Uniform Massachusetts Accounting System – July, 2014

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CHAPTER 1 – INTRODUCTION
Scope and Purpose
This Manual comprises the Uniform Massachusetts Accounting System (UMAS). The scope of the Manual is the operation of an accounting system for a local governmental entity in Massachusetts. Its purpose is to provide a reference for the City Auditor, Town Accountant or official with similar responsibilities in accounting for financial transactions and reporting results of municipal financial operations. The Manual is based on Generally Accepted Accounting Principles (GAAP), but is written to meet the particular needs of Massachusetts local accounting officials.

Massachusetts General Laws (G.L.) c. 44, § 38 requires the Director of Accounts in the Department of Revenue to prescribe uniform accounting systems f for local governmental entities. Accounting for municipally owned electric light plants is prescribed in G.L. c. 164 and is regulated by the Department of Public Utilities; accounting for retirement systems is prescribed in G.L. c. 32 and is regulated by the Public Employment Retirement Administration Commission.
This Manual deals solely with accounting policies. Municipal financial issues such as budgeting or audit procurement are not included. Other publications of the Division of Local Services (DLS) address such subjects.
UMAS Accounting and Reporting
Much of the information is presented in general journal form to acquaint Massachusetts local governmental accounting officials with the basic entries to be made. If the guidance in the Manual is followed, accounting officials will be able to prepare a UMAS Balance Sheet and a UMAS based Schedule A.
Massachusetts local governmental accounting officials are encouraged to account

for transactions in a uniform manner consistent with this Manual. Accounting officials are not required to change their fund structure to be consistent with Governmental Accounting Standards Board (GASB) pronouncements for UMAS Balance Sheet and Schedule A completion purposes. Effective Date
Accounting standards contained in this Manual are effective for fiscal years beginning on and after July 1, 2011. This Manual supercedes all earlier publications, including exposure drafts. CHAPTER 2 – UNIFORM ACCOUNTING CODES
In order to classify each financial transaction, an account classification and coding scheme must be developed. All cities, towns, regional school districts, educational collaboratives and special purpose districts using UMAS are required to use a standard system for classifying and coding accounting transactions.
Account Classification
Account classification is the arrangement of accounts by a definite scheme. It serves as the basis for budgeting, accounting, reporting and administrative control. UMAS classifies financial data in a three-level, hierarchical fashion as follows:
 First Level - Fund Account;
 Second Level - Type of Account and Reporting Category;
 Third Level - Subcategories.
For more on these levels, see Account Coding Structure below.
Uniform Chart of Accounts



Classification information must be recorded on the source document. This is done by developing an account coding scheme. The UMAS account coding scheme is called the Uniform Chart of Accounts.

The Uniform Chart of Accounts has been designed to improve the financial reporting, budgeting, accounting and management reporting of local governments in Massachusetts. The Chart provides a comprehensive, flexible and systematic arrangement of accounts for use in classifying and reporting financial transactions.

Account Coding Structure

The Fund account code has three digits; the first digit identifies the fund type and the remaining digits identify specific funds within the fund type. Below, there is a listing of fund codes and a short description of each fund and group of accounts. The Type of Fund and Reporting Category account code has four digits; the first digit identifies one of the five major types of accounts: "1" Assets, "2" Liabilities, "3" Fund Equity, "4" Revenues, "5" Expenditures. The remaining digits identify the nature of the item (in the case of Assets, Liabilities and Fund Equity), the source (in the case of Revenues), the function and organization (in the case of Expenditures). Chapters 3 through 7 of this Manual detail these account codes. The Subcategory account code may have three or four digits that identify additional detail where the local government desires such detail. For Assets, Liabilities, Fund Equity and Revenue accounts, these codes may be omitted. For Expenditure accounts, this code is used to identify the expenditure object. Expenditure objects are found in Chapter 7 of this Manual.




As we use to say in the Dive Locker, "now that is clear as mud"


Jeff Bennett