Assistant Principals MeetingAssistant Principals MeetingSanta Rosa School DistrictSanta Rosa School District

March 27, 2007March 27, 2007

The importance of Redbook Account Strip coding

Thought for the dayThought for the day

It’s hard to remember the objective is to drain the

swamp when you’re up to your behind in alligators….

Objective being:Quality Education while being

fiscally conservative (Best bang for the buck)

What is What is ““RedbookRedbook””??

• “Redbook” is another name for the document “Financial and Program Cost Accounting and Reporting for Florida Schools”.

• It’s purpose is to provide Florida School Districts with a uniform chart of accounts for budgeting and financial reporting.

How is it used?How is it used?

• It is used to collect revenue and cost data for our school system.

• It is used for reporting purposes for the Annual Financial Report & Cost Report and the Annual Budget.

• It is used for managerial decisions and comparisons with other districts.

What does an Account Strip look like?What does an Account Strip look like?

Revenue:

_ _ _ 3 _ _ _ _ _ _ _ _ _ _ _ _ _ _

Fund Revenue Center Project

Expenditures:

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

Fund Function Object Center Project Program

What does each component of an Account What does each component of an Account Strip mean?Strip mean?

Fund: A separate fiscal and accounting entity. It has it’s own set of records. It’s like a separate entity with in the overall total. Examples are 100-General Operating, 2XX-Debt Service, 3XX-Capital Projects, etc.

Function: Indicates the overall purpose or objective of an expenditure. Functions are group related activities aimed at accomplishing a major service or regulatory responsibility. Examples are 5XXX-Instruction, 6XXX-Instructional Support, 7XXX-General Support, etc.

Object: Indicates the type of good or services obtained as a result of a specific expenditure. Examples are 1XX-Salaries, 2XX-Employee Benefits, 3XX-Purchased Services, 4XX-Energy Services, etc.

What does each component of an Account Strip mean?What does each component of an Account Strip mean?Center: Identifies the individual school/department within the school system. For cost reporting purposes, all costs are eventually attributed to all schools. Examples are 0021-Central High School, 0041-Berryhill Elem, 0051-Bagdad Elem, 9023-Finance, etc.

Project: Used for collecting costs for specific uses or earmarked dollars. Projects that start with a 1 are state funded grants. Projects that start with a 9 are local funded projects. Projects 2XXXXXX are Debt Service, 3XXXXXX are Capital Outlay projects, etc.

Program: These numbers collect costs down to the FTE program category. Examples are 101-K-3 Basic, 102-4-8 Basic, etc.

Revenue: Used to categorize revenues for the school system. Examples are 31XX-Federal Direct, 32XX-Federal Through State, 33XX-Revenue from State Sources, 34XX-Revenue from Local Sources, etc.

Salary BuybacksSalary Buybacks

• Performed when employees are coded incorrectly

• Original coding is reversed and new coding is entered

• Very time consuming

Handout ExerciseHandout Exercise

• Function and Object Coding• Take 10-15 minutes• Discuss answers

Cost ReportCost Report

• Prepared annually• Allocates expenses to the individual

schools and to the district office• Largest expense is salaries• Accurately coding salaries is important

References/Questions?References/Questions?

• This presentation-http://www.santarosa.k12.fl.us/finance/funding.htm

• Return on Investment-DOE-http://roi.fldoe.org/• Monthly Financial Statements-

http://www.santarosa.k12.fl.us/finance/finstmt.htm• Questions?