Expenditure, Expense, and Other
Expenditures/Expense represent a net decrease in financial resources and are recorded when a related liability is incurred. Account Numbers for expenditures/expenses classification are by object class according to the types of items purchased or services obtained. These accounts are for personnel services, supplies, other services and charges, capital outlay, debt service, other financing uses, and special and extraordinary items. These expenditure/expense accounts will be summarized by activity or department for budgetary purposes as pointed out previously in the activity section of this manual.
700-Expenditures/Expenses (Control)
The use of this Account Number is mandatory for all funds which have expenditures/expenses. The balance of the account must at all times equal the combined totals of expenditure/expense Account Numbers 701 through 999. The account is normally posted monthly from the disbursements journal and appears on trial balances prepared during the year.
This account is:
DEBITED-for all charges made to detailed expenditure/expense accounts.
CREDITED-for any decrease and when the Account Number is closed to fund balance or another surplus account.
701-Personnel Services (Sub-Control)
This Account Number may be found in any fund of local units. It may be used to record expenditures/expenses of a fund for salaries and wages, the local unit’s portion of social security, the local unit’s retirement contribution, and other employee fringe benefits (hospitalization insurance, employee life insurance). If a unit desires, it may use Account Numbers 702 through 725 to designate specific types of personnel services in which case Account Number 701 should be used as a sub-control account. The balance of this account must at all times equal the combined totals of Account Numbers 702 through 725.
This account is:
DEBITED-for all charges for personnel services paid from a fund.
CREDITED-for any decrease and when the account is closed to fund balance or another surplus account.
726-Supplies (Sub-Control)
This Account Number may be found in any fund of local units. The account is used to record all expenditures/expenses incurred by a fund for office supplies, operating supplies, medical supplies, repair, and maintenance supplies, etc. If a unit desires, it may use Account Numbers 727 through 799 to designate specific types of supplies in which case this account is used as a sub-control account for all such supplies. The balance in this account must at all times equal the combined totals of Account Numbers 727 through 799.
This account is:
DEBITED-for all expenditures/expenses of a fund for supplies.
CREDITED-for any decrease and when the Account Number is closed to fund balance or another surplus account.
800-Other Services and Charges (Sub-Control)
This Account Number may be found in any fund of local units. It may be used to record expenditures/expenses incurred by a fund for such services and charges as professional and contractual services, state institution charges, veterans’ burial, hospitalization, health services, welfare services, communications, transportation, retirement benefits, community promotion, printing and publishing, public utilities, repairs and maintenance, rentals, aid to other governments, and other miscellaneous charges. If a unit desires, it may use Account Numbers 801 through 969 to designate specific types of services and charges within this category in which case this account will be used as a sub-control account for such charges. The balance in this account must at all times equal the combined totals of Account Numbers 801 through 969.
This account is:
DEBITED-for all expenditures/expenses described above.
CREDITED-for any decreases and when the Account Number is closed to fund balance or another surplus account.
970-Capital Outlay (Sub-Control)
This Account Number is used in governmental funds of local units. This account is used to record expenditures incurred by the local unit for the acquisition of capital assets. Such purchases are recorded at cost and recorded in the appropriate capital asset fund or general ledger account either monthly or at the end of the year (unless reclassified to an Enterprise or Internal Service Fund). A unit can record all capital outlay expenditures within this account, or it may account separately for various types of capital outlay expenditures by utilizing Account Numbers 971 through 989. The balance of this account must at all times equal the combined totals of Account Numbers 971 through 989 if separate accounting is maintained.
NOTE: Capital outlay expenditures for General Capital Assets are normally charged to the fund and activity to which they apply.
This account is:
DEBITED-for all fund expenditures for capital outlay.
CREDITED-for any decreases and when the Account Number is closed to fund balance or another surplus account.
990-Debt Service (Sub-Control)
This Account Number is normally found in the General fund, Debt Service funds, and other funds which do not service its own long-term debt. It is recommended that this account be used only as a sub-control account and that various types of debt such as principal, interest, paying agent fees, etc., be accounted for separately by utilizing Account Numbers 991 through 994. 991 and 992 -should be used for principal amounts. 993 and 994 should be used for interest expenses These accounts are also available for lease related payments. The balance of this account must at all times equal the combined totals of Account Numbers 991 through 994 if separate accounting is maintained.
This account is:
DEBITED-for all debt payments of the particular fund.
CREDITED-for any adjustments and when the account is closed to fund balance or another surplus account.
995-Interfund Transfers Out
This Account Number is used to record the transfer of equity to another fund within the local unit.
This account is:
DEBITED-for any decrease and when the account is closed to fund balance or another surplus account.
CREDITED-for amounts transferred out.
996-Discount on Bonds or Notes
This Account Number is used to record discounts on bonds or notes.
This account is:
DEBITED-for discount amounts that should be recorded when bonds or nots are sold at a discount.
CREDITED-For the interest expenses recognized over the life of the bonds or notes.
997-Transfer to Escrow for Bond Refunding
This Account Number is used to record transfers to escrow accounts for the purpose of bond refunding.
This account is:
DEBITED-for any decrease and when the account is closed to fund balance or another surplus account.
CREDITED-for amounts transferred out.
999-Unusual or Infrequent Items
GASB 103 Statement describes unusual or infrequent items as transactions and other events that are either unusual in nature or infrequent in occurrence. Furthermore, governments are required to display the inflows and outflows related to each unusual or infrequent item separately as the last presented flow(s) of resources prior to the net change in resource flows in the government-wide, governmental fund, and proprietary fund statements of resource flows.
This account is:
DEBITED-for expenditures/expenses occurred for an unusual or infrequent item.
CREDITED-for any decrease and when the account is closed to fund balance or another surplus account.