FY 2006

DATE:	June 17, 2005
SUBJECT:	Private Vehicle Mileage
EFFECTIVE DATE:	July 1, 2005
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 2006 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 2006 at:

• 30¢ per mile for privately owned motorcycle
• 40¢ per mile for privately owned automobile
• $1.06 per mile for privately owned airplane (based on air miles rather than highway miles)

These rates reflect increases in each of these categories.

The increased rate for privately owned airplane reimbursement reflects a policy change of using air miles rather than highway miles as the basis of the claim. Air mile distances ("as the crow flies") can be verified by referring to the distance calculator at http://www.indo.com/distance/index.html.

A different mileage reimbursement rate for specially-equipped vehicles will no longer be designated for FY 06 and subsequent years.

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DATE:	June 17, 2005
SUBJECT:	FY 2006 Subsistence Rates
EFFECTIVE DATE:	July 1, 2005
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 2006 Meal Allowance and Lodging Rates

As authorized by K.S.A.75-3207a, the Secretary of Administration has fixed the rates for FY 2006 at:

Meal Allowance:

*Effective with FY 2006, there is no longer a separate rate identified for in-state, designated high-cost geographic areas.
 

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:

*Effective with FY 2006, there is no longer a separate rate identified for in-state, designated high-cost geographic areas.

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.

Lodging Expense Limitations:

*Effective with FY 2006, there is no longer a separate rate identified for in-state, designated high-cost geographic areas.

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:	September 30, 2005
SUBJECT:	Expenditure Sub-Object Code to Identify Debt Service Components of Capital Outlay Improvements related to the Facilities Conservation Improvement Program
EFFECTIVE DATE:	July 1, 2005
A & R CONTACT:	Martin Eckhardt	(785) 296-2661	(martin.eckhardt@da.state.ks.us)
APPROVAL:
SUMMARY:	Establishment of additional expenditure sub-object codes for Facilities Conservation Improvement Program Capital Improvements

Facilities Conservation Improvement Program agency repayments have historically, in accordance with generally accepted accounting principles, been classified as capital assets for financial reporting purposes under the 42XX Buildings and Improvements expenditure sub-object series. However, under budgetary definitions and reporting purposes, these payments are considered "debt service".

In an effort to maintain the accounting and reporting classification as capital assets, and simultaneously identify, for budgetary reporting purposes, the "debt service" components of these capital improvement expenditures, two additional capital asset expenditure sub-object codes are being established as follows:

4210 - Facilities Conservation Improvement Program - Principal - Buildings and Improvements - Capital/Inventory: This captures the principal component of agency intergovernmental payments made to the Department of Administration - Facilities Conservation Improvement Program.

4211 - Facilities Conservation Improvement Program - Interest - Buildings and Improvements - Capital/Inventory: This captures the interest component of agency intergovernmental payments made to the Department of Administration - Facilities Conservation Improvement Program.

Agencies participating in the Facilities Conservation Improvement Program should begin using these sub-object codes immediately.

Journal voucher adjustments will be processed centrally by the Division of Accounts and Reports to change the coding of all FY 2006 year-to-date processed Facilities Conservation Improvement Program transactions.

This revision is reflected in the Uniform Expenditure Classification of Expenditure Sub-object Code (PPM Filing No. 7,002) on the Accounts and Reports web site: http://www.da.ks.gov/ar/ppm/ppm01001.htm  

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DATE:	December 1, 2005
SUBJECT:	Procedures for filing 2005 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 2005 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 2005 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 2005 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, 2006. Do not mail forms 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.
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), can 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 or an Excel file in the attached format shown on the Non-STARS record layout form. You may, however, submit a text or Excel file for fewer than 20 records if you want. All data should be remitted by February 15, 2006 to:
   
   Division of Accounts and Reports
   Central Accounting Services Section
   900 SW Jackson, Room 351-S, LSOB
   Topeka, Kansas 66612-1248

   Attention: Don Beck

   If you are submitting a text or Excel file please e-mail the file as an attachment to don.beck@da.state.ks.us.

3. 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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Attachment: Non-STARS Record layout

DATE:	January 10, 2006
SUBJECT:	Addition to Approved Out-of-State High-Cost Geographic Areas
EFFECTIVE DATE:	Immediately
A & R CONTACT:	Randy Kennedy	(785) 296-2125	(randy.kennedy@da.state.ks.us)
APPROVAL:
SUMMARY:	Las Vegas, Nevada 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 Secretary of Administration has approved the addition of Las Vegas, Nevada 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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DATE:	April 14, 2006
SUBJECT:	Closing of Fiscal Year 2006 and Opening of Fiscal Year 2007
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
	Lucinda Anstaett	(785) 296-4151	(lucinda@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 2006 and beginning fiscal year 2007. 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/default.htm.<------- 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). However, for the fiscal year 2006 closing, the cutoff date will be Wednesday, July 12, 2006 to allow two additional processing days. 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 2006 will probably not be billed to agencies in time for payment in FY2006 business; agencies must encumber for payment if this obligation is not paid in FY2006.
• Budget Worksheet data from STARS will be electronically submitted to the Division of the Budget by August 10th for loading into the Budget Management System.
• 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 issued as a SHARP message to subscribers of the SHARP listserv. After issuance, SHARP messages are also posted on the SHARP Customer Service Website at http://www.da.ks.gov/SHARP/documents/message.htm. 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 7AM 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 6PM and 7PM daily.

GENERAL ITEMS

• FY2006 documents receive a higher processing priority than FY2007 documents during the concurrent processing period.
• There is a two or three day period beginning the third Tuesday in July during 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 2006 and 2007 documents must be batched separately.

STARS ITEMS

• During the concurrent processing period, STARS batch sheets for FY2006 transaction year should have a batch date of "06/30/06", an effective date of "06/30/06" and BFY of 2006.
• During the concurrent processing period, STARS edits FY2007 transactions charged to "expenditure only" type accounts against fund level receipts (both FY2006 and FY2007). FY2006 transactions edit only against FY2006 receipts.
• The available cash in prior fiscal year "receipt and expenditure" type budget units will not be available to fund FY2007 expenditures until FY2006 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 FY2006 and FY2007 documents may be processed in the SOKI3+ system; FY2007 interfund vouchers require a BFY of 2007 for both the receipt and expenditure transactions and FY2006 interfund vouchers process as normal. FY2007 JV documents must use a BFY of 2007 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 2006. Only transactions with a BFY of 2007 will be processed during this period.
• On July 21st, after year-end processing is complete, all fiscal year 2007 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 FY2006 upload will be FY2007 business; any SOKI3+ interfund receipt transactions will need to have BFY 2007 and any SOKI3+ unencumbered interfund expenditure transactions will require an encumbrance number and appropriate transaction code changes.

The scheduled dates for closing FY2006 and beginning FY2007 are as follows:

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DATE:	April 21, 2006
SUBJECT:	Vendor Address Validation Procedure
EFFECTIVE DATE:	Immediately
A & R CONTACT:	Nickie Roberts	(785) 296-7917	(nickie.roberts@da.state.ks.us)
	Tim Hund	(785) 368-6347	(tim.hund@da.state.ks.us)
APPROVAL:
SUMMARY:	Change to Vendor Address Validation Procedure on May 8, 2006

Effective May 8, 2006, STARS Vendor Table address verification will move from an online, real time mode (Finalist software) to a batch process performed during the nightly processing of STARS transactions (First Logic software).

Online Input to STARS Vendor File

Agency staff will continue to enter new STARS vendor records online and will also continue to receive immediate feedback when required fields are not completed correctly. However, agency staff will no longer receive immediate feedback regarding address errors when adding new vendor records via online STARS.

If First Logic determines as part of overnight STARS processing that the input address is incorrect and First Logic is unable to automatically correct the address, the vendor record will be added to the STARS Vendor Table with the incorrect address. The vendor status code will be shown as "2" (inactive due to address error).

• These errors will be noted on the Online Vendor Edit Activity Report (DAFR1710) as "ADDED W/ERRORS" followed by the specific error (e.g., V38 INV FSTLGC STREET). These reports will be distributed to agencies.
• Accounts and Reports (A & R) staff may add handwritten notes to indicate information needed from the agency in order for A & R to correct the vendor record and change the vendor status to "0" (active). The address must be corrected before a warrant can be written to the vendor.

When possible, First Logic will make the necessary corrections to the submitted address and the record will be added to the STARS Vendor File with vendor status code "0" (active). These records will also be noted on the Online Vendor Edit Activity Report (DAFR1710) as "ADDED".

A & R will continue to have the capability to override address errors previously rejected by First Logic if those addresses are subsequently determined to be correct.

Batch Input to STARS Vendor File

Agency staff currently submitting STARS Vendor File records via the overnight batch process will continue to receive the Vendor Edit Activity Report (DAFR1700) with the same types of error notations as discussed above.

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DATE:	April 27, 2006
SUBJECT:	UMB Bank Fraud Detection
EFFECTIVE DATE:	Immediately
A & R CONTACT:	Tim Hund	(785) 368-6347	(tim.hund@da.state.ks.us)
APPROVAL:
SUMMARY:	UMB Bank is implementing a new fraud detection program for credit card transactions.

UMB Bank (UMB) has recently experienced a significant increase in fraud associated with credit cards. As a result, UMB has developed a new system that deals with early detection of fraud. The system detects unusual activity on credit cards, including State liability Business Procurement Cards (BPCs) and cardless Business Travel Accounts (BTAs) and personal liability Business Travel Cards (BTCs).

If unusual transactions are detected, UMB contacts cardholders to confirm the legitimacy of those transactions. Unusual activities include (but are not limited to) incorrect expiration date usage, the number or amount of charges is larger than normal, or purchases are made at unusual locations. The cardholder will not be requested to provide any additional information other than to confirm that the questioned charges are legitimate.

UMB will not shut-down a card / account unless the cardholder determines that specific charges are not appropriate.

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DATE:	June 23, 2006
SUBJECT:	Closing of Fiscal Year 2006 and Opening of Fiscal Year 2007
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
	Lucinda Anstaett	(785) 296-4151	(lucinda@treasurer.state.ks.us)
	Office of the State Treasurer
APPROVAL:
SUMMARY:	REVISED Schedule of Accounting Events Relative to Fiscal Year Closing

In a memo dated June 15, 2006, to all state employees from Governor Kathleen Sebelius, an additional state holiday was authorized for Monday, July 3, 2006. Due to this additional holiday, the schedule for fiscal year end activities has been amended to allow one additional business day for processing FY2006 transactions. The cutoff date for fiscal year 2006 transactions will now be Thursday, July 13, 2006. Please see the revised schedule that follows for all year end processing date changes.

Please refer to Informational Circular 06-A-006 dated April 14, 2006, for standard year end information. Other web resources available for fiscal year end processing information can be found at http://www.da.ks.gov/ar/yearend/.<------- Broken link

REVISED SOKI3+ ITEMS

• Beginning July 17th through year-end closing, agencies should not release any SOKI3+ transactions with a BFY of 2006. Only transactions with a BFY of 2007 will be processed during this period.
• On July 24th, after year-end processing is complete, all fiscal year 2007 SOKI3+ transactions, including encumbered expenditures can be processed and released for upload to STARS.
• All SOKI3+ transactions not uploaded to STARS on July 14th in the final FY2006 upload will be FY2007 business; any SOKI3+ interfund receipt transactions will need to have BFY 2007 and any SOKI3+ unencumbered interfund expenditure transactions will require an encumbrance number and appropriate transaction code changes.

The scheduled dates for closing FY2006 and beginning FY2007 are as follows with revisions shown in bold font::

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