FY 2004

DATE:	June 6, 2003
SUBJECT:	Private Vehicle Mileage
EFFECTIVE DATE:	July 1, 2003
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:
SUMMARY:	FY 2004 Privately Owned Vehicle Mileage Reimbursement Rates

As authorized by K.S.A.75-3203a, the Secretary of Administration has fixed the private vehicle mileage reimbursement rates for FY 2004 at:

• 17¢ per mile for privately owned motorcycle
• 36¢ per mile for privately owned automobile
• 48¢ 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.)

These rates reflect increases in all categories except the specially equipped vehicle for the physically disabled.

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. The rate for FY 2004, has been established at 20 cents per mile. The complete schedule of motor pool rates will be distributed by Central Motor Pool.

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DATE:	June 6, 2003
SUBJECT:	FY 2004 Subsistence Rates
EFFECTIVE DATE:	July 1, 2003
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:
SUMMARY:	FY 2004 Meal Allowance and Lodging Rates

Due to continuing budget constraints, there will be no change in the meal allowance and lodging rates for fiscal year 2004. As authorized by K.S.A.75-3203a, the Secretary of Administration has fixed the rates at:

Meal Allowance:

Reduced Meals Allowance:

If the cost of meals is included within the cost of registration fees or other fees and charges paid by the agency or supplied without cost by another party, the meals allowance should be reduced as follows:

Same Day Meals Allowance:

The rates as established in accordance with K.A.R. 1-16-18(c)(3) are the same as indicated in the table above for reduced meals allowance.

K.S.A. 75-3207a(f) provides that the daily lodging expense limitations established above may be exceeded by the lesser of either: (1) an additional 50% of the applicable lodging expense limitation, or (2) the actual lodging expense incurred.

These lodging limits continue to be applied to the lodging rate before taxes. Thus, the amount reimbursed or paid for lodging expenses may exceed the established lodging limitation by as much as the amount of associated taxes.

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DATE:	June 18, 2003
SUBJECT:	Expenditure Sub-object Codes for Fees to State Treasurer's Office
EFFECTIVE DATE:	July 1, 2003
A & R CONTACT:	Pam Karns Mike Lovich	(785) 296-2660 (785) 296-2131	(pam.karns@da.state.ks.us) (mike.lovich@da.state.ks.us)
	Martin Eckhardt	(785) 296-2661	(martin.eckhardt@da.state.ks.us)
APPROVAL:
SUMMARY:	Establishment of additional expenditure sub-object codes to record fees paid to the State Treasurer's Office.

State general funding was not appropriated for the State Treasurer's Office for fiscal year 2004. In its place Senate Substitute for House Bill No. 2444, § 65, authorizes the State Treasurer to charge fees in order to be reimbursed for services provided. In order to meet the cost accounting needs related to these fees and the statewide cost allocation plan requirements under the federal Office of Management and Budget Information Circular A-87 guidelines, four new expenditure sub-object codes are being established under the category "Fees-Other Services" as follows:

Please Note: During FY 2004, 50% of the Non-Payroll Warrant/Electronic Fund Transfer (EFT) Fees will be federally allowable (ESO 2694) and 50% will be federally unallowable (ESO 2695).

The State Treasurer's Office FY 2004 Estimated Fee Schedule may be accessed at; http://www.interfunds.state.ks.us/help/treas_billing_info.pdf. <------- Broken link Questions regarding these fees should be directed to Peggy Hanna at the State Treasurer's Office by e-mail address, peggy@treasurer.state.ks.us, or by phone at (785) 296-5464.

These additional expenditure sub-object codes will be reflected in the Uniform Expenditure Classification of Expenditure Sub-object Codes filing (PPM No. 7,002) on the Division of Accounts and Reports web site http://www.da.ks.gov/ar/ppm/.

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DATE:	July 3, 2003
SUBJECT:	Expenditure Sub-object Code to Capture Cellular Phone Costs
EFFECTIVE DATE:	July 1, 2003
A & R CONTACT:	Randy Kennedy	(785) 296-2125	(randy.kennedy@da.state.ks.us)
	JoAnn Remp	(785) 296-2277	(joann.remp@da.state.ks.us)
APPROVAL:
SUMMARY:	Establishment of an additional expenditure sub-object code for cellular phone costs and description revisions to three other expenditure codes

In an effort to consolidate information on all cellular phone costs a new expenditure sub-object code is being established effective July 1, 2003 as follows:

The following expenditure sub-object codes included references to cellular phone costs and should now be coded to the new sub-object code for cellular phones. The descriptions for the following expenditure sub-object codes are being revised as follows:

These changes will be reflected in the Uniform Expenditure Classification of Expenditure Sub-object Codes filing (PPM No. 7,002) on the Division of Accounts and Reports web site http://www.da.ks.gov/ar/ppm/.

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DATE:	July 8, 2003
SUBJECT:	Revenue Sub-object Code for ADB Interest
EFFECTIVE DATE:	July 1, 2003
A & R CONTACT:	Brett Bauer	(785) 296-4903	(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:
SUMMARY:	Establishment of an additional revenue sub-object code to further segregate Average Daily Balance earned versus transferred.

In an effort to provide a further breakdown of ADB interest earned by a fund versus ADB interest transferred in, the following revenue sub-object code is being established effective July 1, 2003:

Currently, the initial transfer of ADB interest earnings from the State General Fund to those accounts that are required to receive ADB interest is recorded as revenue sub-object 6608, Operating Transfers Out - Interest Allocation and revenue sub-object 6607, Operating Transfers In - Interest Allocation. A secondary transfer of ADB interest to a single budget unit within a fund is also recorded with revenue sub-objects 6608 and 6607. This new revenue sub-object code will be used instead of 6608 and 6607 to record the initial transfer of ADB interest earnings from the State General Fund. The secondary transfer that moves ADB interest between budget units will remain the same.

This change will be reflected in the Uniform Receipt Classification Revenue Sub-object Codes filing (PPM No. 6,002) on the Division of Accounts and Reports website http://www.da.ks.gov/ar/ppm/.

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DATE:	September 17, 2003
SUBJECT:	Processing of Transactions for Federal Grants
EFFECTIVE DATE:	Immediate
A & R CONTACT:	Pam Karns Mike Lovich	(785) 296-2660 (785) 296-2131	(pam.karns@da.state.ks.us) (mike.lovich@da.state.ks.us)
APPROVAL:
SUMMARY:	Updated the guidance on federal grants to include notification of the requirement for a Duns number and revised audit thresholds.

Informational circular 01-A-015 published on March 30, 2001 provided and revised the documentation required for federal grant moneys. This informational circular contains the final revisions to Circular No. A-133, notice of final policy issuance, and the Informational Circular 01-A-015 in its entirety. The revisions to information circular 01-A-015 are in italics.

The Office of Management and Budget (OMB) issued final revision to Circular A-133 in the June 27, 2003 Federal Register that concerns state, local governments, and non-profit organizations. The purpose of these final revisions is to (1) increase the threshold for audit from $300,000 to $500,000 and (2) increase the threshold for cognizant agency for audit from $25 million to $50 million.

At the same time, the Office of Management and Budget (OMB) issued a policy directive to implement the requirement for grant applicants to provide a Dun and Bradstreet (D&B) Data Universal Numbering System (DUNS) number when applying for Federal grants or cooperative agreements on or after October 1, 2003. A DUNS number must be included in every application for a new award or renewal of an award, whether an applicant is submitting a paper application or using the government-wide electronic portal (Grants.gov). By using the Grants.gov portal, entities will be able to store in a central repository organizational information that does not change from application to application. The DUNS number will be one of those stored elements. The universal identifier will be used for tracking purpose and to validate address and point of contact information for improved statistical reporting of federal grants and cooperative agreements. The use of DUNS numbers to identify entities receiving federal contracts enables the federal government to determine hierarchical data for related organizations. Copies of the organization's family-tree hierarchy can be obtained at OMB's Grants.gov online portal along with guidelines on how to obtain a DUNS number.

Applicants should verify that they have a DUNS number or take the necessary steps to obtain a DUNS number "as soon as possible" if there is a possibility that they may seek a grant on or after October 1, 2003. Applicants can receive a DUNS number at no cost by calling the toll free DUNS number request line at 1- 866-705-5711 or online at http://www.dnb.com/us/. About 10 to 12 data elements are required for Dun and Bradstreet to assign a DUNS number, including business name, address, telephone numbers, ownership information, length of establishment, legal structure of business, primary line of business and number of employees.

The State receives over $2 billion in federal grants annually. These grants/awards are received and used by many different state agencies. Each individual grant agreement usually includes certain specific language related to the use or distribution of the grant monies. The general categories of requirements are described in federal Office of Management and Budget (OMB) Circular A-133. We have attached a listing of certain definitions from the OMB Circular A-133 (Attachment 1). It is recommended that those agencies receiving federal grant awards obtain a copy of this circular. A copy of the circular may be obtained from the OMB home page at http://www.whitehouse.gov/omb under the caption Information for Agencies, Circulars.

Noncompliance with grant requirements may result in a refund of grant monies or the loss of funding for grant programs. Each state agency is responsible for identifying the federal awards received and expended and the programs under which they were received. This includes the Catalog of Federal Domestic Assistance (CFDA) number and name, award number and name, name of the federal agency, and applicable compliance requirements. Not only is this a federal requirement but much of this information is also necessary for preparation of the "Schedule of Expenditures of Federal Awards" contained in the "Financial and Compliance Audit Report State of Kansas Single Audit". This schedule lists all federal awards by federal agency, by federal CFDA/contract number, the name of the federal grantor/program/pass-through grantor, the dollar amount of the expenditures, and the amount of the funds passed through to subrecipient entities. The agency is also responsible for monitoring the subrecipient's activities. This is to provide reasonable assurance that the award is administered in compliance with federal requirements, for ensuring required audits are performed and prompt corrective action is taken, and for evaluating the impact of subrecipient activities on the pass-through entity's ability to comply with applicable federal regulations.

Non-federal entities that expend $500,000 or more in a year in federal awards shall have a single audit or program specific audit conducted for that year. Non-federal entities that expend less than $500,000 a year in federal awards are exempt from federal audit requirements for that year, but records must be available for review or audit by appropriate officials of the federal agency, pass-through entity and the General Accounting Office (GAO) of the federal government. Subpart B-Audits §__.200 Audit requirements, page 17 of OMB Circular A-133 should be referred to for more specific details.

It is the responsibility of each agency to maintain information to identify its federal receipts and expenditures by CFDA number and name, the name of the federal agency from which the grant is received, and each grant type. The grant receipt or payment types include: receipt (or payment includes a recipient deposit), a pass-through deposit, a transfer of federal funds where the pass-through entity and the subrecipient entity are both state agencies, a vendor payment for goods or services, and expenditures to subrecipients outside the state system. Payment documents for internal agency operations will not require federal grant information to be included on the vouchers. However, this information must be readily accessible by the auditors during the annual A-133 audits. Grant receipt documents, transfers of federal funds to another state agency by interfund voucher (expenditure subobject code 7310) and warrant payments to entities outside of the State (expenditure subobject codes 5010-5080 and 7940) must have this information on the receipt and payment documents to enable the A-133 auditors to discern the source and type of federal grant payments.

State agency is a recipient

When a state agency is a recipient, it should record the receipt of federal funds as revenue sub-object (RSO) code 40xx. When the agency expends the federal funds to the beneficiary of the program, it should record them as expenditure sub-object (ESO) code 50xx or 55xx. When the agency expends the federal funds as program expenditures to a vendor, it should record them using the appropriate ESO code.

State agency is a pass-through entity

When a state agency is a pass-through entity, it should record the receipt of federal funds as RSO code 40xx. When it passes through (expends) the federal funds to an outside entity, it should record it as ESO code 50xx. When the agency passes through (expends) the federal funds to the subrecipient state agency, it should record them as ESO code 7310.

State agency is a subrecipient

When a state agency is a subrecipient from another state agency, it should record the receipt of federal funds as RSO code 6605. When the agency expends the federal funds as program expenditures to a vendor, the agency should record them using the appropriate ESO code.

Recipient and subrecipient entities may both make payments to vendors with grant monies. Vendors may be other state agencies, other governments, or may be non-governmental entities. Attachment 2 reviews vendor indicators in detail as does paragraph §___.210, page 18, of OMB Circular A-133.

A complete discussion of the responsibilities and obligations of recipient, subrecipient, pass-through and vendor entities is contained in OMB Circular A-133. Attachment 2 is a checklist to assist agencies in determining subrecipient, vendor, and pass-through entity. Policy and Procedure Manual Filing Numbers 6,002 and 7,002, OMB Circular A-133, and Characteristics of Subrecipients and Vendors (Attachment 2) will guide agencies in their coding for federal grant transactions.

Agency use of the following expenditure and revenue sub-object codes should be reviewed closely:

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Attachment 1: Certain Definitions from OMB Circular No. A-133 
Attachment 2: Characteristics of Subrecipients and Vendors (.pdf)

DATE:	September 19, 2003
SUBJECT:	Requesting a DUNS number for Federal Grants
EFFECTIVE DATE:	Immediate
A & R CONTACT:	Pam Karns Mike Lovich	(785) 296-2660 (785) 296-2131	(pam.karns@da.state.ks.us) (mike.lovich@da.state.ks.us)
APPROVAL:
SUMMARY:	Addendum to the circular for "Processing of Transactions for Federal Grants" concerning the request for a DUNS number.

Informational circular 04-A-006 published on September 17, 2003 provided and revised the documentation required for federal grant moneys and contained documentation on the final revisions to Circular No. A-133. This informational circular also contained information concerning the Dun and Bradstreet (D&B) Data Universal Numbering System (DUNS) number. A policy directive was issued by the Office of Management and Budget (OMB) to implement the requirement for grant applicants to provide a DUNS number when applying for Federal grants or cooperative agreements on or after October 1, 2003. As previously stated a DUNS number must be included in every application for a new award or renewal of an award, whether an applicant is submitting a paper application or using the government-wide electronic portal (Grants.gov). Guidelines on how to obtain a DUNS number can be obtained at OMB's Grants.gov online portal. Applicants can receive a DUNS number at no cost by calling the toll free DUNS number request line at 1- 866-705-5711 or online at http://www.dnb.com/us/. Additional information has come to our attention since issuing informational circular 04-A-006 and applicants should note that obtaining a number through the Web site may take up to 30 days and the phone requests are processed within 24 hours.

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DATE:	November 24, 2003
SUBJECT:	Private Vehicle Mileage Reimbursement
EFFECTIVE DATE:	December 1, 2003
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)
	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:
SUMMARY:	Clarifies the allowable private vehicle mileage reimbursement rate due to the elimination of Central Motor Pool vehicles. Also announces that the State of Kansas will not increase the privately-owned vehicle reimbursement rate to match the IRS increase.

In conjunction with the elimination of Central Motor Pool Vehicles, this circular is intended to clarify that if an agency determines that using a privately owned automobile is the most effective mode of travel, the reimbursement rate is $.36 per mile.

The $.36 per mile rate has been in effect since July 1, 2003 for travel in a private vehicle when a state vehicle is not available. KAR 1-18-1a provides that any state employee choosing to use a privately owned automobile when a state-owned or state-leased vehicle is available for use is to be reimbursed at the central motor pool rate for compact cars (unless the agency head determines that use of the state vehicle would be more expensive or the employee has a disability that requires the use of a privately owned vehicle that is specially equipped).

Effective December 1, 2003, there will no longer be a central motor pool rate to use in those circumstances. However, K.A.R. 1-18-1a also provides that, if a mode of transportation is available and is less costly than transportation by privately owned conveyance, mileage payments for use of a privately owned vehicle are to be limited to the cost of that other mode of transportation. Therefore, if an employee wants to drive a privately owned vehicle, but an Enterprise rental vehicle or state agency vehicle is available at a lower cost, the agency can limit the reimbursement to the cost of the Enterprise vehicle or state agency vehicle.

Each agency will be responsible for deciding whether to approve travel and which of the three available options - use of a state-owned vehicle, a privately owned vehicle, or an Enterprise rental vehicle - is appropriate and cost-effective given the circumstances of the travel.

Many of you are aware that the Internal Revenue Service (IRS) has announced an increase in the standard mileage rate to 37.5 cents per mile effective January 1, 2004. The State of Kansas will NOT raise the privately owned automobile reimbursement rate at that time. K.S.A. 75-3203a provides that the mileage reimbursement rate shall not exceed the lowest of the following rates:

1. The rate allowed by IRS;
2. The rate used in preparing the governor's budget report under K.S.A. 75-3721, and amendments thereto; or
3. Any revision of the rate as specifically directed in appropriation acts of the legislature.

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DATE:	November 24, 2003
SUBJECT:	Changes in Central Motor Pool and State Vehicle Operations
EFFECTIVE DATE:	December 1, 2003
A & R CONTACT:	Jo Ann Remp	(785) 296-2277	(joann.remp@da.state.ks.us)
APPROVAL:
SUMMARY:	This circular is to notify agencies where to find information regarding the changes in Central Motor Pool and State Vehicle Operations.

As you may be aware, many changes are occurring related to Central Motor Pool and State Vehicle Operations. These changes will affect your agency and the options your employees will have for travel on official state business beginning December 1, 2003.

The Department of Administration has compiled comprehensive information regarding these changes. This information is available at the Department of Administration web site (http://www.da.ks.gov/). Information on the following topics is available by selecting "Vehicle Usage Information", as well as a contact person for each topical listing.

• Accident Reporting Requirements
• ADA Vehicle availability at Central Motor Pool
• Auction of State Vehicles
• Business Procurement Card (used for automotive fuel)
• Business Travel Accounts (used with Enterprise contract)
• Enterprise Contract
• Procedures for Checking out an Enterprise vehicle
• Federal Excise Tax Reporting
• Fuel (source for agency-owned vehicles in Topeka)
• Fuelman (used for automotive fuel)
• Insurance (general legal issues)
• Insurance (billing and operational issues)
• Private Vehicle Mileage Reimbursement / Miscellaneous Travel Issues
• Moratorium on Vehicle Purchases / Appeals to Division of Budget
• Record keeping for agency-owned vehicles
• Registration / Titles / Tags for agency-owned vehicles
• Repair and Maintenance of agency-owned vehicles
• Van Pool Program

The Department of Administration will continue to update these web pages as new information becomes available.

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DATE:	December 4, 2003
SUBJECT:	Procedures for filing 2003 Form 1099 Information Returns
EFFECTIVE DATE:	Immediately
A & R CONTACT:	Don Beck	(785) 296-7291	(don.beck@da.state.ks.us)
APPROVAL:
SUMMARY:	Procedures for Filing 2003 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 2003 calendar year 1099 information returns for the State of Kansas, 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 2003, for payments not issued directly through STARS, are as follows:

1. Agencies that have made expenditures as described, will be responsible for the preparation and delivery of the appropriate 1099 form to the payees prior to January 31, 2004. Do not mail form directly to the IRS or to the Kansas Department of Revenue. The payer's FEIN to use for the State of Kansas is 48-1124839. We no longer submit 1099's using 48-6029925.
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.
3. For those agencies with other expenditures to report, the DA-43 form (http://www.da.ks.gov/ar/forms) <------- Broken link should be used if you have fewer than 20 records. If you have 20 or more records to submit they should be submitted as a text file in the attached format shown on the Non-STARS record layout form. You may submit a text file for fewer than 20 records if you want. All data should be remitted by February 16, 2004 to:

   Division of Accounts and Reports

   Central Accounting Services Section

   900 SW Jackson, Room 351-S, LSOB

   Topeka, Kansas 66612-1248

   Attention: Don Beck

4. If you are submitting a text file you may submit the file via a diskette or e-mail the file as an attachment to don.beck@da.state.ks.us.
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.

Business Procurement Card purchases made for 1099 reportable purchases to 1099 reportable vendors should be journal vouchered in STARS to the recipient's FEIN prior to December 31st. BPC 1099 reportable purchases not charged to the recipient's FEIN by December 31st must be reported to Accounts and Reports prior to January 15th, 2004 so adjustments may be made to the 1099 file prior to the 1099's being printed.

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Attachment: Non-STARS record layout (.pdf)

DATE:	February 4, 2004
SUBJECT:	Individual Business Procurement Card (BPC) Transaction Limits
EFFECTIVE DATE:	Immediately
A & R CONTACT:	Tim Hund	(785) 368-6347	(tim.hund@da.state.ks.us)
APPROVAL:
SUMMARY:	The Individual Business Procurement Card (BPC) Transaction Limit is raised to $5,000.

Effective immediately, the maximum transaction limit for an individual business procurement card (BPC) is $5,000. This includes the individual cards with the registration option. This does not affect the transaction limits for automotive cards, or contract and registration accounts.

Transaction limits will not automatically be raised to the new maximum. For those agencies choosing to raise transaction limits, the Agency BPC Coordinators should contact UMB Bank and provide the cardholder's account number, cardholder name, and the new transaction limit.

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DATE:	February 24, 2004
SUBJECT:	Kansas State Fair - Holiday Inn Lodging Rates
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:
SUMMARY:	The Holiday Inn at Hutchinson has agreed to accept the State's maximum lodging reimbursement rate for the 2004 State Fair.

If your agency has made lodging reservations at the Holiday Inn in Hutchinson for the 2004 State Fair and the rates quoted were in excess of the maximum allowed of $103.50 before taxes ($69.00 + 50% per paragraph 4200 of the Employee Travel

Expense Reimbursement Handbook), please contact Kristine Davidson, General Manager, at (620) 669-5200 to adjust the rates down to our maximum rate.

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DATE:	February 27, 2004
SUBJECT:	Electronic Checks
EFFECTIVE DATE:	Immediately
A & R CONTACT:	Randy Kennedy	(785) 296-2125	(randy.kennedy@da.state.ks.us)
	Jo Ann Remp	(785) 296-2277	(joann.remp@da.state.ks.us)
APPROVAL:
SUMMARY:	Electronic Checks (E-Checks) Processing Similar to Credit Card Acceptance Program

Informational Circular 01-A-014 dated February 23, 2001 provided information and procedures recommended for the Credit Card Acceptance Program. These procedures will remain the same.

The procedure for processing credit card transactions through the STARS system required the creation of a Credit Card Clearing Fund in some agencies. This clearing fund should also be used for the electronic checks (E-Checks) and the fund will be in the 9XXX series of fund numbers. The fund would only be used for processing credit card transactions and E-Checks and would work as follows:

1. As often as daily, the State Treasurer will process an electronic receipt voucher to deposit revenue from credit card transactions and E-Checks to the Clearing Fund.

The transaction will remain the same for the credit card receipts and use a transaction code (T/C) 606 (Due to other funds and appropriations) and revenue sub-object 6700 (Suspense). The E-Checks receipts should use the same transaction code 606 and the new revenue sub-object code 6703 (Suspense for E-Checks) which has been established to differentiate between the credit card receipts and the E-Checks. The additional revenue sub-object code will be reflected in the Uniform Receipt Classification of Revenue Sub-object Codes filing (PPM No. 6,002) on the Division of Accounts and Reports web site http://www.da.ks.gov/ar/ppm/.

1. Each agency will be responsible for reconciling the deposits and processing a SOKI journal voucher (select "E-Checks" as the document type) to transfer these receipts out of the Clearing Fund to the proper budgetary fund(s) within the agency.
    

• When the agency receives only the revenue net of fees: The journal voucher will use T/C 606R and revenue sub-object 6700 for credit card receipts and 6703 for E-Checks to move the corresponding receipts out of the clearing fund. The other entry will use T/C 602 (fund level deposits) or T/C 604 (account level deposits) with the applicable revenue sub-object (example - 2110), to deposit the credit card receipts into the correct fund of the agency. The gross amount of the fee (revenue) being collected (example - 2110) should be recorded. In some cases if the fee charged for the electronic check is netted against the receipts, an additional transaction that posts to expenditures, T/C 603R, and expenditure sub-object code 2696 (see Step C) will need to be used to post these E-Check fees.

2. When the agency receives the gross amount of the fees (revenue) collected and pays fees as a separate transaction: At least once each month the Treasurer debits the Clearing Fund to charge each agency the credit card fees using expenditure sub-object code 2691 (Credit Card Fees and Charges). It will be the agency's responsibility to handle the E-Check fees. A new expenditure sub-object code has been established to record the E-Check fees which is expenditure sub-object code 2696 (E-Checks Fees and Charges). The gross amount of the receipt collected should be recorded in the STARS system along with the fee charged the agency. The additional expenditure sub-object code will be reflected in the Uniform Expenditure Classification of Expenditure Sub-object Codes filing (PPM No. 7,002) on the Division of Accounts and Reports web site http://www.da.ks.gov/ar/ppm/. SOKI help will also be updated to reflect proper usage of these codes.

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DATE:	March 29, 2004
SUBJECT:	Contract Numbers
EFFECTIVE DATE:	July 1, 2004
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:
SUMMARY:	FY05 Encumbrance Numbers to be Assigned by Agencies

The Division of Accounts and Reports has traditionally assigned new encumbrance (document) numbers to form DA-146, Contract Cover Sheets, and form DA-107, Encumbrance Authorization or Adjustments. However, after reviewing this process, we have determined that this task can be completed more efficiently by agencies, and will allow agencies to better track these documents from the time they leave the agency, until the encumbered copies are returned with all of the signatures.

New Contract Cover Sheet encumbrances (DA-146) with an effective date of July 1, 2004 or after should be submitted with an agency designated encumbrance number using the format described below:

New miscellaneous encumbrances submitted on form DA-107 effective July 1, 2004 or after should use the following format:

These changes do not apply to Real Estate Lease Cover Sheets (Form DA-47). The Division of Facilities Management and the Division of Accounts and Reports have determined that these document numbers will continue to be assigned by Accounts and Reports to avoid number duplications.

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DATE:	April 6, 2004
SUBJECT:	Printing of the STARS Chart of Accounts
EFFECTIVE DATE:	April 6, 2004
A & R CONTACT:	Don Beck	(785) 296-7291	(don.beck@da.state.ks.us)
APPROVAL:
SUMMARY:	Procedures for Printing the STARS Chart of Accounts

The STARS statewide Chart of Accounts is now accessible through the Division of Accounts and Reports WEB page. Agencies now have the capability to access and print their own Chart of Accounts any time they wish.

To access the Chart of Accounts, go to the A&R web page at http://www.da.ks.gov/ar/. Under the heading 'General Accounting' click on 'Chart of Accounts'. This will bring you to a listing of the agencies. Click on your agency to display your Chart of Accounts for inquiry or printing.

In the past the Chart of Accounts was only updated and distributed to the agencies approximately 4 times per year due to the cost of printing. The Chart of Accounts will now be updated on a monthly basis, thereby giving you more current information.

If you have difficulties accessing the Chart of Accounts on the web site or have questions, please contact Don Beck.

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DATE:	April 20, 2004
SUBJECT:	Closing of Fiscal Year 2004 and Opening of Fiscal Year 2005
EFFECTIVE DATE:	Immediately
A & R CONTACT:	Annette Witt	(785) 296-8083	(annette.witt@da.state.ks.us)
	Central Accounting Services Section
	Steve Banning	(785) 296-7059	(steve.banning@da.state.ks.us)
	Payroll Services Section
	Carol Sprague	(785) 296-4151	(carol@treasurer.state.ks.us)
	Office of the State Treasurer
APPROVAL:
SUMMARY:	Schedule of Accounting Events Relative to Fiscal Year Closing

This Informational Circular provides the scheduled dates for closing fiscal year 2004 and beginning fiscal year 2005. 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. To allow state agencies time to process as much old year business as possible, the old year records normally remain open through the second Monday of July (PPM No. 14,002). So, for the fiscal year 2004 closing, the cutoff date will be Monday, July 12, 2004. Between July 1 and July 12, the Statewide Accounting and Reporting System (STARS) will process 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.

SPECIAL ITEMS

• State Treasurer cash management fees for June 2004 will probably not be billed to agencies in time for payment in FY2004 business; agencies must encumber for payment of this obligation if not paid in FY2004.
• No Budget Worksheets will be printed from STARS. The Budget Worksheet data from STARS will be electronically loaded into the Budget Management System by August 11th.
• The dates provided on this document that relate to fiscal year closing and opening activities will be revised, as necessary, by the Division of Accounts and Reports. Any revisions to payroll encumbrance or other processing dates will be posted on the SHARP Customer Service Website, http://www.da.ks.gov/SHARP/. Revisions to STARS processing dates will be posted on the STARS News Display and notice of revisions to SOKI³⁺ processing dates will be sent via email to all users.

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

• FY2004 documents receive a higher processing priority than do FY2005 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.
• Transactions characterized as emergency payments requiring immediate attention during this time should be batched separately and sent to the attention of Jo Ann Remp, Division of Accounts and Reports, Central Accounting Services Section, 900 SW Jackson, Room 351-S, Topeka, Kansas.
• State agencies should review the May monthly reports and process the necessary corrections through the SOKI³⁺ journal voucher system before June 30.
• Transaction year 2004 and 2005 documents must be batched separately.

STARS ITEMS

• During the concurrent processing period, STARS batch sheets for FY2004 transaction year should have a batch date of "06/30/04", an effective date of "06/30/04" and BFY of 2004.
• During the concurrent processing period, STARS edits FY2005 transactions charged to "expenditure only" type accounts against fund level receipts (both FY2004 and FY2005). FY2004 transactions edit only against FY2004 receipts.
• The available cash in prior fiscal year "receipt and expenditure" type budget units will not be available to fund FY2005 expenditures until FY2004 is closed and balances carried forward.
• In order to check balances in STARS during concurrent processing, agencies need to remember to make the appropriate selection for "prior month".
• If your agency would like to receive reports for June business after July 1, you must ensure that the appropriate report request record is entered into STARS.

SOKI³⁺ ITEMS

• During the concurrent processing period, both FY2004 and FY2005 documents may be processed in the SOKI³⁺ system; FY2005 interfund vouchers require a BFY of 2005 for both the receipt and expenditure transactions and FY2004 interfund vouchers process as normal. FY2005 JV documents must use a BFY of 2005 throughout. The operator must choose the appropriate BFY when initiating a JV or receipt voucher during concurrent processing.
• Beginning July 14th through year-end closing, agencies should not release any SOKI³⁺ transactions with a BFY of 2004. Only transactions with a BFY of 2005 will be processed during this period.
• On July 21st, after year-end processing is complete, all fiscal year 2005 SOKI³⁺ transactions, including encumbered expenditures can be processed and released for upload to STARS.
• All SOKI³⁺ transactions not uploaded to STARS on July 13th in the final FY2004 upload will be FY2005 business; any SOKI³⁺ interfund receipt transactions will need to have BFY 2005 and any SOKI³⁺ unencumbered interfund expenditure transactions will require an encumbrance number and appropriate transaction code changes.

The scheduled dates for closing FY2004 and beginning FY2005 are as follows:

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DATE:	April 21, 2004
SUBJECT:	Expenditure and revenue sub-object codes for transactions used to fund principal and interest accounts to cover debt service
EFFECTIVE DATE:	July 1, 2004 (FY2005 business)
A & R CONTACT:	Pam Karns Mike Lovich	(785) 296-2660 (785) 296-2131	(pam.karns@da.state.ks.us) (mike.lovich@da.state.ks.us)
APPROVAL:
SUMMARY:	Revision of existing expenditure sub-object code and establishment of new expenditure sub-object codes for the processing of the transactions used to fund principal and interest accounts to cover debt service payments on the related debt and to fund arbitrage rebate accounts

Informational Circular 03-A-023, dated June 2, 2003, was issued in an effort to attain consistency in coding related to transactions processed against budgetary funds for the purpose of funding principal and interest accounts to cover debt service payments. That informational circular advised that expenditure sub-object 6210 should be used for this purpose.

In an effort to align transactions processed through the central accounting system with the coding used in the budget system, we are modifying the description of expenditure sub-object 6210 to identify the principal portion only and establishing new expenditure sub-objects 6211 to identify the interest portion and 6212 to identify the arbitrage portion.

Effective with fiscal year 2005 business, the following expenditure sub-objects should be used when processing transactions against budgetary accounts for the purpose of funding principal and interest accounts to cover debt service payments:

*6201 Other Payments and Charges for Debt Service: For transactions used to fund principal and interest accounts for debt service payments and to fund arbitrage rebate accounts.

6210 Other Payments and Charges for Debt Service - Principal (revised)
6211 Other Payments and Charges for Debt Service - Interest (new)
6212 Other Payments and Charges for Debt Service - To fund arbitrage (new)

*Intermediate Classification - Do not use; A more detailed classification must be used.

The revenue sub-object will remain the same for the receipt into the debt service funds.

5913 Other Revenue - Agency Funds Authorized for Debt Service

There are three "sets" of transactions which normally occur related to the payment of bonds. Additional information relating to each of these transactions is included below.

1. Debt Service Payments from various agency accounts into agency bond principal and interest accounts.

The Division of Budget recognizes that the amounts paid from the budgetary funds into the debt service funds may not equal the amounts necessary to satisfy the principal and interest obligations of the debt service funds (due to interest earnings by the debt service funds, etc). Therefore, agencies should use the amount provided by the Kansas Development Finance Authority (KDFA) as "principal amount" to determine the amount to be coded to principal (expenditure sub-object 6210) and code the remaining balance of the amount paid in to the debt service fund as interest (expenditure sub-object 6211). The Division of Accounts and Reports will not be in a position to audit these transactions for appropriate expenditure sub-object coding. Questions concerning expenditure sub-object coding of these transactions should be addressed to your assigned budget analyst.

The following transactions should be processed in via SOKI3+ to record all debt service payments from various agency funding sources into agency bond principal and interest accounts:

Expenditure Portion (agency)

Revenue Portion (agency)

2. Principal and Interest payments from agency bond principal and interest accounts to the State Treasurer's Office.

Principal and interest payments to the State Treasurer will continue to be processed using expenditure sub-object 6020 for revenue bond principal payments and expenditure sub-object 6120 for interest and service charges on the bond debt. The State Treasurer receipts the payments into their fiscal agency fund, 7754, using revenue sub-object 6400. The State Treasurer, in their role as the designated paying agent, then generates the warrants to bondholders/creditors.

The following transactions will be processed via the SOKI3+ Interfund System.

Expenditure Portion (agency)

Revenue Portion (State Treasurer)

3. Arbitrage Rebate Payments from various agency accounts to the KDFA rebate account.

If the agency is required by the Internal Revenue Service (IRS) to make arbitrage rebate payments, the agency remits funds into the bond rebate account using expenditure sub-object 6212. The revenue is receipted into the rebate account using revenue sub-object 5913. The payment to the IRS is made at the direction of KDFA using expenditure sub-object code 6195.

The following transactions will be processed via the SOKI3+ Interfund System.

Expenditure Portion (agency)

Revenue Portion (KDFA)

These revisions will be reflected in the Uniform Expenditure Classification of Expenditure Sub-Object Codes filing (PPM No. 7,002) on the Division of Accounts and Reports web site at http://www.da.ks.gov/ar/ppm/.

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DATE:	May 3, 2004
SUBJECT:	Over-riding Transaction Limits for Automotive BPCs
EFFECTIVE DATE:	Immediately
A & R CONTACT:	Tim Hund	(785) 368-6347	(Tim.Hund@da.state.ks.us)
APPROVAL:
SUMMARY:	Authorization of Transactions that Exceed the Transaction Limits of Automotive BPCs

Minor repairs to agency-owned vehicles occasionally exceed the transaction limits of Automotive Business Procurement Cards (BPCs).

In order to provide agencies more flexibility in the use of Automotive BPCs, the Division of Accounts and Reports (A&R) is delegating authority to agency BPC Coordinators to approve most one-time over-rides of transaction limits for Automotive BPCs.

• Agency BPC Coordinators are authorized to directly contact UMB Bank (by e-mail) to request a one-time over-ride of the transaction limit for an Automotive BPC (if the transaction amount does not exceed $1,000). Agencies are asked to copy A&R on e-mails to UMB Bank requesting one-time transaction over-rides.
• Agencies must obtain prior approval from A&R for Automotive BPC transactions exceeding $1,000. Agencies should send requests for transaction over-rides to A&R via e-mail. A&R will copy agencies on approved requests that are forwarded to UMB Bank for processing.

UMB Bank and A&R Contacts:

Ron Sager - Ron.Sager@umb.com

Robert Cremer - Robert.Cremer@umb.com

Tim Hund - Tim.Hund@da.state.ks.us

Jo Ann Remp - JoAnn.Remp@da.state.ks.us

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