La. Admin. Code tit. 28 § XLI-503

Current through Register Vol. 50, No. 11, November 20, 2024

Section XLI-503 - Governmental Funds

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.

La. Admin. Code tit. 28, § XLI-503

Promulgated by the Board of Elementary and Secondary Education, LR 26:463 (March 2000), amended LR 27:1684 (October 2001), LR 36:1506 (July 2010).

AUTHORITY NOTE: Promulgated in accordance with R.S. 17:6 (A) (10).