Federal receipts for programs financed wholly with federal funds. Includes mental health programs and inspections of health providers and suppliers for adherence to Medicaid/Medicare standards. This code reflects receipts that may be used either for operating expenses or for capital expenditures at the discretion of the agency. See code 3837 for year-end adjustment to classify federal grants restricted to capital expenditures of the program.

This code will be recorded as non-operating in proprietary funds and as operating -- capital grants and contributions in the government-wide financial statement.