STATE OF CONNECTICUT
WILLIAM E. CURRY JR. COMPTROLLER	OFFICE OF THE STATE COMPTROLLER 55 ELM STREET HARTFORD, CONNECTICUT 06106-1775	EDWARD J. FORAND JR. DEPUTY COMPTROLLER

MEMORANDUM NO. 94-12

June 3, 1994

TO THE HEADS OF ALL STATE AGENCIES

I. AUTHORITY

Public Act 93-282 alters the structure of the former State Suggestion Program. Under the new legislation, each agency within each branch of government shall administer a suggestion program for its respective employees and retirees.

 

In addition, the Innovations Award Program was established for innovative ideas that are statewide, interagency, or specific to one agency.

II. GENERAL INFORMATION

Gifts with a nominal value are non-reportable. For example: mugs, pens, hats, etc. However, cash or items that can be easily converted to cash (i.e., gift certificates, savings bonds, etc.) are treated as additional wages regardless of the cost or value and are reportable.

 

The awards given to employees under this program are considered wages and subject to all normal deductions (i.e., taxes, insurance, retirement where applicable).

 

Payments to retired employees for suggestions are considered reportable miscellaneous income. If gift certificates or similar items of readily convertible cash value are distributed, the value of these items is considered miscellaneous income, regardless of the amount or value.

III. PAYROLL PROCEDURES - AGENCY SUGGESTION PROGRAM

The following procedures must be adhered to when making a program award payment to an active employee:

 

1. Approval of the agency program from the Office of Policy and Management

 

(OPM) must be obtained prior to initiating a payment to an active employee or retiree.

 

2. When providing a cash award, use one of the following procedures as applicable:

 

Forms: CO-1004; R-1; Amount; D/OE Code "2H" - Agency Suggestion Payment (AGCY SUGG PMT)

 

On-Line: Screen 381-382; Same as above.

 

Remote Job Entry: ZT Transaction; Same as above.

 

3. When providing a gift certificate, savings bond, etc., where the value must be reported and applicable deductions taken, use D/OE "2J" - Agency Suggestion Award (AGCY SUGG AWD) and one of the above procedures as applicable.

IV. PAYMENTS TO RETIREES

Each agency must request approval to establish a general reservation for payments to be made to retirees. Please review the "Commitments" Section of the State Accounting Manual for detailed instructions on establishing a general reservation.

 

All payments to retirees are to be processed through the Comptroller's - Central Accounts Payable Division on a CO-17, Vendor Invoice. The reportable type in block 12 of the CO-17 must indicate a "Y" for "Yes".

 

Agencies must submit a Vendor Profile Form, CO-1055, five days prior to the payment being processed. The status that should be used is "V" - Vendor and "S" - Sole Proprietorship.

 

Agencies presenting non-cash awards to retired employees in the aggregate of $600 must submit a listing of all items distributed for the calendar year to Central Accounts Payable by December 15th of each year. Each listing must contain the amount of total payments to each recipient, full name, mailing address and social security number.

 

It is the responsibility of the retiree to report any miscellaneous income under $600 to the Internal Revenue Service.

V. INNOVATIONS AWARD PROGRAM

The Statewide "Innovations Award Program" will be administered by the Office of Policy and Management. This program is open to active employees only. Details of the program will be issued under separate cover from their office. D/OE Code "IQ" - Innovations is restricted for use only by OPM.

VI. QUESTIONS

Questions should be directed as follows:

 

Payroll Procedures

Forms and On-Line: Central Payroll Division, 702-3447

Remote Job Entry: Financial Information Systems Bureau, 702-3600.

 

Central Accounts Payable Procedures

Central Accounts Payable Division, 702-3423.

 

Suggestion or Innovations Award Programs

Agency Suggestion Program - Contact your Personnel Office.

 

Statewide Innovations Award Program - Office of Policy and Management Coordinator, 418-6200.

WILLIAM E. CURRY JR.
STATE COMPTROLLER

WEC:BH

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