Louisiana Administrative Code › Title 28 - EDUCATION › Part XLI - Bulletin 1929-Louisiana Accounting and Uniform Governmental Handbook › Chapter 5 - Fund Classifications › Section XLI-503 - Governmental Funds

Current through Register Vol. 50, No. 6, June 20, 2024
A. Governmental
				Funds are funds through which most functions are typically financed.
				Governmental funds are accounting segregations of financial resources. Their
				measurement focus is on the determination of short-term financial position and
				on the changes in short-term financial position (sources, uses, and balances of
				financial resources), rather than on net income determination. To achieve this
				current financial resource focus, the modified accrual basis of accounting is
				used. This measurement focus is unique in that generally only current
				expendable financial resources are accounted for in the governmental fund
				category. Capital assets, non-current assets, deferred charges and long-term
				debt are not accounted for within these funds. Within the governmental funds
				category are the five fund types described below.
1. The General Fund. This is the chief
				operating fund of the school district. It is used to account for all financial
				resources of the school district, except those required to be accounted for in
				another fund. A district may only have one general fund.
2. Special Revenue Funds. These funds are
				used to account for specific revenue sources that legally may be expended only
				for specific purposes. Special revenue funds are not used for amounts held in
				trust or for resources that will be used for major capital projects. Some
				examples of special revenue funds are:
a.
				Federal Revenue
i. NCLB Funds-all revenue
				related to the No Child Left Behind (NCLB) including all parts.
ii. Special Education Funds-all revenue
				relating to the Individuals with Disabilities Education Act (IDEA) and all
				related parts.
iii. Other Federal
				Revenue-used to account for all other federal revenue, including, for example,
				Adult Education, Career and Technical Education, and Headstart.
b. Other Revenue
i. School Food Service Funds-all revenue,
				federal, state, or local related to the Child Nutrition Programs including
				School Lunch, School Breakfast, After School Snacks, Catering, and Nutrition
				Education.
ii. Other Special
				Revenue-All state and/or local revenue specifically dedicated for a
				purpose.
3.
				Capital Projects Funds. This fund is used to account for major capital
				acquisitions or construction. These funds are not used for construction
				financed by proprietary or trust funds. A separate Capital Projects Fund is
				usually established when the project exceeds a single fiscal year, when the
				financing sources are provided by more than one fund, or when the capital asset
				is financed by specifically designated resources.
4. Debt Service Funds. This fund is used to
				account for the accumulation of resources to pay the principal and interest on
				general long-term debt. A Debt Service Fund may be used for each obligation;
				however, it should be established only if legally required or if resources are
				being accumulated to meet future payments. When obligations are paid, on a
				current basis, by the General Fund or by a Special Fund, there is no need to
				create a Debt Service Fund unless legally required to do so.
5. Permanent Funds. This fund is used to
				account for resources that are legally restricted to the extent that only
				earnings, and not principal, may be used for purposes that support the school
				district's programs.