School Finance 101

Iowa School Districts are required to follow the manual Uniform Financial Accounting for Iowa School Districts and AEAs and must follow GAAP (Generally Accepting Accounting Principles) for governmental entities.  In addition, districts must follow a pre-determined chart of accounts to be used in their accounting systems.

In basic terms, there are six (6) segments to an expenditure code with 20 digits and there are six (6) segments for revenue code, comprised of 21 digits.  Here is a basic matrix demonstrating the make-up of account codes:

COA Matrix

Fund (2 digits) - describes which specific fund a revenue or expenditure applies to.  Solon has the following funds (taxing funds are noted).

Government-wide Funds

08 Governmental Long-Term Assets Summary Accounts

Self-balanced group of accounts used to account for fixed assets of governmental funds of a governmental unit.  Costs of all property, plant and equipment other than those accounted for in the proprietary funds or fiduciary funds are recorded.  Examples of general fixed assets:  sites, site improvements, buildings and building improvement, machinery and equipment.

09 Governmental Long-Term Liabilities/Debt Summary Accounts

Another self balanced group of accounts used to account for long-term liabilities and debt of governmental funds of a governmental unit.  Records the principal amount of all long-term liabilities, excluding those of the proprietary or fiduciary funds.  The long-term liabilities could include general obligation bonds, capitalized lease obligations, legal judgments, special assessments payable to cities or other governmental units, unfunded pension liabilities, and notes and warrants which are not due within one year.

Governmental Fund Types

10 General Fund (taxing)

This is the chief operating fund of the school district.  It is used to account for all resources of the school district except for those which are required to be accounted for in another fund.  

21  Student Activity

Fund used to account for money form student-related activities such as admissions, activity fees, student dues, student fund-raising events, or other student related co-curricular or extra-curricular activities.  Money in this fund shall be used to support only the co-curricular program as defined in the Department of Education Administrative Rules.  The Activity Fund should not be used as a clearing account for any other fund.

22 Management Fund (taxing)

A special revenue fund to account for all financial transactions from the levy which is authorized by Iowa Code Section 298.4.  The purpose of this fund is to pay the costs of unemployment or early retirement benefits, and the costs of liability insurance and judgments or settlements relating to liability.  This fund is used to account for moneys from the levy for unemployment benefits, liability insurance, non-benefit insurance agreements, early retirement benefits, and the costs of a judgment.  This fund cannot be used for employee health, life, or disability insurance, even if the district were self-insured. 

33 Secure an Advanced Vision for Education (SAVE) Fund

Used to account for revenues received from the local option sales and service tax for school infrastructure. 

36 Physical Plant & Equipment Levy/PPEL Fund (taxing)

A special revenue fund used to account for all financial transactions from the levy authorized, whether it be regular or voter-approved (Solon has both), by Iowa Code Section 298.2.  This fund is created to deposit and expend money from a levy certified by the Board of Directors not to exceed 33 cents and/or a levy authorized by a simple majority of the voters not to exceed $1.34.  The purpose of the fund is to pay the costs of specified major expenditures related to real property and equipment.  This fund is used to account for moneys from the levy for facilities, grounds, and certain equipment.

40 Debt Service Fund (taxing)

This fund is used to account for the accumulation of resources for, and the payment of, general long-term debt principal and interest.  Transfers into this fund may occur when another fund has incurred debt (ex:  SAVE Revenue Bonds) as all principal and interest must be paid from Debt Service.

Proprietary Fund Types

61 Nutrition (Enterprise Fund)

Fund used to account for all transactions for the nutrition program authorized by Iowa Code Chapter 283A.

62 Before & After School Program Fund (Enterprise Fund)

Fund used to account for all financial transactions for the child care program authorized by Iowa Code Sections 298A.12 and 279.49.  Solon's program is financed by fees to parents/guardians.  Fees are established based upon program costs.

63 Tuition Paying Preschool (Enterprise Fund)

Fund used to account for all financial transactions for our afternoon preschool (non state-wide voluntary pre-school program) and is financed by tuition paid by parents/guardians.

68 Spart-Mart

This fund is used to account for the activities of the student run Spart-Mart.

72 Internal Services Fund (Flex Benefits/Cafeteria)

Fund used to account for the District's cafeteria program of flex medical and flex dependent care.  Source of funding is done through those enrolling in the program with payroll elections and with-drawls from the fund are corresponding reimbursements for flex medical or flex dependent care claims processed by a third-party vendor.

Fiduciary Fund Types

81 Scholarship Fund (Private Purpose Trust Fund)

Used to account for resources and requirements for designated scholarships (ex:  Solon Student Council scholarships).

82 Expendable Trust (Private Purpose Trust Fund)

Used to account for resources and requirements of the specific group and/or designated activity.


FACILITY - designates the facility (building) at which level coding will occur.  Facility codes are derived from the BEDS report. Solon has:

0000 District Wide Activities (not specific to building)

0012 District Only, Unallocated, High School

0013 District Only, Unallocated, Middle School

0014 District Only, Unallocated, Intermediate School

0015 District Only, Unallocated, Elementary

0409 Elementary School

0427 Intermediate School

0209 Middle School

0172 High School



FUNCTION -segment attribute to what functional are an account code relates to.  Solon has the following:


1100 General Education Instruction (example: science, math, social studies, language arts, foreign language)

1200 Special Education Instruction 

  1201 Level I Special Education (Level 1.72) 1202 Level II Special Education (Level 2.21) 1203 Level III Special Education (Level 3.74) 1250 Special Education Instruction, Preschool Level 1270 Special Instruction, Talented and Gifted 1280 Special Instruction, Title I

1300 Vocational Education Instruction

1400 Co-Curricular, Extra-Curricular Instruction

2100 Support Services, Students

2114 Student Accounting2120 Guidance Services2131 Supervision/Health Services (Nurse)

2200 Support Services, Instruction

  2211 Supervision/Improvement Instructional Service 2212 Instruction/Curricular Development 2213 Instruction Staff Training 2214 Child Development & Understanding 2222 School Library 2237 Hardware Maintenance & Support

2300 Support Services, General Administration

  2311 Board of Education 2317 Legal Services 2318 External Audit Services 2321 Office of Superintendent

2400 Support Services, School Administration

2410 Office of Principal2490 Other Support Services/School Administration

2500 Support Services, Business & Central

     2510 Fiscal Services     2572 Recruitment & Placement2574 Staff Development for Non-Instructional Staff2585 Network Support Services

2600 Operation & Maintenance of Plant

2620 Operation & Maintenance of Buildings 2630 Care and Upkeep of Grounds 2640 Care and Upkeep of Equipment 2650 Vehicle Operation & Maintenance (non student transportation vehicles)

2700 Student Transportation

2700 Supervision of student Transportation Services       2720 Vehicle Operation       2740 Vehicle Servicing and Maintenance

3000 Operation of Non-Instructional Services

3110 School Lunch/Breakfast Program     3300 Before & After School Program 

4000 Facilities Acquisition & Construction (ex: land acquisition and improvement, building acquisition and construction, site improvements, building improvements)

5000 Debt Service

6000 Other Uses (ex: AEA Flow Thru, Interfund transfers, Downward Adjustments)