School District Funds. School district accounting requirements organize and operate on a fund basis. Under current law, school districts must establish:
School districts must establish a depreciation subfund within their general fund to reserve funds for future facility and equipment needs. Up to 2 percent of a school district's general fund may be deposited into the depreciation subfund each fiscal year for emergency facility needs and preventative maintenance.
Preventative maintenance must be necessary to realize the originally anticipated useful life of a building or facility, and includes:
School districts, subject to applicable public works bid limits, may use school district employees to perform preventative maintenance with moneys from the subfund, but moneys from the subfund may not be used for employee compensation unrelated to authorized subfund uses.