1.0 General Information
1.1 Statutory References
CGS 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 is the responsibility of each agency's
accounts payable section. Claims should be processed in a timely manner so that
no additional costs are incurred by the State. All questions should be addressed
directly to that section in your own agency.
1.3 Properly Encumbered Obligations
Expenditures should only be made to liquidate properly encumbered
obligations. Refer to the Encumbrances section of this manual for a full
explanation of encumbering funds.
1.4 Expenditure Coding
All expenditure documents must be coded in accordance with the account coding
listed in the Chartfield section of the State Accounting Manual. Refer to:
The current chartfields used for coding transactions in Core-CT consists of
the following elements:
A. Business Unit - The State of Connecticut's accounting system modules
define Business Units at different levels. General Ledger has one Business Unit:
State. Accounts Payable, Purchasing and Accounts Receivable modules have lower
level definitions. It is a required chartfield on all expenditure and revenue
B. Fund - The Fund chartfield is defined as a financial and accounting entity
with a self-balancing set of accounts. It records cash and other financial
resources, with related liabilities, fund balance, and any corresponding
changes, which are segregated for the purpose of carrying on specific activities
or attaining certain objectives in accordance with special regulations,
restrictions, or limitation. It is a required chartfield on all expenditure and
C. Department - Identifies the financial management organizational entity
associated with a particular financial transaction. Organization values
represent any divisional breakdown of an entity into operating units. They are
used to capture the financial management view of the state's agencies, boards,
and commissions. Combined with other chartfield values, they form the basis for
department budgets that track expenditures and revenues. It is a required
chartfield on all expenditure and revenue transactions.
D. SID - Special Identification Code is used to uniquely define appropriation
budgets by tying an accounting transaction back to the appropriations act via a
combination of other chartfields - Fund + Dept + SID. The SID also defines the
source and use of funding in non-appropriated funds. It is a required chartfield
on all expenditure and revenue transactions. View valid Fund/SID combinations:
E. Program - Captures related activities that cross organizations and are
directed towards the accomplishment of a set of recognizable objectives. The
State may set up program chartfield values to track revenue and expenditures
for, and apply budgetary control to, programs within each business unit. It is a
required chartfield on all expenditure and revenue transactions.
F. Account - Used to specify the balance sheet account or operating account
(i.e. expenditure or revenue codes) on financial transactions. Each account is
assigned an account type which indicates whether the value entered in the
Account chartfield is an asset, liability, fund equity, expenditure or revenue
type account. It is a required chartfield on all expenditure and revenue
G. Project - Captures and controls project and grant information. The
accounting system supports both Project and Grant chartfield values in the same
database table. The Project chartfield is designed to track project and grant
financial activity, which can cross budget years, funds and departments. It is a
required chartfield on all expenditure and revenue transactions.
H. Chartfield 1 - This field captures data relating to activities of a
particular project or grant. It is a required chartfield on all expenditure and
revenue transactions posted to Project 3 Budgets.
I. Chartfield 2 - Captures agency specific values that are not captured by
any of the other chartfields, such as function, activity, and extension fields.
It is not a required chartfield on expenditure and revenue transactions.
J. Budget Reference - Enables users to identify separate overlapping budgets
that share the same combination of non-budget reference chartfields. The fiscal
year is used as the Budget Reference. It is a required chartfield on all
expenditure and revenue transactions.
K. Source Type - Identifies Project transactional data associated with a
given cost at a more detailed level. This chartfield value is to be used by the
project costing agencies who have configured these values to address their
L. Category - Identifies Project transactional data associated to a given
cost at a more detailed level. It is used in conjunction with Source Type. This
chartfield value is to be used by the project costing agencies who have
configured these values to address their agencies' needs.
M. Sub-Category - Identifies Project transactional data associated to a given
cost at a more detailed level. It is used in conjunction with Source Type and
Category. This chartfield value is to be used by the project costing agencies
who have configured these values to address their agencies' needs.
1.5 Invoice Date
The invoice date on the voucher is the date the agency receives an invoice
from the vendor through any state location. It is not the vendor invoice date,
not the date an agency prepares the invoice and not the date an invoice is
approved internally. There are several exceptions. Refer to OSC Memorandum
2007-24 for more information.
1.6 Receipt Date
Receipt date on the voucher is the date that goods or services were received
or contractually due. For payments made in arrears for a period of time
(services, etc), enter the ending date of the period. For payments required
prior to services enter the date the payment is due. For a complete listing
refer to OSC Memorandum 2007-24.
Proper completion of dates is important because dates are used to determine
payment due date, interest accrual dates and to calculate vendor accounts
payable for inclusion in year-end GAAP reporting.
1.7 Post Audit of Vendor Payments
The Office of the State Comptroller Accounts Payable Division performs monthly post audit of randomly
selected expenditure documents. The documents requested must be forwarded within five
(5) business days from the date of the request. The Auditors of Public Accounts
will be notified of any failure to comply.
1.7.1 Audit Criteria
Expenditure documents are post audited using statistical random selection
process. Each claim sampled is audited for legality, propriety, validity and
1.7.2 Agency Responsibility
The Comptroller's Office has placed the responsibility for oversight of
accounts payable on the agency heads and their designated representative.
Agencies must ensure that uniform accounts payable procedures exist and are
supported by proper internal accounting 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.
Payment of accounts payable claims will be made based on certification by the
agency. The accuracy, completeness and appropriateness of the claim are not
audited by the State Comptroller's Accounts Payable Division until after the
claim is paid except in rare situations.
1.7.3 Reporting of Post Audit Findings
Reports will be sent on a monthly basis to each state agency advising of any
exceptions found during the post audit. The Comptroller's Accounts Payable
Division follows up on all exceptions found.
2.0 Special Types of Expenditures
2.1 Funds Awaiting Distribution "Pending Receipts"
The coding for Funds Awaiting Distribution "Pending Receipts" on a voucher in
Core-CT is Fund 34003, SID 42350 and Account 5xxxx. This coding string will take
the funds from the "Funds Awaiting Distribution" account and leave a zero
balance in Fund 34003.
2.2 Petty Cash Replenishment
Petty Cash Replenishment requires the completion of a CO 17-RPC as a source
document for the voucher preparation and as a reconciliation tool.
2.3 P-Card Purchasing Program
The P-Card program is a credit card program co-sponsored by the Department of
Administrative Services and the Office of the State Comptroller. The P-Card is a
MasterCard and it works just like a personal credit card with custom designed
features and built in controls to meet the specific needs of the cardholder's
For a complete overview of the program and all requirements to participate
2.4 Transfers (Claims Between State Agencies)
Claims between state agencies are treated exactly like any other claims
against the State. The vouchers to make these payments are created in Core-CT by
copying the receiver and using the system-generated number or the agency defined
number on the bill as the Invoice Number. The payment method for interagency
payments is GIRO.
A prepayment is permitted when due to the nature of certain types of goods
and/or services an advance payment is required. Some examples of these are
insurance premiums, postage, software licenses, subscriptions, and event
registrations. The date of the invoice should be used as the Voucher Receipt
Date when processing the payment.
2.6 Advance Payments
An advance payment is made when a payment is required prior to it's normal
schedule, (i.e., prior to the receipt of goods and/or services). The Payment Due
Date is an indication of an advance payment. This date should be used as the
Voucher "Receipt Date" when processing the payment. In accordance with
Connecticut General Statute 3-117, the agency shall certify that such articles
or services have been received or performed or, if not yet received or
performed, are covered by contracts properly drawn and executed.
3.1 General Information
A separate voucher must be created for each vendor invoice. The vendor's
invoice number must be entered in the Invoice Number field on the voucher. This
is a critical number used by the software to prevent duplicate payments. Core-CT
will automatically combine multiple vouchers into a single payment to the vendor
unless the Separate Payment box is checked on the Payments Tab in the Payments
Option section of the page.
If an agency wishes to have a check returned to them instead of being sent to
the vendor, the voucher processor must change the handling code from "RE"
Regular to "RA" Return to Agency on the payments tab of the voucher, in the
Payment Method box. The voucher processor must enter a reason for the RA in the
Payment Notes. Voucher Approvers should ensure that the reason is entered and
that it is applicable to this payment.
See OSC Memorandum 2009-31.
All agencies must provide their agency business office telephone number for
vendor inquiries. This number will appear on the remittance portion of each
vendor check. The Comptroller's Accounts Payable Division must be notified
should the number change. Only one telephone number may be printed on the vendor
3.2 Voucher Approvals
The authorization for vouchers and purchase orders must be on file in the
Comptroller's Office and kept current. The CO-512 Claim's Authorization Card
must be completed yearly and more often if a change occurs.
The individual authorizing approval of payment on the voucher cannot be the
approver of the purchase order.
Any user who has final approval roles and requests a name change must update
the CO-512 to reflect their new name.
When submitting an updated CO-512 form, all final approvers must be listed.
This updated form will supersede all previously submitted forms. Therefore, all
employees with final approver roles must be listed on the updated form.
3.3 Types of Vouchers
3.3.1. Adjustment Vouchers
Adjustment vouchers are used for credit or debit memos. This voucher style
should always relate to the original voucher that it is ‘adjusting', and may be
referenced in the invoice ID. If the adjustment is a general credit on account
(i.e. purchasing/payment incentives), then relate it to the original voucher
created for the monthly payment where the credit is given.
Adjustment vouchers need to pass through matching. If the original voucher
was created from a purchase order, it must be within quantity/amount tolerance. If it is not
within the tolerance ranges, a change order is needed on the purchase order before
additional quantities/amounts can be vouchered.
A. Credit adjustments - Enter an adjustment voucher when a vendor sends a
credit memo for previously vouchered items. Use the ‘Copy from Worksheet' link
to copy the original voucher details. On the Voucher Worksheet, identify the
line(s) for the credit, reducing the quantity to what is being credited. Select
‘Reverse Qty/Amount' and then ‘Copy Selected Lines' to the new voucher.
B. Debit adjustments - Enter an adjustment voucher when you need to add a
quantity/amount to previously vouchered items. Create a debit adjustment using
the same steps as a credit adjustment, but do not check ‘Reverse Qty/Amount' on
the Voucher Worksheet.
3.3.2. Journal Voucher:
Journal vouchers are created to correct distribution coding errors on
vouchers. Users must relate them to the original voucher. However, the entire
distribution coding sequence must be entered online because the coding does not
copy from the original voucher.
There should be at least two distribution lines on a journal voucher. The
first line should contain the incorrect coding from the original voucher (with a
negative <-> dollar amount). Once entered, click the + icon to add a new distribution row. This
will automatically create the second row with the same coding as the first, but
with a positive dollar amount. Update the field(s) where the distribution
correction is needed.
A. Journal vouchers require approval, budget check and voucher post, but
never pay. (vendors do not see journal vouchers; they are in-house coding
B. Journal vouchers can only correct current-year coding errors. General Ledger
entries are used to correct prior-year coding errors.
3.3.3. Regular Vouchers
Regular vouchers are used to pay employees, vendors or other state agencies.
This voucher style is created by copying from a source document (purchase order
or purchase order receipt), or by creating a stand-alone, non-purchase order voucher. Use of non-purchase
must have the approval of the Comptroller's Accounts Payable Division. Regular vouchers must
have positive dollar amounts on the invoice lines, distribution lines, and gross
3.3.4. Reversal Vouchers
Reversal vouchers are used to reverse or "take back" a voucher that has
already been voucher posted and cannot be deleted. Reversal vouchers should
relate to the original voucher (in the Related Voucher field), and must be
referenced in the invoice ID. This allows updating previously matched
quantities/amounts, and updating the encumbrance on the purchase order (if
purchase order related).
Reversal vouchers must always be created for a negative dollar amount. If the
posted voucher passes for pay cycle processing, refer to Section 12.0 Cancelling
To reverse a reversal voucher, use a debit adjustment voucher.
3.3.5 Template Vouchers
Template vouchers are an option to use when an agency repeatedly creates many
non-purchase order vouchers, with the same details, but with different dates or amounts. Use of
the non-purchase order vouchers must have the approval of the Comptroller's Accounts Payable Division.
Template vouchers are simply forms that are saved to be used repeatedly for
copying when creating regular vouchers.
Template vouchers are forms used to create regular style vouchers. They
should have only positive dollar amounts on the invoice lines, distribution
lines and gross amount. Template vouchers never voucher post or pay, and they
cannot be deleted or closed.
For additional information on vouchers see:
3.4 Closing Vouchers
Closing a voucher may be an alternative for resolving a problem, but this
action can only be performed by the Comptroller's Accounts Payable Division. If you are unsure
of which procedure to follow, log a Core-CT Help Desk ticket by calling 860-622-2300.
4.0 Request for Replenishment of Petty Cash, CO-17RPC
Form CO-17RPC must be completed as it serves as the invoice used to create
the voucher to replenish petty cash funds. The Record of Outstanding Petty Cash
Advances, Form CO-17RPC/ADV, must also be completed and kept with the CO-17RPC
when there are advances listed on the CO-17RPC.
5.0 Garnishments Against Vendors
5.1 General Information
All levies, judgments, tax warrants, also referred to as "garnishments",
against vendors and/or independent contractors of the State of Connecticut are
to be served on the Office of the State Comptroller, Accounts Payable Division.
All questions related to garnishments should be directed to the Comptroller's
Accounts Payable Division, Special Processing Section at (860) 702-3403 or by
e-mail at firstname.lastname@example.org.
5.2 OSC Approved Garnishments:
A. CGS Section 52-362d Unpaid Child Support
B. CGS Section 17b-79 State Financial Assistance Lien
C. CGS Section 12-162 Alias Tax Warrant - Unpaid town taxes
D. CGS Section 12-35 State Tax Warrant - Unpaid state taxes
E. CGS Section 12-39g Department of Revenue Services
F. CGS Section 31-266 Department of Labor-Employment Security Division
-Collection of Contributions
G. On receipt of a Federal tax lien against wages or salaries - U. S.
Internal Revenue Code, 26 USC, Section 6331.
5.3 Vendor Offsets
5.3.1 General Information
The Department of Revenue Services under CGS 12-39g is permitted to offset
payments to vendors delinquent in the payment of taxes. The 'offset' liability
can be fully or partially satisfied. Until fully satisfied, all future payments
to a vendor with an 'offset' liability will continue to be 'offset'.
Payment information can be found in Core-CT on the Payments tab of the
Voucher pages. A handling code of "OF" will indicate that a payment was offset.
There are different conditions for the offset process. Depending on the lien
or levy type, all of the offset funds are not always recovered before the offset
is considered satisfied and closed. An IRS one-time 'A' levy is satisfied when
one payment for the vendor is recovered.
5.3.2 Statutory Reference
CGS Section 12-39g
6.0 Federal Income Tax Reporting / Form 1099
6.1 Federal Employer Identification Number (FEIN) Social Security Number (SSN)
Reporting for Vendors
Voucher processors must be sure to select the correct vendor location when
creating vouchers, as the vendor location holds the 1099 status for a vendor. A
vendor may have multiple locations for many reasons. For 1099 reporting, if a
vendor has multiple withholding classes, they will be on the appropriate
locations. The voucher processor and voucher approver must verify that the
correct location with the correct 1099 information is selected. A form W-9,
request for Taxpayer Identification Number and Certification is used to verify
the correct FEIN or SSN is on the system.
6.2 1099 - MISC Miscellaneous Income
The Comptroller's Office will issue a form 1099-MISC to vendors who have been
paid $600.00 or more in a calendar year for a withholding payment. The payments
include general services, rents, other income, medical and health care payments,
legal services, non-employee compensation, and gross proceeds paid to an
attorney. Payments made to beneficiaries of deceased employees do not have to
meet the minimum requirement of $600.00
6.3 1099-G Certain Government Payments
The Comptroller's Office will issue a form 1099-G to vendors that receive a
taxable grant of $600.00 or more in a calendar year, regardless of its business
6.4 1099 - S Proceeds from Real Estate Transactions
The Comptroller's Office will report payments made by state agencies for the
purchase of land or real estate valued at $600.00 or more in a calendar year.
6.5 1099-INT Interest Income
The Comptroller's Office will issue a form 1099-INT to vendors that have been
paid $600.00 or more in a calendar year for payments of late interest on a past
For additional 1099 Information see:http://www.core-ct.state.ct.us/financials/ap/doc/determining_withholding.doc
6.6 Determining Withholding
For additional information on Withholding see:
The A/P job aid "Determining Withholding":
And the UPK A/P exercises: "Withholding and 1099s" and "Verifying Withholding
and 1099 info".
6.7 Special Considerations in Form 1099 Reporting
6.7.1 Lump Sum Payments for Labor and Material
Payments for services are withholding applicable (reportable to the IRS)
including parts and materials if they are needed to perform the service.
6.7.2 Payment to Third Parties
Payments are sometimes made to a third party for the benefit of an individual
or partnership. The reporting test should be applied to the principals of the
contract, lease, or agreement. If it is determined that the payment would be
withholding applicable as a direct payment, then it is also withholding
applicable if made to a third party. The Social Security Number (SSN) Federal
Employer Identification Number (FEIN) of the payee is used for reporting
An agency must exercise due diligence in determining the SSN or FEIN of a
payee. Due diligence standards to be applied depend on the individual
circumstances. Examples of such payments are:
A. Real estate leased from an individual with the rent being paid to a real
estate agent. See : http://www.irs.gov/instructions/i1099msc/ar02.html
regulations section 1.6041-1 (e) (5), Example 5.
B. Payments to an attorney for a client.
C. Payments to a booking agent for musicians and entertainers
6.7.3 Scholarships and Fellowships
Do not use Form 1099-MISC to report scholarship or fellowship grants. See:
http://www.irs.gov/instructions/i1099msc/ar02.html regulations section
1.6041-3(n) for more information.
6.7.4 Payment to Non-Resident Aliens
Due to the complex nature in determining reportability to non-resident
aliens, agencies are advised to obtain Internal Revenue Service Publication 519,
U.S. Tax Guide for Aliens, and to apply the reportability determination based on
6.7.5. Difficulty of Care Payments
Amounts paid to foster care providers for qualified foster care are not
withholding applicable if paid for not more than 10 children under the age of 19
and not more than 5 individuals age 19 or older.
6.7.6 Payments from Petty Cash
All reportable payments from the agency's petty cash account must be
summarized annually and forwarded to the Comptroller's Accounts Payable
Division, Special Processing Section. Please include the payee name, FEIN/SSN,
complete mailing address and amount paid to each vendor during the calendar
year. This information must be reported by January 10 of the following
calendar year in order for the Comptroller to comply with IRS reporting
requirements. It is each State agency's responsibility to comply with this
requirement. Failure to properly report this information can subject the State
to IRS penalties and fines.
6.7.7 Royalty Payments
All payments for royalties are reportable. A 1099 MISC form must be created
at the end of the year for these payments.
6.8 Non-Reportable Types — Exempt from 1099s
Commodities are a quantity of goods. Items purchased such as office supplies,
tools, clothing, etc. and are non-reportable, regardless of company ownership.
6.8.2 Federal, State, and Local Government Units
Any payment to a federal, state or local government unit is exempt from 1099
6.8.3 Non-profit Organizations
Payments to non-profit organizations are exempt from 1099-MISC reporting.
They are not exempt from 1099-G reporting.
6.8.4 Tax-Exempt Organization
Any payments to tax-exempt organizations are exempt from 1099-MISC reporting.
Type of payment exemptions: Medical and legal services to a non-profit
organization. Tax-exempt organizations are not exempt from 1099-G reporting.
6.9 Special Processing Payments and Requirements
6.9.1 Payments from Activity, Patient, and Other Local Funds
Agencies making direct payments from special funds must apply to the Internal
Revenue Service (IRS) for a separate Employer Identification Number (EIN). Such
payments include but are not limited to payment of interest earned from
patients'/clients' funds, reportable amounts paid from institutional activity
and welfare funds, payments by workers' compensation to medical suppliers, etc.
These reportable payments require reporting to IRS on Forms 1099, 1096, W-2, 941
and similar IRS forms. The new EIN should also be used by agencies submitting
claims directly to IRS for reimbursement; (e.g., filing Form 843 for rebate of
excise tax payments). EIN 06-6000798 is to be used by the Comptroller's Office
only for reporting on payments processed at the Comptroller's Office.
When submitting reportable payments, agencies must comply with IRS
regulations. Publications interpreting the IRS regulations are available through
the Internal Revenue Service; examples include Publication 15, Publication 1220,
and Publication 1281. Failure to comply with IRS reporting regulations may
result in the assessment of an IRS penalty of $50.00 or more per form for forms
incorrectly filed. This penalty, if levied, must be paid by the agency preparing
the IRS reporting documentation, even if the agency incorrectly reported using
the Comptroller's employer identification number (EIN). Agencies should note
that IRS reporting requirements mandate the use of magnetic media for the
reporting of 250 or more forms per EIN.
For IRS forms: http://www.irs.gov/publications/index.html
7.0 Payment to State Employees
7.1 Union Funded Travel
The Office of the State Comptroller, Administrative Services Division is responsible
for union funded travel reimbursement. State employees who are members of a
collective bargaining unit may be eligible to receive reimbursement from union
funds for attendance at seminars, workshops, or conferences. See individual
collective bargaining contracts for union specific guidelines.
See the following for additional information: Reimbursement for State
Employees for Expenses Incurred in the Performance of their Duties:
These regulations set forth the basic guidelines for reimbursable travel
expenses and require state employees to abide by the policies established by the
Department of Administrative Services and the Office of the State Comptroller
when making travel arrangements.
Union Funded Travel Procedures Manual:
7.2 Tuition Reimbursement
The Office of the State Comptroller, Administrative Services Division is responsible
for the administration of the statewide tuition reimbursement program. State of
Connecticut employees who are members of a collective bargaining unit may be
eligible to receive tuition reimbursement from union funds. See individual
collective bargaining contracts for union specific guidelines.
The Department of Administrative Services (DAS) and the Office of the State
Comptroller (OSC) have prepared a guide for tuition reimbursement. This guide is
intended to be a reference tool for agency tuition reimbursement officers and
State of Connecticut employees. This guide provides the general information
needed to process applications correctly and consistently for state employees.
Collective Bargaining Contracts:
8.0 Determination of Special Compensation and Expenses
8.1 Statutory References
CGS Sections 4-40 and 4-40a
Claims must be approved by the Office of Policy and Management (OPM).
The claim must designate the item number, and the date of OPM approval. It
must also reference the number of the state statute or special act prescribing
the type and amount of compensation.
Those claims received by the State Comptroller without required reference are
considered incomplete and will be returned to the agency.
8.4 Payments to Dual Employed State Employees
8.4.1 Statutory References
CGS Section 5-208a
All personal service agreements (CO-802A) approved by DAS-Personnel as
required by the Connecticut General Statutes must be processed based on the
A. If an employer-employee relationship exists as defined by the Internal
Revenue Service code, payment must be processed through the payroll system.
B Upon the determination that the services provided are those of an
independent contractor, payment is to be processed on the voucher. Failure in
making a proper determination may result in the assessment of penalties by the
Internal Revenue Service to the state.
8.5 State Officers, Boards, Commission Deputies, and Employees
8.5.1 Statutory Reference
CGS Sec 4-40
The salaries, compensation, and wages of all state officers, boards,
commissions, deputies and employees (except in the legislative and judicial
departments of the state government) shall be determined by the Commissioner of
Administrative Services, subject to the approval of the Secretary of the Office
of Policy and Management.
8.6 Licensing Boards and Commissions
8.6.1 Statutory Reference
CGS Sec 4-40a
Members of the examining and licensing boards and commissions acting under
Title 20 shall be compensated for their services at rates established by the
Commissioner of Administrative Services.
9.0 Undeliverable Checks
9.1 Undeliverable Vendor and Payroll Checks
Payroll checks are to be held by the issuing agency for a period of one year
and checks for three years. When this term expires, the checks are then
escheated directly to the Unclaimed Property Division of the State Treasurer.
If a payee wants to claim a check, prior to it being escheated, the payee
should contact the issuing agency and request the funds. For checks that are
more than six months old, the agency shall submit a Payment Cancellation form
CO-790 to the Comptroller to cancel and reissue the payment.
If a payee requests a check that has been escheated, they are required to
submit the appropriate claim processing paperwork to the Unclaimed Property
Division before receiving a replacement check.
9.2 Requests from Asset Recovery Organizations (finders)
The Office of the State Comptroller and the Treasurer's Office receive
inquiries regarding outstanding vendor checks from asset recovery organizations
(fee finders). The fee finder obtains the vendor check information from the
Treasurer's Office under the Freedom of Information Statutes; specifically
Section 1-15 (CGS).
In addition to the vendor check listing, the Treasurer's Office provides an
agency code listing and a telephone directory upon request. The standard letter
to the fee finder will direct them to the individual agency responsible for the
payment. Any requests for vendor check information must be submitted through the
originating agency which processed the claim.
9.2.1 Outstanding Vendor Check List
The Treasurer's Office issues each agency a listing of outstanding vendor
checks in the spring of each year. Please review this listing, especially the
large dollar amounts; payments to other state agencies, towns or government
entities, to diminish the requests from the finders. Submit the review findings
to the Treasurer to reduce the number of outstanding items.
9.2.2 Agency Internal Procedures
Agency must develop internal procedures to handle inquiries from a fee
finder. If a fee finder requests information, contact the Office of the State
Treasurer's Unclaimed Property Division. http://www.state.ct.us/ott/aboutucp.htm
9.3 Outstanding Checks for Activity and Welfare Funds
9.3.1 Statutory References
CGS Section 4-52 through Section 4-56
If a check from trustee funds is outstanding for three years
after the date of the issue of the check, the agency must report the unclaimed
funds to the Office of the State Treasurer, Unclaimed Property Division. The
agency must transfer the unclaimed assets to the Office of the State Treasurer
as unclaimed property.
Please direct questions as follows:
Treasurer's procedures: Cash Management Unit (860) 702-3108
Comptroller's procedures: Accounts Payable Division
Trustee fund outstanding checks (800) 833-7318
10.0 Revenue Refund Procedures
When all or a portion of a General Fund revenue item must be refunded it is
recorded as an expenditure; it is not recorded as a reduction of revenue
10.2 Unrestricted General Fund Refunds
10.2.1 OSCIR Refunds
10.2.2 Statutory References
CGS 4-37, 14-159, 22a-10
The Office of State Comptroller has authority to refund overpayment of fees paid by corporations and individuals and to refund monies to persons equitably entitled to the refund of money paid to the state. These refunds are for fees, such as motor vehicle fees, fishing licenses, permits, etc.
When processing a refund, agencies will use the OSCIR business unit with revenue account 46200. Agencies will now use their own department and project ID.
Each payment to the vendor must be set up as a one-time vendor in Core-CT. The Department of Energy and Environmental Protection will continue to processes refunds separately from the OSCIR business Unit.
Agencies can run an EPM report (CT_CORE_FIN_AP_VCHBUDCKD_UNPD) in Core- CT to check on vouchers that are not paid.
General questions on OSCIR refunds can be directed to the Office of the State Comptroller
Administrative Services Division at (860) 702-3440.
10.3 Restricted General Fund Refunds
When restricted General Fund revenue must be returned, in part or in whole,
the agency prepares a regular voucher charging the chartfields in which the
restricted amounts are recorded.
10.4 Other Than General Fund Refunds
Refunds from funds other than the General Fund are also charged as
expenditures. The agency prepares a regular voucher using the chartfield values
that were used for the expenditure.
For questions on coding refunds vouchers contact:
11.0 Interest Expense for Late Payments to Vendors
11.1 Statutory References
CGS Sections 4a-71, 4a-72, 4a-73 and 4a-74
11.2 General Information
CGS 4a-71 - 4a-74 states…"each state department and agency shall pay interest
at a rate equal to the monthly effective yield for the Short Term Investment
Fund administered by the Treasurer pursuant to sections 3-27a to 3-27f,
inclusive, on amounts due on written contracts for public works, personal
services, goods and services, equipment and travel, whenever such department or
agency fails to make timely payment."
11.3 Exceptions to Prompt Payment Provisions
11.3.1 Statutory Reference
CGS Section 4a-72
11.3.2 Statutory Exceptions
A. Interagency or intergovernmental transactions.
B. Amounts payable to employee or prospective employees of state departments
or agencies as reimbursement for expense.
C. Contracts entered into on/or before October 1, 1984.
D. Contracts related to highway or road construction, reconstruction, or
E. Claims, contracts, or projects that are to be paid for exclusively with
F. Claims subject to good faith dispute, if before the date of timely
payment, notice of the dispute is sent by certified mail, personally delivered,
or sent in accordance with any procedure in the contract.
"Good faith dispute" means a contention by the state that goods delivered or
services rendered were:
1. Of less quantity or quality than ordered or specified by contract,
3. Installed improperly, or
4. Any other reason giving cause for the withholding of payment by the state
until the dispute is settled.
11.4 Time Considerations
11.4.1. Time Frame for Processing Claims
Vendor payments must not be processed more than (5) days prior to the payment
11.4.2 Timely Payment Definition
Payment is considered "timely" if:
In accordance with Connecticut General Statute (CGS) 4a-71, payment is mailed
or delivered on the date specified in the contract documents, or, if no date is
specified, within forty-five (45) days of receipt of a properly completed claim
or receipt of goods and services, whichever is later.
In accordance with CGS 4a-60j, a small contractor shall receive payment on a
contract awarded under the provisions of sections 4a-60g to 4a-60i, inclusive,
no later than thirty (30) days from the due date of any such payment on such
In accordance with CGS 4a-74, utilities shall not be subject to late payment
charges on any bill until sixty (60) days after the due date.
For any amount that is required to be withheld under state or federal law, a
payment is mailed or delivered in the proper amount on the date the amount may
be released under applicable law.
11.4.3 Disputed Claims
In the instances where a claim is filled out incorrectly or where there is
any defect or impropriety in a claim submitted, the state department or agency
shall contact the vendor within ten days. An error on the vendor's claim, if
corrected within five business days of being so contacted and within the payment
period as determined above, preserves the original due date of payment.
11.5 Processing Interest Payments
11.5.1 General Information
The interest rate paid to vendors with claims for late payment shall be
calculated using the annual effective yield (calculated monthly) of the Short
Term Investment Fund (STIF). The STIF rates are published at:
The published rate to be used shall be the annual rate for the month
preceding the month in which the interest is assessed (for example: interest
assessed between October 1, 2011 and October 31, 2011, inclusive, shall be the
annual rate published for the month of September 2011).
In order to avoid the payment of interest charges it is essential that agency
fiscal managers ensure that all payments for contractual obligations are made in
a timely manner and that no additional costs are incurred by the State.
11.5.2 Statutory References
CGS 4a-71 - 4a-74
11.5.3 Statutory Requirement
The payment of interest shall be from funds designated for administrative
costs of the agency receiving the public works, personal services, goods and
services, equipment or travel. Interest shall not be paid from other funds of
11.5.4 Payment Procedures
The vendor's request for payment of interest must be submitted on a separate
invoice identifying the original contract, procurement document, and shipping or
Verify the time frames for which the interest charge is being made by the
Confirm the date that the payment was made to the vendor. In most instances
the check date will also be the postmark date. ACH and Wire dates may be
verified through the Comptroller's Accounts Payable Division.
A separate non-purchase order voucher for interest payments is required for entry into
Core-CT. Under separate cover, a screen print of the Core-CT voucher must be
submitted to the Accounts Payable Division Audit Section within five (5)
The voucher must be accompanied by a written explanation for the late payment
and signed by the agency head. Account coding should be to Interest Expense -
54730. Expenditure Account 54730 is used to properly classify the portion of the
expenditure related to interest.
Section 4a-73 states: "Any state agency required to pay late payment
penalties under section 4a-71 shall pay the penalties from funds designated for
administrative costs of the agency receiving the public works, personal
services, goods and services, equipment or travel. The penalties shall not be
paid from other funds of the state."
For additional detailed information:
12.0 Cancelling Vendor Payments
Payment cancellations are processed on Form CO-790, Payment Cancellation. The
CO- 790 is restricted to one payment reference ID per form.
Check cancellations can be only be done on checks dated three (3) years prior
to the current fiscal year. Checks older than three (3) years prior to the
current fiscal year have been escheated. Vendors seeking funds from escheated
checks must be referred to the Unclaimed Property Division of the Treasurer's
A CO-790S should be submitted with the CO-790 if the cancellation is for a
duplicate or overpayment, payment to a wrong vendor or payment of the wrong
amount. The CO-790S must be signed by either the agency head or deputy. No other
signatures are acceptable.
For additional information on check cancellation see OSC Memorandum 2009-20:
For additional cancellation procedures refer to the payment cancellation job
12.1 Payment Cancellation Submissions
When the CO-790 is completed, forward the Comptroller's copy and the
Treasurer's copy with the check(s) being cancelled to:
Office of the State Comptroller Accounts Payable Division 55 Elm Street
Hartford, CT 06106
12.2 Check Face Requirements
Checks submitted for cancellations must be marked or stamped "Cancelled" so
they are not negotiable.
12.3 CO-790 and CO-790S Explanation
An explanation must be given for each cancelled payment. Duplicate payments
and overpayments must be explained on form CO-790S, Payment Cancellation
12.4 Returned Funds
Money is returned to the unencumbered balance for current year cancellations
and must be re-encumbered before another expenditure document is submitted.
12.5 Cancelling Checks from Different Fiscal Years
Reversal vouchers are required for different fiscal year transactions.
When a continuing appropriation is affected the funds are returned to the
unencumbered. Non-continuing appropriation funds are put in the General Fund.
The posting of the document will not appear on any appropriation ledger reports.
12.6 Timely Processing of Payment Cancellations
Checks should not be accumulated. To maintain proper balance in all state
accounts, checks must be submitted for cancellation as soon as possible from the
date it has been determined that payment is not to be made.
ACH/EFT payments must be cancelled within five (5) days of issuance.
12.7 Unclaimed Checks
Unclaimed checks, if still valid obligations of the state, must be escheated
they cannot be cancelled.
12.8 Cancellation of Duplicate or Overpayment Vendor Checks
If the payment being cancelled is a duplicate payment or overpayment, the
completion of form CO-790S, Payment Cancellation Statement is mandatory. It must
be signed by either the agency head or deputy. No other signatures will be
Duplicate payments and overpayments are indicative of improper fiscal control
and attention. The agency should review their business process and make
adjustments to eliminate such errors.
12.9 Payment Cancellation Statement, CO-790S
Form CO-790S, Payment Cancellation Statement requires a detailed explanation
and should include the following:
A. What procedures were used to verify that the billed or invoiced goods
and/or services were unpaid prior to filing claim?
B. Was the payment based upon a vendor's billing statement (no payments
should be made from a vendor's statement)?
C. Was an original vendor invoice used to authorize payment? A duplicate
vendor's invoice or statement should not be used in lieu of the original
D. What controls have been established to prevent a recurrence of this type
E. Will the assistance of the Comptroller's Budget and Financial Analysis Division be
required in establishing procedures for an effective internal control system?
12.10 Time Interval Before Submission
A three week interval between the date of the original check and the date of
the request is the minimum amount of time that should lapse before a request is
Claims are processed by the Office of the State Treasurer within a six to
eight business day period. An additional three to five business days should be
allowed for delivery of the replacement check (three weeks).
Agencies should notify vendors to check the date of the check that they
receive if they have put in a claim. The check date will let them know if they
received the original or the replacement.
If the vendor attempts to deposit or cash the original check, it will be
returned as the check had a stop payment placed against it by the Treasurer's
Office. The vendor should hold the original check until they receive the
replacement check, then they can destroy the original or return it to the agency
with a note explaining what has occurred.
13.0 Request for Payment Information, CO-860
13.1 General Information
Form CO-860 is used to obtain a copy of a cashed check or inquire on the
status of an electronic payment.
13.2 Processing of Requests
The state agencies will furnish the required data under section I, II, III
and IV and forward the request to the Office of the State Treasurer. The Office
of the State Treasurer will indicate under section VI the action taken.
If the check has been cashed, the original request and a double-sided copy of
the check will be returned to the agency.
13.3 Recovery of the Original Issued Check
In the event the original check is returned to the agency after the
replacement check is issued:
A. Return the check to the Office of the Treasurer, Cash Management Division,
Check Administration, 55 Elm Street, Hartford, CT 06106.
B. The check should be stamped VOID unless it already has been stamped "STOP
13.4 Inquiries Regarding Disposition of Request
All inquiries should be directed to the Office of the State Treasurer, Cash
Management Division, Check Administration Area.
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