Object Classification (MAX Schedule O) 35.1. Purpose. Object classification is used to report obligations for PY-BY for each account according to the nature of the services or articles procured. Object class information is required for program and financing schedules, including schedules for supplemental requests, rescission proposals, and legislative proposals. This information is required for all accounts, except for credit financing accounts. Obligations are classified by the initial purpose for which they are incurred, rather than for the end product or service provided. For example, if an agency pays directly for personal services or supplies used in the construction of a building, the amounts should be classified as obligations for personnel compensation or supplies rather than for land and structures. Conversely, if an agency contracts for the construction of a building, the amounts should be classified in the object class for lands and structures rather than in the object class used to report individual types of materials and services required to construct the building. 35.2. General rules. The following general rules should be used to report data in object class schedules. These schedules must have adequate accounting support. Reimbursable obligations are reported by object class separately from obligations for the direct program. Reimbursements (including advances) paid from one account to another generally are reported by the paying account as a lump sum under the object class that represents the nature of the intragovernmental transaction. Obligations are reported in the receiving (performing) account as they are incurred, under the appropriate object class from the standpoint of the services or articles actually procured. Allocations.--For accounts that have allocations to other organizational units, obligations incurred under the allocation are included in the object class schedule of the parent account but are identified separately (see section 35.4(b)). Limitations on administrative and nonadministrative expenses.--For revolving or trust funds that have annual limitations on administrative or other expenses, separate object class schedules are required for total transactions of the fund and for each limitation for which there is a separate program and financing schedule. Agreement with program and financing schedules.--Total obligations in object class schedules on line 99.9 must agree with obligations reported in program and financing schedules on line 10.00. Total reimbursable obligations in object class schedules must also agree with the total reimbursable program identified in program and financing schedules (see section 32.2). Transfers between Federal and trust funds.--When transfers between Federal and trust funds finance reimbursable activities (formerly reported in object class 25.2), the paying account will report obligations in object class 25.3, and the receiving (performing) account will distribute the obligations incurred in performing the work as reimbursable obligations under the appropriate object class. When such transfers merely move resources between Federal and trust funds with no benefit to the paying agency, that agency should report the obligations in object class 92.0 and the receiving agency should distribute the obligations as direct obligations in the appropriate object classes. |35.3. Personnel compensation. | | For the purposes of reporting personnel compensation, the |definitions described below apply. | Compensation for full-time permanent employment is regular pay paid |directly to full-time permanent employees and other payments that |become part of the employee's basic rate of pay. Full-time permanent |employees are defined as those who are full-time, have permanent |appointments as defined by the Office of Personnel Management, and are |reportable to the Office of Personnel Management as Federal employees. |The nature of the employee's appointment is controlling, not the |nature of the position. | Full-time permanent employees include: | --full-time employees in the Competitive Service with career and | career-conditional appointments; | --full-time permanent employees in the Excepted Service whose | appointments carry no restriction or condition (including | employees in the Excepted Service who are serving trial periods or | whose tenure is equivalent to career-conditional tenure in the | Competitive Service, and excluding those serving on indefinite | appointments and appointments limited to a specific time); and | --full-time employees in the Senior Executive Service (SES) with | career appointments as defined in 5 U.S.C. 3132(a)(4) and | noncareer appointments as defined in 5 U.S.C. 3132(a)(7). | Compensation for part-time employment is regular pay for employees |with appointments that require work on a prearranged schedule of fewer |hours or days of work than prescribed for full-time employees in the |same group or class. | Compensation for temporary employment is regular pay for full-time |employment for a limited period of time that is generally less than a |year, for example, seasonal employment of employees without permanent |appointments. It also includes regular pay for employees with term |appointments and pay for employees whose tenure is without a specific |time limitation, but not actually or potentially permanent, i.e., |indefinite appointments. | Compensation for intermittent employment is regular pay for |consultants and other employees with appointments that require work on |an irregular or occasional basis, with hours or days of work not based |on a prearranged schedule. Compensation is paid only for the time |actually employed or services actually rendered. | Overtime is pay above the basic rate for services in excess of the |established work period, usually a 40-hour week or an 8-hour day. |Overtime hours are defined in 5 U.S.C. 5542 and include |administratively uncontrollable overtime. | Supervisory differential is pay above the basic rate to adjust the |compensation of a supervisor to a level greater than the highest-paid |subordinate. The differential applies to a General Schedule employee |who supervises one or more employees not covered by the General |Schedule and is not a part of basic pay. | Holiday pay is pay above the basic rate for services of 8 hours or |less on holidays or days treated as holidays. Holiday hours are |defined in 5 U.S.C. 5546(b). | Sunday pay is pay above the basic rate for 8 hours or less of |regularly scheduled work performed on Sundays. | Nightwork differential is pay above the basic rate for regularly |scheduled nightwork. | Hazardous duty pay is pay above the basic rate because of |assignments involving performance of duties that subject the employee |to hazards or physical hardship. 35.4. Reporting requirements and format. (a) Computer requirements for reporting object class amounts.--All object class amounts reported for the budget are entered into the MAX schedule O (see section 20.1). In most cases, agencies are responsible for entering the data directly into the MAX. In all other cases, agencies will provide marked-up computer runs. Data are reported on four-digit line numbers; the first digit distinguishes between direct, reimbursable, and other types of object class categories listed below. ---------------------------------------- Line Number Category ---------------------------------------- 1xxx Direct 2xxx Reimbursable 3xxx Allocation account--direct 4xxx Allocation account--reimbursable 5xxx Revolving fund 6xxx Limitation account--direct 7xxx Limitation account--reimbursable 8xxx Limitation account--allocation 9xxx Total obligations ---------------------------------------- The last three digits identify the object classes in which data are classified (see section 35.5). (b) Printing requirements and format for object class schedules.--General requirements for processing of print materials for object class data are included in section 30.1. In most cases, a separate printed object class schedule is required (see exhibits 35A and 35B). However, when all transactions fall in a single object class and are reported on a single line number, a separate printed object class schedule is not required. The appropriate object class will be identified in parentheses at the end of the stub entry for line 10.00 of the program and financing schedule, e.g., "(object class 41.0)". (Note: Even though object class data are printed as a stub entry to the program and financing schedule, the data must be entered in MAX schedule O.) Object class codes in printed schedules.--In the printed object class schedules, object classes will be identified by the last three digits of the four-digit line number. For example, line number 1111 will print as "11.1 Full-time permanent" under the "Personnel compensation" heading. Section 35.5 identifies the last three digits of the line number and provides definitions for the object classes. Standard titles and the use of subcategories.--Standard titles, as listed in section 35.5, should be used to identify object class amounts. If it is necessary to show a subcategory within any object class, subentries may be used. The subentries will appear in the schedule under a heading using the standard title for the object class to which they belong. Amounts for each subentry should be reported on the line number for the appropriate object class category (see section 35.4(a) above). Reimbursable programs.--When services are financed in an account from reimbursements, the object class data are entered into MAX using the line 2xxx, as stated in section 35.4(a) above. The subtotal for all reimbursable object class entries will be automatically calculated on line 2990. A subtotal is required even if reimbursable obligations are reported only in one object class. The detailed object class information is required for the data base only and will not be printed. A single entry for the subtotal will be printed, titled "Reimbursable obligations." Reimbursable obligations within an allocation, revolving, or limitation account are reported on different line numbers (see section 35.4(a)). Allocation accounts.--In the case of accounts that have allocations, the object class schedule will be divided into two sections. The parent agency or bureau will be shown first; the allocation will be shown second. The parent agency or bureau will be identified in a center heading. Where there is only one allocation, the center heading of that section will read "Allocation to [Name of bureau (if in the same agency) or other agency]". No distribution of total obligations by organizational unit is required. Where there are two or more allocations, the allocation section will contain the combined obligations for all allocations (see exhibit 35B). The center heading will read "Allocation accounts". The final entry will read "Subtotal, obligations, allocation accounts". A distribution of the total obligations by organizational unit (including the parent agency) will be appended to the end of the schedule under a side heading "Obligations are distributed as follows:". The parent organizational unit will be listed first, followed by entries for each bureau within the same agency and for other agencies receiving an allocation in budget order. (If allocations are made to two or more bureaus in another agency, the amounts will be consolidated in a single entry for that agency.) Complete object class information for each allocation account must be included in the justification submitted by the parent agency. Accounts with both allocations and reimbursable obligations.--The object class schedule for accounts with both reimbursable obligations and allocations to other organizational units will be constructed with two major groupings. The first grouping will contain entries for both direct and reimbursable obligations of the parent agency. This grouping will be under a centered title naming the parent agency or bureau. The second grouping will contain entries for both direct and reimbursable obligations, as appropriate, within the allocation portion of the schedule. Subtotals and totals.--In all cases where the schedule contains more than one section, the subtotals for the individual sections will be generated automatically on line x990 under MAX. "Total obligations" will be automatically generated on line 9999. (c) Consulting service object class data.--As required by law, obligations for consulting services are required to be reported separately from other contractual services (see object class 25.1 in section 35.5). In addition, supporting information on consulting services obligations reported in object class 25.1 is required (see section 15.8). 35.5. Object class definitions. The entries used to report object class data and definitions of those object classes are provided below. Entries in boldface normally will be automatically generated in MAX. ---------------------------------------------------------------------- Code and Standard Title Definition ---------------------------------------------------------------------- PERSONAL SERVICES AND BENEFITS (Object classes 11.1 through 13.0) ---------------------------------------------------------------------- Personnel Gross compensation for personal services rendered to Compensation the Government by Federal civilian employees, military personnel, and non-Federal personnel. (See object classes 11.1-11.9). ---------------------------------------------------------------------- 11.1 Full-time Regular salaries and wages paid directly to civilian permanent full-time permanent employees, as defined in section 35.3, and other payments that become a part of the employee's basic pay rate (e.g., geographic differentials and critical position pay). Includes regular salaries and wages paid to employees while on annual, sick, compensatory or other paid leave, and terminal leave payments; excludes compensation above the basic rate, e.g., for overtime or other premium pay, which should be recorded in object class 11.5. Includes regular pay of the commissioned officers of the Public Health Service, the National Oceanic and Atmospheric Administration, and the Environmental Protection Agency. Where employees are paid from more than one appropriation, the applicable portion will be included under each appropriation. Include compensation for all workdays in the fiscal year. ---------------------------------------------------------------------- 11.3 Other Regular salaries and wages, including obligations for than full-time terminal leave payments paid directly to Federal permanent civilian employees for part-time, temporary, or intermittent employment, as defined in section 35.3. Includes pay for employees in the Competitive and Excepted Services with appointments that are not designated as full-time permanent under object class 11.1. Includes pay for employees in the Senior Executive Service who are serving under limited term appointments, as defined in 5 U.S.C. 3132(a)(5) and under limited emergency appointments, as defined in 5 U.S.C. 3132(a)(6). Note: When the Government contracts with an individual for personal services and that individual is reportable under Office of Personnel Management regulations as a Federal employee, the compensation for services normally will be classified under object class 11.3 or 11.5, as appropriate. On the other hand, payments to a contractor principally for the personal services of a group of the contractor's employees will be classified under object class 25.2. Similarly, contracts with private sector individuals for personal services that provide for substantial additional considerations, such as a contract with a physician who provides his or her own office, x-ray and other equipment, will be classified under object class 25.2. ---------------------------------------------------------------------- 11.5 Other All personnel compensation above basic rates paid personnel directly to civilian employees. Excludes cash compensation allowances for higher cost of living locations, which are classified under object class 12.1. Includes overtime, holiday pay, Sunday pay, night work differential, supervisory differential, and hazardous duty pay, as defined in section 35.3. Also includes: Post differentials--Payments authorized under 5 U.S.C. 5925 above the basic rate for service at hardship posts abroad that are based upon conditions of environment differing substantially from those in the contiguous 48 States and the District of Columbia. Other payments above basic rates--Payments above the basic rate for any other premium pay, such as stand-by pay and premium pay in lieu of overtime and special pay that is paid periodically during the year in the same manner and at the same time as regular salaries and wages are paid. Excludes special pay which is classified under object class 12.1. | Cash incentive awards--Payments for cash awards that | do not become part of the Federal employee's basic | rate of pay, such as those authorized under 5 U.S.C. | 4503, 4504, 4505a, 4507, and 5384. ---------------------------------------------------------------------- 11.7 Military Pay of military personnel including amounts above personnel basic rates, for example, overtime, holiday pay, night work differential, hazardous duty pay, flight pay, and extra pay based upon conditions of environment (except cost of living allowances for locations outside the contiguous 48 States and the District of Columbia which are classified under object class 12.2). Also includes basic allowances for subsistence (BAS) and for quarters (BAQ). Excludes payments made to other agencies for services of military personnel on reimbursable detail, which are classified under object class 11.8. ---------------------------------------------------------------------- 11.8 Special Regular salaries and wages paid directly to persons personal whose workyears are not reportable to the Office of services Personnel Management as Federal civilian employees and payments payments for personal services that do not represent salaries or wages paid directly to Federal employees. Includes: Compensation of persons not reportable as Federal employees--Payments for compensation to persons not included in regular employment reports to the Office of Personnel Management, such as: witnesses, casual workers, and patient and inmate help. Includes compensation in the nature of allowances to trainees and volunteers. Also includes payments for salary equalization authorized under 5 U.S.C. 3373 and 3584 for individuals on leave of absence for employment with international organizations or State and local governments. (During the period of leave of absence, such persons are not included in reports on Federal employment to the Office of Personnel Management if the Federal agency pays 50 percent or less of the person's salary.) Payments for reimbursable details--Payments made to other agencies for services of civilian employees and military personnel on reimbursable detail (both compensation and personnel benefits). Excludes other payments for reimbursable activities between Government accounts, which are classified in object class 25.3. Agency reimbursement to the Civil service retirement and disability fund for reemployed annuitants--Payments by an agency employing an annuitant to reimburse the Civil service retirement and disability fund for the annuity paid to that employee, as required by Public Law 94-397 (5 U.S.C. 8339, 8344). ---------------------------------------------------------------------- 11.9 Total Total of the amounts shown for object classes 11.1 personnel through 11.8. compensation ---------------------------------------------------------------------- Personnel Benefits for currently employed Federal civilian, Benefits military, and certain non-Federal personnel. (Payments of benefits to certain former Federal civilian and military personnel are classified under object classes 13.0 and 42.0.) (See object classes 12.1 and 12.2.) ---------------------------------------------------------------------- 12.1 Civilian Cash allowances paid directly to Federal civilian personnel employees and payments to other funds for the benefit benefits of these employees, and benefits authorized by statute to be paid, including those to certain non-Federal civilian employees. This object class consists of all such payments whether or not the personnel compensation of these employees is classified under object classes 11.1 through 11.8. Benefit payments for non-Federal civilian employees under this object class include persons not reportable to the Office of Personnel Management as Federal employees, e.g., Peace Corps and VISTA volunteers, Job Corps enrollees, and U.S. Department of Agriculture Extension Service agents. Excludes cash incentive awards classified under object class 11.5 and perquisites provided in kind (which are classified under the object class representing the nature of the item purchased), and payments to former employees resulting from their employment. Includes: Recruitment and retention incentives--Payments above the basic rate for recruitment bonuses, relocation bonuses, and retention allowances authorized by 5 U.S.C. 5753 and 5754. Allowances--Includes quarters allowances, uniform allowances (when paid in cash), special pay that is paid in a lump sum, reimbursements for notary public expenses, and allowances above basic rates of pay for service outside the contiguous 48 States and the District of Columbia to compensate for a substantially higher cost of living at the post of assignment than the cost of living in the District of Columbia (as authorized under 5 U.S.C. 5924 and 5941). Also includes allowances for separate maintenance, education for dependents, transfers for employees stationed abroad, and personal allowances based upon assignment or position. Relocation and other expenses related to permanent change of station (PCS)--Includes authorized allowances for expenses incurred in connection with the sale of a residence, or settlement of an unexpired lease, subsistence while occupying temporary quarters, and miscellaneous moving expenses, as authorized under 5 U.S.C. 5724a. Also includes reimbursement of amounts equal to income taxes incurred by transferred employees for moving or storage expenses under 5 U.S.C. 5724b and contractual charges for relocation services under 5 U.S.C. 5724c. Charges for other PCS expenses are classified under object class 12.2, 21.0, 22.0, 25.2, or 25.3, as appropriate. | Payments to other funds--Includes employers share of | employee retirement, life insurance and health | insurance benefits, accident compensation (e.g., | payments to the Office of Worker's Compensation), | Federal Insurance Contribution Act taxes, and other | such payments. Includes agency $80 payments to the | civil service retirement fund for currently employed | CSRS and FERS personnel, as required under the | Federal Workforce Restructuring Act of 1994. Also | includes agency payments to finance fiduciary | insurance costs of the Federal Retirement Thrift | Investment Board. Subsidies for commuting costs--Includes payments to subsidize the costs of Federal civilian employees in commuting by public transportation. ---------------------------------------------------------------------- 12.2 Military Cash allowances and payments to other funds for personnel military personnel. Includes: benefits Allowances--Includes uniform allowances (when paid in cash) and reenlistment bonuses. Also includes cost-of-living allowances paid to personnel on duty outside the contiguous 48 States and the District of Columbia, dislocation and family separation allowances, and personal allowances based upon assignment or rank. (Excludes hazardous duty pay, flight pay, extra pay based upon conditions of environment, and other such pay, which are classified under object class 11.7, and benefit payments to veterans resulting from their past service.) Payments to other funds--Includes the employer share of military retirement, Federal Insurance Contribution Act taxes, Servicemen's Group Life Insurance premiums, and education benefits. Subsidies for commuting costs--Includes payments to subsidize the costs of military personnel in commuting by public transportation. ---------------------------------------------------------------------- 13.0 Benefits Benefits due to former employees or their survivors on for former the basis of (at least in part) the length of service personnel to the Government. Excludes benefits provided in kind, such as hospital and medical care, which are classified under the object class representing the nature of the items purchased. Includes: Retirement benefits--Compensation in the form of pensions, annuities, or other retirement benefits paid to former military and certain civilian Government personnel or to their survivors, exclusive of payments from retirement trust funds, which are classified under object class 42.0. | Separation pay--Severance payments to former employees | involuntarily separated through no fault of their own | and voluntary separation incentive (VSI) payments to | employees who voluntarily separate from Federal | service. | Other benefits--Payments to other funds for ex-Federal | employees and ex-servicepersons (e.g., agency payments | to the unemployment trust fund for ex-employees and | one-time agency payments of 9% of final basic pay to | the civil service retirement fund for employees who | took the early-out under buy-out authority) and other | benefits paid directly to the beneficiary. Also | includes Government payment to the Employees health | benefits fund for annuitants. ---------------------------------------------------------------------- CONTRACTUAL SERVICES AND SUPPLIES (Object classes 21.0 through 26.0) ---------------------------------------------------------------------- 21.0 Travel Obligations for transportation of Government employees and or others, their per diem allowances while in an transportation authorized travel status, and other expenses incident of persons to travel that are to be paid by the Government either directly or by reimbursing the traveler. This object class consists of both travel away from official stations, subject to regulations governing civilian and military travel, and local travel and transportation of persons in and around the official station of an employee. In determining subclasses for administrative use, agencies may maintain such distinctions as they deem appropriate, including a separate subclass for rental of vehicles from interagency motor vehicle pools. Includes: Transportation of persons--Contractual obligations for services in connection with carrying persons from place to place, by land, air, or water and the furnishing of accommodations incident to actual travel. Includes commercial transportation charges; rental or lease of passenger cars; charter of trains, buses, vessels, or airplanes; ambulance service or hearse service; and expenses incident to the operation of rented or chartered conveyances. (Rental or lease of all passenger-carrying vehicles is to be charged to this object class, even though such vehicles may be used incidentally for transportation of things.) Includes mileage allowances for use of privately owned vehicles and related charges that are specifically authorized (such as highway and ferry tolls). It includes rental or lease of passenger motor vehicles from Government motor pools. Also includes bus, subway, streetcar, and taxi fares (including tips) whether used for local transportation or for travel away from a designated post of duty. Subsistence for travelers--Payments to travelers of per diem allowances or reimbursement of actual expenses for subsistence. Transportation expenses incident to permanent change of station (PCS)--Payments to employees for transportation expenses and per diem allowances or reimbursement of actual travel expenses associated with a permanent change of station (including travel expenses and per diem for the employee's immediate family), as authorized under 5 U.S.C. 5724a. Charges for other PCS expenses are classified under object class 12.1, 12.2, 22.0, 25.2, or 25.3, as appropriate. Incidental travel expenses--Other expenses directly related to official travel, such as baggage transfer, and telephone and telegraph expenses, as authorized by travel regulations. ---------------------------------------------------------------------- 22.0 Contractual obligations for the transportation of Transportation things (including animals), for the care of such of things things while in process of being transported, and for other services incident to the transportation of things. (Excludes transportation paid by a vendor, regardless of whether the cost is itemized on the bill for the commodities purchased by the Government.) Includes: Freight and express--Charges by common carrier and contract carrier, including freight and express, demurrage, switching, recrating, refrigerating, and other incidental expenses. Trucking and other local transportation--Charges for hauling, handling, and other services incident to local transportation, including contractual transfers of supplies and equipment. Mail transportation--Postage used in parcel post and charges for express package services (i.e., charges for transporting freight). (It excludes other postage and charges that are classified under object class 23.3.) Transportation of household goods related to permanent change of station (PCS) travel--Payments to Federal employees for transportation of household goods and effects or house trailers in lieu of payment of actual expenses when payment is for transfer of personnel from one official station to another. Charges for other PCS expenses are classified under object class 12.1, 12.2, 21.0, 25.2, or 25.3, as appropriate. ---------------------------------------------------------------------- Rent, Charges for possession and use of land, structures, or Communications equipment owned by others and charges for and Utilities communication and utility services. Excludes charges for rental of transportation equipment, which are classified under object class 21.0 or 22.0. (See object classes 23.1 through 23.3.) ---------------------------------------------------------------------- 23.1 Rental Direct obligations for rental of space and rent payments to related services assessed by the General Services GSA Administration (GSA) as rent, formerly known as standard level user charges (SLUC). Excludes charges for related services provided by GSA in addition to services provided under rental payments, e.g., extra protection, extra cleaning, or extra alterations, which are classified under object class 25.2 or 25.3. ---------------------------------------------------------------------- 23.2 Rental Obligations for possession and use of space, land, and payments to structures leased from a non-Federal source. Rental others payments to agencies other than GSA for space, land, and structures that are subleased or occupied by permits regardless of whether the space is owned or leased will be classified under object class 25.3. ---------------------------------------------------------------------- 23.3 Includes: Communications ADP and communication services and utilities, and rentals--Obligations for the transmission of messages miscellaneous or data, such as land telegraph service, marine cable charges service, radio and wireless telegraph service, electronic data transmission service, and telephone and teletype service; postage (excluding parcel post and express mail service for freight); contractual mail (including express mail service for letters) or messenger service; and rental of post office boxes, postage meter machines, mailing machines and teletype equipment. Includes charges for the rental of ADP and telecommunications hardware and software. (Charges for maintenance to ADP and telecommunications hardware and software and related training and technical assistance, when significant and readily identifiable in the contract or billing, will be classified under object class 25.2 or 25.3, as appropriate. Contractual services involving the use of equipment in the possession of others such as computer time-sharing, will also be classified under object class 25.2 or 25.3, as appropriate.) Utility services--Obligations for heat, light, power, water, gas, electricity, and other utility services. Miscellaneous charges--Periodic charges under purchase rental agreements for equipment. (Payments subsequent to the acquisition of title to the equipment should be classified under object class 31.0.) Excludes payments under lease-purchase contracts for construction of buildings, which are classified under object class 32.0 or 43.0, and for ADP and telecommunications equipment, which are classified under object class 31.0. ---------------------------------------------------------------------- 24.0 Printing Obligations for contractual printing and reproduction and (including photocomposition, photography, reproduction blueprinting, photostating, and microfilming), and the related composition and binding operations performed by the Government Printing Office, other agencies or other units of the same agency (on a reimbursable basis), and commercial printers or photographers. Includes all common processes of duplicating obtained on a contractual or reimbursable basis. Also includes standard forms when specially printed or assembled to order and printed envelopes and letterheads. Note: This object class consists of both printing and binding as defined in the Government Printing and Binding regulations issued by the Joint Committee on Printing and reproduction of the type that does not come within the Joint Committee's definition. In determining subclasses for administrative use, agencies may appropriately maintain such a distinction. ---------------------------------------------------------------------- Other Contractual services for consulting, purchases of contractual goods and services from Government accounts, services operations of GOCOs, research and development (R&D) contracts, and other services not otherwise classified. Supplies and materials furnished by the contractor in connection with consulting or other services are included in object classes 25.1, 25.2, 25.4, or 25.5 based on the type of contractual services involved. ---------------------------------------------------------------------- 25.1 Obligations for consulting services, which are defined Consulting as advisory and assistance services acquired by services contract from non-governmental sources to support or improve organization policy development, decision-making, management, and administration; support program and/or project management and administration; provide management and support services for R&D activities; provide engineering and technical support services; or improve the effectiveness of management processes or procedures. Such services may take the form of information, advice, opinions, alternatives, analyses, evaluations, recommendations, training, and technical support. Also includes interagency agreements for consulting services. Excludes personnel appointments and advisory committees, which are classified under object class 11.3. Also excludes obligations for contracts with the private sector for routine ADP and telecommunications services (i.e., Federal information processing resources) as defined in subpart 201-39.201 of the Federal Information Resources Management Regulations (FIRMR), unless they are an integral part of consulting services contracts; architectural and engineering services as defined in the Federal Acquisition Regulations (FAR) 36.102; and research on theoretical mathematics and basic medical, biological, physical, social, psychological, or other phenomena. Other contractual services, which are classified in object classes 25.2, 25.3, 25.4, and 25.5, are excluded. This object class consists of the following three categories. Management and professional support services--Obligations for contractual services that provide assistance, advice, or training for the efficient and effective management and operation of organizations, activities (including management and support services for R&D activities), or systems. These services are normally closely related to the basic responsibilities and mission of the agency contracting for the services. Includes efforts that support or contribute to improved organization of program management, logistics, management, project monitoring and reporting, data collection, budgeting, accounting, performance auditing, and administrative/technical support for conferences and training programs. Excludes auditing of financial statements, which is classified as other services, object class 25.2. Studies, analyses, and evaluations--Obligations for contractual services that provide organized, analytic assessments/evaluations in support of policy development, decision-making, management, or administration. Includes studies in support of R&D activities. Also includes obligations for models, methodologies, and related software supporting studies, analyses, or evaluations. Engineering and technical services (excluding routine engineering services, as described above)--Obligations for contractual services used to support the program office during the acquisition cycle by providing such services as systems engineering and technical direction (FAR 9.505-1(b)) to ensure the effective operation and maintenance of a weapon system or major system as defined in OMB Circular No. A-109 or to provide direct support of a weapons system that is essential to R&D, production, or maintenance of the system. ---------------------------------------------------------------------- |25.2 Other Obligations for contractual services with the private |services sector that are not otherwise classified will be | reported under this object class. Excludes obligations | for consulting service contracts, which are classified | under object class 25.1. Also excludes obligations | classified under other object classes for contractual | services and supplies (object classes 21.0, 22.0, | 23.1, 23.2, 23.3, 24.0, 25.1, 25.3, 25.4, 25.5, and | 26.0). Obligations for services in connection with the initial installation of equipment, when performed by the vendor, which are classified under object class 31.0 are excluded. Also excludes transfers between Federal and trust funds, which are classified in object classes 25.3 and 92.0, as described below. Includes: Repairs and alterations--Obligations for repairs and alterations to buildings, bridges, viaducts, vessels, equipment, and like items, when done by contract with the private sector. Storage and maintenance--Obligations for contractual services with the public for storage and care of vehicles and storage of household goods, including those associated with a permanent change of station (PCS). Obligations for other PCS expenses are classified under object class 12.1, 12.2, 21.0, 22.0, or 25.3. Subsistence and support of persons--Obligations incurred for contractual services with the public for board, lodging, and care of persons, including hospital care (except travel items, which are classified under object class 21.0). Auditing--Includes obligations for auditing of financial statements when done by contract with the private sector. Excludes performance auditing, which is classified in object class 25.1. Typing and stenographic service contracts with the private sector. Publication of notices, advertising, and radio and television time when done by private sector contract. Tuition. Fees and other charges--Fees for abstracting land titles, premiums on insurance (other than payments to the Office of Personnel Management), and surety bonds. Custom software--Obligations for contracts with the public covering development of software of $25,000 or less, unless the software is an integral part of consulting services contracts, as defined above. Excludes custom software classified in object classes 25.1, 25.3, and 31.0. Software and hardware maintenance--Obligations for contracts with the public to maintain software or hardware, including maintenance that is part of a rental contract, when significant and readily identifiable in the contract or billing. Excludes charges for rental of ADP and telecommunications hardware and software, which are classified in object class 23.3. Operation of facilities or other service contracts (except for operation of GOCOs) where the private sector performs the service. ---------------------------------------------------------------------- |25.3 Purchases Includes obligations for purchases from other Federal |of goods and agencies or accounts that are not otherwise |services classified. Includes interagency agreements for |from Government contractual services (including the Economy Act) for |accounts the purchase of goods and services, including | agreements with other agencies to make repairs and | alterations to buildings, provide storage and | maintenance of vehicles and household goods, and | subsistence and support of persons. Also includes | obligations for interagency contracts for development | of software of $25,000 or less or for software or | hardware maintenance, when done by another Federal | agency or account. Transfers between Federal and trust funds.--Obligations, formerly classified in object class 25.2, that finance the purchase of goods and services (i.e., reimbursable activities) through transfers between Federal and trust fund accounts (see also object class 92.0). | Excludes interagency contracts for consulting | services, which are classified in object class 25.1 | and payments made to other agencies for services of | civilian employees or military personnel on | reimbursable detail, which are classified in object | class 11.8. Also excludes obligations for contractual | services classified under object classes 21.0, 22.0, | 23.1, 23.2, 23.3, 24.0, 25.1, 25.2, 25.4, 25.5, and | 26.0). ---------------------------------------------------------------------- 25.4 Operation Includes obligations for the operation of of GOCOs Government-owned contractor-operated facilities, including those engaged in research and development. ---------------------------------------------------------------------- 25.5 Research Research and development contracts, except R&D and development reported as consulting services (object class 25.1) or contracts as operation of GOCOs (object class 25.5). ---------------------------------------------------------------------- 26.0 Supplies Obligations for commodities whether acquired by formal and materials contract or other form of purchase that are: ordinarily consumed or expended within one year after they are put into use; converted in the process of construction or manufacture; or used to form a minor part of equipment or fixed property. Also includes charges for off-the-shelf software purchases of $25,000 or less. (For purposes of this Circular, other property of little monetary value that does not meet any of these three criteria listed above may also be classified as "Supplies and materials" at the option of the agency.) Includes: Office supplies--Obligations for pencils, paper, calendar pads, stenographic notebooks, standard forms (except when specially printed or assembled to order), unprinted envelopes, other office supplies, and property of little monetary value, such as desk trays, pen sets, and calendar stands. Publications--Obligations for purchases of or subscriptions to pamphlets, documents, books, newspapers, periodicals, records, cassettes, or other publications whether printed, microfilmed, photocopied, or otherwise recorded for auditory or visual use that are off-the-shelf rather than specially ordered by or at the request of the agency. Excludes publications acquired for permanent collections, which are classified under object class 31.0. ADP supplies and materials--Obligations for computer and word processing tapes, discs, and manuals. Includes off-the-shelf software purchases and licenses of $25,000 or less. Excludes off-the-shelf software classified under object class 31.0. Chemicals, surgical and medical supplies. Fuel--Obligations for fuels used in cooking, heating, generating power, making artificial gas, and operating motor vehicles, trains, aircraft, and vessels. Clothing and clothing supplies--Obligations for articles of clothing, together with materials and sewing supplies used in manufacture of wearing apparel. Provisions--Obligations for food and beverages. Cleaning and toilet supplies. Ammunition and explosives. Materials and parts--Obligations for commodities (including building materials) used in the construction, repair, or production of supplies, equipment, machinery, buildings, and other structures. ---------------------------------------------------------------------- ACQUISITION OF CAPITAL ASSETS (Object classes 31.0 through 33.0) ---------------------------------------------------------------------- 31.0 Equipment Obligations for the purchase of personal property of a durable nature--that is, property that normally may be expected to have a period of service of a year or more after being put into use without material impairment of its physical condition. Includes obligations for service in connection with the initial installation of equipment when performed under contract. Excludes off-the-shelf software valued at $25,000 or less and supplies and materials classified under object class 26.0. Also excludes fixed equipment that is classified under object class 32.0. This object class may consist of both equipment that is not capitalized (not set up in property accounts) and equipment that is capitalized. In determining subclasses for administrative use, agencies may appropriately maintain such a distinction. Includes: Transportation equipment--Obligations for vehicles, including passenger-carrying automobiles, motor trucks, and motorcycles; tractors; aircraft; trains; and steamships, barges, power launches, and other vessels. Furniture and fixtures--Obligations for movable furniture, fittings, fixtures, and household equipment. Includes desks, tables, chairs, typewriters, word processing equipment, and calculators. Publications for permanent collections. Tools and implements. Machinery--Obligations for engines, generators, manufacturing machinery, transformers, ship equipment, pumps, and other production and construction machinery. Instruments and apparatus-- Obligations for surgical instruments, x-ray apparatus, signaling equipment, telephone and telegraph equipment, electronic equipment, scientific instruments and appliances, measuring and weighing instruments and accessories, photographic equipment, picture projection equipment and accessories, and mechanical drafting devices. ADP and telecommunications equipment --Obligations for hardware, e.g., central processing units (CPUs), punch card accounting machines, data entry machines, modems, telephone handsets, and personal computers. Also includes purchases of off-the-shelf and custom software of more than $25,000. Armaments--Obligations for tanks, armored carriers, tractors, missiles, machine guns, small arms, bayonets, anti-aircraft guns, artillery, searchlights, detectors, fire-control apparatus, submarine mine equipment, ammunition hoists, torpedo tubes, and other special and miscellaneous military equipment. ---------------------------------------------------------------------- 32.0 Land and Obligations for purchase of land, buildings, and other structures structures, additions to buildings, nonstructural improvements, fixed equipment when acquired under contract (whether an addition or a replacement), and payments from liquidating accounts for defaulted loan guarantees on loans than have been foreclosed, so that the Federal payment results in the acquisition of a physical asset rather than a loan asset. Includes: Land--Obligations for the purchase of land and interest in lands, including easements and rights of way. Buildings and other structures--Obligations for the acquisition or construction of buildings and structures, and additions thereto, when acquired under contract. Includes principal payments under lease-purchase contracts for construction of buildings. Nonstructural improvements--Obligations for improvements of land, such as landscaping, fences, sewers, wells, and reservoirs, when acquired under contract. Fixed equipment--Obligations for fixtures and equipment that become permanently attached to or a part of buildings or structures, such as elevators, plumbing, power-plant boilers, fire-alarm systems, lighting or heating systems, and air-conditioning or refrigerating systems (whether an addition or a replacement), when acquired under contract. Includes amounts for services for the initial installation of fixed equipment when performed under contract. ---------------------------------------------------------------------- 33.0 Obligations for the purchase of securities and Investments expenditures in the nature of capital for other funds. and loans In credit liquidating accounts, includes loans and payments for defaulted loan guarantees in those cases where the default has not resulted in foreclosure, so that the Government acquires title to the note rather than title to physical assets. If payment occurs for which there is no asset (property or enforceable notes) so that the payment is a sunk cost, it should be included under object class 42.0. Includes: Investments in securities--Obligations for the purchase of stocks, bonds, debentures, and other securities (except the par value of U.S. Government securities or securities of wholly-owned Government enterprises) in which money is invested either temporarily or permanently. Includes the amounts paid for interest accrued at the time of purchase and premiums paid on all investments, including payments over par value for the purchase of Government securities and discounts under par value on sales of Government securities. ---------------------------------------------------------------------- GRANTS AND FIXED CHARGES (Object classes 41.0 through 44.0) ---------------------------------------------------------------------- 41.0 Grants, Grants (including revenue sharing), subsidies subsidies, and (including credit program costs), gratuities, and contributions other aid for which cash payments are made to States, other political subdivisions, corporations, associations, and individuals; contributions to international societies, commissions, proceedings, or projects, whether in lump sum or as quotas of expenses; contributions fixed by treaty; grants to foreign countries; taxes imposed by taxing authorities where the Federal Government has consented to taxation (excluding the employer's share of Federal Insurance Contribution Act taxes); and payments in lieu of taxes. Includes readjustment and other benefits for veterans, other than indemnities for death or disability. Note: Obligations under grant programs that involve the furnishing of services, supplies, materials, and the like, rather than cash are not charged to this object class, but to the object class representing the nature of the services, articles, or other items that are purchased. ---------------------------------------------------------------------- 42.0 Insurance Benefit payments from the social insurance and Federal claims and retirement trust funds and payments for losses and indemnities claims including those under the Equal Access to Justice Act. Includes: Social insurance and retirement--Payments for individuals from trust funds for social security, medicare, unemployment insurance, railroad retirement, Federal civilian retirement, military retirement, and other social insurance and retirement programs. Other claims or indemnities--Payments to veterans and former civilian employees or their survivors for death or disability, whether service connected or not. Payments of claims and judgments arising from court decisions or abrogation of contracts; indemnities for the destruction of livestock, crops, and the like; damage to or loss of property; and personal injury or death. Includes payments to or for persons displaced as a result of Federal and federally assisted programs, as authorized under 42 U.S.C. 4622-4624. Includes losses made good on Government shipments, and payments made from liquidating accounts on guarantees where no asset is received and where forgiveness is not provided by law. ---------------------------------------------------------------------- 43.0 Interest Payments to creditors for the use of moneys loaned, and dividends deposited, overpaid, or otherwise made available and the distribution of earnings to owners of trust or other funds. Includes interest payments under lease-purchase contracts for construction of buildings. If payment of claims under a contract has been delayed by the Government, the interest will be recorded under the same object class used for the original contract and not in this object class. ---------------------------------------------------------------------- 44.0 Refunds Payments made from an appropriation or fund account to refund amounts previously received by the Government to correct errors in computations, erroneous billing and other factors (see section 14.2(i)). Also includes amounts refunded to former employees or their beneficiaries for employee contributions to retirement and disability funds (e.g., payments made when employees die before retirement or before their annuities equal the amount withheld). In the account receiving the refund, previously recorded obligations will be reduced in the appropriate object class(es) by the amount of the refund. ---------------------------------------------------------------------- OTHER (Object classes 91.0 through 99.9) ---------------------------------------------------------------------- Other The following object classes will be used, as appropriate, when preparing agency budget submissions under this Circular. They will also be used at other times when such information is requested. ---------------------------------------------------------------------- 91.0 Charges that may be incurred lawfully for confidential Unvouchered purposes, not subject to detailed vouchering or reporting, will be recorded under this object class. ---------------------------------------------------------------------- 92.0 Charges that cannot be distributed to the classes Undistributed listed above, including obligations related to transfers between Federal and trust funds when the transfers result from appropriation action or general transfer authority. Transfers that finance purchase of goods and services (i.e., reimbursable activities) that were formerly classified in object class 25.2 are now classified in object class 25.3. This object class will be used for reporting purposes only with the prior approval of OMB. Once approved, specify the type of transaction as a subentry under the title, "Undistributed", when reporting object class 92.0 data in MAX Schedule O (see section 35.3(b)). ---------------------------------------------------------------------- 93.0 This object class is used when there is an annual Limitation limitation on administrative or nonadministrative on expenses expenses for revolving and trust funds. In the object class schedule for the revolving or trust fund, total obligations applicable to the limitation are reported as a lump sum entry without any distribution under object class 93.0. A separate object classification schedule for the limitation will distribute the lump sum obligations reported in the parent schedule in object classes 11.1 through 44.0, as appropriate, with an offsetting negative entry on line 93.0 equal to the total obligations distributed. No amount will be shown on the subtotal line (99.0) or the total line (99.9) of the separate object classification schedule for the limitation. ---------------------------------------------------------------------- 99.0 Subtotal, Subtotal of entries above for direct, reimbursable, or obligations allocation account obligations when more than one of these categories are reported in a single account. The subtotal stub entry for reimbursable obligations, "Reimbursable obligations", should be used, even if all reimbursable obligations are classified in a single object class category. ---------------------------------------------------------------------- 99.9 Total This entry will equal the sum of the total obligations obligations for all the object class entries. The amount must equal total obligations as shown on line 10.00 of the program and financing schedule. Only the final total of all obligations should be coded 99.9. Subtotals for schedules containing two or more sections will be coded 99.0 for the individual sections. ----------------------------------------------------------------------