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:June 29, 2011
Re:

Earnings Codes Processing During Accounts Payable Pay Period

Comptroller Memo
FY#2011-25

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 period. To accommodate multi-year payroll processing, certain earnings codes will only charge to FY2011. This memo provides Payroll Directors detailed guidelines on how to charge FY2011 and FY2012. Please note that the instructions in this memo are issued consistent with State Finance Law which requires that Departments 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 7/16, 7/30 and 8/13. During Accounts Payable, all Prior FY payments must have a related FY2011 Payroll Hold (PH) encumbrance for funding. Departments may not pre-pay for FY12 obligations using FY11 codes and conversely may not pay for obligations incurred in FY11 with FY12 funds without legislative authorization or prior year deficiency authorization. Use of payroll codes is subject to audit; therefore, Payroll Directors should ensure that the appropriate codes are selected carefully to reflect the fiscal year of the obligation.

HR/CMS Posting For Accounts Payable

There are only 2 ways to charge FY2011 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 19 (any implied exceptions will post to the same date).

During Split Year, the following codes had specific FY logic: Reimbursement codes, Retro codes, Settlement codes, Sick and Vacation Buy Out. This specific FY logic will be removed for Accounts Payable periods.

The following Accounts Payable Codes will only be available during Accounts Payable pay periods and will always have a Posting Date of 6/30/11and charge to FY2011:

 

ERNCD

DESCRIPTION

OBJ

ABNA/P Employee Non TaxableB91
ABTA/P Employee TaxableB92
APAA/P Pay to Deceased Employees subject to RetirementA21
APCAccounts Payable S/J C11(no RET)C11
APDA/P Pay to Deceased EmployeesA21, all C
APFA/P ShiftA07, all C
APHA/P HolidayA10, all C
APIA/P Intergovernmental DetailA20
APJ*Accounts Payable S/J (no RET)A11
APK*Accounts Payable SJP Subject RETA11
APLA/P - Holiday No RetirementA10
APNA/P Regular Pay No RetirementA01, all C
APOA/P Overtime And/Or Comp. TimeA08
APPA/P Private Detail PayA20
APRA/P Regular Pay RetirementA01, all C
APSA/P Sick Leave Buy BackA12
APVA/P Vacation In LieuA13
APX*Accounts Payable SJP RET(C11)C11
APY*Accounts Payable S/J No WithholdingC11
APZ*Accounts Payable S/J (No Withholdings)A11
CANA/P Contractor Non-TaxableC98

*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.

Codes that are subject to special accumulators (earnings based on other earnings)
If your intent is to post entirely to FY11, use the A/P codes provided in the grid or use a date in the Timesheet prior to June 19, 2011. Postings in Timesheets between 6/19 and 6/30 will result in earnings using special accumulators to post to FY12.

Departments that do not use Time Sheets for Employee Reimbursements and need to charge to FY2011 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:



 

A/P 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

 

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

B07

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 6/19 in Time Sheets will charge to FY2011.

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 6/15/11 will charge to FY11. Any LCM distribution must have a time line effective as of 6/15/2011.

  • REG and OVERTIME (and related implied exceptions) reported on 6/29/11 will charge to FY12 because the pay period ended in FY12 on 7/2/11. Any LCM distribution must have a timeline effective within that pay period.

All Accounts Payable Codes will have a Posting Date of 6/30/11 and will be charged to FY11. Any LCM distributions must have a corresponding timeline effective as of 6/30/11.

In order to process an EPPA for one of the Accounts Payable Event Codes (e.g. ABN), first define the EPPA for the last Pay Period of the Fiscal Year - for FY11, that would be the Pay Period that began on 6/19/2001 and ended on 7/2/2011. These Events have a date of 6/30 and use the Accounting (DEPTE, EPPA, etc.) in effect during that Pay Period.

In order to process an EPPA for an Accounts Payable charge processed as a Prior Period Adjustment in Weekly Elapsed Time in HR/CMS, define the EPPA for the Pay Period in which the Prior Period Adjustment was processed.

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 and Capital 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 within 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 and 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 and Capital 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 and 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 on the Comptroller Intranet:

  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 or via email at mailto:comptroller.info@state.ma.us.

 

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