Kansas Department of Administration

FY 2002

02-a-001 - Private Vehicle Mileage (June 2, 2001) (Supersedes 01-a-003) (superseded by 03-a-001)
INFORMATIONAL CIRCULAR NO. 02-A-001 (Supersedes 01-a-003)
DATE: June 2, 2001
SUBJECT: Private Vehicle Mileage
EFFECTIVE DATE: July 1, 2001
A& R CONTACT: Randy Kennedy (785)296-2125 (randy.kennedy@da.state.ks.us)
Leroy Charbonneau (785) 296-2255 (leroy.charbonneau@da.state.ks.us)
Shirley Gilchrist (785) 296-2882 (shirley.gilchrist@da.state.ks.us)
Mark Handshy (785) 296-7021 (mark.handshy@da.state.ks.us)
APPROVAL: Approved by Dale Brunton
SUMMARY: Privately Owned Automobile Mileage Reimbursement Rate Increase


In accordance with House Bill 2551 the Secretary has increased the privately owned automobile mileage reimbursement rate to 33¢ per mile for travel taking place on, or after, July 1, 2001. The other rates remain unchanged. The rates as of July 1, 2001 will be:

  • 16¢ per mile for privately owned motorcycle
  • 33¢ per mile for privately owned automobile
  • 44¢ per mile for privately owned airplane
  • 44¢ per mile for privately owned specially equipped vehicle for the physically disabled

(Examples of specially equipped vehicles include, but are not limited to, those equipped with hand controls or lift devices. Other situations may be evaluated on a case-by-case basis if you are uncertain about the applicability of this rate.)

K.A.R. 1-18-1a provides that any state employee choosing to use a privately owned vehicle when a state-owned or leased vehicle is available shall be reimbursed at the central motor pool rate for compact cars. For FY 2002, this rate has been established at 26¢ per mile. The complete schedule of motor pool rates was distributed to all state agencies in a May 17, 2001 memorandum from the Central Motor Pool Director.

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02-a-002 - Statewide Financial Management Systems Needs Assessment Survey (July 25, 2001)
INFORMATIONAL CIRCULAR NO. 02-A-002
DATE: July 25, 2001
SUBJECT: Statewide Financial Management Systems Needs Assessment Survey
EFFECTIVE DATE: Immediately
A & R CONTACT: Roger Rooker (785) 296-2314 (roger.rooker@da.state.ks.us)
Laura Franks (785) 368-6691 (laura.franks@da.state.ks.us)
APPROVAL: Approved by Dale Brunton
SUMMARY: Distribution of Financial Management System Needs Survey


On June 20, 2001, the Division of Accounts and Reports advised all state agencies that Accenture, LLP had been selected to perform a Statewide Financial Management Systems Needs Assessment.

The initial focus of this project is directed at obtaining input from state agencies in an effort to identify how agencies use the features of the current system(s) and to identify agency needs or requirements that are not currently being met by the central accounting system. Accenture staff has created a survey(s) designed to obtain the information needed to determine those areas in which the current system performs well and those areas in which the current system is deficient. The survey results will also be used to help identify the nature of future contacts with the individual agencies.

While I realize that distributing a survey through the Informational Circular process results in its being received by agency personnel who may not be involved in completing the survey, I am also confident that distributing it in this manner will ensure that it will get to the appropriate individuals. Each agency should designate one individual to complete the survey, or coordinate its completion if input is obtained from multiple individuals within the agency.

The survey is being distributed electronically, rather than in hard-copy format. This electronic distribution, and submission, will facilitate the efficient and accurate analysis of the results. An electronic copy of the survey may be displayed on your screen by "clicking" on the following URL http://www.zoomerang.com/survey.zgi?LLCNKPB3QLFMBTG3QQWWGYGJ <------- Broken link

Since this survey will initiate the processes that will be used to obtain input from state agencies, it is imperative that each agency completes their survey as accurately and completely as possible. In order to ensure the timely analysis of the survey results, I am requesting that the completed surveys be submitted no later than Tuesday, August 7th.

Your cooperation and participation is appreciated.

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02-a-003 - Budgetary Worksheet DA-404 Report (August 6, 2001) (Supersedes 01-A-005) (This circular was mailed to each state agency) (superseded by 03-a-003)
INFORMATIONAL CIRCULAR NO. 02-A-003
(issued as hard copy to each state agency)
(Supersedes 01-A-005 )
DATE: August 6, 2001
SUBJECT: Budgetary Worksheet DA-404 Report
EFFECTIVE DATE: Immediate
A & R CONTACT: Financial Integrity Team (785) 296-2311
APPROVAL: Approved by Dale Brunton
SUMMARY: Transmittal of budget worksheet report for preparation of fiscal year 2003 budget.


Enclosed is the DA-404 budget worksheet report prepared from the records of the Division of Accounts and Reports and a listing of your agency's summary sub-accounts titled Corresponding Budget Units for Summary Sub Accounts. The DAFR 8840 (DA-404 worksheet) can be used in preparing the "Resource Estimate by Fund" (form DA-404) for the fiscal year 2003 budget. In prior years, the Division of Accounts and Reports prepared three budget worksheet reports. The DA-406 and DA-410 worksheets have been replaced by the new budget system. It is planned that in fiscal year 2002, the DA-404 will also be replaced by the new budget system. A brief explanation of the DA-404 budget worksheet report follows.

The budget worksheet includes a category of expenditures titled "Non-Reportable Expenditures." Non-reportable expenditures have been defined by the Division of the Budget as expenditures representing duplication of expenditures in another agency or program. The following expenditures 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 expenditures shown in the DA-404 worksheet report 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 2001 include the outstanding encumbrances at June 30, 2001, 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 were authorized by the 2001 legislature. These Kansas Savings Incentive Program (KSIP) reappropriations are reflected as separate summary sub-accounts in the Budget worksheets for both appropriated and special revenue funds.

House Bill 2283, Sections 3(a), 3(c) and 9(b) of the 2001 Legislative Session authorizes lapses in the State General Fund for out of state travel, KANS-A-N telecommunications services and KPERS death and long-term disability benefits. These lapses are reflected on your DA-404 worksheet report after the "Total Available" line.

If errors in program or object classification have been made in either cash expenditures or the coding of outstanding encumbrances, please correct those errors prior to preparing fiscal year 2001 expenditure data for inclusion on the DA-404 form of the fiscal year 2003 budget submission.

*______________________________
Dale Brunton, Director
Division of Accounts and Reports

*___________________________
Duane A. Goossen, Director
Division of the Budget

*signatures available on the hard copy mailed to each agency

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Enclosures: Page 2, Page 3

02-a-004 - BTA Payments for Airfare (October 2, 2001)
INFORMATIONAL CIRCULAR NO. 02-A-004
DATE: October 2, 2001
SUBJECT: BTA Payments for Airfare
EFFECTIVE DATE: Immediately
A & R CONTACT: Randy Kennedy (785) 296-2125 (randy.kennedy@da.state.ks.us)
Leroy Charbonneau (785) 296-2255 (leroy.charbonneau@da.state.ks.us)
Shirley Gilchrist (785) 296-2882 (shirley.gilchrist@da.state.ks.us)
Mark Handshy (785) 296-7021 (mark.handshy@da.state.ks.us)
APPROVAL: Approved by Dale Brunton
SUMMARY: Payment of BTA billings for which airline credit is expected at a later date.


We are aware that after the events of September 11, many travelers worked with Passport Travel to cancel their airline reservations, resulting in credits to the agency's Business Travel Account (BTA).

We understand that there is some concern that the credits could likely not be processed quickly (i.e., appear on the next statement), due to the financial condition of some of the airlines.

The October BTA statements (prepared on the first working day of October) may contain charges for the original airline ticket, but not the subsequent credit for the cancelled trip. Agencies should pay the amount billed on the October statement. When associated credits appear on subsequent billings, the amount of the credit will offset the amount billed that month, thereby reducing the agency's airfare expenditure.

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02-a-005 - Addition to Approved Out-of-State High-Cost Geographic Areas (October 9, 2001)
INFORMATIONAL CIRCULAR NO. 02-A-005
DATE: October 9, 2001
SUBJECT: Addition to Approved Out-of-State High-Cost Geographic Areas
EFFECTIVE DATE: October 8, 2001
A & R CONTACT: Randy Kennedy (785) 296-2125 (Randy.Kennedy@da.state.ks.us)
Leroy Charbonneau (785) 296-2255 (leroy.charbonneau@da.state.ks.us)
Shirley Gilchrist (785) 296-2882 (shirley.gilchrist@da.state.ks.us)
Mark Handshy (785) 296-7021 (mark.handshy@da.state.ks.us)
APPROVAL: Approved by Dale Brunton
SUMMARY: Morristown, New Jersey has been approved as an addition to the list of approved out-of-state high-cost geographic areas.


In accordance with K.A.R. 1-16-18a(d), the Acting Secretary of Administration has approved the addition of Morristown, New Jersey to the out-of-state high-cost geographic area listing.

The Employee Handbook of Reimbursable Travel Expenses (Appendix B) and the travel tri-fold have been updated to reflect this addition. These documents may be found at http://www.da.ks.gov/ar/employee/travel/.

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02-a-006 - Procedures for filing 2001 Form 1099 Information Returns (December 19, 2001)
INFORMATIONAL CIRCULAR NO. 02-A-006
DATE: December 19, 2001
SUBJECT: Procedures for filing 2001 Form 1099 Information Returns
EFFECTIVE DATE: Immediately
A & R CONTACT: Don Beck (785) 296-7291 (don.beck@da.state.ks.us)
APPROVAL: Approved by Dale Brunton
SUMMARY: Procedures for Filing 2001 Form 1099 Information Returns


Agencies of the State of Kansas are considered to be a single payer by the Internal Revenue Service (IRS) and payment information is required to be filed by one transmitter. In addition, federal laws and regulations require the filing of information returns to be submitted by magnetic media or electronically. In order to comply with the reporting requirements of the IRS and to avoid the assessment of penalties, the Division of Accounts and Reports will transmit all 2001 calendar year 1099 information returns for the State of Kansas on magnetic media or electronically.

Some payments by state agencies are IRS reportable but are not included in the Statewide Accounting and Reporting System (STARS) or required data is not provided by STARS. These payments require unique reporting procedures. Such expenditures include certain interest payments, State Fair premiums and purchases of real property.

Locally administered interest payments exceeding $10 are to be reported on Form 1099-INT. An example of these payments is interest paid from trust funds to clients by institutions like the Department of Social and Rehabilitation Services and the Department of Corrections.

IRS regulations require the State of Kansas to report on Form 1099-S any purchases of real property exceeding $600. Additional requirements for this form include a description or address of the property and the closing date of the purchase transaction. (Rental and construction costs are not to be included).

State Fair premiums are to be reported on form 1099-MISC.

Procedures for handling 1099 information returns for calendar year 2001 are as follows:

  1. Agencies that have made expenditures as described, will be responsible for the preparation and delivery of the appropriate 1099 forms to the payees prior to January 31, 2002. Do not mail forms directly to the IRS or to the Kansas Department of Revenue.
  2. Agencies reporting applicable purchases of real property may submit the IRS and/or the State of Kansas copies of the 1099-S forms to the address below, and the Division of Accounts and Reports will submit this information to the IRS. For those agencies with other expenditures to report, the DA-43 form ( http://www.da.ks.gov/ar/forms/ <------- Broken link), or a form of your own design with the same basic format, should be used. All data should be remitted by February 15, 2002 to:

    Division of Accounts and Reports
    Central Accounting Services Section
    900 SW Jackson, Room 351-S, LSOB
    Topeka, Kansas 66612-1248
    Attention: Don Beck

  3. Agencies may submit data to the Division of Accounts and Reports on magnetic media in lieu of paper. However, the Division of Accounts and Reports should be contacted for proper reporting format. In addition, a completed Transmittal Form 4804 is necessary, as well as, the following information on the Media Label: operating system/hardware, type of returns, number of payees, and transmitter's number for media.
  4. The Division of Accounts and Reports will consolidate the data received from state agencies on magnetic media. The media will be forwarded to the IRS National Computer Center prior to February 28, 2002.
  5. If any agency finds it necessary to issue a corrected information return, the payee should be provided a copy as soon as possible. The IRS copy of the corrected form (marked "corrected") should be forwarded promptly to the Central Accounting Services Section of the Division of Accounts and Reports.

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02-a-007 - Additional Expenditure Sub-object Codes now considered reportable to the Internal Revenue Service (IRS) (January 2, 2002)
INFORMATIONAL CIRCULAR NO. 02-A-007
DATE: January 2, 2002
SUBJECT: Additional Expenditure Sub-object Codes now considered reportable to the Internal Revenue Service (IRS)
EFFECTIVE DATE: Immediately
A & R CONTACT: Don Beck (785) 296-7291 (don.beck@da.state.ks.us)
APPROVAL: Approved by Dale Brunton
SUMMARY: Expenditure Sub-object Codes which are now considered to be reportable to the IRS on form 1099


In reviewing the expenditure sub-object codes currently used to capture 1099 information for the IRS, it has been determined that additional object codes should be reported. Effective immediately, the following expenditure sub-object codes have been updated to IRS reportable codes:

2410   Passenger Car Repair and Service
2420   Other Self-Propelled Equipment Repair and Service
2430   Machinery, Equipment, Furniture and Fixtures Repair and Service
2450   Highway and Bridge Repair and Service (Agencies 276, 710)
2470   Information Processing Equipment Repair and Service
2480   Information Processing Equipment Software Maintenance and Service
2490   Other Repair and Service
2920   Laundry, Dry Cleaning and Towel Service

These updates will be reflected in the Uniform Expenditure Classification of Expenditure Sub-object Codes filing (PPM 7002) in the PPM on the Division of Accounts and Reports website http://www.da.ks.gov/ar/ppm/ppm01001.htm.

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02-a-008 - Processing of Interfund Reimbursements in Compliance with GAAP (January 11, 2002)
INFORMATIONAL CIRCULAR NO. 02-A-008
DATE: January 11, 2002
SUBJECT: Processing of Interfund Reimbursements in Compliance with GAAP
EFFECTIVE DATE: Immediately
A & R CONTACT: Suzie Yeh (785) 296-3314 (suzie.yeh@da.state.ks.us)
APPROVAL: Approved by Dale Brunton
SUMMARY: This document describes the appropriate transaction codes and procedures to record interfund reimbursements.


As the Division of Accounts and Reports continues its efforts to publish the State of Kansas Annual Financial Report under the authority of Governmental Accounting Standards Board (GASB) Statement No. 34 and in compliance with Generally Accepted Accounting Principles (GAAP), this informational circular provides guidelines to all state agencies for recording interfund reimbursements related to prior expenditures occurring in the current fiscal year.

As directed in paragraph 112 of GASB 34, interfund reimbursements are defined as "repayments from the fund responsible for particular expenditures or expenses to the fund initially paid". Common examples of this type of interfund transaction are utility or phone charges in which one agency issues a warrant to pay outside vendors while distributing billings to and collecting payments from agencies or sub-divisions (in a centralized environment where business office issues one warrant) users. Other related examples would be agencies sharing the same rental facilities, computer online services or publication purchases. Whether inter-agency or intra-agency in nature, these repayments from the agencies or sub-divisions are not to be treated as revenues but as a reduction of expenditures. The appropriate procedure to record such non-reciprocal activity and non-revenue receipts requires the use of transaction code 631 (recorded in current fiscal year) or 637 (budget level) with the expenditure sub-obj code which was initially used in making the payment. A letter "R" is NOT required in the receipt funding line to represent a negative amount. Furthermore, the use of revenue sub-obj code 6211 is no longer recommended. It is anticipated that revenue sub-obj code 6211 will be phased out in the near future as the result of implementing this change.

Journal vouchers to correct transactions processed during fiscal year 2002 should be submitted to the Central Accounting Services Section, Division of Accounts and Reports or initiated at the agency level through the SOKI3+ system.

Your cooperation is greatly appreciated.

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02-a-009 - Announcement of Subsistence Rates; Reimbursement of a Meal without Overnight Travel (February 1, 2002)
INFORMATIONAL CIRCULAR NO. 02-A-009
DATE: February 1, 2002
SUBJECT: Announcement of Subsistence Rates; Reimbursement of a Meal without Overnight Travel
EFFECTIVE DATE: February 15, 2002
A & R CONTACT: Randy Kennedy (785) 296-2125 (Randy.kennedy@da.state.ks.us)
Leroy Charbonneau (785) 296-2255 (leroy.charbonneau@da.state.ks.us)
Shirley Gilchrist (785) 296-2882 (shirley.gilchrist@da.state.ks.us)
Mark Handshy (785) 296-7021 (mark.handshy@da.state.ks.us)
APPROVAL: Approved by Dale Brunton
SUMMARY: Rates for subsistence (meals and lodging) reimbursement are no longer included in Kansas Administrative Regulations. A new provision allows the option to pay for one meal in certain situations even though the employee does not travel overnight.


K.A.R. 1-16-18 has been amended effective February 15, 2002, to implement laws passed in the 2001 Legislative Session (L. 2001, ch. 109). Subsistence (meals and lodging) rates are no longer required to be published through Kansas Administrative Regulations. This provides the Secretary of Administration greater flexibility in setting and implementing the rates in a timely manner. Users of the rates will continue to receive notification through Informational Circulars of the Division of Accounts and Reports and on our website. Current rates and limitations also are available in the Employee Travel Expense Reimbursement Handbook and the travel tri-fold document.

An additional provision of this regulation allows for a new option to reimburse a traveling employee for a meal. One meal may be reimbursed in limited situations to an employee conducting official state business, but not traveling overnight. Previously, a meal could not be reimbursed when an employee leaves and returns on the same day. K.A.R. 1-16-18(c)(3) allows meal reimbursement for the following single-day travel situations in which an employee is likely to pay out-of-pocket expenses:

  1. when an employee is required to travel on official state business, and the employee's workday, including travel time, is extended three hours or more beyond the employee's regularly scheduled work day; or
  2. when an employee is required to attend a conference or a meeting as an official guest or participant, and a meal is served during the required attendance time.

The following additional conditions apply to the meal reimbursement:

  • The reimbursement for one meal per day is optional, at the discretion of the agency head or designee.
  • In either of the qualifying travel situations, the point where the official business is conducted must be more than 30 miles from the employee's official station.
  • No reimbursement is allowed when a meal is provided at no cost to the employee.
  • Only one meal per qualifying trip may be reimbursed.
  • The reimbursement must be paid at the rates set for breakfast, lunch, or dinner. The current rates are:
Area Breakfast Lunch Dinner
In-State/Border City $6.50 $7.50 $14.00
In-State High-cost $7.00 $8.00 $14.00
Out-of-state $7.00 $8.00 $14.00
Out-of-state High-cost $7.00 $8.00 $15.00
Out-of-state Special Designated
High-cost Area
$9.00 $10.00 $19.00
International $10.00 $11.00 $21.00

 (Please note that these meal rates are the same as those used to determine meal reductions.)

  • This is a meal allowance type of reimbursement. Actual receipts are not required. There is no provision to reimburse an employee if the actual cost of a meal exceeds the per-meal reimbursement rate.
  • The reimbursement of meals by the quarterly allowance method is not allowed unless overnight travel is necessary.

When travel qualifies for reimbursement of a meal, and the reimbursement is approved by the agency head or designee, Form DA-121, Travel Expense Detail, or Form DA-125, Travel Payment Voucher, must include the following information: date, departure time, arrival time, destination, meal (the amount of the meal requested), and the purpose of travel. The meal requested for reimbursement (e.g., lunch) should be shown in the "Description of Expense or Purpose of Travel" column, as well as the employee's scheduled work hours for the day (e.g., 8 a.m. - 5 p.m.).

Please remember that these same-day travel provisions apply only to travel on or after February 15, 2002. The Employee Travel Expense Reimbursement Handbook (Appendix B) and the travel tri-fold have been updated to reflect this reimbursement provision. These documents may be found at http://www.da.ks.gov/ar/employee/travel/.

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02-a-010 - New STARS Warrant Stock (February 15, 2002)
INFORMATIONAL CIRCULAR NO. 02-A-010
DATE: February 15, 2002
SUBJECT: New STARS Warrant Stock
EFFECTIVE DATE: Immediately
A & R CONTACT: Mary Tralle (785) 296-6912 (mary.tralle@da.state.ks.us)
Nickie Roberts (785) 296-7917 (nickie.roberts@da.state.ks.us)
Tim Hund (785) 368-6347 (tim.hund@da.state.ks.us)
APPROVAL: Approved by Dale Brunton
SUMMARY: STARS warrants will be printed on new warrant stock as the old supply is depleted. As stock is depleted, other warrant types will also convert to the new stock.


In cooperation with the State Treasurer's Office and DISC, STARS warrants will be printed on new warrant stock within the next week. The new stock contains enhanced security features that will provide additional safeguards against photocopying and other means of alteration.
 

Significant features of the new stock are:

  • The color will remain the same (light tan).
  • The background will be somewhat different with STATE OF KANSAS appearing in a pattern on the face of the warrant.
  • You will also notice a "warning band" across the top of the warrant advising the person negotiating the warrant to look for a printed watermark on the back of the actual warrant.
  • The printed watermark is an "X" design using "STATE OF KANSAS" with the state seal appearing between each "X".

This change requires no action by agency personnel. As other types of warrant stocks are depleted, those warrant processes will also be converted to stock containing the same types of security features.

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02-a-011 - Notification of STARS-related information (February 25, 2002)
INFORMATIONAL CIRCULAR NO. 02-A-011
DATE: February 25, 2002
SUBJECT: Notification of STARS-related information
EFFECTIVE DATE: March 1, 2002
A & R CONTACT: Leroy Charbonneau (785) 296-2255 (leroy.charbonneau@da.state.ks.us)
Randal Kennedy (785) 296-2125 (randy.kennedy@da.state.ks.us)
Jo Ann Remp (785) 296-2277 (joann.remp@da.state.ks.us)
APPROVAL: Approved by Dale Brunton
SUMMARY: Register to receive e-mails regarding: STARS system issues, late warrants/reports, notification that the business month closed, etc.

Currently, information concerning processing problems with STARS, warrants and reports has been conveyed through the use of the SOKI3+ email system and an informal list of e-mail addresses. Effective March 1st, notification of these issues will be done through our list-serve e-mail notification program. This system will also notify you of when STARS closes each business month. Information concerning STARS issues will no longer be sent through SOKI3+.  Any notifications regarding SOKI3+subjects will continue to be disseminated to users through the SOKI3+ e-mail system.

If you wish to receive notifications concerning STARS, warrants, and reports, use the following link to sign up: http://list.da.state.ks.us/cgi-bin/lyris.pl?enter=ar_stars&text_mode=&lang=english http://www.da.ks.gov/gov/listserv.htmIf you need to cut and paste the link, please select the previous link by highlighting http through english. When signing up, be sure to scroll down the screen and click the button "Join ar_stars".

STARS-related information will also continue to be posted to our Internet site and the STARS news screen.

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02-a-012 - Capitalization of Land and Land Improvements (March 12, 2002) (Supplemented by 02-a-017)
INFORMATIONAL CIRCULAR NO. 02-A-012
DATE: March 12, 2002
SUBJECT: Capitalization of Land and Land Improvements
EFFECTIVE DATE: July 1, 2002
A & R CONTACT: Financial Integrity Team
Brett Bauer (785) 296-2856 (brett.bauer@da.state.ks.us)
Pam Karns
Mike Lovich
(785) 296-2660
(785) 296-2131
(pam.karns@da.state.ks.us)
(mike.lovich@da.state.ks.us)
APPROVAL: Approved by Dale Brunton
SUMMARY: Increasing limitation on Capitalization of Land and Land Improvements to $100,000 for GAAP Reporting Purposes


Current policy requires agencies to capitalize any land or land improvements greater than $5,000. In order to reduce the capitalization of small amounts for GAAP reporting purposes, the Division of Accounts and Reports is increasing the land and land improvement limitation to $100,000, effective July 1, 2002. This limit should be applied to an entire land or improvement project, not each individual payment on the land or improvement. Policy and Procedure Manual Filing No. 7,002 will be updated to reflect this change as follows:
 

4310 Land and Interest in Land: Includes the cost of a portion of the earth's surface (excluding any structures thereon), long term leases, easements, and right-of-ways with a total cost of $100,000 or more.
4319 Land and Interest in Land - Non-inventory with a total cost less than $100,000.
4400 Land Nonstructural Improvements: Includes ponds, terraces, dikes, drainage ditches, fences, landscaping, walks, drives, streets, curbs, water wells, and boat ramps with a total cost of $100,000 or more.
4409 Land Nonstructural Improvements - Non-inventory with a total cost less than $100,000.

Please note that pursuant to K.S.A 75-3516, the director of accounts and reports shall maintain records of the real property owned by the state regardless of cost or value. Therefore, every real estate transaction engaged in by each state agency, except the secretary of transportation, will continue to be reported to the Division of Accounts and Reports via forms DA-84 and DA-86.

Note: It is important to note that the capitalization thresholds that have been established by this and previous Informational Circulars, No. 01-A-018 and No. 01-A-021, are for financial reporting purposes only and in no way lessen an agency's responsibility to track and safeguard state assets. Please refer to the attachment to Informational Circular 01-A-021 dated June 21, 2001 regarding each state agency's responsibility for safeguarding state assets.

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02-a-013 - State Travel Center (March 28, 2002)
INFORMATIONAL CIRCULAR NO. 02-A-013
DATE: March 28, 2002
SUBJECT: State Travel Center
EFFECTIVE DATE: April 1, 2002
A & R CONTACT: Randy Kennedy (785) 296-2125 (randy.kennedy@da.state.ks.us)
Leroy Charbonneau (785) 296-2255 (leroy.charbonneau@da.state.ks.us)
Shirley Gilchrist (785) 296-2882 (shirley.gilchrist@da.state.ks.us)
Mark Handshy (785) 296-7021 (mark.handshy@da.state.ks.us)
APPROVAL: Approved by Dale Brunton
SUMMARY: Use of the State Travel Center will be optional after April 1, 2002.


As announced in Division of Purchases Informational Circular No. 611, use of the State of Kansas Travel Center will become optional as of April 1, 2002.

Effective April 1, 2002, Business Travel Accounts (BTAs) must be used to acquire all domestic airfare (travel within the United States) regardless of where the ticket is purchased. However, if personal travel is booked in conjunction with official state travel, the traveler must continue to pay for the entire trip and be reimbursed for the business portion of the trip.

Use of the BTA for international flights will be at the agency's discretion.

All state agencies should establish an agency policy regarding usage of the BTA for official travel, and communicate this policy to employees. Travelers with questions regarding use of the agency's BTA should be directed to the agency's Business Travel Card program coordinator. Nickie Roberts (nickie.roberts@da.state.ks.us) can provide the name of your agency's coordinator.

Rental cars and out-of-state lodging (for other than conference-related travel) may be booked through any source in accordance with the agency's travel policy.

Contracts for discounted airfares (American and Northwest Airlines) and Car Rentals (Alamo) can be accessed through the State Travel Center.

All fees associated with travel arrangements should be coded to the same expenditure subobject code as the service being acquired (i.e., the fee for booking an airline ticket should be coded 257X).

The Travel Handbook and Travel Tri-fold will be updated to reflect these changes.

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02-a-014 - State General Fund Encumbrances (April 5, 2002)
INFORMATIONAL CIRCULAR NO. 02-A-014
DATE: April 5, 2002
SUBJECT: State General Fund Encumbrances
EFFECTIVE DATE: April 15, 2002
A & R CONTACT: Jo Ann Remp (785) 296-2277 (Joann.Remp@da.state.ks.us)
Randy Kennedy (785) 296-2125 (Randy.Kennedy@da.state.ks.us)
APPROVAL: Approved by Dale Brunton
SUMMARY: State General Fund encumbrances should now be established as contingent encumbrances instead of firm encumbrances.


Historically, policy adopted by the Department of Administration has mandated that all encumbrances against the State General Fund be classified as firm. This policy was adopted at a time when State General Fund balances were sufficient to cover all daily cash flow requirements.

In view of the State's current fiscal situation, State General Fund encumbrance policy is being changed to require that all State General Fund encumbrances established on and after April 15, 2002 must be classified as contingent instead of firm. STARS transaction codes currently used to determine firm or contingent encumbrances will remain the same, i.e., agencies should use existing transaction codes to classify State General Fund encumbrances as contingent.

K.S.A. 75-3730 provides that "All commitments and claims shall be preaudited by the division of accounts and reports as provided in K.S.A. 75-3731. No payment shall be made and no obligation shall be incurred against any fund, allotment, or appropriation . . .unless the director of accounts and reports shall first certify that his or her records disclose there is sufficient unencumbered balance available in such fund, allotment, or appropriation . . . ." STARS has been programmed to identify, and suspend transactions in those cases where available appropriation/limitation and/or cash balances are not sufficient to cover the transaction being processed. STARS edits encumbrances coded firm in the same manner. Contingent encumbrances are allowed to process if the available appropriation/limitation balance is sufficient to cover the transaction, even though unencumbered "cash" may not be sufficient to cover the transaction.

In order to accomplish this policy change, the following information should be noted:

  • Firm encumbrances currently in STARS will continue to be paid and ultimately liquidated as firm encumbrances. The current State General Fund firm encumbrances will not be converted to contingent encumbrances.
  • All SHARP payroll encumbrances will continue to be classified as firm.
  • Agencies should submit all new encumbrances against the State General Fund using the transaction code for contingent encumbrances . If the document is submitted with a transaction code for a firm encumbrance, the Audit Services Team will change the transaction code to establish a contingent encumbrance. Agencies will not be notified of each individual change.
  • Policy and Procedure Manual filing 10,206 will be updated soon to reflect this policy change.

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02-a-015 - State Travel Center and BTA Usage (April 9, 2002) (Supplements: No. 02-a-013)
INFORMATIONAL CIRCULAR NO. 02-A-015 (Supplements: No. 02-a-013 )
DATE: April 9, 2002
SUBJECT: State Travel Center and BTA Usage
EFFECTIVE DATE: Immediately
A & R CONTACT: Randy Kennedy (785) 296-2125 (randy.kennedy@da.state.ks.us)
Leroy Charbonneau (785) 296-2255 (leroy.charbonneau@da.state.ks.us)
Shirley Gilchrist (785) 296-2882 (shirley.gilchrist@da.state.ks.us)
Mark Handshy (785) 296-7021 (mark.handshy@da.state.ks.us)
APPROVAL: Approved by Dale Brunton
SUMMARY: Use of the State Travel Center after April 1, 2002 and BTA Usage


As announced in Division of Accounts and Reports Informational Circular No. 02-A-013, use of the State Travel Center became optional as of April 1, 2002. The requirement included in Informational Circular No. 02-A-013 that Business Travel Accounts (BTAs) must be used to acquire all domestic airfare (travel within the United States) is being amended.

Effective immediately, employees may use personal credit cards when acquiring domestic airfare. While we continue to recommend use of the BTA for domestic airfare whenever possible, we are aware of some travel needs in which use of personal credit cards is necessary. Travelers will not be reimbursed for airfare charged to personal credit cards prior to the completion of the related travel.

As travelers are making reservations through ticket outlets other than the State Travel Center, they need to be aware that air carriers have varying policies regarding the presentation of the actual credit card used to purchase airfare at the airport.

Use of the BTA for international flights will continue to be at the agency's discretion.

The Travel Handbook and Travel Tri-Fold will be updated to reflect these changes.

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02-a-016 - Closing of Fiscal Year 2002 and Opening of Fiscal Year 2003 (April 18, 2002) (Supersedes 01-a-019) (superseded by 03-a-019)
INFORMATIONAL CIRCULAR NO. 02-A-016 (Supersedes 01-a-019)
DATE: April 18, 2002
SUBJECT: Closing of Fiscal Year 2002 and Opening of Fiscal Year 2003
EFFECTIVE DATE: Immediately
A & R CONTACT: Annette Witt (785)-296-8083
Central Accounting Services Section
(annette.witt@da.state.ks.us)  
Steve Banning (785)-296-7059
Payroll Services Section
(steve.banning@da.state.ks.us)  
Carol Sprague (785)-296-4151
Office of the State Treasurer
(carol@treasurer.state.ks.us)  
APPROVAL: Approved by Dale Brunton
SUMMARY: Schedule of Accounting Events Relative to Fiscal Year Closing


This Informational Circular provides the scheduled dates for closing fiscal year 2002 and beginning fiscal year 2003. Additional information concerning fiscal year end closing and DA-118 List of Outstanding Obligations instructions is contained in the Division of Accounts and Reports Policy and Procedure Manual filing nos. 14,002 and 14,003. The Policy and Procedure Manual is located at http://www.da.ks.gov/ar/ppm/ppm01001.htm. Other web resources available for fiscal year end processing information can be found at http://www.da.ks.gov/ar/yearend/.<------- Broken link

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. 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). For the fiscal year 2002 closing, that date has been extended to Wednesday, July 10, 2002. During this period the Statewide Accounting and Reporting System (STARS) processes old and new fiscal year business concurrently.

The workload both at your agency and the Division of Accounts and Reports is greatly increased during the fiscal year end closing period. We ask that you use the following reminders and guidelines to help facilitate the fiscal year end processing.

SYSTEM AVAILABILITY

  • Normal hours of availability of STARS is 8AM to 5PM Monday through Friday; 24 hours on holidays and Saturdays, unless a special STARS cycle is requested; Sundays from 1PM through Monday, unless otherwise noted on the STARS news screen.
  • SHARP is available from 7AM to 6PM Monday through Friday and 1PM to 6PM Saturday and Sunday. The cutoff for receiving SHARP interface files is 5PM.
  • SOKI3+ system is available 24 hours a day except for a maintenance period between 7PM and 8PM daily.

GENERAL ITEMS

  • FY2002 documents receive a higher processing priority than do FY2003 documents during the concurrent processing period.
  • There is a two or three day period after the third Monday in July in which no daily transactions are processed.
  • State agencies should review the May monthly reports and process the necessary corrections through the SOKI3+ journal voucher system before June 30.
  • Transaction year 2002 and 2003 documents must be batched separately.
  • Transactions characterized as emergency payments should be batched separately and sent to the attention of Jerry Serk, Division of Accounts and Reports, Central Accounting Services Section, 900 SW Jackson, Room 351-S, Topeka, Kansas.

STARS ITEMS

  • During the concurrent processing period, STARS batch sheets for FY2002 transaction year should have a batch date of "06/30/02", an effective date of "06/30/02" and BFY of 2002.
  • During the concurrent processing period, STARS edits FY2003 transactions charged to "expenditure only" type accounts against fund level receipts (both FY2002 and FY2003). FY2002 transactions edit only against FY2002 receipts.
  • The available cash in prior fiscal year "receipt and expenditure" type budget units will not be available to fund FY2003 expenditures until FY2002 is closed and balances carried forward.

SOKI ITEMS

  • During the concurrent processing period, both FY2002 and FY2003 documents may be processed in the SOKI3+ system; FY2003 interfund vouchers require a BFY of 2003 for both the receipt and expenditure transactions and FY2002 interfund vouchers process as normal. FY2003 JV documents must use a BFY of 2003 throughout. The operator must choose the appropriate BFY when initiating a JV or receipt voucher during concurrent processing.
  • Beginning July 12th through year-end closing, agencies should not release any SOKI3+ transactions with a BFY of 2002. Only transactions with a BFY of 2003 will be processed during this period.
  • On July 22nd, after year-end processing is complete, all fiscal year 2003 SOKI3+ transactions, including encumbered expenditures can be processed and released for upload to STARS.
  • All SOKI3+ transactions not uploaded to STARS on July 11th in the final FY2002 upload will be FY2003 business; any SOKI3+ interfund receipt transactions will need to have BFY 2003 and any SOKI3+ unencumbered interfund expenditure transactions will require an encumbrance number and appropriate transaction code changes.

The scheduled dates for closing FY2002 and beginning FY2003 are as follows:

April 17 Letter advising agencies to prepare Real Estate Encumbrance Renewals (affected agencies only).
May 21 Letter requesting agencies to review outstanding encumbrances.
May 23 Year-end closing information at ASTRA meeting.
June 3 Annual review of housing, food service and other employee maintenance rates (DA-171).
June 3 Agencies may begin entering on-line DA-118 transactions.
June 14 Fiscal year 2003 valid funds tape and valid PCA tape sent to State Treasurer.
June 17 Preliminary fiscal year 2003 Central Chart of Accounts mailed to agencies.
June 17 Accounts and Reports, Payroll Services will insert a new row in the SHARP department budget tables effective dated June 9, 2002 which reflect a budget end date of June 8, 2003 and fiscal year of 2003.
June 17 Process payroll encumbrances for Friday, June 21 on-cycle pay date (last FY2002 on-cycle).
June 18 Informational Circular to all agencies regarding fiscal year rate changes in payroll deductions and contributions.
June 21 Review any outstanding checks and process paycheck reversals prior to June 24, 2002, which is the last off-cycle payroll charged to FY2002. Any checks issued in this cycle will be dated June 27, 2002 and charged to FY2002.
June 21 Liquidate payroll encumbrances for the on-cycle pay date of June 21.
June 24 Last payroll off-cycle to be run for FY2002 transactions and will have a paycheck date of June 27, 2002.
June 25 Process payroll accounting transactions created for true EFT reversals and cancelled checks and encumbrances from the June 24 off-cycle.
June 27 Liquidate encumbrances for the Monday, June 24 payroll off-cycle.
June 28 Regents establish Payroll Clearing Fund indexes in STARS for FY2003.
June 28 Updates to payroll position pool definitions for FY2003 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 5, 2002 (first on-cycle paychecks charged to FY2003). Updates should be entered with an effective date of June 10, 2002.
July 1 FY2003 transactions accepted for processing; beginning of concurrent processing period for final fiscal year 2002 transactions; fiscal year 2003 appropriation transactions loaded in STARS nightly cycle.
July 1 SOKI3+ system allows FY2003 transactions beginning at 8:00 A.M.
July 2 On-line entry of STARS expenditures against BFY2003 appropriated and limited funds; FY2003 appropriation transactions process in the July 1st STARS nightly batch cycle.
July 2 Process payroll encumbrances for the Friday, July 5 on-cycle paycheck date and encumbrances from the July 1 off-cycle; process accounting transactions created for true EFT reversals and cancelled checks from the July 1 off-cycle.
July 3 Final FY2002 credit card receipts and credit card clearing fund fees and charges processed by the State Treasurer.
July 5 Liquidate payroll encumbrances for the July 5 on-cycle paycheck date and July 1 off-cycle; process accounting transactions created for true EFT reversals and cancelled checks and encumbrances from the July 3 off-cycle.
July 8 DA-35 electronic files (prior period funding Payroll adjustments) must be received by 5:00 P.M.
July 9 Liquidate encumbrances for the July 3 payroll off-cycle (checks dated July 9).
July 10 State Treasurer accepts final fiscal year 2002 receipt vouchers from agencies until 3:00 P.M.
July 10 SOKI3+ receipt documents for FY 2002 must be entered by 3:00 P.M for final fiscal year 2002 receipt transactions.
July 10 Electronic transmission of FY2002 expenditure and encumbrance datasets to BDAS must occur by noon. Supporting batched documents must be received in the Central Accounting Services Section by 5:00 P.M.
July 10 Central Accounting Services Section accepts final expenditure and encumbrance batches (including DA-118 batches submitted for data entry) from agencies for FY2002 until 5:00 P.M. No firm encumbrances are allowed for State General Fund.
July 10 Agencies entering STARS payment vouchers on-line (not dataset) must have final documents for fiscal year 2002 entered by 5:00 P.M.
July 10 SOKI3+ journal voucher and interfund voucher documents for FY 2002 must be entered by 5:00 P.M.
July 11 Agencies entering payment vouchers on-line (not dataset) in STARS with a June effective date must have paper documents into the Central Accounting Services Section by 12:00 noon to avoid transactions being deleted from STARS. Vouchers processed under delegated audit authority should be released by the agency by 12:00 noon.
July 11 SOKI3+ closed to agency users. (JV, IFV and Order Modules)
July 11 SOKI3+ open for FY2003 receipts.
July 11 Final FY 2002 SOKI3+ upload to STARS.
July 12 SOKI3+ open for all FY2003 transactions.
July 15 Agencies may enter DA-118's on-line (not dataset) until 5:00 P.M. No firm encumbrances are allowed for State General Fund.
July 16 Agencies entering DA-118's on-line (not dataset) must have paper documents delivered to the Central Accounting Services Section by 12:00 noon to avoid transactions being deleted from STARS.
July 17 Final processing of June 2002 transactions expected; end of the concurrent processing period (STARS will be open to Accounts and Reports Staff only).
July 18 Begin processing for monthly and annual reports and statements, processing of closing and opening entries and preparation of opening and closing transaction reports.
July 22 June 2002 monthly STARS reports expected to be mailed to agencies.
July 22 Resume processing of July 2002 (FY2003) transactions.
July 26 FY2002 closing reports and FY2003 opening reports expected to be mailed to agencies.
August 5 DA-404, DA-406 and DA-410 STARS Budget Worksheets.
September 30 Updates to the Master List of Real Property and Form DA-87, Annual Capital Asset Reporting, due in Accounts and Reports.

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02-a-017 - Capitalization of Buildings and Building Improvements (May 13, 2002) (Supplements 02-a-012, 01-a-021, 01-a-018 )
INFORMATIONAL CIRCULAR NO. 02-A-017 (Supplements 02-a-012, 01-a-021, 01-a-018 )
DATE: May 13, 2002
SUBJECT: Capitalization of Buildings and Building Improvements
EFFECTIVE DATE: July 1, 2002
A & R CONTACT: Gail Barnhart (785) 296-7217 (gail.barnhart@da.state.ks.us)
Gary Bond (785) 296-2287 (gary.bond@da.state.ks.us)
APPROVAL: Approved by Dale Brunton
SUMMARY: Revising and establishing expenditure subobject codes for land, buildings, and improvements


Agencies often undertake building renovation, addition or improvement projects that either enhance the asset's functionality (effectiveness or efficiency), or extend the asset's expected useful life. These projects include costs for architectural and engineering design, project management, duplicating, blueprinting, materials and other ancillary services. Currently these types of expenditures are coded under the appropriate service or commodity expenditure subobject codes. Coding these transactions in this manner allows STARS to capture services for 1099-reporting purposes as required by the Internal Revenue Service. Under the current coding guidelines, agencies that have buildings and other structures must maintain a separate tracking system to associate these "project" expenditures with the appropriate building in order to capitalize these expenditures in accordance with previously issued policies regarding capital assets. These expenditures must then be manually added to the cost of the asset within the agency's fixed asset system using Form DA-83, (Corrections and Additions to Inventory Records).

To eliminate the need for agencies to maintain a separate "system" to track these expenditures, the Division of Accounts and Reports is revising subobject codes in the 2XXX series and establishing new subobject codes in the 4XXX series effective July 1, 2002. The new subobject codes will be used to process the expenditure in STARS. However, agencies should record these costs for asset reporting as subobject code 4200 (buildings and improvements) and 4400 (land nonstructural improvements) as appropriate.

The following subobject codes are being revised to reflect the non-capital designation:

2230 Duplicating, Blue-Printing and Reproducing - non-capital
2290 Other Vendor Printing and Binding - non-capital
2440 Buildings and Grounds Repair and Service - non-capital (IRS Reportable)
2710 Architects and Engineers - non-capital (IRS Reportable)
2790 Other Professional Fees - non-capital (IRS Reportable)
3410 Materials and Supplies for Buildings - non-capital

The following subobject codes are being added for services relating to land and buildings:

4230 Duplicating, Blue-Printing and Reproducing - Buildings & Improvements - capital/inventory
4239 Duplicating, Blue-Printing and Reproducing - Buildings & Improvements - capital/non-inventory
4430 Duplicating, Blue-Printing and Reproducing - Land - capital/inventory
4439 Duplicating, Blue-Printing and Reproducing - Land - capital/non-inventory
4240 Other Vendor Printing and Binding - Buildings & Improvements - capital/inventory
4249 Other Vendor Printing and Binding - Buildings & Improvements - capital/non-inventory
4440 Other Vendor Printing and Binding - Land - capital/inventory
4449 Other Vendor Printing and Binding - Land - capital/non-inventory
4250 Buildings and Grounds Repair and Service - Buildings & Improvements - capital/inventory (IRS Reportable)
4259 Buildings and Grounds Repair and Service - Buildings & Improvements - capital/non-inventory (IRS Reportable)
4450 Buildings and Grounds Repair and Service - Land - capital/inventory (IRS Reportable
4459 Buildings and Grounds Repair and Service - Land - capital/non-inventory (IRS Reportable)
4270 Architects and Engineers - Buildings & Improvements - capital/inventory (IRS Reportable)
4279 Architects and Engineers - Buildings & Improvements - capital/non-inventory (IRS Reportable)
4470 Architects and Engineers - Land - capital/inventory (IRS Reportable)
4479 Architects and Engineers - Land - capital/non-inventory (IRS Reportable)
4280 Other Professional Fees - Buildings & Improvements - capital/inventory (IRS Reportable)
4289 Other Professional Fees - Buildings & Improvements - capital/non-inventory (IRS Reportable)
4480 Other Professional Fees - Land - capital/inventory (IRS Reportable)
4489 Other Professional Fees - Land - capital/non-inventory (IRS Reportable)
4290 Materials and Supplies for Buildings - capital/inventory
4299 Materials and Supplies for Buildings - capital/non-inventory

A summary of these subobject codes may be found on the Attachment A of this circular.

The new subobject codes will follow the same pattern used for other capital assets. Building and improvement projects less than $5,000 will continue to use the 22XX, 24XX, 27XX, or 34XX subobject code. These are classified as "non-capital" expenditures.

Subobject codes 42X9 or 44X9 will be for land, buildings or improvements more than $4,999.99 but less than $100,000. These are capital, but non-inventory, and will not appear on the agency's monthly Capital Asset Expenditure Report (DAFR 8460). They will still be reportable on Form DA-84 (Land Inventory) or DA-86 (Buildings and Improvement Inventory) pursuant to K.S.A. 75-3516.

Subobject codes 42X0 or 44X0 will be used for land, building or improvements projects greater than or equal to $100,000. They are capital and inventory items and will appear on the agency's Capital Asset Expenditure Report (DAFR 8460).

All payment vouchers submitted to the Division of Accounts and Reports must clearly indicate if the payment is a maintenance repair or a capital improvement. Please state on the face of the voucher "Total improvement greater than or equal to $100,000", "Total improvement amount greater than or equal to $5,000 and less than $100,000", or "Total improvement amount less than $5,000" as appropriate.

Please note that pursuant to K.S.A. 75-3516, the Director of Accounts and Reports shall maintain a master list of real property owned by the State agencies regardless of the cost or value. The records must include the acreage, location by city and county, a brief legal description and the use and purpose of each lot, tract or parcel of land held by a state agency. Buildings or improvements of $5,000 or more will be required to be included on the master list of real property. It will be up to the agency's discretion to determine if improvements less than $5,000 are added to the master list of real property. Accounts and Reports will continue to provide the agencies with a printout of their real property each year and the agencies will make the additions or deletions using Form DA-84 and DA-86.

Policy and Procedure Manual Filing No. 7,002 and 11,749 will be updated to reflect the subobject code changes and additions.

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Attachment: Expenditure Subobject Coding for Capitalization of Land and Buildings (.pdf)  

02-a-018 - Capital Asset Reporting (June 4, 2002)
INFORMATIONAL CIRCULAR NO. 02-A-018
DATE: June 4, 2002
SUBJECT: Capital Asset Reporting
EFFECTIVE DATE: Immediately
A & R CONTACT: Financial Integrity Team:
Brett Bauer

(785) 296-2856

(brett.bauer@da.state.ks.us)
Audit Services Team:
Gail Barnhart

(785) 296-7217

(gail.barnhart@da.state.ks.us)
Gary Bond (785) 296-2287 (gary.bond@da.state.ks.us)
APPROVAL: Approved by Dale Brunton
SUMMARY: Accounts and Reports Policy and Procedure Manual Filing Number 13,001 for Capital Asset Reporting Updated


The Division of Accounts and Reports Policy and Procedure Manual Filing Number 13,001 has been updated to reflect all of the previous informational circular changes. There are no policy changes included in the updated filing, except the deadline to have all capital asset reports submitted to the Division of Accounts and Reports. The new deadline for submission is August 31st each year.

Accounts and Reports will no longer mail agencies a letter each year to remind them of the capital asset reporting deadline. Agencies will be able to print the updated Capital Asset Reporting Form (DA-87) from Accounts and Reports web site at http://www.da.ks.gov/ar/forms/ by April 1st each year. We will continue to send those agencies with real property a printout of their land and buildings for updates. In addition, the Financial Integrity Team will begin providing the agencies with their prior year ending balance to begin reporting for the current year on the Form DA-87.

The universities and those agencies that produce their own Comprehensive Annual Financial Report (CAFR) are not required to return the Capital Asset Reporting Form (DA-87). Accounts and Reports will use the agency's CAFR data for the State's financial report. All other reporting forms, however, must be submitted. The following is a list of forms required each year:

Form Title Deadlines and Comments
DA-82 Certification of Inventory Due to Accounts & Reports by August 31- required from all agencies
DA-84 Land (for additions or deletions) Due to Accounts & Reports by August 31 - used to report land additions or deletions
DA-86 Buildings (for additions or deletions) Due to Accounts & Reports by August 31 - used to report building or building improvement additions or deletions
DA-87 Capital Asset Reporting Form (for depreciation calculations) Due to Accounts & Reports by August 31 - used to depreciate assets for GAAP reporting
  Master List of Real Property Maintained by Accounts & Reports based on land and buildings annual updates (Forms DA-84 and DA-86) - used for central accounting control purposes

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02-a-019 - FY 2002 and FY 2003 Expenditure Restrictions (June 10, 2002)
INFORMATIONAL CIRCULAR NO. 02-A-019
DATE: June 10, 2002
SUBJECT: FY 2002 and FY 2003 Expenditure Restrictions
EFFECTIVE DATE: Immediately
A & R CONTACT: Appropriations / Lapses:
Annette Witt (785) 296-8083 (Annette.Witt@da.state.ks.us)
Lease Purchase Agreements/Installment Purchases:
Gail Barnhart (785) 296-7217 (Gail.Barnhart@da.state.ks.us)
Gary Bond (785) 296-2287) (Gary.Bond@da.state.ks.us)
Other Expenditure Restrictions:
Jo Ann Remp (785) 296-2277 (JoAnn.Remp@da.state.ks.us)
Randy Kennedy (785) 296-2125 (Randy.Kennedy@da.state.ks.us)
Shirley Gilchrist (785) 296-2882 (Shirley.Gilchrist@da.state.ks.us)
Mark Handshy (785) 296-7021 (Mark.Handshy@da.state.ks.us)
APPROVAL: Approved by Dale Brunton
SUMMARY: Expenditure restrictions imposed by Section 169 of Senate Bill 517


Section 169 of 2002 Senate Bill 517 authorizes a number of lapses and restrictions on expenditures for FY 2002 and FY 2003. The Division of Accounts and Reports will process transactions to lapse the amounts required in Senate Bill 517 and letters will be sent to affected agencies.

Vouchers submitted to the Division of Accounts and Reports for payment of any of the following restricted items will be returned unprocessed to the submitting agency:

Office Furniture and Equipment

No expenditures are allowed from moneys appropriated from the State General Fund for any state agency during FY 2003 for purchase of office furniture and office equipment. These are purchases that are usually coded as expenditure subobject code 403X. Exception is allowed for purchases of office furniture and office equipment from the Correctional Industries program of the Department of Corrections. Purchases of office furniture and equipment from funds other than the State General Fund are not affected by this restriction.

Personal Computers, Servers and Other Computer Equipment

No expenditures are allowed from any moneys appropriated from the State General Fund for any state agency during FY 2003 for purchases of personal computers, servers or any other computer equipment other than through existing statewide purchasing contracts entered into by the Director of Purchases. Exceptions are provided to this restriction if an agency has advised and consulted with the Joint Committee on Information Technology and upon approval of the State Finance Council. Purchases of personal computers, servers and other computer equipment from funds other than the State General Fund are not affected by this restriction.

Lease Purchase Agreements and Installment Purchases

No expenditures may be made from any fund for the remainder of FY 2002 or for FY 2003 for a state agency to enter into, to otherwise provide for an agency to enter into, or to make any payments or other expenditures pursuant to, any installment purchase agreement or any lease with an option to purchase agreement for the acquisition of any item of equipment or other item of personal property with a purchase price of $500,000 or more.

There are several exemptions from this restriction. They are: (1) the lease or project is approved for financing pursuant to KDFA statutes; (2) the installment purchase agreement or lease with option to purchase agreement is an existing obligation entered into prior to June 6, 2002; (3) the installment purchase agreement or lease with option to purchase agreement is for energy or other facility conservation improvements; (4) the equipment or other personal property acquired through an installment purchase agreement or a lease with an option to purchase agreement was specifically identified in a state agency's budget submission pursuant to K.S.A. 75-3717 and funding was appropriated therefor; or (5) the installment purchase agreement or lease with option to purchase agreement is approved by the State Finance Council.

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