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 6, 2010
Re:Earnings Codes Processing During Accounts Payable Pay Period

Comptroller Memo
FY#2010-31

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 only charge to FY2010. This memo provides Payroll Directors detailed guidelines on how to charge FY2010 and FY2011. 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 7/17, 7/31 and 8/14. During Accounts Payable, all Prior FY payments must have a related FY2010 Payroll Hold (PH) encumbrance for funding. Departments may not pre-pay for FY11 obligations using FY10 codes and conversely may not pay for obligations incurred in FY10 with FY11 funds without legislative authorization or prior year deficiency authorization. Uses 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 FY2010 in HR/CMS:

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

OR

  • In Time Sheets use Prior Period Adjustments, posting to a date prior to June 20 (any implied exceptions will post to the same date)

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

The following Accounts Payable Codes will only be available during Accounts Payable pay periods and will always have a Posting Date of 6/30/10 and charge to FY2010:

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 Comp. Time

A08

APL

A/P - Holiday No Retirement

A10

APH

A/P Holiday

A10

APZ

Accounts Payable S/J (No Withholdings)

A11

APJ

Accounts Payable S/J (no RET)

A11*

APK

Accounts Payable SJP Subject 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

APA

A/P Pay to Deceased Employees subject to Retirement

A21

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(no RET)

C11*

APY

Accounts Payable S/J No Withholding

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 pay period posted in Time Sheets.

New For This Year
If your intent is to post to FY10, use the AP codes provided in the grid or use a date in Timesheet prior to June 19, 2010. Postings in Timesheets between 6/20 and 6/30 will post to FY11.

Departments that do not use Time Sheets for Employee Reimbursements and need to charge to FY2010 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

BAE

B02

Auto Expense Reimbursement

No

BMI

B02

CAR MILEAGE REIMBURSEMENT

No

BMV

B02

Moving Reimbursement

No

BPK

B02

Parking Reimbursement

No

BTL

B02

Toll 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
For 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 6/20 in Time Sheets will charge to FY2010.

All Accounts Payable Codes will have a Posting Date of 6/30/10. Any LCM distributions must have a corresponding timeline effective as of 6/30/10 and charge to FY10.

Prior Period Adjustment postings will carry the same Posting Date as the pay period posted in Time Sheets.

Example:

· REG and OVERTIME (and related implied exceptions) reported on 6/15/10 will charge to FY10.

Any LCM distribution must have a time line effective as of 6/15/2010.

REG and OVERTIME (and related implied exceptions) reported on 6/29/10 will charge to FY11 because this pay period ended in FY11. Any LCM distribution must have a timeline effective as of 6/30/10.

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.

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 accounting line for each distinct combination of Fund, Sub Fund, Department, Appropriation and Object.

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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