Chart of Accounts-Standard Classification and Glossary of Expenditures
Expenditures identify the various natural usages of monies in supporting the diverse programs and operations of the institution, and are classified by account class, major account, minor account and subsidiary account. In this standardized chart of accounts the broadest standard classification of expenditures is by account class, e.g., SUPPLIES. Account classes are divided into major accounts, e.g., Office Supplies. Some major accounts are divided into minor accounts. Conversely, minor accounts summarize into major accounts, and major accounts summarize into account classes.
The standardized coding system is designed to accommodate nonstandard divisions of minor accounts into subsidiary accounts. This design is achieved by not committing to standardized usage for the fifth digit of the numerical codes which represent accounts. Individual institutions may utilize that digit at their discretion. However, several standardized subsidiary accounts exist under major account 73100 Travel. Only those classifications and codes which comprise the state wide standardized chart of accounts will appear on budgets and budget expenditure reports.
Minor accounts are available for local usage where minor accounts are not standardized and, concurrently, where no other minor account exists under a major account. For example, minor accounts 73210 through 73290 are available for institutional usage, but minor accounts 71440, 71480, and 71490 are not available. "Vacant" major accounts are not available for local usage. Also, the standardized expenditure account codes and titles are not subject to alteration.
The chart which follows identifies the numerical classification code for each data element, the classification titles, the glossary of classification titles, and the hierarchy and ordering of the data elements. The definition of an account class is applicable to each of its constituent major accounts, and the definition of a major account is applicable to each of its constituent minor accounts.