COMPTROLLER'S SEAL STATE OF CONNECTICUT
STATE OF CONNECTICUT
OFFICE OF THE STATE COMPTROLLER
Kevin Lembo
State Comptroller
55 ELM STREET
HARTFORD, CONNECTICUT
06106-1775
Martha Carlson
Deputy Comptroller

MEMORANDUM NO. 2012-26

October 1, 2012

TO THE HEADS OF ALL STATE AGENCIES

Attention: Fiscal Administrative Officers, Business Managers, and Payroll and Personnel Officers
Subject: Dependents under State Sponsored Health Insurance Plan- Accounting Procedures

This is to provide accounting guidance relating to General Notice 2012-04, issued by the Office of Labor Relations on August 31, 2012. Specifically, this memorandum provides procedures for the deposit of funds collected from employees to reimburse the employer share of costs incurred for ineligible dependents covered on the employee's health insurance plan.

DEPOSIT PROCEDURE

Payment by check:

If the employee selects repayment by check, the amount should be deposited with the following mandatory coding: fund 11000 - General Fund, the department code from which the employee was paid, SID 18010, account 44440- Refund of Health Insurance Ineligible Dependent.

If the employee was paid from a continuing funding source such as a federal grant or university operating funds, the deposit should be to that continuing fund and specific SID using account code 50420- Medical Insurance. The department coding should still retain the code used to pay the employee. This will be recorded as a refund of the health insurance payment.

Payment by payroll deduction:

If the employee selects payment by payroll deduction, the amount will automatically be deposited to the General Fund as revenue.

If the employee was paid from a continuing funding source such as a federal grant or university operating fund, the agency will be required to upload a general ledger journal correction to the Comptroller's Office, Budget and Financial Analysis Division in order to receive the refund of expenditure credit. The credit is to account 50420. The journal should be designated Source Type PC. The credit to the Medical Insurance account should be posted as outlined above on the agency credit side of the journal. The General Fund side of the journal entry should credit cash account 10446- Payroll Adjustment to Cash and debit revenue account 44440- Refund of Health Insurance Ineligible Dependent. The General Fund side of the journal should continue to carry the department designation from which the employee was paid.

QUESTIONS:

All questions relating to this memorandum should be directed to the Budget and Financial Analysis Division of the Comptroller's Office at 860-702-3350.


KEVIN LEMBO
STATE COMPTROLLER

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