This booklet contains 1977 amendments to the 1976 edition of the "California School Accounting Manual," as adopted by the California State Board of Education. The amendments are designed to 1) clarify the definitions and improve the methods of distributing direct costs and direct support costs to programs, 2) stress the importance of distributing direct support costs and specify that indirect costs shall be allocated to all programs, and 3) require the submission of a comprehensive supplemental annual financial report that will display the distribution of costs to all programs at the same time. These amendments are effective for the 1978-79 fiscal year. The booklet is designed for use in conjunction with the 1976 "California School Accounting Manual," and is of little value by itself. The amendments are printed and page-numbered to correspond with the pages they supersede in the 1976 edition, so that those pages may be removed and the new pages substituted. (Author/JG)