STATE OF CONNECTICUT
NANCY WYMAN COMPTROLLER	OFFICE OF THE STATE COMPTROLLER 55 ELM STREET HARTFORD, CONNECTICUT 06106-1775	MARK OJAKIAN DEPUTY COMPTROLLER

M E M O R A N D U M

When canceling an entire check, there are certain deductions that cannot be reversed (as part of the reversal process). These deductions are: CSE Credit Unions, Garnishments, and Savings Bonds. At the time the reversal is being executed in PeopleSoft, a process is in place to create a negative agency recovery deduction to compensate for the deductions that cannot be reversed. At this point the agency is short by the total of the current non-reversible deductions (the vendor associated with the deduction(s) is not required to return deduction money associated with the affected check). The current process then requires the agencies to manually retrieve a check from the employee to offset the negative agency recovery.

Effective immediately, when the off-cycle replacement check (a.k.a. petty cash check or on-line check) is issued, the check should include an agency recovery deduction for the total of the non-reversible deductions. This will prevent the agency from having to manually retrieve a check from the employee. If a replacement check is not necessary (as the employee should not have been paid for the current cycle), the agency should manually retrieve this money from the employee.

For example,

If an employee had a garnishment deduction ($100.00), a savings bond deduction ($100.00) and a CSE credit union deduction ($100.00) on the original check, a $300.00 agency recovery deduction should be included on the petty cash request form with a description of each of the non-reversible deductions. The following is an excerpt from the actual petty cash form capturing the process if an OSC employee had a garnishment, CSE Credit Union, and a Savings Bond deduction:

DEDUCTION INFORMATION_________________________________________________________________________

Deductions:

Deducting the money (using the agency recovery code) during the off-cycle replacement check process will offset the negative agency recovery that is generated at the time the reversal is processed (as shown in the above example).

The following is a detailed list of the deductions that cannot be reversed followed by a complete list of agency recovery deduction codes:

1) CSE Credit Union:

2) Garnishments:

3) Savings Bonds

List of all Agency Recoveries deductions and their respective descriptions:

Return to Index of 2004 Payroll Services Division Memoranda
Return to Index of Comptroller's Memoranda
Return to Comptroller's Home Page