Chart of Accounts Functional Categories

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Chart of Accounts Functional Categories

• ALASBO Power Lunch
• February 19, 2008
• Presented by Elwin Blackwell, Internal Auditor
• Department of Education Early Development

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Functional Categories

• Functions are defined as
• Used to group within a fund the different broad
  classifications of financial activities or
  services performed for example, Instruction is
  function 100, a broad group of activities and
  services performed. Functions provide for the
  reporting of financial information in a manner
  which is useful to school boards,
  superintendents, the Department of Education and
  Early Development, the Legislature and in some
  instances provides for the accumulation of
  expenditures in such a manner as to show
  compliance with law or regulation.

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Functional Categories

• Functions are divided into two types of
  functions.
• Required Functions
• Optional Functions

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Functional Categories

• Required Function Codes
• Required function codes represent the minimum
  required level of functional reporting.
• The required function codes are listed in the
  chart of accounts with the word Required in
  bold type.

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Functional Categories

Optional Function Codes The optional function
codes are provided for school districts that wish
to accumulate financial information in greater
detail than the required function level. The
optional function codes are components of the
required functions and if optional function codes
are used they should be aggregated and reported
at the required function level.
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Functional Categories

• Why aggregate the optional functions into the
  required functions?
• Having the financial information in required
  function format provides the department with the
  level of detail that is necessary in order to
  comply with federal reporting requirements.
• Also having the financial information in
  required function format provides the department
  the necessary level of detail for monitoring a
  districts compliance with state statutes.

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Functional Categories

• Functions are divided into two broad categories
• Instructional functions which are
• 100 Instruction
• 200 Special Education
• 220 Special Education Support Services Students
• 300 Support Services Students
• 350 Support Services Instruction
• 400 School Administration
• Non Instructional functions which are all others.

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Functional Categories

• Some functions are to be used exclusively with
  specific funds.
• Ex. Food Service function is to be used with the
  food service fund only.

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Functional Categories

• Things to remember when coding expenditures to
  the functions
• The expenditures for the Special Education
  Director/Coordinator/Manager and educational
  activities designed to assess and improve the
  well being of the special education student are
  to be reported in Special Education Support
  Services Students (function 220)
• The corresponding E-Rate expense needs to be
  recorded in Support Services - Instruction
  (function 350) under Utilities (object code 430).
• Liability insurance is to be recorded in District
  Administration Support Services (function 550)
  under Insurance and Bond Premiums (object code
  445)
• If the district is claiming any indirect cost
  they need to be recorded in District
  Administration Support Services (function 550)
  under Indirect costs (object 495). The indirect
  costs expensed in the special revenue funds also
  will use function 550, object code 495.

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Functional Categories

• More things to remember when coding expenditures
  to the functions
• Property and Automobile Insurance has to be
  recorded in Operations and Maintenance of Plant
  (function 600) under Insurance and Bond Premiums
  (object code 445)
• Energy costs which includes electricity is to be
  recorded in Operations and Maintenance of Plant
  (function 600) under Energy (object code 435)
• Make sure that all required function codes are
  properly reported in the budget and financial
  statements such as School Administration
  Support Services expenditures reported separately
  from School Administration.

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References

• Document Location
• Uniform Chart of Accounts
• http//www.eed.state.ak.us/publications/COA200
  0.pdf