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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
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Contact:
Frank Johnson
(202) 502-7362



Chapter 6, Account Classification Descriptions

Classifications of Expenditures

Object
This classification is used to describe the service or commodity obtained as the result of a specific expenditure. The nine major object categories are further subdivided. The definitions of the object classes and selected sub-object categories follow:
 Code  Description
100* Personal Services-Salaries. Amounts paid to both permanent and temporary school district employees, including personnel substituting for those in permanent positions. This includes gross salary for personal services rendered while on the payroll of the school district. The third position in this group of objects has been left unused (i.e., 0) so that a job classification code can be inserted by the school district if desired. (Used with all functions except 5000, Debt Service)
 
101 Salaries Paid to Teachers
 
102 Salaries Paid to Instructional Aides or Assistants
 
103 Salaries Paid to Substitute Teachers
 
110 Salaries of Regular Employees. Full-time, part-time, and prorated portions of the costs for work performed by permanent employees of the school district.
 
111 Salaries of Regular Employees Paid to Teachers
 
112 Salaries of Regular Employees Paid to Instructional Aides and Assistants
 
113 Salaries of Regular Employees Paid to Substitute Teachers
 
120 Salaries of Temporary Employees. Full-time, part-time, and prorated portions of the costs for work performed by employees of the school district who are hired on a temporary or substitute basis.
 
121 Salaries of Temporary Employees Paid to Teachers
 
122 Salaries of Temporary Employees Paid to Instructional Aides and Assistants
 
123 Salaries of Temporary Employees Paid to Substitute Teachers
 
130 Salaries for Overtime. Amounts paid to employees of the school district in either temporary or permanent positions for work performed in addition to the normal work period for which the employee is compensated under regular salaries and temporary salaries above. The terms of such payment for overtime is a matter of state and local regulation and interpretation.
 
131 Salaries for Overtime Employees Paid to Teachers
 
132 Salaries for Overtime Employees Paid to Instructional Aides and Assistants
 
133 Salaries for Overtime Employees Paid to Substitute Teachers
 
140 Salaries for Sabbatical Leave. Amounts paid by the school district to employees on sabbatical leave.
 
141 Salaries for Sabbatical Leave Paid to Teachers
 
142 Salaries for Sabbatical Leave Paid to Instructional Aides and Assistants
 
143 Salaries for Sabbatical Leave Paid to Substitute Teachers
 
150 Additional Compensation Such as Bonuses, or Incentives.
 
151 Additional Compensation Paid to Teachers
 
152 Additional Compensation Paid to Instructional Aides and Assistants
 
153 Additional Compensation Paid to Substitute Teachers
 
200* Personal Services-Employee Benefits. Amounts paid by the school district on behalf of employees (amounts not included in gross salary but in addition to that amount). Such payments are fringe benefit payments and, although not paid directly to employees, nevertheless are part of the cost of personal services. The third position in this group of objects has been left unused (i.e., 0) so that a job classification code can be inserted by the school district if desired. (Used with all functions except 5000, Debt Service)
 
201 Employee Benefits for Teachers
 
202 Employee Benefits for Instructional Aides or Assistants
 
203 Employee Benefits for Substitute Teachers
 
210 Group Insurance. Employer's share of any insurance plan.
 
211 Group Insurance for Teacher
 
212 Group Insurance for Instructional Aides or Assistants
 
213 Group Insurance for Substitute Teachers
 
220 Social Security Contributions. Employer's share of social security paid by the school district.
 
221 Social Security Payments for Teachers
 
222 Social Security Payments for Instructional Aides or Assistants
 
223 Social Security Payments for Substitute Teachers
 
230 Retirement Contributions. Employer's share of any state or local employee retirement system paid by the school district, including the amount paid for employees assigned to federal programs.
 
231 Retirement Contributions for Teachers
 
232 Retirement Contributions for Instructional Aides or Assistants
 
233 Retirement Contributions for Substitute Teachers
 
240* On-Behalf Payments. Payments made by the state or other governments on behalf of the school district that benefit active employees of the school district. These payments typically include state matching of the retirement contributions of school district personnel. An equal revenue amount should be recorded in account 2900, 3900, or 4900 depending on the source of the payment.
 
241 On-Behalf Payments for Teachers
 
242 On-Behalf Payments for Instructional Aides or Assistants
 
243 On-Behalf Payments for Substitute Teachers
 

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250 Tuition Reimbursement. Amounts reimbursed by the school district to any employee qualifying for tuition reimbursement on the basis of school district policy.
 
251 Tuition Reimbursement for Teachers
 
252 Tuition Reimbursement for Instructional Aides or Assistants
 
253 Tuition Reimbursement for Substitute Teachers
 
260 Unemployment Compensation. Amounts paid by the school district to provide unemployment compensation for its employees. These charges should be distributed to the appropriate functions in accordance with the salary expenditures.
 
261 Unemployment Compensation Paid for Teachers
 
262 Unemployment Compensation Paid for Instructional Aides or Assistants
 
263 Unemployment Compensation Paid for Substitute Teachers
 
270 Workers' Compensation. Amounts paid by the school district to provide workers' compensation insurance for its employees. These charges should be distributed to the appropriate functions in accordance with the salary budget or may be charged to function 2310.
 
271 Worker's Compensation Paid for Teachers
 
272 Worker's Compensation Paid for Instructional Aides or Assistants
 
273 Worker's Compensation for Substitute Teachers
 
280 Health Benefits. Amounts paid by the school district to provide health benefits for its current employees or employees now retired for whom benefits are paid. These charges should be distributed to the appropriate functions in accordance with the related salary expenditures.
 
281 Health Benefits Paid for Teachers
 
282 Health Benefits Paid for Instructional Aides or Assistants
 
283 Health Benefits Paid for Substitute Teachers
 
290 Other Employee Benefits. Employee benefits other than those classified above, including fringe benefits such as automobile allowances, housing or related supplements, moving expenses, and paid parking. These charges should be distributed to the appropriate functions in accordance with the related salary expenditures.
 
291 Other Employee Benefits Paid for Teachers
292 Other Employee Benefits Paid for Instructional Aides or Assistants
293 Other Employee Benefits for Substitute Teachers
 
300* Purchased Professional and Technical Services. Services that by their nature can be performed only by persons or firms with specialized skills and knowledge. Although a product may or may not result from the transaction, the primary reason for the purchase is the service provided. Included are the services of architects, engineers, auditors, dentists, medical doctors, lawyers, consultants, teachers, and accountants. It is recommended that a separate account be established for each type of service provided to the school district. Services purchased from another school district or from other government sources should be coded to one of the object codes from 590 through 597.
 
310 Official/Administrative Services. Services in support of the various policymaking and managerial activities of the school district. Included are management consulting activities oriented to general governance or business and financial management of the school district; school management support activities; and election services and tax assessing and collecting services. (Usually used with functions 2300, 2400, and 2500)
 
320 Professional Educational Services. Services supporting the instructional program and its administration. Included are curriculum improvement services, assessment, counseling and guidance services, library and media support, and contracted instructional services. (Usually used with functions 1000, 2100, 2200, 2300, and 2400)
 
330 Professional Employee Training and Development Services. Services supporting the professional development of school district personnel, including instructional and administrative employees. Included are course registration fees (that are not tuition reimbursement), charges from external vendors to conduct training courses (at either school district facilities or off-site), and other expenditures associated with training or professional development by third-party vendors. All expenditures should be captured in this account regardless of the type or intent of the training course or professional development activity. (Usually used with functions 1000 and 2000)
 
340 Other Professional Services. Professional services other than educational services that support the operation of the school district. Included are medical doctors, lawyers, architects, auditors, accountants, therapists, audiologists, dieticians, editors, negotiations specialists, systems analysts, planners, and the like. (Usually used with function 2000)
 
350 Technical Services. Services to the school district that are not regarded as professional, but that require basic scientific knowledge, manual skills, or both. Included are data processing services, purchasing and warehousing services, graphic arts, and the like. (Usually used with function 2000)
 
351 Data Processing and Coding Services. Data entry, formatting, and processing services other than programming. (Usually used with functions 2110, Attendance and Social Work; 2240, Academic Student Assessment; 2410, Office of the Principal; and 2500, Central Services)
 
352 Other Technical Services. Technical services other than data processing and related services. (Usually used with functions 1000-4000)
 
400* Purchased Property Services. Services purchased to operate, repair, maintain, and rent property owned or used by the school district. These services are performed by persons other than school district employees. Although a product may or may not result from the transaction, the primary reason for the purchase is the service provided.
 
410 Utility Services. Expenditures for utility services other than energy services supplied by public or private organizations. Water and sewerage are included here. Telephone and telegraph are not included here but are classified under object 530. (Used with function 2600)
 
420 Cleaning Services. Services purchased to clean buildings (apart from services provided by school district employees), including, but not limited to, disposal services, snow plowing, custodial services, and lawn care services. (Used with function 2600)
 
430 Repairs and Maintenance Services. Expenditures for repairs and maintenance services not provided directly by school district personnel.
 
431 Non-Technology-Related Repairs and Maintenance. Contracts and agreements covering the upkeep of buildings and non-technology equipment. Costs for renovating and remodeling are not included here but are classified under object 450.
 
432 Technology-Related Repairs and Maintenance. Expenditures for repairs and maintenance services for technology equipment that are not directly provided by school district personnel. This includes ongoing service agreements for technology hardware (e.g., personal computers and servers). (Used with functions 2230 and 2580)
 
440 Rentals. Costs for renting or leasing land, buildings, equipment, and vehicles.
 
441 Renting Land and Buildings. Expenditures for leasing or renting land and buildings for both temporary and long-range use by the school district. This includes bus and other vehicle rentals when operated by a local school district, lease purchase arrangements, and similar rental agreements. (Used with function 2610)
 
442 Rental of Equipment and Vehicles. Expenditures for leasing or renting equipment or vehicles for both temporary and long-range use by the school district. This includes bus and other vehicle rental when operated by a local school district, lease-purchase arrangements, and similar rental agreements. This code excludes costs associated with the rental of computers or other technology-related equipment. These costs should be coded to expenditure object 443 as described below.
 
443 Rentals of Computers and Related Equipment. Expenditures for leasing or renting computers and related equipment for both temporary and long-range use.
 
450* Construction Services. Includes amounts for constructing, renovating, and remodeling buildings or infrastructure assets paid to contractors. This account should also be used to account for the costs of non-permanent site improvements such as fencing, walkways, and roads that are related to buildings and building sites. (Used only with function 4000)
 
490 Other Purchased Property Services. Purchased property services that are not classified above. (Communication services are not included here, but should be included in object 530)
 

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Footnote

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

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National Center for Education Statistics - http://nces.ed.gov
U.S. Department of Education