Comptroller Fiscal Year Memo Letter Head

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

From:   Martin J. Benison, Comptroller

Date:    July 03, 2013

Re:        Earnings Code Processing During Accounts Payable Pay Periods   

Comptroller Memo FY#2013-30


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 periods.  To accommodate multi-year payroll processing, certain earnings codes will only charge to FY 2013.  This memo provides Payroll Directors with detailed guidelines on how to charge FY 2013 during the Accounts Payable pay periods.  Note that in accordance with State Finance Law requirements, departments must account for expenditures in the fiscal year in which the obligation is incurred. Payroll Holds are needed for all Prior Fiscal Year charges during the Accounts Payable periods.  


Accounts Payable payroll begins on July 14th and includes the pay periods ending on 7/27, 8/10, and 8/24.  During Accounts Payable, all Prior Fiscal Year payments must have a related FY 2013 Payroll Hold (PH) encumbrance for funding. 

In accordance with State Finance Law requirements, departments may not use FY 2013 funds to pre-pay for FY 2014 obligations and conversely may not pay for obligations incurred in FY 2013 with FY 2014 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 FY 2013 in HR/CMS:

  • Use an Accounts Payable Earnings Code – The Accounts Payable Earnings Codes can be entered in Timesheet or in Additional Pay. See the list of Accounts Payable Earnings Codes below.
  • In Timesheet, enter a Prior Period Adjustment for a date before June 30, 2013 – Note that any implied exceptions will post to the same date.

Accounts Payable Earnings Codes
The following Accounts Payable Codes will only be available during the Accounts Payable pay periods. The Earnings Codes will always have a Pay Event Begin and End Date of 6/30/2013 and will charge to FY 2013 in LCM and MMARS.

Earnings CodeDescriptionMMARS Object Code
ABNA/P Employee Reimbursement - Not TaxableB91
ABTA/P Employee Reimbursement - TaxableB92
APAA/P Pay to Deceased Employees - Subject to RetirementA21
APCA/P Settlement / Judgment – Contractors - No RetirementC11
APDA/P Pay to Deceased EmployeesA21 or CC Object Code for Contractor
APFA/P ShiftA07 or CC Object Code for Contractor
APHA/P HolidayA10 or CC Object Code for Contractor
APIA/P Intergovernmental DetailA20
APJA/P Settlement / Judgment - No RetirementA11
APKA/P Settlement / Judgment – Subject to RetirementA11
APLA/P Holiday - No RetirementA10
APNA/P Regular Pay - No RetirementA01 or CC Object Code for Contractor
APOA/P Overtime and / or Comp TimeA08
APPA/P Private Detail PayA20
APRA/P Regular Pay  - Subject to RetirementA01 or CC Object Code for Contractor
APSA/P Sick Leave Buy BackA12
APVA/P Vacation in LieuA13
APXA/P Settlement / Judgment – Subject to Retirement - ContractorC11
APYA/P Settlement / Judgment – No Withholdings - ContractorC11
APZA/P Settlement / Judgment – No WithholdingsA11
CANA/P Contractor Reimbursement – Not TaxableC98

 

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 Timesheet. 

Departments that do not use Timesheet for employee reimbursements and need to charge to FY 2013 should use the following AP-Specific Reimbursement codes in Additional Pay:

  • ABN – Used for employee reimbursements that are not taxable. ABN maps to MMARS Object Code B91 and can be used in place of the following Reimbursement codes:
Earnings CodeDescriptionMMARS Object Code
B01Travel And Other Expense / Out of StateB01
B02Travel Expense / In StateB02
B03Overtime Meals ExpenseB03
B04Tuition / Non-GraduateB04
B05Conference and TrainingB05
B06Membership Dues and Licensing FeeB06
B08Clothing AllowancesB08
B10Exigent Job Related ExpensesB10
B1BTravel Lodging ExpenseB01
BAEAuto Expense ReimbursementB02
BAFTravel Airfare ExpensesB05
BAGMIL Basic HousingB07
BARMIL Basic SubsistenceB07
BB1Travel Airfare ExpensesB01
BB4Tuition / GraduateB04
BMICar Mileage ReimbursementB02
BMOTraining - MOSES ReimbursementB05
BMVMoving ReimbursementB02
BNATraining -  NAGE ReimbursementB05
BPKParking ReimbursementB02
BSETraining - SEIU  ReimbursementB05
BTLToll ReimbursementB02
BX6Membership Reimbursement -  Unit 6B05

 

  • ABT – Used for employee reimbursements that are taxable. ABT maps to MMARS Object Code B92 and can be used in place of the following Reimbursement codes:
Earnings CodeDescriptionMMARS Object Code
BH7Housing AllowanceB07
BHRHousing - Cash - RetirementB07
BPDPer Diem No RetirementB07
BT7Tangible Asset AllowancesB02

 

  • CAN – Used for contractor reimbursements that are not taxable. CAN maps to MMARS Object Code C98 and can be used in place of the C98 earnings codes.

LCM Setup for Prior Fiscal Year Distribution
LCM uses the distribution in effect for an employee on the Pay Event Begin date to distribute labor charges.

Prior Period Adjustments for an employee will have the same Pay Event Begin and End dates as the pay period posted in Timesheet or the specific date used in Timesheet if a Combo Code is used to specify labor distribution for that employee.

Example: REG reported on 6/21/2013 will charge to FY 2013. LCM will use the distribution in effect on 6/16/2013 in most cases. If a Combo Code is used for that posting or any other charges for that employee, LCM will use the distribution in effect on 6/21/2013. To override the default distribution (DEPTE) for the charge, the department can create an EPPA for the pay period beginning on 6/16/2013 and ending on 6/29/2013.

All Accounts Payable Codes will have a Pay Event Begin and End Date of 6/30/2013.

Example: ABN will charge to FY 2013. LCM will use the distribution in effect on 6/30/2013. To override the default distribution (DEPTE) for the charge, the department can create an EPPA for the pay period beginning on 6/30/2013 and ending on 7/13/2013.

Payroll Hold Transactions
Payroll Holds are needed for all Prior Fiscal Year charges during Accounts Payable.  Payroll Holds must be set up for each Appropriation and Object Code where expenses – including net $0 adjustments – will be incurred.

Each accounting line of a Payroll Hold must contain the following fields:

  • Fund
  • Sub Fund
  • Department
  • Unit – Required for Expense Budgets only
  • Appropriation
  • Object
  • Program – Required for Federal Grants only

There should only be one accounting line defined 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. 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 Payroll Hold can encumber funds.

When the Payroll Hold is liquidated, the Unit on the actual payroll charge will be used to post the charges in LCM and MMARS.

Similarly, Departments should leave the Program blank unless the Appropriation is a Federal Grant. Program is then required. Departments must choose one and only one Program to assign to a combination of Fund, Sub Fund, Department, Appropriation, and Object. When the Payroll Hold is liquidated, the Program on the on the actual payroll charge will be used to post the charges in LCM and MMARS.

Questions

If you have any questions about HR/CMS, please contact CommonHelp at 866-888-2808.  If you have any questions about LCM/MMARS, please contact the Comptroller’s Help Desk at 617-973-2468.

 

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