School finance is complex. There are many formulas and acronyms.
An explanation of the most commonly used funds in the district is provided below.
Fund 10 – General Fund
This fund receives its revenues from the school finance formula. It is a governmental fund under GAAP (Generally Accepted Accounting Principles) and accounts for the revenues and expenditures for the educational program and most school district operations. All moneys received by a school district from taxes and other sources must be accounted for in the General Fund except moneys required by law to be accounted for in another fund. Expenditures include employee salaries and benefits (except nutrition and child care), textbooks, tuition, open enrollment, supplies, contracted services, travel, etc.
Fund 21 – Student Activity Fund
Moneys from student-related activities such as admissions, activity fees, student dues, student-fundraising events, or other student-related co-curricular or extracurricular activities are deposited in this fund. Expenditures for interscholastic athletics, student councils, clubs, and other student activities are from this fund.
Fund 22 – Management Fund
This fund is supported by a property tax levy used for early retirement, unemployment, tort liability, and insurance. The district belongs to the Iowa Association of School Board’s Safety Group that provides insurance on vehicles, buildings, errors and omissions, etc.
Fund 31 – Capital Projects Fund
This fund accounts for expenditures funded by governmental obligation bonds to be used for construction of buildings, purchasing property, equipment, technology, etc.
Fund 33 – Statewide School Infrastructure Sales and Services Tax (Sales Tax) Fund
This fund accounts for the revenue and expenditures connected to the statewide sales tax for school district. Funds may be used for the same purpose as Capital Projects Fund and PPEL Fund and include construction of buildings, purchasing property, equipment, technology, etc.
Fund 36 – Physical Plant Equipment Levy (PPEL) Fund
This fund is a capital project fund providing a maximum of $1.67 per $1,000 of assessed valuation. The board may approve 33 cents annually in property tax; and/or hold an election for up to $1.34 for a period of up to 10 years and funded by property tax or property tax and income surtax. Funds may be used for the same purpose as Capital Projects and Sales Tax Funds and include construction of buildings, purchasing property, equipment, technology, etc.
Fund 40 – Debt Service Fund
Voters may approve bonded indebtedness for a period of up to 20 years and a rate limit up to $4.05 per thousand dollars of assessed valuation. The debt levy revenue is used to pay the interest and indebtedness costs. Moneys available to service this debt and received from other sources are transferred to the debt service fund and the payment is then made from this fund.
Nutrition and Child Care Funds are enterprise funds used to account for operations that are operated in a similar manner to private business where revenues are based on fees charged and expenses are directly associated with the operations.
Fund 61 – Nutrition Fund
This fund accounts for revenues and expenditures connected with operating the District’s lunch and breakfast programs.
Fund 62 – Child Care Fund
This fund accounts for revenues and expenditures connected with operating the District’s before and after school child care and summer child care programs.