CAR Newsletter - May 2016

Newsletter Archive | Statewide Accounting Manual | Forms | State Comptroller

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CFO Roundtable

Business Meeting

The State Comptroller will be hosting a roundtable for agency CFOs from 1:30 to 4 p.m. on June 6.  An e-mail detailing this event was sent to all agency Chief Financial Officers on May 3.  If you are the primary financial officer of your agency and did not receive the e-mail, please contact Stephanie Brown at 405-521-6366 or 


Deceased Employee Payroll Processing, Reporting

The OMES Form DER, Deceased Employee Reporting, is required to be completed by agencies when an employee dies and payments are made after the date of death. The form is on the OMES website under DCAR Forms. Once completed, please send the form to OMES/DCAR payroll, attention Beth Brox or Jean Hayes.  Please complete and submit the form after the employee payments have processed so that year-end reporting will be correct.

For procedures on processing payroll after the death of employee, the HCM how-to document titled ‘Payroll Processing for Death of an Employee’ is on the Business Application Services (formerly EBS/CORE) website under HCM’s Module News for ‘How-to Documents’. 

NOTE: Please remember to update the date of death on the HR Personal Data Record, update Job Data for a termination with the reason code ‘SO4’ (deceased), and terminate the employee’s direct deposit banks will return direct deposits for deceased customers.  A return of an item will cause a delay to the individual receiving the payment.

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Outstanding Wages Beneficiary Designation Option

40 O.S. § 165.3a, allows employers to provide employees the option of designating a beneficiary for wages and benefits payable upon an employee’s death. There is no requirement for an employer to allow employees to select beneficiaries, but agencies may want to consider adopting a policy which allows employees to designate a beneficiary. Providing the option to employees relieves stress and anxiety on the family members after the death of the employee. Also, agencies would have clear guidance on who is to receive final wage payments and avoid any potential difficulties.

This statute does not include any longevity payment that may be due as of the date of death of an employee. 74, O.S. § 840-2.18, subsection H.2, authorizes any longevity payment to be paid to the decedent’s surviving spouse, or if there is no surviving spouse, to the decedent’s estate.

The Human Capital Management Division of OMES has developed a standardized Outstanding Wage Beneficiary form for agency use.  OMES – FORM HCM 016 (Revised 04/20/15) is available on the HCM website.

Although it is not mandatory to use the OMES – FORM HCM 016, agencies are advised to include all the data elements found in the standardized form in any internally developed form.

For more information or sample forms and instructions, please contact Lisa Raihl at 405-521-3258, or Jean Hayes at 405-522-6300,

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Payroll Processed before a Reversal is Completed

The recommended best practice is that a replacement payroll warrant should not be processed until the incorrect warrant has been reversed. Processing another payroll before the desired reversal is complete may cause balance issues for social security, medicare and unemployment wages and taxes. Additionally, completing the reversal first allows reversed time to either be processed through payroll again, or if needed, time can be corrected and then processed again. If time entered was invalid or incorrect and should not be pulled into payroll again, it should be corrected on the timesheet and processed through Time Administration.  

If an agency chooses to run a payroll before the reversal is complete, the agency is responsible for verifying the Social Security, Medicare and unemployment wages and taxes are correct on the replacement payroll warrant. The amounts should be manually calculated, as if the reversal had been completed, and verified to the system calculated amounts. If different, please contact the OMES service desk and an EBS team member will assist you.

The agency is also responsible for going to the time sheet and removing the time that processed back through payroll when a replacement check was processed before a reversal was completed. When a payroll check that had time pulled in from Time and Labor is reversed, the reversal creates offset payable time with status “Reversed” and an additional row in payable time with “Estimated” status when the check reversal is confirmed. The “Estimated” payable time will be pulled into payroll again when payroll is processed if not removed, which may cause an overpayment. 

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Payroll Stat Cancelled Warrants Not Eligible for Reissue

Agencies need to review the PS Financials Payroll 36 Month Statutory Cancellation Report on a regular basis. If there is a payroll warrant listed and the employee is entitled to the funds, please complete the OMES Form 20R and send to Transaction Processing.  This will allow a replacement warrant to be issued to provide the employees their due pay.

If a payroll warrant is listed and the employee is not entitled to the funds, the issuing agency must notify OMES (62 O.S. § 34.80). Notification should include the employee name, warrant number, warrant date, and amount.  The notification must be signed by an agency approving authority. Please send notification to Transaction Processing stating that the warrant should not be reissued. In addition, the amounts must be removed from the employee’s earning record. Please contact Lisa Raihl at 405-521-3258, or Jean Hayes at 405-522-6300, to have this completed.

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Travel Reimbursement Legislation

Three pieces of legislation that affect travel reimbursements were recently signed by the Governor (HB 2435, HB 2619, and HB 2704).   Over the next few months, the Statewide Accounting Manual will be updated.  Until that time, this article presents the procedures that will be enforced in regards to the new legislation.  The statutes and policy changes are effective Nov. 1, 2016.  Until that day, we will accept travel claims either way.

  • Travel claims and vouchers may now cover more than 30 days.  However one claim cannot cover more than one fiscal year.
  • OMES will publish a schedule of mileage rates prior to Nov. 1.  At that time, all references to the IRS reimbursement rates in the Statewide Accounting Manual will become obsolete and all employees should rely only on the rates published by OMES.
  • Rather than using map mileage for travel between cities and vicinity miles within a locality, the traveler must track actual business miles based on a recognized GPS system.  Travelers must document actual mileage to each location travelled and attach documentation to the travel claim.  As OMES audits travel claims the mileage submitted will be compared to available GPS models such as MapQuest or Google Maps for reasonableness.  We recognize that in some rural areas an actual GPS is not available and that occasionally minor detours are necessary.  Actual miles per the odometer will suffice as long as no personal miles are included, every travel point is documented, and the mileage is reasonably comparable to GPS models used in the audits.

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Statewide P-Card and Travel Office Program Has Relocated

The Statewide P-Card and Travel Office program has moved from Central Purchasing to Central Accounting and Reporting. There is no change in the contact information for this department.

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FY 17 P-Card Authority Orders

All FY17 P-Card Authority Orders must be set up prior to July 1, 2016, to ensure continued usage of the P-cards.  For any questions, contact the P-card team at

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Contracting for Legal Services

This article supersedes 40.90.03 in the Statewide Accounting Manual.  Contracts for legal representation by state agencies under the executive branch must be approved and/or received by the Office of the State Attorney General (74 O.S. § 20i).  In addition, as professional services, these contracts will be subject to submission in accordance with the Oklahoma Central Purchasing Act and the promulgated rules of the Central Purchasing Division of the Office of Management and Enterprise Services.  When an agency’s approving officer signs a voucher, he or she is stating that the purchase is in compliance with the state’s purchasing laws, including 74 O.S. § 20i.  The AG’s office will be provided a list of payments for legal services in order to monitor compliance with 74 O.S. § 20i.

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Tax Abatement Disclosures

GASB Statement 77 requires that certain information about tax abatement agreements be disclosed in the state’s CAFR.  This includes agreements entered into by the state as well as agreements entered into by other governments, such as cities or counties if the state is a party to that agreement in some fashion.  For example, if the city offers a tax abatement for economic development but the state has agreed to build a road as a part of the overall agreement, there are disclosures that must be made.  DCAR is currently in the process of determining which agencies may have something to include in this disclosure.   If your agency has any involvement in agreements for economic development, in which a tax abatement may be a part of that agreement contact Matt Clarkson at 405-521-2759 or

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Restricted use of the 789 class funding

When monitoring the 789 fund, we are looking to see if any institution has keyed deposits or transfers taking money from the clearing account into the 789 fund.  As discussed in the webinar trainings, the only things that should hit the 789 fund are:

  1. PFT funding the payroll claim,
  2. Vouchers disbursing those funds to the appropriate vendor or employee,
  3. PFT reversals and adjustments, or
  4. Journal entries the federal tax payments.

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Proper use of 789 class funding

Money for tax withholdings and other items that are processed with payroll should be left in the 789 class funding and paid to the appropriate vendor from there.  If an amount in the 789 is for something like a self-insurance premium or another deduction for which the university is the appropriate vendor, it would be appropriate to write a voucher to the university.  Otherwise, the payment should be made to the end recipient (Oklahoma Tax Commission, Teachers Retirement System, credit unions, supplemental insurance providers, garnishment vendors, child support, etc).

The 789 fund was set up to allow for reconciliation of payroll expenditures.  If it is used appropriately, you should be able to easily determine who has or has not been paid.  Once you begin processing payments to your institution for the withholdings and state shares, the reconciliation of future payments from the 700 fund becomes much more difficult and we would be unable to help you reconcile should you have problems with not having enough money in the 789.

Writing a check to the university to disburse from a 700 fund is not appropriate.  This act inflates your expenditures.  When reviewing an institution’s budget and expenditures, the 789 fund should be considered an imprest type of account that does not actually have expenditures.

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Volume 26, Number 11
Fiscal Year-2016
May 6, 2016

In This Issue ...


OKFMA Next Quarterly Meeting

Mark your calendars for the next Oklahoma Financial Managers Association quarterly meeting will be on Thursday, July 21.  This seminar is provided free of charge.  To ensure an adequate number of training materials and refreshments are available, please register at:

Date:   July 21, 2016
Time:   1:30 to 4 p.m.
Place:   Business Conference Center Auditorium
MetroTech Springlake Campus
1900 Springlake Drive
Oklahoma City, OK

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Payroll Law 2016

Presented by Fred Pryor Seminars

Lawton, OK – June 21, 2016

Oklahoma City, OK – June 22, 2016

Enid, OK – June 23, 2016

Tulsa, OK – June 24, 2016

1-Day Seminar cost - $149

For groups of 5 or more - $139 each

For more information, please visit their website and select a location.

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16th Annual Oklahoma Payroll Conference

Presented by the Oklahoma City and Northeastern Oklahoma Chapters of the American Payroll Association 

Friday, Sept. 9, 2016

Moore Norman Technology Center
South Pennsylvania Campus
13301 S Pennsylvania, OKC, OK


$90 Before July 1, 2016
$115 July 1 – Aug. 20, 2016
$150 After Aug. 20, 2016

Please click here for the registration form or for more information, please visit their website.

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State Comptroller:
Lynne Bajema, CPA

Deputy State Comptroller:
Steve Funck, CPA

Jennie Pratt, CPA, CGFM

General Ledger:
Dan Thomason, CPA

Lisa Raihl, CPA

Transaction Processing:
Steve Wilson

Payroll Processing:
Elsa Kunnel

AP Manager:
Patricia Garcia, CPA, CGFM

ISD Finance:
Cathy Menefee, CPA, CGFM

Vendor Maintenance:
Victoria Baker

OMES Service Desk:
(PeopleSoft questions)

Financial Reporting Unit:
Matt Clarkson, CPA

Steven Hawkins, CGFM

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