|Date Issued:||3/7/2007||Date Last Updated:||3/7/2007|
|Bulletin Name:||New Personal Service Expenditure Objects|
To notify agencies of new personal service object codes that are needed to comply with recent legislation requiring greater itemization of State Operations appropriations. These needed changes primarily affect personal service expenditures for Holiday and Overtime payments.
The 2007-08 Executive Budget appropriation bills include a new, more detailed presentation of non-Federal State Operations appropriations. This change was needed to conform to section 24 of the State Finance Law as recently amended by Chapter 1 of the Laws of 2007 (the Budget Reform statute).
Since it is assumed that the appropriations will be enacted in this form, the new level of detail in bill copy must also be reflected in the Central Accounting System, Budget Certificates, and agency payroll/financial systems.
The Office of the State Comptroller (OSC) has reviewed the current object codes file structure (used for the classification of expenditures) and determined that changes are necessary in the personal service classification category to accommodate new appropriation accounting requirements for each item of personal services appropriations - as reflected in the Executive Budget bills.
|New Personal Service Expenditure Objects:||
Effective immediately, the Accounting Codes File has been amended to incorporate needed changes to comply with the above noted Budget Reform statute and related appropriation acts.
|Payroll Appropriations :||
Beginning with the 2007 appropriations, separate appropriation control records will be established to account for:
At the time of this writing, OSC’s Bureau of Payroll Services is examining needed changes to the statewide payroll system so that payroll earnings codes are associated with the new personal service objects for Holiday and Overtime pay. In the event that programming changes are not completed by April 1 st, payroll charges against 2007-08 will not (initially) be posted to the correct appropriation line. Therefore, it may be necessary for agencies to process journal transfers to transfer Overtime and Holiday Pay within the 2007 appropriations to the new PS objects. Additional information will be communicated to State agencies once testing is completed and an implementation date is determined.
Accounting Bulletin A-573 provides direction on the procedures for splitting the first payroll in April between 2006 and 2007 appropriations. As noted above, the split payroll will charge current object codes for both 2006 and 2007. Agencies should process journal transfers to transfer Overtime and Holiday Pay within the 2007 appropriations to the new PS objects.
OSC recognizes that many agencies rely on journal transfer adjustments during the lapse period in order to do cost allocations of prior year expenditures. Since these transactions affect prior year appropriation records not affected by the Budget Reform statute, the current objects of personal service expenditures will remain in force thru the end of the statutorily defined agency ‘lapsing period’. However, these expenditure objects may not be used to record personal service expenditures against SFY 2007-08 appropriation records, including reappropriations.
Please contact the Bureau of Accounting Operations-Appropriation Section at (518) 474-4023 or your appropriation account representative for assistance.