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Systemwide accounting procedures

Accounting Integrated Statewide Record System procedures

Employee 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) to cover the cost of 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, prior to payroll being posted to MAPS.

Payroll Clearing Accounting Entries

1. Prior to the MAPS Daily Interface on payday Friday, cash needs to be moved from the local bank account to cover the payroll and business expenses that will post to CLR.
   1. Estimate the amount of payroll (including fringe) & business expense that will be posting.
   2. Process an EG transaction to increase Payroll Clearing Cash object code 8199 in the local GLs to which payroll and business expenses will post.

      EG

      DR		8199		PR clearing cash
      	CR		8110	Cash

   3. Process a positive N flag CP transaction to a CLR cost center in state treasury bank 01. The amount of this transaction will be swept out of the local bank into the state treasury.

      CP

      DR		8110		Cash
      	CR		9851	Agency Fund Receipts - Payroll Clearing

2. Payroll and business expenses will post to cash in MAPS but 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.
   1. Determine the amount of CLR payroll and business expenses from the bi-weekly Payroll Posting Audit Trail, Infopac (Document Direct) report HP2280.
   2. Process a negative Y flag CP to the CLR cost center.

      CP

      DR		9851		Agency Fund Receipts - Payroll Clearing
      	CR		8110	Cash

Note: Business expenses do not automatically post to 8199 on the Monday following payday. They must be charged to the appropriate local cost center on the HR0500UG (Business Expense) and HR0502UG (Business Expense FICA) screens.

Reconciling CLR cash and Local Payroll Clearing Cash

The Payroll Clearing process should be reconciled bi-weekly. MAPS CLR cash, ISRS CLR cash, and ISRS Payroll clearing cash object code 8199 balances should match.

Step 1: Collect data to determine the current reconciling difference.

• Run query "#1 - MAPS Cash Balance" for your MAPS org number (Inst ID) and the current reporting month number (i.e., 200805 for May 2008). The results are the MAPS cash balances as of the most recent MAPS interface timestamp.
• Double click "#2 - MnSCU CLR 8110 balance" for a list of GLs with current cash balances in ISRS.
• Double click "#3 - MnSCU 8199 balances" for a list of GLs with balances in 8199.
• Double click "#4 - Payroll Default CC balance" for the current cash balance of the CLR Payroll Default cost center # 000126. When the default errors are fixed, cash will be increased in the default cost center and 8199 will be credited in the proper local general ledger. Add the total amount from the query to the current 8199 balances obtained from query #3 and subtract it from the MnSCU CLR 8110 balance.
• Double click "#5 - Unposted Business Expenses" for the total of business expenses waiting to be posted on the HR0500UG and HR0502UG screens. Subtract this amount from the MnSCU 8199 balance.

If the adjusted MAPS cash, MnSCU cash, and Payroll Clearing Cash balances are equal, then the process is reconciled. If not, go to step two.

Step 2: Collect transaction details since the last time the process was reconciled. Open the query in design view to ask for the transactions with proc timestamps after the date of the last reconciliation.

• Use query "#6 - Detail: MnSCU CLR N & Y flag transactions" to get the N and Y flag CPs hitting CLR in ISRS.
• Use query "#7 - Detail: MnSCU GL 8199 transactions" to get the transactions hitting 8199 and a local bank GL in ISRS.
• Use query "#8 - Detail: MAPS CLR expenditures" to get the PR transactions hitting the expenditure table in MAPS.

Step 3: Identify any discrepancies in the entries for each pay period.

• The amount of the EG to 8199 in the local accounts should equal the amount of the positive N flag CPs entered to 9851 in the CLR cost center.
• The amount of the negative Y flag CP should equal the total amount of expenditures posting to MAPS.

If you have questions or comments please email us (accounting@so.mnscu.edu), refer to the staff directory link at the top of this page or contact your Campus Assistance contact for additional information.

Last reviewed on 8/2/07