18-A-003 Statewide Encumbrance Policy - Amended (August 3, 2017)
Posted on October 21, 2021 at 12:51 PM by Kansas Department of Administration
| Informational Circular No. | 18-A-003 |
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| Effective Date: | August 3, 2017 |
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| Contact Name: Janette Martin |
Ph: (785) 296-2708 |
Email: Janette.Martin@ks.gov |
| Approval: DeAnn Hill (Original Signature on File) |
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| Summary: State of Kansas Encumbrance Policy Amendments expanding transactions not required to be encumbered. |
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This Informational Circular (IC) is issued to announce the following changes to the statewide encumbrance policy:
- Policy Manual (PM) Filing 10,300 Statewide Encumbrance Policy now incorporates the supplemental exemptions found in IC 17-A-014.
- The exemption for program payments has been further defined.
- Certain payments under $500 will now be exempted.
Amendments to the encumbrance policy:
- Program payments are further defined as payments where the disbursing agency receives no direct service or tangible asset.
Additional obligations that are generally not required to be encumbered but are optional for agency budget management include:
- Transactions less than $500 which are paid within 10 business days of the actual invoice date (unless required by Office of Procurement and Contracts policies).
- The paid date is defined as the SMART Accounting Date found at the following SMART screen:
- SMART: Main Menu > Accounts Payable > Vouchers> Add/Update > Regular Entry, Payments tab, Accounting Date.
- Agencies shall not split any invoice by generating multiple vouchers in order to avoid the $500 threshold.
For guidance on fiscal year closing and determination for all obligations, please see PM Filing 14,002 Fiscal Year Closing Including Fiscal Year Determination.
The provisions of PM Filing 10,300 should be followed in conjunction with all requisition and purchase order requirements issued through the Office of Procurement and Contracts.
Please note: The following payments remain under review pending a determination of any encumbrance requirement:
- Payroll expenditures and remittance of payroll taxes, deductions and garnishments
- Single Pay voucher payments
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Attachments:
PM Filing 10,300 Statewide Encumbrance Policy can be found at: http://www.admin.ks.gov/offices/chief-financial-officer/policy-manual
Best Practices – Statewide Encumbrance Policy: https://admin.ks.gov/docs/default-source/cfo/documents-to-support-policy-manual/best-practices---statewide-encumbrance-policy-10-2016.docx?sfvrsn=6
PM Filing 14,002 Fiscal Year Closing Including Fiscal Year Determination can be found at: http://www.admin.ks.gov/offices/chief-financial-officer/policy-manual
Printable version of 18-A-003
