Page 22 - School Finance Manual 2025-26

How Budgets are Categorized cont. 22

Indirect Costs - Fund 570 3. Pupil and non-pupil transportation vehicles and
This fund is used to account for monies transferred from equipment, including all capital expenditures within
federal projects, including the Food Service Fund, for a contract, if the district contracts for pupil transpor-
administrative costs. A district may use this fund only tation.
when it has obtained an indirect cost rate approved by 4. Textbooks and related printed subject matter mate-
the Arizona Department of Education. rials adopted by the governing board.

Unemployment Insurance - Fund 575 5. Instructional aids, including instructional software.
This fund is used by districts using the reimbursement 6. Library books.
(self-insured) method of accounting for unemployment
insurance contributions. Deposits are made into this 7. Payment of principal and interest on bonds.
fund based on an appropriate percentage of salaries in
various funds. When former employees draw upon their 8. District administration emergency needs that are
benefits, expenditures are made from this fund to reim- directly related to pupils.
burse the Department of Economic Security.
Please consult the USFR Chart of Accounts to help
Advertising - Fund 595 determine whether an item should be coded as to the
Unrestricted Capital Outlay Fund.
Fund 595 is used to record revenues from the sale of
advertising space, such as on the exterior of school buses
or on athletic facilities.
Adjacent Ways - Fund 620
Career Technological and
Education Districts - The governing board This fund is used to account for special
property tax assessments used for
Fund 596 constructing, maintaining or otherwise
This fund is used to account for reve- of a district may permit improving any public way adjacent to
nues received by member districts the use of school prop- any parcel of land owned by the school
from Career Technological and district or leased for school purposes by
Education Districts for use in joint erty, under its direction, the school district, or an intersection of
technical education programs. for civic activities. any public way adjoining a quarter block
in which the parcel of land is situated, and
for the construction of sidewalks, sewers,
utility lines, roadways and other related
Capital Related Funds 600 - 700 improvements in or along such streets and intersec-
tions. The monies generated from this assessment shall
Unrestricted Capital Outlay - Fund 610 not be used for any construction, maintenance or other
The Unrestricted Capital Outlay section of the budget improvements to the school district’s property except
accounts for budgeted expenditures for acquisitions by improvements necessary to assure the safe ingress and
purchase, lease-purchase, lease or long-term lease of egress for buses and fire equipment in accordance with
capital items. These are defined in the Uniform System A.R.S. §15-995. Unexpended funds can be carried over
of Financial Records, which include the following areas: from year to year and interest earned should be credited

1. Land, buildings, and improvements to land and to the fund.
buildings, including labor and related benefits
costs and materials if the work is performed by
school district employees.

2. Furniture, furnishings, athletic equipment and
other equipment, including software.
Arizona Association of School Business Officials | School Finance Summary Manual