Comptroller Fiscal Year Memo Letter Head


M E M O R A N D U M

To:Chief Fiscal Officers, Payroll Directors, and MMARS Liaisons
From:Martin J. Benison, Comptroller
Date:July 7, 2009
Re:Earnings Codes Processing During Accounts Payable Pay PeriodComptroller Memo
FY#2009-37

 

Executive Summary

The purpose of this memo is to inform departments of the methodology for distributing and recording HR/CMS payroll charges in LCM and MMARS during the Accounts Payable pay period. To accommodate multi-year payroll processing, certain earnings codes will charge only to FY2009. This memo provides payroll directors detailed guidelines on how to charge FY2009 and FY2010. Please note that the instructions in this memo are issued consistent with state finance law requirements which require departments to account for expenditures in the fiscal year in which the obligation is incurred.




Accounts Payable
The Accounts Payable Period begins with the first pay period after Split-Year and includes pay periods ending 7/18, 8/1 and 8/15. During Accounts Payable, all Prior FY payments must have a related FY2009 Payroll Hold (PH) encumbrance for funding. Departments may not pre-pay for FY'10 obligations using FY'09 codes and conversely may not pay for obligations incurred in FY'09 with FY'10 funds without legislative authorization or prior year deficiency authorization. Use of payroll codes are subject to audit, therefore, Payroll Directors should ensure that the appropriate codes are selected with special care to the fiscal year of the obligation.

HR/CMS Posting for Accounts Payable
There are only 2 ways to charge FY2009 in HR/CMS:

  • Use an Earnings Code designated as 'Accounts Payable' (see list), regardless if used in Weekly Elapsed Time (WET) or Additional Pay

OR

  • In WET use Prior Period Adjustments, posting to a date prior to July 1 (any implied exceptions will post to the same dates)

Any specific FY logic set-up for Split Year processing will be removed. During Split Year the following codes had specific FY logic: Reimbursements codes, Retro codes, Settlement codes, Sick and Vacation Buy Out.

The following Accounts Payable Codes will be available only during accounts payable pay periods and will always have a posting date of 6/30/09 and charge to FY2009:

ERNCD

DESCRIPTION

OBJ

APN

A/P Regular Pay No Retirement

A01

APR

A/P Regular Pay Retirement

A01

APF

A/P Shift

A07

APO

A/P Overtime And/Or Cmp. Time

A08

APL

A/P - Holiday No Retirement

A10

APH

A/P Holiday

A10

APZ

AccountsPayable S/J (No Wthld)

A11

APJ

Accounts Payable S/J (no RET)

A11*

APK

Accounts Payable SJP Subj RET

A11*

APS

A/P Sick Leave Buy Back

A12

APV

A/P Vacation In Lieu

A13

API

A/P Intergovernmental Detail

A20

APP

A/P Private Detail Pay

A20

APD

A/P Pay to Deceased Employees

A21

ABN

A/P Employee Non Taxable

B91

ABT

A/P Employee Taxable

B92

APX

Accounts Payable SJP RET(C11)

C11*

APC

Accounts Payable S/J C11(noRET)

C11*

APY

Accounts Payable S/J NoWH C11

C11*

CAN

A/P Contractor Non-Taxable

C98

 

*Requires CTR Legal Approval

HR/CMS Reimbursement Code Processing
The normal "B" Reimbursement Codes will charge to the Current pay period when used in Additional Pay or to the Day Posted in WET. Departments that do not use WET for Employee Reimbursements and need to charge to Fiscal 2009 should use the following AP specific reimbursement codes: ABN, ABT or CAN during Accounts Payable.

Use the following Earnings/Object code crosswalk to encumber and liquidate the encumbrance PHs accordingly:

AP Earnings Code

Used for these Earnings Code

Object Code

Expenditure Description

Tax

ABN

 

B91

Accounts Payable Employee reimbursements non-taxable

No

 

B01

B01

OUT OF STATE TRAVEL - OTHER

No

 

B1B

B01

OUT OF STATE TRAVEL - HOTEL/LODGING

No

 

BB1

B01

OUT OF STATE TRAVEL - AIRFARE

No

 

B02

B02

IN-STATE TRAVEL

No

 

BPK

B02

Parking Reimbursement

No

 

BMV

B02

Moving Reimbursement

No

 

B03

B03

OVERTIME MEALS

No

 

B04

B04

JOB RELATED TUITION

No

 

BB4

B04

JOB RELATED TUITION, GRADUATE EDUCATION

No

 

B05

B05

CONFERENCE, TRAINING AND REGISTRATION

No

 

B06

B05

MEMBERSHIP DUES AND LICENSING FEES

No

 

BAF

B05

Training-AFSME Car Lad Reimbur

No

 

BMO

B05

Trning-MOSESCarLadder Reimburs

No

 

BNA

B05

Train NAGE CarLadder Reimburse

No

 

BSE

B05

Trning SEIU CarLadder Reimburs

No

 

BX6

B05

Membership Reimburse Unit 6

No

 

B08

B08

CLOTHING ALLOWANCES

No

 

B09

B09

EMPLOYEE RECOGNITION

No

 

B10

B10

EXIGENT JOB-RELATED EXPENSES

No

ABT

 

B92

Accounts Payable Employee reimbursements taxable

Yes

 

BH7

B07

HOUSING

Yes

 

BPD

B02

Per diem no ret

Yes

 

BHR

B07

Housing: Cash RET

Yes

 

BT7

B07

TANGIBLE ASSET AND ALLOWANCES

Yes

CAN

 

C98

Accounts Payable Contractor reimbursements

No

 

C98

C98

REIMBURSEMENT FOR TRAVEL AND OTHER EXPENSES FOR SPECIAL EMPLOYEES/CONTRACTED SERVICES

No

LCM Set-up for Prior Fiscal Year Distribution
Any departments that use LCM for distribution, it is important to understand the Posting Dates that HR/CMS passes to set up the corresponding distribution timeline. Posting Dates before 7/1/09 will charge to Fiscal Year 2009.

All Accounts Payable Codes will have a Posting Date of 6/30/2009. Any LCM distributions must have a corresponding timeline.

Prior Period Adjustment postings will carry the same Posting Date as the date posted in WET.

Examples:

  • REG and OVERTIME (and related implied exceptions) reported on 6/29/2009 will have a Posting Date of 6/29/09.
  • REG and OVERTIME (and related implied exceptions) reported on 7/3/2009 will have a Posting Date of 7/3/09.

Earnings (non-AP) used in Additional Pay will have a Posting Date range based on the Start and End of the current pay period. Entries in Additional pay will be greater than July 1 and will charge to FY10.

Earnings (non-AP) posted to the current period in WET will have a posting date based on the date entered in WET.

Examples:

  • Any B01 (Travel) payment entered as a Prior period Adjustment on 5/25/09: B01 will have a Posting Date of 5/25/09; any LCM distribution must have a timeline effective as of 5/25/09.
  • Any Accounts Payable Code entered in WET or Additional Pay: The AP Code will have a Posting Date of 6/30/09; any LCM distribution must have a timeline effective as of 6/30/09.

Payroll Hold Transactions
Payroll Holds are needed for all Prior Fiscal Year Charges during Accounts Payable. PHs need to be setup at the Object Code/Appropriation Level. Departments with Expense Budgets will need to specify a Unit at the Fund Accounting Level. Departments with Grant Budgets will need to setup the appropriate Program in Detailed Accounting.

Each accounting line of a PH transaction must contain the following required fields in each of the following Fund or Detail Accounting fields:

  • Fund
  • Sub Fund
  • Department
  • Unit (* for Expense Budgets Only)
  • Appropriation
  • Object
  • Program (*for Grants Only)

Use one and only one accounting line for each distinct combination of Fund, Department, Appropriation, and Object Code.

Departments that do not use Departmental Expense budgets should leave the Unit blank. Those Departments that use Expense Budgets must enter a value for Unit. Departments should choose the Unit that rolls up to the Division with the Expense Budget against which the PH will encumber funds.

Departments must choose one and only one Unit to assign to a combination of Fund / Sub Fund / Department / Appropriation / Object.

When the PH is liquidated, the Unit on the actual Payroll document will be used in posting.

Similarly, Departments that do not use Grant budgets should leave the Program blank. Those Departments that use Grant Budgets must enter a value for Program.

Departments must choose one and only one Program to assign to a combination of Fund / Sub Fund / Department / Appropriation / Object.

When the PH is liquidated, the Program on the actual Payroll document will be used in posting.

There are 3 Payroll Hold Job Aids in the Comptroller's Web Portal:

  1. Create a Payroll Hold
  2. Modify a Payroll Hold
  3. Correct Duplicate Lines

If you have any questions regarding these instructions, please contact the MMARS Helpline at 617-973-2468.

 

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