7. Object Codes
7.1 Introduction
7.1.1 Policy
Government-wide object classification
Departmental objects must be related to the government-wide objects in the classification (Master Lists) prescribed by the Treasury Board.
The government-wide object classification is included in the Master Lists of Objects included in Section 7.2 of this chapter.
Internal transactions
To determine and report more accurately the impact of government revenues and expenditures on the rest of the economy, the net amount of government purchases and sales by standard object must be determined.
- All departments, including those that use revolving funds, must charge their expenditures for purchases from outside the government to standard objects 01 to 12. Similarly, sales to entities outside the government will be credited to standard objects 13 or 14.
An elaboration of this policy is included in Section 7.4 of this chapter.
7.1.2 Introduction
The object classification system identifies the type of resources acquired or disbursed. The classification is coded at the time of the initial transaction, and identifies
- in the case of expenditure, the types of goods or services acquired or the transfer payments made;
The resulting information provides a standardized classification system for various levels of management in departments, for economic analysis on a government-wide basis, and for central agency management purposes.
Since the object coding system was first introduced, its use has expanded so that it now provides a repository of government-wide information which can be used by central agencies and others without requiring departments and agencies to respond to numerous individual requests.
With the above information the central repository provides:
- A system for classifying and coding transactions to report information to Parliament in the Estimates and the Public Accounts about the nature of the transactions.
7.1.3 Object Classification Levels
To accommodate the need for differing degrees of detail, several levels of classification by object are used. In descending order of aggregation, they are: categories, sub-categories, standard objects; reporting objects, sub-reporting objects; economic, source and class objects; and departmental (line) objects. (See chart on page 7 and Section 7.1.4 for further details.)
Categories
Categorie, are the highest levels of object aggregation. As a result of the expanding requirements for object analysis information, economic and source objects are being re-numbered into their category and sub-category sequence over the next few fiscal years. This will provide more flexibility for the numbering system and make it less dependent on the standard objects currently in use.
There are ten categories in the Master Lists of Objects-four for expenditures, two for revenue and four for financial claims and obligations. (See Section 7.1.4 a for detailed explanation.)
Sub-categories
Sub-categories are a primary breakdown of each category. In many cases, they are the same as standard objects.
Standard Objects
Standard objects are the highest levels of object classification used for Parliamentary and executive purposes, and are reported in the Estimates and the Public Accounts.
Reporting Object
Reporting objects are a sub-division of standard objects which are used for central management purposes.
Sub-reporting Objects
Sub-reporting objects are a secondary breakdown for reporting objects under certain standard objects; they are used for structural purposes only.
Economic, Source and Class Objects
Economic, source and class objects are the lowest levels of object classification used for government-wide reporting purposes. Each of these objects is used for separate types of transaction:
Economic Objects
Economic objects apply to budgetary expenditures only. To measure the impact of government transactions on the economy, expenditures are classified according to the type of resources (goods and services) acquired or the transfer payments made.
Identification of detailed economic objects, combined with information from other sectors of the economy, makes possible economic analysis, on a national basis, of the effects of government spending. This classification is linked to Statistics Canada's Standard Commodity Classification which is used by other levels of government and other sectors of the economy. The economic objects required for government-wide statistical purposes may be used by departments as departmental line objects. As most departments or agencies require more detail, transactions may be classified by departmental line object in the departmental system provided that they can be related to the relevant economic objects.
7.1.3.1 Chart of Object Classification Levels
Note: See 7.2.0 for explanation on the structure of the Master Lists of Objects
Source Objects
Source objects identify the origin of a receipt and apply to budgetary revenue excluding tax revenue. However, tax revenue source objects now exist to cover the Goods and Services Tax (GST) revenue and for internal transactions. Other than tax revenue, the principal categories of revenue are:
- non-tax revenue, other than revenue credited to votes; and
Class Objects
Class objects identify the causes of increases or decreases to financial claims or obligations. The class objects relate to four types of non-budgetary transactions.
- financial claims (assets);
Departmental Line Objects
Departmental line objects (which are also referred to as "resource codes" or "departmental objects") are used for detailed classification for departmental purposes. To permit the consolidation and comparison of information from all departments, line objects must be aligned with the objects prescribed in Section 7.2. Once transactions are classified by line object, the Central Accounting System can impose an economic, source or class object as applicable and then automatically summarize at the reporting object and standard object levels. For all transactions, economic, source or class objects must relate to line objects on a one-to-one or a one-to-many basis, unless the estimated annual amount related to an economic object is less than $1,000. In that case the amount should be related to the "Other (specify)" economic object under the same reporting (or sub-reporting) object.
7.1.4 Relationship of Categories to Standard Objects
The categories and sub-categories, as well as the related standard objects included in the Master Lists are listed in Appendix A. A list of the 16 standard objects is included at the beginning of Section 7.2.
Objects of Expenditure
Objects of expenditure comprise 4 categories-Services, Goods, Transfer Payments and Other Expenditures. The allocation by category and sub-category of the standard objects is as follows:
Services are covered by six standard objects-one (standard object 01) for personnel services, and five (standard objects 02 to 06) for all other services. No sub-categories exist for Services.
Goods are covered by three standard objects-one (standard object 07) for non-capital expenditures and two (standard objects 08 and 09) for capital expenditures. No sub-categories exist for Goods.
Transfer Payments are all covered by standard object 10. In the revised system, Transfer Payments have been split into four sub-categories (20 to 23), each sub-category representing payments to a particular sector of the economy or to related sectors.
The other two standard objects are included under Other Expenditures, those being:
- Service of the Public Debt (standard object 11; sub-category 31),
Revenue Source Objects
The object coding system also requires that all revenues other than tax revenues be reported by standard, reporting, and source objects. These revenues are divided by standard object into those that are credited to votes (standard object 13) and non-tax revenues, which are credited to general revenues (standard object 14). Because revenues that fall under the same classification may be treated as a credit to a vote under one set of circumstances and as general non-tax revenue under another set of circumstances, the last three digits of the equivalent revenue source objects are to the extent possible the same for standard objects 13 and 14.
In the revised numbering system, the two standard objects are, however, included under separate categories because Revenues Credited to the Vote (sub-category 35) are netted against budgetary expenditures, and not included as revenue, while revenues in sub-categories 45 and 47 are included as non-tax revenue.
Internal transactions for revenues (standard object 16) are explained below.
Other than transactions related to the Goods and Services Tax or for internal transactions, transactions pertaining to tax revenues continue to be excluded from economic analysis until further notice.
Other Transactions (Class Objects)
The object coding system includes class objects for other-than-budgetary transactions, including certain amounts that are consolidated as budgetary transactions for reporting purposes. These objects provide information so the reasons for the increases or decreases to the balances of financial claims and obligations can be analysed. They are split into 4 categories-Financial Claims, Financial Obligations, Other transactions, and the Accumulated Deficit. At the standard object or sub-category level (which are synonymous for these transactions), four pertain to financial claims, five pertain to financial obligations, and one covers all other non-budgetary transactions.
Concerning the six sub-categories that cover the Accumulated Deficit, five include transactions that are consolidated to either the budgetary deficit or to assets or liabilities for reporting purposes, while the other pertains to unrestricted amounts in the Accumulated Deficit. The gross and consolidated standard objects for these sub-categories are shown on page 2 of Appendix A.
Internal Transactions
To identify internal transactions and eliminate the double counting of revenues and expenditures for government-wide reporting purposes, standard objects 15 and 16 identify expenditure and revenue transactions which are internal to the government. The elimination of these transactions results in more accurate government-wide information by standard and economic object. Standard object 15 includes sub-categories 33 and 34 under expenditures, while standard object 16 for revenues includes sub-categories 36 and 37 (which are netted to expenditures), as well as 46. Standard objects 15 and 16 apply for government-wide reporting on a "net basis" only. For gross reporting purposes, all their transactions can be related back to standard objects 01 to 14.
A table showing the relationship between sub-categories, and the gross and net standard objects is included in page 1 of Appendix A.
7.1.5 Object Numbering System
In the numbering system introduced for standard and economic objects in 1966, the first 2 digits of the economic object were the standard object. By 1986, more than 100 economic objects were required in some standard objects, and therefore a new numbering system was required.
The revised numbering system no longer contains the standard object as the first two digits of the economic/source object code. Instead, the first digit is the category, the first two digits are the sub-category and, to the extent possible, the first 3 digits are the reporting object. A summary of the new numbering system is included in Appendix A.
Since 1986 economic and source objects within standard objects 10 to 14 have been re-numbered as the first part of the introduction of the revised numbering system. The economic objects within standard objects 01 to 09 will be re-numbered at some future date. The relationship of economic/source objects to standard objects continues, however, as prescribed in the Master Lists.
7.1.6 Maintenance of Object Coding System
Master Lists of Objects
The objects which are to be recorded by the Receiver General for expenditures, non-tax revenue, and financial claims and obligations are listed in the Master Lists of Objects in Section 7.2 of this chapter. By November of each year, the Office of the Comptroller General advises departments of any changes to the Master Lists of Objects. Departments must then forward the following information to the Receiver General for each pertinent economic, source or class object using the form needed for changes to the Central Accounting System:
- the code number of each line object;
It may be impractical for some departments to break down transactions to the full extent called for by the objects in the Master Lists. The use of data broken down into those objects is broad enough to permit relaxation of the principle of a one-to-one or many-to-one relationship between line objects and the economic, source or class objects, when the amounts are insignificant for either one transaction or the total. In such cases, for each line object, departments must provide an estimated percentage breakdown by the object in the Master List. The Receiver General will then be able to take the totals accumulated by line object and apportion them by objects in the Master Lists.
Several objects have the word "specify" in brackets as part of their description. For these objects, departments shall specify the nature of the transactions in the line objects aligned to those objects, avoiding where possible the word "miscellaneous" or "other". Unless otherwise indicated in the individual reporting or economic object, the nature of the transaction shall be specified in line objects, when the total estimated annual expenditures of any line objects to be charged to such an object are likely to exceed the following limits:
Standard Object Limit
01 | 250,000 |
02 | 250,000 |
03 | 250,000 |
04 | 250,000 |
05 | 250,000 |
06 | 250,000 |
07 | 250,000 |
08 | 500,000 |
09 | 500,000 |
10 | 1,000,000 |
12 | 250,000 |
13 | 250,000 |
14 | 250,000 |
The Government Operational Services sector of Supply and Services Canada, the operator of the central repository, can then provide central agencies and other users with a list of the departmental line objects and the amounts included under those objects. This avoids creating additional objects that may apply to only one or two departments, or requesting departments to allocate relatively insignificant amounts to several objects within the reporting of sub-reporting objects.
List of Pay Entitlement Codes
In 1986, the List of Pay Entitlement Codes was issued to departments to improve consistency and accuracy in the alignment of pay entitlement codes to economic objects mainly in standard object 01. A pay entitlement code classifies the type of remuneration paid to employees pursuant to a collective bargaining agreement, the terms and conditions of employment, or other arrangements. These codes are issued to departments and agencies by Supply and Services Canada. The pay entitlement codes are listed with the Master Lists of Objects to facilitate the update of the computer dictionaries. As new pay entitlement codes are issued during the year, departments will align them with the appropriate economic objects until the next Master Lists are issued.
The List of Pay Entitlement Codes is now revised annually by November of each year at the same time as the Master Lists of Objects. It is included as Appendix A to Section 7.2 of this chapter.
List of Descriptions
Interpretation and analysis of financial information require the classification and coding of transactions to be correctly and consistently applied.
To help departments and agencies improve accuracy and consistency in the coding of their financial transactions, a List of Descriptions for Objects was first issued in 1984. The list has been amended annually to include all objects whose descriptions have been revised in the Master Lists of Objects.
The list includes descriptions for all economic objects in standard objects 01 to 06, and 10 to 12. For standard objects 07 to 09, some descriptions are included. The remaining descriptions will be issued as the re-numbering of economic objects is completed over the next few years. Descriptions for all source objects and class objects are also included in the List of Descriptions.
To maximize the use of the List of Descriptions, departments should review it carefully to ensure that the alignment of their line objects to economic, source and class objects is correct. Where applicable, a copy of the relevant descriptions should also be made available to departmental personnel involved in coding to help ensure consistent coding and reporting, both within the department and within the government as a whole.
The List of Descriptions is included in Section 7.3 of this chapter.
7.1.7 Identification of Internal Transactions
To determine and report more accurately the impact of government revenues and expenditures on the rest of the economy, the net amount of government purchases and sales by standard object must be determined. In 1987, standard objects 15 and 16 were introduced to identify these expenditure and revenue transactions, so they could be eliminated to provide more accurate government-wide information by standard and reporting object. To identify these transactions properly:
- All departments, including those that use revolving funds, must charge their expenditures for purchases from outside the government to standard objects 01 to 12. Similarly, sales to entities outside the government will be credited to standard objects 13 or 14.
On a government-wide basis, the expenditures charged in standard object 15 should agree with the revenues credited in standard object 16. By identifying the transactions in standard objects 15 and 16, the net amount of government budgetary revenues and expenditures can be determined by eliminating the amounts in these standard objects. The reports containing government-wide summary information include the interim and audited financial statements.
7.1.8 Roles and Responsibilities
Office of the Comptroller General
The Office of the Comptroller General (OCG) is responsible for providing policy advice and interpretation, implementation assistance including appropriate training/information sessions for departments, and for promulgating any changes required to the Chart of Accounts for the Government of Canada.
Receiver General
The Receiver General is responsible for providing any supporting operational instructions, such as Receiver General Directives, functional direction and other guidance to departments and agencies. This includes a monitoring role for the overall quality of the object information.
Departmental Responsibilities
Departments have the primary responsibility for ensuring that appropriate departmental classification changes by object are made to reflect any changes to the Master Lists and for monitoring the quality of departmental coding. This includes departmental implementation of all requirements specified by the Office of the Comptroller General and the Receiver General.
7.1.9 Additional Information on Certain Objects
During the past few years, several structural changes have been made to groupings of objects and to the systems and procedures involved in producing statements for central management and economic analysis purposes. Some of the more significant features are described in Appendix B to this Section.
Appendix A Relationship of Categories to Standard Objects
Category | Sub-Category | Standard Object(s) |
| Net | Gross |
0 | Services (Not yet implemented) | | |
xx | Personnel Services | 01 | 01 |
xx | All Other Services | 02-06 | 02-06 |
|
1 | Goods (Not yet implemented) | | |
xx | Non-capital | 07 | 07 |
xx | Capital | 08-09 | 08-09 |
|
2 | Transfer Payments | | |
20 | Payments to Persons and Non-profit Institutions | 10 | 10 |
21 | Payments to Industry | 10 | 10 |
22 | Payments to Provinces, Territories & Municipalities | 10 | 10 |
23 | Payments to International Organizations & Foreign Countries | 10 | 12 |
25 | Transfers to Crown Corporations | 12 | 12 |
|
3 | Other Expenditures | | |
31 | Public Debt Charges | 11 | 11 |
32 | Other Subsidies and Payments | 12 | 12 |
33 | Goods and Services from Internal Sources | 15 | 01-09 |
34 | Other Expenditures from Internal Sources | 15 | 10-12 |
35 | Revenue Credited to the Vote-from External Sources | 13 | 13 |
36 | Revenue Credited to the Vote-from Internal Sources | 16 | 13 |
37 | Reallocation of Expenditures-from Internal Sources | 16 | 12 |
|
4 | Revenues | | |
42 | Tax Revenue-Goods and Services Tax | -- | 42 |
45 | Non-Tax Revenue-from External Sources | 14 | 14 |
46 | Non-Tax Revenue-from Internal Sources | 16 | 14 |
47 | Recovered Non-tax Revenue from External Sources | 14 | 14 |
|
5 | Financial Claims | | |
50 | Loans, Investments and Advances | -- | 50 |
51 | Foreign Exchange Accounts | -- | 51 |
52 | Cash Accounts | -- | 52 |
53 | Accounts Receivable | 53 | 85(pt) |
54 | Claims on Agent Crown Corporations | -- | 54 |
|
6 | Financial Obligations | | |
60 | Specified Purpose Accounts | -- | 60 |
61 | Unmatured Debt Transactions | -- | 61 |
62 | Transactions related to Other Liabilities | -- | 62 |
64 | Borrowing of Agent Crown Corporations | -- | 64 |
|
7 | Other | | |
70 | Other Accounts/Transactions | -- | 70 |
|
8 | Accumulated Deficit | | |
80 | Unrestricted Amounts | -- | 80 |
81 | Consolidated Specified Purpose Accounts Var. | Var. | 81 |
82 | Consolidated Deposit and Trust Accounts | 10,12,14 | 82 |
83 | Consolidated Appropriation-Dependent Crown Corporations | Var. | 83 |
84 | Governement Elimination of Inter-entity Transactions and Balances | Var. | 84 |
85 | Consolidation of Accounts Receivable and Related Non-tax Revenue | 13,14,53 | 85 |
Appendix B Additional Information on Certain Objects
This appendix includes additional information on some structural changes made to groupings of objects and/or to the systems and procedures involved in producing statements for central management and economic analysis purposes.
-
Allocation to Employee Benefit Plans
Departments shall assign the amounts of the government's contribution to employee benefit plans as an employer to one departmental line object. Through the use of the Central Accounting System's percentage distribution capability, the amounts in that line object will be automatically distributed to the five economic objects concerned in standard object 01. Each year, the Receiver General will automatically revise the allocation of those amounts to reflect the amounts prescribed by the Treasury Board Secretariat.
7.2 Codes
Appendix A - Release Notes
Click here for the Release Notes.
Appendix B - Endnotes
Click here for the Endnotes.
Appendix C - List of Pay Entitlement Codes
Click here for the List of Pay Entitlement Codes.
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