COMPTROLLER'S SEAL STATE OF CONNECTICUT

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

ATTENTION: Chief Administrative and Fiscal Officers, Business Managers, and
Payroll and Personnel Officers
SUBJECT: Payment of Non-Reportable Employee Reimbursements
  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 CdeD/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 000202630
    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.

  7. 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

  1. 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.

  2. 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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