Comptroller Fiscal Year Memo Letter Head

To:       Chief Fiscal Officers, Payroll Directors, and MMARS Liaisons

From:   Martin J. Benison, Comptroller

Date:    June 26, 2012

Re:        Payroll Accounting for Fiscal Year End and Accounts Payable

Comptroller Memo FY#2012-28


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 Fiscal Year End and Accounts Payable pay period.  To accommodate multi-year payroll processing, certain earnings codes will only charge to FY2012.  This memo provides Payroll Directors detailed guidelines on how to charge FY2012 during the Accounts Payable Period.  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.


Fiscal Year End

The pay period ending June 30 is the last payroll for Fiscal Year 2012: all earnings in this pay period will charge FY12.  There is no Split Year payroll.

Accounts Payable
Accounts Payable Payroll begins on July 1st and includes the pay periods ending 7/14, 7/28 and 8/11.  During Accounts Payable, all Prior FY payments must have a related FY2012 Payroll Hold (PH) encumbrance for funding.  Departments may not pre-pay for FY2013 obligations using FY2012 codes and conversely may not pay for obligations incurred in FY2012 with FY2013 funds without legislative authorization or prior year deficiency authorization.  Uses of payroll codes are subject to audit; therefore, Payroll Directors should ensure that appropriate codes are selected with special attention to the fiscal year of the obligation.

HR/CMS Posting for Accounts Payable
There are only 2 ways to charge FY2012 in HR/CMS:

  • Use an Earnings Code designated as ‘Accounts Payable’ (see list below), regardless if used in Time Sheets or Additional Pay
    OR
  • In Time Sheets, use Prior Period Adjustments, posting to a date prior to June 30 (any implied exceptions will post to the same date).

The following Accounts Payable Codes will only be available during Accounts Payable pay periods, will always have a Posting Date of 6/30/12 and will charge to FY2012: 

ERNCDDESCRIPTIONOBJ
ABNA/P Employee Non TaxableB91
ABTA/P Employee TaxableB92
APAA/P Pay to Deceased Employees subject to RetirementA21
APCAccounts Payable S/J C11(no Retirement)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 Retirement)A11
APK*Accounts Payable SJP (Subject Retirement)A11
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 Retirement)(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. 

Departments that do not use Time Sheets for Employee Reimbursements and need to charge to FY2012 should use the following AP specific reimbursement codes: ABN, ABT or CAN during Accounts Payable.

AP Earnings Code

Used for These Earnings Codes

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 Career ladder reimbursement

No

 

BMO

B05

Trning-MOSES Career ladder reimbursement

No

 

BNA

B05

Train NAGE Career ladder reimbursement

No

 

BSE

B05

Trning SEIU Career ladder reimbursement

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 Retirement)

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 6/30 in Time Sheets will charge to FY2012.

All Accounts Payable Codes will have a Posting Date of 6/30/12. Any LCM distributions must have a corresponding timeline effective as of 6/30/12 and charge to FY12.

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 6/25/12 will charge to FY2012.   Any LCM distribution must have a time line effective as of 6/17/2012.

Payroll Hold Transactions
Payroll Holds are needed for all Prior Fiscal Year Charges during Accounts Payable.  PHs must be set up 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 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 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 or 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.

See Payroll Hold Job Aids on the Comptroller’s 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.

cc:
General Counsels
Internal Distribution