From:	C.D. Crepps
To:	Department Contacts
Cc:	Finance Office
Subject:	accounts and code groupings
Sent:	TUE,JAN15@10:43AM

GREETINGS,

Hope all is well and you take some time to enjoy the upcoming holiday weekend!

This reminder message is specifically for staff that may assist in the department’s purchasing processes. Please forward to other appropriate staff that may need to receive this message, such as those that EITHER (1) place orders for goods or services, (2) enter requisitions, OR (3) consult with others who do perform either of the first two tasks, AND may not have received this message directly from me.

I will be periodically broadcasting information to all of you via email, yet please do not hesitate to contact me by phone or email if you should have any questions or concerns for me about what is communicated. While I am sensitive to the fact that this email message is lengthy, please understand that the topic is not simple. I’ve used headings to group my thoughts.

EXPENDITURE CODES
Under the Edmunds MCSJ financial system, new expenditure accounts have been added and more accounts may need to be established. I'm happy to work with you to setup new codes, edit names on existing codes, and add new accounts for your use.

ACCOUNTS AND CODE GROUPINGS
For the past three plus years, since converting to the new financial system, we've been trying to get everyone on the same level as to code numbers, where 200-level codes are for supplies only, where we now have several different codes for equipment purchases, where rental codes are in the low 400-level range, where the old code 160 for PROFESSIONAL AND CONTRACTED SERVICES has been replaced by codes 170 to 197 as to what type of professional service is being rendered, etc. If you don't see an existing code that matches your expenditure, please contact me and we'll decide whether to add a new code.

1. CODES 170 TO 197 FOR VARIOUS PROFESSIONAL SERVICES
Use the appropriate code in this range 1) when ordering services requiring specialized knowledge and/or labor, 2) when no goods, materials, parts, or other such items are included, and 3) when no other code is appropriate. For example, code 378 is for repairs and maintenance to vehicles and code 379 is for repairs and maintenance to other equipment. Codes 378 and 379 are more appropriate for purchases of repairs and maintenance services, even when no parts or other materials are being purchased.

Also, codes 161 to 169 should be used for extra costs (such as copies, travel, postage, etc.) that are listed separate on the invoice from the specialized services. This separation allows us to more quickly finalize IRS Forms 1099-MISC for each vendor at year-end. Only the portion paid for services is to be included on the IRS Form 1099-MISC.

Also, code 160 should not be used currently, but may be helpful if you are looking for expenditure history from the period before codes 170 to 197 were setup to replace code 160.

2. CODES 200 TO 279 FOR VARIOUS TYPES OF SUPPLIES
Use the appropriate code in this range 1) when ordering goods, materials, parts, or other such items and 2) when no specialized knowledge and/or labor is included. 210 is for office supplies. 240 is for vehicle parts (and no labor included in purchase). 260 is for cleaning supplies. 270 is for uniforms and related items. Also, 250 is now setup for construction and repair supplies; use this new code 250 when purchasing items and materials for staff to use in their repair work. When purchasing uniform service, not the uniforms themselves, for example, then a different expenditure code should be used as code 270 is for purchasing uniforms, not uniform service. 

3. CODE 280 FOR DEPARTMENT SUPPLIES
What was once called program supplies in the former accounting system is now called department supplies (code 280). And, its likely that items formerly charged to program supplies should be charged to a code other than 280-department supplies. Many new codes have been added for your use and more are being added every couple of months or so. For a list of expenditure codes, please refer to attached XLS file.

You may find that items that were previously charged to "program supplies" can now be charged to "cleaning supplies", "repair and maintenance supplies", or other codes specific to your department. When selecting the appropriate expenditure code on a requisition, we want to make it as easy as possible for you. The name of the expenditure code should be indicative of what items should be charged to that code.

4. CODES 402 TO 418 FOR RENTALS/LEASES
At times, there is a need to rent or lease space or equipment. Sometimes, a vendor may charge a rental fee amongst other charges for services. All payments for rent and lease agreements should be charged to one of these codes.

5. CODES 510 TO 529 FOR CONTRACTUAL AND PRE-ARRANGED MAINTENANCE AGREEMENTS
For certain special equipment, software, or other items, we may enter into a contractual or pre-arranged maintenance agreements. This puts the onus on the vendor to ensure the special item is operating optimally for our regular use.

Outside the realm of any written agreements, other repairs and maintenance items should be charged to codes 350 to 379.

6. PROGRAM EXPENDITURE CODES
Special expenditure codes have also been setup for various programs. Some of these codes are from 281 to 299 and others are from 430 to 479. Many of these codes may remain for a while, yet I do encourage you to take advantage of the new system's "tracking ID" feature and avoid using these program expenditure codes to collect expenditures for various supplies and services.

Under this feature, a "tracking ID" is assigned and is then later applied to related expenditures, as you deem appropriate. So, if you have a grant or other special proceeds, for example, and need to report expenditures back to the funding source, then a "tracking ID" report can be used to print the expenditures that used that special "tracking ID". By using "tracking ID", you can use the system to your advantage and possibly avoid some work to compile a special system report or more easily extract the required information.

7. CODES 750 TO 789
Use the appropriate code in this range when spending monies received by donation or contribution from non-government sources.

When spending monies received from government sources, however, normal expenditure accounts should be used. If needed, a "Tracking ID" may be assigned to these expenditure of government monies to separate these expenditures from your normal expenditures.

8. CODES 810 TO 889
Use the appropriate code in this range when purchasing any furniture, fixtures, equipment, or capital outlays. Some of the codes are setup to identify purchases of land, buildings, building improvements, and infrastructure improvements. There are also codes to identify purchases of computers and networking equipment, software, office furniture, office equipment, field equipment, etc. When you become aware of equipment you need to purchase or replace, begin planning immediately to make budget revisions for current and/or next year. As always, purchases of technology equipment, software, or other items should be routed through and approved by Brian Helms.

Code 859 should be used for various office furniture and equipment costing less than $5,000 (our capital asset threshold). Code 869 should be used for various technology equipment costing less than $5,000. Code 879 should be used for various other equipment and valuables costing less than $5,000. If you have another code already setup, you are authorized to use that code for any purchases that fall within that code's name. Please contact me if you need a new code setup for a purchase.

Also, code 800 should not be used currently, but may be helpful if you are looking for expenditure history from the period before codes 810 to 889 were setup to replace code 800.

CONTACT ME
I am available for one on one discussion and will gladly assist you in any way necessary. We appreciate your time and cooperation with streamlining orders and payments for those orders.

Best regards,
--CD