Effective September 1, 2026, HB 3944 amended 62 O.S. § 34.80(H) to require that Stat Canceled Warrants funded with federal funds be transferred back to the originating fund upon cancellation.

To process these transfers, agencies must complete the new OMES CAR Form 20F and submit it through the Submit a Form to CAR option in ServiceNow. Select Cash Transfers as the submission type from the dropdown menu.

 Please note:

• Funds will be returned to the class fund from which the warrant was originally issued.
• Do not use OMES CAR Form 20F for 700‑fund warrants.
• Stat cancels must not exceed 36 months following the month in which the warrant was canceled.
• Only warrants that stat cancel on or after September 1, 2026, are eligible to be returned to the originating fund.

To locate your agency’s lapsing funds:

Run the Lapsed Funds Report – Appropriated Funds in PeopleSoft.

• Menu > General Ledger > General Reports > Lapse Fund Adv Notice – Approp.

After locating your agency's lapsing funds:

• Review the funding your agency has that will lapse and what the appropriate legislative spend is for these funds.
• Process final payments for goods and services encumbered on FY 2025 funds. Then reconcile requisition and PO balances to bring them all to zero or positive amounts. Prioritize resolution of negative pre-encumbrance or encumbrances. If your agency has any encumbrances that are still owed, process any necessary change orders to move these encumbrances off of funds appropriated for FY 2025. 
• Process any necessary Expenditure Corrections, whether Accounts Payable Journal Voucher or Payroll Funding Corrections. 
• Finalize all FY 2025 Voucher, Requisition and PO funding lines as appropriate.
• If you have funds that can be carried forward, process budget revisions and carryover budgets through OMES Budget.

The Lapsed Funds Report – Appropriated Funds has been updated to show all appropriated funding lines that will lapse within 180 days of the date the report is run.

The Excel version of this report has also been updated and is able to be run by all agencies (query name: OCP_GL0114_LAPSED_FUND).

Review the user guide linked below to learn how to format and configure the query.

This integration brings over new class funds, subaccounts, projects and activities from PeopleSoft Financials. Once the schedule update has been made, updates to these items in PeopleSoft Financials will not show up in Workday@OK for use until the next business day.  

Project agencies: If you create a new project or activity, it will show up in Workday@OK for use the next business day.

OMES Central Accounting and Reporting (CAR) hosts an ongoing series of 30-minute virtual training sessions for state finance personnel. Select the button below to register for the upcoming session.

• When: Wednesday, Oct. 7, from noon to 12:30 p.m.
• Topic: Lapsing Funds.
• Registration: Select the button below to register.

Need a refresher? Select the links below to review past sessions.

• Encumbrance Corrections
• GAAP Package Overview
• Payroll Funding Corrections
• Warrant Replacements
• Accounts Receivable Regular Deposits

Budget requests are due Nov. 1, not Oct. 1.

State Transfer Law was amended to focus on appropriated funds. This means that a Form 48P will be required to request transfer of budget amounts between line-item appropriations, or to adjust amounts budgeted according to legislated limits or directive spending.

• Reminder: Budget transfers between line-item appropriations are only permitted between appropriations from the same fund (e.g. 19601 and 19602). Transfers are not permitted between different funds; for example, budget cannot be transferred between an appropriation from 196 General Revenue to an appropriation from 195 General Revenue.
• Transfer Form 48P is no longer required when moving budget amounts between non-legislated division amounts or non-appropriated funds.  
• As before, transfers are still not required to move budget between departments or account codes.

Your agency will receive an updated copy of the Form 48P and revision allotment letter from your OMES Statewide Budget Analyst.

The Oklahoma Legislature's Joint Committee on Pandemic Relief Funding (JCPRF) has established Oct. 2, 2026, as the state's deadline for ARPA-SLFRF subrecipients to incur and pay all expenditures.

This deadline allows sufficient time to complete the required administrative reconciliation and grant closeout before the federal SLFRF period of performance ends. From Oct. 2 through Dec. 31, subrecipients should focus on final reconciliations, resolve outstanding issues and provide required documentation to support grant closeout.

Subrecipients should plan accordingly and prioritize completing all allowable SLFRF expenditures by Oct. 2 and use the remaining period for reconciliation and closeout activities.

Timeline

• Oct. 2 – state expenditure deadline for ARPA-SLFRF subrecipients.
• Oct. 2-Dec. 31 – administrative reconciliation and closeout period.
• Dec. 31 – federal expenditure deadline for ARPA-SLFRF subrecipients.

Once again, bad actors are attempting to defraud employees by submitting requests to change banking information. This issue is ongoing, so please remain vigilant and cautious when receiving requests to update payroll information.

To help prevent fraudulent changes, all requests to update payroll information should be verified. Employees should make payment election changes directly through Workday@OK, as outlined below.

For any exceptions, follow these best practices:

• Personnel who handle employee direct deposit changes should verify each request by personally contacting the employee using a known phone number or Microsoft Teams. Verify information such as the employee ID number and employment start date.
• Do not contact the employee by replying to the email requesting the change. Make direct contact using a trusted method to ensure you are communicating with the employee and not someone impersonating them.
• Agencies are encouraged to establish a time delay for changes to direct deposit information to help reduce the risk of wage theft.
• If you receive a suspicious phone call or email, call the OMES Service Desk at 405-521-2444 or contact your organization’s appropriate IT or security support team.

Employee direct deposit verification of bank routing number

With employee self-service in Workday@OK, employees should enter their direct deposit information directly, in accordance with OAC 260:25-25-16.

If an agency makes an exception and enters an employee’s direct deposit information on the employee’s behalf, the employee must complete the HCM-73 Automatic Deposit Transmittal form and provide it to the agency along with an official document from the financial institution.

Bank deposit slips should not be used to obtain the bank routing/transit number for setting up direct deposit. A voided check from the employee is the most reliable method.

If an employee does not have a voided check or wants to deposit funds into another type of account, they should contact their financial institution directly to obtain the correct routing/transit number.

Important note: A bank routing/transit number should never begin with the digit 5, as this indicates a branch number and will cause the direct deposit to fail. If a direct deposit fails, the funds will not leave OST, and the agency will need to take additional steps to ensure the employee is paid.

The OMES payroll support team is still actively converting state agencies to the biweekly payroll schedule. More than 75% of state employees are currently paid on a biweekly schedule. Agencies that wish to convert from monthly to biweekly payroll should first consider the estimated cost of leave to be paid during the conversion gap period and provide a financial plan to the state comptroller for review. Once approved, the agency will meet with the payroll support team to review all aspects of the agency’s conversion. State agencies can submit a Payroll Support request with any questions or when they are ready to convert to biweekly.

Biweekly payroll offers agencies benefits such as improved recruitment and competitiveness with private industry, no minimum leave balance requirements, fewer payroll errors or overpayments, consistent timesheet submissions, no blackout periods, ease of overtime calculations paid on the current paycheck, more flexible work schedules with fewer updates, and no salary rounding if also going to hourly pay.

Employees benefit from consistent biweekly paydays every other Friday, easier budgeting, no switching to/from supplemental payroll due to low leave balances, and fewer retro transactions, capturing accurate pay during the period worked.

Agencies that have received HSA refund audits from OMES HCM Benefits should process the employee refunds as soon as possible but no later than on the last paycheck of this calendar year.

• For audits refunding 2026 HSA withholdings, processing the refund in the same calendar year will prevent the agency from having to complete a W-2C. If refunds are processed in calendar year 2027, agencies will be responsible for completing W-2Cs for those employees.
• For audits refunding prior-year HSA withholdings (2025 or earlier), agencies are responsible for completing W-2Cs for those employees after the refund has been processed. You should send employees their copies of the W-2C, while Copy A needs to be sent to OMES HCM Central Payroll. Please contact Jean Hayes at 405-522-6300, jean.hayes@omes.ok.gov or payrollreporting@omes.ok.gov with any questions.

September 2026 webinar:

The I-9 Survival Guide: Staying Compliant in a Complicated World

• Sept. 18 from noon to 1:15 p.m.
• Additional webinar information.

TRS overview and retirement options, general overview and basic reporting information, and post-retirement and employer responsibilities.

• Oct. 21 at 10 a.m.

Register for webinar.