Section Rev 1110.02 - Liabilities, Fund Equity and Other Credits Liabilities, reserves, and fund balances shall consist of LEA debts, plus items which are not debts, but which might become debts at some future time, as well as other budgeting accounts which normally appear only on the interim financial statements, as follows:
(a) Current liabilities shall be for those debts the LEA expects to pay within the next budget cycle, as follows: (1) Account 400, interfund payables, classification shall be used for the sum total of interfund loans and interfund accounts payable, as follows: a. Account 401, interfund loans payable, classification shall be used for a liability account to record a debt owed by one fund to another fund in the same LEA; andb. Account 402, interfund accounts payable, classification shall be used for amounts owed by a particular fund to another fund in the same LEA for goods and services rendered;(2) Account 410, intergovernmental accounts payable, classification shall be used for amounts owed by the reporting LEA to another governmental unit;(3) Account 420, other payables, classification shall be used for the sum total of the LEA accounts, judgments and warrants payable, as follows: a. Account 421, accounts payable, classification shall be used for liabilities on open accounts owing to private persons, firms or corporations for goods and services received by an LEA;b. Account 422, judgments payable, classification shall be used for amounts due to be paid by an LEA as a result of court decisions; andc. Account 423, warrants payable, classification shall be used for amounts due to designated payees in the form of a written order drawn by the LEA directing the LEA treasurer to pay a specific amount;(4) Account 430, contracts payable, classification shall be used for the sum total of the LEA's contracts payable, construction contracts payable and the retainage on construction contracts, as follows: a. Account 431, contracts payable, classification shall be used for amounts due on contracts for assets, goods and services received by an LEA;b. Account 432, retainage on construction contracts, classification shall be used for liabilities on account of construction contracts for that portion of work which has been completed but on which part of the liability has not been paid pending final inspection, or a lapse of a specified time period, or both; andc. Account 433, construction contracts payable, classification shall be used for amounts due by an LEA on contracts for construction of buildings, structures, and other improvements;(5) Account 440, bonds and interest payable, classification shall be used for the sum total of matured bonds payable, bonds payable and unamortized premiums on bonds sold, as follows:a. Account 441, matured bonds payable, classification shall be used for bonds which have reached or passed their maturity date but remain unpaid;b. Account 442, bonds payable, classification shall be used for bonds which have not yet reached or passed their maturity date but are due within one year or less; c. Account 443, unamortized premiums on bonds sold, classification shall be used for an account which represents that portion of the excess of bond proceeds over par value and which remains to be amortized over the remaining life of the bonds; andd. Account 444, bond interest payable, classification shall be used for bond interest due within one year;(6) Account 450, loans and interest payable, classification shall be used for short term obligations representing amounts borrowed for short periods, as follows: a. Account 451, loans payable, classification shall be used for short term obligations representing amounts borrowed for short periods of time; b. Account 452, lease obligations, classificationshall be for current obligations of lease amounts; andc. Account 455, loan interest payable, classification shall be used for interest due within one year;(7) Account 460, accrued salaries and benefits, classification shall be used for salary and fringe benefit costs incurred during the current accounting period which are not payable until a subsequent accounting period;(8) Account 470, payroll deductions and withholdings, classification shall be used for amounts deducted from employees' salaries for withholding taxes and other purposes, including district-paid benefits amounts payable;(9) Account 480, deferred revenues, classification shall be used for a liability account which represents revenues collected before they become due; and(10) Account 490, other current liabilities, classification shall be used for the sum total of deposits payable, amounts due fiscal agents and other current liabilities not provided for elsewhere, as follows: a. Account 491, deposits payable, classification shall be used for liability for deposits received as a prerequisite to providing or receiving services and/or goods;b. Account 492, due to fiscal agent, classification shall be used for amounts due to fiscal agents, such as commercial banks, for serving the LEA's matured indebtedness; and c. Account 499, other current liabilities, classification shall be used for other current liabilities not provided for elsewhere;(b) Long-term liabilities shall be for debt with a maturity of more than one year after the date of issuance, as follows: (1) Account 511, bonds payable, classification shall be used for bonds which have not reached or passed their maturity date and which are not due within one year;(2) Account 521, notes payable, classification shall be used for an unconditional written promise signed by the maker to pay a certain sum of money one year or more after the date of issuance;(3) Account 531, capital lease obligations, classification shall be used for amounts remaining to be paid on capital lease purchase agreements;(4) Account 551, compensated absences, classification shall be used for amounts remaining beyond the period of one year to be paid on compensated absences balances; and(5) Account 590, other long-term liabilities, classification shall be used for other long-term liabilities not provided for elsewhere;(c) Budgeting accounts of categories for budgeted and actual amounts related to expenditures and encumbrances, which are closed at the end of the year, shall appear during the fiscal period, including the following: (1) Account 601, appropriations, classification shall be used for recording authorizations granted to the school board to make expenditures for specific purposes;(2) Account 602, expenditures, a debit classification, shall be used for designating the total of expenditures charged against appropriations during such periods; and(3) Account 603, encumbrances, a debit classification, shall be used for designating obligations in the form of purchase orders, contracts, or salary commitments which are chargeable to an appropriation and for which part of the appropriation is reserved; and(d) Other credits shall consist of fund equity and other residual interests, as follows: (1) Account 720, contributed capital, classification shall be used as an equity account in the proprietary funds which shows the amount of fund capital contributed by the LEA from general government revenue and resources;(2) Account 730, reserve for special purposes retained earnings, classification shall be used for the accumulated earnings of the proprietary funds which have been retained in the fund and which are reserved for a specific purpose;(3) Account 740, unreserved retained earnings, classification shall be used for the accumulated earnings of the proprietary funds which have been retained in the fund and which are not reserved for any specific purpose;(4) Account 750, reserved fund balance, classification shall be used for reserved fund balance as follows: a. Account 751, reserve for inventories, classification shall be used for a reserve representing the portion of a fund balance segregated to indicate that assets equal to the amount of reserve in inventories;b. Account 752, reserve for prepaid expenses, classification shall be used for a reserve representing that portion of a fund balance segregated to indicate that assets equal to the amount of reserve in prepaid expenses;c. Account 753, reserve for encumbrances, classification shall be used for a reserve representing the segregation of a portion of a fund balance to provide for unliquidated encumbrances;d. Account 754, reserve for continuing appropriations, classification shall be used for segregation of a portion of a fund balance which represents the unexpended portion of a special warrant article voted by the legislative body as nonlapsing according to RSA 32:7, VI or by the governing body according to RSA 32:7, V;e. Account 755, reserve for amounts voted from surplus, classification shall be used for segregation of a portion of a fund balance set apart by the legislative body at the annual meeting for a particular purpose in the following fiscal year; andf. Account 756, reserve for endowments, classification shall be used for a reserve representing the principal portion of a nonexpendable trust fund;(5) Account 760, reserve for special purposes fund balance, classification shall be used for a reserve representing a portion of a fund balance segregated for a special unpredicted obligation occurring prior to the end of the fiscal year; and(6) Account 770, unreserved fund balance, classification shall be used for the excess of the assets of a fund over its liabilities and reserves.N.H. Admin. Code § Rev 1110.02
#5072, eff 2-21-91; amd by #6125, eff 11-23-95; ss by #6476, eff 3-26-97; amd by #6869, eff 10-20-98; ss by #8306, eff 3-22-05; ss by #10304, eff 3-22-13