FY 1999

DATE:	December 18, 1998
SUBJECT:	IRS Notice 97-73 - Returns Relating to Higher Education Tuition and Related Expenses. Amendment to Informational Circular 98-P-21.
EFFECTIVE DATE:	December 18, 1998
A & R CONTACT:	Don Beck, Central Accounting Services	(785) 296-7291
APPROVAL:
SUMMARY:	Amendment to Informational Circular 98-P-21 regarding Regents reporting responsibilities for 1998 under Section 6050S of the Internal Revenue Code.

Informational Circular 98-P-21 notified each Board of Regents' institution of its responsibility for determining the applicability of the requirements of Internal Revenue Code Section 6050S to their institution and for submitting any required forms/reports to the Internal Revenue Service.

Since Regents' institutions will be filing 1098-T forms in conjunction with the requirements of Section 6050S, the 1098-T forms should be filed independent of the Division of Accounts and Reports. Each Regents' institution will be required to obtain their own Federal IdentificationNumber (FIN) for filing with the Internal Revenue Service. The State of Kansas federal identification number 48-6029925 should not be used.

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DATE:	April 12, 1999
SUBJECT:	Deletion of Expenditure Sub-object Codes 4XX9
EFFECTIVE DATE:	June 30, 1999
A & R CONTACT:	Pam Karns, Financial Integrity Team	(785) 296-2660
APPROVAL:
SUMMARY:	Deletion of expenditure sub-objects 4XX9. These items will no longer be coded as capital outlay purchases, but will be classified as the appropriate commodity sub-object.

In past years, capital outlay purchases were classified under a dual sub-object code system which was determined by the cost of the item being purchased. Items with a useful life expectancy of one year, or more, with a cost of $75 ($20 for books), but less than $500 were classified as sub-object 4XX9 (non-inventory) and items with a useful life expectancy of one year, or more, with a cost of $500, or more, were classified as sub-object 4XX0 (inventory). To eliminate this inefficiency in coding, it has been determined that only those items with a useful life expectancy of one year, or more, with a cost of $500 (including books), or more, should be classified as "capital outlay" and maintained on inventory.

Effective with fiscal year 2000 business, the expenditure sub-object series 4XX9 will be eliminated and the definition of capital outlay will be amended to define capital outlay/inventory as any item with a useful life expectancy of one year, or more, and with a cost of $500, or more. Items purchased as fiscal year 2000 business which were previously classified as "non-inventory capital outlay" and coded 4XX9 will instead be classified as the appropriate commodity sub-object. When submitting encumbered items for DA-118 transactions for fiscal year 1999, please use the revised coding policy which eliminates the 4XX9 expenditure sub-object codes.

The following expenditure sub-object codes will be closed effective June 30, 1999. Please review all encumbrance documents that extend beyond fiscal year 1999 for this change in expenditure sub-object coding. This will expedite the processing of these encumbrance documents and help reduce the number of delays experienced during fiscal year closing.

4019   Agricultural Equipment and Machinery - Non - Inventory
4029   Household, Laundry and Kitchen Equipment and Furniture - Non - Inventory
4039   Office Furniture, Fixtures and Equipment - Non - Inventory
4049   Professional and Scientific Equipment - Non - Inventory
4079   Road and Highway Machinery and Equipment (Agencies 276, 710) - Non - Inventory
4089   Shop and Plant Maintenance Equipment - Non - Inventory
4099   Other Equipment, Machinery, Furniture and Fixtures - Non - Inventory
4109   Livestock - Non - Inventory
4119   Books and Library Material - Non - Inventory
4129   Reprographic Equipment - Non - Inventory
4139   Microcomputer Systems and Support Equipment - Non - Inventory
4169   Information Processing Equipment - Non - Inventory
4189   Computer Systems, Information Processing or Microcomputer Systems Software - Non - Inventory
4619   Telecommunications Termination Equipment - Non - Inventory
4629   Telecommunications Switching Equipment - Non - Inventory
4639   Telecommunications Transmission Equipment - Non - Inventory
4649   Radio (Portable) Equipment - Non - Inventory
4659   Radio (Fixed) Equipment - Non - Inventory
4669   Data Communications Equipment - Non - Inventory

Please note these deletions in your copy of the Uniform Expenditure Classification of Expenditure Sub-object Codes filing (P.P.M. No. 7,002). These deletions should be reflected in a future revision of this filing.

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