1. FINANCIAL SERVICES BUDGET DEPARTMENT BUDGET 101

2. BUDGET DEPARTMENT Marilyn Farrell, Budget Director
x8012
Amy Parker, Budget Coordinator
x8024
Patty Epps, Position Control
x8122

3. ACCOUNT CODE STRUCTURE
GAAP and Legal Compliance
Guidelines for financial accounting and reporting are derived from generally accepted accounting principles (GAAP).
School districts are required to adhere to GAAP.
The Texas Education Code (TEC) and other state statutes contain the legal requirements for public school finance, accounting, budgeting and reporting.

4. ACCOUNT CODE STRUCTURE
TEA
STUDENT DEMOGRAPHICS
Public Education Information Management System (PEIMS)
ACADEMIC PERFORMANCE
PERSONNEL INFORMATION
FINANCIAL
DATA (MUNIS)

5. ACCOUNT CODE STRUCTURE
FUND CODE
FUNCTION
OBJECT
SUB-OBJECT
ORGANIZATION
PROGRAM
ACTIVITY
SOURCE
PROJECT
*Source: Budget Management Guidelines and Procedures document available for download on the Budget website

6. ACCOUNT CODE STRUCTURE
FUND CODE - A fund (3 digits) is an accounting entity with a self-balancing set of accounts recording financial resources and liabilities. The fund's purpose can be established by the state or federal government as well as the school district.
EXAMPLES OF FUND TYPES
General Fund (Fund 199)
Special Revenue Funds (Funds 200 – 499)
Federal (Funds 200 – 379)
State (Funds (380 – 459)
Local (Funds (460 – 499)
Capital Projects Funds (Funds 600 – 699)
Internal Service Funds (Funds 750 – 799)
Fiduciary Funds (Funds 800 – 899)
*Refer to the Budget Management Guidelines and Procedures document available for download on the Budget website for a complete listing.

7. ACCOUNT CODE STRUCTURE
FUNCTION - A function (2 digits) represents a general operational area in a school district and groups together related activities. Most school districts use all of the functions in the process of educating students or organizing the resources. For example, in order to provide the appropriate atmosphere for learning, school districts transport students to school (function 34), teach students (function 11), feed students (function 35) and provide health services (function 33). Each of these activities is a function.
SUMMARY OF COMMONLY USED FUNCTIONS
11 Instruction
12 Library
13 Staff Development
23 Campus Administration
31 Counselor
33 Nurse
34 Transportation to/from school
36 Extracurricular
41 General Administration
51 Maintenance
52 Security
53 Data Processing
61 Community Services
*Refer to the Budget Management Guidelines and Procedures document available for download on the Budget website for a complete listing.

8. ACCOUNT CODE STRUCTURE
OBJECT - An object code (4 digits) identifies the nature of an account or transaction. The school district's accounting records are to reflect expenses at the most detailed level, as depicted in the chart of accounts for accounting and Public Education Information Management System (PEIMS) reporting (actual data) purposes.
SUMMARY OF COMMONLY USED OBJECT CODES
6100 Payroll - Common Object Codes
6112 – Substitutes for Teachers/Professionals
6118 – Teacher/Professional Extra Duty Pay
6121 – Support Personnel Extra Duty
6122 – Substitutes for Support Personnel/Temps
614X – Payroll Benefit Accounts
*Refer to the Budget Management Guidelines and Procedures document available for download on the Budget website for a complete listing.

9. ACCOUNT CODE STRUCTURE
SUMMARY OF COMMONLY USED OBJECT CODES (cont’d)
6200 Services – Common Object Codes
6219 – Professional Services
6239 – Education Service Center (e.g. Region IV)
6245 – Buildings and Grounds Contracts (e.g. painting, repairs)
6249 – Equipment Repair Contracts (e.g. copier maintenance)
6269 – Rentals/Operating Leases (e.g. copier leases)
6291 – Consulting Services
6299 – Miscellaneous Contracted Services
*Refer to the Budget Management Guidelines and Procedures document available for download on the Budget website for a complete listing.

10. ACCOUNT CODE STRUCTURE
SUMMARY OF COMMONLY USED OBJECT CODES (cont’d)
6300 Supplies – Common Object Codes
6321 – Textbooks
6329 – Reading Materials
6399 – Teaching/General Supplies
*Refer to the Budget Management Guidelines and Procedures document available for download on the Budget website for a complete listing.

11. ACCOUNT CODE STRUCTURE
SUMMARY OF COMMONLY USED OBJECT CODES (cont’d)
6400 Other Operating – Common Object Codes
6411 – Employee Travel
6412 – Student Travel
6494 – Field Trips (Humble ISD Transportation)
6495 – Dues
6499 – Miscellaneous Operating
*Refer to the Budget Management Guidelines and Procedures document available for download on the Budget website for a complete listing.

12. ACCOUNT CODE STRUCTURE
SUMMARY OF COMMONLY USED OBJECT CODES (cont’d)
6600 Capital Outlay – Common Object Codes
6631 – Vehicles >= $5,000
6639 – Furniture, Equipment and Software >= $5,000
6649 – Controllable Assets*
6669 – Library Books and Media
*Refer to the Budget Management Guidelines and Procedures document available for download on the Budget website for a complete listing.

13. ACCOUNT CODE STRUCTURE
SUB-OBJECT - The sub-object (2 digits) further identifies the object code (numeric and alpha) and is used by a district, campus, or department for management purposes to distinguish accounts.
Sub-objects are optional in most cases and are used by the district to further define expenses such as:
Printing (PR)
Technology (65)
Postage (PM)
Mileage (MI)
Subject Areas such as Math (54), Science (67), etc.
*Refer to the Budget Management Guidelines and Procedures document available for download on the Budget website for a complete listing.

14. ACCOUNT CODE STRUCTURE
ORGANIZATION - An organization (3 digits) is a group of employees who are obligated to complete a specific responsibility and will generally have an identifiable leader or an individual who is accountable for the overall completion of the responsibility.
Organizations are defined by the Financial Accounting Standards and Reporting Guidelines published by TEA
High Schools
Middle Schools
Elementary Schools
699 Summer School
Administrative
998 Unallocated
999 Undistributed
*Refer to the Budget Management Guidelines and Procedures document available for download on the Budget website for a complete listing.

15. ACCOUNT CODE STRUCTURE
PROGRAM - A program intent code (2 digits) is used to account for the cost of instruction and other services that are directed toward a particular need of a specific set of students. The intent (the student group toward which the instructional or other services is directed) determines the program intent code, not the demographic makeup of the students served.
SUMMARY OF PROGRAM CODES
11 Basic Education
21 Gifted & Talented
22 Career & Technology
23 Special Education
24 State Comp Ed (SCE)
25 Bilingual
26 AEP Basic Services
28 DAEP Basic Services
30 SCE Title I
31 High School Allotment
32 Prekindergarten
33 PreK Special Education
34 PreK Compensatory Education
35 PreK Bilingual Education
91 Athletics
99 Undistributed
*Refer to the Budget Management Guidelines and Procedures document available for download on the Budget website for a complete listing.

16. ACCOUNT CODE STRUCTURE
ACTIVITY - The activity (4 digits) identifies the campus program, student group, or department program for which the expenditures are intended. Activities can be linked to expenditure as well as revenue accounts.
Activities are optional in many cases. They are required for centralized activity fund accounts. Activities used by the district to further define groups or departments such as:
Athletics groups (Basketball, Cross Country, Football, etc.)
Academic groups (Debate/Speech, Science Olympiad, etc.)
Departments/Classes (Math, English, Science, Library, etc.)
Organizations/Clubs (NHS, Student Council, Honor Choir, etc.)
*Refer to the Budget Management Guidelines and Procedures document available for download on the Budget website for a complete listing.

17. ACCOUNT CODE STRUCTURE
SOURCE - The source (3 digits) identifies the campus/department with budget authority over the expense/receipt. A department can continue to maintain control over those funds that are transferred to campuses and still maintain proper PEIMS coding.
Source Codes are locally defined by the District and are used to assign budget authority within the financial system. See Summary of Organization Codes for list of values.
*Refer to the Budget Management Guidelines and Procedures document available for download on the Budget website for a complete listing.

18. ACCOUNT CODE STRUCTURE
PROJECT - The project code identifies grants, bond projects, maintenance projects and other special projects where costs must be accumulated as separate projects with 5 characters in length.
Project Codes are locally defined by the district. Some of the examples of how project codes are used to further define expenditures are:
Projects beginning with F are granted by the Education Foundation
Projects beginning with B are capital projects usually funded by bonds
Projects that begin with numbers are generally federal, state or local grants where the first three digits define the fund, the fourth digit defines the expenditure period (e.g. 3 is for ) and the letter code separates multiple grants that may be combined in the same fund.
Projects that begin with GF are part of the General Fund allocation
Projects that begin with SP denote special projects related to unforeseen events (fire damage, water damage, etc.)
*Refer to the Budget Management Guidelines and Procedures document available for download on the Budget website for a complete listing.

19. GENERAL INFORMATION
Budget Management Guidelines and Procedures Document available for download on the Budget webpage

20. GENERAL INFORMATION 2.1 – Definitions
Accounting Periods - The months within a fiscal year are referred to as accounting periods in MUNIS. The District’s financial reporting periods begin with July (period 1) and end with June (period 12).
Budget Amendment – This is a transfer of budget money between general ledger accounts. These items are generally processed by the budget department.

21. GENERAL INFORMATION 2.1 – Definitions (cont’d)
Capital Asset – Items with a useful life of more than one year and a unit cost greater than or equal to $5,000 (object code 6639.) Capital asset as defined by the District's capitalization policy includes equipment, furniture, works of art, historical treasures and infrastructure.

22. GENERAL INFORMATION 2.1 – Definitions (cont’d)
Controllable Asset – Items that do not meet the district's capitalization threshold, but for which the district maintains an inventory record, and which have a useful life of more than one year (object code 6649.) See the Capital Outlay Guidelines for a specific list of items which qualify.

23. GENERAL INFORMATION 2.1 – Definitions (cont’d)
External Budget Amendment - transfer to/from an account outside of the originating department’s budget authority.
Fiscal Year - The start and end of the District’s financial year. The district’s fiscal year begins with July and ends with June.
Internal Budget Amendment - transfer to/from accounts within the originating department’s budget authority.

24. GENERAL INFORMATION 2.1 – Definitions (cont’d)
Journal Entry – This is a transfer of actuals (e.g. revenues, expenditures) between general ledger accounts. These items are generally processed by the general ledger accountants.
Multiyear Fund – Need exists to manage financial information for a set of accounts greater than one fiscal year (many federal grants have a begin and end date of greater than one year), or where the fiscal year of the grant does not line up with the district’s fiscal year (Jul – Jun.)

25. GENERAL INFORMATION Journal Acronyms Accounts Payable Budget Entries
API - AP Invoice Posting
APM - AP Invoice Maintenance
Budget Entries
BUA - Budget Adjustment
BUC - New Budget Posting
Cash Receipts
CRP - Posted Payments & Reversals
GCR - General Cash Receipts

26. GENERAL INFORMATION Journal Acronyms (cont’d) Encumbrances
GEL - General Encumbrance Journal
Journal Entries
GEN - General Journal Entry
GNI - General Journal Import
GRV - Journal Reversal
Inventory Entries (Warehouse)
INI - Inventory Issue
Work Order Entries (Print Shop, Postage)
WOJ - Work Order Journal

27. GENERAL INFORMATION Journal Acronyms (cont’d) Purchase Order Entries
POE - PO Entry
POL - PO Liquidation
POM - Purchase Order Maintenance
SOY - Open New Fiscal Year
YEC - Close Current Fiscal Year
Payroll Entries
PRJ - Payroll Distribution Journal
PRX - Payroll Texas TRS

28. BUDGET TRANSFERS AND AMENDMENTS
Querying and Printing Posted Journals
Under the Financials Menu, select General Ledger Menu, Journal Entry/History, then click Journal Inquiry/Print
In the Journal Inquiry/Print screen, click the magnifying glass to enter “find” mode
Input these criteria to find a budget amendment journal:
Year = Fiscal year journal was posted (2012)
Period = Period journal posted (Jul = 1, etc.) or leave blank.
Journal = Enter journal number or leave blank
Source = BUA for budget amendment journals
Created by = your user id (first initial and first 6 letters of last name)
Leave the remaining fields blank and click Accept (green check)
Scroll through journals on screen, print, display or save as PDF file

29. QUERIES, REPORTS AND GUIDELINES
Budgeting for P-Cards
Funds set aside using sub-object P1
P-Cards using 199-General Fund
Funds will be re-appropriated each year from your current year allocation
Set aside funds will be used against P-Card purchases for June each year
In the event a P-Card is cancelled, remaining funds will be released into available balance
P-Cards using other funding sources
Funds will be set aside one time and remain set aside until P-Card is deactivated
Set aside funds will be used against P-Card purchases for the last month the P-Card is active
Remaining funds will be released into available balance

30. THANK YOU!!