Kansas Department of Administration

10-a-018 - Re-encumbering Contracts and Real Estate Lease Agreements (June 8, 2010) (See Purchasing Circular: 11-001)

Posted on 10/21/2021 at 12:49 PM by Kansas Department of Administration

INFORMATIONAL CIRCULAR NO. 10-A-018 (See Purchasing Circular 11-001)
DATE: June 8 , 2010
SUBJECT: Re-encumbering Contracts and Real Estate Lease Agreements
EFFECTIVE DATE: July1, 2010
FACILITIES CONTACT: Linda Thomas (785) 296-5909 (Linda.Thomas@da.ks.gov)
PURCHASES CONTACT: Linda Gronquist (785) 296-2375 (Linda.Gronquist@da.ks.gov)
CONTACT:

Randy Kennedy

(785) 296-2125

(Randy.Kennedy@da.ks.gov)

APPROVAL:
SUMMARY: Procedure for Fiscal Year 2011 transactions to re-encumber previously approved contracts

Effective July 1, 2010 for fiscal year 2011, encumbrance documents will no longer be submitted to Accounts and Reports. Following are the procedures for re-encumbering.

Contracts and Real Estate Lease Agreements that were bid by the Division of Purchases: These contracts were converted into SMART and utilize the same Contract number as the Division of Purchases’ Contract number in ProcMan. On and after July 1, agencies may issue SMART-based Purchase Orders (PO) against these contracts using the Requisition-to-PO process. The Requisition should be for the FY11 encumbrance amount and the Line must include the applicable SMART Contract ID. Once the Requisition is approved and budget checked, the PO will be created for the buyer to review. If no notice is needed to be sent to the vendor, the buyer should change the PO dispatch method to Phone, review applicable information, then approve the PO. Once the PO has passed budget check, the encumbrance will be established. Partial payments may be made against the PO throughout the year.

Contracts and Real Estate Lease Agreements that were NOT bid by the Division of Purchases: On and after July 1, the agency should create a new SMART contract using the Supplier Contract Management module. For contracts that are NOT Real Estate Lease Agreements, agencies should attach an electronic copy of the final contract to the contract header. Save the contract in an approved status. Agencies may then issue Purchase Orders against the new contract using the Requisition-to-PO process. The Requisition should be for the FY11 encumbrance amount and the Line must include the new SMART Contract ID. Once the Requisition is approved and budget checked, the PO will be created for the buyer to review. If no notice is needed to be sent to the vendor, the buyer should change the PO dispatch method to Phone, review applicable information, then approve the PO. Once the PO has passed budget check, the encumbrance will be established. Partial payments may be made against the PO throughout the year.

For any PO that has more than one payment, enter the period and amount of the payments in the comment field of the PO, i.e. $x per month.

A circular will be following with new contracts and new real estate lease agreement procedures. 

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