|Morgan County Schools|
|Bylaws & Policies|
6200 - FUND ACCOUNTING
A fund is a separate group of self-balancing accounts in which all cash, revenues, expenditures and residual balances are recorded and segregated for a specific purpose or objective. For an efficient system of operation, only the minimum numbers of funds necessary for sound financial management should be maintained.
The Morgan Board of Education shall establish the number of funds the schools within the County are authorized to maintain. In establishing the number of funds, the Board will consider the size of the school, the benefits to be derived from maintaining separate funds, and the availability of adequate personnel at the school to perform the accounting tasks required in maintaining separate funds.
The funds that may be maintained at a school are limited to the General Fund. The fund used to account for the general operations of the school and all other financial resources of the school except those accounted for in another fund. Every school is required to maintain a General Fund.
All bank accounts in which school funds are deposited must contain the name of the County Board, the name of the school and the County Board’s Federal Employer Identification Number (FEIN). The school principal and the chief school business official of the County must have signature authority for every such bank account.
A school may establish as many separate sub-accounts within each fund as is considered necessary to accurately account for the financial activity of the school.
COUNTY/MULTI-COUNTY VOCATIONAL CENTERS/REGIONAL EDUCATIONAL SERVICE AGENCIES FUNDS
The following account codes are to be used by county boards of education, multi-county vocational centers and regional education service agencies in the State of West Virginia for accounting and financial reporting purposes, beginning July 1, 2005. The account classifications used are compatible with the guidelines presented by the National Center of Education Statistics (NCES) in its recently revised publication entitled "Financial Accounting for Local and State School Systems – 2003 Edition".
|A.||General Current Expense Fund. Accounts for all financial resources of the County except those required to be accounted for in another fund.|
|1.||County. Accounts for the general operations of the county board of education.|
|2.||Excess Levy (If Separation Desired). Accounts for the proceeds and expenditure of excess levy monies if required in the levy call to be accounted for in a separate fund.|
|3.||Multi-County Vocational Center. Accounts for the operations of the multi-county vocational centers.|
|4.||Regional Education Service Agency. Accounts for the operations of the regional education service agencies.|
|5.||Trust/Agency. Accounts for the operations of material trust funds or fiscal agent activity for another entity which is defined as expenditures greater than one-half percent (1/2%) of the county's annual prior year revenues (Fund 11).|
|B.||Debt Service Fund|
|Debt Service. Accounts for the accumulation of resources for, and the payment of, general long-term debt, principal and interest.|
|C.||Bond Construction Fund. Accounts for the financial resources used to acquire or construct major capital facilities financed as a result of issuing bonds.|
|1.||First Bond Issue. Accounts for the financial resources used to acquire or construct major capital facilities financed from the first bond issue authorized by the voters.|
|2.||Second Bond Issue. Accounts for the financial resources used to acquire or construct major capital facilities financed from the second bond issue authorized by the voters.|
|3.||Third Bond Issue. Accounts for the financial resources used to acquire or construct major capital facilities financed from the third bond issue authorized by the voters.|
|D.||Permanent Improvement Fund|
|Permanent Improvement. Accounts for the accumulation of resources and subsequent expenditures for capital improvement activities. The proceeds of the fund must be used only for the support of building and capital improvement projects and cannot be transferred out.|
|E.||Capital Projects Fund|
|Capital Projects. Accounts for financial resources used to acquire or construct specific major capital facilities other than by the sale of bonds or the reservation of monies in a permanent improvement fund. A separate fund may be established for each specific capital project.|
|Note: A capital project whose annual expenditures exceed three percent (3%) of the prior years current expense fund expenditures must be accounted for in a bond construction, permanent improvement or capital projects fund.|
|F.||Special Revenue Fund|
|1.||Special Revenue Fund – County Board of Education. Accounts for the financial resources of the County which are restricted either legally or by the grantor.|
|2.||Special Revenue Fund – Multi-County Vocational Center. Accounts for the financial resources of the MCVC which are restricted either legally or by the grantor.|
|3.||Special Revenue Fund – Regional Education Service Agency. Accounts for the financial resources of the RESA which are restricted either legally or by the grantor.|
WV State Board of Education Policy 1224.1-5
Chart of Accounts for Local Educational Agencies in the State of West Virginia
West Virginia State Department of Education, Office of School Finance
(February 2, 2004)