1. NJASBO School Finance/Accounting Kateryna W. Bechtel, CPA bechtelk@eht.k12.nj.us 609-457-9510

2. 2013 Class meeting dates Sept. 7, 14, 21, 28 Oct. 5, 19, 26 Nov. 2, 16, 23 10 Sessions/52 hrs

3. Uniform Chart of Accounts Accounts and account numbers used by all NJ School Districts Conforms with Generally Accepted Accounting Principles (GAAP) Consistent with National Center for Education Statistics (NCES) chart of accounts

4. Basic Accounting Terms ASSET – accounts that exhibit what a school district owns, is owed, and has retained for future economic benefit LIABILITY – accounts that exhibit what a school district owes FUND BALANCE – accounts that exhibit how much a school district would have if the assets were liquidated and used to pay the liabilities

5. Basic Accounting Terms REVENUE – Money received directly or indirectly to fund government operations APPROPRIATION – Money authorized for specific expenditure by an elected body or the public

6. Fund Accounting Governmental fund accounting measures fund financial position and changes in fund financial positions – sources, uses, and balances of net fund financial resources – rather than net income A fund is defined as a fiscal and accounting entity with a self-balancing set of accounts

7. Basic Fund Accounting Equation GENERAL FUND Current Assets – Current Liabilities = Fund Balance Does not provide for fixed assets or long-term debt

8. Budgetary Basis of Accounting School districts maintain their accounts on the budgetary basis of accounting during the year, for budgetary control and for interim and annual budgetary reporting purposes At year end, the accounts are adjusted to the GAAP basis, or accrual basis of accounting

9. Entry to Record Budget Upon adoption of budget, the total of estimated revenues and the total of appropriations authorized is recorded to the general ledger Debit – ESTIMATED REVENUES Credit – APPROPRIATIONS Difference is either a Debit or Credit to FUND BALANCE