March 30, 1992



Attention: Chief Administrative and Fiscal Officers, Business Managers,and Payroll and Personnel Officers.
Subject: Change in Method of Payment for Reportable Employee Allowances/Payments.

Memorandum No. 91-48, dated November 1, 1991 and Memorandum No. 91-48a, dated December 9, 1991 advised agencies of the change in method of payment for reportable employee allowances/payments and detailed the payment and payroll procedures.

Memorandum No. 91-48b, effective immediately, is to address issues not contained in the preceding memoranda and to clarify the instructions for processing claims.

Changes in processing will be implemented with the issuance of this memorandum. Please read the following instructions carefully to avoid return of claims.


A. Additional Taxable/Reportable Fringe Benefits and Other Employee Payments
1. Forms - CO-1004 (Time Card Entry Form):
Commutation* R1**; Amount; D/OE Code "1V"
Day Care Payment * R1**; Amount; D/OE Code "1W"
* Refer to Section I-B below.
** The "R1" transaction code is for SERS and ARP retirement employees only - all others as stated in section IV of this memo must use "R3" as the transaction code.
2. On-Line - Screen 381 or 382: Same as above.
3. Remote Job Entry - ZT Transaction: Same as above.

B. Explanation of Allowance or Payment

1. Commutation - Mileage paid as prescribed by State stature, for home to work travel.
2. Day Care Payment - Payments made directly to the Day Care Center on behalf of an employee. Not to be confused with Child Care payments, D/OE "1S", made to an employee.

C. Meal Allowance

The federal per diem rates stated in Memorandum 91-48a, Section I-C (1), are to be used for travel in the Continental United States.

It has been determined that the processing of meal reimbursements is done in two different manners. This has caused confusion processing claims under the new procedures. Please read the following section carefully and prepare claims accordingly.

1. Per Diem: All per diem claims must have the CO-17XP Addendum attached. When processing per diem claims for payment, the "Remarks Section," block 23, of the CO-17XP must be stamped "Per Diem".
a. Per Diem payments at or below the federal rate are non-reportable.
b. Per Diem payments above the federal rate are reportable. When filling out the addendum, the excess amount is reportable and must be processed through the payroll system.
2. Actual Meal Expenses: When employees submit meal receipts and are reimbursed for their actual expenses, it is non-reportable. Agencies are to retain the receipts in their office except for individual meal receipts over $25.00 which must be attached in accordance with Section 3-117 C.G.S. The CO-17XP Addendum is not required. When processing receipt claims for payment, the "Remarks Section", block 23 of the CO-17XP must be stamped "Actual Expenses".
Regardless of the method used, the same method must be used for the entire travel period. For instance, an employee cannot use the "per diem" method one day and then the actual expenses for the remainder of the trip.
Under either method (per diem or actual expenses) the undocumented lump sum amount and any other undocumented payments are fully reportable.

D. Foreign Travel Outside of the Continental United States (OCONNUS)

Foreign travel rates (any area outside the Continental United States) are set by the Comptroller in accordance with regulations published under Section 925 of The United States Department of State Standardized Regulations.
Per diem amounts are listed separately for both lodging (Column A) and Meals and Incidental Expenses (Column B). It is the policy of the Comptroller to approve only the rates stated in the federal regulations. Payments made at or below this rate are non-reportable. If any agency does pay an amount in excess of the federal rate, that portion above the stated amount is reportable.
Processing Procedures for Foreign Travel Per Diem Allowances:
All claims should be processed in accordance with the procedures outlined in Memorandum No. 91-48a, in addition to the following steps:
- The Employee Voucher-Addendum (CO-17XP-A) form must be completed
for all claims, including non-reportable payments.
- The federal per diem rate on line 8 should be completed by inserting the
applicable foreign rate as indicated in Section 925 of the United States
Department of State Standardized Regulations.
- Attach the Employee Voucher-Addendum (CO-17XP-A) form (when using the
per diem method) to a completed CO-17XP and forward to Accounts Payable
and/or Payroll Services, as applicable.

E. Travel Expenses Paid by a Third Party

Travel expenses paid by a third party (such as FDIC, NCUA, EPA, USNRC, etc.) for an employee must be computed as follows:

- When the federal per diem rate is paid to the employee either high-cost localities ($34.00) or all others ($26.00), any excess paid by the State is considered reportable and must be paid through payroll.

F. Conference Expenses

When a meal or meals is/are included in the conference fee, the meals cannot be distinguished and are, therefore, non-reportable. However, any additional collective bargaining contract allowances must be computed accordingly for reportability.

G. Transporting - Patients, Inmates or Children

When submitting claims for transporting patients, inmates or children, form CO-17XPA - Addendum is not required; however, the CO-XP17 - Employee Voucher must be clearly identified as "transporting persons". This amount is not reportable.

H. Petty Cash

If an advance was made from petty cash to the employee for travel expenses and upon return a portion of the advance to be recovered is being made through the payroll system, the employee must submit a personal check to the petty cash custodian.
Team travel for universities, community and technical colleges that include a meal for the coach/coaches can be processed in the usual manner. The meals for the coach/coaches do not have to be segregated.
Travel advances to recruiters can be made through petty cash, but a CO-17XP must be completed upon their return and processed in the usual manner for employees.

I. Moving Expenses


Moving expense procedures have been expanded to include third-party payments directly to the moving company. The procedures are as follows:
1. A purchase order is processed for the moving company in the usual manner.
2. Moving expense claims must be submitted on a separated batch list clearly marked "Moving Expense" in the upper right hand corner of the CO-19 Batch Header.
3. Process the CO-17, Vendor Invoice, for payment. Attach IRS form 4782-Moving Expenses. This form must contain the following information in addition to information already contained on the form: Employee Number, Social Security Number and Payroll Unit Level 2 Code.
Failure to provide form 4782 or additional information will result in a disallowance of the claim.
4. The data will be processed internally within the Comptroller's Office and the moving expense information will be added to the employee's pay stub in the year-to-date column and the W-2 at year end.


A new Employee Voucher - Addendum, CO-17XP-A, has been developed based on agency responses to Memorandum No. 91-48a (see copy attached).
Please complete all applicable blocks. The following is a clarification of the information required for the mentioned categories:
The column titled "1. Partial Day" is to be used only for conferences, meeting, etc., that are less than one day. The column titled "2. Full Day" is to be used for all travel exceeding one day. For example, an employee travels for three and a half days, write 3.50.
Category 2 titled "Meal Rate - Total Meals Claimed" - Fill in amount from CO-17XP block #14 "Meals".
Category 7 titled "State Per Diem Claimed" - Add lines one (1) through six (6) to arrive at total amount.
Category 8 titled "Federal Per Diem Rate" - Enter the applicable federal per diem rate or foreign travel rate. Multiply that rate by the number of full and/or partial days of travel. For a partial day, multiply the rate by one (1).
Category 9 titled "Excess of Per Diem Rate" - Subtract the amount on Line 8 (Federal Per Diem Rate) from Line 7 (State Per Diem Claimed). If the amount is zero, the amount on Line 7 is paid through Accounts Payable. If more than zero, that amount carries forward.
Category 10 titled "Undocumented Lump Sum" - The undocumented lump sum is reportable income and must be paid through payroll.
Category 11 titled "Amount to be Paid on Payroll" - Add the amounts on Line 9 (Excess of Per Diem Rate) and Line 10 (Undocumented Lump Sum), if applicable, to determine the total amount to be paid through payroll.
The bottom section has been added for payroll coding, to aid those agencies using the form as a transmittal sheet to their payroll office.
Please Note: The Co-17XP-A, Employee Voucher - Addendum, is not available at Moore Business Forms and is to be photocopied until further notice.



Any payment that is made through the payroll system, except moving expense payments, should be coded to an 01 major. This includes payments made out to 9916, Tuition and Training Appropriation, funds.
New character and major object codes were established and issued in Memorandum No. 91-48a. Any payments made to employees not included in the definitions should be charges to the coding currently used for salaries. For example, graduate students, student labor, temporary employees, contractual employees, employees in other retirement systems, etc.



Memorandum 91-48a paragraph two should have read as follows:
All allowances/payments subject to FICA withholding are also subject to retirement contributions, except allowance/payments made to members of the Teachers' Retirement System, Judges and Compensation Commissioners Retirement System, the State Attorney's Retirement System or the Public Defender's retirement System. Allowance/payment made to a member of any one of these four retirement systems are not subject to retirement contributions.



If at any time an adjustment must be made to an employee's payroll check, the current procedure must be followed. The details are outlined below.
1. Form COP-9, Payroll Check Cancellation Form, must be completed. Be sure to include the D/OE Code in the "Gross Pay" block and in the "Reason for Cancellation" block. If multiple D/OE Codes are involved, each code and the applicable dollar amount for each must be listed.
2. A copy of the CO-39, Deposit Slip, must be attached to the COP-9 form.
3. Form CO-19A, Expenditure Certificate, and the CO-678, Detailed Analysis, must be completed and submitted to Payroll Services.



Questions may be directed to the Office of the State Comptroller as follows:
Payroll Procedures:
Forms and On-line: Payroll Services, 702-3463;
Remote Job Entry: Information Technology, 702-3600.
Accounts Payable Procedures:
Accounts Payable Division, 702-3399.
Retirement and Benefit Services, 702-3481.
Character and Major Object Coding:
Accounting Services, 702-3380.
Memorandum Interpretation:
Policy Services, 702-3443.




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