Object Code Definitions

 

Object codes are represented by the eighth, ninth and tenth digits in the account coding system. They separate entries or transactions into balance sheet (or general ledger) transactions or revenue and expenditures transactions. When new account numbers are needed, it will be necessary to contact the State Alabama Community College System in order to maintain uniformity of account classification.

 

( _ ) ( _ _ ) ( _ _ _ _ ) ( X X X ) ( _ _ ) ( _ _ _ _ ) ( _ _ _ _ )

Expenditures – Current Expenses

 

601       In‐State Travel Non Taxable

Include in this account those expenses for which expense accounts are filed for in‐state travel. Such expenses may include cost of travel, per diem, registration fees, and such other expenses that may be reimbursed under Alabama Law.

 

602       Out‐Of‐State Travel

Include in this account those expenses resulting from out‐of‐state travel. Such expenses may include transportation, registration fees, lodging and meal expenses, and such other expenses that may be reimbursed under Alabama Law.

 

603       Freight

Record the cost of transportation of items by means other than the U.S. Mail, such as United Parcel Service, rail, and truck.

 

604       Communications

This account should include telephone, telegraph, and any other costs arising from telecommunications other than data processing.

 

605       Postage

Record the cost of transportation of items through the U.S. Mail Service in this account. Also include the cost of postage meters.

 

606       Maintenance and Repairs

Include in this account expenses relating to the general maintenance and repair of institutionally owned equipment or facilities.

 

607       Service Contracts on Equipment

Record the cost of contractual service agreements in this account. Service contracts for the maintenance and repair of such items as office machines, heating or cooling equipment, and transportation equipment.

 

608       Electricity

The cost of providing electrical service to the physical plant is included in this account.

 

609       Gas and Heating Fuel

Record in this account the cost of providing gas (natural, butane, other), coal and heating oil to the institution. Gas for use in laboratories should be charged to instructional materials and supplies.

 

610       Water and Sewer

The cost of water used by the institution is recorded in this account. Include in this account charges for sewage and/or garbage pick‐up services if separately identifiable from water service charges.

 

611       Gasoline and Oil ‐ Motor Vehicle

Use this account to record the cost of gasoline and oil used in motor vehicle equipment by State‐owned or controlled cars, buses, farm machinery and equipment, grounds maintenance equipment, and similar items.

 

612       Operating Lease Payments

Record in this account the monthly expenditures associated with a noncapitalized lease payment. The principal portion of the capitalized lease should be recorded in object code 662.

 

613       Rent ‐ Equipment

Record the rental of any type equipment in this account.

 

614       Rent ‐ Facilities

The rental of facilities should be recorded in this account.

 

616       Insurance and Bonding

Record the cost of fiduciary bonds carried by the institution on employees, insurance policies for buildings and contents, boiler policies, and other similar items.

 

617       Subscriptions

The cost of subscriptions to magazines or newspapers is recorded in this account. Do not record the cost of books in this account.

 

618       Memberships

Record in this account the cost of institutional memberships in professional organizations.

 

619       Printing, Reproduction and Binding

Charge to this account expenses incurred in the printing, reproduction or binding of material. Record in this account institution catalogs and quarterly class schedules.

 

620       Athletic Insurance Deductible

Record the cost associated with filing a claim for damages of a institution sponsored athletic event.

 

621       In‐State Travel Taxable

Record the non‐overnight travel allowances of $11.25 for a trip six to twelve hours, and $30.00 for a trip over twelve hours.

 

622       State‐Funded Professional Development

Record in this account all expenditures for professional development activities which are funded through State‐level appropriation but which are conducted at the discretion of the individual institution. Activities conducted with State‐level appropriations that are at the direction of the Chancellor and may be conducted by a institution should not be coded in this category.

 

623       Judgments/Settlements

Record in this account expenses arising from a court order or a settlement agreement in resolution of a legal claim. Also, this account should include deductibles pursuant to an insurance policy and judgments, excluding personnel costs, from the Board of Adjustments.

 

624       Legal Services

Record in this account the expenses resulting from contracts with attorneys or legal consultants.

 

625       Other Legal Expenses

Record other related legal expenses incurred by the institution in this account such as court reporting and filing fees.

 

626       Accounting and Auditing Services

Record in this account any expenses resulting from contracts with accounting or auditing consultants.

 

627       Engineering and Architectural Services

Record in this account any expenses resulting from contracts with engineering and architectural consultants.

 

628       Other Professional Fees

Record in this account expenses for consultants for institutional improvement and/or development, amounts paid intramural or athletic officials, and any other fees of a professional nature.

 

629       Accreditation Expense

This account is used to record the cost of accreditation expenses.

 

630       Depreciation Expense

This account is used to record the portion of the cost of capital assets that is expensed. (Worksheet only at this time.)

 

631       Bank Card Fees

This account is used to record the cost of credit card processing.

 

639       Other Contractual Services

All other contractual services not accounted for in 601‐628 may be entered in this account. An example of a service to be charged to this account is a contractual agreement for janitorial services.

 

640       Supplies – Computing Devises

This account is charged for computer supplies, such as toner for printers.

 

641       Materials and Supplies

Record the purchase of materials and supplies used in the institution including the library. This account includes expendable items such as welding rods, paper, staples, and other instructional aids.

Laboratory expendable supplies, such as test tubes and beakers, should be included in this account.

 

642       Computer Software

Record in this account the purchase of computer software made during the current fiscal year.

 

643       Technology ‐ Non‐capitalized

Record in this account the non‐capitalized expenses purchased with Technology Fees.

 

644       Internal Purchases

This account is used to record internal transactions with Auxiliary Enterprises.

 

645       Culinary Consumables

This account is used to record the cost of instructional expenses for culinary consumable.

 

660       Purchases for Resale

Items purchased for resale to individuals, organizations, or other organizational units of the institution will be charged to this account. Normally, this account will only be used by the Auxiliary Fund or activities related to instruction. All materials and supplies charged to customers on work orders should be charged to this account.

 

661       Interest Payments

This account is used for payment of interest on financial obligations of the institution.

 

662       Principal Payments

Record in this account the principal amount paid on capital leases which will be credited towards the purchase of equipment at any given time. That portion of the payment that is interest should be debited to interest, object code 661.

 

663       Investment Transaction Expense

Record in this account the fees charged the institution such as banks and brokers for handling investments of the institution.

 

664       Scholarships

Charge to this account all sponsored scholarship and tuition waiver amounts on behalf of students. Do not include payments to students for loans or for services rendered.

 

665       Honorariums

Record in this account, payments to speakers or lecturers in recognition of a contribution to the institution.

 

666       Grants, Awards and Prizes

Record in this account expenses for all federal student financial aid in the form of grants, loans, or other type payments to students. This account should also include miscellaneous awards and/or prizes for institution business.

 

667       Advertising and Promotions

Expenses incurred as a result of the promotion or the advertising of such items as the institution and its programs or courses are charged to this account.

 

668       Debt Collection Expense

Cost of collecting debts due the institution are recorded in this account and should include such items as cost of litigation, photostat expense, and other similar expenses.

 

670       Trustee Handling Fees

Include in this account all costs paid to trustees for their fees in handling monies on behalf of public institutions.

 

671       Amortization Expense

This account is used to record the costs associated with the issuance of bonds.

 

672       Bond Reserve Fee Expense

Record in this account the collected bond reserve fees to be submitted to the Presidents’ Council at the designated times.

 

676       Cash Shortages

This account is used for closing the year‐end balance of operating cash shortages from account 325, Reserve for Cash Operating Differences.

 

677       Indirect Cost Expense

Record in this account the amount paid to the institution for indirect cost to other programs.

 

678       Institutional Use

These accounts may be assigned and used by the institution for items that cannot be categorized under other accounts.

 

699       Other Non‐capital Costs

Record in this account all costs for non‐capitalized projects.

Expenditures – Capital

 

Note: (Applies to object codes 701 through 740)

The Alabama Community College System chooses to capitalize books; therefore, book purchases should be included in the institution’s inventory system. A physical inventory shall be made of all capitalized assets each year.

 

701       Books

Capital expenditures for books are recorded in this account.

 

702       Audiovisuals

Include in this account the purchase of films, filmstrips, slides, records, tapes, and similar items. Do not include items such as projectors, tape recorders or players, and record players. Such items should be classified as equipment.

 

710       Furniture and Equipment $5,000 to $25,000

Record in this account all furniture and equipment other than motor vehicle equipment costing between $5,000 to $25,000.

 

711       Furniture and Equipment Exceeding $25,000

Record in this account all furniture and equipment other than motor vehicle equipment costing more than $25,000.

 

712       Lease Purchases

Include in this account the principal amount paid on lease purchases that will be credited towards the purchase of equipment at any given time. That portion of the payment that is interest should be debited to interest, object code 661.

 

713       Capitalized Software ($1,000,000+)

Include in this account costs related to the ownership or right to use computer programs that control the functioning of computer hardware and other devices, regardless of whether it is referred to by the vendor as a purchase, license, lease, rental, maintenance agreement or other terminology. Computer software comprises both operating systems and application programs, regardless of what type of equipment it is installed on, including computers, telecommunications equipment, cellular and satellite phones.

 

714       Internally Generated Computer Software (IGCS)

Include in this account costs related to the development in‐house or by a third party contractor, or the modification of commercially available software using more than minimal effort. Costs to develop websites should also be included.

 

715       Easement and Land Use Rights

Include in this account costs related to the contractual right to land not owned by the institution that grants the institution the right to use the surface of the land (easement) or water, timber, or minerals for a specific purpose.

 

716       Patents, Trademarks, and Copyrights

Include in this account costs related to the development of patents, trademarks and copyrights.

 

740       Transportation Equipment $5,000 to $25,000

Include the purchase of buses, cars, vans, and trucks in this account costing $25,000 or less. The equipment may be purchased for general institutional use or for restricted use as for student activities or athletics, but it should still be charged to this account.

 

• • •

 

746       Transportation Equipment Exceeding $25,000

Include the purchase for more than $25,000 of buses, cars, vans, and trucks in this account. The equipment may be purchased for general institutional use or for restricted use as for student activities or athletics, but it should still be charged to this account.

 

760       Land

Record in this account the original cost of land plus acquisition costs. Do not include site development costs.

 

761       Art Museums and Collections

This account is used to record the expenditures for art museums and collections. The cumulative value of these items is charged to account 176.

 

770       Building and Fixed Equipment

Charge to this account all costs of acquiring buildings. Architect fees, drawings, blueprints, construction contracts, and other costs incurred in the construction of buildings are charged here.

Roof replacements, repairs, or renovations to buildings should not be charged to this account.

The installation of equipment that is permanently attached to a building such as an elevator, central heating or cooling system conditioners and water coolers is charged here.

 

777       Construction in Progress

This account is used to record the expenditures for construction in progress. This is a temporary account and should be closed and the value of the construction transferred to the Plant Asset Account at completion of project. A separate account should be maintained for each project.

 

780       Improvements Other Than Buildings

Charge this account with the costs of site development, parking lots, flag poles, sidewalks, outdoor lighting systems, utility systems, fences, and similar items.

 

781       Alterations

This account is used to record the cumulative value of alterations made to plant that increase the value of the buildings, including renovations.

 

782       Technology $5,000 to $25,000

Record in this account the capitalized expenses purchased with Technology Fees for $25,000 or less.

 

783       Technology Exceeding $25,000

Record in this account the capitalized expenses purchased with Technology Fees for more than $25,000.