16-A-018 Revised Policy Manuals and Forms - CORRECTED (Supersedes 16-A-016) (April 11, 2016)

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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