0201 Overview

This chapter establishes the Department of Veterans Affairs’ (VA) financial policies relating to the use of budget object class (BOC) codes. 31 U.S.C. § 1104(b) requires the President’s Budget to present obligations by object class.

Key points covered in this chapter:

• VA will adhere to the major object classes and maintain an object class structure consistent with the standard object classes defined in Section 83, Object Classification, of the Office of Management and Budget (OMB) Circular A-11, Preparation, Submission, and Execution of the Budget;
• VA will classify obligations by their initial purpose, not the end product or service; and
• VA will use BOC codes to provide additional detail for internal analysis and reporting.

0202 Revisions

Section	Revision	Office	Reason for Change	Effective Date
Various	Reorganized policy sections and performed a full review	OFP	Full review	April 2024
0203	Revised definitions	OFP	Consistency among financial policies	April 2024
020501	Added policy statements on use and review of BOC codes	OFP	To provide guidance on BOC codes	April 2024
Appendices	Added prior policy revisions as Appendix A and re-numbered Appendices	OFP	Full review	April 2024

For a complete listing of previous policy revisions, see Appendix A.

0203 Definitions

Accounting Classification Structure (ACS) – The categorization of accounting data along several dimensions allowing the retrieval, summarization, and reporting of information in a meaningful way.

Budget Object Class (BOC) Code – The lowest level of object class. BOC codes are required on all spending transactions to classify obligations and expenditures according to the nature of the services or items purchased.

BOC Extension – An agency-defined add-on to the object class that can be used for agency-specific reporting.

Cost Center – A mechanism used in VA’s legacy accounting system to accumulate costs incurred by area of responsibility or geographic region. Cost centers are represented by a four-to-six-digit code used to identify organizational elements throughout VA, (e.g., 301000, [Veterans Benefits Administration (VBA)] Executive Director). For more information see Volume XIII, Chapter 1 – Cost Centers.

Division Code – A mechanism used in VA’s accounting system to define the organization hierarchy within VA. The Division element represents the top level of the hierarchical structure.

Financial Management System (FMS) – VA’s legacy core accounting system. FMS is scheduled to be replaced by iFAMS, a modern Momentum-based Enterprise Resource Planning (ERP) solution configured for VA.

Object Class – Categorization of financial obligations and expenditures according to the nature of the services or items purchased as defined in OMB Circular No. A-11, Section 83.

Obligation – A legally binding agreement that will result in outlays, either immediately or in the future. An obligation is a legal liability of the Government against an available appropriation.

Organization Codes – A mechanism used in VA’s accounting system to define the organization hierarchy within VA. The organization element represents the lower levels of the hierarchical structure.

Integrated Financial and Acquisition Management System (iFAMS) – The system replacing VA’s legacy accounting system, FMS, as the official financial and acquisition system of record. VA began implementing iFAMS in waves beginning in 2020.

0204 Roles and Responsibilities

Under Secretaries, Assistant Secretaries, and Other Key Officials are responsible for ensuring compliance with the policies outlined in this chapter.

Administration and Staff Office Chief Financial Officers and Local Fiscal Staff are responsible for recording financial obligations and expenditures in accordance with appropriate BOC codes.

Financial Services Center (FSC) is responsible for providing support for the accounting and reporting of VA’s obligations and expenditures categorized by BOC codes.

0205 Policies

020501 General Policies

1. VA will use the object class structure described in Section 83 OMB Circular A-11 as the appropriate framework when creating, updating, and deactivating BOC codes.
2. VA will use BOC codes and sub classifications of the major object classes to provide additional detail for internal VA analysis and reporting.
3. VA will recognize that BOC codes are part of VA’s accounting classification structure. For additional guidance on how to use BOC codes along with other accounting data elements (i.e., division code, organizational codes, etc.), refer to Volume I, Chapter 01 – VA’s Accounting Classification Structure.
4. The Admin/Staff/Field level finance offices will:
   • Use BOC codes to categorize VA’s obligations and expenditures;
   • Ensure BOC codes are reviewed, during obligation approval as well as periodically to verify the correct BOC code was selected when establishing an obligation in VA’s accounting systems; and
   • Validate the accuracy of the establishment of new BOC codes, modifications, or deactivations in VA’s accounting systems on a quarterly basis.

020502  Object Class Structure

1. VA will use the following major object classes:
   • Object Class 10 – Personnel Compensation and Benefits
     • 10  Personnel Type
     • 11  Personnel Compensation
     • 12  Personnel Benefits
     • 13  Benefits for Former Personnel
   • Object Class 20 – Contractual Services and Supplies
     • 21  Travel and Transportation of Persons
     • 22  Transportation of Things
     • 23  Rent, Communications and Utilities
     • 24  Printing and Reproduction
     • 25  Other Contractual Services
     • 26  Supplies and Materials
   • Object Class 30 – Acquisition of Assets
     • 31  Equipment
     • 32  Land and Structures
     • 33  Investments and Loans
   • Object Class 40 – Grants and Fixed Charges
     • 41  Grants, Subsidies and Contributions
     • 42  Insurance Claims and Indemnities
     • 43  Interest and Dividends
     • 44  Refunds
   • Object Class 90 – Other
2. OMB Circular A-11 requires the use of object classes on Federal obligations for external reporting. When recording accounting transactions, object classes will be selected based upon the initial purpose of the obligation or expense, not the end product or service. For example, if VA pays an employee who constructs a building, the obligations will be classified for the employee’s wages under “Object Class 10 – Personnel Compensation and Benefits,” rather than “Object Class 30 – Acquisition of Assets.” If VA purchases a building, the contractual obligations will be classified under “Object Class 30 – Acquisition of Assets.”

020503  VA’s BOC Codes Structure and Listing

1. VA will ensure consistency in the creation and application of BOC codes. The creation of a BOC code is dependent on whether the organization has transitioned to iFAMS, or remains on the legacy system, FMS. Specifically:
   1. In FMS the first two characters of the BOC code represents the OMB Circular A-11 object class, and the last two characters define the financial transaction. For example, FMS BOC 1101, the object class 11 is personnel compensation and financial transaction 01 is Regular Pay, as defined by VA.
   2. In iFAMS the first three characters of the BOC code represent the OMB Circular A-11 object class and the last three characters represent the BOC extension. For example, iFAMS BOC 111101, OMB Circular A-11’s object class 11.1 is Full-Time Permanent and 101 defined by VA is Regular Pay.
2. Appendix D: Comparison of iFAMS and FMS BOC Code Structure, contains a comparison of the iFAMS BOC code and the FMS BOC code structure.
3. FMS BOC codes will be published on a quarterly basis in Appendix B: FMS Budget Object Class Code Listing.
4. iFAMS BOC codes will be found using PowerBI within iFAMS, or on the Financial Management Business Transformation Team (FMBT) SharePoint for non-iFAMS users. Refer to Appendix C: iFAMS PowerBI BOC Report for guidance on how to access the BOC report in PowerBI or on SharePoint.

020504 BOC Code Use/Restrictions

1. VA Administrations and Staff Offices utilizing FMS will use BOC codes in conjunction with cost centers to identify all costs associated with VA’s activities. VA may use any BOC code with any cost center unless specific restrictions are noted in the description of the cost center and/or BOC code. When restrictions are enacted for a specific combination, VA will ensure FMS is configured to disable its use.
2. VA Administrations and Staff Offices utilizing iFAMS will use BOC codes in conjunction with organization and program codes to categorize obligations and expenditures related to VA organizations and activities. Certain combinations of organization, program and BOC codes are not allowed, those restrictions will be enforced by relationships edits contained within iFAMS.

020505 Addition, Deletions, or Modification of BOC Codes

1. VA will process BOC code additions, deletions, or modifications as requested by the Administrations or Staff Offices.
2. Any changes will be committed to both the modern ERP solution and the legacy system concurrently.
3. Refer to Appendix E: FMS Budget Object Class Code Request Process and Appendix F: iFAMS Budget Object Class Code Request Process for guidance on submitting requests.

0206 Authorities and References

• 31 U.S.C. § 1104(b)
• OMB Circular No. A-11, Preparation, Submission, and Execution of the Budget
• Office of Financial Policy
  • Volume I, Chapter 01 – VA’s Accounting Classification Structure
  • Volume XIII, Chapter 1 – Cost Centers

0207  Rescissions

Volume XIII, Chapter 2 – Budget Object Codes, June 2023.

0208  Policy Approval

This policy was approved by the VA Chief Financial Officers’ Council on April 18, 2024.

Appendix A: Prior Policy Revisions

Section	Revision	Office	Reason for Change	Effective Date
Appendix B	Provided guidance on how to obtain iFAMS BOC Report for users that do not have access to iFAMS	OFP	iFAMS Update	June 2023
020503	Removed language that references quarterly updates for iFAMS and explained iFAMS BOC code will be accessed via PowerBI	OFP	iFAMS update	January 2023
Appendix B	Updated section to provide procedural guidance on how to access PowerBI report for BOC codes	OFP	iFAMS update	January 2023
Appendix E	Updated section to include information on how to submit iFAMS BOC code requests	OFP	iFAMS update	January 2023
0203	Updated definitions to include terms for iFAMS	OFP	FMBT and iFAMS updates	June 2020
020503	Updated processes to include iFAMS	OFP	FMBT and iFAMS updates	June 2020
Appendix B	Updated section to include information on iFAMS	OFP	FMBT and iFAMS updates	June 2020
Appendix C	Added crosswalk of FMS BOC codes to iFAMS BOC codes	OFP	FMBT and iFAMS updates	June 2020
Appendix D	Updated section to include information on the future changes for submitting FMS BOC requests	OFP	Process changes	June 2020
Appendix E	Added section to include information on the future changes for submitting iFAMS BOC requests	OFP	Process changes	June 2020
Appendix A	Updated appendix with 2020Q2 changes	OFP	Quarterly update	May 2020
020503	Updated process and appendices references	OFP	Process changes	February 2020
Appendix A	Updated appendix to rescind table listing and replace with Excel file   Updated appendix with FY2020Q1 changes	OFP	Request from the field     Quarterly BOC update	February 2020
Appendix B	Added appendix with up-to-date request process	OFP	Process changes	February 2020
Appendix A	Updated appendix with FY2019Q4 changes   Consolidated appendices and reformatted	OFP	Quarterly BOC update	November 2019
Various	Reformatted to new policy format and completed five-year review	OFP	Reorganized chapter layout	July 2019
Overall	Updated policy to match the latest version of OMB Circular A-11	OFP	Five-year review	July 2019
0205 Policies	Updated the section with VA’s current BOC structure in FMS	OFP	Update information	July 2019
Appendices	Added Vol XIII Ch 2A, Budget Object Code Appendices A-D	OFP	Reorganized chapter layout	July 2019

Appendix B: FMS Budget Object Class Code Listing

Questions concerning additions, deletions or modifications of BOC codes should be directed to VA Cost Center/Budget Object Code Requests (Outlook). Files are updated quarterly, or as needed to ensure consistent application VA-wide.

This appendix contains the current BOC code listing for Administrations and Staff Offices utilizing VA’s legacy system, FMS. The file is divided as follows:

Section 1: Object Class 10 Personnel Compensation and Benefits
Section 2: Object Class 20 Contractual Services and Supplies
Section 3: Object Class 30 Acquisition of Assets
Section 4: Object Class 40 Grants and Fixed Charges
Section 5: Deactivated Budget Object Codes

Vol XIII Ch 2 Appendix B Attachment 01

Appendix C: iFAMS PowerBI BOC Report

1. For iFAMS users, VA’s BOC codes are now available via iFAMS PowerBI Reporting.
2. To access the reference report in PowerBI, follow these steps:
   1. Access the iFAMS Gateway Application Site, IFAMS Gateway Site (va.gov), and click on PowerBI Reporting.
   2. Click on Apps to access the various Apps within PowerBI Reporting.
   3. Type in “FMBT Standard” in the search box.
   4. Select “FMBT Standard.”
   5. Search for “E-REF02 ACS Element Reference Report” within FMBT Standard App.
   6. Select “Budget Object Rollup Listing” report to see BOC codes and descriptions.
   7. End user has the option to export file into excel, PDF, or PPT.
3. Users without iFAMS access can obtain the BOC report (BOC Pivot View for Policy) on the FMBT SharePoint site under Accounting Classification Structure Library>ACS Enterprise>BOC (Budget Object Class).
4. Questions concerning accessing the PowerBI report can be directed to FSC Customer Self Service Portal or Customer Relationship Management (CRM) Tool, Self Service Portal (va.gov). Users can submit questions by submitting a CRM ticket through the iFAMS page.
5. Questions concerning BOC code descriptions will be sent to Office of Financial Policy (i.e., VA Cost Center/Budget Object Code Requests (Outlook), Financial Management Business Transformation Accounting Classification Structure, and FSC Transaction Review (i.e., FSC Transaction Review (Outlook)).

Appendix D: Comparison of iFAMS and FMS BOC Code Structure

The table below shows an example comparison of the budget object class code in iFAMS and FMS.

iFAMS BOC Code	FMS BOC Code
111101           REGULAR PAY – F/T	1101   Regular Pay
251301           INFORMATION TECHNOLOGY SUPPORT SERVICES	2510   Information Technology Support Services (Federal and Non-Federal Executive Branch Agency Supplier)
310702    UTILITY & OPERATING EQUIPMENT – NON-CAP	3151   Utility and Operating Equipment – Non-Capitalized

The table shows a detailed breakout of the BOC code’s purpose, definition, and format of each roll-up. Also, some modifiers have been added to the major object class to enable flex posting on major object class (e.g., 40G or 40L).

Element	Field Purpose	Format	iFAMS Field Name	Admin	Example Code	Name
BOC Category	Summary Object Class required by OMB A-11	#0 or ##alpha Up to 3 characters	BOC Level 1	VA	10	Personnel Compensation and Benefits
BOC Class	Summary Object Class required by OMB A-11	## 2 numeric characters	BOC Level 2	VA	11	Personnel Compensation
BOC Group	Summary Object Class required by OMB A-11	##.# 3 numeric characters	BOC Level 3	VA	11.5	Other Personnel Compensation
BOC Type	Summary Object Class to group BOCs for VA tracking and reporting	##.## 4 numeric characters	BOC Level 4	VA	11.51	Premium Pay
BOC Code	Lowest Level and required on all spending transactions	###### 6 numeric characters	BOC Code	VA	115101	Holiday Pay – F/T

Appendix E: FMS Budget Object Class Code Request Process

Budget Object Code (BOCT) Request Form System is a PDF Request form used by VA Administrations and Staff Offices to request action to the BOCT table. The requester will be responsible for correctly completing the request form, ensuring that all applicable fields are populated (including the requester’s digital signature), and forwarding the form in Outlook to the Office of Financial Policy (OFP) (047G) via VA Cost Center/Budget Object Code Requests (Outlook) for review and digital signature (Note: The requester and OFP Approver may be the same person).

The PDF request form allows for requests of seven separate budget object class codes. In the event more than seven changes are required, the requester will need to complete multiple forms.

OFP reviews, researches, and verifies the request. If additional information is needed, the OFP reviewer will contact the requester via e-mail and work with them to resolve any questionable issues. If approved, OFP will forward the request form in Outlook to the Financial Services Center (FSC) via FSC Transaction Review (Outlook) with a cc to VA Cost Center/Budget Object Code Requests (Outlook).

The FSC Transaction Review group reviews, researches, and verifies the form. FSC will forward the approved form in Outlook to VACO FMS Services via VACO 047E7 (Outlook) and cc VA Cost Center/Budget Object Code Requests (Outlook).

After FMS Services receives the approved form, the request will be processed in FMS. Based on the confirmation from the system, an FMS Services contact will inform all parties of the completion via e-mail.

Budget Object Code (BOCT) Request Form System: FMS (PDF)

BOCTRequest Form Version 4

All applicable fields of the request form must be completed. Below is a description of the required fields for the budget object class code request form.

1. Name of Person Making Request – Last Name, First Name, Initial
2. Requester E-Mail Address – Requester’s VA e-mail address
3. Requester Work Phone Number
4. Date of Request
5. Type of Request – Place an “X” in the appropriate box – New, Update, Delete
6. Reason for Entry or Change – Enter information to help explain why the transaction is needed
7. Clone – If BOC is a clone of an existing BOC, list that BOC number.
8. BFY – Enter budget fiscal year of the BOC being requested.
9. BOCT – Enter the BOC that is being requested
10. OBJ CLS – Object Class – Enter the object class that the BOC code will be tied to (Three-digit character).
11. FED OBJ CLS – Federal Object Class – Enter the federal object class that the BOC code will be tied to (Two-digit character).
12. BOC PS IND – BOC Paid System Indicator – Enter Y if this BOC is payroll-related or N if not.
13. SUB BOC IND – Enter Y if subject codes are required on accounting documents when this BOC is coded.
14. 1099 IND – Enter the 1099-indicator which designates what the BOC will be used to record. Valid codes are: R = Rent, O = Royalties, P = Other Income, F = Fishing Proceeds, M = Medical or Healthcare Svcs, C = Non-Employee Compensation, G = Golden Parachute Payment, S = Substitute Payment in Lieu of Dividends or Interest, I = Crop Insurance Proceeds, T = Interest or penalty payment, N = Not reported on 1099-MISC form.
15. TVL Flag – Enter Y or N if travel type is required on accounting documents when BOC is referenced.
16. BUDG Flag – Enter Y if object code is a limitation. Otherwise enter an N.
17. LMT – If budget flag is Y, enter a limitation – two-character field – usually the 1st two characters of the BOC.
18. BOC Post Flag – Enter Y if BOC is to be used based on the ACEV event – NOTE – This determines if the BOC needs to be posted on the ACED/ACEN table with transactions.
19. OBL= EXP BOC – Enter Y if the document must use the same BOC as the referenced BOC. If N, the BOC on the referencing document may be different from what’s on the referenced document, but both must have the same limitation.
20. REST LKUP Flag – Enter Y if the BOC is the driving accounting element in a unique BOC/Subaccount/Cost Center combination.
21. Deactivation Date – If the BOC is to be deactivated, enter the date it should be deactivated.
22. Long Name – Enter the name assigned to the BOC (30-character field).
23. Short Name – Enter an abbreviated version of the BOC name (this field allows 12 characters)
24. Apply To All BFY’s – Enter an X if the BOC should apply to all budget fiscal years.

Appendix F: iFAMS Budget Object Class Code Request Process

1. Administrations and Staff Offices are required to use FSC Customer Self-Service Portal or Customer Relationship Management (CRM) tool to submit a new BOC code, modify the existing BOC code, or to change the status of an existing BOC code.
2. Administrations and Staff Offices will submit CRM tickets as follows:
   1. Access FSC Customer Self Service Portal or CRM Tool, Self Service Portal (va.gov). Then select “Forms” and scroll down and select “ACS Governance Tools” under Accounting Forms.
   2. Type the name of the organization or organization code within the “Search by FMS Stations or iFAMS Organization Details” field.
   3. Select “BOC Code” for the ACS Element. Then select the appropriate “Request Type” (i.e., New, Modify, and End Date) and populate the “Effective Date” for the BOC code. The “Effective End Date” is only required for BOC codes that need to be put in an inactive status. Check the box to confirm that accounting templates associated with this request will be added.
   4. Type in the “Description” and if applicable provide the Public Law or Federal Regulation within the “Legal Segment” to support the request for the BOC code. In addition to providing the description for BOC code, also include the following information:
      • Provide BOC code number;
      • BOC code Level 1 (e.g., object class 10 Personnel compensation and benefits);
      • BOC code Level 2 (e.g., 11 Personnel Compensation);
      • BOC code Level 3 (e.g., 11.1 Full-time permanent);
      • BOC code Level 4 Title (e.g., Regular Salaries and Wages);
      • BOC code Level 4 (e.g., 11.11);
      • BOC code Long and Short Name;
      • For a new BOC code, indicate if a 1099 is required, identify the form (i.e., 1099-G, 1099-INT, 1099-MISC, and 1099-NEC and define tax box (e.g., Box 1-Rents, Box 2-Royalties, Box 3-Other Income, etc.);
      • If this is a new BOC code, the BOC code number will be provided by FSC or FMBT ACS;
      • If it is a new BOC code, indicate system integration (e.g., G-Invoicing, IPPS, Payroll, etc.); and
      • If it is a modification or to inactivate a BOC code, provide the existing description.
        If the request is for more than one BOC code, attach an Excel spreadsheet. Refer to Step 6 to obtain the template. The description can state “Refer to Excel spreadsheet for details”.
   5. Add appropriate VA Users to read only access to follow the case. Administrations and Staff Offices are always required to add VA Cost Center/Budget Object Code Requests (Outlook) to the case.
   6. When request is for more than one BOC code, attach an Excel spreadsheet to the CRM ticket. Refer to template as a guide to know what information is needed in the Excel spreadsheet. In addition, Administrations and Staff Offices are required to attach supporting documents to validate the BOC code request.
      iFAMS BOC code Template (Excel): 
      Vol XIII Ch 2 Appendix F
   7. Add the supervisor information by typing in their VA email address or User ID/Alias.
   8. Review and submit the CRM ticket.