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Account Code Handbook Has Been Updated to Include the Account Code Structure Used by New World, Our New District Financial System

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Account Code Handbook Has Been Updated to Include the Account Code Structure Used by New World, Our New District Financial System ANN ARBOR PUBLIC SCHOOLS A C C O UN T C O D E H A NDB O O K Prepared by: PURCHASING & B USIN ESS SUPPO R T SE R V I C ES O PE R A T I O NS DI V ISI O N August 2014 IN T R O DU C T I O N This revised version of the account code handbook has been updated to include the account code structure used by New World, our new district financial system. Some of the components will be familiar, and some have been changed to more closely resemble the Michigan Department of Education (MDE) account code structure. While this handbook focuses mainly on general fund expenditure account codes; similar account code structures are used for athletic, trust and agency, building and site, recreation, and grant funds. To take advantage of the maximum flexibility allowed by the Michigan Department of Education (MDE), the school district uses seven­dimension account codes containing twenty­seven digits. The information on the following pages is taken directly from the Michigan Public School Accounting Manual and its recent revisions. This manual establishes uniform classification and recording of accounting transactions for public school districts and academies in the state of Michigan. While the MDE accounting manual remains the authoritative source, this handbook offers a “user­friendly” guide to better understand the Ann Arbor Public Schools’ account codes. All district staff that work with budgets will find it very helpful and a must to have. Karen L. Knight Director Purchasing & Business Support Services August 2014 M I C H I G A N PUB L I C SC H O O L A C C O UN T IN G M A NU A L IN F O R M A T I O N Financial Information Database (FID) In 2002, the Michigan Department of Education mandated changes in the Michigan Public School Account Manual Chart of Accounts. These changes were made in order to use the Financial Information Database (FID) process which replaced the old Education Data Network (EDN). The FID objectives are: To minimize district data entry for financial reporting To replace the aging Education Data Network (EDN) To collect financial data required by federal and state mandates To collect financial data that establishes meaningful relationships with the core data sets. Changes in the Chart of Accounts mandated by Michigan Department of Education MUST be implemented to enable our school district (or any school district in Michigan for that matter) to submit required financial data using the Financial Information Database (FID) process. Non-compliance will mean withholding of state aid for our district. Note that the changes presented in this handbook are only for the Expenditure Chart of Accounts. Numerous changes have also been implemented in the Balance Sheet and Revenue Chart of Accounts. However, these areas are not covered in this handbook. The Purchasing & Business Support Services Office is responsible for building account codes for district staff. We will continue to build appropriate account codes and ensure that these codes are in compliance with FID as well as Michigan Public School Account Manual Chart of Accounts. August 2014 A C C O UN T C O D E ST RU C T UR E E XPE NDI T UR ES Coding Dimensions Account Code Structure Function Codes Object Codes Allowable Function Codes to Use with Object Codes Program/Subject Codes Grant/Activity Codes Location Codes Other/Responsibility Codes C O DIN G DI M E NSI O NS D E F INI T I O NS F UND: An independent fiscal and accounting entity, preferably with a self-balancing set of accounts, with its own assets, liabilities, resources, and fund balances which are segregated for the purpose of carrying on specific activities in accordance with special regulations, restrictions, or limitations. Following are the Funds we have in the school district. N W Code C I MS Code Description N W Code C I MS Code Description 11 01 General Fund 38 2008 Debt Service Fund 11 05 Athletics 39 1995 Debt Service Fund 12 02 Grant Fund 40 08 Capital Needs 23 06 Community Rec & Ed 42 2002 Sinking Fund 25 04 Food Service Fund 43 43 2012 Bond 29 23 Child Care 45 45 2005 Sinking Fund 30 Debt Service Fund - General 46 46 2006 Bond Series II 32 2012 Debt Service Fund 48 48 2008 Bond Series III 33 2003 Debt Service Fund 49 2010 Sinking Fund 34 2004 Debt Service Fund 51 10 Scholarship Funds 35 2412 Debt Service Fund 61 09 Trust & Agency 36 2006 Debt Service Fund F UN C T I O N: Function includes the activities or actions, which are performed to accomplish the objectives of a school or department. They are from the State of Michigan Accounting Manual. In NWS, it is 4 digits and a 1 has been added to the front of all function codes. (Ex. 1XXX) O BJE C T: The service or commodity obtained as the result of a specific activity. In NWS, it has not changed. 1000 Salaries 5000 Supplies and Materials 2000 Employee Benefits 6000 Capital Outlay 3000-4000 Purchased Services 7000 Other Expense 8000 Outgoing Transfers & Other Transactions O BJE C T SU F F I X: Additional information that may be desired to further define the account code. The school district uses suffixes (4th digit in the Object Code) to classify expenditures in even more detail. These are: Suffix 1 Contractual Salaries Suffix 4 Hourly Pay Suffix 2 Supplemental Pay Suffix 5 Non-Salary Items Suffix 3 Fringe Benefits inc: Retirement & Fica PR O G R A M: A plan of activities and procedures designed to accomplish a predetermined objective. We use the Program area to identify core classes and other instructional programs such as: Math, Science, and Social Studies. Also used to designate Special Education disability and grant programs in Fund 12. ACCOUNT CODE STRUCTURE – EXPENDITURES C O DIN G DI M E NSI O NS C O N T INU E D G R A N T/A C T I V I T Y: This dimension is used to identify Grant codes as detailed by the State of Michigan in the Grant Fund 12. In all other funds this code will begin with a ‘9’ and remainder of the code will identify student activities and other district activities L O C A T I O N: This identifies the school/department that originates the transaction. In NWS, the district is now using the state assigned building code for all school buildings. It has not changed for Departments with the exception that it is now 5 digits. The number ‘20’ has been added to all department locations (Ex. Finance was 133 and is now 20133). O T H E R/R ESPO NSIBI L I T Y : This identifies departments, other than building location, responsible for monitoring a specific account code or a group of account codes. In NWS, it is now a 4 digit number and a ‘0’ has been added in front. (Ex. Purchasing Location is 0635) ACCOUNT CODE STRUCTURE – EXPENDITURES Account Code Structure 1 2 3 4 5 6 7 XX XXXX XXXX XXXX XXXX XXXXX XXXX F UND F UN C T I O N O BJE C T PR O G R A M G R A N T L O C A T I O N O T H E R A C T I V I T Y D EPA R T M E N T R ESPO NSIBI L I T Y E X A M P L E 11 1111 5110 0000 0000 00006 0000 G E N E R A L E L E M E N T A R Y SUPPL I ES UN ASSI G N E D UN ASSI G N E D A BB O T UN ASSI G N E D F UND 11 1112 3610 0000 0000 06304 0000 G E N E R A L M IDD L E PRIN T IN G UN ASSI G N E D UN ASSI G N E D C L A G U E UN ASSI G N E D F UND SC H O O L 11 1113 5110 1000 0000 05671 0000 G E N E R A L H I G H SC H O O L SUPPL I ES A R T UN ASSI G N E D H UR O N UN ASSI G N E D F UND 11 1111 3610 2350 0000 05760 0285 G E N E R A L E L E M E N T A R Y PRIN T IN G & SI T E B ASE D UN ASSI G N E D K IN G SI T E B ASE D F UND BINDIN G M A N A G E M E N T I MPR O V E M E N T 12 1112 4230 0922 0005 04131 0000 G R A N T M IDD L E V E H I C L E A2 PT O 2015 G R A N T Y R T APPA N UN ASSI G N E D SC H O O L BUS R E N T A LS T H RI F TSH OP F UN C T I O N C O D ES X X X X F UN C T I O N C O D ES X X X X FIRST DIMENSION – (TWO POSITIONS) – FUND FUND 11. SECOND DIMENSION – (FOUR POSITIONS) – FUNCTION FUN C T I O N X X X X.
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