02-a-019 - FY 2002 and FY 2003 Expenditure Restrictions (June 10, 2002)

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:
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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