The School Planning, Evaluation, and Communication System (SPECS) is an overall design for districtwide program assessment and development. It is both a way of interrelating planning and evaluation of individual programs and a way of comparing the outcomes of all district programs with the district's community-defined educational goals. Component Two of the five SPECS components is a program budgeting and accounting system that provides a way to collect and analyze financial information about actual operating programs. This booklet is designed to assist school district personnel in implementing a program budgeting and accounting system from line item to program format. For districts interested in a more comprehensive approach to developing management information, this booklet can serve as a guide to the financial accounting portion of the district's programs. The booklet may be used either alone to install program budgeting and accounting procedures or in conjunction with the remaining SPECS implementation booklets that detail procedures for implementing the other four components of SPECS. The booklet attempts to answer key questions, sets down 14 steps toward implementation, suggests other applications of the system, and lists benefits and problems. (Author/JM)