How to read a school budget
April 18, 2010
How to Read Any School District Budget in Washington State ©
WASHINGTON STATE SCHOOL DISTRICT ACCOUNTING CODES
by Shirley Basarab
Copyright 1996. All rights reserved. Posted in the United States. No part of this posting may be used or reproduced in any form or by any means, or stored in a database or retrieval system, without prior written permission of the author, except that the right to print a single copy of the full document for personal use is granted, provided that it is not altered in any manner whatsoever, nor sold. Permission to post this on CURE’s Web site granted by the author, Shirley Basarab. (Note: This prints as eight pages.)
Introduction
Understanding your school district’s budget is easier than you think. At first glance, the system of reporting seems like a foreign language, nearly overwhelming. But after reading this pamphlet, an understanding of the basics emerges, soon becoming second nature. The key is in the district’s budget coding system, which is precise and clear.
All official Washington state school district budgets use similar codes. To understand them, all one needs to know is: What do you want to know? What code represents that information? Where will that be in the budget?
With the code information, numbers can be tracked from year–to–year, revenue–to–expenditure, or program–to–program.
Before you start, be aware that you will be one of few people who understand it. Typically, only school district budget directors comprehend it. Seldom do the school board members or even other administrators figure it out.
By understanding just a few code numbers, deciphering budgets is easy. For seldom–used codes, those other than a Basic Dozen, look the information up on a code sheet, available from each district. (The Basic Dozen break–down is available on page six of this brochure for reference.)
To real number–crunchers this brochure will seem simplistic. But to accounting number–neophytes, it is essential to comprehending school district budgeting.
What to do next?
You first need to request three documents from your school district:
1. Their F–196 (actual expenditures) for the previous year;
2. Their F–195 (budget) for the current or next year;
3. Their accounting codes, a breakdown by Program, Activity, Object, and Location.
(“Citizen budgets” seldom include the code numbers needed and do not allow tracking from year–to–year.) Once you have obtained the above documents, read on.
Each Part of the Budget Tells Something Different
Account codes are broken into four parts, although you will probably only deal with one or two parts at a time.
Open your local school district’s document(s). Pick any expense item from the budget (F–195) or actuals (F–196) that interests you. As you read this brochure, refer to the sample code above and compare it to your budget. Before you finish, it should make sense.
ACCOUNTING CODES
Washington state school district accounting codes consist of 11 numbers for each expenditure. To master them, first picture a rubric cube. Now label the Programs as going across from side–to–side, the Activities driving down from top–to–bottom, and the Objects drilling through from front–to–back. Each time an Activity, Program, or Object is pulled out, it crosses through the other two groups.
As in the code sample in the shaded box at the top, each expenditure includes four parts:
- a four–digit number,
- a two–digit number,
- a three–digit number,
- and (occasionally) ends with two–digits.
The first four digits represent the Program, the next two represent the Activity, the next three are the Object, and the last two are Location, or school site.
The first four digits of the sample (“0131–”) is the Program code.
Of these, the first two of these four numbers designates the program for which the funds were to be spent. For instance, were they for Basic Education, Special Education, Vocational Education, Support Services (i.e.: librarians, teacher aides, books, etc.), District–wide Support (i.e.: administration, maintenance, utilities, etc.), Food, or Transportation (i.e.: buses)?
The second two of these four digits determine a further break–down of the ‘Program.’ The most used are:
- “0130–,” which designates Elementary and
- “0131–,” meaning Secondary (Middle, Junior High, or High School).
The second part of the sample (“–21–”) is the Activity code.
This part defines for what purpose (Activity) the funds were used within a Program.
The Activity code designates purposes such as teaching, teaching sup–port, utilities, books, insurance, management, food, utilities, buses, supplies, principals, administration, maintenance, etc.
The third part of the sample (“–230–”) is the Object code.
The Object code also further defines the program and/or ‘Activity’ of the expenditure, further classifying how the money was allocated.
For instance, was it for interest, a certificated employee (one with a teaching certificate), a classified employee (one with no teaching certificate), an employee’s benefits, supplies, materials, contracted services (such as contractor, lawyer or utilities), travel, or capital outlay?
The last part (“–81;”) is the ‘Location’ code.
This is seldom found in public documents. It designates the site (building) at which the money was spent, such as a specific school, an administrative building, etc. You will not find this code in the F–195 or F–196.
By sorting for various parts of a code, different costs are generated showing administration, teaching, benefits, supplies, etc.
Following is a description of how to decipher each code.
PROGRAM EXPENDITURE CODES:
The first number of the first four–digit section of a code tells under which Program it belongs. This is often all you need and, unless you want more specifics, knowing a few of these is enough to help you quickly understand these budgets.
For example, any code beginning with:
“0~~~” belongs to Basic Education
“2~~~”signifies Special Education (handicapped)
“3~~~” means Vocational Education, etc.
“4~~~” is Occupational Education, etc.
“5~~~” includes various Special Programs
“6~~~” includes various Special Programs
“7~~~” includes various Special Programs
“8~~~” means Community Services (daycare, etc.)
“9~~~” belongs to Other, such as:
“92~~” is Debt Service (interest)
“94~~” is Teaching Support (principals, librarians, books, etc.)
“97~~” is District–wide Support (administration, utilities, etc.)
“98~~” means Food Services (student lunches)
“99~~” means Transportation (Buses)
The second digit (as in “99”) of these first four Program code numbers represents further breakdowns of a Program category. The last two digits of these first–four–numbers details more specific information on how the money is spent. Two of the “01~~–” Program codes, where the majority of public school money is typically, spent are:
“0130–” Elementary Teaching and
“0131–” Secondary Teaching.
For example: In Code #”0131–21–230–81,”
“01~~–” designates Basic Education, and
“~~31–” means at a Secondary (Middle, Junior High or High School) level.
Of particular interest are programs: “94” and “97.”
Program “94~~” expenses represent Instructional Support for services to students (such as teachers’ aides, principals, psychologists, nurses, and their supervision).
Program “97–” covers District–wide Support (such as the school board and legal fees, the superintendent’s office, all buildings’ maintenance, operations, business office, utilities, security and insurance).
Funds (revenue/income) for these expense codes are often generated in other programs, such as “01–”. (The Basic Dozen Program codes are marked with an ‘*’ at the end.)
ACTIVITY CODES
If you have the basics of the Program codes figured out, then go on to the next set, two–digit accounting numbers, which describe the ‘Activity’ for which the money was spent.
‘Activity’ codes are simplified by knowing that if the first one of these two digits is:
“–1–” it´s Administration, or if it is
“–2~–” it´s Instruction.
If it’s anything else, look it up on your district’s code sheet.
The most common ‘Activity’ codes used under “–2~–” (Instruction) are:
“–21–” (Instructional Supervision)
“–23–” (Principals)
“–27–” (Teaching)
If the second of these two–digit ‘Activity’ codes is “–1–,” it is a non–teaching ‘Activity’, usually Supervision. Examples of these are:
“–21–” (Instruction Supervision)
“–41–” (Food Services Supervision)
“–61–” (Transportation Supervision)
Therefore, the Activity code for the School Board is:
“–11–”, or Administration–s Supervision.
In the example “0131–21–230–81,” the “–21–” means Supervision of Teaching .
OBJECT CODES
The next three accounting code numbers designate the object for which the money was spent. These numbers begin with:
“–2–” for Certificated employees (one with state certification)
“–3~~–” for Classified employees (one without certification)
“–4–” for all Employees´ Benefits
“–5–” for Supplies and Materials
“–6~~–” for Instructional Materials
“–7–” for services Contracted out (i.e. utilities, contractors, attorneys)
“–8–” for Travel
“–9–” for Capital Outlay
For the sample “0131–21–230–81,” the “–230–;” means a Certificated Teacher. Others? You got it! Look it up on your district´s code sheet.
LOCATION CODES
The last two numbers (which citizens seldom see) represent the location (building) at which the money was spent. Most documents do not include this part of the code. Many districts use the following breakdowns (with exceptions!):
“–01” through “–29” may be Elementary
“–51” through “–59” may be Middle Schools
“–71” through “–80” may be High Schools
“–80” through “–99” may be Administration
“–00” means Undesignated
Return to CURE’s Table of Contents:
CONCLUSION
For the sample used, then, “0131–21–230–81” would mean an expenditure for:
Program: Basic Education (01~~–) at Middle or High School level (–31–)
Activity: for Administrators (–21–)
Object:who are Certificated Employees (–230–)
‘Location:’ at an Administrative Building (–81).
By searching databases and ‘totaling’ for specific Program/Activity/Object/Location codes, districts can determine various cost breakdowns.
Revenue Codes
The last set of codes to decipher are four–digit Revenue codes, not previously mentioned. The first two digits designate the source of the money. For example, any number beginning with the number:
- “1~~~” comes from Local Taxes (i.e.: the levy).
- “2~~~” comes from Local Non–tax (i.e.: tuition, lunches, and interest).
- “3~~~” is State, General Purpose (called BEA) (i.e.: state funds for students enrolled).
- “4~~~” is State, Special Purpose (i.e.: special education and buses).
- “5~~~” is Federal, General Purpose (i.e.: federal forest money).
- “6~~~” is Federal, Specific Purpose (i.e.: food, commodities and Indian–Ed).
- “7~~~” is payment from Other School Districts.
- “8~~~” is from Misc. Grants.
- “9~~~” Other (i.e.: long–term financing, fund transfers, and misc.).
Most important is that the last two digits of these income codes often correspond to the ‘Program’ codes that generate the money. For instance, if a number ends in:
- ‘~~00′ it is for the Basic Ed ‘Program’ code
- ‘~~21’ it is for Special Ed Program code ’21~~ ‘
- ‘~~31’ it is for Vocational Ed ‘Program’ code ’31~~ ,’ etc.
Thus, revenue codes:
- #3131 would be State, General Purpose income for Vocational Education;
- #2298 would be Local Non– Tax income from School Lunches; and
- #4199 would mean State, Special Purpose income for Bus Transportation.
Indirect expenses (non–instructional such as administration) generate little income. Districts are not required to report this income separately, so they show no Revenue codes. Thus, there are no Revenue codes ending in Program codes “~~94” or “~~97.” However, this information is available in the district´s form F–203.
There is more, such as construction funds, bus funds, etc., but that’s it for the basics.
Additional Information
Near the end of a fiscal year (July), districts may publish a ‘Budget Extension’ to update the original (F–195) budget. This allows them to reallocate funds that were/will be spent in areas different than originally budgeted. An extension (also called a budget amendment) is required if any budget varies more than 10–percent from the budget, or if the actual total spent exceeds their budgeted total.
After a fiscal year, districts also publish a ‘Financial Statement,’ PLUS their Actual Expenditures (F–196). From these, and other information submitted to the state, various reports are compiled and published by the Superintendent of Public Instruction’s office in Olympia, comparing all Washington state districts. These are available on request to that office.
Although codes change from year–to–year in any given district and between districts, the basics don’t. A copy of these changes is available from your local school district.
* Basic dozen PROGRAM codes to know are in RED.
Washington State school district accounting code breakdown for Government–Accounting Number–Neophytes (although some may be slightly different in your district):
* 01~~– Basic Education (Basic Ed)
0130– Elementary (Kindergarten through 6th grade)
0131– Secondary (Middle/High School)
* 21~~– Special Education (24~~– Sp. Ed, Federal)
* 31~~– Vocational Education (38~~– Voc Ed, Federal)
* 51~~through –79~~– Special Federal/State programs (i.e.:)
51~~– Chapter 1
55~~– Learning Assistance Program (LAP)
58~~– Misc. Grants/Programs
65~~– English as a Second Language Tutors
68~~– Indian Education
69~~– ECEAP
71~~– Driver’s Education
73~~– Summer School
74~~– Highly Capable
75~~– Special State Enhancements
76~~– Chapter II
77~~– Math/Science
79~~– Misc. Programs and/or Grants
* 88~~– Preschools
* 89~~– Community Relations
* 92~~– Debt Service
* 94~~– District–wide Support Services (i.e.: Principals, Class–Aides, Librarians, Health)
* 97~~– District–wide support
9701– School Board
9702– Personnel Department
9703– Community Relations
9704– Business Department
9705– Maintenance
9706– Operations
9707– Major Maintenance
9708– Administration
9709– Security
* 98~~– Food Services (Breakfasts & Hot Lunches)
* 99~~– Pupil Transportation (Buses)
Tags: accounting, budget, finance
How to Read Any School District Budget in Washington State ©
WASHINGTON STATE SCHOOL DISTRICT ACCOUNTING CODES
by Shirley Basarab
Copyright 1996. All rights reserved. Posted in the United States. No part of this posting may be used or reproduced in any form or by any means, or stored in a database or retrieval system, without prior written permission of the author, except that the right to print a single copy of the full document for personal use is granted, provided that it is not altered in any manner whatsoever, nor sold. Permission to post this on CURE’s Web site granted by the author, Shirley Basarab. (Note: This prints as eight pages.)
Introduction
Understanding your school district’s budget is easier than you think. At first glance, the system of reporting seems like a foreign language, nearly overwhelming. But after reading this pamphlet, an understanding of the basics emerges, soon becoming second nature. The key is in the district’s budget coding system, which is precise and clear.
All official Washington state school district budgets use similar codes. To understand them, all one needs to know is: What do you want to know? What code represents that information? Where will that be in the budget?
With the code information, numbers can be tracked from year–to–year, revenue–to–expenditure, or program–to–program.
Before you start, be aware that you will be one of few people who understand it. Typically, only school district budget directors comprehend it. Seldom do the school board members or even other administrators figure it out.
By understanding just a few code numbers, deciphering budgets is easy. For seldom–used codes, those other than a Basic Dozen, look the information up on a code sheet, available from each district. (The Basic Dozen break–down is available on page six of this brochure for reference.)
To real number–crunchers this brochure will seem simplistic. But to accounting number–neophytes, it is essential to comprehending school district budgeting.
What to do next?
You first need to request three documents from your school district:
1. Their F–196 (actual expenditures) for the previous year;
2. Their F–195 (budget) for the current or next year;
3. Their accounting codes, a breakdown by Program, Activity, Object, and Location.
(“Citizen budgets” seldom include the code numbers needed and do not allow tracking from year–to–year.) Once you have obtained the above documents, read on.
Each Part of the Budget Tells Something Different
Account codes are broken into four parts, although you will probably only deal with one or two parts at a time.
Open your local school district’s document(s). Pick any expense item from the budget (F–195) or actuals (F–196) that interests you. As you read this brochure, refer to the sample code above and compare it to your budget. Before you finish, it should make sense.
ACCOUNTING CODES
Washington state school district accounting codes consist of 11 numbers for each expenditure. To master them, first picture a rubric cube. Now label the Programs as going across from side–to–side, the Activities driving down from top–to–bottom, and the Objects drilling through from front–to–back. Each time an Activity, Program, or Object is pulled out, it crosses through the other two groups.
As in the code sample in the shaded box at the top, each expenditure includes four parts:
- a four–digit number,
- a two–digit number,
- a three–digit number,
- and (occasionally) ends with two–digits.
The first four digits represent the Program, the next two represent the Activity, the next three are the Object, and the last two are Location, or school site.
The first four digits of the sample (“0131–”) is the Program code.
Of these, the first two of these four numbers designates the program for which the funds were to be spent. For instance, were they for Basic Education, Special Education, Vocational Education, Support Services (i.e.: librarians, teacher aides, books, etc.), District–wide Support (i.e.: administration, maintenance, utilities, etc.), Food, or Transportation (i.e.: buses)?
The second two of these four digits determine a further break–down of the ‘Program.’ The most used are:
- “0130–,” which designates Elementary and
- “0131–,” meaning Secondary (Middle, Junior High, or High School).
The second part of the sample (“–21–”) is the Activity code.
This part defines for what purpose (Activity) the funds were used within a Program.
The Activity code designates purposes such as teaching, teaching sup–port, utilities, books, insurance, management, food, utilities, buses, supplies, principals, administration, maintenance, etc.
The third part of the sample (“–230–”) is the Object code.
The Object code also further defines the program and/or ‘Activity’ of the expenditure, further classifying how the money was allocated.
For instance, was it for interest, a certificated employee (one with a teaching certificate), a classified employee (one with no teaching certificate), an employee’s benefits, supplies, materials, contracted services (such as contractor, lawyer or utilities), travel, or capital outlay?
The last part (“–81;”) is the ‘Location’ code.
This is seldom found in public documents. It designates the site (building) at which the money was spent, such as a specific school, an administrative building, etc. You will not find this code in the F–195 or F–196.
By sorting for various parts of a code, different costs are generated showing administration, teaching, benefits, supplies, etc.
Following is a description of how to decipher each code.
PROGRAM EXPENDITURE CODES:
The first number of the first four–digit section of a code tells under which Program it belongs. This is often all you need and, unless you want more specifics, knowing a few of these is enough to help you quickly understand these budgets.
For example, any code beginning with:
“0~~~” belongs to Basic Education
“2~~~”signifies Special Education (handicapped)
“3~~~” means Vocational Education, etc.
“4~~~” is Occupational Education, etc.
“5~~~” includes various Special Programs
“6~~~” includes various Special Programs
“7~~~” includes various Special Programs
“8~~~” means Community Services (daycare, etc.)
“9~~~” belongs to Other, such as:
“92~~” is Debt Service (interest)
“94~~” is Teaching Support (principals, librarians, books, etc.)
“97~~” is District–wide Support (administration, utilities, etc.)
“98~~” means Food Services (student lunches)
“99~~” means Transportation (Buses)
The second digit (as in “99”) of these first four Program code numbers represents further breakdowns of a Program category. The last two digits of these first–four–numbers details more specific information on how the money is spent. Two of the “01~~–” Program codes, where the majority of public school money is typically, spent are:
“0130–” Elementary Teaching and
“0131–” Secondary Teaching.
For example: In Code #”0131–21–230–81,”
“01~~–” designates Basic Education, and
“~~31–” means at a Secondary (Middle, Junior High or High School) level.
Of particular interest are programs: “94” and “97.”
Program “94~~” expenses represent Instructional Support for services to students (such as teachers’ aides, principals, psychologists, nurses, and their supervision).
Program “97–” covers District–wide Support (such as the school board and legal fees, the superintendent’s office, all buildings’ maintenance, operations, business office, utilities, security and insurance).
Funds (revenue/income) for these expense codes are often generated in other programs, such as “01–”. (The Basic Dozen Program codes are marked with an ‘*’ at the end.)
ACTIVITY CODES
If you have the basics of the Program codes figured out, then go on to the next set, two–digit accounting numbers, which describe the ‘Activity’ for which the money was spent.
‘Activity’ codes are simplified by knowing that if the first one of these two digits is:
“–1–” it´s Administration, or if it is
“–2~–” it´s Instruction.
If it’s anything else, look it up on your district’s code sheet.
The most common ‘Activity’ codes used under “–2~–” (Instruction) are:
“–21–” (Instructional Supervision)
“–23–” (Principals)
“–27–” (Teaching)
If the second of these two–digit ‘Activity’ codes is “–1–,” it is a non–teaching ‘Activity’, usually Supervision. Examples of these are:
“–21–” (Instruction Supervision)
“–41–” (Food Services Supervision)
“–61–” (Transportation Supervision)
Therefore, the Activity code for the School Board is:
“–11–”, or Administration–s Supervision.
In the example “0131–21–230–81,” the “–21–” means Supervision of Teaching .
OBJECT CODES
The next three accounting code numbers designate the object for which the money was spent. These numbers begin with:
“–2–” for Certificated employees (one with state certification)
“–3~~–” for Classified employees (one without certification)
“–4–” for all Employees´ Benefits
“–5–” for Supplies and Materials
“–6~~–” for Instructional Materials
“–7–” for services Contracted out (i.e. utilities, contractors, attorneys)
“–8–” for Travel
“–9–” for Capital Outlay
For the sample “0131–21–230–81,” the “–230–;” means a Certificated Teacher. Others? You got it! Look it up on your district´s code sheet.
LOCATION CODES
The last two numbers (which citizens seldom see) represent the location (building) at which the money was spent. Most documents do not include this part of the code. Many districts use the following breakdowns (with exceptions!):
“–01” through “–29” may be Elementary
“–51” through “–59” may be Middle Schools
“–71” through “–80” may be High Schools
“–80” through “–99” may be Administration
“–00” means Undesignated
Return to CURE’s Table of Contents:
CONCLUSION
For the sample used, then, “0131–21–230–81” would mean an expenditure for:
Program: Basic Education (01~~–) at Middle or High School level (–31–)
Activity: for Administrators (–21–)
Object:who are Certificated Employees (–230–)
‘Location:’ at an Administrative Building (–81).
By searching databases and ‘totaling’ for specific Program/Activity/Object/Location codes, districts can determine various cost breakdowns.
Revenue Codes
The last set of codes to decipher are four–digit Revenue codes, not previously mentioned. The first two digits designate the source of the money. For example, any number beginning with the number:
- “1~~~” comes from Local Taxes (i.e.: the levy).
- “2~~~” comes from Local Non–tax (i.e.: tuition, lunches, and interest).
- “3~~~” is State, General Purpose (called BEA) (i.e.: state funds for students enrolled).
- “4~~~” is State, Special Purpose (i.e.: special education and buses).
- “5~~~” is Federal, General Purpose (i.e.: federal forest money).
- “6~~~” is Federal, Specific Purpose (i.e.: food, commodities and Indian–Ed).
- “7~~~” is payment from Other School Districts.
- “8~~~” is from Misc. Grants.
- “9~~~” Other (i.e.: long–term financing, fund transfers, and misc.).
Most important is that the last two digits of these income codes often correspond to the ‘Program’ codes that generate the money. For instance, if a number ends in:
- ‘~~00′ it is for the Basic Ed ‘Program’ code
- ‘~~21’ it is for Special Ed Program code ’21~~ ‘
- ‘~~31’ it is for Vocational Ed ‘Program’ code ’31~~ ,’ etc.
Thus, revenue codes:
- #3131 would be State, General Purpose income for Vocational Education;
- #2298 would be Local Non– Tax income from School Lunches; and
- #4199 would mean State, Special Purpose income for Bus Transportation.
Indirect expenses (non–instructional such as administration) generate little income. Districts are not required to report this income separately, so they show no Revenue codes. Thus, there are no Revenue codes ending in Program codes “~~94” or “~~97.” However, this information is available in the district´s form F–203.
There is more, such as construction funds, bus funds, etc., but that’s it for the basics.
Additional Information
Near the end of a fiscal year (July), districts may publish a ‘Budget Extension’ to update the original (F–195) budget. This allows them to reallocate funds that were/will be spent in areas different than originally budgeted. An extension (also called a budget amendment) is required if any budget varies more than 10–percent from the budget, or if the actual total spent exceeds their budgeted total.
After a fiscal year, districts also publish a ‘Financial Statement,’ PLUS their Actual Expenditures (F–196). From these, and other information submitted to the state, various reports are compiled and published by the Superintendent of Public Instruction’s office in Olympia, comparing all Washington state districts. These are available on request to that office.
Although codes change from year–to–year in any given district and between districts, the basics don’t. A copy of these changes is available from your local school district.
* Basic dozen PROGRAM codes to know are in RED.
Washington State school district accounting code breakdown for Government–Accounting Number–Neophytes (although some may be slightly different in your district):
* 01~~– Basic Education (Basic Ed)
0130– Elementary (Kindergarten through 6th grade)
0131– Secondary (Middle/High School)
* 21~~– Special Education (24~~– Sp. Ed, Federal)
* 31~~– Vocational Education (38~~– Voc Ed, Federal)
* 51~~through –79~~– Special Federal/State programs (i.e.:)
51~~– Chapter 1
55~~– Learning Assistance Program (LAP)
58~~– Misc. Grants/Programs
65~~– English as a Second Language Tutors
68~~– Indian Education
69~~– ECEAP
71~~– Driver’s Education
73~~– Summer School
74~~– Highly Capable
75~~– Special State Enhancements
76~~– Chapter II
77~~– Math/Science
79~~– Misc. Programs and/or Grants
* 88~~– Preschools
* 89~~– Community Relations
* 92~~– Debt Service
* 94~~– District–wide Support Services (i.e.: Principals, Class–Aides, Librarians, Health)
* 97~~– District–wide support
9701– School Board
9702– Personnel Department
9703– Community Relations
9704– Business Department
9705– Maintenance
9706– Operations
9707– Major Maintenance
9708– Administration
9709– Security
* 98~~– Food Services (Breakfasts & Hot Lunches)
* 99~~– Pupil Transportation (Buses)
Tags: accounting, budget, finance