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State of ConnecticutCore-CT Project

HRMS / FIN Workshop

July 26, 2004

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Agency Deduction Workshop

• Welcome Mark Bissoni• Purpose Mark Bissoni• Deduction Codes Mark Bissoni• Vendor Setup Mark Bissoni• Employee Deduction Remittance Report Mark Bissoni• Integration Overview Elaine Pelletier• GIRO Deposits Elaine Pelletier• Petty Cash Corrections Elaine Pelletier• Workshop Mark Bissoni

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Purpose

• Define Agency recovery deduction codes (Y & Z)• Associate Agency deduction codes to employees• Associate Agency deduction codes to vendors• Review Vendor Setup• Define the Employee Deduction Remittance Report• Review Payroll Integration to Financials• Coding for GIRO payments • Coding a GIRO that should have been a Petty Cash

Advance Recovery• Identify the agency’s new deduction codes, as

required.

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Agency Recoveries

Agency recoveries from employee’s pay are for: Petty Cash Advances Recovery of State expenses Check / Advice Reversals Online checks

Recoveries are coded as deductions from an employee’s pay

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What are Y and Z Deductions?

Deduction codes for agency recoveries are Yxxx or Zxxx, where xxx is the agency acronym.

• Y Deductions are Agency Recoveries. The dollars associated with the deductions ultimately end up in the Agencies’ AR Business Unit as a GIRO Payment from OSCIP.

• Z Deductions are Agency Recoveries of Petty Cash Advances. The dollars associated with these deductions ultimately end up in your Agency’s Bank Account via ACH.

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Y Deduction Employee Setup

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Z Deduction Employee Setup

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Configuration of Y Deduction (Link to Vendor Code)

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Configuration of Z Deduction (Link to Vendor Code)

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Vendor 28 for Y Deduction (Under Setid OSCIP)

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Vendor 28 for Y Deduction Remit to = OSCM1 - MAIN

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OSCM1 is a separate Vendor under OSCIP

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OSCM1 for Y Deduction MAIN Location

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MAIN Location GIRO Payment

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Vendor 714 for Z Deduction (Under Setid OSCIP)

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Vendor 714 for Z Deduction Remit to = OSCM1 - RPC

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OSCM1 is a separate Vendor under OSCIP

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OSCM1 for Z Deduction RPC Location

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RPC Location - ACH Payment

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Employee Deduction Remittance Report

What is the Employee Deduction Remittance Report?

• It is a hard copy report that is created and distributed to agencies on a bi-weekly basis (as employees are being enrolled in deductions)

• It captures each distinct vendor id, all of the deduction codes reporting to that vendor id, all of the employees who are enrolled in each deduction code (under the distinct vendor id), and the corresponding amount (for each deduction)

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Employee Deduction Remittance Report

• Since agency recovery (Y deductions) and petty cash reimbursements (Z deductions) report to two distinct vendors (as you have seen with vendors 28 + 714) – each agency should be receiving their corresponding reports on a bi-weekly basis

• Payroll folks – please share this report with your financial offices!

Who should I contact if I do not receive a report for a given cycle?

• Contact the Payroll Services Division (860) 702-3453   or (860) 702-3447 

• Please be prepared to provide your vendor id and the check date's needed

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HRMS to Financials Integration - GL

HRMS to GL – files are sent to the Financials’ GL module to record the State’s payroll.

The system sends the following accounting entries:

DR Payroll Expense

DR Fringe Expense

CR Payroll Liabilities

CR Cash – Payroll Net Pay

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HRMS to Financials Integration – GL

These accounting entries are the Generated into Journals. The system process of Journal Generation automatically summarizes all entries by unique chartfield combination.

The Journals are generated by BU. We setup the accounting entries table with the Agency acronym in the BU field so that each agency has a separate GL journal for each payroll.

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HRMS to Financials Integration - AP

HRMS to AP – files are sent to the Financials’ AP module to effect the payment of all deductions from an employee’s pay.

The Vouchers are created in a separate BU - OSCIP.

The vendors for this BU are in a separate Setid - OSCIP

The vouchers are recorded as follows:

DR Payroll Liability

CR AP Liability

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HRMS to Financials Integration - AP

The Pay Cycle that produces the payments for these vouchers is also called OSCIP.

The Pay Cycle produces payments in all formats:ACH - Tax & other Vendors setup to receive ACH CHECK – Vendor payments not by ACHChild Support – Sent to a third-party administratorGIRO – Internal payments

Agency Recoveries Check/Advice Reversals Medical / Health deductions Savings Bond deductions

The Pay Cycle combines payments within OSCIP by Vendor.

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Viewing GIRO Payments from Y Deductions

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What if I made a mistake?

If the payment should have gone to the Agency’s Petty Cash account, the deposit should be directly journalled using the “funds awaiting distribution” coding.

• Fund = 34003• SID = 42350• Account = 20920

• Enter all other required chartfields as normal including Program and Project.

• This allows the Deposit to be recorded and completed in the AR module.

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What if I made a mistake?To actually fund the Petty Cash account, a voucher needs to be

entered. Please refer to the Core-CT Financials Daily Mail dated 2/13/2004 that

contains detail instructions - the following is an excerpt:1. Process a non-PO voucher for Petty Cash Replenishment.

2. Select the Agency Vendor value for your agency for Petty Cash Replenishments.

3. Ensure that you enter Vendor Location - RPC on the Invoice Information Page.

4. Validate the Payment Method is ACH or CHECK, NOT GIRO on the Payments Tab.

5. The coding on the voucher should be the EXACT coding used on the Direct Journal of the Deposit from OSCIP. Do not code the voucher as a normal Petty Cash Replenishment voucher.

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Recording Agency Recoveries

To record a deposit of non-petty cash advances, it must first be determined what the recovery is for.

• Recovery of Lost or Damaged State Property - An expenditure was incurred by the agency due to an employee’s action and the expenditure is to be recovered. The agency initiated the recovery of State funds from an employee.

• Recoveries initiated by Central Payroll:

1) Record an off-cycle, online replacement check

2) To reverse an employee’s original pay check.

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Recovery of Lost or Damaged State Property

• Recording Miscellaneous Recoveries –– A credit to a revenue account –

• Use the budgeted fund, SID 18010, Account 44331

• Refund of Current Year Expenditure – The deposit should be recorded as – A credit to the Expense

• Use the same coding as the original expenditure

• Refund of Prior Year Expenditure – – When the expense was recorded to a continuing

appropriation • Use the same coding as the original expenditure

– When the expense was recorded to a lapsing appropriation • Use Original budgeted fund, SID 18010, Account 44410

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Recoveries initiated by Central Payroll

Agency Recovery deductions (Y deductions) should be included on the form when requesting a replacement check to compensate for the deductions that cannot be reversed (CSE credit union, garnishment(s), or Savings Bonds)

For example, an employee has the following deductions:

Garnishment ($100.00), Savings bond ($100.00) CSE credit union ($100.00) on the original check,

• The replacement check request form should include an agency recovery for the total amount of $300.00 with a description of each of the non-reversible deductions.

• The following is an excerpt from the actual petty cash form capturing the process if an OSC employee had a garnishment, CSE Credit Union, and a Savings Bond deduction:

Deductions: Deduction Code Deduction Description

Deduction Amount

YOSC Agcy Recovery for GARNSH, CUCSE, + SAVBND $ 300.00

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Recoveries initiated by Central Payroll

• A $300.00 voucher will be created to the agency’s Y deduction vendor when a replacement check is issued.

• The original check will then be reversed by Central Payroll.

• During the reversal process, deductions for CSE Credit Union, Garnishment, and Savings Bonds are coded to the agency’s Y deduction, because the original deduction cannot be recaptured from the vendor.

• A -$300.00 voucher will then be created to the agency’s Y deduction vendor. This offsets the Y deduction created in the replacement check process.

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Recoveries initiated by Central Payroll

• Reversals are not always processed in the same pay period as the replacement check.

• The Reversals create the negative deduction vouchers.

• Negative vouchers are not processed unless there are positive vouchers to offset the amounts.

• If the replacement check’s deductions are processed immediately, the reversal will not be processed until there are positive vouchers to offset it.

• Agency recoveries may not appear in AR until the net amount is positive.

• If there is no replacement for one that is reversed, there will only be a negative voucher. The agency must manually recover the money from the employee and notify Central Payroll when the funds are recovered to eliminate the outstanding voucher.

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Questions & Answers

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Agency Deduction Workshop

Core-CT Question: Now that you know what the deduction codes allow and do for you, who wants to set up new deduction codes?

Agency Answer: I do! I do!

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Agency Deduction Workshop

See Nancy Ribes to setup individual Y and Z deductions codes for your agency.

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Agency Deduction Workshop

Thank you for attending today’s presentation.

Your feedback is welcomed.