When budgets are filed with the state, districts must show financial information sufficient to enable the SBOE to monitor the funding process, and to determine educational system costs by school district, campus and program.
Districts report budgets and expenditures using an accounting code structure.
Although certain codes within the 20-digit code structure may be used at local option, the sequence of the codes within the structure, and the funds and chart of accounts, must be uniformly used by all school districts in accordance with generally accepted accounting principles. The first three-digit fund code is used for all financial transactions to identify the fund group and specific fund. For example, the primary fund of a district is the general revenue fund from which most salaries and benefits and the majority of operating expenditures come. Special funds are also identified by this code, such as Special Education, Head Start, and Food Service. The four-digit object code identifies the nature and object of an account, a transaction , or a source such as salary and benefits, professional services, supplies, and capital.