracurricular activity to the school corporation’s financial statements. A detail of the receipt and expenditure accounts will be found in Parts 4 and 5.

    SPECIAL LOCAL, STATE, AND FEDERAL FUNDS


    Special Funds may be established to account for money received by a school corporation for a specific purpose or purposes if no local tax revenues are involved, per IC 20-40-14. These Funds may be supported by gifts, donations, endowments or be established pursuant to federal statutes. For example, money received from federal grants prior to any required expenditures to support the program or project being financed  may be accounted for by establishing separate funds appropriately titled (Gifts and Donations Fund, Scholarship Endowment; Indiana Preschool Grants, Title I, etc.). Disbursements from these funds do not require appropriations or the application of other laws relating to the budgets of municipal corporations.


    A Construction Fund, designated Fund Number 0700 in the prescribed accounting system, shall be established in all instances where disbursements for capital outlay are made from receipts derived from the sale of general obligation bonds or from other outside sources. Some sources of receipts to the fund, other than from the sale of bonds, are Veterans' Memorial Fund loans, Common School Fund loans, federal grants, and earnings on investments from the fund. When general obligation bonds are sold to provide money for construction purposes, only the face value of the bonds is receipted to the Construction Fund. Any premium or accrued interest received must be receipted to the Debt Service Fund.


    FUND ACCOUNTING


    A ledger account on prescribed Form Number 508 must be established for each fund. Each fund account will serve as a control account for all receipt and disbursement transactions pertaining to that fund. In addition, a ledger account on Form Number 508 must be established for the "All Funds Control" to which all receipts and disbursements for all funds shall be posted. Posting to these ledger accounts, as well as the receipt and expenditure accounts, shall be made as follows for each day's transactions.


    Receipts:


    1. Post each receipt from the duplicate receipts to the receipt accounts.
    2. Post the total of the receipts for each fund to the ledger account for that fund.
    3. Post the total of all receipts to the All Funds Control Account.
    4. Enter the total receipts for all funds in the applicable columns of the Treasurer's Daily Balance of Cash and Depositories.

    Disbursements:


    1. Post the gross amount of checks (before payroll deductions) to the expenditure accounts. Make reference, where necessary, to the distribution of expenditures shown on the claim.
    2. Post the gross amount of the checks (before payroll deductions) for each fund to the ledger account of that fund.
    3. Post the net amount of the disbursements for all funds (after payroll deductions) to the All Funds Control account. Posting to the account should be made directly from the register of checks (duplicate copies of checks) which register should be totaled to reflect the gross amount of checks, each of the applicable payroll deductions, and the net amount of the checks issued.
    4. Post as receipts to the applicable clearing accounts the amounts of payroll deductions as reflected in the totals of the checks issued. If any of the checks issued were for the purpose of transmitting payroll deductions to the proper payee, they will be posted as disbursements to the applicable clearing accounts and to the All Funds Control account. Disbursements from the payroll deduction clearing accounts will not be posted to the detail expenditure accounts or to the ledger accounts for each fund, since under the accounting system these accounts are posted in "gross" when posting the payrolls.
    5. Enter the net amount of the checks issued in the proper columns of the Treasurer's Daily Balance of Cash, Depositories and Investments indicating there in the depository on which the checks were drawn.

    PROOF OF POSTING


    At the end of each month the receipt and expenditure accounts, the fund accounts and the All Funds Control account should be balanced and the All Funds Control reconciled to the Treasurer's Daily Balance of Cash, Depositories and Investments. A proof of correctness of the posting and reconciling with Treasurer's Daily Balance of Cash, Depositories and Investments should be made as follows:


    1. Foot each receipt and expenditure account, each fund account and the all funds control to show the total receipts and expenditures for the month and for the year to date and extend the balances in the respective accounts.
    2. Total the receipt accounts for each fund and verify with the total receipts shown on the fund account of that fund.
    3. Total the disbursements for all expenditure accounts and verify with the total disbursements in each program (appropriation) and with the total disbursements in the control account of that fund.
    4. Summarize the totals of all expenditure accounts of each program and verify that total with the total disbursements for that program.
    5. Total the receipts for all funds and verify with the total receipts in the "All Funds Control account.
    6. Total the disbursements for all funds and verify with the total disbursements shown on the All Funds Control account. In the proof, if there are any payroll deductions not disbursed, the amounts thereof will have to be added to the total disbursements posted to the All Funds Control account. This is because checks will be posted in "gross" to the fund accounts and in "net" to the All Funds Control.
    7. Add the balances in each fund, together with the balances in any payroll deduction accounts (clearing accounts) and the total thereof should agree with the balance in the all funds control.
    8. Confirm that the balance in the All Funds Control account agrees with the balance reflected in the Treasurer's Daily Balance of Cash, Depositories and Investments.

    If properly maintained and correctly posted, the foregoing procedure will provide the school administration at all times with the total receipts, total disbursements and the balance in each fund and, also, with a summary of all receipts, disbursements and the balance of all funds as reflected in the All Funds Control account.


    "Deposits in transit" will represent amounts, received and entered on the records before the close of the month, for which a deposit has been made, but not in time to be included in the balance shown on the bank statement.

    RECONCILEMENT OF FUND BALANCES WITH DEPOSITORIES


    At the close of each month the balance in the All Funds Control account must be reconciled with the Treasurer's Daily Balance of Cash, Depositories and Investments and to the balances shown on the depository statements. In making the reconcilement any deposits in transit and all outstanding checks must be considered.


    "Outstanding checks" will represent those checks issued and entered on the records but which have not been paid by the bank at the close of the month. To arrive at the outstanding checks, all paid checks must be compared with the duplicate checks or check register. At the time this comparison is made the month in which such check was paid by the bank should be indicated on the duplicate check or check register to facilitate the preparation of the list of the outstanding (or unpaid) checks.


    Another purpose in stamping or otherwise indicating the month in which the check was paid is to facilitate tracing a check to the bank statement should a question later develop and you need to locate the particular check. All checks paid by the bank should be filed with the bank statement with which they are returned and, although they should be sorted into numerical sequence within each bank statement, they should not be commingled with other checks or with the checks returned with other bank statements.


    On the following page, you will find an illustrated form to be used in reconciling your records to the Treasurer's Daily Balance of Cash, Depositories and Investments and to the depository statements. This reconcilement must be made at the close of each month, IC 5-13-6-1(c)

    DEPOSITORY STATEMENT AND CASH RECONCILEMENT


    _, __


     

    Bank


    Statement

    Less Outstanding


    Check



    Net Balance*

    Balance in Depository:

    $ $ $

    (List Each Depository)

       

    Totals


    $                   


    $                    


    $

    Add: Deposits in Transit

       

    Cash on Hand

       

    (List any other reconciling items)

       $__________

    Total

      

    $

    Deduct:

       

    (List any reconciling items to be deducted)

       $__________

    Record Balance, All Funds - Control (Proof)

      

    $                   


    SCHEDULE OF OUTSTANDING CHECKS


    (List by Depository)


    _, __


    Date

    Number 

    Amount  

    Date 

    Number  

    Amount  

       $   

    $

       

    Total

     

    $               


    * The "Net Balance" for each depository should agree with the balance shown in the Treasurer's Daily Balance of Cash and Depositories; however, if there are any deposits in transit or other reconciling items affecting the depository accounts they must be considered.

    Legend of Fund Types

    1

    General Fund

    2

    Special Revenue Fund

    3

    Debt Service

    4

    Capital Projects

    5

    Permanent

    6

    Enterprise

    7

    Internal Service

    8

    Pension Trust

    9

    Private Purpose Trust

    10

    Investment Trust

    11

    Custodial

    *

    Placeholder, Clearing Account, or Other


    Fund #

    Fund Name

    Fund Type

    101

    Education

    2

    160

    Operating Referendum Tax Levy

    2

    170

    Referendum Controlled Project Tax Levy

    3

    200

    Debt Service

    3

    250

    Retirement/Severance Bond Fund Debt Service

    11

    290

    Exempt Debt (Lake and St. Joe Co. Only)

    3

    291

    Exempt Pension Debt (Lake and St. Joe Co. Only)

    3

    292

    Referendum Debt - Exempt Capital

    4

    293Referendum Debt - Post 20094

    300

    Operations

    2

    610

    Local Rainy Day

    2

    620

    Retirement/Severance Bond

    11

    630

    Post-Retirement/Severance Future Benefits

    11

    700-799

    Construction

    4

    800

    School Lunch

    2

    900

    Curricular Materials Rental

    2

    1100-1110

    Self-Insurance

    7

    1200

    Levy Excess

    2

    1300-1399

    Joint Operations-Special Ed CoOp

    2

    1400-1499

    Joint Operations-Area Vocational Ed

    2

    1500-1599

    Joint Operations-Other

    2

    1600-1699

    Child Care Program

    2

    1700-1799

    Other Local Funds

    *

    1800-1849

    Judgments

    11

    1850

    Educational License Plates

    2

    1851-1899

    Unassigned Local Funds

    *

    1900-1959

    School Library Printed Material

    2

    1960-1969

    Federal in Lieu Taxes (Impact Aid)

    2

    1970-1999

    Unassigned Local Funds

    *

    2000-2199

    Donations, Gifts, and Trusts

    2

    2200-2299

    Local Adult, Alternative, and Continuing Education

    2

    2300-2399

    Extra-Curricular Activities

    11

    2400-2499

    Recreational Activities

    2

    2500-2599

    Cultural Arts

    2

    2600-2699

    Welfare Activities

    2

    2700-2799

    Scholarships and Awards

    9

    2800-2999

    Unassigned Local Funds

    *

    3000-3027

    State Instructional Support

    2

    3028

    Formative Assessment

    2

    3029

    Special Education Excess Costs

    2

    3030

    Indiana Preschool Grants

    2

    3031-3139

    Unassigned State Funds

    *

    3140-3149

    Teacher Quality Improvement Program

    2

    3150-3159

    Tech Prep

    2

    3160-3169

    Principal Leadership Academy

    2

    3170-3179

    Unassigned State Funds

    *

    3180-3189

    Economic Education Mini Grant

    2

    3190-3199

    Computer Consortium/Ed Tech Advance

    2

    3200-3209

    Adult and Continuing Education

    2

    3210-3219

    Step Ahead

    2

    3220-3229

    Drug Free Communities

    2

    3230-3238

    Early Childhood Intervention (First Steps)

    2

    3239

    Early Education Matching Grant

    2

    3240-3249

    Social Service Block Grant

    2

    3250-3259

    Medicaid Reimbursement

    2

    3260-3269

    Unassigned State Funds

    *

    3270

    Secured Schools Safety Grant

    2

    3271-3299

    Science, Technology, Engineering and Math Grants

    2

    3300-3349

    Alternative Education Grant

    2

    3350-3399

    SAFE School Haven

    2

    3400-3499

    Early Intervention Grant

    2

    3500-3599

    Reading Recovery

    2

    3600-3699

    School Intervention and Counseling

    2

    3700-3748

    Non-English Speaking Program

    2

    3749

    Career and Technical Performance Grant

    2

    3750-3759

    Teacher Appreciation Grant

    2

    3760-3768

    Indiana School Academic Improvement

    2

    3769

    High Ability Students

    2

    3770-3779

    Access Indiana

    2

    3780

    State Connectivity Grant

    2

    3781COVID Temporary Grants to Retain Child Care2

    3782-3789

    Unassigned State Funds

    *

    3790-3799

    21st Century Scholars

    2

    3800-3950

    Unassigned State Funds

    *

    3951

    Charter School Innovation

    2

    3952

    ISTA Settlement

    2

    3953

    Innovative School Improvement Grant

    2

    3954Career Ladders Grant2

    3955-3955

    Unassigned State Funds

    *

    3956

    Project Lead the Way

    2

    3957-3999

    Other State Funds

    *

    4000-4099

    Unassigned Federal Funds

    *

    4100-4299

    Title I

    2

    4300-4399

    Title I Migrant

    2

    4400-4499

    Refugee Child Assistance

    2

    4500-4599

    Title II-B

    2

    4600-4649

    Title II-C

    2

    4650-4699

    Federal Math and Science Grants

    2

    4700-4799

    Youth Employment Training

    2

    4800-4899

    Summer Youth Employment

    2

    4900-4919

    Unassigned Federal Funds

    *

    4920-4929

    Local Reading Improvement

    2

    4930-4939

    Unassigned Federal Funds

    *

    4940-4949

    Tutorial Assistance

    2

    4950-4999

    Migrant Farm Workers

    2

    5000-5099

    Unassigned Federal Funds

    *

    5100-5109

    Other Federal Community Programs

    2

    5110-5119

    Homeless Assistance Grants

    2

    5120-5149

    Unassigned Federal Funds

    *

    5150-5159

    Serve America

    2

    5160-5199

    Unassigned Federal Funds

    *

    5200-5249

    IDEA Special Education Grant

    2

    5250-5399

    Unassigned Federal Funds

    *

    5400-5499

    Preschool Handicap

    2

    5500-5599

    Adult Basic Education

    2

    5600-5699

    Other Federal Training Program

    2

    5700-5799

    Career Incentives

    2

    5800-5899

    Student Support, Title IV

    2

    5900-5909

    Nutritional Grant-State

    2

    5910-5999

    Removal of Barriers to Handicapped

    2

    6000-6099

    Other Federal Technology Program

    2

    6100-6199

    Other Federal Energy Program

    2

    6200-6299

    Vocational and Technology Board Grants

    2

    6300-6399

    Unassigned Federal Funds

    *

    6400-6409

    Federal Child Care and Development Programs

    2

    6410-6419

    Child Care and Development Block Grant

    2

    6420-6459

    Unassigned Federal Funds

    *

    6460-6469

    Medicaid Reimbursement-Federal

    2

    6470-6499

    Enhance Alternative Education Programs

    2

    6500-6599

    Unassigned Federal Funds

    *

    6600-6609

    21st Century Learning Center

    2

    6610-6629

    Environmental Benefits Grants

    2

    6630-6699

    Unassigned Federal Funds

    *

    6700-6729

    Federal School-to-Work Programs

    2

    6730

    Workforce and Innovation Opportunity

    2

    6731-6829

    Unassigned Federal Funds

    *

    6830-6839

    School Technology

    2

    6840-6849

    Title II, Part A, Supporting Effective Instruction

    2

    6850-6859

    Unassigned Federal Funds

    *

    6860-6869

    Rural Schools-Direct

    2

    6870-6879

    Rural Schools and Low Income Program

    2

    6880-6889

    Title III, English Language Acquisition

    2

    6890-6899

    Expanding Opportunities Through Quality Charter Schools

    2

    6900-6909

    Title II, Part B, Math and Science NCLB

    2

    6910-7909

    Unassigned Federal Funds

    *

    7910Homeless Children and Youth (ARPA-ESSA)2
    7911Individuals with Disabilities Education Act (ARPA 84.027X)2
    7912Individuals with Disabilities Education Act (ARPA 84.173X)2
    7913-7920Unassigned Federal Funds*

    7921

    Emergency Connectivity (American Rescue Plan)

    2

    7922CTE Summer Bridge Fund2
    7923Elementary and Secondary School Emergency Relief (ESSER III)2
    7924Education Stabilization - Rethink K122
    7925Education Stabilization - Reimagine Workforce2
    7926Emergency Broadband for Families2
    7927Emergency Broadband for Families II2
    7928Child Care Development Block Grant Program2
    7929Child Care Development Block Grant Program II2
    7930Governor's Emergency Education Relief (GEER II)2
    7931Elementary and Secondary School Emergency Relief II2
    7932Elementary and Secondary School Emergency Relief SEA Discretionary II2
    7933Project School Emergency Response to Violence2
    7934Coronavirus Relief Fund (CRF)2
    7935-7939Other Cares Act2
    7940Federal Stimulus - 18002 Governor's Emerg. Educ. Relief2
    7941Federal Stimulus - 18003 Educ. Stab. Relief2
    7942Federal Stimulus - 18004 Supplemental2
    7943COVID Paycheck Protection Program2
    7944-7949Other Federal Stimulus Funds2
    7950-7959Unassigned Federal Funds*
    7960Other Federal Funds*

    8000-8099

    Petty Cash Funds

    1

    8100-8199

    Cash Change Funds

    1

    8200-8399

    Unassigned Trust Funds

    9

    8400

    Prepaid School Lunch Accounts

    2

    8401-8499

    Unassigned Trust Funds

    *

    8500-8599

    Investment Funds

    *

    8600-8999

    Other Trust Funds

    9

    9000-9499

    Payroll Withholdings

    *

    9500-9999

    Other Clearing Funds

    *

    Please note that these fund types may be classified differently than expressed in the above schedule depending upon the situation. These classifications are for informational purposes only.

    Below is information from the Governmental Accounting Standards Board (GASB) Codification 1330.

    Fund Types

    .103    In fund financial statements, governments should report governmental, proprietary, and fiduciary funds to the extent that they have activities that meet the criteria for using those funds.

    a.    Governmental funds (emphasizing major funds)

    (1)    The general fund

    (2)    Special revenue funds

    (3)    Capital projects funds

    (4)    Debt service funds

    (5)    Permanent funds

    b.    Proprietary funds

    (6)    Enterprise funds (emphasizing major funds)

    (7)    Internal service funds

    c.    Fiduciary funds (including fiduciary component units)

    (8)    Pension (and other employee benefit) trust funds

    (9)    Investment trust funds

    (10)    Private-purpose trust funds

    (11)    Custodial funds.

    [GASBS 34, ¶63, as amended by GASBS 84, ¶5 and ¶18; GASBS 54, ¶28; GASBS 84, ¶14]

    Governmental Funds

    .104    The general fund should be used to account for and report all financial resources not accounted for and reported in another fund. [GASBS 54, ¶29]

    .105    Special revenue funds are used to account for and report the proceeds of specific revenue sources that are restricted or committed to expenditure for specified purposes other than debt service or capital projects. The term proceeds of specific revenue sources establishes that one or more specific restricted or committed revenues should be the foundation for a special revenue fund. Those specific restricted or committed revenues may be initially received in another fund and subsequently distributed to a special revenue fund. Those amounts should not be recognized as revenue in the fund initially receiving them; however, those inflows should be recognized as revenue in the special revenue fund in which they will be expended in accordance with specified purposes. The restricted or committed proceeds of specific revenue sources should be expected to continue to comprise a substantial portion of the inflows reported in the fund.  Other resources (investment earnings and transfers from other funds, for example) also may be reported in the fund if those resources are restricted, committed, or assigned to the specified purpose of the fund. A stabilization arrangement (as discussed in paragraphs .180 and .181 of Section 1800) would satisfy the criteria to be reported as a separate special revenue fund only if the resources derive from a specific restricted or committed revenue source. Governments should discontinue reporting a special revenue fund, and instead report the fund’s remaining resources in the general fund, if the government no longer expects that a substantial portion of the inflows will derive from restricted or committed revenue sources. Resources restricted to expenditure for purposes normally financed from the general fund may be accounted for through the general fund provided that applicable legal requirements can be appropriately satisfied; and use of special revenue funds is not required unless they are legally mandated. The general fund of a blended component unit should be reported as a special revenue fund. Special revenue funds should not be used to account for resources held as a fiduciary activity. Governments should disclose in the notes to the financial statements the purpose for each major special revenue fund—identifying which revenues and other resources are reported in each of those funds. [NCGAS 1, ¶30; GASBS 14, ¶54; GASBS 54, ¶21, ¶31, and ¶32; GASBS 54, ¶30, as amended by GASBS 84, ¶14]

    .106    Capital projects funds are used to account for and report financial resources that are restricted, committed, or assigned to expenditure for capital outlays including the acquisition or construction of capital facilities and other capital assets. Capital projects funds exclude those types of capital-related outflows financed by proprietary funds or for assets that will be held as a fiduciary activity. Capital outlays financed from general obligation bond proceeds should be accounted for through a capital projects fund. [NCGAS 1, ¶10; GASBS 54, ¶33, as amended by GASBS 84, ¶14]

    .107    Debt service funds are used to account for and report financial resources that are restricted, committed, or assigned to expenditure for principal and interest. Debt service funds should be used to report resources if legally mandated. Financial resources that are being accumulated for principal and interest maturing in future years also should be reported in debt service funds. The debt service transactions of a special assessment issue for which the government is not obligated in any manner should be reported in a custodial fund (see paragraph .115) rather than a debt service fund. [GASBS 6, ¶19, as amended by GASBS 84, ¶18; GASBS 54, ¶34]

    .108    Permanent funds should be used to account for and report resources that are restricted to the extent that only earnings, and not principal, may be used for purposes that support the reporting government’s programs—that is, for the benefit of the government or its citizenry.  Permanent funds do not include private-purpose trust funds (defined in paragraph .114). [GASBS 34, ¶65; GASBS 54, ¶35, as amended by GASBS 84, ¶17]

    Proprietary Funds

    .109    Enterprise funds may be used to report any activity for which a fee is charged to external users for goods or services or fiduciary activities that have the characteristics in paragraph .116 of this section. Activities are required to be reported as enterprise funds if any one of the following criteria is met. Governments should apply each of these criteria in the context of the activity's principal revenue sources.

    a.    The activity is financed with debt that is secured solely by a pledge of the net revenues from fees and charges of the activity. Debt that is secured by a pledge of net revenues from fees and charges and the full faith and credit of a related primary government or component unit—even if that government is not expected to make any payments—is not payable solely from fees and charges of the activity. (Some debt may be secured, in part, by a portion of its own proceeds but should be considered as payable "solely" from the revenues of the activity.)

    b.    Laws or regulations require that the activity's costs of providing services, including capital costs (such as depreciation 5 or debt service), be recovered with fees and charges, rather than with taxes or similar revenues.

    c.    The pricing policies of the activity establish fees and charges designed to recover its costs, including capital costs (such as depreciation or debt service).

    [GASBS 34, ¶67, as amended by GASBS 84, ¶19]

    .110    Internal service funds may be used to report any activity that provides goods or services to other funds, departments, or agencies of the primary government and its component units, or to other governments, on a cost-reimbursement basis. Internal service funds should be used only if the reporting government is the predominant participant in the activity. Otherwise, the activity should be reported as an enterprise fund. [GASBS 34, ¶68]

    Fiduciary Funds

    .111    The fiduciary fund used to report fiduciary activities (see paragraphs .128–.136) should be based on the requirements in paragraphs .112–.115, except as provided in paragraph .116. [GASBS 84, ¶14]

    .112    Pension (and other employee benefit) trust funds are used to report fiduciary activities for the following:

    a.    Pension plans and OPEB plans that are administered through trusts that meet the criteria in paragraph .101 of Section Pe5, “Pension Plans Administered through Trusts That Meet Specified Criteria—Defined Benefit,” paragraph .101 of Section Pe6, “Pension Plans Administered through Trusts That Meet Specified Criteria—Defined Contribution,” paragraph .101 of Section Po50, “Postemployment Benefit Plans (Other Than Pension Plans) Administered through Trusts That Meet Specified Criteria—Defined Benefit, ”or paragraph .101 of Section Po51, “Postemployment Benefit Plans (Other Than Pension Plans) Administered through Trusts That Meet Specified Criteria—Defined Contribution,” respectively

    b.    Other employee benefit plans for which (1) resources are held in a trust that meets the criteria in paragraph .134c(1) of this section and (2) contributions to the trust and earnings on those contributions are irrevocable. [GASBS 84, ¶15]

    .113    Investment trust funds are used to report fiduciary activities from the external portion of investment pools and individual investment accounts that are held in a trust that meets the criteria in paragraph .134c(1). [GASBS 84, ¶16]

    .114    Private-purpose trust funds are used to report all fiduciary activities that (a) are not required to be reported in pension (and other employee benefit) trust funds or investment trust funds and (b) are held in a trust that meets the criteria in paragraph .134c(1). [GASBS 84, ¶17]

    .115    Custodial funds are used to report fiduciary activities that are not required to be reported in pension (and other employee benefit) trust funds, investment trust funds, or private-purpose trust funds. The external portion of investment pools that are not held in a trust that meets the criteria in paragraph .134c(1) of this section should be reported in a separate external investment pool fund column, under the custodial funds classification. [GASBS 84, ¶18]

    .116    Business-type activities, including enterprise funds, may report assets with a corresponding liability that otherwise should be reported in a custodial fund in the statement of net position of the business-type activity if those assets, upon receipt, are normally expected to be held for three months or less. A business-type activity that chooses to report such assets and liabilities in its statement of net position should separately report additions and deductions, if significant, as cash inflows and cash outflows, respectively, in the operating activities category of its statement of cash flows. [GASBS 84, ¶19]

  • Classification and Definition of Receipt Accounts

    ACCOUNTING FOR RECEIPTS

    The receipt codes listed in this chapter are part of an all-encompassing list that is applicable to the various types of schools in the state of Indiana. Charter schools will need to determine the applicability of each receipt code per Indiana Code and guidelines from state agencies.


    RECEIPT ACCOUNTS


    Each receipt account can be identified with the fund in which it must be recorded by reviewing the master chart of receipt accounts in this part. Proper accounting for receipts on prescribed School Form Number 508, Fund Ledger and Ledger of Receipts, may be attained by following these procedures.


    PREPARATION OF LEDGER


    Prepare a ledger account on Form Number 508 for each receipt account in which activity is anticipated during the year. Each receipt account must be identified with a fund; therefore, the accounts in the Ledger of Receipts are prepared on the same prescribed form as those for the Fund Ledger and they are placed in the binder or file in account number sequence immediately following the ledger account for the fund with which they are identified. This will provide a ledger of receipts by source within each fund.


    RECORDING RECEIPTS


    The source document for posting to the Ledger of Receipts is the duplicate receipt (carbon copy of Form Number 517). Each duplicate receipt is posted individually to the Ledger of Receipts and the "Balance" column used to accumulate the total receipts to date for that source or account number. The total of the receipts for each fund is posted to that fund account for each day's posting run. The total of all receipts written shall also be posted to the All Funds-Control account.


    Similarly, each duplicate receipt is posted individually to the proper receipt account for the fund with which it is identified. It is posted in an accumulated total with other receipts of the same fund to the fund account; and, in an accumulated total with receipts for all other funds to the All Funds-Control account. Total and foot the receipts column of each of these accounts monthly. A sum of the monthly footings of any individual receipt account must agree with the cumulative total as shown in the balance column of that account. A summary total of the monthly footings in the receipts column of each fund account will provide a total of the receipts to date for that fund. A summary total of the monthly footings in the receipts column of the All Funds-Control account will provide an overall total of the receipts to date for all school corporation funds.


    The total of all receipts must also be entered each day in the Treasurer's Daily Balance of Cash, Depositories and Investments record in order to maintain a current record.


    PROOF OF POSTING


    For proof of accuracy in posting receipts, follow these steps:


    1. Total the receipts in the Ledger of Receipts by fund and prove to the total of the receipts column of the fund account.
    2. Total the receipts of all of the funds in the Fund Ledger and prove to the total of the receipts column of the All Funds - Control account.
    3. Prove the balance of the All Funds - Control account to the closing balance on the Treasurer's Daily Balance of Cash and Depositories.
    4. The Ledger of Receipts should be maintained on a fiscal year (school year) basis beginning on July 1 and ending on June 30 of the following calendar year.

    DEPOSITING RECEIPTS


    All school corporation money must be deposited in accordance with IC 5-13-6-1.


    CLASSIFICATION OF RECEIPT ACCOUNTS


    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 source, object or purpose. In the Master Chart of Receipt Accounts in this manual, the Receipt Accounts are classified as Revenue Receipts, Nonrevenue Receipts and Incoming Transfers. The account numbers in the 1000 through 4000 series designate Revenue Receipts, those in the 5000 through 6000 series designated Other Financing Sources.


    The Revenue Receipts are further classified as Revenue From Local Sources, Revenue From Intermediate Sources, Revenue From State Sources and Revenue From Federal Sources. These classifications are basically in accordance with the pattern of account titles and numbers used by the U.S. Department of Education.


    DEFINITION OF RECEIPT ACCOUNTS


    Receipt Accounts are defined within each classification dependent on the source from which they are derived. These are identified by account title comparable to those in Handbook II revised and designated by account numbers divisible by one thousand to identify the source generally, with more specific identity provided by the hundreds and still greater detail identified by numbers divisible by ten and individual digits position. Still further separation and identity may be obtained by numbers following the decimal point to establish "point" designations, (3111.1) etc. More numbers may be added to these point designations to provide as much detailed identity as the local school administration desires.


    The Master Chart of Receipt Accounts on the following pages provides a detailed outline of the receipt accounts and indicates by an "X" (in the fund column) the proper fund in which each may be recorded. For example, Receipt Account 1110 "Local Property Taxes" shall be receipted to the Debt Service Fund, Operations Fund, and certain Special Funds according to the amount of revenue generated by the tax levy for each fund; however, Receipt Account 3111 “State Tuition Support” shall be receipted to the Education Fund only.

    PART 5


    DESCRIPTION OF RECEIPT ACCOUNTS

    Revenue from Local Sources – Generally, from the students or patrons of the school corporation.


    Taxes. Compulsory charges levied by the school corporation to finance services performed for the common benefit.


    1110  Local Property Taxes.  Taxes levied by a school corporation on the assessed value of real and personal property located within the school corporation that, within legal limits, is the final amount to be raised for school purposes.


    1130 Local Income Taxes. Taxes assessed by the school corporation and measured by net income that is, by gross income less certain deductions permitted by law. These taxes can be levied on individuals, corporations, or unincorporated businesses where the income is taxed distinctively from individual income.


    1190 Other Taxes. Other forms of taxes the school corporation levies/assesses, such as licenses and permits.


    Revenue From Local Government Units Other Than School Corporations. The school corporation is not the final authority in determining the amount of money to be received.


    1211     License Excise Tax. Distributions for the benefit of each fund with a tax levy.


    1212     Commercial Vehicle Excise Tax. Distributions in accordance with IC 6-6-5.5.


    1231     Financial Institutions Tax. Distributions in accordance with IC 6-5.5-8.


    1233     Local Income Taxes – County Surplus. Distributions in accordance with IC 6-3.6-9-17.


    1280     Revenue in Lieu of Taxes. Payments made out by a local governmental unit to the school district in lieu of taxes it would have had to pay had its property or other tax base been subject to taxation by the school district on the same basis as privately owned property.


    1290     Other Taxes. Other forms of taxes by a local governmental unit other than a school corporation, such as licenses and permits.

    Transfer Tuition and Other Payments. Revenue from individuals, welfare agencies, private sources, and other school corporations and government sources for education provided by the school corporation.


    1310 Transfer Tuition From Individuals


    Transfer Tuition From Other Government Sources Within The State


    1321 Transfer Tuition From Other School Corporations Within The State


    1322 Payments by Joint School Members. Amounts received by the administering school corporation from other school corporations participating in a joint school, for current operating expenses, debt services, construction, etc.


    1323 Payments by Area Vocational School Members. Amounts received by the administering school corporation from other school corporations for vocational instruction of students in accordance with the agreement for such service.


    1324 Joint Services and Supply. Amounts received by the administering school corporation from each of the participating school corporations included in a joint project in accordance with the written agreement.


    1325 Payments by School Corporations to Charter Schools. Amounts received from school corporations by charter schools only.


    1326 State Transfer Tuition. Amount received from the State in payment of tuition for children of state employees living on certain state owned properties. State payments for children residing in state mental hospitals.


    1327 Other (Specify) Amounts Received From Other Governmental Agencies. Amounts received from other governmental agencies not specifically categorized elsewhere. Appropriate subaccounts may be established and properly titled to identify the nature and source of such receipts.


    Transfer Tuition From Other Government Sources Outside The State


    1331 Transfer Tuition From School Corporations Outside The State


    1340     Transfer Tuition From Other Private Sources


    1350     Transfer Tuition For Voucher Program Students


    Transportation Fees. Revenue from individuals, private sources, or other school corporations and government sources for transporting students to and from school and school activities.


    1410     Transportation Fees From Individuals.


    1421     Transportation Fees From Other School Corporations Within The State.


    1431     Transportation Fees From Other School Corporations Outside The State.


    1440     Transportation Fees From Other Private Sources.


    Investment Income. Amounts received as the result of an investment of school corporation funds.

    1510 Interest on Investments. Interest revenue on investments authorized by IC 5-13-9.


    1520 Dividends on Investments. Revenue from dividends on donated stocks.


    Food Services. Amounts received for School Lunch Fund from the food service program when maintained as a school corporation account.


    Daily Sales – Reimbursable Programs. Revenue from students for the sale of breakfasts, lunches, and milk that are considered reimbursable by the United States Department of Agriculture. Federal and State reimbursements are not entered here.


    1611     School Lunch Program. Revenue from students for the sale of reimbursable lunches as part of the National School Lunch Program.


    1612     School Breakfast Program. Revenue from students for the sale of reimbursable breakfasts as part of the School Breakfast Program.


    1613     Special Milk Program. Revenue from students for the sale of reimbursable milk as part of the Special Milk Program.


    1614     After School Programs. Revenue from students from the sale of reimbursable costs from after-school programs.


    Daily Sales – Non-Reimbursable Programs. Revenue from students or adults for the sale of non-reimbursable breakfasts, lunches, and milk.


    1621     Adult Sales


    1622     Second Type A Students – Extra breakfast or lunch meals purchased by students.


    1623     Ala Carte


    1630 Special Functions. Money received from other local sources which concern the  school lunch program. Some examples are potlucks, Parent-Teacher Association (PTA)/Parent-Teacher Organization (PTO)-sponsored functions, and athletic banquets.


    1650 Daily Sales – Summer Food Program. Revenue from students from the sale of reimbursable costs from summer programs.


    School Corporation Activities. Revenue resulting from co-curricular and extracurricular activities controlled and administered by the school district. Student activity revenues should be reported here as well, but school districts should have methods internally to track student activity revenue separately.


    Fees – Student and Adult. Revenue from students for fees such as locker fees, towel fees, and equipment fees. Tuition fees are recorded under the appropriate account in the 1300 series. Transportation fees are recorded under the appropriate account in the 1400 series. Textbook fees are recorded in the 1940 series.


    1741     Student and Adult. Revenue from students for fees such as locker fees, towel fees, and equipment fees.


    1742     Other Fees. Revenue from fees not accounted for elsewhere.

    1750 Revenue From Enterprise Activities. Revenue (gross) from vending machines, school stores, soft drink machines, and so on, not related to the regular food service program. These revenues are normally associated with activities at the campus level that generate incremental local revenues for campus use, but may include
    revenue that benefits the general operations of the district.


    1760 Receipts From Extracurricular Accounts. Reimbursement for expenses handled through the school corporation system.


    1800 Revenue From Community Services Activities. Revenue from community services activities operated by a school corporation. For example, revenue received from operation of a performing arts center by a school corporation as a community service would be recorded here. Facility rentals should be recorded under 1910.


    Other Revenue from Local Sources. Other revenue from local sources not classified above.

    1910 Rentals. Revenue from the rental of either real or personal property owned by the school corporation.


    1920 Contributions and Donations From Private Sources. Revenue associated with contributions and donations made by private sources. These organizations include, but are not limited to, educational foundations, PTA/PTO organizations, campus booster clubs, and private individuals. This code should be used to record on-behalf payments made by private organizations to school district personnel (e.g., stipends paid to teachers or other school district staff).


    Textbook Sales and Rentals. Revenue from the rental or sale of textbooks.


    1941 Textbook Sales. Revenue from the sale of textbooks.


    1942 Textbook Rentals. Revenue from the rental of textbooks.


    Miscellaneous Revenue From Other School Corporation. Revenue from services provided other than for tuition and student transportation services. These services could include data processing, purchasing, maintenance, cleaning, consulting, and guidance.


    1951 Miscellaneous Revenue From Other School Corporations Within The State. Amounts received from other Indiana school corporations for services provided.


    1952 Miscellaneous Revenue From Other School Corporations Outside The State. Amounts received from other school corporations located outside Indiana for services provided per contractual arrangement.


    Miscellaneous Revenues From Other Local Governmental Units. Revenue from services provided to other local governmental units, including the state. These services could include nonstudent transportation, data processing, purchasing, maintenance, cleaning, cash management, and consulting.


    1961 Interest From County on Late Undistributed Payments

    1962 Vocational Education Revenue From County


    Self-Insurance. This account is only used with internal services funds.

    1971 Amounts forwarded to Self-Insurance Fund. Amounts received as authorized expenditures from individual funds for the payment of self-insurance claims.


    1980 Refund of Prior Year's Expenditures. Expenditures that occurred last year that are refunded during the current year.


    Miscellaneous. Revenue from local sources not provided for elsewhere, including services provided to individuals.


    1991 Refund of Insurance (Premiums Paid)


    1992 Refund School Building Holding Companies – Overpayment. Balance  returned by a public holding company resulting from failure to stop lease rental payments on time.


    1993 Refund School Building Holding Companies – Reimbursement. Reimbursement amounts refunded to a school corporation for costs incurred by the school corporation during initial construction.


    1994 Other Overpayments And Reimbursements. Receipt here any refunds of overpayments regardless of the type of overpayment or the purpose for which it was made.


    1995 Transportation – Migrant Children. Receipt to this account any refunds from federal projects for transportation costs paid from the Operation Fund to transport children participating in the migrant program.


    1996 Refund of Tax Paid On Gasoline. Refund of sales tax paid on gasoline purchases through metered pumps. Refunds to special funds permissible only if original payments were made by a federal grant, etc.


    1997 Indirect Costs Received.


    1999 Other. Revenue from local sources not otherwise classified. Specify the identity of each.


    Revenue From Intermediate Sources.


    2100 Unrestricted Grant-In-Aid. Revenue recorded as grants by the school corporation from an intermediate unit that can be used for any legal purpose desired by the school corporation.


    2200 Restricted Grants in Aid. Revenue recorded as grants by the school corporation from an intermediate unit that can be used for a categorical or specific purpose.


    2800 Revenue In Lieu of Taxes. Commitments or payments made out of general revenues by an intermediate governmental unit to the school corporation in lieu of taxes it would have had to pay had its property or other tax base been subject to taxation by the school corporation on the same basis as privately owned property or other tax base.


    Revenue For/On Behalf of The School Corporation. Payments made by an intermediate governmental jurisdiction for the benefit of the school corporation.


    2910 Educational License Plate Fees. Distributions according to IC 9-18.5-15.


    2920 Congressional Interest. Distribution from the County for Congressional Township Fund according to IC 20-42-2-7.


    2930 Riverboat Distribution. Only receipt Riverboat Distributions your school corporation is authorized by statute to receive. You should receive the written opinion from the school corporation attorney with specific references to the applicable statute.

    2940 Local Service Fees. Fees levied by another governmental unit that is passed on to the school corporation.

    2950 Business Personal Property Exemption Local Service Fees. Distribution from the County for Local Service Fees established according to IC 6-1.1-3-7.3.

    2990 Other (Specify). Revenue from intermediate sources not otherwise classified.

    Revenue From State Sources


    Unrestricted Grants In Aid. Revenue recorded as grants by the school corporation from state funds that can be used for any legal purpose desired by the school corporation without restriction.


    3101     Innovation Network Charter School-State Grant. State tuition support passed through to Innovation Network Charter Schools.


    3102     Innovation Network School-State Grant. State tuition support passed through to Innovation Network Schools.


    Minimum Foundation Program. Amounts received from the state to meet the minimum foundation support program for school corporations.


    3111 State Tuition Support. Revenues provided the school corporation in fulfilling the school funding formula for state tuition support.


    3112 Veterans' Memorial Funds Withheld. The exact amount withheld from the basic grant distribution for repayment of advancement from the Veterans' Memorial Fund. The amount for repayment would be included on the annual budget in the Debt Service Fund, receipted to the Debt Service Fund when collected and paid to this account in the Education Fund at the same time the net amount of the tuition support distribution from the Auditor of State is receipted to 3111.


    3113 Common School Funds Withheld. The exact amount withheld from the basic grant distribution for repayment of an advancement from the Common School Fund. The amount for repayment would be included on the annual budget in the Debt Service Fund, receipted to the Debt Service Fund when collected and paid to this account in the Education Fund at the same time the net amount of the basic grant distribution from the Auditor of State is receipted to 3111.


    3114 Summer School. Receipt of the amount distributed for state support of  summer school classes.


    3115 Evening and Part-Time Schools. Receipt of the amount distributed for state support of evening and part-time classes.


    3116 Adult Learners. Receipt of the amount distributed for state support of adult learning programs.


    3117 Secured School Safety Grant. Receipt of the amount awarded by the Indiana School Safety Board for grant per IC 10-21-2-4.

    3118 Charter and Innovation Network School Grant. Receipt of the amount awarded by the Indiana State Board of Education for grant per IC 20-24-13.


    Other State Distributions. Amounts received from the state for purposes other than for tuition.


    3120   Choice  Savings  Distribution.     Receipt distribution from Indiana Department of Education according to IC 20-51-4.


    3121 Transportation. State distributions for transportation of children made in accordance with the transportation formula adopted by the State Board of Education.


    3122 Social Security Obligations. Amounts received from the State for Social Security obligations.


    3140 Vocational Education. Amounts received from the distribution of state funds provided as matching funds to obtain federal support.


    State Matching Funds. Amounts received from the distribution of state funds provided as matching funds to obtain federal support.


    3151 School Lunch. Distribution of state funds provided as matching funds to obtain federal support for the school lunch program.


    3190 Other (Specify). Unrestricted grants-in-aid received from state sources not otherwise classified. Specify the identity of each.


    3198 Formative Assessment Grant. Receipt of the grant amount provided by the Indiana Department of Education.


    3199 Remediation/Preventive Remediation Programs. Receipt of the amount reimbursed by the state for required remediation.


    3200 Restricted Grants In Aid. Revenue recorded as grants by the school corporation from state funds that must be used for a categorical or specific purpose.


    3211 Alternative Education. State grant amounts received to fund the Alternative Programs, Fund 3300-3349.


    3212 School Library. To account for amounts received in accordance with P.L. 260, 1997, and other library grants provided by the state.


    3213 School SAFE Haven. To account for grant amounts received under IC 5-2- 10.1-2, Fund 3350-3399.


    3214 Early Intervention/Reading Recovery. To account for grant amounts received for Fund 3400-3499.


    3217 Technology Grants. Amounts received to actively implement various state technology grants.


    3219 School Intervention and Counseling. Receipt amounts received for state intervention and counseling grants. Also, the portion of the Educational License Plates Fee, which is administered through the Department of Education, IC 9-18-31.


    3220 Computer Consortium Advancements. Amount of advancement received for purchase of computer hardware and software.

    3230 High Ability. Amount received for the gifted and talented program.

    3250 Medicaid Reimbursement – State. State payments received for reimbursements as a Medicaid provider.

    3256 Indiana Special Education Grants. State grants received for funding various special education initiatives.

    3271   STEM  Grants  –  Science,  Technology,  Engineering,  Math. State grants received for various STEM grants.


    3280  Professional Development.  To account for grants received under IC 20-19-2, such as for travel and seminars.


    3286   Early  Childhood  Education. State grants received for early childhood education grants.


    Other Grants In Aid - Restricted. Amounts received not otherwise classified.


    3291     Non-English Speaking Programs.  State grants received to support non-English speaking education.


    3292     Arts Grants. To account for those state grants restricted for "Arts" and cultural activities.


    3293     Performance Based Awards. Amounts received from the State for this program to reward schools for educational achievements.


    3298     Drug Free Communities. To account for the Drug Free Communities Program.


    3299     School Academic Improvement. Originally Twenty-First Century School Program concerning school restructuring.


    3310     Turnaround Support. To receipt for state distributions for turnaround schools.


    3800 Revenue In Lieu of Taxes. Commitments or payments made out of general revenues by the state to the school corporation in lieu of taxes.


    Revenue For/On Behalf of The School Corporation. Commitments or payments made by the state for the benefit of the school corporation or contributions of equipment or supplies.


    3910 Curricular Materials Reimbursements. Amounts received from the State for reimbursements of the costs of textbooks/workbooks per IC 20-33-5.


    3920 Congressional  Interest.     Distribution from the State for Congressional Township Fund according to IC 20-42-2-4.5.


    3990 Other (Specify).


    Revenue From Federal Sources.


    4100 Unrestricted Grants In Aid Direct From The Federal Government. Revenue direct from the federal government as grants to the school corporation that can be used for any legal purpose desired by the school corporation without restriction.

    Unrestricted Grants In Aid From The Federal Government – Through The State.


    4211 Home Economics, Agriculture and Industrial. Amounts received from federal sources through the state agency for these purposes.


    4213 Area Vocational Schools. Amounts received from federal sources through a state agency for an area vocational school. These are preliminary receipts to fund area schools.


    4214 Prevocational Education (Handicapped). Amounts received from federal sources through a state agency for prevocational education programs.


    4220 Special Education. Any distribution of federal funds received through a state agency for funding special education.


    4223 Public Law 101-476 IDEA. Funds received for educating handicapped.

    4260   Adult Education.  Grant amounts received from the distribution of federal funds through a state agency for financing adult education classes.

    4270   Disaster Grants-Unrestricted.  Grant amounts of federal funds received through state agencies for no specific purpose resulting from emergencies created by declared disaster conditions.

    Other (Specify).  These accounts may be used and appropriately titled for other receipts of federal funds through state agencies not specifically categorized elsewhere.

    4291   School Lunch Reimbursement.  Receipt to this account the federal reim­bursement for school lunch meals served.

    4292   School Breakfast Reimbursement.  Receipt reimbursements for the School Breakfast meals served.

    4293   Special Milk Reimbursement.  Receipts for Federal reimbursements for the special program.

    4294   Summer Food Service Program for Children. Receipts for federal reimburse­ments for the summer food service program.


    4296 Child and Adult Care Food Program. Receipts for federal reimbursements for the child and adult care food program


    4297 After School Snack Reimbursement. Accounts for reimbursements for the snack program.


    4298 Fresh Fruits and Vegetables. Receipts for federal reimbursements for the fresh fruits and vegetables program.


    4299 Other


    Restricted  Grants-In-Aid  Direct  From  The Federal Government.     Amount of federal aid received direct from the federal agency; the use of which is restricted to a specific purpose.


    4310 Disaster Grants-Restricted. Grant amounts of federal funds received directly from the federal agency for the specific purpose of restoring property damaged or destroyed by the disaster.

    4330     Technology. To account for federal grants to be used for technology projects.

    4390     Other (Specify). Amounts of grants-in-aid received direct from the federal agency for restricted purposes not specifically categorized elsewhere.

    Restricted Grants-In-Aid From The Federal Government Through The State. Revenues from the federal government through the state as grants to the school corporation that must be used for a categorical or specific purpose.


    Public Law 97-35 – Improving America’s Schools Act of 1994


    4514     Title I. Grant amounts received to fund Title I projects approved by the state agency.


    4515     Title V. Grant amounts received to fund Title VI projects approved by the state agency.


    4516     Title I – Migrant. Grant amounts received to fund Title I Migrant Program approved by the state agency.


    4520 Non-Food Assistance. Federal assistance through the Division of School Lunch for equipping a new kitchen facility.


    4540 Medicaid Reimbursement – Federal. Federal payments passed through the state agency for reimbursements as a Medicaid provider.


    4550 Title IV. Federal funds received for Title IV program, such as student aid..


    4591   Career Awareness.    Grant amounts received to fund Career Awareness programs.


    4592 Title II. Federal funds received for Title II program, such as that that support recruiting, preparing, and training educators.


    4595 Step Ahead. Grant amounts received to fund Step Ahead programs.


    4597 Homeless Assistance Grants. Federal funds received to assist in educating homeless students.


    4700 Grants-In-Aid From The Federal Government Through Other Intermediate Agencies.


    Revenues from the federal government through an intermediate agency.


    4800 Revenue In Lieu of Taxes. Commitments or payments made out of general revenues by the federal government to the school corporation in lieu of taxes.


    4900 Revenue For/On Behalf of The School Corporation. Commitments or payments made by the federal government for the benefit of the school corporation.


    4990 Other (Specify). Amounts received for federal projects not separately identified.


    Other Financing Sources


    Issuance of Bonds. Used to record the face amount of the bonds that are issued.


    5110 Bond Principal and Bank Loan Principal. Receipt of the proceeds from the sale of general obligation bonds, amount of principal only. Receipt such amount to this account in the Construction Fund of the school corporation. Also receipt pension bond proceeds to Fund 620 by using Account 5110.

    5120 Premium and Accrued Interest on the Issuance of Bonds. If any premium and/or accrued interest is received from the sale of general obligation bonds, it must be receipted to this account in the Debt Service Fund of the school corporation.


    5130 Tax Anticipation Warrant Premiums. Premiums received regarding tax anticipation warrants.


    5140 Bond Anticipation Notes. Receipt to this account in the Construction Fund of the school corporation any money advanced for school building construction. Also receipt any amounts advanced for pension bonds to Fund 620.


    5200 Transfers From One Fund to Another. Receipt to this account all authorized transfers from one fund to another for specific purposes.


    5210     Social Security Transfers – Co-ops. Amounts received from the State requiring transfer to other funds or to co-ops.


    5310     Disposal of Real Property. Any money received from the sale of real estate and buildings.


    5320     Disposal of Personal Property. Any money received from the sale of equipment, supplies, school buses and other items considered personal property.


    5390     Other  (Specify).  Receipt to this account the money received not specifically categorized elsewhere.


    Loan Proceeds


    5410 Veterans' Memorial Fund Advance. Receipt to this account any money advanced by the state from the Veterans' Memorial Fund for school building construction.


    5420 Common School Fund Advances. Receipt to this account any money advanced by the state from the Common School Fund for school building construction.


    5430 Temporary Loan Principal. Receipt to this account the money received from a loan obtained to pay current expenses prior to the receipt of revenue from taxes levied for that purpose. These loans, sometimes designated tax anticipation warrants, must be repaid from the next semiannual distribution of local property taxes levied for such fund.


    5440 Emergency Loan Principal. Receipt to this account the money received from a loan obtained in the Fund for emergency expenditures which were not included in the existing budget and tax levy. Repayment must be included in the annual budget for the next year to repay the loan and interest.


    5450 Loans From One Fund to Another. Receipt to this account any money temporarily transferred from one fund to a depleted fund for use in paying current operating expenses. Such advancement shall not be made for a period extending beyond the budget year unless the appropriate emergency steps are taken from IC 36-1-8-4.


    5460 School Bus Loans. Receipt to this account the money obtained from a banking or lending institution for the purpose of purchasing school buses.

    5470 Grant Anticipation. Receipt to this account any amounts received by way of borrowing against approved federal or state grants.


    5480 Energy Savings. Loans under IC 36-1-12.5.


    5500 Capital Lease Proceeds. Receipt to this account the money received from the School Corporation entering into a capital lease agreement for some of its real or personal property.


    5600 Other Long-Term Debt Proceeds. Receipt to this account the money received by issuing debt that is not categorized elsewhere.


    6000 Other Items


    6010 Return of Petty Cash. Receipt petty cash when the Petty Cash Fund is closed out  and returned to the issuing Fund.


    6020 Return of Cash Change. Receipt cash change whenever the cash change fund is closed out, or there is a change in custodians or whenever required for periodic monitoring.


    Extra Ordinary Items. Included are transactions or events that are outside the control of school corporation administration and are both unusual in nature and infrequent in occurrence. For some corporations, these include insurance proceeds to cover significant costs related to a natural disaster caused by fire, flood, tornado, hurricane, or hail storm; insurance proceeds to cover costs related to an environmental disaster.


    6410 Insurance (Claims for Losses). Receipt to this account the money received as a result of claims filed for losses of insured property.


    Sale of Securities


    6510 Securities. Receipt to this account the principal of any investments when they are sold.

    6550 Withholdings.  Receipts for payroll withholdings, employee benefits and other clearing accounts.


    6600 Other (Specify). Receipt to this account the money received not specifically categorized elsewhere.


    To view the matrix of receipt accounts click here.

  • Classification and Definition of Expenditure Accounts

    CLASSIFICATION AND DEFINITION OF EXPENDITURE ACCOUNTS

    The expenditure codes listed in this chapter are part of an all-encompassing list that is applicable to the various types of schools in the state of Indiana. Charter schools will need to determine the applicability of each expenditure code per Indiana Code and guidelines from state agencies

    EXPENDITURE ACCOUNTS


    Each expenditure account can be identified with the fund from which it may be disbursed by reviewing the master chart of expenditure accounts in this part. Proper accounting for disbursements on prescribed School Form No. 512, Ledger of Appropriations, Allotments, Encumbrances, Disbursements and Balances, may be attained by following the procedures in this Part.


    PREPARATION OF LEDGER


    Prepare a ledger account on Form No. 512 for each item of appropriation in the approved budget; also, a ledger account for each item allotment by the School Board within each appropriation. Arrange  the ledger accounts so the Instruction-Regular Programs Appropriation of the Education Fund will appear first. This will be followed by Expenditure Account Number 11100 and all other expenditure accounts within this program in numerical sequence. Follow the last expenditure account of the Instruction-Regular Programs appropriation with the Instruction-Special Programs appropriation of the Education Fund and all expenditure accounts within the Instruction-Special Programs appropriation of the Education Fund. Continue with all expenditure accounts within each of the other appropriations of the Education Fund until all appropriation and expenditure accounts have been included for that fund. Follow the last expenditure account of the Education Fund with the first appropriation account of the next Fund utilized. Continue to arrange the expenditure accounts by fund and appropriation (program) until the ledger is complete.


    APPROPRIATIONS AND ALLOTMENTS


    Post the amount of the budgeted appropriation for each program to that program account in the ledger and the amount of the allotment by the school board for each expenditure account to that expenditure account in the ledger. This posting will be the opening entry for these accounts each  calendar year unless an encumbered amount of an appropriation is brought forward from the program account for the preceding calendar year. The encumbered amount brought forward and added to the appropriation in the program account must also be entered in the proper expenditure accounts and added to the allotment balances of the expenditure accounts. In this manner the proof of expenditure accounts, within any program, to the program account will not be disturbed. When this is done, the amounts  brought forward must be entered in the "Encumbered" column and included in the balance showing in the "Outstanding" column of the ledger accounts.


    Total and balance all expenditure and program (appropriation) accounts at the close of the school year on June 30. The appropriation and allotment balances are to be carried forward to July 1, the beginning of the new school year. Total and close the expenditure and program ledger accounts for the budget year on December 31. Open new accounts as of January l with the appropriations which are itemized in the approved budget for the new calendar year.

    REQUISITIONS, PURCHASE ORDERS AND CLAIMS


    When a requisition is received in the business office and the purchase order written, the purchase order must indicate to which Expenditure Account it is to be charged. If more than one Expenditure Account is to be charged, for items ordered on any one purchase order, all necessary Expenditure Account numbers should be indicated. When the purchase order is posted it will be entered in the columns under the heading 'Value of Purchase Orders" to properly encumber the allotment of each Expenditure Account. Post the total of the purchase orders to the program concerned to properly encumber the appropriation. If an amount already appears in the "Outstanding" column of the account, any additional encumbrances will be added to the amount already entered. This will update the total outstanding.


    After merchandise ordered on encumbered purchase orders has been received and claims filed, the claims must be grouped by Funds from which they are to be paid and arranged numerically by program and Expenditure Account within each fund. Arranging the claims in this manner will greatly reduce the time and effort required to post the accounts after the checks are written. It will also facilitate future reference to the disbursements and the post-audit of the records. The arranging of claims must be done prior to numbering and entry on the Register of Claims prior to the allowance by the Board of School Trustees and the writing of checks.


    RECORDING DISBURSEMENTS


    To post a check written to a vendor for payment of a claim for which a purchase order was written and encumbered, determine the Expenditure Account on which the purchase order was encumbered. Turn to that account in the Ledger of Appropriations, Allotments, Encumbrances, Disbursements and Balances and liquidate the purchase order in the 'Value of Purchase Orders Liquidated" column in the same amount as it was encumbered. Reduce the Value of Purchase Orders Outstanding by the amount liquidated. Place a check mark (√) in the proper column to indicate liquidation of that purchase order.  Post the amount of the check in the Disbursements column and reduce the amount of the Appropriation or Allotment Balance by the amount of the check.


    To post a check written in payment of a claim for which no purchase order was encumbered, enter the amount of the check in the disbursements column and reduce the amount of the allotment balance, on the proper Expenditure Account record.


    At the end of each posting run the total value of the purchase orders liquidated for each program must be posted to the liquidation column of that program account and the value of purchase orders outstanding reduced accordingly. The total of the amounts of all checks issued against each program must be posted to the disbursements column of that program account and, with the totals for all other programs of the same fund, also posted to the disbursements column of that fund account in the Fund Ledger. In the same manner, the total disbursements for all funds must be posted to the disbursements column of the All Funds-Control account.


    To record payrolls on the accounting records, post the gross amount of the payroll claim to the disbursements column of the applicable Expenditure Accounts and Program Accounts in total only. From the distribution section of the payroll claim, determine the gross amount to be disbursed from each fund and post it to the disbursements column of those Fund accounts in the Fund Ledger.  Post the net  amount of the payroll (after deductions) to the disbursements column of the All Funds-Control account and the total of each of the various deductions to the receipts column of the applicable Clearing Accounts in the Clearing Accounts section of the Fund Ledger. The total disbursements (net amounts of checks) must also be entered on the Treasurer's Daily Balance of Cash and Depositories record each day that transactions occur.

    PROOF OF POSTING


    For proof of accuracy in posting disbursements, follow these steps:


    1. Total the disbursements, as shown in the expenditure accounts, by program and prove to the total disbursements of the program account.
    2. Total the disbursements, as shown in all of the program accounts for any one fund, and prove to the total disbursements of the fund account.
    3. Total the balance in all of the fund accounts with the balances in the payroll deductions clearing accounts and prove this total to the balance of the All Funds-Control account.
    4. Prove the balance in the All Funds-Control account to the closing balance of the Treasurer's Daily Balance of Cash and Depositories.

    FINANCIAL REPORTING


    Not earlier than August 1 or later than August 15 of each year, the secretary of each school board shall publish an annual financial report of the school corporation. Said publication is to be made one time in accordance with IC 5-3-1-3.


    If desired for the published report, school treasurers may set up a vendor ledger as a subsidiary ledger for accumulating totals for publication, with the employee earnings records used for payments to individual employees.


    Preparation of the Financial Report for the State Department of Education will be relatively easy from currently posted records in the system. Simply refer to the accounts in the Ledger of Receipts (Form 508) or approved computerized equivalent for the receipts required for the report and continue the process for the disbursements section of the report by using the accounts in the Ledger of Appropriations, Allotments, Encumbrances, Disbursements and Balances (Form 512) or approved computerized equivalent. The report must agree with the totals and the balances reflected in the Fund Ledger and All Funds-Control account. Performance reporting would be as required by IC 20-20-8.


    ACCOUNTING BY OBJECT


    In addition to the accounting procedures discussed previously each expenditure transaction must be identified by Object as described in Part VII so that the amounts for each object may be summarized on an annual basis for a school year or for a budget year as desired or needed. To facilitate this procedure, an additional column has been provided on the Ledger of Appropriations, Allotments, Encumbrances, Disbursements and Balances (School Form No. 512) to record the Object Number. From this identification, the amounts may be summarized daily, monthly, quarterly or semiannually, dependent on the number of transactions occurring and the need for the Object data. All corporations shall maintain a summarizing report for each six month period ending
    June 30 and December 31.

    ACCOUNTING BY BUILDING LEVEL NUMBER


    Indiana Code 20-42.5-3-7 requires that the Chart of Accounts provides the ability to determine expenditures made at and for each individual school building. To facilitate this school corporations will be required to add a building identification number to their expenditure coding. The Board of Accounts prescribed method of coding will be as follows:


    Fund Number-Expenditure Account Number-Object Code Number-Building Level Number


    CLASSIFICATION OF EXPENDITURE ACCOUNTS


    For the purposes of this manual and the prescribed accounting system for Indiana's public schools, the Expenditure Accounts are separated into classifications dependent upon the program area and purpose affected. The Expenditure Accounts are identified by numerical designations related as closely as possible to those used by the U.S. Department of Education.


    DEFINITION OF EXPENDITURE ACCOUNTS


    Expenditure Accounts are defined within each appropriation classification or budget and accounting program by the specific area or purpose which they serve. These accounts are identified by account titles basically comparable to the U.S. Department of Education which also serve to provide definitions of each.


    The Master Chart of Expenditure Accounts beginning on the following page provides a detailed outline of the expenditure accounts prescribed for use and indicates by an "X" in the fund column from which fund each may generally be disbursed. The Master Chart of Expenditure Accounts is followed by a detailed description of each account and its use.


    In the series of accounts for INSTRUCTION, there is additional detail which may be included that is optional to the local unit. The categories of Instruction-Regular Programs in Elementary as well as Middle/Junior High School, and High School are required to be used for budgeting, accounting and reporting purposes. Subaccounts within each of these are not required but may be included if such detail is within the capabilities of the local unit's system. Additional detail will provide better program cost data. The detail in Vocational Education (11400 and 11500) is required.

    DESCRIPTION OF EXPENDITURE ACCOUNTS

    INSTRUCTION. Instruction includes the activities dealing directly with the interaction between teachers and students. Teaching may be provided for students in a school classroom, in another location such as a home or hospital, and in other learning situations. It may also be provided through some other approved medium, such as televisions, radio, computer, Internet, multimedia telephone, and correspondence, that is delivered inside or outside the classroom or in other teacher-student settings. Included here are the activities of aides or classroom assistants of any type (clerks, graders, teaching machines, etc.) who assist in the instructional process.


    Regular Programs. Instructional activities designed for the normal educational program as contrasted with those for special programs.


    11025 Non Special Ed Preschool. Serves as a control account concerning expenditures for Non Special Ed Preschool.


    11050 Full Day Kindergarten. Serves as a control account concerning expenditures for full day Kindergarten.


    11100 Elementary. Serves as a control account for applicable subaccounts concerning expenditures for the regular instructional program at the elementary level. Included are any grades, ungraded areas and departmentalized subject matter areas included in the elementary level of the school corporation or cost center within the corporation. If free textbooks are provided the elementary, the cost must be made a part of this program. Also include amounts necessary to meet additional salary requirements for teachers’ assigned extra duties such as coaching class plays, sponsor of a class or a social organization, etc.


    11200 Middle/Junior High School. Serves as a control account for the applicable subaccounts concerning expenditures for the regular instructional program at the middle or junior high school level. Included are the costs related for all required and elective subject matter areas in a departmentalized middle or junior high school or for all grade levels in those corporations whose junior high school is not departmentalized but is identified by grade levels. Also include amounts necessary to meet additional salary requirements for teachers’ assigned extra duties such as coaching class plays, sponsor of a class or a social organization, etc.


    11300 High School. Serves as a control account for the applicable subaccounts concerning expenditures for the regular instructional program at the high school level. Included are the costs related to this level for all required and elective subject matter areas in a departmentalized high school. Include costs for Agriculture, Art, Business, Driver Education, English, Foreign Languages, Home Economics, Industrial Arts, Junior R.0.T.C., Mathematics, Music, Physical Education and Health, Science, Social Studies, Vocational (excluding courses qualifying pupils for additional count toward state funding), items of a school wide nature such as the expense of providing substitute teachers, the cost of preparation periods for instructional staff, termination pay of retiring teachers and other program wide expenditures the estimate of which cannot be placed in detail categories. Also include amounts necessary to meet additional salary requirements for teachers’ assigned extra duties such as coaching class plays, sponsor of a class or a social organization, etc.


    11350 Honors Diploma. Serves as a control account for amounts disbursed to eligible students, in accordance with IC 20-43-10.


    11355 Honors High Ability Student Program. Serves as a control account for disbursements, in accordance IC 20-36.

    Career and Technical Education. Serves as a control account for the applicable subaccounts concerning expenditures for the career and technical education programs which qualify the student for additional pupil count credit towards state support.


    11410 Agriculture, Food, & Natural Resources. That portion of the career and technical education expense which provides Agriculture, Food, & Resources programs.


    11415 Arts, Technology, & Communications. That portion of the career and technical education expense which provides Arts, Technology, & Communications programs.


    11420 Science, Technology, Engineering, & Math.  That portion of the career  and technical education expense which provides Science, Technology, Engineering, & Math programs.


    11425 Manufacturing. That portion of the career and technical education expense which provides Manufacturing programs.


    11430 Business, Marketing, & Administration. That portion of the career and technical education expense which provides Business, Marketing, & Administration programs.


    11435 Architecture & Construction. That portion of the career and technical education expense which provides Architecture & Construction programs.


    11440 Education & Training. That portion of the career and technical education expense which provides Education & Training programs.


    11445 Health Science. That portion of the career and technical education expense which provides Health Science programs.


    11450 Human Services. That portion of the career and technical education expense which provides Human Services programs.


    11455 Hospitality & Tourism. That portion of the career and technical education expense which provides Hospitality & Tourism programs.


    11460 Law, Public Safety, & Security. That portion of career and technical education expense which provides Law, Public Safety, & Security programs.


    11465 Marketing, Sales, & Services. That portion of career and technical education expense which provides Marketing, Sales, & Services programs.


    11470 Transportation & Logistics. That portion of the career and technical education expense which provides Transportation & Logistics programs.


    11475 Finance. That portion of the career and technical education expense which provides Finance programs.


    11480 Government & Public Administration. That portion of the career and technical education expense which provides Government & Public Administration programs.

    11485 Information Technology. That portion of the career and technical education expense which provides Information Technology programs.


    11510 Cooperative Education Participation. That portion of the career and technical education expense which provides Cooperative Education Participation programs.


    11520 Area School Participation. That portion of the unit's share for students participating in the programs of an area career and technical school.  This account should be used for the expense of only those students qualifying for the additional pupil count factor as it applies to state support. Other expense, if any, for Area Career and Technical School Participation should be provided in Account No. 17300.


    11590  Other Vocational/Career & Technical Education Programs.  That portion of the vocational/career & technical education expense which provides for vocational/career & technical education programs that are not identified separately


    Alternative Education Programs. Serves as a control account for applicable sub accounts for Alternative Education Programs established in accordance with statute.


    11610   Alternative Education-Elementary. That portion of Alternative Education Programs attributable to elementary school.


    11620   Alternative Education-Middle/Jr. High School. That portion of Alternative Education Programs attributable to Middle/Jr. High School.


    11630   Alternative Education-High School. That portion of Alternative Education Program attributable to High School.


    Other Regular Programs. Serves as an accounting medium or as a control for applicable subaccounts concerning expenditures for the instructional expense of regular programs not specifically identified separately.


    11910 Competency Testing. That portion of expense from competency testing/ remediation program expenditures.


    11920 Project 4R. That portion of expense for the Project 4R program.


    Special Programs. Instructional activities designed primarily to deal with pupils having special needs. These are to improve or overcome physical, mental, social and/or emotional disabilities and include the gifted and talented as well as the disabilities and disturbed. Concerned with expenditures for programs which qualify the child for additional pupil count credit towards state support.


    Gifted and Talented.


    12110 Gifted and Talented. Serves as a control account for the applicable subaccounts concerning expenditures for the special instructional programs for the gifted and talented at all levels.


    12150 High Ability Students.  Instructional activities for high ability students for  all grade levels except for students in the honors diploma program (11355).

    Mental Disabilities. Serves as a control account for the applicable subaccounts concerning expenditures for the special instructional programs for the mental disabilities at all levels.


    12210 Mild Mental Disabilities. That portion of the special instructional programs expense for the mental disabilities which is attributable to the programs established for the mild mental disabilities.


    12220 Moderate Mental Disabilities. That portion of the special instructional programs expense for the mental disabilities attributable to those programs which are established for the moderate mentally disabilities.


    12230 Severe Mental Disabilities. That portion of the special instructional programs expense for the mental disabilities which is attributable to the programs established for the mental disabilities.


    Physical Impairment. Serves as a control account for the applicable subaccounts concerning expenditures for the special instructional programs for the physically impaired at all levels.


    12310 Orthopedic Impairment. That portion of the special instructional programs expense for the physical disabilities which is attributable to the program established for those students identified or weighted as orthopedic impairment.


    12320 Multiple Disabilities. That portion of the special instructional programs expense for the physical disabilities which is attributable to the programs established for the multiple disabilities.


    12330 Visual Impairment. That portion of the special instructional programs expense for the physical disabilities which is attributable to the programs established for the visual impairment.


    12340 Hearing Impairment. That portion of the special instructional programs expense for the physical disabilities attributable to those programs which are established for the hearing impairment.


    12350 Homebound. That portion of the special instructional programs expense for the physically disabilities attributable to those programs which are established for the homebound.


    Emotional Disabilities. Serves as a control account for the applicable subaccounts concerning expenditures for the special instructional programs expense for the emotionally disabilities at all levels.


    12410 Emotional Disabilities-Full Time. That portion of the instructional  programs expense for the emotional disabilities attributable to those in the full time program.


    12420 Emotional Disabilities-All Others. That portion of the instructional programs expense for the emotional disabilities attributable to those not identified with the full time program.


    Culturally Different. Serves as a control account for the applicable subaccounts concerning expenditures for the special instructional programs expense for the culturally different at all levels.


    12510 Communication Disorders. That portion of the cost for the culturally different program identified with the communication disorders.

    12520 Compensatory. That portion of the costs for the additional learning experiences to meet the special education needs of educationally deprived children.


    Learning Disability. Serves as a control account for the applicable subaccounts concerning expenditures for the special instructional programs expense for the learning disabled at all levels


    12610 Learning Disability. That portion of the special instruction programs expense for learning disability which is attributable to the programs established for the learning disability identified as full time.


    Equal Opportunity at Risk. Serves as a control account for the applicable subaccounts concerning expenditures for equal opportunity at risk program expense for the risk at all levels.


    12710 Equal Opportunity at Risk. That portion of the costs for pupils  considered by the school corporation as at risk.


    Special Education Preschool. Serves as a control account for applicable subaccounts concerning expenditures for special education preschool programs at all levels.


    12810 Special Education Preschool. That portion of the cost for program expenses for children of preschool age, participating in the education program.


    12900 Other Special Programs. Serves as a control account for the applicable subaccounts concerning expenditures for the special instructional programs expense of those other special programs not specifically identified herein. Each of these must be identified and appropriately titled in the accounting records.


    Adult/Continuing Education Programs. Instructional activities designed to develop knowledge and skills to meet educational objectives of adults who have completed or interrupted formal schooling.


    13100 Adult Basic Education-Instruction. Serves as an accounting medium or as a control for applicable subaccounts concerning expenditures for the instructional expense of the adult education program.


    13150 Adult Basic Education-Non-Instruction. Serves as an accounting medium or as a control for applicable subaccounts concerning expenditures for the noninstructional expense of the adult education program.


    13200 Advanced Adult Education. Serves as an accounting medium or as a control for applicable subaccounts concerning expenditures for the instructional expense of the advance adult education program.


    13300 Occupational Programs. Serves as an accounting medium or as a control for applicable subaccounts concerning expenditures for the instructional expense of the occupational programs division of the continuing education program.


    13600 Special Interest Programs. Serves as an accounting medium or as a control for applicable subaccounts concerning expenditures for the instructional expense of the special interest program division of the adult/continuing education program.


    13900 Other Adult/Continuing Education Programs. Serves as an accounting medium or as a control for applicable subaccounts concerning expenditures for the instructional expense of those other adult/continuing education programs not specifically identified herein. Each of these must be identified and appropriately titled in the accounting records.

    Summer School Programs. Instructional activities designed to assist regular students in meeting educational objectives for their formal schooling or in additional areas of instruction not included in the curriculum of the regular school programs. These programs are conducted during the summer months following the close of one regular school term and before the beginning of the next regular term.


    14100 Elementary Summer School. Serves  as an accounting medium  or as a control  for applicable subaccounts concerning expenditures for the instructional expense of the summer school program at the elementary level.


    14200 Middle/Junior High Summer School. Serves as an accounting medium or as a control for applicable subaccounts concerning expenditures for the instructional expense of the summer school program at the middle school or junior high  school level.


    14300 High School Summer School.  Serves as an accounting medium or as a control  for applicable subaccounts concerning expenditures for the instructional expense of the summer school program at the high school level.


    Enrichment Programs. Serves as a control account for applicable subaccounts concerning expenditures for enrichment programs.


    15100 Non-Credit Enrichment Programs. That portion of the costs of enrichment programs for all ages of public school students


    Remediation. Serves as a control account for applicable sub accounts concerning expenditures for remediation.


    16100 Remediation Testing. Activities and costs associated with required and approved remediation testing.


    16200 Preventive Remediation. Activities and costs associated with all other remediation.


    Payments to Other Governmental Units Within State. Activities concerned with services requiring payments to other governmental units within Indiana for services rendered to pupils residing in the paying corporation.


    17100 Transfer Tuition. Serves as a control for applicable subaccounts concerned with expenditures to other school corporations within the state of Indiana on account of transfer tuition for resident students.


    17200 Tuition Transfers to Innovation Network Charter Schools. Serves as a control for applicable subaccounts concerned with expenditures to other innovation network charter schools for tuition passed through from the School Corporation.


    17250 Tuition Transfers to Innovation Network Schools. Serves as a control for applicable subaccounts concerned with expenditures to other innovation network schools for tuition passed through from the School Corporation.


    17300 Area Vocational School (Participating Share). Serves as a control for applicable subaccounts concerned with payments to an area vocational school in which the school corporation has a participating interest or has students in attendance. Account for amounts here which do not qualify to be included in 11400 or 11500 program costs.

    17400 Joint Services and Supply – Special Education. Serves as a control for applicable subaccounts concerned with payments to the administering school corporation in respecting joint services and supply agreement with other Indiana public school corporations concerning Special Education.


    17500 Special Education – Interlocal Agreements. Serves as a control for payments to the administering school corporations for interlocal agreements concerning special education.


    17600 Joint Services and Supply – Other. Serves as a control for payments to the administering school corporation for joint service and supply agreements not listed above. (i.e., service centers, etc.).


    17700 Interlocal Agreements – Other. Serves as a control for payments to the administering school corporation for interlocal agreements not listed above (i.e., service centers, etc.).


    17800 Payments to Charter Schools.  Serves as a control for payments to charter schools in accordance with IC 20-24-7.


    17900 Other. Activities related to  non-programed  charges,  not otherwise classified.


    18000 Payments to Governmental Units Outside State. Activities concerned with services requiring payments to governmental units located in other states for services rendered to pupils resident in the paying corporation. There are very few examples of this in Indiana at the present time.


    SUPPORT SERVICES. Support services provide administrative, technical (such as guidance  and health), and logistical support to facilitate and enhance instruction. These services exist as adjuncts for fulfilling the objectives of instruction, community services, and enterprise programs rather than as entities within themselves.


    Support Services - Students. Activities designed to assess and improve the well-being of students and to supplement the teaching process.


    Attendance and Social Work Services. Serves as a control for applicable subaccounts concerned with activities designed to improve student attendance at school and that attempt to prevent or solve student problems involving the home, the school, and the community.


    21110 Service Area Direction-Attendance/Social Work.  Activities  associated with directing and managing the service area concerned with the attendance of pupils at school as required by the Compulsory Education Act.


    21120  Attendance Services.  Activities of attendance officers and assistants  and expenses associated therewith.


    21130 Social Work Services. Activities of those persons identified  with  the social services as related to pupils of the school corporation.


    21140 Pupil Accounting. Activities of acquiring and maintaining records of pupil attendance at school, historical information and census data. Provides such information to assist teacher and guidance personnel.

    21190 Other Attendance and Social Work Services. Those activities associated with attendance services for pupils of the school corporation not specifically classified otherwise, for example parent involvement.


    Guidance Services. Activities involving counseling with students and parents; consulting with other staff members on learning problems; evaluating the abilities of students; assisting students as they make their own educational and career plans and choices; assisting students in personal and social development; providing referral assistance; and working with other staff members in planning and conducting guidance programs for students. Guidance services may include supervision services, counseling services, appraisal services, student record services, and placement services.


    21210 Service Area Direction-Guidance Services. Activities associated with directing and managing guidance services.


    21220 Counseling Services. Activities associated with the relationships between pupils and other persons and to assist pupils to understand their needs, strengths and limitations.


    21230 Appraisal Services. Activities associated with assessment of pupil characteristics for use in guidance, etc., for the pupil.


    21240 Information Services. Activities associated with the dissemination of educational, occupational and personal - social information to help acquaint pupils with curriculum, educational and vocational opportunities and requirements.


    21250 Records Maintenance. Compilation, maintenance and interpretation of cumulative records of individual pupils for support in guidance services to them.


    21290 Other Guidance Services. Activities associated with the guidance program which are not identified separately.


    Health Services. Physical and mental health services that are not direct instruction. Included are activities that provide students with appropriate  medical, dental, and nursing services.


    21310 Service Area Direction-Health Services. Activities associated with  directing and managing the service area concerned with the health services provided for the pupils.


    21320 Medical Services. Activities concerned with the physical and  mental health of pupils; including hearing and vision testing, screening for psychiatric services and communicable diseases, providing emergency injury and illness care, etc.


    21330 Dental Services. Activities associated with dental screening, dental care and orthodontic services provided.


    21340 Nurse Services. Nursing activities which are not instruction; such as health inspection, treatment of minor injuries, and referrals for other health services.


    21390 Other Health Services. Those health services provided but not classified otherwise. Identify and appropriately title accounts used herein.

    Psychological Services. Activities concerned with administering psychological tests and interpreting the results; gathering and interpreting information about student behavior; working with other staff members in planning school programs to meet the special needs of students as indicated by psychological tests and behavioral evaluation; and planning and managing a program of psychological services, including psychological counseling for students, staff,  and  parents. This function includes the supervision of psychological services, related testing and counseling services, and psychotherapy services.


    21410 Service Area Direction-Psychological  Services.  Activities  associated with directing and managing the service area concerned with the psychological services provided for the pupils.


    21420 Psychological Testing. Activities concerned with administering psychological tests, standardized tests and inventory assessments of ability, aptitude, achievement, interest and personality and the interpretation of these measures for pupils, school personnel and parents.


    21430 Psychological Counseling. Activities between psychologist or counselor and pupils or parents to help resolve problems and assist in adjustments for pupils.


    21490 Other Psychological Services.  Those psychological services  provided  but not classified separately.


    Speech, Pathology and Audiology Services. Activities that identify, assess, and treat children with speech, hearing, and language impairments.


    21510 Service Area Direction-Speech Pathology. Activities associated with directing and managing the service area concerned with occupational services provided for pupils.


    21520 Speech Pathology Services. Activities concerned with the identification, diagnosis and appraisal of specific speech and language disorders; also, referral of pupils for professional attention and the counseling and guidance of children, parents and teachers, as appropriate.


    21530 Audiology Services. Activities organized for the identification of children with hearing loss; determination of the degree of loss or difficulty and referral for treatment.


    21590 Other Speech Pathology and Audiology Services.  Activities identified  with the speech pathology and audiology programs but not separately identified herein.


    Occupational Therapy – Related Services. Activities that assess, or treat students for all conditions requiring the services of an occupational therapist.


    21610 Service Area Direction-Occupational Therapy. Expense attached to the office of the director of occupational therapy.


    21620 Occupational Therapy Services. Activities concerned with the identification, diagnosis and appraisal of occupational therapy; also, referral of pupils for professional attention and the counseling and guidance of children, parents and teachers, as appropriate.


    Physical Therapy-Related Services.

    21710 Service Area Direction. Expense attached to the office of the director of physical therapy.


    21720 Physical Therapy Services


    Special Education Administration. Serves as a control for applicable subaccounts concerning expenditures for direction and/or administration of the special education program.


    21810 Service Area Direction-Special Education Administration. Activities associated with managing and directing special education services not otherwise identified.


    21890 Other Special Education Administrations. Activities not separately identified herein.


    Other Support Services-Students. Serves as a control for applicable subaccounts for student services not categorized elsewhere.


    21910 Service Area Direction-Other Support Services.  Activities  associated  with managing and directing other student services not otherwise identified.


    21990 Other Student Services. Activities not separately identified herein.


    Support Services - Instruction. Activities associated with assisting the instructional staff with the content and process of providing learning experiences for students.


    Improvement of Instruction. Activities primarily for assisting instructional staff in planning, developing, and evaluating the process of providing learning experiences for students. These activities include curriculum development, techniques of instruction, child development and understanding, and staff training.


    22110 Service Area Direction-Improvement of Instruction. Activities associated with directing and managing the service area concerned with the improvement of instruction.


    22120 Instruction and Curriculum Development. Activities designed to aid teachers in developing the curriculum, preparing and using special curriculum materials, and understanding and appreciating the various techniques which stimulate and motivate pupils.


    22130 Instructional Staff Training. Activities associated with the professional development and training of instructional personnel. These include such activities as in-service training (including mentor teachers workshops, conferences, demonstrations, and other activities related to the ongoing growth and development instructional personnel.


    22190 Other Improvement of Instructional Services. Activities for improving instruction other than those classified above.


    Library/Media Services. Activities concerned with directing, managing, and supervising educational media services (e.g., supervisory personnel) as well as such activities as selecting, acquiring, preparing, cataloging, and circulating books and other printed materials; planning for the use of the library by students, teachers, and other members of the instructional staff; and guiding individuals in their use of library books, reference guides and materials, catalog materials, special collections, and other materials, whether maintained separately or as a part of an instructional materials center. These activities include developing and acquiring library materials and operating library facilities.

    22210 Service Area Direction Library/Media Services. Activities associated with directing and managing the service area concerned with educational media.


    22220 School Library. Activities such as selecting, acquiring, preparing, cataloging and circulating books and other printed materials, also includes C.D.s and software that replaces books and reference materials; planning the use of the library by staff and students; and, providing guidance in the use of library books and materials. The school library also services the free textbook program with regard to storage, inventory and maintenance of the textbooks.


    22230 Audiovisual. Activities concerned with selecting, preparing, storing and maintaining audiovisual equipment, films, filmstrips, transparencies, tapes and TV programs as well as associated services.


    22240 Educational Television. Activities concerned with planning,  programming, writing and presenting educational programs by way of closed circuit or broadcast television.


    22250 Computer Assisted Instruction Services. Activities concerned with educational projects which have been especially programmed for a computer which is to be used as the principal medium of instruction.


    22290 Other Educational Media Services. Activities associated with  educational media services not separately identified.


    Instruction – Related Technology. This functional category encompasses all technology activities and services for the purpose of supporting instruction. These activities include expenditures for internal technology support as well as support provided by external vendors using operating funds. These activities include costs associated with the administration and supervision of technology personnel, systems planning and analyses, systems application development, systems operations, network support services, hardware maintenance and support services, and other technology-related costs that relate to the support of instructional activities. Specifically, costs associated with the operation and support of computer learning labs, media center computer labs, instructional technology centers, instructional networks, and similar operations should be captured in this code.


    22310 Technology Service Supervision and Administration. Activities  concerned with directing, managing, and supervising data-processing services.


    22320 Student Learning Centers. Activities concerned with supporting and maintaining labs and centers (outside the classroom) that are established to support the instructional environment. These labs and centers may be located in the library or in other locations but are not primarily dedicated to student-teacher learning. Labs or learning centers that are primarily dedicated to instruction should be coded to Instruction.


    22330 Systems Analysis and Planning. Activities concerned with searching for and evaluating alternatives for achieving defined objectives, based on judgment and, wherever possible, on quantitative methods. Where applicable, these activities pertain to the development of data processing procedures or application to electronic data-processing equipment.

    22340 Systems Application Development. Activities concerned with the preparation of a logical sequence of operations to be performed, either manually or electronically, in solving problems or processing data. These activities also involve preparing coded instructions and data for such sequences.


    22350 Systems Operations. Activities concerned with scheduling, maintaining, and producing data. These activities include operating business machines, data preparation devices, and data-processing machines.


    22360 Network Support. Services that support the networks used for instruction-related activities.


    22370 Instructional Computer Hardware, Software, and Support. Activities concerned with purchasing computer hardware, software and support to be used for instructional purposes.


    22380 Professional Development for Instruction - Focused Technology Personnel. Costs that are incurred as a result of acquiring knowledge and skills to support instructional technologies.


    22400   Academic Student Assessment.    This function is inclusive of those services rendered for the academic assessment of the student.


    22900 Other Support Service – Instructional Staff. Services supporting the instructional staff not properly classified elsewhere in the 22000 series.


    Support Services - General Administration. Activities concerned with establishing and administering policy for operating the school corporation.


    Board of Education. Activities of the governing body that has been created according to state law and vested with responsibilities for educational activities in a given administrative unit.


    23110 Service Area Direction-Board of Education. Activities concerned with directing and managing the general operation of the governing board. Include compensation and other expenditures directly related to board members.


    23120 Service Area Assistants. Activities pertaining to the duties of the corporation board's secretary as well as other assistants directly related to this service area.


    23150 Legal Services. Activities pertaining to legal services and counseling provided to the governing body of the local school corporation.


    23160 Promotion Expense. Account here for expenditures created by authority provided in the General School Powers Act (IC 20-26-5-4) to appropriate from the Operations Fund an amount not to exceed the greater of $3,000 or $1.00 per pupil not to exceed $12,500 per budget year, for the purpose of promoting the best interests of the school corporation by purchasing meals, decorations, memorabilia or awards; expenses incurred in interviewing job applicants; or, developing relations with other governmental units.


    23190 Other Governing Body Services. Those activities of the governing body which are not specifically classified otherwise.


    Executive Administration Services. Activities associated with the overall general administration of or executive responsibility for the entire school corporation.

    23210 Office of the Superintendent. Activities performed by the superintendent and associate or assistant superintendents concerning the general direction and management of the school corporation. This program area includes all personnel and materials in the office of the superintendent of schools except for those which can be properly placed in a separate service area.


    23220 Community Relations. Activities and programs developed and operated corporation wide for betterment of school/community relations.


    23230 Staff Relations and Negotiations. Activities concerned with staff relations for the school corporation and the responsibilities for contractual negotiations with both instructional and non-instructional personnel.


    23290 Other Executive Administration Services. Activities concerned with this category not specifically classified otherwise.


    Support Services - School Administration. Activities concerned with overall administrative responsibility for a school.


    24100 Office of the Principal Services. Serves as a control for applicable subaccounts concerned with directing and managing the administration of a particular school in the corporation. Included are the activities performed by the principal, assistant principals and other assistants in general supervision of all operations of the school.


    24900 Other Support Services - School Administration. Those activities associated with administration of the individual schools not included in the office of the principal services.


    Central Services. Activities that support other administrative and instructional functions including fiscal services, human resources, planning, and administrative information technology.


    Fiscal Services. Activities concerned with the fiscal operations of the school corporation. This function includes budgeting, receiving and disbursing, financial  and property accounting, payroll, inventory control, internal auditing, and funds managing. Fiscal services are inclusive of supervision of fiscal services, budget- ing services, and payroll, internal audit, and general accounting functions.


    25110 Office of the Business Manager. Those activities concerned with the  office of the business manager, associate superintendent, assistant superintendent for business affairs or other official designated to manage the business office of the school corporation.


    25120 Service Area Direction-Fiscal Services. Activities pertaining to directing and managing the area of internal services.


    25130 Budgeting. Activities concerned with supervising budget planning, formulation, control and analysis.


    25140 Receiving and Distributing Funds. Activities concerned with receiving revenues, preparing official receipts, and disbursing the funds for items authorized by the local governing body in accordance with state statutes. This includes the current audit of receipts and pre-audit of requisitions or purchase orders to determine whether or not the amounts are within the budgetary allowances.

    25150 Payroll Services. Activities concerned with the preparation of  payrolls  and the distribution of same to employees of the school corporation as well as maintaining clearing accounts for payroll deductions, reporting and transmitting such deductions to the proper agencies or companies.


    25160 Financial Accounting. Activities concerned  with maintaining records  of the financial operations and transactions of the school corporations. These include such activities as accounting and interpreting financial transactions and account records.


    25170 Internal Auditing. Activities concerned with preparing and maintaining current inventory records of land, buildings and moveable equipment,


    25180 Property Accounting. Activities concerned with preparing and maintaining current inventory records of land, buildings and moveable equipment.


    Other Fiscal Services. Serves as a control for applicable subaccounts concerned with fiscal service activities not specifically classified otherwise.


    25191 Refund of Revenue. Account here for  refunds  of  revenue received earlier, but now requiring refund to person or unit from which received.


    25192 Petty Cash. When petty cash amounts are disbursed to establish a Petty Cash Fund from the Operations Fund, records here.


    25193 Printed Forms. To account for the cost of printed forms that are not directly associated with specific program area or closely enough associated to be considered a part of that program's expense.


    25195 Bank Account Service Charge. Bank service charge authorized by statute for handling negotiable order of withdrawal accounts.


    25196 Cash Change. When cash change payments are established for applicable funds, record here.


    25199 Other. Activities for other fiscal services not otherwise classified.


    Purchasing, Warehousing, and Distribution Services. Activities concerned with purchasing, receiving, storing, and distributing supplies, furniture, equipment, and materials used in schools or school system operations.


    25210 Service Area Direction-Purchasing, Warehousing, and Distribution Services. Activities pertaining to directing and managing the area of internal services.


    25220 Purchasing. Activities concerned with purchasing supplies, furniture, equipment and materials for the internal services (Central Stores) program.


    25230 Warehousing and Distributing. Activities concerned with the operation of the corporation wide program of receiving, warehousing and distributing supplies, furniture, equipment, materials and mail. If a pick-up and transport service for cash is provided between schools and the central administration office or bank it should be included here.

    25300 Printing, Publishing, and Duplicating Services. Activities of printing and publishing administrative publications such as annual reports, school directories, and manuals. Activities here also include centralized services for duplicating school materials and instruments such as school bulletins, newsletters, and notices.


    25400 Planning, Research, Development and Evaluation. Serves as a control for applicable subaccounts concerning activities on a corporation wide basis associated with conducting and managing programs of planning, research, development and evaluation for the school corporation.


    Curricular Materials for Rent or Resale. Serve as a control for applicable subaccounts concerned with providing curricular materials for rent for sale to pupils. Expenditures for curricular materials for resale may be handled through the Education Fund. The textbook rental program may be handled through the school corporation's Curricular Materials Rental Fund or, if no purchases or financial commitments are made by the corporations, the governing body may cause the rental program to be operated through the extracurricular account or accounts as provided in IC 20-26-5. If operated through the extracurricular account, all disbursement of the curricular material rental program shall be recorded in a Curricular Material Rental Fund in the Extracurricular Account records.

    25510   Direction of Rental Service-Curricular Materials for Rent or Resale. Activities pertaining to directing and managing the curricular material rental program.


    25520   Curricular Materials, Workbooks, and Repairs. Activities concerned with the purchases of curricular materials and workbooks that accompany, and repair of curricular materials for the rental program and keeping them available for service in the rental program.


    25525   Computers Purchased in Lieu of Curricular Materials. Activities concerned with replacing textbooks with computer hardware (1:1 program).


    25530   Distribution of Curricular Materials Reimbursement. Amounts received from the State for distribution to individual school buildings.


    25540   Other Curricular Materials Rental Service. Activities concerned with the curricular materials rental program not included in a specific classification. Identify and appropriately title accounts used herein.


    25550   Direction of Resale Service. Activities pertaining to directing and managing the curricular materials resale program.


    25560   Curricular Materials and Workbooks-Resale. Activities concerned with the purchase of educational materials and supplies for resale to pupils.


    25570   Materials and Supplies-Resales.  Activities concerned with the purchases of educational materials and supplies for resale to pupils.


    25590   Other Curricular Materials Resale Services.  Activities concerned with the curricular materials resale program not included in a specific classification. Identify and appropriately title accounts used herein.


    25600   Public   Information Services. Activities concerned with writing, editing, and other preparation necessary to disseminate educational and administrative information to students, staff, managers, and the general public through direct mailing, the various news media, email, the Internet and web sites, and personal contact.  The information services function code includes related supervision and internal and public information services.


    Personnel Services. Serves as a control for applicable subaccounts for activities concerned with maintaining an efficient staff for the school corporation including such activities as employment and placement, staff transfers, and staff accounting.


    25710 Supervision of Personnel Services. Activities pertaining to directing and managing the area of staff services.


    25720 Recruitment and Placement. Activities concerned with employing and assigning personnel for the school corporation.


    25730 Personnel Services. Serves as a control for applicable subaccounts for activities concerned with maintaining an efficient staff for the school corporation including such activities as employment and placement, staff transfers, and staff accounting.


    25740 Non-instructional Personnel Training. Activities developed by the local school corporation for training of non-instructional personnel in all classifications.


    25750 Health Services. Activities concerned with medical, and nurse services provided on school grounds for school corporation employees.


    25790 Other Professional Services. Other personnel activities not otherwise classified.


    Administrative Technology Services. Activities concerned with supporting the school corporation's information technology systems, including supporting administrative networks, maintaining administrative information systems, and processing data for administrative and managerial purposes. These activities include expenditures for internal technology support, as well as support provided by external vendors using operating funds. These activities include costs associated with the administration and supervision of technology personnel, systems planning and analysis, systems application development, systems operations, network support services, hardware maintenance and support services, and other technology-related administrative cost.


    25810 Technology Service Supervision and Administration. Activities  concerned with directing, managing, and supervising data processing services.


    25820 Systems Analysis and Planning. Activities concerned with searching for and evaluating alternatives for achieving defined objectives, based on judgment and, where possible, on quantitative methods. Where applicable, these activities pertain to the development of data processing procedures or application to electronic data-processing equipment.


    25830 Systems Application Development. Activities concerned with the preparation of a logical sequence of operations to be performed, either manually or electronically, in solving problems or processing data.  These activities also involve preparing coded instructions and data for such sequences.

    25840 Systems Operations. Activities concerned with scheduling, maintaining, and producing data. These activities include operating business machines, data preparation devices, and data-processing machines.


    25850 Network Support. Services that support the networks.


    25860 Operational Computer Hardware, Software, and Support. Activities concerned with purchasing computer hardware, software and support to be used for administrative purposes.


    25870 Professional Development for Instruction-Focused Technology Personnel. Costs that are incurred as a result of acquiring knowledge and skills to support technologies.


    25890 Other Technology Services. Activities concerned  with data processing not described above.


    Other Support Services – Central Services. Activities, other than general administration, which support each of the other instructional and supporting services programs.


    25910 Judgments. Activities concerned with payments associated with judgments against the school corporation as a result of court decisions and formal administrative adjudications which are not covered by liability or other insurance.


    25920 Ditch Assessments. Record of county assessments required to be paid  by school corporation.


    25930 Easements. Record of fees required for easements necessary to school property.


    25940 Settlements. Record payments of settlements advised in writing by the school corporation attorney.


    25950 Other Assessments.


    25990 Other Support Services Central. Activities include but are not limited to health insurance payments for retirees.


    Operation and Maintenance of Plant Services. Activities concerned with keeping the physical plant open, comfortable, and safe for use and with keeping the grounds, buildings, and equipment in effective working condition and state of repair. These include the activities of maintaining safety in buildings, on the grounds, and in the vicinity of schools.


    26100 Service Area Direction-Operation and Maintenance of  Plant Services.  Activities of directing and managing the operation and maintenance of the school plant facilities.


    26200 Maintenance of Buildings. Activities concerned from the Operations Fund with keeping the physical plant clean and ready for daily use. Operating the heating, lighting and ventilating systems and repair and replacement of facilities and equipment are included. Rent of buildings are included.


    26300 Maintenance of Grounds. Activities concerned with the care and upkeep of land and its improvements, other than buildings.


    26400 Maintenance of Equipment. Activities concerned with the care and upkeep of equipment owned or used by the school corporation. Activities such as servicing equipment repairing furniture, machines and moveable equipment are included.

    26500 Vehicle Maintenance (not buses). Activities concerned with maintaining general purpose vehicles such as trucks, tractors graders and staff vehicles in operating condition.


    26600 Security Services. Activities concerned with maintaining order and safety  in school buildings and on school grounds and providing traffic control on school property. Protection from vandalism, arson, etc. are included here.


    26700 Insurance. Activities concerned with insurance coverage other than for buses or insurance identified with a specific program area.


    26800 Other Operation and Maintenance of Plant. Activities concerned with operation and maintenance of the school plant which are not specifically classified otherwise. Identify and appropriately title accounts used herein.


    Student Transportation. Activities concerned with conveying students to and from school, as provided by state and federal law. This includes trips between home and school and trips to school activities. The Transportation Director should be coded here.


    27010 Service Area Direction-Student Transportation. Activities pertaining to directing and managing the department concerned with transporting pupils to and from school.


    27100 Vehicle Operation. Activities concerned with operating corporation owned buses for transporting pupils to and from school. Includes cost of providing drivers to operate the buses.


    27200  Monitoring Services.  Activities concerned with supervising pupils in the process of being transported to and from school. These activities include supervision while in transit and while being loaded and unloaded. Superintendent and Principal salaries are not intended to be included here.


    27300 Vehicle Servicing and Maintenance. Activities concerned with maintaining pupil transportation vehicles in good condition, including repairing vehicles; replacing vehicle parts; cleaning, painting, greasing, fueling and inspecting vehicles for safety.


    27400 Purchase of School Buses. Activities concerned with the purchase of buses for pupil transportation.


    27500 Insurance on Buses. Activities concerned with the providing of insurance coverage for pupils transportation equipment.


    27600 Insurance on Pupils. Activities concerned with providing insurance coverage for pupils while being transported to and from school as authorized by the school transportation code.


    27700 Contracted Transportation Services. Activities concerned with providing pupil transportation to and from school by way of contracts with school bus drivers owning all or part of their transportation equipment. Also, contracts with common carriers to assist in the transporting of pupils to and from school.


    27900 Other Student Transportation Services. Activities identified with pupil transportation services not specifically classified otherwise.


    27910 Bus Driver Training. Expense of paying compensation and other expenses of new drivers in required state training program.

    Operation of Non-instructional Services. Activities which are not directly related to the provision of education for pupils in the school corporation.


    Food Services Operations. Activities concerned with providing food to students and staff in a school or school district. This service area includes preparing and serving regular and incidental meals, lunches, or snacks in connection with school activities and food delivery.


    31100 Service Area Direction-Food Service Operations. Activities pertaining to directing and managing the food service program for the school corporation.


    31200 Food Preparation and Dispensing. Activities concerned with preparing  and serving the food and beverages associated with the food service program. This includes operating kitchen equipment, preparing food, cooking, serving food, cleaning and storing dishes and kitchen and lunch room equipment.


    31300 Food Delivery. Activities concerned with delivering food to schools within the corporation when a satellite or other program requiring food delivery is maintained in the school corporation.


    31400 Food Purchases. Activities concerned with the acquisition of food and food products to be used in the School Lunch Program.


    31500 Distribution of School Lunch Reimbursement. Amounts received through the  State for distribution to individual school buildings.


    31900 Other Food Services. Serves as a control for applicable subaccounts concerned with food service activities not specifically classified herein.


    Community Service Operations. Activities concerned with providing services to the community. Examples of this function would be offering parental training or operating a community swimming pool, a recreation program for the elderly, or a child care center for working parents.


    33100 Direction of Community Services. Activities concerned with directing and managing community service programs.


    33200 Community Recreation. Activities concerned with providing community recreation programs. These may include community recreation programs identified in the statute as educational activities when school is not in session.  Some of  these activities are identified as agricultural club work industrial club work, home economics club work, music activities and summer recreational athletic programs.


    33300 Civic Service. Activities concerned with providing authorized services to civic functions or organizations. This program area includes services to parent teacher groups and other local civic activities for which the school corporation may provide facilities or similar assistance.


    33400 Athletic Coaches. All amounts to be recorded for payment of athletic coaches. Include amounts paid laymen coaches and all other amounts paid athletic coaches (only athletic coaches) from the corporation Education Fund, whether or not they are licensed teachers.


    33500  Welfare Activities Services.  Activities concerned with providing assistance for  the personal requirements of individuals for whom a need is determined. This includes aid to students in meeting the provisions of the compulsory education law.

    33600 Nonpublic School Pupil Services. Activities concerned with services to pupils attending a school other than the public school. Under present statutes, this may include items in the area of transportation and curricular materials.


    Other Community Services. Activities concerned with services provided the community which are not included a specific program area. Identify and appropriately title accounts used herein.


    33910   Noncurricular Activities Support - Amounts appropriated to match amounts collected by school patrons to support noncurricular activities. This would include items for extracurricular activities such as music and athletics. Examples include high school band uniforms, payments to athletic officials, etc...


    33920   Contributions to Historical Societies. Permissible appropriation for contribution to local historical society.


    33921   Contributions to Art Associations. Permissible appropriation for contribution to local art associations


    33925   Public Playground. Activities and expenses concerned with providing a playground for the general public.


    33930   Latch Key Kid Program. Activities concerned with services for this type of child care program. Also applies to Early Childhood, Preschool and Latch Key programs in accordance with IC 20-20-28.


    33940   Child Care Services. Cost incurred for child care services associated with adult education programs and other child care programs.


    33950   Step Ahead. Cost incurred for the Step Ahead Program in accordance with IC 12-17-19.


    33990   Other. Activities not otherwise categorized.


    Facilities Acquisition and Construction. Serves as a control for applicable subaccounts concerned with activities associated with the acquisition of land and buildings; the construction and/or remodeling of buildings and additions to buildings; initial installation or extension of service systems and other built-in equipment; also, improvements to sites. All as deemed necessary for school purposes.


    40100 Service Area Direction-Facilities Acquisition and Construction.  Activities pertaining to directing and managing the area of facilities acquisition and construction services.


    41000 Land Acquisition and Development. Activities pertaining to the initial acquisition of sites and site improvement.


    43000 Professional Services. Services of architects, engineers, attorneys and fiscal consultants related to land acquisition, site improvement and improvements to buildings. Could include payments to professionals to conduct non-recurring in-service technology training of school corporation employees in accordance with IC 20-40-18-6.


    44000 Educational Specifications Development. Activities of educators relative to space requirements for various learning experiences of pupils to be incorporated in the building design and the transmittal to the architect of information produced by such activities.


    Building Acquisition, Construction and Improvement. Activities concerned with building acquisition through purchase or construction; also, improvements to existing buildings and initial installation or extension of service systems and other build-in equipment as well as building additions, alterations and remodeling.

    45100 Building Acquisition, construction and Improvements. Activities concerned with building acquisition through purchase or construction; also, improvements to existing buildings and initial installation or extension of service systems and other build-in equipment as well as building additions, alterations and remodeling.


    45200 Energy Savings Contracts. Payments for energy savings contracts.


    45300 Skilled Craft Employees. Statutory authorized payments for skilled craft employees.


    45400 Sports Facilities. Expenditures for school sport facilities in accordance with IC 20-40-18-7.


    46000 Purchase of Moveable Equipment. To account for school corporation's expense of purchasing equipment not charged to a specific program or acquisition contract otherwise recorded.


    47000 Purchase of Mobile or Fixed Equipment. To account for purchases of mobile or fixed equipment.


    49000 Other Facilities Acquisition and Construction. Serves as a control for accounts  concerned with the acquisition and construction of facilities not specifically classified other- wise.


    DEBT SERVICES. Activities concerned with the repayment of loans and payment of other items included in the definition of indebtedness or of debt service obligations.


    Principal on Debt. Activities concerned with redemption of the principal of an indebtedness.


    51100 Bonds-Principal. Repayment of the amount borrowed by way of bonds.


    51200 Temporary Loans-Principal. Repayment of the amount borrowed by way of a temporary loan.


    51300 Emergency Loans-Principal. Repayment of the amount borrowed by way of the emergency loan procedure.


    51400 School Bus Loans-Principal. Activities concerned with the repayment of the principal amount of loans for the purchase of school buses.


    51500  Bond Anticipation Notes-Principal.  Repayment of the amount borrowed by way  of the bond anticipation loan procedure.


    51600 Bank Loans or Other Department of Local Government Finance Approved Debt- Principal. Repayment of principal on amounts borrowed for which unusual circumstances exist and the debt has been approved by the Department of Local Government Finance or in accordance with other statutory provisions.


    Interest on Debt. Activities concerned with the payment of interest charges on indebtedness items.


    52100   Bonds-Interest. Interest paid or coupons redeemed on bonds (including paying agent fees).


    52200   Temporary Loans-Interest. Interest charges on temporary loans.


    52300   Emergency Loans-Interest. Interest charges on emergency loans.

    52400 School Bus Loans-Interest. Interest paid on loans negotiated at a bank for the purchase of equipment to transport children to and from school.


    52500 Bond Anticipation Loans-Interest. Interest charges on bond anticipation loans.


    52600  Other Department of  Local Government Finance Approved Debt-Interest. 


    Repayment  of  interest of  amounts  borrowed for which unusual circumstances exist and the debt has been approved by the Department of Local Government Finance or in accordance with other statutory provisions.


    Lease Rental. Expenditures for payments on lease rental agreements with public or private holding companies, religious organizations, and with certain vendors.


    53100   Buildings-Principal. Principal payments for lease rental agreements involving buildings.


    53150   Buildings-Interest. Interest payments for lease rental agreements involving buildings.


    53200   Equipment-Principal. Principal payments for lease rental agreements with option to purchase for all types of equipment except pupil transportation equipment.


    53250   Equipment-Interest. Interest payments for lease rental agreements with option to purchase for all types of equipment except pupil transportation equipment.


    53300   School Buses-Principal. Principal payments for replacement of school buses through lease rentals.


    53350   School Buses-Interest. Interest payments for replacement of school buses through lease rentals.


    53400   Other-Principal. Principal payments not otherwise classified.


    53450   Other-Interest. Interest payments not otherwise classified.


    Advancements and Obligations. Activities concerned with the repayment of advancements or obligations.


    54100 Veterans' Memorial Fund-Principal. Activities concerned with reimbursing the school corporation's Education Fund from its Debt Service Fund for principal amounts withheld from state support for the purpose of repaying the state for advancements from the Indiana Veterans' Memorial Fund for school construction.


    54150 Veterans' Memorial Fund-Interest. Activities concerned with reimbursing the school corporation's Education Fund from its Debt Service Fund for interest amounts withheld from state support for the purpose of repaying the state for advancements from the Indiana Veterans' Memorial Fund for school construction.


    54200 Common School Fund-Principal. Activities concerned  with  reimbursing  the school corporation's Education Fund from its Debt Service Fund for principal amounts withheld from state support distributions to the school corporation's Education Fund for the purpose of repaying the state for advancements from the Indiana Common School Fund. Includes construction and computer consortium advancements.


    54250 Common School Fund-Interest. Activities concerned with reimbursing the school corporation's Education Fund from its Debt Service Fund for interest amounts withheld from state support distributions to the school corporation's Education 

    Fund for the purpose of repaying the state for advancements from the Indiana Common School Fund. Includes construction and computer consortium advancements.

    54300 Civil Aid Bond Obligations-Principal. Activities concerned with principal repayment of civil aid bond obligations of the civil unit issued for school construction but assumed by the school corporation through reorganization.


    54350 Civil Aid Bond Obligations-Interest. Activities concerned with interest repayment  of civil aid bond obligations of the civil unit issued for school construction but assumed by the school corporation through reorganization.


    Other Debt Service Obligations. Activities concerned with the payment of debt service obligations which are not specifically included elsewhere. Identify and appropriately title any accounts used in this classification.


    59100 Registrars Fees. Expense attached to bond issue and its redemption, by the law requiring registration of bonds.


    59200 Bank Fee. Expenses to participate in the Bond Bank which would otherwise be considered interest.


    Non-programed Charges. Activities concerned with payments of a non-programmed nature which are not otherwise classified herein. Identify and appropriately title any accounts used in this classification.


    60100 Transfers From One Fund to Another. All transfers for one fund to another fund,  as detailed under Receipt Account No. 5200. The disbursements posted to this account (60100) should agree with receipts posted to account No, 5200. Also include Debt Service TBR Transfer Authorized by IC 20-40-9.


    60115 Transfers out as Fiscal Agent. All transfers of funds to units when the transferred funds were being held by the school as the fiscal agent. Can be used for transfers to Extra Curricular Accounts.


    60120 Expenditures for Refund of Revenue Erroneously Received.


    60150 Donations to Foundations in Accordance with IC 20-47-1.  Donations authorized by statute to foundations in accordance with statute.


    60200 Loans From One Fund to Another. Advancements or transfers from a fund with a sufficient balance to a fund with a depleted balance, per IC 36-1-8-4, instead of negotiating a temporary loan with a bank. Such loans or  transfers must  be repaid to the fund from which advanced during the calendar year of such advancement.


    60300 Securities Purchased. Payment for securities purchased and other investments.

    60400 FICA Transfers – Co-ops. Social security transfers for co-ops only.


    60600 Indirect Costs. Amounts authorized for payment to the Operations Fund of the school corporation, per approved rate, to reimburse for certain grant administrative costs.


    60700 Scholarships. Amounts for designated scholarships.

    60800 Self-Insurance. Amounts paid from Self-Insurance Fund only. Amounts must be expensed from applicable expenditure accounts, e.g. instruction regular programs, etc., and receipted into Self-Insurance Fund (1100), Receipt account 1971.

    60900   Withholdings.  Disbursements for payroll withholdings, employee benefits and other clearing accounts.

    To view the matrix of expenditure accounts click here.

  • Classification and Definition of Clearing Accounts

    CLASSIFICATION OF CLEARING ACCOUNTS

    The clearing account codes listed in this chapter are part of an all-encompassing list that is applicable to the various types of schools in the state of Indiana. Charter schools will need to determine the applicability of each clearing account code per Indiana Code and guidelines from state agencies

    In an accounting system maintained on a cash basis, it becomes necessary to establish certain ledger accounts to provide an accounting control of money which has been disbursed from the fund in which it was initially receipted but which is still property of the school corporation.  If the money was disbursed for the purchase of an asset of another nature, such as an investment, or placed in the custody of a trust or special disbursing officer as in the case of a petty cash fund, it must be accounted for in a manner which will separate it from its original fund as cash but not to permit
    it to lose its identity as an asset of the school corporation.

    There are also instances in which the school corporation serves as a trust officer and must maintain control of certain items of cash which are not available to the school corporation to disburse for current operating purposes but which must be transmitted to a payee for a designated purpose at a later date to fulfill a liability of such trust.  Examples of these are payroll deduction accounts.  To provide accounts for controlling these items without disrupting the single entry cash accounting of the system, the clearing accounts were established.

    DEFINITION OF CLEARING ACCOUNTS

    Clearing Accounts serve as control accounts for certain areas of the accounting system. Therefore, they must be supported by receipt and disbursement entries in the general ledger and sub­sidiary ledgers or other supporting records.  The clearing accounts are subsidiary records only and should not be used in lieu of proper and prescribed reporting of receipts, disbursements and balances of funds of the school corporation in accordance IC 5-11-1-2.  The accounts are defined within each classification de­pendent on the purpose they serve.  These purposes are detailed herein and include Petty Cash, Cash Change Investments, Prepaid Food, and Payroll Deductions.

    The necessary account titles are shown in the clearing account section of the master chart of accounts on the following pages.

    MASTER CHART OF ACCOUNTS

    CLEARING ACCOUNTS

    Trust Accounts

    8000-8099  Petty Cash Funds

    8100-8199  Cash Change Funds

    8400           Prepaid School Lunch Account Fund

    8401-8499  Unassigned Trust Funds

    8500-8599  Investment Funds

    8600-8999  Unassigned Trust Funds

    Clearing Accounts

    9000-9499  Payroll Withholdings Funds

    9500-9999  Other Clearing Funds

    DESCRIPTION AND ACCOUNTING FOR CLEARING ACCOUNTS

    The basic accounting procedure provides for maintaining clearing accounts on prescribed Form No. 508, following the ledger of receipts, as memorandum accounts to provide control of assets acquired through the reduction of other assets in the fund ledger and to control the liabilities incurred through
    payroll deductions.

    The following discussion is a brief explanation of each of these accounts and an outline of the procedure for maintaining each.

    TRUST ACCOUNTS

    Accounts in the 8000 series are those accounts in which are recorded the activities produced by holding one asset of the school corporation for another purpose, the value of which will eventually be returned to the fund from which it was exchanged.

    8000-8099  Petty Cash Funds.  The use of a Petty Cash Fund is authorized for the purpose of paying small or emergency expenses of an administrative or operating nature.  An appro­priation must be available before establishing a Petty Cash Fund.

    8100-8199  Cash Change Funds.  The use of a Cash Change Fund is authorized for the purpose of making change during events where any officer or employee of the corporation is charged with the duty of collecting fees or other cash revenues.

    8200-8399  Unassigned Trust Funds.

    8400           Prepaid School Lunch Account Fund.  The use of a Prepaid School Lunch Fund is to be used when the school corporation accepts money on behalf of a student or staff to be placed on deposit for later use in purchasing items from
    the school food service program.

    8401-8499  Unassigned Trust Funds.

    8500-8599  Investments.  This clearing account must be maintained if investments are made from any fund of the school corporation.  It is a control of amounts invested from all of the funds of the school corporation and any balance in it must be supported by sufficient
    pages of prescribed Form No. 350 to show the amount invested from each individual fund.

    8600-8999  Unassigned Trust Funds.

    CLEARING ACCOUNTS

    Accounts in the 9000 series are those accounts in which transac­tions provide disbursements for current operating purposes but at the same time create a liability to the school corporation.  The liability is released when remittances are made to the proper authority.

    9000-9499  Payroll Withholdings Funds.  The accounts provide a control record for the payroll deductions with which all school corporations are concerned during the time they are a liability to the school corporation; that is, from the time they are deducted from the employees' wages until they are transmitted to the proper payee for the purpose withheld.  In connection with this it should be noted that total salaries, including deductions, are recorded in the expenditure accounts for salaries and carried to the proper program and fund accounts but that only the net payroll is recorded as a disbursement from the All Funds-Control account.  Thus, when the deductions are transmitted to the payee, they must be disbursed from the Clearing Account concerned and from the All Funds-Control account.

    Posting to all payroll deduction accounts should be made from the totals of duplicate payroll checks (check register) with one posting entry to each account for each payroll writing.

    9500-9999  Unassigned Clearing Funds

  • Classification and Definition of Object Accounts

    CLASSIFICATION AND DEFINITION OF OBJECT ACCOUNTS

    The object codes listed in this chapter are part of an all-encompassing list that is applicable to the various types of schools in the state of Indiana. Charter schools will need to determine the applicability of each object code per Indiana Code and guidelines from state agencies

    CLASSIFICATION OF OBJECT ACCOUNTS

    For the purposes of the manual and the prescribed accounting system for Indiana's public schools, the Object Accounts are separated into categories dependent upon their function or general purpose.  They are identified by numerical designations related as closely as possible to those used in Financial Accounting for Local and State School Systems, Revised.  Some classifications, as presented in Financial Accounting for Local and State School Systems, Revised, have been tailored to meet the special needs of Indiana, with respect to Indiana laws and state reporting requirements.

    DEFINITION OF OBJECT ACCOUNTS

    The objects are defined within each classification or program by the specific purpose which they served.  These are identified by account titles basically comparable to those in Financial Accounting for Local and State School Systems, Revised, excepting those instances where greater detail is required because of Indiana laws or state reporting requirements.

    ACCOUNTING FOR OBJECTS

    Each expenditure transaction should be identified with the object category concerned.  The following part identifies and describes each of the object classifications which you will be asked to summarize for reporting to the Department of Education.

    OBJECTS

    OBJECT means the service or commodity obtained as the result of a specific expenditure.  Object categories are identified and described in the manual.  Following are definitions of the major categories and subcategories.

    Personal Services - Salaries.  Amounts paid to both permanent and temporary school corporation employees, including personnel substituting for those in permanent positions. This includes gross salary for personal services rendered while on the payroll of the school corporation.

    110       Salaries of Teachers.  An individual licensed under IC 20-28-5 who has entered into a regular teacher’s contract under IC 20-28-6-5 with a school corporation and whose primary responsibility is the instruction of students. An individual’s primary responsibility is the instruction of students if the individual provides instruction to students in a classroom setting for at least fifty percent (50%) of the individual’s workday. The individual’s workday is the number of hours the individual is expected to work each day under the terms of the individual’s contract with the school corporation. This applies to full-time teachers.

    111    Salaries of Temporary Teachers.  An individual licensed under IC 20-28-5 who has entered into a temporary teacher’s contract under IC 20-28-6-6(a)(1) with a school corporation and whose primary responsibility is the instruction of students. An individual’s primary responsibility is the instruction of students if the individual provides instruction to students in a classroom setting for at least fifty percent (50%) of the individual’s workday. The individual’s workday is the number of hours the individual is expected to work each day under the terms of the individual’s contract with the school corporation. This applies to full-time teachers.

    114       Salaries of Instructional Aides and Assistants. Amounts paid to instructional employees of the school corporation who are classified as noncertified. These employees are not required to be certified as teachers by the Indiana Department of Education. Included here are the salaries of teacher aids, aids to librarians, etc.

    116        Salaries of Long-term Substitute Teachers, Non-certified.  Full-time, part-time, and prorated portions of the costs for work performed by employees of the school district who are hired on a long-term substitute basis (more than fifteen consecutive school days) and are not certified as teachers by the Indiana Department of Education.

    117       Salaries of Substitute Teachers, Certified.  Full-time, part-time, and prorated portions of the costs for work performed by employees of the school district who are hired on a substitute basis and are certified as teachers by the Indiana Department of Education.

    118       Salaries of Substitute Teachers, Non-certified. Full-time, part-time, and prorated portions of the costs for work performed by employees of the school district who are hired on a substitute basis and are not certified as teachers by the Indiana Department of Education.

    119    Salaries of Long-term Substitute Teachers, Certified.  Full-time, part-time, and prorated portions of the costs for work performed by employees of the school district who are hired on a long-term substitute basis (more than fifteen consecutive school days) and are certified as teachers by the Indiana Department of Education.

    Board Members.  Compensation paid to persons for serving as members of the governing body; does not include expenses or fringe benefits.

    120       Salaries of Other Noncertified Staff.  Amounts paid to employees of the school corporation who are classified as noncertified. These employees are not required to be certified as teachers by the Indiana Department of Education. Included here are the salaries of custodians, maintenance personnel, mechanics, bus drivers, secretaries, clerks, etc.

    121       Salaries of Other Certified Staff. Certified staff who do not meet the definitions in objects 110 through 120. Amounts paid to employees who are required to be certified by the Professional Standards Board in order to engage in a contractual agreement with the school corporation. Administrative staff and instructional staff salaries are recorded here.

    125        Terminal Leave. Any payment made to the employee when the employee retires or terminates employment. An example of this would be unused vacation time paid to the employee after the employee has left the school corporation

    Temporary Salaries.  Full-time, part-time, and prorated portions of the costs for work performed by employees of the school corporation who are hired on a temporary or substitute basis to perform work in positions of either temporary or permanent nature. Substitute teachers are accounted for here. Certified and non-certified temporary salaries are classified here. Teachers on temporary contracts are recorded in Certified Salaries (110). Temporary Salaries will not be required for separate state reporting.

    130        Temporary Salaries. Full-time, part-time, and prorated portions of the costs for work performed by employees of the school corporation who are not teachers and are hired on a temporary basis.

    131        Stipend. A fixed sum of money paid periodically for services or to defray expenses. Payment of stipends is made according to the policies of the governing entity.

    135        Licensed Employees.

    136        Non-licensed Employees.

    140        Overtime Salaries.  Money paid to employees of the school corporation in positions of either a temporary or permanent nature for work performed in addition to the normal work period for which the employee is compensated under non-certified and temporary salaries above. The terms of such payment for overtime are a matter of local regulation and interpretation.

    141       Additional Compensation Awarded to a Majority of Teachers. Fixed sum paid as a salary through the compensation plan or an amount awarded to the majority of teachers as defined in object 110. Excludes amounts paid to a teacher for extracurricular activities, ancillary duties, attendance awards, etc.

    142       Additional Compensation Awarded to a Majority of Temporary Teachers. Fixed sum paid as a salary through the compensation plan or an amount awarded to the majority of temporary teachers as defined in object 111. Excludes amounts paid to a teacher for extracurricular activities, ancillary duties, attendance awards, etc.

    143       Additional Compensation Awarded to a Majority of Part-time Teachers. Fixed sum paid as a salary through the compensation plan or an amount awarded to the majority of part-time teachers as defined in object 112. Excludes amounts paid to a teacher for extracurricular activities, ancillary duties, attendance awards, etc.

    144       Additional Compensation Paid to Teachers. Additional compensation such as bonuses, other stipends, or incentives received by teachers as defined in object 110 on an individual basis.

    145       Additional Compensation Paid to Temporary Teachers. Additional compensation such as bonuses, other stipends, or incentives received by temporary teachers as defined in object 111 on an individual basis.

    146       Additional Compensation Paid to Part-time Teachers. Additional compensation such as bonuses, other stipends, or incentives received by part-time teachers as defined in object 112 on an individual basis.

    147       Additional Compensation Paid to Instructional Aides and Assistants. Additional compensation such as bonuses, other stipends, or incentives received by instructional aids and assistants.

    148    Additional Compensation Paid to Substitute Teachers. Additional compensation such as bonuses, other stipends, or incentives received by substitute teachers.

    149       Additional Compensation Paid to Other Certified Staff. Additional compensation such as bonuses, other stipends, or incentives received by other certified staff.

    150       Additional Compensation Paid to Other Non-certified Staff. Additional compensation such as bonuses, other stipends, or incentives received by other noncertified staff.

    Personal Services - Employee Benefits.  Employee Benefits. Amounts paid by the school corporation on behalf of employees (amounts not included in gross salary but in addition to that amount). Such payments are fringe benefit payments and, although not paid directly to employees, nevertheless are parts of the cost of personal services.

    Employee Retirement.  Contributions by the school to state and federal retirement programs. Included here are Social Security and Public Employees' Retirement Fund.

    211        Social Security-Noncertified.  Contributions by the school corporation for noncertified employees.

    212        Social Security-Certified.  Contributions by the school corporation for certified employees.

    213        Severance/Early Retirement Pay.  Contributions made by school corporations for these programs.

    214        Public Employees Retirement Fund.  Contributions by the school corporation for noncertified employees.

    215        Teacher Retirement Fund, Prior to 7-1-95.  Contributions by the school corpora­tion for certified employees employed prior to 7-1-95.

    216        Teacher Retirement Fund, After 7-1-95.  Contributions made by the school corporation for certified employees employed after 7-1-95.

    217        Public Employees Retirement Fund. Optional contributions.

    218        Teacher Retirement Fund. Optional contributions.

    Employee Insurance.  Group life, health and accident insurance for employees.

    221        Group life insurance.

    222        Group health insurance.

    223        Group accident insurance.

    224 Other group insurance authorized by statue. For example, dental insurance, optical insurance, or long/short term disability.

    225        Workers Compensation Insurance. Contributions or payments by the school corporation for workers compensation.

    230        Unemployment Compensation.  Contributions or payments by the school corporation for unemployment compensation.

    235        Food Service Staff Meals Provided.  Meals provided to adults working with the school lunch program according to policy passed by the school governing body.

    240        Entertainment.  Costs incurred in socialization associated directly with an LEA’s operations. A LEA should consult with State Board of Accounts before utilizing this object code. Expenditure account 25790 “Other Personnel Services” is an appropriate account to use with this object code.

    241-290      Other Employee Benefits.  Employee benefits which have not been classified above.

    Purchased Professional and Technical Services.  Services that by their nature can be performed only by persons or firms with specialized skills and knowledge. Although a product may or may not result from the transaction, the primary reason for the purchase is the service provided. Included are the services of architects, engineers, auditors, dentists, medical doctors, lawyers, consultants, teachers, and accountants. It is recommended that a separate account be established for each type of service provided to the school district. Services purchased from another school district or from other government sources should be coded to one of the object codes from 590 through 592.

    311        Instruction Services.  Non-payroll services performed by qualified persons directly engaged in providing learning experiences for pupils. Included are the services of interns engaged in teaching activities.

    312        Instructional Programs, All Employee Training and Development.   Services supporting the professional and technical development of instructional school district personnel as well as professional and technical development of all employees. Included are course registration fees (that are not tuition reimbursement), charges from external vendors to conduct training courses (at either school district facilities or off-site), and other expenditures associated with training or professional development by third-party vendors. Included are services for curriculum improvement, assessment, in-service training, counseling and guidance, library and media support, and other contracted instructional services.  Services supporting the professional and technical development of school district personnel, including administrative and service employees. All expenditures should be captured in this account, regardless of the type or intent of the training course or professional development activity.

    313        Pupil Services.  Nonpayroll services of qualified personnel to assist pupils and their parents in solving mental and physical problems to supplement the teaching process.

    314        Staff Services. Office/Administrative Services. Services in support of the various policymaking and managerial activities of the school district. Included are management consulting activities oriented to general governance or business and financial management of the school district; school management support activities; and election services and tax assessing and collecting services. (Usually used with accounts 23XXX – 25XXX.)

    316        Data Processing and Coding Services.  Data entry, formatting, and processing services other than programming. (Usually used with accounts 211XX, 22370, 22400, 24100, 251XX, and 258XX.)

    317        Statistical Services.  Non-payroll services performed by persons or an organization qualified to assist in handling statistics. The category includes special services for analysis, tabulations, or similar work.

    318        Board of Education Services.  Services performed by qualified persons to assist the governing body of the school corporation in particular activities. The category includes special projects performed specifically for the governing body and counseling the governing body in employing a chief executive officer.

    319        Professional Services.  Professional services other than educational services that support the operation of the school district. Included, for example, are medical doctors, lawyers, architects, auditors, accountants, bankers, therapists, audiologists, dieticians, editors, negotiations specialists, paying agents, school safety and security, systems analysts, and planners. (Usually used with accounts 2XXXX, but could also be used with accounts 1XXXX–4XXXX.)

    320        Other Professional Services.  Other professional services not described in objects 312 and 319.

    350        Technical Services. Services to the school district that are not regarded as professional, but that require basic scientific knowledge, manual skills, or both. Examples include purchasing services, warehousing services, and graphic arts.

    352        Other Technical Services. Technical services other than data-processing and related services. (Usually used with accounts 1XXXX–4XXXX.)

    Purchased Property Services.  Services purchased to operate, repair, maintain, and rent property owned or used by the school corporation. These services are performed by persons other than school corporation employees. Although a product may or may not result from the transaction, the primary reason for the purchases is the service provided.

    Public or Private Utility Services.  Expenditures for services usually provided by public utilities such as water, sewage, and garbage collection. The category includes those same services whether the utility company is public or private. Costs for telephone and telegraph are not included here, but are included in Communication 530 Object Area.

    411        Water and Sewage.  Charges for water used in all buildings and on all grounds; also all charges for sewage disposal.

    412        Removal of Refuse and Garbage.  Expenditures for removing ashes, trash, garbage, etc.

    419        Other Public or Private Utility Services.  Expenditures for public or private utility services not classified above.

    420        Cleaning Services.  Services purchased to clean buildings (apart from services provided by school district employees), including, but not limited to, disposal services, snow plowing, custodial services, and lawn care services. (Used with account 26XXX.)

    Repairs and Maintenance Services.  Expenditures for repairs and maintenance services not provided directly by school corporation personnel. Costs for new construction, renovating and remodeling are not included here, but are included in Construction or Buildings (Objects 450 and 720).

    431        Non-Technology-Related Repairs and Maintenance. Contracts and agreements covering the upkeep of buildings, grounds, and non-technology equipment. Costs for renovating and remodeling are not included here, but are classified under object 450. (Used with accounts 26XXX and 27XXX.)

    432        Technology-Related Repairs and Maintenance. Expenditures for repairs and maintenance services for technology equipment that are not directly provided by school district personnel. This includes ongoing service agreements for technology hardware (e.g., personal computers and servers). (Used with accounts 1XXXX, 223XX, and 258XX.)

    Rentals.  Expenditures for leasing or renting land, buildings, uniforms, and equipment for both temporary and long range use of the school corporation. The category includes vehicle rental when operated by school corporation personnel, lease on data processing equipment, lease-purchase arrangements, and similar rental agreements. Costs for single agreements covering equipment as well as operators are not included here, but are considered elsewhere under Purchased Services [see Transportation (510), Repairs and Maintenance Services (431)].

    441        Rentals of Land and Buildings. Expenditures for leasing or renting land and buildings for both temporary and long-range use by the school district.

    442        Rentals of Equipment and Vehicles. Expenditures for leasing or renting equipment or vehicles for both temporary and long-range use by the school district. This includes bus and other vehicle rental when operated by a local school district and similar rental agreements. Include rental vehicles for driver’s education programs here. This should be coded to the account where the equipment or vehicle is used. This code excludes costs associated with the rental of computers or other technology-related equipment. These costs should be coded to expenditure object 443 as described below.

    443        Rentals of Computers and Related Equipment. Expenditures for leasing or renting computers and related equipment for both temporary and long-range use. This includes rentals of phone equipment as well as rentals of copiers.

    444        Other Rentals. Uniforms and other rentals which are not classified above.

    450        Construction Services. Includes amounts for constructing, renovating, and remodeling buildings or infrastructure assets paid to contractors. This account should also be used to account for the costs of non-permanent site improvements such as fencing, walkways, and roads that are related to buildings and building sites. (Used only with accounts 4XXXX.)

    490 to 499  Other Purchased Property Services.  Property Services purchased which are not classified above. Communication services are not included here, but should be included in object 530.

    Other Purchased Services. Amounts paid for services rendered by organizations or personnel not on the payroll of the school corporation (separate from Professional and Technical Services or Property Services). Although a product may or may not result from the transaction, the primary reason for the purchase is the service provided.

    510        Student Transportation Services.  Expenditures for transporting children to and from school and other activities. (Used only with accounts 27XXX.)

    511        Student Transportation Purchased From Another School District Within the State. Amounts paid to other school districts within the state for transporting children to and from school and school-related events. Expenditures for the rental of buses that are operated by personnel on the school district payroll are not recorded here, but rather under object 442. (Used only with accounts 27XXX.)

    512        Student Transportation Purchased From Another School District Outside the State. Payments to other school districts outside the state for transporting children to and from school and school-related events. (Used only with accounts 27XXX.)

    519        Student Transportation Purchased From Other Sources. Payments to persons or agencies other than school districts for transporting children to and from school and school-related events. These payments include payments to students who transport themselves, payments to individuals who transport their own children, or payments as reimbursement for student transportation on public carriers. (Used only with accounts 27XXX.)

    520        Insurance (Other Than Employee Benefits). Expenditures for all types of insurance coverage, including property, liability, and fidelity. Insurance for group health is not charged here but is recorded under objects 2XX. (Used with accounts 231XX, 26XXX, and 27XXX.)

    525        Official Bond Premiums. Expenditures for bonds guaranteeing the school corporation against losses resulting from the actions of the treasurer, employees, or other persons of the school corporation.

    Communications.  Services provided by persons or businesses to assist in transmitting and receiving messages or information.

    530        Communications and Research Material Licensing/Subscriptions Under the LEA’s Capitalized Threshold. Services provided by persons or businesses to assist in transmitting and receiving messages or information. This category includes telephone and voice communication services; data communication services to establish or maintain computer-based communications, networking, and internet services; video communications services to establish or maintain one-way or two-way video communications via satellite, cable, or other devices; and postal communications services to establish or maintain postage machine rentals, postage, express delivery services, and couriers. Includes licenses and fees for services such as subscriptions to research materials over the Internet (such as downloads and online encyclopedias).

    540        Advertising.  Expenditures for printed legal notices in papers. These expenditures include advertising for such purposes as tax levies, bond sales, used equipment sales, and other objects. Costs for professional fees for advertising or public relations service are not recorded here but are charged to Professional Services.

    550        Printing and Binding.  Expenditures for job printing and binding, usually according to specifications of the school district. This includes designing and printing forms and posters, as well as printing and binding school district publications. Preprinted standard forms such as checks and receipts are not charged here, but are recorded under object 611. (Usually used with account 25300, but may be assigned to other accounts. Printing and duplication of materials for classroom use should be coded here and to accounts 1XXXX.)

    561        Tuition to Other School Districts Within the State. Tuition paid to other school districts, including charter schools, within the state. Includes tuition expenditures made to Cooperatives.

    562        Tuition to Other School Districts Outside the State. Tuition paid to other school districts, including charter schools and Cooperatives, outside the state.

    563        Tuition to Private Schools or Facilities. Tuition paid to private schools or facilities within the state and outside the state.

    565        Tuition to Postsecondary Schools. Tuition paid to postsecondary schools within the state and outside the state.

    569        Tuition—Other. Includes tuition paid to the state and other governmental organizations (excluding school districts) as reimbursement for providing specialized instructional services to students residing within the boundaries of the paying school district.

    570        Contributions & Donations to Outside Organizations. Any gift or donation made where the recipient is not required to provide a good or service to the LEA in payment of the LEA’s gift or donation. A LEA should consult with State Board of Accounts for approval before dispersing funds to outside organizations in a charitable manner.

    575        Food Service Management. Expenditures for the operation of a local food service facility by other than employees of the school district. Included are contracted services, such as food preparation, associated with the food service operation. Direct expenditures by the school district for food, supplies, labor, and equipment would be charged to the appropriate object codes. (Used only with accounts 31XXX.)

    580        Travel.  Expenditures for transportation, meals, hotel, and other expenditure/expenses associated with staff travel for the school district. Payments for per diem in lieu of reimbursements for subsistence (room and board) also are charged here.

    590        Interagency Purchased Services.  This code identifies other payments for services made between a school district and other governmental entities. (Used primarily with accounts 2XXXX.)

    591        Services Arranged with Another School District or Cooperative Within the State. Payments to or on behalf of another school district within the state for services rendered, other than tuition and transportation fees. Examples of such services are data processing, purchasing, nursing, and guidance.

    592        Services Arranged With Another School District or Cooperative Outside the State. Payments to or on behalf of another school district outside the state for services rendered, other than tuition and transportation fees. Examples of such services are data processing, purchasing, nursing, and guidance.

    593        Other Purchased Services. Amounts paid for services rendered by organizations or personnel not on the payroll of the school corporation (separate from Professional and Technical Services or Property Services). Although a product may or may not result from the transaction, the primary reason for the purchase is the service provided.

    594        Services Arranged with Associated Innovation Network Charter School. Payments to or on behalf of an Innovation Network Charter School associated with the district.

    Supplies.  Amounts paid for material items of expendable nature that are con­sumed, worn out, or deteriorated by use; or items that lose their identity through fabrication or incorporation into different or more complex units or substances.

    General Supplies. Expenditures for all supplies (other than those listed below) for the operation of a school corporation, including freight and cartage.

    611        Supplies – Nontechnology Related That Do Not Qualify for Capitalization.  Examples would include equipment, machinery, furniture, fixtures, office supplies, and other items that are not considered technology related that do not qualify for capitalization.

    612        Tires and Repairs.  Charges for repairs and replacements of tires and tubes.

    613        Gasoline and Lubricants.  Cost of gasoline, oil, grease and gear lubricants.

    614        Food.  Expenditures for all food other than for instructional programs. Food used in instructional programs is charged under object 611.

    621        Heating and Cooling for Buildings ‑ Electricity.  Electricity used in heating and cooling all school corporation owned buildings.

    622        Heating and Cooling for Buildings ‑ Gas.  Gas used in heating and cooling all school corporation owned buildings.

    623        Heating and Cooling for Buildings ‑ Fuel Oil.  Fuel oil used in heating and cooling all school corporation owned buildings.

    624        Heating and Cooling for Buildings ‑ Other Energy Sources.  All other energy sources used in heating and cooling all school corporation owned buildings.

    625        Light and Power ‑ Other Than Heating and Cooling.  Expenditures for electric current for all purposes used in the school corporation, except for heating.

    626        Gas ‑ Other Than Heating and Cooling.  Expenditures for gas for use for all purposes except for heating or cooling buildings.

    630        Textbooks.  Expenditures for adopted textbooks which are purchased for pupils or groups of pupils, and resold or furnished free to them.  The category includes the cost of workbooks, textbook binding or repairs, as well as the net amount of textbooks which are purchased to be resold or rented.

    640        Library Books.  Expenditures for regular or incidental purchases of library books available for general use of students including any reference books, even though such reference books may be used solely in the classroom.  Also recorded here are costs of binding or other repairs to school library books. Internet and online-exclusive subscriptions should be reported under 530 Communications, Licensing, and Subscriptions. Locally-stored subscriptions should be considered software and reported under 656, Technology Related Supplies.

    650        Periodicals.  Expenditures for periodicals and newspapers. A periodical is any publication appearing at regular intervals of less than a year and continuing for an indefinite period. Electronic and online subscriptions should be reported under 530 Communications, Licensing, and Subscriptions.

    655        Supplies–Technology Related That Do Not Qualify for Capitalization. Supplies that are typically used in conjunction with technology-related hardware. Some examples are CDs, flash or jump drives, copiers, parallel cables, and monitor stands. Laptops, E-readers, including Kindles, and iPads that do not qualify for capitalization should be reported here as well.

    656        Software Not Related to Research Material. Software that is not a license or fee for services such as subscriptions to research materials over the Internet (such as downloads and online encyclopedias)

    657        Vehicles That Do Not Qualify for Capitalization. Expenditures for the purchase of conveyances to transport persons or objects that do not qualify for capitalization..

    660 to 689  Other Supplies and Materials.  Expenditures for all other supplies and materials not included above.

    Property.  Expenditures for acquiring capital assets, including land, existing buildings, existing infrastruc­ture assets, and equipment.

    710        Land and Land Improvements.  Expenditures for the purchase of land and the improvements thereon. Purchases of air and mineral rights, for example, are included here. Not included here, but generally charged to objects 450 or 319 as appropriate, are expenditures for improving sites and adjacent ways after acquisition by the school district. (Used with primarily accounts 4XXXX.)

    715        Improvements Other Than Buildings.  Expenditures for the initial and additional improvement of sites and adjacent ways after acquisition by the school corporation consisting of such work as grading, landscaping, seeding, and planting of shrubs and trees; constructing new sidewalks, roadways, retaining walls, sewers and storm drains, installing hydrants; initial surfacing and soil treatment of playgrounds and tennis courts; furnishing and installing for the first time, fixed playground apparatus, flagpoles, gateways, fences, and underground storage tanks which are not parts of building service systems; and demolition work. Special assessments against the school corporation for capital improvements such as streets, curbs and drains are also recorded here.

    720        Buildings.  Expenditures for acquiring existing buildings and construction of buildings, major permanent structural alterations, renovations, fire protection systems, and other service systems, except payments to public school housing authorities or similar agencies. (Expenditures for installment or lease payments, except interest, that have a terminal date and result in the acquisition of buildings should be assigned to codes 831 and 832.) Expenditures for the contracted construction, alteration, and renovations of buildings are recorded under object 450. Buildings built and alterations and renovations performed by the school district’s own staff are charged to objects 1XX, 2XX, 6XX, and 7XX, as appropriate. Building rent is reported in object 441. (Used with accounts 4XXXX.)

    734        Vehicles That Qualify for Capitalization. Expenditures for the purchase of conveyances to transport persons or objects that qualify for capitalization. (Vehicles for driver’s education should be coded to accounts 1XXXX).

    735        Nontechnology Related Equipment That Qualifies for Capitalization. Equipment and furniture purchases that qualify for capitalization.

    740        Infrastructure. Expenditures for purchased infrastructure assets by the school district. These items include water/sewer systems, roads, bridges, and other assets that have significantly longer useful lives than other capital assets. Expenditures for contracted construction of infrastructure are recorded under object 450. Infrastructure built by the school district’s own staff is charged to objects 1XX, 2XX, 6XX, and 7XX, as appropriate. (Used only with account 4XXXX.)

    741        Technology Related Equipment That Qualifies for Capitalization. Expenditures for technology-related equipment and technology infrastructure that qualify for capitalization.

    Other Objects.  Amounts paid for goods and services not otherwise classified above. This includes expenditures for the retirement of debt, the payment of interest on debt, the payment of dues and fees, purchase of investments, payments of service charges, and allowable amounts paid for band uniforms.

    810        Dues and Fees.  Expenditures or assessments for membership in professional or other organizations, as well as student fees (such as entry fees to contests). Examples include member fees or dues to service centers and study councils. Tuition expenditures should be reported in objects 561 through 569. Does not include expenditures for contractual instruction/service agreements with other school corporations or similar entities.

    820        Judgments Against the School District.  Expenditures from current funds for all judgments (except as indicated below) against the school district that are not covered by liability insurance, but are of a type that might have been covered by insurance. Only amounts paid as the result of court decisions are recorded here. Judgments against the school district resulting from failure to pay bills or debt service are considered non-court judgments and should be recorded under the appropriate expenditure accounts as though the bills or debt service had been paid when due. (Used only with accounts 231XX.)

    825        Seldom or Non-recurring Fines. This object code will encompass Contingencies, Bad Debts, Fines, and Penalties. A contingency is a potential negative economic event which may occur in the future. Bad debts are debts that are not collectible and therefore worthless to the creditor. Fines and penalties can be defined as: fines, penalties, damages, and other settlements resulting from violations (or alleged violations) of, or failure of the governmental unit to comply with, Federal, State, local, or Indiana tribal laws and regulations… OMB Circular A-87 (Revised 5/10/04)

    Debt Related Expenditures. Expenditures which are from current funds to retire serial bonds, emergency loans and temporary loans. Also expenditures from current funds for interest on serial bonds, lease with option to buy, emergency loans and temporary loans.

    831        Redemption of Principal. Expenditures to retire bonds (including current and advance refunding) and long-term (> 6 months) loans, including lease-purchase arrangements. (Used only with accounts 5XXXX.)

    832        Interest on Long-Term Debt. Expenditures for interest on bonds or notes, including lease-purchase arrangements. (Used only with accounts 5XXXX.)

    833        Bond Issuance and Other Debt-Related Costs. Expenses in connection with bond and other debt issuance costs, including lease-purchase debt issuance costs. (Used only with accounts 5XXXX.)

    835        Interest on Short-Term Debt. Expenditures for interest on short-term debt or anticipation notes. (Used only with account 25XXX Fiscal Services.)

    871        Bank Service Charges.

    872        Late Payments.  On contracts, etc., where permitted by law.

    873        Seldom or Non-Recurring Purchases. Expenditures for items purchased not qualified to be included as capital outlay.  Includes band uniform purchases.

    875        Awards. Expenditures for all types of authorized awards.

    876 to 899  Miscellaneous Objects.  Amounts paid for all other expenses not classified elsewhere.

    Other Items.  Used to classify transactions that are not properly recorded as expenditures/expenses but require control and reporting by the school corporation.

    910        Transfers.  This object category does not represent a purchase; but is used as an accounting entry to show that funds have been handled without having goods and services rendered in return. Included here are transactions for interchanging money from one fund to the other and for transmitting flow-through funds to the recipient (person or agency). The refund of revenues should be reported here.

    920        Investments.  Expenditures for purchase of investments.

    930        SubAwards/SubGrants for federal projects for less than $25,000 to Other Governmental Units. An award provided by a pass-through entity to a subrecipient for the subrecipient to carry out part of a Federal award received by the pass-through entity. Payments to a contractor or payments to an individual that is a beneficiary of a Federal program are not considered to be subawards or subcontracts. A subaward may be provided through any form of legal agreement, including an agreement that the pass-through entity considers a contract.

    931        SubAwards/SubGrants for federal projects for greater than $25,000 to Other Governmental Units. An award provided by a pass-through entity to a subrecipient for the subrecipient to carry out part of a Federal award received by the pass-through entity. Payments to a contractor or payments to an individual that is a beneficiary of a Federal program are not considered to be subawards or subcontracts. A subaward may be provided through any form of legal agreement, including an agreement that the pass-through entity considers a contract.

    940        SubAwards/SubGrants for federal projects for less than $25,000 to Non-Governmental Units. An award provided by a pass-through entity to a subrecipient for the subrecipient to carry out part of a Federal award received by the pass-through entity. Payments to a contractor or payments to an individual that is a beneficiary of a Federal program are not considered to be subawards or subcontracts. A subaward may be provided through any form of legal agreement, including an agreement that the pass-through entity considers a contract.

    941        SubAwards/SubGrants for federal projects for greater than $25,000 to Non-Governmental Units. An award provided by a pass-through entity to a subrecipient for the subrecipient to carry out part of a Federal award received by the pass-through entity. Payments to a contractor or payments to an individual that is a beneficiary of a Federal program are not considered to be subawards or subcontracts. A subaward may be provided through any form of legal agreement, including an agreement that the pass-through entity considers a contract.

    960        Extraordinary Items. Used to classify items in accordance with Accounting Principles Board (APB) Opinion No. 30 that are transactions or events that are both unusual in nature and infrequent in occurrence. For some districts, this includes significant costs related to a natural disaster such as a fire, flood, tornado, hurricane, or hail storm or costs related to an environmental disaster.

    Objects listed below are to be used only with Section 9 entries to generate the Statement of Obligations:

    902        Principal Created During 6 Month Period.

    904        Principal Paid During 6 Month Period.

    905        Principal Outstanding – Ending Balance.

    906        Interest Outstanding – Ending Balance.

  • Information and Statutory Citations

    GENERAL INFORMATION AND STATUTORY CITATIONS

    Part 9 contains general information designed to assist school corporation officials in the administration of their duties.  The information contained herein is supported in some instances by legal references, court decisions and official opinions of the Attorney General; however, if any legal question arises, the school corporation attorney should be consulted.

    Throughout Part 9 reference is made in many articles to sections of the General School Powers Act, noting the Code citation (IC 20-26-5-1 to IC 20-26-5-20).

    If the need arises, refer to the applicable volume of the Indiana Code in which the citation appears.  Also, where reference is made to Official Opinions of the Attorney General, court decisions, or other legal references, these should be consulted for the full text of the matter discussed.

    GENERAL INFORMATION AND LEGAL GUIDE

    GOVERNING BODY DEFINED

    "Governing body" is defined in the General School Powers Act to mean the board or commission charged by law with the responsibility of administering the affairs of a school corporation, including but not limited to, a board of school commissioners, metropolitan board of education, board of school trustees or board of trustees.

    GOVERNING BODY ELIGIBILITY

    In addition to any other eligibility requirements for members of the governing body of a school corporation as set forth in law, an individual who is employed as a teacher or as a noncertified employee (as defined in IC 20-29) of the school corporation may not be a member of the governing body of the school corporation.  IC 20-26-4-11.

    TERM OF OFFICE OF GOVERNING BODY

    Requirements for the governing body’s members’ term of office and the procedure for filling vacancies are detailed in IC 20-26-4-4.

    Each person elected or selected to be a member of a school corporation governing body shall give an Oath of office prior to taking office.  The language of the oath is detailed in IC 20-26-4-2.

    ORGANIZATION OF GOVERNING BODY

    IC 20-26-4-1 provides the requirements of the governing body to organize, appoint a Treasurer, and provides the option to establish the position of executive secretary to the governing body.  It also provides the duties of the School Corporation Treasurer.

    MEETINGS OF GOVERNING BODY

    Requirements concerning regular meetings, statutory meetings and special meetings of the governing body are set out in the General School Powers Act.  No action may be taken unless a quorum is present. A majority of the members shall constitute a quorum.  All meetings shall be open to the public to the extent required by IC 5-14-1.5.  (Indiana Open Door Law)

    MINUTES OF MEETINGS OF GOVERNING BODY

    All business transacted by the governing body must be recorded in the minutes of the meetings.  The secretary of the governing body has the duty to keep the minutes and the minutes of each meeting should be approved by the governing body and signed by the members attending.

    The minutes must be accurate and complete.  Not all documents acted upon, such as bids and contracts, must be copied in the minutes but reference thereto and the action taken thereon should be recorded in the minutes and the documents carefully preserved.  Important papers and documents; however, will need to be completely recorded in the minutes, such as proceedings to issue bonds.  You should consult the school corporation attorney if a question arises as to the need for making a complete record on any matter.

    Examples of school business decisions and transactions which should be recorded in the minutes are:

    1.   Employment and compensation of teachers, bus drivers, janitors and other employees, including salary schedules adopted.

    2.   Travel and other allowances of employees, such as travel expense, to be paid to the school superintendent, principals and teachers, (Stipulated maximum amounts to be allowed should also be included in contracts).  These amounts may be paid only as reimbursement for expenditures actually made by the employee.

    3.   Decision to allow teachers and other school employees to attend conventions or educational meetings, or to visit model schools, and the expense to be allowed on such trips.

    4.   Decisions with respect to receipt of bids and award of contracts for supplies, fuel, equipment, goods, and materials.  Also bids and contracts for construction, alteration, or repair of buildings and improvement of grounds.  All bids received, whether accepted or rejected, should be kept on file in the school business office.

    5.   Bids received and contracts awarded to bus drivers.

    6.   Proceedings pertaining to bond sales.

    7.   Proceedings relative to the establishment, extension or alteration of a Capital Projects plan.

    8.   Decisions and actions relative to Public Employees' Retirement Fund benefits for employees; also group insurance and other employee benefits.

    9.   Designation of depositories.

    10.   Resolutions of appropriation and proposed tax levies.  A complete set of budget forms as submitted to the county auditor as well as a record of the action of the County Board of Tax Adjustment and of the Department of Local Government Finance should be kept on file in the school business office.

    11.   A record of all additional or emergency appropriations.

    12.   Records of discharge of all employees together with reasons for dismissal.

    13.   Records of time schools are closed during the school term and reasons for closing; also a record of decisions concerning date of beginning, date of closing and length of school terms.

    14.   Records of appointments and salaries of clerical help and office assistants, library, recreation and school lunch personnel.

    15.   All decisions relative to school activities, recreation programs, adult education and other programs.

    16.   Records of reasons and amounts of all emergency and temporary loans.

    17.   Record number of claims or accounts payable vouchers approved and allowed or disallowed by the governing body at each meeting and the reasons for disallowance.

    18.   Record of Loans between funds.

    19.   Policy for the operation of individual school buildings; i.e., investment interest income, approval of equipment acquisition, etc.

    20.   Separate Home Rule Resolutions for various situations in accordance with IC 20-26-3.

    21.   Determine compensation of board members with restrictions provided by IC 20-26-4-7.

    POWERS OF GOVERNING BODY

    The general powers of the school governing body are listed in IC 20-26-5-1.  Statute also provides a list of specific powers in IC 20-26-5-4 that have been granted to the school governing body while acting in behalf of the school corporation.

    LIMITATION OF POWERS

    All powers delegated to the governing body of a school corporation under IC 20-26-5-1 or IC 20-26-5-4 are subject to all laws subjecting the school corporation to regulation by a state agency, including the state superintendent, state board of accounts, state police department, fire prevention and building safety commission, department of local government finance, water pollution control board, state school bus committee, state department of health, and any local government agency to which the state has been delegated a specific authority in matters other than educational matters and other than finance, including plan commissions, zoning boards, and boards concerned with health and safety.

    HOME RULE

    IC 20-26-3 provides for ability of a school corporation to use Home Rule in various situations.  IC 20-26-3-7 details specific situations in which a school corporation does not have the ability to adopt a Home Rule.

    GOVERNING BODY - OTHER DUTIES

    Some duties of the governing body not specifically mentioned in the School Powers Act are the following:

    1.   Authority to administer oaths relative to school business appertaining to their respective offices.

    2.   IC 5-11-10-1 and IC 20-26-4-1 provides the duty for the governing body to examine and approve all claims, accounts payable vouchers, and payrolls.

    3.  To constitute the board of finance and select the depositories for the school corporation. Review the annual report of the investing officer and the school corporation's overall investment policy.

    4.   IC 5-3-1-3 details the requirement to publish an annual financial report.  IC 20-20-8-3 details the requirement to publish an annual performance report.

    5.   IC 6-1.1-17 provides the requirement to prepare an annual estimated budget, proposed tax rate, and proposed tax levy.

    6.   IC 20-27 provides the requirements for transportation of school children to and from school as authorized by the School Transportation Code.

    MEMBERSHIP DUES

    IC 20-26-5-8 provides that the governing body may appropriate funds to pay for membership in state and national associations of an educational nature.  Accordingly, the State Board of Accounts is of the audit position that dues, memberships and subscriptions should be institutional memberships; i.e., in the name of the school corporation or school building, not an individual's name.

    PURCHASES

    All purchases should be through the accounting system as prescribed herein to avoid potential overdrawn funds, payment of sales taxes, etc.

    Individuals should not be allowed to purchase supplies, equipment and other items outside of the prescribed accounting system.

    EQUIPMENT PURCHASES

    IC 20-26-5-4 provides in part:  "In carrying out the school purposes of each school corporation, its governing body acting on its behalf shall . . . acquire such personal property or any interest therein as the governing body deems necessary for school purposes . . ." Therefore, extracurricular equipment purchases should be approved prior to purchase by the Board of School Trustees.

    AVERAGE DAILY MEMBERSHIP (ADM)

    Officials shall maintain records (enrollment cards, rosters, reporting forms, etc.) which sub­stantiate the number of students claimed for ADM.

    The building level official (Principal, Assistant Principal, etc.) is responsible for reporting ADM to the School Corporation Central Office, must provide a written certification of ADM to properly document responsibility.  The certification must at a minimum include a statement detailing the names and location of the records used (these records must be retained for public inspection and audit) to substantiate ADM claimed.

    ADM AND OTHER STATE DISTRIBUTION OVERPAYMENTS

    School Officials shall contact the Indiana Department of Education, Division of School Finance, to determine possible steps to be taken to correct any overpayment/underpayment applicable to the School Corporation because of incorrect reporting.

    CANCELLATION OF OLD CHECKS

    IC 5-11-10.5-2 provides that all warrants or checks, outstanding and unpaid for a period of two or more years as of December 31 of each year, shall be declared void. IC 5-11-10.5-3, IC 5-11-10.5-4, and IC 5-11-10.5-5 provide the detailed steps to receipt the voided checks back into the school corporation funds.

    CONTRACTS OF TEACHERS AND OTHER EMPLOYEES

    IC 20-28-6 provides the basic contract requirements for regular teachers, temporary teachers, teacher supplemental services, probationary teachers, and established teachers.

    IC 20-28-9-7 and IC 20-28-9-8 provide the requirements for payment of wages to substitute teachers.

    Although non-instructional employees are not required to enter into a written contract, some school corporations do provide written contracts with such employees.

    IC 20-26-5-4(a)(8) gives the board of school trustees the power to fix and pay the compensation of non-instructional employees, classify such persons or services and adopt schedules of salaries or compensation.  Such salary or compensation schedules must be made a part of the board minutes when not entering into written contracts.

    TEACHERS' EXTENDED LEAVE OF ABSENCE

    IC 20-28-10 provides details on extended leave of absence for teachers including leave for sabbatical, disability, sick, pregnancy, and defense services.

    TEACHERS' SALARIES

    The minimum salary law for teachers is found in IC 20-28-9.

    IC 20-28-9-15 provides the requirement to pay teachers their regular payments for school being closed by the school corporation, the health authorities, or no fault of the teachers.

    NONINSTRUCTIONAL EMPLOYEES' SALARIES

    There is no minimum salary law for non-instructional employees other than the state and federal minimum wage and hour laws.

    The board of school trustees has the authority to classify and determine salary schedules for non-instructional employees provided such schedules do not violate any State or federal wage and hour statutes.

    Students performing services for any school in which they are enrolled and are regularly attending classes are not subject to the Indiana Minimum Wage Law of 1965, IC 22-2-2-3(i).

    SICK AND OTHER LEAVE

    IC 20-28-9-9 provides details for teacher absence from work with pay due to illness or bereavement and accumulation of unused days.

    IC 20-28-9-10 provides details for transfer of accumulated days when a teacher transfers to another school corporation.

    IC 20-28-9-11 provides details for absences not included in statute, but are included in the teacher collective bargaining agreement.

    IC 20-28-9-13 provides the opportunity for a school corporation to establish a teacher sick bank for use when a teacher’s sick days have been exhausted.

    IC 20-28-9-14 provides the details for teacher personal days.

    We are not aware of a statutory provision specifying a minimum number of sick leave days or other leave days for non-instructional employees; however, the board of school trustees has authority to make, enforce and amend rules, regulations and procedures for the government and management of the schools in accordance with IC 20-26-5-4(a)(8).  Included is school property, facilities and activities of the school corporation, its agents, employees and pupils, and for the operation of its governing body.

    TRAVEL EXPENSE

    IC 20-26-5-4(a)(9) provides details for a school employee or member of the school board to be permitted as absent with pay and to be reimbursed for travel expenses while attending events such as conferences, meetings, etc. as a representative of the school.

    We are of the audit position if an instructional employee is required to travel between schools, a provision should be made a part of the contract each school year specifying a maximum amount to be allowed for travel inside the school corporation and a maximum amount to be allowed for travel outside the school corporation.  The employee must file an itemized claim for any mileage on General Form 101 (Mileage Claim), and other travel expenses must be claimed on Accounts Payable Voucher, Form 523.

    ANNUITIES

    Official Opinion 24 issued in 1962, of the Attorney General held that the State Superintendent of Public Instruction may amend the teachers' contract form to provide for a part of the salary to be paid to a teacher and the balance of the salary to be used by the school corporation in the purchase of an annuity for the teacher.  The maximum amount to be used for the purchase of a tax sheltered annuity is subject to a formula established by the Internal Revenue Service (IRS).  A school corporation, before initiating a tax sheltered annuity program, should have the program approved by the Internal Revenue Service.

    The approved amount of the teacher's salary paid by the school corporation for the purchase of a tax sheltered annuity may not be subject to federal income tax, Indiana gross income tax, or county adjusted gross income tax deductions. The amounts paid by a school corporation on behalf of and as authorized by an employee would, in accordance with the ruling of the Internal Revenue Service, be entitled to the deferred tax treatment provided under the terms of Sec. 403(b) of the Federal Internal Revenue Code, thereby excluding such amounts from the gross income of such employees under the terms of Sec. 103 of the Adjusted Gross Income Tax Act 1963. (Opinions of Attorney General 1964, Number 17)

    The amounts so designated are subject to deductions for social security and applicable retire­ment plans.

    RETIREMENT

    IC 5-10.4-7 provides the requirements for the school corporation to notify each teacher and make member contributions to the State Teachers’ Retirement Fund.

    IC 5-10.3-2 provides the option for the allowance of qualifying employees to participate in the Public Employees’ Retirement Fund.

    Inquiries relative to participation in TERF and PERF should be directed to INPRS, Suite 001, One North Capital, Indianapolis, Indiana, 46204.

    GROUP INSURANCE

    IC 5-10-8-2.6 allows for the school corporation to provide programs of insurance for all its employees and retired employees. Group insurance may cover both instructional and non-instructional employees or a person who provides personal services to the unit under contract during the contract period.  However, it also allows for a school corporation to exclude part-time employees and persons who provide services to the unit under contract from any group insurance coverage that the public employer provides to the employer's full-time employees.  Finally, it provides that a public employer may pay, as supplemental wages, an amount equal to the deductible portion of group health insurance as long as payment of the supplemental wages will not result in the payment of the total cost of the insurance by the public employer.

    Official Opinion 21 issued June 17, 1957, by the Attorney General held that according to IC 19-10-4 (now IC 5-10-8), governmental units may participate in paying for group insurance to any extent short of full payment so long as the requirement regarding the appropriation of funds is fulfilled.

    The Attorney General in Official Opinion 44 issued in 1966, provided that a governmental unit may contribute toward the insurance on legal dependents of the employee, that is, the dependents for whom the employee is required by law to pay their medical expenses.  This would include the employee's spouse and minor dependent children.

    FEDERAL AID

    IC 5-19-1-1 provides details for school corporations to cooperate with and accept benefits from the Federal Government.

    IC 20-40-14 provides that money received under a federal program may be accounted for by establishing a special fund.  If a special fund is established, then money may be disbursed without appropriations.

    GENERAL OBLIGATION BONDS AND OTHER EVIDENCES OF INDEBTEDNESS

    General obligation bonds may be sold by following the provisions of IC 5-1-11-1 et seq.  Please also be aware of the provisions of IC 6-1.1-20-1 et seq. concerning procedures for issuance of bonds and other evidence of indebtedness.

    IC 6-1.1-20-7 provides the restrictions and approvals on interest rates when debt will be payable from property taxes.

    IC 20-48-1-3 provides the restrictions on bond maturity terms.

    IC 5-1-14-5 authorizes school corporations to issue bond anticipation notes.

    EMERGENCY LOANS

    IC 20-48-1-7 provides the required processes to make an emergency loan and establishing a tax levy to make repayments in subsequent years.

    TEMPORARY LOANS

    IC 20-48-1-9 provides the required processes to issue an anticipation warrant for a specific fund in anticipation of revenue.

    TEMPORARY TRANSFERS TO DEPLETED FUNDS

    IC 36-1-8-4 provides the required processes to transfer money from one fund to another fund, interfund loan, for situations in which a fund is in need of money for cash flow purposes.

    TRANSFERS OF APPROPRIATIONS WITHIN A FUND

    If the proper legal officers of any school determine that it is necessary to transfer an appropriation from one major budget classification to another, the transfer of appropriation is made by resolution of the school board at a regular public meeting. We are not aware of a statutory requirement to publish notice of transfer. Approval by the Department of Local Government Finance is not necessary.

    PUBLIC WORKS BORROWING

    IC 36-9-41 provides requirements for the opportunity to issue debt on public work projects that do not exceed $2,000,000 or efficiency projects that do not exceed $3,000,000.

    SCHOOL BUS PURCHASES

    IC 20-27-4 provides the guidance and requirements for purchasing school buses.

    Purchases for cash may be made from available funds on hand (Operations fund) as a result of a specific appropriation made therefore, from the proceeds of general obligation bonds issued for purchasing school buses, or from funds borrowed from banks and lending institutions.

    We will not take audit exception, in lieu of issuing general obligation bonds, to a school corpora­tion to negotiating and borrowing funds from any bank for the purchase of school buses for cash.  The school corporation shall execute its notes to the lending institution, and such notes shall not extend for a period longer than six (6) years, and shall be paid at the same time and in the same manner as provided for the payment of a security agreement.  Although the loan is receipted to the Operations fund and the purchase made there, we will not take audit exception to the notes being redeemed from the Debt Service fund.

    JOINT SERVICES AND SUPPLY FUND

    IC 20-26-10 provides the guidance and requirements for two or more schools engaging in a joint program.  Joint programs include joint employment of personnel, joint purchase of supplies or other material, or joint purchase or lease of equipment, joint lease of land or buildings, or both, or joint construction of, remodeling of, or additions to school buildings, investment of funds, data processing operations, career and technical education, psychological services, audiovisual services, guidance services, special education, and joint purchasing related to the acquisition of supplies or equipment that are not to be used jointly.

    BONDS OF TREASURER, DEPUTY TREASURER AND EMPLOYEES

    IC 20-26-4-5 provides the requirement of the school corporation treasurer, the deputy treasurer (if appointed), and any person that meets the definition of an “individual” to provide a financial performance bond each July 1st.

    IC 20-41-1-6 provides the requirement for the treasurer of each extracurricular account to provide a faithful performance of duty bond.

    Whenever deemed necessary to bond any other employee of a school corporation, the governing body may bond or cause to be bonded such employee or employees by either individual or blanket bonds conditioned upon faithful performance of duties, and in amounts and with surety approved by the school board.  We recommend bond coverage for any employee handling funds.

    PROPERTY TAX ADVANCE

    IC 5-13-6-3 provides for the opportunity for the school corporation to request in writing to the County Treasurer for a limited advance of property tax collections.

    PLANS AND SPECIFICATIONS ‑ APPROVAL BY VARIOUS AGENCIES

    All plans and specifications for public buildings must be approved by the State Board of Health, State Fire Marshal, State Building Commissioner and other State Agencies designated by statute.

    LATE PAYMENTS

    IC 5-17-5-1 provides the requirements for schools to pay interest on payments that are not made timely.  As noted in Part 1, responsible school officials may be requested to reimburse the school corporation for additional fees charged as a result of not performing their duties.

    COMPULSORY EDUCATION

    Compulsory school attendance provisions may be found in IC 20-33-2.

    Minors may be employed in specified occupations during the time schools are in session pursuant to IC 20-33-3.  Please refer to IC 20-33-3 in relation to employment of children who are more than fourteen (14) years of age and less than eighteen (18) years of age and the issuance of employment certificates.

    AVAILABILITY OF EDUCATION

    The Indiana Constitution in Article 8, Section l charges the Indiana General Assembly with the duty to encourage, by all suitable means, moral, intellectual, scientific, and agricultural improvement; and to provide, by law, for a general and uniform system of Common Schools, wherein tuition shall be without charge, and equally open to all.

    IC 20-33-1-2 provides that the public schools of the State of Indiana shall be open to all children until they complete their courses of study subject to the authority vested in school officials by law.

    The State Board of Education and the State Superintendent of Public Instruction are authorized to provide a program of adult education; and, to provide a plan whereby high school credits may be secured by persons who have passed the high school age, IC 20-20-6.  The Office of the Indiana Attorney General ruled that school corporations may not exclude married pupils or students over twenty one (21) years of age who are otherwise eligible to attend school.  However, please consult the school corporation attorney for applicability of any court decisions.

    INSURANCE FOR SCHOOL CHILDREN

    IC 20-26-5-4(15) authorizes school corporations to purchase insurance or to establish and maintain a program of self-insurance relating to the liability of the school corporation or the school corporation's employees.

    CHILDREN WITH DISABILITIES

    IC 20-35-4-1.5 provides that a school corporation has a duty individually or in joint programs to establish special classes or schools for instruction of children with disabilities.

    INDIGENT CHILDREN

    IC 20-33-5 provides if a parent of a child or an emancipated minor, who is enrolled in a public school in grades K-12, meets the financial eligibility, the parent of a child or an eman­cipated minor, may not be required to pay the fees for school books, supplies or other required class fees.  Such fees shall be paid by the school corporation in which the child resides.  The school corporation may apply for reimbursement from the State for textbooks and workbooks. The school corporation may request the parent or emancipated minor to pay the outstanding balance after deducting the state reimbursement.

    IC 20-33-5-11 prohibits the school corporation from withholding curricular materials; from requiring specials services; or denying any benefits or privileges to students that have outstanding curricular materials rental balances.

    MEDICAL INSPECTION AND IMMUNIZATION OF CHILDREN

    IC 20-34-3 provides that the school corporations have the authority to employ school nurses and physicians to make prompt examination and diagnosis of school children referred to them.  Expenditures may not be made from public funds for physical examinations of students participating in interscholastic athletic contests or for the attendance of physicians at such contests.  (Opinions of Attorney General 1961, Page 216)

    TRANSFER OF SCHOOL CHILDREN

    IC 20-26-11 provides for the authority for a child to transfer or be transferred from their school district of legal settlement.  IC 20-26-11-6 allows the transferor school corporation to request that transfer tuition be paid for a child to transfer into their school corporation.

    TRANSPORTATION OF SCHOOL CHILDREN

    IC 20-27-5 provides the governing body of every school corporation may provide transportation for school children to and from school.  It also details if the school corporation provides transportation for school children, the governing body shall be responsible for obtaining the necessary number of school buses and school bus drivers, and for negotiating and executing the necessary number of school bus driver contracts.

    IC 20-27-11-1 provides that a school corporation must transport parochial school children residing on or along the regular school corporation route, without charge, from a point on the regular route nearest or most easily accessible to their homes to and from the parochial school or to and from the point on the regular route which is nearest or most easily accessible to such parochial school.  This statute obviously refers to the school bus or conveyance already being operated over the regular established route, and neither requires nor authorizes the school trustees to place additional buses on the route in order to accommodate parochial pupils otherwise eligible for transportation.  (Opinions of Attorney General 1936, Page 415; also Number 12, issued February 21, 1964)

    IC 20-27-11-4 provides transferred students may be transported by the receiving school corporation pursuant to a transportation agreement contract between the transferring corporation and the receiving corporation.

    A school corporation may provide transportation for resident students although such students are attending the public schools of another school corporation on a private transfer tuition agreement. (Opinions of Attorney General 1963, Page 234)

    INSURANCE LOSSES, MONEY RECEIVED

    IC 6-1.1-18-7 provides for the process and guidance when proceeds are received for property loss or damage from an insurance company.  If conditions are met, then the fiscal officer can may appropriate the proceeds without any additional approvals required.

    SIGNATURE ON CLAIMS AND CHECKS

    IC 20-26-4-1(d)(3) provides that one of the duties of the treasurer of the school corporation is to issue all checks in payment of expenses but, except as otherwise provided by law, shall issue such checks only after proper allowance or approval by the governing body.

    DORMANT FUND BALANCES

    IC 36-1-8-5 provides whenever the purpose of a fund has been fulfilled, then the balance of a dormant fund may be transferred to any school corporation fund. IC 36-1-8-5 applies to general and special tax funds, but SBOA opinion has extended the authority to all funds, unless guidance is provided in statute.

    IC 5-1-13-2 provides guidance on surplus bond proceeds.  Whenever bonds have been issued for any lawful purpose or project, and the purpose for which the bonds were issued has been accomplished or abandoned and a surplus remains from the proceeds of such bond sale, the board of school trustees may, by a resolution adopted and recorded in the minutes, order the treasurer to transfer the unused balance or surplus to the Debt Service Fund. Surplus bond proceeds may be used by a school corporation for the same purpose or type of project for which the bonds were originally issued, if:

    1.   The fiscal officer of the school corporation certifies before or at the time of that use that the surplus was not anticipated at the time of issuance of the bonds; and

    2.   The school board responsible for issuing the bonds takes action approving the use of surplus bond proceeds for the same purpose or type of project for which the bonds were originally issued.

    PAYMENTS DUE DECEASED PERSON

    IC 29-1-8-1 provides guidance and requirements concerning money due a deceased person at the time of death.

    SUBSIDIARY LEDGERS

    Subsidiary ledger balances must reconcile to the control ledger fund balance.  Every transaction should be posted to the control ledger and to the appropriate subsidiary ledger.  Fund balances should reconcile between the control ledger and the subsidiary ledger.

    GRANT FUNDS AND EDUCATIONAL FEES

    IC 20-26-4-1 concerning duties of the School Corporation Treasurer, provides in part: "The treasurer is the official custodian of all funds of the school corporation and is responsible for the proper safeguarding and accounting for the funds."  Therefore, all grant monies and properly authorized fees at an individual building should be transferred to the School Corporation Central Office on a timely and regular basis for receipting into the appropriate school corporation fund.

    We have developed an audit opinion that we will not take exception to the school board approving rental rates and education fees for the following items:

    1. Items meeting the definition of “Curricular Materials” stated in IC 20-18-2-2.7.

    2. Items meeting the definition of “Consumable Curricular Materials” as set by the Indiana Department of Education.

    3. Items that the school corporation attorney has provided a written opinion that the educational fee does not violate the Indiana Constitutional provisions.

    TRANSPORTATION EXPENDITURES

    The Conclusion of Attorney General Advisory Number 96-78 states in part:  "The school transportation fund was established to cover costs which are attributable to transportation.  Indiana Code 21-2-11.5-2(b)(1) through (b)(7) (now 20-40-6-6) set forth the costs which may be attributed to transportation.  According to subsection (b)(1), the salaries of "transportation-related" employees may be paid from this fund.  As the school superintendent and school corporation treasurer do not appear to be positions that are transportation-related, payment from the transportation fund of the salaries attached to these positions would be improper."  Our opinion is that the Attorney General Advisory opinion would be extended to the portion of IC 20-40-18-8 that covers allowable uses of the Operations fund for transportation expenditures.

    RECORDING FINANCIAL TRANSACTIONS

    All financial transactions related to the School Corporation should be accounted for in School Corporation Records.

    SCHOOL FOOD VERIFICATIONS OF ELIGIBILITY

    Officials should request a written position from the Indiana Department of Education stating whether the corrective action taken was sufficient or if additional verifications need to be performed when high incidences of errors in test sample verifications are noted.

Guidelines for the Audits of Charter Schools Performed by Private Examiners

  • Preface

    The Indiana State Board of Accounts is the state agency, designated by legislation, with responsibility of the audit of public funds received and disbursed by public offices and officers, state offices, state institutions, and any other entities receiving or disbursing public funds.  Through the annual reporting process and our involvement in approving requests for proposals and audit contracts with private examiners to perform the  audits of the charter schools, we have attempted to ensure charter schools subject to federal or state audit requirements have met these requirements as efficiently and inexpensively as possible.

    It is the Indiana State Board of Accounts policy that units of government subject to the audit requirements of Indiana Code 5-11-1 shall have no more than one audit completed annually.  Therefore, the auditor selected to perform the annual audit shall be required to complete the financial audit, the compliance audit and, if applicable, an audit under Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) audit.  It is therefore imperative that entities and their private examiner exercise diligence in determining applicable audit requirements, prior to commencing the audit process.  Through adherence to our Guidelines for the Audits of Charter Schools, and with the cooperation of all parties involved, one audit can and will satisfy the needs of all interested parties.  Subject to the Malfeasance, Misfeasance, and Nonfeasance section of the Guidelines for the Audits of Charter Schools, we reserve the right to audit, examine, investigate, and review records of any charter school at any time as deemed necessary by the State Examiner.

    We would like to thank the charter schools and private examiners for the cooperation and assistance they provide.  We hope this issue of the Guidelines for the Audits of Charter Schools will assist you in successfully addressing your responsibilities.


    Paul D. Joyce, CPA
    State Examiner

  • Guidelines for Audits

    Statutory Authority

    Audit Coordination and Administration

    Audit Frequency and Completion

    Request for Proposal and Contract Requirements

    Required State Board of Accounts language in the Engagement Letter

    Auditing Standards to be Applied

    Audit Reports

    Malfeasance, Misfeasance, or Nonfeasance

    Audit Report Distribution

    Audit Review and Acceptance

    Jump MarkStatutory Authority

    Indiana Code (IC) 20-24-8-5 states in part:  "The following statutes and rules and guidelines adopted under the following statutes apply to a charter school:  (1) IC 5-11-1-9 (required audits by the state board of accounts). . . ."  Indiana Code at 5-11-1-9 gives the State Board of Accounts the responsibility for examining all accounts and all financial affairs of every public office and officer, state office, state institution, and entity disbursing public money.  The State Examiner, in accordance with Indiana Code 5-11-1-7, may engage or allow private examiners to perform this examination.  If so designated, the private examiner must follow the guidelines set out in this document.

    If the State Examiner engages or authorizes the engagement of a private examiner to perform an examination under Indiana Code 5-11-1, the examination and report must comply with the uniform compliance guidelines established by the State Board of Accounts.  If a person or entity subject to examination under this chapter engages a private examiner, the contract with the private examiner must require the examination and report to comply with the uniform compliance guidelines established (IC 5-11-1-24(d)).  These guidelines may be viewed at our website:  www.in.gov/sboa.

    The state or a municipality, including charter schools, may not enter into a contract with an entity subject to examination under Indiana Code 5-11-1 if the contract does not permit the examinations and require the reports prescribed by this chapter (IC 5-11-1-24(d)) and contain the required elements outlined in the "Contract Requirements" section of these guidelines.

    Jump MarkAudit Coordination and Administration

    Audits may be performed by the State Board of Accounts or private examiners approved by the State Board of Accounts.  Coordination of these audits with the State Board of Accounts is required.  We, therefore, require the submission of all charter school audit contracts to us for approval, prior to signing.

    The primary responsibility for ensuring the appropriateness, timeliness, and completeness of a charter school's audit rests with the charter school itself.  However, successful completion of the audit process cannot be accomplished without the direct cooperation and assistance of funding agencies, private examiners, and the State Board of Accounts.  Due to the complexity of government regulations and the uniqueness of existing arrangements and relationships between funding agencies and entities, it is imperative that charter schools and their private examiners confirm in advance, the type and scope of audit necessary to satisfy all parties involved. Audit costs are always the responsibility of the charter school.

    Per Indiana Code 5-11-1-7, private examiners allowed engagements by the State Examiner are subject to the direction of the State Examiner.  Private examiners allowed engagements for services under Indiana Code 5-11 are agents of the State Examiner and are limited to the following powers unless additional authority is granted in writing by the State Examiner.

    Private examiners are entitled to examine any books, papers, documents, or electronically stored information for the purpose of making an examination.  Private examiners are entitled access in the presence of the custodian or the custodian's deputy to the cash drawers and cash in the custody of the officer.  Private examiners may during business hours, examine the public accounts in any depository that has public funds in its custody.

    Indiana Code 5-11-5-1(d) requires a private examiner, acting as an agent of the State Examiner, who determines during an examination under Indiana Code 5-11 that (1) a substantial amount of public funds have been misappropriated or diverted and (2) that the private examiner has a reasonable belief that the malfeasance or misfeasance that resulted in the misappropriations or diversion of the public funds was committed by the officer or an employee of the office, to report the determination to the State Examiner.  These reports shall be sent by email to charterschools@sboa.in.gov immediately upon the conclusion by the private examiner that these conditions have been met.

    If a private examiner is experiencing difficulties in obtaining audit documents needed to complete the audit, communication and coordination with the State Board of Accounts must be made.  The State Board of Accounts can utilize its subpoena authority to assist the private examiner in obtaining the documents needed to complete the audit.  Delay in the completion of an audit should not be allowed to continue without notification to the State Board of Accounts.  The State Board of Accounts will make the determination when to utilize a subpoena to compel the delivery of the documents needed.

    Except as required by Indiana Code 5-11-5-1(b) and Indiana Code 5-11-5-1(d), it is unlawful for any private examiner, before an examination report is made public by the State Examiner's filing, to make any disclosure of the result of any examination of any public account, except to the State Examiner or if directed to give publicity to the examination report by the State Examiner or by any court.

    Communication of audit status, findings, Audit Results and Comments, financial statements, and notes between the private examiner and charter school management (executive director and those running the charter school on a day-to-day basis), and governance (charter school board and organizer) is appropriate and necessary.  It is important for the private examiner to remind management and governance that any discussions between the private examiner and management or governance is not public information or for public disclosure until the report has been filed and publicly released.

    Jump MarkAudit Frequency and Completion

    Audit frequency of charter schools is subject to requirements set forth by the Indiana Department of Education, the charter school's authorizer, the needs of the charter school, and in accordance with Indiana Code 5-11-1-25.  In order to comply with U.S. Department of Education requirements for states that administer the federal Public Charter School Program (PCSP) grant, the Indiana Department of Education requires all Indiana charter schools to undergo an independent audit on an annual basis.

    Audits performed by private examiners are to be completed and all required reports issued within 180 days after the close of the audit period.  Any requests for an extension of time must be made by emailing the State Board of Accounts at charterschools@sboa.in.gov.  The request shall include the reason an extension is needed and the amount of extra time being requested.  Extensions may be granted by the State Board of Accounts for up to an additional 60 days.  Requests for extension must be received no later than 30 days prior to the report deadline indicated above to be considered for approval.  Extensions are not automatic; any request for an extension may be rejected by the State Board of Accounts.  Any extension approval shall be in the form of a written response.  Any charter school that does not have an audit completed and reports submitted by the deadline, or request an extension as indicated above, will have their audit completed by the State Board of Accounts, or by a private examiner selected by the State Board of Accounts.  It will be the sole determination of the State Board of Accounts that an audit has not been engaged for timely in order to meet the deadline and will be performed by, or private examiner selected by, the State Board of Accounts to complete the audit. Audit costs are always the responsibility of the charter school.

    Jump MarkRequest for Proposal and Contract Requirements

    Per Indiana Code 5-11-1-24, the charter school may not request proposals for performing an examination unless the request for proposals has been submitted to and approved, by the State Board of Accounts.  Request for proposals must contain at least the required wording for contracts stated below and shall be submitted by email to charterschools@sboa.in.gov.  If no request for proposal is received by April 15th, the charter school will be contacted regarding the audit.

    The request for proposal must include all of the following:

    To be considered for the audit services, the private examiner selected must meet the following qualifications:

    Be a certified public accountant (CPA) and licensed to practice in the State of Indiana or have a CPA license from a state that has been determined to be in substantial equivalence with the CPA licensure requirements of the State of Indiana in accordance with Indiana Code 25-2.1-4-10(a);

    1.  Meet independence requirements of the American Institute of Certified Public Accountants (AICPA) and the Generally Accepted Government Auditing Standards (GAGAS) issued by the Comptroller General of the United States, as applicable;

    2.  If performing audits under GAGAS, meet continuing professional education requirements in accordance with Government Auditing Standards issued by the Comptroller General of the United States;

    3.  Obtain an external peer review at least once every three years and attain a rating of Pass, or Pass with Deficiencies;

    4.  Have no record of performing substandard audits;

    5.  Understand and comply with applicable uniform compliance guidelines, policies, and directives established by the State Board of Accounts;

    6.  Understand the role of the State Board of Accounts in the audit process and that the IPA is acting as an agent for the State Examiner;

    Upon completion of our review of the request for proposal, we will issue a written approval or rejection of the request for proposal and our reason for any modifications or rejection.

    If the charter school is using the same private examiner used in the prior audit, a request for proposal is not required unless the scope of the examination has changed.  The examiner is still required to submit audit contracts and draft reports prior to audit finalization for our review.

    To obtain approval for a private examiner to audit under Indiana Code 5-11, the audit contract must be submitted to the State Board of Accounts, prior to signing.  Contracts with no reference to or acknowledgment of the responsibility of the State Board of Accounts in this process via reference to State Examiner Directive 2015-2 will be rejected.  Similarly, contracts without the required State Board of Accounts additional language will be rejected.

    The approval of the audit contract by the State Board of Accounts is not an assertion that the audit will satisfy federal funding agencies or other reporting requirements.  The approval is based on limited knowledge of the overall audit requirements and is not to be used as a substitute for thorough planning by the private examiner and charter school.  The State Examiner does not take any responsibility for the audit work completed by the private examiner or the opinion issued.  We will work with the private examiner to provide appropriate audit services, but the ultimate responsibility for audit work remains with the private examiner.

    Jump MarkRequired State Board of Accounts language to be included in the Engagement Letter:

    1.  We acknowledge the oversight responsibilities of the State Board of Accounts for the audits of charter schools.  We will follow the minimum audit requirements and required compliance testing as presented in the "Guidelines for the Audit of Charter Schools Performed by Private Examiners" and the requirements of Directive 2015-2.

    2.  The State Examiner will be notified immediately if there is a misappropriation of funds that is suspected to be the result of malfeasance, misfeasance, or nonfeasance discovered during the course of the private examiner's work.

    3.  The State Examiner will be notified immediately if the books and records are not in a sufficiently satisfactory condition for performing the audit or if a modified opinion is being contemplated.

    4.  The State Board of Accounts will receive a draft copy of the audit report for review at least 5 days prior to finalization of the audit report, as well as any separate communication to the entity's management, such as a management letter or governance communication letter.

    5.  The State Board of Accounts will also be provided the names, email addresses, and postal addresses of the governing board president, chief financial officer, and chief executive officer of the entity and the entity's private examiner contact.

    6.  Upon approval of the draft report and finalization of the audit report, a copy of the audit report will be provided to the State Board of Accounts in an unlocked pdf or Microsoft Word file.  These flies will be provided within 10 business days of the report being issued by the private examiner.

    7.  The State Board of Accounts will be notified of the date, time, and location the results of the audit will be discussed with entity officials (exit conference) at least 5 business days prior to the meeting by email.

    8.  All documentation used to support the audit report as well as any separate communication to the entity's management will be available for review by the State Board of Accounts at the State Examiner's discretion.

    9.  All correspondence with be via the following email address:  charterschools@sboa.in.gov.

    Jump MarkAuditing Standards to be Applied

    Audits performed in compliance with these guidelines must be conducted in accordance with auditing standards generally accepted in the United States of America (GAAS).  Revisions to these standards are to be incorporated at their earliest effective date, as established by the AICPA.

    Charter schools that receive and expend federal awards are subject to the provisions of the Uniform Guidance and, if meet the Single Audit thresholds, must also be performed in accordance with Government Auditing Standards, issued by the Comptroller General of the United States.  Revisions to these standards are to be incorporated at their earliest effective date, as established by the Comptroller General of the United States.

    Jump MarkAudit Reports

    Financial Audit Report

    The financial report must contain the financial statements of the charter school and the private examiner's opinion thereon.  The financial statements may be prepared on the GAAP basis.  If the charter school is required to have a Single Audit, the report must include a Schedule of Expenditures of Federal Awards (SEFA).

    If a Uniform Guidance audit is required, two additional reports must be issued:

    1.  Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance with Government Auditing Standards.

    2.  Report on Compliance with Requirements That Could Have a Direct and Material Effect on Each Major Program and on Internal Control Over Compliance in Accordance with the Uniform Guidance.

    The private examiner is required to comply with all other applicable reporting requirements in accordance with the Uniform Guidance.  The Schedule of Expenditures of Federal Awards and notes shall be presented in the format provided in Exhibit D.

    The financial audit report shall include a reference to any other reports issued by the private examiner for the charter school.

    Supplemental Report

    In addition to the findings required to be included in the financial audit report for compliance with Government Auditing Standards and the Uniform Guidance, a supplemental report is required to be issued to identify noncompliance with laws, regulations, and the Accounting and Uniform Compliance Guidelines Manual for Indiana Charter Schools established by the State Board of Accounts.

    Indiana Code 5-1-11-9(d) states that on every examination performed, inquiry shall be made as to:

    (1) The financial condition and resources of each municipality, office, institution, or entity;

    (2) Whether the laws of the State of Indiana and the Accounting and Uniform Compliance Guidelines Manual for Indiana Charter Schools issued by State Board of Accounts established under the authority of IC 5-11-1-24 have been complied with.  Exhibit A identifies the required minimum compliance testing.  In addition to the required minimum compliance testing, the audit shall include additional compliance testing as deemed necessary for the risks identified during the examination process; and

    (3) The methods of preparation and accuracy of the accounts and reports of the charter school.

    For audits not required to be conducted in accordance with Government Auditing Standards and the Uniform Guidance, internal control issues that rise to the level of a significant deficiency or material weakness must be included as an Audit Result and Comment in the Supplemental Report.

    If a compliance issue is identified during the compliance review and the noncompliance is deemed by the private examiner to be in excess of the parameters set out in Exhibits A and B, a written comment must be included in a supplemental report.  The written comment shall be written in accordance with Exhibit B.

    The supplemental report is not required to be issued for charter schools where no instances of noncompliance were found.

    A supplemental report shall include a transmittal letter, which references the financial audit report, any findings of noncompliance, any internal control findings that are deemed significant deficiencies or material weaknesses, which were not reported in the financial audit report in an audited conducted in accordance with Government Auditing Standards and the Uniform Guidance, a schedule of officials examined, and documentation of the exit conference.

    The supplemental report shall also include any response from the school officials concerning the audit.  Per Indiana Code 5-11-5-1, before an examination report is signed, verified, and filed, the officer of the state office, municipality, or entity examined must have an opportunity to review the supplemental report and to file a written response to that report.  If a written response is filed, it shall be submitted by the entity to the private examiner and become a part of the supplement report.  An example of this supplemental report is presented in Exhibit C.

    Jump MarkMalfeasance, Misfeasance, or Nonfeasance

    Any fraud identified or brought to the attention of the private examiner, such as misappropriation, embezzlement or other illegal acts shall be reported by the private examiner, immediately upon discovery, to the State Board of Accounts via email to charterschools@sboa.in.gov.  The State Examiner retains the authority to and shall investigate any malfeasance, misfeasance, or nonfeasance identified by the private examiner.  If the circumstances indicate that a more detailed investigation is needed than necessary under ordinary circumstances, the private examiner shall inform the organization's management and those charged with governance in writing of the need for such additional investigation and the additional compensation required as a result of the additional work needed.  An amendment to the audit contract may be made by the charter school and private examiner for such additional investigation, with the written approval of the State Examiner.

    Jump MarkAudit Report Distribution

    Audits performed under the Uniform Guidance must have a completed Data Collection Form included in the reporting package that will be prepared by the charter school and private examiner.  The private examiner is responsible for uploading the reporting package and completing all auditor certification emails after the State Board of Accounts approves the financial audit report and supplemental report for issuance.

    Upon completion of the audit, the draft financial report, and supplemental report  if applicable, shall be emailed to the charterschools@sboa.in.gov email address prior to report finalization.  The reports will be reviewed and any review comments deemed necessary will be returned to the private examiner via email.  The reports shall not be issued until reviewed by the State Board of Accounts and approval for audit finalization granted.  Therefore, the private examiner cannot disclose any information gained from the audit process prior to this approval, except as allowed under Indiana Code 5-11-5-1(b) and Indiana Code 5-11-5-1(d).  When approval is received from the State Board of Accounts, the private examiner shall issue the reports to the charter school.  Additionally, the private examiner is responsible, after the State Board of Accounts approval, to file the report with federal awarding agencies and pass-through entities when an audit is performed in accordance with Government Auditing Standards and/or the Single Audit Act.

    The financial audit report and supplemental compliance report will be posted to the State Board of Accounts public website and distributed as required by Indiana Code 5-11-5-1(a) after approval of the reports has been given to the private examiner.

    Private examiners are responsible for providing copies of all separate communications containing results of work performed being communicated to the charter school's management, such as management letters and governance communication letters, to the State Board of Accounts.  If a management letter or any other reports or correspondence relating to other matters involving internal controls or noncompliance are issued in connection with this audit, a copy shall be submitted with the draft report with the State Board of Accounts.  Such management letters, reports, or correspondence shall be consistent with the findings published in the financial audit report or supplemental report (i.e., they shall not include any items that shall be disclosed in the findings found in the published financial audit report or supplemental report, but were not).  Submission of these separate communications shall be submitted in the form, time, and process specified above.  These items will not be posted or distributed as specified above.  There shall be no written communication between the private examiner and the charter school that is not shared with the State Examiner.  The private examiner is serving as an agent of the State Examiner and approval of the charter school is not required in order to share any written communication, including work papers, with the State Board of Accounts.

    Jump MarkAudit Review and Acceptance

    Due to our oversight responsibility for audits performed in accordance with Indiana Code 5-11-1-9, a quality control review of a private examiner's work for sufficiency in scope and adequacy in quality may be performed at the State Examiner's discretion. This review will be performed at the discretion of the State Examiner and prior approval from the charter school for release of the workpapers to the State Board of Accounts is not required. In addition to a quality control review of the audit, we will evaluate findings of noncompliance for further action required of this department.  The auditee will be responsible for any cost related to any review performed by the State Board of Accounts. Any reports submitted to the State Board of Accounts shall be at no cost to the State Board of Accounts.

  • Required Compliance Testing

    Compliance Steps

    Prescribed Forms

    Verify Proper Bonding

    Verify Submission and Accuracy of Required Reports

    Open Door Law

    Conflict of Interest

    Monthly Reconcilements

    Capital Assets

    Vendor Disbursements

    Travel

    Credit Cards

    Public Works

    Payroll

    Withholdings

    Curricular Materials (Textbooks)

    Internal Controls (Management Company)

    Extracurricular Activities

    Ticket Sales

    Jump MarkCOMPLIANCE STEP: PRESCRIBED FORMS

    The State Board of Accounts is charged by law with the responsibility of prescribing and installing a system of accounting and reporting which shall be uniform for every public office and every public account of the same class and contain written standards that an entity that is subject to audit must observe.  The system must exhibit true accounts and detailed statements of funds collected, received, obligated and expended for or on account of the public for any and every purpose.  It must show the receipt, use and disposition of all public property and the income, if any, derived from the property.  It must show all sources of public income and the amounts due and received form each source.  Finally it must show all receipts, vouchers, contracts, obligations, and other documents kept, or that may be required to be kept, to prove the validity of every transaction.  [IC 5-11-1-2]

    The system of accounting prescribed is made up of the uniform compliance guidelines and the prescribed forms.  A prescribed form is one which is put into general use for all offices of the same class.

    Computer hardware, software and application systems can now produce exact replicas of the forms prescribed by the State Board of Accounts.  An exact replica of a prescribed form is a computerized form that incorporates all of the same information as the manual prescribed form.  Prescribed form replication is the preferred approach from the State Board of Accounts' position.  These exact replicas are the equivalent of the prescribed form and require no further action for the charter school to install the form within their accounting system.

    The use of computer-generated prescribed forms shall be brought to the attention of the private examiner during the next regularly scheduled audit.  The forms and computer system generating the forms are subject to a technical computer audit based upon the results of the risk assessment.

    Units are required by law to use the forms prescribed by this department. However, if it is desirable to use a form other than the prescribed manual form, that is not an exact replica; the new form must be approved by State Board of Accounts.

    All forms previously approved by sending copies to State Board of Accounts and receiving a form approval letter are approved with the conditions contained within this section.

    After April 1, 2014, if a unit implements, consistent with the provisions of Indiana Code and Uniform Compliance Guidelines, an automated accounting system that is to be considered for approval, the responsible official is not required to maintain the prescribed forms replaced by the automated system while awaiting the approval.  New forms must be in place during at least one (1) State Board of Accounts audit and must not be an element of an audit finding or audit result and comment that is responsible or partially responsible for an exception found during an audit to be considered approved.  The unit is responsible for placing on new forms the year of installation in the upper right corner.  This reference should be similar to "Installed in ______________ Charter School, (Year)."  The charter school must maintain and present for audit a log of forms installed after April 1, 2014 with the year installed for all forms that replace forms prescribed by State Board of Accounts.

    The unit agrees to comply with the following conditions, if applicable, for any new forms installed.

    1.  The forms and system installed are subject to review and/or recommendations during audits of the unit to ensure compliance with current statutes and uniform compliance guidelines.

    2.  The unit shall continue to maintain all prescribed forms not otherwise covered by an approval.

    3.  All transactions that occur in the accounting system must be recorded and accessible upon proper request.  Transactions can be maintained electronically, with proper backups, microfilmed, or printed on hardcopy.  These transactions include, but are not limited to, all input transactions, transactions that generate receipts, transactions that generate checks, master file updates, and all transactions that affect the ledgers in any way.  The system must be designed so that changes to a transaction file cannot occur without being processed through an application.

    4.  The ability must not exist to change data after it is posted.  If an error is discovered after the entry has been posted, then a separate correcting entry must be made.  Both the correcting entry and the original entry must be maintained.

    5.  If the unit owns the source code, sufficient controls must exist to prevent unauthorized modification.  If the unit does not own the source code, the vendor shall provide representatives of the State Board of Accounts with access to all computer source codes for the system upon request for audit purposes.  In addition, the vendor shall provide representatives of the State Board of Accounts with a document describing the operating system used, the language that the source code is written in, the name of the compiler used, and the structure of the data files including data file names, data file descriptions, field names, and field descriptions for the system.

    6.  Any receipts, checks, purchase orders, or other forms that require numbering shall be either prenumbered by an outside printing supplier or numbered by the units computer system with sufficient controls installed in the system to prevent unauthorized generation of the form or duplication of numbers.

    7.  All receipts must be either in duplicate or recorded in a prescribed or approved register of receipts.

    8.  All checks must be either in duplicate or recorded in a register of checks generated by the computer.

    9.  Recap sheets for each deposit for deposit advices, if applicable, will be maintained indicating direct deposits.  Individual wage assignment agreements will be kept on file to support direct deposit.

    10. "Installed by __________ Charter School, (Year)" shall be printed, in the upper right corner, on each approved form furnished by a printing supplier and, when practical, on those printed from accounting systems at the unit.  Upon the installation of a new form the form will be entered on a log for this purpose with the date of installation; and the name and number of the prescribed form replaced.  The log must be available for audit.

    11. The unit officials are responsible to ensure that forms and accounting systems installed comply with the uniform compliance guidelines for information technology services published in the Charter School Administrator and accounting manuals.  This includes ensuring that customization of the system done by the vendor for implementation at the government is done in such a manner that the system remains compliant.

    12. In the event a change is required due to the passage of a State or Federal law, the unit agrees to implement the change in a timely manner.

    Although the State Board of Accounts prescribes forms, copies of the forms must be purchased from a public printer or other source.

    Use of Prescribed Forms

    Officials and employees are required to use State Board of Accounts prescribed or approved forms in the manner prescribed.

    Audit Procedures:

    Review prescribed form usage to determine that the charter school is using prescribed or approved forms.

    Determine that alternate computer forms include at a minimum, the information on the prescribed form.

    Jump MarkCOMPLIANCE STEP: Jump MarkVERIFY PROPER BONDING

    The organizer shall designate employees who are responsible for handling a majority of the cash, receipts, and disbursements for the school.  The designated employees must have either a cash bond or an insurance policy on their behalf that protects the charter school from employee theft, fraud, errors, and omissions. The cash bond or insurance policy shall be established at an amount approved by the board.

    Audit Procedures:

    Verify that the organizer has designated an employee or employees who are responsible for handling the majority of the cash, receipts, and disbursements for the school.

    Determine that the designated employees have either a cash bond or an insurance policy on their behalf.  Retain a copy of the bond or insurance policy for inclusion in the audit documentation.  If there is no cash bond or insurance policy on the individual designated, which protects the charter school from theft, fraud, errors, and omissions, an Audit Result and Comment (ARC) must be written.

    Jump MarkJump MarkCOMPLIANCE STEP: VERIFY SUBMISSION AND ACCURACY OF REQUIRED REPORTS

    AVERAGE DAILY MEMBERSHIP (ADM)

    Officials shall maintain records (enrollment applications, attendance records, reporting forms, etc.) which substantiate the number of students claimed for ADM. A student claimed for ADM must be an "eligible pupil".  An eligible pupil is a student that is enrolled and attending.

    IC 20-43-1-11:  "'Eligible pupil' refers to an individual who qualifies as an eligible pupil under IC 20-43-4-1".

    IC 20-43-1-11.5 defines "Enrolled" as registered with a school corporation to attend educational programs offered by or through the school corporation; and attending these educational programs or receiving education services.

    IC 20-43-1-7.5 defines "Attending" as physical or virtual presence of a student with the expectation of continued services in the education programs for which the student is registered.

    The Organizer is responsible for reporting ADM to the Indiana Department of Education (IDOE).  The ADM Summary Report shall provide a written certification of ADM to properly document responsibility.  The ADM Summary Report must be signed by the Superintendent/Principal/Director of Schools and the Trustee/Corporate Treasurer and be uploaded to IDOE for each reporting period in the fiscal year.  Supporting documentation of enrollment and attendance/engagement information by grade and school must be maintained for audit.

    ANNUAL REPORT

    Annual Financial Report (AFR) - SBOA

    Charter schools are required to file an annual report with the State Examiner not later than sixty (60) days after the close of each fiscal year, IC 5-11-1-4.

    Certified Report (100R) - SBOA

    Indiana Code 5-11-13-1(a) states in part:
    "Every state, county, city, town, township, or school official . . . shall during the month of January of each year prepare, make, and sign a certified report, correctly and completely showing the names and business addresses of each and all officers, employees, and agents . . . and the respective duties and compensation of each, and shall forthwith file said report in the office of the state examiner of the state board of accounts . . . The certification must be filed electronically in the manner prescribed under IC 5-14-3.8-7."

    Form 9 - IDOE

    Charter schools are required to submit a Form 9 Biannual Financial Report two times per year during the months of January and July.  The financial information in the Form 9 shall reflect cash basis information and shall be reported utilizing the State Board of Accounts prescribed chart of accounts.  The January report must include previous calendar year financial and other required information for the period of July 1 to December 31 financial data.  The July report must include current calendar year financial and other required information for the period of January 1 to June 30.

    Charter schools must file Form 9 information electronically with the Office of School Finance. Questions related to Form 9 filing and other requirements can be directed to staff in the Office of School Finance at 317-232-0840 or by emailing form9@doe.in.gov.

    Audit Procedures:

    ADM Reporting:

    1.  Gain and document an understanding of the charter school's procedures to ensure accurate reporting of ADM.

    2.  Assess overall Risk of Material Noncompliance for ADM reporting.  If the school is a virtual school, the inherent risk must be established as high.

    3.  Obtain the ADM Summary Report for each count date as submitted to IDOE and determine that it was signed by the appropriate officials (the Superintendent/Principal/Director of Schools and the Trustee/Corporate Treasurer).

    4.  Obtain the ME Roster Download from the school and compare in total to the Summary Reports.

    5.  Verify that the ADM counts reported were proper by selecting a sample of students and test that each student claimed was:

    a.  properly enrolled; and

    b.  attending.

    Required Amount of Testing:

    The auditor should determine an appropriate sample size based on assessed risk; however, a minimum sample size of 10% of students or 60, whichever is less, shall be tested for a school with a low assessed risk. Sample sizes should be increased for an assessment other than low.

    For an organizer that has more than one school, a separate sample from each school is required.

    Samples should include students from both count dates in the school year.

    If a school is not fully virtual, but does have some virtual students, the sample must be stratified to include both virtual and non-virtual students.

    Auditor Considerations:

    Properly Enrolled

    Enrollment documents required to be maintained on file by the school have not been defined by IDOE.  Records, such as paper or electronic enrollment applications, as well as copies of birth certificates and proof of residency, etc. as determined by policy or normal practice of the school should be reviewed.  Ensure that for each student sampled that the records maintained are consistently applied across students. Lack of records for certain students could be an indicator that a student was not properly enrolled.

    Attending

    The auditor should review attendance/engagement records for the sampled students.  A student should be physically present on the official count date unless officially marked absent (for brick and mortar schools).  For any student absent on the count date, attendance records for the student should be reviewed.

    For virtual schools, IDOE has not defined what constitutes sufficient engagement.  Ensure that for each sampled student, documentation presented by the school demonstrates that the student had evidence of engagement within the two (2) weeks prior to the official count date.  Records such as class schedules, login records for learning management systems showing login dates and times and completion of course assignments, and teacher logs for students showing engagement with a student could be acceptable support demonstrating student engagement.  If there was no evidence of student engagement for the sampled student within the two (2) week period prior to the count date, the auditor should review the school's engagement policy to determine if the school was in compliance with its engagement policy for progressive student and parent contact during the period of no student engagement, up to and including removal of the student for lack of engagement.

    Lack of records that the student was in attendance on the count date or was engaged (logging in, completing assignments in a learning management system) is an indicator that the student did not meet the definition of attending.

    Reporting Requirements:

    If there are ANY exceptions to the properly enrolled or attending attributes, an ARC is mandatory.

    In the condition paragraph of the ARC, include the sample size and number of exceptions found.  If a student was not in attendance on the count date (brick and mortar school) or engaged in the two weeks prior to the count date (virtual schools), consider the student an exception to the attending/engaged attribute. Include in the condition paragraph the number of exceptions and detail describing the nature of the exception such as lack of indication of student engagement, lack of supporting records maintained, etc.

    For the students considered exceptions to the attending/engaged attribute, also include in the condition paragraph whether the school was in compliance with its engagement policy (virtual schools) for progressive student and parent contact during the period of no student engagement up to and including removal of the student for lack of engagement.

    All ARCs will be reviewed by SBOA prior to approval for exit.  During the audit, a firm may communicate any testing concerns or questions to the charter school email address (charterschools@sboa.in.gov).

    Annual Financial Report (AFR) - SBOA

    1.  Verify that the charter school filed the AFR with the SBOA within 60 days following its fiscal year end.

    Certified Report (100R) - SBOA

    1.  Verify that the charter school filed the 100R with the SBOA by January 31st.  Scan to ensure 100R appears complete.

    Reporting Requirements (applicable to both AFR and 100R):

    Submission of the 100R and AFR are to be made via the Indiana Gateway for Governmental Units (Gateway).

    If the AFR or 100R was filed between 1 and 6 days late, make this a discussion only issue (verbal comment).  If it was filed between 7 and 59 days late, a comment must be reported in a Management Letter to the school.  If the AFR was filed 60 or more days late, a mandatory ARC must be written.

    Form 9 (IDOE)

    1.  Verify that the Form 9 Financial Information agrees to the cash records of the charter school.

    a.  Obtain management's schedule or reconciliation between the Form 9 summary data and the general ledger.

    b.  Trace the fund balance report activity from the accounting system to the Form 9 report.

    2.  Verify that the financial information is reported utilizing the Chart of Accounts prescribed by the State Board of Accounts.

    a.  Did the financial information utilize the prescribed funds, per Part 3, Uniform Compliance Guidelines for Indiana Charter Schools.  Document how auditor determined proper funds usage.

    b.  Did the financial information utilize the prescribed receipt codes, per Part 4, Uniform Compliance Guidelines for Indiana Charter Schools.  Document how auditor determined proper receipt code usage.

    c.  Did the financial information utilize the prescribed expenditure codes, per Part 5, Uniform Compliance Guidelines for Indiana Charter Schools.  Document how auditor determined proper expenditure code usage.

    Reporting Requirements:

    If the Form 9 Financial Information does not agree to the cash records of the school an ARC is mandatory unless clearly trivial.

    If the charter school does not utilize the State Board of Accounts Chart of Accounts to maintain and report the school's financial activity an ARC is mandatory.

    Jump MarkJump MarkCOMPLIANCE STEP: OPEN DOOR LAW

    MEETINGS OF THE CHARTER SCHOOL'S BOARD

    The Charter School's charter must specify that the charter school is subject to the requirements of IC 5-14-1.5, Public Meetings (Open door) Law. IC 20-24-4-1(a)(15)

    Indiana Open Door Law

    Board meetings are governed by the Open Door Law, IC 5-14-1.5.  Under the Open Door Law all meetings of governing boards must be open to the public except for executive sessions.

    Audit Procedures:

    Verify that the school's charter specifies that the charter school is subject to the requirements of the Open Door Law.

    Verify that the Open Door Law was observed for applicable meetings.

    Jump MarkJump MarkCOMPLIANCE STEP: CONFLICT OF INTEREST

    CONSULTANTS - STATUTORY CONFLICT OF INTEREST [IC 5-16-11]

    Audit Procedures:

    Review Part 13 of the charter school manual as well as IC 5-16-11 and determine that the appropriate conflict of interest statements have been filed.  Conflict of Interest statements shall also be provided to the State Board of Accounts.

    Jump MarkJump MarkCOMPLIANCE STEP: MONTHLY RECONCILEMENTS MAINTAINED

    All financial records must be kept up-to-date and reconciled monthly.

    Audit Procedure:

    Determine if the charter school is reconciling their accounts monthly.  Failure to comply with this requirement results in a mandatory ARC.

    Jump MarkREVIEW OF CAPITAL ASSETS

    CAPITAL ASSETS

    Every charter school must have a capital assets policy that details the threshold at which an item is considered a capital asset.  Every charter school must have a complete detail listing of all capital assets owned which reflects their acquisition value.  A complete physical inventory must be taken at least every two (2) years, unless more stringent requirements exist, to verify account balances carried in the accounting records.

    The list of capital assets should include the following categories:

    Land

    The records of each charter school must include a description of land owned by the charter school, its location amount of acreage (if relevant), its acquisition date and the purchase price. If the purchase price is not available, appraised value may be used.

    Infrastructure

    A capital asset account for the cost of infrastructure must reflect the location and brief description identifying each road, bridge, tunnel, drainage system, storm water system, dam, or lighting system owned by the charter school.

    Buildings

    A capital asset account for buildings must reflect the location of each building and the purchase price or construction cost and the cost of improvements, if applicable.  If a building is acquired by gift, the account must reflect its appraised value at the time of acquisition.

    Improvements Other than Buildings

    A capital asset account must reflect the acquisition value of permanent improvements, other than buildings, which have been added to the land.  Examples of such improvements are fences, retaining walls, sidewalks, and gutters.  The improvements must be valued at the purchase or construction cost.

    Equipment

    Tangible property of a permanent nature (other than land, buildings, and improvements) must be inventoried.  Examples include machinery, trucks, cars, furniture, office equipment including but not limited to computers and data processing equipment, and desks, safes, cabinets, books, cell phones, etc.  The value of such items must be carried in the inventory at the purchase cost.

    Construction Work in Progress

    Where construction work has not been completed in the current reporting fiscal year, the cost of the project must be carried as "construction work in progress."  When the project is completed, it must be placed on the inventory applicable to the assigned asset account.

    Asset Ownership

    Assets purchased by a charter school must be titled appropriately in the name of the charter school.

    Audit Procedures:

    Determine that the charter school has maintained an up to date capital asset inventory.

    Verify that the charter school has conducted a physical inventory within the last two (2) years.

    Verify that all assets purchased by the charter school were titled in the name of the charter school.

    Jump MarkJump MarkCOMPLIANCE STEP: RECEIPTS AND DEPOSITS

    RECEIPTS AND DEPOSIT

    Receipts shall be issued and recorded at the time of the transaction; for example, when cash or a check is received, a receipt is to be immediately prepared and given to the person making payment.

    All charter school money must be deposited in the designated depository not later than the business day following the receipt of funds on business days of the depository in the same form in which the funds were received.  Timely receipts and deposits are required to provide the organizer and charter school administration with current information necessary for all financial decisions.

    Fees

    Fees shall only be collected as specifically authorized by statute or properly authorized resolutions or ordinances, as applicable, which are not contrary to statutory or Constitutional provisions.

    Fund Sources and Uses

    Sources and uses of funds shall be limited to those authorized by the enabling statute, ordinance, resolution, or grant agreement.

    Audit Procedures:

    Select receipts of public funds (See Required Amount Testing) and perform the following:

    • Were receipts issued at the time of transaction, when cash or check was received?
    • Were timely deposits made?
    • Were receipts properly secured prior to deposit?

    Determine if the classification on the receipt (i.e., cash, check, etc.) agrees with the actual amounts of cash, checks, etc., shown on the deposit slip to insure deposits are made in the same form received.  Further review is required if discrepancies exist (i.e., check for cash substitution).

    Determine that the collection is properly receipted into the proper fund based on the source of the collection in accordance with the prescribed chart of accounts.

    If any receipts selected are fees established by the charter school board, determine that the fees are collected in accordance with a fee schedule adopted by the charter school board.

    Required Amount of Testing:

    A minimum of 25 receipts shall be tested when no deviations are expected to be found.  This would be a charter school with a planned or supported assessed level of control risk as low.

    A minimum of 40 receipts shall be tested when 1 deviation is expected to be found.  This would be a charter school with a planned or supported assessed level of control risk as moderate.

    A minimum of 60 receipts shall be tested when three or more deviations are expected to be found. This would be a charter school with a planned or supported assessed level of control risk as high.

    An ARC is mandatory if there is a 10 percent or greater error rate with any one of the attributes tested.

    If deposits were not made at least twice a week, an ARC is mandatory.

    Jump MarkJump MarkCOMPLIANCE STEP: VENDOR DISBURSEMENTS

    PURCHASING AND EXPENDITURES

    The charter school must establish procedures for the initiation, approval, and use of purchase requisitions and purchase orders.  The procedures must include limits on approval of purchase orders after the purchase to emergency situations and all blanket purchases must have a fixed monetary limit.  Upon receipt of the goods or services a charter school employee must verify the condition, quantity, and quality of the goods or services prior to payment of the invoice/bill/contract.  Supporting documentation, such as invoices, shall be compared to purchase orders to ensure the prices, quantities, etc. are correct prior to payment.

    ACCOUNTS PAYABLE VOUCHER (FORM 523)

    The Accounts Payable Voucher (Form 523) is designed to replace Claim Form 505.  The form must be used in accordance with the following conditions:  Charter schools may not draw a warrant or check for payment of a claim unless; (1) there is a fully itemized invoice or bill for the claim; (2) the invoice or bill is approved by the officer or person receiving the goods and services; (3) the invoice or bill is filed with the fiscal officer; (4) the fiscal officer audits and certifies before payment that the invoice or bill is true and correct; and (5) payment of the claim is allowed by the board having jurisdiction over the allowance of the payment of the claim.

    Advance Payments

    Compensation and any other payments for goods and services shall not be paid in advance of receipt of the goods or services unless specifically authorized by statute.  Payments made for goods or services which are not received may be the personal obligation of the responsible official or employee.

    Cash Disbursements

    Disbursements, other than properly authorized petty cash disbursements, shall be by check or warrant, not by cash or other methods unless specifically authorized by statute, federal or state rule.

    Contracts

    Payments made or received for contractual services must be supported by a written contract.  Each charter school is responsible for complying with the provisions of its contracts.

    Donations

    Public funds must not be donated or given to other organizations, individuals, or charter schools unless specifically authorized by statute.

    Expense Reimbursement Itemization

    All claims, invoices, receipts, and accounts payable vouchers shall contain adequate detailed documentation.  All claims, invoices, receipts, and accounts payable vouchers regarding reimbursement for meals and expenses for individuals must have specific detailed information of the names of all individuals for which amounts are claimed, including the nature, name, and purpose of the business meeting, to enable payment. Payments which do not have proper itemization showing the business nature of the claim may be the personal obligation of the responsible employee or other person for whom the claim is made.

    Personal Expenses

    Public funds shall not be used to pay for personal items or for expenses which do not relate to the functions and purposes of the charter school.  Any personal expenses paid by the charter school may be the personal obligation of the responsible employee.

    Penalties, Interest, and Other Charges

    Officials and employees have the duty to pay claims and remit taxes in a timely fashion.  Additionally, officials and employees have a responsibility to perform duties in a manner which would not result in any unreasonable fees being assessed against the governmental unit.  Any penalties, interest or other charges paid by the governmental unit may be the personal obligation of the responsible official or employee.

    Sales Tax

    Charter schools are eligible for an exemption from the state sales tax on purchases.  To obtain the exemption for a Sales Tax Exemption Certificate, application shall be made to the Sales Tax Division of the Department of Revenue.  This certificate must be presented at the time a purchase is made to avoid paying sales tax.  If sales tax is paid erroneously, a refund application may be obtained from the Sales Tax Division.

    Lodging for individuals in hotels and motels is not exempt from state sales tax.  Therefore, reim- bursements for lodging in approved travel status may include state sales tax.  However, it shall be kept in mind that claims for all such reimbursements must be supported by a fully itemized receipt showing date(s) of lodging, the name(s) of the person(s) occupying the room and the amount paid.

    Governmental funds generally are exempt from the payment of sales tax on qualifying purchases. Respective tax agencies shall always be contacted concerning tax exemptions and payments.

    Audit Procedures:

    For selected vendor checks or Electronic Fund Transfers (EFTs) (see required minimum testing) perform the following:

    1. Determine if the voucher or attached invoice is adequately itemized.
    2. Check math accuracy.
    3. Determine if certified by the employee designated.
    4. Determine if approved by the approving board.
    5. If payment for a contractual service, is there a written contract?  Compare to contract price, if applicable.
    6. Compare accounts payable voucher amount to supporting documentation and check amount, if applicable.  Supporting documentation must be detailed, not just a statement or credit card slip.
    7. Determine that sales tax was not paid inappropriately; note that sales tax can be reimbursed for nonexempt purchases, including lodging.
    8. Verify that payment was not made in advance.
    9. Verify that payment was made timely, not incurring any late fees.  If any penalties or interest are paid due to untimely payment, an ARC is required to be written detailing the amount of penalties and interest paid.
    10. Verify that payment was not made by cash.
    11. Determine that payment was not a donation.
    12. Determine that expense was not a personal expense, but was attributable to the operation of the charter school.

    Required Amount of Testing:

    A minimum of 25 vendor disbursements shall be tested when no deviations are expected to be found. This would be a charter school with a planned or supported assessed level of control risk as low.

    A minimum of 40 disbursements shall be tested when 1 deviation is expected to be found. This would be a charter school with a planned or supported assessed level of control risk as moderate.

    A minimum of 60 receipts disbursements shall be tested when three or more deviations are expected to be found.  This would be a charter school with a planned or supported assessed level of control risk as high.

    An ARC is mandatory if there is a 10 percent or greater error rate with any one of the attributes tested.

    An ARC is mandatory if disbursements are not approved by the Board.  Approval of disbursements can be made at a subsequent Board meeting.

    Jump MarkJump MarkCOMPLIANCE STEP: SPECIFIC TESTING ON TRAVEL CLAIMS

    TRAVEL AND MEETINGS

    The charter school must establish a travel policy that details the procedures for an employee to get approval to attend meetings and conferences; must detail when an employee is in travel status; must detail the procedures for employees to get reimbursement for travel expenses; and the policy must establish a reasonable mileage reimbursement rate.

    If the charter school authorizes travel advances, it must have a policy identifying the individual who may receive an advance, the use and purpose of the advance, the information that is required to account for the advance, a reconciliation of actual expenses (upon return for the trip) versus amounts advanced, and the refunding of any excess money that was in advanced in a timely manner.

    The charter school shall only reimburse employees for travel expenses when appropriate claims are submitted.  The claims must be in writing, itemized, and supported with original receipts, and documentation that the trip was for charter school business.

    The charter school must establish a policy which describes the circumstances when it is appropriate for providing food and beverages at meetings, training, and conferences sponsored by the charter school.

    Commuting Mileage

    Reimbursed mileage shall not include travel to and from the employee's home and the charter school building in which he works, unless otherwise authorized by statute.

    Audit Procedures:

    Determine if the charter school has adopted a travel policy.  Obtain a copy of the travel policy in the audit documentation.

    If the travel policy allows for advances, test advances provided (number to be determined by examiner) for proper handling.

    Perform a test (number to be determined by examiner) of travel reimbursements to determine that appropriate claims have been submitted.

    • Claims are in writing.
    • Claims are properly itemized.
    • Claims are supported by original receipts.
    • Proper documentation was provided that the trip was for charter school business.

    For mileage reimbursements, if applicable, determine that mileage does not include travel to and from the employee's home or building of employment.  Also determine that the mileage rate of pay agrees to the charter school's travel policy.

    Jump MarkJump MarkCOMPLIANCE STEP: REVIEW CREDIT CARD POLICY, PROCEDURES, AND DISBURSEMENTS

    Credit Cards

    The State Board of Accounts will not take exception to the use of credit cards by a charter school provided the following criteria are observed:

    1.  The charter school must authorize credit card use through an appropriate policy.

    2.  Issuance and use shall be handled by an employee designated by the charter school.

    3.  The purposes for which the credit card may be used must be specifically stated in the policy.

    4.  When the purpose for which the credit card has been issued has been accomplished, the card must be returned to the custody of the designated employee.

    5.  The designated employee must maintain an accounting system or log which would include the names of individuals requesting usage of the cards, their position, estimated amounts to be charged, fund and account numbers to be charged, date the card is issued and returned, etc.

    6.  Credit cards shall not be used to bypass the accounting system.  One reason that purchase orders are issued is to provide the fiscal officer with the means to encumber and track expenses to provide the charter school and other administration with timely and accurate accounting information and monitoring of the accounting system.

    7.  Payment shall not be made on the basis of a statement or a credit card slip only.  Procedures for payments shall be no different than for any other claim. Supporting documents such as paid bills and receipts must be available.  Additionally, any interest or penalty incurred due to late filing or furnishing of documentation by an officer or employee shall be the responsibility of that officer or employee.

    8.  If properly authorized, an annual fee may be paid.

    Audit Procedures:

    Determine if the following criteria for the use of credit cards have been observed:

    a.  Charter School has appropriately adopted a credit card policy. Retain a copy of the policy in the audit documentation.

    b.  Issuance and use is handled by an official or employee designated by the charter school.

    c.  The purpose for which the credit card may be used is specifically stated in the policy

    d.  When the purpose for which the card has been issued has been accomplished, the card is returned to the custody of the responsible official.

    e.  The designated responsible official or employee maintains an accounting system or log which includes the names of individuals requesting usage of the cards, their position, estimated amounts to be charged, fund and account numbers to be charged, and the date the card is issued and returned.

    f.  Credit cards are not used to bypass the accounting system.

    g.  Payment is not made on the basis of a statement or a credit card slip only.  Procedures for payments are processed the same as for any other claim. Supporting documents such as paid bills and receipts are available.  Any interest or penalty incurred due to late filing or furnishing of documentation by an officer or employee is the responsibility of that officer or employee.

    h.  Annual fees, if applicable, must be authorized by the management of the charter school and/or organizer.

    i.  Required minimum testing, select a minimum of 5 credit card payments for testing, if any interest or penalties are paid due to untimely payment, an ARC is required to be written detailing the amount of penalties and interest paid.

    Jump MarkJump MarkCOMPLIANCE STEP: REVIEW COMPLIANCE WITH PUBLIC WORKS LAWS

    GENERAL PROVISIONS

    When a charter school uses public funds for the construction, reconstruction, alteration, or renovation of a public building, bidding and wage determination laws and all other statutes and rules apply, IC 20-24-7-7.

    Audit Procedures:

    For projects that meet the definition of public works (IC 36-1-12), test the following:

    • Were Specifications for the project appropriately prepared?
    • Was the bid sought through the proper advertisement?
    • Was the bid Form 96 used?
    • Was contract awarded pursuant to IC 36-1-12?
    • Were financial statements provided with the bid?
    • Escrow contract for retainage per IC 36-1-12-14 is intact?
    • A performance bond was included with the bid documents?
    • A non-collusion affidavit was provided with the bid documents?
    • Any change orders were approved and not greater than 20 percent of the original contract amount?

    An ARC is required to be written if there is any noncompliance identified with the public works laws.

    Jump MarkJump MarkCOMPLIANCE STEP: REVIEW PAYROLL POLICIES AND TEST FOR PAYROLL COMPLIANCE

    PAYROLL PROCEDURES

    The charter school must establish a payroll schedule that details amounts paid annually, biweekly, hourly, etc. for all employees that are not included on a labor contract.  The charter school must establish written employment policies that cover all aspects of benefits provided including sick days, vacation days, personal days, etc.  The policy must cover how many days are accrued, when the days are accrued, when any unused days are lost, etc.

    The charter school shall maintain adequate supporting documentation for payroll to ensure that payments are made only for services rendered.  Supporting documentation, such as time cards, must show signs of supervisory approval.  The organizer must designate an employee to review supporting documentation to ensure payments are accurate and due the employee for services rendered.

    The charter school must establish a system to document and track paid leave activity.  The system must be able to track the accrual of earned leave time and the use of leave time each pay period and throughout the year.  The charter school must document and provide the organizer in writing all changes to pay amounts or benefits provided prior to the changes going in effect.

    Advance Payments

    Compensation and any other payments for goods and services shall not be paid in advance of receipt of the goods or services unless specifically authorized by statute.  Payments made for goods or services which are not received may be the personal obligation of the responsible official or employee.

    Compensation

    All compensation and benefits paid to employees must be included in the at-will employment agreement or letter, or labor contract or salary schedule, unless otherwise authorized by statute.  All compensation and benefits paid to employees must be included in the labor contract or salary schedule unless otherwise authorized by statute.  Compensation must be made in a manner that will facilitate compliance with state and federal reporting requirements.

    Payments for services provided by an organization shall go directly to the organization and not to an individual employee of the organization. All payments for services must be supported by a written contract.

    Fund Sources and Uses

    Sources and uses of funds shall be limited to those authorized by the enabling statute, ordinance, resolution, or grant agreement.

    Leave and Overtime Policy

    Each charter school must adopt a written policy regarding the accrual and use of leave time and compensatory time and the payment of overtime.  Negotiated labor contracts approved by the charter school would be considered as written policy.  The policy must conform to the requirements of all state and federal regulatory agencies.

    Severance Pay

    Unless specifically authorized by statute, severance pay, or other payments to employees upon separation from employment, must be supported by the written opinion of the attorney for the charter school stating that the payments are in accordance with all federal laws and regulations and state laws, as applicable.

    Suspension with Pay

    Suspension with pay must be supported by the written opinion of the attorney for the charter school stating that the suspension is in accordance with all federal laws and regulations, and state laws, as applicable.

    Audit Procedures:

    1.  Verify that the charter school organizer and/or management of the charter school has appropriately established a payroll schedule or has labor contracts on file for employees.

    2.  Review employment policies, including leave and overtime policy; retain policies as audit documentation in the working papers.

    3.  For those charters that transfer money to an Education Management Organization (EMO) for employees which are paid by the EMO, verify that the charter school has adequate supporting documentation for the payroll transfer that ensures that payments are made only for services rendered at the charter school.

    4.  Select employees (See Required Minimum Testing) and test for the following:

    a.  The amount and rate of pay paid for the employee agrees with the payroll schedule and/or labor contract.

    b.  Attendance/Time Records were maintained for the employee.

    c.  Pay has been properly posted to the employee's earnings record.

    d.  Employee's earnings record agrees to the Form W-2 for the year.

    e.  Payment was made from the proper fund.  In the case where an employee's salary is paid from multiple funds, the charter school shall keep records to ensure that the employee's time is allocated appropriately across funds for payment.

    f.  Verify that the employee is not being paid in advance of hours worked.

    5.  Inquire to school officials if anyone has received any severance pay or suspension with pay.

    If applicable, verify that a written opinion was received by the charter school attorney, stating that the payments are in accordance with all federal laws and regulations, and state laws, as applicable.  This written opinion shall be received prior to providing the pay.

    Required Amount of Testing:

    A minimum of 15 employees shall be tested when no deviations are expected to be found.  This would be a charter school with a planned or supported assessed level of control risk as low.

    A minimum of 25 employees shall be tested when 1 deviation is expected to be found.  This would be a charter school with a planned or supported assessed level of control risk as moderate.

    A minimum of 40 employees shall be tested when three or more deviations are expected to be found. This would be a charter school with a planned or supported assessed level of control risk as high.

    An ARC is mandatory if there is a 10 percent or greater error rate with any one of the attributes tested.

    Jump MarkJump MarkCOMPLIANCE STEP: AMOUNTS WITHHELD

    Federal and State Regulations

    Each charter school is responsible for compliance with all rules, regulations, guidelines, and directives of the Internal Revenue Service and the Indiana Department of Revenue.  All questions concerning taxes shall be directed to these agencies.

    Penalties, Interest, and Other Charges

    Officials and employees have the duty to pay claims and remit taxes in a timely fashion.  Additionally, officials and employees have a responsibility to perform duties in a manner which would not result in any unreasonable fees being assessed against the governmental unit.  Any penalties, interest or other charges paid by the governmental unit may be the personal obligation of the responsible official or employee.

    Audit Procedures:

    For amounts withheld perform the following:

    Determine that disbursements of withholdings were submitted to the proper authority.

    For late payments and/or interest assessed:

    Determine if any late payments and/or interest charges were assessed on obligations of the charter school.  If late payments and/or interest charges were assessed an ARC is required to be written detailing the amount of penalties and interest paid.

    Jump MarkJump MarkCOMPLIANCE STEP: TEXTBOOK RENTAL PROCEDURES AND USE OF TBR-2

    OFFICIAL RECEIPT - INDIVIDUAL TEXTBOOK RENTAL LIST (Form TBR-2, Revised 1997)

    This form is to be pre-numbered and printed in triplicate.  The form, one set for each student, is to be prepared when textbooks and related materials are issued to the student.  The form provides for the date the textbooks were issued, the name of the student and the total fee collected.  The completed form shall be signed by the issuing officer who could be the treasurer or someone designated by the treasurer to issue the textbooks and collect the rental fees.  If the volume of transactions for grades with a fixed list (applicable to all students) of books and materials is great enough to demand it, a copy of the printed list may be attached to the TBR-2 form and the form processed with a reference to such attached list instead of further itemization.

    The original of Form TBR-2 is to be given the payer (student or parent).  The duplicate is to be retained by the issuing officer and the triplicate is to remain intact in the book.  The duplicate, together with rental fees collected, must be transmitted daily to the treasurer.  The treasurer may direct the issuing officer to deposit all fees collected each day and submit an acknowledged, duplicate deposit slip with duplicate copies of Form TBR-2.  The treasurer may also require the issuing officer to submit a summary or recap sheet of all fees collected by grade or other designated categories.  If this is done, the total of the summary or recap sheet must agree with the amount on the duplicate deposit sheet as well as the total of all TBR-2 forms submitted for the day.  All duplicates of Form TBR-2 shall be filed alphabetically, by student last names, in the office of the treasurer for audit purposes.  A separate TBR-2 shall be issued each time a payment is made.

    The triplicate copy of Form TBR-2 with book list attached, if any, must be kept in the files of the issuing officer until the close of the semester.  When the students return rented textbooks, the issuing officer must check the returned books to the list of those issued as shown on the copy of the files.  The student shall then pay for all textbooks damaged or not returned in accordance with the policy adopted by the school officials. All money received for lost or damaged books together with the triplicate books of Form TBR-2 containing proper notations must be remitted to the treasurer.  The treasurer will file the triplicate copy (complete books).

    Duplicate and triplicates will remain intact in the book if the issuing officer is the treasurer.

    The original copy of Form TBR-2 shall be given to the student if the student pays the fee.  The copy serves as a receipt for the rental fees collected from the student.  When book lists are used in lieu of itemization on the form (all students using the same books), a copy of the appropriate list shall be attached to the student's copy and one copy shall be retained for audit.

    When issuing officers other than the treasurer are designated to issue books and collect rental fees, the treasurer shall issue an official receipt to the issuing officer each time the issuing officer transmits the money or submits a certified deposit slip, to cover such fees, to said treasurer.  Receipts shall be issued and recorded at the time of the transaction; i.e., when cash or a check is received, a receipt is to be immediately prepared and given to the person making payment.

    Bad Debts and Uncollectible Accounts

    The charter school must have a written policy concerning a procedure for the writing off of bad debts, uncollectible accounts receivable, or any adjustments to record balances.

    Documentation must exist for all efforts made by the charter school to collect amounts owed prior to any write-offs.

    Officials or employees authorizing, directing or executing write-offs or adjustments to records which are not documented or warranted may be held personally responsible.

    Collection of Amounts Due

    Charter schools have a responsibility to collect amounts owed to the charter school pursuant to procedures authorized by statute.

    Audit Procedures:

    For charter schools that charge for textbook rental:

    1.  Verify that the school is properly using Textbook Rental Form TBR-2 (1997).  Verify that a new TBR-2 is being issued with each payment, if applicable.

    2.  Review procedures for collection of partial payments.  Determine if a policy for bad debt or uncollectible accounts has been established as required.  Retain policy in audit documentation.

    3.  Review procedures for pursuing delinquencies (policies, concern letter, small claims court, collection agencies).  Has the charter school fulfilled their responsibility to collect amounts owed to the charter school?

    4.  Perform a test (number to be determined by examiner) of TBR-2 receipts at different collection points, if applicable, and determine that the classification on the receipt (i.e., cash, check, etc.) agrees with the actual amounts of cash, checks, etc., shown on the deposit slip to ensure deposits are made in the same form received.  Further review is required if discrepancies exist, (i.e., check for cash substitution).

    Jump MarkJump MarkCOMPLIANCE STEP: REVIEW INTERNAL CONTROLS OVER EDUCATIONAL MANAGEMENT COMPANY CONTRACT AND PROCEDURES

    INTRODUCTION

    Charter schools shall have internal controls in place to provide reasonable assurance that their goals and objectives are accomplished; laws, regulations, and good business practices are complied with; assets are safeguarded; and accurate and reliable data are maintained.  Internal control touches all activities of the school, extending beyond the accounting and financial functions.  It is important to note that even the best internal controls may breakdown due to management override, collusion, mistake, faulty judgment, or cost constraints.  The following internal control related compliance guidelines provide required controls that a charter school must implement and maintain.

    ADMINISTRATION

    The charter school must establish minimum policies and procedures concerning operations.

    The charter school must engage in active oversight by routinely receiving and discussing financial reports from the organizer.

    The charter school administrators must be cognizant of their duties of care, loyalty, and obedience. The duty of care requires administrators to be familiar with the charter school's finances and activities and to participate regularly in its operations.  Duty of loyalty requires that any conflict of interest, real or possible, always be disclosed in advance of being employed and when they arise.  A charter school has a duty of obedience to insure that the school complies with applicable laws and regulations and its internal policies and procedures.

    Internal Controls

    Charter schools shall have internal controls in effect which provide reasonable assurance regarding the reliability of financial information and records, effectiveness and efficiency of operations, proper execution of management's objectives, and compliance with laws and regulations.  Among other things, segregation of duties, safeguarding controls over cash and all other assets and all forms of information processing are necessary for proper internal control.  Controls over the receipting, disbursing, recording, and accounting for the financial activities are necessary to avoid substantial risk of invalid transactions, inaccurate records and financial statements and incorrect decision making.

    Audit Procedures:

    Does the charter school organizer contract with an Educational Management Company?  If so, retain the contract in the audit documentation.

    Review and describe in a narrative form the relationship between the Education Management Company and the charter school.

    Review controls in place by the organizer and/or charter school that provides assurance that the management company is completing the duties as outlined in the contract and that the charter school is only paying for services in which the management company is providing for their specific school.  Determine that the controls are effective and that the organizer has maintained control over the fiscal duties.

    Jump MarkJump MarkCOMPLIANCE STEP: REVIEW EXTRACURRICULAR ACTIVITIES

    IC 20-41 does not allow for charter schools to create extra-curricular accounts.  All monies received and disbursed for extracurricular activities would need to be included and processed through the charter school records.

    Audit Procedures:

    If the charter school has extracurricular activities ensure that the money received and disbursed for those activities are accounted for in the funds of the charter school.  If extracurricular activities are accounted for in separate accounts that are not maintained on the charter school's financial records, an ARC shall be written.

    Jump MarkCOMPLIANCE STEP: Jump MarkREVIEW TICKET SALE PROCEDURES

    ATHLETIC AND SOCIAL EVENTS

    Serially pre-numbered tickets by the printing supplier shall be used for all athletic and other social activities and events for which admission is charged.  Part of the pre-numbered ticket must be given to the person paying for the ticket upon admission to the event.  The other part of the ticket (which shall also be pre-numbered, referred to as the stub) must be retained.  All tickets (unused tickets and stubs) shall be retained for audit.

    Tickets for each price group must be different colors and/or different in their series number.

    Ticket sales conducted by any activity shall be accounted for as follows:

    The designated charter school employee shall be responsible for the proper accounting for all tickets and must keep a record of the number purchased, the number issued for sale, and the number returned.  The designee must see that proper accounting is made for the cash received from those sold.  All tickets shall be pre-numbered, with a different ticket color and numerical series for each price group.  When cash for ticket sales is deposited with the charter school, the charter school's receipt issued therefore must show the number of tickets issued to the seller, the number returned unsold and the balance remitted in cash.  All tickets (including free or reduced) must be listed and accounted for on the SA-4 Ticket Sales Form.

    Deposit of Accountable Items

    Tickets, goods for sale, billings, and other collections, are considered accountable items for which a corresponding deposit must be made in the bank accounts of the charter school.

    The deposit ticket or attached documentation must provide a detailed listing of the deposit, which includes at a minimum, check numbers and corresponding names of the payors.

    Audit Procedures:

    If extracurricular events are held, verify that pre-numbered tickets and ticket sale reports (Form SA-4) are used.

    Ticket sale reports shall be tested (number to be determined by examiner) to ensure the following:

    1.  The charter school's receipt of monies agrees to the ticket sales reports.

    2.  Monies were deposited daily.

    3.  All tickets are accounted for on the SA-4 Ticket Sales Form.

  • Audit Results and Comments

    Audit Results and Comments (ARC) are used by the State Board of Accounts as the method of transmitting, for the public record, significant comments to the management of a governmental unit and to the general public.  These comments shall be limited to addressing noncompliance with state statutes, noncompliance with uniform compliance guidelines issued by the State Board of Accounts, or the detection of errors or irregularities identified by the private examiner during the audit process.  An ARC shall clearly identify the detailed factual description of noncompliance.  The ARC shall also include the proper criteria established by the Indiana Code and Accounting and Uniform Compliance Guidelines Manual for Indiana Charter Schools used to determine the noncompliance.

    These guidelines are designed to assist the private examiners in determining when to report, in a supplemental report, instances of noncompliance discovered during the audit.  These are only guidelines.  If a private examiner identifies any instances of noncompliance they feel, based on their professional judgment, need to be reported, they shall report those instances of noncompliance in an ARC.

    The private examiner shall exercise sound professional judgment in determining if and when an issue of noncompliance rises to the level of becoming a written ARC.  In instances where written ARCs are prepared, they shall be presented in a separate supplemental report.  The financial audit report shall include a reference to any other reports issued for the charter school for the same audit period.

    The following instances of noncompliance are considered significant enough to warrant a mandatory ARC in the supplemental report:

    1.  Receipts and Deposits - if there is a 10 percent or greater error rate in any one of the attributes tested.

    2.  Vendor Disbursements - if there is a 10 percent or greater error rate in any one of the attributes tested.

    3.  Payroll Disbursements - if there is a 10 percent or greater error rate in any one of the attributes tested.

    4.  Monthly Reconcilements - Failure to comply with this requirement.

    5.  Bonds - Failure to establish bonded individuals or obtain required bonds in accordance with the Uniform Compliance Guidelines.

    6.  Public Works - Failure to comply with the Public Works Law when applicable.

    7.  Penalties and interest paid on late payments.

    Other instances of noncompliance noted during the audit shall be evaluated and the significance of such noncompliance shall be determined.  For example, if the charter school failed to record one or more financial transaction in the records, the private examiner shall evaluate the significance of the transactions not recorded.  Those instances of noncompliance determined by the private examiner to be minor issues will be communicated to management and the State Board of Accounts in a management letter.  This management letter is not a public document but is a method for reporting minor issues to the charter school.  Those instances of noncompliance determined by the private examiner to be significant items will be reported in an ARC in the supplemental report.

    ARCs will be reviewed by the State Board of Accounts prior to the issuance of the supplemental report.  Their supporting documentation may be requested for review and the State Board of Accounts reserves the right to perform additional audit work if deemed necessary by the State Examiner.

    If a supplemental report prepared by a private examiner identifies areas of malfeasance, misfeasance, or nonfeasance that the State Examiner deems necessary to certify to the Attorney General and the County Prosecutor, the State Board of Accounts will issue a report identifying those areas of malfeasance, misfeasance, or nonfeasance.  If necessary, a request for repayment will be made in that report.

    Format of the Audit Result and Comment

    ARC titles shall be clear and state the problem.

    The first section of the ARC shall contain a factual and detailed description of the noncompliance.  The private examiner shall include details that clearly indicate the work performed and conclusions reached to avoid any confusion on the part of the reader.  All instances of noncompliance that are similar in nature shall be reported together in one ARC.

    The second section shall cite and quote an applicable law or uniform compliance guideline.  When quoting a uniform compliance guideline, the chapter in the manual or the volume of the bulletin must be cited.  If the uniform compliance guideline refers to compliance with a regulation, contract, ordinance, attorney general's opinion, etc., the applicable portion of the authoritative material must also be quoted.

    Uniform compliance guidelines, manuals, and applicable bulletins can be found at www.in.gov/sboa.

    ARCs shall be organized in the supplemental report by severity.  The most severe ARCs shall appear first, followed by those comments that are less severe.

    Examples of previously issued ARCs can be viewed at www.in.gov/sboa/resources/reports/audit.

    Audit documentation necessary to support the Audit Result and Comment

    Audit documentation is the written record of the audit procedures applied, evidence obtained and conclusions reached that support the private examiners' performance of compliance testing.

    Any audit documentation used to support ARCs shall specifically state the following:

    • The description of documents reviewed.
    • Specific items such as the receipt number, check number, date, etc., and/or any other description that identified the document tested.
    • The names of personnel inquiries were made to.
    • A description of the compliance requirements tested.
    • A description of the procedures used to determine the selection of items to be tested.
    • The compliance attributes tested.
    • The results of the testing including, but not limited to, the number of instances of noncompliance found and whether the instances of noncompliance warrant an ARC in the supplemental report.

    Any instance of noncompliance shall be clearly documented by the private examiners.  The audit documentation shall be detailed enough that another private examiner could reperform the same procedures and reach the same conclusion.

    If the private examiner discovers fraud or other questionable transactions, a copy of the original document shall be retained.

    SUPPLEMENTAL AUDIT REPORT - EXHIBIT C

  • Reporting Requirements for the Schedule of Expenditures of Federal Awards (SEFA)

    SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

    First and foremost, this schedule must meet the requirements set forth in the Uniform Guidance.  Additionally, the schedule shall be formatted in accordance with the following requirements.

    The table below shows the required order of presentation within the schedule.

    Federal Agencies 

    In ascending numerical order by Agency Number (the first two digits of the CFDA
    number)

    Within the Agency

    Clusters first
    Direct grants second
    Pass-through programs third
    Programs without CFDA numbers fourt

    In ascending numerical order
    by Agency program number, (the last three digits of the CFDA number)
    Within the ProgramProject Number order, oldest one first
    (First In First Out)
     

    Note:  The amount of the awards expended is NOT a factor in the sequence of programs.

    If the financial statements are prepared on the cash basis of accounting, the following requirements apply.  For reimbursement grants, the schedule shall report reimbursements in the period in which the reimbursement is received.  For advancement grants, the schedule shall report disbursement of federal funds in the period in which the disbursement is made.

    The Uniform Guidance removes the previous flexibility to report the following items in the Notes to the Schedule of Expenditures of Federal Awards.  They are now required to be presented on the face of the Schedule of Expenditures of Federal Awards.

    a.  Total amounts provided to subrecipients from each federal program.

    b.  The total federal awards expended for loan or loan guarantee programs.

    c.  Noncash awards (for example free rent, food commodities, and donated property and the value of insurance in effect).

    The Uniform Guidance requires that the Schedule of Expenditures of Federal Awards include a total for each cluster of programs.

    This schedule shall be accompanied by Notes to the Schedule of Expenditures of Federal Awards to support the schedule in accordance with the requirements of the Uniform Guidance.  These notes shall include the following:

    a.  Basis of presentation note.  This note shall disclose the basis of presentation of the schedule.

    b.  Summary of Significant Accounting Principles note.  This note shall disclose when and how amounts are recognized on the schedule.

    c.  Loans outstanding note.  This note shall disclose the amount of any loans outstanding when there are continuing compliance requirements associated with the loan.

    d.  Information about whether or not the auditee elected to use the 10 percent de minimus indirect cost rate.

    e.  Amount of insurance in effect during the year note.  This note shall disclose amounts of insurance in effect associated with a federal program.

    Below is an example of the required format for the Schedule of Expenditures of Federal Awards and notes.  It is suggested that appropriately labelled columns be added if the entity has amounts federal awards expended for loan or loan guarantee programs, or noncash awards to report.

    SEFA AND NOTES - Example

  • Flowcharts

    Below is a link to two different Flowcharts.

    1. Flowchart for Process Required for Charter School to Award Auditing Contract

    2. Flowchart of Process Required for Private Examiner/Firm to Follow to Issue Audit Report

    FLOWCHARTS

This a placeholder for presentation and training material.