COMPTROLLER'S MEMORANDUM NO. 04 (1999-2000)
SUBJECT: PAYROLL DEFAULT ACCOUNT AND CLEARING NEGATIVE BALANCES
Payroll Default Account
Effective July 1, 2000, the Bureau of State Payrolls will begin to utilize a payroll default account. All payments generated by the payroll system except Class C reimbursements and State Active Duty are eligible for the default account. The default account will be used when requests for payroll payments are submitted with an invalid account code or the account code submitted has not been pre-designated (with a payroll indicator) for payments from the state payroll system.
Each state agency will be assigned a single payroll default account. State agencies will be provided a special report of the payment records that have been processed using the payroll default account. This report will be available through the Report Distribution System the morning after the payroll is processed.
The components of the default account will be as follows:
L1 GF SF FID BE IBI CAT YR
XX 74 2 605999 XXXXXXXX XX 314400 00
The L1 will be the L1 for the state agency and the budget entity will be the first budget entity number (in numeric order) for the state agency. The appropriation category 314400 will be titled Payroll Default - FLAIR Use Only. The fund identifier 605999 will be titled Salary Clearing Trust Fund.
The payroll default account warrants will be made available to the state agencies according to the regular payroll release schedule. Since there will not be any budget or cash for the payroll default account, state agencies will be required to redistribute the default account payroll charges to the appropriate 29-digit FLAIR account that has sufficient budget and cash before the payroll warrant date. If a state agency fails to take action to clear up the negative balance in the payroll default account by the warrant date deadline, the Comptroller's Office will process the appropriate accounting transactions to redistribute the default account payroll charges to a 29-digit FLAIR account that has sufficient budget and cash.
Clearing Negative Balances
Currently if a negative balance occurs as a result of payroll processing, a state agency's payroll is held until documents are provided to the Comptroller' Office which reflect sufficient action to offset the negative balance. Effective July 1, 2000, payroll payments issued from accounts with negative balances will be available to the state agencies according to the regular payroll release schedule.
However, state agencies will be required to take the actions needed to ensure the accounts are not negative by the warrant date. This includes the redistribution of disbursements made from the default account to the appropriate 29-digit FLAIR account. The Comptroller's Office will process the appropriate accounting transactions to clear up negative balances associated with payrolls if a state agency fails to take actions to clear up the negative balances in the payroll account codes by the warrant date.
Effective July 1, 2000, negative balances in other than payroll accounts are to be cleared by the end of the month subsequent to the month in which the entry occurred. Currently, there are reports that identify accounts with atypical balances. Those reports are available through the Report Distribution System and may be identified as follows.
|Report Name||Form ID||Description|
The Comptroller's Office will process the appropriate accounting transactions to clear up negative balances associated with any 29-digit FLAIR account for cash or receipt accounts if a state agency fails to take action to clear up negative balances. If a state agency fails to take action to clear up atypical balances pertaining to budgetary accounts, the Comptroller's Office will determine on a case- by-case basis the most efficient and effective action. Changes to Chapter 216, Florida Statutes, pursuant to House Bill 2377 of the 2000 legislative session may reduce the occurrence or resolve the reasons for such atypical budgetary account balances.
Should you have any questions, please contact the Bureau of State Payrolls at 410-9416, Suncom 210-9416.