1.0 GENERAL INFORMATION

1.1 Statutory References

Sections 3-25, 3-112, 3-117, 4-69, 4-86, 4-89 & 4a-71 to 74.

1.2 Processing of Claims

The processing of vendor claims, (CO-17 and all variations) is the responsibility of the agency's accounts payable section. All questions should be addressed directly to that division.

1.3 Post Audit of Vendor Payments

  1. Since October 1, 1993 expenditure documents have been post audited using the same criteria previously used for pre-audit. Each claim sampled is audited for legality, propriety, validity and completeness. The post audit of expenditure documents reduces the central processing time of documents since they are audited after the claim is paid.
  2. Agency Responsibility
Agencies are responsible to ensure that uniform accounts payable procedures exist, supported by proper internal controls. Accounting and preparatory requirements mandated by the State Accounting Manual must be met.
 
An agency employee must certify the accuracy and completeness of expenditure documents; determine that the payment has a receipt document and purchase order/contract; and ensure that the payment is made from an original vendor invoice, not a statement. The Comptroller's Office is placing the responsibility for oversight of accounts payable on the agency heads and their designated representative.
 
Checks for payment of accounts payable claims will be issued based on certification by the agency. The accuracy, completeness and appropriateness of the claim is not audited by the State Comptroller's Accounts Payable Division before the claim is paid. In most instances, only after the check has been issued will an audit be made.
ACCOUNTING MANUAL 6-1 DECEMBER 1998
  1. Management Reporting of Post Audit Findings
  2. Reports will be sent on a monthly basis to each state agency advising of any conditions found during the post audit. The Comptroller's Accounts Payable Division follows up on all conditions found. Non-compliance by a state agency may cause this office to revert the agency's processing of all expenditure documents to a pre-audit procedure, possibly slowing the issuance of checks to your vendors. A compliance audit at the agency's site is conducted for serious or repeat offenses.
  3. Pre-audit Procedures All commitments continue to be pre-audited except for commitment adjustment /deletion documents entered by paperless processing and CASII users. This examination ensures that the additional edits built into the accounting system do not delay payments due to improper summarization of contractual information.
In addition, certain types of payments are selected for pre-audit. Those payments selected for pre-audit require immediate action for correction by the agency should a problem arise to avoid delaying payment.

1.4 Properly Encumbered Obligations

Expenditures may be made only to liquidate properly encumbered obligations. Your attention is directed to section 1.2 on appropriations in the commitments section.

1.5 Expenditure Coding

All expenditure documents must be coded in accordance with the account coding section 3 of SAM. The current coding chain consists of the following elements:

Full Liquidation Indicate whether specific commitment line item is being paid in full by the letter "F"; otherwise, leave blank. Indication of full liquidation will designate that the specific line on the commitment, referenced in block #23, should be closed.
Line Number Reference original commitment document's line number. Up to 99 lines may be listed for each document. For additional lines, use Expenditure Detail Coding Continuation, Form CO-957 and write "see attached" on last detail line of this document.
Expended Amount The portion of the committed amount being paid.
ACCOUNTING MANUAL 6-2 DECEMBER 1998
Agency Number of agency charged for appropriation (refer to agency codes table 3.2 for valid numbers).
Special Identification
(SID)
Refers to a specific appropriation account within a fund (refer to   funds table 3.1 for valid codes).
Object Classification of expenditure disclosing the essential nature of the expenditure or actual items being purchased. (Refer to expense objects table 3.4 for valid object numbers). The fifth position of object must be zero unless specifically approved by the Comptroller.
Agency Tail (A) Function - four position function code used by agencies to further classify the committed amount.
(B) Activity - nine position activity code used by agencies to further classify the committed amount.
Extension Field available to agencies for additional classification of commitment. This field will not be data entered centrally.
Fiscal Year Current fiscal year. The higher side of the fiscal year must be used; for example fiscal 97-98 should be coded 1998.

1.6 Document Date

Document date, block #6 on Invoice/Voucher for Goods or Services, Form CO-17 is the date the agency receives an invoice from the vendor through any state location. It is not necessarily the invoice date or the date the agency prepares the invoice. (Only exceptions are on CO-17PRE and CO-17RPC)

Listed below are the proper document dates used on various "CO" forms:

Vendor Invoice/Voucher for Goods or Services, Form CO-17:

Commodities, Supplies, and Equipment

Enter the date the agency received the invoice from the vendor. An invoice received on January 5, 1998 would show a document date of 01-05-1998.

ACCOUNTING MANUAL 6-3 DECEMBER 1998

Utility Services
Electric, water, gas, telephone, etc. - Enter the date the invoice was received from the utility company.

Printing and Binding
Enter the date the invoice for the printed material was received by the agency.

Insurance
Enter the date the premium invoice was received by the agency.

Outside Professional/Nonprofessional Services
Enter the date the invoice for services was received by the agency.

State Aid and Other Grants
Enter the date of the invoice.

Employee Expense Voucher, Form CO-17XP (9916 funds only):

Enter the date the agency received the invoice from the employee.

Request for Prepayment of Services, Form CO-17PRE:

Enter the date the agency received the invoice from the vendor.

Request for Replenishment of Petty Cash, Form CO-17RPC:

Enter the date the agency prepares the invoice.

Pending Receipts, Form CO-610:

Enter the date the agency prepares the document.

ACCOUNTING MANUAL 6-4 DECEMBER 1998

1.7 Receipt Date

The receipt date, block 7 on Invoice/Voucher for Goods or Services, Form CO-17, refers to the date goods or services were received or, in certain instances the date payment is contractually due.

The correct completion of the receipt date is important for two reasons:

1) It is used to calculate payment due date.

2) These dates are used to determine payment due dates prepared annually in accordance with Generally Accepted Accounting Principles (GAAP) and to calculate vendor accounts payable for inclusion in year-end GAAP reporting. Proper completion of the receipt date will eliminate the need for agencies to calculate and report their vendor accounts payable to the Comptroller at the end of the year. In all cases, vendor invoices with receipt dates from different fiscal years must not be combined on a single CO-17. Failure to complete the receipt date properly may cause the Comptroller's Accounts Payable Division to issue claims audit exception reports and return invoices to the agency.

Listed below are examples of the proper receipt dates that should be used on various CO forms:

Vendor Invoice/Voucher for Goods or Services, Form CO-17:

Commodities, supplies, and equipment

Enter the date goods were received by the agency. Supplies received on January 15, 1998 would show a receipt date of 01-15-1998.

Printing and binding

Enter the date printed material was received.

Utility services

Electric, water, gas, telephone, etc.. enter the ending date of the billing cycle. The billing period 01-15-98 - 02-15-98 would show a receipt date of 02-15-1998.

Real property rent (land, buildings, office space, etc.)

Enter the payment due date on Lease and Rent Account Control, Form CO-507. Rental payments due on March 1, 1998 would show a receipt date of 03-01-1998

Repairs

Enter the date repairs were completed. For progress (partial) payments enter the latest date covered by the billing.

ACCOUNTING MANUAL 6-5 DECEMBER 1998

Insurance

Enter the payment due date of the premium invoice. An annual payment due on July 1, 1998, for the period of coverage from 07-01-98 through 06-30-99 would show a receipt date of 07-01-1998.

Outside professional and non professional services

Enter the ending date of the billing period. Consultant services for the month of June 1998 would show a receipt date of 06-30-1998.

Subscriptions

Enter the date of the invoice.

Equipment leases

Enter the ending date of the rental period for the invoice being processed. Equipment lease payments for the month of June 1998 would show a receipt date of 06-30-1998.

Prizes, awards, claims, loans

Enter the date the prize, award, claim, or loan is officially an obligation of the state. A claim against the State approved on June 23, 1998, would show a receipt date of 06-23-1998.

Revenue refunds

Enter the date the refund was officially determined to be a liability.

State aid and other grants

For grant payments which have a statutory or contractual due date, enter the due date as the receipt date.

Grant payments which are a reimbursement for grantee expenses should show the end of the billing period for the grant as the receipt date.

For other types of grants, use the invoice date as the receipt date.

Debt service
Enter the date payment is due fiscal agent.

Vendor Invoice Listing, Form CO-17L:

Receipt date should be shown on the covering CO-17 following the guidelines for CO-17's above.

ACCOUNTING MANUAL 6-6 DECEMBER 1998

Request for Prepayment of Services, Form CO-17PRE:

Enter the date of the invoice.

Request For Replenishment of Petty Cash, Form CO-17-RPC:

The date of receipt is the ending date of the period covered by all expenses included in the replenishment.

Pending Receipts, Form CO-610 (block No. 28):

Enter the date the check being refunded was received.

ACCOUNTING MANUAL 6-7 DECEMBER 1998

2.0 EXPENDITURE BATCH LISTS

2.1 Payrolls

Payroll procedures are contained in the Dun & Bradstreet Payroll Manual issued by the Comptroller's Payroll Services Division.

2.2 Transfer Lists (Claims Between State Agencies)

Claims between state agencies are to a great extent similar to other claims against the State. The actual forms used and the distinction between these expenditures (processed as transfers) and all others are explained in the transfers section of this manual.

2.3 Expenditure Batch Lists (All Other Claims Against the State) (Refer to Section 16.1 and Exhibit 6-1 for form completion)

Vendor payments are processed through the Comptroller's Accounts Payable Division as explained below:

Expenditure batch lists are a group of related forms which generate the accounting and liquidation of a claim against the state. Expenditure batch lists are to be numbered in consecutive order by the agency starting a new each fiscal year. It is recommended that agencies avoid re-using expenditure batch numbers until all available numbers have been depleted. This will prevent duplicate numbers on the Central Accounting System (CAS).

The batch number must be recorded on each CO form that constitutes the expenditure batch list. The entire batch list is submitted or electronically transmitted to the Office of the State Comptroller - Accounts Payable Division.

Paper processing agencies:

Submit expenditure batches with like commitment types:

RR General reservations
PO, PS - Purchase orders, contracts, personal service agreements
XP Tuition and training only
RL Lease payments
ACCOUNTING MANUAL 6-8 DECEMBER 1998

An expenditure batch list is composed of:

a) An Expenditure Batch Header, Form CO-19 followed by

b) An Invoice /Voucher for Goods or Services, Form CO-17 (and variations) for Goods or Services.

Paperless processing agencies:

The entire batch is transmitted electronically to the Comptroller's Accounts Payable Division. The Expenditure Batch Header, Form CO-19 and Invoice/Voucher for Goods or Services, Form(s) CO-17 are retained at the agency for subsequent post audit review.

2.4 Special Batch Lists (Refer to Section 16.11- 6.12 and Exhibit 6-11-6.12 for form completion)

Expenditure batch submission requires that all agencies submitting CO-17 invoices with remittance statements (CO-894), subscription cards (CO-780), foreign mailing, or with return check requirements must include them on separate batch lists. All four of these items may be together on a single batch list.

Batch lists that mix CO-894's, CO-780's, foreign mail, or return check requirements with payments that do not have these requirements risk having payments sent without the inserts, delaying the return of checks to the agency, or having the list returned to the agency for further processing.

Paper processing agencies:

Batch lists with the above requirements should be marked "99" at the top of the CO-19 so the form will be inserted with the check.

ACCOUNTING MANUAL 6-9 DECEMBER 1998

Paperless processing agencies:

Special code 14 is to be used only in situations where vendor checks cannot be mailed directly from the Comptroller's to the vendor. Pre-approved use of special code 14 include:

  1. Use remittance advice (CO-894) to notify vendor of invoice number, patient name, date of service, etc. where the billing identification is greater than 52 characters.
  2. Foreign mail requiring special postage.
  3. Subscription order and remittance advice.

Other agency specific requests require Comptroller approval.

It is not necessary to audit release with special code 14 for checks routinely returned to agencies issued on petty cash (PC), and prepayment (PP), invoices since those documents automatically default to special code 34.

Because proper internal accounting controls normally require the immediate mailing of checks, use of special code 14 will be closely monitored through the post audit process. Agencies are required to retain a copy of the CO-780 or CO- 894 for post audit review.

The following types of expenditures must be processed on separate payment lists:

A. Expenditures From Agency Funds (7000) - Other Than Pending Receipts

No commitment or reservation of funds is required. The major-minor coding will always be 0-10.

B. Pending Receipt Expenditures

No commitment or reservations of funds is required. The major-minor coding will always be 0-10. Within funds awaiting distribution (7013), pending receipt disbursements must also follow procedures outlined in receipts section.

ACCOUNTING MANUAL 6-10 DECEMBER 1998

C. Payments to Moving Companies

Payments made to a moving company by the agency must be processed by the Comptroller's Accounts Payable Division on a CO-17. These payments are excludable from the recipient employee's gross income.

D. Garnishments

Payments for a vendor against whom a garnishment exists will be processed by Comptroller's Accounts Payable Division. (Refer to Section 7 for types of garnishments)

E. Interest Expense for Late Payment to Vendors (Refer to Section 12 for detailed Processing Procedures)

Payment of interest to vendors for late payment must be submitted or electronically transmitted on separate batch lists.

F. Petty Cash Replenishment (Refer to Section 16.8 and Exhibit 6-8 for form completion)

Petty Cash Replenishment, Form CO-17RPC, must be submitted or electronically transmitted on separate batch lists.

G. Prepayment Voucher (Refer to Section 16.7 and Exhibit 6-7 for form completion)

Prepayment Voucher, Form CO-17PRE, must be submitted or electronically transmitted on separate batch lists.

H. State Leased Rental Property

The following procedures apply to all payments to the lessors (landlords) of the state, including not only basic rent, but also payments to the lessor for utilities, property taxes, parking, etc.

  1. Encumbrance of Funds
Funds for leased rental property are to be committed on form CO-110, Requisition for Reservation of Funds. (Refer to Section 10.8 and Exhibit 5-8 in the Commitment Section for detailed procedures)
ACCOUNTING MANUAL 6-11 DECEMBER 1998
  1. Payments

    Before payments will be processed for rental property, the following procedures must be followed by the submitting agency:

    a) The leasing agency must submit to the Comptroller's Accounts Payable Division a complete package of the following documents:

    - Lease and Rent Control - Transmittal Form CO-507-1, (Refer to Section 10.4 and Exhibit 5-4 in the Commitment Section for form description and completion)

    - Lease and Rent Account Control Form CO-507, (Refer to Section 10.5 and Exhibit 5-5 in the Commitment Section for form description and completion)

    All supporting legal documentation and authorization (including the original copy of the lease and documentation supporting any changes to the lease terms or conditions).

b) Process separate batch lists for leased rental property payments.

c) Claims for rental payments must be received or electronically transmitted to the Office of the State Comptroller, Accounts Payable Division, ten (10) working days prior to payment due date.

I. Subscriptions (Refer to Section 16.11 and Exhibit 6-11 for form completion)

Process all requests for books, magazines, newspapers, tapes, etc., on separate batch lists. Use form CO-780, remittance advice-subscriptions for new

subscriptions; Paper processing agencies must write on the batch header (CO-19) "99" on the top center of the form. Paperless processing agencies must audit release using special code "14."

Imprest petty cash funds should not be used for new subscriptions or renewals.

ACCOUNTING MANUAL 6-12 DECEMBER 1998

J. Tuition, Training and Travel - Agency 9916

Claims charged to the tuition, training and travel fund are under the administrative control of the Comptroller's Business Office. The expenditure batch must be prepared by the submitting agency with the exception of agency certification and batch number. The Comptroller's Business Office will assign a batch number and certify reimbursement prior to processing the batch for payment.

Note: Agencies must verify that the employee is on the CAS Vendor File before sending the batch list to the Comptroller's Business Office or the batch will go into error, and may result in rejection of the document.

K. Grant Payments

All payments for grants must be submitted on separate batch lists. (Refer to Section 6.0 for detailed information)

L. Wire Deposits and Electronic Fund Transfers (EFT) - Other Than Transfers to Tax-Exempt Proceeds Fund

Prior approval is required from the Office of the State Comptroller, Accounts Payable Division and the Office of the State Treasurer.

Payment by wire or EFT requires the same allotment and commitment as payment by check. After the allotment and commitment of an amount sufficient to cover a deposit or transfer, a batch list can be prepared and processed.

1.The batch list must be for an electronic fund transfer only.

2. Each document in the batch list must be stamped "EFT" in the upper right hand corner, in red ink.

3. Each document in the batch list must be stamped in red ink on the lower left side of the page with the following:

NO CHECK REQUIRED
TREASURER - ELECTRONIC TRANSFER

4. When preparing the Invoice/Voucher for Goods or Services, (CO-17) paper processing agencies must not include a vendor address in the payee section. However, paperless processing agencies must include a full address in the payee section.

ACCOUNTING MANUAL 6-13 DECEMBER 1998

5. Information as to where the funds are to be deposited or transferred, including deposit account numbers, must be entered on the Invoice/Voucher for Goods or Services, (CO-17) or its equivalent substitute. The account number must appear on the second line of the payee section. Address information should be entered starting on line 3.

6. It is not necessary to assign a special batch number to these types of payments. If an agency has a need to maintain a special series of numbers to identify these payments inform the Comptroller's Accounts Payable Division in writing of the series of numbers to be used prior to the processing of the initial batch list.

M. Wire Deposits - Tax Exempt Proceed Funds

Pursuant to Section 3-24a of the General Statutes, the Treasurer has created a Tax-Exempt Proceed Funds (TEPF) into which certain grant and loan payments are deposited. These payments include grants and certain loans which:

- Are financed by State tax-exempt bonds

and

- Are made to municipalities, other public agencies, or to IRS 501(c)(3) tax-exempt organizations.

The TEPF is not a fund for Comptroller accounting purposes. Payments are reflected in the same manner as if a check had been issued. The following procedures relate only to expenditure batches which will be wired to the TEPF and the processing of certain corrections and adjustments to those payments. Affected agencies should refer to the General Memorandum of November 30, 1989 issued by the State Treasurer, Comptroller, and Office of Policy and Management for detailed explanations and procedures. Questions may be directed as follows:

Payment Procedures - Comptroller's Accounts Payable Division, Special Processing Section (702-3403 or 702-3404 )

Processing Batch Lists

1. TEPF payments must be processed on separate expenditure batches.

2. The batch number must begin with the 80,000 series and be initialized each fiscal year.

ACCOUNTING MANUAL 6-14 DECEMBER 1998

3. Each document composing the batch list must be stamped "TEPF" in the upper right hand corner, in red ink.

4. Each document in the batch list must be stamped on the lower left side of the page with the following in red ink:

TAX-EXEMPT PROCEEDS FUND WIRE DEPOSIT
NO CHECK REQUIRED

5. Payee information on the CO-17 or CO-17L should appear as follows:

NAME - line 1: Town of ____________, if a town, or payee name
            - line 2: Acct. # xxxx-xx-xxxx (agency number, i.e. the project identifier code)

ADDRESS - MUST be left blank

6. At the same time the expenditure batch is submitted to the Comptroller's Accounts Payable Division, the Treasurer's copy of the TEPF Journal is submitted to the Treasurer's Office, attention: TEPF Coordinator.

7. Paperless processing agencies must audit release using special code "80" if regular EFT. If the town/vendor is to be offset, paperless agencies must audit release using special code "85."

Corrections and Adjustments

1. Improperly identified accounts -

Payment made for deposit into TEPF that are not properly identified or do not have an account established with the fund manager will require corrective action by the agency originating the claim. The TEPF manager will contact agencies concerning improperly identified payments.

Subsequently, a TEPF journal noting correction and the date of the correction should be forwarded to Treasury. An area has been provided for corrections on the TEPF journal.

In the event that a state payment is deposited into TEPF in error, and the agency is notified by Reich & Tang that an account does not exist for the project, the following procedure should be followed:

a) Reich and Tang will deposit unidentified payments into a state account awaiting advice of disposition from the agency.

ACCOUNTING MANUAL 6-15 DECEMBER 1998

b) The agency should request a refund of expenditure by wire deposit from the TEPF by:

(1) Completing a TEPF correction journal indicating that a deposit was made to TEPF in error. An explanation must be given for the reason the payment was made to the TEPF. Certification by the agency is required on all corrections made to TEPF deposits. The batch number on the TEPF correction journal should be the original batch number, a dash and a sequential number beginning with 1 for the first adjustment on a batch (example Batch 80,005-1).

(2) Completing a deposit slip, CO-39, as a refund of payments (doc type RE).

(3) Submitting both documents, the TEPF correction journal and the CO-39, to Treasury, TEPF Coordinator.

(4) Upon completion of the wire deposit, a receipted CO-39 will be returned to the agency as advice of refund of the TEPF deposit error.

3. Improperly deposited payments -

a) Money deposited to an incorrect project number - an adjustment can be made on the TEPF journal, within the correction area. Both the correct and incorrect information must be reported. The incorrect amount should be enclosed in parenthesis.

b) Money deposited incorrectly to TEPF - effect recovery from the recipient by check made payable to the state. Follow the procedures as prescribed in SAM for refund of expenditures.

c) Deposit amount incorrect:

Amount greater than - effect recovery from payee directly using the already established procedures for refund of expenditures

Amount less than - issue an additional payment for the difference (on an 80,000 batch)

Amount differs between projects - follow the rules established in the two points above.

ACCOUNTING MANUAL 6-16 DECEMBER 1998

Statutory Grant Payments

Grant payments with a statutory due date being forwarded through the Tax-Exempt Proceed Funds must be marked on the Expenditure Batch Header, Form CO-19 in red ink, "T.E.P.F. - GRANTS"

The statutory due date must appear in the description section on Invoice/Voucher for Goods or Services (CO-17) . All other steps must be completed as described in the outline.

Paperless processing agencies must audit release the expenditure with special code "80". If the vendor is to be offset, the expenditure must be audit released with special code "85."

N. EFT-ACH Payments

The Comptroller's Accounts Payable Division developed pilot program to pay vendors electronically. (Memorandums 98-7, 98-22) The following pilot vendors are included:

Town of Rocky Hill
Town of Vernon
Balfour Beatty Construction
Community Renewal Team
Continuum of Care, Inc.
East River Oil Company, Inc.
Wheeler Clinic

Paper processing agencies:

1) All payments made to pilot vendors must be made electronically.

2) A separate batch list is required.

3) The words "EFT-ACH" must be written in red letters on the Expenditure Batch Header (CO-19). The Invoice/Voucher for Goods or Services (CO-17) must contain the exact vendor FEIN/SSN that appears on the Comptroller's Vendor File. The words "EFT-ACH" must appear in red letters on the CO-17 form.

ACCOUNTING MANUAL 6-17 DECEMBER 1998

Paperless processing agencies:

1) All payments made to pilot vendors must be made electronically.

2) A separate batch list is required.

3) The batch must be audit released with special code "70". In the event the payment is to be offset, the agency will be notified to audit release with special code "75".Procedures similar to audit releasing with special code "15" are followed. Be sure to verify the FEIN/SSN and name on CAS vendor file. After the offset occurs, remaining funds, if any, will be electronically transferred to the vendor's bank account.

ACCOUNTING MANUAL 6-18 DECEMBER 1998

2.5 Definition of Special Codes Available for Use by State Agencies

12 - Wire Transfer - Funds are manually moved by the Office of the State Treasurer. This code can only be used by agencies with prior approval from the Treasurer's Office. It is mostly used for grant payments to towns. Even if the town participates in the EFT via ACH program, grant payments must be made using this special code if the town is on Grant Express. Also, payments made under the statutory requirements must be submitted with special code 12. The method of payment supersedes the type of payment. Another common use for this code is on documents used to fund agency checking accounts, such as social assistance programs.

14 - Paperless Processing Agencies Only - Return Check to Agency -This code is to be used only in situations where vendor checks cannot be mailed directly from the Comptroller's to the vendor. Use of this code should be limited as it is a fundamental accounting principal to mail vendor checks directly to the recipient. Pre-approved use of special code 14 includes:

1. Use a remittance advice (CO-894) to notify vendor of invoice number, patient name, date of service, etc. where billing identification is greater than 52 characters.

2. Foreign mail requiring special postage.

3. Subscription order an remittance advice.

Other agency specific requests require Comptroller approval. It is not necessary to audit release with special code 14 for checks routinely returned to agencies issued on petty cash (PC) and prepayment (PP) invoices since those documents automatically default to special code 34.

Because proper internal accounting controls normally require the immediate mailing of checks, use of special code 14 will be closely monitored through the post audit process. Agencies are required to retain a copy of the CO-780 or CO-894 for post audit review.

15 - Offset - This code does not require any special processing other than an offset exists against this vendor. (In the case of multiple payee docs, only one payee need have an offset). A check will be produced for the balance of the payment after the offset is satisfied.

17 - Wire Transfer - Offset - Originally submitted as a special code 12, this vendor also has an offset against future payments. The document is resubmitted with this special code. After the offset is satisfied, any remaining funds are electronically transferred by the Treasurer.

ACCOUNTING MANUAL 6-19 DECEMBER 1998

34 - Return Check to Agency - This special code is used only on a Pre-Payment (PP), Petty Cash Replenishment (PC), or an Employee Reimbursement (XP) document. These are the obvious reasons to return checks to the agency. Note: Employee reimbursements processed in CAS are only for tuition & travel and are processed by the Comptroller's Business Office under agency number 9916.

70 - EFT-ACH Payment - This special code can only be used on documents to pay vendors who have been added to the EFT-ACH process. The Comptroller's Office will notify agencies and interfacing agency systems in advance as to the vendors whose payments will require this special code. After a vendor is approved for this process, all future payments must be made with this special code, except for the following:

1) Grant payments to Towns on Grant Express will be processed with special code 12.

2) Payments to vendors on EFT-ACH who have outstanding offsets against them will be processed under special code 75.

3) Payments made from Tax Exempt Proceed Funds will be processed using special code 80 (and 85 for those with outstanding offsets). Payments made under the statutory due date requirement must still be processed with special code 70. Again, the payment method supersedes the type of payment being made.

75 - EFT Payments - Offsets - As previously described, payments to vendors on the EFT process who have outstanding offsets against them, must be processed with this special code. After the offset is satisfied, any remaining funds will be electronically transferred.

80 - Tax Exempt Proceed Funds (TEPF) - Payments made from these funds must be processed under special code 80. They must be submitted on an 80,000 series batch, the second payee name must contain the account number to which the funds will be transferred, and the agency must have prior approval from the Treasurer. The Treasurer then manually transfers the funds to the specified account.

85 - TEPF Payments - Offsets - The payment was previously submitted with a special code 80 and the agency was notified by CAS or the agency accounting system that the vendor specified has an outstanding offset. After the offset is satisfied, any remaining funds will be transferred by the Treasurer.

Offset Processing. Various governmental entities (with statutory authority), serve the Comptroller's Office with liens and/or levies to be collected from the State's vendor payments. The process is as follows:

1. A document is entered on-line or via an electronic interface, which indicates the amount to be collected for each individual or company (identified by FEIN/SSN).

2. As the expenditure documents are validated, if an offset exists against a vendor, the special code indicates whether or not the agency has been notified of this possibility.

If it has not, an error is generated and the message directs the agency to review the payee information submitted on the expenditure and verify it against the information on the CAS vendor file. If there are discrepancies, the Special Processing Section in the Comptroller's Accounts Payable Division should be contacted to resolve the issue. If the information agrees, the message indicates which special code to use. If the special code indicates the agency has been notified and the information is valid, then the document posts without further action taken with regards to the offset. Several documents could be submitted in a given day for a vendor with an outstanding offset. All documents must be processed with the proper offset special code.

3. The process then selects all posted documents with a payment due date of today or earlier. If the document has one of the offset codes, the collection process is followed.

4. The collection process finds the vendor's offset records that have not been satisfied. If the payment is more than is required to satisfy the offset, the payment amount is recalculated. If the payment amount is less than the offset balance, the offset balance is reduced by that payment and no payment is issued to the vendor.

5. If the payment to the vendor is changed during the previous process, the vendor, the agency paying the vendor, the collecting agency and the Accounts Payable Division are all notified of the offset.

6. Finally, based on the special code, the payment is issued. If code 15, a check is issued for any remaining amount. If code 17 or 85, any remaining funds are transferred by the Treasury.

If code 75, the remaining funds are electronically transferred to the vendor's account.

ACCOUNTING MANUAL 6-20 DECEMBER 1998

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