CAR Newsletter - October 2017

Newsletter Archive | Statewide Accounting Manual | Forms | State Comptroller


Agencies that Received E-mail from System of Award Management

Agencies may receive correspondence from the federal System of Award Management (SAM) regarding a potential offset due to debt owed to the federal government.  While the offset process has been in place for many years, this appears to be a new general notification that is being sent to entities registered with a DUNS number related to the State's federal employment number (FEI).  We are trying to obtain more information from TOP about any change in process and to ask for debt information from September.  CAR receives a report monthly (usually after the 10th) showing all offsets for the prior month.  Those offsets are researched by CAR to assist the agencies effected.

Agencies that do not get money that they are expecting should notify Vivian Day.  Vivian's contact information is or 405-521-6164.


Oklahoma State Treasurer’s Office Alternate Procedures During Capitol Closure on Oct 12-22, 2017

Due to the renovation of the State Capitol, the building will be closed from Friday, Oct. 13 until Monday, Oct. 23, to tenants and visitors.  This will require the Office of the State Treasurer (OST) to relocate services and to adopt the following alternate procedures as reflected below.

October 11, 2017

Capitol Cashier Window:

  • OST Cashier window will be open for business on October 11, 2017 from 8:00am – 12:00pm.
  • State agency personnel can pick up warrants, bring deposits, and cash checks between these hours.
  • State agencies should not drop deposits in the night depository box (located to the right of the cashier window) after 12:00pm.  Deposits that cannot be brought to the Capitol before noon on October 11 may be taken to the Bancfirst location below or held until October 12, 2017.

1111 N Lincoln Blvd
Oklahoma City OK  73104

October 12, 2017 – October 20, 2017

Alternate OST Deposit Drop Off and Warrant Pickup:

  • The OST Cashier will open for business from 9:00 am – 11:30 am beginning on October 12, 2017 at:

Oklahoma Tax Commission
Connors Building First Floor
2501 N Lincoln Blvd
Oklahoma City OK  73194

The OST cashier will be located at window 6. Agencies will not have access to OTC through the tunnels. All personnel should enter the main lobby by the East doors. 

  • The OST Cashier window operating hours of 9:00am – 11:30am will be strictly enforced as we are in a borrowed space that is also needed to serve the public.  We cannot accommodate early or late pickups or drop offs.
  • Warrants that are not picked up between these designated times will be held for pick up the next business day.
  • State agencies have the option to take any late deposits directly to the Bancfirst location, listed below, for immediate handling. 

1111 N Lincoln Blvd.
Oklahoma City, OK 73104

 Preparation of Deposits:

  • Agencies should continue to prepare their deposits as if they were bringing them to the Cashier window at the State Capitol:
  • Cash and check deposits will need to be in separate sealed (tamper evident) deposit bags… do not combine.
  • Foreign checks will need to be kept separate from cash/check deposits in a sealed (tamper evident) deposit bag.  These can only be delivered to the OST temporary location at the Oklahoma Tax Commission during operating hours (9:00am – 11:30am).
  • Agency depository sheets should be left with the OST Cashier, during the designated time window, and they will be handled by a member of OST.
  • Agencies may order tamper evident deposits bags from:

Ashlea Briggs, 405-218-4653
SVP Treasury & Merchant Services, BancFirst

Warrant verification:

Warrant verification procedures will continued to be performed by OST personnel. Please contact Marcus Brown 405-522-4231 or Lakresha Ferguson 405-522-4225.

Limited or No Service:

  • Check Cashing: The Cashier will not cash state issued warrants or state agency employee personal checks during this time period (state issued or employee personal checks).  Please contact OST for any time sensitive requirements.
  • Change Orders: The Cashier will not process change orders during this period. State agencies will need to make adequate preparations for change prior to October 11, 2017.
  • Safekeeping: The Cashier will not be able to release or accept any Safekeeping items during this period.

October 23, 2017

OST expects to return to the capitol building on Monday the 23’rd, but would not be fully operational until all systems have been moved and set up completed, this may delay daily operations. The Cashier’s window will be open on the 23rd from 10:00am. The alternate procedures mentioned above will be applicable to the processing on Monday (the 23’rd) but at the CAPITOL LOCATION and not the Tax Commission’s location. 

State agencies should check the capitol restoration website at for updates on the Capitol closure before stopping by the Capitol. If there is a delay in our return to the Capitol building, please visit the State Treasurer’s home page at for further instructions. 

Please direct any questions/concerns to:

Kiran Nallayahgari   405-522-6860

Deidra Salim           405-521-3121


Deadlines for November Payrolls

In planning your work for November, it is important to remember that Veterans Day is Friday, Nov. 10.  Thanksgiving is recognized on Thursday, Nov. 23, and Friday, Nov. 24, is also a state holiday.  November biweekly payroll for state agencies (“B” or “C” biweekly schedules) will be paid on Thursday, Nov. 9, and Wednesday, Nov. 22. November monthly payrolls will be paid on the last working day of the month, Thursday, Nov. 30.

With these dates in mind, agency staff should plan their work accordingly for the deadlines: 

SUPPLEMENTAL:  PeopleSoft supplemental payrolls are set to pay on Thursday Nov. 9.  Agencies should have these payrolls processed and paperwork forwarded to OMES by Thursday, Nov. 2. 

BIWEEKLY: “B” and “C” biweekly payrolls are set to pay on Thursday Nov. 9.  Agencies should have these payrolls processed and paperwork forwarded to OMES by Thursday, Nov. 2. 

The next biweekly pay date for “B” and “C” biweekly schedule agencies will be Wednesday Nov. 22.  Agencies should have these payrolls processed and paperwork forwarded to OMES by Wednesday, Nov. 15. 

MONTHLY: Monthly payrolls will be set to pay on Thursday, Nov. 30.  Agencies should have these payrolls processed and paperwork forwarded to OMES by Tuesday, Nov. 21.

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Employee Moving Expenses

Authorized payments of employee moving expenses under 74 O.S. § 500.51 et seq, either directly or indirectly to an employee, may be taxable and/or reportable on the employee’s W-2. Payments may be for qualified or non-qualified moving expense reimbursements and require close review to ensure proper reporting is completed.

Qualified moving expenses paid or reimbursed by an employer can be treated as an excludable fringe benefit to the employee. The exclusion only applies to the reimbursement of moving expenses that the employee could deduct if he or she had paid or incurred them without reimbursement. Please refer to IRS Publication 15-B, Employer’s Tax Guide to Fringe Benefits, and IRS Publication 521, Moving Expenses, for additional information. Qualified moving expense reimbursements paid directly to the employee are reported on Form W-2 only in box 12 with code “P”. Qualified moving expenses paid by an employer directly to a third party on behalf of an employee (i.e. moving company) are not reportable on Form W-2.

Non-qualified moving expense reimbursements, paid directly to an employee or indirectly on behalf of an employee, are taxable to the employee and are included on Form W-2 in boxes 1, 3, 5, and 16 with the applicable taxes withheld and reported. No box 12 reporting is required for non-qualified moving expense reimbursements.

A common error occurs when employee moving expenses are paid through accounts payable without notifying agency payroll personnel. Agency business practices must ensure communication between the different departments. Good communication and procedures will allow for the correct reporting of all moving expense amounts as required by the IRS. When moving expenses are paid through accounts payable, please forward all relevant information to agency payroll personnel for inclusion on the employee’s W-2 at year end as needed. Payroll personnel will need to review the information, and if taxable to the employee, process through payroll so that taxes are calculated and withheld and the amounts are reported on the W-2.

Process the taxable amount through payroll using the TRC Code of “MOVE,” which will show as earnings code “MOV.” The amount will be included as taxable income and will be taxed on the paycheck.

Amounts determined only to be reportable on the employee’s W-2 in box 12, will need to be forwarded to OMES, 5005 N. Lincoln Blvd., Suite 100, Oklahoma City, OK 73105-3324, Attn: Lisa Raihl or Jean Hayes. Please include in the memo, the employee name, employee ID number, and amount to be included on the W-2 in box 12 with code “P”.

For questions or more information, please contact Lisa Raihl at 405-521-3258 or, or Jean Hayes at 405-522-6300 or

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Using State Vehicles to Commute

Title 47 O.S. § 156.1, as amended, while forbidding the personal use of state-owned motor vehicles, permits the use of the vehicles for the commuting of designated employees.

The personal use of an employer-provided vehicle to commute constitutes a noncash taxable benefit to the employee even when the use of the vehicle is for the benefit of the employer. Excepted are qualified nonpersonal-use vehicles (any vehicle not likely to be used more than minimally for personal use because of its design). Please refer to IRS Publication 15-B, Employer’s Tax Guide to Fringe Benefits, for a list of vehicles generally included as qualified nonpersonal-use vehicles.

The employee can choose to have the value included as taxable income or pay the employer for personal use rather than having it treated as wages. When treating the value as wages, the imputed income is subject to FICA and income tax withholding. The valuation method is dependent on the employee status. Control employees (elected officials or employees whose compensation is at least as great as a federal government employee at Executive Level V - for 2017; $151,700) cannot use the commuting valuation rule ($1.50 rule). All other employees can have the value computed using the Automobile Lease Valuation Rule, the Vehicle Cents-Per-Mile Rule, or the Commuting Rule ($1.50 rule) subject to the requirements of each rule.

All valuation methods are included in IRS Publication 15-B, Employer’s Tax Guide to Fringe Benefits. The most common method is the Commuting Rule ($1.50 rule) for valuing employee use of an employer-provided vehicle. The employer must require the employee to use the vehicle for a business purpose; it cannot be voluntary on the employee's part. Personal use for commuting can be valued at $1.50 each way between home and work. If more than one employee commutes in the vehicle, each rider has imputed taxable income. The taxable amount, if not paid by the employee, must be processed through payroll so that taxes are calculated and withheld and the amounts are reported on the W-2.

Process the taxable amount through payroll using the TRC Code of “CAR,” which will show as earnings code “CAR.” The amount will be included as taxable income and will be taxed on the paycheck.

We highly recommend the vehicle usage be included in the employee’s payroll each pay period (for the previous pay period, as needed). This will preclude a large sum being included in the employee’s last pay of the calendar year which would result in a higher than normal amount of taxes withheld. Additionally, up-to-date reporting of vehicle usage will benefit the agency should the employee terminate during the year.

For more questions, please contact Lisa Raihl at 405-521-3258, or Jean Hayes at 405-522-6300,

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Payroll Warrants Issued in Error

If for any reason an agency receives a payroll warrant issued in error, the warrant should be returned as soon as possible to OMES for cancellation. Payroll warrants must be accompanied by an OMES Form PWC.

Warrants issued by the State Treasurer which, for any cause, remain outstanding or unpaid for a period of ninety (90) days shall be revoked and canceled under the provisions of 62 O.S. § 34.80. For warrants canceled by statute, the cash is transferred to the canceled warrant fund. Agencies will not be refunded the value of the canceled warrants.

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Payroll Stat Cancelled Warrants Not Eligible for Reissue

Agencies should be reviewing 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 there is a payroll warrant 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 warrant number, warrant date, and 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,

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Submission of OMES Form 94P - Tidbits

When an employee reimburses a payroll overpayment, please complete and submit the OMES Form 94P as soon as the reimbursement is made.  Timely submission helps ensure corrections are reflected in the quarter in which they occurred for proper reporting and also helps in the full recovery of OPERS retirement amounts.  If the retirement system is not aware of an overpayment and the pending overpayment refund request, payouts to former employees may be incorrect, resulting in a loss to the agency. In addition, retirement calculations may be incorrect if the overpayment is not reported timely.

Please do not provide copies of personal checks.  The form allows the agency to enter the amount reimbursed.  Additional back up data is not required.  

The form requires the State EmplID be entered.  This has been changed for the privacy and security of the employee. Please do not submit with the social security number or any other number.

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State HCM System Use of Addresses on W-2s

As a reminder, in the Oracle/PeopleSoft HCM system, the W-2 process loads the employee’s mailing address for IRS Form W-2 reporting.  If there is no value in the mailing address field, then the employee’s home address will be used on the W-2.  If there is a value in the mailing address field that is not to be used on the Form W-2, it will need to be updated or inactivated.

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State HCM System Use of Addresses on 1095-C, ACA Reporting Form

The 1095-C form process in the Oracle/PeopleSoft HCM system has been set to load the employee’s mailing address just as the W-2 process does. If there is no value in the mailing address field, then the employee’s home address will be used on the W-2.  If there is a value in the mailing address field that is not to be used on the Form W-2, it will need to be updated or inactivated.

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Agency Address Verification

Please verify the correct agency address is being used on the Oracle/PeopleSoft HCM system. The agency address can be found on the Employee’s Earnings Statement. If the address is not correct for the agency, this will need to be updated before year end processing of tax forms. Please contact the OMES Service Desk at 405-521-2444 to have the agency’s address updated in the HCM system.

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PeopleSoft MailDrop for Year End Processing

Oracle/PeopleSoft HCM system employee W-2s and 1095-C forms are processed and printed in mail drop order. Please ensure this field is properly used for employees. The forms will print in the same order as checks and advices sort, which is based on each agency’s needs.

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November Payroll Deadlines

In planning your work for November, it is important to remember that Veterans Day is Friday, Nov. 10.  Thanksgiving is recognized on Thursday, Nov. 23, and Friday, Nov. 24 is also a state holiday. With these dates in mind, please adjust your payroll processing schedules as needed. All payroll documents must be received five (5) business days prior to the actual pay date to ensure adequate time for audit and processing.

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Higher Ed 1099 Information

As a reminder, beginning with tax year 2016, each Higher Ed Institution is responsible for reporting their own 1099 information to the IRS, therefore, as a whole, Higher Ed vendors in the HECLM vendor file have not been TIN Matched in tax year 2017.  You may contact Beth Brox at 405-522-1099 or, with any questions you may have in regard to TIN matching your vendors.

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General Ledger Report – Cash Basis Financial Statement Report

This report is designed to allow agencies to run an agency specific Combining Trial Balance report similar to the CTB used by the Financial Reporting Unit and State Auditor and Inspector’s Office.  The report parameters include a number of options on how the report can be run.  The navigation is General Ledger > General Reports > Cash Basis Financial Statement.

The first selection is for the fiscal year and period.  The fiscal year should be 4 digits (2017, 2018, etc).  To include the balances carried into the fiscal year the ‘from period’ must be period 0. To include the entire year, the ‘to period’ would be period 12.

The Business Unit is your 5 digit agency number.  After the Business Unit is selected, you should tab out of the selection box to display the available class fundings.  If you enter the Business Unit and click directly on the run box, the report will be blank.

The selection for report type allows for either a summarized report or a detail report.  If the report is summarized, it will roll selected class fundings into a single statement.  The revenue accounts will be at the detail account level but the expenses will be at a rolled up level based on the first 3 digits of the account number.  The detail report will present a statement for each selected class funding.  Revenues and expenses will be presented at the detail account number.

Agencies may further clarify parameters to either include only selected class fundings or exclude specific class fundings.  Individual class fundings will display when the business unit is added.  The report will return all class fundings unless you make specific selections.  You may select all class fundings by checking the select all box or select only the specific class fundings you are wanting.  For instance, to run the report to include all class fundings except the clearing account, you would ‘select all’, then deselect the clearing account class funding.

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Lapsed Funds

Agencies are required to complete all transactions related to fiscal appropriations for FY17 funding lines by the expiration/lapse date, generally November 27, 2017.  Although the funds are still valid and available through November 27th, due to the holidays, we are recommending that agencies complete all transactions related to the lapsing funds, including budget revisions, no later than November 10th.

The following steps should be started immediately to ensure completion before the lapse date:

  1. Run the LAPSED FUNDS REPORT – APPROPRIATED FUNDS. The navigation is:
    General Ledger > General Reports > Lapse Fund Adv Notice – Approp
  2. Reconcile Requisition and PO balances to zero or positive amounts
  3. Process any necessary Change Orders
  4. Process any necessary Expenditure Corrections
  5. Process final payments for goods and services encumbered on FY17 funds
  6. Finalize Voucher, Requisition and PO funding lines as appropriate
  7. Process Budget Revisions and Carryover Budgets through OMES Budget Division

The LAPSED FUNDS REPORT APPROPRIATED FUNDS report shows all appropriated funding lines which will lapse within the next 60 days.  The report must be ran prior to the lapsing date.  If any lines have negative Encumbrances or Pre-Encumbrances on this report, these amounts need to be resolved.  If you are unable to resolve the differences, submit a case to the OMES Helpdesk.  Be sure to specify the particular funding lines with negative balances.  Please run this report and begin working on it immediately as it could take several days to resolve any cases.

This report includes funding from years prior to FY17 that were carried over to subsequent fiscal years which are also lapsing.  Those lines should also be review so that appropriate action can be taken prior to the lapse date.

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Review 1099 Reportable Transactions Report

Each agency should review their 1099 reportable transactions for the first three quarters of the calendar year 2017. Agencies should run and print the 1099 Transaction Report in the PeopleSoft system. The report path is:

Accounts Payable --> Reports --> Payments --> Misc. Tax Information Report

Specify your agency number and select the date range as 01/01/2017 through 09/30/2017. 

As you review this report please note that the IRS Name, TIN, 1099 address and 1099 Flag are our primary concerns.  All vendors that need to receive a 1099 should have a ‘Y’ in the 1099 Flag column. If it shows an ‘N’ and the vendor needs a 1099 please indicate the change with your corrections. If a 1099 Flag is 'N' there is no need to submit a change of address since the vendor will not receive a 1099, otherwise please verify the address where the 1099 should be sent.  The amounts are listed on the report so as you reconcile you can make sure that all payments are accounted for.

Return the report and all available W-9s to document your changes (even if it is ‘only’ an address change) to the Office of Management and Enterprise Services on or before Friday, Oct. 27, 2017.   Your timely review and response to this report will allow us time to update the vendor file in order to have the best information possible for the final report which will need to be reviewed the first week of January 2017.

The preferred way of submitting any corrections to OMES is to print the report and write the corrections on the report using a color of ink other than black.  Please send comments and corrections by mail or interagency mail, or if there are just a few corrections, they may be sent via e-mail to or by fax to (405) 522-2186.  Any other questions or comments regarding this matter should be directed to Beth Brox at 522-1099.

Tax reporting for 2017 will be at an accelerated pace due to new IRS regulations.  After 1099s are distributed in January 2018 corrections will be required to be returned within a week so they can be entered in the file which is due to be filed with the IRS by January 31, 2018.  Any corrections needed after this date should still be sent to OMES for us to report to the IRS.  This will ensure our reporting is as accurate and complete as possible.

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Newsletter Release of GSA Federal Per Diem Rate Changes – Effective October 1, 2017

The Government Services Administration (GSA) has posted revisions to the per diem rates we use for travel which are effective Oct. 1, 2017

For Oklahoma, the meals and incidental rates (our per diem) did not change for Oklahoma City, however, Enid dropped out as a “high-rate” area and is now at the Standard Rate.

The Oklahoma City lodging rate dropped, but the Standard Rate lodging increased.  Click here to see how the rates have changed.   

This rate change is effective for travel occurring October 1, 2017 and after, which is the start of the federal fiscal year (FY) 2018. These new rates can be viewed or downloaded from the GSA website.

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Invoices for FY17

FY17 invoices paid by p-card should be paid by the end of October.  Agencies still waiting on FY17 services to be billed should contact the vendor to obtain those invoices as soon as possible to facilitate October payment.  Questions should be directed to

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Volume 28, Number 4
Fiscal Year-2018
October 6, 2017

In This Issue ...


OKC American Payroll Association Monthly Lunch & Learn Chapter Meetings

OKC American Payroll Association
Monthly Lunch & Learn Chapter Meetings

Payroll Thunderdome
Thursday Oct. 19, 2017
11:30 a.m. - 1 p.m.

For more information, please visit their website.

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APA Preparing for Year End and 2018

Presented by American Payroll Association
Friday, Oct. 27, 2017 - Tulsa

For more information, please visit:  APA website

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AGA 2017 Fall Conference

The Oklahoma City Chapter of AGA will be hosting a fall seminar on Wednesday, Nov. 15th at the Will Rogers Theatre, 4322 N. Western Ave., OKC 73118.  Cost is $150 if reserved and paid by Nov. 1 and $200 after Nov. 1.  The training includes 8 NASBA approved CPE hours. Registration starts at 7:30 a.m. and the first session begins at 8:10.  The day ends at 5:00.  Lunch is provided.  Click here for the registration form and additional details.

Space is limited.  For more information and payments by credit card, please send your contact information to Steven Hawkins at or

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Payroll Law 2017

Presented by Fred Pryor Seminars
Dec. 4, 2017 - Tulsa
Dec. 5, 2017 – Oklahoma City

For more information, please visit their website.

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State Comptroller:
Lynne Bajema, CPA

Deputy State Comptroller:
Steve Funck, CPA, CGFM

OMES Services CAR Accounting:
Jennie Pratt, CPA, CGFM

Agency Business Services:
Steven Hawkins, CGFM 

Financial Reporting Unit:
Matt Clarkson, CPA

Transaction Processing Manager:
Steve Wilson

Statewide Accounts Payable:
Courtney Cowart

Replacement Warrants:

Voucher Processing:

Payroll Transaction Processing:
Elsa Kunnel

Payroll Reporting:
Lisa Raihl, CPA

Purchase Cards and Travel (Online Booking) Assistance:
Linda Powell

Vendor Registration:
Victoria Baker

Vendor File Maintenance:

Vendor Remittance Updates:
Updates to remittance contact for vendor payment notification.

OMES Service Desk:
405-521-2444 or toll-free 866-521-2444