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New York State Accounting System User Procedures Manual

Volume Name
CONTROLS AND SPECIAL PROCEDURES
Volume
XI
Date
10/25/04
Section Name
Advance Accounts - Establishment
Section
4.0210
 

STATUTORY AUTHORITY

          Section 115 of the State Finance Law, as amended by Chapter 46, Laws of 1981, authorizes the establishment of advance accounts and directs that the money shall be used in accordance with such rules as shall be prescribed by the State Comptroller.

BANK ACCOUNT

          Before an advance is issued, permission to establish a bank account must be obtained from OSC, Division of Pension Investment and Cash Management. An agency must request the establishment of such an account in writing. Each request must be approved by the chief fiscal officer of the requesting department or by a designee. Details for establishing a bank account are explained in Section 4.0110 of this manual.

          A consolidated bank account for all advance accounts (except there listed in Section 4.0500), in the name of the agency, titled "Agency Advance Account", will be established in a bank designated by OSC. The initial advance check and all reimbursement checks will be made payable to (Agency Name), Agency Advance Account and will be deposited in the designated bank. Accounting for a consolidated bank account is explained in Section 4.0220.

          The custodian of the account will be bonded by a blanket fidelity bond which covers all employees of State agencies. 

INITIAL ADVANCE

          The initial request for an advance is made on the AC874-Cash Advance Voucher signed by the finance officer of the agency requesting the advance. OSC forms may be obtained by calling the OSC Service Desk (518) 474-3438. Both the OSC and the Accounts copy of the AC 874 should be submitted to OSC, along with a Batch Transmittal (AC 2387). The batch type code "VCA" must be used on the Batch Transmittal. Justification for an initial advance or increasing an existing advance must be included either on the AC 874, or on an attached letter. The justification for the amount requested may include, but is not limited to, the following information.

1. A six month analysis of vouchers previously paid by OSC which could have been paid from a cash advance account if it were in existence at the time. For example:

  • Number of vouchers and total dollar value of

vendor claims paid under $250.

  • Number of dollar value of employee travel reimbursements.
  • Confidential investigation payments.
  • Other special purchase payments.

2. Other sample information pertinent to the request.

  • New facility opening
  • Expanded bookstore operations
  • Expanded out-of-town audits


OBJECT CODES USED TO ESTABLISH, INCREASE OR REDUCE CASH ADVANCES

TYPE OF ACCOUNT

OBJECT

(OTHER THAN FUND 001)

OBJECT (FUND 001)
Petty Cash
59120
69981
Travel
59130
69982
Confidential
59140
69983
Payroll
41910
69984
All Others
59150
69985

 

       These object codes cannot be used to reimburse an advance and will cause the reimbursement voucher to reject. Agencies should enter on reimbursement vouchers the expenditure object codes which reflect what was purchased. For example, a petty cash purchase of office supplies should be charged to object 53660 on the reimbursement voucher.

      All initial cash advances are established as accounts receivable records in the CAS using subledger code numbers.  The subledger code is an eleven digit number assigned when the initial cash advance is issued.  The first five digits contain the agency number, the next three digits are zero filled and the next three are assigned numerically beginning with 101 by the type of advance, e.g. petty cash, travel or special.

      All documents increasing or decreasing a permanent advance (not reimbursements) must be processed through the Revenue Processing Unit at 110 State St. and must reference this subledger number.

REFERENCES

         Additional information on the preparation of an AC874 to establish an advance can be found in User Procedure Manual, Volume III, Encumbrances and Expenditures, Section 4.1407.