Summary: FY 2022 Meals and Incidental Expense (M&IE) and Lodging rates for travel occurring on and after October 1, 2021

As authorized by K.S.A. 75-3207a, the Secretary of Administration has fixed subsistence rates for FY 2022. The U.S. General Services (GSA) has announced the CONUS standard rate for lodging and M&IE effective October 1, 2021.  The GSA standard lodging rate remains $96.00. The standard M&IE rate increases from $55.00 to $59.00.

For State of Kansas travel, federal per diem rates are followed to determine subsistence allowances. The CONUS per diem rate for an area is divided into two components: the lodging allowance and the meals & incidental expense (M&IE) allowance. These per diem rates are based on travel location and travel dates (seasonal rates may be listed for some locations).  If a specific travel location is not listed (or within the location definition), the standard rate, or “other” location rate is used. The following standard rates apply to many locations across the contiguous United States (CONUS).

For CONUS locations, the following standard daily subsistence rates apply for travel which occurs on October 1, 2021 and thereafter:

Meals & Incidental (M&IE) - $59.00
Lodging Allowance Rate -    $96.00

The Employee Travel Expense Reimbursement Handbook is updated to include this information regarding subsistence for travel occurring on and after October 1, 2021.

SMART maintains the official subsistence rates for CONUS and OCONUS travel locations and will be updated semi-annually each October 1 and April 1 for any interim rate changes which have occurred.  International subsistence rates are not loaded into SMART.  For international travel locations, employees will obtain M&IE rates directly from the U.S. Department of State (DOS) website listed below.  For international travel, payment for actual lodging expense is allowed.

Source of Subsistence Rates:

Contiguous United States (CONUS) -

The U.S. General Services Administration (GSA) maintains the M&IE rates and lodging rates for travel locations in the contiguous United States -
U.S. General Services Administration website: https://www.gsa.gov/travel/plan-book/per-diem-rates/
Outside Contiguous United States (OCONUS):
(Alaska, Hawaii, and U.S. Territories/Possessions) -

The U.S. Department of Defense (DOD) maintains the M&IE rates and lodging rates for travel locations within Alaska, Hawaii and U.S. Territories/Possessions -
U.S. Department of Defense website: http://www.defensetravel.dod.mil/site/perdiemCalc.cfm
*If you receive security warning messages or alerts when attempting to open this link, click “yes” until you reach a “This site is not secure” page. Click “More information” or “Details” and click “Go on to the webpage (not recommended)”.

International Locations -

The U.S. Department of State (DOS) is the source for M&IE rates only for international travel locations-
U.S. Department of State website: https://aoprals.state.gov/web920/per_diem.asp
For international travel, payment for actual lodging expense is allowed.
Note for using federal websites:
For CONUS and OCONUS travel, if SMART is not accessible, employees may access subsistence rates through the federal websites.  However interim federal website updates may occur subsequent to the semi-annual SMART updates each October 1 and April 1.  CONUS rates are published on an annual basis, but the annual file is updated periodically throughout the year with no interim files published.  OCONUS and international rates are updated and published on a monthly basis.  Be aware that any interim updates for CONUS or OCONUS locations are not valid until reflected in SMART.  For international travel, only the October 1 and April 1 subsistence files should be used to locate the M&IE rates.
 
If employees utilize the federal websites to find M&IE and lodging rates, those rates should be used as follows:
Rates published October 1 - for travel occurring between October 1 and March 31 of each year.
Rates published April 1 - for travel occurring between April 1 and September 30 of each year.

Lodging Expense Limitations:

K.S.A. 75-3207a(f) provides that the daily lodging expense limitations established may be exceeded, upon approval by the agency head or designee, by the lesser of either: (1) an additional 50% of the applicable lodging expense limitation, or (2) the actual lodging expense incurred.

These lodging limits continue to be applied to the lodging rate before taxes.  Thus, the amount reimbursed or paid for lodging expenses may exceed the established lodging limitation by as much as the amount of associated taxes.

Conference Lodging qualified under K.A.R. 1-16-18a(c):

Agencies may authorize payment or reimbursement for actual lodging expenses when an employee is required or authorized to attend a conference, and the lodging rate exceeds the applicable lodging expense limitation (including the additional 50%).  The agency head must be provided with conference materials and rates.  These should be maintained with travel documentation.

Reduced Meal Allowance:

If the cost of meals is included within the cost of registration fees or other fees and charges paid by the agency or provided at no cost to the employee, the daily M&IE rate for the travel location should be reduced based on the percentages listed below.  For partial days, the quarter amount is calculated first and then the reduction percentage is applied.  The daily M&IE reduction percentages are as follows:

Same Day Meal Allowance:

Reimbursement for a same day meal, in accordance with K.A.R. 1-16-18(c)(2), is calculated as a percentage of the daily M&IE rate for the travel location, based on the approved meal, as follows:

Queries in SMART to Obtain M&IE Rates and Lodging Rates:

A query “KS_EX_CONUS_RATES” is available in SMART to obtain all CONUS and OCONUS locations with the daily M&IE rates, meal reductions and lodging rates. Historical locations and rates from each semi-annual update will be maintained in SMART.

JG:nr:te

Printable version: 22-A-004

Summary: NRA Payments and Form 1042 Information Returns

IRS requirements for recording tax liabilities and payments:

A tax liability is created at the time a payment of income, not related to a payroll transaction, is made to a Nonresident Alien (NRA) or a foreign person. The State of Kansas is one entity which means NRA payments for all Regent institutions are combined to determine the tax liability. If at the end of any quarter-monthly period a total tax liability of $2,000 or more exists, a tax deposit must be made within 3 business days of the quarter-monthly period. A quarter-monthly period is the 7^th, 15^th, 22^nd and last day of the month for any given month. Late tax payments are subject to penalties and interest which range from 1-10% depending on the number of days the payment is late.

State of Kansas accumulation of payment information and payments:

The Office of Accounts and Reports (OAR) accumulates payment information as submitted via ManageEngine Service Desk from each Regent institution. OAR currently tracks this data in an Access database. To be compliant with the IRS, payment information should be submitted to OAR by the Regent institution weekly in conjunction with the quarter-monthly periods. However, we realize this timeline has not previously been communicated. Therefore, at a minimum the payment information must be submitted to OAR by the Regent institution monthly, no later than the last day of the month. OAR will pay to the IRS the tax due for the month within 3 business days of the end of the month.

Regent institution NRA reportable payment information requirements:

• Excel template titled ‘NRA WORKBOOK’ – see attached.
• Beginning with line 3 on the NRA WORKBOOK, one line shall be entered for each payment
• When submitting to OAR via ManageEngine Service Desk, use a Subject of NRA payments MM/YY

To ensure a timely payment to the IRS based on the tax due as submitted on the NRA reportable payment information, OAR will enter a GL journal within 3 days of receiving the NRA WORKBOOK to transfer the withholding taxes from the Regent institution funding provided in the NRA WORKBOOK to the Department of Administration.

Annual 2021 filing:

In preparation for calendar year 2021 reporting, OAR will send to each Regent institution a spreadsheet of transactions accumulated for 2021 payments January through November. The spreadsheet of transactions will be sent by December 15, 2021 and shall be verified and returned to OAR by December 31, 2021.

NRA reportable payment information for December shall be submitted to OAR via ManageEngine Service Desk no later than December 31, 2021.

Attachment: NRA WORKBOOK

Printable version: 22-A-003

Summary: FY 2022 Meals and Incidental Expense (M&IE) and Lodging Rates for travel occurring on and after July 1, 2021

As authorized by K.S.A. 75-3207a, the Secretary of Administration has fixed subsistence rates for FY 2022. The U.S. General Services (GSA) has announced the CONUS standard rate for lodging and M&IE effective April 1, 2021.  The GSA standard lodging rate remains $96.00. The standard M&IE rate remains $55.00.

For State of Kansas travel, federal per diem rates are followed to determine subsistence allowances. The CONUS per diem rate for an area is divided into two components: the lodging allowance and the meals & incidental expense (M&IE) allowance. These per diem rates are based on travel location and travel dates (seasonal rates may be listed for some locations).  If a specific travel location is not listed (or within the location definition), the standard rate, or “other” location rate is used. The following standard rates apply to many locations across the contiguous United States (CONUS).

For CONUS locations, the following standard daily subsistence rates apply for travel which occurs on April 1, 2021 and thereafter:

Meals & Incidental (M&IE) -    $55.00
Lodging Allowance Rate -       $96.00

The Employee Travel Expense Reimbursement Handbook is updated to include this information regarding subsistence for travel occurring on and after July 1, 2021.

SMART maintains the official subsistence rates for CONUS and OCONUS travel locations and will be updated semi-annually each October 1 and April 1 for any interim rate changes which have occurred.  International subsistence rates are not loaded into SMART.  For international travel locations, employees will obtain M&IE rates directly from the U.S. Department of State (DOS) website listed below.  For international travel, payment for actual lodging expense is allowed.

Source of Subsistence Rates:

Contiguous United States (CONUS)-

The U.S. General Services Administration (GSA) maintains the M&IE rates and lodging rates for travel locations in the contiguous United States -
U.S. General Services Administration website:  https://www.gsa.gov/travel/plan-book/per-diem-rates/
Outside Contiguous United States (OCONUS): (Alaska, Hawaii, and U.S. Territories/Possessions) -

The U.S. Department of Defense (DOD) maintains the M&IE rates and lodging rates for travel locations within Alaska, Hawaii and U.S. Territories/Possessions -
U.S. Department of Defense website: http://www.defensetravel.dod.mil/site/perdiemCalc.cfm 
If you receive security warning messages or alerts when attempting to open this link, click “yes” until you reach a “This site is not secure” page. Click “More information” or “Details” and click “Go on to the webpage (not recommended)”.

International Locations -

The U.S. Department of State (DOS) is the source for M&IE rates only for international travel locations-
U.S. Department of State website: https://aoprals.state.gov/web920/per_diem.asp
For international travel, payment for actual lodging expense is allowed.
Note for using federal websites:
For CONUS and OCONUS travel, if SMART is not accessible, employees may access subsistence rates through the federal websites.  However interim federal website updates may occur subsequent to the semi-annual SMART updates each October 1 and April 1.  CONUS rates are published on an annual basis, but the annual file is updated periodically throughout the year with no interim files published.  OCONUS and international rates are updated and published on a monthly basis.  Be aware that any interim updates for CONUS or OCONUS locations are not valid until reflected in SMART.  For international travel, only the October 1 and April 1 subsistence files should be used to locate the M&IE rates.
 
If employees utilize the federal websites to find M&IE and lodging rates, those rates should be used as follows:
Rates published October 1 - for travel occurring between October 1 and March 31 of each year.
Rates published April 1 - for travel occurring between April 1 and September 30 of each year.

Lodging Expense Limitations:

K.S.A. 75-3207a(f) provides that the daily lodging expense limitations established may be exceeded, upon approval by the agency head or designee, by the lesser of either: (1) an additional 50% of the applicable lodging expense limitation, or (2) the actual lodging expense incurred.

These lodging limits continue to be applied to the lodging rate before taxes.  Thus, the amount reimbursed or paid for lodging expenses may exceed the established lodging limitation by as much as the amount of associated taxes.

Conference Lodging qualified under K.A.R. 1-16-18a(c):

Agencies may authorize payment or reimbursement for actual lodging expenses when an employee is required or authorized to attend a conference, and the lodging rate exceeds the applicable lodging expense limitation (including the additional 50%).  The agency head must be provided with conference materials and rates.  These should be maintained with travel documentation.

Reduced Meal Allowance:

If the cost of meals is included within the cost of registration fees or other fees and charges paid by the agency or provided at no cost to the employee, the daily M&IE rate for the travel location should be reduced based on the percentages listed below.  For partial days, the quarter amount is calculated first and then the reduction percentage is applied.  The daily M&IE reduction percentages are as follows:

Same Day Meal Allowance:

Reimbursement for a same day meal, in accordance with K.A.R. 1-16-18(c)(2), is calculated as a percentage of the daily M&IE rate for the travel location, based on the approved meal, as follows:

Queries in SMART to Obtain M&IE Rates and Lodging Rates:

A query “KS_EX_CONUS_RATES” is available in SMART to obtain all CONUS and OCONUS locations with the daily M&IE rates, meal reductions and lodging rates. Historical locations and rates from each semi-annual update will be maintained in SMART.

JG:te

Printable version of 22-A-002

Summary: FY 2022 Private Reimbursement Mileage Rates

The Internal Revenue Service (IRS) has announced the standard mileage rates effective July 1, 2021. All rates remain unchanged. The IRS rate for privately owned automobiles remains 56 cents per mile, the motorcycle rate remains 54 cents per mile, the moving reimbursement rate remains 16 cents per mile, and the airplane reimbursement rate remains $1.26 per air mile.

K.S.A. 75-3203a provides that the mileage reimbursement rates shall not exceed the lowest of the following:

1. the rate allowed by the IRS;
2. the rate used in preparing the governor's budget report under K.S.A. 75-3721, and amendments thereto; or
3. any revision of the rate as specifically directed in appropriation acts of the legislature.

Thus, per the requirements of K.S.A. 75-3203a, the Department of Administration has published the rates for mileage reimbursement for FY 2022, effective July 1, 2021:

• 56¢ per mile for privately owned automobile
• 54¢ per mile for privately owned motorcycle
• $1.26 per mile for privately owned airplane (based on air miles rather than highway miles)
• 16¢ per mile for moving mileage rate

JG:me:te

Printable version of 22-A-001

Summary: FY 2021 Private Vehicle Mileage Rates

As authorized by K.S.A. 75-3203a, the Secretary of Administration has fixed the private vehicle maximum mileage reimbursement rates for FY 2021 at: 

$  .575 per mile for privately-owned automobiles.

$  .545 per mile for privately-owned motorcycles.

$1.27 per mile for privately-owned airplanes.

$  .17 per mile for moving related mileage.

Travel Center for State Employees

For more details on reimbursement of mileage for the use of privately-owned conveyances, please see the Employee Travel Reimbursement Handbook, Section 3100 which can be found on the Travel Center for State Employees page.

JG:me:te

Printable Version of 21-A-001

Summary: FY 2021 Meals and Incidental Expense (M&IE) and Lodging Rates

As authorized by K.S.A. 75-3207a, the Secretary of Administration has fixed subsistence rates for FY 2021.  The Employee Travel Expense Reimbursement Handbook is updated to include policies regarding subsistence allowances for travel occurring in FY 2021. 

For State of Kansas travel, federal per diem rates are followed to determine subsistence allowances. The CONUS per diem rate for an area is divided into two components: the lodging allowance and the meals & incidental expense (M&IE) allowance. These per diem rates are based on travel location and travel dates (seasonal rates may be listed for some locations).  If a specific travel location is not listed (or within the location definition), the standard rate, or “other” location rate is used.  The following standard rates apply to many locations across the contiguous United States (CONUS). 

For CONUS locations, the following standard daily subsistence rates apply for travel which occurs on July 1, 2020 and thereafter:

Meals & Incidental (M&IE) -    $55.00
Lodging Allowance Rate -       $96.00

These rates were effective January 1, 2020 and remain unchanged.  The M&IE and Lodging rates are updated semi-annually each October 1 and April 1 to follow CONUS per diem rates in effect on those dates. 

SMART maintains the official subsistence rates for CONUS and OCONUS travel locations and will be updated semi-annually each October 1 and April 1 for any interim rate changes which have occurred.  International subsistence rates are not loaded into SMART.  For international travel locations, employees will obtain M&IE rates directly from the U.S. Department of State (DOS) website listed below.  For international travel, payment for actual lodging expense is allowed.

Source of Subsistence Rates:

Contiguous United States (CONUS)-

The U.S. General Services Administration (GSA) maintains the M&IE rates and lodging rates for travel locations in the contiguous United States -
U.S. General Services Administration website:
https://www.gsa.gov/travel/plan-book/per-diem-rates/ 
 
Outside Contiguous United States (OCONUS):
(Alaska, Hawaii, and U.S. Territories/Possessions) -
The U.S. Department of Defense (DOD) maintains the M&IE rates and lodging rates for travel locations within Alaska, Hawaii and U.S. Territories/Possessions -
U.S. Department of Defense website: http://www.defensetravel.dod.mil/site/perdiemCalc.cfm

International Locations -

The U.S. Department of State (DOS) is the source for M&IE rates only for international travel locations-
U.S. Department of State website: https://aoprals.state.gov/web920/per_diem.asp
For international travel, payment for actual lodging expense is allowed.
Note for using federal websites:
For CONUS and OCONUS travel, if SMART is not accessible, employees may access subsistence rates through the federal websites.  However, interim federal website updates may occur after the semi-annual SMART updates each October 1 and April 1.  CONUS rates are published on an annual basis, but the annual file is updated periodically throughout the year with no interim files published.  OCONUS and international rates are updated and published monthly.  Be aware that any interim updates for CONUS or OCONUS locations are not valid until reflected in SMART.  For international travel, only the October 1 and April 1 subsistence files should be used to locate the M&IE rates.
 
If employees utilize the federal websites to find M&IE and lodging rates, those rates should be used as follows:
Rates published October 1 - for travel occurring between October 1 and March 31 of each year.
Rates published April 1 - for travel occurring between April 1 and September 30 of each year.

 Lodging Expense Limitations:

K.S.A. 75-3207a(f) provides that the daily lodging expense limitations established may be exceeded, upon approval by the agency head or designee, by the lesser of either: (1) an additional 50% of the applicable lodging expense limitation, or (2) the actual lodging expense incurred.

These lodging limits continue to be applied to the lodging rate before taxes.  Thus, the amount reimbursed or paid for lodging expenses may exceed the established lodging limitation by as much as the amount of associated taxes.

Conference Lodging qualified under K.A.R. 1-16-18a(c):

Agencies may authorize payment or reimbursement for actual lodging expenses when an employee is required or authorized to attend a conference, and the lodging rate exceeds the applicable lodging expense limitation (including the additional 50%).  The agency head must be provided with conference materials and rates.  These should be maintained with travel documentation.

Reduced Meal Allowance:

If the cost of meals is included within the cost of registration fees or other fees and charges paid by the agency or provided at no cost to the employee, the daily M&IE rate for the travel location should be reduced based on the percentages listed below.  For partial days, the quarter amount is calculated first and then the reduction percentage is applied.  The daily M&IE reduction percentages are as follows: 

 
Same Day Meal Allowance:

Reimbursement for a same day meal, in accordance with K.A.R. 1-16-18(c)(2), is calculated as a percentage of the daily M&IE rate for the travel location, based on the approved meal, as follows: 

Queries in SMART to Obtain M&IE Rates and Lodging Rates:

A query “KS_EX_CONUS_RATES” is available in SMART to obtain all CONUS and OCONUS locations with the daily M&IE rates, meal reductions and lodging rates.  SMART will be updated semi-annually with the October and April 1 CONUS and OCONUS subsistence rates.  Historical locations and rates from each semi-annual update will be maintained in SMART.

JG:me:te

Printable Version of 21-A-002

NOTIFICATION OF REIMBURSEMENT:

On August 3, 2020, the Strengthening People and Revitalizing Kansas (SPARK) Taskforce and Governor’s Office of Recovery approved a recommendation for state agencies to receive distributions from the Coronavirus Relief Fund for the operational COVID-19 costs incurred in FY20.  On August 10, 2020 the State Finance Council (SFC) approved the SPARK recommendations for reimbursement. A full list of agencies and amounts is provided as Attachment A, summarized by the following categories of reimbursed expenses:

1. Non-Personnel COVID-19 coded expenses between 3/1/20 and 6/30/20 that were not included in the first round of reimbursement disbursements from CRF and were not charged to other federal funds. 

2. Agency requests for FY 2020 operational transactions that did not get properly coded as COVID-19 related in SMART.

REVIEW & CERTIFICATION OF COMPLIANCE:

A general ledger journal was processed on August 11, 2020 to transfer the total approved reimbursement amount to the agency’s Coronavirus Relief Fund.  On August 12, 2020 the SMART Team will send a list of expenditures, summarized by funding source, to each agency through a ManageEngine Service Desk ticket. Your agency must review all lines to ensure the amount represents expenditures qualifying for reimbursement based on the federal guidelines in the CARES Act. See 42 U.S.C. § 801(d).

Upon further review by your agency, if all or part of the amounts on the list do not meet the requirements for reimbursement, the amount must be left out of the general ledger journal so that the expense amount is not transferred to the Coronavirus Relief Fund (CRF).  Then, contact your Division of Budget analyst to request for the amount to be returned to the Governor’s Office.  Amounts to be returned will be transferred back to the Governor’s Office CRF by the Office of Accounts and Reports, SMART Team.

PROCESSING INSTRUCTIONS:

Executive Directive 20-517 was implemented to create a CRF for use by each state agency for both FY 2020 and FY 2021. 

Immediate action is necessary for each agency to process a general ledger (GL) journal to reflect the expenditures, less any amounts to be returned, in the CRF by August 18, 2020.  To ensure expenditures are not duplicated in both FY 2020 and FY 2021, the instructions outlined in Attachment B must be followed.

Federal reporting requirements for CARES Act funds were released on July 31, 2020 and included categories that must be used to report expenditures.  To facilitate the federal reporting, values have been added to ChartField 2 in SMART so that each agency can assign the appropriate value corresponding to the correct federal category.  Each GL journal processed to record expenditures to the CRF must include the appropriate ChartField 2 value on every expenditure row for Fund 3753.  The rows can be split as needed to correctly report the federal category.  The ChartField 2 federal reporting values are shown below:

Questions about which category should be used for a specific expenditure should be directed to the Recovery Office contact listed below.  

IMPACT ON FY21 SPENDING AUTHORITY:

Any COVID expenditures that were funded from the State General Fund and that are approved for CRF reimbursement will be proposed to be lapsed during the upcoming 2021 Legislative Session in the Governor’s revised budget. During the Division of Budget review of your agency's revised FY 2021 budget report, a recommendation will include the lapse of any of the State General Fund moneys that are reimbursed. You should not consider this reimbursement as additional spending authority in FY 2021.  If a subsequent allotment by the Governor occurs in FY 2021 prior to the 2021 Legislature’s return, these funds would be lapsed at that time.  The goal of this lapse exercise is to reduce the magnitude of future budget cuts if the state’s fiscal situation does not improve.

IMPACT ON REPORTING TO DIVISION OF BUDGET:

With regards of showing these transactions in IBARS for the September 15, 2020, budget submission, the Division of the Budget will send out a separate communication to all agencies when IBARS opens on or around August 14, 2020.

FEDERAL REPORTING:

Your agency should be aware that receipt of these funds may require additional internal controls to comply with federal requirements. This includes compliance requirements that are established by Uniform Guidance (specifically reference Subpart F, section 200.501 for Audit Requirement thresholds).  Please make sure you are familiar with the documents required to be submitted for FY 2020 to the Office of Accounts and Reports related to the expenditure of federal funds.  

While you should have all other information on your DA-89 complete and ready to go, we will extend the final deadline for the DA-89 from August 14, 2020 to August 21, 2020, to ensure CFDA 21.019 (fund 3753) accurately reflects all receipts of CRF funds, net of any returns based on your final review and compliance certification, due August 21, 2020. 

If you have already submitted a certification and/or DA-89, an updated one may need to be submitted based on any changes with reimbursement amounts. If submitting an updated DA-89 or certification form, please put “revised” in the subject line of your email.

OTHER CRF AWARDS:

While COVID-19 personnel costs and admin leave expenses, for FY20, were not approved for reimbursement at this time, these expenses will remain in the pool of eligible expenses to be considered for future use of CRF funds. For further explanation of FY20 reimbursements and information regarding the request of additional CRF funds for FY21, please see the attached memo from Secretary of Administration, DeAngela Burns-Wallace.

If there are additional questions or concerns, you may submit a ManageEngine Service Desk ticket, or you may contact the following individuals:

Sunni Zentner             Manager, Statewide Accounting                      Sunni.Zentner@ks.gov

Nancy Ruoff                Manager, Statewide Payroll                            Nancy.Ruoff@ks.gov

Jill Martin                    Team Lead, Federal Reporting                        Jill.Martin@ks.gov

Jeff Arpin                     Principal Analyst, Division of Budget              Jeff.Arpin@ks.gov

Taylor Hawkins           Recovery Office                                               Taylor.Hawkins@ks.gov

JG:sz 

Printable Version of 21-A-003

Attachment A

Attachment B

FY 2021 Agency CRF Update Memo

Summary: FY 2021 Meals and Incidental Expenses (M&IE) and Lodging Rates

As authorized by K.S.A. 75-3207a, the Secretary of Administration has fixed subsistence rates for FY 2021. The U.S. General Services (GSA) has announced the CONUS standard rate for lodging and M&IE effective October 1, 2020.  The GSA standard lodging rate remains $96.00. The standard M&IE rate remains $55.00.

For State of Kansas travel, federal per diem rates are followed to determine subsistence allowances. The CONUS per diem rate for an area is divided into two components: the lodging allowance and the meals & incidental expense (M&IE) allowance. These per diem rates are based on travel location and travel dates (seasonal rates may be listed for some locations).  If a specific travel location is not listed (or within the location definition), the standard rate, or “other” location rate is used. The following standard rates apply to many locations across the contiguous United States (CONUS).

For CONUS locations, the following standard daily subsistence rates apply for travel which occurs on October 1, 2020 and thereafter:

Meals & Incidental (M&IE) - $55.00

Lodging Allowance Rate    - $96.00

The Employee Travel Expense Reimbursement Handbook is updated to include this information regarding subsistence for travel occurring on and after October 1, 2020.

SMART maintains the official subsistence rates for CONUS and OCONUS travel locations and will be updated semi-annually each October 1 and April 1 for any interim rate changes which have occurred.  International subsistence rates are not loaded into SMART.  For international travel locations, employees will obtain M&IE rates directly from the U.S. Department of State (DOS) website listed below.  For international travel, payment for actual lodging expense is allowed.

Source of Subsistence Rates:

Contiguous United States (CONUS)-

The U.S. General Services Administration (GSA) maintains the M&IE rates and lodging rates for travel locations in the contiguous United States -
U.S. General Services Administration website: https://www.gsa.gov/travel/plan-book/per-diem-rates/  
Outside Contiguous United States (OCONUS):
(Alaska, Hawaii, and U.S. Territories/Possessions) -

The U.S. Department of Defense (DOD) maintains the M&IE rates and lodging rates for travel locations within Alaska, Hawaii and U.S. Territories/Possessions -
U.S. Department of Defense website: http://www.defensetravel.dod.mil/site/perdiemCalc.cfm
If you receive security warning messages or alerts when attempting to open this link, click “yes” until you reach a “This site is not secure” page. Click “More information” or “Details” and click “Go on to the webpage (not recommended)”.

International Locations -

The U.S. Department of State (DOS) is the source for M&IE rates only for international travel locations-
U.S. Department of State website: https://aoprals.state.gov/web920/per_diem.asp
For international travel, payment for actual lodging expense is allowed.
Note for using federal websites:
For CONUS and OCONUS travel, if SMART is not accessible, employees may access subsistence rates through the federal websites.  However interim federal website updates may occur subsequent to the semi-annual SMART updates each October 1 and April 1.  CONUS rates are published on an annual basis, but the annual file is updated periodically throughout the year with no interim files published.  OCONUS and international rates are updated and published on a monthly basis.  Be aware that any interim updates for CONUS or OCONUS locations are not valid until reflected in SMART.  For international travel, only the October 1 and April 1 subsistence files should be used to locate the M&IE rates.
 
If employees utilize the federal websites to find M&IE and lodging rates, those rates should be used as follows:
Rates published October 1 - for travel occurring between October 1 and March 31 of each year.
Rates published April 1 - for travel occurring between April 1 and September 30 of each year.

Lodging Expense Limitations:

K.S.A. 75-3207a(f) provides that the daily lodging expense limitations established may be exceeded, upon approval by the agency head or designee, by the lesser of either: (1) an additional 50% of the applicable lodging expense limitation, or (2) the actual lodging expense incurred.

These lodging limits continue to be applied to the lodging rate before taxes.  Thus, the amount reimbursed or paid for lodging expenses may exceed the established lodging limitation by as much as the amount of associated taxes.

Conference Lodging qualified under K.A.R. 1-16-18a(c):

Agencies may authorize payment or reimbursement for actual lodging expenses when an employee is required or authorized to attend a conference, and the lodging rate exceeds the applicable lodging expense limitation (including the additional 50%).  The agency head must be provided with conference materials and rates.  These should be maintained with travel documentation.

Reduced Meal Allowance:

If the cost of meals is included within the cost of registration fees or other fees and charges paid by the agency or provided at no cost to the employee, the daily M&IE rate for the travel location should be reduced based on the percentages listed below.  For partial days, the quarter amount is calculated first and then the reduction percentage is applied.  The daily M&IE reduction percentages are as follows:

Same Day Meal Allowance:

Reimbursement for a same day meal, in accordance with K.A.R. 1-16-18(c)(2), is calculated as a percentage of the daily M&IE rate for the travel location, based on the approved meal, as follows: 

Queries in SMART to Obtain M&IE Rates and Lodging Rates:

A query “KS_EX_CONUS_RATES” is available in SMART to obtain all CONUS and OCONUS locations with the daily M&IE rates, meal reductions and lodging rates. Historical locations and rates from each semi-annual update will be maintained in SMART.

JG:te

Printable Version: 21-A-004

In accordance with KSA 75-3729 and the Department of Administration’s Policy Manual Filing 13,001 - Capital Asset Records, agencies must enter capital assets into the SMART Asset Management (AM) module when the asset is received and/or the asset is functional to accurately reflect the correct transactions for reporting on the Comprehensive Annual Financial Report (CAFR). To ensure compliance with state policies, the DA-87 Capital Asset Reporting Log will be required to record all capital asset transactions over the capitalization thresholds noted below. This includes the acquisition, disposal, and transfer of capital assets and any changes to existing capital assets reported in the SMART AM module.

NOTE: KDOT & Regent Institutions are exempt from the reporting requirements of the DA-87.

Assets with a cost meeting the established threshold and a useful life exceeding one year are reported as capital assets in the CAFR. It is the agency’s responsibility to ensure all capital assets are properly recorded in the SMART AM module.

The statewide capitalization thresholds for assets are as follows: 

Please note, two SMART queries are available to assist agencies in reviewing and reconciling capital asset transactions: 

• Capital Asset Inventory List Query - KS_AM_ASSET_CAPITAL_INV_LIST – The query provides a complete agency inventory of capital assets recorded in the SMART AM module (use data filters to select CAFR asset book).
• Capital Outlay Purchase Query - KS_AM_VCHRS_WITH_54XXXX_ACCT – The query provides  a list of vouchers using the capital outlay account codes for the specified dates.

DA-87 Capital Asset Reporting Log due dates:

For FY 2020 the DA-87 forms were due on October 15, January 15, April 15 and July 15 for the previous quarters (cumulative). 

Beginning in FY2021 the DA-87 forms will only be required twice a year.  On January 15 agencies must submit data for the first six months of the fiscal year (July 1 to December 31) and on July 15^th, agencies must submit data for the entire year (July 1 to June 30).  It is important to keep your capital asset entries up-to-date to avoid delays in getting the DA-87 submitted timely. 

Please submit the completed DA-87 log to the Financial Integrity Team (FIT) email: OCFO-FIT@ks.gov. For detailed instructions on completing the DA-87, please see the “Instructions” tab on the workbook.

If the agency does not have any capital asset changes to report for the period, please send an email to the FIT team noting that no assets were purchased or updated within the reporting period.  

Assets are entered in the SMART AM module in one of two ways.

1. Directly in AM via Express Add.  SMART Job Aid:  Adding An Asset Using Express Add
2. Via asset integration on the requisition, the purchase order or the voucher

Each agency must determine which method will be used and ensure all parties involved are aware of how assets will be entered.

SMART Asset Integration Tools:  Asset integration is a process by which asset information included on the requisition, purchase order and voucher can flow to the Asset Management Loader Tables. This allows assets to be loaded to the Asset Management module directly, eliminating the need to hand-key asset details such as profile ID, tag number, custodian, location and chartfield values in the AM module. It also links the asset to its originating voucher.

In SMART asset integration can begin on either the requisition or the purchase order for the purchase of new assets or on the voucher for new or existing assets. Agencies have the option of deciding where to begin asset integration in SMART. Detailed job aids are available for entering assets at each level of integration: http://www.smartweb.ks.gov/training/integration-materials/am-po-and-ap.

• Linking Vouchers with Asset Module  
  • AM Tool 5 - Beginning Asset Integration on Voucher
  • Reviewing the Transaction Loader Tables Job Aid
  • Agency Asset Processor's Role in Integration
• Construction-In-Progress (CIP) is recommended to be entered in SMART AM at the beginning of the project.
  • It is essential that all costs associated with a CIP asset are captured in AM. Agency staff must determine if integration will be used or if asset costs will be manually adjusted in AM. The agency must determine the best process to communicate CIP costs between the Accounts Payable and Asset Management modules. SMART Job Aid: CIP Assets

Capital Asset Reporting Reminders:  Agencies should keep SMART AM up-to-date to ensure all assets are entered before FY closing. If an error or omission is found after year-end closing, in addition to entering the correction in SMART AM, a detailed explanation should be included on the Form DA-82 Capital Asset Supplemental Information.

The following guidance is provided to assist in completing capital asset reporting:

• Capital asset physical inventories are to be completed annually. Inventories are recommended to be conducted prior to June 15th to allow for corrections/additions to be recorded in the SMART AM module prior to SMART Year-End deadlines.
• Verify correct Profile ID and Category Code are used for assets. Asset Profiles drive the depreciation and accounting entry creation for CAFR purposes, it is crucial that the correct Asset Profile is used.
  SMART Job Aid: Incorrect Asset Profiles and Corrections / Profile ID Section Job Aid
• Agencies should review Construction-In-Progress (CIP) before year-end closing to ensure all costs are included in the asset module. CIP costs can be entered directly into AM as an addition/adjustment on the Cost Adjust/Transfer page to add costs as expenditures are incurred.
  SMART Job Aid: CIP Assets
• Completed CIP assets need to be recategorized, the profile ID updated to a non-CIP profile, and other requirements completed as further defined in the job aid.
  SMART Job Aid: CIP Assets Assets (See Section: Steps to Perform After CIP Asset is Complete)
• All assets that have been sent to state surplus, sold, or otherwise no longer in the agency’s possession should be disposed of in the SMART AM module accordingly.
  SMART Job Aid: Retiring and Reinstating Assets
• Verify reported asset cost allocations, and update asset costs, if necessary.
  SMART Job Aid: Adjustments and Additions to Cost and/or Quantity
• For agencies utilizing integration, all outstanding Asset Integration Interface ID’s must be processed.
  SMART Job Aid: Reviewing Transaction Loader Tables

For assistance with entering/updating assets in SMART, please submit a SMART Service Desk ticket. For policy/recording questions please email the Statewide Agency Audit Services team at ARpreaudit@ks.gov.         

JG:te

Resources:
Policy Manual 13,001 Capital Asset Records
Form DA-87 Capital Asset Reporting Log
SMART Module of the Month Training – Safeguarding Assets

Additional SMART Asset Management job aids are available online via SMART Web.

Printable Version: 21-A-005

Summary: New 1099 Classes and Types, Updated Job Aids for Entering and Updating New Suppliers, Updating Voucher Withholding

• The IRS has redesigned the 1099 Forms for reporting of calendar year 2020 payments:
  1. The 1099-MISC has been revised and rearranged for certain types of income. For SMART purposes the following Class and Type changes have been made:
     • 1099-01 is now 1099M-01 – Rental Income
     • 1099-02 is now 1099M-02 – Royalties
     • 1099-03 is now 1099M-03 – Other Income
     • 1099-06 is now 1099M-06 – Medical and Health Care Services
     • 1099-14 is now 1099M-10 – Gross Proceeds Paid to an Attorney
  2. All other 1099 Forms (S, D, G, and I) had no significant revisions.
  3. The 1099-NEC has been created to report all income that falls under Non-Employee Compensation, formerly box 7 of the 1099-MISC. For SMART purposes the Class and Type is now 1099N-01.

• Updates to previously entered data in SMART for calendar year 2020:
  1. The Office of Accounts and Reports is currently working on updating all previously paid SMART vouchers for Calendar Year 2020, with payment dates from 01/01/2020 through the end of the year 12/31/2020, to the new Classes and Types.  This update occurred after nightly batch has completed on Monday, December 21, 2020.
  2. The Office of Accounts and Reports is currently working on updating all reportable Suppliers to include the new Classes and Types. The current default flag for these suppliers will mirror to the new Class and Type of its equal.  This update occurred after nightly batch has completed on Monday, December 21, 2020.
• Entering new suppliers in SMART:
  1. In order to ensure the integrity of past data, the Office of Accounts and Reports will not be removing the Class Type of 1099. Please do not use for future setup of suppliers.
  2. For new suppliers, the Classes 1099M or 1099N will need to be used on the 1099 withholding page for those suppliers that previously would have fallen under the Class of 1099. All other Classes (I, G, and S) will still be available to use as needed.
  3. Please review the updated Job Aids below.
•  Updating voucher withholding:

1. This process has not significantly changed. Please review Classes and Types available for the Supplier. If the Class and Type needed is not available for use on the specific location, a TM-21 will need to be completed and submitted to the Supplier Maintenance team via a ManageEngine Service Desk ticket.
2. Once the voucher has been entered, click on the Withholding link and choose the Class and Type that corresponds to the specific payment.
3. Please review the updated Job Aids below.

Additional Resources:

Training guide for setting up Suppliers for 1099 reporting and an account code guide: 

https://www.smartweb.ks.gov/docs/default-source/ap---vendors---training-guides/1099-and-withholding-training-guide.doc?sfvrsn=2c36263b_10

Training guide for Entering New Suppliers:

https://www.smartweb.ks.gov/docs/default-source/ap---vendors---training-guides/creating-new-smart-supplier-record.docx?sfvrsn=41ae263b_12

Training guide for Checking for Existing Suppliers:

https://www.smartweb.ks.gov/docs/default-source/ap---vendors---training-guides/check-for-existing-supplier-record.docx?sfvrsn=a4dc273b_16

IRS guide to each Type of 1099, including instructions for each:

IRS Online Instructions for Forms

Printable Version: 21-A-006

 Summary: Procedures for filing calendar year 2020 Form 1099 Information Returns for non-SMART payments and payments in SMART without the required 1099 information

• Requirements to report payments where the 1099 data was not recorded in SMART:

1. The supplier/client must be in the Statewide Management, Accounting and Reporting Tool (SMART) Supplier table.
2. All reportable payments must be submitted via ManageEngine Service Desk using the EXCEL template referenced below.
3. The Office of Accounts and Reports processes the payments submitted viaManageEngine Service Desk using SMART. SMART generates the paper 1099swhich are mailed to the suppliers. The 1099 information is electronically submitted to the IRS. 

There is NO option for the agency to print the forms and have the Office of Accounts and Reports report to the IRS.

Policy and procedures:

While most 1099 transactions are recorded in SMART and require no additional action by state agencies, there are some payments that occur outside of SMART or the information to be reported to the IRS is not in SMART. These transactions result in unique reporting procedures comprised of the following:

1. Locally administered interest payments of $10 or more are to be reported on IRS Form 1099-INT. These payments typically represent interest paid from trust funds to clients of institutions with the Department for Aging and Disability Services and the Department of Corrections.

2. Other payments such as non-employee awards not paid directly to the recipient from SMART.

To report non-SMART payments for Form 1099 purposes the agency must confirm the supplier is in the SMART Supplier table with the appropriate 1099 type and class, and ensure that withholding is turned on. If the supplier is not in the Supplier table, the agency must add the supplier to SMART including the appropriate 1099 type and class and turn withholding on.

Complete the EXCEL template “PS_WTHD_TRAN_TBL_update_template” (link to the Excel document is included at the bottom of this circular) for all non-SMART 1099 reportable payments. The completed template needs to be received by the Office of Accounts and Reports by January 8, 2021 to ensure the 1099s are distributed by the February 1, 2021 deadline.

The template has the columns listed below. Do not insert or delete columns or rows. Do not change the formatting. Beginning with line 2 (replacing the sample data), complete one line for each payment (add lines as necessary for additional withholding types/classes). The gray columns are defaults and should not be changed. If 499 lines are not sufficient, copy line 500 down. When completed, attach the EXCEL spreadsheet to a ManageEngine Service Desk ticket with the Title “Non-SMART 1099”. Note if you have leading zeros precede them with an apostrophe (e.g. Supplier ID ‘0000123456).

BUSINESS_UNIT: 5 digits with leading zeros, as assigned by SMART (agency number)

WTHD_ENTITY: IRS

WTHD_TYPE: as listed in the supplier table (1099M, 1099N, 1099I, 1099G)

WTHD_JUR_CD: FED

WTHD_CLASS: as listed in the supplier table, with leading zeros

WTHD_RULE: RULE0

SUPPLIER_SETID: SOKID

SUPPLIER_ID: 10 digits with leading zeros, as assigned by SMART

SUPPLIER_LOC: the supplier location with the 1099 withholding type and class entered in column C and E, usually 001, with leading zeros

ADDRESS_SEQ_NUM: 1

PYMNT_ID: Blank

SUPPLIER FEIN OR SSN: SSN or FEIN, 9 digits including leading zeros

PYMNT_DT: date of payment, mm/dd/yyyy format

WTHD_DECL_DATE: same as date of payment

WTHD_BASIS_AMT: the taxable amount for this 1099 type and class for 2020

DESCR100: 100 characters of your choice – alpha and numerical characters only (no punctuation, no special characters)

Additional Resources:

Training guide for setting up suppliers for 1099 reporting and an account code guide: 1099 and Withholding Training Guide

IRS guide to each type of 1099, including instructions for each: IRS Online Instructions for Forms

PS_WTHD_TRAN_TBL_update_template

Printable Version: 21-A-007

Summary: Updated FY 2021 Private Vehicle Mileage Rates

The Internal Revenue Service (IRS) has announced changes in the standard mileage rates effective January 1, 2021.  The IRS rate for privately owned automobiles decreases to 56 cents per mile, while the motorcycle rate decreases to 54 cents per mile, and the moving reimbursement rate decreases to 16 cents per mile. The airplane reimbursement rate decreases to $1.26 per air mile.

K.S.A. 75-3203a provides that the mileage reimbursement rates shall not exceed the lowest of the following:

1. the rate allowed by the IRS;
2. the rate used in preparing the governor’s budget report under K.S.A. 75-3721, and amendments thereto; or
3. any revision of the rate as specifically directed in appropriation acts of the legislature.

Thus, per the requirements of K.S.A. 75-3203a, the Department of Administration has adjusted the rates for mileage reimbursement for the remainder of FY 2021, effective January 1, 2021:

• 56¢ per mile for privately owned automobile
• 54¢ per mile for privately owned motorcycle
• $1.26 per mile for privately owned airplane (based on air miles rather than highway miles)
• 16¢ per mile for moving mileage rate

NOTE: Any agency that processed a mileage reimbursement on or after January 1^st for travel that occurred on or after January 1, 2021 and used the previously published rates will need to calculate the difference and either:

• process that amount through payroll as fringe benefit income; or

• reduce that amount from future mileage reimbursements that occur in 2021

JG:me:te

Printable Version: 21-A-008

Summary: Agencies must segregate all new COVID relief awards in SMART.

As the Recovery Office shifts its focus from fund allocation and administration to providing targeted support and strategic guidance to recipient agencies, the Office of Accounts and Reports will support the ongoing tracking and reporting of statewide COVID-19 related spending.

Accounting for federal expenditures in SMART should clearly delineate between:

• CARES Act Coronavirus Relief Funds (CRF) (tracked in fund 3753 and in accordance with specific guidance in the attached checklist)
• CARES Act Non-CRF Awards
• New awards received under the December 2020 HR133 bill
• Additional federal relief packages/bills received in the future
• Other COVID-19 related spending from existing federal funds (identified with use of program code 21662 and not in a funding stream for one of the other categories listed here)

Therefore, the Director of Accounts and Reports is directing all agencies in receipt of COVID-19 relief awards to create and communicate unique funding streams using a combination of budget units, project codes, and/or program codes.  Please note this does not supersede any accounting guidance or policies regarding the tracking of the Coronavirus Relief Funds (per attached checklist) or regarding the relationship between SMART funds and federal CFDA #s.  This requirement is retroactive to the beginning of fiscal year 2021.

Agencies can submit an online SMART ChartField Request to add new budget unit(s) for federal funds as is deemed necessary.  At the time of the request, please also confirm the full award amount allocated or received, by uploading the award letter or other document in the SMART ChartField Request page.  If project codes are used instead of a new budget unit, please submit a ManageEngine Service Desk ticket to send documentation of the award amount and provide the fund, budget unit, and project code where the award will be tracked.  When establishing new budget units or project codes, please include either CARES or HR133 (or future relief bills as is appropriate) in the description for clarity in tracking/reporting.

If there are additional questions or concerns, you may submit a ManageEngine Service Desk ticket, or you may contact the following individuals:

Sunni Zentner            Manager, Statewide Accounting                   Sunni.Zentner@ks.gov

Nancy Haufler            Team Lead, SMART Processing Team        Nancy.Haufler@ks.gov

Jill Martin                     Team Lead, Federal Reporting                   Jill.Martin@ks.gov

Jeff Arpin                     Principal Analyst, Division of Budget          Jeff.Arpin@ks.gov

State Agency CRF Tracking and Reporting FAQ Checklist

JG:sz 

Printable version: 21-A-009

Summary: Schedule of accounting events relevant to the closing of Fiscal Year (FY) 2021 and the opening of Fiscal Year (FY) 2022

K.S.A. 75-3002 establishes the state fiscal year as commencing on the first day of July in each year and closing on the thirtieth day of June of the succeeding year. For fiscal year 2021 activity to be completed by June 30th, SMART will be closed to agencies from Monday, June 28, 2021 through Wednesday, June 30, 2021.

SMART will be open to agencies on Saturday, June 26, 2021 and Sunday, June 27, 2021.

See attachments:
FY21_Events_to_Close_FY21_Open_FY22
FY21_Close_Day_by_Day_Summary
 

Printable version: 20-A-14

Summary: FY 2020 Private Vehicle Mileage Rates

As authorized by K.S.A. 75-3203a, the Secretary of Administration has fixed the private vehicle maximum mileage reimbursement rates for FY 2020 at:

$ .58 per mile for privately-owned automobiles.
$ .55 per mile for privately-owned motorcycles.
$1.26 per mile for privately-owned airplanes.
$ .20 per mile for moving related mileage.

For more details on reimbursement of mileage for the use of privately-owned conveyances, please see the Employee Travel Reimbursement Handbook, Section 3100 which can be found on the Travel Center for State Employees website.

ME:te
Printable Version of 20-A-001

Summary: FY 2020 Meals and Incidental Expense (M&IE) and Lodging Rates

As authorized by K.S.A. 75-3207a, the Secretary of Administration has fixed subsistence rates for FY 2020.  The Employee Travel Expense Reimbursement Handbook is updated to include policies regarding subsistence allowances for travel occurring in FY 2020.

For State of Kansas travel, federal per diem rates are followed to determine subsistence allowances. The CONUS per diem rate for an area is divided into two components: the lodging allowance and the meals & incidental expense (M&IE) allowance. These per diem rates are based on travel location and travel dates (seasonal rates may be listed for some locations).  If a specific travel location is not listed (or within the location definition), the standard rate, or “other” location rate is used.  The following standard rates apply to many locations across the contiguous United States (CONUS).

For CONUS locations, the following standard daily subsistence rates apply for travel which occurs on July 1, 2019 and thereafter:

Meals & Incidental (M&IE) - $55.00

Lodging Allowance Rate    - $94.00

These rates were effective October 1, 2018 and remain unchanged.  The M&IE and Lodging rates are updated semi-annually each October 1 and April 1 to follow CONUS per diem rates in effect on those dates.

SMART maintains the official subsistence rates for CONUS and OCONUS travel locations and will be updated semi-annually each October 1 and April 1 for any interim rate changes which have occurred.  International subsistence rates are not loaded into SMART.  For international travel locations, employees will obtain M&IE rates directly from the U.S. Department of State (DOS) website listed below.  For international travel, payment for actual lodging expense is allowed.

Source of Subsistence Rates:

Contiguous United States (CONUS) -

The U.S. General Services Administration (GSA) maintains the M&IE rates and lodging rates for travel locations in the contiguous United States -
U.S. General Services Administration website: https://www.gsa.gov/travel/plan-book/per-diem-rates/
Outside Contiguous United States (OCONUS):
  (Alaska, Hawaii, and U.S. Territories/Possessions) -

The U.S. Department of Defense (DOD) maintains the M&IE rates and lodging rates for travel locations within Alaska, Hawaii and U.S. Territories/Possessions -
U.S. Department of Defense website: http://www.defensetravel.dod.mil/site/perdiemCalc.cfm

International Locations -

The U.S. Department of State (DOS) is the source for M&IE rates only for international travel locations-
U.S. Department of State website: https://aoprals.state.gov/web920/per_diem.asp
For international travel, payment for actual lodging expense is allowed.
Note for using federal websites:

For CONUS and OCONUS travel, if SMART is not accessible, employees may access subsistence rates through the federal websites. However, interim federal website updates may occur after the semi-annual SMART updates each October 1 and April 1. CONUS rates are published on an annual basis, but the annual file is updated periodically throughout the year with no interim files published. OCONUS and international rates are updated and published monthly. Be aware that any interim updates for CONUS or OCONUS locations are not valid until reflected in SMART. For international travel, only the October 1 and April 1 subsistence files should be used to locate the M&IE rates.

If employees utilize the federal websites to find M&IE and lodging rates, those rates should be used as follows:

Rates published October 1 - for travel occurring between October 1 and March 31 of each year.
Rates published April 1 - for travel occurring between April 1 and September 30 of each year.

Lodging Expense Limitations:

K.S.A. 75-3207a(f) provides that the daily lodging expense limitations established may be exceeded, upon approval by the agency head or designee, by the lesser of either: (1) an additional 50% of the applicable lodging expense limitation, or (2) the actual lodging expense incurred.

These lodging limits continue to be applied to the lodging rate before taxes.  Thus, the amount reimbursed or paid for lodging expenses may exceed the established lodging limitation by as much as the amount of associated taxes.

Conference Lodging qualified under K.A.R. 1-16-18a(c):

Agencies may authorize payment or reimbursement for actual lodging expenses when an employee is required or authorized to attend a conference, and the lodging rate exceeds the applicable lodging expense limitation (including the additional 50%).  The agency head must be provided with conference materials and rates.  These should be maintained with travel documentation.

Reduced Meal Allowance:

If the cost of meals is included within the cost of registration fees or other fees and charges paid by the agency or provided at no cost to the employee, the daily M&IE rate for the travel location should be reduced based on the percentages listed below.  For partial days, the quarter amount is calculated first and then the reduction percentage is applied.  The daily M&IE reduction percentages are as follows:

 
Same Day Meal Allowance:

Reimbursement for a same day meal, in accordance with K.A.R. 1-16-18(c)(2), is calculated as a percentage of the daily M&IE rate for the travel location, based on the approved meal, as follows:

Queries in SMART to Obtain M&IE Rates and Lodging Rates:

A query “KS_EX_CONUS_RATES” is available in SMART to obtain all CONUS and OCONUS locations with the daily M&IE rates, meal reductions and lodging rates.  SMART will be updated semi-annually with the October and April 1 CONUS and OCONUS subsistence rates.  Historical locations and rates from each semi-annual update will be maintained in SMART.

ME:te
Printable Version of 20-A-002

Summary: New Account Code for Employer Assessment for State Paid Family Medical Leave Programs

As a result of the implementation of state paid family medical leave programs, a new account code has been added to SMART to use for employer contribution expenditure tracking. The following account code was made effective in SMART as of January 1, 2019 and is eligible to be used starting immediately.

This account code is to be used to record employer contributions for state paid family and medical leave programs that are being implemented under new legislation in various states. At this time, the State of Kansas is subject to contributions for employees in the State of Washington and the District of Columbia. Other states may implement similar programs in the future.

NTR:abe
Printable Version of 20-A-003

As authorized by K.S.A. 75-3207a, the Secretary of Administration has fixed subsistence rates for FY 2020. The U.S. General Services (GSA) has announced a change in the CONUS standard rate for lodging and M&IE effective October 1, 2019.  The GSA standard lodging rate has been increased to $96.00. The standard M&IE rate remains $55.00.

For State of Kansas travel, federal per diem rates are followed to determine subsistence allowances. The CONUS per diem rate for an area is divided into two components: the lodging allowance and the meals & incidental expense (M&IE) allowance. These per diem rates are based on travel location and travel dates (seasonal rates may be listed for some locations).  If a specific travel location is not listed (or within the location definition), the standard rate, or “other” location rate is used. The following standard rates apply to many locations across the contiguous United States (CONUS).

For CONUS locations, the following standard daily subsistence rates apply for travel which occurs on October 1, 2019 and thereafter:

The Employee Travel Expense Reimbursement Handbook is updated to include this information regarding subsistence for travel occurring on and after October 1, 2019.

SMART maintains the official subsistence rates for CONUS and OCONUS travel locations and will be updated semi-annually each October 1 and April 1 for any interim rate changes which have occurred.  International subsistence rates are not loaded into SMART.  For international travel locations, employees will obtain M&IE rates directly from the U.S. Department of State (DOS) website listed below.  For international travel, payment for actual lodging expense is allowed.

Source of Subsistence Rates:

Contiguous United States (CONUS) -

The U.S. General Services Administration (GSA) maintains the M&IE rates and lodging rates for travel locations in the contiguous United States -
U.S. General Services Administration website:
https://www.gsa.gov/travel/plan-book/per-diem-rates/

Outside Contiguous United States (OCONUS):

(Alaska, Hawaii, and U.S. Territories/Possessions) -

The U.S. Department of Defense (DOD) maintains the M&IE rates and lodging rates for travel locations within Alaska, Hawaii and U.S. Territories/Possessions -
U.S. Department of Defense website: http://www.defensetravel.dod.mil/site/perdiemCalc.cfm
If you receive security warning messages or alerts when attempting to open this link, click “yes” until you reach a “This site is not secure” page. Click “More information” or “Details” and click “Go on to the webpage (not recommended)”

International Locations -

The U.S. Department of State (DOS) is the source for M&IE rates only for international travel locations-
U.S. Department of State website: https://aoprals.state.gov/web920/per_diem.asp
For international travel, payment for actual lodging expense is allowed.
Note for using federal websites:

For CONUS and OCONUS travel, if SMART is not accessible, employees may access subsistence rates through the federal websites. However interim federal website updates may occur subsequent to the semi-annual SMART updates each October 1 and April 1. CONUS rates are published on an annual basis, but the annual file is updated periodically throughout the year with no interim files published. OCONUS and international rates are updated and published on a monthly basis. Be aware that any interim updates for CONUS or OCONUS locations are not valid until reflected in SMART. For international travel, only the October 1 and April 1 subsistence files should be used to locate the M&IE rates.

If employees utilize the federal websites to find M&IE and lodging rates, those rates should be used as follows:

Rates published October 1 - for travel occurring between October 1 and March 31 of each year.
Rates published April 1 - for travel occurring between April 1 and September 30 of each year.

Lodging Expense Limitations:

K.S.A. 75-3207a(f) provides that the daily lodging expense limitations established may be exceeded, upon approval by the agency head or designee, by the lesser of either: (1) an additional 50% of the applicable lodging expense limitation, or (2) the actual lodging expense incurred.

These lodging limits continue to be applied to the lodging rate before taxes.  Thus, the amount reimbursed or paid for lodging expenses may exceed the established lodging limitation by as much as the amount of associated taxes.

Conference Lodging qualified under K.A.R. 1-16-18a(c):

Agencies may authorize payment or reimbursement for actual lodging expenses when an employee is required or authorized to attend a conference, and the lodging rate exceeds the applicable lodging expense limitation (including the additional 50%).  The agency head must be provided with conference materials and rates.  These should be maintained with travel documentation.

Reduced Meal Allowance:

If the cost of meals is included within the cost of registration fees or other fees and charges paid by the agency or provided at no cost to the employee, the daily M&IE rate for the travel location should be reduced based on the percentages listed below.  For partial days, the quarter amount is calculated first and then the reduction percentage is applied.  The daily M&IE reduction percentages are as follows:

 
Same Day Meal Allowance:

Reimbursement for a same day meal, in accordance with K.A.R. 1-16-18(c)(2), is calculated as a percentage of the daily M&IE rate for the travel location, based on the approved meal, as follows:

Queries in SMART to Obtain M&IE Rates and Lodging Rates:

A query “KS_EX_CONUS_RATES” is available in SMART to obtain all CONUS and OCONUS locations with the daily M&IE rates, meal reductions and lodging rates. Historical locations and rates from each semi-annual update will be maintained in SMART.

JG:me:te
Printable Version of 20-A-004

Summary: Procedures for Filing Calendar Year 2019 Form 1099 Information Returns for non-SMART payments and payments in SMART without the required 1099 information

• Requirements to report payments where the 1099 data was not recorded in SMART:

  1. The supplier/client must be in the Statewide Management, Accounting and Reporting Tool (SMART) supplier table.
  2. All reportable payments must be submitted via Service Desk using the EXCEL template referenced below
  3. The Office of Accounts and Reports processes the payments submitted via Service Desk using SMART. SMART generates the paper 1099s which are mailed to the suppliers. The 1099 information is electronically submitted to the IRS.

There is NO option for the agency to print the forms and have the Office of Accounts and Reports report to the IRS.

Policy and procedures:

While most 1099 transactions are recorded in SMART, and require no additional action by state agencies; there are some payments that occur outside of SMART or the information to be reported to the IRS is not in SMART. These transactions result in unique reporting procedures comprised of the following:

• Locally administered interest payments of $10 or more are to be reported on IRS Form 1099-INT. These payments typically represent interest paid from trust funds to clients of institutions with the Department for Aging and Disability Services and the Department of Corrections.
• Other payments such as non-employee awards not paid directly to the recipient from SMART.

To report non-SMART payments for form 1099 purposes the agency must confirm the supplier is in the SMART supplier table with the appropriate 1099 type and class, and ensure that withholding is turned on. If the supplier is not in the supplier table, the agency must add the supplier to SMART including the appropriate 1099 type and class, and turn withholding on.

Complete the EXCEL template “PS_WTHD_TRAN_TBL_update_template” (link to the Excel document is included at the bottom of this circular) for all non-SMART 1099 reportable payments. The completed template needs to be received by the Office of Accounts and Reports by January 10, 2019 to ensure the 1099s are distributed by the January 31, 2019 deadline.

The template has the columns listed below. Do not insert or delete columns or rows. Do not change the formatting. Beginning with line 2 (replacing the sample data), complete one line for each payment (add lines as necessary for additional withholding types/classes). The gray columns are defaults and should not be changed. If 499 lines are not sufficient, copy line 500 down. When completed, attach the EXCEL spreadsheet to a Service Desk ticket with the heading “non-SMART 1099”. Note if you have leading zeros precede them with an apostrophe ‘, i.e. supplier id ‘0000123456.

BUSINESS_UNIT: 5 digits with leading zeros, as assigned by SMART (agency number)

WTHD_ENTITY: IRS

WTHD_TYPE: as listed in the supplier table (1099, 1099I, 1099G)

WTHD_JUR_CD: FED

WTHD_CLASS: as listed in the supplier table, with leading zeros.

WTHD_RULE: RULE0

SUPPLIER_SETID: SOKID

SUPPLIER_ID: 10 digits with leading zeros, as assigned by SMART.

SUPPLIER_LOC: the supplier location with the 1099 withholding type and class entered in column C and E, usually 001, with leading zeros

ADDRESS_SEQ_NUM: 1

PYMNT_ID: Blank

SUPPLIER FEIN OR SSN: SSN or FEIN, 9 digits including leading zeros

PYMNT_DT: date of payment, mm/dd/yyyy format

WTHD_DECL_DATE: Same as date of payment

WTHD_BASIS_AMT: The taxable amount for this 1099 type and class for 2019.

DESCR100: 100 characters of your choice – alpha and numerical characters only (no punctuation, no special characters)

Additional Resources:

Training guide for setting up suppliers for 1099 reporting and an account code guide:
1099 and Withholding Training Guide

IRS guide to each type of 1099, including instructions for each:
IRS Online Instructions for Forms

Excel withholding template:

PS_WTHD_TRAN_TBL_update_template.xlsx

Printable Version of 20-A-005

Summary: Updated FY 2020 Private Reimbursement Mileage Rates

The Internal Revenue Service (IRS) has announced changes in the standard mileage rates effective January 1, 2020.  The IRS rate for privately owned automobiles decreases to 57.5 cents per mile, while the motorcycle rate decreases to 54.5 cents per mile, and the moving reimbursement rate decreases to 17 cents per mile. The airplane reimbursement rate remains unchanged at $1.26 per air mile.

K.S.A. 75-3203a provides that the mileage reimbursement rates shall not exceed the lowest of the following:

1. the rate allowed by the IRS;
2. the rate used in preparing the governor’s budget report under K.S.A. 75-3721, and amendments thereto; or
3. any revision of the rate as specifically directed in appropriation acts of the legislature.

Thus, per the requirements of K.S.A. 75-3203a, the Department of Administration has adjusted the rates for mileage reimbursement for the remainder of FY 2020, effective January 1, 2020:

• 57.5¢ per mile for privately owned automobile
• 54.5¢ per mile for privately owned motorcycle
• $1.26 per mile for privately owned airplane (based on air miles rather than highway miles)
• 17¢ per mile for moving mileage rate

NOTE: Any agency that processed a mileage reimbursement on or after January 1^st for travel that occurred on or after January 1, 2020 and used the previously published rates will need to calculate the difference and either:

• process that amount through payroll as fringe benefit income; or

• reduce that amount from future mileage reimbursements that occur in 2020

Printable Version of 20-A-006
JG:me:te

Summary: NACHA data security requirement 

In order to enhance quality and improve risk management, the National Automated Clearing House Association (NACHA) has increased the level of security measures required for large-volume processors when storing account information.  NACHA has established 2 separate phases of implementation for the new requirement based on transaction volume.  The State of Kansas must be compliant with the Phase 1 date of June 30, 2020.

The new requirement states that account information used for ACH purposes must be rendered unreadable when it is stored electronically.  This includes ACH account information stored at rest in any system or in any electronic format.  ACH account information in transit is not affected by this requirement.  Forms collected electronically (including those which are scanned and stored) are subject to the requirement.

Examples of data subject to the new NACHA security requirement:

• ACH information for any current or former employee
• ACH information for any supplier
• INF02, Inbound Voucher Interface File, retained by the agency for historical purposes
• INF67/BL67, Inbound ACH Bank File, retained by the agency for historical purposes
• DA-130, Authorization for Electronic Deposit of Supplier Payment
• DA-184, Authorization for Direct Deposit of Employee Pay and/or Travel and Expense
• Regent Pay Detail Files, retained by the agency for historical purposes
• Correspondence in e-mail or help desk that includes ACH information

Examples of data not subject to the new NACHA security requirement:

• INF02, Inbound Voucher Interface File, in transit
• INF67/BL67, Inbound ACH Bank File, in transit
• Regent Pay Detail Files, in transit

Security of ACH account information and attachments stored in SMART and SHARP will be addressed by the Department of Administration.  Each state agency retaining ACH account information and attachments in any agency system or database must adhere to the new requirement for data security on June 30, 2020.

Additional Resources
NACHA web site, Supplementing Data Security Requirements:
https://www.nacha.org/rules/supplementing-data-security-requirements

PCI DSS Requirement 9
https://www.solarwindsmsp.com/content/pci-dss-requirement-9

Attachment
Letter from Jake LaTurner dated November 26, 2019

Printable version 20-A-007

Summary: Delay of enforcement for NACHA data security requirement 

This revises Informational Circular No. 20-A-007 issued on January 16, 2020.

Background:

The National Automated Clearing House Association (NACHA) has increased the level of security measures required for large-volume processors when storing account information. The new requirement states that account information used for ACH purposes must be rendered unreadable when it is stored electronically.  This includes ACH account information stored at rest in any system or in any electronic format.  ACH account information in transit is not affected by this requirement.  Forms collected electronically (including those which are scanned and stored) are subject to the requirement.

Revised deadline:

As published in the National Association of State Auditors, Controllers and Treasurers’ (NASACT) newsletter dated January 21, 2020, NACHA will be taking the position of “no enforcement” of the new data security rule through June 30, 2021 for governmental entities that are working in good faith toward implementation and compliance.  Agencies subject to the NACHA requirement should develop and document a plan of action by June 30, 2020 that will ensure compliance with the new security requirements is achieved on or before June 30, 2021.

Security of ACH account information and attachments stored in SMART and SHARP will be addressed by the Department of Administration.  Each state agency retaining ACH account information and attachments in any agency system or database must adhere to the new requirement for data security by June 30, 2021.

Additional Resources
NACHA web site, Supplementing Data Security Requirements:
https://www.nacha.org/rules/supplementing-data-security-requirements

PCI DSS Requirement 9
https://www.solarwindsmsp.com/content/pci-dss-requirement-9

Printable version 20-A-008

Summary: Attaching Task Orders to the Header Comments Link on the Purchase Order     

This informational circular serves as notification that for any contract that is executed using the Task Order process, the Task Order documentation is required to be in SMART for all payments that exceed the agency’s delegated audit authority.

Some agencies use slightly different terminology to talk about Task Orders. Agencies may refer to these as Task Proposal Requests (TPR) or Task Requests (TR), but the purpose is the same. Generally, agencies wanting to engage a supplier will issue a Task Request or a Task Proposal Request. Suppliers wanting to be considered must respond with a Task Proposal Response.

To facilitate the processing of payment vouchers and to minimize delays, all fully executed Task Orders are to be attached to the Header Comments of the purchase order. Subsequently, each time the purchase order is pulled into a payment voucher, the Task Order information is available for review.

Without Task Orders being attached, the audit trail documentation is inadequate and cannot be reviewed for compliance with statutes, regulations, and accounting policies and standards. Further, vouchers that are submitted without the associated Task Orders attached to the PO, may be returned to the agency by Audit Services for the Task Order to be attached.

This informational circular should be used in conjunction with Informational Circular 20-A-010 Attachments in SMART (February 28, 2020).

JG:me:te
Printable Version of 20-A-009

Summary: Requirements for Attachments in SMART for Payments and Reimbursements

This informational circular serves as a reminder of the documentation required in SMART for payments/reimbursements that exceed the agency’s delegated audit authority.

For Accounts Payable (AP) Vouchers:

Vouchers without attached invoices or supporting documentation, or that lack the documentation listed below may be returned to the agency by Audit Services, which would delay the voucher approval process.

Invoices and/or supporting documentation are required to be attached in SMART for all AP vouchers, unless providing the invoice and supporting documentation violates K.S.A. 45-221 or other relevant statutes related to non-disclosure/confidential information. If the invoice cannot be attached due to such statutory exceptions, then Audit Services will check for the following within the comments section of the SMART voucher Invoice Information tab:

• Specific statute that provides the exemption of attaching an invoice (i.e. K.S.A 45-221)
• Dates of service, order date and invoice date for each of the invoiced amounts
• Description of payment (i.e. attorney fees)
• Detailed breakdown of expenses if not itemized by line on the voucher
• Other relevant invoice information (i.e. rates/hours/pricing, etc.) where applicable, for Audit Services to make a reasonable determination
• Detailed reason why the invoice or supporting documentation can’t be attached in SMART (i.e. HIPAA violation, ongoing investigation, etc.)
• Travel expense receipts (if applicable)
• Other information that may be necessary to provide sufficient audit trail documentation for Audit Services’ review for compliance with statutes, regulations, and accounting policy and standards.

For cell phone bills, Audit Services only requires the cover page/summary page that includes the supplier, amount due, and dates of service.

Audit Services does not require support documents for grant payments, refunds, or P-Card payments to be attached in SMART to the payments. The payment support documents should continue to be maintained at the agency in a file storage method other than SMART.

NOTE: If a contract does not contain a “cost sheet” or prices for what is being ordered and the agency must contact the supplier to obtain a “quote” for the goods or services, Audit Services requires the “quote” be attached to the Header Comments link on the purchase order.

For Travel and Expense (T&E) Reports:

Documents supporting travel and expense reimbursements are to be attached in SMART to the T&E report. These documents include:

• Prior authorization for travel not captured by a SMART Travel Authorization
• Required receipts which support T&E reimbursements
• Conference rate verification, i.e. conference materials
• Information that is not available in SMART

For Contracts and Purchase Orders (PO):

Agency specific contracts and all amendments to those contracts are to be uploaded to the SMART Supplier Contracts module.  If an amendment needs to be added to the contract after the contract has been created in the SMART Supplier Contracts, agencies should contact the Office of Procurement and Contracts for assistance. Attaching this information in SMART to the PO or the AP voucher is not sufficient.  Please continue to reference state contracts within the voucher when applicable. (See Procurement Informational Circular 16-04 for requirements on capturing contract spend data in SMART).

Prior Authorization (PA) forms that require hand-written approval by the Office of Procurement and Contracts, such as revised PA’s, must be attached in SMART to the Purchase Order (PO). All other PA’s must follow the Office of Procurement and Contract’s policies for attachments in SMART (See Procurement Informational Circular 11-03 for procedures on processing prior authorization requisitions).

SMART System Requirements for Attachments:

• The recommended size limit for a file being attached is 1 MB. (recommend black & white scans only, as color significantly increases the document size).
• Agencies should not attach CAD (Computer Aided Design) files or picture files (examples- .jpg, .tif, .png, or .gif).
• Excel, Word, PDF, or similar files, are appropriate.
• Multiple attachments are allowed (larger files may be broken down into multiple attachments if necessary).
• For vouchers that are interfaced, the agency must attach support documents after the voucher has been created in SMART.
• Avoid attaching documents that do not add value to the transaction.
• System retention for attachment files is expected to be 3 years. This period may be reduced if storage space becomes an issue.
• Agencies should not rely on SMART as the method for meeting record retention policies.

JG:me:te
Printable Version of 20-A-010

Summary: State Agency Guidance for Essential Transactions During the Government Shut Down

On March 17, 2020, Governor Kelly announced that the Kansas Government will shut down, performing essential functions only, beginning March 23, 2020. As a result, the Statewide Agency Audit Services Team (Audit Services) is reduced and will be working remotely to approve transactions that are deemed essential by state agencies.

Essential transactions may include statutorily required payments such as, General State-Aid, Bond Principal and Interest, and other critical transactions which may include payments for:

• grants and assistance
• services essential to public health and welfare
• lease obligations
• utilities

Other essential transactions may include wires and deposit adjustments.

Processing questions or other inquiries should be emailed to ARPreaudit@ks.gov. High-priority issues should be identified in the subject line of the email. NOTE: Agencies should expect to experience longer than normal response and processing times.

JG:me:te
Printable Version of 20-A-011

Summary: Rescinding Informational Circular 20-A-011 - State Agency Guidance for Essential Transactions.

Informational Circular 20-A-11 is rescinded effective April 6, 2020.

Even though Governor Kelly’s COVID-19 directives remain in place the Audit Services Team is now fully staffed and will be working remotely until those directives change.

Agencies may return to normal processing of vouchers and other financial transactions.

We appreciate your patience as the volume of transactions for the Audit Services Team’s approval returns to normal levels.

Processing questions or other inquiries should be emailed to ARPreaudit@ks.gov.

JG:me:te
Printable Version of 20-A-012

As first announced to the SMART user community on March 27, 2020, a new program code was added in SMART to capture all transactions related to the COVID-19 outbreak.  The addition of program code 21662, COVID-19 Transactions, will allow for reporting of the financial impact of the COVID-19 outbreak on the State of Kansas. As requested by the Governor and Secretary of Administration, this applies to all state agencies (Regents, executive, judicial, and legislative branches).  Division of the Budget and the Office of Accounts and Reports have added program code 21662, COVID-19 Transactions, with an effective date of February 1, 2020, to both IBARS and SMART.

All COVID-19 related transactions occurring during fiscal year 2020 must be properly recorded using program code 21662 by the end of the fiscal year.

• If COVID-19 related transactions have processed during February and March using a different program code, agencies are expected as soon as possible to process adjustment transactions to update/correct the program code to 21662.
• For COVID-19 related transactions that process during April and May with a program code other than 21662, adjustment transactions to update/correct the program code to 21662 are expected to process within 10 calendar days following the month in which the transactions occurred.
• For COVID-19 related transactions that process during June with a program code other than 21662, adjustment transactions to update/correct the program code to 21662 must process prior to the end of the fiscal year. SMART will be closed to agency users at 6pm on Friday, June 26, 2020 for fiscal year-end processing.

Adjustment transactions should be entered in the SMART module where the transaction originated, for example, AP transactions should be updated/corrected as an AP journal voucher and deposits shall be updated/corrected as deposit adjustments.

When considering what transactions should use the COVID-19 program code, the general guidance is to include transactions that would not normally have occurred if the virus outbreak had not happened.

Examples of transactions that should use the COVID-19 program code:

• Deposits for COVID-19 revenue
• Purchase of laptop computers so staff can work remotely 
• Meals, lodging and/or miscellaneous expenses for emergency response
• Military activation
• Supplies for disinfection (cleaners, anti-bacterial gel, etc.)
• Medical supplies (gloves, masks, thermometers, test kits, etc.)
• Salaries and wages for additional personnel or overtime costs due to outbreak response 
• Overtime costs for staff working to cover tasks when co-workers cannot report due to self-quarantine or no access to daycare for school-age kids
• Costs due to the cancellation of activities

Examples that should not use the COVID-19 program code:

• Salaries and wages for staff working remotely or performing normal tasks during the statewide office closure

Any agencies with specific questions about whether expenses or revenues should be included or excluded should contact their Division of Budget analyst.

Specific guidance regarding payroll processing related to the COVID-19 outbreak is provided in Informational Circulars:

• 20-P-031 Addition of Earnings Code for COVID-19 Related Tasks (March 17, 2020)
• 20-P-033 Update to Program Code for Funding Associated with the New CVD Earnings Code (Time Reporting Code CVTSK) (March 31, 2020)
• 20-P-034 Agency Options for Required Use of the New Program Code for Funding Related to COVID-19 Payroll Expenditures (April 1, 2020)
• 20-P-035 New Earnings Codes and Agency Guidance for Implementation of the Families First Coronavirus Relief Act (FFCRA) (April 15, 2020)

JG:sz
Printable Version 20-A-013

Summary: Schedule of accounting events relevant to the closing of Fiscal Year (FY) 2020 and the opening of Fiscal Year (FY) 2021

K.S.A. 75-3002 establishes the state fiscal year as commencing on the first day of July in each year and closing on the thirtieth day of June of the succeeding year.  For fiscal year 2020 activity to be completed by June 30^th, the cutoff date for most agency processing will be Friday, June 26, 2020 at 6:00 PM.  

SMART will be closed to agencies from Saturday, June 27, 2020 through Tuesday, June 30, 2020, and again the morning of Wednesday, July 8, 2020.

New deadlines have been added for encumbrances using the State General Fund.   This includes all purchase requisitions over $5,000 that require prior authorization, purchase orders over $5,000, GL encumbrances over $5,000, and travel authorizations over $5,000. 

For purchase requisitions over $5,000 that require prior authorization by the Office of Procurement and Contracts, email the Prior Authorization Request Form and supporting documentation to your Division of the Budget analyst before entering in SMART.  DOB will reply with an acknowledgement which should be included in the documentation entered in SMART.  Agencies are strongly advised not to “split” transactions by generating multiple entries for the same transaction in order to avoid the $5,000 limit. 

Deadline changes as a result of this message appear in red font within this informational circular and day by day summary.  Sections with changes include: Requisitions/Purchase Orders, Travel Authorizations, and GL Encumbrances.

See attachments:
FY20_Events_to_Close_FY20_Open_FY21_REVISED
FY20_Close_Day_by_Day_Summary_REVISED

Summary: Recording COVID-19 SMART Expenditures Using New Program Codes 21662 and 97662 

As first announced to the SMART user community on March 27, 2020, a new program code was added in SMART to capture all transactions related to the COVID-19 outbreak. Informational Circular 20-A-013, published April 2, 2020, provided deadlines for adjustments and journals as well as the information regarding the use of the new code.

The Division of Budget has identified a need for the COVID-19 transactions to be separated between on-budget and off-budget program codes. Please use program code 21662 for only on-budget transactions. To capture off-budget transactions, a new program code has been added to SMART, 97662, with the description COVID 19 Off-Budget, effective February 1, 2020. This code was added only for the following agencies that normally report off-budget transactions:

If an agency was not included in the above list and has off-budget COVID-19 transactions, please log a ManageEngine Service Desk request for this program code to be added in SMART.

All COVID-19 related transactions occurring during fiscal year 2020 must be properly recorded using on-budget program code 21662 or off-budget program code 97662 by the end of the fiscal year.

• If COVID-19 related transactions have processed during February and March using a program other than 21662 or 97662, agencies are expected as soon as possible to process adjustment transactions to update/correct the program code.
• For COVID-19 related transactions that process during April and May with a program code other than 21662 or 97662, adjustment transactions to update/correct the program code are expected to be processed within 10 calendar days following the month in which the transactions occurred.
• For COVID-19 related transactions that process during June with a program code other than 21662 or 97662, adjustment transactions to update/correct the program code must be processed prior to the end of the fiscal year. SMART will be closed to agency users at 6pm on Friday, June 26, 2020 for fiscal year-end processing.

Adjustment transactions should be entered in the SMART module where the transaction originated. For example, AP transactions should be updated/corrected as an AP journal voucher and deposits should be updated/corrected as deposit adjustments.

When considering what transactions should use the COVID-19 program code, the general guidance is to include transactions that would not normally have occurred if the virus outbreak had not happened.  Please refer to Informational Circular 20-A-013 for a list of examples.

JG:sz
Printable Version of 20-A-015

Summary: Agencies must have COVID-19 expenditures properly recorded to the program codes by noon on June 1, 2020

In accordance with the deadlines previously established in information circular 20-A-013, please ensure your COVID-19 expenditures are properly recorded and up to date using the SMART program code 21662 (on-budget) or 97662 (off-budget).  SMART reporting, using these program codes, will be the official source of record for eligible state expenditures considered for reimbursement.

While all COVID-19 related transactions occurring during fiscal year 2020 must be properly recorded by the end of the fiscal year, if you have not completed your adjustment transactions to update/correct the program code for eligible expenditures, you will need to do so by noon on Monday June 1, 2020 in order for those transactions to be available for consideration in the first round of reimbursements from the Coronavirus Relief Fund.

Agencies should verify the accuracy and completeness of their reporting using the results of the SMART query KS_GL_EXPS_REVS_XFERS_BY_BU, which provides transactions summarized by fund, budget unit, account, and month.  Agencies are advised to prioritize hard costs (or non-payroll related expenses), if there is not sufficient time to get all entries reclassified/recorded by noon on June 1, 2020.  Please also keep in mind that agencies will be required to certify the accuracy of the coding to receive reimbursement.

Please reference information circulars 20-A-013, 20-A-015, 20-P-031, 20-P-033, 20-P-034, and 20-P-035 for establishment of the program codes, recording deadlines, and payroll processing guidance.  Any agencies with specific questions about whether expenses or revenues should be included or excluded should contact their Division of Budget analyst.

Printable version of 20-A-016
JG:sz

Summary: Agencies must process journals to record use of Coronavirus Relief Fund by June 24, 2020.

On June 16, 2020, the Strengthening People and Revitalizing Kansas (SPARK) Taskforce and Governor’s Office of Recovery approved for many state agencies to receive distributions from Coronavirus Relief Fund.  Executive Directive 20-517 was implemented and created a Coronavirus Relief Fund in each state agency.  A full list of agencies and amounts is provided as Attachment A.

A general ledger journal was processed on June 19 to transfer the total approved reimbursement amount to the agency’s Coronavirus Relief Fund.  A list of expenditures by funding source can be obtained from the agency’s Division of Budget (“DOB”) budget analyst.   Additionally, on June 19 the SMART Team will send the list to each agency through a ManageEngine Service Desk Ticket. Please review each line of expenditures to make sure that your agency agrees the amount represents expenditures qualifying for reimbursement based on the federal guidelines in the CARES Act. See 42 U.S.C. § 801(d).

Immediate action is necessary for each agency to process a general ledger journal to reduce the expenditures from the original funding source and charge the Coronavirus Relief Fund by June 24, 2020.  An example is included as Attachment B.

Upon further review by your agency, if all or part of the amounts on the list do not meet the requirements for reimbursement, the amount must be left out of the general ledger journal so that the expense amount is not transferred to the Coronavirus Relief Fund.   Then contact your DOB budget analyst to request for the amount to be returned to the Governor’s Office.

Your agency should be aware that receipt of these funds may require additional internal controls to comply with federal requirements. This includes compliance requirements that are required by Uniform Guidance (Specifically reference Subpart F section 200.501 for Audit Requirement thresholds).  Please make sure you’re familiar with the documents required to be submitted to the Office of Accounts and Reports, by August 14^th, 2020, related to the expenditure of federal funds.  

JG:sz
Attachment A
Attachment B

Summary: FY 2019 Private Vehicle Mileage Rates

As authorized by K.S.A. 75-3203a, the Secretary of Administration has fixed the private vehicle maximum mileage reimbursement rates for FY 2019 at:

$ .545 per mile for privately-owned automobiles.
$ .515 per mile for privately-owned motorcycles.
$ 1.21 per mile for privately-owned airplanes.
$ .18 per mile for moving related mileage.

For more details on reimbursement of mileage for the use of privately-owned conveyances, please see the Employee Travel Reimbursement Handbook, Section 3100 which can be found on the Travel Center for State Employees website.

DH:jc
Printable Version of 19-A-001

Summary: FY 2019 Meals and Incidental Expense (M&IE) and Lodging Rates

As authorized by K.S.A. 75-3207a, the Secretary of Administration has fixed subsistence rates for FY 2019.  The Employee Travel Expense Reimbursement Handbook is updated to include policies regarding subsistence allowances for travel occurring in FY 2019.

For State of Kansas travel, federal per diem rates are followed to determine subsistence allowances. The CONUS per diem rate for an area is divided into two components: the lodging allowance and the meals & incidental expense (M&IE) allowance. These per diem rates are based on travel location and travel dates (seasonal rates may be listed for some locations).  If a specific travel location is not listed (or within the location definition), the standard rate, or “other” location rate is used.  The following standard rates apply to many locations across the contiguous United States (CONUS).

For CONUS locations, the following standard daily subsistence rates apply for travel which occurs on July 1, 2018 and thereafter:

Meals & Incidental (M&IE) - $51

Lodging Allowance Rate - $93

These rates were effective October 1, 2017 and remain unchanged.  The M&IE and Lodging rates are updated semi-annually each October 1 and April 1 to follow CONUS per diem rates in effect on those dates.

SMART maintains the official subsistence rates for CONUS and OCONUS travel locations and will be updated semi-annually each October 1 and April 1 for any interim rate changes which have occurred.  International subsistence rates are not loaded into SMART.  For international travel locations, employees will obtain M&IE rates directly from the U.S. Department of State (DOS) website listed below.  For international travel, payment for actual lodging expense is allowed.

Source of Subsistence Rates:

Contiguous United States (CONUS) -

The U.S. General Services Administration (GSA) maintains the M&IE rates and lodging rates for travel locations in the contiguous United States -
U.S. General Services Administration website: https://www.gsa.gov/travel/plan-book/per-diem-rates/
Outside Contiguous United States (OCONUS):
(Alaska, Hawaii, and U.S. Territories/Possessions) -

The U.S. Department of Defense (DOD) maintains the M&IE rates and lodging rates for travel locations within Alaska, Hawaii and U.S. Territories/Possessions -
U.S. Department of Defense website: http://www.defensetravel.dod.mil/site/perdiemCalc.cfm

International Locations -

The U.S. Department of State (DOS) is the source for M&IE rates only for international travel locations-
U.S. Department of State website: https://aoprals.state.gov/web920/per_diem.asp
For international travel, payment for actual lodging expense is allowed.
Note for using federal websites:
For CONUS and OCONUS travel, if SMART is not accessible, employees may access subsistence rates through the federal websites. However interim federal website updates may occur subsequent to the semi-annual SMART updates each October 1 and April 1. CONUS rates are published on an annual basis but the annual file is updated periodically throughout the year with no interim files published. OCONUS and international rates are updated and published on a monthly basis. Be aware that any interim updates for CONUS or OCONUS locations are not valid until reflected in SMART. For international travel, only the October 1 and April 1 subsistence files should be used to locate the M&IE rates.

If employees utilize the federal websites to find M&IE and lodging rates, those rates should be used as follows:

Rates published October 1 - for travel occurring between October 1 and March 31 of each year.
Rates published April 1 - for travel occurring between April 1 and September 30 of each year.

Lodging Expense Limitations:
K.S.A. 75-3207a(f) provides that the daily lodging expense limitations established may be exceeded, upon approval by the agency head or designee, by the lesser of either: (1) an additional 50% of the applicable lodging expense limitation, or (2) the actual lodging expense incurred.

These lodging limits continue to be applied to the lodging rate before taxes.  Thus, the amount reimbursed or paid for lodging expenses may exceed the established lodging limitation by as much as the amount of associated taxes.

Conference Lodging qualified under K.A.R. 1-16-18a(c):
Agencies may authorize payment or reimbursement for actual lodging expenses when an employee is required or authorized to attend a conference, and the lodging rate exceeds the applicable lodging expense limitation (including the additional 50%).  The agency head must be provided with conference materials and rates.  These should be maintained with travel documentation.

Reduced Meal Allowance:
If the cost of meals is included within the cost of registration fees or other fees and charges paid by the agency or provided at no cost to the employee, the daily M&IE rate for the travel location should be reduced based on the percentages listed below.  For partial days, the quarter amount is calculated first and then the reduction percentage is applied.  The daily M&IE reduction percentages are as follows:

Breakfast - 15%

Lunch - 35%

Dinner - 50%

 
Same Day Meal Allowance:
Reimbursement for a same day meal, in accordance with K.A.R. 1-16-18(c)(2), is calculated as a percentage of the daily M&IE rate for the travel location, based on the approved meal, as follows:

Breakfast - 15%

Lunch - 35%

Dinner - 50%

Queries in SMART to Obtain M&IE Rates and Lodging Rates:
A query “KS_EX_CONUS_RATES” is available in SMART to obtain all CONUS and OCONUS locations with the daily M&IE rates, meal reductions and lodging rates.  SMART will be updated semi-annually with the October and April 1 CONUS and OCONUS subsistence rates.  Historical locations and rates from each semi-annual update will be maintained in SMART.

DH:jc
Printable Version of 19-A-002

Summary: Requirements for Attachments in SMART for Payments and Reimbursements

This informational circular serves as a reminder of documentation required in SMART for payments/reimbursements that exceed the agency’s delegated audit authority in SMART.

For Accounts Payable (AP) Vouchers:

Vouchers without attached invoices or supporting documentation, or that lack the documentation listed below may be returned to the agency by Audit Services, which would delay the voucher approval process.

Invoices and/or supporting documentation are required to be attached in SMART for all AP vouchers, unless providing the invoice and supporting documentation violates K.S.A. 45-221 or other relevant statutes related to non-disclosure/confidential information. If the invoice cannot be attached due to such statutory exceptions, then Audit Services will check for the following within the comments section of the SMART voucher Invoice Information tab:

• Specific statute that provides the exemption of attaching an invoice (i.e. K.S.A 45-221)
• Dates of service, order date and invoice date for each of the invoiced amounts
• Description of payment (i.e. attorney fees)
• Detailed breakdown of expenses if not itemized by line on the voucher
• Other relevant invoice information (i.e. rates/hours/pricing, etc.) where applicable, in order for Audit Services to make a reasonable determination
• Detailed reason why the invoice or supporting documentation can’t be attached in SMART (i.e. HIPAA violation, ongoing investigation, etc.)
• Travel expense receipts (if applicable)
• Other information that may be necessary to provide sufficient audit trail documentation for Audit Services’ review for compliance with statutes, regulations, and accounting policy and standards.

For cell phone bills, Audit Services only requires the cover page/summary page that includes the supplier, amount due, and dates of service.

Audit Services does not require support documents for grant payments, refunds, or P-Card payments to be attached in SMART to the payments. The payment support documents should continue to be maintained at the agency in a file storage method other than SMART.

For Travel and Expense (T&E) Reports:

Documents supporting travel and expense reimbursements are to be attached in SMART to the T&E report. These documents include:

• Prior authorization for travel not captured by a SMART Travel Authorization.
• Required receipts which support T&E reimbursements.
• Conference rate verification.
• Information that is not available in SMART

For Contracts and Purchase Orders (PO):

All copies of contracts or amendments are to be uploaded to SMART Supplier Contracts and should not be attached in SMART to the PO or the AP voucher. If an amendment needs to be added to the contract after the contract has been created in SMART Supplier Contracts, agencies should contact the Office of Procurement and Contracts for assistance. Please continue to reference state contracts within the voucher when applicable. (See Procurement Informational Circular 16-04 for requirements on capturing contract spend data in SMART).

Prior Authorization (PA) forms that require hand-written approval by the Office of Procurement and Contracts, such as revised PA’s, must be attached in SMART to the Purchase Order (PO). All other PA’s must follow the Office of Procurement and Contract’s policies for attachments in SMART (See Procurement Informational Circular 11-03 for procedures on processing prior authorization requisitions).

SMART System Requirements for Attachments:

• The recommended size limit for a file being attached is 1 MB. (recommend black & white scans only, as color significantly increases the document size).
• Agencies should not attach CAD (Computer Aided Design) files or picture files (examples- .jpg, .tif, .png, or .gif).
• Excel, Word, PDF, or similar files, are appropriate.
• Multiple attachments are allowed (larger files may be broken down into multiple attachments if necessary).
• For vouchers that are interfaced, the agency must attach support documents after the voucher has been created in SMART.
• Avoid attaching documents that do not add value to the transaction.
• System retention for attachment files is expected to be 3 years. This period may be reduced if storage space becomes an issue.
• Agencies should not rely on SMART as the method for meeting record retention policies.

DH:me:js
Printable Version of 19-A-003

Summary: Wire Transfer Payments

In accordance with KSA 75-3728, this Informational Circular (IC) addresses agency procedures related to wire transfer activity.

Wire transfers requested to be made by the State Treasurer’s Office (STO) are required to follow the same guidelines as any other payment remitted through the Statewide Management, Accounting, and Reporting Tool (SMART). 

Wire transfer vouchers must be completed, matched (if applicable), budget checked, and agency approved in SMART no later than 9:30am on the date the wire is to be transferred.

SMART payment vouchers may be pre-entered before the date the funds are to be wired, by scheduling the payment due date. Note: The batch processes that run matching, budget checking, and submit vouchers for workflow approval run on the hour during the day. Ensuring the voucher is “Saved” before the 9am hourly batch process will allow the voucher to be ready for agency approval before the 9:30am deadline.

Agency staff must notify STO (treascash@treasurer.state.ks.us) and Agency Audit Services (arpreaudit@ks.gov) via email no later than 9:30 am on the date the wire is to be transferred. Agency Audit Services will review all wire payments in SMART to verify the payment meets all state laws and policies (including the amount, budget check status, match status (if applicable) and agency approval).  For wires payments that exceed 10 million dollars, please provide notification the day before to ensure sufficient cash is available on the day of the transfer.

Agency Audit Services will notify STO of all payment vouchers agency approved in SMART by the 9:30 am deadline and only those wire transfers will be made. Failure to agency approve vouchers in SMART may result in a delay of the wire transfer payment by a minimum of one business day.

Foreign Currency Wires: Agency staff must verify the daily exchange rate with the STO to ensure the voucher amount reflects the correct conversion rate.  Agency staff should complete, budget check, match (if applicable), and agency approve the SMART payment voucher as soon as possible to ensure the wire is transferred with the correct currency exchange rate. Failure to do so could result in the wire to be sent incorrectly or the voucher process to be completed again with a new currency exchange rate. 

SMART job aid WIRE Transfer Voucher has been updated to further assist agency staff in processing wire transfer vouchers. 

For questions on wire transfer procedures, please email Agency Audit Services at ARpreaudit@ks.gov.   

Printable version of 19-A-004

Summary: Updated FY 2018 Meals and Incidental Expense (M&IE) and Lodging Rates for travel occurring on and after October 1, 2018

As authorized by K.S.A. 75-3207a, the Secretary of Administration has fixed subsistence rates for FY 2019. The U.S. General Services (GSA) has announced a change in the CONUS standard rate for lodging and M&IE effective October 1, 2018.  The GSA standard lodging rate has been increased to $94 and the standard M&IE rate has been increased to $55.

For State of Kansas travel, federal per diem rates are followed to determine subsistence allowances. The CONUS per diem rate for an area is divided into two components: the lodging allowance and the meals & incidental expense (M&IE) allowance. These per diem rates are based on travel location and travel dates (seasonal rates may be listed for some locations).  If a specific travel location is not listed (or within the location definition), the standard rate, or “other” location rate is used. The following standard rates apply to many locations across the contiguous United States (CONUS).

For CONUS locations, the following standard daily subsistence rates apply for travel which occurs on October 1, 2018 and thereafter:

Meals & Incidental (M&IE) - $55

Lodging Allowance Rate - $94

The Employee Travel Expense Reimbursement Handbook is updated to include this information regarding subsistence for travel occurring on and after October 1, 2018.

SMART maintains the official subsistence rates for CONUS and OCONUS travel locations and will be updated semi-annually each October 1 and April 1 for any interim rate changes which have occurred.  International subsistence rates are not loaded into SMART.  For international travel locations, employees will obtain M&IE rates directly from the U.S. Department of State (DOS) website listed below.  For international travel, payment for actual lodging expense is allowed.

Source of Subsistence Rates:

Contiguous United States (CONUS)-

The U.S. General Services Administration (GSA) maintains the M&IE rates and lodging rates for travel locations in the contiguous United States -
U.S. General Services Administration website: https://www.gsa.gov/travel/plan-book/per-diem-rates/
Outside Contiguous United States (OCONUS):

(Alaska, Hawaii, and U.S. Territories/Possessions) -

The U.S. Department of Defense (DOD) maintains the M&IE rates and lodging rates for travel locations within Alaska, Hawaii and U.S. Territories/Possessions -
U.S. Department of Defense website: http://www.defensetravel.dod.mil/site/perdiemCalc.cfm
If you receive security warning messages or alerts when attempting to open this link, click “yes” until you reach a “This site is not secure” page. Click “More information” or “Details” and click “Go on to the webpage (not recommended)”.

International Locations -

The U.S. Department of State (DOS) is the source for M&IE rates only for international travel locations-
U.S. Department of State website: https://aoprals.state.gov/web920/per_diem.asp
For international travel, payment for actual lodging expense is allowed.
Note for using federal websites:
For CONUS and OCONUS travel, if SMART is not accessible, employees may access subsistence rates through the federal websites. However interim federal website updates may occur subsequent to the semi-annual SMART updates each October 1 and April 1. CONUS rates are published on an annual basis, but the annual file is updated periodically throughout the year with no interim files published. OCONUS and international rates are updated and published on a monthly basis. Be aware that any interim updates for CONUS or OCONUS locations are not valid until reflected in SMART. For international travel, only the October 1 and April 1 subsistence files should be used to locate the M&IE rates.

If employees utilize the federal websites to find M&IE and lodging rates, those rates should be used as follows:

Rates published October 1 - for travel occurring between October 1 and March 31 of each year.
Rates published April 1 - for travel occurring between April 1 and September 30 of each year.

Lodging Expense Limitations:
K.S.A. 75-3207a(f) provides that the daily lodging expense limitations established may be exceeded, upon approval by the agency head or designee, by the lesser of either: (1) an additional 50% of the applicable lodging expense limitation, or (2) the actual lodging expense incurred.

These lodging limits continue to be applied to the lodging rate before taxes.  Thus, the amount reimbursed or paid for lodging expenses may exceed the established lodging limitation by as much as the amount of associated taxes.

Conference Lodging qualified under K.A.R. 1-16-18a(c):
Agencies may authorize payment or reimbursement for actual lodging expenses when an employee is required or authorized to attend a conference, and the lodging rate exceeds the applicable lodging expense limitation (including the additional 50%).  The agency head must be provided with conference materials and rates.  These should be maintained with travel documentation.

Reduced Meal Allowance:
If the cost of meals is included within the cost of registration fees or other fees and charges paid by the agency or provided at no cost to the employee, the daily M&IE rate for the travel location should be reduced based on the percentages listed below.  For partial days, the quarter amount is calculated first and then the reduction percentage is applied.  The daily M&IE reduction percentages are as follows:

Breakfast - 15%

Lunch - 35%

Dinner - 50%
 
Same Day Meal Allowance:
Reimbursement for a same day meal, in accordance with K.A.R. 1-16-18(c)(2), is calculated as a percentage of the daily M&IE rate for the travel location, based on the approved meal, as follows:

Breakfast - 15%

Lunch - 35%

Dinner - 50%
 

Queries in SMART to Obtain M&IE Rates and Lodging Rates:
A query “KS_EX_CONUS_RATES” is available in SMART to obtain all CONUS and OCONUS locations with the daily M&IE rates, meal reductions and lodging rates. Historical locations and rates from each semi-annual update will be maintained in SMART.

Printable Version of 19-A-005

DH:jc

Summary: Procedures for Filing Calendar Year 2018 Form 1099 Information Returns for non-SMART payments and payments in SMART without the required 1099 information

• Requirements to report payments where the 1099 data was not recorded in SMART:
  1. The supplier/client must be in the Statewide Management, Accounting and Reporting Tool (SMART) supplier table.
  2. All reportable payments must be submitted via Service Desk using the EXCEL template referenced below
  3. The Office of the Chief Financial Officer processes the payments submitted via Service Desk using SMART. SMART generates the paper 1099s which are mailed to the suppliers. The 1099 information is electronically submitted to the IRS.

There is NO option for the agency to print the forms and have the Office of the Chief Financial Officer report to the IRS.

Policy and procedures:

While most 1099 transactions are recorded in SMART, and require no additional action by state agencies; there are some payments that occur outside of SMART or the information to be reported to the IRS is not in SMART. These transactions result in unique reporting procedures comprised of the following:

• Locally administered interest payments of $10 or more are to be reported on IRS Form 1099-INT. These payments typically represent interest paid from trust funds to clients of institutions with the Department for Aging and Disability Services and the Department of Corrections.
• Other payments such as non-employee awards not paid directly to the recipient from SMART.

To report non-SMART payments for form 1099 purposes the agency must confirm the supplier is in the SMART supplier table with the appropriate 1099 type and class, and ensure that withholding is turned on. If the supplier is not in the supplier table, the agency must add the supplier to SMART including the appropriate 1099 type and class, and turn withholding on.

Complete the EXCEL template “PS_WTHD_TRAN_TBL_update_template” (link to the Excel document is included at the bottom of this circular) for all non-SMART 1099 reportable payments. The completed template needs to be received by the Office of the Chief Financial Officer by January 10, 2019 to ensure the 1099s are distributed by the January 31, 2019 deadline.

The template has the columns listed below. Do not insert or delete columns or rows. Do not change the formatting. Beginning with line 2 (replacing the sample data), complete one line for each payment (add lines as necessary for additional withholding types/classes). The gray columns are defaults and should not be changed. If 499 lines are not sufficient, copy line 500 down. When completed, attach the EXCEL spreadsheet to a Service Desk ticket with the heading “non-SMART 1099”. Note if you have leading zeros precede them with an apostrophe ‘, i.e. supplier id ‘0000123456.

BUSINESS_UNIT: 5 digits with leading zeros, as assigned by SMART (agency number)

WTHD_ENTITY: IRS

WTHD_TYPE: as listed in the supplier table (1099, 1099I, 1099G)

WTHD_JUR_CD: FED

WTHD_CLASS: as listed in the supplier table, with leading zeros.

WTHD_RULE: RULE0

SUPPLIER_SETID: SOKID

SUPPLIER_ID: 10 digits with leading zeros, as assigned by SMART.

SUPPLIER_LOC: the supplier location with the 1099 withholding type and class entered in column C and E, usually 001, with leading zeros

ADDRESS_SEQ_NUM: 1

PYMNT_ID: Blank

SUPPLIER FEIN OR SSN: SSN or FEIN, 9 digits including leading zeros

PYMNT_DT: date of payment, mm/dd/yyyy format

WTHD_DECL_DATE: Same as date of payment

WTHD_BASIS_AMT: The taxable amount for this 1099 type and class for 2018.

DESCR100: 100 characters of your choice – alpha and numerical characters only (no punctuation, no special characters)

Additional Resources:

Training guide for setting up suppliers for 1099 reporting and an account code guide:
1099 and  Withholding Training Guide

IRS guide to each type of 1099, including instructions for each:
IRS Online Instructions for Forms

Excel withholding template:
PS_WTHD_TRAN_TBL_update_template

Printable Version of 19-A-006

Summary: State of Kansas Encumbrance Policy Amendments - Audit Finding Changesand New Fiscal Year Grace Period.  

This Informational Circular is issued to announce two changes to Policy Manual (PM) Filing 10,300 Statewide Encumbrance Policy. 

Amendments to the encumbrance policy:

1)  Currently an audit finding results when the budget date is subsequent to the service date or the order date.  Effective July 1, 2019, an audit finding will result when the requisition date is subsequent to the service date or the order date.

2)  Beginning July 1, 2019, a grace period will be allowed during the month of July to allow agencies time to enter encumbrances for the new fiscal year.  During the entire month of July, no audit findings will be issued based on a comparison of the requisition date to either the service date or the order date.
 

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. 
 

For guidance on fiscal year closing and determination for all obligations, please see PM Filing 14,002 Fiscal Year Closing Including Fiscal Year Determination.
 

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

Attachments:

PM Filing 10,300 Statewide Encumbrance Policy

Best Practices – Statewide Encumbrance Policy 

PM Filing 14,002 Fiscal Year Closing Including Fiscal Year Determination

Printable Version of 19-A-007

Summary: Schedule of accounting events relevant to the closing of Fiscal Year (FY) 2019 and the opening of Fiscal Year (FY) 2020

K.S.A. 75-3002 establishes the state fiscal year as commencing on the first day of July in each year and closing on the thirtieth day of June of the succeeding year.  For fiscal year 2019 activity to be completed by June 30^th, the cutoff date for most agency processing will be Wednesday, June 26, 2019 at 6:00 PM. 

SMART will be closed to agencies from Thursday, June 27, 2019 through Sunday, June 30, 2019, and again the morning of Friday, July 5, 2019.

See attachments:

FY19_Events_to_Close_FY19_Open_FY20
FY19_Close_Day_by_Day_Summary

Summary: FY 2018 Private Vehicle Mileage Rates

As authorized by K.S.A. 75-3203a, the Secretary of Administration has fixed the private vehicle maximum mileage reimbursement rates for FY 2018 at:

53.5¢ per mile for privately owned automobile

50.5¢ per mile for privately owned motorcycle

17¢ per mile for moving mileage rate

$1.15 per mile for privately owned airplane (based on air miles rather than highway miles)

These rates were effective January 1, 2017 and remain unchanged.

DH:jm

Printable Version of 18-A-001

Summary: FY 2018 Meals and Incidental Expense (M&IE) and Lodging Rates

As authorized by K.S.A. 75-3207a, the Secretary of Administration has fixed subsistence rates for FY 2018.  The Employee Travel Expense Reimbursement Handbook is updated to include information regarding subsistence for travel which occurs during FY 2018.

For State of Kansas travel, federal subsistence rates are being followed.  Subsistence rates are based on travel location and travel dates with seasonal rates listed for many locations.  If a specific travel location isn’t listed (or within the location definition), the standard rate, or “other” location rate is used.  The following standard rates apply to many locations across the contiguous United States (CONUS).

For CONUS locations, the following standard daily subsistence rates apply for travel which occurs July 1, 2017 and after:

M&IE - $51

Lodging - $91

These rates were effective October 1, 2016 and remain unchanged.  The M&IE and Lodging rates are updated semi-annually each October 1 and April 1 to follow CONUS rates in effect on those dates.

SMART contains the official subsistence rates for CONUS and OCONUS travel locations and will be updated semi-annually each October 1 and April 1 for any interim rate changes which have occurred.  International subsistence rates are not loaded into SMART.  For international travel locations, employees will obtain M&IE rates directly from the U.S. Department of State (DOS) website listed below.  For international travel, payment for actual lodging expense is allowed.

Source of Subsistence Rates -

Contiguous United States (CONUS) -

The U.S. General Services Administration (GSA) maintains the M&IE rates and lodging rates for travel locations in the contiguous United States -
U.S. General Services Administration website: http://www.gsa.gov/portal/content/104877
Outside Contiguous United States (OCONUS):

(Alaska, Hawaii, and U.S. Territories/Possessions) -

The U.S. Department of Defense (DOD) maintains the M&IE rates and lodging rates for travel locations within Alaska, Hawaii and U.S. Territories/Possessions -
U.S. Department of Defense website: http://www.defensetravel.dod.mil/site/perdiemCalc.cfm

International Locations -

The U.S. Department of State (DOS) is the source for M&IE rates only for international travel locations-
U.S. Department of State website: https://aoprals.state.gov/web920/per_diem.asp
For international travel, payment for actual lodging expense is allowed.
Note for using federal websites:

For CONUS and OCONUS travel, if SMART is not accessible, employees may access subsistence rates through the federal websites. However interim federal website updates may occur subsequent to the semi-annual SMART updates each October 1 and April 1. CONUS rates are published on an annual basis but the annual file is updated periodically throughout the year with no interim files published. OCONUS and international rates are updated and published on a monthly basis. Be aware that any interim updates for CONUS or OCONUS locations are not valid until reflected in SMART. For international travel, only the October 1 and April 1 subsistence files should be used to locate the M&IE rates.

If employees utilize the federal websites to find M&IE and lodging rates, those rates should be used as follows:

Rates published October 1 - for travel occurring between October 1 and March 31 of each year.
Rates published April 1 - for travel occurring between April 1 and September 30 of each year.

Lodging Expense Limitations:
K.S.A. 75-3207a(f) provides that the daily lodging expense limitations established may be exceeded, upon approval by the agency head or designee, by the lesser of either: (1) an additional 50% of the applicable lodging expense limitation, or (2) the actual lodging expense incurred.

These lodging limits continue to be applied to the lodging rate before taxes.  Thus, the amount reimbursed or paid for lodging expenses may exceed the established lodging limitation by as much as the amount of associated taxes.

Conference Lodging qualified under K.A.R. 1-16-18a(c):
Agencies may authorize payment or reimbursement for actual lodging expenses when an employee is required or authorized to attend a conference, and the lodging rate exceeds the applicable lodging expense limitation (including the additional 50%).  The agency head must be provided with conference materials and rates.  These should be maintained with travel documentation.

Reduced Meal Allowance:
If the cost of meals is included within the cost of registration fees or other fees and charges paid by the agency or provided at no cost to the employee, the daily M&IE rate for the travel location should be reduced based on the percentages listed below.  For partial days, the quarter amount is calculated first and then the reduction percentage is applied.  The daily M&IE reduction percentages are as follows:

Breakfast - 15%

Lunch - 35%

Dinner - 50%

Same Day Meal Allowance:
Reimbursement for a same day meal, in accordance with K.A.R. 1-16-18(c)(2), is calculated as a percentage of the daily M&IE rate for the travel location, based on the approved meal, as follows:

Breakfast - 15%

Lunch - 35%

Dinner - 50%

Queries in SMART to Obtain M&IE Rates and Lodging Rates:
A query “KS_EX_CONUS_RATES” is available in SMART to obtain all CONUS and OCONUS locations with the daily M&IE rates, meal reductions and lodging rates.  SMART will be updated semi-annually with the October and April 1 CONUS and OCONUS subsistence rates.  Historical locations and rates from each semi-annual update will be maintained in SMART.

DH:jm

Printable version of 18-A-002

Summary: State of Kansas Encumbrance Policy Amendments expanding transactions not required to be encumbered.

This Informational Circular (IC) is issued to announce the following changes to the statewide encumbrance policy:

Amendments to the encumbrance policy:

Additional obligations that are generally not required to be encumbered but are optional for agency budget management include:

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:

DH:jm

Attachments:

PM Filing 10,300 Statewide Encumbrance Policy can be found at: Policy Manual

Best Practices – Statewide Encumbrance Policy: https://webadmin.ks.gov.production.premier.siteviz.com/media/cms/d56f9875-9fb8-443f-ab34-97c44fe9758a.docx

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

• 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.
• Program payments are further defined as payments where the disbursing agency receives no direct service or tangible asset.
• 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.
• Payroll expenditures and remittance of payroll taxes, deductions and garnishments
• Single Pay voucher payments

As authorized by K.S.A. 75-3207a, the Secretary of Administration has fixed subsistence rates for FY 2018.  The U.S. General Services (GSA) has announced a change in the CONUS standard rate for lodging effective October 1, 2017.  The GSA standard lodging rate has been increased to $93.  The standard M&IE rate of $51 remains unchanged.

For State of Kansas travel, federal subsistence rates are being followed.  Subsistence rates are based on travel location and travel dates with seasonal rates listed for many locations.  If a specific travel location isn’t listed (or within the location definition), the standard rate, or “other” location rate is used.  The following standard rates apply to many locations across the contiguous United States (CONUS).    

For CONUS locations, the following standard subsistence rates apply for travel occurring on and after October 1, 2017:

M&IE - $51

Lodging - $93

The Employee Travel Expense Reimbursement Handbook is updated to include this information regarding subsistence for travel occurring on and after October 1, 2017.

SMART contains the official subsistence rates for CONUS and OCONUS travel locations and will be updated semi-annually each October 1 and April 1 for any interim rate changes which have occurred.  International subsistence rates are not loaded into SMART.  For international travel locations, employees will obtain M&IE rates directly from the U.S. Department of State (DOS) website listed below.  For international travel, payment for actual lodging expense is allowed.

Source of Subsistence Rates -

Contiguous United States (CONUS) -

The U.S. General Services Administration (GSA) maintains the M&IE rates and lodging rates for travel locations in the contiguous United States -
U.S. General Services Administration website: http://www.gsa.gov/portal/content/104877
Outside Contiguous United States (OCONUS):

(Alaska, Hawaii, and U.S. Territories/Possessions) -

The U.S. Department of Defense (DOD) maintains the M&IE rates and lodging rates for travel locations within Alaska, Hawaii and U.S. Territories/Possessions -
U.S. Department of Defense website: http://www.defensetravel.dod.mil/site/perdiemCalc.cfm

International Locations -

The U.S. Department of State (DOS) is the source for M&IE rates only for international travel locations-
U.S. Department of State website: https://aoprals.state.gov/web920/per_diem.asp
For international travel, payment for actual lodging expense is allowed.
Note for using federal websites:

For CONUS and OCONUS travel, if SMART is not accessible, employees may access subsistence rates through the federal websites. However interim federal website updates may occur subsequent to the semi-annual SMART updates each October 1 and April 1. CONUS rates are published on an annual basis but the annual file is updated periodically throughout the year with no interim files published. OCONUS and international rates are updated and published on a monthly basis. Be aware that any interim updates for CONUS or OCONUS locations are not valid until reflected in SMART. For international travel, only the October 1 and April 1 subsistence files should be used to locate the M&IE rates.

If employees utilize the federal websites to find M&IE and lodging rates, those rates should be used as follows:

Rates published October 1 - for travel occurring between October 1 and March 31 of each year.
Rates published April 1 - for travel occurring between April 1 and September 30 of each year.

Lodging Expense Limitations:

K.S.A. 75-3207a(f) provides that the daily lodging expense limitations established may be exceeded, upon approval by the agency head or designee, by the lesser of either: (1) an additional 50% of the applicable lodging expense limitation, or (2) the actual lodging expense incurred.

These lodging limits continue to be applied to the lodging rate before taxes.  Thus, the amount reimbursed or paid for lodging expenses may exceed the established lodging limitation by as much as the amount of associated taxes.

Conference Lodging qualified under K.A.R. 1-16-18a(c):

Agencies may authorize payment or reimbursement for actual lodging expenses when an employee is required or authorized to attend a conference, and the lodging rate exceeds the applicable lodging expense limitation (including the additional 50%).  The agency head must be provided with conference materials and rates.  These should be maintained with travel documentation.

Reduced Meal Allowance:

If the cost of meals is included within the cost of registration fees or other fees and charges paid by the agency or provided at no cost to the employee, the daily M&IE rate for the travel location should be reduced based on the percentages listed below.  For partial days, the quarter amount is calculated first and then the reduction percentage is applied.  The M&IE reduction percentages are as follows:

Breakfast - 15%

Lunch - 35%

Dinner - 50%

Same Day Meal Allowance:

Reimbursement for a same day meal, in accordance with K.A.R. 1-16-18(c)(2), is calculated as a percentage of the daily M&IE rate for the travel location, based on the approved meal, as follows:

Breakfast - 15%

Lunch - 35%

Dinner - 50%

Queries in SMART to Obtain M&IE Rates and Lodging Rates:

A query “KS_EX_CONUS_RATES” is available in SMART to obtain all CONUS and OCONUS locations with the M&IE daily rates, meal reductions and lodging rates.  SMART will be updated semi-annually with the October and April 1 CONUS and OCONUS subsistence rates.  Historical locations and rates from each semi-annual update will be maintained in SMART.

Printable Version of 18-A-004

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Summary: Returns for non-SMART payments and payments in SMART without the required 1099 information

• Requirements to report payments where the 1099 data was not recorded in SMART:

  1. The supplier/client must be in the Statewide Management, Accounting and Reporting Tool (SMART) supplier table.
  2. All reportable payments must be submitted via Service Desk using the EXCEL template referenced below
  3. The Office of the Chief Financial Officer processes the payments submitted via Service Desk using SMART. SMART generates the paper 1099s which are mailed to the suppliers. The 1099 information is electronically submitted to the IRS.

There is NO option for the agency to print the forms and have the Office of the Chief Financial Officer report to the IRS.

Policy and procedures:

While most 1099 transactions are recorded in SMART, and require no additional action by state agencies; there are some payments that occur outside of SMART or the information to be reported to the IRS is not in SMART. These transactions result in unique reporting procedures comprised of the following:

• Locally administered interest payments of $10 or more are to be reported on IRS Form 1099-INT. These payments typically represent interest paid from trust funds to clients of institutions with the Department for Aging and Disability Services and the Department of Corrections.
• Other payments such as non-employee awards not paid directly to the recipient from SMART.

To report non-SMART payments for form 1099 purposes the agency must confirm the supplier is in the SMART supplier table with the appropriate 1099 type and class, and ensure that withholding is turned on. If the supplier is not in the supplier table, the agency must add the supplier to SMART including the appropriate 1099 type and class, and turn withholding on.

Complete the EXCEL template “PS_WTHD_TRAN_TBL_update_template” (link to the Excel document is included at the bottom of this circular) for all non-SMART 1099 reportable payments. The completed template needs to be received by the Office of the Chief Financial Officer by January 11, 2018 to ensure the 1099s are distributed by the January 31, 2018 deadline.

The template has the columns listed below. Do not insert or delete columns or rows. Do not change the formatting. Beginning with line 2 (replacing the sample data), complete one line for each payment (add lines as necessary for additional withholding types/classes). The gray columns are defaults and should not be changed. If 499 lines are not sufficient, copy line 500 down. When completed, attach the EXCEL spreadsheet to a Service Desk ticket with the heading “non-SMART 1099”. Note if you have leading zeros precede them with an apostrophe ‘, i.e. supplier id ‘0000123456.

BUSINESS_UNIT: 5 characters must have leading zeros (your agency number)

WTHD_ENTITY: IRS

WTHD_TYPE: as listed in the supplier table (1099, 1099I, 1099G)

WTHD_JUR_CD: FED

WTHD_CLASS: as listed in the supplier table, with leading zeros.

WTHD_RULE: RULE0

SUPPLIER_SETID: SOKID

SUPPLIER_ID: 10 digits with leading zeros, as assigned by SMART.

SUPPLIER_LOC: the supplier location with the 1099 withholding type and class entered in column C and E, usually 001, with leading zeros

ADDRESS_SEQ_NUM: 1

PYMNT_ID: Blank

SUPPLIER FEIN OR SSN: SSN or FEIN, 9 digits including leading zeros

PYMNT_DT: date of payment, mm/dd/yyyy format

WTHD_DECL_DATE: Same as date of payment

WTHD_BASIS_AMT: The taxable amount for this 1099 type and class for 2017.

DESCR100: 100 characters of your choice – no punctuation, no special characters

Additional Resources:

Training guide for setting up suppliers for 1099 reporting and an account code guide:
1099 and Withholding Training Guide

IRS guide to each type of 1099, including instructions for each:
IRS Online Instructions for Forms

SMART withholding codes:
SMART Withholding Codes Job Aid

Excel withholding template:

18-A-005-PS_WTHD_TRAN_TBL_update_template

Printable version of 18-A-005

Summary: Changes to Taxability of Moving Expense Reimbursement

This Informational Circular (IC) is issued to announce the following changes to the process for the reimbursement of qualified moving expenses to state employees:

The federal Tax Cuts and Job Act (H.R.1) enacted into law on December 22, 2017 amends Internal Revenue Code – Title 26, § 132(g) suspending the existing exclusion for qualified moving expense reimbursements from gross income.

Effective January 1, 2018 all qualified moving expense reimbursements are subject to taxes and are to be reimbursed directly to the employee through payroll (SHARP) using the Moving Expense Taxable (MVT) earnings code.

As authorized by KSA 75-3225(d), the Secretary of Administration intends to amend KAR 1-16-2b to require that moving expenses be reimbursed directly to the employee and to no longer allow payments to a commercial carrier. Therefore, moving related direct billed (commercial carrier, lodging, or airfare) payments are no longer authorized to be paid via the SMART Accounts Payable module or agency procurement card. Nor should any moving related reimbursements be paid to the employee through the SMART Travel & Expense module due to the taxable fringe benefit reporting requirements.

All moving expenses are to be paid after the move has occurred and all the necessary documents and receipts have been submitted by the employee for reimbursement. As authorized by KSA 75-3225, per KAR 1-16-2b(b)(1), the amount to be paid for moving household and personal effects may not in any case exceed the amount of the actual reimbursable moving expenses verified by receipts and bill of lading or the amount of moving expenses for moving twelve thousand (12,000) pounds of household goods by commercial carrier, whichever is the lesser amount. The agency is required to determine the actual amount of the moving expense to be reimbursed to the employee and notify the appropriate agency HR/Payroll staff of the employee and the amount to be added to the employee’s timesheet as MVT earnings. Agency HR/Payroll staff should include the reimbursement on the employee’s timesheet in the pay period following submission of the documentation.

As specified in KSA 76-727(b)(2), applicable to state educational institutions, the amount of the reimbursement cannot exceed the amount of the actual moving expenses verified by receipts or the amount of moving expenses for moving 12,000 pounds of household goods, whichever is the lesser amount.

Documentation for all moving expense reimbursements paid through SHARP with the MVT code should be maintained at the agency.

Approval to Reimburse Qualified Moving Expenses

The approval process for both in-state and out-of-state authorizations are not impacted by the taxability of the moving expense reimbursements.

As required by KSA 75-3225(a), an agreement must be signed by the agency head prior to authorizing the reimbursement of moving expenses to an employee using Form DA-22, Agreement for Reimbursement of Moving Expenses. 

If an applicant is from out-of-state; prior approval of the Secretary of Administration and the Governor should be obtained using Form DA-29, Request to Pay Expense of Out-of-State Applicants, to reimburse moving expenses. (KSA 76-727 (3c) exempts state educational institutions and the Board of Regents from obtaining prior approval of the governor).

Policy Manual 3,607 - Employee Moving Expense Reimbursement has been updated and will be available on or before March 30th on the Department of Administration website.

Policy Manual

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Printable version of 18-A-006 

Summary: Capital Asset Reporting

In accordance with KSA 75-3729 and the Department of Administration’s Policy Manual Filing 13,001 - Capital Asset Records, agencies must enter capital assets into the SMART Asset Management (AM) module when the asset is received and/or the asset is functional to accurately reflect the correct transactions for reporting on the Comprehensive Annual Financial Report (CAFR). To ensure compliance with state policies, the DA-87 Annual Capital Asset Reporting Log will be required to record all capital asset transactions over the capitalization thresholds noted below. This includes the acquisition, disposal, and transfer of capital assets and any changes to existing capital assets reported in the SMART AM module.

NOTE: KDOT & Regent Institutions are exempt from the reporting requirements of the DA-87.

Assets with a cost meeting the established threshold and a useful life exceeding one year are reported as capital assets in the CAFR. It is the agency’s responsibility to ensure all capital assets are properly recorded in the SMART AM module.

The statewide capitalization thresholds for assets are as follows:

Please note, two SMART queries are available to assist agencies in reviewing and reconciling capital asset transactions:

• Capital Asset Inventory List Query - KS_AM_ASSET_CAPITAL_INV_LIST – The query provides a complete agency inventory of capital assets recorded in the SMART AM module (use data filters to select CAFR asset book).
• Capital Outlay Purchase Query - KS_AM_VCHRS_WITH_54XXXX_ACCT – The query provides a list of vouchers using the capital outlay account codes for the specified dates.

DA-87 Annual Capital Asset Reporting Log due dates:

• FY18 Initial submission is due May 15^th (For the reporting period of July 1^st, 2017 through March 31^st, 2018).

• FY18 End-of-Year log will be due July 31^st and will be a cumulative record of all FY18 capital asset transactions.

In FY2019 and subsequent years, agencies are required to submit a DA-87 cumulative report for each quarter of the FY due no later than the 15th calendar day following the end of each quarter to include all current FY capital asset transactions. The due dates are as follows:

Please submit the completed DA-87 log to the Financial Integrity Team (FIT) email: OCFO-FIT@ks.gov

For detailed instructions on completing the DA-87, please see the “Instructions” tab on the workbook.

If the agency does not have any capital assets to report for the period, please send an email to the FIT team noting that no assets were purchased within the reporting period.

Assets are entered in the SMART AM module in one of two ways.

1. Directly in AM via Express Add.SMART Job Aid:Adding An Asset Using Express Add
2. Via asset integration on the requisition, the purchase order or the voucher

Each agency must determine which method will be used and ensure all parties involved are aware of how assets will be entered.

SMART Asset Integration Tools:  Asset integration is a process by which asset information included on the requisition, purchase order and voucher can flow to the Asset Management Loader Tables. This allows assets to be loaded to the Asset Management module directly, eliminating the need to hand-key asset details such as profile ID, tag number, custodian, location and chartfield values in the AM module. It also links the asset to its originating voucher.

In SMART asset integration can begin on either the requisition or the purchase order for the purchase of new assets or on the voucher for new or existing assets. Agencies have the option of deciding where to begin asset integration in SMART. Detailed job aids are available for entering assets at each level of integration: http://www.smartweb.ks.gov/training/integration-materials/am-po-and-ap.

• Linking Vouchers with Asset Module
  • AM Tool 5 - Beginning Asset Integration on Voucher
  • Reviewing the Transaction Loader Tables Job Aid
  • Agency Asset Processor's Role in Integration

• Construction-In-Progress (CIP) is recommended to be entered in SMART AM at the beginning of the project.
  • It is essential that all costs associated with a CIP asset are captured in AM. Agency staff must determine if integration will be used or if asset costs will be manually adjusted in AM. The agency must determine the best process to communicate CIP costs between the Accounts Payable and Asset Management modules. SMART Job Aid: CIP Assets

Capital Asset Reporting Reminders:  Agencies should keep SMART AM up-to-date to ensure all assets are entered before FY closing. If an error or omission is found after year-end closing, in addition to entering the correction in SMART AM, a detailed explanation should be included on the Form DA-82 Capital Asset Supplemental Information.

The following guidance is provided to assist in completing capital asset reporting:

• Capital asset physical inventories are to be completed annually. Inventories are recommended to be  conducted prior to June 15th to allow for corrections/additions to be recorded in the SMART AM module prior to SMART Year-End deadlines.
• Verify correct Profile ID and Category Code are used for assets. Asset Profiles drive the depreciation and accounting entry creation for CAFR purposes, it is crucial that the correct Asset Profile is used. SMART Job Aid: Incorrect Asset Profiles and Corrections / Profile ID Section Job Aid
• Agencies should review Construction-In-Progress (CIP) before year-end closing to ensure all costs are included in the asset module. CIP costs can be entered directly into AM as an addition/adjustment on the Cost Adjust/Transfer page to add costs as expenditures are incurred. SMART Job Aid: CIP Assets
• Completed CIP assets need to be recategorized, the profile ID updated to a non-CIP profile, and other requirements completed as further defined in the job aid. SMART Job Aid: CIP Assets (See Section: Steps to Perform After CIP Asset is Complete)
• All assets that have been sent to state surplus, sold, or otherwise no longer in the agency’s possession should be disposed of in the SMART AM module accordingly. SMART Job Aid: SMART
• Verify reported asset cost allocations, and update asset costs, if necessary. SMART Job Aid Adjustments and Additions to Cost and/or Quantity
• For agencies utilizing integration, all outstanding Asset Integration Interface ID’s must be processed. SMART Job Aid: Reviewing Transaction Loader Tables

For assistance with entering/updating assets in SMART, please submit a SMART Service Desk ticket. For policy/recording questions please email the Statewide Agency Audit Services team at ARpreaudit@ks.gov.         

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Resources:
Policy Manual 13,001 Capital Asset Records
Form DA-87 Annual Capital Asset Reporting Log
SMART Module of the Month Training – Safeguarding Assets

Additional SMART Asset Management job aids are available online via SMART Web.

Printable Version 18-A-007

Summary: Schedule of accounting events relevant to the closing of Fiscal Year 2018 and the opening of Fiscal Year 2019

K.S.A. 75-3002 establishes the state fiscal year as commencing on the first day of July in each year and closing on the thirtieth day of June of the succeeding year.  In order for fiscal year 2018 activity to be completed by June 30^th, the cutoff date for most agency processing will be Wednesday, June 27, 2018 at 6:00 PM. 

SMART will be closed to agencies from Thursday, June 28, 2018 through Saturday, June 30, 2018 so the SMART Team can review and finalize all outstanding FY 2018 business.  SMART will also be closed the morning of Friday, July 6, 2018 to run the fiscal year 2018 closing processes and verify the fiscal year end journals were completed correctly.

The workload for both agencies and the SMART Team increases greatly during the fiscal year end closing period. In order to facilitate successful year end processing, reminders and guidelines for agencies are included below.

It is necessary for agency accounting staff to be available during the day Thursday, June 28, 2018 and Friday, June 29, 2018 in case assistance is needed as the SMART Team is preparing the system for closing.

General Items

All FY 2018 transactions must be successfully edited, budget checked, matched, agency approved, dispatched, and submitted into workflow for central approval, as appropriate, by 6:00 PM on Wednesday, June 27, 2018. After this time, SMART will be closed to all agency users, and the SMART clean-up process will begin on Thursday, June 28, 2018.

State agencies should be reviewing financial data and processing any necessary corrections before the end of the fiscal year. Please consult the month end checklists available on the SMART website, Smart Website, to assist with this review.  There are additional queries listed in the REFERENCES section at the end of this document that may also be helpful. The SMART Team is actively working to assist agencies in preparation for fiscal year end. ManageEngine Service Desk tickets will be sent to agencies as outstanding or incomplete transactions are found. The transactions identified by the SMART Team will likely be just a subset of the outstanding, incomplete or incorrect transactions agencies will identify between now and the end of the fiscal year.  

General Ledger Encumbrances (non-supplier specific encumbrances) will be used to encumber fiscal year 2018 budget in limited circumstances. The GL-F016 GL Encumbrance Request Form is located on the Department of Administration website at the following link:  Document Center

Complete the GL-F016 GL Encumbrance Request Form and attach it (as an Excel file, not PDF) to a ManageEngine Service Desk ticket by 5:00 PM on Friday, June 22, 2018. Provide a description of the obligation and the reason the supplier is not known or the Purchase Requisition/Order process is not practical for encumbering budget. Requests will be routed to the Division of the Budget (DoB) for approval. The description of the obligation on the GL Encumbrance form (GL-F016) must match the description of the transactions processed in the future which use the encumbered funds.

GL Encumbrance Journals may be keyed by the Office of the Chief Financial Officer staff into SMART prior to receiving DoB approval to give each agency the opportunity to review the document and its effects in SMART prior to close.  Agencies will be notified via ManageEngine Service Desk ticket of the Journal ID(s). In the event DoB denies the GL encumbrance, the affected agency will be notified via ManageEngine Service Desk ticket and the document will be deleted from SMART.

Budget Period 2018 expense, encumbrance, and revenue data from SMART Commitment Control Ledger groups (CC_IBARS_E, CC_IBARS_R) will be electronically submitted to the Division of the Budget by Wednesday, August 1, 2018 for loading into the IBARS system.

The dates provided in this document that relate to fiscal year closing and opening activities may be revised, as necessary, by the Office of the Chief Financial Officer.  Revisions to SMART processing dates will be sent via email to all users subscribed to the SMART Infolist listserv (subscribe at Subscribe here).  After issuance, SMART Announcements are also posted on the SMART Website at Smartweb announcements

Any revisions to payroll processing dates will be issued as a SHARP message to subscribers of the SHARP infolist listserv (subscribe at Subscribe here).  

Accounts Payable

The final day agencies can enter a voucher in accounts payable for FY 2018 business will be Wednesday, June 27, 2018.  Here is additional information that will help you with accounts payable:

Please refer to PM 14,002 (Policy Manual) to help determine the appropriate processing period for each type of account code activity.

Interfacing agencies must have their final INF02 (Inbound Voucher) for FY 2018 business submitted by 5:00 PM on Tuesday, June 26, 2018.

For agencies that upload and submit vouchers via INF50 (Voucher Spreadsheet Upload), the final INF50 uploads for FY 2018 business must be submitted by 1:00 PM on Wednesday, June 27, 2018.

In order for accounts payable transactions to complete for FY 2018, all vouchers must be entered, matched, budget checked and approved by 6:00 PM on Wednesday, June 27, 2018. The last hourly batch will run at 4:00 PM. Any transaction still in process after 4:00 PM must be manually budget checked, matched, and then approved to be postable or posted by 6:00 PM.

Any FY 2018 accounts payable transaction that cannot be entered in SMART by the cutoff date must be encumbered by using a purchase order.

Any voucher that has not been successfully edited, matched, budget checked and approved by 6:00 PM on Wednesday, June 27, 2018 will be deleted by the SMART Team.

Interfacing agencies may submit their INF02 files for FY 2019 business in advance with an accounting date on or after July 1, 2018. The files received and processed prior to July 1^st will be in voucher build error until FY 2019 is opened. At that time, vouchers will be built and will be eligible for pay cycle once they are matched, budget checked, and approved.

Any INF02 submitted after Tuesday, June 26, 2018 must have an accounting date of 07/01/2018 or greater and will process for FY 2019. Any vouchers built on or after 07/01/2018 with an accounting date prior to 07/01/2018 will be in recycle status due to FY 2018 being closed. Agencies will be asked to delete these vouchers and will need to submit a corrected INF02.

Travel Authorizations 

K.S.A. 75-3208 requires approval for all out of state travel. One method of approval is the use of a Travel Authorization. Pursuant to PM 10,300 Statewide Encumbrance Policy, Travel Authorizations are required for all out of state travel, and international travel events, and any travel or expense reimbursement that will not be entered by the fiscal year end cutoff date. Travel Authorizations must be entered and fully approved prior to the dates of travel.

A reminder to help ensure the Travel Authorization (TA) will properly liquidate the encumbrance when pulled into an Expense Report (ER) and that the Expense Report (ER) will pass budget check, the funding on the TA shall match the funding on the ER:

• Number of TA lines > or = Number of ER lines
• TA fund/budget unit = ER fund/budget unit
• TA fund/budget unit amount > or = ER fund/budget unit amount

All in state and out of state travel occurring in FY 2018 must be reimbursed using FY 2018 funds. If an expense report will not be submitted and fully approved by 6:00 PM on Wednesday, June 27, 2018, a Travel Authorization must be entered and fully approved by 6:00 PM on Wednesday, June 27, 2018. Travel Authorizations must be entered and fully approved prior to the dates of travel.

Any travel authorization that has not been fully approved by 6:00 PM on Wednesday, June 27, 2018 will be deleted or cancelled by the SMART Team and will not be available for use.

If you need to encumber money for Prepaid expenses that will not be paid by close of FY 2018, you will need to create a purchase order for the prepaid items.

Travel Authorizations for FY 2019 shall not be entered until FY 2019 is open to agencies.

Expense Reports

Expense Reports chargeable to FY 2018 must be submitted and fully approved in SMART by 6:00 PM on Wednesday, June 27, 2018.  Per PM 10,300 Statewide Encumbrance Policy, for any travel or expense reimbursement chargeable to FY 2018 that cannot be submitted and fully approved in SMART by the 6:00 PM Wednesday, June 27, 2018 deadline, the agency must process a Travel Authorization.

Any expense report that has not been fully approved by 6:00 PM on Wednesday, June 27, 2018 will be deleted or closed by the SMART Team and will not be available for processing.

Per K.S.A. 75-3201 and as stated in PM 3,903 --Employee Travel Expense Reimbursement Handbook, employees who travel are to submit paperwork for their expenses at least once a month. 

If agency employees have expense reports for travel occurring in FY 2018, and there is no approved travel authorization or GL encumbrance in SMART, the use of the Prior Fiscal Year Claims Process as described in PM 11,966 is required. The Policy Manual can be found at the following link:  Policy Manual

Imprest Funds

Expenditures paid from imprest funds dated on or before June 30, 2018 must be recorded in SMART prior to the deadline for payment voucher submission. For imprest fund expenditures not expected to be recorded in SMART by the fiscal year end cutoff for payment vouchers, a purchase order (PO) or general ledger encumbrance (GL encumbrance) must be created as appropriate using the correct budget period and funding. Prior to July 15, 2018, the agency must replenish the imprest fund and record expenditures to the appropriate suppliers (using the PO or GL encumbrance). The expenditure fiscal year determination contained in PM 14,002 also applies to imprest funds. Refer to PM 10,802 for additional information regarding imprest funds. PM 10,802 can be found at the following link: Policy Manual

Petty Cash Funds

Petty cash procedures are the same as those set forth in the Imprest Funds section above. The expenditure fiscal year determination contained in PM 14,002 also applies to petty cash funds. Refer to PM 10,752 for additional information regarding petty cash funds. PM 10,752 can be found at the following link: Policy Manual

Purchasing

To encumber monies for FY 2018, requisitions must be sourced to purchase orders (POs) and the purchase orders must be approved, budget checked and dispatched by 6:00 PM on Wednesday, June 27, 2018.

If an Agency needs to process a requisition using FY 2019 funds prior to July 1, 2018 the agency should take the following steps:

• Starting Tuesday, May 1, 2018 enter the requisition and select the ‘Save for Later’ option.
• Starting Friday, June 1, 2018 submit a ManageEngine Service Desk ticket requesting the budget date on the requisition be changed to a FY 2019 date.
• Once the budget date has been changed, select the ‘Save & submit’ button on the requisition.

The requisition will source to a PO; however, the PO will not pass budget check until the FY 2019 appropriations budget has been loaded into SMART.

Purchase orders entered after 6:00 PM on Wednesday, June 27, 2018 will NOT be back dated to a 2018 Fiscal Year budget date.

Refer to Procurement Informational Circular 18-01, Schedule for Submission of Purchase Requisitions to Close Fiscal Year 2018 and begin Fiscal Year 2019 for additional purchasing deadlines. Link to Procurement Informational Circulars:  Informational Messages and Circulars

Procurement Cards

Agencies are encouraged to reconcile P-Card transactions on a daily basis, especially during the month of June.  Final FY 2018 P-Card transactions will be available for reconciliation on Thursday, June 21, 2018.  P-Card transactions must be verified and approved by 6:00 PM on Tuesday, June 26, 2018 to be eligible for P-Card voucher build on Wednesday, June 27, 2018. No P-Card reconciliation for FY 2018 transactions shall take place after 6:00 PM on Tuesday, June 26, 2018.

The P-Card voucher build process will run each day beginning Thursday, June 21, 2018. The final P-Card voucher build process for FY 2018 will run the morning of Wednesday, June 27, 2018.  In order for P-Card vouchers to complete for FY 2018, they must be successfully budget checked and approved by 6:00 PM on Wednesday, June 27, 2018.  The last hourly batch will run at 4:00 PM. Any P-Card voucher still in process after 4:00 PM must be manually budget checked and then approved to be postable or posted by 6:00 PM.

Any P-Card voucher that has not been successfully edited, budget checked and approved by 6:00 PM on Wednesday, June 27, 2018 will be deleted by the SMART Team.

Asset Management

All FY 2018 asset transactions must be entered by 6:00 PM on Wednesday, June 27, 2018. This includes additions, adjustments, transfers, and retirements, as well as updating costs for CIP assets.

Note that for new assets being entered in SMART, the Transaction Date is the date the asset was placed in service.

Please see Informational Circular 18-A-007 Capital Asset Reporting for details outlining the requirements for proper recording of capital assets.

SMART queries are available to assist agencies in reviewing and reconciling capital assets:

• Capital Asset Inventory List query – KS_AM_ASSET_CAPITAL_INV_LIST – query provides a complete agency inventory of capital assets recorded in the SMART AM module (use data filters to select CAFR book).
• Capital Outlay Purchase query – KS_AM_VCHRS_WITH_54XXXX_ACCT – query provides a list of vouchers using the capital outlay account codes for the specified dates. 

For agencies utilizing asset integration, all outstanding Interface IDs for FY 2018 must be processed by 6:00 PM on Wednesday, June 27, 2018. If an asset is acquired by your agency at the end of the fiscal year and the voucher will not be posted by Thursday, June 21, 2018, please enter the asset(s) manually via Express Add. Any remaining FY 2018 Interface IDs after Wednesday, June 27, 2018 will be deleted by the SMART Team. 

Additional job aids can be found at: Additional job aids

Project Costing

All billing worksheets where revenue should be recognized in FY 2018 should be approved or written-off and any related deposits completed by 6:00 PM on Wednesday, June 27, 2018.

It is recommended that all billing worksheets created prior to April 1, 2018 be reviewed and processed by Friday, May 25, 2018.  The KS_PC_BILLING_WORKSHEET query in the HELPFUL QUERIES section of this circular is designed to help identify unprocessed billing worksheets by accounting date.

Accounts Receivable

Fiscal year 2018 deposits must be entered as follows:

Deposits should be entered, agency approved, and budget checked prior to 6:00 PM on Wednesday, June 27, 2018.

Thursday, June 28, 2018 through Friday, June 29, 2018 online entry into SMART will be closed to agencies.

Deposits received Thursday, June 28 and Friday, June 29 shall be processed as follows:

• Credit Card Receipts - Credit card receipts will load into SMART as scheduled at 8:00 AM each day Thursday, June 28, 2018 and Friday, June 29, 2018. See below for instruction on Deposit Adjustments for Credit Card Clearing Funds.

• INF43 and INF44 - For agencies that upload and submit deposits via INF43 (Excel Deposit Upload) and INF44 (Inbound Deposit) -- continue to upload and submit FY 2018 deposits via INF43 and INF44 until 11:00 AM on Friday, June 29, 2018. SMART AR Deposit jobs will run according to the regular hourly schedule.If you process an INF43 or INF44, please e-mail the State Treasurer’s Cash Management Group at cash@treasurer.ks.gov to notify them of the Business Unit, Deposit ID (if known), and deposit total so they can approve the transaction in SMART.  STO will perform their normal approval and release at 3:00 PM Thursday, June 28, 2018. STO will perform the final FY 2018 approval and release at 1:00 PM Friday, June 29, 2018.

• “Deposits in transit” - “Deposits in transit” are specifically defined as Deposits made with the State Treasurer on Thursday, June 28, 2018 or Friday, June 29, 2018 using the Temporary Deposit Form. For agencies that do not use the INF43 or INF44 processes and need to make a deposit while SMART is unavailable -- the State Treasurer’s Office has created the Temporary Deposit Form to allow you to continue to deposit funds. Using the Temporary Deposit Form is preferable to holding checks and cash at your agency and allows you to meet the requirement to deposit funds collected each day. Please bring the completed form, along with the cash and checks (calculator tape attached) to the State Treasurer’s Office.

Deposits made with the State Treasurer using the Temporary Deposit Form (Deposits in transit) must be entered and approved in SMART during the time June 2018 Accounts Receivable is reopened on Monday, July 2, 2018 through Tuesday, July 3, 2018 at 3:00 PM.  Deposits in transit shall be entered using an accounting date of June 30, 2018.

The accounting date of 6/30/2018 must be entered on the Totals tab in addition to being entered on the Payments tab for each deposit line. “Deposits in transit” should be recorded using a revenue account code (4XXXXX).  A “deposit in transit” cannot debit expenditures.

Please be aware that deposits with an accounting date of June 30, 2018 and processed in July 2018 will impact the General Ledger for FY 2019.

Deposits with a June 30, 2018 accounting date that have not been agency approved by 3:00 PM on Tuesday, July 3, 2018, will be deleted by the SMART Team.

Deposit Adjustments for Credit Card Clearing Funds:

Deposit adjustments are required for credit card deposits to recognize the revenue and move the monies out of the credit card clearing funds and into the appropriate funds.

All deposits received prior to June 27, 2018 that require deposit adjustments, such as those deposits into clearing funds for credit card receipts, must have deposit adjustments entered in SMART by 6:00 PM on Wednesday, June 27, 2018.

The credit card deposits will load into SMART as scheduled at 8:00 AM on Thursday, June 28, 2018 and Friday, June 29, 2018 when agencies do not have access to SMART.

On Monday, July 2, 2018 and Tuesday, July 3, 2018 the SMART Accounts Receivable module will be reopened to agency users to complete June 2018 (FY 2018) transactions. Use the instructions below for any remaining prior year deposit adjustments that need to be completed.  FY 2018 deposit adjustments that have not been agency approved by 3:00 PM on Tuesday, July 3, 2018 will be deleted by the SMART Team.

1. Follow SMART job aid “Credit Card/E-Check Deposits – Revenue Only” on how to locate credit card deposits and how to complete the deposit adjustments.
2. On the deposit adjustment Totals tab, the Accounting Date must be 6/30/2018.
3. On the deposit adjustment Payments tab, the Accounting Date on each transaction line must be 6/30/2018
4. The SMART Accounts Payable module for FY 2018 will be closed by July 1, 2018, prohibiting the use of expenditure account codes in the deposit adjustment transactions.
   • To account for credit card fees agencies should do the following:
     • One deposit adjustment to recognize all revenue in the appropriate fund for fiscal year 2018.
       • If the original deposit adjustment is net of credit card fees that were charged to the agency, then the deposit adjustment must be grossed up to recognize all revenue.  (Example: $95.00 on original deposit + $5.00 credit card fee not recorded on deposit = $100.00 recognized as revenue on deposit adjustment.)
     • A second deposit adjustment processed in FY 2019 Accounts Receivable module to recognize any credit card fee expenses.
   • For limited agencies who reduce their expenditures for charges that are passed on to other agencies:
     • Instead of reducing expenditures, the agency must recognize the revenue by using a revenue account code such as 462110 – Recovery of Current Fiscal Year Expenditures.

Please be aware that deposit adjustments with an accounting date of June 30, 2018 and processed in July 2018 will impact the SMART General Ledger for FY 2019. This may cause reconciling items for agencies between the Accounts Receivable module and the General Ledger module.

Deposit adjustments with a June 30, 2018 accounting date that have not been agency approved by 3:00 PM on Tuesday, July 3, 2018, will be deleted by the SMART Team.

Interfunds

The accounting dates on both the interfund voucher and the interfund deposit must fall within the same fiscal year.

Both sides of the interfund must be successfully edited, matched and approved by 6:00 PM on Wednesday, June 27, 2018.   Budget checking for interfunds occurs during nightly batch.

ALL remaining FY 2018 interfund deposits and interfund vouchers that have not been successfully edited, matched and approved by 6:00 PM on Wednesday, June 27, 2018 will be deleted by the SMART Team.

Agencies with interfunds remaining due to budget check exceptions will be contacted by the SMART Team on Thursday, June 28, 2018 in an effort to resolve the budget check exceptions. Any interfunds remaining due to an inability to resolve budget check exceptions by 6:00 PM on Thursday, June 28, 2018 will be deleted.

Interfunds for FY 2019 shall not be entered until FY 2019 is open to agencies.

GL Journals

To affect fiscal year 2018, all GL Journals must be successfully edited, budget checked, agency approved, and submitted into workflow for central approval by 6:00 PM on Wednesday, June 27, 2018.

Interfacing agencies must have their final INF06 (Inbound GL Journal) for FY 2018 business submitted by 5:00 PM on Tuesday, June 26, 2017.

GL Spreadsheet Journals can be uploaded manually until 3:00 PM on Wednesday, June 27, 2018.  The journals must be edited, budget checked, approved and submitted for central approval by 6:00 PM on Wednesday, June 27, 2018.

Any online, spreadsheet, or interface FY 2018 GL Journals with an accounting date of 6/30/2018 or before, that do not have agency approvals by 6:00 PM on Wednesday, June 27, 2018, will be considered an abandoned transaction and will be deleted by the SMART Team.

Commitment Control

FY 2019 Budget Journals for agencies who use “Track with Budget” must be entered prior to any FY 2019 pre-encumbrance (if applicable), encumbrance, expenditure, or revenue transactions are entered in SMART.  Otherwise the transactions will fail budget check.

System Availability

Normal hours of availability are shown below.

SMART

Monday through Saturday, 7:00 AM to 6:00 PM.  The cutoff for receiving SMART interface files is 5:00 PM Monday through Friday.

Sunday, 1:00 PM through Monday, 6:00 PM.  Not all Sundays are open.  Please refer to the SMART Calendar: Calendar

SMART availability during fiscal year end processing.

Monday, June 18, 2018 through Saturday, June 23, 2018, 7:00 AM to 6:00 PM.  The cutoff for receiving SMART interface files is 5:00 PM Monday through Friday.

Sunday, June 24, 2018 is a maintenance day. The maintenance window begins Saturday evening at 6:00 PM and ends Sunday evening by 6:00 PM. SMART will open at 1:00 PM if maintenance is complete, or immediately following the completion of maintenance if after 1:00 PM.

Sunday, June 24, 2018, 1:00 PM through Monday, June 25, 2018, 6:00 PM.

Tuesday, June 26, 2018, and Wednesday, June 27, 2018, 7:00 AM to 6:00 PM.

SMART Closed Thursday, June 28, 2018 through Saturday, June 30, 2018.

Sunday, July 1, 2018, 1:00 PM through Monday, July 2, 2018, 6:00 PM.

Tuesday, July 3, 2018, 7:00 AM to 6:00 PM. 

Wednesday, July 4, 2018, 7:00 AM to 6:00 PM.  SMART daytime and nighttime batch processes will not run.

Thursday, July 5, 2018, 7:00 AM to 6:00 PM (normal availability and processing).

SMART Closed Friday, July 6, 2018, 7:00 AM to 12:00 PM – an announcement will be sent when SMART is opened to agency users.

Saturday, July 7, 2018, 7:00 AM – SMART resumes normal availability and processing.

Kansas Service Desk

Monday through Friday, 8:00 AM to 5:00 PM.

Saturdays, Sundays, and holidays, not available.

SHARP

Monday through Friday, 7:00 AM to 6:00 PM

Saturday, 1:00 PM to 9:00 PM

Sunday, 1:00 PM to 6:00 PM

Accounts Receivable (Deposit) Processing when SMART is closed to users the morning of Friday, July 6, 2018:

SMART will be closed to agency users the morning of Friday, July 6, 2018 to run the fiscal year close processes.  The following process should be followed to make FY 2019 deposits:

The State Treasurer’s Office will have limited access to SMART to allow them to process deposits during the morning hours.

If you are expecting funds to be wired to the State Treasurer on Friday, July 6, 2018, please enter and approve the appropriate deposit in SMART by 6:00 PM on Thursday, July 5, 2018. When the wire transfer arrives at the Treasurer’s Office, they will match the funds to the appropriate deposit transaction, and complete the State Treasurer Approval on the deposit.  This deposit will then be recorded in SMART as usual during the next nightly batch.  

Agencies may continue to upload and submit FY 2019 deposits via INF43 (Excel Deposit Upload) and INF44 (Inbound Deposit) on Friday, July 6, 2018.  SMART AR Deposit jobs will run at 10:00 AM, Noon and 2:00 PM.  If you process an INF43 or INF44, please e-mail the State Treasurer’s Cash Management Group at cash@treasurer.ks.gov to notify them of the Business Unit, Deposit ID (if known), and deposit total so they can approve the transaction in SMART.

For agencies that do not use the INF43 or INF44 processes and need to make a deposit during the morning of Friday, July 6, 2018 while SMART is unavailable -- the State Treasurer’s Office has created the Temporary Deposit Form to allow you to continue to deposit funds.

On Friday, July 6, 2018 (when SMART is again open for business), agencies will need to enter and approve the appropriate “temporary” deposit.

Credit Card Receipts will load into SMART as scheduled at 8:00 AM on Friday, July 6, 2018. Agencies will be able to enter the appropriate Deposit Adjustments later in the day on Friday, July 6, 2018.

Any questions about this process should be addressed to Brenda Linder, (785) 296-4144, or e-mail brenda@treasurer.ks.gov.

REFERENCES

FY 2018 Closing and FY 2019 Opening Schedule Day by Day Summary

SMART Training Resources -- Home, click the Training link

Month-End Checklists:  Month End Checklists
            Accounts Receivable Month End Checklist
            Accounts Payable Month End Checklist
            Asset Management Month End Checklist
            GL Month End Checklist
            PO Month End Checklist
            Travel & Expense Month End Checklist

Forms:

Temporary Deposit Form

GL Encumbrance Request Form

HELPFUL QUERIES: 

Navigation: Reporting Tools>Query>Query Viewer

Travel and Expense

KS_EX_UNPROCESSED_TRAVEL_AUTHS – Users will enter a date range based upon the accounting date of the Travel Authorization.  This will typically be the date the Travel Authorization was created.  The query returns all Travel Authorizations that have not fully processed in the system sorted by TA Status, Travel Date From and Travel Auth ID number.  Note** Travel Authorizations with a valid budget status have encumbered budget.

KS_EX_UNPROCESSED_EX_REPORTS – Users will enter a date range based upon when the Expense Report was created.  The query returns all unprocessed Expense Reports sorted by Status and Report ID. 

Accounts Payable

KS_AP_UNPROCESSED_VOUCHERS – Users will enter a date range based upon the accounting date of the vouchers.  This will typically be the date the voucher was created.  The query returns all vouchers that have not fully processed in the system sorted by Voucher ID.

KS_AP_VOUCHERS_NOT_POSTED – Users will enter Business Unit and a date range based on the accounting date of the vouchers. This will typically be the date the voucher was created. The query returns all vouchers that have a valid budget status and therefore have impacted Commitment Control but have not posted to the GL. Provides match, budget check and approval statuses.

KS_AP_UNPROCESSED_INTRFND_VCHR – Users will enter a date range based on the accounting date of the vouchers. The query returns all interfund type vouchers that have not fully processed. This will include interfund type vouchers that are not attached to an interfund.

KS_APAR_PENDING_INTRFNDS -This query will show pending Interfunds, both Initiated and Received by your agency, that are tied to a Voucher or Deposit.

KS_INTRFNDS_APPR_NOT_POSTED - User will enter Business Unit. The query will return results for either side (deposit or voucher) to which your agency is a party, and at least one of the following is true: 1) Voucher is not posted 2) Payment is not posted 3) Deposit is not posted. This query should give you an indication of transaction exceptions that may need further review. Depending on when you run the query, you may have interfunds that were approved in the current day’s activity that have not yet posted in the nightly batch. If the deposit or voucher approval date reflects the current or previous day’s date, you can likely ignore it.  We recommend running it first thing in the morning before new approvals are registered to avoid extraneous results. We recommend running this query at least monthly and more frequently as fiscal year end close approaches.

Asset Management

KS_AM_VCHRS_WITH_54XXXX_ACCT - This query displays a list of all vouchers within a specified date range with 54XXXX account codes. You should use the Asset Inventory List report in conjunction with this query to make sure all capital assets have been added to SMART.

Project Costing

KS_PC_BILLING_WORKSHEET – This query shows a list of all unprocessed billing worksheets that can be either billed or written off to help get Federal Funds into a positive cash position by year-end.

General Ledger

KS_GL_JOURNALS_BUDGET_ERROR – This query displays any GL Journals in Budget Check error.

KS_GL_JOURNALS_ERRORS – This query will show GL Journals in Edit error and cannot be posted.

Purchasing

KS_PO_NEGATIVE_PO_LINES - This query was designed to identify those POs that have a negative PO line.  Negative PO lines create unauthorized budget.  Agencies must cancel or close any negative PO lines currently in SMART by 6:00 PM on Wednesday, June 27, 2018.

Job Aid: KS_PO_NEGATIVE_PO_LINES

KS_PO_PCRD_VCHR_DELETED - This query was designed to identify those P-Card vouchers/lines that have been deleted.  Agencies should not delete P-Card vouchers/lines.  The deletion of a P-Card voucher/line does not update the P-Card transaction; consequently, the P-Card transaction retains a voucher ID and voucher line number that no longer exists in SMART.  This gives the appearance that the P-Card transaction has not been paid.

Job Aid:  KS_PO_PCRD_VCHR_DELETED

KS_PO_REQS_OPEN_PNDNG – This query was designed to identify those requisition lines that need to have some action taken by 6:00 PM on Wednesday, June 27, 2018. 

Job Aid:   KS_PO_REQS_OPEN_PNDNG


Printable version of 18-A-008

Summary: Establishing Policy for Fiscal Year-End Negative Cash Balances for Federal Funds

This informational circular is being issued to announce Policy Manual 8,004 Federal Funds – Fiscal Year-End Negative Cash Balances.

Historically, the Department of Administration required all funds to have a cash balance of zero or positive at fiscal year-end. Upon written request to the Office of the Chief Financial Officer certain federal funds have been permitted to carry a negative cash balance during the fiscal year, on the condition that the fund be restored to a zero or positive cash balance at fiscal year-end.

Effective immediately, when a negative cash balance is anticipated in a federal fund at fiscal year-end and reimbursement from the federal agency has not been received and posted, agencies are required to record an accounts receivable in SMART for the amounts expended but not yet reimbursed by the federal agency. 

Agencies are no longer required to maintain a zero or positive cash balance at fiscal year-end in federal funds.  Recording an accounts receivable will eliminate the need for agencies to process journal adjustments that temporarily record federal fund expenditures elsewhere.

Agencies currently using SMART Project Costing in conjunction with Customer Contracts for reimbursement processing may continue to use the modules to track grant expenditures. Reimbursable transactions from the billing worksheet must be approved and have generated pending items in the Accounts Receivable module to meet the requirements of this circular.

Note:  A review of the statewide financial reporting impact of PM 8,004 will be conducted prior to May 2019 and periodically thereafter.

For Policy Questions: Email Statewide Agency Audit Services Team at ARpreaudit@ks.gov

For SMART Processing Questions: Submit a ManageEngine Service Desk ticket.

DH:jc

RESOURCES:
Policy Manual 8,004 Federal Funds – Fiscal Year-End Negative Cash Balances

Related SMART Accounts Receivable job aids are available online via SMART Web.

Printable Version of 18-A-009

Summary:  Confirming existing policy - board member and state employee mileage reimbursement for use of privately owned vehicles.  

This Informational Circular addresses several recent agency inquiries regarding the reimbursement to board members for the cost of using privately-owned vehicles for official state business.

Under statutory provisions, board members are paid mileage under the same reimbursement policies established for state employees. As an exception, board members who are also active legislators, are reimbursed under the provisions of KSA 75-3212(d).

Per KAR 1-18-1a(d) if a mode of transportation is available and is less costly than transportation by privately-owned conveyance, mileage payments for use of a privately-owned conveyance shall be limited to the cost of that other mode of transportation.

Form DA-127 Private Mileage / Rental Comparison should be used to determine the least costly mode of transportation for in-state travel. The lesser amount of the cost comparison will be the maximum allowable reimbursement amount.

Board members and state employees are not required to use a state-owned or state-leased vehicle to conduct official business. The use of a privately-owned vehicle does not disallow reimbursement.  However, if a privately-owned vehicle is used, reimbursement is limited to the sum of fuel costs, and the cost of a compact car under the current statewide mandatory Vehicle Rental Service contract. 

Additionally, an employee that has a disability requiring the use of a privately-owned vehicle that is specially equipped, is exempt from the limitation of the cost of a compact car under the Vehicle Rental Service contract.

For additional information regarding travel reimbursements and state agency vehicle usage please reference the Travel Information for State Employees website.

Printable Version of 18-A-010

Summary: FY 2017 Private Vehicle Mileage Rates

As authorized by K.S.A. 75-3203a, the Secretary of Administration has fixed the private vehicle maximum mileage reimbursement rates for FY 2017 at:

54¢ per mile for privately owned automobile

51¢ per mile for privately owned motorcycle

19¢ per mile for moving mileage rate

$1.17 per mile for privately owned airplane (based on air miles rather than highway miles)

These rates were effective January 1, 2016 and remain unchanged.

DH:jm

Printable version of 17-A-001

Summary: FY 2017 Meals and Incidental Expense (M&IE) and Lodging Rates

As authorized by K.S.A. 75-3207a, the Secretary of Administration has fixed subsistence rates for FY 2017.  The Employee Travel Expense Reimbursement Handbook is updated to include information regarding subsistence for travel which occurs during FY 2017.

For State of Kansas travel, federal subsistence rates will be followed.  Subsistence rates are based on travel location and travel dates with seasonal rates listed for many locations.  If a specific travel location isn’t listed (or within the location definition), the standard rate, or “other” location rate is used.  The following standard rates apply to many locations across the contiguous United States (CONUS).

For CONUS locations, the following standard subsistence rates apply for travel which occurs July 1, 2016 and later:

M&IE - $51

Lodging - $89

These rates were effective January 1, 2016 and remain unchanged.  The M&IE and Lodging rates are updated semi-annually each October 1 and April 1 to follow CONUS rates in effect on those dates.

SMART contains the official subsistence rates for CONUS and OCONUS travel locations and will be updated semi-annually each October 1 and April 1 for any interim rate changes which have occurred.  International subsistence rates are not loaded into SMART.  For international travel locations, employees will obtain M&IE rates directly from the U.S. Department of State (DOS) website listed below.  For international travel, payment for actual lodging expense is allowed.

Source of Subsistence Rates -

Contiguous United States (CONUS) -

The U.S. General Services Administration (GSA) maintains the M&IE rates and lodging rates for travel locations in the contiguous United States -
U.S. General Services Administration website: http://www.gsa.gov/portal/content/104877
Outside Contiguous United States (OCONUS):

(Alaska, Hawaii, and U.S. Territories/Possessions) -

The U.S. Department of Defense (DOD) maintains the M&IE rates and lodging rates for travel locations within Alaska, Hawaii and U.S. Territories/Possessions -
U.S. Department of Defense website: http://www.defensetravel.dod.mil/site/perdiemCalc.cfm

International Locations -

The U.S. Department of State (DOS) is the source for M&IE rates only for international travel locations-
U.S. Department of State website: https://aoprals.state.gov/web920/per_diem.asp
For international travel, payment for actual lodging expense is allowed.
Note for using federal websites:

For CONUS and OCONUS travel, if SMART is not accessible, employees may access subsistence rates through the federal websites. However interim federal website updates may occur subsequent to the semi-annual SMART updates each October 1 and April 1. CONUS rates are published on an annual basis but the annual file is updated periodically throughout the year with no interim files published. OCONUS and international rates are updated and published on a monthly basis. Be aware that any interim updates for CONUS or OCONUS locations are not valid until reflected in SMART. For international travel, only the October 1 and April 1 subsistence files should be used to locate the M&IE rates.

If employees utilize the federal websites to find M&IE and lodging rates, those rates should be used as follows:

Rates published October 1 - for travel occurring between October 1 and March 31 of each year.
Rates published April 1 - for travel occurring between April 1 and September 30 of each year.

Lodging Expense Limitations:
K.S.A. 75-3207a(f) provides that the daily lodging expense limitations established may be exceeded, upon approval by the agency head or designee, by the lesser of either: (1) an additional 50% of the applicable lodging expense limitation, or (2) the actual lodging expense incurred.

These lodging limits continue to be applied to the lodging rate before taxes.  Thus, the amount reimbursed or paid for lodging expenses may exceed the established lodging limitation by as much as the amount of associated taxes.

Conference Lodging qualified under K.A.R. 1-16-18a(c):
Agencies may authorize payment or reimbursement for actual lodging expenses when an employee is required or authorized to attend a conference, and the lodging rate exceeds the applicable lodging expense limitation (including the additional 50%).  The agency head must be provided with conference materials and rates.  These should be maintained with travel documentation.

Reduced Meal Allowance:
If the cost of meals is included within the cost of registration fees or other fees and charges paid by the agency or provided at no cost to the employee, the daily M&IE rate for the travel location should be reduced based on the percentages listed below.  For partial days, the quarter amount is calculated first and then the reduction percentage is applied.  The M&IE reduction percentages are as follows:

Breakfast - 15%

Lunch - 35%

Dinner - 50%

 
Same Day Meal Allowance:
Reimbursement for a same day meal, in accordance with K.A.R. 1-16-18(c)(2), is calculated as a percentage of the daily M&IE rate for the travel location, based on the approved meal, as follows:

Breakfast - 15%

Lunch - 35%

Dinner - 50%

Queries in SMART to Obtain M&IE Rates and Lodging Rates:
A query “KS_EX_CONUS_RATES” is available in SMART to obtain all CONUS and OCONUS locations with the M&IE daily rates, meal reductions and lodging rates.  SMART will be updated semi-annually with the October and April 1 CONUS and OCONUS subsistence rates.  Historical locations and rates from each semi-annual update will be maintained in SMART.

DH:jm

Printable Version of 17-A-002

Summary: Updated FY 2017 Meals and Incidental Expense (M&IE) and Lodging Rates for travel occurring on and after October 1, 2016

For State of Kansas travel, federal subsistence rates are being followed.  The M&IE and Lodging rates are updated semi-annually each October 1 and April 1 to follow CONUS rates in effect on those dates.  The U.S. General Services Administration (GSA) has announced a change in the CONUS standard rate for lodging effective October 1, 2016.  The GSA standard lodging rate has been increased to $91.  The standard M&IE rate of $51 remains unchanged.

As authorized by K.S.A. 75-3207a, the Secretary of Administration has fixed subsistence rates for travel occurring on and after October 1, 2016.  Subsistence rates are based on travel location and travel dates with seasonal rates listed for many locations.  If a specific travel location isn’t listed (or within the location definition), the standard rate, or “other” location rate is used.  The following standard rates apply to many locations across the contiguous United States (CONUS).

For CONUS locations, the following standard subsistence rates apply for travel occurring on and after October 1, 2016:

M&IE - $51

Lodging - $91

The Employee Travel Expense Reimbursement Handbook is updated to include this information regarding subsistence for travel occurring on and after October 1, 2016.

SMART contains the official subsistence rates for CONUS and OCONUS travel locations and will be updated semi-annually each October 1 and April 1 for any interim rate changes which have occurred.  International subsistence rates are not loaded into SMART.  For international travel locations, employees will obtain M&IE rates directly from the U.S. Department of State (DOS) website listed below.  For international travel, payment for actual lodging expense is allowed.

Source of Subsistence Rates -

Contiguous United States (CONUS) -

The U.S. General Services Administration (GSA) maintains the M&IE rates and lodging rates for travel locations in the contiguous United States -
U.S. General Services Administration website: http://www.gsa.gov/portal/content/104877
Outside Contiguous United States (OCONUS):

(Alaska, Hawaii, and U.S. Territories/Possessions) -

The U.S. Department of Defense (DOD) maintains the M&IE rates and lodging rates for travel locations within Alaska, Hawaii and U.S. Territories/Possessions -
U.S. Department of Defense website: http://www.defensetravel.dod.mil/site/perdiemCalc.cfm

International Locations -

The U.S. Department of State (DOS) is the source for M&IE rates only for international travel locations-
U.S. Department of State website: https://aoprals.state.gov/web920/per_diem.asp
For international travel, payment for actual lodging expense is allowed.
Note for using federal websites:

For CONUS and OCONUS travel, if SMART is not accessible, employees may access subsistence rates through the federal websites. However interim federal website updates may occur subsequent to the semi-annual SMART updates each October 1 and April 1. CONUS rates are published on an annual basis but the annual file is updated periodically throughout the year with no interim files published. OCONUS and international rates are updated and published on a monthly basis. Be aware that any interim updates for CONUS or OCONUS locations are not valid until reflected in SMART. For international travel, only the October 1 and April 1 subsistence files should be used to locate the M&IE rates.

If employees utilize the federal websites to find M&IE and lodging rates, those rates should be used as follows:

Rates published October 1 - for travel occurring between October 1 and March 31 of each year.
Rates published April 1 - for travel occurring between April 1 and September 30 of each year.

Lodging Expense Limitations:

K.S.A. 75-3207a(f) provides that the daily lodging expense limitations established may be exceeded, upon approval by the agency head or designee, by the lesser of either: (1) an additional 50% of the applicable lodging expense limitation, or (2) the actual lodging expense incurred.

These lodging limits continue to be applied to the lodging rate before taxes.  Thus, the amount reimbursed or paid for lodging expenses may exceed the established lodging limitation by as much as the amount of associated taxes.

Conference Lodging qualified under K.A.R. 1-16-18a(c):

Agencies may authorize payment or reimbursement for actual lodging expenses when an employee is required or authorized to attend a conference, and the lodging rate exceeds the applicable lodging expense limitation (including the additional 50%).  The agency head must be provided with conference materials and rates.  These should be maintained with travel documentation.

Reduced Meal Allowance:
If the cost of meals is included within the cost of registration fees or other fees and charges paid by the agency or provided at no cost to the employee, the daily M&IE rate for the travel location should be reduced based on the percentages listed below.  For partial days, the quarter amount is calculated first and then the reduction percentage is applied.  The M&IE reduction percentages are as follows:

Breakfast - 15%

Lunch - 35%

Dinner - 50%

Same Day Meal Allowance:
Reimbursement for a same day meal, in accordance with K.A.R. 1-16-18(c)(2), is calculated as a percentage of the daily M&IE rate for the travel location, based on the approved meal, as follows:

Breakfast - 15%

Lunch - 35%

Dinner - 50%

Queries in SMART to Obtain M&IE Rates and Lodging Rates:

A query “KS_EX_CONUS_RATES” is available in SMART to obtain all CONUS and OCONUS locations with the M&IE daily rates, meal reductions and lodging rates.  SMART will be updated semi-annually with the October and April 1 CONUS and OCONUS subsistence rates.  Historical locations and rates from each semi-annual update will be maintained in SMART.

DH:jm

Printable version of 17-A-003

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

Summary: Clarification on Agency Purchasing Authority

This informational circular is being issued to define the basis for determining the level of authorization necessary for agency purchases from a single supplier during the budget year.

K.S.A. 75-3739(e) allows the Director of Purchases, with the approval of the Secretary of Administration, to delegate authority to any state agency to make purchases of less than $25,000.  Under this statute, the Director of Purchases has generally authorized for state agencies to spend up to $5,000 with one supplier during each fiscal year.  The fiscal year has been defined to be equivalent to the budget year.  Under this authorization, the agency has the ability to spend up to $5,000 with one supplier using their delegated purchasing authority during a budget year, in addition to any spend which occurs using a prior authorization and/or state contract.

Example:  An agency has a contract with a supplier for shoes.  The agency has already purchased $10,000 of contracted items.  With the same supplier, the agency makes a purchase of socks for $500 for which there is no contract.  The agency can use their delegated purchasing authority for the $500 purchase of socks without approval from the Office of Procurement and Contracts.  If the agency discovers later in the same budget year that they need to buy an additional $4,500 of socks, then authorization from the OPC must be attained prior to the commitment to purchase the additional socks.

Please see the chart below.
 

Amount of Allowable Agency Spend with a Supplier in a Single Budget Year
 

For individual purchases with one supplier which are under $5,000, but total spend for the supplier is $5,000 or greater for the budget year, approval from the OPC is required unless the items for that supplier are already on state contract or a prior authorization has already been obtained.  See the attached document which provides instructions on how to obtain OPC approval.

Attachment
Printable Version of 17-A-005

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Summary: Procedures for Filing Calendar Year 2016 Form 1099 Information Returns for non-SMART payments and payments in SMART without the required 1099 information

• Requirements to report payments where the 1099 data was not recorded in SMART:

  1. The supplier/client must be in the Statewide Management, Accounting and Reporting Tool (SMART) supplier table.
  2. All reportable payments must be submitted via Service Desk using the EXCEL template referenced below
  3. The Office of the Chief Financial Officer processes the payments submitted via Service Desk using SMART. SMART generates the paper 1099s which are mailed to the suppliers. The 1099 information is electronically submitted to the IRS. 

There is NO option for the agency to print the forms and have the Office of the Chief Financial Officer report to the IRS.

Policy and procedures:

While most 1099 transactions are recorded in SMART, and require no additional action by state agencies; there are some payments that occur outside of SMART or the information to be reported to the IRS is not in SMART. These transactions result in unique reporting procedures comprised of the following:

• • Locally administered interest payments of $10 or more are to be reported on IRS Form 1099-INT. These payments typically represent interest paid from trust funds to clients of institutions with the Department for Aging and Disability Services and the Department of Corrections.
  • Other payments such as non-employee awards not paid directly to the recipient from SMART.

To report non-SMART payments for form 1099 purposes the agency must confirm the supplier is in the SMART supplier table with the appropriate 1099 type and class, and ensure that withholding is turned on. If the supplier is not in the supplier table, the agency must add the supplier to SMART including the appropriate 1099 type and class, and turn withholding on. 

Complete the EXCEL template “PS_WTHD_TRAN_TBL_update_template” (link to the Excel document is included at the bottom of this circular) for all non-SMART 1099 reportable payments. The completed template needs to be received by the Office of the Chief Financial Officer by January 11, 2017 to ensure the 1099s are distributed by the January 31, 2017 deadline.

The template has the columns listed below. Do not insert or delete columns or rows. Do not change the formatting. Beginning with line 2 (replacing the sample data), complete one line for each payment (add lines as necessary for additional withholding types/classes). The gray columns are defaults and should not be changed. If 499 lines are not sufficient, copy line 500 down. When completed, attach the EXCEL spreadsheet to a Service Desk ticket with the heading “non-SMART 1099”. Note if you have leading zeros precede them with an apostrophe ‘, i.e. supplier id ‘0000123456.

BUSINESS_UNIT: 5 characters must have leading zeros (your agency number)

WTHD_ENTITY: IRS

WTHD_TYPE: as listed in the supplier table (1099, 1099I, 1099G)

WTHD_JUR_CD: FED

WTHD_CLASS: as listed in the supplier table, with leading zeros.

WTHD_RULE: RULE0

SUPPLIER_SETID: SOKID

SUPPLIER_ID: 10 digits with leading zeros, as assigned by SMART.

SUPPLIER_LOC: the supplier location with the appropriate 1099 type and class, usually 001, with leading zeros

ADDRESS_SEQ_NUM: 1

PYMNT_ID: Blank

SUPPLIER FEIN OR SSN: SSN or FEIN, 9 digits including leading zeros

PYMNT_DT: date of payment, mm/dd/yyyy format

WTHD_DECL_DATE: Same as date of payment

WTHD_BASIS_AMT: The taxable amount for this 1099 type and class for 2016.

DESCR100: 100 characters of your choice – no punctuation, no special characters 

Additional Resources:

Training guide for setting up suppliers for 1099 reporting and an account code guide:
1099 and Withholding Information Training Guide

IRS guide to each type of 1099, including instructions for each:
IRS Online Instructions for Forms

SMART withholding codes:
SMART Withholding Codes Job Aid

Excel withholding template:

IC 17-a-00X- PS_WTHD_TRAN_TBL update template

Printable version of 17-A-006

Summary: New Account Codes for KPERS Working After Retirement 3^rd Party/Independent Contractor Expenditure Tracking

As a result of the implementation of KPERS Working After Retirement (WAR) 3^rd Party/Independent Contractor member contributions, a new account code has been added to SMART to use for employer contribution expenditure tracking. The following account code is eligible to be used starting immediately.

Account Code                    Description                                                   Short Description           

518101                                ER KPERS WAR 3^rd PTY/CNSLNT               SHARP REQ    

This account code is to be used to track non-payroll employer contributions for KPERS WAR 3^rd Party/Independent Contractor member type ACTR that are not tracked in SHARP. Agencies are reminded that they will need to work with KPERS to establish reporting procedures and billing frequencies for these members. As these member contributions are not tracked in SHARP agencies are required to be billed via a SMART interfund for amounts due to KPERS. Agencies should use SMART account code 518101(ER KPERS WAR 3^rd PTY/CNSLNT) to record the expense side of the interfund.

Any interfunds that have been processed using any SMART account code other than 518101 will need to be corrected by creating a journal voucher in the Accounts Payable module, not Interfund module See the How to Enter a Journal Voucher job aid for instruction on entering the AP journal voucher. The payment method on the Payments tab of the journal voucher may need to be changed to ‘CHK’ in order to save the journal voucher. Submit a ManageEngine Service Desk ticket if you need additional assistance.

Printable Version of 17-A-007

DH:NTR:abe

Summary: Updated FY 2017 Private Vehicle Mileage Rates

The Internal Revenue Service (IRS) has announced changes in standard mileage rates effective January 1, 2017.  The IRS rate for privately owned automobiles decreases to 53.5 cents per mile while the moving mileage rate decreases to 17 cents per mile.

K.S.A. 75-3203a provides that the mileage reimbursement rates shall not exceed the lowest of the following:

1. the rate allowed by the IRS;
2. the rate used in preparing the governor’s budget report under K.S.A. 75-3721, and amendments thereto; or
3. any revision of the rate as specifically directed in appropriation acts of the legislature.

Thus, per the requirements of K.S.A. 75-3203a, the Department of Administration has reduced the rates for mileage reimbursement for the remainder of FY 2017, effective January 1, 2017:

• 53.5¢ per mile for privately owned automobile
• 50.5¢ per mile for privately owned motorcycle
• $1.15 per mile for privately owned airplane (based on air miles rather than highway miles)
• 17¢ per mile for moving mileage rate

DH:jm

Printable Version of 17-A-008

Summary: Revised Clarification on Agency Purchasing Authority

This informational circular is being issued to define the basis for determining the level of authorization necessary for agency purchases from a single supplier during the budget year.

K.S.A. 75-3739(e) allows the Director of Purchases, with the approval of the Secretary of Administration, to delegate authority to any state agency to make purchases of less than $25,000.  Under this statute, the Director of Purchases has generally authorized for state agencies to spend up to $5,000 with one supplier during each fiscal year.  The fiscal year has been defined to be equivalent to the budget year.  Under this authorization, the agency has the ability to spend up to $5,000 with one supplier using their delegated purchasing authority during a budget year.   Please note that any spend which occurs using a prior authorization will also accumulate toward the $5,000 delegated purchasing authority limit.

Example A:  An agency has a contract with Payless (supplier) for shoes.  The agency has already purchased $10,000 of contracted items.  With the same supplier, the agency makes a purchase of other items for $1,000 for which there is no contract.  The agency can use their delegated purchasing authority for the $1,000 purchase of other items without approval from the Office of Procurement and Contracts (OPC).  If the agency discovers later in the same budget year that they need to buy an additional $4,500 of other non-contract items, then authorization from the OPC must be obtained prior to the commitment to purchase the additional items.  The non-contract spend (agency delegated authority) now exceeds the agency delegated purchasing authority amount.  Any further plan to purchase non-contract items from this supplier would require additional authorization from OPC.

Example B:  An agency has determined they need to purchase $10,000 of items for which there is no contract from a particular supplier.  The agency must seek Prior Authorization from OPC before a commitment is made to purchase the items.   Before submitting for the Prior Authorization, the agency should consider additional multiple purchases to this supplier during the remainder of the budget year and submit the Prior Authorization for that projected amount.  Since the Prior Authorization was equal to or greater than $5,000, the agency has no additional agency delegated purchasing authority remaining with that supplier for the budget year.  

Please see the chart below.

Amount of Allowable Agency Spend with a Supplier in a Single Budget Year

For individual purchases with one supplier which are under $5,000, but total spend for the supplier is $5,000 or greater for the budget year, approval from OPC is required unless the items purchased from that supplier are already on an OPC-approved contract.  

See the attached document which provides instructions on how to obtain OPC approval.

Attachment

Printable Version of 17-A-009

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Summary: Travel and Expense payments must be paid using direct deposit payment method starting May 1, 2017.

As required by the Secretary of Administration’s 100% electronic payment policy issued May 21, 2010, beginning May 1, 2017, the Office of the Chief Financial Officer (OCFO) will require direct deposit for employee travel advances, travel reimbursements, and miscellaneous reimbursements generated within the SMART Travel and Expense module.

Details for Implementation

All employees must have direct deposit (ACH-Automated Clearing House) as the payment method for payments generated from the SMART Travel and Expense module.  Any travel and expense payments for employees set-up with System Check as the payment method will remain unpaid until the agency establishes the Automated Clearing House information within the employee’s profile in the Travel and Expense module.  The following steps should be taken to replace a System Check payment method with the Automated Clearing House payment method for travel and expense payments:

• For employees who will be receiving travel and expense payments and do not have banking information established in their SMART employee profile, agencies should ask for the employee to complete Form DA-184, Authorization for Direct Deposit of Employee Pay and/or Employee Travel and Expense.  The employee must select one bank account to be used for their travel and expense payments.
  • The form can be downloaded from the Department of Administration web site: Document Center 
  • Employees have the option of using a State of Kansas Paycard as a means of receiving their travel and expense payments.  Employees can be referred to your agency’s human resource and payroll staff to obtain a paycard.  The employee can then complete the DA-184 including the paycard routing number and account number for the bank information.
• The agency must update the employee’s SMART Travel and Expense profile.
  • For information on how to enter direct deposit information into employee profiles, please see the job aid available on SMARTWeb: http://www.smartweb.ks.gov/ .   Go to Training, Travel and Expenses, T & E Job Aids, Adding a Bank Account to an Employee Travel Profile.

A new SMART query has been created to identify active employees with ‘System Check’ as the payment method on the employee profile where the employee has been paid by check within a user-defined date range.  The query is named KS_EX_EE_CHECK_PAYMENT_LIST. 

Printable Version 17-A-010

Summary: Schedule of accounting events relevant to the closing of Fiscal Year 2017 and the opening of Fiscal Year 2018 

K.S.A. 75-3002 establishes the state fiscal year as commencing on the first day of July in each year and closing on the thirtieth day of June of the succeeding year.  In order for activity for fiscal year 2017 to be completed by June 30^th, the cutoff date for most agency processing will be Tuesday, June 27, 2017 at 6:00 PM.  

SMART will be closed to agencies from Wednesday, June 28, 2017 through Friday, June 30, 2017 so the SMART Team can review and finalize all outstanding FY 2017 business.  SMART will also be closed the morning of Friday, July 7, 2017 to run the fiscal year 2017 closing processes and verify the fiscal year end journals were completed correctly.

The workload for both your agency and the SMART Team increases greatly during the fiscal year end closing period. In order to facilitate successful year end processing, reminders and guidelines for agencies are included below.

It is necessary for agency accounting staff to be available during the day Wednesday, June 28, 2017 through Friday, June 30, 2017 in case assistance is needed as the SMART Team is preparing the system for closing.

General Items

All FY 2017 transactions must be successfully edited, budget checked, matched, agency approved, dispatched, and submitted into workflow for central approval, as appropriate, by 6:00 PM on Tuesday, June 27, 2017. After this time, SMART will be closed to all agency users, and the SMART clean-up process will begin on Wednesday, June 28, 2017.

State agencies should be reviewing financial data and processing any necessary corrections before the end of the fiscal year. Please consult the month end checklists available on the SMART website, http://smartweb.ks.gov/home/month-end-checklists/, to assist with this review.  There are additional queries listed in the REFERENCES section at the end of this document that may also be helpful. The SMART Team is actively working to assist agencies in preparation for fiscal year end. Service Desk tickets will be sent to agencies as outstanding or incomplete transactions are found. The transactions identified by the SMART Team will likely be just a subset of the outstanding, incomplete or incorrect transactions agencies will identify between now and the end of the fiscal year.  

General Ledger Encumbrances (non-supplier specific encumbrances) will be used to encumber fiscal year 2017 budget in limited circumstances. The GL-F016 GL Encumbrance Request Form is located on the Department of Administration website at the following link:  Document Center

Document Center

Complete the GL-F016 GL Encumbrance Request Form and attach it (as an Excel file, not PDF) to a Service Desk Ticket by 5:00 PM on Tuesday, June 13, 2017 for an amount greater than $5,000 using State General Fund.   The agency deadline is 5:00 PM on Thursday, June 22, 2017 for an amount less than $5,000 using State General Fund and any amount using all other funds. Provide a description of the obligation and the reason the supplier is not known or the Purchase Requisition/Order process is not practical for encumbering budget. Requests will be routed to the Division of the Budget (DoB) for approval.

GL Encumbrance Journals may be keyed by the Office of the Chief Financial Officer staff into SMART prior to receiving DoB approval in order to give each agency the opportunity to review the document and its effects in SMART prior to close.  Agencies will be notified via Service Desk ticket of the Journal ID(s). In the event DoB denies the GL encumbrance, the affected agency will be notified via Service Desk ticket and the document will be deleted from SMART.

Budget Period 2017 expense, encumbrance, and revenue data from SMART Commitment Control Ledger groups (CC_IBARS_E, CC_IBARS_R) will be electronically submitted to the Division of the Budget by Tuesday, August 1, 2017 for loading into the IBARS system.

The dates provided in this document that relate to fiscal year closing and opening activities may be revised, as necessary, by the Office of the Chief Financial Officer.  Revisions to SMART processing dates will be sent via email to all users subscribed to the SMART Infolist listserv (subscribe at http://www.da.ks.gov/Gov/listserv.htm).  After issuance, SMART Announcements are also posted on the SMART Website at

http://smartweb.ks.gov/announcements/impt-announce

Any revisions to payroll processing dates will be issued as a SHARP message to subscribers of the SHARP infolist listserv (subscribe at http://www.da.ks.gov/Gov/listserv.htm).  

Accounts Payable

The final day agencies can enter a voucher in accounts payable for FY 2017 business will be Tuesday, June 27, 2017.  Here is additional information that will help you with accounts payable:

Please refer to PM 14,002 (Policy Manual) to help determine the appropriate processing period for each type of account code activity.

Interfacing agencies must have their final INF02 (Inbound Voucher) for FY 2017 business submitted by 5:00 PM on Monday, June 26, 2017.

For agencies that upload and submit vouchers via INF50 (Voucher Spreadsheet Upload), the final INF50 for FY 2017 business must be submitted by 1:00 PM on Tuesday, June 27, 2017.

In order for accounts payable transactions to complete for FY 2017, all vouchers must be entered, matched, budget checked and approved by 6:00 PM on Tuesday, June 27, 2017. The last hourly batch will run at 4:00 PM. Any transaction still in process after 4:00 PM must be manually budget checked, matched, and then approved to be postable or posted by 6:00 PM.

Any FY 2017 accounts payable transaction that cannot be entered into SMART by the cutoff date must be encumbered by using a purchase order.

Any voucher that has not been successfully edited, matched, budget checked and approved by 6:00 PM on Tuesday, June 27, 2017 will be deleted by the SMART Team.

Interfacing agencies may submit their INF02 files for FY 2018 business in advance with an accounting date on or after July 1, 2017. The files received and processed prior to July 1^st will be in voucher build error until FY 2018 is opened. At that time, vouchers will be built and will be eligible for pay cycle once they are matched, budget checked, and approved.

Travel Authorizations 

K.S.A. 75-3208 requires approval for all out of state travel. One method of approval is the use of a Travel Authorization. Pursuant to PM 10,300 Statewide Encumbrance Policy, Travel Authorizations are required for all out of state travel, and international travel events, and any travel or expense reimbursement that will not be entered by the fiscal year end cutoff date. Travel Authorizations must be entered and fully approved prior to the dates of travel.

All in state and out of state travel occurring in FY 2017 must be reimbursed using FY 2017 funds. If an expense report for an amount greater than $5,000 using State General Fund will not be submitted and fully approved by 6:00 PM on Tuesday, June 27, 2017, a Travel Authorization must be entered and fully approved by 6:00 PM on Friday, June 16, 2017. If an expense report for an amount less than $5,000 using State General Fund and any amount using all other funds will not be submitted and fully approved by 6:00 PM on Tuesday, June 27, 2017, a Travel Authorization must be entered and fully approved by 6:00 PM on Tuesday, June 27, 2017.

Any travel authorization that has not been fully approved by 6:00 PM on Tuesday, June 27, 2017 will be deleted by the SMART Team.

If you need to encumber money for Prepaid expenses that will not be paid by close of FY 2017, you will need to create a purchase order for the prepaid items.

Travel Authorizations for FY 2018 shall not be entered until FY 2018 is open to agencies.

Cash Advance

Cash Advances must be reconciled by 6:00 PM on Tuesday, June 27, 2017.

Expense Reports

Expense Reports chargeable to FY 2017 must be submitted and fully approved in SMART by 6:00 PM on Tuesday, June 27, 2017.  Per PM 10, 300 Statewide Encumbrance Policy, for any travel or expense reimbursement chargeable to FY 2017 that cannot be submitted and fully approved in SMART by the 6:00 PM Tuesday, June 27, 2017 deadline, the agency must process a Travel Authorization.

Any expense report that has not been fully approved by 6:00 PM on Tuesday, June 27, 2017 will be deleted by the SMART Team.

Per K.S.A. 75-3201 and as stated in PM 3,903 --Employee Travel Expense Reimbursement Handbook, employees who travel are to submit paperwork for their expenses at least once a month.  

If agency employees have expense reports for travel occurring in FY 2017, and there is no approved travel authorization or GL encumbrance in SMART, the use of the Prior Fiscal Year Claims Process as described in PM 11,966 is required. The Policy Manual can be found here.

Imprest Funds

Expenditures paid from imprest funds dated on or before June 30, 2017 must be recorded in SMART prior to the deadline for payment voucher submission. For imprest fund expenditures not expected to be recorded in SMART by the fiscal year end cutoff for payment vouchers, a purchase order (PO) or general ledger encumbrance (GL encumbrance) must be created as appropriate using the correct budget period and funding. Prior to July 15, 2017, the agency must replenish the imprest fund and record expenditures to the appropriate suppliers (using the PO or GL encumbrance). The expenditure fiscal year determination contained in PM 14,002 also applies to imprest funds. Refer to PM 10,802 for additional information regarding imprest funds. PM 10,802 can be found here.

Petty Cash Funds

Petty cash procedures are the same as those set forth in the Imprest Funds section above. The expenditure fiscal year determination contained in PM 14,002 also applies to petty cash funds. Refer to PM 10,752 for additional information regarding petty cash funds. PM 10,752 can be found here.

Purchasing

To encumber monies for FY 2017, requisitions must be sourced to purchase orders (POs) and the purchase orders must be approved, budget checked and dispatched by 6:00 PM on Friday, June 16, 2017 for an amount greater than $5,000 using State General Fund and 6:00 PM on Tuesday, June 27, 2017 for an amount less than $5,000 using State General Fund and any amount using all other funds.

If an Agency needs to process a requisition using FY 2018 funds prior to July 1, 2017 the agency should take the following steps:

• Starting Monday, May 1, 2017 enter the requisition and select the ‘Save for Later’ option.
• Starting Thursday, June 1, 2017 submit a Service Desk ticket requesting the budget date on the requisition be changed to a FY 2018 date.
• Once the budget date has been changed, select the ‘Save & submit’ button on the requisition.

The requisition will source to a PO; however, the PO will not pass budget check until the FY 2018 appropriations budget has been loaded into SMART.

Purchase orders entered after 6:00 PM on Tuesday, June 27, 2017 will NOT be back dated to a 2017 Fiscal Year budget date.

Refer to Procurement Informational Circular 17-01, Schedule for Submission of Purchases Requisitions to Close Fiscal Year 2017 and begin Fiscal Year 2018 for additional purchasing deadlines. Link to Procurement Informational Circulars:  Procurement Informational Circulars

Procurement Cards

Agencies are encouraged to reconcile P-Card transactions on a daily basis, especially during the month of June.  Final FY 2017 P-Card transactions will be available for reconciliation on Monday, June 19, 2017.  P-Card transactions must be verified and approved by 6:00 PM on Monday, June 26, 2017 to be eligible for P-Card voucher build on Tuesday, June 27, 2017. No P-Card reconciliation for FY 2017 transactions shall take place after 6:00 PM on Monday, June 26, 2017.

The P-Card voucher build process will run each day during the week beginning Monday, June 19, 2017. The final P-Card voucher build process for FY 2017 will run the morning of Tuesday, June 27, 2017.  In order for P-Card vouchers to complete for FY 2017, they must be successfully budget checked and approved by 6:00 PM on Tuesday, June 27, 2017.  The last hourly batch will run at 4:00 PM. Any P-Card voucher still in process after 4:00 PM must be manually budget checked and then approved to be postable or posted by 6:00 PM.

Any P-Card voucher that has not been successfully edited,  budget checked and approved by 6:00 PM on Tuesday, June 27, 2017 will be deleted by the SMART Team.

Asset Management

All FY 2017 asset transactions must be entered by 6:00 PM on Tuesday, June 27, 2017. This includes additions, adjustments, transfers, and retirements, as well as updating costs for CIP assets. Please see the AM Month End Checklist (linked at the end of this document) for links to applicable training materials covering these financial transactions.

Note that for new assets being entered in SMART, the Transaction Date will be the In Service Date. The KS_AM_VCHRS_WITH_54XXXX_ACCT query in the HELPFUL QUERIES section of this circular is designed to help identify vouchers processed during a specified timeframe that utilized 54xxxx (capital outlay) account codes. 

For agencies utilizing integration, all outstanding Interface ID’s for FY 2017 must be processed by 6:00 PM on Tuesday, June 27, 2017. If an asset is acquired by your agency at the end of the fiscal year and the voucher will not be posted by Thursday, June 22, 2017, please enter the asset(s) manually via Express Add. Any remaining FY 2017 Interface IDs after Tuesday, June 27, 2017 will be deleted by the SMART Team. 

Additional information can be found in the Job Aid under the Assets Month/Year End Reconciliation Section: Asset Management Preparing for Fiscal Year End at https://smartweb.ks.gov.production.premier.siteviz.com/training/asset-management

Project Costing

All billing worksheets where revenue should be recognized in FY 2017 should be approved or written-off and any related deposits completed by 6:00 PM on Tuesday, June 27, 2017.

It is recommended that all billing worksheets created prior to April 1, 2017 be reviewed and processed by Friday, May 26, 2017.  The KS_PC_BILLING_WORKSHEET query in the HELPFUL QUERIES section of this circular is designed to help identify unprocessed billing worksheets by accounting date.

Accounts Receivable

Fiscal year 2017 deposits must be entered as follows:

Deposits should be entered, agency approved, and budget checked prior to 6:00 PM on Tuesday, June 27, 2017.

Wednesday, June 28, 2017 through Friday, June 30, 2017 online entry into SMART will be closed to agencies.

Deposits received Wednesday, June 28 through Friday, June 30 shall be processed as follows:

Credit card receipts will load into SMART as scheduled at 8:00 AM each day Wednesday, June 28, 2017 through Friday, June 30, 2017. See below for instruction on Deposit Adjustments for Credit Card Clearing Funds.

For agencies that upload and submit deposits via INF43 (Excel Deposit Upload) and INF44 (Inbound Deposit) -- continue to upload and submit FY 2017 deposits via INF43 and INF44 until 11:00 AM on Friday, June 30, 2017. SMART AR Deposit jobs will run according to the regular hourly schedule.  If you process an INF43 or INF44, please e-mail the State Treasurer’s Cash Management Group at cash@treasurer.ks.gov to notify them of the Business Unit, Deposit ID (if known), and deposit total so they can approve the transaction in SMART.  STO will perform their normal approval and release at 3:00 PM Wednesday, June 28, 2017 and Thursday, June 29, 2017. STO will perform the final FY 2017 approval and release at 1:00 PM Friday, June 30, 2017.

For agencies that do not use the INF43 or INF44 processes and need to make a deposit while SMART is unavailable -- the State Treasurer’s Office has created the Temporary Deposit Form to allow you to continue to deposit funds. Using the Temporary Deposit Form is preferable to holding checks and cash at your agency, and allows you to meet the requirement to deposit funds collected each day. Please bring the completed form, along with the cash and checks (calculator tape attached) to the State Treasurer’s Office.  June 2017 Accounts Receivable will be reopened on Monday, July 3, 2017, and will remain open through Wednesday, July 5, 2017 to allow agencies to enter Deposits in transit with an accounting date of June 30, 2017 using the following instructions:

“Deposits in transit” are specifically defined as Deposits made with the State Treasurer on Wednesday, June 28, 2017, Thursday, June 29, 2017 or Friday, June 30, 2017 using the Temporary Deposit Form.

Agencies will enter deposits, for the “deposits in transit”, using an accounting date of June 30, 2017.  The accounting date of 6/30/2017 must be entered on the Totals tab in addition to being entered on the Payments tab for each deposit line. “Deposits in transit” should be recorded using a revenue account code (4XXXXX).  A “deposit in transit” cannot debit expenditures.

Please be aware that deposits with an accounting date of June 30, 2017 and processed in July 2017 will impact the General Ledger for FY 2018.

Deposits with a June 30, 2017 accounting date that have not been agency approved by 3:00 PM on Wednesday, July 5, 2017, will be deleted by the SMART Team.

Deposit Adjustments for Credit Card Clearing Funds:

Deposit adjustments are required for credit card deposits to recognize the revenue and move the monies out of the credit card clearing funds and into the appropriate funds.

All deposits received prior to June 27, 2017 that require deposit adjustments, such as those deposits into clearing funds for credit card receipts, must have deposit adjustments entered in SMART by 6:00 PM on Tuesday, June 27, 2017.

The credit card deposits will load into SMART as scheduled at 8:00 AM on Wednesday, June 28, 2017, Thursday, June 29, 2017 and Friday, June 30, 2017 when agencies do not have access to SMART.

On Monday, July 3, 2017 through Wednesday, July 5, 2017 the SMART Accounts Receivable module will be reopened to agency users to complete June 2017 (FY 2017) transactions. Use the instructions below for any remaining prior year deposit adjustments that need to be completed.  FY 2017 deposit adjustments that have not been agency approved by 3:00 PM on Wednesday, July 5, 2017 will be deleted by the SMART Team.

1. Follow SMART job aid “Credit Card/E-Check Deposits – Revenue Only” on how to locate credit card deposits and how to complete the deposit adjustments.
2. On the deposit adjustment Totals tab, the Accounting Date must be 6/30/2017.
3. On the deposit adjustment Payments tab, the Accounting Date on each transaction line must be 6/30/2017
4. The SMART Accounts Payable module for FY 2017 will be closed by July 1, 2017, preventing the use of expenditure account codes in the deposit adjustment transactions. 

Please be aware that deposit adjustments with an accounting date of June 30, 2017 and processed in July 2017 will impact the SMART General Ledger for FY 2018. This may cause reconciling items for agencies between the Accounts Receivable module and the General Ledger module.

Deposit adjustments with a June 30, 2017 accounting date that have not been agency approved by 3:00 PM on Wednesday, July 5, 2017, will be deleted by the SMART Team.

Interfunds

The accounting dates on both the interfund voucher and the interfund deposit must fall within the same fiscal year.

Both sides of the interfund must be successfully edited, matched and approved by 6:00 PM on Tuesday, June 27, 2017.   Budget checking for interfunds occurs during nightly batch.

ALL remaining FY 2017 interfund deposits and interfund vouchers that have not been successfully edited, matched and approved by 6:00 PM on Tuesday, June 27, 2017 will be deleted by the SMART Team.

Agencies with interfunds remaining due to budget check exceptions will be contacted by the SMART Team on Wednesday, June 28, 2017 in an effort to resolve the budget check exceptions. Any interfunds remaining due to an inability to resolve budget check exceptions by 6:00 PM on Wednesday, June 28, 2017 will be deleted.

Interfunds for FY 2018 shall not be entered until FY 2018 is open to agencies.

GL Journals

In order to affect fiscal year 2017, all GL Journals must be successfully edited, budget checked, agency approved, and submitted into workflow for central approval by 6:00 PM on Tuesday, June 27, 2017.

Interfacing agencies must have their final INF06 (Inbound GL Journal) for FY 2017 business submitted by 5:00 PM on Monday, June 26, 2017.

GL Spreadsheet Journals can be uploaded manually until 3:00 PM on Tuesday, June 27, 2017.  The journals must be edited, budget checked, approved and submitted for central approval by 6:00 PM on Tuesday, June 27, 2017.

Any online, spreadsheet, or interface FY 2017 GL Journals with an accounting date of 6/30/2017 or before, that do not have agency approvals by 6:00 PM on Tuesday, June 27, 2017, will be considered an abandoned transaction and will be deleted by the SMART Team.

Commitment Control

FY 2018 Budget Journals for agencies who use “Track with Budget” must be entered prior to any FY 2018 pre-encumbrance (if applicable), encumbrance, expenditure, or revenue transactions are entered into SMART.  Otherwise the transactions will fail budget check.

System Availability

Normal hours of availability are shown below.

SMART

Monday through Saturday, 7:00 AM to 6:00 PM.  The cutoff for receiving SMART interface files is 5:00 PM Monday through Friday.

Sunday, 1:00 PM through Monday, 6:00 PM.  Not all Sundays are open.  Please refer to the SMART Calendar: http://www.smartweb.ks.gov/home/calendar

SMART availability during fiscal year end processing.

Monday, June 19, 2017 through Saturday, June 24, 2017, 7:00 AM to 6:00 PM.  The cutoff for receiving SMART interface files is 5:00 PM Monday through Friday.

Sunday, June 25, 2017, 1:00 PM through Monday, June 26, 2017, 6:00 PM.

Tuesday, June 27, 2017, 7:00 AM to 6:00 PM.

SMART Closed Wednesday, June 28, 2017 through Friday, June 30, 2017.

Saturday, July 1, 2017, 7:00 AM to 6:00 PM.

Sunday, July 2, 2017, 1:00 PM through Monday, July 3, 2017, 6:00 PM. 

Tuesday, July 4, 2017, 7:00 AM to 6:00 PM.  SMART daytime and nighttime batch processes will not run.

Wednesday, July 5, 2017 through Thursday, July 6, 2017, 7:00 AM to 6:00 PM (normal availability and processing).

SMART Closed Friday, July 7, 2017, 7:00 AM to 12:00 PM – an announcement will be sent when SMART is opened to agency users.

Saturday, July 8, 2017, 7:00 AM – SMART resumes normal availability and processing.

Kansas Service Desk

Monday through Friday, 8:00 AM to 5:00 PM.
Saturdays, Sundays, and holidays, not available.

SHARP

Monday through Friday, 7:00 AM to 6:00 PM
Saturday, 1:00 PM to 9:00 PM
Sunday, 1:00 PM to 6:00 PM

Accounts Receivable (Deposit) Processing when SMART is closed to users the morning of Friday, July 7, 2017:

SMART will be closed to agency users the morning of Friday, July 7, 2017 to run the fiscal year close processes.  The following process should be followed to make FY 2018 deposits:

The State Treasurer’s Office will have limited access to SMART to allow them to process deposits during the morning hours.

If you are expecting funds to be wired to the State Treasurer on Friday, July 7, 2017, please enter and approve the appropriate deposit in SMART by 6:00 PM on Thursday, July 6, 2017. When the wire transfer arrives at the Treasurer’s Office, they will match the funds to the appropriate deposit transaction, and complete the State Treasurer Approval on the deposit.  This deposit will then be recorded in SMART as usual during the next nightly batch.  

Agencies may continue to upload and submit FY 2018 deposits via INF43 (Excel Deposit Upload) and INF44 (Inbound Deposit) on Friday, July 7, 2017.  SMART AR Deposit jobs will run at 10:00 AM, Noon and 2:00 PM.  If you process an INF43 or INF44, please e-mail the State Treasurer’s Cash Management Group at cash@treasurer.ks.gov to notify them of the Business Unit, Deposit ID (if known), and deposit total so they can approve the transaction in SMART.

For agencies that do not use the INF43 or INF44 processes and need to make a deposit during the morning of Friday, July 7, 2017 while SMART is unavailable -- the State Treasurer’s Office has created the Temporary Deposit Form to allow you to continue to deposit funds.

On Friday, July 7, 2017 (when SMART is again open for business), agencies will need to enter and approve the appropriate “temporary” Deposit.

Credit Card Receipts will load into SMART as scheduled at 8:00 AM on Friday, July 7, 2017. Agencies will be able to enter the appropriate Deposit Adjustments later in the day on Friday, July 7, 2017.

Any questions about this process should be addressed to Brenda Linder, (785) 296-4144, or e-mail brenda@treasurer.ks.gov.

REFERENCES

FY 2017 Closing and FY 2018 Opening Schedule Day by Day Summary – Attached

SMART Training Resources -- http://www.smartweb.ks.gov/home, click the Training link

Month-End Checklists:  http://smartweb.ks.gov/home/month-end-checklists/Month End Checklists
               Accounts Receivable Month End Checklist
               AP Month End Checklist (includes Travel and Expense Month End Checklist)
               Asset Management Month End Checklist
              GL Month End Checklist
              PO Month End Checklist

Forms:
Temporary Deposit Form
GL Encumbrance Request Form 

HELPFUL QUERIES: 

Navigation: Reporting Tools>Query>Query Viewer

Travel and Expense

KS_EX_UNPROCESSED_TRAVEL_AUTHS – Users will enter a date range based upon the accounting date of the Travel Authorization.  This will typically be the date the Travel Authorization was created.  The query returns all Travel Authorizations that have not fully processed in the system sorted by TA Status, Travel Date From and Travel Auth ID number.  Note** Travel Authorizations with a valid budget status have encumbered budget.

KS_EX_UNPROCESSED_EX_REPORTS – Users will enter a date range based upon when the Expense Report was created.  The query returns all unprocessed Expense Reports sorted by Status and Report ID.

Accounts Payable

KS_AP_UNPROCESSED_VOUCHERS – Users will enter a date range based upon the accounting date of the vouchers.  This will typically be the date the voucher was created.  The query returns all vouchers that have not fully processed in the system sorted by Voucher ID.

KS_AP_VOUCHERS_NOT_POSTED – Users will enter Business Unit and a date range based on the accounting date of the vouchers. This will typically be the date the voucher was created. The query returns all vouchers that have a valid budget status and therefore have impacted Commitment Control but have not posted to the GL. Provides match, budget check and approval statuses.

KS_AP_UNPROCESSED_INTRFND_VCHR – Users will enter a date range based on the accounting date of the vouchers. The query returns all interfund type vouchers that have not fully processed. This will include interfund type vouchers that are not attached to an interfund.

KS_APAR_PENDING_INTRFNDS -This query will show pending Interfunds, both Initiated and Received by your agency, that are tied to a Voucher or Deposit.

KS_INTRFNDS_APPR_NOT_POSTED - User will enter Business Unit. The query will return results for either side (deposit or voucher) to which your agency is a party, and at least one of the following is true: 1) Voucher is not posted 2) Payment is not posted 3) Deposit is not posted. This query should give you an indication of transaction exceptions that may need further review. Depending on when you run the query, you may have interfunds that were approved in the current day’s activity that have not yet posted in the nightly batch. If the deposit or voucher approval date reflects the current or previous day’s date, you can likely ignore it.  We recommend running it first thing in the morning before new approvals are registered to avoid extraneous results. We recommend running this query at least monthly and more frequently as fiscal year end close approaches.

Asset Management

KS_AM_VCHRS_WITH_54XXXX_ACCT - This query displays a list of all vouchers within a specified date range with 54XXXX account codes. You should use the Asset Inventory List report in conjunction with this query to make sure all capital assets have been added to SMART.

Project Costing

KS_PC_BILLING_WORKSHEET – This query shows a list of all unprocessed billing worksheets that can be either billed or written off to help get Federal Funds into a positive cash position by year-end.

General Ledger

KS_GL_JOURNALS_BUDGET_ERROR – This query displays any GL Journals in Budget Check error.

KS_GL_JOURNALS_ERRORS – This query will show GL Journals in Edit error and cannot be posted.

Purchasing

KS_PO_NEGATIVE_PO_LINES - This query was designed to identify those POs that have a negative PO line.  Negative PO lines create unauthorized budget.  Agencies must cancel or close any negative PO lines currently in SMART by 6:00 PM on Tuesday, June 27, 2017.

Job Aid: http://smartweb.ks.gov/docs/default-source/po---po---queries/using-the-ks_po_negative_po_lines-query.pdf?sfvrsn=2

KS_PO_PCRD_VCHR_DELETED - This query was designed to identify those P-Card vouchers/lines that have been deleted.  Agencies should not delete P-Card vouchers/lines.  The deletion of a P-Card voucher/line does not update the P-Card transaction; consequently, the P-Card transaction retains a voucher ID and voucher line number that no longer exists in SMART.  This gives the appearance that the P-Card transaction has not been paid.

Job Aid:  http://smartweb.ks.gov/docs/default-source/po---p-cards---queries/using-the-ks_po_pcrd_vchr_deleted-query.pdf?sfvrsn=4

KS_PO_REQS_OPEN_PNDNG – This query was designed to identify those requisition lines that need to have some action taken by 6:00 PM on Tuesday, June 27, 2017. 

Job Aid:   http://smartweb.ks.gov/docs/default-source/po---reqs---queries/using-the-ks_po_reqs_open_pndng-query.pdf?sfvrsn=6

Printable Version of 17-A-011

Summary: Increased fraud prevention practices regarding changes to SMART supplier information. 

Fraudulent re-direction of direct deposit (ACH-Automated Clearing House) payments is a crime that targets all businesses and entities. While the Office of the Chief Financial Officer is unaware of any successful attempts at re-routing payments, fraudulent attempts to request changes to supplier ACH accounts have been reported.  These attempts have been very sophisticated.  Unauthorized individual(s) submitted information via email that contained email addresses and company logos that appeared to be from the supplier.  In addition, these unauthorized individuals may have contacted multiple state employees to obtain different pieces of information in order to not raise suspicions.

Fraud prevention tips:

• DO NOT provide a supplier with any account or identifying information. The supplier should already have that information.
• If the person requesting the change of supplier information is unfamiliar to you, confirm the individual requesting the form does exist at the company and is authorized to make the change requested.
  • Contact the person you normally deal with at the supplier to verify the requestor’s identity.
  • Establish a relationship with a new supplier by using a known phone number for the supplier.  Do not use a phone number submitted with the request or on the email communication.  Use the contact information from the invoice.
  • Ask the supplier/individual requesting the change to confirm the current account number and/or invoice number.  

DA-130 Authorization for Electronic Deposit of Supplier Payment form:
The DA-130 form has been updated to incorporate additional verification needed to validate banking update requests.  The DA-130 is not a public document; therefore, the DA-130 is not published on the Department of Administration’s website and should not be published on agency websites accessible to the public. Agencies acquire the DA-130 form by creating a ManageEngine Service Desk ticket. To maintain the security of the form, agencies are responsible for providing DA-130 forms directly to suppliers upon request in lieu of providing access on an agency website.

It is important that processes and procedures to reduce the risk of account fraud are developed and are put into practice both when a DA-130 form is requested and when completed DA-130 forms are received.  Do not send the DA-130 form to suppliers/individuals who cannot confirm their identity.

DA-130 form completion/submission:

• The DA-130 form must be filled out by the supplier or an authorized representative and cannot be completed by the agency.
  • The DA-130 (Rev. 05-2017) form requires the supplier provide a recent payment amount and date. DO NOT give them this information. If they do not know, direct the supplier to the Vendor Payment Self-Service website https://admin.ks.gov/offices/chief-financial-officer/central-responsibilities/vendor-payment-self-service
  • An official bank letter, voided check, or deposit slip must accompany the completed DA-130 form.  The bank document must contain the bank name, routing number and account number as well as the supplier’s name.  A letter from the supplier with the bank information is not acceptable.
    • The bank document must be submitted with the DA-130 form as an additional attachment when creating the ManageEngine Service Desk ticket.

• When a DA-130 form is received by your agency, review for completion.  Incomplete forms will not be accepted.
• Verify that the request is from the supplier and complete the agency certification on the DA-130 form.
• The updated job aid for the DA-130 form is located at: http://smartweb.ks.gov/training/accounts-payable#Suppliers

   

Adding the Supplier to SMART
Attach the DA-130 form and bank documentation to the supplier record in SMART. A hold will be placed on any new ACH information for a supplier that does not have the correct documentation attached.

DA-130C Cancellation of Electronic Deposit of Supplier Payment form:
The DA-130 form no longer contains a cancellation section.  A DA-130C form has been created to cancel an ACH payment method for a supplier.  The same level of due diligence achieved in applying fraud prevention processes and procedure in establishing or changing ACH payment information for suppliers using the DA-130 form shall also be applicable for cancellations using the DA-130C form.

TM-21 SMART Supplier Information Change Request form:
The TM-21 form has been modified to include supplier phone number and email to allow agencies to store confirmed contact information.  Changes to supplier information using this form should also be confirmed with the supplier.  Confirmation is recorded by completing the agency certification section. 

Printable version of 17-A-012

Summary: Increasing SMART ACH Participation Rate

In a continued effort to streamline work processes and to reduce the cost of state operations, the Department of Administration is encouraging agencies to review current business practices to increase ACH (Automated Clearing House) participation for SMART payments. ACH is the payment method whereby the payer initiates an electronic payment that is directly deposited into the payee’s bank account. This informational circular provides guidance for increasing agency ACH participation.

As detailed in Informational Circular 17-A-010, effective May 1, 2017 the required payment method for SMART Travel and Expense reimbursements is ACH. Although not required, best practice is for agencies to use ACH as the payment method for all SMART supplier payments. There are some types of agency payments that may not be easily or quickly converted to ACH payments; however, agencies should review their business process and develop a transition plan to utilize ACH as the payment method in the future.

Details for Implementation of Supplier ACH Initiatives:

New Suppliers

• At the time an agency starts doing business with a new supplier, the agency is expected to request completion of both a Form DA-130 (Authorization for Electronic Deposit of Supplier Payment) and a Form W-9 (Request for Taxpayer Identification Number and Certification) from the supplier. The agency must enter the ACH information as the new supplier is being entered into SMART as well as attaching the DA-130, banking documentation, and W-9 to the supplier record. The ACH location should be checked as the default payment location. If the appropriate documents are not attached, the supplier or the supplier’s ACH location will be placed on hold.

Suppliers Receiving Payments from Multiple State Agencies

• The Office of the Chief Financial Officer will contact the set of suppliers identified on Attachment A to request the supplier accept ACH payments from all state agencies. The list includes suppliers who received paper checks from more than nine agencies during the first quarter of 2017. No action is needed from agencies for the suppliers on this list.   
• As ACH information is added to SMART for the suppliers listed on Attachment A, notification will be provided so agencies will know when they can begin using the ACH payment method.

Most Frequently Paid Suppliers Currently Receiving Checks:

• Agencies should use the public query KS_AP_PAYMENT_CHK_COUNT to get a count of check payments by supplier for a given payment date range. The results should be used to identify which suppliers to target.  Moving the most frequently paid suppliers to ACH will yield the biggest cost savings. The following steps are recommended to transition these suppliers to ACH: 
  • View the supplier information in SMART to determine if ACH information exists:  Suppliers > Supplier Information > Add/Update > Supplier > Location tab, view all locations:
    1. If ‘SYSTEM CHECK’ is listed as the only location description, the supplier does not have ACH account information in SMART.  A DA-130 form should be sent to the supplier.  Once the form is completed and returned, the agency-verified DA-130 form and banking documentation should be submitted to the Supplier Team through the ManageEngine Service Desk. The Supplier Team will enter a new location in SMART and will designate it as the default payment method so the ACH payment method can be selected for future payments.
    2. If ‘ACH ****’ is listed in the location description, verify the effective status indicates an active account and the location is not on hold. The agency should use the last four digits of the ACH location description to confirm with the supplier that the ACH in SMART can be used for their agency payments. (The last four digit of the bank account number are always used as the last four digits in the ACH location description.) Once confirmed, the agency should begin using the ACH location for all SMART payments.
    3. If ‘ACH****’ is listed in the location description and the effective status indicates an inactive account, the location is on hold, the agency is unable to confirm the ACH information with the supplier, or the supplier is requesting use of different banking information, a DA-130 form should be sent to the supplier. Once the form is completed and returned, the agency-verified DA-130 form should be submitted to the Supplier Team through the ManageEngine Service Desk. 
    4. The agency may request maintenance to the supplier record to set the ACH location as the default by submitting a ManageEngine Service Desk ticket if the supplier has only one ACH location.

The Department of Administration provides a web page for suppliers receiving payments from the State of Kansas so details of their payments can be viewed. Payment information on the page is available for thirteen months following the issue date. Suppliers can access the self-service payment web page here.  A job aid titled “Vendor Self-Service Payment Look Up” can be provided to suppliers using this web site and is available on SMARTWeb, http://www.smartweb.ks.gov/, by going to Training > Accounts Payable > Suppliers.

Attachment
Printable version of 17-A-013

DH:sz

Informational Circular (IC) 17-A-004 was issued on October 11, 2016 to introduce the new statewide accounting policy for encumbering agency obligations effective January 1, 2017.  

The encumbrance policy resides in Policy Manual (PM) Filing 10,300 – Statewide Encumbrance Policy, and can be found here.

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.

As stated in the policy, the three methods for encumbering in the Statewide Management, Accounting & Reporting Tool (SMART) are purchase orders, travel authorizations and general ledger (GL) encumbrance journals.

Agencies are reminded that the Agency Audit Services Team of the Office of the Chief Financial Officer will begin auditing for compliance with the statewide encumbrance policy effective July 1, 2017.

IC 17-A-014 is issued to provide supplemental information on payments exempt from the encumbrance policy. 

Supplemental information to the encumbrance policy:

Additional obligations that are generally not required to be encumbered but are optional for agency budget management include:

• Out-of-state travel where the supplier is not known until five business days prior to the travel occurring.
• Recording of expenditures of a local fund (petty cash and imprest funds).
• Inmate wages paid through agency imprest funds.

However, the above obligations are required to be encumbered at fiscal year-end, or if specifically required by the Office of Procurement and Contracts (OPC).

Canteen funds, work therapy funds, benefit funds, trust funds and employee use funds are examples of funds that have private funding which is not held in the state treasury, thus they are exempt from the encumbrance policy.

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 OPC. 

SMART vouchers without a purchase order will be pushed back to the agency for compliance.  To assist agencies as they work to educate staff for compliance with the encumbrance policy, the following dates will be used in reviewing AP vouchers:

• Effective July 1, 2017, purchase orders with a budget date subsequent to the invoice date will result in an audit finding.  
• Effective July 1, 2018, purchase orders with a budget date subsequent to the date of service or order/purchase will result in an audit finding.

Effective July 1, 2017, SMART expense reports with no existing travel authorization or GL encumbrance noted will be identified as an audit finding (unless exempt per PM 10,300). 

For guidance on fiscal year closing and determination for all obligations, please see PM Filing 14,002 – Fiscal Year Closing Including Fiscal Year Determination.

Attachment:

Best Practices – Statewide Encumbrance Policy

Printable version of 17-A-014 

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Informational Circular No: 16-A-001

Supersedes Informational Circular No: 15-A-004
Date of this Informational Circular: July 1, 2015  

Approval:
DeAnn Hill (Original Signature on File)  

Summary:
FY 2016 Private Vehicle Mileage Rates

As authorized by K.S.A. 75-3203a, the Secretary of Administration has fixed the private vehicle maximum mileage reimbursement rates for FY 2016 at:

57¢ per mile for privately owned automobile

54¢ per mile for privately owned motorcycle

23¢ per mile for moving mileage rate

$1.29 per mile for privately owned airplane (based on air miles rather than highway miles)

 Printable version of 16-A-001

DH:jm

Informational Circular No. 16-A-002

Supersedes Informational Circular No: 15-A-002
Date of this Informational Circular: July 1, 2015  

Approval:
DeAnn Hill (Original Signature File)

Summary:
FY 2016 Meal Allowance and Lodging Rates

Please see State of Kansas Travel Handbook Section 4100 for information on how meals are reimbursed.

As authorized by K.S.A. 75-3207a, the Secretary of Administration has fixed the rates for FY 2016 at:

July 1, 2015 thru November 12, 2015 (Valid for current SMART version 9.0):

Meal Allowance:

*or actual to either a maximum of $127 per day or the allowable meal expense on the U.S. Department of State website for Foreign Per Diem Rates by Location

International Meal Allowance:
International travelers may use the meal per diem rates for a particular city as established by the U.S. Department of State on their website (http://aoprals.state.gov/web920/per_diem.asp) under the heading Foreign Per Diem Rates by Location.   Locate the country and city and then obtain the meal allowance under the column heading M & IE Rate.

Reduced Meal Allowance:
If the cost of meals is included within the cost of registration fees or other fees and charges paid by the agency or supplied without cost by another party, the meal allowance should be reduced as shown in the table above. 

Same Day Meal Allowance:
The rates as established in accordance with K.A.R. 1-16-18(c)(3) are the same as indicated in the table above.

Lodging Expense Limitation:

K.S.A. 75-3207a(f) provides that the daily lodging expense limitations established may be exceeded, upon written approval by the agency head or designee, by the lesser of either: (1) an additional 50% of the applicable lodging expense limitation, or (2) the actual lodging expense incurred.

These lodging limits continue to be applied to the lodging rate before taxes.  Thus, the amount reimbursed or paid for lodging expenses may exceed the established lodging limitation by as much as the amount of associated taxes.

Note that prior to November, 2015, an additional Informational Circular will be issued with rates coinciding with the SMART 9.2 upgrade.

 
Printable version of 16-A-002

 DH:jm

Informational Circular No. 16-A-003  

Date of this Informational Circular: September 4, 2015  

Approval:

DeAnn Hill (original signature on file)

Summary:

Implementation Date for CONUS rates for the State of Kansas

Per the Secretary of Administration, the State of Kansas will adopt federal standards for per diem rates for travel and expense effective with all travel that occurs on or after January 1, 2016.  The federal rates consist of CONUS (Contiguous United States) established by the General Services Administration, OCONUS (Outside the Contiguous United States) established by the Department of Defense, and Foreign rates established by the U.S. Department of State.

• CONUS/OCONUS/Foreign rates will be utilized for travel authorizations and expense reports where the travel date is January 1, 2016, or later

• Agencies should continue to use the current travel rates for all travel that will occur through December 31, 2015

• Effective at SMART 9.2 go-live on November 13, 2015, existing travel expense types and rates will continue to be available for travel dates through December 31, 2015 and the new expense types and travel rates will be available and effective for travel dates beginning January 1, 2016, or later

• Beginning November 13, 2015 and thereafter, agencies will be able to enter travel authorizations using the new rates for travel that will occur on or after January 1, 2016

• A travel event that crosses over the January 1, 2016 effective date for CONUS/OCONUS/Foreign rates, should be split into two separate travel authorizations and expense reports

• Additional information regarding this change will be communicated in the coming months

Printable Version of 16-A-003


DH:jm

This Informational Circular establishes formal policy that agency costs incurred for travel to attend funerals, including reimbursement for the use of private vehicles and the use of state-owned vehicles, generally are not allowed.

The exception is that allowance will be made for incurring agency funeral travel costs incurred as a result of funeral attendance by the agency head, or the agency head’s designee representing the agency in an official capacity.

DH:jm

Printable version of 16-A-004

Effective November 13, 2015 the following information will be required regarding payments and reimbursements in the SMART system.

The Agency Audit Services team will no longer accept emailed or paper copies of invoices or other support documents.

For Accounts Payable (AP) vouchers:

• Invoices for payments are to be attached in SMART to the AP voucher for instances when:
  • The invoice provides useful information that aligns with the referenced contract and notating this information in the payment notes or comments fields exceeds the limitation in those fields.
  • The invoice provides information that is not available in SMART or on the Department of Administration website.

Exception: Note that Agency Audit Services does not require support documents for grant payments to be attached in SMART to the payments.  Grant payment support documents should continue to be maintained at the agency in a file storage method other than SMART.

• Prior Authorization (PA) forms that require hand-written approval by the Office of Procurement and Contracts, such as revised PA’s, must be attached in SMART to the Purchase Order (PO).  All other PA’s must follow the Office of Procurement and Contract’s policies for attachment in SMART.
• All copies of contracts or amendments are to be entered in SMART Supplier Contracts and should not be attached in SMART to the PO or the AP voucher.  If an amendment needs to be added to the contract after the contract has been created in SMART Supplier Contracts, agencies should contact the Office of Procurement and Contracts for assistance.

For Travel and Expense (T&E) reports:

• Documents supporting travel and expense reimbursements are to be attached in SMART to the T&E report. These documents include:
  • Prior authorization for travel not captured by a SMART Travel Authorization.
  • Required receipts which support T&E reimbursements.
  • Conference rate verification.
  • Information that is not available in SMART.

Information regarding attachments in SMART:

• The recommended limit to the size of the file being attached is 1 MB.
• Agencies should not attach CAD (Computer Aided Design) files or picture files (examples- .jpg, .tif, .png, or .gif).
• Excel, Word, scanned .pdf files, or similar files, are appropriate.
• Multiple attachments are allowed.
• Avoid attaching documents that do not add value to the transaction.
• System retention for attachment files is expected to be three years.  This period may be reduced if storage space becomes an issue.
• Agencies should not rely on SMART as the method for meeting agency record retention policies.

 DH:jm

Printable version of 16-A-005

As announced in Informational Circular 16-A-003 on September 4, 2015, the State of Kansas will adopt federal standards for per diem rates for travel and expense effective with all travel that occurs on and after January 1, 2016. The following policies are being implemented in conjunction with the adoption of these federal per diem rates and are effective for all travel occurring on and after January 1, 2016:

Subsistence Rates

• Per Diem rates for the State of Kansas shall consist of the following:

• • Meals and Incidentals Expense (M&IE) rate -
    • Meals – the cost of meals, taxes and tips.
    • Incidentals Expense –all fees and tips to hotel porters, bellhops, doormen, and maids.
  • Lodging rate -
    • Employees may be reimbursed for actual lodging expense incurred, not to exceed this rate. 
    • No allowance for any tips is included with this rate. 
    • Taxes are paid in addition to this lodging rate, as current policy allows, except for foreign travel locations.
    • For foreign travel locations, lodging taxes are included with the lodging rate and are not an additional reimbursement.

Note: Following the federal guidelines with respect to M&IE will avoid any taxability issues.

• Subsistence rates will consist of a standard per diem rate and non-standard area per diem rates. The standard rate is used except when the travel location is specified as a non-standard area, in which case, the per diem rate for that non-standard area is used.
• Meal reimbursement will be based on quarter days with the daily reimbursement amount divided equally between quarters. Meal per diem will be provided for the quarters the traveler departs and returns.
• International travel meal reimbursement will follow the U.S. Department of State M&IE rates, with no allowance for paying a higher amount for actual meal expenses.

Same Day Travel Meal Allowance

• For employees that qualify for a same-day travel meal allowance, the agency will enter the appropriate amount to be reimbursed based on 15%, 35% or 50% (breakfast, lunch or dinner) of the daily M&IE rate.  The meal is to be determined by the agency.  A new expense type “Same Day Travel Meal” has been added to the Travel & Expense module for the meal associated with same day travel. See the Employee Travel Expense Reimbursement Handbook for the guidelines for receiving a meal with same day travel.

Reduced Meal Allowance for Meals Provided at No Cost to the Employee

• If meals are provided during a given travel day, the agency will reduce the M&IE rate by the amount of the meal that was provided, based on 15%, 35% or 50% (breakfast, lunch or dinner) of the daily M&IE rate.  For partial days, the quarter amount is calculated first and then the meal deduction % is applied.
• If all meals are provided for a day, the reduction to the M&IE rate will be 100% and there will be no allowance for incidentals expense reimbursed to the traveler.

Reduced Subsistence Allowance

• Reduced subsistence allowance requires approval of the agency head or agency head’s designee, using the form DA-37 Reduced Subsistence Allowance.

Border City Travel – Discontinued

• Border City Travel Rule and designated cities are discontinued. However, the Department of Administration will consider requests for blanket approval of specific out-of-state travel locations.  The requests will come from the agency head or designee and may be renewed annually.

Expense Reports

• Expense Reports must be completed unless there are no reimbursable expenses to the traveler (such as mileage, meal per diem, etc.).
• If travel related expenses include reimbursable expenses to the traveler, all prepaid expenses are required to be added to the expense report.  This includes but is not limited to lodging, transportation rental and fares, fuel charged to a state credit card or account, conference registration and lodging, etc.
• Expense reports should include M&IE entered for one day at a time rather than for a range of days on one line.

Travel Expense Account Codes

• The new series of travel account codes, 525510 thru 525590 will be used for all travel occurring on and after January 1, 2016.  Regent institutions will continue to use the existing travel account codes since they do not use the SMART Travel & Expense module.
• The new account codes, 525510 thru 525590, will be used for all travel locations (in-state, out-of-state and international).  The location entered for an expense report will be used to determine the in-state, out-of-state and international designation which will be provided in SMART reports. The chart below provides the current and new account codes:

   

Travel Authorizations

• Travel authorizations entered beginning November 13, 2015, for travel occurring on and after January 1, 2016, will use the new account codes and rates.

Moving of Employee Personal Effects Account Codes

• New account code 521500 will be used for moving of employee personal effects for both in-state and out-of-state moves.  This account code will be used for all moves occurring on and after January 1, 2016.  Regent institutions will continue to use the existing account codes for this expense category. The chart below provides the current and new account codes:

Updates for Subsistence Rates

• State subsistence rates will be updated on April 1 and October 1 each year and will be effective until the next semi-annual update.  Historical rate information will be maintained in SMART

Rate File, Policy Documents, and Links

• An electronic file with the CONUS standard rate and non-standard area rates (for the continental United States) will be available at the Office of the Chief Financial Officer, Travel Information for State Employees website at: Travel Information for State Employees.
• The Employee Travel Expense Reimbursement Handbook is being updated to reflect these policy changes.  See the Employee Travel Expense Reimbursement Handbook for complete travel policy information available at the Office of the Chief Financial Officer, Travel Information for State Employees website at: Travel Information for State Employees
• The Office of the Chief Financial Officer Policy Manuals are being updated to reflect these policy changes. Policy Manuals are available at the Office of the Chief Financial Officer website at: Policy Manual.
• Agencies will be notified when the revised Employee Travel Expense Reimbursement Handbook and Policy Manuals, and the CONUS rate file are available on the Department of Administration website.

 DH:jm

Printable version of 16-A-006

Informational Circular (IC) 16-A-005 was issued on October 9, 2015 to address attachments in SMART.  Based on agency feedback and further review, IC 16-A-007 has been issued to supersede IC 16-A-005.

Effective November 13, 2015, the following information will be required for payments and reimbursements in the SMART system over the agency’s delegated audit authority.  Although not required, best practice is for agencies to also follow the guidelines provided below for payments under the agency’s delegated audit authority.

The Agency Audit Services team will no longer accept emailed or paper copies of invoices or other support documents.

For Accounts Payable (AP) vouchers:

• Invoices for payments are to be attached in SMART to the AP voucher for instances when:
  • The invoice provides useful information that corresponds with the purchasing authority and notating this information in the payment notes or comments fields exceeds the limitation in those fields.  For example, utility payments will require attached invoices unless the specific service date range is entered on the voucher in SMART.
  • The invoice provides information that is not available in SMART or on the Department of Administration website.

Exception: Note that Agency Audit Services does not require support documents for grant payments, refunds, or P-Card payments to be attached in SMART to the payments.  The payment support documents should continue to be maintained at the agency in a file storage method other than SMART.

• Prior Authorization (PA) forms that require hand-written approval by the Office of Procurement and Contracts, such as revised PA’s, must be attached in SMART to the Purchase Order (PO).  All other PA’s must follow the Office of Procurement and Contract’s policies for attachment in SMART (see Procurement Informational Circular 11-03).
• All copies of contracts or amendments are to be entered in SMART Supplier Contracts and should not be attached in SMART to the PO or the AP voucher.  If an amendment needs to be added to the contract after the contract has been created in SMART Supplier Contracts, agencies should contact the Office of Procurement and Contracts for assistance.

For Travel and Expense (T&E) reports:

• Documents supporting travel and expense reimbursements are to be attached in SMART to the T&E report. These documents include:
  • Prior authorization for travel not captured by a SMART Travel Authorization.
  • Required receipts which support T&E reimbursements.
  • Conference rate verification.
  • Information that is not available in SMART.

Information regarding attachments in SMART:

• The recommended size limit for a file being attached is 1 MB.
• Agencies should not attach CAD (Computer Aided Design) files or picture files (examples- .jpg, .tif, .png, or .gif).
• Excel, Word, PDF, or similar files, are appropriate.
• Multiple attachments are allowed.
• For vouchers that are interfaced, the agency must attach support documents after the voucher has been created in SMART.
• Avoid attaching documents that do not add value to the transaction.
• System retention for attachment files is expected to be 3 years.  This period may be reduced if storage space becomes an issue.
• Agencies should not rely on SMART as the method for meeting record retention policies.

 DH:jm

Printable version of 16-A-007

• Requirements to report payments where the 1099 data was not recorded in SMART:

There is NO option for the agency to print the forms and have the Office of the Chief Financial Officer report to the IRS.

Policy and procedures:

While most 1099 transactions are recorded in SMART, and require no additional action by state agencies; there are some payments that occur outside of SMART or the information to be reported to the IRS is not in SMART. These transactions result in unique reporting procedures comprised of the following:

To report non-SMART payments for form 1099 purposes the agency must confirm the vendor is in the SMART vendor table with the appropriate 1099 type and class, and ensure that withholding is turned on. If the vendor is not in the vendor table, the agency must add the vendor to SMART including the appropriate 1099 type and class, and turn withholding on. 

Complete the EXCEL template “PS_WTHD_TRAN_TBL_update_template” (link to the Excel document is included at the bottom of this circular) for all non-SMART 1099 reportable payments. The completed template needs to be received by the Office of the Chief Financial Officer by January 13, 2016 to ensure the 1099s are distributed by the January 31, 2016 deadline.

The template has the columns listed below. Do not insert or delete columns or rows. Do not change the formatting. Beginning with line 2 (replacing the sample data), complete one line for each payment (add lines as necessary for additional withholding types/classes). The gray columns are defaults and should not be changed. If 499 lines are not sufficient, copy line 500 down. When completed, attach the EXCEL spreadsheet to a Service Desk ticket with the heading “non-SMART 1099”. Note if you have leading zeros precede them with an apostrophe ‘, i.e. vendor id ‘0000123456.

BUSINESS_UNIT: 5 characters must have leading zeros (your agency number)

WTHD_ENTITY: IRS

WTHD_TYPE: as listed in the vendor table (1099, 1099I, 1099G)

WTHD_JUR_CD: FED

WTHD_CLASS: as listed in the vendor table, with leading zeros.

WTHD_RULE: RULE0

VENDOR_SETID: SOKID

VENDOR_ID: 10 digits with leading zeros, as assigned by SMART.

VNDR_LOC: the vendor location with the appropriate 1099 type and class, usually 001, with leading zeros

ADDRESS_SEQ_NUM: 1

PYMNT_ID: Blank

VNDR_REGIST_ID: SSN or FEIN, 9 digits including leading zeros

PYMNT_DT: date of payment, mm/dd/yyyy format

WTHD_DECL_DATE: Same as date of payment

WTHD_BASIS_AMT: The taxable amount for this 1099 type and class for 2015.

DESCR100: 100 characters of your choice – no punctuation, no special characters 

Training guide for setting up vendors for 1099 reporting and an account code guide:
1099 and Withholding Information Training Guide

IRS guide to each type of 1099, including instructions for each:
IRS Online Instructions for Forms

Page 6 and 7 of the job aid “Create a 1099 Voucher” has Examples of payments by 1099 type and class:
Create a 1099 Voucher Job Aid

SMART withholding codes:
SMART Withholding Codes Job Aid

Excel withholding template:
IC 16-a-008 - PS_WTHD_TRAN_TBL update template

Printable version of 16-A-008

• 1. The vendor/client must be in the Statewide Management, Accounting and Reporting Tool (SMART) vendor table.
  2. All reportable payments must be submitted via Service Desk using the EXCEL template referenced below
  3. The Office of the Chief Financial Officer processes the payments submitted via Service Desk using SMART. SMART generates the paper 1099s which are mailed to the vendors. The 1099 information is electronically submitted to the IRS. 
  • • Locally administered interest payments of $10 or more are to be reported on IRS Form 1099-INT. These payments typically represent interest paid from trust funds to clients of institutions with the Department for Aging and Disability Services and the Department of Corrections.
    • State Fair premiums are to be reported on Form 1099-MISC.
    • Other payments such as non-employee awards not paid directly to the recipient from SMART.

In preparation for the upgrade to PeopleSoft version 9.2 for SMART, this informational circular has been created to assist agencies with the cutover process.   An attachment is included with a timeline of events and deadlines to assist agency staff in completing necessary tasks prior to and following the upgrade.

 General Items

SMART will be closed to agencies starting Friday, November 6, 2015 through Thursday, November 12, 2015 as the SMART system transitions from PeopleSoft version 9.0 to version 9.2, and from state-owned hardware to a hosted environment.  (The transition will be referred to as the “cutover process” in this circular). SMART will re-open on Friday, November 13, 2015 at 7:00 AM. 

The URL for accessing the system will change with this upgrade.  The new URL can be attained by navigating to the current SMART URL where a new landing page shows the SMART 9.0 URL on the left side of the page and the new SMART 9.2 URL on the right side of the page.  Users should click on the SMART 9.2 URL between October 26 and November 2 to verify that the page can be displayed.  Please note that the page will not display between November 3 and November 10 and users clicking on the URL will receive the “Error 404” message.  On approximately November 11, the URL will be accessible again.  Users must delete their internet browser cache files prior to logging into SMART for the first time on November 13 or after.    

Some users may have issues with the new landing page displaying due to the way the page has been bookmarked in their browser.  To reach the new landing page, bring up the current SMART 9.0 URL and delete all characters to the right of ‘.gov/’ and hit the Enter key.  Any users having difficulty with this can create a ManageEngine Service Desk ticket or contact the Help Desk at 785-368-8000. 

Processing Deadlines
Please see the attached SMART Upgrade Cutover Plan Day by Day Summary for all processing deadlines and other important details regarding the upgrade. 

Interface File Processing
The cutoff for interface files to be processed prior to the upgrade will be 6:00 PM on Wednesday November 4, 2015 for expenditures and 1:00 PM on Thursday November 5, 2015 for deposits.  Files received after the cutoff and by November 8 will be held and processed on the night of November 12, 2015.  Other files received after November 8 will be processed on the night of November 13, 2015. 

Payment Processing
During the period of November 6 to November 12, agencies will not be able to process payments in the accounting system.  No payments can be generated with the exception of wire payments for agencies who have previously established agreements.  Agencies should plan ahead for this time period.  

Agencies may continue to submit SMART check maintenance (reissues and cancels) requests by creating a ManageEngine Service Desk ticket through 10 AM on Thursday, November 5.  The State Treasurer’s website will not be updated during the SMART cutover period; therefore, no check maintenance requests shall be submitted during the cutover period Friday, November 6 to Friday, November 13 because the status of the check will need to be validated once SMART is re-opened and the State Treasurer’s website has been updated. Agencies may begin submitting SMART check maintenance requests by creating a ManageEngine Service Desk ticket on or after Monday, November 16 after the status of the check has been validated. 

For agencies that process wire payments between November 6 and 12, vouchers must be entered in SMART 9.2 for the wire payments by 6:00 PM on November 17, 2015.  Please enter one voucher for each wire payment since the two transactions must match exactly.      

Deposit Processing
For agencies that upload and submit deposits via INF43 and INF44 -- continue to upload and submit deposits via INF43 and INF44 until 1:00 PM on Thursday November 5, 2015. (The INF28 can also continue to be submitted on November 5, 2015, for agencies using pending items). SMART AR Deposit jobs will run according to the regular hourly schedule. If you process INF43 or INF44, please e-mail the State Treasurer’s Cash Management Group at cash@treasurer.state.ks.us to notify them of the Business Unit, Deposit ID (if known), and Deposit Total so they can approve the transaction in SMART. STO will perform their normal approval and release at 3:00 PM on Thursday November 5, 2015. 

While SMART is unavailable from November 6 to November 12, agencies should continue to make deposits using the State Treasurer’s Office form: Temporary Deposit Form. Using the Temporary Deposit Form is preferable to holding checks and cash at the agency, and allows users to meet the requirement to deposit funds collected each day. Please bring the completed form, along with the cash and checks (calculator tape attached), to the State Treasurer’s Office. 

All deposits that occur between November 6 and 12 must be entered in SMART 9.2 by 2:00 PM on November 16, 2015. Please enter a separate SMART deposit transaction for each deposit made with the State Treasurer’s Office.  One SMART deposit transaction cannot be entered to summarize multiple deposits.     

 Transaction Status for Cutover

It is best practice for transactions to be in a completed state at the time of the cutover.  Please consult the Month End Checklists available on the SMART Web website: http://smartweb.ks.gov/home/month-end-checklists/ to assist with reviewing transactions.  Please resolve all issues in advance so that transactions are in a completed status by 6:00 PM on November 5, 2015.  Agencies should refrain from entering transactions that cannot be completed before the cutover until after SMART 9.2 is available.  More details about specific transactions are listed below: 

Accounts Payable Transactions
Vouchers must be entered, approved, matched, and budget checked by November 5 at 10:00 AM. 

P-Card Transactions
The preferred statuses for P-Card transactions are either Staged or processed all the way through voucher build. SMART will not be loading any P-Card transactions after Monday November 2, and the last P-Card voucher build will run at 8:00 AM on Wednesday November 4. 

Travel and Expense Transactions
In preparation for the upgrade, you must ensure that all expense transactions are either in Pending status (un-submitted) or Paid status (for expense reports and cash advances) or final Approved status (for travel authorizations).  Transactions that are in the approval process are not recoverable for routing to approver queues after the upgrade. Once the upgrade is completed and the system is live, transactions that are in Pending status may be submitted normally. 

Please run the following queries to identify expense transactions that require attention:

Travel Authorizations – Must be in final approved status

• UNPROCESSED_TRAVEL_AUTHS
• Navigation: Reporting Tools > Query > Query Viewer > UNPROCESSED_TRAVEL_AUTHS
• Query results DO NOT include TAs in Closed or Denied status
• Query DOES include TAs in Approved, Approvals in Process, Pending and Submitted for Approval status
• TAs with a Valid budget status have encumbered funds
• TAs with an Error status have a budget error that should be resolved and may or may not have encumbered funds
• TAs with a Not Chk'd budget status have not yet been budget checked and have not encumbered funds 

Cash Advances – Must be in Pending or Paid status

• Identify cash advances that are not reconciled
• Navigation: Travel and Expenses > Manage Accounting > Reconcile Cash Advance
• Cash advances must be reconciled by 10:00 AM on November 5 

Expense Reports – Must be in Pending or Paid status

• UNPROCESSED_EXPENSE_REPORTS
• Navigation: Reporting Tools > Query > Query Viewer > UNPROCESSED_EXPENSE_REPORTS
• Query results DO NOT include ERs that are in Closed, Denied or Paid status
• Query results DO include ERs that are in Approved for Payment, Approvals in Process, Pending, Staged, or Submitted for Approval status

General Ledger Journals
General Ledger journals must be entered, edited with a successful budget check, agency approved and submitted into workflow for central approval November 5 at 2:00 PM.

Asset Management Transactions
Agencies are encouraged to have all capital asset transactions dated through November 5 entered into SMART by 6:00 PM on November 5. This includes additions, cost adjustments, transfers, and retirements.

In addition, agencies that use integration to add assets must make sure that all outstanding Interface IDs have been loaded or marked as ‘Replaced’ if applicable. Please use the financial search page (Asset Management > Send/Receive Information > Approve Financial Information > Review) to validate. Note that users can search by Load Status. There should be no interface lines remaining at 6:00 PM on November 5 with the following Load Statuses: Errored, In Process, On Hold, and Pending. If there are any questions regarding Interface ID processing of lines with these statuses, please log a ManageEngine Service Desk ticket requesting assistance as soon as the issue has been identified. 

Workflow

SMART 9.0 utilized AWE (Application Workflow Engine) for Procurement and Travel and Expense.  For SMART 9.2, General Ledger and Accounts Payable modules will move to using AWE instead of Virtual Approver.  

AWE forces the approval hierarchy when there are multiple levels of approvers.  A Level 1 approver must approve before a Level 2 approver can access.  Top Level approvers will not be able to approve a transaction earlier in the workflow stream and approve for all levels.  See the details below for assistance with preparing for this change. 

AP Workflow

Two queries have been created to assist agencies in reviewing the AP Voucher Approval Workflow as we move toward the SMART Upgrade in November.  Agencies should run the query KS_SET_A_B to see users in your agency who are currently Set A or Set B approvers within each Origin Code for which workflow approval is required.  The query KS_APPROVER_AP_V1 will list the users in your agency with the Agency Fiscal Office Approver Role. 

Agencies will need to have a user in the Set A, Set B, and Fiscal Office levels for each of the origin codes for which vouchers are processed through workflow approval or risk vouchers being stuck or misrouted during the approval process.  Please refer to: SMART to make changes to the Set A and Set B approvers.  If you need to make updates to the Agency Fiscal Office Approvers, please submit a security request form in ManageEngine Service Desk to make the necessary changes.  Please note that this does not affect any of the interface vouchers which are submitted as pre-approved.    

In the new AP Voucher workflow effective with the SMART upgrade, higher level approvers will no longer be able to approve vouchers that have not yet been approved by the lower level approvers.  If the fiscal office approvers would like to have flexibility to approve vouchers that are not yet on their worklist, we suggest that the fiscal office approver be added as a Set A and/or Set B approver for each origin code.  

If vouchers become stuck in the approval workflow, agencies will continue to log requests in ManageEngine Service Desk to have the voucher reassigned to an appropriate approval level. 

GL Workflow
The query KS_APPROVER_GL_V1 has been created to assist agencies in reviewing the GL Journal Approval Workflow.  Agencies must have users in all three approval levels (KGL_AGY_APPROVER_L1, KGL_AGY_APPROVER_L2, and KGL_AGY_APPROVER_L3) or Journals will not route correctly through the approval path.  The FOCUS Team has also reviewed the workflow and identified missing roles. Service Desk tickets have been logged in ManageEngine  to update security roles as necessary so that a complete workflow path exists for each agency as we upgrade to 9.2. Higher level approvers will no longer be able to approve Journals that have not yet been approved by approvers at the lower levels unless they are also assigned the lower level roles. 

We urge all agencies to review their Approvers at this time using the above query and request any additional changes by submitting a security form through ManageEngine Service Desk. 

Other Items 

Tree Updates
For agencies that utilize Trees within SMART for reporting purposes, please note that the Tree values from SMART 9.0 were transferred to SMART 9.2 on July 27, 2015. The SMART Team’s GL Analyst has manually updated the Tree values in SMART 9.2 to include values added to SMART 9.0 after that date.  Even though the SMART Team has tried to validate that all Tree values have been added to SMART 9.2, agencies should take the time to verify the Tree values that were added after July 27, 2015. 

Spreadsheet Upload Templates 
New versions of the spreadsheet upload templates must be used with SMART 9.2.  Agencies should take the necessary steps to make sure their agency users have the new versions and discontinue the use of the old versions.  Agencies should submit a request for the new versions of the spreadsheet(s) they utilize to the ManageEngine Service Desk.  There are four new spreadsheet upload templates:

• Budget Journal Upload (INF24)
• Journal Upload
• Deposit Upload (INF43)
• Voucher Upload (INF50)

 16-A-009 Attachment SMART Upgrade Cutover Day by Day Summary

Printable version of 16-A-009  

Informational Circular (IC) 16-A-006 was issued on October 12, 2015 to announce travel policies being implemented in conjunction with the adoption of federal per diem rates (meals and incidentals, and lodging), effective for all travel occurring on and after January 1, 2016.  Based on agency feedback and further review, IC 16-A-010 contains revised policy and supersedes IC 16-A-006. 

The following travel policies are being implemented in conjunction with the adoption of federal per diem rates, effective for all travel occurring on and after January 1, 2016: 

Subsistence Rates (Contiguous United States, Alaska, Hawaii, U.S. Territories and Possessions, and International locations) -

Note: For international travel, the allowance for paying actual meal expenses with receipts is discontinued.

Note: By following federal guidelines with respect to M&IE, the State of Kansas avoids any taxability issues. 

Exception to the Lodging Expense Limitations

Reimbursement for Actual Conference Lodging

Same Day Travel Meal Allowance

Reduced Meal Allowance for Meals Provided at No Cost to the Employee

Reduced Subsistence Allowance

Border City Travel – Discontinued

 Expense Reports

Travel Expense Account Codes

For travel occurring prior to January 1, 2016:

For travel occurring on and after January 1, 2016:

Travel Authorizations

Moving of Employees’ Personal Effects Account Codes

For moves occurring prior to January 1, 2016:

For moves occurring on and after January 1, 2016:

Updates for Subsistence Rates

Rate File, Policy Documents, and Links

DH:jm

Printable version of 16-A-010

• Per diem rates for the State of Kansas shall consist of the following:
• • Meals and Incidentals Expense (M&IE) rate -
    • Meals – the cost of meals, taxes and tips.
    • Incidentals Expense –all fees and tips to hotel porters, bellhops, doormen, and maids.
• • Lodging rate -
    • Employees may be reimbursed for actual lodging expense incurred, not to exceed this rate. 
    • No allowance for any tips is included with this rate. 
    • Taxes are paid in addition to this lodging rate.
    • For international travel, payment for actual lodging expenses is allowed and not subject to rate limitations as previously indicated in Informational Circular 16-A-006.  Lodging incidentals, which consist of fees and tips to hotel porters, bellhops, doormen, and maids, are included in the M&IE rate and thus should not be included with actual lodging expense reimbursement.
• Subsistence rates will consist of a standard per diem rate and non-standard area per diem rates. The standard rate is used except when the travel location is specified as a non-standard area, in which case, the per diem rate for that non-standard area is used. 
• Meal reimbursement will be based on quarter days with the daily reimbursement amount divided equally between quarters. Meal per diem will be provided for the quarters the traveler departs and returns. 
• The daily lodging expense limitations may be exceeded, with approval by the agency head or agency head’s designee, by the lesser of either:
  • an additional 50% of the applicable lodging expense limitation; or
  • the actual lodging expense incurred.
• Agencies may authorize payment or reimbursement for actual lodging expenses when an employee is required or authorized to attend a conference, and the lodging rate exceeds the applicable lodging expense limitation (including the additional 50%).  The agency head must be provided with conference materials and rates.  These should be maintained with travel documentation.
• For employees that qualify for a same-day travel meal allowance, the agency will determine the appropriate amount to be reimbursed based on 15%, 35% or 50% (breakfast, lunch or dinner) of the daily M&IE rate.  The meal is to be determined by the agency.  A new expense type “Same Day Travel Meal” has been added to the Travel & Expense module for the meal associated with same day travel. See the Employee Travel Expense Reimbursement Handbook for the guidelines for receiving a meal with same day travel.
• If meals are provided during a given travel day, the agency will reduce the M&IE rate by the amount of the meal that was provided, based on 15%, 35% or 50% (breakfast, lunch or dinner) of the daily M&IE rate.  For partial days, the quarter amount is calculated first and then the meal deduction % is applied. 
• If all meals are provided for a day, the reduction to the M&IE rate will be 100% and there will be no allowance for incidentals expense reimbursed to the traveler.
• Reduced subsistence allowance requires approval of the agency head or agency head’s designee, using the form DA-37 Reduced Subsistence Allowance.
• Border City Travel Rule and designated cities are discontinued. However, the Department of Administration will consider requests for blanket approval of specific out-of-state travel locations.  The requests will come from the agency head or designee and may be renewed annually.
• SMART expense reports must be completed for reimbursable expenses to the traveler (such as mileage, meal per diem, etc.).   It is recommended, but not required, that prepaid expenses be added to the expense report.  This includes, but is not limited to, lodging, transportation rental and fares, fuel charged to a state credit card or account, conference registration and lodging, etc. 
• SMART expense reports should include M&IE entered for one day at a time rather than for a range of days on one line. 
• The new series of travel account codes, 525510 through 525590 will be used only in the Travel & Expense module for all travel occurring on and after January 1, 2016.  The existing travel account code series for in-state, out-of-state, and international travel will continue to be used outside of the Travel & Expense module by all agencies. 
• Within the Travel & Expense module, the new account codes, 525510 through 525590, will be used for all travel locations (in-state, out-of-state and international).  The location entered for an expense report will be used to determine the in-state, out-of-state and international designation which will be provided in SMART reports. The charts below provide the existing and new account codes and appropriate usage: 
• Beginning November 13, 2015, travel authorizations created for travel occurring on and after January 1, 2016, will use the new account codes, 525510 through 525590, as well as the new travel rates. 
• New account code 521500 will be used only in the Travel & Expense module for moving of employees’ personal effects occurring on and after January 1, 2016.  The existing account codes for in-state and out-of-state moving of employees’ personal effects will continue to be used outside the Travel & Expense module by all agencies. 
• Within the Travel & Expense module the new account codes 521500 will be used for both in-state and out-of-state moving of employees’ personal effects.  The location entered for an expense report will be used to determine the in-state and out-of-state designation which will be provided in SMART reports. The charts below provide the existing and new account codes and appropriate usage: 
• State subsistence rates will be updated on April 1 and October 1 each year and will be effective until the next semi-annual update.  Historical rate information will be maintained in SMART. 
• An electronic file with the CONUS standard rate and non-standard area rates (for the continental United States) will be available at the Office of the Chief Financial Officer, Travel Information for State Employees website at: Travel Information for State Employees
• The Employee Travel Expense Reimbursement Handbook is being updated to reflect these policy changes.  See the Employee Travel Expense Reimbursement Handbook for complete travel policy information available at the Office of the Chief Financial Officer, Travel Information for State Employees website at: Travel Information for State Employees
• The Office of the Chief Financial Officer Policy Manuals are being updated to reflect these policy changes. Policy Manuals are available at the Office of the Chief Financial Officer website at: Policy Manual
• Agencies will be notified when the revised Employee Travel Expense Reimbursement Handbook and Policy Manuals, and the CONUS rate file are available on the Department of Administration website. 

As authorized by K.S.A. 75-3207a, the Secretary of Administration has fixed subsistence rates for travel occurring on and after January 1, 2016.  The Employee Travel Expense Reimbursement Handbook is being updated to include information regarding subsistence for travel occurring on and after January 1, 2016.  Agencies will be notified when revisions are complete. 

For State of Kansas travel, federal subsistence rates will be followed.  Subsistence rates are based on travel location and travel dates with seasonal rates listed for many locations.  If a specific travel location isn’t listed (or within the location definition), the standard rate, or “other” location rate is used.  The following rates apply to many locations across the contiguous United States (CONUS). 

For CONUS locations, the following standard per diem rates apply for travel occurring on and after January 1, 2016:

M&IE - $51

Lodging - $89

SMART contains the official subsistence rates for CONUS and OCONUS travel locations and will be updated each October 1 and April 1.  International subsistence rates are not loaded into SMART. Employees will obtain Meals and Incidental Expense (M&IE) rates for international travel locations directly from the U.S. Department of State (DOS) website listed below.  For international travel, payment for actual lodging expense is allowed. 

The table below shows the source of the effective rates:

Source of Subsistence Rates -

Contiguous United States (CONUS) -

The U.S. General Services Administration (GSA) maintains the M&IE rates and lodging rates for travel locations in the contiguous United States -
U.S. General Services Administration website:http://www.gsa.gov/portal/content/104877
Outside Contiguous United States (OCONUS):

(Alaska, Hawaii, and U.S. Territories/Possessions) -

The U.S. Department of Defense (DOD) maintains the M&IE rates and lodging rates for travel locations within Alaska, Hawaii and U.S. Territories/Possessions -
U.S. Department of Defense website: http://www.defensetravel.dod.mil/site/perdiemCalc.cfm

International Locations -

The U.S. Department of State (DOS) is the source for M&IE rates only for international travel locations-
U.S. Department of State website:https://aoprals.state.gov/web920/per_diem.asp
For international travel, payment for actual lodging expense is allowed.
Note for using federal websites:

For CONUS and OCONUS travel, if SMART is not accessible, employees may access subsistence rates through the federal websites. However interim federal website updates may occur subsequent to the semi-annual SMART updates each October 1 and April 1. CONUS rates are published on an annual basis but the annual file is updated periodically throughout the year with no interim files published. OCONUS and international rates are updated and published on a monthly basis. Be aware that any interim updates for CONUS or OCONUS locations are not valid until reflected in SMART. For international travel, only the October 1 and April 1 subsistence files should be used to locate the M&IE rates.

If employees utilize the federal websites to find M&IE and lodging rates, those rates should be used as follows:

Rates published October 1 - for travel occurring between October 1 and March 31 of each year.
Rates published April 1 - for travel occurring between April 1 and September 30 of each year.

Exception to Lodging Expense Limitations:

K.S.A. 75-3207a(f) provides that the daily lodging expense limitations established may be exceeded, upon approval by the agency head or designee, by the lesser of either: (1) an additional 50% of the applicable lodging expense limitation, or (2) the actual lodging expense incurred. 

These lodging limits continue to be applied to the lodging rate before taxes.  Thus, the amount reimbursed or paid for lodging expenses may exceed the established lodging limitation by as much as the amount of associated taxes. 

Conference Lodging qualified under K.A.R. 1-16-18a(e):
Agencies may authorize payment or reimbursement for actual lodging expenses when an employee is required or authorized to attend a conference, and the lodging rate exceeds the applicable lodging expense limitation (including the additional 50%).  The agency head must be provided with conference materials and rates.  These should be maintained with travel documentation. 

Reduced Meal Allowance:
If the cost of meals is included within the cost of registration fees or other fees and charges paid by the agency or supplied without cost by another party, the daily M&IE rate for the travel location should be reduced based on the percentages listed below.  For partial days, the quarter amount is calculated first and then the deduction percentage is applied. The M&IE deduction percentages are as follows: 

Breakfast - 15%

Lunch - 35%

Dinner - 50%

Same Day Meal Allowance:
Reimbursement for a same day meal, in accordance with K.A.R. 1-16-18(c)(3), is calculated as a percentage of the daily M&IE rate for the travel location, based on the approved meal, as follows: 

Breakfast - 15%

Lunch - 35%

Dinner - 50%

Queries in SMART 9.2 to Obtain M&IE Rates and Lodging Rates:
Queries will be available in SMART 9.2 to obtain CONUS and OCONUS M&IE and lodging locations and rates.  Historical locations and rates from each semi-annual update will be maintained in SMART.

DH:jm

Printable Version of 16-A-011

This informational circular serves to revise a reference to border city travel within Informational Circular 16-A-010 and provide additional out-of-state travel approval guidance.  The section of Informational Circular 16-A-010 entitled “Border City Travel – Discontinued” should be disregarded. 

Current Policy: 

Kansas Statute Annotated (KSA) 75-3208 generally prohibits out-of-state travel, but also includes broad exceptions for each branch of government.  Generally, the agency head is vested with authority to grant written approval for out-of-state travel.

Kansas Administrative Regulation (KAR) 1-16-18 established the border city travel rule for reimbursement of travel expenses incurred by state employees on official business.  Travel to border cities is reimbursed at in-state rates and does not require the specific out-of-state approval vested to the agency head through KSA 75-3208.  Effectively, the border city travel rule has provided a blanket out-of-state travel approval to designated cities/areas. 

Revised Policy Effective January 1, 2016: 

With the recent SMART system upgrade, and the forthcoming adoption of federal travel reimbursement rates, the border city concept is no longer applicable since travel reimbursement rates will be linked directly to the actual travel location.  Proposed amendments are underway to eliminate the border city travel rule from within current KARs. 

Note that on January 1, 2016, Policy Manual (PM) 3,904 Border City Designation – Border City Rule will no longer be effective and will be deleted. 

Note also that revisions to Policy Manual 10,001 Authorized Agency Officials and Approved Out-of-State Travel Locations/Areas and PM 3,817 Agency Travel Approval – Lodging Reimbursement Rates and Out-of-State Travel are being published and will be effective beginning January 1, 2016. 

Absent the formal blanket approval provided through the border city travel rule, best practice is for the agency head to grant written approval of all out-of-state travel on a trip by trip basis under KSA 75-3208.  See the Out-of-State Approval Requirements - Approval Method found in PM 3,817. 

To address concerns expressed by agencies that incur frequent out-of-state travel, under KSA 75-3728 the Department of Administration (DofA) has established an alternative method for out-of-state travel approval to designated locations/areas. 

The DA-115 form has been retitled as “Authorized Agency Officials and Approved Out-of-State Travel Locations/Areas”.  If an agency head chooses to establish an internal agency policy for all travel to approved out-of-state locations/areas, adopting such a policy is to be formalized by completing and submitting a revised DA-115.  The revised form includes a section for an agency to list the approved out-of-state locations/areas.  In order for the agency internal policy to be effective, it must be received by the DofA, Office of the Chief Financial Officer, Agency Audit Services Team and may be emailed to: ARPreaudit@da.ks.gov.  The DA-115 is the source for the DofA to verify agency head or designee approved out-of-state travel locations/areas.  The DofA will not require trip-specific out-of-state travel approval documentation for locations/areas identified on the DA-115. 

If the approved out-of-state travel locations change, a new DA-115 must be completed with all current approved locations/areas listed.  Each form submitted replaces in total the previous form. 

As an internal control review, agency internal policies established under this alternative method and documented on the DA-115 will be reviewed against actual travel locations. 

The revised DA-115 form can be obtained at the DofA Document Center website as follows: Document Center.    

PM 10,001 Authorized Agency Officials and Approved Out-of-State Travel Locations/Areas should be reviewed for additional information on the DA-115 form.

DH:jm

Printable version of 16-A-012

The Internal Revenue Service (IRS) has announced changes in standard mileage rates effective January 1, 2016.  The IRS rate for privately owned automobiles decreases to 54 cents per mile while the moving mileage rate decreases to 19 cents per mile. 

K.S.A. 75-3203a provides that the mileage reimbursement rates shall not exceed the lowest of the following:

1. the rate allowed by the IRS;
2. the rate used in preparing the governor’s budget report under K.S.A. 75-3721, and amendments thereto; or
3. any revision of the rate as specifically directed in appropriation acts of the legislature.

Thus, per the requirements of K.S.A. 75-3203a, the Department of Administration has reduced the rates for mileage reimbursement for the remainder of FY 2016, effective January 1, 2016:

• 54¢ per mile for privately owned automobile
• 51¢ per mile for privately owned motorcycle
• 19¢ per mile for moving mileage rate
• $1.17 per mile for privately owned airplane (based on air miles rather than highway miles)

DH:jm

Printable version of 16-A-013

This Informational Circular is to announce that the Employee Travel Expense Reimbursement Handbook and Employee Travel Expense Reimbursement Summary Tri-fold have been updated to reflect changes to travel subsistence rates effective for travel occurring on and after January 1, 2016.

In addition, the following Policy Manuals have been updated to reflect changes to travel policies announced previously and will be effective beginning January 1, 2016:

• PM 3,903 Employee Travel Expense Reimbursement Handbook
• PM 3,607 Employee Moving Expense Reimbursement
• PM 10,754 Prepaid Turnpike Accounts

Note that on January 1, 2016, Policy Manual 3,904 Border City Designation – Border City Rule is no longer effective and will be deleted.

In addition, note that the DA-37 form has been retitled as “Reduced Subsistence Allowance” and will allow an agency to pay an employee a reduced amount for M&IE allowance or lodging expense with prior approval of the agency head or designee.

Procedures for the revised DA-37 can be found in the Employee Travel Expense Reimbursement Handbook.  The revised DA-37 form can be obtained at the DofA Document Center website as follows: http://www.admin.ks.gov/resources/document-center.    

SMART query to obtain CONUS subsistence rates:
A query “KS_EX_CONUS_RATES” is available in SMART 9.2 which provides the effective CONUS and OCONUS travel locations and subsistence rates. SMART will be updated semi-annually with the October 1 and April 1 subsistence rates.

DH:jm

Printable version of 16-A-014

This Informational Circular is issued to clarify that, for state employee travel, the subsistence reimbursement rate is determined by the location of the official state business.  The M&IE and lodging rates for the official state business location are used for subsistence reimbursement for the entire trip. This includes travel where lodging may not be available at the official business location.  As a reminder, for travel occurring January 1, 2016 and thereafter, the standard subsistence rate is used unless the travel location is specified as a non-standard area, in which case the subsistence rate for that non-standard area is used.

When travel consists of official state business in several locations, including both a standard rate location and a non-standard area rate location, subsistence rates are adjusted as follows:

• The subsistence rate changes to the new appropriate rate for the subsequent official business location beginning with the quarter day in which the employee arrives at the subsequent official business location.

• If there are multiple business locations in the same quarter, the rate for the entire quarter will be based on the last official business location within that quarter.

The Originating Location field should list the employee’s official station or domicile. To ensure the appropriate rates are applied in SMART, the Location field should list the official business location.  This includes subsistence expense lines for travel on the day of return to the official station or domicile.

Agencies are reminded of two exceptions related to subsistence reimbursement limitations:

• The established daily lodging expense limitations may be exceeded, upon approval by the agency head or designee, by the lesser of either: (1) an additional 50% of the applicable lodging expense limitation, or (2) the actual lodging expense incurred.
• An agency may pay an employee a reduced amount for M&IE allowance or lodging expense with prior approval of the agency head or designee.  The agency should complete form DA-37 Reduced Subsistence Allowance and obtain agency head or designee approval signature and date in advance of the beginning of the date of the travel event.

See the Employee Travel Expense Reimbursement Handbook for additional information: State Employee Travel Center.

DH:jm

Printable Version of 16-A-015

Approval: DeAnn Hill (Original Signature on File)

Summary: Revised Policy Manuals (PM) 3,351, PM 4,272, PM 10,752, PM 10,802, PM 14,002 and Forms DA-152, DA-153 and DA-154

This Informational Circular is to announce that the following Policy Manuals (PM) have been revised and are effective immediately:

• PM 3,351 Official Hospitality Payment Guidelines
• PM 4,272  Classification of Funds
• PM 10,752  Petty Cash Fund Policy
• PM 10,802  Imprest Fund Policy
• PM 14,002  Fiscal Year End Closing Including Fiscal Year Determination

In addition, the following forms associated with PM 10,802 Imprest Fund Policy have been revised as well:

• Form DA-152  Checkbook Record – Imprest Fund
• Form DA-153  Monthly Imprest Fund Reconciliation
• Form DA-154  Imprest Fund Application / Maintenance

Agencies should take special note of the more significant policy changes included in PM 10,752 and PM 10,802 as follows:

Two-step process to record expenditures and replenish the fund –
Prior to the 15^th day of the following month, agencies must do the following:

• Replenish their petty cash and imprest funds.
• Record petty cash and imprest fund expenditures to the appropriate vendors.
• The expenditures are to be recorded in, and a replenishment voucher drawn from, the budgetary fund(s) from which payments would have been paid if they had not been paid from the petty cash or imprest fund. 
• Agencies must follow procedures in the following SMART Job Aids -
  • Imprest Fund-Petty Cash Fund – Record Expenditures by Creating a Voucher
  • Imprest Fund-Petty Cash Fund – Replenish Fund by Creating a Voucher.

• This two-step process is recommended to be followed currently and will be required beginning July 1, 2017.

Fiscal Year End Encumbrance –
For petty cash and imprest fund expenditures not expected to be recorded in SMART by the fiscal year end cutoff for accounts payable vouchers, an encumbrance must be created using the appropriate budget period and funding. 

• Either a purchase order (PO) or a general ledger encumbrance (GL Encumbrance) is created as appropriate:
  • a purchase order (PO) is created when the vendor is known or when the agency is the vendor (e.g., for a payroll error correction);
  • a general ledger encumbrance (GL Encumbrance) is created for non-vendor specific encumbrances.
• The fiscal year encumbrance process is recommended for FY 2016 fiscal year end and will be required beginning July 1, 2017.

The revised Policy Manuals can be obtained at the Department of Administration (DofA) website at: http://www.admin.ks.gov/offices/chief-financial-officer/policy-manual.

The revised forms can be obtained at the DofA website at: http://www.admin.ks.gov/resources/document-center.    

The SMART Job Aids referenced in this informational circular can be obtained at the DofA website at: https://smartweb.ks.gov/training/accounts-payable.

Printable version of 16-A-016

DH:jm

K.S.A. 75-3002 establishes the state fiscal year as commencing on the first day of July in each year and closing on the thirtieth day of June of the succeeding year.  In order for activity for fiscal year 2016 to be completed by June 30^th, the cutoff date for most agency processing will be Monday, June 27, 2016 at 6:00 PM.  

SMART will be closed to agencies from Tuesday, June 28, 2016 through Thursday, June 30, 2016 so the SMART team can review and finalize all outstanding FY 2016 business.  SMART will also be closed on Friday, July 8, 2016 to run the fiscal year 2016 closing processes and verify the fiscal year end journals were completed correctly.

The workload for both your agency and the SMART Team increases greatly during the Fiscal Year end closing period. In order to facilitate successful year end processing, reminders and guidelines for agencies are included below. Please note: to give agencies as much processing time as possible, SMART will be open to agencies on Saturday, June 25, 2016 from 7:00 AM – 6:00 PM. Daytime and nightly batch processes will run. Service Desk and SMART production support will be available. No pay cycles will be run.

It is necessary for agency accounting staff to be available during the day Tuesday, June 28, 2016 through Thursday, June 30, 2016 in case assistance is needed as the SMART Team is preparing the system for closing.

Nightly batch processes will run beginning at midnight the night of Thursday, June 30, 2016. This will allow transactions on interface files for fiscal year 2017 to be entered in SMART. SMART will be open on Friday, July 1, 2016 for fiscal year 2017 activity for all modules at 7:00 AM or as soon as nightly batch has completed.

General Items

The cutoff for interface files into SMART for fiscal year 2016 will be 5:00 PM on Saturday, June 25, 2016 for Expenditures and 5:00 PM on Monday, June 27, 2016 for Deposits.

All FY 2016 transactions must be successfully edited, budget checked, matched, agency approved, dispatched, and submitted into workflow for central approval, as appropriate, by 6:00 PM on Monday, June 27, 2016. After this time, SMART will be closed to all agency users, and the SMART clean-up process will begin on Tuesday, June 28, 2016.

State agencies should be reviewing financial data and processing any necessary corrections before the end of the fiscal year. Please consult the month end checklists available on the SMART website, http://smartweb.ks.gov/home/month-end-checklists/, to assist with this review.  There are additional queries listed in the REFERENCES section at the end of this document that may also be helpful. The SMART Team is actively working to assist agencies in preparation of fiscal year end. Service Desk tickets will be sent to agencies as outstanding or incomplete transactions are found. The transactions identified by the SMART Team will likely be just a subset of the outstanding, incomplete or incorrect transactions agencies will identify between now and the end of the fiscal year.  

General Ledger Encumbrances (non-supplier specific encumbrances) will be used to encumber fiscal year 2016 budget in limited circumstances. The GL-F016 GL Encumbrance Request Form is located on the Department of Administration website at the following link:  http://www.admin.ks.gov/resources/document-center

Complete the GL-F016 GL Encumbrance Request Form and attach it to a Service Desk Ticket by 5:00 PM on Thursday, June 23, 2016. Provide a description of the obligation and the reason the supplier is not known or the Purchase Requisition/Order process is not practical for encumbering budget. Requests will be routed to the Division of the Budget (DoB) for approval.

GL Encumbrance Journals may be keyed by the Office of the Chief Financial Officer staff into SMART prior to receiving DoB approval in order to give each agency the opportunity to review the document and its effects in SMART prior to close.  Agencies will be notified via Service Desk ticket of the Journal ID(s). In the event DoB denies the GL encumbrance, the affected agency will be notified via Service Desk ticket and the document will be deleted from SMART.

Budget Period 2016 expense, encumbrance, and revenue data from SMART Commitment Control Ledger groups (CC_IBARS_E, CC_IBARS_R) will be electronically submitted to the Division of the Budget by Monday, August 1, 2016 for loading into the IBARS system.

The dates provided in this document that relate to fiscal year closing and opening activities will be revised, as necessary, by the Office of the Chief Financial Officer.  Revisions to SMART processing dates will be sent via email to all users subscribed to the SMART listserv (subscribe at http://www.da.ks.gov/Gov/listserv.htm).  After issuance, SMART Announcements are also posted on the SMART Website at http://smartweb.ks.gov/announcements/impt-announce

Any revisions to payroll processing dates will be issued as a SHARP message to subscribers of the SHARP listserv (subscribe at http://www.da.ks.gov/Gov/listserv.htm).  

Accounts Payable

The final day agencies can enter a voucher in accounts payable for FY 2016 business will be Monday, June 27, 2016.  Here is additional information that will help you with accounts payable:

Please refer to PM 14,002 to help determine the appropriate processing period for each type of account code activity.

For agencies that upload and submit vouchers via INF50 (Voucher Spreadsheet Upload), the final INF50 for FY 2016 business must be submitted by 1:00 PM on Monday, June 27, 2016.

In order for accounts payable transactions to complete for FY 2016, online vouchers must be entered, matched, budget checked and approved by 6:00 PM on Monday, June 27, 2016.

Any FY 2016 accounts payable item that cannot be entered into SMART by the cutoff date must be encumbered by using a purchase order.

Interfacing agencies must have their final INF02 (Inbound Voucher) for FY 2016 business submitted by 5:00 PM on Saturday, June 25, 2016.

Interfacing agencies may submit their INF02 files for FY 2017 business in advance with an accounting date on or after July 1, 2016. The files received and processed prior to July 1^st will be in voucher build error until FY 2017 is opened. At that time, vouchers will be built and will be eligible for pay cycle once they are matched, budget checked, and approved.

Any voucher that has not been successfully edited, matched, budget checked and approved by 6:00 PM on Monday, June 27, 2016 will be deleted by the SMART Team.

Travel Authorizations 

K.S.A. 75-3208 requires approval for all out-of-state travel. One method of approval is the use of a Travel Authorization. Travel Authorizations are not required, but are recommended as a best practice for all agency travel. Travel Authorizations must be entered prior to the dates of travel.

All in-state and out-of-state travel occurring in FY 2016 must be reimbursed using FY 2016 funds. If an expense report will not be submitted and fully approved by 6:00 PM on Monday, June 27, 2016, a Travel Authorization is required to encumber funds for all travel expenses reimbursable to an employee for travel occurring in FY 2016.

If you need to encumber money for Prepaid expenses that will not be paid by close of FY 2016, you will need to create a purchase order for the prepaid items.

Travel Authorizations for FY 2017 shall not be entered until FY 2017 is open on Friday, July 1, 2016.

Cash Advance

Cash Advances must be reconciled by 6:00 PM on Monday, June 27, 2016.

Expense Reports

Expense Reports chargeable to FY 2016 must be submitted and fully approved in SMART by 6:00 PM on Monday, June 27, 2016.  For any travel that is chargeable to FY 2016 that cannot be processed by the deadline, the agency must process a Travel Authorization. 

Per K.S.A. 75-3201 and as stated in PM 3,903 --Employee Travel Expense Reimbursement Handbook, employees who travel are to submit paperwork for their expenses at least once a month.  

If agency employees have expense reports for travel occurring in FY 2016, and there is no approved travel authorization or GL encumbrance in SMART, the use of the Prior Fiscal Year Claims Process as described in PM 11,966 is required. The Policy Manual can be found here.

Any expense report that has not been fully approved by 6:00 PM on Monday, June 27, 2016 will be deleted by the SMART Team.

Imprest Funds

Expenditures paid from imprest funds dated on or before June 30, 2016 must be recorded in SMART prior to the deadline for payment voucher submission. For imprest fund expenditures not expected to be recorded in SMART by the fiscal year end cutoff for payment vouchers, a purchase order (PO) or general ledger encumbrance (GL encumbrance) must be created as appropriate using the correct budget period and funding. Prior to July 15, 2016, the agency must replenish the imprest fund and record expenditures to the appropriate suppliers (using the PO or GL encumbrance). The expenditure fiscal year determination contained in PM 14,002 also applies to imprest funds. Refer to PM 10,802 for additional information regarding imprest funds. PM 10,802 can be found here.

Petty Cash Funds

Petty cash procedures are the same as those set forth in the Imprest Funds section above. The expenditure fiscal year determination contained in PM 14,002 also applies to petty cash funds. Refer to PM 10,752 for additional information regarding petty cash funds. PM 10,752 can be found here.

Purchasing

To encumber monies for FY 2016, requisitions must be sourced to purchase orders (POs) and the purchase orders must be approved, budget checked and dispatched by 6:00 PM on Monday, June 27, 2016. 

If an Agency needs to process a requisition using FY 2017 funds prior to July 1, 2016 the agency should take the following steps:

• Starting Monday, May 2, 2016 enter the requisition and select the ‘Save & preview approvals’ option.
• Starting Wednesday, June 1, 2016 submit a Service Desk ticket requesting the budget date on the requisition be changed to a FY 2017 date.
• Once the budget date has been changed, select the ‘Save & submit’ button on the requisition.

The requisition will source to a PO; however, the PO will not pass budget check until the FY 2017 appropriations budget has been loaded into SMART.

Link to Procurement Informational Circular 16-03, Schedule for Submission of Purchases Requisitions to Close Fiscal Year 2016 and begin Fiscal Year 2017 Procurement Informational Circulars

Purchase orders entered after 6:00 PM on Monday, June 27, 2016 will NOT be back dated to a 2016 Fiscal Year budget date.

Procurement Cards

Agencies are encouraged to reconcile P-Card transactions on a daily basis, especially during the month of June.  Final FY 2016 P-Card transactions will be available for reconciliation on Monday, June 20, 2016.  P-Card transactions must be verified and approved by 6:00 PM on Saturday, June 25, 2016 to be eligible for P-Card voucher build on Monday, June 27, 2016.

The P-Card voucher build process will run each day during the week beginning Monday, June 20, 2016. The final P-Card voucher build process for FY 2016 will run the morning of Monday, June 27, 2016.  In order for P-Card vouchers to complete for FY 2016, they must be approved and successfully budget checked by 6:00 PM on Monday, June 27, 2016.  Any P-Card voucher that has not been successfully edited, matched, budget checked and approved by 6:00 PM on Monday, June 27, 2016 will be deleted by the SMART Team.

Asset Management

All FY 2016 asset transactions must be entered by 6:00 PM on Monday, June 27, 2016. This includes additions, adjustments, transfers, and retirements, as well as updating costs for CIP assets. Please see the AM Month End Checklist (linked at the end of this document) for links to applicable training materials covering these financial transactions.

Note that for new assets being entered in SMART, the Transaction Date will be the In Service Date. The KS_AM_VCHRS_WITH_54XXXX_ACCT query in the HELPFUL QUERIES section of this circular is designed to help identify vouchers processed during a specified timeframe that utilized 54xxxx (capital outlay) account codes. 

For agencies utilizing integration, all outstanding Interface ID’s for FY 2016 must be processed by 6:00 PM on Monday, June 27, 2016. If an asset is acquired by your agency at the end of the fiscal year and the voucher will not be posted by Thursday, June 23, 2016, please enter the asset(s) manually via Express Add. Any remaining FY 2016 Interface IDs after Monday, June 27, 2016 will be deleted by the SMART Team. 

Additional information can be found in the Job Aid under the Assets Month/Year End Reconciliation Section: Asset Management Preparing for Fiscal Year End at http://smartweb.ks.gov/training/asset-management

Project Costing

All billing worksheets where revenue should be recognized in FY 2016 should be approved or written-off and any related deposits completed by 6:00 PM on Monday, June 27, 2016.

It is recommended that all billing worksheets created prior to April 1, 2016 be reviewed and processed by Friday, May 27, 2016.  The KS_PC_BILLING_WORKSHEET query in the HELPFUL QUERIES section of this circular is designed to help identify unprocessed billing worksheets by accounting date.

Accounts Receivable

Fiscal year 2016 deposits must be entered as follows:

Deposits should be entered, agency approved, and budget checked prior to 6:00 PM on Monday, June 27, 2016.

Tuesday, June 28, 2016 through Thursday, June 30, 2016 online entry into SMART will be closed to agencies.

Deposits received Tuesday, June 28 through Thursday, June 30 shall be processed as follows:

Credit card receipts will load into SMART as scheduled at 8:00 AM Tuesday, June 28, 2016 through Thursday, June 30, 2016. See below for instruction on Deposit Adjustments for Credit Card Clearing Funds.

For agencies that upload and submit deposits via INF43 (Excel Deposit Upload) and INF44 (Inbound Deposit) -- continue to upload and submit FY 2016 deposits via INF43 and INF44 until 1:00 PM on Thursday, June 30, 2016. SMART AR Deposit jobs will run according to the regular hourly schedule.  If you process an INF43 or INF44, please e-mail the State Treasurer’s Cash Management Group at cash@treasurer.ks.gov to notify them of the Business Unit, Deposit ID (if known), and deposit total so they can approve the transaction in SMART.  STO will perform their normal approval and release at 3:00 PM Tuesday, June 28, 2016 through Thursday, June 30, 2016.

For agencies that do not use the INF43 or INF44 processes and need to make a deposit while SMART is unavailable -- the State Treasurer’s Office has created the Temporary Deposit Form to allow you to continue to deposit funds. Using the Temporary Deposit Form is preferable to holding checks and cash at your agency, and allows you to meet the requirement to deposit funds collected each day. Please bring the completed form, along with the cash and checks (calculator tape attached) to the State Treasurer’s Office.  June 2016 Accounts Receivable will be reopened on Friday, July 1, 2016, and will remain open through Tuesday, July 5, 2016 to allow agencies to enter Deposits in transit with an accounting date of June 30, 2016 using the following instructions: 

“Deposits in transit” are specifically defined as Deposits made with the State Treasurer on Tuesday, June 28, 2016, Wednesday, June 29, 2016 or Thursday, June 30, 2016 using the Temporary Deposit Form.

Agencies will enter deposits, for the “deposits in transit”, using an accounting date of June 30, 2016.  The accounting date of 6/30/2016 must be entered on the Totals tab in addition to being entered on the Payments tab for each deposit line. “Deposits in transit” should be recorded using a revenue account code (4XXXXX).  A “deposit in transit” cannot debit expenditures.

Please be aware that deposits with an accounting date of June 30, 2016 and processed in July 2016 will impact the General Ledger for FY 2017.

Deposits with a June 30, 2016 accounting date that have not been agency approved by 3:00 PM on Tuesday, July 5, 2016, will be deleted by the SMART Team.

Deposit Adjustments for Credit Card Clearing Funds:

Deposit adjustments are required for credit card deposits to recognize the revenue and move the monies out of the credit card clearing funds and into the appropriate funds.

All deposits received prior to June 27, 2016 that require deposit adjustments, such as those deposits into clearing funds for credit card receipts, must have deposit adjustments entered in SMART by 6:00 PM on Monday, June 27, 2016.

The credit card deposits will load into SMART as scheduled at 8:00 AM on Tuesday, June 28, 2016, Wednesday, June 29, 2016 and Thursday, June 30, 2016 when agencies do not have access to SMART.

On Friday, July 1, 2016 and Tuesday, July 5, 2016 the SMART Accounts Receivable module will be reopened to agency users to complete June 2016 (FY16) transactions. Use the instructions below for any remaining prior year deposit adjustments that need to be completed:

1. Follow SMART job aid “Credit Card/E-Check Deposits – Revenue Only” on how to locate credit card deposits and how to complete the deposit adjustments.
2. On the deposit adjustment Totals tab, the Accounting Date must be 6/30/2016.
3. On the deposit adjustment Payments tab, the Accounting Date on each transaction line must be 6/30/2016
4. The SMART Accounts Payable module for FY16 will be closed by July 1, 2016, preventing the use of expenditure account codes in the deposit adjustment transactions.
   1. To account for credit card fees agencies should do the following:
      1. One deposit adjustment to recognize all revenue in the appropriate fund for fiscal year 2016.
         • If the original deposit adjustment is net of credit card fees that were charged to the agency, then the deposit adjustment must be grossed up to recognize all revenue.  (Example: $95.00 on original deposit + $5.00 credit card fee not recorded on deposit = $100.00 recognized as revenue on deposit adjustment.)
      2. A second deposit adjustment processed in FY17 Accounts Receivable module to recognize any credit card fee expenses
   2. For limited agencies who reduce their expenditures for charges that are passed on to other agencies:
      1. Instead of reducing expenditures, the agency must recognize the revenue by using a revenue account code such as 462110 – Recovery of Current Fiscal Year Expenditures.

Please be aware that deposit adjustments with an accounting date of June 30, 2016 and processed in July 2016 will impact the SMART General Ledger for FY 2017. This may cause reconciling items for agencies between the Accounts Receivable module and the General Ledger module.

Deposit adjustments with a June 30, 2016 accounting date that have not been agency approved by 3:00 PM on Tuesday, July 5, 2016, will be deleted by the SMART Team.

Interfunds

The accounting dates on both the voucher and the deposit must fall within the same fiscal year.

Both sides of the interfund must be successfully edited, matched, budget checked and approved by 6:00 PM on Monday, June 27, 2016.   ALL remaining FY 2016 interfund deposits and interfund vouchers that have not been successfully edited, matched, budget checked and approved by 6:00 PM on Monday, June 27, 2016 will be deleted by the SMART team.

GL Journals

In order to affect fiscal year 2016, all GL Journals must be successfully edited, budget checked, agency approved, and submitted into workflow for central approval by 6:00 PM on Monday, June 27, 2016.

Interfacing agencies must have their final INF06 (Inbound GL Journal) for FY 2016 business submitted by 5:00 PM on Saturday, June 25, 2016.

GL Spreadsheet Journals can be uploaded manually until 3:00 PM on Monday, June 27, 2016.  The journals must be edited, budget checked, approved and submitted for central approval by 6:00 PM on Monday, June 27, 2016. 

Any online, spreadsheet, or interface FY 2016 GL Journals with an accounting date of 6/30/2016 or before, that do not have agency approvals by 6:00 PM on Monday, June 27, 2016, will be considered an abandoned transaction and will be deleted by the SMART team.

Commitment Control

FY 2017 Budget Journals for agencies who use “Track with Budget” must be entered prior to any FY 2017 pre-encumbrance (if applicable), encumbrance, expenditure, or revenue transactions are entered into SMART.  Otherwise the transactions will fail budget check.

System Availability

Normal hours of availability are shown below.

SMART

Monday through Saturday, 7:00 AM to 6:00 PM.  The cutoff for receiving SMART interface files is 5:00 PM Monday through Friday.

Sunday, 1:00 PM through Monday, 6:00 PM.  Not all Sundays are open.  Please refer to the SMART Calendar: http://www.smartweb.ks.gov/home/calendar

SMART availability during fiscal year end processing.

Monday, June 20, 2016 through Saturday, June 25, 2016, 7:00 AM to 6:00 PM.  The cutoff for receiving SMART interface files is 5:00 PM Monday through Saturday.

Sunday, June 26, 2016, 1:00 PM through Monday, June 27, 2016, 6:00 PM.

SMART Closed Tuesday, June 28, 2016 through Thursday, June 30, 2016.

Friday, July 1, 2016 and Saturday, July 2, 2015, 7:00 AM to 6:00 PM (7:00 AM availability is contingent upon the completion of nightly batch on these days). 

Monday, July 4, 2016, 7:00 AM to 6:00 PM.  SMART daytime and nighttime batch processes will not run.

Tuesday, July 5, 2016 through Thursday, July 7, 7:00 AM to 6:00 PM (normal availability and processing).

SMART Closed Friday, July 8, 2016

Saturday, July 9, 2016, 7:00 AM – SMART resumes normal availability and processing.

Kansas Service Desk

Monday through Friday, 8:00 AM to 5:00 PM.
Saturdays, Sundays, and holidays, not available.
Saturday, June 25, 2016, available 8:00 AM to 5:00 PM for fiscal year end processing. 

SHARP

Monday through Friday, 7:00 AM to 6:00 PM
Saturday, 1:00 PM to 9:00 PM
Sunday, 1:00 PM to 6:00 PM

Accounts Receivable (Deposit) Processing when SMART is closed to users on Friday, July 8, 2016:

SMART will be closed to agency users on Friday, July 8, 2016 to run the fiscal year close processes.  The following process should be followed to make FY 2017 deposits:

The State Treasurer’s Office will have limited access to SMART to allow them to process deposits.

If you are expecting funds to be wired to the State Treasurer on Friday, July 8, 2016, please enter and approve the appropriate deposit in SMART by 6:00 PM on Thursday, July 7, 2016. When the wire transfer arrives at the Treasurer’s Office, they will match the funds to the appropriate deposit transaction, and complete the State Treasurer Approval on the deposit.  This deposit will then be recorded in SMART as usual during the next nightly batch.  

Agencies may continue to upload and submit FY 2017 deposits via INF43 (Excel Deposit Upload) and INF44 (Inbound Deposit) on Friday, July 8, 2016.  SMART AR Deposit jobs will run at 10:00 AM, Noon and 2:00 PM.  If you process an INF43 or INF44, please e-mail the State Treasurer’s Cash Management Group at cash@treasurer.ks.gov to notify them of the Business Unit, Deposit ID (if known), and deposit total so they can approve the transaction in SMART. 

For agencies that do not use the INF43 or INF44 processes and need to make a deposit while SMART is unavailable -- the State Treasurer’s Office has created the Temporary Deposit Form to allow you to continue to deposit funds. Using the Temporary Deposit Form is preferable to holding checks and cash at your agency, and allows you to meet the requirement to deposit funds collected each day. Please bring the completed form, along with the cash and checks (calculator tape attached) to the State Treasurer’s Office.  

On Monday, July 11, 2016 (when SMART is again open for business), agencies will need to enter and approve the appropriate “temporary” Deposit.

Credit Card Receipts will load into SMART as scheduled at 8:00 AM on Friday, July 8, 2016. Agencies will be able to enter the appropriate Deposit Adjustments on Monday, July 11, 2016.

Any questions about this process should be addressed to Brenda Linder, (785) 296-4144, or e-mail brenda@treasurer.ks.gov.

REFERENCES

FY 2016 Close Day by Day Summary – Attached

Schedule for Submission of Purchases Requisitions to Close Fiscal Year 2016 and begin Fiscal Year 2017 Procurement Info Circulars

SMART Training Resources -- http://www.smartweb.ks.gov/home, click the Training link

Month-End Checklists:  http://smartweb.ks.gov/home/month-end-checklists/Month End Checklists
            Accounts Receivable Month End Checklist
            AP Month End Checklist (includes Travel and Expense Month End Checklist)
            Asset Management Month End Checklist
            GL Month End Checklist
            PO Month End Checklist

Forms:
Temporary Deposit Form
GL Encumbrance Request Form 

HELPFUL QUERIES: 

Navigation: Reporting Tools>Query>Query Viewer

Travel and Expense

UNPROCESSED_TRAVEL_AUTHS – Users will enter a date range based upon the accounting date of the Travel Authorization.  This will typically be the date the Travel Authorization was created.  The query returns all Travel Authorizations that have not fully processed in the system sorted by TA Status, Travel Date From and Travel Auth ID number.  Note** Travel Authorizations with a valid budget status have encumbered budget.

UNPROCESSED_EXPENSE_REPORTS – Users will enter a date range based upon when the Expense Report was created.  The query returns all unprocessed Expense Reports sorted by Status and Report ID. 

Accounts Payable

UNPROCESSED_VOUCHERS – Users will enter a date range based upon the accounting date of the vouchers.  This will typically be the date the voucher was created.  The query returns all vouchers that have not fully processed in the system sorted by Voucher ID. 

KS_APAR_PENDING_INTRFNDS -This query will show pending Interfunds, both Initiated and Received by your agency, that are tied to a Voucher or Deposit. 

KS_INTRFNDS_APPR_NOT_POSTED - User will enter Business Unit. The query will return results for either side (deposit or voucher) to which your agency is a party, and at least one of the following is true: 1) Voucher is not posted 2) Payment is not posted 3) Deposit is not posted. This query should give you an indication of transaction exceptions that may need further review. Depending on when you run the query, you may have interfunds that were approved in the current day’s activity that have not yet posted in the nightly batch. If the deposit or voucher approval date reflects the current or previous day’s date, you can likely ignore it.  We recommend running it first thing in the morning before new approvals are registered to avoid extraneous results. We recommend running this query at least monthly and more frequently as fiscal year end close approaches.

Additional assistance can be found in the following Job Aid: Voucher will not Process for Payment

Asset Management

KS_AM_VCHRS_WITH_54XXXX_ACCT - This query displays a list of all vouchers within a specified date range with 54XXXX account codes. You should use the Asset Inventory List report in conjunction with this query to make sure all capital assets have been added to SMART.

Project Costing

KS_PC_BILLING_WORKSHEET – This query shows a list of all unprocessed billing worksheets that can be either billed or written off to help get Federal Funds into a positive cash position by year-end.

General Ledger

KS_GL_JOURNALS_BUDGET_ERROR – This query displays any GL Journals in Budget Check error.

KS_GL_JOURNALS_ERRORS – This query will show GL Journals in Edit error and cannot be posted.

Purchasing

KS_PO_NEGATIVE_PO_LINES - This query was designed to identify those POs that have a negative PO line.  Negative PO lines create unauthorized budget.  Agencies must cancel or close any negative PO lines currently in SMART prior to close of business on June 27, 2016.

Job Aid: KS_PO_NEGATIVE_PO_LINES

KS_PO_PCRD_VCHR_DELETED - This query was designed to identify those P-Card vouchers/lines that have been deleted.  Agencies should not delete P-Card vouchers/lines.  The deletion of a P-Card voucher/line does not update the P-Card transaction; consequently, the P-Card transaction retains a voucher ID and voucher line number that no longer exists in SMART.  This gives the appearance that the P-Card transaction has not been paid.

Job Aid:  KS_PO_PCRD_VCHR_DELETED

KS_PO_REQS_OPEN_PNDNG – This query was designed to identify those requisition lines that need to have some action taken by end of day June 27, 2016. 

Job Aid:  KS_PO_REQS_OPEN_PNDNG

FY 2016 Close Day by Day Summary

Printable version of 16-A-017

Informational Circular (IC) 16-A-016 was issued on April 4, 2016 to announce Policy Manuals (PM) and forms that have been revised and are effective immediately.  IC 16-A-018 is issued to correct two dates listed in IC 16-A-016 as follows:

• Two-step process to record expenditures and replenish imprest and petty cash funds is recommended to be followed currently and will be required beginning July 1, 2016.
• The Fiscal Year End Encumbrance process for imprest and petty cash funds is recommended for FY 2016 fiscal year end and will be required beginning July 1, 2016.

IC 16-A-016 was issued to announce that the following Policy Manuals have been revised and are effective immediately:

• PM 3,351 Official Hospitality Payment Guidelines
• PM 4,272  Classification of Funds
• PM 10,752  Petty Cash Fund Policy
• PM 10,802  Imprest Fund Policy
• PM 14,002  Fiscal Year End Closing Including Fiscal Year Determination

In addition, the following forms associated with PM 10,802 Imprest Fund Policy have been revised as well:

• Form DA-152  Checkbook Record – Imprest Fund
• Form DA-153  Monthly Imprest Fund Reconciliation
• Form DA-154  Imprest Fund Application / Maintenance

Agencies should take special note of the more significant policy changes included in PM 10,752 and PM 10,802 as follows:

Two-step process to record expenditures and replenish the fund –
Prior to the 15^th day of the following month, agencies must do the following:

• Replenish their petty cash and imprest funds.
• Record petty cash and imprest fund expenditures to the appropriate vendors.
• The expenditures are to be recorded in, and a replenishment voucher drawn from, the budgetary fund(s) from which payments would have been paid if they had not been paid from the petty cash or imprest fund. 
• Agencies must follow procedures in the following SMART Job Aids -
  • Imprest Fund-Petty Cash Fund – Record Expenditures by Creating a Voucher
  • Imprest Fund-Petty Cash Fund – Replenish Fund by Creating a Voucher.

• This two-step process is recommended to be followed currently and will be required beginning July 1, 2016.

Fiscal Year End Encumbrance –

• For petty cash and imprest fund expenditures not expected to be recorded in SMART by the fiscal year end cutoff for accounts payable vouchers, an encumbrance must be created using the appropriate budget period and funding. 
• Either a purchase order (PO) or a general ledger encumbrance (GL Encumbrance) is created as appropriate:
  • a purchase order (PO) is created when the vendor is known or when the agency is the vendor (e.g., for a payroll error correction);
  • a general ledger encumbrance (GL Encumbrance) is created for non-vendor specific encumbrances.
• The fiscal year encumbrance process is recommended for FY 2016 fiscal year end and will be required beginning July 1, 2016.

The revised Policy Manuals can be obtained at the Department of Administration (DofA) website at: http://www.admin.ks.gov/offices/chief-financial-officer/policy-manual.

The revised forms can be obtained at the DofA website at: http://www.admin.ks.gov/resources/document-center.  

The SMART Job Aids referenced in this informational circular can be obtained at the DofA website at: http://smartweb.ks.gov/training/accounts-payable.

Printable version of 16-A-018

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