Section Overview and Policies:

This section provides agencies with information related to refunds owed to the state by an employee when the employee submits a check for repayment to the state.
 

Process and Transaction Preparation:

Refunds Owed to the State as a Result of a Due to State Employee Expense Report Balance

An employee should submit a check to the agency for repayment when an expense report was created that resulted in an amount owed to the State by an employee (i.e., Due to State) and for which the employee is unable to use the Due to State Offset functionality outlined in Chapter XIII.10.B – Refunds Owed to the State by an Employee – Using a Due to State Offset.  When a Due to State condition exists, the SFS creates an accounts receivable entry associated with the expense report for the amount due.  The SFS prevents an employee from submitting an expense report for reimbursement unless the Due to State is refunded to the State.

The agency must forward the check to the Department of Taxation and Finance – Treasury and submit an Accounts Receivable Direct Journal Payment in the SFS.  To apply the payment to the Due to State account receivable, the Agency must select a deposit type of “E” (Employee Receipts) and select the associated expense report ID.  The SFS will auto populate the required accounting lines to properly reconcile the accounts receivable.

For more detailed instructions, Agencies should view the Handbook: Creating & Maintaining Deposits and the Job Aid, “Entering a Deposit from an Employee Resulting from a “Due to State” Expense Report in SFS Coach.

Refunds Owed to the State NOT as a Result of a Due to State Employee Expense Report Balance

All other refunds owed to the State by an employee that involve a repayment using an employee check must follow the guidance published in Chapter VII.3 – AP Adjustment Voucher Overview.

Guide to Financial Operations

REV. 10/01/2025