The following character and object codes
can be divided into two main categories, those related to direct
expenditure and those related to intergovernmental expenditure.
DIRECT EXPENDITURE CATEGORIES:
Direct expenditure comprises all expenditure
other than intergovernmental expenditure.
Direct expenditure for compensation of own officers and employees and for
supplies, materials, and contractual services except any amounts for capital outlay
(i.e., for personal services or other objects used in force account construction of
permanent and for acquisition of property and equipment).
Includes repair and maintenance services (e.g., contracts and agreements, materials,
and supplies) for the upkeep of buildings, infrastructure, and equipment to maintain
required standards of compliance for their intended use. This covers the following
(unrelated to new Removal construction)
||Assistance and Subsidies
Direct cash assistance to foreign governments, private individuals, and
nongovernmental organizations (e.g., foreign aid, agricultural supports, public
welfare, veteran bonuses, and cash grants for tuition and scholarships) not in return
for goods and services nor in repayment of debt and other claims against the
government. Excludes payments to private vendors for medical care or other
services for the needy; cash benefits under insurance trust programs;
intergovernmental expenditure, and administrative costs, assistance-in-kind, and
payments for purchase of commodities or services to be furnished free to needy or
other individuals (the latter classified as current operations).
Except for the Federal Government (for which virtually every function can have
assistance and subsidies), this category is limited to just four codes: education
grants, including scholarships to individuals and aid to private schools or colleges
(code E19); public welfare cash assistance payments, either Federal categorical
ones (code E67) or others (code E68); and bonuses to veterans (code E84).
Assistance and subsidies character and object codes "I" and "J" are used only for
the Federal Government. (The "J" code is needed because "I89" is used for interest
on general debt.)
||Interest on Debt
Amounts paid for the use of borrowed money. Includes amounts for interest on
debt of the government paid by all its accounting funds. No adjustment is made for
premiums or discounts on debt issued or retired. Also excludes premiums paid on
debt retired (report at code E89 for general debt retired and codes E91 - E94 for
utility debt retired).
Where amounts to cover interest accruing on debt prior to date of sale are included
in the proceeds from issuance of securities, such amounts are treated as offsets to
interest expenditure for the year in which they were received.
There are five codes for interest expenditure, subdivided into interest on general
debt (I89) and interest on utility debt, by type of utility (I91, I92, I93, and I94).
This distinction is made on the basis of the classification of outstanding debt to
which particular interest payments relate.
||Capital Outlay Categories:
Direct expenditure for purchase or construction, by contract or force account, of
buildings and other improvements; for purchase of land, equipment, and existing
structures; and for payments on capital leases.
Certain terms (such as rehabilitate, remodel, resurface, renovate, etc.) can denote
either construction or maintenance and repair (i.e., current operations). Their
classification is based on the circumstances surrounding each situation. If the term
refers to activities that materially extend the life or add value to the property, then
they are classified under construction; otherwise, they are classified under current
operations. No other practical standard (such as dollar amounts) can be uniformly
applied to all levels of government.
Receipts arising from insurance adjustments, sales of equipment, reimbursements,
and the like are classified as revenue rather than as offsets to capital outlay
Capital outlay expenditures are subdivided into the three object classes below:
Production, additions, replacements, or major structural alterations to fixed works,
undertaken either on a contractual basis by private contractors or through a
government's own staff (i.e., force account).
Includes initial production of buildings and structures; initial permanent
improvements (other than buildings) that add value to land; and subsequent
improvements representing major permanent structural alterations that materially
extend the useful life of fixed works. Covers all costs of materials, supplies, and
labor that are reasonable and necessary to place an asset in its intended location
and prepare it for its intended use, viz., professional fees or architects, engineers,
appraisers, and attorneys associated with feasibility studies; preliminary
engineering, planning, and design; and related developmental costs such as
overhead, office costs, and other purchased construction-related services. Also
includes centralized architecture, design, and planning offices whose main role is
support of public construction projects, including related salaries and wages,
insurance, professional services, etc.
INCLUDES for buildings and structures: initial or additional installation of
equipment and facilities that are integral parts of the structure. Also includes
largely site-fabricated equipment integral to enterprise operations, such as power,
water, and sewage treatment plants (generators, reactors, boilers, storage tanks,
steam engines, and the like).
Examples of activities included:
|Clearing and grading of land
|Demolition needed for construction
|Machinery and equipment integral to structure
Central air conditioning
Examples of labor and fees included:
|Job order cost
|Overhead and office costs
Similar purchased services
INCLUDES for nonbuilding improvements: initial or additional improvements that
add value to land, such as:
|Curbs, drains, and
||Wharves and docks
EXCLUDES expenditure for maintenance and repairs to existing structures or
service facilities for the purpose of keeping property in an ordinarily efficient
operating condition and which are not considered permanent structural alterations
that materially extend the life of the asset--e.g., painting, cleaning, patching,
refurbishing, reconditioning, etc. (report under current operations). Also excludes
identifiable payments to other governments for construction work (classify under
intergovernmental expenditure) as well as purchase or installation of machinery and
equipment not integral to fixed structures. In addition, excludes costs attributable
to the capitalization of net interest expense incurred during the construction period
(report under interest on debt).
||Purchase of Land and Existing Structures
Acquisition of these assets as such by outright purchase; payments on capital lease-
purchase agreements or installment purchase contracts; costs associated with
eminent domain (including purchase of rights-of-way); and tax or special
assessment foreclosure. Covers all ancillary costs associated with the transaction
such as legal and title fees, surveying fees, appraisal and negotiation fees, damage
claims, and nonconstruction-related site preparation costs including clearing, filling,
leveling, and razing unwanted structures.
The use of the "G" code for purchase of land and existing structures applies only
during the original compilation of data for the state and largest city and county
governments. When these data are inserted into the Bureau's computerized records,
they are combined with purchase of equipment data ("K" codes) to produce a
category called "Capital Outlay Other Than Construction." The equipment only
category ("K" codes), therefore, becomes a subcategory under this one in all
subsequent computer files, printouts, and publications. For all other governments,
the "G" code represents the purchase of land, equipment, and existing structures--
i.e., all capital outlays other than construction.
||Purchase of Equipment
Purchase and installation of apparatus, furnishings, motor vehicles, office
equipment, and the like having a life expectancy of more than five years. Includes
both additional equipment and replacements purchased outright or through capital
lease or installment purchase contracts. Includes related expenditure necessary to
place equipment in its intended state of operation (e.g., transportation charges,
installation fees, taxes, etc.).
Excludes rental of equipment (report under current operations) and equipment and
facilities that are integral parts of constructed or purchased structures (report under
construction or purchase of land and existing structures, respectively).
Social insurance payments to beneficiaries, employee retirement annuities and other
benefits, and withdrawal of insurance or employee retirement contributions.
Includes only monies paid to beneficiaries; administrative expenditure for
insurance trust systems is classified as current operations.
The "X" codes are used for expenditure of employee retirement systems while the
"Y" codes are used for expenditure of all other insurance trusts.
INTERGOVERNMENTAL EXPENDITURE CATEGORIES:
Amounts paid to other governments for performance of specific functions or for
general financial support. Includes grants, shared taxes, contingent loans and
advances, and any significant and identifiable amounts or reimbursement paid to
other governments for performance of general government services or activities.
Excludes amounts paid to other governments for purchase of commodities,
property, or utility services and for any tax levied as such on facilities of the
government. See Section 6.43 for a more extensive discussion of this topic.
The functional classification of intergovernmental expenditure is determined by the
nature of the activities to which the receiving government is required to apply it by
the paying government, or by the functional classification of activities giving rise
to particular items of reimbursement. By definition, all intergovernmental
expenditures for activities administered by independent or dependent school
systems are classified under education (e.g., school lunch and health programs).
The character and object codes for intergovernmental expenditure indicate the type
of receiving government, as follows:
||To state government
||To local governments, N.E.C.
||To general purpose governments (county, municipal, or township)
||To independent school districts
||To special district governments
||To the Federal Government
||Salaries and Wages
Total expenditure during fiscal year for salaries and wages for all functions and
activities, including the general government, liquor store, and utility sectors.
Salaries and wages consist of gross amounts paid for compensation of own officers
and employees (prior to deducting for withheld taxes, retirement contributions,
charges for subsistence, or other purposes), including both current operations
expenditure and capital outlay expenditure ("force account"). This category
excludes employer contributions for any type of employee fringe benefit and the
value of subsistence, quarters, or other payments-in-kind to military or other public