1. Chart of Accounts Functional Categories ALASBO Power Lunch February 19, 2008 Presented by Elwin Blackwell, Internal Auditor Department of Education & Early Development

2. 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.

3. Functional Categories Functions are divided into two types of functions. Required Functions Optional Functions

4. 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.

5. 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.

6. 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.

7. 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.

8. 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.

9. 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.

10. 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.

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