Section I - Governmental Accounting

1. Governmental Accounting
2. Measurement Focus Basis of Accounting (MFBA)

Section II - Chart of Accounts

1. Chart of Accounts - Narrative
2. Funds - Listing and Definitions
3. General Ledger Accounts - Listing and Definitions
4. Revenue and Other Financing Source Accounts - Classification Narrative
5. Revenue and Other Financing Source Accounts - Listing and Definitions
6. Expenditures and Other Financing Use Accounts - Classification Narrative
7. Expenditures and Other Financing Use Accounts - Listing and Definitions
8. Objects and Sub-Objects - Listing and Definitions
9. Supplies and Equipment - Narrative
10. Supplies - Alpha Listing
11. Equipment - Alpha Listing and Depreciation Schedules

Section III - Accounting Records

1. Accounting Records
2. Source Documents
3. Books of Original Entry
4. Journals
5. Books of Final Entry
6. Other Accounting Records
Illustrations:
1. Receipt
2. Tally Sheet
3. Purchase Order
4. Voucher for Payment
5. General Journal
6. Cash Receipts Journal
7. Check Register
8. Payroll Journal
9. Purchase Order Journal
10. General Ledger
11. Revenue Budget Record
12. Expenditure Budget Record
13. Governmental Activities (Capital Asset Record and Depreciation Schedules)
14. Registered Warrant Register
15. Minutes
16. Individual Earning Record

Section IV - Cooperatives and Multi-Districts

1. Cooperatives and Multi-Districts

Section V - Federal Grants

1. Federal Financial Assistance
2. Electronic Code of Federal Regulations

Section VI - Budget

1. Budget
2. Budget Preparation
3. Budget Adoption
4. Budget Execution
5. Opting Out Information
   
Illustrations:
1. Budget Proposal by Function/Program
2. Budget Worksheet by Function/Program Object
3. Budget Worksheet by Program by Facility
4. Budget Worksheet of Expenses by Object by Facility
5. Budget Worksheet of Expenditures by Function
6. Budget Worksheet of Food Service Expense by Program
7. Budget Worksheet of Five Year Capital Acquisition Needs
8. Estimated Surplus Fund Balance Worksheet
9. General Fund Budget Means of Finance Worksheet
10. Special Revenue Funds Budget Means of Finance Worksheet
11. Enterprise Funds Budget Means of Finance Worksheet
12. (Proposed) (Annual) Budget and Means of Finance
13. Notice of Hearing
14. Annual Budget Resolution
15. Supplemental Budget Resolution
16. Resolution for Opt Out 64

Section VII - Food Service Accounting

1. Food Service Accounting
2. Introduction
3. Allocation of Costs and Expenses
4. Standard Costs
5. Financial Statements
6. Statement of Operations by Program

Illustrations:

1. Diagram of Funds
2. Checklist for Allocating Costs to Programs/Basis of Allocation
3. A La Carte Equivalents
4. Program Distribution (Labor) Worksheet
5. Prior to GASB 34 Statement of Operations by Program
6. GASB 34 Statement of Revenues, Expenses and Changes in Net Position by Program
7. Net Cash Resources Report
8. Net Cash Resources

Section VIII - Interim Financial Reporting

1. The need for Reports in Addition to the Annual Report
2. The Environment--Some Complicating Factors
3. Interim Reports--How Can They be Useful
4. Conclusion
Illustrations:
1. Summary Financial Report
2. Summary Status of all Funds
3. Summary of Budgeted and Actual Revenue (General Fund)
4. Summary of Budgeted and Actual Revenue (Capital Outlay Fund)
5. Budgeted and Actual Expenditures (General Fund)
6. Budgeted and Actual Expenditures (Capital Outlay Fund)

Section IX - School Laws

1. School Laws

Section X - School Calendar

1. School Calendar

Section XI - School Terms

1. School Terms

Section XII - Interpretations

1. Accounting Interpretation No. 1--Encumbering
2. Accounting Interpretation No. 2--Transportation Costs
3. Accounting Interpretation No. 3--Equipment and Repair of Equipment
4. Accounting Interpretation No. 4--Instructional Programs vs Cocurricular Activities
5. Accounting Interpretation No. 5--Accounting for Unemployment Insurance Benefits
6. Accounting Interpretation No. 6--Interfund Transactions
7. Accounting Interpretation No. 7--Accounting for Long-Term Liabilities
8. Accounting Interpretation No. 8--Accounting for Capital Outlay Certificates
9. Accounting Interpretation No. 9--Direct Expense Accounting for Food Service Fund
10. Accounting Interpretation No. 10--Accounting for and Reporting Taxes Receivable, Tax Revenue and Estimated Uncollectible Taxes Receivable
11. Accounting Interpretation No. 11--Accounting for and Reporting Compensated Absences
12. Accounting Interpretation No. 12--Accounting for Accounting for Accounts Payable in Governmental Funds at June 30
13. Accounting Interpretation No. 13--Purchases from Capital Outlay Fund
14. Accounting Interpretation No. 14--Accounting for Leases
15. Accounting Interpretation No. 15--Accounting for Grant Revenue

Section XIII - Annual Financial Statements

1. Introduction
2. Government-Wide Reporting Versus Fund Financial Statements
3. Changes in Budgetary Reporting
4. Classified Financial Statements Presentation
5. Government-Wide Financial Statements
6. Governmental Fund Financial Statements
7. Proprietary Fund Financial Statements
8. Fiduciary Fund Financial Statements
9. Reconciling from Fund to Government-Wide Statements

Sample Financial Statements and Worksheets

June 30, 2023:
Added the following accounts:

• General Ledger account 216 Intangible Subscription Assets - a capital asset account which reflects the intangible right to use subscription assets.

• General Ledger account 217 Accumulated Amortization – Subscription Assets (Credit) - the accumulation of allocations of estimated amortization of intangible right to use subscription assets.

• General Ledger account 510 Subscription Liability - liability account used to account for present value of subscription payments expected to be made during the subscription period.

• Other financing source account 5128 Subscription Proceeds - to account for proceeds from subscriptions.

Changed the title of revenue account 4133 from Bankhead Jones Farm Tenant (ALN 10.901) to Schools and Roads – Grants to States (ALN 10.665).

Changed the title of revenue account 4155 from Out of School Time Grant (Daycare) (ALN 93.575) to Child Care and Development Block Grant (ALN 93.575).

Changed the federal special education disability category for expenditure functions 2732 and 2752 to Emotional Behavioral Disability.

May 24, 2022:
Added the following accounts:

• General Ledger account 125 Lease Receivable - an amount to be collected by the School (lessor) as the result of right to use lease agreements.

• General Ledger account 214 Intangible Lease Assets - a capital asset account which reflects the intangible right to use lease assets. Lease assets are classified for reporting purposes according to the classification of the underlying capital assets.

• General Ledger account 215 Accumulated Amortization – Lease Assets (Credit) - the accumulation of allocations of estimated amortization of intangible right to use lease assets.

• General Ledger account 508 Lease Liability - liability account used to account for present value of future lease payments to be made by the School (Lessee) for the right to use leased assets.

• Revenue account 4192 American Rescue Plan Funds–IDEA Part B 611 (ARP IDEA 611) (ALN 84.027X) - Funds provided school districts under the American Rescue Plan Act, funds must be obligated by September 30, 2023. The allowable uses of these funds follow the IDEA 611 use of funds to make a free appropriate public education available to children in need of special education and related services.

• Revenue account 4193 American Rescue Plan Funds–IDEA Part B 619 (ARP IDEA 619) (ALN 84. 173X) - Funds provided school districts under the American Rescue Plan Act, funds must be obligated by September 30, 2023. Allowable uses of these funds follow the IDEA 619 use of funds to provide free appropriate public education services to preschool age children in need of special education or related services.

• Other financing source account 5127 Note Proceeds - to account for proceeds from notes issued. This would include the proceeds from a financed capital acquisition contract.

• Object code 570 Intangibles - expenditures for acquiring items that lack physical substance and that are neither financial in nature nor primarily held for directly obtaining income or profit.

Changed the following General Ledger account titles and/or definitions:

• 192 Prepaid Expenses Items- disbursements entered in the accounts for benefits not yet received. Prepaid items differ from deferred charges in that they are spread over a shorter period of time than deferred charges and are regularly recurring costs of operation.

• 193 Unamortized Discounts on Bonds Debt Sold- that portion of the excess of the face value of bonds debt over the amount received from their sale which remains to be written off periodically over the life of the bonds debt.

• 206 Construction/Development Work in Progress- the cost of construction or development work undertaken but not yet completed.

• 509 Other Long-Term Liabilities - Noncurrent liabilities other than bonds a liability account used to record other types of long-term debt. Includes long-term notes payable.

• 559 Other Deferred Inflows of Resources - an account to record other acquisitions of nets position by the government that is applicable to a future reporting period. For a lessor this would include inflows from the right to use lease agreements that relate to future periods.

Changed the following Revenue account titles and/or definitions:

• 5124 Capital Lease Proceeds - the total amount of capital leases entered. proceeds received by the lessee from a lease agreement in the amount equal to present value of the lease liability.

• 51269 Other Debt Issued - proceeds from other long-term liabilities not covered above.

• 51276 Refunding Capital Outlay Certificates Issued - proceeds from the sale of capital outlay certificates to refund the original certificate issue.

Changed the following Object titles and/or definitions:

• 611Redemption of Principal - expenditures which are from current funds to retire the principal portion of bonds, capital outlay certificates, notes, capital leases and other types of long-term debt.

• 612 Interest - expenditures from current funds for interest on bonds, capital outlay certificates, notes, capital leases and other types of long-term debt.

June 18, 2021:
Deleted the following Fund and account:

• Fund 24 Pension Fund-a fund established by SDCL 13-10-6 for the purpose of financing payments to SDRS and to finance early retirement programs. Levy for this fund repealed effective January 1, 2017, fund may be continued to be used through FY2020.

• Fund balance account 725 Pension-fund balance legally restricted by state law for purposes as defined for the Pension Fund.

April 13, 2021:
Added the following accounts:

• Revenue account 4191 Elementary and Secondary School Emergency Relief (ESSER III) Funds (CFDA #84.425U) - Funds provided school districts under the American Rescue Plan Act, funds must be obligated by September 30, 2024. Some of the allowable uses of the funds; address learning loss, preparing schools for reopening and testing, repairing and upgrading projects to improve air quality in school buildings.

March 4, 2021:
Added the following accounts:

• Revenue account 4190 Elementary and Secondary School Emergency Relief (ESSER II) Funds (CFDA #84.425D) -Funds provided school districts under the Coronavirus Response and Relief Supplemental Appropriations Act, 2021, funds must be obligated by September 30, 2023. Some of the allowable uses of the funds; address learning loss, preparing schools for reopening and testing, repairing and upgrading projects to improve air quality in school buildings.

• Revenue account 4195 Governor’s Emergency Education Relief (GEER I) Funds –(CFDA #84.425C) -Funds to provide emergency assistance to schools as a result of COVID 19 pandemic. Funds must be obligated by September 30, 2022.

• Revenue account 4196 Governor’s Emergency Education Relief (GEER II) Funds (CFDA #84.425C) -Funds to provide emergency assistance to schools as a result of COVID 19 pandemic. Funds must be obligated by September 30, 2022.

December 10, 2020:
Added the following account:

• Revenue account 4129 Other Unrestricted Grants-in-Aid Received from the Federal Government through the State -other unrestricted federal grants received through the State by the School District.

June 8, 2020:

• Implementation of GASB 84 Fiduciary Activities required the manual to be updated to change the title of Agency Funds to Custodial Funds. Implementation of GASB 84 also made significant changes to the following financial statements: Statement of Fiduciary Net Position (Exhibit 8) and Statement of Changes in Fiduciary Net Position (Exhibit 9).

June 18, 2018:
Added the following accounts:

• Revenue account 4153 Title IV, Part A - Student Support and Academic Enrichment Program (CFDA 84.424)-to improve student’s academic achievement by increasing the capacity of States, local educational agencies, schools and local communities to: (1) provide all students with access to a well-rounded education; (2) improve school conditions for student learning; and (3) improve the use of technology in order to improve the academic achievement and digital literacy for all students.

• Revenue account 1489 Technical Studies
  
  
• Expenditure account 1589 Technical Studies-associates of applied science degree option that stacks a completed technical institute diploma or certificate with general education coursework and a customized mix of business and technical coursework. The degree leads to increased marketability, career advancement, and likely greater earnings for graduates.

Changed the following accounts:

• General Ledger account 170 Inventory of Supplies Inventories-materials and supplies- the cost of supplies on hand not yet distributed to requisitioning units materials and supplies on hand for future consumption.

• General Ledger account 171 Inventory of Stores Purchased for Resale Inventories-stores for resale - the value of goods purchased and held by a school district for resale rather than for the use in operations.

• Revenue account 3113 Wind Farm Renewable Facility Taxes-an annual tax on capacity and a gross receipts tax on certain wind farms and solar facilities. Districts that have wind farms or solar facilities will annually receive their proportionate share of taxes from the county auditor shortly after May 1st of each year. (SDCL 10-35-21)

• Revenue account 3125 Associate Instructors (Mentor Teachers) Mentor Teacher Program- revenue from the state as established by SDCL 13-43-55 13-43-55.1 to create a pilot program to provide for the mentoring of teachers new to the profession. The program shall provide a new teacher access to a mentor teacher for a period of two years. Participation in the program is discretionary with each school district. Each person selected to be a mentor teacher is eligible to receive a stipend of two hundred dollars.

• Other Financing Source account 5123 Premiums on Bonds Debt Issued - the portion of the sales price of bonds debt in excess of their par value.

• Other Financing Use account 8150 Discounts on BondsDebt Issued - The excess of the face value of bonds debt over the amount received from their sale (excluding accrued interest and issuance costs)

April 26, 2016 (Effective July 1, 2016 (FY2017)):
Added the following accounts:

• Revenue account 1331-Summer School Tuition for Credit Classes
• Revenue account 1332-Summer School Tuition for Non-Credit Activities
• Revenue account 1340-Preschool Tuition
• Revenue account 4149-Other Restricted Grants in Aid Directly from Federal Government
• Other Sources account 5127-Refunding Capital Outlay Certificates Issued
• Expenditure function 1140-Summary reporting only–may not code expenditures directly to 1140
• Expenditure function 1141-Regular Preschool
• Expenditure function 1142-Title I Preschool
• Object 110-Summary reporting only-may not code expenditures directly to 110
• Object 111-Certified Staff Salaries
• Object 112-Instructional Aides/Paraprofessionals Salaries
• Object 113-Administrative Salaries
• Object 114-Classified Staff Wages
• Object 119-Other Compensation
• Object 410-Summary reporting only-may not code expenditures directly to 410
• Object 411-Non-Technology Supplies
• Object 412-Technology Supplies
• Object 413-Motor Fuel
• Object 420-Summary reporting only-may not code expenditures directly to 420
• Object 421-Printed Textbooks
• Object 422-Instructional Software
• Object 423-Electronic Textbooks
• Object 424-Instructional Workbooks & Classroom Subscriptions
• Object 425-Periodicals (moved from 440)
• Object 473-Computer Licensing Fees

Deleted the following Accounts:

• Revenue account 1314-Preschool Tuition (moved to 1340)
• Revenue account 1962-Judgements (use 1960 Judgements-duplication)
• Revenue account 2500-Pension Revenue
• Revenue account 3122-Training & Support to Teachers and School Leaders
• Revenue account 4136-Technology Challenge Grant
• Revenue account 4145-ARRA Impact Aid, School Construction Formula Grant
• Revenue account 4156-Enhancing Education through Technology, Part D of Title II
• Revenue account 4191-ARRA School Improvement Grant
• Expenditure function 1310-Adult Education & Family Literacy
• Expenditure functions 2711 thru 2726-Special Education Administrative Costs (use 2710 for all administrative expenditures)
• Object 440-Periodicals (moved to 425)

Changed the following terminology (throughout all of Section 2):

• Term “LEA” has been replaced by “school district”
• Term “pupil” has been replaced by “student”
• Term “Latchkey” has been replaced by “Before and After School Programs”

Many definitions or descriptions in Sections I and II of the School Accounting Manual have been updated to make them clearer or easier to understand or to remove unneeded or incorrect references. Please take some time to review these sections of the chart of accounts and to update printed manuals.

April 30, 2015:
Added the following General Ledger accounts and definitions:

• #196 Net Pension Asset— account used to record the amount  in which the pension plan’s fiduciary net position exceeds the total pension liability.
• #250 Deferred Outflows of Resources
• #252 Pension Related Deferred Outflows-pension related components that represent a consumption of net position applicable to future reporting period.
• #507 Net Pension Liability-account used to record the amount in which the total pension liability exceeds the pension plan’s fiduciary net position
• #550 Deferred Inflows of Resources
• #553 Taxes Levied for Future Period-taxes that do not qualify for recognition as revenue as they are levied to finance the following year’s budget.
• #554 Pension Related Deferred Inflows-pension related components that represent an acquisition of net position applicable to a future reporting period

Added the following Revenue account and definition:

• #2500 Pension Revenue-account used to record revenues in relation to its pensions payable to employees.

Changed the following Expenditure/Expense account name and definition:

• #4700 Pension Expense/ Pension-account used to record payments and charges to expense in relation to its pensions payable to employees.

Deleted the following Expenditure/Expense account:

• #4800 Pension Payments

April 11, 2014:
Added the following accounts:

• #250 Deferred Outflows of Resources
• #251 Deferred Charge on Refunding
• #259 Other Deferred Outflows of Resources
• #550 Deferred Inflows of Resources
• #551 Unavailable Revenue-Property Taxes
• #552 Unavailable Revenue-Utility Taxes
• #559 Other Deferred Inflows of Resources

Added the following Current Liability Account #475 Unearned Revenue
Deleted the following accounts:

• #194 Deferred Charges
• #474 Deferred Revenue

Changed the presentation of the Government-wide Statement of Net Position (Exh.I), Statement of Net Position-Proprietary Funds (Exh. V), and the Statement of Net Position-Fiduciary Funds (Exh. VIII) from the “balance sheet” format to the “statement of net position” format.