Our district is self-funded for health insurance. How should we code health insurance claims and other expenses for our covered employees?
The Employee Benefit Fund (Fund 03) should be used for these types of expenditures so you’re not using spending authority out of the General Fund.
To record employee health insurance claims, use the object code series 28X (Health Benefits) and prorate the expenses among the different employee classes:
- 280 Non-Instructional Staff
- 281 Teacher/Professional Staff
- 282 Instructional Aides & Assistants
- 283 Substitute Teachers
- 284 Technical Staff
- 285 Superintendent/ESU Administrator
- 286 Professional Non-Certificated Staff
To record the payment of reinsurance premiums, use object code 340 (Other Professional Services).
I’m using 2610 as the function in the General Fund with 620 as the object code to report the costs to heat our building — 01-2-02610-620. Why is this an error?
This was one of the updates made in the Master Code List that was posted in July 2019. (Districts were notified of this updated Master Code List through newsletters and various presentations.) Along with several other changes in the coding, object code 620 was eliminated because of the broad category it represented — “Energy”.
Since more specificity was needed, 620 was eliminated so districts must use the following object codes:
- 621 Natural Gas
- 623 Bottled Gas
- 624 Oil
- 625 Coal
- 626 Gasoline
- 629 Other Energy
How do you code costs related to retirements that are covered in the Early Retirement program our district offers?
The costs would be coded in the appropriate function code. The following examples to help determine the correct codes:
- 1100: if the retiring individual is considered Regular Education
- 1200: if the retiring individual is considered Special Education, the function code would be in the appropriate 1200 code,
- 2120: if retiring individual is the your guidance counselor
The object code depends on whether the district received State Board Approval for General Fund Expenditure Exclusion for these costs.
- 238: “Voluntary Termination Agreements” if the district did receive State Board Approval for an Expenditure Exclusion
- 239: “Early Retirement Contributions” if the district did not request State Board Approval for an Expenditure Exclusion
Why am I getting an error code in our federal programs for object code 695 Indirect Costs?
Object Code 695 Indirect Cost Rate is only available in the School Nutrition Fund in following function codes:
- 3100 Food Service Operations
- 2190 Other Support Services
If you want to identify these costs in federal programs, you could use object code 890 Miscellaneous. If other expenses are coded to object code 890, you may want to ask your software vendor how to add an identifier.
Why are we getting an error code for Object Code 237 Increased Retirement Contribution when coded in the 6000s for Federal Program Disbursements?
Object Code 237 Increased Retirement Contribution Rate is not collected in Federal Program Disbursements (6000’s). Object Code 237 is used in State Aid calculation purposes so we only need Object Code 237 in the functions that are paid by state and local funds. Code all of the retirement contributions into the 23X series for salaries paid out of Federal Program funding.
If your software won’t accommodate this, a manual journal entry done at the end of the fiscal year would be necessary to move disbursements coded as object code 237(Increased Retirement Contribution Rate) into the 23X object code (Retirement Contributions) series.
How do we code for paying out our teachers for their unused sick/discretionary days? Would unused vacation days be handled the same?
You would want to use Object Code series 15X – Additional Compensation. Since you’re coding for teachers, the actual object code would be 151. The function code would be for either for 11XX for Regular Ed teachers or 12XX for SPED teachers. If this is for an administrator such as a Principal, the function code would be 2410 – Office of the Principal. You’d use the same function code that is used to record their regular salary.
If you’re paying out an employee for their unused vacation days, you would also use the 15X series – Additional Compensation.
How would we code the payout of unused sick leave to a terminating teacher?
Code the retirement payout amount (for example, unused sick leave) to Object Code 15X Additional Compensation (151 for Teachers/Professional Staff).
At the end of the school fiscal year, record a journal entry to move that amount into Object Code 239 Early Retirement or Termination.
How should student insurance be coded?
Costs related to any type of student insurance should be coded in the General Fund under Function Code 2190 Support Services – Student – Other and Object Code 520 – Insurance (Other than Employee Benefits)
The code string would be -01-2-02190-520.
How would we code a purchase of a virtual server for our active directory, file services, print server, etc.? How would we code the server software?
The Capitalization Threshold for district purchases is $5000. So any individual item with a cost of $5000 or more is considered capital outlay and would be coded in the Object Code 700 series. Items costing less than $5000 would be coded as 610 General Supplies.
The function code for this purchase would be 2580 Administrative Technology Services. As for the individual components, use Object Code 734 Technology-Related Hardware for items that were $5000 or more. If the cost for each is less than $5000, use 610 General Supplies.
Server software costing $5000 or more would be coded as 735 Technology Software. If the software costs less than $5000, use 610 General Supplies.
Where do we code stipends for teachers?
Stipends need to be coded as “Additional Compensation” in the 150 object code series.
For example, teacher stipends should be coded as 151.
What Object Code should be used for therapy services such as Occupational or Physical Therapists provided by an ESU or provided by a private company or a hospital?
If the district is contracting for therapist services from an ESU (or another district), you would want to use Object Code 591 Services Purchased from Another School District or ESU. If these services will be provided by a hospital or a private company, you would code it as Object Code 340 Other Professional Services.
What Object Codes should we use for costs related to students going on field trips?
Travel costs like fuel, bus driver wages, or anything else travel related should be Object Code 510 Student Transportation Services.
Any entry fees that are paid for this students would be Object Code 810 Dues and Fees.
What is difference between Object Code 21X Group Insurance and 28X Health Benefits?
Expenditures related to the district’s share of any group insurance would be coded in the 21X series of object codes. For example: Health, Dental, Vision, Disability Insurance.
Health Benefits coded under the 28X series would include district-paid expenditures as employee annual deductibles, EAP costs, Employer HSA contributions, in-lieu-of insurance payments and other health programs provided to employees.
We have a project that costs over $25,000 but the individual units of these items are less than $5000 each. How would we code this?
Since the units are valued at less than $5000, you would code them as Object Code 610 Supplies.