This manual specifies in detail the new budget and accounting system for California Community Colleges, utilizing an activity-centered approach to expenditure reporting which describes real resource requirements, their costs, and relative use in each of the 37 discrete activities comprising community college operations. The system is designed to provide adequately for state-level decision making and most local decision making needs, as well as to provide a basis for developing analyses for decisions about programs and objectives. The expenditure structure of the system is designed to be compatible with that used by elementary and secondary schools and county school superintendents. The activity structure is designed to be compatible with the Program Classification Structure developed by the National Center for Higher Education Management Systems (NCHEMS). It provides the district with a base for comparative fiscal analyses, use of new fiscal management tools, and state-level and federal fiscal reporting. The bulk of this document is devoted to extensive presentation and explanation of the system. Appendices include a discussion of accounting principles unique to community college districts; a list of supplies, equipment and capital outlay; stores system procedures, controls, and accounting; accounting terminology; and data processing terminology. (Author/JDS)