ISRS Accounting Procedure:
Employee Auxiliary Payroll & Business Expenses
Updated 4/21/15
Purpose of this Procedure
To provide guidance for establishing a cash balance and
recording bi-weekly auxiliary payroll & business expenses.
All payroll is paid with a state warrant, but the auxiliary
payroll expense will be posted to a local cost center.
Colleges and universities must move cash from their local
bank to the State Treasury Clearing Account (CLR
appropriation) to cover the cost of local payroll. To
prevent the cash balance of the CLR appropriation from
going negative, a one-time cash advance from the local
bank or GEN appropriation should be processed in the
amount of an average bi-weekly local payroll.
When posting payroll, SCUPPS recognizes cost centers that
are in local banks. Instead of debiting expense and
crediting cash, it debits expense in the local cost center and
credits Payroll Clearing Cash - Object Code 8199 - in the
associated general ledger. General ledger expense
vouchers (EG) must be entered to the local accounts and
cash receipt transactions to the CLR appropriation account
to move cash to the State Treasury bank on a biweekly
basis to replenish the payroll clearing appropriation.
Establish a Permanent Cash Balance in
Payroll Clearing (CLR) Appropriation
Each college and university should examine prior auxiliary
payroll periods and establish a permanent cash balance
amount in CLR that would allow for one payroll period to
be processed without payroll clearing appropriation going
negative.
The cash can be moved via the Transfer of Funds screen in
web accounting. Select “Loans” as the category of transfer
so that a loan receivable and loan payable will be created
in the appropriate ISRS cost centers. If the transfer of cash
will occur between the local and state treasury bank
accounts, the Interfund Accrual (AC0460CB) process will
need to be run for the “AC” module to complete the
movement of cash.
Moving cash from the local bank to cover
payroll posted to CLR appropriation.
After the SWIFT Daily Interface on payday Friday, cash
needs to be moved from the local bank account to cover
the payroll and business expenses that posted to CLR.
First determine the amount of payroll that posted from the
bi-weekly Payroll Posting Audit Trail, Infopac (Document
Direct) report HP2280. The report is generated from OnDemand Reports in SEMA4.
Then process a positive ‘N’ flag CP transaction in that
amount to a CLR cost center using the General Receipt by
CC screen (AR2207UG). The amount of this transaction
will be swept out of the local bank and into the state
treasury.
DR/CR
Object Code
Name
Dr
8110
Cash
Cr
9851
Agency Fund Receipts-Clearing
Record the payroll expenses that posted to
CLR appropriation.
Payroll and business expenses will post to SWIFT and to
payroll clearing cash object code 8199 in ISRS. Cash in the
ISRS CLR general ledger then needs to be reduced by the
amount of payroll and business expense for the pay period
from the bi-weekly Payroll Posting Audit Trail, Infopac
(Document Direct) report HP2280.
Process a negative ‘Y’ flag cash receipt (CP) transaction in a
CLR cost center to record the reduction in cash on General
Receipt by CC screen (AR2207UG). The transaction
amount must match the amount of the ‘N’ flag receipt.
DR/CR
Object Code
Name
Dr
9851
Agency Fund Receipts-Clearing
Cr
8110
Cash
After this entry, cash in CLR should be back to the
permanent cash amount established in the prior section of
this procedure.
Record the cash reduction to the local
bank general ledgers.
Process a GL Expense Voucher transaction to debit Payroll
Clearing Cash object code 8199 in the local GLs to which
payroll and business expenses has posted. The expense
voucher amount must match the ‘N’ flag cash receipt that
was moved to CLR.
DR/CR
Object Code
Name
Dr
8199
PR Clearing Cash
Cr
8110
Cash
Additional processing after payroll posting
Payroll clearing CLR business expenses do not
automatically post to 8199 for local GLs on the Monday
following payday. They must be charged to the appropriate
local cost center using the Business Expense screen in the
web accounting application.
If any payroll expenses are posted to CLR default cost
center 000126 in ISRS following payroll posting, they will
temporarily reduce the 8110 cash balance in the CLR
general ledger rather than post to the 8199 balance in the
local cost centers. Expenses posted in payroll default can
be identified by running the Projected Salary/Ben vs
Budget Report (HR2240CP) for cost center 000126.
Payroll default cost centers should be cleared out as soon
as possible through payroll reconciling by Payroll and
Human Resources staff to ensure the expenses are posted
to the proper cost centers.
Reconciling CLR Cash and Local Payroll
Cash
The Payroll Clearing process should be reconciled biweekly. SWIFT CLR cash, ISRS CLR cash, and ISRS Payroll
clearing cash object code 8199 balances should match
when there are no expenses in CLR payroll default and
business expenses are processed timely.
The SWIFT to ISRS reconciliation for CLR appropriation
must be reconciled quarterly and certified with other State
appropriations as part of the CFO Certification for
Financial Health and Compliance Indicators.
If you have questions or comments please contact Campus
Assistance unit for additional information.