Comptroller Fiscal Year Memo Letter Head


To:Chief Fiscal Officers, MMARS Liaisons, and Payroll Directors
From:Martin J. Benison, Comptroller
Date:June 13, 2008
Re:Expenditure Classification HandbookComptroller Memo

Executive Summary

This memo announces the release of the revised Expenditure Handbook (June 2008 doc format of Expenditure Classification Handbook
file size 1MB). Revisions to the Handbook are minimal; one new object code has been added along with the clarification or updates to certain current object codes. A chart of these changes is attached. This schedule is effective for FY2009 and forward.

The Office of the Comptroller (CTR) is required to establish a schedule of subsidiaries (object classes) and object codes pursuant to M.G.L. c. 7A s.8 to be used in all accounting for expenditures under the Massachusetts Management Accounting and Reporting System (MMARS). This schedule is effective for FY2009 and forward. The object codes contained in this Expenditure Classification Handbook indicate the types of goods and services for which Commonwealth funds are expended. This policy applies to departments in all branches of state government, unless otherwise provided by law.

In an effort to streamline and improve financial reporting, the Office of the Comptroller (CTR) has updated the Expenditure Classification Handbook. The biggest change in the Expenditure Classification Handbook is the addition of object code AA1 Salaries: Supplemental - for subsidiary AA - State Employee Compensation. In addition, minor edits have been made to several of the other object codes in the CC, EE, JJ and NN. Several object code's Descriptions, Legal Authority and Oversight Department have been clarified and/or updated. Effective immediately, please disregard the previous version (October 2007) and use this Handbook (document) for all transaction processing.

Most importantly, these changes will not effect the applicable procurement and contracting requirements nor the required MMARS documentation. Existing contracts will not have to be re-executed or amended. The changes may affect the underlying MMARS FY2009 and out-year (future FY) line(s) of MMARS encumbrance documents. All new obligations and applicable encumbrance documents will utilize the new or revised object codes and follow the applicable procurement and encumbrance guidelines outlined in the Expenditure Classification Handbook effective with FY2009 business. The detailed crosswalk that follows illustrates any changes to specific object codes. Departments are responsible for noting these changes for FY2009 and forward.

The Expenditure Classification Handbook provides accurate, primary legal authority, oversight department, agreement types, encumbrance/payment request documents and tax reporting requirements for each object code. However, departments are responsible for full compliance with all applicable state and federal statutes, rules, regulations and requirements governing the expenditure of funds, regardless of whether or not specifically cited in this Handbook. Departments are advised to seek additional assistance from their legal and fiscal staffs .

The Expenditure Classification Handbook can be found on the Comptroller's internet site at : doc format of Expenditure Classification Handbook
file size 1MB
Departments should contact the Help Desk at 617-973-2468 for any questions or concerns.

CC:General Counsels
Internal Distribution

FY2009 Object Code Changes

This chart illustrates any additions or modifications to object codes. Most changes in this release are to clarify or broaden definition of object codes or to update required form usage. A brief description is included. Insignificant changes have not been incorporated.

AA1 Salaries: SupplementalxAdditional payments to employees' salary, as provided in a collective bargaining agreement, to increase the rate of pay due to a particular characteristic that differentiates one employee from another.
A20 POLICE DETAILxClarification: Description (Includes: Any law enforcement detail)
C28 EDUCATION, TRAINING AND BOARD MEMBERSHIP SERVICESxClarification: Description (Includes: Task Force Members)
E12 Subscriptions, Memberships and Licensing FeesxClarification: Description (Includes: Cable- Direct TV)
E19 Fees, Fines, Licenses, Permits AND CHARGEBACKSxUpdated: Pre/Encumb/Payment Request Added: PC for inclusion of Discount Processing
EE2 Conference, Training and Registration FeesxClarification: Description (Includes: or departments)
E22 TEMPORARY USE OF SPACE, ConferenceS AND CONFERENCE IncidentalsxClarification: Description (Includes: Trade Booth Fees)
J62 CONTRACTED ADVISORY BOARD/COMMISSION MEMBERSxClarification: Description (Includes: Task Forces)
N13 Highway Horizontal/Lateral structure Planning and EngineeringxClarification: Description (Includes: construction-phase engineering on highways, bridges, tunnels, bikeways, sidewalks and other horizontal structures)
N21 Highway Horizontal/Lateral ConstructionxClarification: Description (Includes: bikeways, sidewalks) Legal Authority: Added: .G.L. c. 149A
Oversight Department: Added: ENV
N22 Highway Horizontal/Lateral Maintenance and ImprovementsxClarification: Description (Includes: Added: Routine day-to-day- bikeways, sidewalks/Deleted: cosmetic maintenance)
Oversight Department: Added: ENV and ANF