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:
| ERNCD | DESCRIPTION | OBJ |
| ABN | A/P Employee Non Taxable | B91 |
| ABT | A/P Employee Taxable | B92 |
| APA | A/P Pay to Deceased Employees subject to Retirement | A21 |
| APC | Accounts Payable S/J C11(no Retirement) | C11 |
| APD | A/P Pay to Deceased Employees | A21, all C |
| APF | A/P Shift | A07, all C |
| APH | A/P Holiday | A10, all C |
| API | A/P Intergovernmental Detail | A20 |
| APJ* | Accounts Payable S/J (no Retirement) | A11 |
| APK* | Accounts Payable SJP (Subject Retirement) | A11 |
| APL | A/P - Holiday No Retirement | A10 |
| APN | A/P Regular Pay No Retirement | A01, all C |
| APO | A/P Overtime And/Or Comp. Time | A08 |
| APP | A/P Private Detail Pay | A20 |
| APR | A/P Regular Pay Retirement | A01, all C |
| APS | A/P Sick Leave Buy Back | A12 |
| APV | A/P Vacation In Lieu | A13 |
| APX* | Accounts Payable SJP Retirement)(C11) | C11 |
| APY* | Accounts Payable S/J No Withholding | C11 |
| APZ* | Accounts Payable S/J (No Withholdings) | A11 |
| 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.
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:
If you have any questions regarding these instructions, please contact the MMARS Helpline at 617-973-2468.
cc:
General Counsels
Internal Distribution