Chart of Accounts Overview

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.

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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/COA200
  0.pdf