TRANSFERS AND ADJUSTMENTS

1.0 GENERAL INFORMATION
1.1 Statutory References
Expenditures: Sections 3-112, 3-117, 4-69 and 4-89.

Receipts: Sections 3-17, 3-112, 3-114, 4-32 and 4-69.

1.2 Use of Transfer Lists
Transfer Lists are used to settle claims between State agencies (inter-agency) and to settle claims between appropriations or funds administered by a single State agency (intra- agency). Paragraph 3.0 discusses the common situations in which use of Transfer Lists is allowable.

Do not use Transfer Lists to correct errors. Use Form CO-604, Agency Correction or Adjustment Report (Exhibits 7-1a and 7-1b).

1.3 Accounting Entries
For Service Transfers (ST) and Grant Transfers (GT), the Transfer Certificate (CO-607) is the revenue portion of a transfer list and functions the same as a Deposit Slip (CO-39). The Transfer Invoice (CO-608) is the expenditure portion of a transfer list and functions the same as a vendor invoice in an expenditure batch.

For Expenditure Transfers (EC and ET) no revenue will be recorded, only increases and decreases in expenditures will be reflected on the Comptroller's records.

ACCOUNTING MANUAL 7-1 APRIL 1997

2.0 TRANSFER DOCUMENTS
 
2.1 Transfer Lists
 
Transfer Lists consist of the following forms:
a. Transfer Certificate, Form CO-607 (Exhibit 7-2).

AND

 
b. Transfer Invoices, Form CO-608 (Exhibit 7-3a and 7-3b), or Transfer Invoices, Form CO-608A, designed for use with Data Processing Equipment.

OR

 
c. Transfers out of Pending Receipts (Fund 7013) will use Form CO-610, Record of Pending Receipts (Exhibits 7-4, ST and 7-5, ET), which will function as both a Transfer Certificate and Transfer Invoice. See Receipts section 6.0 for a detailed discussion of Pending Receipts.
 
2.2 Transfer Certificate, CO-607
Procedures for completing the Transfer Certificate, CO-607, are described below for specific document types.

ST - Service Transfer

This document type requires the creditor agency to record their receipts only on the Transfer Certificate, CO-607, for a group of Transfer Invoices attached with various expenditure codings. The "Total" on the Transfer Certificate is equal to the total of all expenditure codings on the transfer invoices. The Transfer Certificate and Transfer Invoices are assembled and distributed as a Transfer List following the instructions in paragraph 2.4.

EC & ET - Expenditure Transfer

There are three variables for this document type:

- ET - The transfer of expenditures between agencies requires the Transfer Certificate, CO-607, prepared by the creditor agency to record their credit expenditures for a group of Transfer Invoices attached with various debit expenditure codings. The credit amounts must appear in brackets and have full expense codings on the Transfer Certificate. The "Total" on the Transfer Certificate is zero since the document type of ET must always net to zero. The Transfer Certificate and Transfer Invoices are assembled and distributed as a Transfer List following the instructions in paragraph 2.4.

- The transfer of expenditures (involving a commitment liquidation) within an agency (intra-agency) requires the Transfer Certificate, CO-607, to record the credit expen- ditures for a group of Transfer Invoices attached with various debit expenditure codings. The credit amounts must appear in brackets and have full expense codings on the Transfer Certificate. The "Total" on the Transfer Certificate is zero since the docu-

ACCOUNTING MANUAL 7-2 APRIL 1997
ment types of EC or ET must always net to zero. The Transfer Certificate and Transfer Invoices are assembled and distributed as a Transfer List following the instructions in paragraph 2.4.

- The transfer of expenditures (no commitment liquidation involved) within an agency (intra-agency) requires only the Transfer Certificate, CO-607, to record both credit and debit expenditure codings. The credit amounts must appear in brackets and have full expense codings. The "Total" on the Transfer Certificate is zero since the document types of EC or ET must always net to zero. The white copy of the Transfer Certificate now represents a Transfer List and is forwarded to the Comptroller, Accounting Services for processing.

GT - Grant Transfer

This document type requires the Transfer Certificate, CO-607, prepared by the receiving agency recording revenues to one of four objects (99250, 99260, 99350 or 99360) and coded through SID. The giving agency is to use the expense object of 05340 when coding the expenditure portion of the corresponding Transfer Invoice, CO-608. See Grants Section 5.0 for a detailed discussion of Grant Transfers. The Transfer List is assembled and distributed following the instructions in paragraph 2.4.

2.3 Transfer Invoice, CO-608
The Transfer Invoice, Form CO-608, is like the Vendor's Invoice, Form CO-17, which it replaces for transfer purposes only. Document types of ST and GT on a Transfer Certi-ficate, Form CO-607, require the use of this form.

A document type of ET on the Transfer Certificate, Form CO-607, requires the use of a Transfer Invoice, Form CO-608, when the transfer of expenses is between different State agencies.

When a commitment liquidation is involved, the following fields on the Transfer Invoice, CO-608, must be filled:

- Commitment Type, RR for a reservation that has been set up through the commit-ment process to encumber the funds.

- Commitment Number, this is a five-digit number consisting of 2 plus your agency number (i.e. 21202) for a reservation.

- Commitment Line, this is a required field for expenditure detail coding lines. The line number referenced should be that line from the original commitment document from which funds were encumbered.

ACCOUNTING MANUAL 7-3 APRIL 1997
Procedures for processing this form are as follows:

The creditor agency prepares Transfer Invoices, in triplicate, by filling in the "From" box, the "To" box and the bottom portion of the form from "Description" down. The creditor agency will then send the white and pink copies to the debtor agency and keep the canary copy until the white copy is returned by the debtor agency.

The debtor agency, upon receipt of white and pink copies, must promptly; verify all charges, provide the Commitment Type, Commitment Number, Classification of Expenditures coding (which must include a commitment line number) and an Authorized Agency Signature of Acceptance. The debtor agency will then return the white copy to the creditor agency and record and file the pink copy in the agency records.

The creditor agency, upon receipt of the completed white copy, will assemble and distribute a Transfer List according to the instructions in paragraph 2.4.

2.4 Distribution of Transfer Lists
After all forms have been completed, the creditor agency assembles them into a Transfer List for the following distribution:

To Comptroller's Office -

Transfer Certificate (CO-607), Original (white)

Transfer Invoices (CO-608) or alternates described in 2.1,b, Originals (white)

The original Transfer List consisting of the original white copy of a Transfer Certificate with the pertinent original white copies of Transfer Invoices stapled to the back will be forwarded to the Office of the State Comptroller, Accounting Services, 55 Elm Street, Hartford, Connecticut 06106.

To Agency Files -

Transfer Certificate (CO-607), Duplicate (canary) and Triplicate (blue).

Transfer Invoices (CO-608) or alternates described in 2.1,b, Duplicates (canary).

ACCOUNTING MANUAL 7-4 APRIL 1997
2.5 QUICK REFERENCE CHECK LIST (Transfer Lists)
ST Service Transfer - Processing bills for goods or services.
- Transfer Certificate and Transfer Invoice(s) required.
- Revenues only on Transfer Certificate, no expenditure codings.
- 9901 and 9909 are not valid revenues, document type must be ET to credit expenditures.
- Commitment Type, Number and Line Number required on Transfer Invoice. Only one reservation or purchase order may be charged on each Transfer Invoice.
- White copies only of Transfer Certificate and Transfer Invoice stapled together to form a Transfer List and forwarded to the Comptroller, Accounting Services.
ST Service Transfer - Transferring pending receipt money to another
fund as revenue.
- Record of Pending Receipt (Form CO-610) canary copy only required.
- Transfer Revenue To section must reference coding for revenue objects only (9901 and 9909 are not valid revenues, document type must be ET).
GT Grant Transfer - Transferring Federal and Other Grant funds.
- Transfer Certificate and Transfer Invoice required.
- Revenues coded through SID on Transfer Certificate.
- Valid revenue objects are 99250, 99260, 99350 and 99360.
- Expenditure object for Transfer Invoice is 05340 (except for grants from
General Fund 600 SIDs which should use 07020).
- White copies only of Transfer Certificate and Transfer Invoice stapled together to
form a Transfer List and forwarded to the Comptroller, Accounting Services.
- Other Expenses (002) may NOT give grants.
ACCOUNTING MANUAL 7-5 APRIL 1997

 

GT  From Pending Receipts Fund (7013)
- Use form CO-610, Record of Pending Receipts, indicate a Doc Type of "GT"
and the revenue object should be 99200 or 99300.
ET  Expenditure Transfer - Inter-agency transfer of charges.
- Transfer Certificate and Transfer Invoice required.
- All objects are expenditure objects.
- Credit amounts must be in brackets.
- Total credit and debit amounts must always net to zero.
- White copies only of Transfer Certificate and Transfer Invoice stapled together to
form a Transfer List and forwarded to the Comptroller, Accounting Services.
EC  & ET Expenditure Transfer - Intra-agency transfer of charges involving a commitment liquidation.
- Transfer Certificate and Transfer Invoice (both) required OR
Agency Correction or Adjustment Report (only).
- All objects are expenditure objects.
- Credit amounts must be in brackets.
- Total credit and debit amounts must always net to zero.
- Invoice must reference commitment type, number, and line number.
- White copies only of Transfer Certificate and Transfer Invoice ,if completed,
stapled together to form a Transfer List and forwarded to the Comptroller,
Accounting Services.
- White and canary copies of Agency Correction or Adjustment Report, if
completed, forwarded to the Comptroller, Accounting Services.
ACCOUNTING MANUAL 7-6 APRIL 1997
EC & ET  Expenditure Transfer - Intra-agency transfer of charges involving a commitment liquidation.
- Transfer Certificate only required OR Agency Correction or Adjustment Report
(only).
- All objects are expenditure objects.
- Total must net to zero.
- Credit amounts must be in brackets.
- Explanation of transaction must be given.
- White copy only of Transfer Certificate, if completed, forwarded to the Comp-
troller, Accounting Services.
- White and canary copies of Agency Correction or Adjustment Report, if
completed, forwarded to the Comptroller, Accounting Services.
ET  Expenditure Transfer - Transferring pending receipts to another fund
as credit expenditures (refund of expenditures).
- Complete all sections of canary copy except Refund through Billing
Identification.
- Doc Type of ST changed to ET.
- Original expenditure object indicated.
- Credit to expenditures amount must be in brackets.
- Credit to expenditures amount must be in brackets.
- Canary copy only of Record of Pending Receipt forwarded to the
Comptroller, Accounting Services.

TOTAL NUMBER OF CODING LINES, REVENUE PLUS EXPENDITURES, CANNOT EXCEED 99 ON A SINGLE TRANSFER LIST.

ACCOUNTING MANUAL 7-7 APRIL 1997
3.0 TRANSFER LIST USES
3.1 Sales of Goods or Services (ST)
Charges for goods or services arise where one agency is providing services to user agencies in the same manner that an outside vendor would. Examples include the laundry and data processing services provided by the Department of Administrative Services.

The debtor agency should process the transfer invoice using controls similar to those for outside vendor invoices - receiving reports, authorizations, etc. - prior to returning to the creditor agency as "accepted." Both the revenue and expenditure codings will be the same as those used when dealing with an outside vendor.

3.2 Transfers of Grants (GT)
Transfers of Federal and other grants, either inter-agency or intra-agency, are generally made by transfer list. Detailed procedures are contained in the Grants section, page 8-10.

Other Expenses (002) may NOT give grants.

3.3 Temporary Financing of Personal Services Costs (ET)
It may become necessary to temporarily finance personal services costs from a budgeted General Fund appropriation which will later be reimbursed by a General Fund Federal grant appropriation.

The Indirect Cost and Fringe Benefits Recovery Procedures Manual, page 20.1, explains the accounting procedures for temporary financing.

3.4 Intra-Agency Charges for the Sake of Expediency (EC or ET)
In this situation an expenditure which is chargeable to several accounts is temporarily charged to one account until it can be properly distributed at a later date.

Example of Charges for the Sake of Expediency:

The payment of telephone services which are charged to only one account for each agency (usually General Fund appropriation 002 - Other Expenses) or any expenditure that is chargeable to several accounts within an agency and is initially charged to only one account. Use the following procedure to distribute payments to the proper appropriation or fund:

a. Prepare a Transfer List except that only the CO-607 Transfer Certificate will be required.
ACCOUNTING MANUAL 7-8 APRIL 1997
 
b. Type on the top of the CO-607 "INTRA-AGENCY EXPENSE TRANSFER." The document type for this will be ET = Expenditure Transfer.
 
c. Use the CO-607 for charges and credits which in all cases must net to zero.
 
d. A brief explanation of the transaction must be included on the certificate.
 
e. As an alternate to a Transfer List, an Agency Correction or Adjustment Report, CO-604 may be used.
 
3.5 Restrictions on Charges Between Budgeted Appropriations
 
When one agency performs a service for another, no transfer of personal service costs will be permitted except for actual and identifiable "Overtime" costs incurred because of such service. This does not apply to those situations where individuals are budgeted in one agency but on the payroll of another agency. As a rule of thumb:

- When the amount involved is less than a full pay-period, no transfer except for actual and identifiable overtime costs.

- When the amount involved is a full pay-period or more, a transfer is in order.

Agencies should absorb nominal costs where possible in order to save paperwork.

ACCOUNTING MANUAL 7-9 APRIL 1997
4.0 AGENCY CORRECTION OR ADJUSTMENT REPORT USES
 
4.1 General Information
 
The form CO-604, Agency Correction or Adjustment Report, is used by all State agencies to notify the Comptroller of an error in the accounting records and how it should be corrected.
Do not use the CO-604 to correct deposit slip errors except for the situations listed in 4.4 below. See section 5.0 of Receipts for additional detailed information on corrections and adjustments to receipts.
 
4.2 Expenditure Correction (Document Type of EC)
 
This type of document can only be used for corrections to the Expenditure Object, Agency Tail (Function, Activity and Extension), or Commitments. The Agency Number, Fund, and SID must be the same for the entire document. Agencies on CAS II and SAAAS paperless who enter their own documents do not have to send any paperwork to this office. Note: Those agencies that are not currently "On Line" or "paperless" must still submit their paperwork to this office.

This would pertain to the following situations:

- Errors in a commitment liquidation only.

- Errors in a commitment liquidation

  AND/OR  

- Errors in any of the following: Expenditure Object, Function, Activity, Extension.

See Exhibit 7-1b.

4.3 Expenditure Transfer (Document Type of ET)
 
This document type must be used when there is a change to the Agency, Fund, or SID. Form CO-604 can not be used if there is a change in agency numbers. Form CO-607 must be used if there are different agency numbers on the document. Commitment corrections can be made on the ET type documents. Those agencies that enter their own documents will still have to submit them to this office for validation.
 
This would pertain to the following situations:
ACCOUNTING MANUAL 7-10 APRIL 1997
- Errors in a commitment liquidation only.

- Errors in a commitment liquidation AND/OR - Errors in any of the following: Agency, Cost Center, Expenditure Object, Function, Activity, Extension.

See Exhibit 7-1a.

- Errors in a commitment liquidation 

AND/OR 

- Errors in any of the following: Agency, Cost Center, Expenditure Object, Function, Activity, Extension.

See Exhibit 7-1a.

4.4 Revenue Transfer (Document Type of RT)
Form CO-604 with this document type is for corrections or adjustments to deposit slip codings that are not normally corrected on the next deposit slip submitted.

This would pertain to the following situations:

- Errors for funds 7205 and 7801.

- All prior year errors.

ACCOUNTING MANUAL 7-11 APRIL 1997
5.0 FISCAL YEAR END
Memos are issued annually with instructions for handling transfer lists at the end of the fiscal year. They contain dates by which these lists must be received in the Comptroller's Office for processing against the current fiscal year. It is imperative that debtor and creditor agencies cooperate to meet these deadlines to assure that transfers are recorded in the desired fiscal year.
ACCOUNTING MANUAL 7-12 APRIL 1997


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