Section 92-2-004 - Coding StructureA coding system must be developed which distinguishes revenues from expenditures, identifies source of funds, identifies objects of expenditure, and for school districts, identifies expenses at the school building level. For each type of transaction, the specific account code is a combination that includes fund, function and object codes.
004.01Revenue004.01AFunds. Funds must be established to carry on specific activities to attain certain objectives (see Section 003.03).004.01BRevenue Source. These account codes permit segregation of revenues by the following sources: 004.01B1Local Sources. Revenue from local sources is the amount produced within the boundaries of the school district.004.01B2 County and Educational Service Unit (ESU) Sources. Revenue from county and ESU sources is revenue collected by the county or ESU and distributed to the school districts.004.01B3 State Sources . Revenue from State sources is revenue from funds collected by the State and distributed to school districts.004.01B4Federal Sources. Revenue from federal sources is revenue from funds collected by the Federal Government and distributed to school districts, either directly or through some intermediate agency such as the State. 004.01B5Non-Revenue Receipts. Revenue sources which constitute fund revenues in a strict fund accounting context, but are not considered revenues to the school district (i.e., loans, transfers from other funds, etc.).004.01B6Non-Program Receipts. Revenue resulting from temporary intra-agency transactions with an offsetting entry in the non-program expenditure account (i.e., receipt of transfers from a savings account to a checking account [see 004.02E]).004.01CProject/Reporting. The Project/reporting permits local school districts to accumulate revenues to meet a variety of specialized reporting requirements, particularly for federally funded programs. For example, if school districts participating in Elementary and Secondary Education Act Title 1 utilize both carry-over and current fiscal year funds, it is necessary to establish an accounting system which maintains a clear audit trail on each fiscal year's funds. Likewise, many school districts conduct both school year and summer programs which also necessitates separate accounting and reporting.004.02Expenditure004.02AFund. Funds must be established to carry on specific activities or attain certain objectives (see Section 003.03).004.02BFunction. The function describes the activity for which a service or material object is acquired, exists or is used. Function includes the activities or actions that are performed to carry out the same general operational objectives of a school district.004.02CObject. Object means the service or commodity obtained as the result of a specific expenditure. The NDE has classified objects into seven several major categories: (3) Professional, Technical, and Property;(5) Other Purchased Services;(9) Other. These broad categories may be subdivided to obtain more detailed information about Objects of Expenditures for internal reporting purposes.004.02DSchool Level of Instruction. This permits segregation of expenditures by school building level.004.02ENon-program Expenditures. An expenditure resulting from temporary intra-agency transactions with an off-setting entry in the non-program receipt account (i.e., transferring money from a checking account to a savings account [see 004.01B6]).004.02FProject/Reporting. The project/reporting code permits school districts to record expenditures to meet a variety of specialized reporting requirements, particularly for federally funded programs. For example, if school districts participating in Elementary and Secondary Education Act Title I utilize both carry-over and current fiscal year funds, it is necessary to establish an accounting system which maintains a clear audit trail on each fiscal year's funds. Likewise, many school districts conduct both school year and summer programs which also necessitates separate accounting and reporting.004.03Automated Systems. In automated systems, additional codes may be needed for both the expenditure and the revenue account codes. These additional codes may be developed by local school districts as necessary.92 Neb. Admin. Code, ch. 2, § 004
Amended effective 12/21/2016.Amended effective 11/1/2021