Interest on long-term debt should be included in direct expenses only when borrowing is essential to the creation or continuing existence of a program. Rather, program revenues will be defined for Texas school districts as those revenues that relate directly to specific function codes. Program revenues derive directly from the program itself or from parties outside the reporting government's taxpayers or citizenry and reduce the net cost of the function to be financed from the government's general revenues. An example would be summer school tuition. Program revenues should not be netted against expenses but should be reported gross.
All revenues are general revenues unless they are required to be reported as program revenues.
General revenues should be reported after total net expense of the district's functions. For a detailed matrix of district revenue codes, see Appendix 1.