CLASSIFICATION STRUCTURE

 

 

SUBSIDIARY CODES

Additional information for subsidiary accounts is required for certain transactions. To accommodate these information requirements, a subsidiary coding technique is incorporated into STARS. Under this concept, individual accounting transactions impact selected asset and liability accounts for the different types of assets and liabilities. For example, when the State Treasurer purchases an investment, such as U. S. Treasury Bill, the accounting transaction that is used to record this event would contain a subsidiary code. This code would be assigned in such a way as to distinguish the particular investment purchased from all other investments owned by the State. An active record of the U. S. Treasury Bill would thus be maintained by the system as long as the particular investment is held. When the U. S. Treasury Bill is redeemed, the entry to record the same would contain the subsidiary number originally assigned at the time of purchase. This would enable the system to update the accounting records to indicate that the particular item is no longer owned by the State.

Different degrees of detail can be maintained for the various assets and liabilities to be supported by the subsidiary coding scheme. Investments, for example, can be accounted for on an item-by-item basis.

A unique subsidiary code would be used for each investment. Fixed assets, on the other hand, do not warrant such detailed accounting in the central accounting system. Instead of having a unique code assigned to each fixed asset owned by the State, these items could be accounted for by major groups. One subsidiary code could be used to reflect all transactions involving land owned by the State, and another could be used to reflect all transactions involving equipment. The degree of detail to be maintained in the new accounting system for each type of asset and liability of the State will be determined at a later date. This technique permits varying levels of detail at different stages of system development and a phased implementation of these new concepts.

Classification Structure Index Subfund Code Structure