The Uniform System of Accounts for School Districts prescribes the types of funds which a school district may establish and maintain in addition to the General Fund. There are various budgetary requirements for each of these other funds as described in the paragraphs which follow.
This fund is used to account for revenues and expenditures in connection with the school district's food service program.
The estimated expenditures must balance with the estimated revenues, interfund transfers, if any, and fund balance. The basic budget is not submitted to the voters for approval; only the subsidy, if any, from the General Fund need be approved by the voters in Common, Union Free, Central and Small City school districts.
This fund is used to account for revenues and expenditures of a school store operated and sponsored by the board of education. School stores operated by student organizations are accounted for as part of the Extraclassroom Activity Fund.
Estimated revenues and expenditures are developed by district officials. No voter approval is required unless a general fund subsidy is required to balance the budget. If so, only the subsidy is approved by the voters, not the entire budget.
This fund is used to account for revenues and expenditures in connection with federally supported programs and State funded grants operated by the school district.
Budgets are determined when specific grants are awarded by the funding agency. The board of education should approve each program/grant budget and should appropriate the funds by resolution. For grants which extend beyond June 30, budgets may be re-established in the next fiscal year without additional board of education approval.
The Debt Service Fund is used to record payments of principal and interest on capital debt. The use of this fund by school districts is optional except where a mandatory reserve for debt service is required as a result of having sold school property on which there is outstanding debt, or where unexpended proceeds of borrowings, earned interest, bond premium, or accrued interest are being retained to offset future payments on principal and interest.
It should be noted that most school districts pay debt service on capital debt directly from the General Fund. However, where a Debt Service Fund is used, the amount necessary to support appropriations in this fund is budgeted in the Interfund Transfer Section of the General Fund Budget and subsequently transferred to the Debt Service Fund.
The Capital Project Funds are provided for school districts to account for capital improvement and acquisitions.
Capital projects are budgeted on an individual project basis since legal and contractual requirements will vary from one project to another.
The initiation and implementation of a capital project generally requires voter authorization of the funding which may take the form of either obligations or current funds.