Current through Register Vol. 50, No. 3, March 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.
AUTHORITY NOTE:
Promulgated in accordance with
R.S.
17:6 (A)
(10).
