District Financial Reporting

District Financial Reporting

Published: 11/7/2022 10:55 AM

Accounting Procedures for School Activity Funds
School Activity Funds Handbook formerly known as the Red Book.

This site provides administrative support to the Kentucky school districts with links to the School
Facilities Construction Commission Requirements Report and District Debt Service Reports. These reports are used in determining the bonding potential of each school district. This site also provides the Bond of Depository and Fidelity Bond instructions and/or form for completion and submittal to KDE for approval by the Commissioner of Education. 

Pledge of Collateral
Statutes and regulations require financial institutes pledge collateral to ensure sufficient coverage of all deposits in case of default by the financial institution. School districts are required to obtain pledges of collateral for deposits in excess of the FDIC guarantees.

All districts are required to ensure all staff who handle district funds are fully bonded to provide protection against the risk of loss due to fraud or embezzlement. KDE establishes minimum bond amounts for each school district annually.​

Capital Funds Request
House Bill 265 allows flexibility in the use of school district capital funds without forfeiting the district’s eligibility to participate in the School Facilities Construction Commission (SFCC) program. 

District Financial Audits
Local school districts are audited annually by independent certificated public accountants (CPA's). The results of the audits can be reviewed on this webpage.

District Payment Registers
District payment registers are provided for districts to verify state payments have been recorded properly and the auditors use the registers in completing the districts' fiscal year financial audits.

Federal Reimbursement of Health Benefits
The Kentucky Department of Education (KDE) receives reimbursement from the local school districts for the school district employer's portion of Health Insurance, Life Insurance, Administrative Fees, Health Reimbursement Account (HRA), and Dental and Vision Reimbursement Account paid for federally funded district employees. 

Finance Officer Certification
The Finance Officer Certification program establishes the standards for certification and continuing education requirements.

Finance Officer Training

Guidance for districts, providers, and finance officers regarding the types of training that can be approved.

Financial Audit Contract Information
Local school districts are audited annually by certificated public accountants (CPA's). Statutory and regulatory requirements for local school district audits and information regarding resolution of exceptions are located within the Auditor Contract Documents located here.

Financial Management Calendar, Financial Management Manual, Insurance Guidelines, Who Does What in DDS and Finance Newsletters
The calendar, manual, guidelines and newsletter serve as tools to provide finance officers and superintendents with the latest information on accounting, data, financial reporting requirements, and to serve as a reminder of financial/budget processes that need to be completed as well as the KDE due dates.

Fund Balances, Revenues and Expenditures, Chart of Accounts, Indirect Cost Rates and Key Financial Indicators
Fund Balance reports show what percentage of district's general fund dollars are left over to use for unexpected expenditures. Annual Financial Receipts and Expenditures capture revenue and expenditure data, both as of the end of the fiscal year.

Chart of Account structure is made up of codes that identify particular fund, unit, function, etc. that is designed for use in computerized accounting systems/spreadsheets. 
Indirect costs is calculated by the “predetermined” method, which requires a 10% reduction in the rate to allow for changes/fluctuations from year to year using numbers reflected in your district’s Annual Financial Report from the previous year. Key Financial Indicators Template is provided to assist in conducting the financial analysis of the district.
Health and Life Insurance Benefits and Flexible Spending Accounts
The Department of Employee Insurance (DEI) is responsible for administering the Health Insurance Benefits and the Flexible Spending Accounts to local school board employees.  The Kentucky Group Life Insurance (GLI) is responsible for administering the life insurance benefits for the local school board employees.

State agencies make payments on behalf of local school districts for the employer’s portion of Health Benefits, Kentucky Teachers’ Retirement System (KTRS), Technology and Debt Services, along with receiving Federal Reimbursement payments from districts for the employer’s portion of health benefits paid for federally funded district employees.
Personnel information on school district staffing, certified and classified salaries, job descriptions, National Board Certification Reimbursement and Superintendent Compensation.

Steve Lyles
Office of Finance and Operations
Division of District Support
300 Sower Blvd., 4th Floor
Frankfort, KY 40601
(502) 564-3930
Fax (502) 564-6771
  • Normal Font Size