2010-2011 unaudited actuals manual - San Bernardino County ...

2010-2011 

UNAUDITED ACTUALS 

MANUAL 

A Guide to Process and Procedures to Close Your Financial 

Records for the Year 

1

DATES MAY 

BE SUBJECT 

TO CHANGE 

San 

County 

Bernardino 

Superintendent 

County Superintendent 

of Schools 

of Schools 

Fiscal Management and Advisory Services 

Business Advisory Services 

June 1 July 1 Aug 1 Sept 1 Oct 1 Nov 1 

Budget To BAS within 

5 days of Adoption or by 

8:00 am (7/1) 

Books Closed to June 

Activity; System 

Locked (7/8) 

SACS Extract TRC 

Error Listings to 

Districts (7/19) 

Accrual Listing 

To Districts 

(7/26) 

July 1 Adopted Budgets to Business Advisory Services (BAS). 

All District Budgets must be in Financial system and locked (8:00 a.m.) 

(Budget submission due within 5 days of adoption ) 

July 8 Books Closed to June Activity (System locked- Cash Balances Reconciled and Rolled) 

July 16 (to be determined by BAS) First SACS TRC Provided to Districts for Error Review and Correction 

July 26 Accrual Listing to Districts (from Business Advisory) 

Aug 2 Second SACS TRC Provided to Districts for Error Review and Correction 

August 10 Budget Transfers to Business Advisory Services 

Submit by 8:00 a.m. 

BUDGET & YEAR -END TIMELINE 

BT to BAS 

by 2:00 

pm (8/22) 

Accruals 

locked 

By BAS 

8:00 am 

(8/16) 

Financial System Closed 

(8/31) 

System Opened on Request 

for Corrections of Technical Errors 

8/23 - 8/31 

August 16 Accruals locked at 8:00 a.m. by BAS. Any changes require an Accrual Change Request Form 

Books CLOSED 

August 23 Accrual and Apportionment review letters to Districts, 3 rd SACS TRC Provided 

Ability to make material changes and fix technical data input errors (August 23-31) 

District’s will receive e-mail if accruals have been completed sooner. 

Call BAS your designated advisor or Account Technicians to have system opened. 

August 31 Technical corrections to the Unaudited Actuals & BTs (Due to Business Advisory Services by 4 p.m. 

September 15 UNAUDITED ACTUALS TO Business Advisory Services 

October 15 Unaudited Actuals transmitted to CDE (by Business Advisory Services) 

Unaudited Actuals Asset and Liability Rolls Completed by BAS 

2 

Board Certified UA Reports 

Due to BAS 

(9/15) 

Technical corrections 

to the UA’s and BTs 

due to BAS 8/31 

Reports Sent to CDE 

Completion of 

Asset/Liability 

Roll (10/15)

San Bernardino County Superintendent of Schools 


TIMELINES 

2011-12 Adopted Budgets, Year-End Activity and Final Financial Reports 2010-11 

K-12 (SINGLE & DUAL BUDGET ADOPTION CYCLE DISTRICTS) AND COMMUNITY COLLEGES 

YEAR-END CLOSING DEADLINES 

Revised 6/1/2011 

DEADLINE ACTIVITY DISTRICT RESPONSIBILITY COUNTY OFFICE RESPONSIBILITY 

April 15, 

2011 

June 3, 2011 


June 17, 

2011 

Newspaper Designation Certification 

Take Board action on Newspaper by 4-15. Pay for Advertisement 

Provide name of local paper to BAS 

Final Accounts Payable “OPEN” Batch Listing Districts should validate that they do not have open batches for Accounts Payable 

Payments 

Auditable Commercial Warrants Batches (including 

Warrants for Wire Transfers of payment of TRANS and COP 

payments) must be released in system no later than 2:30 pm 

on June 3, 2011 for guaranteed payment in 2010-11. 

Deactivation of Secure I.D. will be delayed for electronic 

audit districts until June 17, 2011 at 2:30 p.m. Processing of 

auditable batches will only be guaranteed for pre-lists 

received on or before June 6, 2011. 

Commercial Warrant “A” Batch Pre-lists from June 3rd 

release due no later than 2:30 p.m 

Commercial Warrants Security ID Card 

Deactivated at 2:30 p.m. 

Pre-lists must be received in DFS June 6th by 4:00 p.m. 

(See DFS Bulletin 068 dated May 4, 2011 for further details 

http://www.sbcss.k12.ca.us/busServe/TALK/dfsBull/Year- 

End%20Closing%20Deadlines%20for%20Fiscal%20Year%202010-11%20(5.4.11).pdf 

Commercial Warrants released between June 6 and June 17 that are rejected by DFS and 

assigned to a 9000 batch and voided by DFS. Voided Batch Transaction Reports will be 

sent to each district and the district will need to be set up as estimated payables. 

(See DFS Bulletin 068 dated May 4, 2011 for further details 

http://www.sbcss.k12.ca.us/busServe/TALK/dfsBull/Year- 

End%20Closing%20Deadlines%20for%20Fiscal%20Year%202010-11%20(5.4.11).pdf 

4 

Place ads in newspapers of general 

circulation within timelines designated by 

District Board Meeting to adopt Budget. 

District Financial Services will process 

commercial accounts payable pre-list 

received by deadline as June business. 

District Financial Services will process prelists 

received as June business in the 

financial system. 

Deactivation is initiated by District Financial 

Services at 2:30 p.m. District Financial 

Services will process as many commercial 

accounts payable payments as possible as 

June business. 

Warrant Cancellations District Financial Services will process 

warrant cancellations received by the June 

17th deadline (4:00 p.m.) as June business. 

Inter-fund Transfers Inter-fund releases from June 17th by 4:00 p.m. Documentation must be received in 

District Financial Services by June 20th at 4:00 p.m. 

District Financial Services will inactivate 

Inter-fund Transfers June 17th at 2:30 pm. 

Documentation must be received by June 

20 st at 4:00 p.m. 

County Cash Transfers Districts may distribute to accounts once District Financial Services has released. BAS and Internal Business submit cash 

transfers to District Financial Services. The 

transfers must be received in District 

Financial Services by 4:00 p.m. (Cash 

Transfers affecting the Auditor’s Financial 

Accounting System (FAS).



TIMELINES 




Page 2 



Inter-fund Transfer Transmittals 

received DFS by 4:00 p.m. 

Transmittals released on June 17th must be presented to DFS by 4 p.m. 

5 

District Financial Services will process Inter-fund as June business. 

June 24, 2011 Deposits of Money Must be received in District Financial Services by 3:00 p.m. District Financial Services will process deposits received by June 24th 

deadline (3:00 p.m.) as June business. Deposits for June receipts made after 

this date are treated as Accounts Receivables. 

June 30, 2011 2010-11 ACCRUALS: District Input Purchase Orders can be rolled to Current Liability. Receipt of goods and 

services as of 6-30-2011 must be validated. 

Accrual reports should be submitted to BAS when completed. Districts 

should lock system after completion of accruals. 

July 1, 2011 

First Business 

Day 


Or sooner 

Districts may begin entering Accruals 

“on or before 7-1” or wait until July 7th 

for close of June Month 

District must use AP set-up program to enter accruals and journal to proper 

set-up objects. 

BAS will validate accruals on August 16, 2011 

Budget Transfers for June Posting Must be received by BAS by 4:00 p.m. Budget transfers received by July 1 will be processed on the June books 

before closing the month of June 2011. Intra-district budget transfers may be 

posted by districts until the June month-end closing date of July 7th. 

BUDGET SUBMISSION: 

(K-12 Single Budget Adoption Cycle 

Districts) 

2011-12 Budget Data (as adopted by 

Governing Board) must be in the 

Financial System by 8:00 a.m. 

Wednesday, July 1, 2011. 

File with BAS by 4:00 p.m by the 5 th day after adoption 

All districts must input 2010-11 budget data in GLD and lock system. 

(NOTE: all budgets will be locked Tentative Status in GLD pending BAS 

validation of agreement between budget document and data in system). 

BAS will validate agreement between and hard copy of budget. BAS will 

unlock system for any corrections required to be made by District. After 

validation, budgets will be rolled to “ADOPTED STATUS” in FCS 

Deadline for BAS review of Budgets: August 15th. Once Budget is 

approved, budget will be rolled to “APPROVED STATUS”. 

NOTE: K-12 and ROP ADOPTED BUDGETS MUST BE SUBMITTED TO BAS WITHIN 5 WORKING DAYS OF ADOPTION OR BY JULY 1 ST , WHICHEVER OCCURS FIRST.



TIMELINES 




Page 3 


July 1, 2011 Community Colleges Tentative 

Charter School Budgets 

File with BAS by July 1, 2011 Statutory Date 

District Review Completed and filed with BAS by July 1, 2011 

First Business Day Friday, July 1, 2011 

July 1, 2011 Self Insured Workers Comp Rates Provide Worker’s Comp Rates to District Financial Services Attn: 

Suzanne Retherford in writing if not part of JPA 

JPA Worker’s Comp Rates 

Open Batches from FY 2010-11 

System opened for 2011-12 payment 

processing 

July 7, 2011 System is closed to all further transactions 

that affect actual month of June activity. 

July 8, 2011 Final Monthly Financial Report 

(excluding Accruals) 

For districts that waited to receive the 

official Final June Financial Report from 

District Financial Services before entering 

Accruals. 

District must void all NON-AUDITABLE batches. Any payments not 

process will need to be setup as a liability by the District. 

District may release transactions 

6 

BAS Reviews Community Colleges: 

Budgets remain in “TENTATIVE STATUS” in FCS but system will be 

unlocked to allow continued financial activity 

And input of proposed adopted budget 

BAS comments on District Review of Charter during District Budget review. 

District Financial Services collects rates for July 15th and all future payrolls 

Risk Management provides rates to District Financial Services 

District Financial Services changes rates for July 15th and all future payrolls 

DFS will void any remaining 2010-2011 AUDITABLE (including 9000) 

batches and provide each district with a Voided Batch Report as soon as 

practicable. District Financial Services aims to have the system opened by the 

first working day of the month, July 1, 2011. 

District Financial Services aims to have the system opened by the first working 

day of the month, July 1st. 

Districts may book year-end accruals, journals and budget transfers. DFS will continue to process final JE’s and CJV’s for 2010-11 closing. 

Districts have system-capability to run month end report builders to 

determine final data for June before Accrual set-ups 

Financial Activity Report (FAR210)* Budget Summary Report (BDX 210)* General Ledger Report (GLD 160) 

Accrual Reminder: Districts must use AP set-up program and JE to proper 

set-up object. 

Enter 2010-11 Accruals: District Input Do not submit Accrual Report to BAS. BAS will extract information from 

financial system. Districts should lock system after completion of 

accruals on or before August 15th. 

BAS will validate accruals August 16th-22nd. 

Fiscal Year 1 Journal Transactions Districts send prior year journals and cash journal vouchers to DFS DFS reviews and posts prior year journal transactions



TIMELINES 




Page 4 


July 8, 2011 Year end Appropriation Transfer Small districts Elementary under 901 ADA, High Schools under 301 

ADA and Unified under 1501 ADA. 

Submit Board Resolution requesting COE to identify and process 

transfers covering all major object code classifications between funds to 

permit payment f obligations at the close of the fiscal year. 

July 18, 2011 First Financial Extract to SACS Software completed 

for Review of SACS TRC errors Preliminary Close 

report error listing review 

District completes all error corrections in the financial system to ensure 

no SACS material errors upon closing, 

7 

Work with small districts on appropriation transfers within 

deadlines dates. 

BAS advisors work with districts needing help. 

July 20, 2011 ADA generated for completion of U/A Form A BAS extracts P-2, Annual, and Revenue Limit ADA BAS completes draft SACS Attendance Report for District use 

in Unaudited Actuals and sends to Districts with Accrual listing. 

July 25, 2011 ACCRUAL LISTING to district District validates that accruals listed have been incorporated into their 

accruals and reflected in proper set-up object. 

BAS will provide list to districts of common accruals known. 

Form A Attendance Worksheet 

Form RL (Revenue Limit) 

August 1, 2011 Second Financial Extract to SACS Software 

completed for Review of SACS TRC errors 

Preliminary Close report error listing review 

August 8, 2011 


8:00 a.m. 

August 16, 2011 to 


Journal Entries and Cash Journal Vouchers 

Budget Transfers 

Closing entry reports 

FAR 311 Accrual Reports –NOT REQUESTING – 

BAS will run for each district 

******Books Closed 8:00 a.m. ********** 

BAS review of FAR 311 Accruals Reports and TRC 

& 10-11 budget major objects 

August 15, 2011 Deadline for BAS review of Tentative Budgets 

Community Colleges 

Deadline for BAS review of Final Adopted Budgets 

(K-12 Single Budget Adoption Cycle Districts) 

Districts to review their P-2, Annual, and Revenue Limit Attendance 

amounts that should be used in completing the SACS Form A 

Districts to review summary RL calculation for Accruals 



Submit to DFS by 4:00 p.m. August 8, 2011 

Submit to BAS by 8:00 a.m. on August 8, 2011 

Transfers should cover amounts entered from accruals so that all 

Major Object expense lines have positive balance. 

Do not submit accrual reports to BAS. BAS will run reports for review. 

Any changes needed must be submitted on an Accrual Change Report. 

Districts Complete Close Report Once all Transactions are Posted 

Extract Final SACS Financial Data Complete Supplemental Reports. 

Districts reviews SAC Reports for final Board Approval and completes 

Supplemental Reports and Board Presentation 

BAS will distribute Form A Worksheet with official attendance 

amounts certified to CDE for current P-2, Annual and prior year 

guaranteed ADA for those districts declining in ADA. 


DFS will validate non-accrual Journal Entries and Transfers 

received to date and post to system by 4:00 p.m. August 10 th . 

All others will be processed as part of accrual process. 

Districts are reviewed on a first in basis. Status of Accrual 

review letters are sent to all districts at the close of accrual audit 

week. 

Review TRC SAC Reports for needed corrections. 

Upon approval of budget by BAS. 2011-12 Budgets will remain 

in “Tentative System” in system; however, system will be 

unlocked by BAS to allow continued district financial activity. 

Upon approval of Budget by BAS, 2011-12 Budget will be 

rolled from “Adopted Status” to “Approved Status” in FCS and 

GLD as final budget approval letters are sent to district CBOs. 

BAS Notifies District of “Approval” Status



TIMELINES 




Page 5 


August 22, 2011 Accrual and Appropriation Letter Review Letter. Process appropriate journals and budget entries by 

August 31, 2011 4:00 p.m. 


Third and Final Financial Extract to SACS Software 

completed for Review of SACS TRC errors 

Preliminary Close report error listing review 

August 22-31, 2011 Technical Corrections to the Unaudited Actuals in 

the form of Journal Entries (DFS), Budget Transfers, 

and/or the Request for Change or Addition or 

Deletion in Accrual Set UP to BAS by 4:00 p.m. 

System locked 4:00 p.m. 

Thru Advisors – case by case basis 

If minor adjustments fax in accrual sheet; 

If major adjustments – reopen financial system 

August 31, 2011 2010-11 Unaudited Actuals (K-12 Districts & CC) 

******System Closed 4:00 p.m. ********** 

Journal, Budget, and Set-up Entries are due 

August 31, 2011 Final 2010-11 Journals, Budgets, and Set-Ups 

Posted 

Community College Accruals Due 

September 8, 2011 District submits revised budget for conditional 

approval/disapproved budget to BAS 

September 8, 2011 Single Budget Adoption Cycle District Final 

Adopted Budgets (which required Technical 

corrections) rolled from “Adopted Status” to 

“Approved Status” in FCS and GLD. 

September 15, 2011 2010-11 Unaudited Actuals 

(K-12 Single Budget Adoption Cycle Districts and 

Charter Schools) SACS data disk and forms. 

Year-end close report. 

September 15, 2011 District Adopts Appropriation Limit Resolution 

(GANN ) Report filed with Unaudited Actuals 



Districts should complete final reviews of U/As for technical errors and 

process any required journal entries or budget transfers. District can 

submit a request form to correct specific ARs and CLs or create new 

accruals. Form should be submitted to BAS with explanation and 

documentation if needed in lieu of completing Journal. After posting by 

BAS, districts should rerun any corrected report to validate. Final 

corrections will be processed by August 31, 2011 by 4:00 p.m. 

After all final corrections to 2010-11 have been posted, perform yearend 

close. 

8 

BAS notifies districts of any discrepancies discovered during 

accrual review. If the Accrual process is completed before the 

22nd, district letters will be sent and the financial system will 

be available to request corrections as of that date. 


DFS will post 2010-11 Journal Entries and BAS will post 

Budget Transfers. 

Journal entries for 2010-11 will be posted by District Financial 

Services. Reversing entries of 2010-11 accrual corrections are 

gathered and reviewed by DFS at the end of the U/A process. 

BAS will correct/add Accrual entries to adjust FAR 311 based 

on district request by authorized agent. 

Final Journal, Budgets, and Set-Ups are process by BAS 

Colleges Send FAR 310 report to BAS BAS reviews College Accruals – NOT REQUIRED 

To be filed with BAS. District must perform year-end close job before 

preparing final SACS financial reports. Last page of executed year-end 

close report showing completion should be attached to U/A documents. 

Adopted Gann Resolution kept for Audit Review 

BAS to roll from adopted to approved status once budget 

review is completed. 

BAS will review for mathematical and technical accuracy prior 

to submitting to CDE on October 15th. Asset and Liability U/A 

adjustments are validated and rolled to FY 2011-12.



TIMELINES 




Page 6 


September 15, 2011 Community College Budgets Adopted Colleges take proposed Budget to Board 

September 30, 2011 Adopted Budget Submission 

(Community Colleges) 

Budgets (as adopted by the CC Governing Board) 

must be in the Financial System (in GLD) by 

4:00 pm 

October 8, 2011 BAS must approve/disapprove revised budgets 

October 15, 2011 2010-11 Unaudited Actuals to CDE (K-12 and 

Charter Schools) 

CC must adopt budget by September 15 th . CCFS311 completed and 

sent to BAS 

District must input 2011-12 budget data in GLD and lock system. 

(NOTE: All budgets will be in locked tentative status in GLD pending 

BAS validation of agreement between budget document and data in 

systems) 

9 

Budget to be rolled to “Adopted Status” after validation by 

BAS that budget document agrees with 2011-12 budget data in 

system. 

Budget will be rolled from “Adopted Status” to “Approved 

Status” in FCS and GLD unless significant technical 

corrections are required. 

Transmitted by BAS to California Department of Education 

after review for mathematical and technical accuracy. 

Adjusted Beginning Balances BAS will complete asset/liability rolls upon completion of 

unaudited actual validation. 

December 15, 2011 2010-11 Audit Reports (Audited Actuals) 

EC 41020(h) by December 15 th 

January 31, 2012 2010-11 Audit Findings and Recommendations to 

Governing Boards (Statutory date) 

Districts, Colleges, and Charters file Audit Reports with: 

* County Superintendent (Business Advisory Services) 

* Department of Education 

* State Controller 

Any required Audit Adjustments to 2011-12 Beginning Balances should 

be posted by District at this time. 

Written response to Audit Findings to Board by January 31, 2012 and 

Plans of Correction by March 15, 2012 to BAS. 

INTERIM FINANCIAL REPORTS 

1 ST PERIOD ENDED 10-31-11 DUE TO BAS 12-15-11 

2 ND PERIOD ENDING 1-31-12 DUE TO BAS 03-15-12 

BAS will validate that Districts have posted any required Audit 

Adjustments to 2011-12 Beginning Balances by January 31, 

2012.

California School Accounting Manual (CSAM) 

California School Districts maintain their Fund records in the manner prescribed by the California School 

Accounting Manual that is proposed by the California Department of Education and adopted by the State 

Board of Education. To understand the year end process the District must have an understanding of the 

Funds and Accounting Treatment of those funds. 

Types of Funds 

Accounting and financial reporting for local educational agencies (LEAs) focuses initially on funds, which are designed 

to enhance and demonstrate fiscal accountability. The following table shows the three categories of funds used in LEA 

accounting, the ten types of funds within those three categories, and the measurement focus and basis of accounting used 

in each. 

Fund Category Fund Type Measurement Focus Basis of Accounting 

Governmental Funds 

Proprietary Funds 

Fiduciary Funds 

Measurement Focus 

General Fund 

Special Revenue Fund 

Capital Project Fund 

Debt Service Fund 

Permanent Fund 

Enterprise Fund 

Internal Service Fund 

Pension (and other 

employee benefit) 

Trust Fund 

Private-Purpose Trust 

Fund 

Agency Fund 

Current Financial 

Resources 

Economic Resources 

Economic Resources 

10 

Modified Accrual 

Accrual 

Accrual 

Measurement focus describes the types of transactions and events that are reported in a fund’s operating statement. 

Accounting in governmental funds focuses on increases and decreases in current financial resources. It emphasizes 

near-term inflows and outflows of spendable resources, consistent with the focus of the annual operating budget. The 

operating statement of a governmental fund, therefore, includes transactions and events that affect the fund’s current 

financial resources, even though these transactions and events may have no effect on net assets. Such transactions include 

the issuance of debt, debt service payments, and capital outlay. 

Accounting in proprietary funds focuses on increases and decreases in economic resources, much like accounting in 

private-sector businesses. It emphasizes the long-term effects of operations on the fund’s overall resources, i.e., its total 

assets and total liabilities. The operating statement of a proprietary fund includes only transactions and events that 

increase or decrease the fund’s net assets. The operating statement therefore does not include the issuance of debt, debt 

service payments, and capital outlay, because these do not increase or decrease net assets. Changes to these accounts are, 

however, reflected in the proprietary fund’s balance sheet.

California School Accounting Manual (CSAM) 

Basis of Accounting 

Basis of Accounting describes the timing of when transactions and events are recognized in the accounting records and 

reported in the financial statements. 

Cash Basis: Revenues are recorded when cash is received, and expenditures (or expenses) are recorded when cash is 

disbursed. LEAs never use the cash basis of accounting. 

Modified Accrual Basis: Revenues are recognized in the period when they become available and measurable, and 

expenditures are recognized when a liability is incurred, regardless of when the receipt or payment of cash takes place. 

LEAs use the modified accrual basis in governmental funds. 

With respect to revenue, the term available means collectible within the current period or soon enough thereafter to be 

used to pay the liabilities of the current period. Generally, available is defined as collectible within 45, 60, or 90 days. So 

as not to distort normal revenue patterns, with specific respect to grants and state apportionments, the California 

Department of Education has defined available as collectible within one year. Please see the discussion of revenue 

recognition for specific revenue sources in Procedure 510. 

With respect to expenditures, an exception is un-matured interest on general long-term debt, which is recorded when it is 

due. 

Accrual Basis: Revenues are recorded when earned, and expenditures (or expenses) are recorded when a liability is 

incurred, regardless of when the receipt or payment of cash takes place. LEAs use the accrual basis in proprietary and 

fiduciary funds. 

The Governmental Accounting Standards Board (GASB) Statement 33 issues another test of accruing funds from grantor 

agencies. This Statement calls for funds between agencies to be accrued when the grantor recognizes a liability to the 

grantee for the same reporting year. In the past there had not been very much discussion as to how the grantor 

government was treating the entitlement or grant commitment. Starting with the 2001/02 the State of California settled 

their budget issues with deferrals of funds due to School Districts. Discussions between CDE and the State Controller’s 

Office have taken place and State went on record to recognize these deferred appropriations in its financial statements as 

liabilities, which satisfied the GAAP requirement. So it is anticipated that School Districts will accrue these State 

Deferrals. 

One change that caught most Districts and Auditors by surprise in 2003/04 was that the Deferred Maintenance 

apportionment is no longer accrued to the certification year. The State sets up the apportionment from the budget year in 

which the payment is made. Districts have generally until September 30 to make the District’s match for the prior year. 

This may be accrued based on Local District procedures. The payment of the State’s share is general in late December or 

January and is funded in the by that year’s budget should not be accrued. 

CDE has been updating the California Schools Accounting Manual annually. The manual is located on the CDE web site 

http://www.cde.ca.gov/fg/ac/sa/. Districts may download the manual free. 

11

Key Terms and Accounting Treatment 

Accrual 

Activity earned or incurred in the current accounting period that are not received or paid 

until a subsequent accounting period. 

Appropriation Deferrals 

Revenues that are legislatively removed from the current year appropriations then 

appropriated and paid in the next fiscal year. 

Categorical 

Grants, entitlements, and other financial assistance received from other governmental 

entities (e.g., State or Federal government agencies). 

Categorical Programs 

Those activities and operations of the grantee that are necessary to carry out the 

purpose of the grant or entitlement, including any parts of the program funded by 

the grantee. 

Grants/Funding Subject to Deferred Revenue 

Contribution of funds to a LEA to be used for a specific purpose, activity, or facility. 

Grants are considered earned when the expenditure is recorded or expended. The 

related revenue is recognized when the expenditure is made. Carry over is recorded 

as deferred revenue. 

Deferred Revenue 

Revenue that has been received, but is unearned at June 30 or year end. 

Due from Grantor Governments 

Accounts receivable from state and federal agencies. It represents amounts earned or 

allocated to a school district from state sources or earned under a federal financial 

assistance program in excess of cash received during the fiscal year. 

FY1 

FY2 

Fiscal year that will be closed. 

Current working year. 

12

Key Terms and Accounting Treatment (Continued) 

Entitlements/ Funding Subject to Restricted Balance 

Payment based on an allocation formula. Entitlements are considered earned when the 

entitlement is awarded. Revenue is recorded when the monies are received. At year end, 

any unspent funds are recorded as Restricted Ending Balance. 

Grantor 

Grantee 

The organization providing the categorical funding. Most categorical funding is 

through the federal or state government. 

The recipient of categorical funding. This is the school district or county office. 

Indirect Cost Rates 

Those costs that cannot be directly charged to a particular program, but are attributed to 

support services which are necessary to operate the program. These services include but 

are not limited to business, personnel, maintenance, and operations. The maximum 

deduction allowed under a particular categorical program is usually specified in the grant 

application. 

Pass Through Categoricals 

The federal government passes most of the federal categoricals to the State of California 

(and a state agency). The state agency becomes the sub-recipient organization. The state 

agency may be the Department of Education or it might be another agency such as the 

JTPA or the EDD. Funds are received from the state agency and applications and reports 

are filed with the state agency. 

Routine Repair and Maintenance Account 

State law requires that districts establish an RRMA if they are participating in state 

capital facilities programs, Education Code 17070.75(b)(1). For fiscal years 2009-10 

through 2012-13, one percent ( 1% ) of the total General Fund Expenditures & other 

financing uses must be set aside for Routine Maintenance Services (see E.C. 

17070.75(b)(2)). Funds are restricted and must be carried over if not spent. Resource 

8150 is the assigned code for the account. 

Sub-Agreements 

Sub-Awards or contracts where a part or all of an instructional or support activity for which 

the LEA is responsible is conducted by a third party. Amounts are excluded from Indirect 

Cost. 

Temporary Loans 

Temporary loans between funds are accounted for in object 9648 and usually due to assist 

cash flow concerns. Loans made between July 1 st and 121 days before the fiscal year ends 

must be repaid during the fiscal year. Loans made within 120 days or less before the fiscal 

year ends must be repaid prior to June 30 th in following fiscal year. 

13

What’s New – Proposed Changes 

Listed below is a summary of changes made to the 2011-12 budget component of the SACS software. 

We incorporate changes requested by users wherever possible; you may recognize one of your 

suggestions being implemented here. 

This year our efforts were primarily focused on required changes, with some enhancements, as 

summarized below. Many of the required changes relate to the new fund balance classifications 

required by Governmental Accounting Standards Board Statement 54 (GASB 54) or to the newly 

established Fund 10, Special Education Pass-Through Fund. For information on GASB 54 please see 

our January 7, 2011 letter, available at http://www.cde.ca.gov/fg/ac/co/. For information on the new 

Fund 10, please see our March 3, 2011 letter, available at the same location. For additional 

information on each of the changes, refer to the relevant sections of this user guide. 

New Fund Form 

Form 10/10I— Special Education Pass-Through Fund 

Applicable for counties, districts, and JPAs effective 2011-12. 

Revised Fund Forms 

Expenditures by Object Worksheet 

Forms 01/01I, 09/09I, 11/11I, 13/13I, 14/14I, 15/15I, 61/61I, 62/62I, —Shaded 

Object 8997, Transfers of Restricted Balances, line in the Contributions section 

(expired 2009-10). Applicable for counties, districts, and JPAs. 

Form 01/01I—Shaded 2011-12 columns for Budget / Unaudited Actuals 

reporting periods, and deleted from Interims: Object 8046, Supplemental Educational 

Revenue Augmentation Fund (SERAF), lines (expires 2010-11). Applicable for 

districts only. 

Forms 01, 09, 62—Deleted Resources 7155 / 7156 / 7157 / 7158 / 7160 / 7170, 

Instructional Materials: Grades K-8 (Includes Disaster Funding and Fast Growth) 

(expired 2009-10) / Instructional Materials Realignment, IMFRP (AB 1781) (expired 

2009-10) / Instructional Materials: English Language Learners (expired 2009-10) / 

Instructional Materials - Williams Case (expired 2009-10) / Instructional Materials: 

Grades 9-12 (expired 2009-10) / Instructional Material: Braille & Large Print (expired 

2009-10), in the individual resource/line for Object 8590, All Other State Revenue, in 

the Other State Revenue section. Applicable for counties and districts. 

Form 01/01I—Deleted Resources 5600-5625, JTPA/WIA (expired 2009-10), in 

the individual resource/line for Object 8290, All Other Federal Revenue, in the Other 

State Revenue section. Applicable for counties, districts, and JPAs. 

Form 11—Deleted Resource 6390, Adult Education Apportionment (expired 

2009-10), from individual resource/lines for objects 8311 / 8319, All Other State 

Apportionments – Current Year / Prior Years, and included it in the All Other State 

Apportionments – Current Year / Prior Years objects 8311 / 8319 lines in the Other 

State Revenue section. Applicable for counties and districts. 

14

Form 12—Added Resource 6105, Child Development California State 

Preschool Program, to individual resource/line for Resources 6055 and 6056, State 

Preschool, Object 8590, All Other State Revenue, in the Other State Revenue section. 

Form 14—Deleted Deferred Maintenance Allowance, Object 8540, line in the 

Other State Revenue section. Applicable for counties, districts, and JPAs. 

Revised fund forms due to the implementation of GASB Statement 54 (GASB 54): 

All Funds, Section F2, Components of Ending Fund Balance 

Expenditure by Object worksheet 

Expenditure by Function worksheet 

All Funds 

Shaded the budget columns for the following objects, which are valid for actual data only: 

Object 9711, Revolving Cash 

Object 9712, Stores 

Object 9713, Prepaid Expenditures 

Object 9719, All Other Reserves 

Object 9730, General Reserve 

Object 9740, Legally Restricted Balance 

Object 9770, Designated for Economic Uncertainties 

Object 9775, Designated for the Unrealized Gains of Investments and Cash in County 

Treasury 

Object 9780, Other Designations 

Object 9790, Unappropriated Amount 

All Funds Except Funds 61-73 

Added a second Components of Ending Fund Balance section containing the following objects, 

which are valid for budget data only (effective 2011-12): 

Object 9711, Revolving Cash 

Object 9712, Stores 

Object 9713, Prepaid Expenditures 

Object 9719, All Other Nonspendable Assets 

Object 9740, Restricted Balance 

Object 9750, Stabilization Arrangements 

Object 9760, Other Commitments 

Object 9780, Other Assignments 

Object 9789, Reserve for Economic Uncertainties 

Object 9790, Unassigned/Unappropriated Amounts 

Renamed the “Exhibit: Legally Restricted Balance Detail (Object 9740)” worksheet to “Exhibit: 

Restricted Balance Detail.” 

Funds 61-73 

Added a second Components of Ending Net Assets section containing the following objects, 

which are valid for budget data only (effective 2011-12): 

Object 9796, Capital Assets, Net of Related Debt 

Object 9797, Restricted Net Assets 

Object 9790, Unrestricted Net Assets 

Added “Exhibit: Restricted Balance Detail” worksheet 

15

The Total, Restricted Balance line, extracts new Object 9797, Restricted Net Assets, effective 

2011-12. 

Form 95—Student Body Fund 

Opened Form 95 to JPAs for budget and unaudited actuals reporting periods. 

Revised Supplemental Forms 

Form 51A—Analysis of Bonded Indebtedness 

Form 53A—Analysis of Restricted Levies 

Modified forms 51A and 53A to allow columns to be deleted. 

Form 95A—Changes in Assets and Liabilities (Student Body) 

Opened Form 95A to JPAs for budget and unaudited actuals reporting periods. 

Form CASH—Cashflow Worksheet 

Opened Form CASH to budget reporting periods as an optional form. Form CASH will continue to 

be required for interim reporting periods. 

Form CEFB—Components of Ending Fund Balance 

Revised Form CEFB due to the implementation of GASB 54: 

For budget data only, all resources 

All Funds 

Removed the following objects, which are valid for actual data only: 

Object 9730, General Reserve 

Object 9740, Legally Restricted Balance 

Object 9770, Designated for Economic Uncertainties 

Object 9775, Designated for the Unrealized Gains of Investments and Cash in County 

Treasury 

Object 9780, Other Designations 

Object 9790, Unappropriated 

All Funds Except Funds 61-73 

Added the following objects, as applicable for each fund, which are valid for budget data only 

(effective 2011-12). 

Object 9740, Restricted (calculated field) 


Object 9760, Other Commitments 

Object 9780, Other Assignments 


Object 9790, Unassigned/Unappropriated (calculated field) 

Added four buttons: 

Add Commitment 

Delete Commitment 

Add Assignment 

16

Delete Assignment 

Funds 61-73 

Added the following objects, which are valid for budget data only (effective 2011-12). 

Object 9796, Capital Assets, Net of Related Debt 

Object 9797, Restricted Net Assets 

Object 9790, Unrestricted Net Assets (calculated field) 

For actual data, no changes to Form CEFB in the SACS2011 software. For the SACS2012 software, 

the above changes will be made for actual data, and the “Add Designation” and “Delete Designation” 

buttons will be removed. 

Form ICR—Indirect Cost Rate Worksheet 

Opened Form ICR to budget and interim reporting periods as an optional form. Form ICR will 

continue to be required for unaudited actuals reporting period. 

Part III, Indirect Cost Rate Calculation 

Section A, Indirect Costs 

Section B, Base Costs 

Limited the extractions for Line A3, External Financial Audit – Single Audit, and Line A4, Staff 

Relations and Negotiations, to only unrestricted resources, and moved the restricted resources to 

Base Costs on Line B8, External Financial Audit – Single Audit and Other, and Line B7, Board 

and Superintendent, respectively. 

Part III, Indirect Cost Rate Calculation 

Part IV, Carry-forward Adjustment 

Added the following internal form checks. As with all other internal form checks, the user can 

still close the form without fixing the condition, but the condition must be fixed to complete 

an official export. 

If the Line III.D, Preliminary Proposed Indirect Cost Rate, is negative, and Option 1 is 

selected on Line IV.E, Optional Allocation of Negative Carry-forward Adjustment Over 

More Than One Year, the message “ICR is negative, please select Option 2 or 3” will 

display. 

If the Line III.D, Preliminary Proposed Indirect Cost Rate, is negative, and Option 2 is 

selected on Line IV.E, Optional Allocation of Negative Carry-forward Adjustment Over 

More Than One Year, the message “ICR is negative, please select Option 3” will display. 

Form JUV—Juvenile Court and County Community Schools Account 

For the budget and interim reporting periods only, revised Form JUV due to the implementation of 

GASB 54. In the SACS2012 software, this form will be revised for the unaudited actuals reporting 

period. 

Section D2, Components of Ending Fund Balance 

Removed the following sections: 

2a, Reserve for Prepaid Expenditures 

2b, Legally Restricted Balance 

2c, Designated for Economic Uncertainties 

2d, Designated for the Unrealized Gains of Investments and Cash in County Treasury 

17

2e, Capital Outlay Reserve 

2f, Undesignated/Unappropriated Amount 

Added the following sections: 

2a, Nonspendable (includes Object 9713, Prepaid Expenditures) 

2b, Restricted (Net) (Funds 01 and 09, objects 9740 and 9790; and Fund 62, Object 

9797 ) 

2b1, Reserve for Economic Contingencies 

2b2, Reserve for Capital Outlay 

2b3, Remaining Restricted Balance 

Section F, Amount in Excess of Allowable 15% Transfer 

Renamed Line F1 to “Reserve for Economic Contingencies – Current Contributions” 

Renamed Line F2 to “Reserve for Capital Outlay – Current Contributions” 

Section G, Amount in Excess of Allowable 15% Fund Balance 

Renamed Line G2 to “Less: Reserve for Capital Outlay” 

Form JUV-A—Juvenile Court and County Community Schools Account 

Applicable for unaudited actuals reporting period only. 

Applicable for counties only. 

For 2010-11 unaudited actuals reporting period only, renamed Form JUV to Form JUV-A to 

differentiate it from the revised 2011-12 budget and interim reporting periods Form JUV. This form 

JUV-A will be deleted from the SACS2012 software. 

Forms MYP/MYPI—Multiyear Projections 

Adjusted the dollar amounts used in the Unrestricted/Restricted worksheet, Reserve Standard 

Percentage Level (Line F3d for county only) and Reserve Standard – By Amount (Line F3f 

for county and district, and Line F7 for JPA), based on the COLA adjustment made to the 

Criteria and Standards Review form. 

Unrestricted/Restricted Worksheet 

Section F. Recommended Reserves: 

Modified Line F1b2, Special Education Pass-Through Funds, to extract from the new 

Fund 10, Special Education Pass-Through Fund, instead of the general fund. 

Line F3, Calculating the Reserves 

Lines F3b and F3c 

Modified the reserve calculation to add Line F3b, Special Education Pass-Though Funds, 

to Line F3c, Total Expenditures and Other Financing Uses, instead of subtracting it, if a 

“No” response is provided in Line F1a, “Do you choose to exclude from the reserve 

calculation the pass-through funds distributed to SELPA members?” 

Revised forms MYP/MYP due to the implementation of GASB 54: 

Section D, Fund Balance 

Replaced Section D3, Components of Ending Fund Balance with the following lines: 

Objects 9710-9719, Nonspendable 

Object 9740, Restricted (shaded for unrestricted worksheet) 

Object 9750, Stabilization Arrangements (shaded for restricted worksheet) 

Object 9760, Other Commitments (shaded for restricted worksheet) 

18

Object 9780, Assigned (shaded for restricted worksheet) 

Object 9789, Reserve for Economic Uncertainties (shaded for restricted worksheet) 

Object 9790, Unassigned/Unappropriated 

Section E, Available Reserves 

Replaced Section E1, General Fund with the following lines: 




Replaced Section E2, Special Reserve Fund – Noncapital Outlay (Fund 17) with the following 

lines: 




Form NCMOE—No Child Left Behind Maintenance of Effort 

Opened Form NCMOE to COEs. 

COE and District: Opened Form NCMOE to budget and interim reporting periods as an 

optional form. Form NCMOE will continue to be required for unaudited actuals reporting 

period. 

COE and District: Modified source of preloaded data for budget and unaudited actuals 

reporting periods to pull from CDE official maintenance of effort calculation rather than from 

prior year software. 

Forms RL/RLI—Revenue Limit Summary 

Updated revenue limit deficit factors and modified related TRCs accordingly. 

District Only: To account for the Base Revenue Limit Add-On pursuant to AB851 

(Chapter 374/2009), which combined Meals for Needy and Beginning Teacher Salary 

Incentive Funding, modified the following lines: 

Added additional Principal Apportionment data ID number 0719 to Base Revenue 

Limit Per ADA Line 3, All Other Adjustments. 

Shaded Revenue Limit Subject to Deficit Line 8, Meals for Needy Pupils. 

Shaded Revenue Limit Subject to Deficit Line 13, Beginning Teacher Salary Incentive 

Funding. 

Revised Criteria and Standards 

Forms 01CS/01CSI—Criteria and Standards Review—Budget and Interim 

Adjusted deficit spending and fund balance levels for counties and reserve levels for all 

LEAs based on prior year's revenue limit COLA. 

Fund Balance Criterion 7, County—Budget and Interims 

Section 7—Modified County Office’s Expenditures and Other Financing Uses Line to 

include Special Education Pass-Through Funds, if a “No” response is provided in Line 

7A1, “Do you choose to exclude pass-through funds distributed to SELPA members from 

the criteria calculations for fund balance and reserves?” 

19

Section 7A—Modified Line 2b, Special Education Pass-Through Funds to extract from the new Fund 10, 

Special Education Pass-Through Fund, instead of the County School Service Fund. 

Reserves Criterion 8, County—Budget and Interims 

Section 8—Modified County Office’s Expenditures and Other Financing Uses to include Special Education 

Pass-Through Funds, if a “No” response is provided in Line 7A1, “Do you choose to exclude pass-through 

funds distributed to SELPA members from the criteria calculations for fund balance and reserves?” 

Section 8B— Modified Line 3, Total Expenditures and Other Financing Uses, to include Line 2, Special 

Education Pass-Though, if a “No” response is provided in Line 7A1, “Do you choose to exclude passthrough 

funds distributed to SELPA members from the criteria calculations for fund balance and reserves?” 

Reserves Criterion 10, District—Budget and Interims 

Section 10A—Modified Line 2b, Special Education Pass-Through Funds to extract from the new Fund 10, 

Special Education Pass-Through Fund, instead of the general fund. 

Section 10B—Modified Line 3, Total Expenditures and Other Financing Uses, to 

include Line 2, Special Education Pass-Though, if a “No” response is provided in Line 

10A1, “Do you choose to exclude from the reserve calculation the pass-through funds 

distributed to SELPA members?” 

Supplemental Information S7, Unfunded Liabilities—Budget and Interims 

Section S7A, Postemployment Benefits Other Than Pensions 

Added message if a “Yes” response is provided in Line 1/1a, “Does your LEA provide 

postemployment benefits other than pensions (OPEB)?” but subsequent items are not 

completed. The user can still close the form and complete an official export without 

entering this data. 

Section S7B, Unfunded Liability for Self-Insurance Programs 

Added message if a “Yes” response is provided in Line 1/1a, “Does your LEA provide 

any self-insurance programs such as workers compensation, employee health and welfare, 

or property and liability?” but subsequent items are not completed. The user can still close 

the form and complete an official export without entering this data. 

Supplemental Information S8, Status of Labor Agreements—Budget and Interims 

Section S8A, Cost Analysis of Labor Agreement – Certificated 

Section S8B, Cost Analysis of Labor Agreement – Classified 

Section S8C, Cost Analysis of Labor Agreement – Management 

Added message if the number of FTEs for certificated, classified, and 

management/supervisor/confidential is not entered for all years. The user can still close 

the form and complete an official export without entering the FTEs. 

Revised forms 01CS/01CSI due to implementation of GASB 54: 

Reserves Criterion—County Budget and Interims 

Section 8A, Calculating the County Office’s Available Reserves from Juvenile Court/County 

Community Schools and Regional Occupational Centers/Programs 

Step 2 – Juvenile Court/County Community Schools 

Renamed Line b to “Reserve for Economic Contingencies per EC 42238.18” 

Step 3 – Regional Occupational Centers/Programs 

Renamed Line b to “General Reserve per EC 52321(b)” 

Unlocked the Budget column to allow key entry 

Reserves Criterion—Budget and Interims 

Section 10C for district and JPA, 8C for county, Calculating the Budgeted Reserve Amount 

Removed the following lines: 

20

General Fund - Designated for Economic Uncertainties 

Special Reserve Fund - Designated for Economic Uncertainties 

Added the following lines: 

General Fund – Stabilization Arrangements 

General Fund – Reserve for Economic Uncertainties 

Special Reserve Fund – Stabilization Arrangements 

Special Reserve Fund – Reserve for Economic Uncertainties 

Technical Review Checks—New 

CHK-RESOURCE-LOCALLY-DEFINED 

New import TRC 

Fatal for all periods and data types 

Applies to all LEAs 

Locally defined resource codes (resources 0001-0999, 5800-5999, 7701-7799, 7800- 

7999, 9000-9999; except resources 5810, 7710, 7810, 9010) must roll up to state-defined 

resource codes. 

SE-PASS-THRU-REVENUE 

New general ledger TRC 

Warning for all periods 

Applicable for budget and interim data only. Will be activated for actual data in the 

SACS2012 software. 


Transfers of special education pass-through revenues (resources 3300-3499 and 6500- 

6540) should be reported in Fund 10. 

Added the following general ledger TRCs for all reporting periods, for budget and interim data only. 

These checks are required due to the implementation of GASB 54 and will be activated for actual 

data in the SACS2012 software. 

EXCESS-ASSIGN-REU 

Fatal for Budget, Original Budget, and Projected Totals data 

Warning for Board Approved Operating Budget data 


Applies to all funds except funds 61-73 

Amounts reported in Other Assignments (Object 9780) and/or Reserve for Economic 

Uncertainties (REU) (Object 9789) should not create a negative 

unassigned/unappropriated amount (Object 9790) by fund and resource (for all funds 

except funds 61-73). 

UNASSIGNED-NEGATIVE 

Fatal for Budget, Original Budget, Board Approved Operating Budget, and Projected 

Totals data 


21

Unassigned balance (Object 9790) must be zero or negative by resource, in all funds 

except the general fund and funds 61-73 

Technical Review Checks— 

Revised 

BALANCE-FDxRS-AGENCY—Modified to also run for JPAs, due to Fund 95, Student Body 

Fund, opening to JPAs. 

Inactivated the following general ledger TRCs for budget data only. These checks will be deleted 

from the SACS2012 software, due to the implementation of GASB 54: 

EXCESS-DESIGNATIONSA 

EXCESS-DESIGNATIONSB 

CEFB-POSITIVE—Modified check to include objects 9796 and 9797, due to the implementation of 

GASB 54. 

JUV—Juvenile Court and County Community Schools Account 

Due to the implementation of GASB 54, inactivated the following JUV TRCs for actual data only. In 

the SACS2012 software, these checks will be reactivated for the unaudited actuals reporting period. 

JUV-CAP-OUTLAY 

JUV-END-BAL 

JUV-IMPORT 

JUV-A—Juvenile Court and County Community Schools Account 

For 2010-11 unaudited actuals reporting period only, renamed the following JUV TRCs to JUV-A to 

differentiate them from the revised 2011-12 budget and interim reporting periods JUV TRCs. These 

JUV-A- checks will be deleted from the SACS2012 software. Applicable for unaudited actual data 

only, counties only. 

JUV-A-CAP-OUTLAY 

JUV-A-END-BAL 

JUV-A-IMPORT 

NCMOE-ADA—Modified check to also run for COEs, due to Form NCMOE, No Child Left Behind 

Maintenance of Effort Calculation, opening to COEs. 

NCMOE-IMPORT—Modified check to also run for COEs, due to Form NCMOE, No Child Left 

Behind Maintenance of Effort Calculation, opening to COEs. 

RL-STATE-AID—COE only: Modified check severity from Warning to Fatal for all Budget and 

Unaudited Actuals reporting period data, and for Interim Original Budget and Projected Year Totals 

data. This check was temporarily modified in 2009-10 as a result of changes made to accommodate 

the reporting of one-time Revenue Limit Per-ADA Reductions on Form RL Line 30 by Basic Aid 

COEs. 

22

PROPOSED CHANGES TO INTERIM AND UNAUDITED 

ACTUALS COMPONENTS 

New Supplemental Form 

Form SIAI—Summary of Interfund Activities – Projected Year Totals 

Add new Form SIAI, equivalent to existing forms SIAA/SIAB, to interim reporting periods as an 

optional form. 

Revise Supplemental Forms 

Form CORR—Education of Adults in County Correctional Facilities 

Section III, Indirect Costs—Update the 2 nd prior year statewide average rate from 4.42% to 4.35%. 

Form GANN—Appropriations Limit Calculations 

Update inflation adjustments on Line D2. 

Forms PCR/PCRAF—Program Cost Report / Schedule of Allocation Factors 

Add Fund 09, Charter Schools Special Revenue Fund, and Fund 62, Charter Schools Enterprise Fund 

23

Planning for Year End Close 

Calendar - Prepare a list of key dates and activities for all of the various aspects of year 

end closing that are relevant to the district. These dates should include your districts deadline 

dates in addition to the various state and county requirements. Be sure to allow ample time to 

meet the deadlines published by Business Advisory Services, Information Technology, and 

District Financial Services. 

District Preparations – Establish closing dates for the various years end activities to 

ensure staff is aware and able to meet the required reporting deadlines 

Publish employee reimbursement claim deadlines 

Establish internal dates for receipt of accounts receivable notification from sites. 

Stop Purchasing – establish date to end P.O. requisitions allowing time for receipt of 

goods and booking of actual costs. 

Stop Internal Distribution Charges - establish date to end the requisition of supplies from 

the warehouse, central reproduction allowing time for existing requisitions to be filled and 

accounts charged. 

Review Batch Reports and Pending Items for Resolution 

Collect FTE, Square Footage, & Pupil Transportation Factors for PCR and TRAN 

Collect Debt Schedules for Principle and Interest Payments 

Collect Federal PERS wages for PERS Reduction Exclusion 

Collect Meals for Needy lunch counts for Revenue Limit Calculation 

Schedule physical inventory of any stores accounts. 

Release and Post Stores Inventory adjustments 

Reconcile Capital Outlay Expense with Capital Threshold Policies 

Reconcile cash accounts. 

Reconcile Accrual Classifications and complete journal entries. 

Review Account Checklists 

Review and Process Flexibility Transfers 

Review the daily hints 

Reports 

Accrual Report (FAR 311) - * All prior year Set-ups must be closed showing offsets to 

current year subsidiary ledgers. *FY 2009-10 Setups are extracted in 2010-11 fiscal year 

log-on 

Open Purchase Order Reports - * All entries must be closed to liabilities if goods and 

services are received or liquidated in current year and reestablished in the new year. 

Open Batch Report - * All batches should be processed or voided. 

GLD 410 Financial Report – review status of categorical grants and entitlement programs. 

GLD 115 Report – Review prior year accrual accounts to validate, payroll suspense accounts, and sales tax 

accounts ending balances are zero. 

24

The Accrual Listing 

The Accrual Listing is an accumulation of available information our office has gathered related to items that are accrued by 

districts at the close of books. Business Advisory Services gathers information from the Internal offices of the County 

Superintendent of Schools office, Risk Management, SELPA regional offices, San Bernardino County Treasurers’ office, 

as well as any amounts (that we are aware of) that are still due to or from any State or Federal agencies. 

A district specific Accrual listing is created that will aid the district in ensuring that they are aware of and have addressed 

any of these potential accruals known by the County Office. The listing gives a brief description and notes the applicable 

Fund, Resource and Object in which the accrual should be recorded. The amount of the accrual is listed and whether it 

should be recorded on the districts books as a receivable or payable. The status column of the report indicates whether the 

values are finalized and posted. These are noted as “A” or “Actual”. Those accruals that have been determined to be 

complete but are not yet posted are listed as “P” or “Pending”. Those accruals that are awaiting further information 

and are still subject to refinement are listed as “E” or “Estimates”. The accruals listed for the State and Federal 

Grants are based on apportionment award letters. The amounts are available but the actual accrual which the 

district should book is determined by the district’s grant expenditures. Deferred Revenue Grants do not record 

revenue not earned. The CAT schedule in the reporting software will help the district determine the appropriate 

amount to be accrued. 

Should there be a need to revise the listing as originally published, any revisions will be noted with an asterisk (*) next to 

the status letter to signify that the accrual indicated has been modified. Each revision shall be clearly identified by a 

revision date in the upper left hand corner of the report. A pound (#) mark is being used to identify those state deferrals 

which you may wish to confirm with your auditor. The State Deferrals are generally accrued. 

The State no longer allows the accrual of Deferred Maintenance State Match. The State Match is made in the subsequent 

budget year. The Criteria and Standards required as part of the Budget and Interim report processes now validate that the 

District Budget Amount matches the 100% State Match of the Budget year. So for those Districts still accruing the District 

Match in the actual year, it is recommended that they align the match amounts and no longer accrue Deferred Maintenance. 

See the Deferred Maintenance section of the Unaudited Actuals Workshop Materials. 

If there are questions as to how amounts were determined, the listing includes a department name and a contact person 

along with a phone number to assist in clarification of any of the items listed. Once the district has received the Accrual 

Listing, each item listed should be reviewed. In certain circumstances, an accrual may be identified of which the district 

was not aware. District staff should research and confirm that the accrual is indeed valid and take the steps to record it in 

the district records. If there is an amount reported with which the district disagrees, the district staff should contact the 

source of the accrual to resolve any discrepancies. 

Upon completion of the accruals, Business Advisory Services requests that any accruals not set up or recorded at different 

amounts than reported on the Accrual Listing be noted on a copy of the Accrual Listing. A brief explanation should be 

provided and submitted with the accrual packet. A column has been provided to write the reference number of the 

accounts receivable, payable, or journal that has been set up. We ask that you complete this reference column to denote 

the accrual reference set-up in the financial system. This will allow BAS staff to readily determine that each accrual has 

been addressed appropriately and quickly audit your reports. 

25

Accrual Procedures 

Revenues are recognized in the accounting period in which they are earned, become measurable and available. 

Expenses are to be recognized in the period in which they are incurred (goods are received or services are 

rendered). As a general rule, revenues and expenses known within 60 days of the close of the accounting period 

should be accrued. Procedure 510 of the California School Accounting Manual explains that CDE has defined 

available as collectible within one year. This has been done to achieve comparability of reporting among 

California LEAs and specifically addresses the reimbursement of grants and corrections to state aid 

apportionments. 

Detailed Accrual Reports are required for all funds of the District. 

Below is a recap of the documentation required and how it is generated. 

FAR 311 Payroll Liabilities Report 

July 1 & 9 Payrolls, July 15 Supplemental Payrolls, plus 

corresponding benefits for STRS (3100’s), PERS (3200’s),and Social 

Security/Medicare (3300’s) 

FAR 311 Accounts Receivable/Abatements 

27 

Automatically 

System-Generated 

Listing by Estimated Receivable Reference # in object classification order. District must INPUT 

each reference through 

Accounts Receivable Set- 

Up Program in FY1. 

District: Update Receivables 

Receivable number: 

Date: 

Reference: 

Description: 

Fu Rs Y Goal Func Obj Sch Mgmt Amount Object 

1. 01 0-0000-0000- -000- $ 9229 

General Ledger default 

object for set-up 

receivables is ONLY 9229. 

Therefore District must 

reclassify to appropriate 

component object.

Accrual Procedures 

FAR 311 Current Liabilities 

Listing by estimated Vendor payments in object classification order District must INPUT each 

reference through the 

Accounts Payable Current 

Liability Set-Up Program 

in FY1. 

District: Update Payables 

Payable number: 

Date: 

PO number: 

Desc: 

Board Desc: 

Vendor number: 

28 

Vendor Name/Address 

Fu Rs Y Goal Func Obj Sch Mgmt Amount Status 

1. 01 0-0000-0000- -000- $ 

General Ledger default 

object for set-up payables is 

ONLY 9529. 

Therefore District must 

reclassify to appropriate 

liability component object.

Accrual Corrections 

FAR 311 Corrections/Additions 

Beginning with the 2005-06 accruals a process was developed to allow corrections and additions to be 

made to the accrual set-ups once the accrual reports had been filed and reviewed. In the past only 

Journals have been accepted for these adjustments. A worksheet is now available to identify the reference 

number that needs to be corrected. Upon completing the worksheet for corrections, deletions, 

adjustments, and/or additions- it is submitted to BAS where it will be entered into the Set-ups screens. 

Only references with NO activity may be changed. 

Please complete all sections. Include the leading identification of ER (estimated receivable) or EP 

(estimated payable) to the reference number and provide a brief description that will be entered into the 

accrual reporting system. 

A job is launched by Information Technology nightly to post and additions/deletions/changes to the set-up 

programs. Districts will not see changes on the look-up screens until the following day. Only journals and 

cash journal vouchers are posted to the financial reporting systems immediately upon release into the 

financial system. 

29

Accural Corrections 

FCT-250 Journal Entry Report (FY1) 

JE Accruals or corrections made after the 

receivables/payables cutoff or adjustments 

needed after activity posted. These are 

established by journal entry, in 

the fiscal year being closed, FY1 

FCT-250 Reversing Journal Entry Report (FY2) 

JE Listing of line items that reverse the JE’s 

established in FY1 through the Journal 

Entry Program. 

Classification Entries 

31 

District must INPUT each line item through the 

Journal Program. 

District must INPUT each line item through the 

Journal Program in Fiscal Year 2. 

Each line on the Accrual reference can only tie to one accrual set-up and one offset object. State Financial 

Reports dictate that accruals must be classified as to the specific type of accrual, due from other funds, 

deferred revenue, etc. 

Accounts Receivable Current Liabilities 

System Entries: 

Accounts Receivable 

Reclassification Entries: 

Due from Grantor 

Governments 

Due from Other Funds 

Object 

FY1 

Set-Up 

9229 

Object 

FY2 

Offset 

9210 

System Entries: 

Current Liabilities 

Object 

FY1 

Set-Up 

Object 

FY2 

Offset 

9529 9510 

9299 9290 

Reclassification Entries: 

Due to Grantor Governments 9599 9590 

9319 9310 Due to Other Funds 9619 9610 

Due to Other Agencies 

Temporary Loans 


9629 9620 

9649 9640 

9659 9650 

A journal entry is made to reclassify from the system set-up account FY1 and a reversing journal for the 

offset in FY2.

Accrual Corrections 

The Journal entry form requires balanced debit and credit entries. 

 

District: 08 JOURNAL ENTRIES Fiscal Year: XX 

 

Option: (A)dd (C)hange (D)elete (L)Replicate (R)eport 

(T)ransmittal (E)xit 

 

Batch: 

 

 

Ref #: Desc: Ref Date: 

Prior Year Ref #: 

Line Fu Rs Y Goal Func Obj Sch Mgmt Debits Credits 

1. - - - - - 

2. - - - - - 

3. - - - - - 

4. - - - - - 

5. - - - - - 

6. - - - - - 

7. - - - - - 

8. - - - - - 

Page total: 

Journal total: 

 

Enter option & press 

Districts can begin entering accruals in the Financial System in FY1 on or before July 1 st using the “Set-Up” programs 

available for receivables and payables. Business Advisory Services will compile and distribute a listing of Estimated 

Accruals in late July. This list will include all district accruals known or estimated by our office as of that date. 

Accrual Recap Summary 

The Accrual Recap Summary is a tool that may be used when completing the final phases of the accrual 

process. The state requires that all accruals be recorded in their proper set-up objects that further 

delineate the type of accruals on the books. Examples of these types of accruals are Due To/From Other 

Funds, Deferred Revenue, and Due To/From Grantor Governments. The financial system currently does not 

allow for the selection of the proper set up object in the accrual set up program. This will require that journal 

entries be processed to reclassify the accruals from the default set-up object to the proper set-up object. The 

accruals may be identified in these categories within the FAR311 report by using the accruals type 

description in the beginning of the vendor name in the accrual set-up program. Information Technology has 

devised a method to quickly group the accruals by the proper set up objects that will facilitate the journal 

entries that will be required. Once the FAR311 is deemed complete, the summary can be filled in and the 

totals can be compared to those in the financial system to ensure they are in agreement. The summary may 

also be used for tracking changes to the accruals that occur after the accrual submission date and for insuring 

that reversing entries in the following year have been made. 

32

Accrual Submission 

If a District finds that a correction must be made to the FAR311 report that is not allowed by the accrual program after 

accruals are closed, the accrual that was established has incurred activity or the district can no longer submit an accrual 

correction form to Business Advisory, a journal entry can be created to make corrections. If accrual journal entries are 

created, the district must make the appropriate reversing journal entries in FY2 using the roll up accounts (i.e. 9210, 

9510, 9650, etc.). 

Submission of Accruals: 

Accrual Reports (FAR311) are no longer required to be submitted to Business Advisory Services. All final 

auditable FY1 Journals and Cash Journal Vouchers submitted to District Financial Services on or before the 

deadline established in the Budget and Year-End Closing Timeline (See Section One Page One) sent to 

districts in late May by District Financial Services. Intra-district journal entries may be posted by the districts 

until the June month-end closing date outlined by District Financial Services. Any journal entries or cash 

journal vouchers for FY1 processed after this date must be sent to District Financial Services for review and 

posting. Budget Transfers will continue to be sent to Business Advisory Services. 

Districts that are submitting journal entries are reminded that entries should not be co-mingled with other 

district activity. It is advisable to open “one” batch and then enter a separate reference number within that 

batch for each type of accrual i.e., current liabilities, due to other funds, deferred income, accounts receivable, 

and due from other funds. Completing the journal entries in account number sequence also helps with the 

review process. One batch should also be created for the FY1 reversing journal entries in FY2 

and labeled as “FY2 REVERSING ENTRIES”. No accrual journal entries will be accepted without 

corresponding reversals. Districts are reminded that an authorized agent must sign the FAR311 Accrual 

Certification, as well as submitted journal entries. Districts that operate Cafeteria AC accounts must enter FY1 

activity. This can be in detail or in summary form. 

Business Advisory Services will "lock" the system to journal entries, cash journal voucher entries, and accrual 

setup programs on the date outlined in the Budget and Year-End Closing Timeline. If any material corrections 

are required after that date, the district may submit an accrual addition/correction form signed by an authorized 

agent. BAS will enter the change to the accrual set-up programs. If the District needs to make journal activity 

corrections or make final Budget adjustments once the district is notified by BAS that all accruals have been 

audited call your designated Business Services Advisor beginning Monday, August 22nd. Your Advisor will 

reopen the system on an individual district basis while the entries are prepared. Original signed transmittals 

will be reviewed by your Advisor and posted by the next work day after receipt. The final close of books is 

4:00 p.m. on August 31st. 

The “Final-Final Financial Report” FCR 290 (including Accruals) will be provided to districts by Business 

Advisory Services along with the report of asset and liability roll, no sooner than October 1st. Districts that 

have closed their books prior to August 31st may initiate their Final-Final FCR 290 and SACS Reports after 

confirming that all batches of journal entries and budget transfers are posted and that no accrual adjustments 

have been requested by Business Advisory Services and the year end close report has been executed and 

posted. 

33

2010-11 

ACCRUAL SUBMISSION 


ON OR BEFORE AUGUST 15 TH THE DISTRICT MUST SUBMIT: 

NON-TREASURY DISTRICT "AC" ACCOUNTS ACCRUAL REPORTS: 

All financial detail must be entered in financial system in detail or in summary. 

ACCRUAL JOURNAL ENTRIES 

2009-10 SET-UP AND 2010-11 REVERSAL 

ACCRUAL LISTING 

Include accrual reference # for each entry 

Note: The FAR311 report and Certification Page are no longer required to be 

submitted to Business Advisory Services (BAS). BAS will extract the 

information needed to complete the accrual reviews from the financial system. 

34

FAR 311: Assets and Liabilities 

FAR311 SAN BERNARDINO COUNTY SCHOOLS COMPUTER CONSORTIUM #J1486 

RECEIVABLES/PAYABLES FINANCIAL ACTIVITY REPORT 

District FY2 PAGE 5 

Fund: 01 GENERAL FUND 

========================================================================================================= 

DATE REFERENCE DESCRIPTION WARRANT/ FY1 FY2 FY2 FY2 

NUMBER Fu Res Y Goal Func Obj Sch Mgmt AUDITOR *(UT) SETUP RECD/LIQ OFFSET CASH 

========================================================================================================= 

9290.00 ACCOUNTS RECEIVABLE 9299 9290-9319 CY ACCT 9110 

*** TOTAL 9000-9999 .00 .00 .00 .00 

*** TOTAL ACTIVITY 1,005,307.38 .00 .00 .00 

**** GRAND TOTAL 9200-9319 1,005,307.38 .00 .00 .00 

GLD115 SAN BERNARDINO COUNTY SCHOOLS COMPUTER CONSORTIUM #J1490 PAGE: 2 

GENERAL LEDGER SUMMARY REPORT 

FY2 FISCAL YR: 2 


================================================================================================================ 

DESCRIPTION BEG BALANCE DEBIT CREDIT BALANCE 

================================================================================================================ 

9210 ACCOUNTS RECEIVABLE 

RS-YR: 0000-0 NO REPORTING REQUIREMENTS 833,931.53 0.00 0.00 833,931.53 

RS-YR: 0355-0 VEA 1,264.03 0.00 0.00 1,264.03 

RS-YR: 0415-0 DONATIONS 500.00 0.00 0.00 500.00 

RS-YR: 1100-0 STATE LOTTERY REVENUE 24,710.00 0.00 0.00 24,710.00 

RS-YR: 1300-0 CLASS SIZE REDUCTION K-3 30,885.00 0.00 0.00 30,885.00 

RS-YR: 3310-0 SP ED-IDEA BAS GRNT ENTL 8,054.00 0.00 0.00 8,054.00 

RS-YR: 3340-0 SP ED-IDEA IN-SERVICE TRAINING 115.00 0.00 0.00 115.00 

RS-YR: 4135-0 IASA Title VI Class Size Reduc 14,548.00 0.00 0.00 14,548.00 

RS-YR: 5610-0 WORKFORCE INVESTMENT ACT 20,311.29 0.00 0.00 20,311.29 

RS-YR: 6300-0 LOTTERY:INSTRUCTIONAL MATL 5,923.01 0.00 0.00 5,923.01 

RS-YR: 6330-0 SCHOOL COMMUNITY PP 50.00 0.00 0.00 50.00 

RS-YR: 6350-0 ROC/P APPORTIONMENT 29,528.01 0.00 0.00 29,528.01 

RS-YR: 6500-0 SPECIAL EDUCATION 16,026.51 0.00 0.00 16,026.51 

RS-YR: 7271-0 CA PEER ASST & REVIEW PROG 2,760.00 0.00 0.00 2,760.00 

ENDING BALANCE 9210: 988,606.38 0.00 0.00 988,606.38 

9229 ACCOUNTS RECEIVABLE SET-UP 

ENDING BALANCE 9229: 0.00 0.00 0.00 0.00 

9290 DUE FROM OTHER GOVERNMENTS 

RS-YR: 6365-0 ROC/P EQUIPMENT 10,000.00 0.00 0.00 10,000.00 



9310 DUE FROM OTHER FUNDS 

RS-YR: 0000-0 NO REPORTING REQUIREMENTS 5,000.00 0.00 0.00 5,000.00 

ENDING BALANCE 9310: 5,000.00 0.00 0.00 5,000.00 FAR311 SAN 

BERNARDINO COUNTY SCHOOLS COMPUTER CONSORTIUM #J1486 08/11/2010 

35 

Totals the accruals set-up by the 

district for the prior fiscal year. 

988,606.38 

11,701.00 

5,000.00 

$1,005,307.38

WORKSHOP 7/1 FUND RECEIVABLES/PAYABLES FINANCIAL ACTIVITY REPORT 

FY1 PAGE 29 


================================================================================================================ 


NUMBER Fu Res Y Goal Func Obj Sch Mgmt AUDITOR *(UT) SETUP EXPD/LIQ OFFSET CASH 

================================================================================================================ 

9510.00 CURRENT-LIABILITIES 9529 9510-9519 CY ACCT 9110 

**** GRAND TOTAL 9510-9659 PAYABLES 344,900.77 .00 .00 .00 

**** GRAND TOTAL 9510-9659 PAYROLL 276,339.88 276,339.88 .00 276,339.88 

***** GRAND TOTAL 9510-9659 PAYABLES & PAYROLL 621,240.65 276,339.88 .00 276,339.88 


GENERAL LEDGER SUMMARY REPORT 

FY2 FISCAL YR: 11 


================================================================================================================ 


================================================================================================================ 

9510 CURRENT LIABILITIES 

RS-YR: 3010-0 IASA - TTL I BAS GRNTS LOW INC 8,182.98- 8,182.98 0.00 0.00 

RS-YR: 3310-0 SP ED-IDEA BAS GRNT ENTL 8,054.00- 0.00 0.00 8,054.00- 

RS-YR: 3340-0 SP ED-IDEA IN-SERVICE TRAINING 24.00- 0.00 0.00 24.00- 

RS-YR: 3710-0 IASA-DRUG FREE SCH-ENTITLEMENT 1,398.40- 0.00 0.00 1,398.40- 

RS-YR: 5610-0 WORKFORCE INVESTMENT ACT 19,564.75- 762.62 0.00 18,802.13- 

RS-YR: 6296-0 PUBLIC SCHOOL LIBRARY ACT 11.40- 0.00 0.00 11.40- 

RS-YR: 6350-0 ROC/P APPORTIONMENT 6,417.11- 4,031.30 0.00 2,385.81- 

RS-YR: 6365-0 ROC/P EQUIPMENT 9,988.14- 0.00 0.00 9,988.14- 

RS-YR: 6500-0 SPECIAL EDUCATION 17,056.79- 16,867.79 0.00 189.00- 

RS-YR: 6660-0 CIG/TBCO PDTS SRTX FND-ENTL 209.12- 0.00 0.00 209.12- 

RS-YR: 7155-0 INSTR MATERIAL-DIR ORDER K-8 456.09- 0.00 0.00 456.09- 

RS-YR: 7185-0 SCIENCE LAB MATERIAL FUNDS 0.39- 0.00 0.00 0.39- 

RS-YR: 7230-0 TRANSPORTATION-HOME TO SCH 11,329.43- 0.00 0.00 11,329.43- 

ENDING BALANCE 9510: 483,725.70- 237,015.16 0.00 246,710.54- 

9610 DUE TO OTHER FUNDS 

RS-YR: 0000-0 NO REPORTING REQUIREMENTS 16,356.00- 0.00 0.00 16,356.00- 

ENDING BALANCE 9610: 16,356.00- 0.00 0.00 16,356.00- 

9650 DEFERRED REVENUE 


RS-YR: 4010-0 IASA-TITLE II EISENHOWER ENTL 7,778.05- 0.00 0.00 7,778.05- 

RS-YR: 4110-0 IASA-TITLE VI-FORMULA ENTITLE 3,181.57- 0.00 0.00 3,181.57- 

RS-YR: 5380-0 CHLD NUTR-SCH BREAKFAST START 221.55- 0.00 0.00 221.55- 

RS-YR: 6330-0 SCHOOL COMMUNITY PP 11,297.40- 0.00 0.00 11,297.40- 

RS-YR: 6660-0 CIG/TBCO PDTS SRTX FND-ENTL GR 833.88- 0.00 0.00 833.88- 

RS-YR: 7100-0 DIGITAL H.S. APPLICATION 13,450.30- 0.00 0.00 13,450.30- 

RS-YR: 7110-0 EDUCATION TECHNOLOGY 71,613.14- 0.00 0.00 71,613.14- 

RS-YR: 7127-0 EDUC. TECH: ON-LINE ADVANCE PL 2,015.10- 0.00 0.00 2,015.10- 

RS-YR: 7265-0 SCHOOL IMPRV PRG-GRADES 7-12 5,641.00- 0.00 0.00 5,641.00- 

RS-YR: 7282-0 STAFF DEVP HIGH SCH COACHING 570.00- 0.00 0.00 570.00- 

ENDING BALANCE 9650: 121,158.95 

36 



483,725.70 

16,356.00 

121,158.95 

$621,240.65

Revenue Limit 

The Revenue Limit is the major source of revenue for School Districts. It comprises over 70% of fund 

received. Most of the revenue is generated from P-2 Attendance records submitted in May. However there 

are a few elements that are funded based on Annual values. 

K-12 REVENUE LIMIT: OBJECT 8011 

The revenue limit must be recalculated at year-end and an adjustment must be made for the difference 

between second period and major annual components of the revenue limit. 

Complete new revenue limit worksheet based on P-2 ADA and applicable annual add-ons and deducts 

and compare to actual amount received and book the difference. 

Annual Revenue Limit Total Deficited State Aid $ 

Amount Received as of June 30 - 

Total Accrual X. = 

Amount Received P-2 Certified July 2 A. - 

Amount to be Reconciled at Annual (X-A) B. = 

District Adjustments for PERS Reduction, UI, and Meals C. + 

Revised Annual Accrual (+C) D. = 

The annual elements that affect the State Aid Calculation are: 

Annual Property Tax Receipts (Included w/BAS) 

Annual PERS Reduction Gross (Included w/BAS) 

Annual Charter School In Lieu Property Tax (Included w/BAS) 

Annual ADA for Community Day and Non-Public Schools (Included w/BAS) 

Annual UI payments for quarterly contributions and experience charges 

Annual Meals for Needy 

NOTE: Accruals to be setup are the amounts received in July for P-2 (Line A) plus the annual 

adjustment (Line D). 

REVENUE LIMIT ACCRUALS - GENERAL FUND 

Receivable: Liability: 

Debit Debit 

01-0000-0- …. 9229 …. 01-0000-0- …. 8011 …. 

Credit Credit 

01-0000-0- …. 8011 …. 01-0000-0- …. 9529 …. 

37

Revenue Limit Adjustments 

The Accounts Receivable (AR) and Current Liability (CL) program make the appropriate 9XXX entries in the 

general ledger. 

In the following (receiving) fiscal year, the funds are deposited in the specific prior year state aid account 

(8019). The current status of the reversing programs (Z’s) will relieve the accrual in the 8011 original set-up 

object. A Journal must be made to move this prior year offset to the prior year state aid account 8019. 

Note: Accrual List will provide you with the detail accrual for: 

P-2 Amount - actual amounts received July 

Annual Amount - revised computation for Annual ADA, Property Tax, 

and Gross PERS Wages 

District may adjust Annual Estimate provided for the effects of the PERS excludable wages, 

unemployment insurance actual costs, and subsequent ADA changes. 

The following page is the new BAS revenue limit calculation worksheet that will be provided with the accrual 

listing provided by Business Advisory Services shows the accounting treatment for the various components of 

the principal apportionment. 

38

ED CODE 

SECTION 

State Aid Apportionment 

Monthly Payment Schedule 

14041(2-6) 

44 

14041 (7)* 

14041 (8)** 

ADVANCE APPORTIONMENT 

BASED ON PRIOR YEAR SECOND PRINCIPAL APPORTIONMENT 

JULY 0% 0% 0% 

AUGUST 5% 15% 30% 

SEPTEMBER 14% 30% 45% 

OCTOBER 0% 0% 0% 

NOVEMBER 9% 0% 0% 

DECEMBER 9% 0% 0% 

JANUARY 18% 21% 21% 

FIRST PRINCIPAL APPORTIONMENT 

AMOUNT MINUS ADVANCE APPORTIONMENT 

PLUS ANY PRIOR YEAR ADJUSTMENTS 

JULY THROUGH JANUARY 

FEBRUARY .4% of 1/5 .4% of 1/5 0% 

MARCH 0% of 1/5 0% of 1/5 0% 

APRIL 6.12% of 1/5 plus 

1/5 deferral from 

March 

6.12% of 1/5 plus 

1/5 deferral from 

March 

0% 

MAY 4.68% of 1/5 4.68% of 1/5 0% 

SECOND PRINCIPAL APPORTIONMENT 

CERTIFICATION AMOUNT MINUS APPORTIONMENT PAYMENTS JULY 

THROUGH MAY 

JULY BALANCE BALANCE BALANCE 

* EC 14041(7) Cucamonga, Etiwanda, Helendale, Oro Grande and Silver Valley Unified 

**EC 14041(8) Trona Joint Unified 

NOTE: This schedule provides the state aid apportionment schedule prior to applying Inter 

and Intra-Year deferrals from the state. Please review the BASICS on the BAS website for a 

current schedule.

Prior Year State Adjustments and Amendments 

REVENUE LIMIT ACCRUALS - GENERAL FUND PRIOR YEAR ANNUAL OFFSET 

The Accounts Receivable (AR) and Current Liability (CL) program posts the appropriate 9XXX entries in the 

general ledger to relieve the set-up balances. In the subsequent (receiving) fiscal year, the funds are deposited in 

the specific prior year state aid account (8019). The current status of the reversing programs (Z’s) will relieve 

the accrual in the 8011 original set-up object. A Journal must be made to move this prior year offset to the prior 

year state aid account 8019. 


Debit Debit 

01-0000-0- …. 8011 …. 01-0000-0- …. 8019 …. 

Credit Credit 

01-0000-0- …. 8019 …. 01-0000-0- …. 8011 …. 

Offsets from Prior Year 


Apportionment State Aid FINANCIAL ACTIVITY REPORT BY DATE 

FY1 PAGE 1 

Fund: 01 GENERAL FUND Resource: 0000 

========================================================================================================================== 

ACCOUNT CLASSIFICATION REFERENCE VENDOR REVISED RECEIVED/ 

Accruals from 

Res Y Goal Func Sch Mgmt NUMBER DATE NUMBER DESCRIPTION BUDGET EXPENDED ENCUMBERED BALANCE 

Prior Year must 

========================================================================================================================== 

8011 REVENUE LIMIT ST AID-CURR YEAR 

be Journaled to 

BALANCE FORWARD 07/01/2XXX 0.00 0.00 0.00 0.00 object 8019 

0000-0-0000-0000-000-0000 RB-070106 07/01/2009 REVISED BUDGET 158,415,207.00 158,415,207.00 since technical 

0000-0-0000-0000-000-0000 TF-070113 07/29/2009 7/2009 K-12 STA 8,699,397.00 149,715,810.00 R/Lmt check 

0000-0-0000-0000-000-0000 TF-070380 08/28/2009 8/2009 K-12 STA 17,398,795.00 132,317,015.00 

0000-0-0000-0000-000-0000 TF-070780 09/26/2009 9/2009 K-12 STA 11,599,197.00 120,717,818.00 

0000-0-0000-0000-000-0000 TF-071108 10/29/2009 10/2009 K-12 ST 11,599,197.00 109,118,621.00 

0000-0-0000-0000-000-0000 TF-071368 11/25/2009 11/2009 K-12 ST 11,599,197.00 97,519,424.00 

0000-0-0000-0000-000-0000 BT-071951 12/12/2009 1ST INTERIM ADJ 3,337,109.00- 94,182,315.00 

0000-0-0000-0000-000-0000 TF-071564 12/27/2009 12/2009 K-12 ST 11,599,197.00 82,583,118.00 

0000-0-0000-0000-000-0000 TF-071932 01/29/2010 01/2010 K-12 ST 11,599,197.00 70,983,921.00 

0000-0-0000-0000-000-0000 TF-072267 02/28/2010 02/2010 K-12 ST 23,868,754.00 47,115,167.00 

0000-0-0000-0000-000-0000 AR-025590 02/28/2010 State of Calif -119,269.00 47,234,436.00 

0000-0-0000-0000-000-0000 TF-072577 03/27/2010 03/2010 K-12 ST 11,934,377.00 35,300059.00 

0000-0-0000-0000-000-0000 TF-072847 04/28/2010 04/2010 K-12 ST 11,934,377.00 23,365682.00 

0000-0-0000-0000-000-0000 JE-071115 04/28/2010 Prior Year to 8019 119,269.00 23,246413.00 

validates that 

8011 must 

equal current 

year R/Lmt 

Amt. 

TOTAL ACTIVITY 156,299,828.00 131,831,685.00 0.00 

ENDING BALANCE 05/15/2XXX 156,299,828.00 131,831,685.00 0.00 24,468,143.00 

8019 REVENUE LIMIT ST AID-PRIOR YRS 

BALANCE FORWARD 07/01/2009 0.00 0.00 0.00 0.00 

0000-0-0000-0000-000-0000 TF-072267 02/28/2010 02/2010 K-12 ST 39,754.00 39,754.00- 



0000-0-0000-0000-000-0000 JE-071115 04/28/2010 Prior Year to 8019 - 119,269.00 39,761.00 

TOTAL ACTIVITY 0.00 -39,941.00 0.00 

ENDING BALANCE 05/15/2XXX 0.00 -39,941.00 0.00 39,761.00 

This will apply to any prior year amounts in object 8311 also. 

45

Prior Year State Adjustments and Amendments 

PRIOR YEAR AMENDMENTS TO STATE APPORTIONMENTS 

Amounts for amendment to prior-year state reports should be accrued only if the amendment was filed and 

the actual cash adjustment is expected to be made no later than June 30th. All Prior Year amendments 

require a letter from the District Auditor noting the change. 

PRIOR YEAR- REVENUE LIMIT STATE AID ACCRUALS 


Debit Debit 

01-0000-0- …. 9229 …. 01-0000-0- …. 8019 …. 

Credit Credit 

01-0000-0- …. 8019 …. 01-0000-0- …. 9529 …. 

The specific objects and resources should be use for the other categorical components if amended. 

NOTE! The Adult Program is accounted for in object 8590 with an unrestricted resource in the General 

Fund 01 beginning in 2009-10 as part of the flexibility regulations. 

46

Meals for Needy 

MEALS FOR NEEDY PUPILS (OPTIONAL) TREATMENT: ACCOUNT 8091 

OR 

Meals for Needy funding is now provided as a Revenue Limit add-on combined with the Beginning 

Teacher’s Salaries funding. Districts receiving funds as a Revenue Limit add-on for Meals for Needy 

Pupils may transfer those funds from the General Fund to the Cafeteria Account. District’s may contact 

our office for their current rate and multiply it by the current year ADA to determine the amount of funding 

that should be transferred. For Fund 93 "AC" Accruals transfer of these funds may be processed by 

requesting a commercial warrant from the General Fund, Account 8091, and depositing it into the Cafeteria 

Account under Object 8091. For those operating a Fund 13, an inter-fund cash transfer may be used. 

Districts should establish an accrual for any portion not processed prior to June 30. 

TWO ENTRIES REQUIRED: DUE TO/FROM OTHER FUNDS ACCRUAL ENTRIES 

Receivable -- Cafeteria AND Liability -- the General Fund: 

FUND 13(93): FUND 01: 

Debit Debit 

13(93)-5310-0- …. 9229 …. 01-0000-0- …. 8091 …. 

Credit Credit 

13(93)-5310-0- …. 8091 …. 01-0000-0- …. 9529 …. 

Liability -- Cafeteria AND Receivable -- General Fund: 

FUND 13(93): FUND 01: 

Debit Debit 

13(93)-5310-0- …. 8091 …. 01-0000-0- …. 9229 …. 

Credit Credit 

13(93)-5310-0- …. 9529 …. 01-5310-0 …. 8091 …. 

Note: If in the subsequent fiscal year, the Meals for Needy account are revised and funds are received. CDE has 

established an object to separate the transfer of these revised amounts from the current year apportionment. Use 

object code 8099 as prior year transfers (rather than object 8091). 

47

Supplemental Hourly programs 

Hourly programs are treated separately from State Aid and the Revenue Limit. The programs will be 

accounted for in object 8590 due to flexibility regulations currently in place. 

Hourly Apportionment P-2 State Aid Total Resource 0000-Object 8590 

Annual P-2 Difference 

Core Academic 9001 - - = 

High School Exam 9002 - - = 

Pupil Promotion/Retention/Star 9003 - - = 

Total Annual Adjustments to be Accrued 

Account Reconciliation 

Amount Received as of June 30 A. 

Amount Received as of P-2 July B. 

Amount Accrued for Annual C. 

Total Hourly 2XXX-XX Revenue E. 

Amt Booked as Receivable or (Current Liability) Sum of B + C D. 

REVENUE LIMIT ACCRUALS - GENERAL FUND 


Debit Debit 

01-0000-0- …. 9229 …. 01-0000-0- …. 8590 …. 

Credit Credit 

01-0000-0- …. 8590 …. 01-0000-0- …. 9529 …. 

48

RDA – AB1290 Community Redevelopment 

AB 1290 Redevelopment: Community Redevelopment Law Reform Act of 1993. 

CHAPTER 942 10/08/93 

The Community Redevelopment Law Reform Act of 1993 required Districts receiving revenue from 

redevelopment agreements forged after the January 1, 1994 to classify and report funds received based on 

specific percentages. The ACT added Section 33607.5 of the Health and Safety Code that require 43.3 

percent of funds received be classified in object code 8047 Community Redevelopment Funds subject 

to revenue limit deduction. These funds are treated as property taxes for the purpose of the revenue limit 

calculation. The District must declare these receipts on the principal apportionment data collection. 

Health and Safety Cpde Section 33607.5 reading as of 5/31/2007 

(3) If an agency reduces its payment to a school district, community college district, or county office of education, or for 

special education, the agency shall do all of the following: 

(A) Determine the amount of the total payment that would have been made without the reduction. 

(B) Determine the amount of the total payment without the reduction which: (i) would have been considered property 

taxes; and 

(ii) would have been available to be used for educational facilities pursuant to paragraph (4). 

(C) Reduce the amount available to be used for educational facilities. 

(D) Send the payment to the school district, community college district, or county office of education, or for special 

education, with a statement that the payment is being reduced and including the calculation required by this subdivision 

showing the amount to be considered property taxes and the amount, if any, available for educational facilities. 

(4) (A) Except as specified in subparagraph (E), of the total amount paid each year pursuant to this section to school 

districts, 43.3 percent shall be considered to be property taxes for the purposes of paragraph (1) of subdivision (h) of 

Section 42238 of the Education Code, and 56.7 percent shall not be considered to be property taxes for the purposes of that 

section and shall be available to be used for educational facilities. 

(B) Except as specified in subparagraph (E), of the total amount paid each year pursuant to this section to community 

college districts, 47.5 percent shall be considered to be property taxes for the purposes of Section 84751 of the Education 

Code, and 52.5 percent shall not be considered to be property taxes for the purposes of that section and shall be available 

to be used for educational facilities. 

(C) Except as specified in subparagraph (E), of the total amount paid each year pursuant to this section to county offices 

of education, 19 percent shall be considered to be property taxes for the purposes of Section 2558 of the Education Code, 

and 81 percent shall not be considered to be property taxes for the purposes of that section and shall be available to be used 

for educational facilities. 

(D) Except as specified in subparagraph (E), of the total amount paid each year pursuant to this section for special 

education, 19 percent shall be considered to be property taxes for the purposes of Section 56712 of the Education Code, 

and 81 percent shall not be considered to be property taxes for the purposes of that section and shall be available to be used 

for education facilities. 

(E) If, pursuant to paragraphs (2) and (3), an agency reduces its payments to an educational entity, the calculation made 

by the agency pursuant to paragraph (3) shall determine the amount considered to be property taxes and the amount 

available to be used for educational facilities in the year the reduction was made. 

(5) Local education agencies that use funds received pursuant to this section for school facilities shall spend these funds 

at schools that are: (A) within the project area, (B) attended by students from the project area, (C) attended by students 

generated by projects that are assisted directly by the redevelopment agency, or (D) determined by the governing board of 

a local education agency to be of benefit to the project area. 

49

RDA – AB1290 Community Redevelopment 

AB 1290 Redevelopment: Community Redevelopment Law Reform Act of 1993. 

As funds are received from the RDA, the district should calculate the appropriate share of funds to be 

deposited as object code 8047 subject to revenue limit reduction and object 8625 RDA funds not subject to 

revenue limit reduction. Funds deposited in object code 8625 should be accounted for in a restricted resource 

or capital project fund.. These funds are required to be expended for educational facilities: land acquisition, 

facility construction, reconstruction, remodeling, or deferred maintenance. 

Calculation of AB 1290 Allocation 

Date RDA Check # Total 8047 

X 43.3% 

General Ledger 

June 30 

Grand Total $ A $ $ 

Total Record Receipts $ B $ $ 

Initial Deposit ( as funds are received) 

Entry 01 0000 0 0000 0000 8047 000 0000 $ Credit 

01 9010 0 0000 0000 8625 000 0000 $ Credit 

01 0000 0 0000 0000 9110 000 0000 $ Debit 

50 

8625 

X 56.7% 

Difference (A-B) $ $ 

Amount to be transferred 

Corrective Journal Voucher if funds have bee deposited incorrectly 

Entry 01 0000 0 0000 0000 8047 000 0000 

01 9010 0 0000 0000 8625 000 0000 

Decrease Increase 

District must report estimated RDA funds subject to Revenue Limit Reduction at P-1 and P-2. 

Actual receipts received must be completed on the Annual Revenue limit data collection.

Revenue Limit Transfers 


Certain items on the K-12 revenue limit provide state aid to restricted programs based on ADA generated. 

Special Education, Non-Public School, Continuation, and Community Day School are some of the programs 

that require a transfer from unrestricted revenue limit sources (8091) to the restricted resource of the 

program. The amount to be transferred should be calculated and a cash journal voucher process for the 

required transfer. If this is a subsequent fiscal year, and the prior year ADA for one of these restricted 

programs is revised and funds are received. CDE has established a new object to separate the transfer of these 

revised amounts from the current year apportionment. Use object code 8099 as prior year transfers (rather than 

object 8091). 

Special Education – Separate Class Revenue 

Report of Attendance Second 

Principal (P-2) 

52 

Elementary High School Total 

Line A.9. Special Day 

Class 

Line A.13. Sp Ed. 

Extended Yr. 

Total A. 

K-12 Revenue Limit Form A-1 Revenue Limit EDP 0024 Rate B. $ 

(A * B) C. $ 

Deficit D. 1.00 

Amount to be transferred (C * D) E. $ 

Entry 01 0000 0 0000 0000 8091 000 0000 $ debit 

01 6500 0 5001 1110 8091 000 0000 $ credit 

Special Education – Non- Public School 

Report of Attendance Annual 

Principal (ANN) 

Line A - 10 Sp Ed NPS 

Line A - 11 Sp Ed NPS - LCI 

Line A - 14 NPS Extended Yr. 

Line A - 15 NPS Ext.Yr. - LCI 

K-12 Revenue Limit Form 

Line A - 1 

Entry 01 0000 0 0000 0000 8091 000 0000 $ debit 

01 6500 0 5750 1180 8091 000 0000 $ credit 


Total A. 

Revenue Limit EDP 

0024 

Rate B. $ 

(A * B) C. $ 


Amount to be transferred (C * D) E. $


Continuation Education 

Report of Attendance 

Second Principal 


Line A - 6 Continuation Educ. XXXXXXXXX 


Line A - 1 

Total ADA A. 

Revenue Limit EDP 024 B. $ 

Entry 01 0000 0 0000 0000 8091 000 0000 $ debit 

01 2200 0 3300 0000 8091 000 0000 $ credit 

Community Day School 


Annual (ANN) 

Line A - 12 Community Day 


Line A - 1 

53 

(A * B) C. $ 


(C * D) E. $ 


Total A. 

Revenue Limit EDP 024 RATE B. 

Entry 

01 0000 0 0000 0000 8091 000 0000 $ debit 

01 2430 0 3550 0000 8091 000 0000 $ credit 

A. times B C. 

State Aid Deficit Factor D. 1.00 

Amount to be transferred C. times D W. $ 

Community Day School Programs provide educational services to expelled, probation-referred and 

SARB-referred pupils. Revenue limit funding is recorded as a transfer from Resource 0000 to Resource 

2430 using Object 8091. Mandatory expelled and the portion of the waiver funded through the revenue 

limit are recorded to Resource 2430 Object 8311. Other additional funding is funded through the 

annual budget act and is included in categorical flexibility.


Additional Funding 


Annual (ANN) 


MANDATORY CDS C-6 plus C-7 

OTHER CDS C-8 plus C-9 NO LONGER RESTRICTED 


Schedule DAY 


Annual (ANN) 


Schedule Day 

Total Watch Cap A. 

Revenue Limit Rate B. 

2,742.75 


A. times B. 

ADA X Rate 

X $ 


CDS C-10 plus C- 

11 

NO LONGER RESTRICTED 

Revenue Limit Rate B. $ 

5.25 

A. times C. 

Hours X Rate 

Y $ N/A 

Supplemental CDS Funding 

Mandated Hours Only 

X 

Supplemental CDS Funding 

Deficit 

Watch P-2 for any deficit rate 

change 


These amounts are now deposited directly into the account 

01 2430 0 3550 0000 8311 000 0000. 

54 

.8308870500 

Sum Total 

X Y Plus Z 

Z $ 

$

Guidelines - Routine Restricted Maintenance Account 

State law requires that districts establish an RRMA if they are participating in state capital facilities programs. 

The table below shows the various highlights of restricted account obligations for the two capital facility 

programs. 

There have been some changes to this program as a result of flexibility through 2014-15. We have 

highlighted the current regulations in blue. 

Type of Funding Received from the State 

State School Building 

Lease Purchase Program 

55 

School Facility Grant 

Program 

What Education Code Section requires the 

account? 17014(b)(1) 17070.75(b)(1) 

Minimum annual transfer per the Education 

Code 2% 1% 3% 

How long do you have to do the transfer? 40 years after receipt of state 

funds 

20 years after receipt of state 

funds 

Does deferred maintenance transfer count 

toward restricted accounts? No Yes 

What is the calculation based on? 

2% of the General Fund Adopted 

Budget (see 

E.C. Section 17014(b)(2)) 

3% of the total General Fund 

Expenditures & other financing 

uses 

(see E.C. 

Section 17070.75(b)(2)) 

SACS Resource Code 8100 8150 

Form to certify establishment and 

maintenance of restricted account 

What is my RRMA Calculated On? 

SAB 40-21 Certification of 

Deposits 

SAB 40-21 Certification of 

Deposits 

One of the biggest challenges for maintenance departments and budget developers is to try to determine what the 

latest interpretation of the RRMA calculation is. For example, in the 2003-04 fiscal year only, Section 17070.76 

was added to the Education Code, which allowed school agencies to deposit a minimum of 2% of the General 

Fund expenditures. This was a one-time allowance only. Also during the 2003-04 fiscal year, school agencies 

received some confusing directives about the base amount that should be used in calculating the minimum 

amount that must be transferred to the RRMA. 

The Office of Public School Construction (OPSC) had notified the field that the percentage should be calculated 

on the total unrestricted general fund expenditures. Soon after this notification was distributed, Education Code 

Section 17070.75 was reviewed by the Legislative Counsel’s office, which opined that the OPSC letter was 

incorrect and that the percentage should have been calculated on the total general fund expenditures. At the 

March 24, 2004 SAB meeting, it was determined that the minimum contribution must be calculated on the total 

general fund expenditures for the 2004-05 fiscal year.

Routine Repair Maintenance Account 

SB 409 Hollingsworth (R-Murietta), as amended March 23, 2004, would amend Education Code Section 

17070.75 so that the calculation would be based on the “district’s total general fund less any restricted accounts 

for that fiscal year.” Hopefully amendments will be made during the legislative process to clarify the term 

“general fund.” Remember the confusion when the RRMA was created and it was based on the general fund 

budget! 

Of Course There Are Exceptions! 

Both of the restricted maintenance programs have exceptions to the rules. First is the exemption of small school 

districts from meeting the minimum requirement. Elementary school districts under 901 ADA, high school 

districts under 301 ADA, and unified school districts under 1,201 ADA do not need to meet the minimum 

funding requirement. They still need to establish the account, but the dollar amount to be transferred into the 

account is based on the need of the district and not the percentage established in the Education Code. This one 

exemption excludes nearly 300 school districts from having to meet the 1% 3% minimum requirement. 

The second adjustment is for county offices of education. Since many of the county offices have very few 

county-owned facilities, Education Code Section 17075.75(d) allows county offices to calculate the 1% 3% 

based solely on the unrestricted expenditures. All restricted funds are excluded from the calculation. This 

exception only applies to the 1% 3% calculation. The same wording was not included in the Lease Purchase 2% 

calculation. 

The final adjustment is for school districts that are the administrative unit for a special education local plan area 

(SELPA). The district is allowed to exclude the pass-through funds from the expenditures when calculating the 

RRMA amount. 

What Revenues Can Pay for the Restricted Maintenance Account? 

While the Education Code is very specific on how the percentage is calculated, there is flexibility regarding 

restricted maintenance account funding. If a school agency has passed a local General Obligation Bond that 

specifically identifies facility maintenance as an acceptable use of the bond proceeds, the OPSC has stated that 

the bond proceeds can be used to pay for the school agency’s restricted maintenance requirement. If you have 

any doubt as to whether or not your agency’s bond qualifies, we strongly encourage you to request a written 

opinion from your bond counsel. 

What If We Have Both Sources of Funding? 

Many school districts received funding from both the Leroy Greene Lease-Purchase Program and the School 

Facilities Program (SFP), but this does not mean that you have to set aside a minimum of 2% in the 8100 

resource code and a minimum of 1% 3% in the 8150 resource code. When a school agency receives the 

construction funding under the SFP, the requirement to set aside the 2% is ended. 

If your agency has a fund balance remaining in the 8100 resource code at year end, you have the option of either 

keeping it in the 8100 resource code and spending it down in that account or transferring it into the 8150 

resource code to simplify tracking of the funds. We do not have a recommendation on which of these two 

options is better. Do what is easiest for your agency. 

56


What Expenditures Count? 

State School Building Lease Purchase Program 

Education Code Section 17014(c) states: 

For purposes of this subdivision, the term “major maintenance, repair and replacement” means roofing, 

siding, painting, floor and window coverings, fixtures, cabinets, heating and cooling systems, 

landscaping, fences, and other items designated by the governing board of the school district. 

This definition allows the school district to basically use the same criteria as projects included on the five-year 

deferred maintenance plan. If there is a type of maintenance project not included on the list from the Education 

Code, the district is allowed to request the governing board to take action to make a project a maintenance 

project. For example, paving is a maintenance project on the five-year deferred maintenance plan. However, it is 

missing from the Education Code definition. If the district wants to count the cost of paving in the restricted 

maintenance account, the governing board would have to take action to add paving to the list. 

School Facility Program 

Education Code Section 17070.77(b) states: 

For purposes of this chapter, the term “major maintenance” means all actions necessary to keep roofing, 

siding, painting, floor and window coverings, fixtures, cabinets, heating and cooling systems, 

landscaping, fences, and other items designated by the governing board of the school district in good 

repair. 

As mentioned under the Lease Purchase program above, the definition allows the school district to basically use 

the same criteria as projects included on the five-year deferred maintenance plan. If there is a type of 

maintenance project not included on the list from the Education Code, the district is allowed to request the 

governing board to take action to make a project a maintenance project. 

The best definition of what is considered maintenance is from the California Department of Education’s 

California School Accounting Manual (CSAM) as updated for December 2002. Procedure 701-16, states in part: 

Plant maintenance includes those activities that are required to repair, restore, or renovate school 

property, including grounds, buildings, site improvements, building fixtures, and service systems. Direct 

charges to the plant maintenance program include salaries of directors and supervisors of maintenance, 

carpenters, painters, electricians, plumbers, maintenance clerks, and similar employees; employee 

benefits for all employees in this program; necessary materials and supplies; rental and replacement of 

plant maintenance equipment; contracts for repairing, restoring, or renovating the grounds, buildings, or 

equipment, including re-grading sites and repairing retaining walls, walks, driveways, sprinkler systems, 

and playground apparatus or equipment; reseeding of lawns; repainting; repairs to or replacement of 

roofs, walls, heating and air-conditioning units, and electrical and plumbing installations; repairs to 

building fixtures; resurfacing and refinishing of floors; movement of movable walls or partitions; and 

acquisition and replacement of related equipment. 

57


In the Function chapter in Part II of the CSAM, the definition of maintenance is further simplified by stating: 

Activities involved with repairing, restoring, or renovating school property, including grounds, buildings, 

site improvements, building fixtures, and service systems. 

Please note that while grounds are included in this definition, it does not mean the day-to-day maintenance of the 

grounds provided by a gardener or groundsperson; it means major maintenance, such as renovation of the 

grounds or replacement of a sprinkler system. It would not include mowing the grass. The costs associated with 

groundskeeping are included in the operations program. 

Our best interpretation of these codes and regulations is that a school agency can charge any costs associated 

with the maintenance of the facilities or grounds to the routine restricted maintenance account. Costs incurred for 

cleaning and for new construction clearly cannot be included. Not all expenditures fit neatly into the definition, 

and it is important that the district have a rationale for its determinations. 

What about the Custodians? 

When school agencies are trying to determine what are reasonable expenditures that can be charged to the 

restricted maintenance account, the first question is always “Can I charge all or a part of my custodians to the 

restricted maintenance account?” To answer the “all” portion of the question—no. Custodians are categorized as 

an operations expense by the CSAM. However, a portion of the position may possibly be charged to the 

restricted maintenance account! If your custodial staff assists with work orders, the time spent on those work 

orders should definitely be charged to the maintenance department. 

What about Custodians and the Clean Restroom Legislation? 

With the imposition of AB 1124, one of the clean restroom bills, the charging of some custodial time to the 

RRMA is now allowable. From the accounting standpoint, the Standardized Account Code Structure (SACS) 

will allow school agencies to charge custodial time to the maintenance program. However, until the guidelines or 

regulations are developed and approved by the state, we don’t have a clear understanding of what will be 

considered acceptable charges under this bill. 

What Can I Expect in the Audit? 

Currently there are no audit requirements in the State Controller’s Audit Guide for determining what are 

acceptable expenditures. We recommend that common sense be the first guide in determining whether an 

expenditure should be charged to the account. For example, ask yourself, “If the Maintenance Department were 

eliminated, what expenditures would be eliminated?” Obviously the staff and their associated costs, the materials 

and supplies used by the staff, the vehicles they use, and other related expenses would be eliminated. 

It is anticipated that the OPSC will be requesting financial information from the California Department of 

Education (CDE) for Resource Codes 8100 and 8150 to verify that the school agencies that certified that they 

have opened the accounts have actually established these resource codes. This is still in the early stages of 

implementation, but why not get your records in order now so that when they do receive the information from 

CDE, yours will be in the correct resource code? 

58


Conclusions 

While the restricted maintenance account has been around for a few years, many school districts are still 

attempting to get the account in place in the restricted side of the budget and transferring the expenses from the 

unrestricted to the restricted side. Even though there are no specific guidelines for the audit of this account, we 

encourage you to start coding these expenses either to the 8100 or 8150 resource code so that you will be one 

step ahead of any further examination of this issue. 

Budget Calculation 

Total 

General Fund Expenditures and Other Uses $ 

Rate 1% 3% 

Amount $ 

Cash Journal Entry 

Fund Account Debit Credit 

General Unrestricted 01 0000 0 0000 0000 8980 000 0000 $ 

RMA Account 01 8150 0 0000 0000 8980 000 0000 $ 

System Automatically Posts to 

Cash 

01 0000 0 0000 0000 9110 000 0000 $ 

01 8150 0 0000 0000 9110 000 0000 $ 

Funds Remain in restricted account until expended. 

59

Deferred Maintenance 

The State provides matching funds to local educational agencies (LEAs) on a dollar-for-dollar basis, to assist 

school districts with expenditures for major repair or replacement of existing school building components so that 

the educational process may safely continue. This is the State’s deferred maintenance program. 

Note: SBX3 4 (Chapter 12, Statutes of 2009) eliminates the local match requirement for Deferred Maintenance 

for a five-year period from 2008-09 through 2014-15. Therefore, this section has been inactivated for that 

period. 

Due to the changes that have occurred with SBX3 4, state matching funds will now be deposited in the 

unrestricted general fund under object code 8590. Since the match is now from the budget cycle BAS will no 

longer list the match amount on the accrual listing. DO NOT ACCRUE! 

60

Accounting for E-Rate Discounts 

The California Department of Education (CDE) is aware that there are two schools of thought on accounting for 

E-rate discounts. One school of thought is that E-rate expenditures should be accounted for net of the E-rate 

discount, consistent with accounting for any other type of discount. The other school of thought is that the Erate 

discount or rebate should be treated as a grant or subsidy, and the expenditures recorded at their full 

amounts. The CDE recognizes that good arguments can be made for either accounting treatment and is aware 

that local educational agencies (LEAs) are split on the issue. 

The CDE has not previously issued guidance on this topic because before now, neither the Governmental 

Accounting Standards Board (GASB) nor the Federal Accounting Handbook had taken a stance. However, the 

National Center for Education Statistics (NCES), to whom the CDE reports statewide expenditures for 

education, indicates that E-rate should be accounted for as a discount and the draft of the newly revised Federal 

Accounting Handbook contains guidance to this effect. The CDE has decided to issue guidance consistent with 

the Federal Handbook. 

Accordingly, in order to standardize the accounting for E-Rate expenditures and discounts, the CDE advises 

that LEAs should account for E-rate as a discount, not a grant or subsidy. LEAs should treat the E-rate 

discount the same as any other discount, even though the E-rate discount may be a significant amount. LEAs 

should record the expenditure or the purchase of equipment at net cost, not full value 

LEAs may choose to use a contra-account to record the discount in order to keep the full amount of the 

expenditure intact for informational purposes. The use of contra-accounts is discussed in CSAM Procedure 560, 

Abatement of Expenditures. For example, the LEA would account for its telephone service costs before 

discount, and account for the discount as a contra-account. 

Type 

Debit 

or 

Credit 

61 

Amount 

Object 5900 , Communications Debit $10,000 

Object 5901, E-Rate Discount Credit $ 9,000 

Total Communications Expense Net $ 1,000 

If the discounted cost of an item of equipment does not meet the LEA’s defined capitalization threshold, the 

LEA should not capitalize the item, but should include it in the equipment inventory for internal control 

purposes and document its replacement cost for insurance purposes. 

E-rate rebates for expenditures made in a prior year should be accounted for as local revenue. 

.

PERS Reduction 

The funding document for the K-12 school districts contains Schedule H, which requires districts to calculate the 

PERS reduction rate savings to the State. The State then reduces the districts state aid by that reported amount. 

The accounting manual dictates that districts record this reduction as a charge to the various programs and funds 

operated by the district as a benefit charge 3802 and credit the PERS reduction revenue limit offset account 

8092. The distribution of these costs must equal the amount reported on ID 085 of the K-12 Revenue Limit 

PERS Reduction Cost Distribution 

A worksheet can be used calculated the PERS reduction to be charged to each program, then a journal can be 

made to debit the various 26-digit account lines with the object code 380X and crediting the line in which the 

original charge was made in account 380X. If the District plans to charge other funds, the entry will be an interfund 

cash transfer. If the transfer has not been completed before June 14th then a due to “liability” must be set 

up on the fund to be charged and due from “receivable” must be set up in the general fund. Then the end result 

will be that across all funds the total sum of all 380X’s will agree with the amount reported in account 8092 in 

the general fund. Remember the district may not charge any account (such as federal or cafeteria) that has been 

deducted from the PERS Reduction calculation of Schedule H of the K-12 Revenue Limit document. 

EXAMPLE: 2010-11 

First - Calculate PERS Reduction 

Covered Salaries $1,698,596.00 – Retirement will provide 

Subtract Charter Covered Wages .00 – Block Grant Funded 

Less B 1 Federal PERS Salaries 395,465.00 - *Must determine from grant 

expenditures 

Less B 2 Court Mandates .00 

Less B 3 Cafeteria PERS Salaries 145,895.00 - ***Cannot exceed Federal $ or 

Net Applicable $1,157,236.00 State CAP $257,493 

PERS Reduction Rate 2.313% 

PERS Reduction Calc $ 26,767.00 

PERS Reduction Buy Out Rate 19.79% **** P-1 Cert funded Factor – See 

PERS Reduction Buy Out Amt 5,297.00 BASICS for rate 

R/LMT Reduction Amount $ 21,470.00 

Second – Check that 8092 equals 3801/3802 All Funds 

Object 8092 General Fund $21,470.00 

Object 3801/3802 All funds $21,470.00 In Balance 

If not Include adjustment in your adjustment 

Third – Reconcile Costs all ready charged to programs 

3801/3802 All funds $25,485.00 

Should be $21,470.00 

Difference $ 4,015 Overcharged 

62

PERS Reduction (cont’d) 

Fourth – Adjust Accounts 

01 6500 0 5770 1110 3802 000 0000 $ 2,188.00 Credit 

01 0000 0 0000 2700 3802 000 0000 $ 1,827.00 Credit 

01 0000 0 0000 0000 8092 000 0000 $ 4,015.00 Debit 

*Federal legislation provides for consistent application of expenses in determining the maintenance of effort for 

IDEA funds provided to Schools and States across the nation. Section 300.233 states “In order to be eligible to 

receive an IDEA-Part B sub-grant in any particular fiscal year, an LEA is required to demonstrate that it has 

budgeted an amount of State and local funds, or just local funds, to be spent on special education and related 

services that equals or exceeds the amount of those funds spent by the LEA for those purposes in the prior fiscal 

year…” This language allows Districts to charge any special education classified position to the Federal Local 

Assistant Grant. LEAs are no longer subject to having to supplement the program with a new cost area as we 

identified when the new Resource Specialist program came along. Review your IDEA Local Assistant Grant 

(Resource 3310) and if you have positions other than classified being charged you may want to reclassify the 

funding source of those positions to maximize the amount of PERS reduction savings that you would earn through 

the allowable federal exclusion. Funds supported by these Federal Funds in this area have no salary cap 

. 

**Schedule H Line B (2) EDP 420 allows for the exclusion of wages for positions funded pursuant to E. C. 

42243.6 (Court or Federal Mandated Costs) funded under the TIIG program. 

***The limit to the PERS salaries that may be reported on Line B-3 is based on salaries corresponding to employer 

contributions of $25,000. In a normal year, the maximum salaries that can be reported is simply $25,000 divided by 

the PERS rate for that year. When the PERS rate is zero, employer contributions can never exceed $25,000, so there 

is no salary cap. The maximum salaries are updated annually (See BASICS on BAS Website), which can be 

supported by Federal Child Nutrition funds, (CDE & Finance have given a blanket approval under this section) 

may be excluded from the PERS reduction calculation up to the limit of the cap as long as federal dollars are used to 

pay the PERS wages. 

**** The State captures the difference between the base funding (13.020%) and the amount that is paid directly 

to PERS for the employer’s share of costs (zero). The PERS employer rate and the PERS reduction rate can be 

found in the BASICS on the Business Advisory Services websit. The Actual Annual State certification is not 

known at this time. Districts should use the P-2 rates for closing their books. Minor calculated differences 

between the payroll distribution and the calculated PERS Revenue Limit Schedule should be journal against an 

administrative account which has sufficient PERS Reduction charges. 

63


Most Districts on New Payroll now map PERS Reduction as a payroll expense rate against creditable salaries. 

PERS salaries are identified by the payroll retirement codes. Appropriate programs to be charged are identified 

through the Resource Field defined in the Chart of Accounts. Federal Resources (3XXX – 58XX) are excluded. 

Charter School Salaries should be excluded. Cafeteria wages are subject to a cap, which need to be manually 

adjusted in the accounting records. 

During the production posting of each payroll, the PERS charges are charged to Object 3202 and Cash is 

transferred to the Retirement Agency Fund, then it is sent to PERS. The PERS reduction is charged (debit) to 

Object 3802 and Object 8092 is credited in the General Fund. If PERS salaries are charged in other funds, the 

fund offset is to 9572. The District must process an inter-fund cash transfer to charge the cash of the other fund 

and credit the general fund. 

INTER-FUND TRANSFER 

Fund Account Debit Credit 

General Fund 01 0000 0 0000 0000 8092 000 0000 $ 

Child Development 12 0000 0 0000 0000 9572 000 0000 $ 

System Automatically Posts to Cash 

01 0000 0 0000 0000 9110 000 0000 $ 

12 0000 0 0000 0000 9110 000 0000 $ 

The Payroll Process charges each 24-digit account. If a check is canceled the District must cancel the PERS 

Reduction charges manually through a Cash JV (debit –8092 and credit –3802). At the end of the fiscal year 

after the final liability payrolls have been posted and Retirement provides the Summary of PERS wages reported, 

then the District must calculate the PERS Reduction. The amount of PERS reduction reflected in the unaudited 

actuals must agree with the amount reported on Schedule H of the Revenue Limit. 

64


Reconciliation of PERS Reduction Revenue 8092 and Charges 3801/2 

(SACS Report TRC requires 8092 to equal 38XX across all funds) 

Annual Calculation 

Schedule H 

$ A 

General Fund 01 0000 0 0000 0000 8092 000 0000 $ B 

Difference A-B $ X 

General Fund 01 xxxx x xxxx xxxx 380x xxx xxxx $ 

Adult Education 11 xxxx x xxxx xxxx 380x xxx xxxx $ 

Child Development 12 xxxx x xxxx xxxx 380x xxx xxxx $ 

Cafeteria 13/92/93 13 xxxx x xxxx xxxx 380x xxx xxxx $ 

Deferred Maintenance 14 xxxx x xxxx xxxx 380x xxx xxxx $ 

Other Funds -- ------ - ----- ----- 380x ---- ----- $ 

Total amounts charged to all funds Sum $ C 

Adjusting Journal 

Difference A-C $ Y 

Debit Credit 

X Difference 01 0000 0 0000 0000 8092 000 0000 

Y Difference 01 0000 0 0000 7200 3802 000 0000 

Offset if not in balance 01 0000 0 0000 7200 3202 000 0000 

Total Debit must equal Credit 

Revenue amount posted to 8092 must equal the sum of all charges and agree with calculation in Schedule H. 

Before performing final reconciliation – insure that no federal accounts that are being excluded from the 

calculation have any PERS reduction charges, no charges have been made to the Cafeteria account for the 

excluded wages, all S account balances and mapping errors have been cleared. 

If the calculation difference shows that account 8092 should be increased the account should be credited. Debit 

the account when the ledger amount needs to be decreased. If the PERS Reduction costs exceed the revenue 

account 8092, the expense needs to be reduced by crediting the administrative account. If the amount needs to 

be increased, the amount is debited. 

If the amount need to balance with the account 8092 does not equal the amount of adjustments needed to the 

expense in 3802, a nominal difference should be adjusted against the retirement object 3202. 

65

GO Bonds, Bond Interest Redemptions 

In order to assure that District directed electronic deposits are recognized by the treasury and then deposited 

directly in the School District’s account the following must occur: 

When the district receives a notice from the agency that a disbursement is being made, the district should 

FAX or mail a copy of the notice to Business Advisory Services. As soon as the district receives verbal 

notification by the distributing organization, this office should be notified in writing of the impending 

wire transfer and specific dollar amount (A precise amount is needed in order to track the funds). 

The district should submit a Cash Transmittal Form to Business Advisory Services for the amount to be 

received in the appropriate account code. Once the deposit has been made, School Claims will post the Cash 

Transmittal batch. 

GENERAL OBLIGATION BONDS (GO Bonds) should be supported by a Remittance Advice statement from 

your Financial Advisor that shows the recap of fees, premiums, discounts, and gross sales of your bond. 

District Cash Deposit Transmittal for the Proceeds from the GO Bonds for Construction should be deposited in 

Fund 21 and should reflect the distribution detail 

21 – 0000 0 0000 0000 -8951- 000 0000 Proceeds 

0000 0 0000 0000 -8979- 000 0000 Premiums 

0000 0 0000 9100 -7699- 000 0000 (Discounts) 

0000 0 0000 9100 -5880- 000 0000 (Underwriter) 

0000 0 0000 9100 -5880- 000 0000 (Cost of Issuance) 

0000 0 0000 9100 -5880- 000 0000 (Insurance ) 

Revenue should be reflected as positive numbers, expenses should be reflected as negative numbers and the sum 

total should equal the actual funds transmitted by the wire. 

Often the Terms of the Bond state that Premiums or Interest earned must be applied to Debt and then it must be 

deposited in the Bond Interest & Redemption Fund 

51-0000-0-0000-0000-8979-000-0000 Premium/Interest 

The B & I Fund is ONLY a Memo Entry of what is happening in the County Auditors Redemption Section. If 

your instructions state that funds should be deposited in the B & I fund Enter the CASH DEPOSIT but leave in 

OPEN STATUS and BAS will use this to reflect the Voucher Deposit that BAS enters in the Auditor 

Controllers’ Fund. 

66

Fund 51 

Fund Form 51: Bond Interest and Redemption Fund 

Each month the schools financial system is reconciled to the Auditor’s and entries made in the AC 51 account. 

Final data is generally received from the Auditor’s Office by mid-August. Districts may print reports and 

complete extracts for this fund. Once all information is reconciled for year-end, districts will be notified of 

completion and sent copy of Fund Form 51. 

Note: Districts should reflect payment values on long term debt schedule 

Districts should forward all Principal and Interest Invoices to the attention of Steven 

Day at the Auditor Controller 

All Administration Agent fees should be forwarded to the attention of Silvia Soria in 

Business Advisory Services who will complete required payment request forms for 

the Auditor to make payment from Fund 51. 

Fund 51 is required report for the Unaudited Actual Financial Statement. 

67

Fund 53 

Fund Form 53: Tax Override Fund 

The Tax Override Fund collects taxes generated to repay the State of California for state school building loans. 

The payments to the State Controller’s Office are made by a reduction to the monthly State Apportionment 

beginning in February, ending in May (four equal payments). 

All districts except Mt. Baldy have completed their debt obligations. BAS will calculate Override Taxes for this 

district and provide a Fund Form 53. 

Please note that as districts have completed their debt obligation, it is appropriate to close these funds in the 4 th 

year after the final obligations have been paid. To close Funds that are no longer active, the district should 

submit a Board Resolution to District Financial Services along with a transfer of funds request and an interest 

redirection letter stating the Fund in which the districts wishes the final interest payments to be deposited. 

Fund 53 is required report for the Unaudited Actual Financial Statement. 

68

Fund 49 

Fund Form 49: Community Facility District 

The Capital Project Fund for Blended Component Units (Fund 49) is used to account for the receipt and 

expenditure of proceeds from the sale of bonds authorized by election and issued by an LEA under the 

provisions of Government Code Section 53311 et seq. (Mello-Roos Community Facilities Act of 1982) . The 

major expenditures in this LEA’s Capital Project Fund are related to the purchase and improvement of sites and 

the construction and modification of building. 

Fund Account 49 was established for the collection of Mello-Roos Community Facility Districts and similar 

entities. This will ensure that statewide costs for educational facilities are accurately reflected in the governmentwide 

reports under GASB Statement 34. Mello-Roos tax receipts collected by the LEA should be recorded in 

Object 8622, Other Non-Ad Valorem Taxes. Mello-Roos proceeds collected by another agency's community 

facility district, of which the LEA is just a beneficiary, should be reported in Object 8799, Transfers In From All 

Others. 

Fund 49 is a required report for the Unaudited Actual Financial Statement and must reflect the combined 

activities made through their Fiscal Agent (Bank Accounts). 

69

Fund 52 

Fund Form 52: Debt Service Fund for Blended Components 

In conjunction with the addition of Fund 49, Capital Project Fund for Blended Component Units, debt service 

fund was created to account for the collection of money for current debt service for community facility districts 

and other similar entities. The Debt Service Fund Account 52 is used to account for the accumulation of 

resources for the payment of the principal and interest on bonds issued by Mello-Roos Community Facilities 

Districts and similar entities that are considered blended component units of the LEA under generally accepted 

accounting principles (GAAP). The Mello-Roos Community Facilities Act of 1982 (Government Code Section 

53311 et seq.) allows any county, city, special district, school district, or joint powers authority to establish, upon 

approval of two-thirds of the voters in the district, a “Community Facilities District” (CFD) for the purpose of 

selling tax-exempt bonds to finance public improvements and services. 

Fund 52 is required for the Unaudited Actual Financial Statement for the reporting of the all activity with fiscal 

agents used by the District (ie. County Auditor Controller and Union Bank ) 

70

Tax Revenue Anticipation Notes 

Tax Anticipation Notes should be supported by a Remittance Advice from your Financial Agent that shows the 

recap of fees, premiums, discounts, and gross sales of your Notes. 

The District Cash Deposit for the Proceeds from the TRANS should be deposited in Fund 01 and should reflect 

01 – 0000 0 0000 0000 -9641- 000 0000 Proceeds 

0000 0 0000 0000 -8979- 000 0000 Premiums 

0000 0 0000 9100 -7699- 000 0000 (Discounts) 

0000 0 0000 9100 -5880- 000 0000 (Interest) 

Revenue and the Proceeds should be reflected as positive numbers, expenses should be reflected at negative 

numbers and the sum total should equal the actual funds transmitted by the wire. (When the Proceeds are paid 

back to the Financial Lender the expense is paid out of 9641 which nets the Temporary Loan account to Zero) 

If this money is held by a Trustee in a financial institution the beginning entry would be a journal entry to reflect 

cash with a fiscal agent. 

Debit Credit 

01-0000-0-0000-0000-9641-000-0000 Proceeds 

01-0000-0-0000-0000-8979-000-0000 Premiums 

01-0000-0-0000-9100-7699-000-0000 Discounts 

01-0000-0-0000-9100-5880-000 0000 Interest 

01-0000-0-0000-9100-9135-000-0000 Cash with Fiscal Agent 

71

Interest Earnings 

Federal Regulations: 

To comply with federal cash management requirements, LEAs must expend federal funds in a timely manner. 

The Tydings Amendment provides specific timelines governing the expenditure/encumbrance of program funds, 

federal guidelines discourage the release of additional funding to LEAs that have not spent the dollars previously 

apportioned. LEAs are therefore requested to minimize the time frame between receipt and expenditure of 

federal program funds. Beginning in the 2003-2004 fiscal year, CDE started requesting interim financial reports 

for several federal grants. They review the percentage of federal dollars unspent as well as carry-over funds 

from the previous fiscal year for each LEA. If the District has unspent funds, the release of future 

apportionments may be delayed for LEAs with significant balances. 

Federal law Title 34 CFR 80.21(i) also requires that any interest earned by LEAs on federal dollars be returned 

to the U.S. Department of Education (USDE) if the amount is in excess of $100 quarterly. LEAs have been 

instructed to forward interest payments for remittance to USDE to: 

Cashier’s Office 

Fiscal and Administrative Services Division 

California Department of Education 

1430 N Street, Suite 2213 

Sacramento, CA 95814-5901 

To ensure proper posting of payments, please include the program's PCA number and identify the payment as 

“Federal Interest Returned.” 

However, CDE has added the requirement that entities also calculate SFSF (Resource 3200) and 

Education Jobs Bill funds (Resource 3205) interest separately and include correspondence with the 

interest remittance indicating the amount that should be credited to SFSF RS 3200 or Ed Jobs RS 3205 of 

the total amount. The CDE Accounting Office requires a listing of resource codes and amounts 

summarized as follows: 

Interest Earned Resource 3200: $X,XXX.XX 

Interest Earned Resource 3205: X,XXX.XX 

All Other Resource Codes: $X,XXX.XX (List resource codes) 

If the total amount being remitted is less than the total calculated for SFSF or Ed Jobs, then that amount 

will be credited to RS 3200 SFSF and/or Res 3205 Ed Jobs. 

Other State Programs such as Child Development require interest earnings to be reported. Look in various grant 

documents to see if District Contract requires interest earnings. 

The San Bernardino County Superintendent of Schools website has updated interest calculation worksheets and 

instructions at the following we address: 

http://www.sbcss.k12.ca.us/busServe/form/DailyInterestCalculation_MultipleRScodes.xls 

72

Payroll Accruals 

Expenses are recognized and liabilities are set up for goods and/or services received through June 30 th , but not yet 

paid for. The following are some special year-end expenditure treatments which must be considered upon closing 

fiscal records for the year. 

PAYROLL ACCRUALS: ACCOUNTS 1000/2000/31XX-33XX 

ALL DISTRICTS: The following payroll accruals are automatically established by the Consortium Financial 

System. These payrolls will automatically be debited to the applicable FY1 Salary Accounts and credited to 

Current Liabilities (9529): DO NOT ESTABLISH ACCRUALS FOR THE FOLLOWING PAYROLLS AND RELATED 

EMPLOYEE BENEFITS: 

PAYROLLS: 

7/1 and 7/9 Certificated/Classified Payrolls 

July 15 Supplemental Payroll 

The following employee benefits will automatically be debited to the 2003-04 Benefit Accounts and credited to Current 

Liabilities (9529): 

EMPLOYEE BENEFITS: 

Accounts 3101/3102 STRS 

Accounts 3201/3202 PERS 

Accounts 3311/3312, 3331/3332 OASDI/Medicare 

PAYROLL BENEFIT ACCRUALS: ACCOUNTS 3350-39XX 

Districts have the option of establishing accruals for the following employee benefit accounts (which are not 

automatically established by the consortium financial system) if they wish to charge these expenditures to 

FY1). 

FOR "MAPPING" DISTRICTS: 

(DR) 

EXPENSE ACCOUNT 

73 

(CR) 

HOLDING ACCOUNT 

(For Mapping Districts Only) 

Account 3351/3352 Alternative Retirement System 9568 

Account 3411/3412 Health & Welfare Benefits 9564 

Account 3501/3502 Unemployment Insurance 9565 

Account 3601/3602 Workers Compensation 9566 

Account 3701/3702 Allocation of Retiree Benefits 9577 

Account 3751/3752 Active Employees OPEB Benefits 9578 

Account 3801/3802 PERS Reduction 8092/9572 

Account 3901/3902 Other Employee Benefits 9569


(The system will automatically debit the appropriate 3XXX benefit accounts and credit the applicable 956X holding 

accounts as shown on the previous page: 

SYSTEM GENERATES 

DR 3XXX 

CR 956X 

Districts need to establish an accrual by debiting the applicable 956X Account and crediting Account 9529. (PCL 

Program): 

DR 956X 

CR 9529 

NOTE: These accruals are determined by district policy -- some districts believe these costs are a proper charge to the fiscal year in 

which payment is made. Other districts have employment contracts that establish the premiums paid for summer coverage of 

employees to be contingent on their employment during the preceding fiscal year, and therefore, additional benefits must be accrued 

to the district’s fiscal records. 

For Districts that do not wish to accrue these costs to FY1, it will be necessary to "reverse out" the above: 

DR 956X 

CR 3XXX 

And…..establish the costs in FY2 by manually costing the benefits to the various program using SACS account 

codes: 

CR 3XX1 or 3XX2 

DR 956X 

ACCRUALS FOR "NON-MAPPING" DISTRICTS: 

Districts not mapping Alternative Retirement and/or Health Benefits may need to set up (accrue) these liabilities 

through the PCL Program. 

Districts that need to establish these accruals should debit the applicable benefit account and credit Account 9529: 

SDI/Ret. H & W Other 

DR 33X1 or 2 DR 3401 or 2 DR 39X1 or 2 

CR 9529 CR 9529 CR 9529 

74


OTHER FUNDS EMPLOYER BENEFIT COSTS ACCRUALS 

Inter-fund Liabilities/Receivables must be set up in funds where payroll has been charged and 

benefits distributed to the employer benefits suspense accounts. Districts must charge the 

benefit mapping account at time of payment to vendors or they must reimburse the general 

fund benefit accounts for the charges paid on behalf of these funds. 

Establish the accrual by debiting the applicable 956X Account and crediting Account 9529 (CL) in the Payroll 

expensed Fund. Then establish a receivable in the General Fund which paid the benefit by crediting 956X 

Account and debiting Account 9229 (AR). 

District must reclass the accrual posting from the current liability account 9529 to due to another fund 9619 

and accounts receivable 9229 to due from another fund 9319. 

75

ROC/P and JPA Transfer Accruals 

ROC/P TRANSFERS (FROM DISTRICT TO JPA): 

The following is applicable to districts that are members of CRYROP and Baldy View ROP only. 

Establish an Accounts Payable to the ROP for: 

Lottery Transfer (3 rd and 4 th Quarter): Charge to Account 7223 

DR 01-1100-0-6000-9200- 7223 . . . . 

CR 01-1100-0 -0000-0000- 9529. . . . 

76

Direct and Indirect Costs 

5700’s / 7300’s 

Direct costs are charged to appropriate programs, projects, and support functions at the time the goods or 

services are paid. Indirect support charges are subsequently distributed from support service programs to the 

various user programs. Methods of distributing direct costs and indirect charges are defined by the California 

School Accounting Manual. The accounting procedures provide for the District to either have documented costs 

that are supported by work orders, requisitions, or time reports or to allocate costs based on the acceptable 

allocation factors provided in the Program Cost Procedures. 

Transfers of expenditures are from one function to another based on usage or service documentation. Typical 

transfers include services provided or products developed by the LEA, such as maintenance and repair of 

duplicating, audiovisual, or other equipment; photocopying expenses; field trips; district vehicle use; and 

information technology expenses. These transfers change the function of the expenditures. For example, 

transfers related to costs of field trips are considered to be costs of the Instruction Function, not of the Pupil 

Transportation Function. CSAM provides for specific object ranges in which to charge program for these costs. 

SACS software tests that the entries reported are in balance. 

5710 - 5749 Direct Costs for Transfer of Services 

Record the transfers for direct costs of services provided within a fund from one function to 

another. This account must net to zero at the fund level. 

5750 - 5799 Direct Costs for Inter-fund Services 

Record the transfers for the direct costs of services that are provided on an inter-fund basis. 

This account will reflect a balance at the fund level, but only for the amount of between-funds 

costs; the total between-funds debit and credit transactions must net to zero. 

7310 - 7319 Indirect Costs Charges 

Record the transfers of indirect support costs within a fund. This account must net to zero by 

function at the fund level. The function does not change; for example, when transferring 

indirect costs, the function remains Function 7210, Other General Administration, for both the 

debit and the credit. 

7350 - 7359 Indirect Costs for Inter-fund Charges 

Record the transfers of indirect support costs between funds. This account will not balance at 

the fund level, but must balance by function between-funds; the total between-funds debit and 

credit transactions must net to zero by object as well as by function. For example, when 

transferring indirect costs to the Adult Education Fund from the General Fund, the function still 

remains Other General Administration Function. 

77


Function 7210 – General Administration Cost Transfers (for the transfer of indirect costs) 

Description: 

Use to record transfers of indirect costs (both credit and debit entries) in combination with Objects 7310, 

Transfers of Indirect Costs and 7350, Transfers of Indirect Costs – Inter-fund. Function 7210 must net to 

zero. 

Similar to the new objects created to better track the transfers of indirect and direct support costs 

(7310/7350), a new function is proposed to allow for the specific transfers of general administrative 

costs. 

By having a function specifically for the transfer of indirect costs, it will be easier to separate the concept 

of charging only district- or COE-wide costs to Function 7200, Other General Administration, because a 

separate function will be used to transfer indirect costs to specific program resources. 

Starting with 2005/06, a technical check (fatal?) will be added that looks at Function 7200 with restricted 

resources. Because the definition of 7200 is LEA-wide administrative costs, it is not appropriate to charge 

program-specific expenditures to Function 7200 (see discussion of project administration costs, following). 

Audit Expense function for Single Audit 7190 others 7191 

Description: 

The single audit conducted pursuant of OMB Circular A-133 for LEAs that expend more than $500,000 

in federal funds should be coded to Function. 7190, External Financial Audit – Single Audit for an 

external financial audit for LEAs that expend less than $500,000 use Function 7191, External Financial 

Audit – Other. Function 7190 will be added to the indirect cost pool and Function 7191 will remain in the 

base. 

Distribution Method for Maintenance and Operations to Central Administration 

Description: 

Classroom units will no longer be entered to determine the split of M&O costs that will be included in the 

indirect cost pool. The amount will be determined by applying the salary ratio between the functions. 

Collection of Sub-agreements Pass through dollars 

Description: 

Report sub-agreements/awards expenditures for exclusion from the overall costs of the district. 

Exclusions will result in a slightly higher indirect cost rate that will be applied in the second fiscal year. 

Sub-agreement costs exceeding $25,000 may not be included in the expenditure base in which a district 

calculates the indirect costs that will be charged against the program beginning 2007-08. 

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Functions 

Function 2100, Instructional Supervision and Administration 

The scope of Function 2100 includes special project administration and salaries and associated costs of 

employees who provide supplemental accounting or administrative services above the level provided by 

the business office or who provide services normally required of program managers. These costs are 

often mistakenly charged to Function 7200 rather than Function 2100. Changing the title will hopefully 

prompt users to better account for the costs. 

Optional Function 2150 – Instructional Administration of Special Projects (sub-function of 2100) 

Description: 

Activities associated with instruction-related special projects such as Title I or migrant education. Include 

salaries of directors or supervisors of instruction-related special projects and associated clerical or 

program support staff. Costs will generally be associated with a specific resource and may have a specific 

goal. 

This optional code will provide a specific function to use for charging special project administration costs 

similarly to how these costs were tracked in the J-380 program cost report. 

Function 7360, Project-Specific Accounting 

Description: 

Activities concerned with maintaining the records of financial operations and transactions of specific 

projects. Examples might include business office staff assigned to construction cost accounting, or 

preparation of analyses or reports for specific project areas or activities. (For resource-specific project 

activities, see Function 2100, Instructional Supervision and Administration and optional Function 2150, 

Instructional Administration of Special Projects.) Title and description of Function 7360 were changed to 

help LEAs better distinguish between this function and Function 2100 (including the new optional 

Function 2150). 

79


Therefore, a balance for the 7300 account at the fund level may occur, but only for the amount of between-fund 

support. Specific rules applicable for between-fund support are as follows: 

1. Object 735X is used for indirect costs between funds. 

2. Direct and indirect costs shall not be charged between funds, except for the following: 

a. Adult Education Fund (may be charged) 

b. Cafeteria Fund (may be charged) 

c. Child Development Fund (may be charged) 

3. Indirect costs provided to the Adult Education, Cafeteria, and Child Development funds shall be 

computed by applying the applicable fiscal year’s approved FWCF indirect cost rate to the total 

expenditures of the Adult Education, Cafeteria, and Child Development funds, Objects 1000 

through 5999 (indirect costs cannot be charged on objects 6XXX). Payments shall result in a 

credit to cash or liabilities and a debit to the indirect support 735X object within the fund 

receiving indirect support. 

4. Administrative expenses incurred by the General Fund in calculating and collecting developers’ 

fees may be charged to the Capital Facilities Account Fund. The administrative expense shall not 

exceed 3 percent of the fees collected during the period 

(Education Code Section 17620[a][1][c][5]). 

5. Indirect costs made by the General Fund shall result in a debit to cash or receivables and a credit 

to the indirect cost 735X object within an indirect support holding program in the General Fund. 

6. Starting 2007/08, sub agreement costs (object 5100) will be excluded from the base costs along 

with capital outlay for the application of indirect cost charge applicable to the program. 

7. Must use Function 7210 when charging indirects. 

80

California Department of Education (http://www.cde.ca.gov/fg/ac/co/icr070910plan.asp) 

Page Generated: 6/1/2011 1:19:04 PM 

Display version 


Dear County and District Chief Business Officials and Charter School Administrators: 

INDIRECT COST PLAN FOR LOCAL EDUCATIONAL AGENCIES FOR RATES APPROVED FOR USE IN 2011-12 

We are pleased to announce that the United States Department of Education (ED) has approved an updated indirect cost plan for 

California. This plan governs the methodology by which indirect cost rates for California local educational agencies (LEAs) are 

determined. The revised plan coincides with the expiration of California's previous plan, and is the result of negotiations between ED and 

the California Department of Education (CDE). The new plan has as its basis California's previous indirect cost plan, and again 

establishes the CDE as the cognizant agency for approval of kindergarten through twelfth grade LEA indirect cost rates. The new plan 

takes effect for indirect cost rates approved for use in 2011-12. 

Type of Rate 

As before, the type of indirect cost rate is a fixed-with-carry-forward restricted rate. The indirect cost rate is computed and "fixed" in 

advance for a specific future period on the basis of an estimate of that period's ratio of indirect costs and operating costs. Once the 

actual indirect and operating costs of that period are known, the difference between the estimated and actual indirect costs is "carried 

forward" as an adjustment to the calculation of a future rate. This places any adjustments to the rate in a future period, allowing LEAs to 

avoid having to file amended federal or state program reports when actual indirect costs vary from estimated indirect costs. 

The primary cost principles which guide the indirect cost plan are found in the Office of Management and Budget (OMB) Circular A-87, 

Cost Principles for State, Local, and Indian Tribal Governments. This circular establishes principles and standards for determining costs 

for federal awards carried out through grants, cost reimbursement contracts, and other agreements with state and local governments 

and federally-recognized Indian tribal governments. OMB Circular A-87 provides guidance as to what types of costs are allowable 

charges to federal programs, and whether these costs are allowable as direct charges or as indirect charges. 

Other guidance used in the development of the indirect cost plan is found in a variety of federally recognized sources, including: 

34 CFR. Education Department General Administrative Regulations (EDGAR), Parts 75and 76, of Title 34 of the Code of Federal 

Regulations (CFR). California's restricted indirect cost rates are calculated in accordance with Parts 75 and 76. The rates are 

valid for both state and federal programs, including those federal grant programs that have a statutory requirement prohibiting 

the use of federal funds to supplant nonfederal funds. 

ASMB C-10. Department of Health and Human Services (DHHS), ASMB C-10, Cost Principles and Procedures for Developing Cost 

Allocation Plans and Indirect Cost Rates for Agreements with the Federal Government. 

81

Approval and Use of the Rate 

Generally, consistent with past practice, all school districts and county offices of education, and those joint powers agencies (JPAs) that 

request it, are annually assigned an indirect cost rate based on the indirect costs reflected in their unaudited actual data submission. The 

ratio of indirect costs incurred in the current year serves as an estimate of the ratio of indirect costs that the LEA will incur in the future 

year during which the approved rate will be used. 

Once approved by the CDE, the rate will be used by the LEA to recover indirect costs in the second subsequent fiscal year. For 

example, the following is a time line of how 2009-10 data produces rates for use with programs: 

LEAs submit 2009-10 unaudited actual data to the CDE by October 15, 2010. 

The CDE reviews the data and releases the approved rates in early 2011. 

The rates are used to budget and recover indirect costs in 2011-12. 

Changes to the Indirect Cost Rate Calculation 

Most provisions of the indirect cost calculation remain the same as in recent years. The new provisions affect only how the carry-forward 

adjustment is calculated and applied. The new provisions are designed to limit and smooth the effects of the carry-forward adjustment on 

the LEA’ s approved rate, enabling LEAs to plan more effectively and to recover indirect costs in a more predictable manner. 

The new provisions are the result of the collaborative efforts of an indirect cost work group, consisting of LEA representatives and CDE 

staff, that was convened by the CDE and which met over a period of months to explore solutions to those aspects of the previous plan 

that LEAs have most frequently found problematic. The CDE extends its appreciation to the members of that group for their contributions 

in helping to shape the CDE’ s subsequent negotiations with the ED. 

The new provisions are described below, with discussion of their benefit to LEAs and how those LEAs that wish to can make use of them 

to manage their recovery of indirect costs. The new provisions do not require any LEA to change its current practices. 

Limiting the Negative Carry-Forward Adjustment for Over-Recovered Costs. The carry-forward adjustment for overrecovered 

costs will now be calculated using the lesser of the LEA’s approved rate for that year or the highest rate the LEA 

actually used to recover costs from programs in that year, if the highest rate used was less than the approved rate. 

This new provision holds the LEA accountable for a potentially lesser “repayment” of over-recovered indirect costs, via the 

carry-forward adjustment, by calculating the over-recovery using the highest rate the LEA actually used to recover those costs 

rather than the LEA’s approved rate. Where the rate the LEA used to recover costs from programs is significantly lower than the 

LEA’s approved rate, the carry-forward adjustment for over-recovery is minimized and in some circumstances is eliminated 

altogether. 

Example: If an LEA’ s approved rate was based on estimated indirect costs of 8 percent, and the LEA actually incurred indirect 

costs of only 5 percent, there would exist a potential over-recovery of 3 percent. However, if the highest rate the LEA actually 

used to recover costs from any program was 6 percent, the over-recovery would be calculated based on that 6 percent, yielding 

a calculated over-recovery of 2 percent. 

If this same LEA consistently used 6 percent to recover costs from programs except for one instance in which the LEA used 7 

percent, the calculation of the carry-forward adjustment would use 7 percent, yielding a calculated over-recovery of 1 percent. 

LEAs should consider whether charging a particular program at a higher rate than most other programs will be beneficial. 

The distinction between the approved rate and the highest rate used is meaningful only where a potential over-recovery exists, 

that is, when the amount of indirect costs recoverable using the approved rate is greater than the estimated indirect costs that 

were used to establish that rate. Where the opposite is true, that is, where the amount of indirect costs recoverable using the 

approved rate is less than the estimated indirect costs used to establish that rate, an under-recovery exists and the calculation 

of that under-recovery is based on the approved rate. 

82

Example: If an LEA's approved rate was based on estimated indirect costs of 8 percent, and the LEA actually incurred indirect 

costs of 9 percent, there would exist an under-recovery. The carry-forward adjustment for the under-recovery would still be 

calculated based on the approved rate of 8 percent. 

The CDE recognizes that because some programs have indirect cost caps or allow no indirect costs at all, using the highest 

rate the LEA actually used in any program to calculate the carry-forward adjustment for over-recovery is not a perfectly 

equitable solution in every case. However, this new provision represents a compromise that significantly benefits the interests 

of LEAs while protecting the interest of the federal government that unallowable costs in certain programs may not be shifted to 

other programs. 

Applying a Negative Carry-Forward Adjustment Over More Than One Year. Where an LEA’s carry-forward adjustment is 

negative, and where the negative carry-forward adjustment would cause the proposed rate to fall below zero or would reduce 

the rate at which the LEA could recover indirect costs to such an extent that the LEA would sustain significant fiscal harm, the 

LEA may request that the carry-forward adjustment be allocated over more than one year. 

Example: An LEA with a negative carry-forward adjustment may request that all, one-half, or one-third of the negative carry- 

forward adjustment be applied in the current year calculation and that the remainder be deferred. The entire deferred portion 

will be incorporated into the calculation of the indirect cost rate in the following year. If the carry-forward adjustment in the 

following year is again negative, the LEA may again request that the carry-forward adjustment be allocated over more than one 

year. 

The assessment of whether an LEA would sustain significant fiscal harm if its negative carry-forward adjustment were applied 

entirely in the current year calculation is subjective. This assessment is the responsibility of the LEA. The LEA should take into 

consideration that deferring a portion of its negative carry-forward adjustment to a future year will affect the rate calculated in 

that year. 

In the event that applying a carry-forward adjustment over more than one year does not resolve a negative rate, the CDE will 

establish an equitable means of resolution on a case-by-case basis, involving the ED as needed. 

Revising Approved Rates Based on More Accurate Estimates. Where an LEA’s current year ratio of indirect costs does not 

serve as a reasonable estimate of the ratio of indirect costs the LEA expects to incur in the year for which the rate will be used, 

the LEA may ask the CDE to approve a revised rate based on a more accurate estimate of the indirect costs the LEA will 

actually incur. 

Example: If an LEA’ s operating costs increase significantly over their historic level because the LEA takes on new programs 

or expands its existing programs, the ratio of indirect costs to operating costs incurred by the LEA in that year is likely to 

decrease from its historic level. If the LEA were to use its approved rate to recover costs in that year, a significant over-recovery 

of costs could result, creating a negative carry-forward adjustment that might substantially reduce the rate for a future year. 

If the CDE were to approve a revised rate closer to the ratio of costs the LEA actually expected to incur, the LEA would avoid 

the over-recovery and the resulting negative carry-forward adjustment. 

As a practical matter, the LEA in this example could accomplish the same thing by recovering costs from programs using a rate 

less than its approved rate and closer to the costs it actually expects to incur. Since the carry-forward adjustment for over- 

recovery is now based on the highest rate the LEA actually used, an LEA can effectively minimize any negative carry-forward 

adjustment by using a rate very close to the ratio of costs incurred. 

Consistent with past practice, in no case may an LEA use a rate higher than its approved rate. 

83

These new provisions have been incorporated into the automated indirect cost rate calculations contained in the 2010ALL release of the 

CDE’ s Standardized Account Code Structure (SACS) Financial Reporting Software. The functionality relating to these new provisions 

is described in the user guide, which is downloaded along with the software. The software can be downloaded from our Web page at 

http://www.cde.ca.gov/fg/sf/fr/. 

Charter Schools 

Consistent with current practice, charter schools are annually assigned an indirect cost rate based on one of the following criteria: 

A charter school whose financial data is submitted to the CDE as an integral part of its authorizing LEA's financial data may use 

the LEA's indirect cost rate. 

A charter school whose financial data is submitted to the CDE separately from its authorizing LEA, using SACS, (i.e., the 

charter school submits SACS data under its own county-district-school code) is assigned a rate based on its own data. The rate 

calculation is done on SACS Form ICR, similarly to how it is done for other LEAs. 

Charter schools whose financial data is submitted in a manner not covered by either of the above two bullets are assigned an 

indirect cost rate based on the statewide average. Over the last five years this rate has been between 5.00 percent and 4.44 

percent. 

Rates for Non-LEAs 

The CDE may assign an indirect cost rate to a non-LEA that receives funding from the CDE but receives little or no funding directly from 

any federal agency. A non-LEA that receives funding directly from a federal agency would apply to that agency for a rate. Examples of 

non-LEAs are private schools, consortia, not-for-profit entities other than charter schools, and other public or private organizations. 

Non-LEAs requesting a rate from the CDE will be assigned a rate based on the statewide average rate. As mentioned previously, over 

the last five years this rate has been between 5.00 percent and 4.44 percent. This option is used on a case-by-case basis and is subject 

to the CDE's approval. 

Additional Information 

For additional information about the indirect cost rate calculation or indirect cost issues in general, please refer to Procedure 915, 

Indirect Cost Rate, of the California School Accounting Manual (CSAM ). The 2008 edition can be accessed on the CDE's Web page at 

http://www.cde.ca.gov/fg/ac/sa/. Changes relating to the topics in this letter will be incorporated into the next edition, which we anticipate 

will be released in 2011. 

Also available on our Web page at http://www.cde.ca.gov/fg/ac/ic/ is an indirect cost Frequently Asked Questions (FAQ) document and 

the current lists of approved indirect cost rates. The FAQ document will be updated to reflect the new provisions described in this letter. 

If you have questions or need assistance with the new provisions of the indirect cost plan, please contact the Office of Financial 

Accountability and Information Services at 916-322-1770 or by e-mail at sacsinfo@cde.ca.gov. 

Sincerely, 

Scott Hannan, Director 

School Fiscal Services Division 

Last Reviewed: Thursday, July 15, 2010 

84

COMBOS and ROLL-UPS 

All of the Components of the account must be built prior to the account linkage and use of the account in the 

various financial system processes. There are exceptions in payroll and accrual programs were accounts are 

posted and are not validated by the account maintenance validation tables. To discover if there are any invalid 

accounts the district may run the special validation report that compares the accounts in the general ledger 

system against the validation tables. Only accounts with errors are shown with appropriate error messages. 

The Financial System reports are geared to display the District Specific Field Definitions. The extraction of 

financial information to the SACS Software summaries the data by the specific State Ranges. If the SACS 

Software identifies an error in a specific field . The District must so back to the Financial System and review all 

Codes in the State range to determine the appropriate account that must be adjusted. 

Example: 

The SACS TRC warns of an import error 

CHK-FUNCTIONxOBJECT - (W) - The following combinations for FUNCTION and OBJECT are 

invalid. If you believe these account code combinations are valid, please contact the CDE for assistance. 

EXCEPTION 

01 9010 0 0000 0000 4400 

Since both 9010 resource and object 4400 are roll-ups, the district should execute a BDX summary 

report to find the account line that has no function or scroll through the Approved Set Account on-line for 

object 44@. When running the BDX report the district should use the wild card selection of the account 

select screen to find all resources that the district may have created in the 9810 roll-up category as well as all 

specific objects within the 4400 range. 

An example of the selection would be 01 90?? ? ???? ???? 44??. Once the summary report or the on-line 

review provides the specific account which has is in error, a journal can be done to provide the correct 

function for the transaction. 

Most of the accounts that will cause errors in the SACS Software will be 

Identified with the Combo Compare Lists. 

1. Run the Lists. 

2. Correct the Accounts. 

3. Close the bad accounts 

Remember! The original SACS extract data also has the bad account line. The import of the financial 

system only overlays data being transferred in. Before importing the financial data, you must delete the 

SACS fund data. This is done by going into the user input screen, placing the cursor over the fund number 

that has the bad data and deleting that group. Once the fund group is deleted then import the new data, 

which will no longer have the bad account line since it was corrected in the financial system and is no longer 

there. 

85

Combo Compare Lists 

Audit – F-Account Against State Combo Report 

86 

05


The Standard Account Code Structure (SACS) has seven field values that have been defined by the California 

Department of Education as to use and specific number code. Six of these fields (fund, resource, project-year, 

goal, function, and object) are currently mandated for full accounting use. Within this structure the State has 

dictated accounts that may be used as long as the values are “rolled up” to a predefined state number. The 

seventh field (School) has not yet been defined for use. CDE has only specified that, when mandated, the stream 

of data must be able to translate the local number being used to the assigned CDS code for the school site 

expenditures. In San Bernardino County, we have worked with School District Advisors to further define the 

optional fields of the structure for standard use by all the Districts. The San Bernardino financial system account 

code also maintains an eighth field containing a four-digit alpha/numeric code identified as the management 

field. This field was designed for the discretional use of the district. 

Fund Resourc Prj Goal Function Object School Mgmt 

e Yr 

XX XXXX X XXXX XXXX XXXX XXX XXXX 

2-Digits 4-Digits 1- 4-Digit 4-Digit 4-Digits 3-Digits 4- 

Digit 

Alpha/Num 

eric 

The Financial System contains a complicated series of control features that the County Office maintains 

these tables to insure compliance with CSAM for fiscal reporting and to be able to provide flexibility to School 

Districts. 

Major Range File – This file sets up the discretionary range of numbers that the district may use. It 

defines the County Range Control, and the State specific or State “roll up” number. 

Type To From County State Description 

Fund 13 13 13 13 Cafeteria Fund 

Fund 93 93 93 13 Cafeteria Account 

Object 1120 1129 1100 1100 Hrly Teacher Salaries 

Object 3101 3101 3101 3101 STRS for Certificated 

Object 4350 4359 4300 4300 Office Supplies 

Resource 5800 5899 5810 5810 Other Federal Projects 

Resource 7800 7899 7810 7810 Other State Projects 

Resource 9000 9599 9010 9010 Other Local Projects 

Resource 9701 9701 9701 7710 County Schools Facility Funds 

Resource 9871 9871 9871 9010 Special Reserve Capital Project 

State Combo File – This file establishes the appropriate linkage of two codes in the chart field values. 

There are six (6) combo charts defined by the State and one (1) combo chart defined by County. The account 

maintenance file uses 5 of the STATE charts and the County chart to validate all accounts being linked. Error 

messages tell districts which field value is unacceptable. Not all accounts are checked. The State did not feel 

that they had enough standardization between resource and expense object to screen what type of expenses could 

be booked to any particular resource, so the expense codes are by-passed. In the Function by Object check, the 

State did not feel any function should be linked to a revenue object but made it optional for LEAs, so revenue 

objects are by-passed during this check. A special by-pass was also made for fund balance objects that are not 

part of the State download. These objects range from 9798 – 9855. 

87


The Range file sets the State account that is validated by the combo checks. The Fund by Resource check is the 

only combination that refers to the County account. The ability to further define the State SACS code and the 

reporting regulations from the CDE have resulted in the need for this Range file that allows LEA the ability to 

build their account files. CDE has proclaimed that object code 4300 is Supplies. They allow LEA’s to further 

define what type of supplies by using the third and fourth digits of the object code. In San Bernardino County, 

an Advisory group of district and county personnel came together to work on the template of what is now the 

Range file. Agreement was reached to stratify the supply object into 9 basic object groups. This allowed 

standard crosswalk references for building the workbench upon conversion as well as training, auditing, and 

having the ability to run statistical reports across the county system. The remaining digit of the account code 

allows the district more flexibility. So it becomes very important to understand that the California School 

Accounting Manual (CSAM) reflects the highest level of the account. The range identifies all the subsidiary 

numbers that will be rolled-up to the State account value. The State account value is the number that is in the 

Combo validation tables. 

State Combos 

Fund Goal Resource Object Function Object 

01 0000 9010 8290 1000 1100 

01 1110 9010 8590 1000 2100 

01 5001 9010 8660 1000 2900 

11 4610 9010 9110 1000 3101 

13 0000 9010 9120 1000 3102 

30 0000 9010 9200 1000 3202 

County Combo File – This file establishes the appropriate linkage for fund and resource. It is a more 

defined set that allows San Bernardino County to sub-fund with the County Auditor Controller and Treasury. 

Since this file replaces the State Fund by Resource checks, it contains all the State combos except for those 

resources used as sub-funds (SS). An additional level of security is provided for the Sub-funded funds (SS). 

Only resources set up to cross reference to the specific County government FAS codes are allowed. These “SS” 

resources have been assigned specific numbers in the locally defined (9600 – 9999) group of SACS resources. 

These numbers are not linked to the District field definition until the District submits board approval to set-up a 

fund or sub-fund. The Range file sets up the State value (9010) that the Local County numbers will roll to for 

State reporting and the combo checks of the other linkages defined by SACS. 

County Combos 

Fund Resource Fund Resource Fund Resource 

11 6390 30 9830 35 9701 

14 6205 30 9831 40 9871 

25 9812 30 9832 40 9872 

25 9813 30 9833 53 0000 

25 9814 30 9834 71 0000 

25 9815 30 9835 93 5310 

District Field Definition – This file is maintained by the District for Resources, Goal, Function, Object, 

School, and Management Code. Fund, Sub-Funds, and Project Year definitions are maintained by the County- 

School Claims Division. The County will add newly established resources to the Major Range and Combo files. 

Districts may add field values within the appropriate ranges. Funds/Sub-funds will only be established upon 

appropriate board authorization. The District Field Definition file is individual to each district – there is no 

88


master County Field Definition File. Upon entering SACS in 1996, a standard file was copied into each 

district's file. At that point every district was the same except for their own unique funds and sub-funds. Since 

that point in time each district has chosen to update or exclude numbers based upon need/use. The district 

cannot create or use a number in the District Field Definition file unless it is in the Major Range File. The Major 

Range must exist in order to establish the field definition. 

Account Field Definition 

1 0001 GENERAL FUND GEN AAA 

2 9832 RE LP 22-361036-001 SMITH SCHOOL LLP TFG 

4 8510 SITE COSTS SITE 

6 4310 INSTRUCTIONAL MATERIALS INSTRMTL 

Account File- This file is accessed by the district through the Account Link, Beginning Balance Link, or the 

tentative budget roll. At the time the account is linked or rolled into the General Ledger File the appropriate 

combo, major range, and district field definition files are validated. If the edit is not passed, a message will 

show on the screen in the link program identifying the error of the account. The account will not be added until 

the error is fixed. When using the budget development account roll to the general ledger system an edit report is 

generated that declares if the roll passed or failed the account checks. If any errors exist the roll will not take 

place. The district must correct the error and then attempt to roll the accounts again. 

Account Debit Credit Status 

01-0000 -1110 - 0000 -1110 -200 

–0000 

O 

Error: Function X Object not allowed 

Note: Every Expenditure Object must have a Function associated with it. Districts may run combo reports from 

the financial system to review appropriate associated numbers. 

89


In this account link program the district may close an existing account by replacing the (O) open status 

with the (C) closed status. 

Chart of Accounts 

General Ledger Account File 

Account Link Beginning Balance 

Major Range 

County Combo 

State Combos 

Fund by Object Fund X Resource Fund X Goal 

Fund X Function Resource X Object Function X Object 

Goal X Function 

Field Definitions 

County District 

Fund / Sub-Fund Resource /Yr Resource/Goal / Function / Object 

/ School / Mgmt 

90

Capitalization Threshold for Capital Outlay 

Education Code Section 35168 requires LEA’s to maintain an inventory of items costing more than $500. Many 

School Districts have interpreted this section to mean that items costing $500 or more must be capitalized. This 

is not the case. While all capitalized items should be inventoried, not all inventoried items should be capitalized. 

Capital assets are those assets that: 

1. Have a useful life of more than one year. 

2. Is an independent unit rather than being incorporated into another unit item. 

3. Is normally repaired rather than replaced. 

4. The unit cost of the item is greater than the capital threshold amount set by the 

Governing authority of the agency. 

The Government Accounting Standard Board has issued Statement 34 that deals with new reporting 

requirements for governmental units. One requirement is the reporting of capital assets and accumulated 

depreciation. CDE is recommending that LEA’s look at their current capital threshold – the dollar amount in 

which items are considered assets rather than supplies. They are encouraging each LEA to establish a threshold 

that deals with material non-expendable tangible items as assets. The California State Accounting Manual that 

governs the State’s asset accounting, states that items under $5,000 per unit are supplies. Federal OMB circular 

A-87 allows property costing up to $5,000 per unit to be charged to Federal Grants as supplies. 

A-87 19(a)(2): Equipment means an article of nonexpendable, tangible personal 

property having a useful life of more than one year and an acquisition cost which 

equals the lesser of (a) the capitalization level established by the governmental unit 

for financial statement purposes, or (b) $5,000. 

Items below the LEA’s established threshold amount are considered supplies. There are both consumable and 

inventoried supplies. District inventory systems should be able to separate inventoried supplies, depreciable 

equipment, and non-depreciated assets. Systems need to be able to keep track of the total value of these classes 

of items, calculate current depreciation, store accumulated depreciation, account for annual deletions and 

additions. Property inventory requirements and capitalization thresholds are used for different purposes. 

An inventory is an itemized list for tracking and controlling property 

Capitalization is an accounting treatment that establishes a capital asset that 

will be carried on the balance sheet of the governmental unit. 

Capital Assets are those items that meet the estimated useful life and 

monetary cost criteria. 

At year end, Districts to review their asset/inventory accounts for inclusion of their Audited Financial 

Balance Sheets. Capital purchases in the fund statements must be shown as additions. 

NOTE: 6170 Object for Land Improvements was mandated for use starting in 2005-06. 

91

Capitalization Threshold for Capital Outlay 

At year end, Districts are to review their asset/inventory accounts for inclusion of their Audited Financial Balance Sheets. 

Capital purchases in the fund statements must be shown as additions. 

92

Debt Interest/Principal/Proceeds 

Governmental funds are concerned with the flow of current financial resources. Accordingly, certain liabilities 

that are not expected to require the use of currently available resources are not reported in governmental funds. 

Instead, these liabilities have been reported in a separate General Long-Term Debt Account Group. The General 

Long-Term Debt Account Group upon conversion to GASB 34’s Government Wide Statement requires the 

values in the Long Term Debt Account Group to be made to the balance sheet. The Account Group will no 

longer be used to collect the set of accounting records.. 

Items normally included in a school district or county office of education’s long-term debt balance sheet entries 

are the outstanding principal on bonds, capital leases, certificates of participation, state school building loans, 

and long-term liabilities for retiree benefits and compensated absences. Typically, long-term debts are incurred 

to construct or purchase buildings, land, and equipment . 

Short-Term Portion of Long-Term Debt and Accrued Liabilities 

Districts should maintain detailed information on all of their debt, including issue date, interest rate, total debt 

outstanding, and principal and interest repayment. In general, LEAs should report liabilities in the GASB 34 

Balance Sheet or the General Long-Term Debt Account Group at face value, without premium or discount. 

GASB Codification Section 1600.121 requires that long-term debt continue to be reported in the General Long- 

Term Debt Account Group until it is due. Only the portion of the debt that will require the use of existing fund 

assets for settlement should be classified as a liability or expense of the governmental fund. However, debt may 

be reclassified in the debt service fund if resources have already been accumulated in that fund at the end of the 

fiscal year for debt service payments due early the following year. 

Accrued liabilities, such as accounts payable, should be reported in the governmental fund rather than in the 

GASB 34 Long-Term Debt Balance Sheet or the Account Group, regardless of whether they will be liquidated 

with current resources. There are exceptions to this general rule for the following specific types of liabilities: 

Claims and judgments Compensated absences 

Unfunded pension contributions Special termination benefits 

In these cases a liability should be recognized in the General Long-Term Debt Account Group for the unmatured 

amount, i.e., the amount not yet due and payable. 

93

Debt Interest/Principal/Proceeds (cont’d) 

Districts making payments on the current portion of any debt are required to segregate the payment into principal 

and interest Object 7438 and principal Object 7439. CSAM provides the following descriptions 

7438 Debt Service—Interest. Record that portion of a debt service payment that represents the 

current interest expense due on the debt. . 

7439 Other Debt Service—Principal. Record that portion of the other debt service payment that 

represents the repayment of principal. Examples of all other debts include capital leases and 

certificates of participation. 

Districts are still required to complete the Changes in Long Term Debt worksheet. Current deductions can be 

gathered from the principal payments made during the year. Collect debt schedules from your agreements. Ask 

vendors to provide breakdown of interest and principal on invoice. 

94

“AC Accounts” 

“AC” Accounts are funds that have been set-up to allow Districts to perform record keeping and reporting of 

financial activity that is kept outside the County Treasurer in a Bank Account or with a Fiscal Agent. The AC 

Fund allows for journals (JE/JV) and year end accruals to be set-up (AR/CL) and reversed (Z), with the same 

accounting rules established for the Cash in Treasury Funds. The only difference is that Batches are all internal 

posting. No batch is held for audit. 

There are currently two methods by which a District keeps its transactions for year end reporting in the financial 

system, detail and summary. If the District wants to keep detail records of each transaction (checks/deposits), 

some districts have found that using the Cash Deposit Module of the Financial System allows them this 

flexibility. The Cash Deposit module allows districts to enter daily records with a 20-digit description. Deposits 

are positive entries and withdrawals (checks) are negative entries. If the district has other means to keep detail 

records they may wish to complete a year end journal with the grand total amount that effected each account 

classification. 

The only requirement for the annual financial reports is that the entries are substantiated by bank account records 

and are audited by the Districts annual auditors. These statements must be included in the Audited Statements 

with any reconciliation adjustments noted between the reported unaudited fund report and the Audit Statements. 

Current Listing of AC Funds 

District: ACCOUNT FIELD DEFINITION Fiscal Year: XX 

 

Option: C (A)dd (C)hange (D)elete (R)eport (E)xit 

 

Field Value Type Name Abbr Ref 

1. 1 49 AC COMPONENT UNIT FACILITY DISTR CFD Beginning in FY 02/03 

2. 1 51 AC BOND INTEREST & REDEMPTION B & I UA’s no longer extract 

3. 1 52 AC DEBT SERVICE FUND DEBTSCFD Fund 96 and Fund 97. A 

4. 1 92 AC CAFETERIA ENTERPRISE ACCOUNT FUND 16 

supplemental 

 

worksheet 

provides the asset and debt 

5. 1 93 AC CAFETERIA ACCOUNT FUND 13 

information for the SACS 

6. 1 94 AC COMMUNITY FACILITIES DISTRICT FUND 49 Reports. 

7. 

1 96 AC GENERAL FIXED ASSETS ACCTS GRP ASSET 

8. 1 97 AC GEN LONG-TERM DEBT ACCOUNT GRP DEBT 

9. 1 99 AC CHARTER SCHOOL FUND CHARTER 

95

“AC Accounts” (Continued) 

Fund 

Money is kept in School Fund with 

County Treasury 

Entries for financial reports are booked 

as transactions are made 

Transactions are audited by District 

Financial Services 

Transactions and Accounting Rules 

follow Education Codes, Public Contract 

Codes, CSAM, GAAP, and GASB 

Included in Audited Financial Report 

All Schools Financial System 

Components are utilized 

Included in CDE SACS Reports 

What’s the Difference? 

Same 

No 

No 

No 

Yes 

Yes 

No 

Yes 

96 

Account 

Money is kept in separate accounts with 

bank or auditor/controller or fiscal 

agent 

Entries are summarized from banking 

institution for internal record keeping 

system 

Transactions are not reviewed by 

District Financial Services 

Transactions and Accounting Rules 

follow Education Codes, Public 

Contract Codes, CSAM, GAAP, and 

GASB 

Included in Audited Financial Report 

Only Journals and Cash Deposit 

Entries Used for Transactions 

Account Maintenance, Budget 

Maintenance programs are used 

Included in CDE SACS Reports

“AC Accounts” (Continued) 

To prepare Fund 93 for the annual summary entries the following steps are a guide 

1. Validate the being balances posted to the account agree with the prior year ending balance 

reported. 

2. Insure that Audit Adjustments have been made by 1 st restating the beginning balance with the 

Budget entry and then reflect the transaction with a journal entry or DC entry. 

3. Validate that all prior year accruals have been posted and closed with the Z option. 

4. Record receipts and payments made from the bank account in detail or summary. Reflect 

payments in appropriate function/object codes. Classify revenue received in the appropriate 

revenue object codes. 

5. Set-Up current year accruals in the AR and CL programs to reflect obligations known and 

measurable for the fiscal reporting year ending June 30. 

Determine the Balance Sheet Fund Statement 

Cafeteria Fund Statement 

Revenue $1,625,000.00 

Expense 1,499,535.00 

Net Operations $ 125,465.00 

Beginning Fund Balance 59,535.00 

Ending Fund Balance $ 185,000.00 

Cash $ 175,535.00 

Receivables 85,000.00 

Stores 4,000.00 

Payables 5,605.00 

97

Making the AC Account Journal 

Journal Description Account# DEBIT CREDIT 

Meals for Needy 93 5310 0 0000 0000 8091 185,000.00 

Federal Prior Yr Nutrition 93 5310 0 0000 0000 8220 835,000.00 

Federal Child Nutrition 93 5310 0 0000 0000 8220 84,000.00 

State Child Nutrition 93 5310 0 0000 0000 8520 215,000.00 

Food Service Sales 93 5310 0 0000 0000 8634 305,000.00 

Interest 93 5310 0 0000 0000 8660 18,015.00 

Food Service Workers 93 5310 0 0000 3700 2210 745,000.00 

Social Security 93 5310 0 0000 3700 3312 48,425.00 

Unemployment 93 5310 0 0000 3700 3502 3,725.00 

Workers Comp 93 5310 0 0000 3700 3602 15,645.00 

Supplies 93 5310 0 0000 3700 4350 1,605.00 

Food 93 5310 0 0000 3700 4700 580,535.00 

Prior Year Food Purch 93 5310 0 0000 3700 4700 53,000.00 

Repairs 93 5310 0 0000 3700 5610 1,050.00 

Equipment 93 5310 0 0000 3700 6410 6,000.00 

Cash In Bank 93 5310 0 0000 0000 9120 150,000.00 

Stores 93 5310 0 0000 0000 9320 1,000.00 

1,624,000.00 1,624,000.00 

Accounts Receivable Set-up 

June Federal Meals 93 5310 0 0000 0000 8220 85,000.00 

Accounts Payable Set-up 

June Food Vendors 93 5310 0 0000 3700 4700 5,605.00 

General Fund Indirect 93 5310 0 0000 7200 7370 73,930.00 

NEVER Do Journals in Fund Balance accounts 97XX other than for audit adjustments or restatements 

of the beginning fund balance. Contact your Advisor for assistance. 

Cash MUST EQUAL June 30 Cash in Bank Statement 

Note Beginning Cash 25,535 Plus Journal Cash 150,000 equal ending Cash 175,535 

98

Lottery 

Lottery funds are distributed to a number of educational agencies, including K-14 schools, the California 

State University, the University of California, Hastings College of Law, state special schools, and other 

state-operated schools. The State Controller’s Office (SCO) allocates funding based on average daily 

attendance (ADA) or the number of full-time students enrolled. Lottery funds are paid out in the 

subsequent quarter from when they were received from the sales. The CAO takes the attendance and 

divides the quarter’s state receipts by total statewide factored ADA to provide an amount per ADA in 

which to calculate each district’s amount. The California Department of Education (CDE) adjusts the 

districts annual ADA with a factor of 1.04446. This factor was based on the statewide excused absent 

rate (SB 1468) that adjusted revenue limit funding upon the implementation of SB 727 in 1997 for the 

conversion to positive attendance. The funded ADA shown in the lottery apportionment document is 

equal to an agency’s prior year ADA multiplied by this factor and rounded to the nearest whole number. 

The number of funded ADA is adjusted, as opposed to the funding rate, thereby enabling the state to 

allocate lottery funding at the same rate per ADA for K-12 agencies as the rate per full-time equivalent 

student (FTES) that is used for higher education institutions. 

Districts generally need to accrue the 3rd and 4 th fiscal year quarters as revenue to the fiscal year close. 

In past years the 3 rd quarter (January – March) is known by the payment that is received in July. The 4 th 

quarter (April – June) is an estimate based on the amount from CDE times the prior year annual modified 

by the ADA factor. 

Districts should account for the unrestricted lottery under Resource 1100. Allowable expenses are for 

instructional purposes. Expenditure guidelines for Proposition 20 restricted lottery allowance funds are 

outlined in Education Code Section 6100 subdivisions (h), (m), or (n). 

EC 60010. For the purpose of this part, the following terms have the following meanings unless the context in which they appear 

clearly requires otherwise: 

(a) "Basic instructional materials" means instructional materials that are designed for use by pupils as a principal learning resource 

and that meet in organization and content the basic requirements of the intended course. … 

(h) "Instructional materials" means all materials that are designed for use by pupils and their teachers as a learning resource and 

help pupils to acquire facts, skills, or opinions or to develop cognitive processes. Instructional materials may be printed or nonprinted, 

and may include textbooks, technology-based materials, other educational materials, and tests. 

The restricted funds are accounted for under Resource 6300. The “Cardenas Textbook Act of 2000” 

provided that beginning in 1998-99, fifty percent of any growth in lottery funds for education over the 

1997-98 base fiscal year be allocated to school districts and community colleges (K-14 schools) to be 

used for instructional materials. Funds are generally received in the 4 th quarter for these growth dollars. 

The 4 th quarter (April – June) is an estimate based on the amount from CDE times the prior year annual 

ADA modified by the ADA factor. Expenditure guidelines for Restricted Lottery allowance funds are 

outlined subdivision (k) of Government Code Section 8880.5 

8880.5. Allocations for education: 

(k) As a condition of receiving any moneys pursuant to subdivision (a) or (b), each district and county superintendent of schools shall 

establish a separate account for the receipt and expenditure of those moneys, which account shall be clearly identified as a lottery 

education account. … 

(m) It is the intent of this chapter that all funds allocated from the California State Lottery Education Fund shall be used exclusively 

for the education of pupils and students and no funds shall be spent for acquisition of real property, construction of facilities, financing 

of research, or any other non-instructional purpose. 

Business Advisory Services will provide the 3 rd and 4 th Quarter accrual amounts for Lottery revenues on the Accrual Listing 

available on July 26, 2010. 

99

Lottery (Continued) 

Expenses under the gray area must be corrected. Examples: 

● Equipment cannot be purchased under the restricted Lottery account (journal to 

unrestricted Lottery). 

● Field trips cannot be charged to the restricted Lottery account (journal to unrestricted 

Lottery). 

● Duplication costs for printed instructional materials are OK (provide explanation) 

100

Sub-agreements 

Typical examples of sub-agreement expenditures that the district will need to reclassify for exclusion from the 

indirect cost base. 

1. ROP agreements in which ROP/C pays the District to operate a class – ROP/C excludes the agreement 

and codes as 5100. 

2. Agreements in which the district pays the ROP/C or another agency to operate an instruction program or 

class- District excludes the agreement and codes as 5100. 

3. NPS agreements in which the authority of educating a special education student has been delegated to a 

Non-Public School provider. If the SELPA provides centralized NPS services on behalf of the district, 

contact the SELPA for this information. 

4. SELPA X-Pot agreements in which the district has delegated the responsibility of certain activities to the 

SELPA (e.g., due process activities for special education). Contact the SELPA for this information. 

5. A transportation agreement in which another district or vendor has the responsibility of transporting the 

district’s pupils to and from school. 

6. Agreements in which the district contracts with the Sheriff or Police to provide School Safety 

instructional programs, such as D.A.R.E.. 

All of the above agreements involve the district delegating the responsibility of an instructional activity or 

support service to be performed by another agency. CDE provides that the district does not need to exclude the 

first $25,000 for each agreement. Generally, the new indirect cost plan considers that the first $25,000 of an 

agreement would be representative of the administrative oversight that the District would have in delegating the 

responsibilities of the activity. Districts would not need to reclassify any contract that did not exceed $25,000. 

But, in discussing the role some SELPAs have with the NPS agreement (centralized NPS), the District has 

delegated the administrative oversight to the SELPA for these agreements and, therefore, the total cost 

reimbursement from the District would be classified as a sub-agreement in object 5100, and excluded from the 

district’s indirect cost pool. CDE was also asked if the $25,000 threshold could be applied for each individual 

student agreement under the umbrella of one NPS Master Agreement. The answer was that there was only one 

vendor (NPS) agreement signed and executed (the Master Agreement) that resulted in administrative oversight 

of the sub award, and therefore only one exclusion for the Master Agreement was appropriate. 

We have discussed with CDE some of the key elements that could help one determine if an agreement is for the 

procurement of services (vendor agreement) versus a sub-agreement (sub award). If the district hires a consultant 

or firm to perform a specific task, i.e. tutoring, staff development, nursing, counseling, therapy, etc. then the 

district has not delegated the responsibility of the activity. The process is similar to hiring a teacher, a nurse, 

counselor, etc., and would be a procurement of professional services and not a sub award or sub-agreement. 

Districts will need to review the substance of their agreements to determine if the expenditures should be 

classified as a sub-agreement. 

J:\Workshps\Year End 2010\UA Manual 101 July 2010

Flexibility Transfers 

Federal Flexibility Transfers - NCLB Section 6123 governs the transferability of federal funds. A 

maximum of 50 percent of a program’s funds may be transferred to or from the following programs: 

Title II, Part A 

Title II, Part D 

Title IV, Part A 

Title V, Part A 

In addition, funds may be transferred to, but not from, the Title I program. 

Object 8990 should be used for these flexibility transfers. 


Contributions 

8980 Contributions from Unrestricted Revenues. Record the amount of money that must be transferred 

from unrestricted resources in the General Fund when the revenues for a given restricted resource are 

less than the expenditures. Use this account to transfer funds from one unrestricted resource to 

another unrestricted resource. Also record in this account the LEA’s contribution of matching funds 

(the cash match) if required by a special project. A transfer is recorded by a debit (decrease) in this 

object account from Resource 0000, Unrestricted, to the receiving program by using a credit (increase) 

in this object account. This object account must net to zero at the fund level. 

8990 Contributions from Restricted Revenues. Record the transfers of restricted revenues to another 

resource, such as transfers to the School-Based Coordination Program (SBCP) or Transportation 

Grants. The resource transferring out the revenues records a debit (decrease) in this object account, and 

the resource receiving the revenues records a credit (increase) in this object account. This object 

account must net to zero at the fund levels. 

Cash Journal Entry Example 

Program Contribution Account Code Debit Credit 

Unrestricted 01 0000 0 0000 0000 8980 000 0000 $ 400,000 

Special Education 01 6500 0 5001 0000 8980 000 0000 $ 400,000 

Program Flexibility (SBCP) 

Economic Impact Aid 01 7090 0 0000 0000 8990 000 0000 210,000 

School-Based Coordination 01 7250 0 0000 0000 8990 000 0000 $ 210,000 

Federal Transferability 

Title II Part A 01 4035 0 0000 0000 8990 000 0000 $ 15,000 

Title V Part A 01 4110 0 0000 0000 8990 000 0000 $ 18,000 

Title I Part A 01 3010 0 0000 0000 8990 000 0000 $33,000 

Accounts Must Balance within Specified Object 

Debits Equal Credits 

May NOT move between 8980 and 8990 

8980 OUT must equal 8980 IN 

8990 OUT must equal 8990 IN 


Categorical Reporting 

The purpose of Categorical reporting is to reflect the status of Federal and State restricted funds. While these 

funds in most cases have individual program reporting requirements, the categorical report (Form CAT) 

accumulates the summary totals for the operations of the Categorical programs and provides a summary of the 

activity in the General Ledger totals. The impact of the Categorical programs on the districts’ financial records 

can be significant, particularly with regard to restricted balances. 

Currently, the California Department of Education has moved away from the use of the “Grant” and 

“Entitlement” titles previously used to identify the method of categorical accounting. Now the programs are 

noted as being “Subject to Deferred Revenue” designated by a “D” in CDE documentation or “Subject to 

Restricted Ending Fund Balance” designated by an “F”. 

Programs are considered “Subject to Deferred Revenue”, if their revenue is earned at the time the expenditures 

are made. Revenue is recognized at the time the expenditures are made regardless of when the funds are 

received. Any funds received, but not spent, are considered a liability of the district and are set up as deferred 

revenue. 

Programs are considered “Subject to Restricted Ending Fund Balance”, if their revenue is earned at the time the 

funds are apportioned to the district. Revenue is recognized when the cash is received regardless of the timing of 

expenditures. Any funds not spent before the close of the fiscal year must be reported as part of the Restricted 

Ending Fund Balance. Many Districts choose to designate these funds as legally restricted, Object 9740. 

When completing Form CAT, one of the greatest areas of confusion is determining the distinction between the 

“amount available” and the revenue and award amounts. For programs subject to Deferred Revenue, the amount 

available is the deferred revenue from the prior year plus the cash already received and matching funds, if 

applicable. If expenditures exceed the available amount, a receivable must be set up for the excess, no to exceed 

the approved carryover or the balance of the award whichever is less. Revenue in these funds may not be both 

deferred and accrued as a receivable. These programs must either accrue receivables for funds earned by 

expenditures or defer funds received and not spent. For those funds subject to a Restricted Ending Fund 

Balance the amount available is any beginning balances plus the current year award (regardless of receipt of 

cash), matching funds and any prior year adjustments. A receivable must be set up for the balance of the award 

that has not been received, without regard to expenditures. 

Ultimately, the reconciliation of revenue in Form CAT, for each resource, should agree to the balance of the 

revenue accounts in the general ledger after all accruals have been recorded for balances subject to deferred 

revenue. The restricted ending balances on the CAT schedule must agree to the ending fund balances by 

resource that reside in the general ledger after all accruals are recorded. 


SACS Reporting Rules 

FEDERAL, STATE AND LOCAL GRANT AWARDS, REVENUES AND EXPENDITURES 

(CATEGORICAL PROGRAMS) 

The Categorical Programs Form CAT, has been designed to assist the district in determining the correct amount 

of deferred revenue, the restricted ending fund balance, and the unused grant award (carryover) at the end of the 

year. Report on the Form CAT all federal, state and local (optional) categorical revenues for which the district is 

responsible. All categoricals should be listed according to the official name of the program and appropriate 

resource coding assigned. For federal programs, the 5-digit federal catalog number from the Catalog of Federal 

Domestic Assistance is used to further define the program being reported. 

Specific revenue recognition policies are used in financial accounting for categorical funds. Applying the 

appropriate policy is extremely important. To account for categoricals properly, you must first determine if the 

categorical program is subject to Deferred Revenue, or Subject to Restricted Ending Fund Balance. Refer to the 

definitions below for Categorical Programs Subject to Deferred Revenues and Categorical Programs Subject to 

Restricted Ending Fund Balance. 

Information on the federal catalog number or whether a particular program is accounted for as Subject to 

Deferred Revenues or Subject to Restricted Ending Fund Balances for is available on the SACS Query Web site: 

http://www.cde.ca.gov/fg/ac/ac/ . 

CATEGORICAL PROGRAMS SUBJECT TO DEFERRED REVENUES 

Categorical Programs are classified as Subject to Deferred Revenues if their revenue is earned at the time 

qualifying expenditures are made. In general, an expenditure is the prime factor for determining grant eligibility 

and revenue is recognized when the qualifying expenditure is made. For this reason, these categorical program 

revenues are considered earned when the expenditure is recorded (expended). 

The following rules apply to accounting for these programs: 

1. The revenue is recognized when cash is received. 

2. At the end of the year, if the total revenues received exceed the total donor-authorized expenditures, the 

difference is recorded as deferred revenue. Deferred revenue is revenue that has been received but has not 

been earned (expended). The total expenditures used in this calculation may not exceed the total program 

award. 

3. At the end of the year, if the total revenues are less than the total donor-authorized expenditures, the 

difference is recorded as an accounts receivable. The total expenditures used in the calculation may not 

exceed the total program award. 


SACS Reporting Rules 

CATEGORICAL PROGRAMS SUBJECT TO DEFERRED REVENUES -continued 

4. Unused program award revenue (carryover) is the difference between the total program award and the total 

donor-authorized expenditures for the year. The amount of any unused program award revenue (carryover) is 

not recorded in the current year’s financial records but is added to the amount of the program award for the 

subsequent year to determine the total revenue available. The unused program award revenue should not be 

recorded as an accounts receivable because it is not earned. 

CATEGORICAL PROGRAMS SUBJECT TO RESTRICTED ENDING FUND BALANCES 

Categorical Programs are classified as Subject to Restricted Ending Fund Balances if their revenue is earned at 

the time the funds are apportioned to the LEA. 

These categorical programs are generally entitlements based on an allocation formula. These programs are 

restricted, but more in form than in substance. Only a failure on the part of the LEA to comply with regulations 

will cause a forfeiture of the funds. Any program funds not expended before the end of the year must be reported 

as Restricted Ending Fund Balance. 

The following rules apply to accounting for these programs: 

1. The revenue is recognized when cash is received. 

2. The amount of any revenue that has not been received by June 30th, but is expected to be received by 

September 30th, should be accrued as an accounts receivable. 

3. At the end of the year, any program funds that have not been expended are recorded as a restricted ending 

balance for that program. This is done because restrictions remain on the type of expenditures that can be 

made from the revenues; therefore, the fund balance for this program must be separated from the fund 

balance available for general use. 


FORM CAT: Deferred Revenue Programs 

FEDERAL PROGRAM NAME 

FEDERAL CATALOG NUMBER 

RESOURCE CODE 

REVENUE OBJECT 

LOCAL DESCRIPTION 

AWARD 

1)Prior Year Carryover 

STATE PROGRAM NAME 

STATE ID NUMBER 

RESOURCE CODE 



AWARD 


2) a. Current Year Award 2) a. Current Year Award 

b. AB 825 Block Grant Trfs (8995) 

b. Transferability (NCLB) c. Section 12.40 Transfers (8998) 

c. Adj. Curr Year Award 

(sum lines 2a and 2b) 

3)Required Matching Funds/Other 

4)Total Available Award 

REVENUES 

5)Revenues Deferred from PR YR 

6)Cash Received in Current YR 

7)Contributed Matching Funds 

8)Total Available 

(sum lines 5,6,&7) 

EXPENDITURES 

9)Donor-Authorized Expenditures 

10)Non Donor-Authorized Expenditures 

11)Total Expenditures 

(line 9 plus line 10) 

12)Amounts Included in 

Line 6 above for Prior 

Year Adjustments 

13)Calculation of Deferred Revenue 

or A/P, & A/R amounts 

(line 8 minus line 9 plus line 12) 

13a)Deferred Revenue 

13b)Accounts Payable 

13c)Accounts Receivable 

14)Unused Grant Award Calculation 

(line 4 minus line 9) 

15)If Carryover is allowed, 

enter line 14 amt. Here 

16)Reconciliation of Revenue 

(line 5 plus line 6 minus line 13a 

Minus Line 13b plus line 13c 

d. Adj. Curr Year Award 

(sum lines 2a, 2b and 2c) 



REVENUES 






EXPENDITURES 




















minus Line 13b plus line 13c 


Completing the Form 



RESOURCE CODE 



AWARD 

REVENUES 


2) a. Current Year Award 

b. Transferability (NCLB) 

c. Adj. Curr Year Award 

(sum lines 2a and 2b) 







EXPENDITURES 





















Minus Line 13b plus line 13c 

1. Find Catalog number on Award or 

Entitlement Letters or SACS Query 

Page 

2. Reference application, award, 

entitlement documents and prior year 

Form CAT 

3. Review posted accrual transactions 

and deposit records. Have all planned 

flexibility transfers been made? 

4. Donor-Expenses can not exceed 

Total Award. Record excess expense 

on Non-Donor - Line 10 and complete 

cash JV to record contribution, Object 

8980, resource 0000, to this program in 

the financial ledgers. 

5. Review District application, grant 

citations, correspondence, and budget 

appropriations to insure appropriate 

expenditure transactions have been 

recorded. 

6. Does grantor owe district 

funds? 


7. Has district earned all funds 

received? 


Accounts Payable 

8. Any Carryover? 


FORM CAT: Restricted Balance Program 



RESOURCE CODE 



AWARD 

1) Prior Year Restricted Ending Balance 

STATE PROGRAM NAME 


RESOURCE CODE 



AWARD 

1)Prior Year Restricted Balance C/O 

2) Current Year Award 2) a. Current Year Award 

3)Required Matching Funds/Other b. SBX3 4 Sweep Transfers (8997) 


(sum 1, 2, and 3) 

REVENUES 

5)Cash Received in Current Yr 

6) Amounts included in Line 5 for Prior 


7) a. Accounts Receivable 

(line 2 minus line 5 and 6) 

b. Non-current Accounts Receivable 

c. Current Accounts Receivable 

(line 7a minus line 7b) 



(sum lines 5,7c, and 8) 

EXPENDITURES 





13)Restricted Ending Balance 


c. SBX3 4 Flexibility Tranfs (8998) 

d. Adj. Curr Year Award 

(sum lines 2a, 2b and 2c) 



(sum 1, 2d, and 3) 

REVENUES 

5)Cash Received in Current Yr 

6) Amounts included in Line 5 for Prior 


7) a. Accounts Receivable 

(line 2 minus line 5 and 6) 

b. Non-current Accounts Receivable 

c. Current Accounts Receivable 

(line 7a minus line 7b) 



(sum lines 5,7c, and 8) 

EXPENDITURES 





13)Restricted Ending Balance 



SACS Software 

FORM CAT is in the supplemental report section. The report works much like an excel workbook. Formula 

Cells are protected. Additional columns to enter more than one program – are added by a click on NEW 

COLUMN button at the bottom of the screen. Once added, columns can now be deleted or rearranged in a 

different order. To access the different types of reports – click on the appropriate tab in the workbook for the 

program... 


Suggested Timeline 

Oct 31 Dec 31 Feb 28 April 30 June 30 August 31 

Post Carryovers 

Complete Budget 

Revisions 

Oct 1 Post Carryovers and Deferred Revenues to Resource. Review outstanding Payables or Receivables. 

Complete Z’s for county deposits booked as accruals. 

Oct 30 

Jan 29 

Ensure Budget Revisions have been made for Prior Year carryovers and revisions for current year 

grant and entitlement awards. 

Book audit adjustments and review grant award letters for budget revisions needed 

March 1 Send Program Reports to Managers to Validate Expenses and Balances 

April 1 

April 15 

Provide Timelines to Principals and Mangers of Closing Procedures 

Validate that grant files are complete 

May 3 Limit purchases to those that will be received by end of June 

June 30 Validate outstanding encumbrances for items received for Purchase Order roll to Current Liabilities 

July 10 

Post Audit 

Adjustments 

Monitor Grant Position 

with Program Manager 

Ensure all inter-program charges have been posted 

July 24 Begin closing entries - Book indirect costs, receivables, deferred revenue, and contributions. 

August 2 Journal AR/CL reclassification entries. 

Validate Grant Files are 

complete 

Begin Closing entries 

August 10 Review FAR 311 and GLD 410 for completeness and resource compliance 

September 15 FORM CAT due with UNAUDITED ACTUALS to Business Advisory Services 

CATEGORICAL CYCLE 

J:\Workshps\Year End 2010\UA Manual 111 July 2010 

Financial 

System 

Closed 

Complete Accruals 

And Reclassification Entries

Categorical Cycle 

Grant Application 

Review prior to submission to agency 

Grant Award 

Establish Budget 

Accounting 

Record Transactions 

Filing/Reporting System 

Follow GAAP, CSAM and EDGAR 

Guidelines 

Monitor 

Validate Revenues and Expenditures 

Award Revisions 

Budget Revisions 

Year-End Closing 

Indirect Cost – Carryover Treatment 

Financial Reporting 

Reconcile Ledger – Complete CAT Form 

Budget Revisions FY2 

For Carryovers 


Categorical Accounting Review 

1. Run reports to be used in the review process. These might include the GLD410 by resource, a detailed 

general ledger (GLD110) by resource, and a FAR311 for all funds that incur categorical program financial 

activity. 

2. Review funding documents to ensure compliance with terms and conditions of the grants. Review reporting 

requirements and duration of the funding period. Also, note any carryover restrictions. Determine whether 

the program in question is subject to deferred revenue or restricted balance and if Indirect Costs may be 

charged. 

3. Compare funding documents to revenue account to determine whether the entire award has been received 

and when any balances due are expected to be received. 

___________ 

Revenue Checklist 

1. Funding Award Letter agrees with apportionment notifications 

___________ 2. Prior year restricted balances are posted to the beginning balance and are 

reflected in amount available 

___________ 3. Prior year unearned carry over has been received 

___________ 4. Prior year deferred revenue has been “Z”d and is reflected in amount available 

___________ 5. Flexibility has been taken when applicable 

___________ 6. Earned receivables have been booked (ER) 

___________ 

7. Required matches/restricted transfers have been made 

___________ 8. Interest earnings have been posted when required 

___________ 

___________ 

9. Local contributions have been made for non-donor expenditures 

10. Deferred revenue has been booked as an accrual (EP) for excess grant funds 

received but not expended 


Categorical Review- Continued 

4. Review expenditures to ensure compliance with terms of the categorical program. 

5. Validate that all expenditures have been posted 

___________ 

___________ 

___________ 

___________ 

___________ 

___________ 

___________ 

___________ 

___________ 

___________ 

___________ 

___________ 

___________ 

___________ 

Expenditure Checklist 

1. System batch reports have been reviewed and any open items have been processed 

or voided 

2. Payroll encumbrances have been closed 

3. Late hourly timesheets have been accrued 

4. Benefit accounts have been adjusted for cancelled payroll checks and applicable 

mapping errors (Object 3999) 

5. PERS Reduction has been charged when appropriate (Object 3802) 

6. Purchase order encumbrances have been reviewed for goods and services received 

on or before June 30th, adjusted to appropriate balances and then rolled to the open 

payables program (PCL) 

7. Contracts have been reviewed and services received but not paid have been accrued 

as a current liability 

8. Utility expenses have been reviewed and estimated charges for June services have 

been accrued as a current liability 

9. Sales Tax report has been reconciled with Sales Tax suspense account 9580 and 

values adjusted for current taxes due and liability accrued 

10. Inter-fund charges have been accrued for salary, benefits, PERS reduction, printed 

materials from reprographics, stores requisitions, district work orders, direct 

support, and indirect charges for services paid from the General Fund 

11. Expenditures charged to an incorrect program should be journaled (credited) from 

the original transaction goal/function/object and debiting the appropriate categorical 

program resource using the same goal/function /object 

12. Inter-program charges have been charged to grants for field trips, duplication, 

stores, and work orders (57XX) 

13. New Capital Leases have been set up per the Procedure 710 CSAM. Enter the 

value of the capital item in the 6XXX account and the value of the lease in object 

8972. The current year interest debt amount should be recorded in object 7438 and 

the principal debt amount in 7439 

14. Review Sub-agreements for input to ICR form 

15. The indirect cost rate charged to categorical programs cannot exceed the fixed 

carried over rate certified by CDE or specified by the granting authority. Use 

object 7310/ 7350 and function 7210 to journal the charge 


Grants – Funding Subject to Deferred Revenue 

1. Check the deferred revenue account (9650) to determine if revenue was deferred from the prior year. If there 

is a balance in the deferred revenue account, it must be “Z’d”. This will cause the revenue to “fallout” into 

the current year revenue account. The balance of the deferred revenue and the current year award are 

combined to determine the amount available for expenditure in the current year. If the full amount of the 

award has not been received, a receivable should be set up for the balance to the extent it does not generate 

deferred revenue. 

2. If expenditures exceed the amount available, the excess must be transferred to another resource by cash 

journal entry or a contribution must be made to cover the shortfall. 

3. If expenditures are less than the amount available, review general ledger postings and confer with program 

personnel to determine if there is activity charged elsewhere that might be more appropriately charged to the 

categorical program in question. Transfer any appropriate costs by cash journal voucher. If the grant shows 

indirect costs may be charged, calculate the indirect costs and record by journal entry. 

4. After all valid expenditures are recorded, compare the amount available to the total expenditures. If revenue 

equals expense, no further action is required. If revenue is greater than the expense, the revenue in excess of 

expenditures should be deferred to the subsequent year. This is accomplished through the accrual set up 

program. The accrual will credit the liability (9529) and debit (decrease) the revenue account, which will 

result in the revenue total equaling that of the grant expenditures. A journal entry to reclass the amount 

posted by debiting object 9529 and crediting the deferred revenue object 9659 must be processed to 

appropriately display the district’s liabilities on the SACS financial statement. 

5. If the grant has not been fully received and the expenditures do not exceed the amount available, the amount 

to be deferred is the difference between the actual amount received plus last years’ deferred revenue (if 

applicable) and the total expenditures. The portion of the current year award that has not been received by 

year-end will be included the subsequent year income and the subsequent years budgeted revenue will need 

to be revised. 

6. A receivable and deferred revenue may not be set up in the same resource. 


Entitlements – Funding Subject to Restricted Balance 

1. Review the general ledger reports to determine if there are carryover balances from the prior year. Carryover 

balances can be found, resource-by-resource, in the 9791, 9792, 9793, and possibly 9795 accounts in the 

general ledger. The cumulative total of these accounts is the beginning balance for that resource. 

2. Review the revenue account to determine whether the full amount of the entitlement has been received. If 

there is an amount still due, a receivable should be set up for the balance. The total of the carryover balances 

and the current year award is considered the amount available. 

3. If expenditures exceed the amount available, the excess must be transferred to another resource by cash 

journal entry or a contribution prepared to cover the shortfall. 

4. If expenditures are less than the amount available, review general ledger postings and confer with program 

personnel to determine if there is activity charged elsewhere that might be more appropriately charged to the 

categorical program. Move any appropriate costs by cash journal voucher. If the entitlement shows indirect 

costs may be charged, calculate the indirect costs and record by a cash journal voucher entry. 

5. After all valid expenditures are recorded, compare the amount available to the total expenditures. If revenue 

equals expense, no further action is required. If revenue is greater than the expense, the difference will 

become a restricted ending balance for the program. The financial system will automatically generate the 

ending fund balance account and adjust beginning balances upon validation of the unaudited actual reports. 

Compare any ending balance in the resource to the award document to ensure it does not exceed carryover 

restrictions. A budget transfer should be processed to classify the restricted fund balance (object 9790) as 

legally restricted (object 9740). 


Accrual Process Entries 

Accrual Set-up: 

Annually School Districts close the year by entering the financial system set-up programs (Accounts Receivable 

and Current Liabilities). Programs are launched that liquidate outstanding Purchase Order balances and create 

current liability references. Districts manually enter payables by vendor and account line. Receivables are set 

up using descriptive references. Each line on the Accrual reference ties to an accrual set-up and offset object. 

Accounts Receivable Current Liabilities 

System Entries 


Object 

FY1 

Set-Up 

9229 

Object 

FY2 

Offset 

9210 

System Entries 

Current Liabilities 

Object 

FY1 

Set-Up 


Object 

FY2 

Offset 

9529 9510 

Reclassification Entries Reclassification Entries 

Due from Grantor Governments 9299 9290 Due to Grantor Governments 9599 9590 

Due from Other Funds 

9319 9310 Due to Other Funds 9619 9610 

Due to Other Agencies 

Temporary Loan 


9629 9620 

9649 9640 

9659 9650 

System accrual set-up screens require the 26 digit account in which to post the entry to the subsidiary ledgers in 

the set-up year (FY1). This account is also used to post to the subsidiary ledgers in the next fiscal year (FY2) for 

any fallout (expense or revenue not paid for received). 

Grant Carryovers arise from a surplus of grant receipts after expenses have been posted. These funds are either 

deferred (set-up in the accrual program) or reserved as a restricted ending fund balance and then brought forward 

into the subsequent fiscal year as an increase to the resource’s beginning fund balance.

Reporting Samples and Accounting Examples 

The District needs to set-up the unearned NCLB: Title II Part A Teacher Quality - Resource 4035 surplus 

revenues (Cash revenue receipts less expenditures) which are deferred in the actual year ( FY1) for 

carryover to the next fiscal year (FY2). 

Example: Current Liability used to Set-Up Deferred Revenue 

Funds Deferred from Prior Year $ 378 

Grant Award 5,604 

Amount Available $ 5,982 

Donor Expenditures 72 

Unspent Amount of Grant $ 5,910 

01-4035-0-0000-0000-8290-000-0000 $ 5,910.00 

Account 26 digit code 

9529 CL FY1 Set-up 9510 CL FY2 Beginning Value 

Ledger Entry FY1 Ledger Entry FY2…… 

Debit Revenue 8290 Debit Liability 9510 

Credit Liability 9529 Credit Revenue 8290 

(Result from “Z”d payable) 

Journal (Reclassification Entry) Journal (Reclassification Entry) 

Reclassification Entry: Reclassification Entry: 

Debit Liability 9529 Credit Liability 9510 

Credit Deferral 9659 Debit Deferral 9650 

If a district finds that a correction must be made to the accrual after the accrual process has closed the district can 

make corrections via the journal program. 

Example: The final 20% of the Title II Teacher Quality Grant was deposited on June 29th to an incorrect 

resource. District completed a Cash Journal to move funds to the correct resource 4035, requiring the 

recalculation of the amount of the Deferral. 

Funds Deferred from Prior Year $ 378 

Grant Award ($7,472 Received 7,472 

Amount Available $ 7,850 

Donor Expenditures 72 

Unspent Amount of Grant $ 7,778 

Previous Amount Deferred 5,910 

Increase Amount to Deferred $ 1,868 

Journal FY1 Journal FY2 

Debit Revenue 8290 Credit Revenue 8290 

Credit Deferral 9659 Debit Deferral 9650 


Basic Entries For Posting Carryovers 

to the Operating Accounts 

Detail Account Entries: Example Deferred Revenue 

Grant funds paid in FY1 not expended (not earned). Funds are deferred to the next fiscal year FY2 for use. 

FY1 – SET-Up of Current Liability: Example of Account Entries Made: 

Debit (decrease) to the revenue object thereby reducing revenue recorded in the operating statements to that 

amount which was earned. 

Teacher Quality Funds Deferred: 

Current Liability 01 4035 0 0000 0000 8290 000 0000 Debit 

System Generates 01 4035 0 0000 0000 9529 000 0000 Credit 

01 4035 0 0000 0000 9840 000 0000 Debit 

Reclassify liability to Deferred Revenue: 

Journal Entry 01 4035 0 0000 0000 9529 000 0000 Debit 

01 4035 0 0000 0000 9659 000 0000 Credit 

Closing Entries 

Revenues equal 01 4035 0 0000 0000 9810 000 0000 Debit 

Expenditures 01 4035 0 0000 0000 9820 000 0000 Credit 

01 4035 0 0000 0000 9840 000 0000 Debit 

01 4035 0 0000 0000 9850 000 0000 Credit 

01 4035 0 0000 0000 9790 000 0000 Debit 

01 4035 0 0000 0000 9798 000 0000 Credit 

FY2 - Carryover: 

Asset Liability Roll 01 4035 0 0000 0000 9110 000 0000 Debit 

01 4035 0 0000 0000 9650 000 0000 Credit 

Current Liability Z’d 

(System Generates) 01 4035 0 0000 0000 8290 000 0000 Credit 

01 4035 0 0000 0000 9510 000 0000 Debit 

01 4035 0 0000 0000 9840 000 0000 Credit 

Reclassification 01 4035 0 0000 0000 9510 000 0000 Credit 

Journal 01 4035 0 0000 0000 9650 000 0000 Debit 

Budget Revision 01 4035 0 0000 0000 8290 000 0000 Increase 

Carryover 01 4035 0 1110 2100 5850 000 0000 Increase 

System Generates 01 4035 0 0000 0000 9810 000 0000 Increase 

Control Accts 01 4035 0 0000 0000 9820 000 0000 Increase 

Expend Carryover 

Pay Consultant 01 4035 0 1110 2100 5850 000 0000 Debit 


01 4035 0 0000 0000 9850 000 0000 Debit 


Curriculum & Instruction Testing & Accountability Professional Development 

Finance & Grants Data & Statistics Learning Support Specialized Programs 

Home » Finance & Grants » Accounting » Standardized Account Code Structure (SACS) » PCA/Resource Query » Query Results 

Notes: 

SACS Resource Code: 4035 

SACS Query - PCA:Resource Detail 

SACS Title: NCLB: Title II, Part A, Teacher Quality 

Friendly Title: NCLB: Title II, Part A, Improving Teacher Quality Local Grants 

SACS Revenue Object Code: 8290 

PCA Number: 14341 

PCA Title: IMPROVING TEACHER QUALITY-LOCAL GRANT/FF 

CFDA Number: 84.367 

Deferred Revenue/Ending Fund Balance: D 

Allowable Indirect Cost Rate LEA Approved Rate 

Program Unit: CURRICULUM LEADERSHIP 

Program Contact: LYNDA NICHOLS 916-323-5822 

Fiscal Unit: CURRICULUM LEADERSHIP 

Fiscal Contact: KIMBERLY EATON 916-324-5689 

Comment on PCA: Federal funding that, as of 2002-03, replaces Resource 4010, Eisenhower 

Professional Development and Resource 4135, Federal Class Size Reduction. This 

program is part of the Consolidated Application. 

Enabling Legislation: 

Education Code: 

Budget Act: 6110-195-0890(1) 

For use in Districts: Yes 

For use in COEs: Yes 

For use in JPAs: No 

First Effective Year: 2001 

Last Effective Year: 

Date Created: 5/6/2002 

Last Modification: 10/29/2007 1:49:03 PM 

D = Deferred Revenue F = Ending Fund Balance 

NA = Not Applicable 

V = Various 


CAT Form 

July 1 Budget 2008/09 FINANCIAL REPORT 

September 8 Budget FEDERAL AND STATE GRANT AWARDS, REVENUES, AND EXPENDITURES 

X Unaudited Actuals (9/15) FOR ALL FUNDS 

SCHEDULE FOR CATEGORICALS SUBJECT TO DEFERRED REVENUES 

(GRANTS) 

School District 

FEDERAL PROGRAM NAME Local Asst Staff Devl Title I Drug Free Title II A 

FEDERAL CATALOG NUMBER 84.027 84.027A 84.010 84.186 84.367 

REVENUE ACCOUNT 8181 8182 8290 8290 8290 

LOCAL DESCRIPTION 3310 3340 3010 3710 4035 

AWARD 

1)Prior Year Carryover 2,448 378 

2) a. Current Year Award 32,216 115 207,159 4,967 7,472 

b. Transferability NCLB 

c. Adj. Current Award 32,216 115 207,159 4,967 7,472 

3)Required Matching 

Funds / Other 0 0 0 0 0 

4)Total Available Award 32,216 115 207,159 7,415 7,850 

REVENUES 

5)Revenues Deferred from PR YR 2,448 378 

6)Cash Received in Current YR 24,162 0 207,159 4,967 7,472 


8)Total Available 24,162 0 207,159 7,415 7,850 

EXPENDITURES 

9)Donor-Authorized 

Expenditures 32,216 115 207,159 2,858 

10)Non Donor-Authorized 

Expenditures 2,199.00 

11)Total Expenditures 32,216 115 209,358 2,858 72 

12)Amounts Included in Line 6 above 

for Prior Year Adjustments 0 

13)Calculation of Deferred 

Revenue or A/P, & A/R amts (8,054) (115) 0 4,557 7,778 

a) Deferred Revenue 4,557 7,778 

b) Accounts Payable 

c) Accounts Receivable 8,054 115 

14)Unused Grant Award Calculation 0 0 0 4457 7,778 


enter line 14 amt. Here 4,557 7,778 

16)Reconciliation of Revenue 32,216 115 207,159 2,858 72 


72 

Funds 

unspent are 

deferred to 

the next year 

when 

grantor 

authority 

allows for 

carryover.

Reading the GLD 410 FY1 

The Financial System would look 

like the following GLD example after the 

year end Deferrals had been entered: 

GLD410 SAN BERNARDINO COUNTY SCHOOLS COMPUTER CONSORTIUM #J1484 11/16/10 

WORKSHOP FY1 FINANCIAL STATEMENT FOR PERIOD ENDING FY1 PAGE 1 

FUND: 01 GENERAL FUND RESTRICTED RES-YR: -NCLB-TITLE II Teacher Improvement 

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 

OBJECT ADOPTED BUDGET CURRENT INCOME/ BUDGET BUDGET 

NUMBER DESCRIPTION BUDGET ADJUSTMENTS BUDGET EXPENSE BALANCE % USED 

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 

REVENUE DETAIL 

FEDERAL REVENUES : 

8290 ALL OTHER FEDERAL REVENUES 7,472.00 378.00 7,850.00 72.00 7,778.00 00.02 

------------------------------- -------------------------------------------------------------------------------------------- 

TOTAL FEDERAL REVENUES : 7,472.00 378.00 7,850.00 72.00 7,778.00 00.02 

---------------------------------------------------------------------------------------------------------------------------- 

*A* TOTAL YEAR TO DATE REVENUES * * 7,472.00 * 378.00 * 7,850.00 * 72.00, * 7,778.00* 00.02 

______________________________________________________________________________________________________________________ 

EXPENDITURE DETAIL 

SERVICES, OTHER OPER. EXPENSE: 

5210 TRAVEL/CONFERENCE EXPENSES 7,099.00 360.00 7,459.00 69.00 7,390.00 00.01 

-------------------------------------------------------------------------------------------------------------------------- 

TOTAL SERVICES, OTHER OPER. EXPENSE: 7,099.00 360.00 7,459.00 69.00 7,390.00 00.01 

----------------------- --------------------------------------------------------------------------------------------------- 

DIRECT SUPPORT/INDIRECT COSTS: 

7330 INDIRECT COSTS INTERPROGRAM 373.00 18 .00 391.00 3.00 388.00 00.01 

------------------------------ -------------------------------------------------------------------------------------------- 

TOTAL DIRECT SUPPORT/INDIRECT COSTS: 373.00 18.00 391.00 3.00 388.00 00.01 

------------------------------ -------------------------------------------------------------------------------------------- 

*B* TOTAL YEAR TO DATE EXPENDITURES * 7,472.00 * 360.00 * 7,850.00 * 72.00 * 7,778.00 * 00.02 

______________________________________________________________________________________________________________________ 

Carryover unused 

Grant Award 7,778 

Funds Received 7,472 

Deferred Revenue 378 

Total Funds Available 7,850 

Less Expenditures 72 

Amount Deferred 7,778 

Revenue 7,850 

Less Deferral 7,778 

Equals Ledger 

Revenue Balance 72 

Adopted Budget 

Estimated Grant Award 

$7,850 

Actual award letter 7,472 

Deferred Revenue 378 


Current Budget 7,850 

Note: If Budget is reflective of Grant Award 

prior year Deferral amount then Budget 

Balance will equal current year Deferral 

Amount. $7,778.00 



The Summary GLD page reflects the status of the grant. 

Revenue equals Expenditures. 

Deferred Revenue is included with Outstanding Liabilities in the Accounts Payable section. 



FUND: 01 GENERAL FUND RESTRICTED RES-YR: 4035-NCLB-TITLE II Teacher Improvement 

-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 

ADOPTED BUDGET CURRENT INCOME/ BUDGET 

BUDGET ADJUSTMENTS BUDGET EXPENSE BALANCE 

-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 

RESOURCE S U M M A R Y 

A. REVENUES 7,472.00 378.00 7,850.00 72.00 7,778.00 

B. EXPENDITURES 7,472.00 378.00 7,850.00 72.00 7,778.00 

-------------------------------- ------------------------------------------------------------- ------------------------------- 

C. EXCESS REVENUES ( EXPENDITURES ) .00 .00 .00 .00 .00 

D. OTHER FINANCING SOURCES ( USES ) .00 .00 .00 .00 .00 

---------------------------------------------------------------------------------------------------------------------------- 

E. NET CHANGE IN FUND BALANCE .00 .00 .00 - 00 .00 

F. FUND BALANCE : 

BEGINNING BALANCE .00 .00 .00 .00 .00 

UNAUDITED ACTUALS .00 .00 .00 .00 .00 

AUDIT ADJUSTMENTS .00 .00 .00 .00 .00 

RESTATEMENTS .00 .00 .00 .00 .00 

---------------------------------------------------------------------------------------------------------------------------- 

TOTAL BEGINNING BALANCE .00 .00 .00 .00 .00 

---------------------------------------------------------------------------------------------------------------------------- 

CALCULATED ENDING FUND BALANCE .00 .00 .00 .00 -00 

ADJUSTMENTS FOR GL ACTIVITY 

ACCOUNTS RECEIVABLES .00 

OTHER ASSETS .00 

PAYABLES 7,778.00 

SUSPENSE ACCOUNTS .00 

---------------------------------------------------------------------------------------------------------------------------- 

ADJUSTMENTS 7,778 00 

--------------------------------------------------------------------------------------------------------------------------- 

ADJUSTED ENDING FUND BALANCE .00 .00 .00 7,778-00 .00 

Deferred Revenue is 

booked as a payable. It 

IS NOT reflected as a 

restricted ending 

balance 

Funds deferred reduce 

the revenue amount 

reported 

Fund Balance is Zero 





FUND: 01 GENERAL FUND RESTRICTED RES-YR: -NCLB-TITLE II Teacher Improvement 

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 

OBJECT ADOPTED BUDGET CURRENT INCOME/ BUDGET BUDGET 


----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 

REVENUE DETAIL 

FEDERAL REVENUES : 

8290 ALL OTHER FEDERAL REVENUES 7,849.00 4,000.00 11,849.00 7,778.00 4,071.00 65.64 

------------------------------- -------------------------------------------------------------------------------------------- 

TOTAL FEDERAL REVENUES : 7,849.00 4,000.00 11,849.00 7,778.00 4,071.00 65.64 

---------------------------------------------------------------------------------------------------------------------------- 

*A* TOTAL YEAR TO DATE REVENUES * * 7,849.00 * 4,000.00 * 11,849.00 * 7,778.00 * 4,071.00 65.64 

______________________________________________________________________________________________________________________ 

Adopted Budget 


SERVICES, OTHER OPER. EXPENSE: 

Estimated Grant Award 

$7,849 

Actual award letter 7,473 

Deferred Revenue 7,778 


Current Budget 11,849 

Revision Still Needed 3,402 

5210 TRAVEL/CONFERENCE EXPENSES 7,430.00 4,000.00 11,430.00 8, 850.00 2,480.00 77.43 

-------------------------------------------------------------------------------------------------------------------------- 

TOTAL SERVICES, OTHER OPER. EXPENSE: 7,430.00 4,000.00 11,430.00 8, 850.00 2,480.00 77.43 

----------------------- --------------------------------------------------------------------------------------------------- 

DIRECT SUPPORT/INDIRECT COSTS: 

7330 INDIRECT COSTS INTERPROGRAM 419.00 .00 419.00 .00 419.00 0.00 

------------------------------ -------------------------------------------------------------------------------------------- 

TOTAL DIRECT SUPPORT/INDIRECT COSTS: 419.00 .00 419.00 .00 419.00 0.00 

------------------------------ -------------------------------------------------------------------------------------------- 

*B* TOTAL YEAR TO DATE EXPENDITURES * 7,849.00 * 4,000.00 * 11,849.00 * 8,850.00 * 2,999.00 * 74..69 

______________________________________________________________________________________________________________________ 




--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 

OBJECT ADOPTED BUDGET CURRENT YEAR TO DATE BUDGET 

NUMBER DESCRIPTION BUDGET ADJUSTMENTS BUDGET ACTUAL ACTIVITY BALANCE 

--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 

NET CHANGE IN FUND BALANCE .00 .00 .00 1,071.95- 1,071.95 

-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 

ASSETS AND LIABILITIES : 

ASSETS 

9110 CASH IN COUNTY TREASURY 7,778.00 .00 7,778.00 8, 850.00- 1,072.00 - 

TOTAL ASSETS 7,778.00 * .00 * 7,778.00 * 8, 850.00-* 1,072.00- * 

LIABILITIES 

9650 DEFERRED REVENUE 7,778.00- .00 7,778.00- 7,778.00 .00 

TOTAL LIABILITIES 7,778.00-* .00 * 7,778.00-* 7,778.00 * .00* 

------------------------------------------------------------------------------------------------------------ ---------------- 

NET ASSETS AND LIABILITIES .00 .00 .00 1,072.00- 1,072.00 

FUND BALANCE COMPONENTS 

----------------------------------------------------------------------------------------------------------------------------- 

If no other liabilities the amount of deferred 

TOTAL FUND BALANCE .00 * .00 * .00 * .00 * .00 * 

______________________________________________________________________________________________________________________ 

revenue will equal the districts beginning cash 

______________________________________________________________________________________________________________________ 

balance. 

Assets = Liabilities 

“Z”d Accrual is reflected 

as activity 


Reading the GLD 410 FY 2 




-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 



-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 

RESOURCE S U M M A R Y 

A. REVENUES 7,849.00 4,000.00 11,849.00 7,778.00 4,071.00 

B. EXPENDITURES 7,849.00 4,000.00 11,849.00 8,850.00 2,999.00 

-------------------------------- ------------------------------------------------------------- ------------------------------- 

C. EXCESS REVENUES ( EXPENDITURES ) .00 .00 .00 1,072.00 1,072.00 


---------------------------------------------------------------------------------------------------------------------------- 

E. NET CHANGE IN FUND BALANCE .00 .00 .00 1,072.00- 1,072..00- 



UNAUDITED ACTUALS .00 .00 .00 .00 .00 


RESTATEMENTS .00 .00 .00 .00 .00 

---------------------------------------------------------------------------------------------------------------------------- 

TOTAL BEGINNING BALANCE .00 .00 .00 .00 .00 

---------------------------------------------------------------------------------------------------------------------------- 

CALCULATED ENDING FUND BALANCE .00 .00 .00 1,072..00- 1,072.00- 

Deferred Revenue carryover 

is not reflected as a 

beginning balance. 


ACCOUNTS RECEIVABLES .00 


PAYABLES .00 


---------------------------------------------------------------------------------------------------------------------------- 

ADJUSTMENTS .00 

--------------------------------------------------------------------------------------------------------------------------- 

ADJUSTED ENDING FUND BALANCE .00 .00 .00 1,072.00- 1,072.00- 

The General Ledger reflects that the Deferred Revenue (funds received in the prior year but not 

earned) in the Title II, Part A Teacher Improvement Program Resource was “Z”d resulting in the 

posting of funds deferred from the prior. This action is reflected as increased revenue. This 

amount can then be budgeted for increased revenue and expenses can be increased for the 

amount of funds carried over from the prior year. 


Funds deferred from the 

prior year are recorded as 

revenue in the next year.

Restricted Reserves and 

Posting Carryovers to the Ledger 

Example: Restricted Ending Balance – Entitlement funds earned in FY1 but not expended. 

Accounts Receivable is booked and remains in the resource ending balance and rolls to the next fiscal year FY2 

for use as an asset. 

FY1 – Calculate Entitlement Due District: 

Teacher Recruitment and Retention (TRR) estimated funding amount per student $50.00 

Multiplied by the number of students in Decile 1-3 schools 150 

Equal the total English Language Acquisition (ELAP) $7,500 

District did not file R-30 Language Census Timely which delayed funds 

Establish Receivable for Award 

TRR Award 01 6275 0 0000 0000 8590 000 0000 Credit 

Accounts Receivable 01 6275 0 0000 0000 9229 000 0000 Debit 

Establish Restricted Ending Balance: (Example of Account Entries Made) 

Debit (decrease) to the un-appropriated fund balance and credit to legally restricted balance. 

TRR Restricted Balance: 

Budget Transfer 01 6275 0 0000 0000 9790 000 0000 Debit 

01 6275 0 0000 0000 9740 000 0000 Credit 

Closing Entries 01 6275 0 0000 0000 9810 000 0000 Debit 

Revenues equal 01 6275 0 0000 0000 9820 000 0000 Credit 

Expenditures 01 6275 0 0000 0000 9840 000 0000 Debit 

01 6275 0 0000 0000 9850 000 0000 Credit 

01 6275 0 0000 0000 9790 000 0000 Debit 

01 6275 0 0000 0000 9798 000 0000 Credit 

FY2 - Carryover 

Asset Liability Roll 01 6275 0 0000 0000 9110 000 0000 Debit 

01 6275 0 0000 0000 9792 000 0000 Credit 


01 6275 0 0000 0000 9798 000 0000 Debit 

Budget Revision 01 6275 0 4760 1000 4210 000 0000 Increase 

Carryover 01 6275 0 4760 1000 4210 000 0000 Increase 

01 6275 0 4760 1000 4210 000 0000 Increase 

01 6275 0 0000 0000 9790 000 0000 Decrease 

System Generates 01 6275 0 0000 0000 9799 000 0000 Increase 

Control Accts 01 6275 0 0000 0000 9820 000 0000 Increase 

Expend Carryover 01 6275 0 4760 1000 4210 000 0000 Debit 

Pay Vendor for 01 6275 0 4760 1000 4310 000 0000 Debit 

EL Books and Material 01 6275 0 4760 1000 4340 000 0000 Debit 


01 6275 0 0000 0000 9850 000 0000 Debit 


CAT Form 

July 1 Budget FINANCIAL REPORT 

September 8 Budget FEDERAL AND STATE GRANT AWARDS, REVENUES, AND EXPENDITURES 

X Unaudited Actuals (9/15) FOR ALL FUNDS 

SCHEDULE FOR CATEGORICALS SUBJECT TO RESTRICTED ENDING BALANCES 

(ENTITLEMENTS) 

School District 

STATE PROGRAM NAME Blk Grant 


Teacher 

Recruitment & 

Retention 

Teacher 

Recruitment & 

Retention LOTTERY 

REVENUE ACCOUNT 8590 8590 8590 8560 

LOCAL DESCRIPTION 6017 6275 6275 6300 

AWARD 

1)Prior Year Restricted 

Ending Balance 16,825 3,329 18,082 10,392 

2a)Current Year Award 0 1,648 1,100 6,416 

2b)Mega Item Adjustment 

2c) Mega Item Transf. to CSR 

2d)Adj Curr Yr Award 0 1,648 1,100 6,416 

3)Required Matching 

Funds/Other 

4)Total Available Award 16,825 4,977 19,082 16,808 

REVENUES 0 

5)Cash Received in Current YR 0 1,648 0 0 

6)Amounts Included in Line 5 

for Prior Year Adjustments 

7a)Accounts Receivable 0 0 1,100 6,416 

7b)Non-Current Accounts Receivable 

7c)Current Accounts Receivable 0 0 1,100 6,416 


9)Total Available 0 1,648 1,100 6,416 

EXPENDITURES 

10)Donor-Authorized 

Expenditures 16,825 2,736 15,254 1,228 

11)Non Donor-Authorized 

Expenditures 

12)Total Expenditures 16,825 2,736 15,254 1,228 

RESTRICTED ENDING BALANCE 

13)Current Year 0 2,241 3,928 15,580 


Funds 

unspent are 

left in the 

restricted 

fund balance 

when grantor 

authority 

allows for 

carryover.


_________________________________________________________________________________________ 

GLD410 SAN BERNARDINO COUNTY SCHOOLS COMPUTER CONSORTIUM #J1484 


FUND: 01 GENERAL FUND RESTRICTED RES-YR: 6275 Teacher Recruitment and Retention 

--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 


BUDGET ADJUSTMENTS BUDGET EXPENSE BALANCE as revenue. 

--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 

R E SOURCE S U M M A R Y 

A. REVENUES 1.065.00 35.00 1,100.00 1,100 00 .00 

B. EXPENDITURES 1,065.00 18,117.00 19,182.00 15,254 .00 3,928.00 

---------------------------------------------------------------------------------------------------------------------- 

C. EXCESS REVENUES ( EXPENDITURES ) .00 18,082.00- 18,082.00- 14,154.00- 3,928.00- 


-------------------------- -------------------------------------------------------------------------------------------- 

E. NET CHANGE IN FUND BALANCE .00 18,0828.00- 18,082.00- 14,154.00- 3,928.00- 

----------------------------------------------------------------------------------------------------------------------- 

Receivable is entered 



UNAUDITED ACTUALS 18,082.00 .00 18,082.00 18,082.00 18,082.00 


RESTATEMENTS .00 . 00 .00 .00 .00 

----------------------------------------------------------------------------------------------------------------------- 

TOTAL BEGINNING BALANCE 18,082.00 .00 18,082.00 18,042.00 18,082.00 

------------------------------------------------------------------------------------------------------------------------ 

CALCULATED ENDING FUND BALANCE 18,082.00 .00 .00 3,928.00 3.928.00 


ACCOUNTS 1,100.00- 


PAYABLES .00 


--------------------------------------------------------------------------------------------------------------------------- 

ADJUSTMENTS 1,100.00- 

--------------------------------------------------------------------------------------------------------------------------- 

ADJUSTED ENDING FUND BALANCE 18,082.00 18,082.00- .00 2,863.00 3,928.00 

LESS RESERVED FUND BALANCE .00 .00 .00 .00 .00 

--------------------------------------------------------------------------------------------------------------------------- 

UNAPP/DESIGNATED FUND BALANCE 18,082.00 18,982.00- .00 2,863.00 3,928.00 

_____________________________________________________________________________________________________________________ 

_____________________________________________________________________________________________________________________ 

% UNAPP/DESIGNATED 100.00 % 000.00% 0.00 % 




WORKSHOP FINANCIAL STATEMENT FOR PERIOD ENDING FY 2 PAGE 1 


---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 

OBJECT Adopted Budget 

ADOPTED BUDGET CURRENT INCOME/ BUDGET BUDGET 


---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 

Grant Award 

REVENUE $0 NO DETAIL NEW FUNDS 

OTHER STATE REVENUES : 

CARRY OVER ONLY 

8590 ALL OTHER STATE REVENUES 0.00 .00 0.00 .00 0.00 0.00 

--------------------------------------------------------------------------------------------------------------------------------- 

TOTAL OTHER STATE REVENUES : 0.00 .00 0.00 .00 0.00 0.00 

--------------------------------------------------------------------------------------------------------------------------------- 

*A* TOTAL YEAR TO DATE REVENUES * * 0.00 * .00 * 0.00 * .00 * 0.00 * 0.00 

______________________________________________________________________________________________________________________ 

______________________________________________________________________________________________________________________ 


BOOKS AND SUPPLIES : 

4210 OTHER BOOKS 0.00 2,450.00 2,450.00 433.10 2,016.90 17.68 

4310 INSTR MATERIALS & SUPPLIES 0..00 478.00 478.00 69.75 408.25 14.59 

4340 COMP SOFTWARE & RELATE EXP 0.00 1,000.00 1,000.00 160.00 840.00 16.00 

----------------------------------- -------------------------------------------------------------------------------------------- 

TOTAL BOOKS AND SUPPLIES : 0.00 3,928.00 3,928.00 662.85 3,265.15 1 6.88 

------------------------------------ -------------------------------------------------------------------------------------------- 

*B* TOTAL YEAR TO DATE EXPENDITURES * * 0.00 * 3.928.00 * 3,928.00 * 662.85 * 3,265.15 * 16.88 

_______________________________________________________________________________________________________________________ 




----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- OBJECT 

ADOPTED BUDGET CURRENT YEAR TO DATE BUDGET 

NUMBER DESCRIPTION BUDGET ADJUSTMENTS BUDGET ACTUAL ACTIVITY BALANCE 

------------------------------------------------------------------------------------------------------------------------------------ 

NET CHANGE IN FUND BALANCE .00 3,928.00 3,928.00 - 662.85- 3,265.15- 

------------------------------------------------------------------------------------------------------------------------------------ 

ASSETS AND LIABILITIES : 

ASSETS 

9110 CASH IN COUNTY TREASURY 2,874.40 .00 2,874.40 674.25- 2,200.15 

9290 DUE FROM GRANTOR GOV 1,065.00 1,065.00 .00 1,065.00 

------------------------------------------------------------------------------------------------------------------------------------ 

TOTAL ASSETS 3,939.40* .00 * 3,939.40 * 674.25-* 3,265.15 * 

LIABILITIES 

9510 CURRENT LIABILITIES 11.40- 00 11.40- 11.40 .00 

--------------------------------------- -------------------------------------------------------------------------------------------- 

TOTAL LIABILITIES 11.40-* 00 * 11.40-* 11.40 * .00 * 

-------------------------------------- -------------------------------------------------------------------------------------------- 

NET ASSETS AND LIABILITIES 3,928.00 .00 3,928.00 662.85- 3,265.15 

FUND BALANCE COMPONENTS 

9790 UNDESIGNATED/UNAPPROPRIATED 3,928.00- 3,928.00 .00- .00 .00- 

--------------------------------------- -------------------------------------------------------------------------------------------- 

TOTAL FUND BALANCE 3,928.00-* 3,928.00 * .00-* .00 * .00-* 

Fund Balance is equal to Cash plus receivables 

less liabilities 

Assets - Liabilities = Fund Balance 


Actual award letter 0 

RB Carryover 3,928 


Current Budget 3,928


_________________________________________________________________________________ 




--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 



--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 

R E SOURCE S U M M A R Y 

A. REVENUES .00 .00 .00 .00 .00 

B. EXPENDITURES .00 3,928 .00 3,928.00 662.85 3,265.15 

---------------------------------------------------------------------------------------------------------------------- 

C. EXCESS REVENUES ( EXPENDITURES ) .00 3,928.00- 3,928.00- 662.85- 3,265.15- 


-------------------------- -------------------------------------------------------------------------------------------- 

E. NET CHANGE IN FUND BALANCE .00 3,928.00- 3,928.00- 662.85- 3,265.15- 

----------------------------------------------------------------------------------------------------------------------- 



UNAUDITED ACTUALS 3,928.00 .00 3,928.00 3,928.00 3,928.00 


RESTATEMENTS .00 . 00 .00 .00 .00 

----------------------------------------------------------------------------------------------------------------------- 

TOTAL BEGINNING BALANCE 3,928.00 .00 3,928.00 3,928.00 3,928.00 

------------------------------------------------------------------------------------------------------------------------ 

CALCULATED ENDING FUND BALANCE 3,928.00 .00 3,928.00 3,928.00 .00 

Carryover is reflected as 

an unaudited actual’s 

adjustment to the 

Funds from the Ending 

Balance should be 

budgeted as expenditures to 

fulfill grant requirements. 


beginning ACCOUNTS balance 

1,100.00- 


PAYABLES .00 


----------------------------------------------------------------------------------------------------------------------- 

ADJUSTMENTS 1,100.00- 

--------------------------------------------------------------------------------------------------------------------- 

ADJUSTED ENDING FUND BALANCE 3,928.00 3,928.00- .00 2,265.15 .00 

LESS RESERVED FUND BALANCE .00 .00 .00 .00 .00 

---------------------------------------------------------------------------------------------------------------------- 

UNAPP/DESIGNATED FUND BALANCE 3,928.00 3,928.00- .00 2,265.15 .00 

_____________________________________________________________________________________________________________________ 

_____________________________________________________________________________________________________________________ 

% UNAPP/DESIGNATED 100.00 % 000.00% 0.00 % 


Beginning Balance FY2 


WORKSHOP FY2 GENERAL LEDGER SUMMARY REPORT 11/16/2010 


================================================================================================================ 


================================================================================================================ 

9791 BEGINNING BALANCE-ADOPTED BDGT 

RS-YR: 0000-0 NO REPORTING REQUIRMENTS 209,777.62- 0.00 0.00 209,777.62- 

RS-YR: 7156-0 INSTR MATERIAL REALIGNMENT 66,151.10- 0.00 0.00 66,151.10- 


9792 ADJUST FOR UNAUDITED ACTUALS 


RS-YR: 0200-0 SCHOOL SITE PERFORMANCE AWDS 29,123.19- 0.00 0.00 29,123.19- 

RS-YR: 0210-0 GOVERNORS PERFORMANCE AWARD 14,625.33- 0.00 0.00 14,625.33- 

RS-YR: 0300-0 SITE BLOCK GRANT 20,000.00- 0.00 0.00 20,000.00- 

RS-YR: 0500-0 COMMUNITY SWIMMING POOL 2,606.57- 0.00 0.00 2,606.57- 

RS-YR: 6292-0 CLASS LIBRARY MATER GRADE K-4 2,241.42- 0.00 0.00 2,241.42- 

RS-YR 6275-0 TEACHER RECRUTIMENT & RENTENTION 3,928.00- 0.00 0.00 3,928.00- 

RS-YR: 6300-0 LOTTERY:INSTRUCTIONAL MATL 15,579.54- 0.00 0.00 15,579.54- 

RS-YR: 6365-0 ROC/P EQUIPMENT 11.86- 0.00 0.00 11.86- 

RS-YR: 6405-0 SCHOOL VIOLENCE-SCHOOL SAFETY 15,221.69- 0.00 0.00 15,221.69- 

RS-YR: 7101-0 EDUCA TECH DIGT HI STAFF DEV 5,355.00- 0.00 0.00 5,355.00- 

RS-YR: 7156-0 INSTR MATERIAL REALIGNMENT 14,593.01- 0.00 0.00 14,593.01- 

RS-YR: 7158-0 INSTR MATERIALS – WILLIAMS CASE 9,848.00- 0.00 0.00 9,848.00- 

RS-YR: 7271-0 CA PEER ASST & REVIEW PROG TEA 27,977.26- 0.00 0.00 27,977.26- 

RS-YR: 7315-0 STAFF DEV-SCHOOL DEV PLANS 7,378.42- 0.00 0.00 7,378.42- 

RS-YR: 7375-0 TENTH GRADE COUNSELING 1,591.97- 0.00 0.00 1,591.97- 


Asset and Liability Roll from the 

Unaudited Actuals adjusts the 

estimated adopted beginning 

balance to reflect the actual ending 

balance from the prior year. 

$66,151,10 

14,593.01 

$80,744.11

Ending Balance 


WORKSHOP GENERAL LEDGER SUMMARY REPORT 11/16/2010 


========================================================================================6286======================== 


================================================================================================================ 

9790 UNDESIGNATED/UNAPPROPRIATED 


RS-YR: 0100-0 DIRECT SERVICE 20,608.00- 0.00 0.00 20,608.00- 

RS-YR: 0200-0 SCHOOL SITE PERFORMANCE AWDS 29,123.19- 0.00 0.00 29,123.19- 

RS-YR: 0210-0 GOVERNORS PERFORMANCE AWARD 14,625.33- 0.00 0.00 14,625.33- 

RS-YR: 0300-0 SITE BLOCK GRANT 20,000.00- 0.00 0.00 20,000.00- 

RS-YR: 0500-0 COMMUNITY SWIMMING POOL 2,606.57- 0.00 0.00 2,606.57 

RS-YR 6275-0 TEACHER RECRUTIMENT & RENTENTION 3,928.00- 0.00 0.00 3,928.00 

RS-YR: 6292-0 CLASS LIBRARY MATER GRADE K-4 2,241.42- 0.00 0.00 2,241.42- 

RS-YR: 6296-0 SCHOOL LIBRARY ACT 19,818.57- 0.00 0.00 19,818.57- 

RS-YR: 6300-0 LOTTERY:INSTRUCTIONAL MATL 15,579.54- 0.00 0.00 15,579.54- 

RS-YR: 6365-0 ROC/P EQUIPMENT 11.86- 0.00 0.00 11.86- 

RS-YR: 6405-0 SCHOOL VIOLENCE-SCHOOL SAFETY 15,221.69- 0.00 0.00 15,221.69- 

RS-YR: 6500-0 SPECIAL EDUCATION 0.20 0.00 0.00 0.20 

RS-YR: 7101-0 EDUCA TECH DIGT HI STAFF DEV 5,355.00- 0.00 0.00 5,355.00- 

RS-YR: 7155-0 INSTR MATERIAL-DIR ORDER K-8 12,026.87- 0.00 0.00 12,026.87- 

RS-YR: 7160-0 INSTR MATERIAL-GRADES 9-12 15,493.60- 0.00 0.00 15,493.60- 

RS-YR: 7180-0 STANDARDS-BASED INST MATERIALS 49,400.60- 0.00 0.00 49,400.60- 

RS-YR: 7185-0 SCIENCE LAB MATERIAL FUNDS 3,823.04- 0.00 0.00 3,823.04- 

RS-YR: 7186-0 ONE-TIME INSTRT MAT STAFF BUYO 9,848.00- 0.00 0.00 9,848.00- 

RS-YR: 7230-0 TRANSPORTATION-HOME TO SCHOOL 0.41 0.00 0.00 0.41 

RS-YR: 7271-0 CA PEER ASST & REVIEW PROG TEA 27,977.26- 0.00 0.00 27,977.26- 

RS-YR: 7315-0 STAFF DEV-SCHOOL DEV PLANS 7,378.42- 0.00 0.00 7,378.42- 

RS-YR: 7375-0 TENTH GRADE COUNSELING 1,591.97- 0.00 0.00 1,591.97- 


Grants and Entitlements are 

generally completely budgeted for 

expenditures and no beginning 

balance estimated at budget 

adoption. Therefore when actual 

balances are rolled in, beginning 

balance equals ending balance.


WORKSHOP 7/1 RECEIVABLES/PAYABLES FINANCIAL ACTIVITY REPORT 

District PAGE 5 


========================================================================================================= 


NUMBER Fu Res Y Goal Func Obj Sch Mgmt AUDITOR *(UT) SETUP RECD/LIQ OFFSET CASH 

========================================================================================================= 

9290.00 ACCOUNTS RECEIVABLE 9299 9290-9319 CY ACCT 9110 

*** TOTAL 9000-9999 .00 .00 .00 .00 

*** TOTAL ACTIVITY 1,005,307.38 .00 .00 .00 

**** GRAND TOTAL 9200-9319 1,005,307.38 .00 .00 .00 


WORKSHOP 7/1 GENERAL LEDGER SUMMARY REPORT 


================================================================================================================ 


================================================================================================================ 

9210 ACCOUNTS RECEIVABLE 

RS-YR: 0000-0 NO REPORTING REQUIRMENTS 852,684.85 0.00 0.00 852 ,684.85 

RS-YR: 0355-0 VEA 1,264.03 0.00 0.00 1,264.03 

RS-YR: 0415-0 DONATIONS 500.00 0.00 0.00 500.00 

RS-YR: 1100-0 STATE LOTTERY REVENUE 24,710.00 0.00 0.00 24,710.00 

RS-YR: 1300-0 CLASS SIZE REDUCTION K-3 30,885.00 0.00 0.00 30,885.00 

RS-YR: 3310-0 SP ED-IDEA BAS GRNT ENTL 8,019.00 0.00 0.00 8,019.00 

RS-YR: 3340-0 SP ED-IDEA IN-SERVICE TRAINING 115.00 0.00 0.00 115.00 

RS-YR: 4135-0 IASA Title VI Class Size Reduc 14,548.00 0.00 0.00 14,548.00 

RS-YR 6275-0 TEACHER RECRUTIMENT & RENTENTION 1,100.00 0.00 0.00 1,100.00 

RS-YR: 6300-0 LOTTERY:INSTRUCTIONAL MATL 6.,416.00 0.00 0.00 6,416.00 

RS-YR: 6330-0 SCHOOL COMMUNITY PP 50.00 0.00 0.00 50.00 

RS-YR: 6350-0 ROC/P APPORTIONMENT 29,528.01 0.00 0.00 29,528.01 


RS-YR: 7271-0 CA PEER ASST & REVIEW PROG 2,760.00 0.00 0.00 2,760.00 




988,606.38 

11,701.00 

5,000.00 

$1,005,307.38 

9229 ACCOUNTS RECEIVABLE SET-UP 

ENDING BALANCE 9229: 0.00 0.00 0.00 0.00 

9290 DUE FROM OTHER GOVERNMENTS 

RS-YR: 6365-0 ROC/P EQUIPMENT 10,000.00 0.00 0.00 10,000.00 



9310 DUE FROM OTHER FUNDS 

RS-YR: 0000-0 NO REPORTING REQUIRMENTS 5,000.00 0.00 0.00 5,000.00 

ENDING BALANCE 9310: 5,000.00 0.00 0.00 5,000.00


WORKSHOP 7/1/ RECEIVABLES/PAYABLES FINANCIAL ACTIVITY REPORT 

PAGE 29 


================================================================================================================ 


NUMBER Fu Res Y Goal Func Obj Sch Mgmt AUDITOR *(UT) SETUP EXPD/LIQ OFFSET CASH 

================================================================================================================ 

9510.00 CURRENT-LIABILITIES 9529 9510-9519 CY ACCT 9110 

**** GRAND TOTAL 9510-9659 PAYABLES 344,900.77 .00 .00 .00 

**** GRAND TOTAL 9510-9659 PAYROLL 276,339.88 276,339.88 .00 276,339.88 

***** GRAND TOTAL 9510-9659 PAYABLES & PAYROLL 621,240.65 276,339.88 .00 276,339.88 


WORKSHOP 7/1 GENERAL LEDGER SUMMARY REPORT 


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9510 CURRENT LIABILITIES 

RS-YR: 3010-0 IASA - TTL I BAS GRNTS LOW INC 8,182.98- 8,182.98 0.00 0.00 

RS-YR: 3310-0 SP ED-IDEA BAS GRNT ENTL 8,054.00- 0.00 0.00 8,054.00- 

RS-YR: 3340-0 SP ED-IDEA IN-SERVICE TRAINING 24.00- 0.00 0.00 24.00- 


RS-YR: 5610-0 WORKFORCE INVESTMENT ACT 19,564.75- 762.62 0.00 18,802.13- 

RS-YR: 6286-0 ENGLISH LANGUAGE ACQUISITION 11.40- 0.00 0.00 11.40- 

RS-YR: 6350-0 ROC/P APPORTIONMENT 6,417.11- 4,031.30 0.00 2,385.81- 

RS-YR: 6365-0 ROC/P EQUIPMENT 9,988.14- 0.00 0.00 9,988.14- 

RS-YR: 6500-0 SPECIAL EDUCATION 17,056.79- 16,867.79 0.00 189.00- 

RS-YR: 6660-0 CIG/TBCO PDTS SRTX FND-ENTL 209.12- 0.00 0.00 209.12- 

RS-YR: 7155-0 INSTR MATERIAL-DIR ORDER K-8 456.09- 0.00 0.00 456.09- 

RS-YR: 7185-0 SCIENCE LAB MATERIAL FUNDS 0.39- 0.00 0.00 0.39- 

RS-YR: 7230-0 TRANSPORTATION-HOME TO SCH 11,329.43- 0.00 0.00 11,329.43- 

ENDING BALANCE 9510: 483,725.70- 237,015.16 0.00 246,710.54- 

9610 DUE TO OTHER FUNDS 

RS-YR: 0000-0 NO REPORTING REQUIREMENTS 16,356.00- 0.00 0.00 16,356.00- 


9650 DEFERRED REVENUE 


RS-YR: 4010-0 TITLE I TEACHER IMPROVEMENT 7,778.05- 0.00 0.00 7,778.05- 

RS-YR: 4110-0 IASA-TITLE VI-FORMULA ENTITLE 3,181.57- 0.00 0.00 3,181.57- 

RS-YR: 5380-0 CHLD NUTR-SCH BREAKFAST START 221.55- 0.00 0.00 221.55- 

RS-YR: 6330-0 SCHOOL COMMUNITY PP 11,297.40- 0.00 0.00 11,297.40- 

RS-YR: 6660-0 CIG/TBCO PDTS SRTX FND-ENTL GR 833.88- 0.00 0.00 833.88- 

RS-YR: 7100-0 DIGITAL H.S. APPLICATION 13,450.30- 0.00 0.00 13,450.30- 

RS-YR: 7110-0 EDUCATION TECHNOLOGY 71,613.14- 0.00 0.00 71,613.14- 

RS-YR: 7127-0 EDUC. TECH: ON-LINE ADVANCE PL 2,015.10- 0.00 0.00 2,015.10- 

RS-YR: 7265-0 SCHOOL IMPRV PRG-GRADES 7-12 5,641.00- 0.00 0.00 5,641.00- 

RS-YR: 7282-0 STAFF DEVP HIGH SCH COACHING 570.00- 0.00 0.00 570.00- 


Totals the accruals set-up by 

the district for the prior fiscal 

year. 

483,725.70 

16,356.00 

121,158.95 

$621,240.65

Fund Balance Accounts 

To start the fiscal year, beginning balances are estimated. These estimated assets and liabilities are entered into 

the account link beginning balance menu (FCALI). The Beginning Balance Report, FCR 125 – displays the 

restricted and unrestricted entries made. If the debits do not equal the credits, the report identifies the 

difference that must be corrected. 

Estimated beginning fund balance control account object 9791 must always be positive (credit entry) by 

resource Credit. 

Example: Debit Cash Asset Object 9110 

Debit Revolving Cash Object 9130 

Debit Accounts Receivable Object 9210 

Debit From Government Object 9290 

Debit Due from Other Funds Object 9310 

Credit Accounts Payable Object 9510 

Credit Due to Government Object 9590 

Credit Deferred Revenue Object 9650 

Credit Due from Other Funds Object 9610 

Credit Beginning Fund Balance Object 9791 

When doing a budget revision to these accounts the Ending Fund Balance Accounts Objects 9790/9798 will be 

automatically updated. If entering the beginning values for the adopted budget in the FCR 125 beginning 

balance entry screens, these ending values must be entered to reflect the ending value after adding estimated 

revenue and subtracting budgeted expenditure appropriations. 

Credit Ending Fund Balance Object 9790 

Debit Fund Balance Control Object 9798 

Debits Must Equal Credits 

Assets are Equal to Liabilities Plus Fund Balance 

Beginning Balance Plus Revenue Less Expenditures Equal Fund Balance 

The Unaudited Actuals Asset and Liability Roll validates the difference between the estimated and actual 

ending balance components and post any differences to Control Object 9792 

Other adjustments (audit and restatement) adjust the appropriate asset or liability and the net difference is 

posted to Control Object 9793(audit) or 9795 (restatement).

Audit Adjustments 

Audit Adjustments are considered Budget Revisions to the Financial System. Adjustments found by the 

Auditors that require fund balance restatements are identified in the Audit Report under the heading of Fund 

Balance Reconciliation. The Auditor should provide the District with work papers which will identify the 

specific transactions that the auditor felt materially distorted the Districts Financial position. Districts will need 

to: 

1) Restate the beginning balance component for the value change and then; 

2) Journal the specific transaction to the proper account. 

Audit adjustments are a least a two step process. The books have been closed once the Auditors arrive. Any 

findings that require adjustments are written as adjustments to FY2s beginning budget value. 

Example: The Audit found the District overstated its revenue by booking too much of a receivable in state aid. 

This overstatement results in a decrease in fund balance. 

1 st Step: Budget Revision 

Decrease State Aid Receivable Object 9210 

Decrease Beginning Fund Balance Object 9793 

System Generates Ending Fund Balance Changes 

Decrease Un-appropriated Fund Balance Object 9790 

Decrease Fund Balance Control Account Object 9798 

2 nd Step Relieve Receivable for Funds not Received “Z” 

Accrual Program System Posts Offset 

Debit State Aid Revenue Account Object 8011 

Credit Accounts Receivable Object 9210 

3 rd Step Journal the Reverse/Cancellation of the Receivable 

Accrual Program System Posts Offset 

Credit State Aid Revenue Account Object 8011 

Debit Accounts Receivable Object 9210

Audit Adjustments (Continued) 

Example: The Audit found that a District has understated its expenditures by not accruing an expense that it 

found paid in August of the next fiscal year. This under statement results in a decrease in fund balance. 

1 st Step Budget Revision 

Increase in Current Liabilities Object 9510 

Decrease in Beginning Fund Balance Object 9793 


Decrease in Un-appropriated Fund Balance Object 9790 

Decrease in Fund Balance Control Account Object 9798 

2 nd Step – Journal Transaction to Current Liabilities 

Debit Current Liabilities Object 9510 

Credit Contract Expense (example) Object 5810 

Example: The Audit found the District did not book deferred revenue for the funds not spent in the Federal 

Title One program. This understatement of deferred revenue results in a decrease in restricted fund balance. 

1 st Step Budget Revision 

Increase Deferred Revenue Payable Object 9650 

Decrease Beginning Fund Balance Object 9793 


Decrease Un-appropriated Fund Balance Object 9790 

Decrease Fund Balance Control Account Object 9798 

2 nd Step – Journal Deferred Revenue Dollars 

Debit Deferred Revenue Payable Object 9650 

Credit Revenue Deferred Object 8290 

System Generates Control Entries 

Credit the Actual Revenue Control Object 9840 

3rd Step Budget Revision 

Increase Revenue C/O Object 8290 

Increase Expenditures Budget Object 2110 etc. 


Increase in Revenue Control Object 9810 

Increase in Expenditure Control Object 9820

Audit Adjustments (Continued) 

Audit Adjustments affect the beginning balance Assets or Liabilities which creates a change in Fund Balance. 

Increases in Assets result in Increases in Fund Balance 

Decreases in Assets result in Decreases in Fund Balance 

Increases in Liabilities result in Decreases in Fund Balance 

Decreases in Liabilities result in Increases in Fund Balance 

Never, Never, Never use a journal to adjust a Fund Balance Account (97xx). Budget transfers make 

revisions to Beginning or Ending Fund Balances

FINANCIAL YEAR END REPORTING REVIEW CHECKLIST 

The following checklist has been designed to assist school districts in complying with the financial reporting requirements of the 

California School Accounting Manual and accounting practices. 

Completed By ACTION 

Y N N/A 

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Assets 

1. Cash in Clearing accounts have been reconciled and A/Rs set up for 

deposits in County Treasury. 

2. Bank Accounts have been reconciled and balances agree with Fund 

account 9120 value. 

3. Revolving Cash Account activity as been reconciled and liability 

payments have been set up as Fund C/Ls. 

4. Cash with Fiscal Agents have been reconciled and activity journaled 

appropriate Fund and cash amount agrees with Fund account 9135. 

5. Cash on hand in petty cash funds has been counted and accounted for. 

6. Physical inventory for Stores account completed and appropriate entries 

have been made in Fund Account 9320 for General Fund and Cafeteria. 

7. Prepaid Expenditures expenses accrued in the prior year have all been 

Expenses to the user accounts. 

8. Current Prepaid Expenditures for rent, interest expense, insurance, etc. 

have been recorded in Account 9330. 

9. Equipment inventory records have been updated to include all capital 

purchases and deletions and entered into the AC Fund 96. 

Revenues 

1. State Aid amounts in 8011 have been reconciled with the K-12 Annual 

Estimate and any amounts entered that are prior year adjustments have 

been journaled to 8019. 

2. K-12 Annual revenue limit adjustments have been added/subtracted to the 

County estimated annual accrual amount and booked as an AR or CL 

3. The receipt of restricted revenue limit funds has been calculated for Special 

Education, Community Day Schools, and Continuation High Schools and 

a reclassifying entry was made using account 8091. 

4. Appropriate RDA revenue has been classified as revenue limit funds in 

Account 8047. 

5. PERS Reduction amounts have been calculated using Retirement PERS 

covered salary worksheet less those federal programs and food service 

worker salaries that are excluded from the K-12 deduction. 

6. Grant and Entitlement programs have been reconciled as per the CAT 

report and appropriated receivables or deferrals made to the ledgers. 

7. No Resource has both a receivable and a deferral amount for the same 

income stream. 

8. All receipts earned by June 30 th , but not yet received have been entered as 

system ARs. 

9. No Property Tax receipts have been accrued. 

10. Interest earned on instructional material and child development funds have 

been allocated to the appropriate grants. Liabilities have been set-up for 

Interest earned on Federal Programs (if over $100). Effective 2003/04 

11. The County supplied minimum accrual listing has been reviewed and 

entries made.

FINANCIAL YEAR END REPORTING REVIEW CHECKLIST – cont. 

Completed 

Y N N/A 

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By ACTION 

Expenditures 

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1. System Batch reports have been reviewed and any open items have been voided. 

2. Payroll encumbrances have been closed. 

3. Purchase order encumbrances were reviewed for goods and services received on 

or before June 30 th , adjusted to appropriate balances and then rolled to the open 

payables program (PCL). 

4. Contracts have been reviewed and services received but not paid have been 

accrued as a current liability. 

5. Utility Expenses have been reviewed and estimated file charges for June services 

have been accrued as a current liability. 

6. Sales Tax report has reconciled with Sales Tax Suspense account 9580/9581 and 

values adjusted for current taxes due and liability accrued. 

7. The indirect cost rate charged to categorical programs is the fixed carried over rate 

certified by CDE. 

8. Inter-fund charges have been accrued for salary, benefits, printed materials, stores 

requisitions, district work orders, direct support, and indirect costs. 

9. Inter-program charges have been charged to grants for field trips, 

Duplication, stores, work orders, direct support, and indirect charges. 

10. Temporary Loans (EC 42603) to other funds if processed as 9310 have 

been journaled to 9648 and a liability for paying back the funds or a 

receivable for funds due have been accrued. 

11. New Capital Leases have been set up per the Procedure 805 CSAM 

Display the value of the capital item in the 6XXX account and the value of 

The lease in object 8972 with the current year debt amount in 7439. 

12. TRANS issuing costs have been appropriate charged in object 5880. 

REPORTS 

1. The GLD 110, the FCR 290, and the BDX and FAR reports agree. 

2. The SACS U/A extract is generated from FCS for the actuals. The extract 

totals agree with the Fund reports. 

3. Year End Closing Reports have been run and NO errors exist. (FCGCUP) 

4. Year End Assets and Liability Roll reports have been run and NO errors 

exist. (FCALRO) 

5. The SACS U/A Technical Review Checklist has NO fatal errors and all 

Warnings have been explained. 

6. Pre-closing Trial Official Export has been attempted and NO errors occur. 

7. The values for all funds and resources have been reviewed and reflect the 

Districts best estimate for the District’s financial position. 

8. One through six above has been completed and the District initiated year end 

close roll has been executed. 

9. Final Extract from the financial control system completed after closing ledgers. 

10. SACS reports printed and assembled for District Board Certification and 

transmittal with disk to County Office BAS.

Financial Data Validation 

Closing the financial records for the Districts year-end financial reporting requires a review of all revenue and 

expenditures resource by resource. The review of accounts often discovers planned and sometimes required 

support and inter-fund transactions have failed to be processed. Entitlements are often found to be over or 

under projected due to actual enrollment or actual average daily attendance of eligible students. The school 

ledgers are subject to the process of modified accruals. Adjustments must be made to reflect actual earnings 

due to the School District. 

The Reporting Accounts Review Checklist lists many of the common problems that have been found in 

district’s records. Many of these accounts are audited by the year end closing production report and the asset 

and liability roll update. Balances in payroll benefit and sales tax suspense accounts must equal zero at the end 

of the year. These are just two of the common errors that are edits on the year-end close reports that will prevent 

the district from posting the closing entries. Liabilities should be set up to identify amounts still owed and 

adjustments for over charges or credits should be journaled to the appropriate expense account. 

Other items in the Checklist are not identified in the closing updates but they will still distort your financial 

information if not handled. Revenue Limit ADA transfers must be made to Special Education and Community 

Day School Programs. Inter-fund transfers from one fund must equal the expense booked in the paying fund. 

Expense appropriations must be equal or greater than expense activity. A negative balance by major object on 

the Monthly Financial Control Report (FCR290) must be corrected by additional budget appropriations or the 

Accruals cannot be authorized for payment due to lack of Board authorization. These are just a few of the items 

detailed on the checklists.

OBJECT REVIEW SUMMARY CHECKLIST 

Items identified may require year end clean-up of Transfer, Journal, or Accrual activity. 

General Other 

Fund Funds 

Revised Budget appropriations (1000-7999) insufficient for expenditures made. 

Food Services Fund 01 expenditures (function 3700) have not been transferred to the Cafeteria Account. 

Inter-program Services for Direct Costs (5710-5749) do not net to zero. 

PERS Reduction Transfer (3801 or 3802) has not been completed or is not in balance with Account 8092. 

Inter-program Services for Support/Indirect Costs (7310-7349) do not net to zero. 

Inter-fund Transfers (7600's & 8900's) do not balance between funds. 

Special Education ADA plus NPS ADA Transfer do not net to zero (8091). 

Community Day School Transfer (8091) has not been made. 

Contribution to Restricted Programs (8980-8999) must net to zero. 

Revolving Cash Account (9130) must agree with Fund Balance Reserve (9711). 

Prior Year Accrual for Accounts Receivable (9210) should not have a balance. 

Prior year Asset Accrual Account for the Receivable Due from Other Funds (9310) should not have a balance. 

Prior year Liability Accrual Account (9510) should not have a balance. 

Prior year Account for the Due To Other Funds (9610) should not have a balance. 

Prior year Deferred Revenues (9650) should have had reversing entries and 

account balance should net to zero to allow new deferrals at year end. 

Other Liability Accounts (9500's- payroll suspense accounts) should not have any balances after year end 

liabilities have been accrued. 

Budgeted Fund Balance Accounts (9791-9795) for K-12 Districts should not have any current activities for 

expenditures or revenues. These are Budgetary Control Accounts. Activity should be reversed. 

Suspense Clearing Account (9910) should net to zero after year end liabilities have been accrued 

Object 9648 should not have a balance. Should be established as a receivable (9319) or payable (9619) and 

reclassed to Due From Other Funds (9319) or Due To Other Funds (9619).

Validated 

Y N N/A 

____________ 

____________ 

____________ 

____________ 

____________ 

____________ 

____________ 

OBJECT ACCOUNT REVIEW DETAIL CHECKLIST 

PROBLEM MESSAGE/ACTION NEEDED 

If Validation indicates Y (Yes) response 

Income (8000-8999) 

Account balance 

negative. 

Expenditure (1000- 

7999) Account balance 

negative. 

Account (8091) 

Has had no activity or 

has balance. 


Has a budgeted amount 

but no activity. 

Accounts (8092 & 

380X) Have no activity 

or are not in agreement. 


7611) Have budgeted 

amounts but no activity, 

or activity is not in 

balance. 





balance. 

1. Income received exceeds amount budgeted. A budget transfer should be 

processed to increase the income account (8000) as well as the related fund 

balance (9790) and/or expenditure for which the new money was slated. 

2. Revised Budget appropriations are insufficient for expenditures made. A 

budget transfer should be processed increasing the available funds. 

3. Special Education ADA plus NPS ADA Transfer has not been made or 

does not net to zero. This account is for the transfer of unrestricted 

Revenue Limit Sources to a restricted Special Education Program. This is 

accomplished by a journal entry debiting the unrestricted resource 0000 

and crediting one of the special education programs Resource 6500. This 

journal entry must be completed and in balance (net to zero) by the end of 

the fiscal year. 

4. Adult Apprentice ADA Transfer has not been made. By the end of the 

fiscal year, the amount reported on the Annual Revenue Limit should be 

transferred from the General Fund to the Adult Fund. 

5. PERS Reduction Transfer has not been completed or is not in balance with 

Account 8092. By the end of the fiscal year, the amount of the PERS 

reduction as calculated on the Annual Revenue Limit should be moved to 

both 8092 and 380X accounts by journal entry. The 380X PERS reduction 

charges may be spread to other funds, but in total they must equal the 

amount in 8092. New payroll maps PERS Reduction based on the 

identification in the resource type (RP). PERS Buyback factor is applied 

to PERS Reduction Rate. Amounts must reconcile to the Revenue Limit 

Schedule H annual calculation. 

6. Child Development Inter-fund Transfer has not been done or transfer 

source does not agree with use between Fund 01 and Fund 12. The Interfund 

Cash Transfer should be used to process this transfer. If the account 

is out of balance, review original transaction. If a warrant was issued or 

deposited into the wrong account, move to the appropriate account by 

journal entry. If the wrong account was used for the Transfer, move to the 

correct amount by journal entry. 

7. Special Reserve Inter-fund Transfer has not been done or transfer source 

does not agree with use between Fund 01 and Fund 40. The Inter-fund 

Cash Transfer should be used to process this transfer. If the account is out 

of balance, review original transaction. If a warrant was issued or 

deposited into the wrong account, move to the appropriate account by 

journal entry. If the wrong account was used for the Transfer, move to the 

correct account by journal entry.

Validated 

Y N N/A 

____________ 

____________ 

____________ 

____________ 

____________ 

____________ 

____________ 

____________ 







balance. 





balance. 



amounts, but no 

activity, or activity is 

not in balance. 

Accounts (8980-8989) 

Have balance. 

Accounts (8990-8994) 

Have balance. 

Function 3700 Salary 

Accounts Have no 

budget but have 

balance. 

Accounts (5700-5749) 

Has balance. 

Accounts (5750-5799) 

Sum of all accounts 

have balance. 

8. This applies to Mt. Baldy Joint Unified Only. No other district should 

be reflecting any activity. State School Building Fund Inter-fund Transfer 

has not been done or transfer source does not agree with use between 

Funds 01, 21 and 30. The Inter-fund Cash Transfer should be used to 

process this transfer. If the account is out of balance, review original 

transaction. If a warrant was issued or deposited into the wrong account, 

move to the appropriate account by journal entry. If the wrong account 

as used for the Transfer, move to the correct account by journal entry. 

9. Deferred Maintenance Inter-fund Transfer are no longer required due 

to the implementation of SBX3 4 (Chapter 12, Statues of 2009). If the 

district still wishes to transfer monies to Fund 14, the appropriate 

object codes would be 8919 and 7619. 

10. Other Inter-fund Transfers have not been done or transfer source does not 

agree with use between Funds. The Inter-fund Cash Transfer should be 

used to process this transfer. If the account is out of balance, review 

original transaction. If a warrant was issued or deposited into the wrong 

account, move to the appropriate account by journal entry. If the wrong 

account was used for the Transfer, move to the correct account by journal 

entry. 

11. Contribution to Unrestricted Programs (8980-8989) must net to zero. 

Account 8980 is for the transfer of unrestricted funds to a restricted 

resource. This is accomplished by a journal voucher between resources. 

12. Contribution to Restricted/Unrestricted Programs (8990-8994) must net to 

zero. Account 8990 is for the contribution of restricted funds to other 

resources. Supplemental Grants beginning in 2005/06 can be transferred 

from the TI Block grant to Grant programs using this restricted object. 

Federal NCLB Transfers are made in object 8990. Contribution object 

range 8990 – 8994 must net to zero. Transfers in equal transfers out. 

13. Food Services Salaries exceed budget appropriation. Expenditures appear 

to have not been transferred to the Cafeteria Account. The Cafeteria 

Account should be invoiced for these charges and the check deposited 

into the General Fund against these salaries. 

14. Inter-program Services Direct Costs do not net to zero. These accounts 

are for the distribution of costs within a single fund. Balances must be 

reviewed and corrected by a journal entry to the appropriate resource 

and/or expense account. 

15. Inter-fund Services Direct Costs do not net to zero. These accounts are 

for the distribution of costs to other funds maintained by the District. 

Balance must be reviewed and corrected by an inter-fund transfer or by 

journal entry (if within the same fund) to the appropriate expense 

account.

Validated 

Y N N/A 

____________ 

____________ 

____________ 

____________ 

____________ 

____________ 

____________ 

____________ 



Accounts (7310-7349) 

Have balance 

Accounts (7350-7369) 

Have balance 


Has negative balance 


Has negative balance or 

No activity posted 


Has balance. 


Has balance. 


Has balance. 


Has balance 

16. Inter-program Indirect Costs do not net to zero. These accounts are for 

the distribution of costs within a single fund. Balances must be reviewed 

and corrected by a journal entry to the appropriate expense account. 

Charges must be coded with the general administration function 7210. 

17. Inter-fund Indirect Costs do not net to zero. These accounts are for the 

distribution of indirect costs to other funds. Balances must be reviewed 

and corrected by a journal entry to the appropriate expense account if the 

sum of funds do not equal the credit charged to the general fund. 

Charges must be coded with the general administration function 7210. 

18. Cash in the County Treasury has been overdrawn. Warrant activity must 

cease. Review status. 

19. Cash with an outside Fiscal Agent has been overdrawn or entries posted 

to reflect activity made by financial institution is incorrectly made. 

Account balances must reflect activity demonstrated by bank statement. 

Reconcile account with bank statement. Debit account for increase in 

cash. Credit account for decreases in cash activity. 

21. Prior year receivables have open balances. Review Open reports and 

FAR 311 report to see if balances should still exist. Review General 

Ledger Account 9210 activity to see if any entries have been incorrectly 

posted. Look for cancelled warrants and postings that do not reflect 

Account Receivable references. Activity in the 9210 account should be 

for transactions that were set up as receivables in the prior year through 

the accounts receivable program by reversing journal entries and/or audit 

adjustments. Balance must be closed (net to zero) at fiscal year end. 

22. Prior year receivable for amounts due from other funds has open balance. 

Review Open reports and FAR310 report to see if balances should still 

exist. Review General Ledger Account 9310 activity to see if any entries 

have been made in error. Look for cancelled warrants and any posting 

that do not reflect Account Receivable references. Activity in the 9310 

should be for transactions that were set up as receivables in the prior year 

through the accounts receivables program or by reversing journal entries 

and/or audit adjustments. Check Account 9210 to see if amounts have 

been posted there and need to be moved to Account 9310 by journal 

entry. Balance must be closed (net to zero) at fiscal year end. 

23. Temporary Inter-Fund borrowings must be established as an accrual in 

objects 9319 and 9619. 

24. Prior year current liabilities have open balances. Review Open reports 

and FAR311 report to see if balances should exist. Review General 

Ledger Account 9510 activity to see if any entries have been made in 

error. Look for cancelled warrants and any postings that do not reflect 

current liability references. Activity in the 9510 should be for 

transactions that were set up as payables in the prior year through the 

accounts payable program or through reversing journal entries and/or 

audit adjustments. Balance must be closed (net to zero) at fiscal year end

Validated 

Y N N/A 

____________ 

____________ 

____________ 

____________ 

____________ 

____________ 




Has balance. 


Has balance. 


Has balance. 


Has balance. 


Has balance 


Has balance. 

25. Prior year current liabilities for payments due to other funds have open 

balances. Review Open reports and FAR 311 report to see if balances 

should still exist. Review General Ledger account 9610 activity to see if 

any entries have been made in error. Look for canceled warrants and any 

postings that do not reflect current liabilities references. Activity in the 

9610 account should be for transactions that were set up as payables in the 

prior year through the accounts payable program by reversing journal 

entries and/or audit adjustments. Check Account 9510 to see if amount 

have been posted there and need to be moved to 9610 by journal entry. 

Balance must be closed (net to zero) at fiscal year end. 

26. Prior year deferred revenues have open balances. Review Open reports 

and FAR 311 report to see if balances should still exist. Deferred revenues 

set up through the accounts payable program need to be closed through the 

“Z” option to complete the deferral process. Review General Ledger 

account 9650 activity to see if any entries have been made in error. Look 

for any postings that do not reflect current liability references. Activity in 

the 9650 account should be for transactions that were set up as payables in 

the prior year through the accounts payable program by reversing journal 

entries and/or audit adjustments. Check account 9510 to see if amounts 

have been posted there and need to be moved to 9650. Balance must be 

closed (net to zero) at fiscal year end. 

27. Payroll employer fixed charges suspense account for State Teachers 

Retirement System (STRS) has balance. Review General Ledger activity. 

Payroll system is designed to automatically charge STRS to 3100 

account. No entries should be made to this account. Balance must be 

(zero) at fiscal year end. 

28. Payroll employer fixed charges suspense account for Public Employees 

Retirement System (PERS) has balance. Review General Ledger activity. 

Payroll system is designed to automatically charge PERS to the 3200 

accounts. No entries should be made to this account. Balance must be 

closed (zero) at fiscal year end. 

29. Payroll employee fixed charges suspense account for Social Security/FICA 

Charges have a balance. Review General Ledger activity. Payroll system is 

designed to automatically charge FICA to the 3310 accounts. No entries 

should be made to this account. Balance must be (zero). 

30. Payroll employer suspense account for Health and Welfare (H&W) 

premium payments has balance. Review General Ledger activity. Payroll 

system is designed to map charges to the 3400 and/or 3900 accounts if 

information is entered into employee voluntary deduction screens as an 

employer benefit. Districts must reconcile charges against actual payments 

made from this account. If District does not map H&W benefits and is a 

member of the JPA charges must be made to the appropriate 3401, 3402, 

or 3900 account.

Validated 

Y N N/A 

____________ 

____________ 

____________ 

____________ 

____________ 

____________ 


PROBLE 

M 

Account 

(9565) 

Has balance. 

Account 

(9566) 

Has balance. 

Account 

(9567-9569) 

Has balance. 

Account 

(9572) 

Has balance. 

Account 

(9580) 

Has balance. 

Account 

(9711) 

Does not 

agree with 

account 

(9130). 

MESSAGE/ACTION NEEDED 

31. Payroll employer suspense account for Unemployment Insurance premium payments 

has balance. Review General Ledger activity. Payroll system is designed to map 

charges to the 3500 accounts if appropriate coverage flag has been set in the 

employees pay screens. Districts must reconcile charges against actual payments 

made from this account. Balance must be closed (zero) at fiscal year end after 

payables have been established. Journal entry adjustments should be made to the 

3501 or 3502 account. 

32. Payroll employer suspense account for Workman’s Compensation Insurance 

premium payments has balance. Review General Ledger activity. Payroll System is 

designed to map charges to the 3600 accounts based on the employer premium rate. 

Districts must reconcile charges against actual payments made from this account. 

Balance must be closed (zero) at fiscal year end after payables have been established. 

Journal entry adjustments should be made to the 3601 or 3602 account. 

33. Payroll employer suspense account for Other District paid premiums 


charges to the 3300, 3400 or 3900 accounts if information is entered into employee 

voluntary deduction screens as an employer. Districts must reconcile charges against 

actual payments made from this account. Mapping error offsets are posted to the 

9569 account. Review 9569 and 3999, identify correct account and then move to the 

appropriate account by journal entry. Balance must be closed (zero) at fiscal year 

end after payables have been established. Journal entry adjustments should be made 

to the appropriate 3000 account. 

34. Payroll employer suspense account for PERS Reduction 


charges to the 3800’s accounts if PERS mapping is selected for New Payroll. 

Districts must reconcile charges against actual annual calculation made for the 

revenue limit calculation. Mapping error offsets are posted to the 9569 account. 

Review 9569 and 3999, identify correct account and then move to the appropriate 

account by journal entry. Balance must be closed (zero) at fiscal year end after 

payables have been established. Journal entry adjustments should be made to the 

appropriate 3800 account. Inter-fund cash transfers must be paid to clear mapping 

charges from other funds 9572 to the PERS Reduction revenue account 8092 in the 

general fund. 

35. Accounts payable suspense account for Out-of –State sales tax payable to the State 

Board of Equalization. Review General Ledger activity. The AP System is 

designed to map charges to the payment expense accounts based on the initiation of 

the sales tax flag and credit the suspense account. . Districts must reconcile charges 

against actual payments made from this account and report purchases without sales 

tax to the State Board. Amounts owed should be accrued as current liability. Balance 

must be closed (zero) at fiscal year end after payables have been established. 

Journal entry adjustments should be made to the 4300 or 6400 account. 

36. Fund Balance reserve for revolving cash does not equal asset account 9130. Budget 

Transfer should be made from the un-appropriated fund balance (9790) to 

increase/decrease the reserve account (9711).


Validated 

Y N N/A 

____________ 

____________ 

____________ 

____________ 

____________ 

____________ 

PROBLE 

M 

Account 

(9712) 

Does not 

agree with 

account 

(9320). 

Account 

(9713) 

Does not 

agree with 

(9330). 

Accounts 

(9791-9799) 

Have 

transaction 

activity. 

Account 

(9798) 

Has negative 

balance. 

Account 

(9910) 

Has balance. 

Account 

(9577-9578) 

Has balance. 

MESSAGE/ACTION NEEDED 

37. Fund Balance reserve for stores does not equal Asset account 9320. 

Budget Transfer should be made from the un-appropriated fund balance (9790) to 

increase/decrease the reserve account (9712). 

38. Fund Balance reserve for prepaid assets does not equal Asset account 

9330. Budget Transfer should be made from the un-appropriated fund balance 

(9790) to increase/decrease the reserve account (9713). 

39. Budgeted Fund Balance Accounts (9791 - 9799) should not have any 

expenditures and/or revenue activity for K-12 Districts. These are Budgetary 

Control Accounts. Any expenditure activity should be moved to the appropriate 

expense accounts by journal entry. 

40. Overall Fund Balance Control Account. Review income and expense status 

and complete budget transfer to correctly reflect district balance. If balance 

is negative (debit) must have plan to correct. 

41. Suspense Clearing Account (9910) should net to zero after year end liabilities have 

been accrued. 

42. OPEB Suspense Clearing Account (9577-9578) should net to zero after year end 

liabilities have been accrued.

Fund Maintenance 

As Districts finalize reporting requirements for year end, funds that no longer have activity should be reviewed 

and closed when the purpose of the Fund/Sub-fund has been accomplished. To open or close Funds or Sub- 

Funds, a request must be completed and process through School Claims. Districts have the ability to close 

resources for those local, state, and Federal projects that they no longer are maintaining. The Chart 

maintenance files will allow districts to attached valid numbers with in the appropriate State Ranges of 

Resource 0000 through Resource 9599. Sub-Fund Resources 9600 through Resource 9999 are maintained by 

School Claims. The attached form should be completed with the appropriate documents attached to aid in the 

closing or opening of fund or sub-fund. 

Fund/Sub-Fund Requires Board Authorization 

New Federal/State Resource Requires Grant Entitlement 

Letter or Application 

Fund/Sub-Fund Closure Requires Fund Balance and 

Cash Account to equal zero and 

disclosure of specific fund 

re-assignment of future residual 

interest receipts. 

New Federal/State Resource must be requested only when the project is being used for the first time within the 

County. Generally the California Department of Education informs the County of new Resources to be added. 

On those rare occasions when the District is the first to receive the number on their Grant application they will 

need to complete this form with the supporting documentation.

SAN BERNARDINO COUNTY SUPERINTENDENT OF SCHOOLS 

DISTRICT FINANCIAL SERVICES 

REQUEST FOR NEW FUND/RESOURCE/SUB-FUND 

District : Date: 

District Contact : Phone: 

Authorized Agent Signature: 

REQUEST FOR FUND/SUB-FUND REQUEST TO CLOSE FUND/SUB FUND 

Attached is Board Certification requesting the establishment or closure of a project, fund (subfund). 

Fund # Date: 

Sub-Fund # Date: 

To Close Fund Fund balance and cash must equal zero 

Interfund Transfer Closing Balances to Fund# Ref # 

Residual Interest to be transferred to Fund# 

If Balance is zero attach screen dump of On-line Cash 

District Financial Services: 

Processed Interfund Date 

BY 

Field Definition Notated Date BY 

Complete Fund Closure FAS ( ) Schools ( ) Date By 

Business Advisory Services: 

Request to Redirect Interest Sent Date BY 

Conversion Charts Updated Deposit ( ) BY 

Property Tax ( ) BY 

Interest ( ) BY 

If Sub-Fund is State School Building Program in Funds 30 or 35 – Must attach 

Final accounting Review of Project Financing and Expenditures 

Confirmation Letter of Audit Completion 

If Closing Fund 30 to Fund 35 Project Processing Declaration Form 

REQUEST FOR FEDERAL RESOURCE 

Attached is Grant/Entitlement Letter or Application identifying New Resource 

Name: PCA # 


# Assigned Initials 

BAS ONLY 

Yes NO 

State Title: 

( ) ( ) Range 

Abbreviation: ( ) ( ) Combos 

Date _______ _______DFS 

REQUEST FOR STATE RESOURCE 

Attached is Grant/Entitlement Letter or Application identifying New Resource 


# Assigned Initials 

Name: PCA # 

BAS ONLY 

Yes NO 

State Title: 

( ) ( ) Range 

Abbreviation: ( ) ( ) Combos 

Date _______ _______DFS

Closing Entries and Asset Liability Roll 

Resolutions to Edit Errors 

The Closing Entries report and the Automated Asset Liability Account Roll report may identify edit errors that 

must be cleared before an update can occur. There are several different types of edit error messages that require 

corrective action to clear the edits and allow the updates in the financial system. The following are examples of 

error messages and the steps that will correct the errors and allow an update. 

Any edit error reflecting a zero balance in the amount column may be cleared by closing the account in the 

beginning balance account link screen in FY1. 

“Summary of Stores – Reserves is not equal to stores” 

“Summary of Rev Cash - Reserves is not equal to Revolving Cash” 

“Summary of Prepaid Exp. – Reserves is not equal to Prepaid Expense” 

These edits require a budget transfer in FY1. This transfer should adjust the appropriate reserve account 

and offset to objects in the range 9770-9790. The object range for the respective asset account and the 

related reserve accounts are noted at the bottom of the front page of each report. 

Zero 

This edit indicates the account balance must be zero before closing entries and the asset liability roll can occur. 

Examples might be prior year accruals such as objects 9210, 9510, 9610, or 9650. All prior year accrual 

balances must have balances cleared before books can close. Another example is the 956X suspense accounts 

that should be cleared to zero balance. 

“No Such Resource” 

If the account balance is zero it may be closed to clear the edit. This edit indicates that the field definition does 

not exist for the resource noted. Check the field definitions in year FY1 and FY2 to be sure the field definition 

exists in both years. If it does not, and is thought to be a valid resource, the definition may be added in the field 

definition section of the account maintenance menu in the financial system. If the resource is not within the 

major range or in the combo tables, please call Business Advisory Services for assistance. 

“No Such Fund” 

If the fund has a zero balance, the account may be closed to clear the edit. If the fund is thought to be valid, 

check the field definition in both years to determine if it exists in both places. If it does not, contact School 

Claims to ensure the fund is defined and set up with the County Treasury in both years. Addition of a fund 

requires Board approval and submission of specific documentation to have it established in the financial system.

Closing Entries and Asset Liability Roll 

Resolutions to Edit Errors 

“No Such Object” 

If the edit line has a zero balance, closing the account in FY1 will clear the edit. If the account is 

deemed valid, check the field definition to be sure it exists in both fiscal years. If it does not exist, the 

district may add the field definition in the account maintenance area of the financial system. 

“Summary of Assets (Liabilities) is not within the Variance” 

This edit indicates that the sum of all the objects that should have a zero balance does not net to zero. In 

most cases, a reclassification of a prior accrual may have been missed and a reclassification still needs to 

occur. In that situation, the summary of assets would net to zero, but would need to be reclassified to 

clear the edits. More research will be required to identify and clear each edit individually. Contact 

Business Advisory Services if assistance is needed. 

“Not a valid resource object combination for FY1 or FY2” 

The error message will direct attention to the fiscal year that encounters the error message. First, check 

the balance and if zero, close the account. Check to determine if the combination is new or in a phase 

out mode. If the combination should exist, contact Business Advisory Services and ask to have the edit 

reviewed and the combination added. Business Advisory Services will notify the district if it is not an 

allowable combination and suggest an alternative solution. 

If the district encounters an edit that is not listed here, please contact Business Advisory Services for direction. 

These reports should be run, reviewed and all edits cleared before the close of books on August 31st. The 

district must update the closing entries report at that time as well. The Asset Liability Roll can only be updated 

by Business Advisory Services after Unaudited Actuals have been validated.


Beginning and Ending Balances 

Beginning Balance 9791 + 9792 equals SACS Software 9791 

All Funds submitting fund balances in the Unaudited Actuals have been included in the SACS U/A 

Software from CDE. These figures should equal the amount of the Beginning Balance in the financial 

system 9791 + 9792. The Automated Asset and Liability roll updated 9792 which made appropriate 

balance adjustments to the estimated adopted budget beginning balance for the actual prior year 

financial data base ending balance. These are extracted to the State Software and tested to see if they 

agree to the figures that they have on record. Amounts that were submitted to CDE on the SACS 

software have been included in the technical check review for the beginning balance amount. 

Districts must validate the appropriate adjustments have been made for any audit adjustments 9793 by 

first establishing the fund adjustment. A budget should be processed adjusting the asset or liability that 

the auditors have reclassified with the offset to 9793. Then the transaction which the auditor has 

adjusted must be reclassified by completing a Journal (JE) or a Cash Journal (JV) to the current year 

account class and the asset or liability that is being adjusted. 

Long Term Debt closing balances from the prior year have been placed in the SACS Software to 

validate that the U/A balances agree with the district prepared beginning balance. 

Districts must enter the additions and deletions to Debt in the DEBT Schedule. Districts may keep up 

Fund 97 with these memo entries but no information will be downloaded to the State Software. Districts 

are required to enter changes directly in the Long-Term Debt schedule in the SACS software.

Financial Reporting Asset & Liability Rolls 

Cash Roll 

The first roll that brings actual values over from the prior year is the Cash Roll. The Cash roll extracts from the 

Data Base the current cash that resides in object 9110. Resource-by-Resource the Districts cash is updated. 

Cash (9110) is either debited (increased) or credited (decreased) and offset to object 9349 (Cash Difference). 

This roll is initiated by District Financial Services upon completion of the validation of Cash balances with the 

Auditor/Controller and Treasury. 

Asset and Liability Roll 

BAS will execute the Asset and Liability Roll after the District Unaudited Actuals have been reviewed and data 

uploaded to the State export file. The District should run the reports before they perform the year end close to 

validate that all values that will be rolled are correct and that all errors have been corrected. The roll will 

compare the budgeted beginning balances with the unaudited actual ending balances (resource-by-resource) and 

adjust the beginning asset, liability and fund balance objects to the actual beginning balance amounts. The Cash 

Difference (object 9349) that was created in the cash roll should net to zero for each resource and the fund 

balance adjustment (if applicable) will appear in object 9792 (Adjustment for Unaudited Actuals).

Transaction Types 

AB Adopted Budget LB Liability 

AC APY Cancel, Vendor MV Miscellaneous Voucher 

AH APY Hand Warrant PO Purchase Order 

AR Accounts Receivable PB Payroll Benefit 

BT Budget Transfer PC Payroll Cancel 

BL Benefits Liability PE Payroll Encumbrance 

CA County Adjustment (Used by IT) PH Payroll Hand Warrant 

CL Payables/Current Liabilities PL Payroll Liabilities 

CM Credit Memo PV Pay Voucher 

CW Cancelled Warrant PY Payroll 

CO Correction (IT use only) RB Revised Budget 

DC District Cash Receipt RE Revenue 

EP Estimated Payable ST Stores Transaction 

ER Estimated Receivable TC Travel Claim 

JE Journal Entry TF Cash Transfer 

JV Cash Journal Voucher VP Vol-Ded Payment


SUMMARY 

EC 42100 

The governing board of each school district must file annual statements of all receipts and expenditures 

of the districts for the preceding fiscal year with the county superintendent of schools on or before 

September 15th. 

The reports shall be on forms prescribed by the State Superintendent of Public Instruction (Standard 

Account Code Structure Fund Reports and Supplementals). 

The county superintendent of schools shall review the district’s prior year unaudited financial statement 

fund reports and appropriate supplemental reports for mathematical accuracy and transmit the stream of 

data along with the district’s signed certifications to the State Superintendent of Public Instruction by 

October 15th.

Common Reporting Errors 

Financial System 

Closing entries report has not been run. 

This prevents DFS from beginning the validation process if edit errors are found, additional time 

will be needed for correction. 

Balances remain in accruals accounts from the prior year. 

The objects include 9210, 9290, 9310, 9510, 9590, 9610, 9640, 9648, 9650. 

Balances will preclude closing entries and asset/liability roll from updating. 

“AC” Accounts entries have been made using journal entries to the fund balance 

accounts 9790 and 9798 or entries to the FCR125 for these accounts create and out of balance. 

Amounts reported on the fund forms do not agree with the balances found in the 

financial system. This will usually require another export or a correction in the financial system. 

Balance Sheet accounts with codes in fields other than fund, resource, and object 

will create problems with the asset/liability roll update. 

State Software 

Resource code edit appears invalid resource. This edit requires an explanation to 

be entered in order to obtain an official export. Example: Resource 7156 

Export log indicates that an official export did not occur. Unaudited Actual 

reports cannot be accepted without an official export to allow for export 

to state after validation is complete. Review TRC for fatal errors or 

warnings without explanation. 

Error message occurs indicating a negative ending fund balance by resource. 

To avoid carryover of negative balances, the errors should be cleared 

whenever possible. Possibly by contribution or moving expenditures 

to another resource. 

Error message occurs noting objects balances are not positive. In most 

Circumstances, this is a result of prior year activity. Providing an 

explanation for the negative balance will clear the error. 

Error message occurs noting function balances are not positive. In most 

Circumstances, this is a result of over simplifying allocations from 

one program to another. District must correct original journal entries 

keeping detail of functions in the same. 

Error message occurs noting that the district administration ratio is high. 

District should review charges made to 7200 function for cost that 

are more appropriately charged to governance or school site 

administration.

2010-11 Unaudited Actuals Submission Checklist 

District Name: ____________________________ Date Received by BAS: __________ 

Contact Person: ___________________________ ( ) Official DAT File agrees w/paper reports 

Phone/ext/email: __________________ ____________________________________________________ 

Board Meeting Date: __________________ 

Form Description Submitted 

CA Board of Actual Financial Report 

TC 

Fund Forms 

Note if submitting prior to Board Mtg Date __________________________ 

And will forward signed certification document later 

Check Adoption Cycle & Specific Form Approval 

Table of Content 

01 General Fund 

Object Format (can be printed double sided by fund) 

07-09 Charter Schools Fund 

If submitting Alt Form Local Charter Agent Fund has been deleted. 

10 Special Education Pass-Through Fund 

11 Adult Education Fund 

12 Child Development Fund 

13 Cafeteria Fund/Account (13/93) 

14 Deferred Maintenance Fund 

15 Pupil Transportation Equipment Fund 

17 Special Reserve Fund (NON-CAPITAL PROJECTS) 

19 Foundation Special Revenue 

20 Special Reserve Fund for Post Employment Benefits 

21 Building Fund (CAPITAL PROJECTS) (21/98) 

25 Capital Facilities Account/Fund (25/89) 

30 State School Building Lease/Purchase Fund 

35 County School Facility Fund 

_________________________________________________School District


Form Description Submitted 

40 Special Reserve Fund for Capital Outlay Projects 

49 Capital Project Fund for Blended Component Units (49/94) 

51 Bond Interest & Redemption Fund 

51A Analysis of Bonded Indebtedness 

52 Debt Service Fund for Blended Component Units 

53 Tax Override Fund 

53A Analysis of Restricted Levies 

56 Debt Service Fund (COPs, etc) (56/90) 

61 Enterprise Cafeteria Fund/Account (61/92) 

62 Charter Schools Enterprise Fund 

67 Self-Insurance Fund 

71 Retiree Benefits Fund 

73 Foundation Fund 

Required – Print each report separately, do not print doubled sided to where two reports are on one page. 

A Average Daily Attendance 

ASSET Schedule of Capital Assets 

CAT Federal & State Entitlements 

CEA Current Expense Formula/Minimum Classroom Comp Actual – 

Need to meet % reg. or explain. 

CORR Education of Adults in County Correctional Facilities 

(Chaffey Union High-ONLY) 

DAY Community Day School, as applicable 

DEBT Schedule of Long Term Debt 

GANN Appropriations Limit (GANN Limit) 

GASB34A GASB34 Government Wide Statements 

GASB34B GASB34 Conversion Worksheet 

ICR Indirect Cost Rate Worksheet 

L Lottery Report (All LEAs) 

NCMOE No Child Left Behind Maintenance of Effort – Check to ensure 

compliance. 

Optional 

Optional

Form 

_______________________________________School District 


Description 

PCRAF Program Cost Report – Factors 

PCR Program Cost report 

SMOE Special Education Maintenance of Effort 

RL Revenue Limit Calculation 

SEA Special Education Revenue Allocation (Fontana, Morongo, SB 

City) Required as applicable 

SEAS Special Education Revenue Allocations Setup (SELPA Selection) 

SIAA Summary of Interfund Activities 

TRAN Transportation Report 

TRC Unaudited Actual Technical Review Checklist (Optional/Warning 

Exceptions Only with explanations, no fatal errors.) 

Additional Documentation 

Date Sent 

U/A Official Export DAT file or e-mail to 

Jesus_Holguin@sbcss.k12.ca.us 

Asset/Liability Roll-Edit Report 2011/12 (FY12) FCU167 

(Application-FCALRO) Error Free Front Page 

Closing Entries Report 2010/11 (FY11) FCU168 (Application- 

FCGCUP) Copy of Front Page No Errors 

Closing Entries Journal 2010/11 FCT250 or FCR250 (FY11) 

(Application- FCGCUP) Copy of 1 st page of posted Journal 

Transmittal created after Updated Job Executes 

Submitted 

Please send all applicable items for your district to Lupe Saldivar in BAS, no later than Monday September 15, 2011

Financial Reports - CA Certification 

Individual documents are 

certified as to correctness of 

the data. 

Some reports such as the CEA, 

DAY and TRAN will initiate 

the loss of district $$$ if not 

completed accurately. 

Others such as the Indirect 

Cost Report set a rate that will 

reimburse unrestricted dollars 

to the district. 

While SACS produces the 

GANN report, it still must be 

taken to Board as a separate 

resolution on or before 9/30. 

Certification Page must be 

completed with the date of the 

Board meeting and original 

signature Board Clerk or 

Secretary. 

District must certify each year 

as to the Budget Adoption 

Cycle it plans to follow.

California School Accounting Manual (CSAM) Revisions 

Summary of Changes to CSAM-2008 Edition 

A reference document of changes included in the March 2008 edition of the California School Accounting Manual (CSAM). 

California School Accounting Manual 

Summary of Changes to the 2008 edition 

Procedure Summary of Changes 

301 – Overview of the 

Standardized Account Code 

Structure 

Clarified guidance that required and optional account codes are reported to 

California Department of Education (CDE); locally defined codes must be rolled up 

by the local educational agency (LEA) when reporting data to CDE 

305 – Fund Classification Clarified guidance that required and optional account codes are reported to CDE; 

locally defined codes must be rolled up by the LEA when reporting data to CDE 

310 – Resource 

(Project/Reporting) 

Classification 

Expanded guidance on the appropriate fund(s) to use for charter school reporting 

Added to Fund 49, Capital Project Fund for Blended Component Units, guidance 

on Mello-Roos tax receipts and proceeds 

Expanded guidance on using Internal Service Funds 

Expanded guidance on Fund 73, Foundation Private-Purpose Trust Fund 

Clarified guidance that required and optional account codes are reported to CDE; 


Added various new resource codes 

Deleted outdated resource codes 

Revised titles of various resource codes 

Added revenue object 8311 to Resource 0000, Unrestricted, and to Resource 

2430, Community Day Schools 

Changed Resource 6390, Adult Education Apportionment, from revenue object 

8011 to revenue object 8311 

Changed Resource 6285, Community-Based English Tutoring, from revenue 

designation "D" (deferred revenue) to revenue designation "F" (fund balance) 

320 – Goal Classification Clarified guidance that required and optional account codes are reported to CDE; 


325 – Function (Activity) 

Classification 

Updated applicable examples to use object codes 5710–5750, Transfers of Direct 

Costs, rather than object codes 7370–7380, Transfers of Direct Support Costs 

Clarified guidance that required and optional account codes are reported to CDE; 


Revised title and definition of Function 7210 from "General Administration Cost 

Transfers" to "Indirect Cost Transfers" 

Added goals 7110–7150, Non-agency, to allowable goals that may be used with 

Function 2700, School Administration 

Expanded definition of Function 7700, Centralized Data Processing

330 – Object Classification Clarified guidance that required and optional account codes are reported to CDE; 


Revised label of object codes 1000–7999 from "Expenditures" to "Expenditures 

and Other Financing Uses" 

Added label of "Expenditures" to object codes 1000–7499 

Revised title of Object 1100 from "Teachers' Salaries" to "Certificated Teachers' 

Salaries" 

Revised title of Object 2100 from "Instructional Aides' Salaries" to "Classified 

Instructional Salaries" and clarified in the definition that it includes salaries of noncertificated 

charter school teachers 

Expanded definition of object codes 3000–3999, Employee Benefits 

Expanded definition of object codes 3401–3402, Health and Welfare Benefits 

Expanded definition of object codes 3601–3602, Workers' Compensation 

Insurance 

Expanded definition of object codes 3901–3902, Other Benefits 

Expanded definition of Object 5100, Sub-agreements for Services 

Expanded definition of Object 5200, Travel and Conferences 

Expanded definition of Object 5600, Rentals, Leases, Repairs, and Non-capitalized 

Improvements 

Revised definition of object codes 5700–5799, Transfers of Direct Costs 

Expanded definition of Object 5800, Professional/Consulting Services and 

Operating Expenditures 

Expanded definition of Object 6500, Equipment Replacement 

Revised title of Object 7141 from "Other Tuition, Excess Costs, and/or Deficit 

Payments to School Districts or Charter Schools" to "Other Tuition, Excess Costs, 

and/or Deficit Payments to Districts or Charter Schools" 

Revised label of object codes 7200–7299 from "Other Transfers Out" to 

"Interagency Transfers Out" 

Added "(Obsolete as of 2007-08)" to title and definition of Object 7280, Transfers to 

Charter Schools in Lieu of Property Taxes 

Revised label and definition of object codes 7300–7399 from "Transfers of 

Indirect/Direct Support Costs" to "Transfers of Indirect Costs" 

Added "(Valid through 2007-08)" to titles and definitions of object codes 7370– 

7380, Transfers of Direct Support Costs 

Revised title of Object 7651 from "Transfers from Funds of Lapsed/Reorganized 

LEAs" to "Transfers of Funds from Lapsed/Reorganized LEAs" 

Revised label of object codes 8000–8999 from "Revenues" to "Revenues and 

Other Financing Sources" 

Added a label of "Revenues" to object codes 8000–8799 

Expanded the definition of Object 8011, Revenue Limit State Aid—Current Year 

Expanded the definition of Object 8015, Charter Schools General Purpose 

Entitlement—State Aid 

Expanded the definition of Object 8092, PERS Reduction Transfer 

Added Object 8096, Transfers to Charter Schools in Lieu of Property Taxes

345 – Illustrations Using the 

Account Code Structure 

Expanded the definition of Object 8311, Other State Apportionments—Current 

Year 

Revised label for object codes 8780–8799 from "Other Transfers In" to 

"Interagency Transfers In" 

Added "(Obsolete as of 2007-08)" to title and definition of Object 8780, Transfers 

from Sponsoring LEAs to Charter Schools in Lieu of Property Taxes 

Revised title of Object 8793 from "Transfers of Apportionments from Joint Powers 

Agreements (JPAs)" to "Transfers of Apportionments from JPAs" 

Revised the object code range for "Other Financing Sources" from 8900–8979 to 

8900–8999 

Revised the object code range for "Inter-fund Transfers In" from 8910–8929 to 

8900–8929 

Expanded the definitions of object codes 8980–8999, Contributions 

Added "(Inactive as of 2004-05)" to Object 8997, Transfers of Restricted Balances 

Updated various code references 

Updated miscellaneous text throughout to clarify guidance 

Updated information in various examples including resource titles, object titles, and 

year references 

420 – Prepaid Expenditures Updated information in various examples including resource codes and year 

references 

425 – Fair Value: 

Accounting and Reporting 

for Certain Investments 

615 – Expenditures— 

Coding Examples 

630 – Technology—Coding 

Examples 

640 – Transportation— 

Coding Examples 

655 – Employment 

Separation Costs—Coding 

Examples 

Expanded guidance including updating year references in examples 

Added new recap of Object 9111, Fair Value Adjustment to Cash in County 

Treasury 

Expanded guidance to include examples for direct-charged costs, transfers of 

direct costs, and transfers of indirect costs 

Updated applicable examples to use Object 5710, Transfers of Direct Costs, rather 

than Object 7370, Transfers of Direct Support Costs 

Added summer school and extended year to examples of "other miles" 

Clarified guidance that transporting non-severely disabled students is considered 

home-to-school transportation (Resource 7230) whether or not transportation is 

required by their individualized education programs (IEPs) 

Added guidance that in very limited circumstances (such as when a federal 

program is eliminated), and with prior federal approval, abnormal or mass 

employment separation costs may be allowed as a direct charge to a federal 

program 

710 – Capital Leases Updated dates in the examples to more current years 

720 – Certificates of 

Participation 

Updated dates in the examples to more current years 

755 – Special Education Updated dates in the examples to more current years

775 – Accounting for 

Internal Service Funds 

785 – Postemployment 

Benefits Other Than 

Pensions (OPEB) 

Minor technical fixes to update codes and titles and clarify guidance 

Expanded guidance including general guidelines on proper use, effect of 

postemployment benefits other than pensions, measurement and recognition of 

expenses and liabilities, and addressing surpluses and deficits 

New procedure that incorporates guidance released February26, 2007, in the letter 

"New Financial Reporting Requirements for Postemployment Benefits Other Than 

Pensions" 

810 – Charter Schools Expanded guidance on reporting charter school financial data, including 

appropriate use of Fund 01, General/County School Service Fund; Fund 09, 

Charter Schools Special Revenue Fund; and Fund 62, Charter Schools Enterprise 

Fund 

905 – Documenting 

Salaries and Wages 

910 – Program Cost 

Accounting 

Added guidance that Fund 62 expenditures should include functions most 

descriptive of the activities being performed rather than charging all costs to 

Function 6000, Enterprise 

Updated various Charter School Alternative Form codes to coordinate with 

Procedure 330 object code changes 

Reworked procedure to better present information 

Expanded guidance on cost objectives, including single and multiple cost 

objectives 

Added additional examples of single and multiple cost objectives 

Added guidance on time documentation for supplemental employment contracts 

(i.e., positions worked outside employees' regular workday) 

Expanded guidance on time documentation needed for salaries and wages 

charged to certain unrestricted funding sources, such as an indirect cost activity or 

a state mandated cost program 

Incorporated guidance formerly located in Procedure 910, Program Cost 

Accounting, including documenting salaries and wages to a goal; adjusting state 

costs based on activity work sheets; and cost distributions in lieu of time 

accounting 

Added cautionary note to sample time documents that samples work well in some 

situations but others, such as state mandated programs or programs that require 

identifying direct services to students, may require additional details 

Updated sample personnel activity report to include compensated time off and 

hours (as well as percent of time) spent on each activity/cost objective 

Added guidance on using a blanket semi annual certification to document multiple 

employees working on a single cost objective 

Added External Financial Audit (functions 7190–7191) to central administration 

costs 

Updated applicable examples to use Object 5710, Transfers of Direct Costs, rather 

than Object 7370, Transfers of Direct Support Costs 

Moved the majority of "Documenting Salaries and Wages to a Goal" to Procedure 

905 

Moved "Distribution of Costs Based on Activity Work Sheets" to Procedure 905 

Moved "Cost Distributions in Lieu of Time Accounting" to Procedure 905 

Minor enhancements to clarify and simplify guidance

915 – Indirect Cost Rate Clarified guidance that indirect cost pool generally only includes administrative 

costs charged to an unrestricted funding source (exception is joint powers 

agencies, often funded from a single restricted source) 

Appendix A – Analysis of 

Salaries 

Appendix D – Function 

Codes for Common 

Activities 

Expanded guidance on "excluded" costs, such as sub-agreements for services, 

capital outlay, and other outgo 

Added guidance that indirect costs not claimed under one award may not be 

shifted to another award unless specifically authorized by legislation or regulation 

Added food service and adult education to examples of programs that limit 

recovery of indirect costs 

Expanded guidance concerning administrative cost caps as they relate to the 

indirect cost process 

Moved to Procedure 615, Expenditure—Coding Examples, examples of 

transferring administrative costs other than indirect costs 

Expanded various definitions including administrative costs, consistent cost 

treatment, direct costs, excluded costs, and OMB Circular A-87 

Updated an Education Code Section number 

Distinguished between coding for Superintendent (credentialed) and 

Superintendent (not credentialed) 

Minor revisions to clarify examples, including data processing, salary stipend, and 

staff development and training

Financial Reporting Fund Form Summary 

The Fund Forms display revenues, expenditures, and other financing sources and uses categories by major 

object in the operating statements. It includes year-end asset and liabilities in the fund reconciliation. Each 

Fund type will generate a Fund Report for records downloaded from the Financial Control System. Sub-funds 

are included within the Fund. The Fund reports reflect a three page summary and details revenue, expenditure, 

and other financing sources statement. 

Summary (three page financial summary) 

Revenues: Section A 

Displays current year operating revenues which are income of a recurring or on-going nature, and likely to 

be received year after year. Does not include inter-fund transfers or non-recurring sources (revenues) such 

as proceeds from the sale of sites. This section extracts revenue account summary lines as per the SACS 

defined “roll-up” accounts. Valid accounts will extract from the financial control system objects 8000 – 

8599. 

Expenditures: Section B 

Displays current year operating expenditures that are outgo of a recurring or on-going nature, and likely to 

be expended year after year. Does not include inter-fund transfers or non-recurring uses of revenues 

(expenditures) such as loan repayments. This section extracts expense account summary lines as per the 

SACS defined “roll-up” accounts. Valid accounts will extract from the financial control system objects 

1000 – 7599. 

Excess (Deficiency) of Revenues Over Expenditures Before Other Financing Sources and Uses:Section C 

Compares current operating revenues and expenditures, indicates whether or not revenues and expenditures 

are balanced, and highlights any deficit in current operations. Provides the first line of focus on the on-going 

financial health of the fund. 

Other Financing Sources/Uses: Section D 

Displays all inter-fund transfers plus other current year sources (revenues) and uses (expenditures). The 

other sources/uses are generally of a non-recurring nature, and are not likely to be received or expended year 

after year, such as site sale proceeds (source) and loan repayments (use). Provides information on the 

amount of unrestricted General Fund revenues needed to subsidize restricted programs. Valid accounts will 

extract from the financial control system objects 8900 – 8999 revenue and 7600 – 7999 other expenditures. 

Net Increase (Decrease) in Fund Balance: Section E 

Displays the net change in the fund balance as a result of all current year activities. Does not include the 

current year beginning fund balance (prior year’s ending fund balance).

Financial Reporting - Fund Form Summary 

Fund Balance, Reserves: Section F 

Displays the current year beginning fund balance, current year ending fund balance, and reserves. 

Beginning Balance—As of July 1 (Prior Year): F.1a 

The estimated/unaudited actuals beginning balance must agree with the prior year’s ending balance as 

reported to the California Department of Education. For the budget year, the software automatically 

calculates the beginning balance based on the amount calculated on the estimated/unaudited actuals 

ending balance. 

The Technical Review Checklist will check to ensure that your “July 1” beginning balances agree with 

the prior year ending balances for each fund and resource reported previously to CDE. 

Adjustments: F.1b & F.1d 

A prior period adjustment applies to a correction of an error in the financial statements of a prior period 

or a restatement of the beginning balance when a change in accounting principle cannot be applied 

retroactively. Prior period adjustments or restatements are only applicable to the unaudited actuals 

section of the report. 

Components of Ending Fund Balance 

Non-Spendable Amounts: 9710-9719 

Display the amounts, which are reserved and unavailable for appropriation/expenditures such as: 

Revolving Cash (9711), Stores (9712), Prepaid Expenditures (9713) and General Reserve (9730– 

Education Code Section 42124). 

Actuals data reported in the Cash in Revolving Fund (9130), Stores (9320) and Prepaid 

Expenditures (9330) will be compared to Revolving Cash (9711), Stores (9712) and Prepaid 

Expenditures (9713), respectively. If they do not agree by fund and resource, the software will 

recalculate the reserves to equal the asset amounts. 

Moneys in the General Reserve are not available during the current fiscal year unless the 

provisions of EC Section 42610 are met. 

Restricted Amounts: 9740 

This category is for legally restricted balances such as Economic Impact Aid and any local-defined 

resources (9000-9599) that are established by the district for specific purposes. 

Committed Amounts: 9760 

Display the description and amount of reserves, which have been established by specific board action. 

Committed balances require board action through a resolution prior to June 30 th . These amounts may 

only be revised thorough another board action and new resolution. Typically this category is used 

with Fund 17-20. 

Assigned Amounts: 9780 

Display the description and amount of reserves, which have been established by board policy and are 

typically approved by the Superintendent, CBO or other designee as outlined in the district’s board 

policy. Amounts in this category may be site carryover, special projects or any other amount that is 

needed for a specific reason.

Financial Reporting - Fund Form Summary 

Unassigned/Un-appropriated Fund Balance: 9789-9790 

Reserve for Economic Uncertainties are classified in object 9789 and should be the amount established 

by board policy under GASB54. Object 9789 is only valid in Fund 01 and Fund 17. Un-appropriated 

object 9790 is only allowable in the General Fund for any remaining amounts not classified in the other 

fund balance components. 

Fund Reconciliation: Unaudited Actuals Only 

Display the fund’s assets, liabilities and fund balance at June 30 th . 

Assets: Section G 

Display the general ledger assets as of June 30 th . 

Total Assets (line G-10) must equal Total Liabilities (line H-7) plus Fund Equity (line I). 

Liabilities: Section H 

Display the general ledger liabilities as of June 30th. 

Fund Equity: Section I 

Display the Fund Balance as of June 30th. 

Fund Equity (line I) must agree with the Ending Balance reported on line F-2 of the Fund Balance, 

Reserves section. 

A Technical Review Check is preformed resource by resource to insure that values imported are in 

balance. 

NOTE: Specific descriptions and directions regarding the funds and account groups can be found in the 

California School Accounting Manual (CSAM).

Supplemental Reports – Data Input 

The supplemental data forms are accessed from Forms in the Main Menu and are based on the LEA type and 

reporting period selected in Preferences. The supplemental data forms are designed to provide required 

certifications, permit entry of specific information relating to certain programs, and demonstrate compliance 

with particular requirements. 

Since similarities exist among the forms, listed below are general pointers to enhance your report processing. 

Unlike fund data (except for the interim periods data), supplemental data can be entered, modified, or deleted 

directly in the reports that allow data entry. 

Entering Data 

To record an entry, press the [Enter] or [Tab] key. Pressing the [Enter] key moves the cursor vertically 

to the next entry field. Pressing the [Tab] key moves the cursor horizontally to the next entry field. 

Both of these methods bypass any extracted, calculated, or locked fields. The arrow keys move the 

cursor to the next or previous field (entry, imported, calculated, or locked fields) in the form. 

Entering Cents 

All dollar values display in the SACS software with two decimal places; whole numbers will 

automatically have .00 added to them. 

Type-over 

The default entry/edit mode is type-over. Move the cursor to the proper field and type the new data. 

Inserting/Editing Data 

Pressing F2 or double-clicking on a field allows you to edit the entry. In this mode the default is insert, 

rather than type-over. 

CAUTION: It is best not to edit any of the Interim input fields. Doing so will not affect the form 

you have edited, but may affect the subsequent period form. For example, changing the formula 

displayed on a field in the 1 st Interim AI form will not affect what is entered into the field on the 

open form, but may affect the way that data is displayed on the 2 nd Interim AI form. If you do 

press F2 or double-click on an Interim form input field resulting in displaying the formula and/or 

an error message, press [Escape] to exit. 

Deleting Data–Entered Values 

Pressing the [Delete] key clears data in the highlighted entry field. 

CAUTION: Do not use the space bar to clear an entry; it will cause problems in the database 

and errors in the TRC. 

Deleting Data–Extracted values 

To clear a cell where the data is extracted but can be overwritten (for example, the CASH form), enter 

a zero. If extracted cells are cleared by pressing the [Delete] key rather than entering zero, the cells' 

data may be re-extracted when the form is re-opened, overwriting the deletion every time the form is 

re-opened.

Computations 

The software automatically recalculates the forms with input fields on-screen whenever you change 

the information in a cell and move to another cell via [Enter], [Tab], or an arrow key. 

Mouse Movements 

Only the left mouse button is active within a form. Clicking the left button anywhere in the form will 

move the cursor to that field. Double-clicking on a field allows editing (see Inserting/Editing Data on 

previous page). 

Movement 

Pressing the [Enter] key moves the cursor vertically to the next entry field, while the and keys move to the next 

(or previous) field in the column. [Tab] is used to move right and [Shift][Tab] moves the cursor left to the next entry field. 

Negative Amounts 

Press the key before entering a negative number. To make a previously entered number negative, either press F2 or 

double-click on the field and, with the arrow key, move one space to the left of the first digit, type , then press the 

[Enter] or [Tab] key. 

The following supplemental data forms are fully extracted from the database (similar to the fund forms), and need only be opened 

and printed, if desired: 

Community Day Schools (DAY) 

No Child Left Behind Maintenance of Effort (NCMOE) 

Program Cost Report (PCR) 

Summary of Inter-fund Activities–Actuals (SIAA)/Budget (SIAB) 

Most of the data is for the following forms are extracted from the data base 

Current Cost of Education (CEA) 

GANN Apporpriations Limit (GANN) 

Indirect Cost Rate (ICR) 

Lottery (L) 

Special Education Maintenance of Effort (SMOE) 

Transportation (TRAN) 

NOTE: As with the fund forms, invalid account codes in your database may result in unexpected results in those 

supplemental forms containing extracted data. 

For additional information on the supplemental data forms, see the separate SACS Software Instruction Manual.

FORM A- AVERAGE DAILY ATTENDANCE 

The Average Daily Attendance (ADA), Form A, displays the ADA data for the Second Period Report of 

Attendance (July 1–April 15), for the Annual Report of Attendance (July 1–June 30), and for the revenue limit 

calculation. 

School Districts 

Form A — Unaudited Actuals 

Use the P-2 Principal Apportionment Attendance Reports (Report of Attendance for Pupils Residing 

in the District, and Report of Attendance for Students in County Operated Community Schools and 

Special Education Special Day Class) for the "P-2 ADA" column. 

Use the Annual Principal Apportionment Attendance Report for the "Annual ADA" column. 

Use the ADA reported on the School District Revenue Limit Report for the "Revenue Limit ADA" 

column. 

Form A — Budget 

Estimate the ADA for the P-2 and the Annual Attendance Reports. 

Estimate the ADA to be used for the revenue limit calculation. 

Complete 

Columns from 

corresponding 

Attendance 

Forms 

Line 11 less Necessary Small Schools on Line 

11 must equal R/L ADA 

Amounts must agree with Col 1 “P-2” for 

elements funded from P-2 and Col 2 “Annual” 

for those funded by Annual ADA. 

If in Decline ADA must Agree with Prior Year 

Amounts 

NOTE: Charter schools ADA should not be included in the K-12 ADA portion of these forms. There is 

a separate section on the bottom of Form A to separately account for charter schools ADA.

FORM RL—REVENUE LIMIT SUMMARY 

Form RL recaps data from the Principal Apportionment Revenue Software reports. All Data ID references 

noted in the following section are reported in those reports. 

The SACS software compares the revenue limit data reported on Form RL to data reported in the General 

Fund[CSSF]. Form RL has two columns, one for the year prior to the budget year and one for the budget year. 

Both columns should be completed. For the year prior to the budget year, use the most current Principal 

Apportionment Software, School District Revenue Limit Report[County Revenue Limit Report]. For the budget 

year, we recommend preparing a School District Revenue Limit Report[County Revenue Limit Report] with the 

latest available assumptions.. 

School Districts 

(Lines 1-4) Base Revenue Limit per ADA 

On line 1, enter the amount from the PARAS School District Revenue Limit Report - 

Calculations, Data ID 0025. On line 2, enter the inflation amount, Data ID 0041. On line 3, 

enter the total of the report’s Equalization Adjustment, Data ID 0525, and Miscellaneous 

Adjustments, Data ID 0042 and Meals for Needy/Beginning Teacher’s Add on, Data ID 

0719. Line 4 is the sum of lines 1, 2, and 3; it represents the Base Revenue Limit per ADA 

for your district. 

(Lines 5a, Total Base Revenue Limit 

5b, and 5c) On line 5b, enter the Revenue Limit ADA from the PARAS School District Revenue Limit 

Report, Data ID 0033. The software will automatically multiply the ADA from line 5b, by 

the Base Revenue Limit per ADA on line 5a for your district's total Base Revenue Limit, line 

5c. 

(Lines 6-15) Revenue Limit Subject to Deficit 

On lines 6 through 14, enter the amounts from the PARAS School District Revenue Limit 

Report, Data IDs 0489, 0272, 0090, 0274, 0275, 0276, 0659, 0217, 0552 and 0173, 

respectively. 

(Lines 16-17) Deficit Calculation 

The software will automatically calculate the deficit factor reductions. The deficit factor 

shown for FY1 and the factor shown for FY2 is the deficit factor in the proposed Governor's 

May Revise as of the software update; it can be changed by keying over the existing factor to 

allow for any amendment. 

(Lines 18-23) Other Revenue Limit Items 

On lines 18 through 22, enter the amounts from the PARAS School District Revenue Limit 

Report, Data IDs 0060, 0287, 0288, 0195, 0654, and 0205, respectively. 

NOTE: During the supplemental technical review checks, the software will check to 

see if the sum of lines 21 and 22 (PERS Reduction and PERS Safety 

Adjustment) agrees with Object 8092, PERS Reduction Transfer, reported in 

the General Fund. 

(Line 24) Total, Revenue Limit 

The software will automatically calculate line 24, Total Revenue Limit.

(Lines 25-29) Local Revenue Sources 

On lines 25 through 28, enter the local revenue amounts from the PARAS School District 

Local Revenue Report, Data IDs 0587, 0660, 0588, 0589, 0595 and 0126, respectively. 

Line 29 is automatically calculated and represents the portion of the Revenue Limit to be 

funded from local sources. 

NOTE: During the supplemental technical review checks, the SACS software will 

check to see if the sum of lines 25 through 27 agrees with the sum of objects 

8020 through 8089 reported in the General Fund. 

(Line 30) Charter Schools General Purpose Block Grant Offset 

On line 30, enter the charter school general purpose block grant offset for basic aid districts 

from the PARS School District Revenue Limit Report Data ID 0293. 

(Line 31) State Aid Entitlement 

Line 31 is automatically calculated. This represents the portion of the Revenue Limit to be 

funded by State Aid. 

(Lines 32-40) Other Items 

On lines 32 through 39, enter the amounts from the PARAS Principal Apportionment 

Summary Report, Data IDs 0458, 0634/0629, and 9018, respectively. On line 40, enter other 

adjustments that are not reported on the Principal Apportionment Summary Report. 

LEAs that have a common administration must report a single (combined) Form RL. The 

amounts shown in this Form RL are normally the total of the amounts in the LEAs’ 

individual Form RLs. However, if one of the LEAs (but not both) is a basic aid district (i.e., 

its local revenues exceed total revenue limit so that line 31, State Aid Portion of Revenue 

Limit, in its own Form RL is zero), the calculated line 31 in the combined Form RL will be 

lower than the total of the state aid portion of revenue limit to be funded by the state for the 

two LEAs. The difference is the excess of local revenues over the total revenue limit (lines 

29 and 30 minus line 24) for the basic aid district. In order to calculate the correct total state 

aid in the combined Form RL in this situation and pass the technical review check, show the 

difference as a positive adjustment in line 40, All Other Adjustments. 

(Line 41-42) Line 41 is automatically calculated and it the total of all items listed in Lines 32-40. Line 42 

is also calculated and is the State Aid Portion after adjustments are made for items listed in 

Lines 32-40. 

(Line 43) Enter the total current year State Aid received through June 30 th . 

(Line 44) Line 44 is automatically calculated and represents the state aid portion of revenue limit 

allowed for the current year, including amounts accrued at the end of the fiscal year. 

NOTE: During the supplemental technical review checks, the SACS software will check 

to see if line 42 agrees with Object 8011, Revenue Limit State Aid - Current 

Year, reported in the General Fund. 

(Line 43) Actual Revenue Limit State Apportionment Receipts

Enter the actual amount of revenue limit state apportionment received to date. 

(Line 44) Net Accrual to State Aid – Revenue Limit 

Line 44 is automatically calculated. This is the state aid portion of revenue limit that was still 

to be received from the state as of the Form RL date. 

(Lines 45-49) Other Non-Revenue Limit Items 

On lines 45 through 99, enter the amounts from the PARAS Principal Apportionment 

Summary Report, Data IDs 9001, 9002, 9016, 9017, 0570, 3103, and 9007, respectively.

FORM ASSET—SCHEDULE OF CAPITAL ASSETS 

Form ASSET is used to report changes in the balances of capital assets and accumulated depreciation for the 

fiscal year. This form closely resembles the note disclosure for capital assets required by GASB Statement 34. It 

is divided into two sections: Governmental Activities and Business-Type Activities. Capital assets used in 

general governmental activities accounted for in governmental funds are reported in the Governmental 

Activities section. Capital assets used in business-type activities accounted for in enterprise funds are reported 

in the Business-Type Activities section. Each of these sections is further divided into capital assets that are not 

being depreciated, and capital assets that are being depreciated. 

The schedule of capital assets is completed using extracted, entered, and calculated data. The columns on this 

form are completed as follows: 

Unaudited Balance July 1 

Capital asset ending balances reported in Form ASSET in the prior year are extracted from the database 

into the Unaudited Balance July 1 (beginning balance) column. If capital assets were not reported in 

Form ASSET in the prior year and, therefore, zeros appear in the beginning balance column, report any 

beginning balances in the Audit Adjustments/Restatements column. Beginning balances for accumulated 

depreciation are input as negative numbers. 

NOTE: Manual input is not allowed in this beginning balance column. 

Audit Adjustments/Restatements Column 

Adjustments or restatements that increase the unaudited July 1 balances of capital assets are input as 

positive numbers. Adjustments or restatements that decrease the unaudited July 1 balances of capital 

assets are input as negative numbers. 

Adjustments or restatements that increase the unaudited July 1 balances of accumulated depreciation are 

input as negative numbers. Adjustments or restatements that decrease the unaudited July 1 balances of 

accumulated depreciation are input as positive numbers. 

Audited Balance July 1 

Amounts are calculated beginning with Unaudited Balance July 1, plus Audit 

Adjustments/Restatements. 

Increases Column 

Increases in capital assets are input as positive numbers. Increases in accumulated depreciation are input 

as negative numbers. Amounts in the Increases column are added to the amounts in the Audited Balance 

July 1 column to arrive at the ending balance June 30 column. 

For example, the cost of equipment acquired during the fiscal year is recorded as a positive number on 

the line for Capital Assets Being Depreciated: Equipment, in the Increases column. The increase to 

accumulated depreciation on equipment for the fiscal year is recorded as a negative number on the line 

for Accumulated Depreciation for Equipment, in the Increases column. 

Decreases Column 

Decreases in capital assets are input as positive numbers. Decreases in accumulated depreciation are 

input as negative numbers. The amounts in the Decreases column are subtracted from the amounts in the 

Audited Balance July 1 column to arrive at the Ending Balance June 30 column.

For example, the original cost of equipment that is sold or otherwise disposed of is removed from the 

aggregate balance of equipment and is recorded as a positive number on the line for Capital Assets 

Being Depreciated: Equipment, in the Decreases column. The accumulated depreciation associated with 

the equipment disposed of is removed from the aggregate accumulated depreciation balance for 

equipment, and is recorded as a negative number on the line for Accumulated Depreciation for 

Equipment, in the Decreases column. 

Ending Balance June 30 

Amounts are calculated beginning with the Audited Balance July 1, plus Increases, minus Decreases. 

Amounts in the Ending Balance, June 30 column should be verified to ensure that adjustments, 

increases, and decreases to capital assets have been input correctly and that ending balances agree to 

asset schedules and financial statements. Ending balances are saved by CDE and used for external data 

reporting purposes, and are extracted into the subsequent year's Form ASSET as beginning balances.

FORM CEA – Current Expense Formula/Minimum 

Classroom Compensation 

The Current Expense Formula/Minimum Classroom Compensation, Form CEA/CEB, is used for the following 

purposes: 

· To allow county offices to determine whether the district complies with EC Section 41372, 

Apportionments for the Payment of Salaries of Classroom Teachers, which requires that elementary, 

unified, and high school districts expend at least 60, 55, and 50 percent respectively, of their current cost 

of education for classroom teacher and aide salaries, plus associated benefits. EC Section 41374 

provides for certain school districts with individual class sessions below a certain number of pupils to be 

exempt from the EC Section 41372 requirements. (Enter an "X" on Line 16 of the Form CEA/CEB if 

your district is exempt.) 

· To report the current cost of education (EDP 365). 

The software will automatically generate all sections of this form except optional adjustments reported in Part I, 

Column 4b and Part II, Line 13b (see below for entering data on these lines). 

Part I—Current Expense Formula 

Calculate the current expense formula as follows: 

Column 1 Total Expense for the Year 

The software extracts the data for the total expense for the year from the general ledger Fund 01 

data. 

Column 2 Reductions (Note 1) 

Certain expenditures should be excluded from the Current Expense of Education amount. 

Expenditures for Nonagency (goals 7100–7199), Community Services (Goal 8100), Food 

Services (Function 3700), Fringe Benefits for Retired Persons (objects 3701–3702), and 

Facilities Acquisition and Construction (Function 8500), which are included in Total Expense for 

Year (Column 1), are not included in the Current Expense of Education (Column 3). To exclude 

these expenditures, the software extracts into Column 2 the unduplicated expenditures in the 

referenced goals, functions, and objects. 

NOTES: 

· In addition to fringe benefits for already-retired employees, objects 3701 and 3702 

may include certain allocated costs for past unfunded liabilities relating to active 

employees (see definitions in CSAM). All costs reported in objects 3701 and 3702 are 

excluded from the calculation of minimum classroom compensation. 

· Maintenance Assessment District expenditures are considered to be part of the 

Community Services goal. 

Column 4a Reductions (Note 2—Extracted) 

Certain expenditures are excluded from the Minimum Classroom Compensation calculation. 

Expenditures for transportation (Function 3600), lottery expenditures (Resource 1100), amounts 

paid to nonpublic schools for the education of special education students (Function 1180), and 

certain categorical aid expenditures which are included in Current Expense of Education

(Column 3), are not included in Minimum Classroom Compensation and should be reported as 

Reductions (Column 4a). 

In addition, expenditures for categorical aid programs which do not allow teacher salary 

expenditures or require disbursement of the funds without regard to the requirements of EC 

Section 41372 should be reported as Reductions (Column 4a), thereby reducing the Current 

Expense (Column 5). In other words, if a categorical program has, as its main purpose, activities 

of a specialized nature that normally indicate something other than hiring classroom teachers or 

aides, then the categorical funding is ignored in the minimum classroom compensation 

calculation (i.e., it is reduced from both the numerator and denominator of the calculation). 

Following are a few examples of categorical aid programs and resource codes that are excluded 

from the calculation: 

· Class Size Reduction Facilities (6200) 

· Education Technology (4410) 

· Immediate Intervention/Underperforming Schools (7255) 

· Instructional Materials: Grades 9-12 (7160) 

· Peer Assistance & Review Program for Teachers (7271) 

· School Bus Emissions Reduction Fund (7236) 

Following is the complete list of resource codes extracted as "reductions" in Column 4a and Line 

13a: 1100, 3012, 3013, 3015, 3020, 3031, 3035, 3170, 3172, 3175, 3176, 3177, 3178, 3185, 

3241, 3316, 3326, 3372, 3386, 3411, 3515, 3718, 3816, 3820, 3825, 3831, 3928, 4036, 4045, 

4046, 4047, 4048, 4050, 4123, 4124, 4130, 4140, 4141, 4410, 5035, 5037, 5314, 5315, 5370, 

5451, 5652, 6010, 6030, 6140, 6200, 6210, 6225, 6226, 6240, 6260, 6267, 6280, 6290, 6292, 

6296, 6300, 6330, 6355, 6365, 6377, 6380, 6385, 6386, 6405, 6550, 6701, 6761, 7010, 7021, 

7022, 7026, 7056, 7080, 7126, 7127, 7150, 7155, 7156, 7157, 7158, 7160, 7165, 7170, 7180, 

7185, 7186, 7236, 7255, 7256, 7259, 7268, 7270, 7271, 7282, 7286, 7292, 7296, 7325, 7380, 

7386, 7391, 7396, 7397, and 7398; and functions 1180 and 3600. 

Column 4b Reductions (Note 2—Overrides Column 4a) 

School districts may elect to report the reductions manually in Column 4b if the extracted data do 

not include all of the applicable categoricals. 

NOTE: If an amount (even zero) is entered in any row of Column 4b, or on Line 13b (see 

Part II below), the software switches from using the values in Column 4a/Line 

13a to using only the values in Column 4b/Line 13b; it does not use a 

combination of the two. 

Expenditures of the Restricted Maintenance Account (RMA) (Ongoing and Major Maintenance 

Account, Resource 8150) should not be excluded in Form CEA. They are not "amount[s] 

expended from categorical aid received from the federal or state government which funds were 

granted for expenditures in a program not incurring any teacher salary expenditures or requiring 

disbursement of the funds without regard to the requirements of [EC Section 41372]." 

The RMA exists to demonstrate compliance with the requirement that LEAs who receive Office 

of Public School Construction (OPSC) facility grants must dedicate a certain percentage of their 

operating budgets toward facility maintenance. Moneys contributed to this account are not 

federal or state categorical aid. (Note that Resource 8150 is a local resource, not a state or federal

esource.) Said another way, were it not necessary to demonstrate compliance with OPSC 

regulations, the expenditures in the RMA account would be charged to an unrestricted resource. 

Part II—Minimum Classroom Compensation 

Report the classroom compensation. The software will generate all of this information except for optional 

adjustments reported on Line 13b. 

· Line 13b: Report the salaries and benefits of teachers and instructional aides that were 

deducted in Column 4b (see note above in Column 4b text). 

Part III—Deficiency Amount 

Using information from Form CEA/CEB Parts I and II, Part III indicates if a school district has met the 

minimum classroom compensation percentage required under EC Section 41372. This information will also 

show on Form CA, Unaudited Actuals Certification, on the page titled Summary of Unaudited Actual Data 

Submission. 

· If the percentage is met, Line 5 will be zero. 

· If the percentage is not met, and the district has not indicated they are exempt from the 

requirement, Line 5 will be the amount of the deficiency. In addition, an exception will be reported in 

the Technical Review Checklist. 

· If the district has indicated they are exempt from the requirement, Line 5 will show "exempt."

FORM DAY – COMMUNITY DAY SCHOOLS 

Education Code Section 48660.2(a) requires school districts and county offices of education operating 

community day schools, to report the direct instructional costs and documented support costs of their 

community day school programs. School districts and county offices of education charging noninstructional 

costs to the program must maintain documentation supporting the charges. Refer to the California School 

Accounting Manual for more details. 

Use Form DAY to report the direct costs of the community day school program. The form contains two 

sections: Direct Costs, which contains the expenditure data required from LEAs operating community day 

schools, and the Compliance Calculation, which provides data to help determine compliance with Education 

Code Section 48660.2(b). The form is fully extracted; no input is allowed. 

CAUTION: Incorrect coding will cause an incomplete recording of otherwise allowable expenditures, which 

may result in a decrease in future apportionments. Make sure that all allowable costs are coded to 

Resource 2430, Goal 3550, Community Day Schools, and to only allowable functions and 

objects. 

NOTE: Due to the current flexibility provisions of SBX3 4 (Chapter 12, Statutes of 2009) in effect 

through 2012-13, the EC 48660.2(b) compliance calculation for the Community Day School 

program is applicable only to funding relating to Mandatory Expelled Pupils. All other funding 

formerly restricted to the Community Day School program was made flexible and should no 

longer be reported in Resource 2430. 

Direct Instructional Costs and Documented Support Costs 

Expenditures recorded in Resource 2430, Goal 3550, and functions 1000–1999, 

2000–3600, 3900, 4000–4999, 8100–8400, and 8700 are extracted in this section to report the costs of the 

community day school program. 

Line 7 Total Program Costs 

This expenditure amount will be compared to the revenues generated on behalf of Mandatory 

Expelled pupils while enrolled in community day schools to ensure that at least 90 percent of the 

revenues were spent on direct instructional costs and documented support costs. 

Compliance Calculation 

The compliance calculation portion of Form DAY is automatically calculated to determine compliance with 

Education Code Section 48660.2(b), which requires the SSPI to determine if at least 90 percent of each LEA's 

funding for community day schools was spent on direct instructional costs and documented support costs. If the 

SSPI determines that an LEA is not compliant, a reduction in funding from the next apportionment will be 

made. 

Line A Program Revenues 

The software extracts the revenue limit funding received on behalf of community day school 

pupils from revenues recorded in Resource 2430 with objects 8091, 8099, 8311, and 8319. The 

program revenues extracted from the general ledger (Line A) and the difference between the net 

revenues and the program costs (Line D) are preliminary numbers. The California Department 

of Education (CDE) uses program revenue amounts obtained from the CDE's Principal 

Apportionment Unit to determine compliance with Education Code Section 48660.2(b).

Principal Apportionment Exhibit: Community Day School Additional Funding for Mandatory 

Expelled Pupils District[County] 

Plus 

Line B10 Adjusted Revenue Limit for the Community Day School (Data ID 3379) 

The portion, if any, of the revenue limit funding on Line B-10 relating to 

Mandatory Expelled ADA reported on Line A12 of the Principal 

Apportionment Data Collection form "Report of School District 

Attendance" should be reported in Resource 2430 and will be used by 

CDE in the compliance calculation. 

Line C1 Total Community Day School Additional Funding for Mandatory Expelled 

Pupils (Data ID 3103) 

Line B Net Revenues 

This line equals Line A times 90 percent (.90). 

Line C Program Costs 

This line is the Total Program Cost from Line 7. 

Line D Difference 

This line is the difference between the Total Program Costs on Line C and the Net Revenues on 

Line B. If Line D is positive, the amount is subject to reduction from the next apportionment, 

based on CDE verification.

FORM DEBT – SCHEDULE OF LONG-TERM LIABILITIES 

FORM DEBT – SCHEDULE OF LONG TERM LIABILITIES 

Form DEBT is used to report changes in the balances of long-term liabilities for the fiscal year. This form 

closely resembles the note disclosure for long-term liabilities required by GASB Statement 34. It is divided into 

two sections: Governmental Activities and Business-Type Activities. Liabilities relating to general 

governmental activities accounted for in governmental funds are reported in the Governmental Activities 

section. Liabilities relating to business-type activities accounted for in enterprise funds are reported in the 

Business-Type Activities section. 

The schedule of long-term liabilities is completed using a combination of extracted, entered, and calculated 

data. The columns on this form are completed as follows: 

Unaudited Balance July 1 

Long-term liability ending balances reported in Form DEBT in the prior year are extracted from the 

database into the Unaudited Balance July 1 (beginning balance) column. If long-term liabilities were not 

reported in Form DEBT in the prior year, and, therefore, zeros appear in the beginning balance column, 

report any beginning balances in the Audit Adjustments/Restatements column. Data entry is not allowed 

in the beginning balance column. 

Audit Adjustments/Restatements Column 

Adjustments or restatements that increase the unaudited July 1 balances of long-term liabilities are input 

as positive numbers. Adjustments or restatements that decrease the unaudited July 1 balances of longterm 

liabilities are input as negative numbers. 

Audited Balance July 1 

Amounts are calculated beginning with Unaudited Balance July 1, plus Audit 

Adjustments/Restatements. 

Increases Column 

Increases in the amounts of long-term liabilities are input as positive numbers. The amounts in the 

Increases column are added to the amounts in the Audited Balance July 1 column to arrive at the Ending 

Balance June 30 column. 

For example, the amount of general obligation bonds issued during the fiscal year is recorded on the line 

for General Obligation Bonds Payable, in the Increases column. 

Decreases Column 

Decreases in the amounts of long-term liabilities are input as positive numbers. The amounts in the 

Decreases column are subtracted from the amounts in the Audited Balance July 1 column to arrive at the 

Ending Balance June 30 column. 

For example, the amount of general obligation bond principal payments made during the fiscal year 

decreases the balance of bonds payable, and is recorded on the line for General Obligation Bonds 

Payable, in the Decreases column. 

Ending Balance June 30 

Amounts are calculated beginning with Audited Balance July 1, plus Increases, minus Decreases. 

Amounts in the Ending Balance, June 30 column should be verified to ensure that adjustments, 

increases, and decreases to long-term liabilities have been input correctly and that ending balances agree

to debt schedules and financial statements. Ending balances are saved by CDE and used for external data 

reporting purposes, and are extracted into the subsequent year's Form DEBT as beginning balances. 

Note that obligations relating to postemployment benefits other than pensions (OPEB) are reported in 

two places in the SACS software. The amounts reported represent two different measures for two 

different purposes and should not be expected to match. The Net OPEB Obligation in Form DEBT 

should tie to the amount reported on the Government-wide Statement of Net Assets. It should not be 

expected to match the actuarial accrued liabilities reported in the Criteria and Standards Review. 

Amounts Due Within One Year 

Amounts of long-term liabilities due within one year are input as positive numbers. The amounts in this 

column represent the portion of the long-term liabilities reported in the Ending Balance June 30 column 

that are payable in the next fiscal year. The amount reported as due within one year should not exceed 

the ending balance of the associated liability. If it does exceed the ending balance, "Exceeds ending 

balance" will appear in red on the screen and will also appear on the printed report. Upon closing the 

form, a message will display requesting that the data be input or corrected as appropriate. If the 

condition is not cleared, a technical review check (TRC) exception will occur the next time the Export 

TRCs are run.

FORM L – LOTTERY REPORT 

All lottery revenues must be separately accounted for (Government Code Section 8880.5[e]). Upon selecting 

Form L, the software automatically extracts the actuals data for the Lottery Report. Lottery proceeds are usually 

expended in either Resource 1100 State Lottery (unrestricted) or Resource 6300 Lottery: Instructional 

Materials. However, some LEAs may wish to contribute Resource 1100, State Lottery (unrestricted) into other 

restricted resources. If this is done, then how these contributed amounts are expended must be added manually 

to the Lottery Report. Note that Object 8980, Contributions from Unrestricted Resources, is limited to a debit in 

Resource 1100, only allowing a contribution out of that resource. 

Lottery Funds 

Used to support 

other resources 

must be 

manually added 

back to Lottery 

Report in Col 2

Form GANN – Appropriations Limit 

In November 1979, California voters approved Proposition 4, an initiative that added Article XIII B to the 

California Constitution. This constitutional amendment, popularly known as the Gann Initiative, placed limits 

on the growth of expenditures for publicly funded programs. Division 9 of Title 1, beginning with Section 7900 

of the Government Code, was then added to law to specify the process for calculating state and local 

government appropriation limits and appropriations subject to limitation under Article XIII B of the 

Constitution. These constitutional and statutory sections explain and define the appropriations limit and 

appropriations subject to limitation as they apply to state and local governments, and require that each entity of 

government formally "adopt" its appropriations limit for a given fiscal year. 

In addition, Education Code sections 1629 and 42132 specify that by September 15 (districts) and October 15 

(county offices of education) of each year, the governing boards of districts and county offices of education 

shall adopt a resolution identifying their estimated appropriations limits for the current year and their actual 

appropriations limit for the preceding year. The documentation supporting the adoption resolution shall be made 

available to the public. It is not necessary to submit a copy of the board resolution adopting your 

appropriations limit to the CDE. 

For further information or any questions about the Gann program, please contact Oluwole Olukoya at 916-319- 

0490 (e-mail OOlukoya@cde.ca.gov). 

Form GANN was added to the SACS software to assist LEAs in meeting their constitutional and statutory 

obligations under the Gann Initiative to calculate appropriation limits and appropriations subject to limitation. 

Districts and county offices of education must include their completed Form GANN with their officially 

exported unaudited actual submission. 

Upon opening Form GANN, applicable general ledger, attendance, and revenue limit data are extracted into the 

form. The general ledger account codes and specific forms from which data are extracted are noted on the form. 

In addition, applicable prior year Gann data as reported in the prior year's Form GANN will be preloaded into 

the form. Once the extractions are completed, only a few items remain to be keyed into the form. 

Adjustment columns are available to make any necessary corrections to preloaded or extracted data, for 

compliance with Gann reporting requirements. All adjustments must be explained in the bottom section of Form 

GANN, and documentation supporting the adjustments kept in your files along with a copy of this year's Form 

GANN. 

The following descriptions apply to the two sets of amount columns on Form GANN, unless otherwise noted. 

The first set of columns, 2010-11 Calculations, calculates the 2010-11 appropriations limit and appropriations 

subject to the limit, and the second set of columns, 2011-12 Calculations, calculates the 2011-12 preliminary 

appropriations limit and part of that year's appropriations subject to the limit. The references in the columns 

such as "2010-11 Actual" or "2011-12 Budget" refer to columns on the source documents (Form A) or the type 

of general ledger data (actual or budget) being extracted into Form GANN. 

Section A—Prior Year Data 

School Districts

2009-10 Gann data from the 2009-10 Form GANN are preloaded into the form and include any charter school 

data included in the report. If any data are incorrect or missing, please contact the Office of Financial 

Accountability and Information Services at 916-322-1770 or sacsinfo@cde.ca.gov. 

Line 1 Final Prior Year Appropriations Limit 

Line A1 in the 2010-11 Calculations, Extracted Data column is preloaded from Line D11 in the 

2009-10 Calculations, Entered Data/Totals column of the 2009-10 Form GANN. The amount in 

the 2011-12 Calculations, Entered Data/Totals column is from Line D11 in the 2010-11 

Calculations, Entered Data/Totals column at the end of this form. 

Line 2 Prior Year Gann ADA 

Line A2 in the 2010-11 Calculations, Extracted Data column is preloaded from Line B9 in the 

2009-10 Calculations, Entered Data/Totals column of the 2009-10 Form GANN. The amount in 

the 2011-12 Calculations, Entered Data/Totals column is from Line B9 in the 2010-11 

Calculations, Entered Data/Totals column of this form. 

NOTE: If ADA or any revenue items included in the 2009-10 Gann limit calculation were 

adjusted after you submitted your 2009-10 unaudited actuals to CDE, then you must 

recalculate the 

2009-10 appropriations limit. After recalculating the appropriations limit, determine 

and enter the adjustments in the Adjustments column for lines A1 and A2 in this 

year's Form GANN in order to reflect the correct 2009-10 Appropriations Limit and 

ADA in the Entered Data/Totals column. The amounts entered in the Adjustments 

column require an explanation on the bottom of this year's Form GANN. You must 

keep a copy of the revised calculations in your files along with this year's 

calculations. If an adjustment is entered on Line A2 but not on Line A1, a 

message will display in red above Line A1 and, upon closing the form, a message 

will display. In addition, a fatal Export technical review check exception will 

appear upon running the export TRCs that must be corrected before you will be 

able to officially export your data. 

Lines 3–6 Adjustments to Prior Year Limit 

On Line A3, enter the amount of adjustments to your prior years’ appropriations limits to reflect 

district lapses, reorganizations, and transfers of responsibility where a transfer of appropriations 

limit authority occurred between the district and another local education agency (LEA) that is not 

in direct proportion to the ADA transferred. Enter adjustments to the 2009-10 limit in the 2010- 

11 Entered Data/Totals column, and adjustments to the 2010-11 limit in the 2011-12 Entered 

Data/Totals column. 

On Line A4, enter the amount of any voter approved increases to your 2009-10 appropriations 

limit in the 2010-11 Entered Data/Totals column, and increases to the 2010-11 limit in the 2011- 

12 Entered Data/Totals column. Such increases are usually associated with the approval of a 

parcel tax or some other increase in tax revenues and are only valid for four years, at which time 

the appropriations limit must be adjusted downward to the level it would have been had the 

increases not been approved. 

On Line A5, enter the effect of the lapse of a voter approved increase to your 2009-10 

appropriations limit in the 2010-11 Entered Data/Totals column, and the effect to your 2010-11 

limit in the 2011-12 Entered Data/Totals column (see description for Line A4 above). This

amount will be subtracted from lines A3 and A4 to calculate the total adjustments to the 2009-10 

and 2010-11 appropriations limits on Line A6. 

Line 7 Adjustments to Prior Year ADA 

On Line A7, enter the adjustments to the prior year ADA resulting from district lapses, 

reorganizations, and other transfers, only if an adjustment to the district's appropriations limit is 

entered on Line A3 above. 

Section B—Current Year Gann ADA 

Lines 1–6 Current Year P-2 ADA (From Form A) 

Total K-12 ADA and Total Charter Schools ADA from the 2010-11 Unaudited Actuals P-2 ADA 

and 2011-12 Budget Estimated P-2 ADA columns of Form A are extracted into the respective 

Extracted Data columns. Adjustments to those amounts can be entered into the Adjustments 

columns to meet Gann reporting requirements, but must be explained in detail on the bottom of 

Form GANN. 

Statutory changes included in SBX3 4 (Chapter 12, Statutes of 2009) allowing flexibility in the 

use of certain categorical program funds also suspended ADA reporting requirements for those 

programs. As such, ROC/P ADA and Total Supplemental Instructional Hours (indicated with ** 

on Form GANN), are currently not included in the Gann calculation and their respective lines, 

lines B2 and B4, have been disabled and shaded. 

Lines 7–9 Current Year Other ADA (From Principal Apportionment Attendance Software) 

On Line B7, enter the high school apprentice hours from the Principal Apportionment 

Attendance Software report for the second Principal Apportionment. 

On Line B8, the apprentice hours entered onto Line B7 are divided by 525 to convert them to 

ADA. 

Section C—Local Proceeds of Taxes / State Aid Received 

Lines 1–16 Taxes and Subventions (From Funds 01, 09, and 62) 

General Fund, Charter Schools Special Revenue Fund, and Charter Schools Enterprise Fund data 

for unaudited actuals year 2010-11 and budget year 2011-12 are extracted into the respective 



Form GANN. 

Line C11, Community Redevelopment Funds—If necessary, enter an amount in the Adjustments 

column to adjust the extracted amount to only account for those tax revenues received from 

redevelopment agencies that the redevelopment agency is NOT counting as local proceeds of 

taxes in its own appropriations limit calculation. Enter an explanation on the bottom of Form 

GANN. 

Also included on Line C11 is Supplemental Educational Revenue Augmentation Funding 

(Object 8046) received pursuant to ABX4 26 (Chapter 21, Statutes of 2009). This amount will be 

applicable for fiscal year 2010-11 only.

Line C13, Other Non-Ad Valorem Taxes—If necessary, enter an amount in the Adjustments 

column to adjust the extracted amount to only account for tax revenues (excluding voter 

approved debt service taxes) that are subject to the appropriations limit. Non-tax amounts should 

not be included here. Enter an explanation on the bottom of Form GANN. 

Line C14, Penalties and Interest from Delinquent Non-Revenue Limit Taxes—If necessary, enter 

an amount in the Adjustments column to adjust the extracted amount to only account for those 

penalties and interest for the above taxes. Do not include penalties and interest on other local 

taxes or revenues (e.g., penalties and interest on debt service taxes). Enter an explanation on the 

bottom of Form GANN. 

Line C15, Transfers to Charter Schools in Lieu of Property Taxes (Object 8096), was a new line 

beginning in 2007-08 in response to object code changes for charter schools in lieu of property 

taxes. A credit balance in Line C15 is displayed as a positive amount and a debit balance is 

displayed as a negative amount. 

Lines 17–18 Other Local Revenues (From Funds 01, 09, and 62) 





Form GANN. 

Lines 19–23 Excluded Appropriations 

Lines C19 through C22 require manual input. Only include appropriations made directly or 

indirectly from local proceeds of taxes reported on lines C18 and D7b, or from state aid received 

reported on Line C36. 

On Line C19, enter expenditures in funds 01, 09, and 62, objects 3301 and 3302, for federally 

mandated Medicare. Do not include employer contributions to Medicare that are not mandated 

by the federal government, such as those resulting from negotiated employee contracts or other 

decisions by the LEA. Do not include contributions for OASDI or for alternative retirement 

plans. If no federally mandated Medicare contributions were made, enter zero. If no amount is 

entered on this line, a warning message will display above the line and in a message box 

upon closing the form. 

On Line C20, enter the amounts that represent any expenditures required by the Americans with 

Disabilities Act federal law that are not reimbursed by federal, state, or other sources and which 

are made from local proceeds of taxes reported on lines C18 and D7b, or from state aid received 

reported on Line C36. 

On Line C21, enter the amounts that represent any expenditures required by court order for 

desegregation costs for which the district has not received reimbursement from the state and 

which are made from local proceeds of taxes reported on lines C18 and D7b, or from state aid 

received reported on Line C36 (for court orders imposed on or after November 6, 1979). 

On Line C22, enter the amounts that represent any other expenditures required by court or 

federal mandates imposed on or after November 6, 1979, that are not reimbursed by the state or

other sources and which are made from local proceeds of taxes reported on lines C18 and D7b, 

or from state aid received reported on Line C36. 

Lines 24–36 State Aid Received (From Funds 01, 09, and 62) 





Form GANN. 

Some state aid programs (indicated with ** on Form GANN) have been affected by flexibility provisions enacted by 

SBX3 4 (Chapter 12, Statutes of 2009). Funding for these programs became unrestricted as of 2008-09 and, 

beginning in 2009-10, must be accounted for as Unrestricted, Resource 0000, All Other State Revenue, Object 

8590. As such, the data for these lines are no longer separately identifiable in the SACS Software general 

ledger data and can no longer be extracted. Instead, applicable data must be manually entered into the 

Adjustments columns utilizing the amounts displayed on the following CDE Web sites: 

· For programs paid through the Principal Apportionment, see the Principal Apportionment 

Summary file posted under Funding Excel Files (for the applicable fiscal year and the 

most recent apportionment): 

http://www.cde.ca.gov/fg/aa/pa/index.asp 

· For the Class Size Reduction - Grade Nine program, see the Schedule of Apportionment 

file listed under Morgan-Hart Funding Results (for the applicable fiscal year): 

http://www.cde.ca.gov/fg/aa/ca/mhcsr9thgrade.asp 

Please note that Community Day School Additional Funding amounts on lines 28 and 29 (Resource 2430, 

Object 8311 and Resource 2430, Object 8319) will not be extracted and will require a combined key entry 

into the Adjustments column along with unrestricted Community Day School funding (Resource 0000, Object 

8590). 

Lines 37 Add Back Transfers to County (From Form RL) 

Revenue limit transfers (county office funds transfer) from Line 32 of Form RL 2010-11 

Unaudited Actuals and 2011-12 Budget columns are extracted into the respective Extracted Data 

columns. Adjustments to those amounts can be entered into the Adjustments columns to meet 

Gann reporting requirements, but must be explained in detail on the bottom of Form GANN. 

Lines 39–40 Data for Interest Calculation (From Funds 01, 09, and 62) 



Extracted Data columns to calculate the amount of interest that is to be counted in the LEA's 

appropriations limit. Adjustments to those amounts can be entered into the Adjustments columns 

to meet Gann reporting requirements, but must be explained in detail on the bottom of Form 

GANN. 

Section D—Appropriations Limit Calculations

This section requires no extractions or entered data; it is entirely calculated based on the data in sections A, B, 

and C. 

Lines 1–4 Preliminary Appropriations Limit equals the revised PY appropriations limit times the inflation 

factor (based on price factor published by the Department of Finance) times the program 

population adjustment (change in ADA factor). 

Lines 5–9d Appropriations Subject to the Limit equals the district's local revenues plus state subventions less 

excluded appropriations. 

Line 10 Adjustments to the Limit Per Government Code Section 7902.1 

If there is an amount greater than zero in this field (i.e., your appropriations subject to the 

limit exceed your preliminary appropriations limit), your limit has increased and you need 

to report the increased amount to the director of the state Department of Finance at the 

address on Form GANN. 

Gann Contact Information 

The Gann Contact Person and the Contact Phone Number must be completed in order to do an Official export. 

If the contact information is not completed, a message box stating such will display upon closing the 

form. In addition, the export technical review check GANN-PROVIDE will not pass.

GASB 34 

► GASB 34 

The GASB 34 conversion worksheets will extract payments from the fund statements which then 

provides values for the Government wide Activity and Balance Sheet Statement. 

Long Term Debt closing balances from the prior year have been placed in the SACS Software 

Technical Review to validate that the U/A debt schedule agrees with the district prepared beginning 

balance. This is accomplished by making sure the DEBT Schedule reflect the prior year ending 

balances. Additions should be reconciled to official debt statements and agreements. Reductions should 

reflect payments made during the year shown on the fund statements in object codes starting with 7XXX 

. 

Capital Asset closing balances from the prior year have been placed in the SACS Software Technical 

Review to validate that the U/A asset schedule agrees with the district prepared beginning balance of the 

ASSET report. This is accomplished by making sure the ASSET Schedule reflects the prior year ending 

balances. Additions should be reconciled to Fund Statements Object 6XXX and Facility function 8500. 

Reductions should reflect physical inventories, sales, and depreciation.

GASB 34 - Notes 

I. During year-end closing process: 

1) Reconcile “capital additions report” in the asset DB with the GL system 6XXX objects and anything 

with Function 8500. 

a. Make corrections to asset DB and/or GL system. 

2) Reconcile GLTD schedules to GL. 

a. Split out Interest and Principal 

b. Remember capital lease proceeds in Function 8972 should be just principal amount! (off set 

to 6XXX and entered in asset DB system). 

3) Asset DB system may need to be adjusted to actual cost of asset if initially put in when PO 

generated. Also, asset may include more than one PO especially for buildings. Need to work with 

Facilities Department on this. Do not enter in DB system if “Work in Progress (WIP).” 

4) Work with Accounting and Purchasing to define “capital asset” and fix coding problems (computer 

carts-bundled pricing). 

5) Close DB asset system, run “Depreciation Routine”, print final reports and roll to a new year. 

II. After year-end close and all UA year end forms are finished: 

1) Run GL 6XXX and Function 8500 Final Reports. 

2) In SACS Software-Reports: 

III. Beginning Balance 

IV. Entry – Detail: 

a. Run “Determination of Major Funds” from “Reports” menu. 

1) In reports menu, choose “Entry”. 

2) Print “Detail” Report – review forms. 

3) CE001 Capital Outlay Expense: 

a. Open and print “CE001 Data by Function”. 

b. Open and print “CE001 Data by Object”.

c. Open “Detail” and look at “Default Conversion of Extracted Data”. 

d. Go to your SACS Software User Guide and read the section under “Reports” that refers 

to “Government Wide Reports.” 

e. Analyze the “CE001 Data by Function” and “CE001 Data by Object” reports. These 

numbers tie back to the default conversion. 

1 – If you have dollars in 9410, “Land”, in entry CE001, determine if they belong there. 

Look at “Data by Object Report” and GL reports and identify the entries. If they are 

really Site Improvements, do a “User Adjustment” and move them from Land 9410 to 

Improvement of Site 9420. If they were connected to Building Costs (site preparation for 

relocatables) move them to Building Cost 9430. You may want to start a list of 

adjustment entries (debits and credits). 

f. Work in Progress Adjustment: 

1 – Look at “CE001 Data by FNC”, “CE001Data by Object” reports and GL reports to 

identify the WIP projects (when you are gathering beginning balance information you 

should have gathered YTD info on this also.) 

2 – Remember your other funds – do you have capital projects not finished in them? Are 

there any in Fund 01? 

3 – Make adjusting entries – most of the entries will be between Buildings 9430 and WIP 

9450. 

g. Not Capital Expenditure Adjustment: If you have expenditures that pulled over in the 

default conversion that you do not want to capitalize as an asset (un-reconciled errors in 

GL system not in DB asset system) or Function 8500 activity in Construction Funds 

(Fund 25, 21 legal or contract services), then you can reclassify them here. You will 

need to identify each item and know which fund and asset (Equipment, Buildings) it 

defaulted to. Do a reversing adjustment entry. 

d. Summarize and recap all the adjusting entries and enter in CE001. 

4. CE002 Debt Service Expenses: 

a. Look at default conversation and compare to GLTD Form 97. 

b. The default puts $ in 9669 – other GLTD. You will need to adjust and move $ to 

appropriate 966X account (COPs, Capital Lease Payable). 

c. If your entries do not match your GLTD schedule, refer back to GL entries and your 

reconciliation between GL and GLTD you did in closing your books. Were there 

adjustments in ledgers that were not appropriate? If so, reclassify them to appropriate 

fund and object and asset number (966X). Example: Trade in on capital L/P Xerox 

machines for new machine (LP – incorrectly netted out in GL). Differences in final 

payment and principal balance on schedule-write off.

d. When you are done your conversion entry total should match GLTD Form 97, 9661, 

9662, 9666, 9667, 9668 & 9669 deductions. (This does not address 9664, 9665-later.) 

5. CE003 Debt Insurance: 

a. Look at default entries-these should tie to GLTD Form 97 additions in 9661, 9662, 9666, 

9667 & 9669. This is where I discovered that we had booked our capital lease proceeds 

Object 8972 incorrectly. We had put the whole lease proceeds in 8972, not just principal 

amount OOPS. Audit adjustment (overstated revenue, expenses (6000) and assets). 

Asset DB-too late for corrections in this year will be accounting adjustment next year. 

b. Make adjusting entries as necessary. 

c. Make sure you understand what default entries are doing-investigate if you have 

questions. Example: FN9100 Object 7699 went to Prepaid Expense 9330. We defeased 

same GO Bonds so this is correct. 

6. CE004 Donated & Contributed Capital Assets: 

a. Look at Board reports for donations (capital items (>$5000 in value). 

b. Talk to Purchasing about procedure to input these to Asset DB system and how to 

determine valuation. 

c. Check your internal procedures for ASB capital equipment, etc. (for us-we determined 

that we had no donated capital assets so we had no entries to make). 

7. CE005 Disposal of Capital Assets: 

a. Look at default conversion. If you have Sales of Equipment and Supplies Object 8631 it 

automatically defaults here and to 9440 Equipment. 

b. Talk to Purchasing/Accounting and find out what revenue was for-were there any capital 

assets sold? How do they record sales? 

c. Check with Purchasing on asset DB procedures to delete sold capital purchases. 

1 – This is where I found out that in our Asset DB system they do not “delete” sold, 

missing, stolen/trashed/broken items. They move them to Site 999- disposed assets. That 

way they can still have a record of them if they are recovered because initially we don’t 

know if they are “missing”, stolen or sold. 

2 – Run a report from your asset DP system of “disposed assets” with original cost, 

accrued depreciation and book value. 

3 – Since we have never made entries into GL system for this, make adjusting entries (see 

User Guide). 

Example-demolished old building fully depreciated:

8. CD006-Earned but Unavailable: 

CR 9430 Building for original cost and 

DR 9435 Building for depreciated cost (should be same $) 

Example—disposed of equipment not fully depreciated: 

CR 9440 Equipment for original cost and 

DR 9445 YTD Depreciation and 

DB Object 5800 for Loss on Sale/Disposal of remaining book value. 

a. Mandated cost revenues-you should have a list of all estimated claims (08-09) that you 

filed with your 08-09 claims. This is the total you estimated to receive for activities in 

08-09. 

b. Reconcile actual mandated cost revenues to year in which they pertain. Add up prior 

year (before 08-09) and current year (08-09). 

c. Subtract actual 08-09 revenue from total estimated 08-09 reserves-this is your receivable 

and should be entered as user adjustment crediting 8550 and debiting 9200. 

d. Check your GL and year-end notes and determine if there are other local revenues you 

need to reclassify. (Your auditor may have an opinion on this.) 

9. CE 007 Eliminating of Revenue Relating to Prior Periods: 

a. Mandated Cost Revenues-you should have the dollar amount of mandated cost revenues 

for prior years from calculating CE006 entry. These should be a DR to 8550 and CR to 

9792 F.B. 

b. Review your GL and reclassify any others. 

10. CE008 Liability from Un-matured Interest on LT Debt: 

a. Don’t now what or where to get this info. 

11. CE009 Liability for Compensated Absences: 

a. Again go to your GLTD Form 97. You will need to enter your net adjustment (add 

and/or deduct) to 9665 compensated absence by function here. 

b. Go to your work papers and review the change from prior year. Identify the functions of 

employees in 08-09, get percentage of total and apply percentage to change. NOTE: 

Nothing for 9664. 

c. Enter increases/decreases in user adjustment offset to 9665. 

12. CE010 Expenditures Relating to Prior Periods:

a. Matured LTD. 

b. Compensated absences earned in prior periods paid in current. 

13. CE011 Capitalization of WIP-None (Will need next year and future years-must track WIP). 

14. CD012 Depreciation: 

a. Get this from your asset DB system for current year depreciation. 

b. Review your system and get totals for 

9425 Improvement Sites 

9435 Buildings 

9445 Equipment 

c. Most buildings and site improvement is FN 8500. 

d. For equipment spread by FN according to percentage of new assets look at CE001 data 

by function and make adjustment as seems reasonable. 

e. Document your assumptions. 

15. CE 013 Amortization-Didn’t know where to get this information so left blank. 

16. CE 014 – CE 016-Internal Services Funds-Don’t have information on this-Auditors? 

17. CE 017 – CE 018-Fiduciary Funds-Don’t have these. 

18. CE 019-Elimination of Inter-fund Transfer: 

a. Review default entries – these should balance (must do CE 017 first). I had to make a $1 

entry to balance. 

19. CE 020 Elimination of Inter-fund Balances: 

a. Review entries – no changes (must save CE 018 first). 

20. Save data and print “detail sheets”. 

21. Open “summary and print. Check your reports-Do they make sense? Are they reasonable? 

22. Close “entry”. 

V. Government Wide Conversion: 

1. Open CNVRT form (this will take a while). 

2. Print out “Conversion Worksheet” and look at the numbers. You can see your conversion entries 

and the reference numbers. There is also a place to enter other adjustments.

a. I made an adjustment in the “Other Worksheet Adjustment” column for “Other Post 

Employment Benefits” to record the activity (addition/deletion) I showed on my GLTD 

Form 97 worksheet. 

3. Check your GLTD Form 97 balances against this form. 

a. Beginning balances should match “Funds, Capital Assets and Long-Term Liabilities” 

column. 

b. “Conversion Entries and Other Worksheet Adjustments” columns should match your 

activity. 

c. “Statement of Net Assets” should match your ending balances. 

4. Print, Save and close this form (saving is important). 

5. Go to “Fund Consolidation” tab and print this form. This consolidates all your funds. 

6. Go to “Program Revenues” tab: 

a. I don’t understand what entries I could make here so I left it alone. 

b. Print this form. 

c. Save and close. 

VI. Government Wide Statement of Activities: 

1. Open GSA file. 

2. Print form and close. 

VII. Government Wide Statement of Net Assets: 

1. Open GSNA file. Under Liabilities you will need to spread the total between those due within 

one year and those due in more than one year. You should have this information in your Long 

Term Debt Schedules you used to prepare the GLTD Form 97. 

2. Under Net Assets you will need to spread the total net assets to the lines above. 

a. “Invested in Capital Assets, Net of Related Debt” add up all capital assets listed under 

“Assets” (from land to accumulated depreciation) above and subtract the long-term debt 

in “Liabilities” from above – this net amount should be entered on this line. 

b. “Capital Projects” look at your Funds 21, 25, 30, 35 and 40 ending balances – total and 

put here. 

c. “Debt Service” look at your Fund 51 balance and any special reserves set-aside for debt.

d. “Educational Programs” look at your Fund 01 other designations-Board reserved end 

balance and “Legally Restricted End Balance”. 

e. “Other Purpose-Expendable” look at your Fund 14 Deferred Maintenance balance. 

f. “Other Purpose-Non-expendable” look at Fund 01 and 13 stores, revolving cash reserves 

and economic uncertainty reserves in end balance. 

g. Anything left goes in “Unrestricted” 

h. Print form, save and close. 

VIII. Review all forms, reports and documentation. 

1. Make copies for auditors. 

2. After auditors are finished review notes and make additions/corrections so next year you will be 

able to do this much easier!

PCR/PCRAF - Program Cost Report 

The Program Cost Report, Form PCR, is based on the goal field and calculates, in a standardized manner, funds 

01, 09, and 62 total costs by program (refer to Procedure 910, Program Cost Accounting in CSAM). Form PCR 

is fully automated and does not allow for manual entry of data. Data pulled into the form are extracted from 

both the LEA's general ledger data and software-generated "Object PCRA" adjusting entries created from Form 

PCRAF data. 

Form PCR displays data by goal and consists of the Program Cost Report and four supporting schedules: 

· The Program Cost Report summarizes direct (e.g., direct-charged and allocated) and central 

administration costs by goal. It also displays as "Other Costs" those expenditures with functions not 

already picked up in the specific goal lines. 

· Schedule of Direct Charged Costs (DCC) details the costs of instruction, ancillary service, and 

community service functions, which must always be direct-charged to a goal, and also any support 

function costs that have been direct-charged to a goal. 

· Schedule of Allocated Costs (AC) details Undistributed costs (goals 0000 and 9000) allocated to 

specific goals based on allocation factors (see Form PCRAF for allocation factors). 

· Schedule of Central Administration Costs (CAC) calculates the ratio used to distribute central 

administration costs in Column 4 of Form PCR. This ratio is similar to, but not exactly the same as, 

an indirect cost rate (see Form ICR for the indirect cost rate). 

· Schedule of Other Costs (OC) displays the costs direct-charged to functions 3700 (Food Services), 

6000 (Enterprise), 8500 (Facilities Acquisition and Construction), and 9000–9999 (Other Outgo). 

Five technical review checks relate to Form PCR data: 

· The first two checks look at goal by function combinations: one to verify that expenditures in the 

function ranges of 1000s, 4000s, and 5000s are associated with specific goals and one to verify that 

expenditures in functions 7200–7700 are associated with appropriate goals. 

· The next check verifies that allocation factors have been entered in Form PCRAF for support 

functions with costs in Undistributed goals 0000 and 9000. 

· Another check identifies goals that have allocated costs but contain no direct costs. 

· The last check is to determine whether the total costs in Form PCR agree with total funds 01, 09, 

and 62 general ledger expenditures. 

If the expenditures in Form PCR do not balance to the general ledger data, completing the following checklist 

should bring them into balance: 

· Has Form PCRAF been completed and saved? You must provide allocation factors for all Form 

PCRAF columns that have costs on Line A. 

· Have all technical review checks with a Fatal exception been corrected? Fatal exceptions for 

invalid codes, goal by function combinations, or function by object combinations, must be corrected in 

order for Form PCR to balance. 

Form PCRAF—Program Cost Report Schedule of Allocation Factors 

The Program Cost Report Schedule of Allocation Factors, Form PCRAF, is used to distribute – or allocate – 

among program goals those funds 01, 09, and 62 expenditures that, in addition to having a support function, 

have an "Undistributed" goal (0000 and 9000).

When opened, Form PCRAF automatically extracts into Line A any Undistributed general ledger expenditures 

that must be allocated to program goals. Allocation factors are only needed for columns with amounts on 

Line A. If there are costs on Line A for any of the columns, Form PCRAF must be completed and saved before 

Form PCR will be considered complete (i.e., undistributed costs in goals 0000 and 9000 must be allocated to 

specific goals before Form PCR will balance to total funds 01, 09, and 62 expenditures). 

When completing Form PCRAF, enter allocation factors – FTE Teachers, CUs, or PTs – for all columns that 

have amounts on Line A. For information on how to calculate allocation factors, refer to Procedure 910, 

Program Cost Accounting in CSAM. 

Items of note in Form PCRAF include: 

· Complete counts of allocation factors are required unless specific guidelines are met. For each 

column with costs on Line A, complete counts of allocation factors (FTEs, CUs, or PTs) must be entered 

unless documentation exists to substantiate why the factors are being excluded. For example, if an LEA 

has 6 programs, allocation factors must be entered for all six programs unless documentation shows why 

the factor is being excluded. This is because, if support costs have not already been direct-charged to a 

goal and they are being distributed using the allocation method, the support costs should be split 

proportionately among all programs of the LEA. 

· Some LEAs direct-charge their instruction and instruction-related programs for nearly all of a 

particular support cost and the only portion left in goals 0000 and 9000 is that applicable to the central 

administrative offices. When this occurs, so that the remaining costs are allocated proportionately 

among all of the LEA's goals, enter complete allocation factor counts for the column that corresponds 

with the support cost. For example, an LEA direct-charges its programs for plant maintenance and 

operations and the only costs left in Function 8100, Plant Maintenance and Operations, with Goal 0000, 

are those applicable to the central administrative offices. For the Plant Maintenance and Operations 

column on Form PCRAF, the LEA would enter complete CU allocation factors for all of its programs 

so that the remaining Function 8100 costs are spread proportionately among its programs. 

Once allocation factors (FTEs, CU, PTs) have been entered and Form PCRAF has been saved, opening and 

saving Form PCR prompts the software to create "Object PCRA" adjusting entries that allocate goals 0000 and 

9000 costs to specific goals by crediting (reducing) goals 0000 and 9000 and debiting (increasing) the goals 

where allocation factors were entered. A summary of costs allocated to various goals can be seen in Form PCR, 

Schedule of Allocated Costs (AC).

Form TRAN - Transportation Cost Report 

School Districts generally provide a means of getting their students from the student’s home to the school based 

on residence’s distance from the school. Special Education students often have a requirement in the student’s 

individual education plan that requires transportation services. The costs of providing these services are funded 

with restricted state entitlements. In order to annually receive these funds, LEA’s must document their expenses 

in specific cost centers known as Resources for import into the Standard Account Code Structure’s Annual 

Reporting Software. A supplemental report, the TRAN, extracts the detail from these cost centers and compiles 

the expenditure section of the TRAN report. The TRAN report is structured as an excel workbook. In addition to 

the expenditure data, districts must complete schedules that detail the number of students, days, miles, and buses 

in the transportation program. The schedules also require distribution of costs to specifically identify who 

received the service and who provided the service. 

Preparation 

Transportation Profile - 

Gather Board Policies that establish student transportation procedures. Are services provided by 

contract with private contractor, contract with another LEA, by in lieu payments to parents, by districts 

own bus fleet, or a combination of all of the above? 

Calendar - 

Include Transportation issues in the preparation of the list of key dates and activities for the various 

aspects of year-end closing that are relevant to the district. These dates should include the districts 

deadline dates in addition to the various state and county requirements. Be sure to allow ample time to 

meet the deadlines published by Business Advisory Services, Information Technology, and District 

Financial Services.


Transportation Key Elements – 

Establish closing dates for various activities to ensure staff is aware and able to meet the required reporting 

deadlines. 

Establish dates for the Collection of Pupil Transportation Factors for the PCR and TRAN – Students 

(Regular and those with IEPs), SH/OH Students, Days, Miles for Home-to-School, and Other miles, 

Number of Buses – Additions and Deletions to the fleet. 

Purchasing – establish date to end P.O. requisitions allowing time for receipt of goods and booking 

of actual costs. 

Open Purchase Orders for regular purchases of fuel and parts should be liquidated to reflect only the 

goods received before July 1. 

Accounts Payable – establish procedures for accruing payments not paid by School Claims cut-off 

date. 

Issue Credit Card purchase receipts deadlines for items charged and received before July 1 to be 

accrued and expensed in the books. 

Publish employee reimbursement claim deadlines for timely inclusion of expense in books. 

Insure that all Contract final payments have all been accrued. 

Validate that insurance costs have been charged. 

Validate that PERS reduction costs have been appropriate charged. 

Internal Distribution Charges IN- establish date to end the requisition of supplies from the 

warehouse, central reproduction allowing time for existing requisitions to be filled and 

TRANSPORTATION accounts charged. 

Internal Distribution Charges OUT- establish date to end the requisition of supplies and services 

from the Transportation Department such as fuel usage, field trips, athletic trips, and other miles 

allowing time for requisitions to be filled and TRANSPORTATION accounts are credited. 

Review all Batch Reports and Pending Items for resolution and posting. 

Allocate appropriate maintenance and operation costs. 

Allocate Indirect Costs. 

Review of the 5600 object expenditure records to collect the repair costs provided by other districts 

versus private shops and any bus leases. 

Review the 5800 object expenditure records to collect the payments for home 

to school contract costs to other districts, those paid to private vendors, and 

those paid to parents for in lieu, and those paid to common carriers (public buses and taxies). 

Review of the 6000 object expenditure records to collect any new or replacement bus purchases 

from other equipment purchases. Determine costs for any SH/OH buses purchased from bus replace 

fund or small school bus replacement account. 

Review the 5710 object expenditures and credits to be able to certify costs for 

other miles have been credited to the account.


The California School Accounting Manual defines Pupil Transportation as the “conveying of pupils to and from 

home”. Direct charges to the pupil transportation program include: 

Salaries and Benefits of personnel who are assigned in positions related to the transportation of 

pupils. 

2300 Directors 

2300 Supervisors 

2200 Bus Drivers 

2200 Mechanics 

2400 Transportation Schedulers 

2100 Bus Aides 

2200 Security Aides 

2400 Clerks 

Supplies used in the transportation of pupils 

4360 Fuel (Gasoline, Diesel, etc.) 

4360 Oil 

4360 Tires 

4360 Repair Parts 

4350 Office supplies 

4460 Non-Capital Transportation Equipment 

Services related to the transportation of pupils 

5200 Travel Reimbursement and Training 

5450 Vehicle Insurance 

5630 Contract Repairs 

5630 Rental of Buses 

5630 Rental of Maintenance Equipment 

5810 Contracts for Private Transportation Carriers 

5810 Contracts with Other LEA’s for Transportation 

5810 Common Carrier Transportation (Public Bus and Taxi) 

5810 In-Lieu Parent Pay Transportation 

Acquisition and Replacement of Equipment used for transporting pupils 

6410 General Equipment and Vehicles 

6460 Buses 

6510 General Equipment and Vehicle Replacement 

6560 Bus Replacement


The California School Accounting Manual also provides examples of transportation costs that are not 

appropriate costs to charge to the home to school program. 

Conveying Pupils to and from school activities 

Field Trips 

After School Sports Trips 

Recreation Activities 

Conveying Pupils between schools 

Magnet School Activities 

Special Programs 

Conveying Pupils to after school and summer school programs 

Costs for these transportation services should be distributed to the user programs as direct 

charges (Inter-program 5710). The costs that are distributed should be the actual costs from the bus 

contractor or the fixed rate per mile (District Cost Procedures) plus paid driver’s layover time (District 

Payroll Costs). 

Inter-program Cost Example 

Transportation Services - Many districts use their sc hool buses to take 

students on instructional field trips. 

Establish a cost plan - 

The Transportation Report establishes a rate per mile that 

other miles (field trips) are often charged for use of the 

school bus. 

Charge for trip ( GATE students to Museum) 

01 0000 0 1110 1000 5720 230 0000 $425 Debit 

01 7230 0 0000 3600 5720 000 0000 $425 Credit 

Function of the cost changes from 3600 Pupil 

Transportation to 1000 Instruction to show the end use of 

the service -object nets to zero.


The Transportation Report also provides for allocation costs to be incorporated into the approved costs of Home 

to School expenditures. 

Approved Factors/Function 

Classroom Units (CU) 

8100 Maintenance & Operations 

8110 Maintenance 

8210 Custodial 

8310 Security 

8410 Other Plant/Operations 

8700 Facility Rents and Leases 

The California School Accounting Manual provides one method to distribute these allocated costs to the 

Transportation program. The approved method is by a proration of costs based on square footage of the 

site the Transportation Facility uses. 

Allocated Bases/Factors 

Classroom Units (CU) 

Classrooms, cafeterias, gyms, resource rooms, 

district administration facilities square footage are 

divided by 960 to convert their occupied space to a 

CU. Commonly used floor spaces such as school 

offices, corridors, restrooms, and faculty rooms are 

assumed to benefit each class in same proportions and 

are not included. 

Operational buildings (warehouses, maintenance 

shops and transportation facilities ) are converted to 

CUs by dividing their area by 2,880.


Form TRAN is used to report data for pupil transportation between home and school and includes both general 

ledger data extracted from the database and manually entered data. Since the Form TRAN data will be used 

to calculate the approved cost of transportation for apportionment purposes, it is extremely important 

that all appropriate transportation expenses are properly accounted for in the general ledger. 

All program related transportation required by an individualized education program (IEP) is to be treated as 

mileage between home and school. Data pertaining to pupils transported, where excess costs were paid, should 

not be included on the form; data for these pupils will be claimed by the transporting local educational agency 

(LEA). 

Only approved transportation costs are to remain in Resource 7230 or 7240 when the books are closed. Any 

costs originally charged to these codes for non-transportation costs including, but not limited to, repairs to nontransportation 

vehicles or equipment or the cost of providing "other miles" to your pupils are to be transferred 

out using Object 5710 or 5750. 

Upon opening Form TRAN, all applicable transportation expenditures will be extracted into the form. The 

specific resource, function, and object codes used to identify transportation expenses for the extractions are 

noted on the form. For more information regarding the source of the data extracted into Form TRAN, refer to 

CSAM. 

Once the financial data have been extracted, additional data must be manually entered into Form TRAN. 

Complete each line beginning with ENTER by entering either the applicable data or zero in each column. Do 

not leave any cells blank. Unless otherwise indicated, amounts entered should be positive numbers. 

Schedule I—Pupil Transportation Data 

Line A Buses Used to/from School 

Enter the number of buses used daily. Enter zero if not applicable. The average number of buses 

used to transport pupils daily to and from school should relate to your LEA only. If you 

transported pupils for other LEAs, prorate the buses operated among the users. Include buses you 

operated, buses operated by a private contractor on your behalf, and buses prorated to you by 

another district, county office of education, or joint powers agency (JPA). Do not include standby 

buses, as they replaced buses normally used. Prorate buses between Home-to-School and 

Severely Disabled/Orthopedically Impaired (SD/OI) transportation if used for both. Prorate 

buses to the nearest one-tenth bus. 

Line B1 Pupils Transported Daily 

Enter the average number of pupils transported daily. Enter zero if not applicable. The average 

number of pupils transported daily should relate to your LEA only. Include pupils you 

transported, pupils you paid a private contractor to transport for you, and pupils you paid another 

school district, county office of education, or JPA to transport for you. Do not include pupil data 

for field trips, athletic trips, ROC/P, Cal-SAFE County Classroom, migrant education, county 

community schools, Title I, pre-school, summer school, or other similar programs when 

computing the daily average. 

Guidelines for computing pupils transported daily one-way: 

· If pupils were counted every day (morning and afternoon)—divide the total by 2 to 

get the total pupil days. Divide the total pupil days by the number of days pupils were

transported to and from school during the year (example: 180 or 234) to get the average 

number of pupils transported daily one-way. 

· If pupils were counted once every day—divide the total pupil days by the number 

of days pupils were transported to and from school during the year. 

· If pupils were counted once a month or once every few months—divide the total by 

the number of counts to get the average number of pupils transported daily one-way 

(divide by 2 if pupils were counted morning and afternoon). 

· Do not include extended year days. 

Line B2 Pupils With Transportation in Their IEP 

Enter the number of pupils claimed on Line B1 that had transportation to and from school listed 

in the pupil's IEP. Enter zero if not applicable. Pupils with only program related miles should not 

be included on Line B1 or B2 (but the miles should be included on Line C). 

Line C Total Miles to and From School 

Enter the total miles to and from school for the year. Enter zero if not applicable. The miles to 

and from school should relate to your LEA only. If you transported pupils for other LEAs, 

prorate the miles traveled among the users. Include miles traveled by buses you operated, miles 

traveled by buses operated by a private contractor and reported to you, and miles prorated to you 

by another district, county office of education, or JPA that transported pupils for you. Include 

program related miles required in an IEP. Include miles put on stand-by buses when they 

replaced regular buses. Prorate miles between Home-to-School transportation and SD/OI 

transportation, if used for both. Prorate miles to the nearest one-tenth mile. 

Line D Days Pupils Transported 

Enter 1 for traditional school year (example: 180 day school year), 2 for year-round (example: 

234 day school year), or 3 if some schools transport pupils the traditional school year and others 

transport year-round. Enter one selection per column. 

NOTE: If any of the lines in Schedule I are not completed, a technical review exception 

will be generated. 

Schedule II—Cost Data 

Line C1a Payments to Private Contractors 

Enter that portion of the amount extracted on Line C1 (object 5100) used for payments to a 

private contractor to transport pupils (the buses, pupils, and miles associated with these costs 

should be included in the data reported in Schedule I). Enter zero if not applicable. 

Line D1 Transfer of School Bus Acquisition and/or Replacement Costs 

Enter any portion of capital outlay, lease purchase, and/or debt service expenses extracted on 

Line D in Home-to-School that belongs in SD/OI as a decrease (negative number) to Home-to- 

School and an increase to SD/OI. Line D1 must net to zero. Enter zero in both columns if not 

applicable. 

Lines G1 Reconciliation Amounts 

and G2 Lines G1 and G2 are for use by CDE, but may be used by a district or county office of education. 

You may use Line G1 to include expenditures charged to the fiscal year prior to or subsequent to 

the current year that belong in the current year. You may also use Line G1 to include

unallowable costs you, as a provider, charged to another LEA. You may use Line G2 to exclude 

expenditures charged to the current year that belong in the year prior to or subsequent to the 

current fiscal year. If you forgot to transfer out of Resource 7230 or 7240 any portion of the cost 

of all other miles you may do so on Line G2. You may be asked to explain any amounts listed. 

Line I1 Income Other Than Reimbursements From Districts/County Offices/ Charter Schools/Private 

Schools/Agencies 

Enter on Line I1 any amount included on Line I that represents income for services other than 

transportation provided to other districts, county offices of education, charter schools, private 

schools, or other agencies (i.e., fuel tax reimbursement, insurance recovery, bus trade-in/sale, 

prior year refunds, etc.). Enter zero if not applicable. 

Line K Indirect Costs 

The software calculates the indirect costs by multiplying the LEA’s current year approved 

indirect cost rate times the sum of Line H, Gross Transportation Expense, minus lines C1, 

Subagreements for Services (Object 5100); D, Capital Outlay, Lease Purchase and Debt Service; 

and D1, amount of Line D in Home-to-School that belongs in SD/OI. 

Schedule III—Allowable Transportation Expense 

Line B Deduction for Increased Cost of Court Ordered Transportation (Los Angeles Unified, San 

Bernardino Unified, and San Diego Unified only) 

Enter the amount expended for increased cost of court ordered or voluntary transportation for 

Home-to-School transportation. Do not include buses, pupils, or miles associated with these 

costs in Schedule I. Enter zero if not applicable. 

Lines C1–3 Deduction for Payments to Common Carriers and Parents In Lieu of Transportation 

Enter on Line C1 any payments to common carriers and parents in lieu of transportation included 

in Schedule II, Line C1 provided to your pupils by your LEA. Enter zero if not applicable. (A 

common carrier is a carrier in business for the principal purpose of transporting members of the 

public on a commercial basis. For example, a municipal bus is a common carrier.) Enter on Line 

C2 any payments to common carriers and parents in lieu of transportation included in Schedule 

II, Line C1 provided to your pupils by another LEA providing services to your LEA. Enter zero 

if not applicable. (For Los Angeles Unified, San Bernardino Unified, or San Diego Unified only, 

enter on Line C3 any payments to common carriers and parents in lieu of transportation included 

in the deduction taken on Line B as well as Line C1 or C2. Enter zero if not applicable.) 

Lines D1–3 Deduction for Bus Acquisition and/or Replacement 

Enter on Line D1 the portion of bus payments included in Schedule II, lines D plus D1 that was 

for your pupils (exclude portion other LEAs paid you as part of their costs). Enter zero if not 

applicable. Enter on Line D2 the portion of bus payments included in Schedule II, Line C1 paid 

to another LEA providing services to your LEA (current year portion ONLY). Enter zero if not 

applicable. (For Los Angeles Unified, San Bernardino Unified, or San Diego Unified only, enter 

on Line D3 any bus acquisition and/or replacement included in the deduction taken on Line B. 

Enter zero if not applicable.) 

Lines E1 Deduction for Unallowable Costs 

and E2 Enter the amount of unallowable costs included in Schedule II, Line C1 paid by you to another 

LEA providing services to your LEA. Enter zero if not applicable. (For Los Angeles Unified,

San Bernardino Unified, or San Diego Unified only, enter unallowable costs included in 

deduction taken on Line B. Enter zero if not applicable.) 

Line H2 Cost Per Pupil 

This calculation is completed automatically. However, the calculated cost per pupil should be 

reviewed for reasonableness and consistency with prior years. Please note that excessively high 

or low values may be an indicator of incorrect or omitted data. Values over $6,500 per pupil for 

Home-to-School and over $12,500 per pupil for SD/OI will result in a technical review 

exception, prompting a review of the submitted data. 

Line J1 Unallowable Costs Used To Purchase Buses 

Enter prior year unallowable costs reported to you as used in the current year for bus purchases 

by another LEA providing services to your LEA. Enter zero if not applicable. 

Line L2 Approved Non-SD/OI Transportation Expense 

The software automatically computes an amount equal to the cost of transporting each Home-to- 

School pupil and multiplies that amount times the number of pupils identified as non-SD/OI 

pupils for Line L1. If your records reflect more accurate information, enter the amount on Line 

L2. Enter zero if not applicable. Maintain documentation locally.

Financial Report Completion 

Supplemental Forms provide additional financial information to the Fund Reports. 

The following order is suggested when completing the Unaudited Actuals reports. Any order can be used, the 

following sequence will help to prevent you from receiving error messages simply because certain data has not 

yet been entered and/or verified: 

1. Form A — to calculate attendance for determining revenue limit sources. 

2. Form RL — to calculate the revenue limit sources and reconcile them to the Form K-12, Principal 

Apportionment State Aid. 

3. Form CAT — to calculate the year-end accruals for categoricals prior to reporting in the general ledger. 

4. Fund Data — after accruals entered in General Ledger = extract fund DATA. Final Extract should be 

completed after Year End Close has been executed and posted. (Each time data is imported dependent 

SACS reports must be open and saved.) 

5. Technical Review Checklist, Import and General Ledger — to validate the General Ledger data. 

6. Supplementals that are applicable to various funds and account groups such as 51A, 53A, 76A, 95A, 

ASSET, and DEBT. 

7. Form PCRAF — to provide allocation factors if there are expenditures in support functions with an 

undistributed goal. 

8. Form PCR, CHG, ICR, L, and CEA. 

9. Forms CORR, DAY, SEA, NCMOE, SEAS, SIAA, and/or TRAN, if applicable. 

10. Form CA—Certification pages. (Form CA – Review the Data Summary Worksheet to verify critical data 

elements. 

11. Technical Review Checklist, Supplemental—to validate the supplemental data. 

12. Financial System Closing entries validated, correct any errors in Financial System 

13. Financial System Asset and Liability Automated entries report (FCALRO) validated, correct any errors in 

Financial System. Once all errors are corrected, rerun report. Print extra copy for submission with 

Unaudited Financial Reports. 

14. Extract Preliminary Special Education Maintenance of Effort Reports. Validate special education 

Resources and Goal expenditures are reasonable and that expenses per pupil are equal to or greater than the 

prior year expenses. Make appropriate journal entry corrections. 

15. Review GASB 34 government-wide conversion entries and reports. Reconcile capital outlay and debt 

expenses with Asset and Debt Statements. Make appropriate journal entry corrections.

Financial Reporting – Cont. 

16. Components of Ending Fund Balance, validate desired values, complete budget transfers, if applicable. 

17. Post Year End Closing Entries (FCGCUP). Print extra copy for submission with Unactual Fund Reports. 

18. Download Final Year End values into SACS Software. 

19. Technical Review Checklist, Import and General Ledger—to validate the General Ledger data if 

Components of Ending Fund Balance are entered. 

20. Table of Contents—shows the fund and supplemental reports included in the 2010-11 Budget Report and 

the 2009-10 Unaudited Actuals Financial Report. Upon selecting this form, the software will automatically 

generate the contents based on the information in the software database. In addition, all forms can be 

printed from the Table of Contents window. 

21. Technical Review Checklist, Export Validation—to verify required forms have been completed and 

dependent forms have been opened and saved. 

22. Email DAT File to Jesus Holguin in Business Advisory Services at: 

Jesus_Holguin@sbcss.k12.ca.us 

23. Package Unaudited Actuals Financial Statements, Supplemental Reports, and Requested System reports as 

listed on Financial Report Submission. 

24. Print final Special Education Maintenance of Effort Reports for SELPA. 

25. Print final GASB 34 schedules, conversion entries, and Statements for Auditor.

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