CLASSIFICATION STRUCTURE

 

CODING REQUIREMENTS

In development of any classification structure there are two primary objectives: (1) increase the amount of detailed financial information that can be captured so that reporting capabilities are increased, and (2) decrease the input coding requirements. Although these objectives appear to be mutually exclusive, there is a technique that can be applied to provide additional levels of reporting information without substantially increasing input coding requirements.

  1. Coding Reduction Technique:

    Coding reduction technique is accomplished through the use of look-up tables and mini-coding. A look-up table is a computer table in which pre-defined data is stored for future processing. The simplest look-up table is one where an input code is used to look up another code that is stored in the system; and which is automatically added to the transaction by an automated system. For example, such a table could be used to look up each of the program classification elements.

    Mini-coding in STARS represents a more sophisticated application of the look-up table technique. With this technique, input coding requirements can be substantially reduced, while flexibility and internal control are increased. Based on the classification structure developed for each agency (click
    here for an example of a programmatic structure), a unique four-digit code (mini-code) is assigned to each of the lowest levels of classification required by an agency. Click here to see how a mini-code is developed based upon the programmatic structure example. The 'mini-coding' technique, also, applies to the Fund structure and Object of Expenditure/Revenue structure. The fund structure (Fund, Fund Group, Fund Detail, and Subfund Detail) is referenced by a four-digit code, generally referred to as the Subfund Code. The Subfund Code Structure illustrates the application of the mini-coding concept to the Fund structure. In regard to the Object structure, a four-digit code (generally referred to as the object code) is used instead of the full six digits representing Character, Major and Minor Object. Note that, when it is desirable to record an accounting transaction at the Detail Object level, it is necessary to add the two-digit code. Because of the hierarchical structure of this coding technique, the 'mini-code' can be used internally by STARS to look up each higher level of detail. The section on Mini-Code Detail Input Requirements demonstrates how this works.

  2. Input Coding

    This subsection provides a brief explanation of how to code accounting transactions, which are the basic means of recording an accounting event. A transaction consists of six required data elements (see below) and several optional data elements.

Transactions can be grouped into two broad categories: (1) revenue, and (2) expenditure. The input coding requirements related to these two categories of transactions are discussed below:

  1. Expenditure Input Coding

    Expenditure coding in STARS exists at four distinct levels: character, major object, minor object, and detail object. Each element of expenditure coding consists of two digits. However, input coding only requires the use of a four-digit code in conjunction with the other required data elements. Note the use of the detail object requires the coding of a six-digit code-i.e., the four-digit object code plus the two-digit detail object code. The character is referenced by the object code and is not entered on the STARS input form.

    The following codes will be entered on a
    Disbursement Voucher to record the disbursement for purchase and receipt of office supplies in the Administration and Local Government Division, Comptroller General's Office:
TRANS CODE AGENCY CODE MINI CODE SUBFUND CODE OBJECT CODE TRANSACTION AMOUNT
640 E12 0077 1001 0301 $75.00

The TRANS-CODE (i.e., transaction code) is used to identify the type of transaction (i.e., disbursement) and to determine which general ledger accounts are to be posted. The Mini-Code Table Look-Up Expenditure Transaction diagram illustrates how the mini-code (in this context, mini-code refers to the program and organization structure) look-up table in STARS would expand the mini-code. The mini-code look-up table also includes the additional four levels of organization data that has been provided for future expansion. The subfund code is expanded to fund, fund group, fund detail and subfund detail.

INPUT CODING EXPANDED CODE CLASSIFICATION TITLE
1001 01 Fund General Fund
  01 Fund Group General Fund
  001 Fund Detail General Fund

Object code would be expanded through the use of look-up table to character, major object, minor object-see below.

INPUT CODING EXPANDED CODE CLASSIFICATION TITLE
0301 02 Character Operating Supplies
  03 Major Object Supplies
  01 Minor Object Office Supplies

The completely expanded transaction is illustrated in the MINI-CODE EXPANDED EXPENDITURE TRANSACTION diagram.

  1. Revenue Input Coding

    Revenue coding in STARS exists at four distinct levels: character, major object, minor object, and detail object. Each element of revenue coding consists of two digits. However, input coding only requires the use of a four-digit object code in conjunction with the other required data elements. Note that, the use of the detail object requires the coding of a six-digit code-i.e., the four-digit object code plus the two-digit detail object code. The character is referenced by the object code and is not entered on the STARS input form.

    To prepare a transaction to record a receipt of a labor safety act fine collected by the Department of Labor, Licensing, and regulation the following codes will be entered on the input document:
TRANS CODE AGENCY CODE MINI CODE SUBFUND CODE OBJECT CODE TRANSACTION AMOUNT
200 R36 0864 2837 5707 $250.00

The TRANS-CODE (i.e., transaction code) is used to identify the type of transaction and to determine which general ledger accounts are to be posted. The MINI-CODE TABLE LOOK-UP REVENUE TRANSACTION diagram illustrates how the mini-code (in this context, mini-code refers to the program and organization structure) look-up table would also include the additional four levels of organization data that has been provided for future use. The subfund code would be expanded to fund, fund group, fund detail and subfund detail - see below.

INPUT CODING EXPANDED CODE CLASSIFICATION TITLE
2837 01 Fund General Fund
  01 Fund Group General Fund
  837 Fund Detail General Fund

Object code would be expanded through the use of the look - up table to character, major object, minor object - see below.

INPUT CODING EXPANDED CODE CLASSIFICATION TITLE
5707 26 Character Fines and Forfeitures
  57 Major Object Fines
  07 Minor Object Labor Safety Act Fine

The completely expanded transaction is illustrated in the MINI-CODE EXPANDED REVENUE TRANSACTION diagram.

TO: Classification Structure Index