Kansas Department of Administration

03-a-023 - Expenditure and revenue sub-object codes for transactions used to fund principal and interest accounts to cover debt service (June 2, 2003) (Superseded by 04-a-017)

INFORMATIONAL CIRCULAR NO. 03-A-023
DATE: June 2, 2003
SUBJECT: Expenditure and revenue sub-object codes for transactions used to fund principal and interest accounts to cover debt service.
EFFECTIVE DATE: July 1, 2003
A & R CONTACT: Financial Integrity Team:
Brett Bauer (785) 296-4903 (brett.bauer@da.state.ks.us)
Pam Karns
Mike Lovich
(785) 296-2660
(785) 296-2131
(pam.karns@da.state.ks.us)
(mike.lovich@da.state.ks.us)
APPROVAL: Approved by Dale Brunton
SUMMARY: Establishment of additional revenue and expenditure sub-object codes for the processing of the transactions used to fund principal and interest accounts to cover debt service payments on the related debt and to fund arbitrage rebate accounts.


Currently, the transactions used to fund principal and interest accounts for debt service payments are processed differently depending on whether the source of funding originates from a special revenue fund or the State General Fund. In an effort to provide for consistent treatment and satisfy budgetary as well as financial reporting requirements, new revenue and expenditure sub-object codes will be established for use effective July 1, 2003.

The following new revenue sub-object code will be established under the intermediate classification 5900, "Other Revenue - All other items of revenue not classified elsewhere":

5913  Other Revenue - Agency Funds Authorized for Debt Service

A new expenditure sub-object code will be established under a new intermediate classification, 6201, under the main heading 6000, "Debt Service", as follows:

*6201 Other Payments and Charges for Debt Service: For transactions used to fund principal and interest accounts for debt service payments and to fund arbitrage rebate accounts.

6210 Other Payments and Charges for Debt Service

*Intermediate Classification - Do not use; A more detailed classification must be used.

All debt service payments into principal and interest accounts, regardless of funding, should now be coded in the following way via SOKI interfund voucher:

Transaction Code 733, Expenditure Sub-object 6210
Transaction Code 633, Revenue Sub-object 5913

In addition, the same coding above should be used for transactions that fund arbitrage rebate accounts for the actual or estimated rebate liability.

Please note, this procedural change does not affect the coding of subsequent principal and interest payments to the State Treasurer, as the designated paying agent, who then generates the warrants issued to the bondholders/creditors. This also does not affect the coding of subsequent arbitrage rebate payments remitted to the Internal Revenue Service.

These revisions will be reflected in the Uniform Receipt Classification Revenue Sub-object Codes filing (PPM No. 6,002) and the Uniform Expenditure Classification of Expenditure Sub-object Codes filing (PPM No. 7,002) on the Division of Accounts and Reports web site http://www.da.ks.gov/ar/ppm/.

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