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Financial Accounting for Local and State School Systems, 2003 Edition



Account Classification Description
Quick Code Finder by Number/Category
Code Descriptions in Alphabetical Order

Table of Contents
Introduction
Uses of Information
Budgeting
Governmental  Accounting
Financial Accounting
Cost Accounting and Reporting for Educational Programs
Activity Fund Guidelines
Summary of Account Code Changes and other Appendices
PDF File (1044 KB)

Contact:
Frank Johnson
(202) 502-7362



Chapter 6, Account Classification Descriptions

Classifications of Revenue and Other Financing Sources

Revenues
 Code  Description
1000 Revenue From Local Sources
 
1100 Taxes Levied/Assessed by the School District. Compulsory charges levied by the school district to finance services performed for the common benefit.
 
1110* Ad Valorem Taxes. Taxes levied by a school district on the assessed value of real and personal property located within the school district that, within legal limits, is the final authority in determining the amount to be raised for school purposes. Separate accounts may be maintained for real property and for personal property. Penalties and interest on ad valorem taxes should be included in account 1140.
 
1120* Sales and Use Taxes. Taxes assessed by the school district imposed on the sale and consumption of goods and services. They can be imposed on the sale and consumption either as a general tax on the retail price of all goods and/or services sold within the school district jurisdiction, with few or limited exemptions, or as a tax on the sale or consumption of selected goods and services. Separate accounts may be maintained for general sales tax and for selective sales taxes. Penalties and interest on sales and use taxes should be included in account 1140.
 
1130* Income Taxes. Taxes assessed by the school district and measured by net income-that is, by gross income less certain deductions permitted by law. These taxes can be levied on individuals, corporations, or unincorporated businesses where the income is taxed distinctively from individual income. Separate accounts may be maintained for individual, corporate, and unincorporated business income taxes. Penalties and interest on income taxes should be included in account 1140.
 
1140* Penalties and Interest on Taxes. Revenue from penalties for the payment of taxes after the due date and the interest charged on delinquent taxes from the due data of actual payment. A separate account for penalties and interest on each type of tax may be maintained.
 
1190* Other Taxes. Other forms of taxes the school district levies/assesses, such as licenses and permits. Separate accounts may be maintained for each specific type of tax.
 
1200* Revenue From Local Governmental Units Other Than School Districts. Revenue from the appropriations of another local governmental unit. The school district is not the final authority, within legal limits, in determining the amount of money to be received, and the money is raised by taxes or other means that are not earmarked for school purposes. This classification includes revenue from townships, municipalities, and counties. In a city school system, the municipality would be considered a local governmental unit. In this instance, revenue from the county would be considered revenue from an intermediate source and coded in the 2000 revenue series.
 
1210* Ad Valorem Taxes. Taxes levied for school purposes by a local governmental unit other than the school district. The school district is not the final authority, within legal limits, in determining the amount to be raised. For example, after a school district has determined that a certain amount of revenue is necessary, another governmental unit may exercise discretionary power in reducing or increasing the amount. Separate accounts may be maintained for real property and for personal property. Penalties and interest on ad valorem taxes should be included in account 1240.
 
1220 Sales and Use Tax. Taxes assessed by a local governmental unit other than a school district and imposed on the sale and consumption of goods and services. They can be imposed either as a general tax on the retail price of all goods and/or services sold within the school district jurisdiction, with few or limited exemptions, or as a tax on the sale or consumption of selected goods and services. Separate accounts may be maintained for general sales tax and for selective sales taxes. Penalties and interest on sales and use taxes should be included in account 1240.
 
1230 Income Taxes. Taxes assessed by a local governmental unit other than a school district, measured by net income-that is, by gross income less certain deductions permitted by law. These taxes can be levied on individuals, corporations, or unincorporated businesses where there is income. Separate accounts may be maintained for individual, corporate, and unincorporated business income taxes. Penalties and interest on income taxes should be included in account 1240.
 
1240 Penalties and Interest on Taxes. Revenue from penalties for the payment of taxes after the due date and the interest charged on delinquent taxes from the due date of actual payment. A separate account for penalties and interest on each type of tax may be maintained.
 
1280 Revenue in Lieu of Taxes. Payments made out of general revenues by a local governmental unit to the school district in lieu of taxes it would have had to pay had its property or other tax base been subject to taxation by the school district on the same basis as privately owned property. Such revenue would include payments made for privately owned property that is not subject to taxation on the same basis as other privately owned property because of action by the local governmental unit.
 
1290 Other Taxes. Other forms of taxes by a local governmental unit other than a school district, such as licenses and permits. Separate accounts may be maintained for each specific type of tax.
 
1300 Tuition. Revenue from individuals, welfare agencies, private sources, and other school districts and government sources for education provided by the school district.
 
1310* Tuition From Individuals
 
1320* Tuition From Other Government Sources Within the State
 
1321* Tuition From Other School Districts Within the State
 
1330* Tuition From Other Government Sources Outside the State
 
1331* Tuition From School Districts Outside the State
 
1340* Tuition From Other Private Sources (other than individuals)
 
1350* Tuition From the State/Other School Districts for Voucher Program Students
 
1400 Transportation Fees. Revenue from individuals, welfare agencies, private sources, or other school districts and government sources for transporting students to and from school and school activities.
 
1410* Transportation Fees From Individuals
 
1420* Transportation Fees From Other Government Sources Within the State
 
1421* Transportation Fees From Other School Districts Within the State
 
1430* Transportation Fees From Other Government Sources Outside the State
 
1431* Transportation Fees From Other School Districts Outside the State
 
1440* Transportation Fees From Other Private Sources (other than individuals)
 
1500* Investment Income. Revenue from short-term and long-term investments.
 
1510 Interest on Investments. Interest revenue on investments in United States treasury and agency obligations, commercial paper, savings accounts, time certificates of deposit, mortgages, or other interest-bearing instruments.
 
1520 Dividends on Investments. Revenue from dividends on stocks held for investment.
 
1530

Net Increase in the Fair Value of Investments. Gains recognized from the sale of investments or changes in the fair value of investments. Gains represent the excess of sale proceeds (or fair value) over cost or any other basis of the date of sale (or valuation). All recognized investment gains may be accounted for by using this account; however, interest earnings from short-term investments may be credited to account 1510 (for tracking purposes only). For financial reporting purposes, GASB Statement 31 requires that all investment income, including the changes in fair value of investments, be reported as revenue in the operating statement.

An additional account (expenditure object code 930) has been established for investment losses so that districts may report gains or losses separately as required in certain states (or where only credits may be reported for revenue codes and only debits for expenditure codes). However, account 1530 may be used to record the net of all investment gains or losses (reported as a contra revenue).

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1531 Realized Gains (Losses) on Investments. Gains or losses recognized from the sale of investments. Gains represent the excess of sale proceeds over cost or any other basis of the date of sale. Losses represent the excess of the cost or any other basis at the date of sale over sales value. For financial reporting purposes, the net of all realized and unrealized investment gains and losses should be reported as a single line in the financial statements; however, this account and the following account may be used for internal tracking purposes.
 
1532 Unrealized Gains (Losses) on Investments. Gains or losses recognized from changes in the value of investments. Gains represent the excess of fair value over cost or any other basis of the date of valuation. Losses represent the excess of the cost or any other basis at the date of valuation over fair value. For financial reporting purposes, the net of all realized and unrealized investment gains and losses should be reported as a single line in the financial statements; however, this account and the previous account may be used for internal tracking purposes.
 
1540 Investment Income from Real Property. Revenue for rental, use charges, and other income on real property held for investment purposes.
 
1600* Food Services. Revenue for dispensing food to students and adults.
 
1610 Daily Sales-Reimbursable Programs. Revenue from students for the sale of breakfasts, lunches, and milk that are considered reimbursable by the United States Department of Agriculture. Federal reimbursements are not entered here. They should be recorded under Revenue Source 4500.
 
1611 Daily Sales-School Lunch Program. Revenue from students for the sale of reimbursable lunches as part of the National School Lunch Program.
 
1612 Daily Sales-School Breakfast Program. Revenue from students for the sale of reimbursable breakfasts as part of the School Breakfast Program.
 
1613 Daily Sales-Special Milk Program. Revenue from students for the sale of reimbursable milk as part of the Special Milk Program.
 
1614 Daily Sales-After-School Program. Revenue from students from the sale of reimbursable costs from after-school programs.
 
1620 Daily Sales-Non Reimbursable Programs. Revenue from students or adults for the sale of non-reimbursable breakfasts, lunches, and milk. This category includes all sales to adults, the second type A lunch to students, and a la carte sales.
 
1630 Special Functions. Revenue from students, adults, or organizations for the sale of food products and services considered special functions. Some examples are potlucks, PTA/PTO-sponsored functions, and athletic banquets.
 
1650 Daily Sales-Summer Food Program. Revenue from students from the sale of reimbursable costs from summer programs.
 
1700* District Activities. Revenue resulting from co-curricular and extra-curricular activities controlled and administered by the school district. These revenues are not to be commingled with the proceeds from student activities. (See Chapter 8 for further clarification.)
 
1710 Admissions. Revenue from patrons of a school-sponsored activity such as a concert or a football game.
 
1720 Bookstore Sales. Revenue from sales by students or student-sponsored bookstores.
 
1730 Student Organization Membership Dues and Fees. Revenue from students for memberships in school clubs or organizations.
 
1740 Fees. Revenue from students for fees such as locker fees, towel fees, and equipment fees. Transportation fees are recorded under the appropriate account in the 1400 series.
 
1750* Revenue From Enterprise Activities. Revenue (gross) from vending machines, school stores, soft drink machines, and so on, not related to the regular food service program. These revenues are normally associated with activities at the campus level that generate incremental local revenues for campus use.
 
1790 Other Activity Income. Other revenue from school or district activities.
 
1800* Revenue From Community Services Activities. Revenue from community services activities operated by a school district. For example, revenue received from operation of a skating facility by a school district as a community service would be recorded here. Multiple accounts may be established within the 1800 series to differentiate various activities.
 
1900 Other Revenue From Local Sources. Other revenue from local sources not classified above.
 
1910* Rentals. Revenue from the rental of either real or personal property owned by the school district. Rental of property held for income purposes is not included here, but is recorded under account 1540.
 
1920* Contributions and Donations From Private Sources. Revenue associated with contributions and donations made by private organizations. These organizations include, but are not limited to, educational foundations, PTA/PTO organizations, campus booster clubs, and private individuals. This code should be used to record on-behalf payments made by private organizations to school district personnel (e.g., stipends paid to teachers or other school district staff).
 
1930*

Gains or Losses on the Sale of Capital Assets. The amount of revenue over (under) the book value of the capital assets sold. For example, the gain on the sale would be the portion of the selling price received in excess of the depreciated value (book value) of the asset. This account is used in Proprietary and Fiduciary funds only. Revenue account 5300 is used for governmental funds.

An additional account (expenditure object code 940) has been established for accounting for losses from capital asset sales so that districts may report gains or losses separately as required in certain states (or where only credits may be reported for revenue codes and only debits for expenditure codes). However, account 1930 may be used to record all gains or losses on these sales (reported as a contra revenue).

 
1940* Textbook Sales and Rentals. Revenue from the rental or sale of textbooks.
 
1941 Textbook Sales. Revenue from the sale of textbooks.
 
1942 Textbook Rentals. Revenue from the rental of textbooks.
 
1950* Miscellaneous Revenues From Other School Districts. Revenue from services provided other than for tuition and student transportation services. These services could include data processing, purchasing, maintenance, cleaning, consulting, and guidance.
 
1951 Miscellaneous Revenue From Other School Districts Within the State.
 
1952 Miscellaneous Revenue From Other School Districts Outside the State.
 
1960* Miscellaneous Revenues From Other Local Governmental Units. Revenue from services provided to other local governmental units. These services could include non-student transportation, data processing, purchasing, maintenance, cleaning, cash management, and consulting.
 
1970* Operating Revenues. Goods and services provided for insurance, printing, or data processing. This account should be used only for Proprietary funds.
 
1980* Refund of Prior Year's Expenditures. Expenditures that occurred last year that are refunded this year. If the refund and the expenditure occurred in the current year, reduce this year's expenditures, as prescribed by GAAP.
 
1990* Miscellaneous. Revenue from local sources not provided for elsewhere.
 

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2000* Revenue From Intermediate Sources
 
2100* Unrestricted Grants-in-Aid. Revenue recorded as grants by the school district from an intermediate unit that can be used for any legal purpose desired by the school district without restriction. Separate accounts may be maintained for general source grants-in-aid that are not related to specific revenue sources of the intermediate governmental unit and/or for those assigned to specific sources of revenue as appropriate.
 
2200* Restricted Grants-in-Aid. Revenue recorded as grants by the school district from an intermediate unit that must be used for a categorical or specific purpose. If such money is not completely used by the school district, it must be returned, usually to the intermediate governmental unit. Separate accounts may be maintained for general source grants-in-aid that are not related to specific revenue sources of the intermediate governmental unit and for those assigned to specific sources of revenue as appropriate.
 
2800* Revenue in Lieu of Taxes. Commitments or payments made out of general revenues by an intermediate governmental unit to the school district in lieu of taxes it would have had to pay had its property or other tax base been subject to taxation by the school district on the same basis as privately owned property or other tax base. It would include payment made for privately owned property that is not subject to taxation on the same basis as other privately owned property because of action by the intermediate governmental unit.
 
2900* Revenue for/on Behalf of the School District. Commitments or payments made by an intermediate governmental jurisdiction for the benefit of the school district or contributions of equipment or supplies. Such revenue includes the payment to a pension fund by the intermediate unit on behalf of a school district employee for services rendered to the school district and a contribution of capital assets by an intermediate unit to the school district. Separate accounts should be maintained to identify the specific nature of the revenue item.
 
3000* Revenue From State Sources
 
3100 Unrestricted Grants-in-Aid. Revenue recorded as grants by the school district from state funds that can be used for any legal purpose desired by the school district without restriction. Separate accounts may be maintained for general grants-in-aid that are not related to specific revenue sources of the state and for those assigned to specific sources of revenue as appropriate.
 
3200

Restricted Grants-in-Aid. Revenue recorded as grants by the school district from state funds that must be used for a categorical or specific purpose.

If such money is not completely used by the school district, it must be returned, usually to the state. Separate accounts may be maintained for general-source grants-in-aid that are not related to specific revenue sources of the state and for those assigned to specific sources of revenue as appropriate.

 
3800 Revenue in Lieu of Taxes. Commitments or payments made out of general revenues by a state to the school district in lieu of taxes it would have had to pay had its property or other tax base been subject to taxation by the school district on the same basis as privately owned property. It includes payment made for privately owned property that is not subject to taxation on the same basis as other privately owned property because of action by the state.
 
3900* Revenue for/on Behalf of the School District. Commitments or payments made by a state for the benefit of the school district or contributions of equipment or supplies. Such revenue includes the payment of a pension fund by the state on behalf of a school district employee for services rendered to the school district and a contribution of capital assets by a state unit to the school district. Separate accounts may be maintained to identify the specific nature of the revenue item.
 
4000 Revenue From Federal Sources.
 
4100* Unrestricted Grants-in-Aid Direct From the Federal Government. Revenues direct from the federal government as grants to the school district that can be used for any legal purpose desired by the school district without restriction.
 
4200* Unrestricted Grants-in-Aid From the Federal Government Through the State. Revenues from the federal government through the state as grants that can be used for any legal purpose desired by the school district without restriction.
 
4300* Restricted Grants-in-Aid Direct From the Federal Government. Revenues direct from the federal government as grants to the school district that must be used for a categorical or specific purpose. If such money is not completely used by the school district, it usually is returned to the governmental unit.
 
4500* Restricted Grants-in-Aid From the Federal Government Through the State. Revenues from the federal government through the state as grants to the school district that must be used for a categorical or specific purpose.
 
4700* Grants-in-Aid From the Federal Government Through Other Intermediate Agencies. Revenues from the federal government through an intermediate agency.
 
4800* Revenue in Lieu of Taxes. Commitments or payments made out of general revenues by the federal government to the school district in lieu of taxes it would have had to pay had its property or other tax base been subject to taxation by the school district on the same basis as privately owned property or other tax base. Such revenue includes payment made for privately owned property that is not subject to taxation on the same basis as other privately owned property because of action by the federal governmental unit.
 
4900* Revenue for/on Behalf of the School District. Commitments or payments made by the federal government for the benefit of the school district, or contributions of equipment or supplies. Such revenue includes a contribution of capital assets by a federal governmental unit to the school district and foods donated by the federal government to the school district. Separate accounts should be maintained to identify the specific nature of the revenue item.
 
5000* Other Financing Sources
 
5100 Issuance of Bonds. Used to record the face amount of the bonds that are issued. Short-term debt proceeds should not be classified as revenue. When a school district issues short-term debt (debt with a duration of less than 12 months) that is to be repaid from governmental funds, a liability (notes payable) should be recorded in the balance sheet of the fund responsible for repayment of the debt.
 
5110* Bond Principal. Used to record the face amount of bonds sold.
 
5120 Premium or Discount on the Issuance of Bonds. Proceeds from that portion of the sale price of bonds in excess of or below their par value. The premium or discount represents an adjustment of the interest rate and will be amortized using expenditure object account 834 or revenue account 6200.
 
5200 Fund Transfers In. Used to classify operating transfers from other funds of the district.
 
5300 Proceeds From the Disposal of Real or Personal Property. Proceeds from the disposal of school property or compensation for the loss of real or personal property. Any gain or loss on the disposal of property for Proprietary or Fiduciary funds is recorded in account 1930. Account 5300 should be used only for proceeds from the disposal of assets that do not have significant value. The reporting of major asset sales should be recorded as Special Items using account 6300.
 
5400 Loan Proceeds. Proceeds from loans greater than 12 months.
 
5500 Capital Lease Proceeds. Proceeds from capital leases.
 
5600 Other Long-Term Debt Proceeds. Proceeds from other long-term debt instruments not captured in the preceding codes (e.g., certificates of obligation).
 
6000 Other Items
6100 Capital Contributions. Capital assets acquired as the result of a donation or bequest of an individual, estate, other government, a corporation or an affiliate organization.
 
6200

Amortization of Premium on Issuance of Bonds. Credit entries associated with the amortization of debt premiums in connection with the issuance of debt. This account is used in Proprietary and Fiduciary funds only.

This account has been established for premium amortization so that districts may report amortization of debt premiums and discounts separately as required in certain states (or where only credits may be reported for revenue codes and only debits for expenditure codes). However, expenditure account 834 may be used to record either debt premiums (reported as a contra revenue) or discounts.

 
6300 Special Items. Used to classify special items in accordance with GASB Statement 34. Included are transactions or events within the control of the school district administration that are either unusual in nature or infrequent in occurrence. For some districts, these include the sale of certain general governmental capital assets; sale or lease of mineral rights, including oil and gas; sale of infrastructure assets; or significant forgiveness of debt by a financial institution. Special items may also include events that are not within the control of the district. In the governmental funds, these items should be separately captioned or disclosed.
 
6400 Extraordinary Items. Used to classify items in accordance with GASB 34. Included are transactions or events that are outside the control of school district administration and are both unusual in nature and infrequent in occurrence. For some districts, these include insurance proceeds to cover significant costs related to a natural disaster caused by fire, flood, tornado, hurricane, or hail storm; insurance proceeds to cover costs related to an environmental disaster; or a large bequest to a small government by a private citizen.

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Footnote

*Account codes that are necessary for the NCES reporting are noted with an asterisk (*).

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