5310XX - Personal Services Description

Personal Services

Definition:  Expenditures incurred for services rendered by permanent and temporary employees and the related fringe benefits.  Special employee awards and settlements, as well as compensation to board members, are also included in this expenditure group.  For general government agencies, the funding source should dictate which category (Undesignated, Appropriated or Receipts) should be used to record these expenditures.  Undesignated should be used when a cost allocation process allocates the expenditures to the appropriate funding source designation.  For universities, this allocation is not required.

Purchased Services

Definition:  Expenditures incurred for services required to ensure the ongoing operation of State government facilities and government services.  These services may be provided by external commercial firms, other state agencies, and/or other divisions within the same organization.  Services provided within the State entity paid through a state payroll system would not be charged to this account group (i.e., Dual Employment-Account 1450).  Also included in this account group are reimbursements for travel costs related to official State business.

Supplies

Definition:  Expenditures incurred for the purchase of supplies or materials expected to be consumed within the normal course of operating a department, facility or institution and which are generally recurring in nature.  This account group should exclude purchases of tangible items which are more properly classified in the Property, Plant and Equipment group.

Property, Plant, & Equipment

Definition:  This account class includes payments for acquiring legal ownership to real property, to construct additions to buildings, and to furnish buildings with equipment, furniture, furnishings and machinery.  Equipment should possess both of the following characteristics:  it is not consumable or expendable and has an expected useful life of longer than one year.  This property may require entry into the fixed asset system if the capitalization criteria are met.

Other Expenses & Adjustments

Definition:  Expenditures incurred for other miscellaneous operational costs such as legal or permit costs, pension payments, debt service, depreciation/amortization and other financial report adjustments.

Aid & Public Assistance

Definition:  Allocations or distributions of funds to direct recipients, providers or other agencies for some designated program, assistance or special project.
 

Intragovernmental Transactions

Definition:  This account group consists of operating transfers, reimbursements, residual equity transfers and transfers of appropriations (Appropriation Carryforwards).