Page 21 - School Finance Manual 2025-26

How Budgets are Categorized cont. 21

Community School - Fund 520 Gifts and Donations - Fund 530
This fund is used to account for revenues and expen- This fund is used to account for the revenues and
ditures for the purposes of academic and skill develop- noncapital expenditures of gifts, donations, bequests
ment for all citizens in accordance with A.R.S. §15-1141, and private grants made to the district (A.R.S. §15-341
§15-1142 and §15-1143. This fund can be used to account (A) (14). Fund 650 can be established for gifts and
for such areas as summer school on a tuition basis, GED donations for capital items.
testing, and adult basic education programs. In accor-
dance with A.R.S. §15-342(30), if program needs are
met, excess monies may be expended for maintenance School Opening - Fund 545
and operations or unrestricted capital outlay purposes. This fund is used to account for monies transferred in
from the Maintenance and Operation Fund ending cash
Auxiliary Operations - Fund 525 balance to be expended for maintenance and opera-
This fund is used to account for revenues and expendi- tion purposes incurred in the first year of operation of a
new school within the district. Monies in this fund are not
tures related to the bookstores and athletic activities in subject to reversion, except that at the end of five years
accordance with A.R.S. §15-1125. It can also be used without any activity in the fund, any remaining monies
for class fees and miscellaneous classroom collections, must be reverted to the Maintenance and Operation
such as field trips and book stores. Examples can be Fund. A.R.S. §15-943.01 Budget balance carry forward
found in the USFR.
must be reduced by amount of the transfer.

Tax Credit - Fund 526 Insurance Proceeds - Fund 550
This fund is used to account for revenues and expen-
ditures of monies collected in support of extracurric- This fund is used to account for the monies received
ular and character education activities, standardized from insurance claims and the related expenditures
test fees, prep classes and CTE assessments. Contri- (A.R.S. §15-1103 (A)) These funds are primarily for the
butions to this fund may be taken as a tax credit by replacement of capital facilities and equipment.
the taxpayer in accordance with A.R.S. §43-1089.01.
Amounts in this fund should be spent on the activities
for which they are collected. In accordance with USFR
Memorandum No. 214, districts may choose to account
for these transactions in Auxiliary Operations – Fund
525, rather than the 526 fund, however, revenues and
expenditures must be reported separately between
auxiliary operations and tax credit.

Through June 30, 2029, Public School Tax Credits may
be used on the following additional categories: acquiring
capital items as defined in USFR including those items
listed in should be §15-903, subsection C, paragraphs
2 through 8, community school meal programs, student
consumable health care supplies and playground equip- Textbooks - Fund 555
ment and shade structures for playground equipment.
This fund is used to account for monies received from
students to replace or repair lost or damaged textbooks
and library books, supplementary books or instructional
computer software. (A.R.S. §15-729).

Arizona Association of School Business Officials | School Finance Summary Manual