Fixed assets could be acquired through capital leases. Refer to the Debt section of this module for a discussion of accounting for assets acquired through capital leases. Such payments are usually recorded as expenditures in the Debt Service Fund when the amount becomes due and payable and not when they accrue. No accruals for interest need to be made for interest accrued at fiscal year end. When funds have been transferred to the Debt Service Fund during the fiscal year in anticipation of making debt service payments shortly after the end of the period, it is acceptable to accrue interest and maturing debt in the Debt Service fund in the year the transfer is made.
Intergovernmental charges relate to transfer of resources from one school district to another.
Such expenditures are accounted for in the General Fund using the modified accrual basis of accounting. In addition, payments between member districts and fiscal agents of shared services arrangements are considered intergovernmental charges. See the Shared Services Arrangements section for additional accounting guidance. In addition, operating transfers result in the reduction of a fund's expendable resources, but they are not classified as expenditures. An operating transfer is a legally authorized transfer between funds in which one fund is responsible for the receipt of funds, and another fund is responsible for the actual disbursement.