| 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. |
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