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The State Legislature authorizes State agencies to make expenditures and incur obligations for specific purposes each fiscal year in the form of an appropriation. Contract encumbrances and expenditures are made against the program appropriations and recorded by expenditure account.

Every effort has been made to provide expenditure codes that are specific enough to provide accurate management information, yet broad enough to cover the wide variety of goods and services purchased by New York State. In order to establish a chart of accounts for expenditures that is both usable and manageable, the list of account codes has been developed and organized according to industry best practices which requires that a minimum number of accounts be created for major expenditure classes which when combined with COMMODITY or PRODUCT CODES, will provide essential information that can be used for financial reporting and analytical purposes, and enable State managers to monitor and track how State funds are spent.

The following major classes of expenditures have been developed for use by all State agencies and public authorities that transact in the SFS. Each of these is described in the sections of this manual that immediately follow.





Guide to Financial Operations
REV. 05/25/2012