diff --git a/API/ROLAC.API.Tests/Services/ExpenseServiceTests.cs b/API/ROLAC.API.Tests/Services/ExpenseServiceTests.cs
index cac275a..ed7d225 100644
--- a/API/ROLAC.API.Tests/Services/ExpenseServiceTests.cs
+++ b/API/ROLAC.API.Tests/Services/ExpenseServiceTests.cs
@@ -248,6 +248,27 @@ public class ExpenseServiceTests
         Assert.Null(await db.Expenses.FirstOrDefaultAsync(e => e.Id == id));
     }
 
+    [Fact]
+    public async Task Create_PersistsFunctionalClass_AndGetReturnsIt()
+    {
+        var db = BuildDb("u1");
+        db.Ministries.Add(new ROLAC.API.Entities.Ministry { Id = 1, Name_en = "Admin" });
+        db.ExpenseCategoryGroups.Add(new ROLAC.API.Entities.ExpenseCategoryGroup { Id = 1, Name_en = "Other" });
+        db.ExpenseSubCategories.Add(new ROLAC.API.Entities.ExpenseSubCategory { Id = 1, GroupId = 1, Name_en = "Misc" });
+        await db.SaveChangesAsync();
+        var svc = SvcAs(db, new FakeStorage(), "u1");
+
+        var id = await svc.CreateAsync(new CreateExpenseRequest
+        {
+            Type = "VendorPayment", MinistryId = 1, CategoryGroupId = 1, SubCategoryId = 1,
+            Amount = 50m, Description = "x", ExpenseDate = new DateOnly(2026, 5, 1),
+            FunctionalClass = "ManagementGeneral",
+        }, isFinance: true);
+
+        var dto = await svc.GetByIdAsync(id);
+        Assert.Equal("ManagementGeneral", dto!.FunctionalClass);
+    }
+
     [Fact]
     public async Task Receipt_SaveThenOpen_RoundTrips()
     {
diff --git a/API/ROLAC.API/DTOs/Expense/ExpenseDtos.cs b/API/ROLAC.API/DTOs/Expense/ExpenseDtos.cs
index ec1f434..c4ef865 100644
--- a/API/ROLAC.API/DTOs/Expense/ExpenseDtos.cs
+++ b/API/ROLAC.API/DTOs/Expense/ExpenseDtos.cs
@@ -20,6 +20,7 @@ public class ExpenseListItemDto
     public string   ExpenseDate { get; set; } = "";   // yyyy-MM-dd
     public bool     HasReceipt  { get; set; }
     public string?  CheckNumber { get; set; }
+    public string?  FunctionalClass { get; set; }
 }
 
 public class ExpenseDto : ExpenseListItemDto
@@ -45,6 +46,7 @@ public class CreateExpenseRequest
     [MaxLength(50)] public string? CheckNumber { get; set; }
     [Required] public DateOnly ExpenseDate { get; set; }
     public string?  Notes { get; set; }
+    [MaxLength(20)] public string? FunctionalClass { get; set; }
 }
 public class UpdateExpenseRequest : CreateExpenseRequest { }
 
diff --git a/API/ROLAC.API/Data/AppDbContext.cs b/API/ROLAC.API/Data/AppDbContext.cs
index ffec6ab..738c3f0 100644
--- a/API/ROLAC.API/Data/AppDbContext.cs
+++ b/API/ROLAC.API/Data/AppDbContext.cs
@@ -246,6 +246,7 @@ public class AppDbContext : IdentityDbContext<AppUser, AppRole, string>
 
             entity.Property(e => e.Type).HasMaxLength(30).IsRequired();
             entity.Property(e => e.Status).HasMaxLength(30).HasDefaultValue("Draft");
+            entity.Property(e => e.FunctionalClass).HasMaxLength(20);
             entity.Property(e => e.Amount).HasColumnType("decimal(18,2)");
             entity.Property(e => e.Description).HasMaxLength(500).IsRequired();
             entity.Property(e => e.VendorName).HasMaxLength(200);
diff --git a/API/ROLAC.API/Entities/Expense.cs b/API/ROLAC.API/Entities/Expense.cs
index 6975628..1944aef 100644
--- a/API/ROLAC.API/Entities/Expense.cs
+++ b/API/ROLAC.API/Entities/Expense.cs
@@ -9,6 +9,7 @@ public class Expense : SoftDeleteEntity, IAuditable
     public int      SubCategoryId   { get; set; }
     public string   Type            { get; set; } = "StaffReimbursement"; // VendorPayment | StaffReimbursement
     public string   Status          { get; set; } = "Draft";             // see state machine
+    public string?  FunctionalClass { get; set; }   // null = inherit Ministry.DefaultFunctionalClass
     public decimal  Amount          { get; set; }
     public string   Description     { get; set; } = null!;
     public string?  VendorName      { get; set; }
diff --git a/API/ROLAC.API/Services/ExpenseService.cs b/API/ROLAC.API/Services/ExpenseService.cs
index e81eefa..2416453 100644
--- a/API/ROLAC.API/Services/ExpenseService.cs
+++ b/API/ROLAC.API/Services/ExpenseService.cs
@@ -97,6 +97,7 @@ public class ExpenseService : IExpenseService
             ExpenseDate = e.ExpenseDate.ToString("yyyy-MM-dd"),
             HasReceipt = e.ReceiptBlobPath != null,
             CheckNumber = e.CheckNumber,
+            FunctionalClass = e.FunctionalClass,
         }).ToList();
 
         return new PagedResult<ExpenseListItemDto> { Items = items, TotalCount = total, Page = page, PageSize = pageSize };
@@ -122,6 +123,7 @@ public class ExpenseService : IExpenseService
             ExpenseDate = e.ExpenseDate.ToString("yyyy-MM-dd"), HasReceipt = e.ReceiptBlobPath != null,
             CheckNumber = e.CheckNumber, Notes = e.Notes, ReviewNotes = e.ReviewNotes,
             SubmittedBy = e.SubmittedBy, SubmittedAt = e.SubmittedAt, ReviewedAt = e.ReviewedAt, PaidAt = e.PaidAt,
+            FunctionalClass = e.FunctionalClass,
         };
     }
 
@@ -132,6 +134,7 @@ public class ExpenseService : IExpenseService
             MinistryId = r.MinistryId, CategoryGroupId = r.CategoryGroupId, SubCategoryId = r.SubCategoryId,
             Type = r.Type, Amount = r.Amount, Description = r.Description, VendorName = r.VendorName,
             CheckNumber = r.CheckNumber, ExpenseDate = r.ExpenseDate, Notes = r.Notes,
+            FunctionalClass = r.FunctionalClass,
         };
 
         if (r.Type == "VendorPayment")
@@ -179,7 +182,7 @@ public class ExpenseService : IExpenseService
 
         e.MinistryId = r.MinistryId; e.CategoryGroupId = r.CategoryGroupId; e.SubCategoryId = r.SubCategoryId;
         e.Amount = r.Amount; e.Description = r.Description; e.CheckNumber = r.CheckNumber;
-        e.ExpenseDate = r.ExpenseDate; e.Notes = r.Notes;
+        e.ExpenseDate = r.ExpenseDate; e.Notes = r.Notes; e.FunctionalClass = r.FunctionalClass;
         if (e.Type == "VendorPayment") e.VendorName = r.VendorName;
         await _db.SaveChangesAsync();
     }