3. EXPENDITURE ACCOUNT CODING SYSTEM
The expenditure account coding system or uniform chart of accounts was developed in accordance with G.A.A.P. by the N.J. State Department of Education, and is required to be used by all New Jersey School districts to enhance uniform reporting.
Each account consists of 15 digits broken down into the following 6 levels:
1. Fund - The first 2 digits identify the fund (current expense, capital outlay, special school and special revenue) which is to be charged. Most expenditures are made out of fund 11, current expense, but fund 12 is used for the purchase of fixed assets (items over $2,000.00), fund 13 is used for Sequoia Alternative School and fund 20 is used for the expenditure of state and federal grant money.
2. Program - The next 3 digits in the expenditure account represents the program code and identifies the broad category of instructional or support service programs of the budgets such as 100 series-regular programs and 200 series-special programs.
3. Function - The next 3 digits represent the function which describes the activity for which a service or material is acquired. The most commonly used function codes are 100, instruction, and 200, support services.
4. Object - The next 3 digits in the expenditure account represent the object code and is used to identify the service or commodity obtained. There are nine major object categories, each of which is further divided.
5. Location - The fifth level is a single digit which identifies the school or building: 0 is District, 1 is Lenape, 2 is Shawnee, 4 is Sequoia, 5 is Cherokee South, 6 is Cherokee North, and 7 is Seneca.
6. Department - The sixth 3 digits of the account identify the department within the school that is making the purchase.
7. Fiscal Year - The final 4 digits of the account (if necessary) identify the fiscal year that the money that has been acquired (Fund 20 or Lease Purchase).A description of all object codes is included in the appendix and should be used to verify account numbers to be charged. It is extremely important that the correct account number be entered on the purchase orders so that our annual financial statements (CAFR) will accurately reflect the districts expenditures. Supervisors should note that the absence of a specific account in a programs budget does not preclude that establishment of the account when operational needs require one. If an account has not been established at the time of budgeting but becomes necessary during the operations of the year, contact the business office for assistance in its establishment. Once established, a transfer of funds can be generated to provide funds in the new account.