STATE OF CONNECTICUT
NANCY WYMAN COMPTROLLER	OFFICE OF THE STATE COMPTROLLER 55 ELM STREET HARTFORD, CONNECTICUT 06106-1775	MARK OJAKIAN DEPUTY COMPTROLLER

COMPTROLLER'S MEMORANDUM NO. 97 - 57

October 21, 1997

TO THE HEADS OF ALL STATE AGENCIES

1. PURPOSE
   The purpose of this memorandum is to advise State agencies of a change in the method of processing non-reportable employee reimbursements.

2. GENERAL INFORMATION
   After November 28, 1997, the Comptroller's Accounts Payable Division will no longer process reimbursement claims from agency funds. All employee reimbursements from agency funds will be paid as a payroll item through the Comptroller's Payroll Services Division effective with the payroll period December 5, 1997 through December 18, 1997 (check date January 2, 1998). Any reimbursement claims from December 1, 1997 through December 4, 1997 must be held until the December 5, 1997 pay period. The Accounts Payable Division will continue to process employee reimbursements from the 9916 Tuition and Training Fund.

   The non-reportable portion of an employee's reimbursement is not subject to any Federal or State withholding tax, FICA, Retirement Contributions or Wage Executions.

3. FORM
   To facilitate the processing of all employee reimbursements from agency funds, a new form CO 17XP-PR has been created to accommodate the way reimbursements will be processed. Minor changes have been made to the current form CO 17XP-A which should be used as a worksheet to complete the CO 17XP-PR. Please discard copies of the obsolete CO 17XP-A forms. These forms are now available, and agencies can order them through the Statewide Forms contract with Vanguard, Inc.

   The present CO 17XP and the revised CO 17XP-A will be used for the processing of payments from the 9916 funds. Agencies must continue processing vendor profile form CO-1055 under existing procedures.

4. REPORTABLE REIMBURSEMENTS
   Reportable employee reimbursement procedures from agency funds will remain as stated in prior Memoranda 91-48a and 91-48b. Please use the new forms to process these reimbursements. The procedure for reportable reimbursements from 9916 will remain unchanged and these reportable reimbursements will be submitted for payment on the CO 17XP.

   Reportability determination should be made in accordance with the guidelines set forth in the above Memoranda and Internal Revenue Code (IRC) Section 1.62-2T addressing "Employee Business Expenses - Reporting and Withholding on Employee Business Expense Reimbursements and Allowances."

5. PETTY CASH ADVANCES
   This memorandum also promulgates a new method for the replenishment of agency Petty Cash Funds for advances given to the employee before the actual expenditure. When the agency reimburses an employee for an expenditure for which a Petty Cash Advance was given, the agency will recover the advance on the same payroll as the reimbursement.

6. PAYMENT AND RECOVERY PROCEDURES
   All employee reimbursements both reportable and non-reportable from agency funds, as listed below, must be paid through Payroll Services effective with the pay period beginning December 5, 1997. It is the responsibility of each State agency to develop internal control procedures between its Accounts Payable and Payroll functions to transmit the applicable information in a timely manner. Please read the following instructions carefully and complete the CO 17XP-PR form.

   Since subject payments will be processed on payroll, the charges will reduce the unencumbered balance of the appropriation. Therefore, no commitments are necessary for these reimbursements.

   1. Business Expenses

      The following are the most commonly used major/minor codes. Please refer to the State Accounting Manual for additional codes.

   Item	Trans Cde	D/OE	SID	Major/Minor
   Safety Shoe	R1	1E	0001	01230
   Clothing & Cleaning	R1	1F	0001	01230
   Home Off.	R1	1G	0001	01230
   Uniform	R1	1H	0001	01230
   Daily Auto Usage Fee	R1	1L	0001	01230
   Reportable Reimburse	R1	1M	0001	01230
   Grant Payment	R1	1N	0001
   Moving Exp.	R1	1P	0002	05360
   Attendance Awards	R1	1R	0001
   Child Care	R1	1S	0001
   Non-Reportable Tuition	R1	1T	0002	05100
   Reportable Mileage	R1	1V	0002	02630
   Day Care Payment	R1	1W	0001
   Reportable Tuition	R1	2G	0002
   Non-Reportable Reimburse	R1	2Y	0002	02610 in state 02620 out of state
   Non-Reportable Mileage	R1	2Z	0002	02630

   1. On-line - Screen 381 or 382, R1, amount, D/OE, appropriate accounting string.

   2. Remote Job Entry - ZT Transaction: Same as above.

2. Petty Cash Advance Recovery

To recover a Petty Cash Advance use D/OE 83 and complete the applicable sections on the CO 17XP-PR form. It is the agency's responsibility to ensure that the employee signs the form indicating receipt of the Petty Cash Advance and authorizing recovery of the same from his/her paycheck.

A check will be returned to the agency with the same payroll as the reimbursement is made to the employee. The agency must deposit this check to the agency Petty Cash Account. This transaction does not require a COP-9.

1. On-line - Screen 170 - 187, RK Transaction as described on the CO 17XP-PR.

2. Remote Job Entry - RK Transaction: Same as above

7. SUPERSEDENCE
   This memorandum supersedes the Expenditure Batch List Section of the State Accounting Manual pertaining to Employee Reimbursements. The section will be updated in the next revision of the manual.

8. GENERAL
   Questions may be directed to the Office of the State Comptroller as follows:

   Payroll Procedures:
   On-line: Payroll Services Division, (860) 702-3463
   Remote Job Entry: Payroll Services Division, (860) 702-3462

   Character and Major Object Coding: Accounting Services Division, (860) 702-3380

   9916 Tuition and Training Payments:
   Accounts Payable Division, (860) 702-3400
   Comptroller's Business Office, (860) 702-3334

   Memorandum Interpretation: Policy Services Division, (860) 702-3436

NANCY WYMAN
STATE COMPTROLLER

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