Kansas Department of Administration

17-A-004 Statewide Encumbrance Policy (October 11, 2016)

Informational Circular No. 17-A-004
Effective Date: January 1, 2017
Approval: DeAnn Hill (Original Signature on File)

 

Contact Name: Phone Number Email Address
Janette Martin (785) 296-7021 janette.martin@ks.gov
Ginnie Schirmer (785) 296-7021 ginnie.schirmer@ks.gov
Brandy Wilson (785) 296-6260 brandy.wilson@ks.gov
Brad Elkins (785) 296-3356 brad.elkins@ks.gov
Stacy Cooper (785) 296-3242 stacy.cooper@ks.gov
Chuck Wilson (785) 296-6033 chuck.wilson@ks.gov
Summary: State of Kansas Encumbrance Policy

Informational Circular 17-A-004 introduces a new statewide accounting policy for encumbering agency obligations.  The three methods for encumbering in the Statewide Management, Accounting & Reporting Tool (SMART) are purchase orders, travel authorizations and General Ledger (GL) encumbrance journals.

The new encumbrance policy resides in Policy Manual (PM) Filing number 10,300 – Statewide Encumbrance Policy, and can be found at:  https://admin.ks.gov/offices/chief-financial-officer/policy-manual

PM Filing 10,300 identifies obligations that are required to be encumbered as well as obligations that are not required to be encumbered but are optional for agency budget management.  In addition, best practices are found in the attached document.

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

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 & Contracts.

PM Filing 10,300 will be effective January 1, 2017.

The Department of Administration recognizes the significant impact this will have on agency processing.  A six month transition period will allow agencies the opportunity to review and amend internal procedures and processes necessary for compliance with the statewide encumbrance policy.  Auditing by the Agency Audit Services Team of the Office of the Chief Financial Officer for compliance with the statewide encumbrance policy will begin July 1, 2017.

 

DH:ME

Attachment:
Best Practices – Statewide Encumbrance Policy
Printable Version of 17-A-004

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