xt741n7xpr3j https://exploreuk.uky.edu/dips/xt741n7xpr3j/data/mets.xml Kentucky. Department of Education. Kentucky Kentucky. Department of Education. 1933-06 volumes: illustrations 23-28 cm. call numbers 17-ED83 2 and L152 .B35. bulletins English Frankford, Ky. : Dept. of Education This digital resource may be freely searched and displayed in accordance with U. S. copyright laws. Educational Bulletin (Frankfort, Ky.) Education -- Kentucky Educational Bulletin (Frankfort, Ky.), vol. I, no. 4, June 1933 text Educational Bulletin (Frankfort, Ky.), vol. I, no. 4, June 1933 1933 1933-06 2021 true xt741n7xpr3j section xt741n7xpr3j

CONTENTS

Page

Cover 1
“An Improved Plan of Fiscal Administration," by the Superintendent

of Public Instruction, James H. Richmond .............................................. 2

“State Department of Education Inaugurates New Financial Account-
ing System for Schools,” by F. D. Peterson, Director of Finance 3-14
“Kentucky Education Association Begins Program of Interpreting the
Schools," by Harper Gatton, Chairman K. E. A. Interpretation

Committee 15
“Work of Kentucky Education Commission Reaches Final Stage,"

by James W. Cammack, Jr., Secretary of the Commission .............. 16
“A Catechism of Public Education,” by L. N. Taylor, State School

Agent 17-19
“Trends'in the Disbursement of State Revenue" ........................................ 20

LIBRARY
UNlVERSlTY OF KENTUCKY

Published By
m, DEPARTMENT OF EDUCATION
‘ JAMES H. RICHMOND, .

Superintendent of Public Instruction

Application pending for frequency of issue.
ISSUED MONTHLY EXCEPT JUNE,’ JULY, AUGUST

Entered as second-class matter March 21, 1933, at the post office at
Frankfort, Kentucky, under the Act of August 24, 1912.

Vol. 11mm, 0 June, 1933 . No. 4
UNIVERSITY OE KENTUCKX

AN IMPROVEb PLAN OF FISCAL
ADMINISTRATION

The most difﬁcult problem faced by school administrators during
recent years has been that of effecting substantial economies without
seriously impairing efficiency or curtailing service necessary to the
welfare of the children. That they have succeeded in doing this to a
remarkable degree is amply demonstrated by the fact that during
1932-33 the schools of Kentucky were able to remain in session for
virtually the normal school year, despite a reduction in income ct
approximately ﬁfteen per cent from that of the previous year. When
one remembers that school costs were not inﬂated even during the
boom period, it is apparent that only the most courageous eﬂorts
could have made this splendid record possible. For the coming school
year the situation is even more serious, for it is estimated that the
common schools will suffer a further reduction of approximately
sixteen per cent and the institutions of higher learning, a reduction
of approximately thirty per cent. Once more the educational system
must take steps to “tighten its belt.”

Realizing that a successful retrenchment program must be based
on sound budgetary practices in the local school districts, the Sub-
committee on Financial Administration of the Kentucky Educational
Commission has made an extensive study of school ﬁnance and has
devised a new uniform ﬁnancial acounting system for use by all school
districts in the Commonwealth. This new system, which is outlined
in this bulletin, has been adopted by the State Board of Education
and is being put into operation at once. Its use will provide a basis
for constructive planning and will enable school administrators to
show the public where every dollar of school money is going.

Public education in Kentucky has not tried to shield itself by
calling attention to the shortcomings of others, a practice which has
been all too common during the past three years. It has tried to face
its problems squarely and courageously and to solve them by the
simple but unpopular expediency of “putting its own house in order.”
The schools have “gone the limit” to cooperate in a needed program
of retrenchment and will continue to do so. In their attempts to
serve adequately the seven hundred thousand children of Kentucky
at a minimum of expense, they welcome legitimate criticism; but they
would remind those who contemplate criticism of the schools that the

biblical injunction is “Let him who is without sin cast the ﬁrst stone.”

JAMES H. RICHMOND,
Superintendent of Public Instruction

VW‘iv.

State Department Inaugurates New
Financial Accounting System for Schools

By F. D. PETERSQN, Director of Finance

In presenting the facts set out in this Bulletin, it is desired to
direct the attention of the public, as well as that of school ofﬁcials, to
the imperative need of sounder ﬁnancial policies and a more efﬁcient
system of accounting. Justice to all parties concerned demands the
same fundamental principles in educational administration as in any
carefully managed ﬁnancial or commercial institution.

Candor forces the admission that there has been too much laxity
in the records of expenditures for public education. Because of the
lack of a uniform accounting system, it has been almost impossible to
obtain accurate ﬁnancial statistics. For example, the reports ﬁled
in the State Department of Education for 1981-32 showed an expendi~
ture of $3,000,000. more than the amount actually disbursed for pub-
lic schools. This does not mean that so much money was wasted, lost
or misappropriated; but it does mean that, through an inadequate
and imperfect system of accounting, millions of dollars under the
head of “temporary loans” have been charged twice as disbursements,
making it appear that school costs were much greater than was act.-
ually the case. Additional imperfections are shown by the fact that
County Boards of Education exceeded their budgeted income $1,526,—
239, in 1931, and approximately $1,000,000, in 1932.

To correct erroneous impressions, to avoid duplications, to
simplify the system, to make possible closer supervision of adminis—
tration, to secure accuracy and to establish a uniform standard for
the allocation of receipts and expenditures in all basic ﬁnancial
records and reports, the State Department of Education, through its
Division of Finance, has undertaken a careful revision of the entire
system of accounting for public school funds. Many of the approved
ﬁnancial systems employed in the United States have been studied,
including those recommended by the National Education Association
and the United States Ofﬁce of Education. A carefully prepared
“Handbook” outlining in detail the revised system, is being pub-
lished for the use of administrators and boards of education through-
out the State.

The chief purposes of this new procedure are three-fold: First,
to enable local school officials to determine their exact ﬁnancial status
and the more intelligently to formulate their programs; second, to
simplify their own work and that of auditors and inspectors in check-
ing all ﬁnancial records; third, to enable those handling the funds
to determine more deﬁnitely the value and the cost of various ele-
ments of their respective systems.

.ﬂ’.

With these purposes in mind, with a desire to assist local school
people in recording all business transactions in such a way as to in- .
spire the deserved conﬁdence and support of their districts, and with
the sincere hope ,of informing the public and enlisting their sympa- i
thetic support, we present these facts and solicit hearty cooperation
in an effort toward greater efﬁciency in our educational work.

Errors in Estimating Income Necessitated New Budget
’ System *

In the year 1930-31 county boards of education of the State ex—
p ceeded budget estimates of expenditures $1,526,239. In 1931—32 the
same boards of education exceeded budget estimates of expenditures
$831,688. During the years named county boards of education missed
their estimates as high as 58.5 per cent or were less than half right,
as revealed by Table I.

TABLE I

The Percentage of Errors Made by County Boards of
Education in Estimating Budgets

| Per cent Per cent
Item ' " " ' | error error

i 1930—31 1931—32

General Control ...................................... 13 l 7
Instruction ........ 14 i 2
Operation 19 3
Maintenance ______________ 15 i 4
Auxiliary Agencies .......... 15 | 20
Fixed Charges ............... 5 | 5
Capital Outlay . ....| 58.5 | 35
Debt Service ............................................ l 41 | 46
WHY THE OLD BUDGET SYSTEM WAS lNADEQUATE. it

First—Lack of emphasis. We have not looked upon the budget
as a guide which, if properly used, will enable boards of education to
keep their expenditures within their income. We have not used the
budget to see what we can do and what we cannot do. We have been
too busy adopting educational programs, revising curriculums, and
improving instruction—all quite worthy activities indeed,——but in our .
enthusiasm to perfect the superstructure we have neglected to build
a secure foundation which must be a safe, sound, and well-balanced
ﬁnancial policy. .
SecondﬁLaek of uniformity in the system used. Boards of edu-
cation have been asked to budget estimated receipts and expenditures
in one way under deﬁnite headings. They have classiﬁed expendi—
tures in another way, and reported such information annually in a
different way from either of the other two.

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Third—Lack of uniformity in practice. County boards of educa-
tion are required to submit budgets and salary schedules to the State
Board of Education for approval. City boards of education have
not been asked to submit either. Independent graded school boards
have submitted budgets but not salary schedules.

Fourth—Lack of administration of the budget. Budgets have
been prepared, adopted, approved, and forgotten; hence, they have
not been administered.

WiH EN BUDGETS ARE MADE.

Budget estimates made in the past were based upon inadequate
and unreliable information. The estimates were made so far in ad-
vance of the time of beginning operation according to the budget that
the most careful calculations were often found to be in error.

The facts given in Table II make it imperative to submit a pre-
liminary budget, which in reality is a ﬁrst estimate. The law govern-
ing budgets in county districts requires that it be The Budget; thus
there is no chance to revise the ﬁrst estimate. The majority of
budgets now in use are prepared after February, before the period of
operation begins in July. Attention is directed to the fact that for
the school year 1932-33 ﬁve county budgets were adopted from seven
to ten months in advance of the beginning of the ﬁscal year budgeted.
Six years ago seventy—seven counties budgeted from seven to nine
months in advance of the period budgeted.

TABLE II

Months in Which the Levies Asked by County Boards of Education Were
Made by Fiscal Courts in Years 1927 to 1933

School School School School School School

Month Year Year Year Year Year Year
1927-28 1928—29 1929-30 1930-31 1931-32 1932-33

Sept. 0 0 0 0 0 (’31) 1
; Oct. (1926) 1 (’27) 0 (’28) 3 (’29) 2 (’30) 5 (’31) 2
Nov. (1926) 1 (’27) 0 (’28) 0 (’29) 1 (’30) 0 (’31) 1
Dec. (1926) 75 (’27) 14 (’28) 3 (’29) 2 (’30) 2 (’31) 1
Jan. (1927) 1 (’2‘8) 0 (’29) 8 (’30) 6 (’31) 5 (’32) 6
Feb. (1927) 2 (’28) 18 (’29) 7 (’30) 3 ("31) 5 (’32) 6
rMar. (1927) 7 (’28) 37 (’29) 10 (’30) 12 (’31) 4 (’32) 35
Apr. (1927) 25 (’28) 37 (’29) 73 (’30) 65 (’31) 67 (’32) 37
May (1927) 3 (’28) 5 (’29) 8 (’30) 15 (’31) 10 (’32) 17
June (1927) 0 (’28) 8 (’29) 8 (’30) 5 (’31) 10 (’32) 10
July (1927) 1 (’28) 0 (’29) 0 (’30) 2 (’31) 3 (’32) 0
Aug. (1927) 1 (’28) 1 (’29) 0 (’30) 3 (’31) 2 (’32) 2
Sept. (1927) 0 (’29) 0 (’28) O (’30) 2 (’31) 1 (’32) 2
Totals 117 120 1210 120‘ 114 120

TRENDS IN Fl’NANClAiL ACCOUNTING IN OTHER STATES

l Twelve states, Indiana, Alabama, Virginia, New Jersey, Iowa,
South Carolina, Arkansas, Oklahoma, Michigan, Wisconsin, Pennsyl-

I. .W.
5

vania, and Minnesota, answered a request for forms and records used
as a basis of ﬁnancial accounting in the reSpective states having a state
accounting system. These state setups were studied in order that
prevailing practices in ﬁnancial administration might be determined.
The eight functional divisions accepted by all states were found to
be sub-divided by the thirteen states studied, including Kentucky,
into 396 different classiﬁcations as follows:

General Control 79 sub-div. Auxiliary Agency 59 sub-div.
Instruction 90 sub-div. Fixed Charges 15 sub-div.
Operation of School
Plant 38 sub-div. Capital Outlay 55 sub-div.
Maintenance of :School
Plant 41 sub-div. Debt Service 99 su’b-div.
TOTAL—396

Thus it is revealed that little uniformity of sub—divisions under
the main headings prevails among the states studied. The classiﬁca—
tion of expenditures of the eight main headings ranges all the way
from eleven found in Kentucky to more than one hundred found in
New Jersey.

The most frequent classiﬁcations used by the twelve states
studied and those used by Kentucky were compared with the classi-
ﬁcation suggested by the United States Ofﬁce of Education. From
this table of comparison a classiﬁcation for Kentucky’s new ﬁnancial
accounting system was worked out by a sub-committee of the Ken-
tucky Educational Commission on “Financial Administration” com-
posed of F. D. Peterson, Director of Finance, State Department of
Education, Chairman, J. L. Foust, Superintendent City Schools,
Owensboro, Kentucky, L. E. Meece, Assistant, Bureau of School Serv—
ice, University of Kentucky, Lexington, Kentucky, (former County
Superintendent Pulaski Countv), and A. D. Owens, Superintendent
City Schools, Newport, Kentucky. The report was submitted to and
adopted by the State Board of Education and is shown in Table III.

TABLE III

Financial Classification of Receipts and Disbursements
For Use by Public School Districts

Code No. Receipts

1000 State per capita apportionment

1050 Other State Aid (Smith-Hughes, etc.)

1100 Revenue from property tax

1110 Revenue from bank shares

1120 Revenue from taxpaying franchise corporations
1130 Revenue from capitation tax

1150 Revenue from special subdistrict tax

1200 Revenue from tuition

1250 Revenue from interest on deposits

1300 Revenue from all other sources

1400 Non-revenue from loans and sale of serial bonds
1450 Non-revenue from sale of property and insurance adjustments
1500 Non-revenue from all other sources

._—.

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Disbursements
100—199 General Control:
101—129 Educational Administration
101 Salary of Superintendent
105 Salary of Assistant Superintendent
110 Clerks and stenographers
115 Office supplies and equipment
120 Other expenses of educational administration
130—139 Business Administration: '
130 School Board per diem and expenses
132 _ Surety bonds and expenses of officials
136 Operation and maintenance of administrative offices
140—149 Other Administrative Officers and Employees
140 Census enumeration
144 Other expenses of business administration
200—299 Instruction:
201—209 Salaries of Supervisors and Principals
201 Elementary Schools
205 High Schools
210—219 Supplies and other Expenses of Supervisor and Principal
210 Elementary Schools
215 High Schools
220—259 Salaries of Teachers
225 Elementary Schools—Men
230 Elementary Schools—Women
245 High Schools—Men
250 High Schools—Women
260—269 Educational Supplies
262 Elementary
266 High Schools
270—279 Library and supplementary books.
272 Elementary Schools
276 High Schools
280—289 Other Expenses of Instruction
282 Elementary Schools
286 High Schools
300—399 Operation of 'School Plant
301 Wages of janitors and engineers
311 Janitors’ and engineers’ surpplies
321 Fuel
331 Water, light and power
341 Other expenses
400—499 Maintenance of School Plant
401 Upkeep of Grounds; Repair of buildings and service system
421 Repair and replacement of furniture and equipment

500—599 Fixed Charges:
501 Insurance Premiums
511 Rent
521 Contributions and Contingencies

600—699 Auxiliary Agencies:
601 Promotion of health
611 Cost of schoolathletics and play grounds
621 Enforcement of attendance
631 Transportation of pupils
641 Free lunch service
651 Other Auxiliary Agencies
661 Transfer tuition to other districts

iv”

700—799 Capital Outlay:

701 New grounds and new buildings
711 New furniture and new equipment
721 Alteration of old buildings

800—899 Debt Service:

801-819 Redemption of serial or funding :bonds and loans
802 From current funds
812 From sinking fund

820—839 Interest on indebtedness

821 From current funds
831 From sinking fund
840-849 Sinking fund purposes
840 Transfers to school sinking fund

PURPOSE OF THE NEW ACCOUNTING SYSTEM.

The chief purposes of an efﬁcient system of accounting as em-
ployed in our revised forms and procedure are the following:

First, to enable administrators and boards of education to deter-
mine their exact ﬁnancial status at any time, and thus to aid them in
the formulation of educational programs.

Second, to facilitate the work of accountants and representatives
of the State Department in auditing and inspecting all books and
records of ﬁnancial transactions. This not only safeguards the in-
terests of the public, but protects the reputatiOn of those who handle
public funds.

Third, to enable school administrators more efﬁciently to demon-
strate their programs and to determine more accurately the real
value of various agencies employed in the system, thus eliminating
the more expensive or less efﬁcient elements.

The New Accounting System
The accounting system comprises two parts, to-wit:

Part I. BUDGET.

1. Deﬁnition.

A recent issue of the American School Board Journal says, “The
tendency—is to scrutinize public expenditure with an eye to the
achievement of economy without impairing efficiency. This scrutiny
ﬁnds expression in a budget which has been systematically and judi-
ciously constructed and which reﬂects economy and efﬁciency in the
light of the funds at commanc .”

A deﬁnition by Buck and Reeder is as follows: “The budget, in
the strict sense of that term, is a complete ﬁnancial plan for a deﬁnite
period, which is based upon careful estimates both of expenditure
needs and of probable income.”

A school budget is the ﬁnancial plan for a school system, large or
small, for the ensuing ﬁscal year. It is to the administrator what

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blue prints are to the builder. It is the most important of all ﬁnan-

cial statements and is the basis of ﬁnancial control. “A school

.t budget,” says Dr. C. A. DeYoung in a recent publication, “is a com—

‘ plete educational and ﬁnancial forecast, based on past experiences,
present conditions, and future needs.”

A budget is made in compliance with the law pertaining to the
particular school district for which a levy is to be made. The “Work-
ing Sheet” of the budget, which is a close estimate, is to be ﬁled with
the State Department of Education after the close of the ﬁscal year

k‘ June 30th. This part of the budget is due on or before the 10th day
of July of each year.

2. Principles.
Underlying the process of budget-making and budget-using are
certain fundamental principles, which may be considered under the
, following classiﬁcation: Preparation, Presentation, Adoption, Ad-
‘ ministration.

a) Preparation.

The preparation of a school budget is not a simple task to be per-
formed in a few minutes. It requires time, abundant information,
accurate data as to needs and ﬁnancial ability of the district, scrupu-
lous care, and the hearty, intelligent cooperation of the administrator
and the Board. Advice and assistance of public-spirited citizens
would be helpful and should be welcomed.

1 It is noted that in county systems the law provides, “It shall be

5 the duty of the county board . . . to prepare . . . an itemized
and detailed school budget” . . . “on and with the advice of the
county superintendent.” Another section reads thus: “The county
superintendent of schools shall take the initiative in the preparation
and presentation of the annual school budget.”

As the professional adviser and executive ofﬁcer of the board, the
superintendent is held responsible for the success of the system. It
is, therefore, his duty and responsibility to see that this important
task is performed With the utmost care.

[6 It should be borne in mind that “no activity involving expendi-
le ture of public funds can be legally carried out unless provided for in
{y the budget.”

.1-

1e « b) Presentation.

It is very sesential that, in presentation of the budget, every re-
in quest, especially for increased appropriations, should be justiﬁed.
te Demands for larger levies should always be accompanied by valid
re reasons for such demands. Care should be exercised also in the mat—

ter of favorable publicity, as it is usually helpful in creating public
or sentiment. Here again the superintendent can generally be of great
at assistance, because of his familiarity With the educational needs of his

system and the ﬁnancial ability of the district—city, graded or
county.

In many communities, rural and urban, throughout the country,
school ofﬁcials prepare a large number of copies of the budget for the
use of the public, or of such citizens and taxpayers as might desire
the information contained therein. Others furnish copies to the
press, while some advertise in the newspapers that copies of the
budget are available for those who desire to call for them. There is
a marked tendency on the part of the public to expect public ofﬁcials
to take the people into their conﬁdence. This procedure is worthy of
thoughtful consideration.

0) Adoption.

When properly prepared and legally presented, the adoption is
usually a mere matter of routine. On this particular point the law
is clear. Sec. 4399a-8, Ky. Stat. provides that, “When such budget
has been submitted to the ﬁscal court as herein provided, it shall be
the duty of the ﬁscal court to make the levy therein recommended and
demanded.”

Citations: Co. Board of Marshall Co. v. Fiscal Court of Marshall
00., 229 Ky. 774; McCreary Co. Fiscal Court v. McCreary Board of
Education, 236 Ky. 149; Elliott Co. Fiscal Court v. Co. Board of
Education, 192 Ky. 66 ; Fiscal Court of Pendleton Co. v. Co. Board of
Education, 240 Ky. 589; Elliott v. Fiscal Court of Pike 00., et al., 237
Ky. 797.

(1) Administration.

The real test of any system is in the administration of the budget.
It may be prepared with care and precision, presented with skill and
diplomacy, adopted without discord or delay,—and then wrecked by
blunders of administration. Legally there may be a divided responsi-
bility; but, as the administrative and executive head of the system,
the superintendent himself must bear the burden. He is responsible
directly to the board that employs him, and through them indirectly
to the public. “

It is the duty of the Superintendent to guard carefully the expen-
diture of every dollar, to keep accurate account of the same, and to
endeavor to maintain the highest standards possible with the funds
available. An exact system of accounting, the revised forms and pro-
cedures, the code numbers, and the complete monthly ﬁnancial re-
ports will enable boards and adminstrators the more easily to keep
within the law and the limits of the budget. ‘
’“ As 116 money can be legally expended without the aproval of the
board, that body is itself responsible for the exercise\ of authority
delegated to the superintendent. Education is universally recognized
as a State function, and a considerable portion of the school revenue
is derived from state per capita. Therefore, it logically follows that

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the State Department of Education also bears a share of the responsi-
bility in administering school budgets and school systems. The law
wisely clothes the Superintendent of Public Instruction and his
assistants with “power to examine the management of public
schools.”

The more faithfully local boards and superintendents discharge
their duties in administering the budget, the less necessity there is
for the exercise of inspection on the part of the State, or by the State
Superintendent and his assistants.

Part II. FINANCIAL RECORD BOOK.

Receipts and Expenditures. This book is a detailed record of
money received and distributed as to revenue receipts and non-
revenue receipts, and of costs and expenditures properly allocated, as
required by law and rules and regulations of the State Board of Edu-
cation. Receipts and expenditures are placed in the same book, in
order to eliminate separate accounts and the confusion and additional
labor incident to the use of separate books. Receipts are classiﬁed as
explained above. Expenditure forms for each of the standard groups
used in school accounting are as follows:
‘General Control
Instruction

Operation of School Plant
Maintenance of School 'Plant

Fixed Charges
Auxiliary Agencies
Capital Outlay
Debt Service

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9:49?“

New Forms in the New System

Within recent years public school accounting has developed to
such an extent that it necessitates the revising and enlarging of Ken-
tucky’s ﬁnancial accounting system, in keeping with more efﬁcient
state systems of the Union. The budgeting system has been divided
in a Budget and a Working Sheet of the Budget. Monthly ﬁnancial
reports provide for budget control statements. Budgets and monthly
and annual ﬁnancial reports have been made uniform with the new
ﬁnancial ledger of receipts and expenditure classiﬁcations.

Budget Form, F-1. This form permits the estimated budget to
be made according to functional headings. The functional divisions
of the Budget provide for the total estimated expendituresfor each
major heading. Two extra columns are provided for two previous
years’ expenditures for comparative purposes. This form has been
prepared for use by county and city school districts.

Subdistrict Budget, Form F-1-3. This is prepared for use by
county school administrators for the purpose of budgeting consoli-
dated or subdistrict special taxes. It is intended to be ﬂexible enough
to meet the needs of such subdistricts which have voted a special tax
levy to suplement school costs therein.

Independent Graded School Budget, Form F-5. Such districts
are granted permission, by law, to make their own levy. This form
is similar to Form F—l with changes sufﬁcient to give independent
graded school districts levying authority not granted to county and
city school districts.

Working Sheet of the Budget, Form F—lO. This form provides
for a close estimate of the Budget, or an Operating Budget, based
upon more deﬁnite information than is possible to be secured before
the beginning of the ﬁscal period. The Working Sheet affords an
opportunity for the administrator to take into account losses which
necessarily come after receipts are estimated. Allowances can be
made for delinquencies, duplications, exonerations, etc. Because of
legal reasons this cannot be done when preparing The Budget. If
assessments are further reduced or revenue falls under the original
income estimates, expenditure estimates may be scaled down or up
as the case may be, so that “the cloth will ﬁt the pattern.” The
Working Sheet affords an excellent opportunity for comparisons, in
that, receipts and expenditures for the two preceding years are given.
This feature introduces a new step to most budget makers iii-this
State. This form is due after July 1, each year.

Salary Schedule, Form F—10-4. This form is a supplement for
Form F-lO and is proposed as a single salary schedule for county
school district teachers. So far it does not apply to teachers in city
and independent graded school districts.

Receipt Ledger, Form F-15. This is a part of the new ﬁnancial
record book. Receipts are coded and divided as to sources. Revenue
receipts and non-revenue receipts are separated.

Disbursement Ledger, Form F-20 (1), (2), (3). Functional
accounts for the eight generally accepted divisions—General Control,
Instruction, Operation, Maintenance, Fixed Charges, Auxiliary
Agencies, Capital Outlay and Debt Service are consolidated into
Form F-20, in order named, thereby eliminating the necessity of
having separate ledgers for each major division. (For sub-divisions
see Table III.)

Receipt Sumary, Form F-25. This is a part of the ﬁnancial
record and provides for condensing to a monthly total, daily receipts
from the various sources. Revenue receipts and non-revenue receipts
are summarized separately.

Disbursement Summary, Form F-30. This likewise is a part of
the ﬁnancial record and permits monthly expenditures to be reduced
to totals for each sub-classiﬁcation throughout the ﬁscal year.

Recapitulotion, Form F-35. This form is the consolidated sum-

.mm.

mary to the system for recording monthly transactions. It reduces
all totals to grand totals received and disbursed, recording monthly
balances.

Treasurer Order Blank, Form F40. The minutes of the board
of education reveal that claims properly presented were legally
authorized to be paid. The treasurer is sufﬁciently notiﬁed and
ordered to pay recipients appearing 011 the treasurer order sheet
when received properly signed by the Secretary and Chairman of the
particular board of education. Such order sheet is the treasurer’s
authority and protection for disbusing school funds.

Treasurer’s Monthly Report, Form F45. This is a monthly
ﬁnancial report to be made by the treasurer of each board of educa-
tion, revealing the ﬁnancial condition of the treasury.

Monthly Financial Report, Form F—50. The new monthly ﬁnan-
cial report carries ﬁve columns. The items reported are the same as-
those budgeted and recorded in the ﬁnancial record book. It is a
budget control statement.

Column two of the monthly report is for reporting expenditures
made for the current month; column three is for the budgeted allow-
ance for the particular item at the beginning of the school year, as
revealed by Working Sheet approved; column four is for the accumu-
lated or total amount expended to and including the month reported;
column ﬁve is for reporting the difference between column three and
column four, thus giving the unexpended balance in each budgeted
item. Such report will reveal to board members monthly the true
condition of unexpended budgeted allowances. It will enable the
State Department of Education to check monthly on boards of edu-
cation as to whether or not their expenditures for any items are ex-
ceeding budget appropriations.

Annual Financial Report, Form F-55. This form will take the
place of the present annual audit report. It is an annual summary
of the monthly ﬁnancial reports made during the year. The major
part of this report may be made by copying summaries of Receipts
and Disbursements found on Form F-25 and F—30. It further pro-
vides for a balance sheet, together with a list of unpaid accounts, etc.

Business Forms

Requisition Form, F-65. In the matter of requisition, as in other
forms herein enumerated, two essentials are simplicity and “work-
ability”. This form is designed to facilitate accuracy in general
accounting and also to enable administrators to determine the “over-
head” in any unit of the system. This will check waste of materials .
or extravagance in expenditures.

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.4" ‘

Purchase Order, Form F-70. The purchase order is another aid
to administrators. It possibly contributes as much toward the success
or failure of the system as the proper selection, assignment and super-
vision of teachers. N0 order for any type of quantity of school sup-
plies, furniture or equipment should be made except by this means.
Every order should be made in duplicate, the original being for-
warded to the vendor and a copy retained and ﬁled in the administra-
tor’s ofﬁce. These should be numbered and kept in chronological
order. Such forms and practices will be of great value in the audit—
ing of the accounts, the settlement of bills, and for reference in future
orders.

Claim Form, F—7 5. This form is recommended and issued in an
attempt to secure uniformity in claims ﬁled in the ofﬁce of the proper
ofﬁcial. Legally a claim must be ﬁled with the board of education
“in writing, itemized and verified.” Claims sho