This section provides the procedures for, and limitations
to, making personal service payments to an employee from
a cash advance account. The payment to an employee for
personal services is not intended to supersede normal
State payroll procedures but is to provide a means to
pay an employee for actual time worked where an undue
hardship would result,
PERSONAL SERVICES PAYMENTS TO EMPLOYEES AND LIMITATION
service payments are allowed for employees only.
They must be (a) for an initial payment to a new employee
or (b) to employees already on the payroll.
- The advance cannot be in an amount greater than
the estimated 'net' salary.
- Under no circumstances should salary advances
be made to individuals on a recurring basis to
expedite the payroll process or for minor changes
in the individual’s biweekly earnings.
- Employees who are on an agency’s payroll,
but because of absences in excess of available leave
credits or for other reasons are not entitled to a full
biweekly salary check, may be paid on the normal pay
day for the time actually worked.
SALARY CHECK EXCHANGE OR
It is not
always necessary to exchange an employee's check for
unauthorized absences. The adjustment may be made in
the following pay period. Refer to the Agency Payroll
Manual, Chapter E, Report of Check Returned for Refund
or Exchange for instructions on check refunds.
The procedure to replace a salary
check for a lesser amount is as follows:
1) The agency's
payroll office initiates the Report of Check Returned
for Refund or Exchange (AC230), and forwards it to
the fiscal officer.
2) The agency
fiscal officer or authorized custodian of the advance
account draws a check payable to the employee for
the amount due the employee, as shown on the AC 230.
The payment to the employee from the cash advance
account must be documented by a copy of the AC 230
and signed by the employee receiving the check. This
can be done in the "Remarks" section with
a notation "Petty Cash Check Received".
The disbursing officer must note on the AC 230 the
date and check number to further cross reference and
document the disbursement.
on the AC230, as the Name of Payee for the
exchange check, "(Name of Agency), Advance Account".
This will enable the advance account to be reimbursed
by a check to be issued by OSC. This check will be
issued by OSC upon receipt of the AC 230 as described
in the Payroll Manual.
4) The custodian
of the advance account should retain a copy of the
AC 230 to document the disbursement from the account.
The advance account will then be reimbursed by a check
issued to the agency by OSC through its payroll exchange
account. Upon receipt of the check from OSC, the custodian
of the account should promptly deposit the check to
the advance account, noting receipt of the check on
the copy of the AC230 that was retained. This should
then be filed for historical and audit purposes.
procedure cannot be used in cases of termination,
or to exchange checks because of death.
A CASH ADVANCE ACCOUNT
In order to make personal service payments, a advance
account must either be in existence or one must be established
by the agency. Procedures for establishing a advance account
are in Section 4.0210 of this manual.
VERIFICATION BY AUDIT
The operation of the advance account, including partial
payment and exchange procedures, should be reviewed periodically
by an independent office of the agency. The results of
the review should be made available to the head of the
department, agency or institution, and any exceptions
should be resolved.
Violations of these guidelines may result in the agency
losing the privilege of the entire petty cash account.