03-a-007 - Identifying All Federal Funds in STARS (October 18, 2002)
|INFORMATIONAL CIRCULAR NO. 03-A-007|
|DATE:||October 18, 2002|
|SUBJECT:||Identifying All Federal Funds in STARS|
|A & R CONTACT:||Don Beck||(785) 296-7291||(Don.Beck@da.state.ks.us)|
|SUMMARY:||Survey to Identify Commingled Federal and State Moneys in STARS|
In March 2001, Informational Circular 01-A-015 was issued to address the Processing of Transactions for Federal Grants. Included in that Circular was information about the need to appropriately record and report the receipt and the expenditure of federal grant and award moneys. The STARS 3XXX fund number series is currently used to identify federal funds. However, we are aware that situations exist where federal funds are being receipted into and expended from other than 3XXX series funds and where federal and state funds are commingled in either a 3XXX or 2XXX series fund. In an attempt to identify all federal funds, we are requesting that your agency review your funds and identify any instances where federal and state moneys are commingled and any instances where federal moneys are being recorded through other than a STARS 3XXX series fund.
Issues regarding the State's ability to accurately record and report all federal grant and award receipts and expenditures in STARS have been discussed with the Division of the Budget. In order to provide more accurate reporting, the Division of Accounts and Reports is considering a requirement to eliminate commingled federal and state moneys and to correct miscoded federal funds. In some instances, this would require changes to the current structure to include creation of separate federal and state funds for any commingled funds or a change from a 2XXX series fund to a 3XXX series fund to distinguish federal from state moneys. In addition to identifying any inappropriately classified federal and state moneys, we request that your agency address, specifically, the impact this classification and coding change would have on your agency operations, administration and reporting.
Please provide a response even if your agency receives no federal funds. You may use the attached form for your response or some similar format. We ask that your response be provided not later than November 15, 2002.
Attachment: Survey Form (.pdf format)