(a) All athletic expenditures must be charged to a budget unit containing the appropriate:

1. (1) Fund;
2. (2) Source of fund;
3. (3) Function; and
4. (4) Location codes.

(c)

1. (1) Expenditures for property insurance, utilities, and maintenance, including salary and benefits for employees providing janitorial or maintenance services, must be charged to athletics based upon the adjusted square footage of athletic buildings as a percentage of total square footage of all buildings.
2. (2) The square footage of all buildings shall be obtained from the most current property insurance statement of values.
3. (3) The adjusted square footage of athletic buildings shall be divided by the total square footage of all buildings to determine the percentage of square footage used for athletics.
4. (4) The percentage determined in subdivision (c)(3) of this section, carried to five (5) decimal places, shall be applied to the total cost of property insurance, utilities, and all other maintenance costs to determine the amount applicable to athletics.

5. (5)

   1. (A) The amounts determined in subdivision (c)(4) of this section shall be recorded by posting a journal entry prior to:

(i) Each year-end final close; and

1. (ii) Prior to submitting the annual financial report to the Department of Education.

   1. (B) Documentation supporting the journal entry shall be retained for review by Arkansas Legislative Audit.

2. (6) Expenditures for property insurance, utilities, and maintenance shall not be directly coded as athletic expenditures so that the allocation method does not overstate athletic expenditures.

   1. (d)
3. (1) When district-owned vehicles are used for transporting students, faculty, spirit groups, band, or patrons of the school district to any interschool athletic program event, the district shall use the statewide average student transportation cost per mile as determined by the department.
4. (2) Districts must maintain all documentation supporting all athletic transportation miles.

(e)

1. (1) Expenditures for the construction or renovation of athletic buildings shall be:

   1. (A) Charged to athletics; minus
   2. (B) The construction and renovation costs of square footage required for physical education courses by the most recent Program of Requirements contained in the Arkansas School Facility Manual published by the Division of Public School Academic Facilities and Transportation.
2. (2) For example, if a school district already has the physical education square footage required and builds a new gymnasium, the entire construction cost of the new gymnasium shall be charged to athletics.