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| Financial Organization |
| Budget Structure |
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| The budget of the School District of Lee County
is prepared in accordance with the requirements of Florida State Statutes,
Florida Department of Education Administrative Rules, and the "Financial and
Program Cost Accounting and Reporting for Florida Schools", commonly known as
the "Red Book." Budgetary accounts are maintained on a modified accrual basis1
in accordance with Generally Accepted Accounting Principles. The District’s
audited financial statements are presented in the format required by the
Governmental Accounting Standards Board (GASB) Statement 34. GASB Statement 34
uses the accrual basis of accounting2 for the Government-Wide
Financial Statements, proprietary and fiduciary fund statements.
The Statement also requires the modified accrual basis of
accounting for the general, special revenue, debt service and
capital projects fund statements. |
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| The budget is divided into six major fund groups: |
- General Fund provides funding for the operations of the School District of Lee County,
- Debt Service Funds provide for the retirement of debt and lease-purchase obligations (COPs),
- Capital Funds are comprised of state and local revenue allocations to build and maintain District buildings and to purchase equipment,
- Special Revenue Funds are comprised primarily of federal categorical grants,
- Internal Service Funds are essentially clearing accounts for the School District's
insurance programs, with funding levels determined by insurance activity and actuarial requirements,
- Food Service Fund is supported from revenue from food sales and allocations from the federal government.
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State regulations require school districts to
present their budgets on the basis of “functions” and “objects”.
Functions designate where the money was
spent, (i.e., classroom instruction or instructional pupil personnel services,
etc.).
Objects show what the money was spent on, (i.e., salaries, supplies, etc.).
This budget document uses functional and object
summaries that are informative and beneficial to the reader.
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1 The method of accounting in which revenues are recognized when earned and available
2 The method of accounting in which revenues are recorded when levies are made and
expenditures are recorded as soon as they result in liabilities, regardless of
when the revenue is actually received or the payment is actually made.
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