FY 2005

DATE:	June 25, 2004
SUBJECT:	Deletion of Sub-object Codes for Central Motor Pool
EFFECTIVE DATE:	July 1, 2004
A & R CONTACT:	Mike Lovich	(785) 296-2131	(mike.lovich@da.state.ks.us)
APPROVAL:
SUMMARY:	Deletion of expenditure and revenue sub-object codes used for central motor pool

As a result of the dissolution of the Department of Administration Central Motor Pool, the following sub-object codes are being closed effective July 1, 2004. Following are the expenditure sub-object codes being closed:
 

The following revenue sub-object codes are also being closed:

The above expenditure and revenue sub-object codes were established to capture the central motor pool Section II costs for the Statewide Cost Allocation Plan (SWCAP). Transactions currently being processed using the above codes should now utilize expenditure sub-object codes 2531, 2532, and 2533, State car expense for in-state, out-of-state, and international travel respectively. Revenue sub-object code 2099, other service charges, should be used in place of the closed revenue sub-object codes 2094 and 2096.

These revisions will be reflected in the Uniform Receipt Classification Revenue Sub-object Codes filing (PPM No. 6,002) and 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 7, 2004
SUBJECT:	Mandatory Direct Deposit for State Employee Reimbursements
EFFECTIVE DATE:	January 2005 STARS Business
A & R CONTACT:	Vendor File:
	Nickie Roberts	(785) 296-7917	(nickie.roberts@da.state.ks.us)
	Vendor Payments:
	Randy Kennedy	(785) 296-2125	(randy.kennedy@da.state.ks.us)
	Paycard Questions:
	Sunni Zentner	(785) 296-7058	(sunni.zentner@da.state.ks.us)
APPROVAL:
SUMMARY:	Effective with January 2005 STARS business, all state employee travel and miscellaneous reimbursements must be made using direct deposit

Informational Circular 04-P-007, issued October 16, 2003, provided information related to the State of Kansas Paycard. The paycard program provides agencies with a method that allows all employees to participate in direct deposit, even those without a bank account. The State of Kansas Paycard Program enables the State to realize cost savings and increase efficiencies by replacing payroll checks currently issued with electronic transfer of pay to employees.

To build on the efficiencies and cost savings related to direct deposit of payroll, it has been determined that state employee reimbursements processed through STARS should also maximize the use of direct deposit. Effective with January 2005 STARS business, all STARS payments made to state employees must be made as direct deposit.

During the last December 2004 STARS nightly batch cycle, all state employee vendor records that do not contain banking information will be changed to inactive status, and will be suspended until such time as the employee's STARS vendor record has been updated to include the appropriate banking information. Those employees who do not have an account at a financial institution, or prefer to not use their existing account for STARS reimbursements, should be provided with a paycard as outlined in Informational Circular 04-P-007. All state employee travel and miscellaneous reimbursement payments processed through STARS as January business, and thereafter, must contain the appropriate payment indicator so that the payments will be made electronically.

State agency management should take steps to obtain the completed Authorization for Electronic Deposit of Vendor Payment (Form DA-130) from employees and submit them to the Division of Accounts and Reports for those employees who will be traveling, but do not have valid banking information in their vendor record. (NOTE: This form is used to deposit STARS payments only. Payroll direct deposits will continue to be authorized using Form DA-184, Authorization for Direct Deposit of Employee Pay.) It will not be necessary to take any action for those employees whose vendor record already contains the appropriate information or for those employees who will not be receiving any reimbursements through STARS.

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DATE:	September 17, 2004
SUBJECT:	Mandatory Direct Deposit for State Employee Reimbursements
EFFECTIVE DATE:	January 2005 STARS Business
A & R CONTACT:	Vendor File:
	Nickie Roberts	(785) 296-7917	(nickie.roberts@da.state.ks.us)
	Vendor Payments:
	Randy Kennedy	(785) 296-2125	(randy.kennedy@da.state.ks.us)
	Paycard Questions:
	Sunni Zentner	(785) 296-7058	(sunni.zentner@da.state.ks.us)
APPROVAL:
SUMMARY:	A reminder that effective with January 2005 STARS business, all state employee travel and miscellaneous reimbursements must be made using direct deposit

Informational Circular 05-A-005, issued July 7, 2004, provided information regarding the upcoming requirement that all state employee travel and miscellaneous reimbursements must be made using direct deposit. Effective with January 2005 STARS business, all STARS payments made to state employees must be made as direct deposit.

As noted in the earlier circular, during the last December 2004 STARS nightly batch cycle, all state employee vendor records that do not contain banking information will be changed to inactive status, and will be suspended until such time as the employee's STARS vendor record has been updated to include the appropriate banking information. Those employees who do not have an account at a financial institution, or prefer to not use their existing account for STARS reimbursements, should be provided with a paycard as outlined in Informational Circular 04-P-007. All state employee travel and miscellaneous reimbursement payments processed through STARS as January business, and thereafter, must contain the appropriate payment indicator so that the payments will be made electronically.

Since the end of June, we have added information to the STARS vendor file for 2,780 vendors to be paid electronically. State agency management should take steps to obtain the completed Authorization for Electronic Deposit of Vendor Payment (Form DA-130) from employees and submit them to the Division of Accounts and Reports for those employees who will be traveling, but do not have valid banking information in their vendor record. (NOTE: This form is used to deposit STARS payments only. Payroll direct deposits will continue to be authorized using Form DA-184, Authorization for Direct Deposit of Employee Pay.) It will not be necessary to take any action for those employees whose vendor record already contains the appropriate information or for those employees who will not be receiving any reimbursements through STARS.

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DATE:	November 16, 2004
SUBJECT:	Mandatory Direct Deposit for State Employee Reimbursements and Subsequent Reporting of Payments Made by Warrant
EFFECTIVE DATE:	January 2005 STARS Business
A & R CONTACT:	Vendor File:
	Nickie Roberts	(785) 296-7917	(nickie.roberts@da.state.ks.us)
	Vendor Payments:
	Randy Kennedy	(785) 296-2125	(randy.kennedy@da.state.ks.us)
	Paycard Questions:
	Sunni Zentner	(785) 296-7058	(sunni.zentner@da.state.ks.us)
APPROVAL:
SUMMARY:	A reminder that effective with January 2005 STARS business, all state employee travel and miscellaneous reimbursements must be made using direct deposit and subsequent reporting of payments made by warrant.

Informational Circulars 05-A-005 and 05-A-006, provided information regarding the upcoming requirement that all state employee travel and miscellaneous reimbursements must be made using direct deposit. Effective with January 2005 STARS business, all STARS travel and miscellaneous reimbursements to state employees must be made as direct deposit.

We have reconsidered our initial plan to change all state employee vendor records that do not contain banking information to inactive status, during the final December STARS cycle. THIS VENDOR STATUS CHANGE WILL NO LONGER OCCUR.

The primary reason employees receive reimbursement is for travel-related expenses. In order to assist agencies in identifying employees that still need to enroll in the STARS direct deposit program, the Division of Accounts and Reports will distribute a report during the first week of December reflecting all travel reimbursements made in the month of November that were made by warrant.

We recognize that there are other miscellaneous reimbursement payments made to employees that will not be included in our monthly report, but will fall under the direct deposit policy. It remains each agency's responsibility to ensure that all travel and miscellaneous reimbursement payments are made by direct deposit. The Division of Accounts and Reports will continue to provide this information to agencies after each STARS month-end as one tool that agencies can use to ensure that all employees are in compliance with the direct deposit policy.

State agency management should continue to take steps to obtain the completed Authorization for Electronic Deposit of Vendor Payment (Form DA-130) from employees as soon as possible, and submit them to the Division of Accounts and Reports for those employees who will be receiving a reimbursement, but do not have valid banking information in their vendor record. (NOTE: This form is used to deposit STARS payments only. Payroll direct deposits will continue to be authorized using Form DA-184, Authorization for Direct Deposit of Employee Pay.) It will not be necessary to take any action for those employees whose vendor record already contains the appropriate information or for those employees who will not be receiving any reimbursements through STARS.

Those employees who do not have an account at a financial institution, or prefer to not use their existing account for STARS reimbursements, should be provided with a paycard as outlined in Informational Circular 04-P-007.

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DATE:	November 16, 2004
SUBJECT:	Option to charge parking fees at KCI to Business Procurement Cards
EFFECTIVE DATE:	Immediately
A & R CONTACT:	Tim Hund	(785) 368-6347	(tim.hund@da.state.ks.us)
APPROVAL:
SUMMARY:	Use K-TAG transponders to charge parking fees at KCI to BPCs

Kansas City International Airport (KCI) has recently announced an electronic Pay by Tag option (KCI QuickTag) for the payment of economy parking at the airport. Agencies may establish an account that uses K-TAG transponders to charge parking fees to the agency's Business Procurement Card (BPC).

The information summarized below is provided at KCI's website (www.flykci.com/quicktag.cfm). "The same wireless technology that enables electronic toll collection on the Kansas Turnpike can be used at the Economy Parking lots for Terminals A, B and C at KCI."

• "Enter and exit the Economy Parking facilities through designated KCI QuickTag lanes. These lanes are equipped with readers that will instantly identify" your K-TAG transponder.
• "When you exit the parking lot, the appropriate amount is electronically calculated and charged to the" BPC associated with your K-TAG.
• Your agency's BPC "statement will reflect each parking charge and will be posted as 'Pay by Tag Transcore'."

Your agency can establish KCI QuickTag accounts at the website noted above.

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DATE:	February 7, 2005
SUBJECT:	Establishment of expenditure sub-object codes for military activation
EFFECTIVE DATE:	January 28, 2005
A & R CONTACT:	Mike Lovich	(785) 296-2131	(mike.lovich@da.state.ks.us)
APPROVAL:
SUMMARY:	Establishment of expenditure sub-object codes for military activation payment and military pay differential.

In accordance with Executive Order No. 05-356, the following expenditure sub-object codes have been established for use of military activation payments and military pay differential effective January 28, 2005:

• 2697     Military Activation Payments
• 2698     Military Pay Differential

These additional expenditure sub-object codes will be reflected in the Uniform Expenditure Classification of Expenditure Sub-Object filings (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:	March 7, 2005
SUBJECT:	Federal Excise Tax Exemption Changes
EFFECTIVE DATE:	March 1, 2005
A & R CONTACT:	Bernie Kahler	(785) 296-2101	(bernard.kahler@da.state.ks.us)
APPROVAL:
SUMMARY:	The Treasury Department issued Notice 2005-24 dated February 28, 2005, that delays implementation of changes to federal excise tax exemption on gasoline purchases as amended in the American Jobs Creation Act of 2004

The Treasury Department issued Notice 2005-24 on February 28, 2005, that modifies Notice 2005-4 by extending the transitional rule related to sale of gasoline on fuel credit cards beyond March 1, 2005, until the fuel credit card rule is modified by a statutory change or by future federal guidance on this issue.

Due to the extended transitional rule period, Wright Express and its participating merchants will be permitted to continue to offer federal excise tax exempt purchases of gasoline as they did prior to March 1, 2005. Therefore, agencies should expect to continue to purchase fuel net of federal excise tax using the Wright Express fuel cards.
This Treasury Department Notice does not make a permanent change to the federal law. Agencies will be notified of further changes to this federal excise tax issue as information becomes available.

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