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Financial Accounting for Local and State School Systems: 2009 Edition
NCES 2009-325
June 2009

Chapter 6: Account Classification Descriptions — Classifications of Revenue and Other Financing Sources

These codes are for recording revenue and other receivables by source. Each classification is presented by a code number followed by a description.

Revenues

1000Revenue From Local Sources.
1100Taxes Levied/Assessed by the School District. Compulsory charges levied by the school district to finance services performed for the common benefit.
11105 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.
11205Sales 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.
11305Income 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.
11405Penalties 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.
11905Other 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.
12005Revenue 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, if 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.
12105Ad Valorem Taxes. Taxes levied for school purposes by a local governmental unit other than a 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.
1220Sales 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.
1230Income 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.
1240Penalties 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.
1280Revenue 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.
1290Other 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.
1300Tuition. Revenue from individuals, welfare agencies, private sources, and other school districts and government sources for education provided by the school district.
13105Tuition From Individuals.
13115Tuition From Individuals Excluding Summer School.
13125Tuition From Individuals for Summer School.
13205Tuition From Other Government Sources Within the State.
13215Tuition From Other School Districts Within the State.
13225Tuition From Other Government Sources Excluding School Districts Within the State.
13305Tuition From Other Government Sources Outside the State.
13315Tuition From School Districts Outside the State.
13405Tuition From Other Private Sources (other than individuals).
13505Tuition From the State/Other School Districts for Voucher Program Students.
1400Transportation 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.
14105Transportation Fees From Individuals.
14205Transportation Fees From Other Government Sources Within the State.
14215Transportation Fees From Other School Districts Within the State.
14225Transportation Fees From Other Government Sources Excluding School Districts Within the State.
14305Transportation Fees From Other Government Sources Outside the State.
14315Transportation Fees From Other School Districts Outside the State.
14405Transportation Fees From Other Private Sources (other than individuals).
15005Investment Income. Revenue from short-term and long-term investments.
1510Interest on Investments. All interest revenue on investments in U.S. treasury and agency obligations, commercial paper, savings accounts, time certificates of deposit, mortgages, or other interest-bearing instruments. This would also include interest on demand deposits.
1520Dividends on Investments. Revenue from dividends on stocks held for investment.
1530Net 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).
1531Realized 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 at 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.
15325Unrealized 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 at 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.
1540Investment Income From Real Property. Revenue for rental, use charges, and other income on real property held for investment purposes.
16005Food Services. Revenue for dispensing food to students and adults.
1610Daily Sales—Reimbursable Programs. Revenue from students for the sale of breakfasts, lunches, and milk that are considered reimbursable by the U.S. Department of Agriculture. Federal reimbursements are not entered here. They should be recorded under revenue source 4500.
1611Daily Sales—School Lunch Program. Revenue from students for the sale of reimbursable lunches as part of the National School Lunch Program.
1612Daily Sales—School Breakfast Program. Revenue from students for the sale of reimbursable breakfasts as part of the School Breakfast Program.
1613Daily Sales—Special Milk Program. Revenue from students for the sale of reimbursable milk as part of the Special Milk Program.
1614Daily Sales—After-School Programs. Revenue from students from the sale of reimbursable costs from after-school programs.
1620Daily Sales—Nonreimbursable Programs. Revenue from students or adults for the sale of nonreimbursable breakfasts, lunches, and milk. This category includes all sales to adults, the second type A lunch to students, and a la carte sales.
1630Special Functions. Revenue from students, adults, or organizations for the sale of food products and services considered special functions. Some examples are potlucks, Parent-Teacher Association (PTA)/Parent-Teacher Organization (PTO)-sponsored functions, and athletic banquets.
1650Daily Sales—Summer Food Programs. Revenue from students from the sale of reimbursable costs from summer programs.
17005District Activities. Revenue resulting from co-curricular and extracurricular activities controlled and administered by the school district. Student activity revenues should be reported here also, but school districts should have methods internally to track student activity revenue separately. (See chapter 8 for further clarification.)
1710Admissions. Revenue from patrons of a school-sponsored activity such as a concert or a football game.
1720Bookstore Sales. Revenue from sales by students or student-sponsored bookstores.
1730Student Organization Membership Dues and Fees. Revenue from students for memberships in school clubs or organizations.
1740Fees. 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.
17505Revenue 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.
1790Other Activity Income. Other revenue from school or district activities.
18005Revenue 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.
1900Other Revenue From Local Sources. Other revenue from local sources not classified above.
19105Rentals. 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.
19205Contributions 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).
19305Gains 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).
19405Textbook Sales and Rentals. Revenue from the rental or sale of textbooks.
1941Textbook Sales. Revenue from the sale of textbooks.
1942Textbook Rentals. Revenue from the rental of textbooks.
19505Miscellaneous 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.
19515Miscellaneous Revenue From Other School Districts Within the State.
19525Miscellaneous Revenue From Other School Districts Outside the State.
19605Miscellaneous Revenues From Other Local Governmental Units. Revenue from services provided to other local governmental units, including the state. These services could include nonstudent transportation, data-processing, purchasing, maintenance, cleaning, cash management, and consulting.
19705Revenues from Other Departments in the Agency. Revenues from services provided to other funds (i.e., departments within the agency) for services such as printing or data-processing. This account is only used with internal services funds. Revenue from private individuals, businesses, and associations for services provided should be coded to 1990 Miscellaneous Local Revenue.
19805Refund 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 the Generally Accepted Accounting Procedures (GAAP).
19905Miscellaneous. Revenue from local sources not provided for elsewhere, including services provided to individuals.
20005Revenue From Intermediate Sources.
21005Unrestricted 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.
22005Restricted 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.
28005Revenue 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. This code 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.
29005Revenue 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.
30005Revenue From State Sources.
3100Unrestricted 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.
3200Restricted 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.
3800Revenue 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. This code 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.
39005Revenue 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 to 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.
4000Revenue From Federal Sources.
41005Unrestricted 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.
42005Unrestricted 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.
43005Restricted 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.
45005Restricted 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.
47005Grants-in-Aid From the Federal Government Through Other Intermediate Agencies. Revenues from the federal government through an intermediate agency.
48005Revenue 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.
49005Revenue 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.
50005Other Financing Sources.
5100Issuance 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.
51105Bond Principal. Used to record the face amount of bonds sold.
5120Premium 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 represents an adjustment of the interest rate and will be amortized using revenue account 6200. (Discounts on bonds are now coded to expenditure object 925 Discount on the Issuance of Bonds.)
5200Fund Transfers In. Used to classify operating transfers from other funds of the district.
5300Proceeds 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.
5400Loan Proceeds. Proceeds from loans greater than 12 months.
5500Capital Lease Proceeds. Proceeds from capital leases.
5600Other Long-Term Debt Proceeds. Proceeds from other long-term debt instruments not captured in the preceding codes (e.g., certificates of obligation).
6000Other Revenue Items.
6100Capital Contributions. Capital assets acquired as the result of a donation or bequest of an individual, estate, other government, corporation, or affiliate organization.
6200Amortization 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, as well as the government-wide financial statements.



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.
6300Special Items. Used to classify special items in accordance with GASB Statement 34. Included are significant 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.
6400Extraordinary Items. Used to classify items in accordance with GASB Statement 34. Included are transactions or events that are outside the control of the 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 such as: 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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5 Account codes that are necessary for NCES reporting.

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