Uniform Chart of Accounts An Overview Division of

Uniform Chart of Accounts An Overview Division of School Business

Who needs to know? u Anyone responsible for ensuring the proper use of State or Federal Funds. u Anyone who receives state or federal funds.

Why a Uniform Chart? u General Assembly enacted law in 1975 requiring a uniform system for all local school units, effective July 1, 1976. u Provides the Legislature, general public, and other agencies with a consistent guideline of how funds are used by various groups obtaining public funds (state, federal, local, etc. . ).

Uniform Education Reporting u G. S. 115 C-12 (18)(a): requires local school units “to provide timely, accurate, and complete fiscal and personnel information, including payroll information” to the State Board. u G. S. 115 C-12 (18)(b): requires local school units to comply with the Uniform Education Reporting System (fiscal, personnel, and student data).

Flow of Data from the Units u. The Units receive their allotment (gives them the ATD - Authority to Draw cash) u. Request the cash 2 -3 days prior to writing any checks.

Flow of Data from the Units u. Units write the checks for expenditures ALL Expenditures MUST have the 11 -digit account code u. DPI pulls in data generated by the unit’s general ledger software (data file)

Flow of Data from the Units u. Monthly reports are sent to the unit’s for their review. u. Units make any adjustments as needed. u. Refunds for overspent programs u. Salary audit exception corrections u. Coding or keying errors u. Refunds for mis-use of funds, etc.

Flow of Data from the Units u Quarterly or Monthly reports are sent to the DPI program staff for their review to ensure expenditures are within program guidelines and allowances. u Units and School Business are notified by program staff if any misuse of funding has occurred so the proper action can be taken.

First thing to understand: The Uniform Chart of Accounts

The Basic Account Structure

FUND CODES The Source of $$$ u. State funds = 1 u. Local funds = 2 u. Federal funds = 3 u. Capital funds = 4 u. Child Nutrition funds = 5 u. Others = 6, 7, 8, 9

Building the Account

Function Codes The purpose the activity exists u Asset codes (cash, accounts receivable) u Liabilities, reserves, and fund balance codes (accounts payable, payroll taxes payable) u Revenue codes (allocations from SPSF, tuition, etc. ) u. Purpose codes

Purpose Codes The reason for the expense u 5000 u 6000 u 7000 u 8000 u 9000 - Instructional Programs Supporting Services Programs Community Services Programs Non-Programmed Charges Capital Outlay

Purpose Codes Special differences u. Instructional (5000) vs. Support (6000) u 5100 (regular) vs. 5200 (special) u 5800 series

Instructional Support - 5800 Major Areas u 5810 u 5820 u 5830 u 5840 u 5850 - Library/Media Attendance/Social Worker Guidance Services Health Services Psychological Services

Employee Benefits u 5910 = Benefits for salaries paid from 5000 series codes u 5920 = Additional Pay

Supporting Services - 6000 Main Areas u 6320 - Board of Directors u 6330 - General Administration u 6410 - Office of Principal/Headmaster

Supporting Services cont. u 6520 u 6540 u 6550 u 6560 u 6580 - Fiscal Services Custodial Student Transportation Child Nutrition Maintenance

Building the Account

Program Report Codes Funding for Activities u. PRC (program report code) u. PRC 036 = State Public School Fund for Charter Schools u. Various Federal PRCs

PRC - Program Report Code A PRC is usually a further designation of funding, a “pot of money”

Building the Account

Object Codes Service or Item Obtained u. Salaries = 100 series u. Benefits = 200 series u. Purchased services = 300 series u. Supplies and Materials = 400 series u. Equipment and Capital Outlay = 500 series

Salaries = 100’s u 114 = u 121 = u 139 = u 142 = u 148 = u 151 = u 180 = u 199 = Principal/Headmaster Teachers Other Professional Assignments Teacher Assistants Other Professional - non-certified Office Personnel Overtime Salary - Other Assignments

Benefits = 200’s u 211 = u 229 = u 231 = u 232 = u 234 = u 235 = u 239 = Social Security Other Retirement Hospitalization Workers’ Compensation Dental Life Other Insurance

Purchased Services = 300’s u 311 = u 312 = u 328 = u 332 = u 351 = u 362 = u 371 = Contracted Services Workshop Expenses Energy Costs Travel Advertising Reproduction Field Trips

Supplies & Materials = 400’s u 411 = u 412 = u 421 = u 431 = u 451 = u 462 = Instructional Supplies and Materials Textbooks Library books Food Purchase Non-Capitalized Equipment Non-Capitalized Computer Equip

Capital Outlay = 500’s u 541 = u 542 = u 551 = Capitalized Equipment Capitalized Computer Equipment Vehicles Other Capital codes available for building improvements, etc. (520 series)

Other Object Codes u 620’s = Various Insurance’s u 681 = Debt Service - Principal u 682 = Debt Service - Interest u 700 = Transfers

The Complete Account

3 -5200 -050 -121

A few last thoughts… Every Year the Chart of Accounts is reviewed and updated

The Chart of Accounts gives PERMISSION on how the funds may be spent for a program

The Allotment Policy Manual and Single Audit Compliance supplements also help us ensure the proper use of funds. The communication of these policies and compliance guidelines is critical.

Thank you for taking the time today to meet with us and THANK YOU For your time and effort in helping us ensure the proper use of these funds.

? ? ? ? ? ? ? ? ? ? Final QUESTIONS ? ? ? ?