A C C O U N T I N G M A N U A L F O R P U B L I C S C H O O L D I S T R I C T S I N T H E S T A T E O F W A S H I N G T O N

Transcription

1 A C C O U N T I N G M A N U A L F O R P U B L I C S C H O O L D I S T R I C T S I N T H E S T A T E O F W A S H I N G T O N Dr. Terry Bergeson State Superintendent of Public Instruction Brian Sonntag State Auditor This material is available in alternative format upon request. Contact School Apportionment and Financial Services, (360) or TDD (360) This material is available on the World Wide Web at The Office of Superintendent of Public Instruction complies with all federal and state rules and regulations and does not discriminate on the basis of race, color, national origin, sex, disability, age, or marital status. Revised 1999

2 SCHOOL DISTRICT ACCOUNTING ADVISORY COMMITTEE (SDAAC) CURRENT MEMBERS AS OF FEBRUARY 1999 Washington Association of School Administrators John Nissen, CPA, Director, Budget/Fiscal Svcs. Evergreen School District No. 114 Jeffrey Riddle, Deputy Superintendent Everett School District No. 2 Washington Association of School Business Officials Brian Aiken, Director, Business Services Fife School District No. 417 John Jenft, Business Manager Sultan School District No. 311 Marlyn Keating, CPA, Director, Acctg. Services Bellevue School District No. 405 Chris Kinney, Business Manager Union Gap School District No. 2 Susan Smith Leland, Business Manager White River School District No. 416 Wayne Leonard, CPA, Business Manager Deer Park School District No. 414 Doug Matson, CPA, Asst. Supt. Business/Personnel West Valley School District No. 363 Jeffrey Phan, Manager, Acct. Services Tacoma School District No. 10 Robert Rhea, CPA, Comptroller Seattle School District No. 1 Clark Sampson, Director of Finance Grand Coulee Dam School District No. 301J Neil Sullivan, Director, Budget and Accounting Spokane School District No. 81 Washington Educational Service District Superintendents Association Keith Lowry, CPA, Asst. Supt., Fiscal Services Educational Service District 113 Tim Merlino, Administrator Educational Service District 112 Washington School Information Processing Cooperative (WSIPC) Janet McKay, Senior Software Development Consultant Washington State Association of County Treasurers Robin Hunt, CPA Thurston County Treasurer Washington Vocational Association Dennis Milliken, Director, Vocational Education Northshore School District No. 417 State Auditor s Office Sherry McCulloch, CPA, Assistant State Auditor Jeff Snyder, CPA, Audit Manager Lynn Uglick, CPA, Assistant Audit Manager Division of Audit Division of Audit Division of Audit Office of State Treasurer Dan Mason, Accounting and Fiscal Services Director

3 Office of Superintendent of Public Instruction Ronald Stead, CPA, Director, School Financial Services Petrea Stoddard, CPA, Supervisor, School District Accounting Michael Dooley, Supervisor, School District Budgeting Lori Varela, Supervisor, School District Financial Reporting The SDAAC wishes to thank the following past members who contributed significantly to the revision of the accounting manual: Hal Braman, Administrator, Fiscal Educational Service District 101 Glenn Dooley, CPA, Audit Manager Division of Audit Connie Robins, CPA, Audit Manager Division of Audit

4 INTRODUCTION The classified system of accounts presented herein was developed by the Washington State School District Accounting Advisory Committee under the joint direction of the Superintendent of Public Instruction and the State Auditor. In general, the manual follows established principles of governmental accounting as adopted by the Governmental Accounting Standards Board. Revisions have been made where necessary in order to conform with state law. The manual provides for a basic double-entry modified accrual system of accounting with general ledger controls over revenues, expenditures, receivables, inventories, liabilities, fund balance, and budgetary accounts. School districts with an average FTE enrollment of less than 1,000 pupils for the preceding fiscal year may use a cash basis system of accounting. The accounting principles and procedures included in the manual represent basic minimums necessary for the achievement of school district reporting objectives. It is intended that the school districts maintain detailed revenue and expenditure accounts as well as required periodic reports. The use of these systems will: (1) promote uniformity in the presentation and comparison of financial data, (2) make available to the local school superintendents and school boards complete and up-to-date data for their guidance and information, (3) furnish the means for effective budgetary control, and (4) provide a method for school districts to present their fiscal operating results and financial needs to the state legislature, the Superintendent of Public Instruction, and the general public. Members who serve on the committee represent the Superintendent of Public Instruction, the State Auditor s Office, the Washington Association of School Administrators, the Washington Association of School Business Officials, the Washington Educational Service District Superintendents Association, the Washington Vocational Association, and the Washington School Information Processing Cooperative. Since the initial publication of this manual in March 1968, the committee has met regularly to discuss the application of various parts of the manual to specific situations affecting each fund. Subsequent revisions of the manual reflect many of the generally accepted accounting principles (GAAP) affirmed by the Governmental Accounting Standards Board in Statement 1, Authoritative Status of NCGA Pronouncements and AICPA Industry Audit Guide. Legal references provided in this edition are those in effect as of December Appreciation is hereby expressed for the time and assistance given to this endeavor by all members of the manual committee and others whose efforts made this publication possible. INTRODUCTION (Rev. 9/97)

5 TABLE OF CONTENTS SUMMARY CHAPTER DESCRIPTION CH SEC PAGE I. PRINCIPLES OF ACCOUNTING I 1 28 II. BUDGETING II 1 14 III. ACCOUNTING GUIDELINES Index III INDEX 1 Guideline No. 1 - Internal Control Structure III G Guideline No. 2 - Payroll Process III G Guideline No. 3 - Revenues and Receipts III G Guideline No. 4 - Expenditures and Disbursements III G Guideline No. 5 - Inventory III G Guideline No. 6 - Fixed Assets III G Guideline No. 7 - Investments III G Guideline No. 8 - Debt and Leases III G Guideline No. 9 - Interfund and Intergovernmental Transactions III G Guideline No.10- Joint Ventures and Interlocal Governmental Agreements III G IV. GENERAL LEDGER ACCOUNTS IV 1-42 V. REVENUE ACCOUNTS V 1 32 VI. VII. EXPENDITURE ACCOUNTS Introduction VI 1 General Fund VI GF 1 70 Capital Projects Fund VI CPF 1 14 Transportation Vehicle Fund VI TVF 1 2 Associated Student Body Fund VI ASB 1 2 JOURNAL ENTRIES Introduction VII 1 4 General Fund VII GF 1 26 Capital Projects Fund VII CPF 1 10 Debt Service Fund VII DSF 1 10 ASB Fund VII ASB 1 8 Transportation Vehicle Fund VII TVF 1 8 Trust Funds VII TF 1 6 General Long Term Debt Account Group VII GLTDAG 1 6 General Fixed Assets Account Group VII GFAAG SUMMARY 1

6 VIII. REPORTING VIII 1 16 IX. INFORMATION UNIQUE TO EACH FUND AND ACCOUNT GROUP FUNDS: GOVERNMENTAL FUNDS: General Fund IX GF 1 2 Associated Student Body Fund Associated Student Body Fund IX ASB 1 16 ASB General Ledger Accounts IX ASB ASB Fund Journal Entries IX ASB ASB Fund Laws, Rules, and Regulations IX ASB Capital Projects Fund IX CPF 1 8 Transportation Vehicle Fund IX TVF 1 2 Debt Service Fund IX DSF 1 6 PROPRIETARY FUNDS: Enterprise Fund Internal Service Fund NOT ALLOWABLE NOT ALLOWABLE FIDUCIARY FUNDS: Expendable and Nonexpendable Trust Funds Expendable and Nonexpendable Trust Funds IX TF Trust Fund General Ledger Accounts IX TF Trust Fund Journal Entries IX TF Pension Trust Fund NOT ALLOWABLE Agency Fund IX AF 1-2 ACCOUNT GROUPS: General Fixed Assets Account Group IX GFAAG 1 2 General Long-Term Debt Account Group IX GLTDAG 1 2 X. GRANT MANAGEMENT Introduction X 1 Financial Management of Grants X 2 3 Purchasing and Procurement Under Federal Grants X 4 7 Time and Effort Record-Keeping for Federal Programs X 8 State Reporting and Reimbursement X 9 Audits of Federal Grants X 12 References X SUMMARY 2

7 APPENDIX DESCRIPTION APPX SEC PAGE APPENDIX A - GLOSSARY OF TERMS A 1 50 APPENDIX B - LIMITATION OF INDEBTEDNESS B 1 6 APPENDIX C SUGGESTED NOTES TO FINANCIAL STATEMENTS Introduction and Index C INDEX 1 Cash Notes C CASH 1-12 GAAP Notes (No Fixed Assets) C F GAAP Notes C GAAP 1 18 APPENDIX D SELECTED PRONOUNCEMENTS OF THE GOVERNMENTAL ACCOUNTING STANDARDS BOARD Summary D 1 2 Financial Reporting Entity - GASB 14 D GASB Accounting for Compensated Absences - GASB 16 D GASB Accounting and Financial Reporting for Certain Grants and Other Financial Assistance - GASB 24 D GASB Investments and Investment Pools GASB 31 D GASB APPENDIX E REFERENCE MATERIALS State Auditor s Office Bulletins Index E 1 Office of Management and Budget Circulars E 2 Superintendent of Public Instruction Bulletins E SUMMARY 3

8 This page left blank intentionally SUMMARY 4

9 TABLE OF CONTENTS DETAIL CHAPTER DESCRIPTION CH SEC PAGE I. PRINCIPLES OF ACCOUNTING I Principle 1 - Accounting and Reporting Capabilities I -- 3 Principle 2 - Fund Accounting Systems I -- 5 Principle 3 - Types of Funds I -- 6 Principle 4 - Number of Funds I Principle 5 - Accounting for Fixed Assets and Long-Term Liabilities I Principle 6 - Valuation of Fixed Assets I Principle 7 - Depreciation of Fixed Assets I Principle 8 - Accrual Basis in Governmental Accounting I Principle 9 - Budgeting, Budgetary Control, and Budgetary Reporting I Principle 10 - Transfer, Revenue, Expenditure, and Expense Account Classification I Principle 11 - Common Terminology and Classification I Principle 12 - Interim and Annual Financial Reports I II. BUDGETING II 1 16 The Budget Purpose and Fiscal Year II Budget Objectives II -- 1 School District Fiscal Year II -- 2 Budget Preparation II Budget Preparation II -- 3 Budget Review II -- 3 Budget Edits II -- 4 Budget Document II -- 4 Basis of Budgeting and Accounting II -- 4 Budgeting Local, State, and Federal Revenues II -- 4 Other Financing Sources II -- 5 Budgeting Receivable Collectible in Future Fiscal Periods II -- 6 Short-Term Loan Obligations - Revenue Anticipation Notes II -- 6 Budgeting Expenditures II -- 6 Salary Exhibits (GF and CPF only) II DETAIL 1

10 II. BUDGETING II 1 16 Salary Schedules II -- 7 Preparing Muliple-Year Budgets (Optional) II -- 7 ASB Budgeting II -- 8 Approval Process II -- 8 Participation in League and Other Joint Activities II -- 8 Public Hearings II -- 9 Budget Presentation at a Pubic Hearing II -- 9 Public Hearings for Budget Extensions II -- 9 Budget Extensions and Transfers II Monthly Review of Budget to Determine Necessity of an Extension II Extending or Revising the Budget II Transfers of Budgeted Expenditures During Each Fiscal Year II Financial Reports II Monthly Budget Status Reports and Statements of Financial Condition II Year-End Budget Status Reports and Statements of Financial Condition II Personnel Reports II Monthly Personnel Budget Status Reports II III - ACCOUNTING GUIDELINES INDEX III 1 GUIDELINE NO. 1 - INTERNAL CONTROL STRUCTURE III G General Standards Reasonable Assurance III G-1 2 Appropriate Organization Structure and Competent Personnel III G-1 2 Control Objectives III G-1 2 Control Techniques III G-1 2 Specific Standards III G Documentation III G-1 3 Recording of Transactions and Events III G-1 3 Execution of Transactions and Events III G-1 3 Separation of Duties III G-1 2 Supervision III G-1 4 Access to and Accountability for Resources III G-1 4 Audit Resolution Standard III G DETAIL 2

11 III. ACCOUNTING GUIDELINES (CONTINUED) GUIPersonnel Decisions III G Payroll Data Base Time and Effort GUITimely Deposit III G Cash Receipts III G-3 1 Revenue Accruals III G-3 1 Receivables III G-3 2 Electronic Funds Transfer III G-3 3 III G-3 3 GUIEmployee Travel Imprest Bank Accounts (including Advance III G-4 1 Travel) and Petty Cash, Stamp and Vo Change Funds (Accounts) III G-4 3 Facsimile Signatures III G-4 5 III G-4 7 GUITangible Materials III G Prepaid Items III G-5 1 III G-5 2 GUIIndividual Fixed Asset Record III G Asset Cost III G-6 1 Maintaining a Fixed Asset System: Accounting III G-6 2 Maintaining a Fixed Asset System: Physical III G-6 3 DeprecInventory III G-6 5 III G-6 6 GUIDELINE NO. 7 - INVESTMENTS III G GUILimitations of Indebtedness III G Claims and Judgments III G-8 1 Warrants III G-8 2 Tax and Revenue Anticipation Notes III G-8 2 Bond Anticipation Notes III G-8 3 Limited General Obligation Bonds III G-8 3 Unlimited General Obligation Bonds III G-8 3 Advanced Refunding and Defeased Debt III G-8 3 Insubstance Defeasance III G-8 4 Regular Method of Advance Bond Refunding III G-8 4 Crossover Method of Advance Bond Refunding III G-8 4 III G DETAIL 3

12 III. ACCOUNTING GUIDELINES (CONTINUED) Arbitrage Capitalized Leases or Leases with Option to Purchase III G-8 5 Operating Leases III G-8 6 Compensated Absences III G-8 6 Conditional Sales Contracts (Purchases) III G-8 7 Auditor's Exceptions and Monetary Findings III G-8 8 Unemployment Compensation, Self-Insured III G-8 8 Worker's Compensation, Self-Insured III G-8 8 Duplicate Instruments III G-8 9 III G-8 11 GUIINTERGOVERNMENTAL TRANSACTIONS Interfund Loans III G Interfund Transfers III G-9 1 Interfund Reimbursements III G-9 2 Quasi-External Transactions III G-9 3 Crediting Investment Earnings III G-9 4 III G-9 4 GUIINTERLOCAL GOVERNMENTAL AGREEMENTS Authority III G Accounting Procedures III G-10 1 III G-10 2 IV. GENERAL LEDGER ACCOUNTS IV Introduction General Ledger Account Matrix by Fund IV -- 1 Description of General Ledger Accounts IV -- 3 IV -- 7 V. REVENUE ACCOUNTS V Introduction List of Revenue Accounts by Fund V -- 1 Description of General Ledger Accounts V -- 4 V DETAIL 4

13 VI. EXPENDITURE ACCOUNTS INTRODUCTION VI -- 1 GENERAL FUND VI GF 1 68 Expenditure - Program Codes VI GF 1 Description of Program Codes VI GF 3 Expenditure - Activity Codes VI GF 18 Description of Activity Codes VI GF 20 Expenditure - Object Codes VI GF 38 Transfer Objects of Expenditure VI GF 39 Description of Object Codes VI GF 49 Expenditure Matrixes VI GF 57 CAPITAL PROJECTS FUND VI CPF 1 14 Expenditure - Program Codes VI CPF 1 Expenditure - Type Codes VI CPF 2 Expenditure - Object Codes VI CPF 3 Description of Type Codes VI CPF 10 Expenditure - Source/Use Codes VI CPF 12 Expanded Source/Use Codes VI CPF 13 Example of Source/Use Coding VI CPF 13 State Reporting of CPF Revenues and Other Financing Sources VI CPF 13 Reservation of Fund Balance Using Source/Use Code VI CPF 14 ASSOCIATED STUDENT BODY FUND VI ASB 1 2 Expenditure Codes VI ASB 1 TRANSPORTATION VEHICLE FUND VI TVF 1 2 Expenditure - Program Codes VI TVF 1 Expenditure - Activity Codes VI TVF 1 Expenditure - Object Codes VI TVF 1 Expenditure - Matrixes VI TVF DETAIL 5

14 VII. JOURNAL ENTRIES INTRODUCTION VII 1 4 Index VII -- 1 Table of Journal Entries by Type of Transaction VII -- 2 Flow Chart of Accounting Activities VII -- 4 GENERAL FUND VII GF 1 26 Opening Entry VII GF 1 Budget Entries VII GF 2 Budget Entries - Modification VII GF 2 Revenues - Property Tax VII GF 3 Revenues VII GF 4 Revenues - Other Financing Sources VII GF 4 Expenditures VII GF 6 Encumbrances VII GF 8 Cash - Imprest VII GF 9 Interfund Receivable/Payable and Transfers VII GF 10 Prepaid Items VII GF 12 Investments VII GF 12 Contracts Payable - Long-Term VII GF 13 Inventory - Supplies and Materials Perpetual Method VII GF 15 Inventory - Supplies and Materials Periodic Method VII GF 15 Inventory - Food Services - Perpetual Method VII GF 16 Inventory - Food Services - Periodic Method VII GF 17 Accounts Payable VII GF 18 Fixed Assets - Trade-in VII GF 19 Deferred Compensation VII GF 20 Self-Insured Industrial Insurance VII GF 21 Unemployment Compensation Benefits Reimbursement (District Not in Pool) VII GF 22 Adjustments - Prior Period or Year - Immaterial Errors VII GF 22 Adjustments - Prior Period or Year - Material Errors VII GF 22 Accrual for Payroll VII GF 23 Adjustments - Prior Period or Year - Fund Entity Changes VII GF 24 Accrual for Vacation and Sick Leave Payable VII GF 24 Closing Entries VII GF DETAIL 6

15 VII. JOURNAL ENTRIES (CONTINUED) CAPITAL PROJECTS FUND VII CPF 1 10 Opening Entry VII CPF 1 Budget Entry VII CPF 1 Revenues - Property Tax VII CPF 2 Investments VII CPF 3 Revenues VII CPF 3 Revenues - Other Financing Sources VII CPF 4 Interfund Receivables/Payables and Transfers VII CPF 4 Expenditures VII CPF 5 Contracts Payable - Long-Term VII CPF 7 Revenues - State Matching VII CPF 8 Closing Entries VII CPF 9 DEBT SERVICE FUND VII DSF 1 10 Opening Entry VII DSF 1 Budget Entry VII DSF 1 Revenues - Property Tax VII DSF 2 Revenues - Other Financing Sources VII DSF 3 Expenditures VII DSF 4 Expenditures - Bond Redemption VII DSF 4 Interfund Receivables/Payables and Transfers VII DSF 5 Investments VII DSF 6 Accrued Interest VII DSF 7 Regular Method of Advance Bond Debt Refunding VII DSF 7 Crossover Method of Advance Bond Debt Refunding VII DSF 8 Closing Entries VII DSF 9 ASB FUND VII ASB 1 8 Opening Entry VII ASB 1 Budget Entry VII ASB 1 Cash - Imprest VII ASB 2 Inventory - Supplies and Material - Periodic Method VII ASB 2 Investments VII ASB 3 Expenditures VII ASB 3 Accounts Payable VII ASB 4 Contracts Payable VII ASB 4 Encumbrances VII ASB 5 Revenues VII ASB 5 Interfund Receivables/Payables and Transfers VII ASB 6 Fixed Assets - Purchase VII ASB 7 Closing Entries VII ASB DETAIL 7

16 VII. JOURNAL ENTRIES (CONTINUED) TRANSPORTATION VEHICLE FUND VII TVF 1 8 Opening Entry VII TVF 1 Budget Entry VII TVF 1 Revenues - Property Tax VII TVF 2 Investments VII TVF 3 Revenues VII TVF 3 Revenues - Other Financing Sources VII TVF 4 Interfund Receivables/Payables and Transfers VII TVF 4 Expenditures VII TVF 5 Contracts Payable - Long-Term VII TVF 6 Fixed Assets - Purchase VII TVF 7 Closing Entries VII TVF 7 TRUST FUNDS VII TF 1 6 Opening Entry - Expendable Trusts VII TVF 1 Opening Entry - Nonexpendable Trusts VII TVF 1 Fund Balance - Reservation VII TVF 1 Cash - Transfer to County Treasurer VII TVF 2 Cash - Imprest VII TVF 2 Investments VII TVF 3 Investments - Expendable Trusts VII TVF 3 Investments - Nonexpendable Trusts VII TVF 3 Expenditures - Expendable Trusts VII TVF 4 Expenses - Nonexpendable Trusts VII TVF 4 Revenues - Expendable Trusts VII TVF 5 Closing Entries (Both Expendable and Nonexpendable Trusts) VII TVF 5 Closing Entries (Nonexpendable Trusts Only) VII TVF 5 GENERAL LONG-TERM DEBT ACCOUNT GROUP VII GLTDAG 1 6 Opening Entry VII GLTDAG 1 Collateral Entries - Debt Service Fund VII GLTDAG 1 Capital Projects Fund VII GLTDAG 4 Transportation Vehicle Fund VII GLTDAG 4 General Fund VII GLTDAG 5 Regular Method of Advance Bond Debt Refunding VII GLTDAG 6 Crossover Method of Advance Bond Debt Refunding VII GLTDAG DETAIL 8

17 VII. JOURNAL ENTRIES (CONTINUED) GENERAL FIXED ASSETS ACCOUNT GROUP VII GFAAG 1 6 Opening Entry VII GFAAG 1 Collateral Entries - Construction in Progress VII GFAAG 1 General Fund VII GFAAG 2 Transportation Vehicle Fund VII GFAAG 2 Fixed Assets - Sale VII GFAAG 3 Fixed Assets - Trade-in VII GFAAG 3 ASB Fund VII GFAAG 4 Inventory - Fixed Assets VII GFAAG 4 Closing Entry VII GFAAG 5 VIII. REPORTING VIII 1 16 Financial Reporting-Overview VIII -- 1 Budgets VIII -- 4 Comparing Actual Financial Results with the Legally Adopted Budget VIII -- 4 Form F Official Budget Document VIII -- 4 Form F Budget Status Reports and Statements of Financial Position VIII -- 4 FinPersonnel Budget Status Reports VIII -- 4 VIII Assessing Financial Condition and Results of Operation VIII -- 5 Report F Annual Financial Statements VIII -- 5 Overview of the Report F-196 VIII -- 6 Report F-196 Time Schedule VIII -- 6 Reporting Combined and Retitled Accounts in the Report F-196 VIII -- 6 Making Corrections to Report F-196 Annual Financial Statements VIII -- 7 Financial Reporting of Corrections VIII -- 8 Definition of Materiality VIII -- 8 Financial Reports in Conformance with Generally Accepted Accounting Principles (GAAP) VIII -- 9 Post-Closing Journal Entries to Meet GAAP Requirements VIII -- 9 Notes to the Financial Statements VIII State ACertificates of Award VIII VIII Compliance Opinions VIII Financial Reports VIII Internal Control Structure VIII DETAIL 9

18 VIII. REPORTING (CONTINUED) VIII 1 16 Other Financial Reports VIII Assisting in Determining Compliance with Finance-Related Laws, Rules, and Regulations VIII Schedule of Federal Financial Assistance VIII Assisting in Evaluating and Effectiveness VIII IX. INFORMATION UNIQUE TO EACH FUND AND ACCOUNT GROUP GOVERNMENTAL FUNDS GENERAL FUND IX GF 1 2 ASSOCIATED STUDENT BODY FUND IX ASB 1 16 Introduction IX ASB 1 2 Associated Student Body Moneys IX ASB 1 Trust Moneys and Nonpublic Moneys IX ASB 2 Accounting Methods and Procedures IX ASB 3 4 Basis of Accounting IX ASB 3 League and Other Joint Activities IX ASB 4 Suggested System of Accounting for the ASB Fund and the School Level IX ASB 5 16 Accounting Organization and Methods IX ASB 5 10 Introduction IX ASB 5 Organization IX ASB 6 Methods IX ASB 9 Accounting Procedures IX ASB Revenues IX ASB 11 Purchasing Procedures IX ASB 13 Disbursements at School Level IX ASB 14 Monthly Financial Reports IX ASB 15 ASB General Ledger Accounts IX ASB General Ledger Accounts IX ASB-1 1 Description of General Ledger Accounts IX ASB DETAIL 10

19 IX. INFORMATION UNIQUE TO EACH FUND AND ACCOUNT GROUP (CONTINUED) GOVERNMENTAL FUNDS ASSOCIATED STUDENT BODY FUND ASB Fund Journal Entries IX ASB Opening Entry IX ASB-2 1 Budget Entry IX ASB-2 1 Cash - Imprest IX ASB-2 2 Inventory Supplies and Materials Periodic Method IX ASB-2 2 Investments IX ASB-2 3 Expenditures IX ASB-2 3 Accounts Payable IX ASB-2 4 Contracts Payable IX ASB-2 4 Encumbrances IX ASB-2 5 Revenues IX ASB-2 5 Interfund Receivables/Payables and Transfers IX ASB-2 6 Fixed Assets - Purchase IX ASB-2 7 Closing Entries IX ASB-2 7 ASB Fund Laws, Rules, and Regulations IX ASB Revised Code of Washington (RCW) - Index IX ASB-3 1 RCWs for the ASB Fund IX ASB-3 1 Washington Administrative Code (WAC) - Index IX ASB-3 4 WACs for the ASB Fund IX ASB DETAIL 11

20 IX. INFORMATION UNIQUE TO EACH FUND AND ACCOUNT GROUP (CONTINUED) GOVERNMENTAL FUNDS CAPITAL PROJECTS FUND IX CPF 1 8 Introduction IX CPF 1 CPF Allowable Expenditures by Revenue Source IX CPF 2 Capital Outlay Expenditures IX CPF 4 Salaries IX CPF 4 Repairs IX CPF 5 Renovations IX CPF 5 Initial Equipment IX CPF 5 Replacement IX CPF 6 Acquisition or Relocation of Modular (Portable) Buildings IX CPF 6 Energy Capital Improvements IX CPF 6 Ineligible Expenditures IX CPF 6 Instructional Supplies IX CPF 6 Bonded Indebtedness IX CPF 7 Bond Election IX CPF 7 Vehicles IX CPF 7 TRANSPORTATION VEHICLE FUND IX TVF 1 2 DEBT SERVICE FUND IX DSF 1 6 Introduction IX CPF 1 Accounting for Advance Bond Refunding IX CPF 2 Questions and Answers on the Regular Method of Advance Bond Refunding IX CPF 3 Questions and Answers on the Crossover Method of Advance Bond Refunding IX CPF DETAIL 12

21 IX. INFORMATION UNIQUE TO EACH FUND AND ACCOUNT GROUP (CONTINUED) PROPRIETARY FUNDS: ENTERPRISE FUND INTERNAL SERVICE FUND FIDUCIARY FUNDS: NOT ALLOWABLE NOT ALLOWABLE EXPENDABLE AND NONEXPENDABLE TRUST FUNDS Expendable and Nonexpendable Trust Funds IX TF 1 10 Introduction IX TF 1 Expendable Trust Funds IX TF 2 Nonexpendable Trust Funds IX TF 2 Trust Fund General Information IX TF 3 5 Definitions IX TF 3 Trust Instruments IX TF 3 Establishment of Trust Funds IX TF 4 General Fund Revenue Account Grants, Gifts and Donations IX TF 4 Private Foundations IX TF 4 Budgeting IX TF 4 Gains and Losses of Nonexpendable Trust Investment Principal and Earnings IX TF 5 System of Accounting for Trust Funds IX TF 6 8 Introduction IX TF 6 Deposit and Investment of Trust Fund Moneys IX TF 6 Accounting Procedures IX TF 7 Disbursement of Trust Fund Moneys IX TF 7 Imprest Bank Checking Account IX TF DETAIL 13

22 IX. INFORMATION UNIQUE TO EACH FUND AND ACCOUNT GROUP (CONTINUED) FIDUCIARY FUNDS: EXPENDABLE AND NONEXPENDABLE TRUST FUNDS Expendable and Nonexpendable Trust Funds IX TF 1 10 Accounting Records IX TF 9 10 Introduction IX TF 9 Cash Receipts/Cash Receipts Journal IX TF 9 Check Register IX TF 9 Imprest Bank Checking Account Replenishment Request IX TF 9 Reconciliation of Imprest Bank Check Account Statement IX TF 9 Payment Order IX TF 10 Individual Trust Account Balance Record and Treasurer's Report IX TF 10 Accounts for Individual Accounts IX TF 10 Trust Fund General Ledger Accounts IX TF General Ledger Accounts IX TF-1 1 Description of General Ledger Accounts IX TF-1 3 Trust Fund Journal Entries IX TF Opening Entry - Expendable Trusts IX TF-2 1 Opening Entry - Nonexpendable Trusts IX TF-2 1 Fund Balance - Reservation IX TF-2 2 Cash - Transfer to County Treasurer IX TF-2 2 Cash - Imprest IX TF-2 2 Investments IX TF-2 3 Investments - Expendable Trusts IX TF-2 3 Investments - Nonexpendable Trusts IX TF-2 4 Expenditures - Expendable Trusts IX TF-2 4 Expenses - Nonexpendable Trusts IX TF-2 5 Revenues - Expendable Trusts IX TF-2 5 Closing Entries (Nonexpendable and Nonexpendable Trusts) IX TF-2 5 Closing Entries (Nonexpendable Trusts Only) IX TF DETAIL 14

23 IX. INFORMATION UNIQUE TO EACH FUND AND ACCOUNT GROUP (CONTINUED) FIDUCIARY FUNDS: PENSION TRUST FUND NOT ALLOWABLE AGENCY FUND IX AF 1 2 GENERAL FIXED ASSETS ACCOUNT GROUP IX GFAAG 1 2 GENERAL LONG-TERM DEBT ACCOUNT GROUP IX GLTDAG 1 2 X. GRANT MANAGEMENT Introduction X -- 1 Financial Management of Grants X Purchasing and Procurement Under Federal Grants X Time and Effort Record Keeping for Federal Programs X -- 8 State Reporting and Reimbursement X -- 9 Audits of Federal Grants X References X DETAIL 15

24 APPENDIX DESCRIPTION APPX SEC PAGE APPENDIX A GLOSSARY OF TERMS A APPENDIX B LIMITATION OF INDEBTEDNESS B APPENDIX C SUGGESTED NOTES TO FINANCIAL STATEMENTS Introduction and Index C INDEX 1 Cash Notes C CASH 1 12 GAAP Notes (No Fixed Assets) C F GAAP Notes C GAAP 1 18 APPENDIX D SELECTED PRONOUNCEMENTS OF THE GOVERNMENTAL ACCOUNTING STANDARDS BOARD Summary D 1 2 Financial Reporting Entity - GASB 14 D GASB Impact on the School District s Financial Statements D GASB 14 1 Flowchart D GASB 14 2 Notes on Financial Report Entity Flowchart D GASB Interlocal Cooperation D GASB 14 6 Joint Ventures D GASB Accounting for Compensated Absences - GASB 16 D GASB Vacation Leave D GASB Sick Leave D GASB Terminated Method Calculation D GASB Vesting Method Calculation D GASB Flowcharts D GASB Accounting and Financial Reporting for Certain Grants and Other Financial Assistance - GASB 24 D GASB 24 1 Pass-Through Grants D GASB 24 1 Food Stamps D GASB 24 1 On Behalf Payments for Fringe Benefits and Salaries D GASB 24 1 Investments and Investment Pools D GASB APPENDIX E REFERENCE MATERIALS State Auditor s Office Bulletins Index E 1 Office of Management and Budget Circulars E 2 Superintendent of Public Instruction Bulletins E DETAIL 16

25 This page left blank intentionally DETAIL 17