1. Chart of Accounts Overview ALASBO Power Lunch January 15, 2008 Presented by Elwin Blackwell, Internal Auditor Department of Education & Early Development

2. Uniform Chart of Accounts The Uniform Chart of Accounts is the backbone of your accounting system. There are 3 required account code elements to the Chart of Accounts - fund (required) - function (required) - and objects. (required) There are 2 optional account code elements that are provided in the Chart of Accounts for the districts use. (School/Location & Program/Project) The Operating Fund Budget and the Audited Financial Statement presentations are to be reported in required code format only.

3. Uniform Chart of Account The Chart of Accounts functions and objects are to be used for all funds Operating Fund Special Revenue Funds Capital Projects Funds And All Other Funds

4. Uniform Chart of Account FUND is defined as: A fiscal and accounting entity with a self-balancing set of accounts recording cash and other financial resources, together with all related liabilities, and residual equities or balances, and changes therein, which are segregated for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions, or limitations.

5. Uniform Chart of Account Fund codes should be established for: 1. Governmental funds 2. Proprietary funds 3. Fiduciary funds – Trust & Agency funds 4. Account Groups

6. Uniform Chart of Account Functions are: 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.

7. Uniform Chart of Account Objects: Describe the financial activity represented by a specific transaction. Revenue object codes refer to the source and type of specific revenues. Expenditure object codes describe the service or commodity obtained as a result of a specific expenditure. Balance sheet object codes refer to the asset acquired, liability incurred, or balance in a specific fund.

8. Uniform Chart of Account There are two optional account code elements provided in the chart of accounts which are: School/Location codes & Program/Project codes

9. Uniform Chart of Account School and Location codes are defined as: The term SCHOOL is used to denote the location of educational activities for organizational purposes. Organizational units housed by physical plants correspond to individual schools or a district office allowing the classification of budgets and expenditures for each school or operational unit. This account element and related account codes are optional and may be assigned to meet individual district's needs.

10. Uniform Chart of Account Program and Project codes are: A plan of activities and procedures designed to accomplish predetermined objectives. Program codes are assigned at the discretion of the School District.

11. Uniform Chart of Account If a school district uses only the required code structure, the following would be the transaction: FUND FUNCTION OBJECT EXAMPLE:100 100 450 School Operating Fund, Instruction, Supplies and Materials.

12. Uniform Chart of Account If a school district chooses to use the optional account codes for further details, the following would be the transaction: FUND SCHOOL FUNCTION PROGRAM OBJECT EXAMPLE: 100 031 100 011 450 School Operating Fund, High School, Instruction, Physical Education, Supplies and Materials.

13. Uniform Chart of Account Things to remember when coding expenditures to the functions and objects 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 must 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.

14. Uniform Chart of Account More things to remember when coding expenditures to the functions and objects 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) Expenditure object codes, with the exception of Indirect Costs (495), should not have a credit balance within the Operating fund. Make sure that all required function codes are properly reported in the budgeted and financial statements such as School Administration – Support Services expenditures reported seperatly from School Administration.

15. References Document Location Uniform Chart of Accounts http://www.eed.state.ak.us/publications/COA2000.pdf