Kansas Department of Administration

FY 1997

97-a-001 - Budgetary Worksheet Reports (August 5, 1996) (superseded by 98-a-004)

DEPARTMENT OF ADMINISTRATION
(913) 296-2311
Division of Accounts and Reports

BILL GRAVES
Governor

SHIRLEY A. MOSES
Director of Accounts and Reports
900 S.W. Jackson, Room 351S Landon State Office Building
Topeka, KS 66612-1248
FAX (913) 296-6841

INFORMATIONAL CIRCULAR NO: 97-A-001
DATE: August 5, 1996
SUBJECT: Budgetary Worksheet Reports
EFFECTIVE DATE: Immediate
A & R CONTACT: Customer Services Team, 296-2128

SUMMARY: Transmittal of budget worksheet reports for preparation of fiscal year 1998 budget.

Enclosed are three budget worksheet reports prepared from the records of the Division of Accounts and Reports. A brief explanation of these reports follows.

The budget worksheets have a category of expenditures listed as an informational total titled "Non-reportable Expenditures". Non-reportable expenditures have been defined by the Division of the Budget as expenditures which represent duplication within an agency's budget. The following expenditures shown on the DA-406 budget worksheet, if made from other than the State General Fund (1000), are classified as non-reportable.

5150 -- Local City-County Sales Tax Payments
5170 -- State Aid to Other State Agencies
5180 -- Local City-County Transient Guest Tax Payments
All -- 7XXX Primary Classification Object Codes

The first two enclosed reports (DA-406 and DA-410 worksheets) contain budgetary expenditures for fiscal year 1996 classified by program and by object of expenditure. These reports can be used by the agency in preparing the "Expenditures" form (DA-406) and the "Plan for Financing" form (DA-410) for submission to the Division of the Budget, as part of the fiscal year 1998 budget. The third report (DA-404 worksheet) can be used in preparing the "Resource Estimate by Fund" (form DA-404) for the fiscal year 1998 budget.

INFORMATIONAL CIRCULAR NO. 97-A-001
August 5, 1996
Page 2

The expenditures shown in the DA-406 and DA-410 worksheet reports conform to the definition of expenditures used for budget purposes; i.e., "all expenses, liquidated and unliquidated encumbrances, that were charged against an agency's funds during the particular fiscal year regardless of the fiscal year in which cash disbursements for these expenses were made". Expenditures reported for fiscal year 1996 include the outstanding encumbrances at June 30, 1996, reported on your "List(s) of
Outstanding Obligations" (form DA-118), printers requisitions, unpaid purchase orders, contract cover sheets, as well as the actual cash disbursements charged to the fiscal year. The combination of actual cash expenditures and unpaid encumbrances at June 30 represents the total budgetary expenditures.

Reappropriations of savings authorized by 1996 Senate Bill 95, Section 146, are reflected as separate summary sub-accounts in the Budget worksheets for both appropriated and special Revenue funds.

If errors in program or object classification have been made in either cash expenditures or the coding of outstanding encumbrances, it will be necessary for the agency to correct those errors prior to preparing fiscal year 1996 expenditure data for inclusion on all of the forms (DA-402, DA-404, DA-406, DA-410 and DA-412) of the fiscal year 1998 budget submission.

Shirley A. Moses, Director Gloria M. Timmer, Director
Division of Accounts and Reports Division of the Budget
SAM:PK:wem

Enclosures
INFORMATIONAL CIRCULAR NO. 97-A-001
August 5, 1996
Page 3
The explanation for appropriations made from the State General Fund (1000), State Budget Stabilization Fund (2295), Kansas Educational Building Fund (8001), State Institutions Building Fund (8100), Kansas Special Capital Improvements Fund (8110), and the Correctional Institutions Building Fund (8600) follows:

Description
Explanation
Legislative Appropriation (Original Appropriation and Revisions)
Amount includes original and supplemental legislative appropriations and the amount authorized by State Finance Council for the salary plan.

Reappropriation
Amount of prior year appropriation balance reappropriated and authorized for expenditure in the current year.

Limited Reappropriation (Reserves)
Amount of prior year balance reappropriated but not authorized for expenditure in the current year.

Transfers
Amount of appropriation transferred into or out of the account by authorization of the Legislature or executive directives.

Total Available
Total of the items cited above including Limited Reappropriation amount.

Less - Lapses (Reversions)
Amount of appropriation lapsed for the fiscal year. This is the reversions amount in STARS.
Less - Balances Forward
Amount of appropriation balance reappropriated including any limited reappropriation balance.

Total Expenditures
Total budgetary expenditures for the fiscal year. This includes both cash expenditures and encumbrances outstanding at year-end.

INFORMATIONAL CIRCULAR NO. 97-A-001
August 5, 1996
Page 4

The explanation of items applicable to agency Special Revenue Funds follows:
Description
Explanation

Reappropriation
Amount of carryover unencumbered cash balance available in the fund at beginning of fiscal year.

Adjustments to Fund Balance
Amount of outlawed warrants, residual equity transfers for outlawed warrants, and residual equity transfers used in closing out certain funds.

Net Receipts
Revenue Sub-Object XXXX
Revenue Sub-Object XXXX
Total Net Reciepts
Receipt amounts by detailed revenue sub-object code credited to the fund during the fiscal year, and the total of all receipts to the fund.

Total Available
Total cash resources available in the Special Revenue Fund from carryover balances and total fiscal year receipts.

Less Balance Forward
Amount of unencumbered balance in Special Revenue Fund at end of fiscal year carried forward to the next fiscal year.

Total Expenditures
Total of cash expenditures plus encumbrances for a specific fiscal year account.

Expenditure Limitation
Represents the limitation on budgetary expenditures of the fund for the fiscal year. For the current fiscal year, any amount authorized by the State Finance Council effective July 1 is included. Starred amounts represent unlimited limitations for some budget units within the fund.

97-a-002 - Statewide Cost Allocation Plan (September 13, 1996)

INFORMATIONAL CIRCULAR NO: 97-A-002
DATE: September 13, 1996

SUBJECT: Statewide Cost Allocation Plan

EFFECTIVE DATE:

A & R CONTACT: Roger Rooker, Accounting Services (913) 296-3404

APPROVAL:

SUMMARY: Letter of caution from the Federal Department of Health and Human Services regarding disallowances in state plans for pension and insurance funds.

The Division of Accounts and Reports is responsible for the submission of the Statewide Cost Allocation Plan (Plan) required under the provisions of the Federal Office of Management and Budget (OMB) Circular A-87. The Plan for the State of Kansas is submitted to, and approved by, the Federal Department of Health and Human Services (HHS). Recently, HHS issued correspondence advising state governments, that in recent years there have been several disallowances in state plans related to state managed pension and insurance funds. Broadly stated, these disallowances are caused by two practices:

< charging federal programs and state programs different contribution rates for pension and insurance funds; and

< transferring reserves from pension and insurance trust funds to general fund accounts without reducing federal claims under statewide cost allocation plans.

These practices violate the provisions of OMB Circular A-87, which stipulates that federal and state programs must be treated consistently. The practice of transferring reserves from trust funds that include federal matching funds is considered an over billing of actual costs. To the best of our knowledge, agencies of the State of Kansas do not participate in either of these practices.

The “funding group” concept used in the current (and previous) payroll system provides agencies with functionality which allows equitable distribution of all payroll charges. However, since it is

Informational Circular No. 97-A-002
September 13, 1996
Page 2

possible to adjust the initial distribution through journal entry adjustments, agencies should take care to ensure that any such adjustments do not result in inequities in these distributions. The Division of Accounts and Reports monitors revenue transfers from pension and trust funds and processes corresponding adjustments to federal programs where appropriate.

As stated above, we do not believe that these practices are a problem in our Plan. However, agencies should be aware that HHS has encountered these practices in other states and has disallowed costs as a result of their findings.

97-a-003 - Inventory Procedures and Requirements (February 6, 1997)

BILL GRAVES
Governor

DAN STANLEY
Secretary of Administration

SHIRLEY A. MOSES
Director of Accounts and Reports
900 S.W. Jackson, Room 351S
Landon State Office Building
Topeka, KS 66612-1248
(913) 296-2311
FAX (913) 296-6841

DEPARTMENT OF ADMINISTRATION
Division of Accounts and Reports

INFORMATIONAL CIRCULAR NO: 97-A-003
DATE: February 6, 1997
SUBJECT: Inventory Procedures and Requirements
EFFECTIVE DATE: Effective with Fiscal Year 1997 Inventory Reporting
A & R CONTACT: Accounting Services Section, Audit Services Team Bill Perry (913-296-7217)/Gary Bond (913-296-2287)
APPROVAL:
SUMMARY: Effective with the fiscal year 1997 inventory, agencies will not be required to submit listings to the Division of Accounts and Reports.

K.S.A. 75-3729 provides, in part, that "....The Director of the Division of Accounts and Reports shall design, devise, and direct the use of inventory records by all state agencies to show all fixed and moveable property of the state. The record shall be based on a physical inventory and shall be charged with all subsequent purchases, manufacture of property, or other methods of acquisition and shall be reduced by all property traded in, condemned or otherwise disposed of..... The state agencies may be required to take physical inventory of such properties annually and at such times as the Director may direct....." Current inventory procedures require state agencies to notify the Division of Accounts and Reports of additions, deletions, or changes in inventory by completing and submitting monthly capital outlay addition reports, forms DA-83 (Corrections or Additions to Inventory Property Records), forms DA-110 (Disposition of Property), or other relevant documentation. State agencies are required to submit to the Director of Accounts and Reports the completed inventory detail and summary reports as soon as the June capital outlay additions, and other adjustments, have been completed, but no later than September 30. These current inventory requirements will be in effect through the submission of the fiscal year 1996 inventory reports.
Effective with the fiscal year 1997 inventory process, state agencies will no longer be required to submit documentation of inventory additions, deletions, or other changes or a detailed inventory

Informational Circular No. 97-A-003
September 10, 1997
Page 2

listing to the Division of Accounts and Reports. Beginning with the fiscal year 1997 inventory records, the maintenance and certification of inventory records is delegated to the head of the state agency. With the exceptions noted in this informational circular, state agencies will be required to follow existing inventory policies, procedures and formats. Those established policies, procedures and formats will not be detailed in this informational circular.

Agency Responsibility

An employee in each agency should be assigned the responsibility for the maintenance and preparation of the annual inventory. Such responsibility will include the taking of a physical inventory.
An employee other than the employee responsible for inventory maintenance, preparation and physical inventory should be designated to audit the completed inventory for additions, deletions and adjustments to determine that all items are properly accounted for. Listings of inventory should be in property number order by location and should include any inventory item belonging to the state, no matter how acquired.

Inventory Date
Date requirements are not changed.

Items Included
Requirements for items included have not changed.

Items Purchased From Surplus Property
Requirement for items purchased from Surplus Property have not changed.

Inventory Record Requirements
A. Property Number - Required numeric field.
B. Expenditure Sub-Object Code - Required five digit numeric field. Identifies the expenditure classification of the item.
C. City Code - Required three character alpha field as indicated in the Standard City Code list included in the Division of Accounts and Reports Policy and Procedure Manual (PPM) filing 13,001.
D. Department Code - Optional alpha-numeric field to be used at the discretion of the agency.

Informational Circular No. 97-A-003
September 10, 1997
Page 3

E. Building Code - Optional alpha-numeric field.
F. Room Code - Optional alpha-numeric field.
G. Source Code -Required two digit numeric field as indicated in the listing of valid source codes included in PPM 13,001.
H. Date of Acquisition - Required two digit month and four digit numeric field reflecting the month the item was acquired. For capital outlay purchases, this should be the month and calendar year the item appeared on the DAFR8460 report.
I. Inventory Cost - Required field which should show the original cost of the inventory item. Inventory cost may be shown to include cents, or rounded up to the nearest even dollar. Inventory cost refers to the net cash paid (cost less discount) for the item including freight or postage and should include the amount allowed for a trade-in or any credit memo applied to the purchase. Each item on the inventory must have a cost value assigned. In the absence of actual cost data, an estimated cost should be assigned.
In the case of gifts, the fair market value of the item at the time of the gift should be used. Items purchased from State Surplus Property and items manufactured by the agency should also be reported at fair market value.
J. Description - Required field which should give sufficient information so that the item can be identified for physical inventory purposes. For example, a description should include the common name of the item (microcomputer, copier, etc.), manufacturer name, model number (if applicable), and serial number (where available). The serial number provides an efficient and reliable means of identifying a piece of property should the property number be removed, painted over, or otherwise become illegible. In the case of land, an abbreviated legal descriptions should be included. For buildings, include the name of the building and the type of construction.

Additional Inventory Record Requirement for Fiscal year 1997
Although the State of Kansas does not currently present financial reports in accordance with Generally Accepted Accounting Principles (GAAP) as established by the Governmental Accounting Standards Board (GASB), our initiative is to move toward that goal wherever possible. Fixed asset reporting in accordance with GAAP requires the identification of the fund type for which the asset is used. Fixed assets related to specific proprietary funds, nonexpendable trust funds or pension funds are reported directly in those funds. All fixed assets not accounted for in a proprietary, nonexpendable trust or pension fund are general fixed assets and are accounted for in the General Fixed Asset Account Group (GFAAG). The STARS fund numbering system follows a pattern that provides for the basic reporting determination. Funds with numbers beginning with a 1 (State

Informational Circular No. 97-A-003
September 10, 1997
Page 4

General Fund), 2 or 3 (Special Revenue Funds), 4 (Highway Funds-a subset of Special Revenue Funds), or 8 (Capital Project Funds) report related fixed assets in the GFAAG. Funds with numbers beginning with 5 (Enterprise Funds) or 6 (Inter-Agency Service Funds) are proprietary type funds that report fixed assets in the individual funds. For funds that begin with a 7 (Trust and Agency Funds), how the fund is operated determines the appropriate fixed asset reporting. Non-expendable trust funds and pension funds report fixed assets in the individual funds. Expendable trust funds report fixed assets in the GFAAG. Funds that begin with 9 are Clearing, Refund, or Suspense Funds and generally would not have related fixed assets.

It is recognized that state agencies may not be able to accurately identify the appropriate funding notation for all previously purchased capital outlay inventory items. The agency should review its fund structure and make a good faith effort to identify the appropriate funding and use a "best judgement" approach in assigning fund notations to these items.

  • K. Fund - Required four digit numeric field.
    • 1. Fund Numbers Beginning with 1,2,3,4,8 or 9 - Asset reporting notation where the fund number begins with 1,2,3,4,8 or nine should be "0000". (agencies may wish to maintain internal inventory records at the detail fund level to accommodate federal, or other, reporting requirements)
    • 2. Fund Numbers Beginning with 5 or 6 - Asset reporting notation where the fund number begins with 5 or 6 should be the four digit STARS fund number.
    • 3. Fund Numbers Beginning with 7. If the fund is a non-expendable trust fund, the asset reporting notation should be the four digit STARS fund number. Otherwise, the notation would be "0000."

Consumable Supplies
The summarized report of consumable supplies on hand at June 30 currently submitted as part of the Recapitulation of Inventory will also require fund notation information. The fund notation information for these consumable supplies should be readily available, since the purchases would have, in all likelihood, been made during the fiscal year being reported.

Inventory Reporting Requirements
Although state agencies will no longer be required to submit detailed inventory listings and notification of additions, deletions or changes to the Division of Accounts and Reports, inventory records maintained by the agency must include, at a minimum, the information set forth above.

Informational Circular No. 97-A-003
September 10, 1997
Page 5

State agencies will be required to submit to the Division of Accounts and Reports, not later that
September 30 following the close of the fiscal year, the following forms/reports:

  • 1. Certification of Inventory (Form DA82)
  • 2. Recapitulation of Inventory (Form DA80)
  • 3. Inventory General Reconciliation Worksheet (Form DA80A)
  • 4. Fund Summary
    • a. Fixed Assets
    • b. Consumable Supplies

Although the Division of Accounts and Reports will no longer perform a "desk audit" of inventories to insure that all additions, deletions or changes have been accounted for, "on-site visits" will be scheduled for the purpose of performing random sample observation of inventory records. Agencies should maintain records in such a manner as to facilitate the physical verification of inventory items.

SAM:RR:rr

97-a-004 - Hotel Accommodations - Special Rate (February 13, 1997) (discontinued)

BILL GRAVES
Governor

DAN STANLEY
Secretary of Administration

SHIRLEY A. MOSES
Director of Accounts and Reports
900 S.W. Jackson, Room 351S Landon State Office Building
DEPARTMENT OF ADMINISTRATION Topeka, KS 66612-1248
(913) 296-2311Division of Accounts and Reports FAX (913) 296-6841

INFORMATIONAL CIRCULAR NO: 97-A-004
DATE: February 13, 1997
SUBJECT: Hotel Accommodations - Special Rate
EFFECTIVE DATE: Month of February 1997
A & R CONTACT: Accounting Services - (913) 296-2311
APPROVAL:
SUMMARY: Broadview Hotel - Wichita - Special Rate for State Employees

For the month of February 1997, the Broadview Hotel in Wichita, Kansas, is offering a reduced rate of $45 per night for state employees. This offer is valid only through February 28, 1997. Reservations may be made by contacting the Broadview Hotel, 400 W. Douglas, Wichita, Kansas 67202 at (913) 262-5000 or (800) 362-2929. State travelers calling for reservations should identify themselves as state employees to receive the special rate.

SAM:rr

97-a-005 - Reporting of Receivables (April 18, 1997)

BILL GRAVES
Governor

DAN STANLEY
Secretary of Administration

SHIRLEY A. MOSES
Director of Accounts and Reports
900 S.W. Jackson, Room 351S Landon State Office Building
DEPARTMENT OF ADMINISTRATION Topeka, KS 66612-1248
(913) 296-2311Division of Accounts and Reports FAX (913) 296-6841

INFORMATIONAL CIRCULAR NO: 97-A-005
DATE: April 18, 1997
SUBJECT: Reporting of Receivables
EFFECTIVE DATE: June 30, 1997
A & R CONTACT: Accounting Services (913) 296-3521
APPROVAL:
SUMMARY: Reporting of Receivables and Revised DA-32 Form

The reporting of receivables on a monthly basis is no longer required. Starting with fiscal year 1997, reporting will be annually at fiscal year-end. The division is moving toward GAAP reporting for the State of Kansas Annual Financial Report. Inclusion of these receivables in the report will show what is due and owing to the state.

Procedures for the accounting of the receivables found in filing no. 8,001 in the Division of Accounts and Reports Policy and Procedure Manual remain the same except for the change in the reporting frequency and the due date for the report. The due date for the report will be the last working day in August and is to be submitted to the Financial Reporting Team in Accounting Services. Also, one of the most common asked questions is on the reporting of the National Direct Student Loans. Should they be reported and if so, report the entire receivable or just the delinquent portion only. The answer, the loans are to be reported with their entire receivable.

Attached is a copy of the revised DA-32 Form for the fiscal year-end reporting of the receivables. The major change is the placement of the fund number on top of the form. When reporting the receivables for your agency, we are requesting the receivables to be summarized by fund, class code, and source code.

SAM:DB:GB

Attachment

97-a-006 - STARS Descriptor Table Modifications (April 23, 1997)

BILL GRAVES
Governor

DAN STANLEY
Secretary of Administration

SHIRLEY A. MOSES
Director of Accounts and Reports
900 S.W. Jackson, Room 351S Landon State Office Building
DEPARTMENT OF ADMINISTRATION Topeka, KS 66612-1248
(913) 296-2311Division of Accounts and Reports FAX (913) 296-6841

INFORMATIONAL CIRCULAR NO: 97-A-006
DATE: April 23, 1997
SUBJECT: STARS Descriptor Table Modifications
EFFECTIVE DATE: May 5, 1997
A & R CONTACT: Jerry Serk (913) 296-2318
APPROVAL:
SUMMARY: STARS Descriptor Table Modifications

The Division of Accounts and Reports has extensively modified the process for entering appropriation and expenditure limitations and other accounting information contained in appropriation bills into STARS. The new process which allows on-line updates directly into STARS tables, has required that some descriptor tables be modified. These modifications may affect your agency and will become visible to STARS on-line users on or about May 5, 1997, as they are moved from the test region of STARS to STARS production.

The modifications are as follows:

STARS BUDGET UNIT TABLE

The Budget Unit Table (D20) will have a new “Appropriation/Expenditure Limitation” field which will enable the Accounting Services Section to record the new fiscal year appropriation/expenditure limitation for that particular budget unit. This field will be used to generate the appropriation tape which updates the STARS “Appropriation File” with the authorized appropriation/expenditure limitation for the new fiscal year. This tape is processed into STARS on the night of July 1 of each new fiscal year. It should be noted that after creation of the appropriation tape, this field will not be updated to reflect reappropriations or any supplemental appropriations throughout the year. In addition (due to the on-line capability these modifications provide for the coding and updating of new fiscal year appropriations) on or about May 5, 1997, a “snap-shot” will be taken of all existing FY 1997 budget units and identical new FY 1998 budget units will be created and added to the Budget

Informational Circular No. 97-A-006
April 23, 1997
Page 2

Unit Table. For approximately the next three weeks, the Accounting Services Section will be modifying FY 1997 and FY 1998 budget units, and in some instances, deleting the previously created FY 1998 budget units as required by appropriation bills passed by the 1997 Session of the Legislature.

STARS INDEX CODE TABLE

For most agencies, the STARS Index Code Table (D24) maintains a one-to-one relationship with the STARS Budget Unit Table and thus it was relatively easy to add the new fiscal year index codes each year. Those agencies with other than a one-to-one relationship have had to manually add prior fiscal year index codes to the new fiscal year. One of the new modifications being moved to STARS production is a process which is similar to the budget unit table in that a “snap-shot” will be made of all FY 1997 index codes and identical index codes will be established for FY 1998. During the coding process, the Accounting Services Section will delete any index code that is added during this snapshot process and is associated with a budget unit that has been discontinued for the new fiscal year.

On-line agencies that do not currently have access to the STARS Index Code Table, but would find such access to be advantageous, may request access by contacting Ken Hasenbank of the Operational Services Team at (913) 296-2132. Upon the written request from your agency the STARS Security Table will be changed to allow your agency update capability rather than inquiry only. Additional information concerning update capability for the Index Code Table may be found in Division of Accounts and Reports Informational Circular Number 1194 dated May 17, 1993. If you do not have
a copy of this circular, please contact the Accounting Services Section at (913) 296-3521 and request that a copy be sent to you.

The one-to-one relationship (Budget Unit=Index Code) at the central level is easier to maintain, has less chance for error and speeds up the annual appropriation coding process. Therefore, we are asking those agencies adding index codes that do not have a matching budget unit to use an alpha character in the index code number whenever possible rather than assigning an all numeric index code. This procedure allows the Accounting Services Section in future years to add additional budget units in sequence with existing budget units. For instance, if your agency currently uses Budget Unit 2000
and in FY 1999 an appropriation act requires that a new budget unit be established for “Official Hospitality”, a new budget unit would normally be established using 2004 with a corresponding index code of 2004. However, if your agency had already established index codes 2001 through 2009 for internal use and the next series of funds used budget units and index codes 2010 through 2090, the Accounting Services Section would have to find another number to use which in this case would be 2104 or in some agencies much farther away from the 2000 sequence of numbers. However, if the
alpha-numeric index code is unacceptable, then use a numbering system that will mean something to you or your staff using the all numeric index code.

Informational Circular No. 97-A-006
April 23, 1997
Page 3

STARS FOOTNOTE AND CITATION TABLES

If you have used the STARS Budget Unit Table you have probably noticed that the footnotes and citations on a prior fiscal year budget unit do not equal what is in the STARS Footnote or Citation Tables. This is because the Footnote and Citation Tables only contained current fiscal year data. One of the new modifications provides for multiple year footnote and citation data. Therefore, when you access the STARS Footnote and Citation Tables after the May 5 conversion, you will need to enter the two digit fiscal year you wish to see as part of the key elements. For instance, the first line of footnote 20 in Agency 173 for FY 1997 would be recalled by entering 971732001. Prior to this, you would have entered 1732001.

STARS AD HOC

In order to access footnotes and citations it will be necessary to enter the budget fiscal year you wish to access. Otherwise, by leaving the fiscal year blank, all fiscal year footnotes will be displayed.

If there are any questions pertaining to this matter, please contact Jerry Serk of the Accounting Services Section at (913) 296-2318.

97-a-007 - Closing of Fiscal Year 1997 and Opening of Fiscal Year 1998 (May 9, 1997) (superseded by 98-a-015)

BILL GRAVES
Governor

DAN STANLEY
Secretary of Administration

SHIRLEY A. MOSES
Director of Accounts and Reports
900 S.W. Jackson, Room 351S Landon State Office Building
DEPARTMENT OF ADMINISTRATION Topeka, KS 66612-1248
(913) 296-2311Division of Accounts and Reports FAX (913) 296-6841

INFORMATIONAL CIRCULAR NO. 97-A-007
DATE: May 9, 1997
SUBJECT: Closing of FiscalYear 1997 and Opening of Fiscal Year 1998
EFFECTIVE DATE: Immediately
A & R CONTACT: Accounting Services, (913) 296-3521
APPROVAL:
SUMMARY: Schedule of Accounting Events Relative to Fiscal Year Closing

Another fiscal year closing is upon us and again we are asking for your cooperation during this time to help ensure a successful and timely closing of FY 97 and opening of FY 98. The State of Kansas fiscal year, as established by K.S.A. 75-3002, commences on the first day of July in each year and closes on the thirtieth day of June of the succeeding year. However, to allow state agencies time to process as much old year business as possible, the old year records remain open through the second Monday of July (PPM No. 14,002). During this period the Statewide Accounting and Reporting System (STARS) processes old and new fiscal year business concurrently.
During this concurrent processing period, FY 97 documents receive a higher processing priority than do FY 98 documents. This, and the large volume of last minute old year business received for processing, can cause delays in the processing of FY 98 business. There is a period (usually three or four days) after the third Monday in July in which no daily transactions are processed. During this period, total effort is directed to processing transactions necessary to complete the transition from FY 97 to FY 98. These delays are an inherent part of the fiscal year closing process.
Your understanding of the unique circumstances encountered during the fiscal year transition period will help to reduce the number of delays experienced during fiscal year closing. Obviously, the workload both at your agency and the Division of Accounts and Reports is greatly increased during this period; therefore, following certain guidelines will result in a smoother flow of transactions.

Informational Circular No 97-A-005
May 9, 1997
Page 2

FY 97 business should be processed in a timely manner at both the agency level and the central level.  This will relieve some delays caused by the last minute avalanche of vouchers received by the of Accounts and Reports. Some degree of relief can also be realized by state agencies reviewing the May monthly reports and submitting necessary requests for corrections before June 30. This will significantly reduce the volume of last minute journal entries.

All transactions submitted during the concurrent processing period should be carefully reviewed for accurate and complete coding, authorized signature, sufficient unencumbered balances, and any potential errors that may require additional processing time. While this procedure should be followed throughout the fiscal year, it is especially critical during the year-end transition period. Keeping the exceptions to a minimum during this period will result in more efficient and timely processing of
transactions.

During the concurrent processing period, special attention should be given by agencies to the unencumbered balances of those funds whose budget units are classified as "expenditure only". To make "carry forward" balances available as of July 1 for use by state agencies, STARS has been programmed to allow new year transactions charged to "expenditure only" accounts to edit against fund-level (both FY 97 and FY 98) receipts. However, during this period, FY 97 transactions only edit against FY 97 receipts.

During the concurrent period, those state agencies having accounts structured as "receipt and expenditure" must ensure that FY 98 receipts are available to cover FY 98 expenditures from budget units classified as both receipt and expenditure. The available cash in prior fiscal year receipt and expenditure budget units will not be available to fund FY 98 expenditures until FY 97 is closed and balances carried forward.

During the concurrent transition period, personnel at all levels are subjected to increased workloads and pressures. Errors will be resolved in the most efficient and timely manner possible. Emergency situations will be reviewed and acted upon as soon as possible. Transactions categorized as emergency payments should be batched separately and sent to the attention of Roger Rooker, Accounting Services Section, Division of Accounts and Reports, 900 S.W. Jackson Street, Room 351-S, Topeka, Kansas.

Every effort must be made to ensure that payment of legal obligations to vendors are not delayed.  With your support and assistance, we look forward to a timely year-end transition.

A schedule of events concerning the closing of Fiscal Year 1997 and the opening of Fiscal Year 1998 has been prepared to identify certain functions and events of mutual interest to state agencies and the Division of Accounts and Reports. These items and dates are as follows:

DATE ITEM
April 14 Letter Advising Agencies to Prepare Real Estate Encumbrance Renewals (Affected
Agencies Only)

Informational Circular No 97-A-005
May 9, 1997
Page 3

May 19 Letter Requesting Agencies to Review Outstanding Encumbrances
May 19 Letter to Agencies Transmitting List of Outstanding Obligations (DA-118) Instructions
June 1 Annual Review of Housing, Food Service and Other Employee Maintenance Rates (DA-171)
June 18 Fiscal Year 1998 Valid Funds Tape and Valid PCA Tape Sent to State Treasurer
June 18 Preliminary Fiscal Year 1998 Central Chart of Accounts Mailed to State Agencies
June 18 Informational Circular to All State Agencies Regarding Fiscal Year Rate Changes in Payroll Deductions and Contributions
June 23 Review Any Outstanding Checks and Process Paycheck Reversals Prior to June 25, 1997 Which is the Last Off -Cycle Payroll Charged To Fiscal Year 1997. Any Checks Issued in This Cycle Will Be Dated June 30, 1997 and Charged to Fiscal Year 1997
June 30 Updates to Payroll Funding Group Definitions for Fiscal Year 1998 Must be Entered into SHARP by 5:00 P.M. in Order to be Reflected in the Charges for Any Paychecks Resulting from the KA3 Off-Cycle for the Period Ending June 14, 1997 (First Off-Cycle Payroll Charged to Fiscal Year 1998)
June 30 Regents Establish Payroll Clearing Fund Indexes in STARS for Fiscal Year 1998
July 1 Fiscal Year 1998 Transactions Accepted for Processing: Also Commencement of Concurrent Processing Period for Final Fiscal Year 1997 Transactions
July 3 Updates to Payroll Funding Group Definitions for Fiscal Year 1998 Must be Entered into SHARP by 5:00 P.M. in Order to be Reflected in the Charges for the On-Cycle Paychecks Dated July 11, 1997 (First On-Cycle Paychecks Charged to Fiscal Year 1998)
July 7 Regents DA-35 Files Must be Received by 5:00 P.M.
July 14 State Treasurer Accepts Final Fiscal Year 1997 Receipts Vouchers from State Agencies up to 3:00 P.M.
July 14 Accounting Services Accepts Final Expenditure and Encumbrance Batches from State Agencies for Fiscal Year 1997 Until 5:00 P.M.
July 14 Agencies Entering STARS Payment Vouchers On-Line Must Have Final Documents for Fiscal Year 1997 Entered by 5:00 P.M.

Informational Circular No 97-A-005
May 9, 1997
Page 4

July 15 Agencies Entering Payment Vouchers On-Line in STARS With a June Effective Date Must Have Paper Documents into the Accounting Services Section by 12:00 Noon or Transactions Will Be Deleted from the System
July 16 Agencies May Enter DA-118's On-Line Until 5:00 P.M.
July 17 Agencies Entering DA-118's On-Line Must Have Paper Documents delivered to the Accounting Services Section By 12:00 Noon or Transactions Will be Deleted from the System
July 22 Final Processing of June 1997 Transactions Expected; End of Concurrent Processing
July 23 Commencement of Processing for Monthly and Annual Reports and Statements: Also, Processing of Closing and Opening Entries and Preparation of Opening and Closing Transaction Statements
July 28 June 1997 Monthly STARS Statements Expected to be Mailed to Agencies
July 28 Resume Processing of July 1997 (Fiscal Year 1998) Transactions
July 30 Fiscal Year 1997 Closing Statements and Fiscal Year 1998 Opening Statements Expected to be Mailed to Agencies
August 5 DA-404, DA-406 and DA-410 Budget Worksheets Expected to be Distributed

SAM:js

97-a-008 - Interfund Voucher Processing (May 6, 1997) (obsolete)

BILL GRAVES
Governor

DAN STANLEY
Secretary of Administration

SHIRLEY A. MOSES
Director of Accounts and Reports
900 S.W. Jackson, Room 351S Landon State Office Building
DEPARTMENT OF ADMINISTRATION Topeka, KS 66612-1248
(913) 296-2311Division of Accounts and Reports FAX (913) 296-6841

INFORMATIONAL CIRCULAR NO: 97-A-008
DATE: May 6, 1997
SUBJECT: Interfund Voucher Processing
EFFECTIVE DATE: June 1, 1997
A & R CONTACT: Audit Services - (913) 296-3521
APPROVAL:
SUMMARY: Revised Procedures for Interfund Voucher Processing and Correction

The Division of Accounts and Reports is currently reviewing internal workflow and document flow to identify process improvements. One of the objectives of this review is to eliminate unnecessary tasks and to judiciously focus our resources on more value-added activities. As part of this review, we have assessed the processing of interfund vouchers within the Division.

During the three month period of January through March 1997, one of the processes analyzed appeared to have minimal value. Historically, three copies of the Interfund (Accounts and Reports copy, Receiving Agency copy, and Paying Agency copy) have been submitted to the Audit Services Team for approval and STARS processing. After completion of STARS processing, copies of the document were distributed to the specified agencies to verify that processing was completed and supply the receiving agency with the expenditure voucher number.

During the period of analysis, only 13 Interfund receipt corrections were required. This portion of corrections represents only 0.15% of the total number of Interfund documents (8,744) processed during the same time period. Therefore, it has been determined that the effort required is far greater than the benefit derived for distributing copies of the vouchers.

Effective immediately, agencies may begin submitting only one copy of Interfund vouchers for processing. Effective June 1, 1997, the Division of Accounts and Reports will discontinue returning copies of processed interfunds to the paying and receiving agencies.

Informational Circular 97-A-008
May 6, 1997
Page 2

Agencies will be able to verify document processing through reports created in the STARS AD HOC Reporting System, STARS daily or monthly transaction output datasets, or analysis of the Daily Transaction Register (DAFR8240) report.

Journal Voucher requests for Interfund transaction corrections will require the Paying Agency number and expenditure voucher number to ensure timely processing of the request. If receipt correction is required, the Receiving Agency will need to secure the necessary information from the Paying Agency prior to the submission of the Journal Voucher request.

Any questions regarding Interfund Voucher processing or the procedural changes outlined in this Informational Circular should be directed to JoAnn Remp, Division of Accounts and Reports, Audit Services Team, at (913) 296-3521.

SAM:ns

97-a-009 - Disposition of State Surplus Property (May 12, 1997)

BILL GRAVES
Governor

DAN STANLEY
Secretary of Administration

SHIRLEY A. MOSES
Director of Accounts and Reports
900 S.W. Jackson, Room 351S Landon State Office Building
DEPARTMENT OF ADMINISTRATION Topeka, KS 66612-1248
(913) 296-2311Division of Accounts and Reports FAX (913) 296-6841

INFORMATIONAL CIRCULAR NO: 97-A-009
DATE: May 12, 1997
SUBJECT: Disposition of State Surplus Property
EFFECTIVE DATE: July 1, 1997
A & R CONTACT: Audit Services - (913) 296-3521
APPROVAL:
SUMMARY: Revised Form DA-110, Disposition of Property

A revised Form DA-110, Disposition of Property, is now available for agency use. A sample copy of the revised form and form completion instructions are attached. These should be made available to agency personnel who prepare and process the form.

The revised form is now a three part, carbonless form to facilitate its use. The revised form is being stocked by the Division of Printing, and requests to obtain supplies of the form should be directed to Skip Anderson at (913)296-3632.

If your agency currently submits computer generated forms, please contact Steve Magee, State Surplus Property Center at (913)296-2334 to coordinate your modification efforts.

Questions regarding the disposal of state property should be directed to Steve Magee, Department of Corrections, State Surplus Property Center, Forbes Field, P.O. Box 19226, Topeka, Kansas, 66619-0226. Questions regarding the state property inventory records should be directed to Gary Bond, Division of Accounts and Reports, Audit Services Team at (913)296-2287.

SAM:ns
Attachment

Form DA-110, Disposition of Property
Form Completion Instructions and Agency Form Submission Instructions
I. Agency Form Submission Instructions

  • 1. Complete the three-part Form DA-110 form detailing the disposition request.
  • 2. Obtain agency approval signatures authorizing the disposition request.
  • 3. Detach and retain the agency file copy (bottom copy) of the form.
  • 4. Submit the two remaining copies of the disposition request to the Department of Corrections, State Surplus Property Center, Forbes Field, P.O.Box 19226, Topeka, Kansas 66619-0226.
  • 5. For trade-ins, in addition to submitting the Form DA-110 copies to State Surplus Property, attach a photocopy of the Form DA-110 form to a completed Form DA-100 (Purchase Requisition) and submit to the Department of Administration, Division of Purchases.
  • 6. If the property is being transferred to another state agency, Form DA-83 should be used and a photocopy should be sent to the state agency to which the property is being transferred.

1

Instructions for Form DA-110
May 1997
Page 2
II. Form Completion Instructions
The three part Form DA-110 form set is prepared by the initiating agency to request authorization for the disposition of agency property. The agency completes the form as instructed below except where noted. Additional forms may be used as needed. The numbers on the form completion instructions correspond to the numbers on the sample form.

  • 1. Agency No.: Three digit agency number and two digit division number as assigned in the Central Chart of Accounts.
  • 2. Agency Disposition No.: Unique sequential number assigned by the agency to identify the disposition request.
  • 3. Contact Person: Name of the employee responsible for the viewing and maintenance of the items listed on Form DA-110.
  • 4. Phone Number: The 10 digit telephone number where the contact person can be reached during normal business hours.
  • 5. Agency Name: The submitting state agency name.
  • 6. Agency Division: The state agency division or other unit name, when appropriate.
  • 7. Property Number: Property number as recorded in the agency inventory records and affixed to the property.
  • 8. Sub Obj Code: Sub-object code for the property as recorded in the agency inventory records and defined in the Division of Accounts and Reports’Policy and Procedure Manual, File No. 7,002 (Length - 4 digits).
  • 9. Inv Src: Inventory source code as recorded in the agency inventory records and defined in Division of Accounts and Reports’Policy and Procedure Manual, File No. 13,001 (Length -2 digits).
  • 10. Date Acquired (mm/yy): Date the property was acquired as recorded in the agency inventory records. This should be the month and calendar year that the payment for the item appears on the Capital Outlay Report, DAFR8460. (Month - 2 digits, Year - 2 digits)
  • 11. Inventory Cost: The original acquisition cost of the property as recorded in the agency inventory records and defined in Accounts and Reports’Policy and Procedure Manual, File No. 13,001.

2

Instructions for Form DA-110
May 1997
Page 3

  • 12. Description: A complete description of the property including the common name of the item, name of manufacturer, model number, serial number, dimensions, color, Agency assigned present value or other related identifying information. (Note: A complete description of the property will expedite processing of the disposition request.)
  • 13. Present Value: For Kansas State Surplus Property use only. Kansas State Surplus Property will determine the present value of each item listed on the Form DA-110, Disposition of Property. (See Surplus Property Manual, Page 5, PartVI, B1.)
  • 14. Condition Code: The code best describing the condition of the property from the condition codes listed in the lower left corner of the form. The definition of each code is as follows:
  • 1. In working condition: The property is in working condition.
  • 2. Not working - serviceable: The property is not working, but could be repaired and made serviceable.
  • 3. Not working - not serviceable: The property is not working and cannot be repaired or the cost to repair is prohibitive to the agency.
  • 4. Obsolete - working: The property is in working condition, but is considered obsolete for agency use.
  • 5. Obsolete - not working: The property is not in working condition and is considered obsolete for agency use.
  • 6. Lost or stolen - FY : If the property has been reported either lost or stolen, enter the fiscal year the loss or theft was discovered in the space provided to the right of the code.
  • 7. Other: Other conditions not listed above (please describe in the space provided).
  • 15. Disposition Code - Agency: The code indicating the property disposition being requested by the agency from the disposition codes listed in the lower center portion of the form. All disposition methods must receive prior approval by State Surplus Property. The definition of each code is as follows:
  • 1. Trade-in: The property will be traded-in towards acquisition of other property. For trade-ins, a photocopy of the completed and approved Form

3

Instructions for Form DA-110
May 1997
Page 4
DA-110 must be attached to the completed Form DA-100 (Purchase Requisition) submitted to the Department of Administration, Division of Purchases.

  • 2. Sell used (by agency): The agency is requesting authorization to sell the property. Enter the name of the prospective purchaser and the dollar amount offered in the explanation and remarks section of the form (only for items with a present value more than $500, as determined by Kansas State Surplus Property).
  • .
  • 3. Sell used (by State Surplus Property): The agency is requesting State Surplus Property to sell the property.
  • 4. Request local disposition authority: After local disposition is authorized by State Surplus Property, the agency must choose one of the methods listed below to dispose of the property. An approved copy of the Form DA-110 should be retained in the agency files, indicating which of the disposal methods was selected. Agencies are not required to notify State Surplus Property of which disposal method was selected.
  • a. Cannibalize usable parts for repair of like items, placing unserviceable residue in scrap pile, if the agency has an appropriate place to accumulate scrap for future use.
  • b. Property may be burned, if allowed at agency location.
  • c. Dispose of at authorized landfill.
  • d. Dispose of by selling to the highest sealed bid received.
  • e. Dispose of at public auction.
  • f. Dispose of by highest phone bid (minimum of three bids recommended).
  • g. Dispose of as trash (by normal trash removal procedures).
  • h. Donated to non-profitable entities, designated as 501(C)3 under federal tax code, or those entities eligible to participate in the Federal Surplus Property program (only for those items with a present value less than $500, as determined by Kansas State Surplus Property).

4

Instructions for Form DA-110
May 1997
Page 5

  • 5. Other: Other dispositions not listed above (please describe in the space provided).
  • 16. Disposition Code -Kansas State Surplus Property (KSSP) use only: Disposition code entered by State Surplus Property personnel indicating the authorized disposition of the property.
  • 17. Explanation or Remarks: Space provided for additional information as needed to support the disposition request.
  • 18. Accounting Information: For all items listed on Form DA-110, please provide the fund, Fiscal Year, index, and PCA codes to be used when recording the receipt of disposal proceeds at the State Treasurer. If more than one funding line is needed, or if proceeds are to be deposited in various funds, please indicate the funding for each property immediately below the item description.
  • 19. Signature of Agency Employee: Signature and date signed by agency employee submitting the request to dispose of the property.
  • 20. Signature of Agency Authorized Employee: Signature and date signed by an agency employee authorized to sign payment vouchers indicating review and approval of the disposition request.
  • 21. Signature of Kansas Correctional Industries Director or Designee (KSSP use only): Signature and date signed by the Director of Kansas Correctional Industries, or Designee, indicating review and approval of Form DA-110.

5

97-a-010 - Change in Mailing Procedures for Various Forms Received from the Department of Human Resources (DHR) (May 19, 1997)

BILL GRAVES
Governor

DAN STANLEY
Secretary of Administration

SHIRLEY A. MOSES
Director of Accounts and Reports
900 S.W. Jackson, Room 351S Landon State Office Building
DEPARTMENT OF ADMINISTRATION Topeka, KS 66612-1248
(913) 296-2311Division of Accounts and Reports FAX (913) 296-6841

INFORMATIONAL CIRCULAR NO: 97-A-010
DATE: May 19, 1997
SUBJECT: Change in Mailing Procedures for Various Forms Received from the Department of Human Resources (DHR).
EFFECTIVE DATE: Immediately
A & R CONTACT: Support Services - (913) 296-3592
APPROVAL:
SUMMARY: DHR will mail directly to state agencies various forms previously mailed to the Division of Accounts and Reports for dissemination to state agencies.

The Division of Accounts and Reports (A&R) is currently reviewing internal workflow and document flow to achieve process improvements. As a result of this review, we have identified 15 forms A&R receives from DHR that require no processing by A&R and could be mailed directly to state agencies. These forms are received in various quantities and frequencies. Upon receipt, A&R forwards them to the proper state agency. Many of these forms have short deadlines for response. The response time is further shortened because they are submitted to A&R first.

A listing of the forms identified is shown at the end of this informational circular. DHR is currently making address changes and will begin to mail these forms directly to state agencies as the address changes are made. These forms will be mailed to your state agency to the attention of the Personnel Director. Questions regarding individuals forms should be directed to the telephone number or address shown on the form. General assistance can be obtained by contacting the Department of Human Resources, Division of Employment Security, at (913) 296-0821.

One of the forms to be mailed directly to state agencies is K-CNS 026, Reimbursing Employer’s Quarterly Statement of Benefits Charges. As a reminder, this form is a statement and not a billing (no money should be sent to DHR). This statement is only received for a quarter in which there were claims against the agency. Agencies should review this statement upon receipt to ensure that individuals shown on the statement did, in fact, work for the agency. Questions regarding this statement may be directed to Mr. Gary Spray of DHR at (913) 296-5024.

Informational Circular 97-A-010
May 19, 1997
Page 2

Listing of Forms that will be Mailed Directly to State Agencies
Form #
Form Name
Description
K-CNS 026
Reimbursing Employer’s Quarterly Statement of Benefit Charges
Quarterly statement by UI account number, show s claimants and amounts charged.
K-BEN 44/45
Employer Notice
Notice that a former employee has filed an unemployment insurance claim and the agency’s account will be charged. (10 day time limit to respond)
K-BEN 46
Reimbursing Employer Notice
Similar to K-BEN 44/45 but for reimbursing employers. (10 day time limit to respond)
K-BEN 329
Unemployment Insurance Benefit Audit
Request for earnings information on former employee. (10 day time limit to respond)
K-BEN 3211
Request for Employer Report on Reasonable Assurance Next Term
Request for assurance that former employee may return to similar work when school resumes. (10 day time limit to respond)
K-BEN 4211
Examiner’s Determination
Presents the DHR examiner’s findings. (16 day time limit to appeal)
Notice of Telephone Hearing
Sets the time for a telephone hearing.
Referee’s Decision
Presents the appeals referee’s findings.
Order of Postponement and Continuance
Declares that an appeal has been postponed.
K-BAM 001
Unemployment Insurance Quality Control
Request for information concerning a former employee. (10 day time limit to respond)
K-UID 408
Wage Form
Request for job and base period wage information - this is an attachment to KBAM 001.
Log Period Wages
Request for lag period wage information - this is an attachment to K-BAM 001.
K-UID 428
Statement of Fact
Requests and employer’s reason for the separation of a former employee - this is an attachment to K-BAM 001.
IB8605
Interstate Unemployment Insurance Benefit Payment Audit
(Federal Form) Requests information concerning a former employee. (7 day time limit to respond)
IB86BK
(attachment to IB8605)
(Federal Form) Requests work information and a reason for separation of a former employee - this is an attachment to IB8605.

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