Financial Accountability System Resource Guide Refresher OF Financial Accountability System Resource Guide

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Finance & Grants Financial Compliance Resource Guide (FASRG)

Fund code (what is the revenue source?) FUND CODE IS A MANDATORY 3 DIGIT CODE IS TO BE USED FOR ALL FINANCIAL TRANSACTIONS TO IDENTIFY THE FUND GROUP AND SPECIFIC FUND. thE FIRST DIGIT REFERS TO THE FUND GROUP, AND THE SECOND AND THIRD DIGIT SPECIFIES THE FUND. EXAMPLE: a SPECIAL Revenue Fund could be 211. The 2 indicates the Special Revenue Fund, the 11 specifies ESEA, Title I, Part A-Improving Basic Programs.

Fund Codes (page 223-292) 11 Funds – 4 Most Common Fund Types R indicates fund code is required for reporting purposes if such codes are applicable to the school district.

Function Code ( What is the purpose of the expense Function Code ( What is the purpose of the expense?) Function Code is a mandatory 2 digit code applied to expenses and used to identify and used to identify the purpose of the transaction. The first digit identifies the major class and the second digit refers to the specific function within the area. Functions are grouped according to related activities in major areas/classes. (page 294) Example: The functions “Health Service” is coded 33. The first 3 specifies Support Services – Student and the second 3 is Health Services.

Function codes (page 293-339) R indicates function code is required for reporting purposes if such codes are applicable to the school district.

Object code ( What is the nature of the transaction Object code ( What is the nature of the transaction?) Object code is a mandatory 4 digit code identifying the nature and object of an account, a transaction or a source. The first of the four digits identifies the type of account or transaction, the second digit identifies the major area, and the third and fourth digits provide further sub-classifications. Example: Money received for current year taxes is classified in account 5711. The 5 denotes revenue, the 7 show Local and Intermediate Sources, the 1 denotes local real and personal property taxes revenue and the final 1 specifies current year levy.

Object codes (page 340- 472) 1000-1999 Assets and Other Debits Codes 2000-2999 Liability Codes 3000-3999 Equity (Fund Balances/Net Assets) Codes 4000-4999 Clearing Account Codes 5000-5999 Revenue Codes 6000-6999 Expense Codes 7000-7999 Other Resources/Non-Operating Revenue Codes 8000-8999 Other Uses/Non-Operating Expense Codes R indicates object code is required for reporting purposes if such codes are applicable to the school district.

The table summarizes the major categories of operating expense object codes.

Optional Codes 1 and 2 (Sub-Object Codes) (page 473-475) A 2 character alpha/numeric code for optional use to provide special accountability at the local level A school district may use the optional codes 1 & 2 if there is a need to account for information not otherwise provided in the mandatory chart of accounts. If a school district uses these optional codes, a locally devised chart of accounts is to be uniformly used in the accounting system. The local chart of accounts should be made part of the district’s copy of Resources Guide, and should be made available for auditing and other purposes.

Organization Code (Where is the expense located Organization Code (Where is the expense located?) A mandatory 3 digit code that identifies the organization, i.e., High School, middle school, elementary school, superintendent’s office, etc. An organization code not necessarily correspond with a physical location. The activity, not the location, defines the organization. Campuses are examples of organization codes and are specified for each school district in the Texas School Directory.

Organization Code Two types of Organization Codes: 1) campus organization unit – group of employees who are obligated to complete responsibilities of the teaching of, supporting the teaching of and providing the necessary services (such as social services and health services) to a set of students. DEFINED IN THE TEXAS SCHOOL DIRECTORY 2) an administrative or other organization unit which is a group of people who perform a specific responsibility such as those in the superintendent’s office, the school board or those who perform the business functions for the school district. 701-750 ARE MANDATED FOR ALL FUNCTION 41

Organization Codes (page 475-482) 001-698 Organization Unites – Campuses (Contact TEA if new campus is opened.) 699 Organization Units – Summer School 700-799 Organization Units – Administration (701 – 749 are to be used in Function 41 Only. 750 is to be used only in Functions 41 & 53 ) 800-997 Organization Units – Locally Defined (Convert to 999 for PEIMS) 998 Unallocated Organization Unit 999 Undistributed Organization Unit (used for any undistributed costs i.e., costs that are not campus or summer school or an administrative unit ( Function 41.) R indicates organization code is required for reporting purposes if such codes are applicable to the school district.

Fiscal Year Code (page 483-484) A mandatory single digit code that identifies the fiscal year of the transaction or the project year of the transaction or the project year of inception of a grant project.

Program Intent Code (What is the need for a specific student group Program Intent Code (What is the need for a specific student group?) A mandatory 2 digit code applied to expenses and used to designate the intent of a program provided to students. These codes are 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 service is directed) determines the program intent code, not the demographic makeup of the students served.

Program Intent Codes (Page 484 – 507) 11 Basic Educational Services 21 Gifted & Talented 22 Career & Technical 23 Services to Students with Disabilities ( Special Education) 24 Accelerated Education 25 Bilingual Education & Special Language Programs 26 Nondisciplinary Alternative Education Program –AEP 28 Disciplinary Alternative Education Program –DAEP Basic 29 Disciplinary Alternative Education Program – Compensatory 30 Title I, Part A School wide Activities 31 High School Allotment 32 Prekindergarten – Basic Education 33 Prekindergarten – Special Education 34 Prekindergarten – Compensatory Education 35 Prekindergarten – Bilingual Education 91 Athletics and Related Activities 99 Undistributed R indicates program intent code is required for reporting purposes if such codes are applicable to the school district. Shared Services Arrangements costs information which is submitted on a special PEIMS record will also be included in the compliance monitoring calculations.

Optional Code 3 (Educational Span Code) Page 507 - 511 An optional 1 character alpha/numeric code that is used at the local option.

Optional Codes 4 & 5 (Project Code) (Page 511- 512 ) An optional 2 character alpha/numeric code that may be used by the district to further describe the transaction.