CHAPTER 3


Classification of Receipts and Expenditures

T HIS CHAPTER contains the classification and definitions of
 the minimum accounts for receipts and expenditures. Trans-
actions involving both student activities and non-student activi-
ties are recorded under the same accounts. A separate identifica-
tion can be made on these two categories by making further
breakdowns under the minimum accounts.

 Relationship of Accounts to Funds
An ACCOUNT is a descriptive heading under which are recorded
financial transactions that are similar in terms of purpose, object,
or source. Examples of these minimum accounts are: Athletics,
Music, Trust Funds, Instructional Aids, etc. These accounts
appear on the Principal's Monthly Report on Internal Accounts.
A FUND is a sum of money set aside for specific activities of a
school and usually contains several accounts. The State Board
Regulations have established two such funds for Internal Ac-
counts: SCHOOL ACTIVITY FUND and SCHOOL LUNCH
FUND.

 Classification of Minimum Accounts for
 Receipts and Expenditures
 The following classifications of accounts are the uniform ac-
counts that were approved by the State Department of Educa-
tion and the 1947 Committee on Internal Accounts. They are
listed in the order in which they appear on the Monthly Financial
Report Form, FA-35p. An additional breakdown under these
accounts may be made and is necessary in many instances because
of the many activities conducted in individual schools.