FY 2012

DATE:	June 21, 2011
SUBJECT:	2012 Private Vehicle Mileage
EFFECTIVE DATE:	July 1 ,2011
CONTACT:	Shirley Gilchrist Gary Bond Ginnie Schirmer Lance Gagelman	(785) 296-2882 (785) 296-7217 (785) 296-7021 (785) 296-2255	(shirley.gilchrist@da.ks.gov) gary.bond@da.ks.gov) (ginnie.schirmer@da.ks.gov) (Lance.Gagelman@da.ks.gov)
APPROVAL:
SUMMARY:	FY 2012

As authorized by K.S.A.75-3203a, the Secretary of Administration has fixed the private vehicle maximum mileage reimbursement rates for FY 2012 at:

51¢ per mile for privately owned automobile

47¢ per mile for privately owned motorcycle

$1.29 per mile for privately owned airplane (based on air miles rather than highway miles)

KEO:sg

DATE:	June 20, 2011
SUBJECT:	FY 2012 Subsistence Rates
EFFECTIVE DATE:	July 1, 2011
CONTACT:	Shirley Gilchrist Gary Bond Ginnie Schirmer Lance Gagelman	(785) 296-2882 (785) 296-7217 (785) 296-7021 (785) 296-2255	(shirley.gilchrist@da.ks.gov) (Gary.Bond@da.ks.gov) (ginnie.schirmer@da.ks.gov) (lance.gagelman@da.ks.gov)
APPROVAL:
SUMMARY:	FY 2012 Meal Allowance and Lodging Rates

Please see State of Kansas Travel Handbook 4100 for information on how meals are reimbursed.
As authorized by K.S.A.75-3207a, the Secretary of Administration has fixed the rates for FY 2012 at:

Meal Allowance: 

*or actual not to exceed $97 per day

Reduced Meal 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 meal allowance should be reduced as shown in the table above.

Same Day Meal 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.

Lodging Expense Limitations:

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.

KEO:sg

Summary of changes:

There are three changes to procedures for calendar year 2011 Form 1099 reporting for non-SMART payments submitted to the Office of General Services (formerly the Division of Accounts and Reports) for printing, mailing, and filing with the IRS:

1. The vendor/client must be in the SMART vendor table. 
2. All reportable payments must be submitted via the help desk using the EXCEL template referenced below
3. All payments reported through the Office of General Services will be processed through SMART.  Paper 1099s are generated and mailed to the vendors.  The 1099 information will be electronically submitted to the IRS. 

There is NO option for the agency to print the forms and have General Services report to the IRS.

Below are the revised policy and procedures.

While most 1099 transactions are recorded in the Statewide Management, Accounting and Reporting Tool (SMART), and require no additional action by state agencies; there are some payments that occur outside of SMART or the information to be reported to the IRS is not in SMART. These transactions result in unique reporting procedures comprised of the following:

• Locally administered interest payments of $10 or more are to be reported on IRS Form 1099-INT. These payments typically represent interest paid from trust funds to clients of institutions with the Department of Social and Rehabilitation Services and the Department of Corrections.
• State Fair premiums are to be reported on Form 1099-MISC.
• Other payments such as non-employee awards not paid directly to the recipient from SMART.
• Note that purchases of Real Property are now reported in SMART, and require the appropriate SMART preferences to record the appropriate data.

To report non-SMART payments for form 1099 purposes the agency will need to confirm the vendor is in the SMART vendor table with the appropriate 1099 type and class, and withholding is turned on.  If the vendor is not in the vendor table, the agency must add the vendor to SMART including the appropriate 1099 type and class, and turn withholding on.

Complete the attached EXCEL template PS_WTHD_TRAN_TBL_update_template for all non-SMART 1099 reportable payments.  The completed template needs to be received by the Office of General Services by January 13, 2012 to ensure the 1099s are distributed by the January 31, 2012 deadline.

The template has the columns listed below.   Do not insert or delete columns or rows. Do not change the formatting.  Beginning with line 2 (replacing the sample data), complete one line for each payment (add lines as necessary for additional withholding types/classes). The gray columns are defaults and should not be changed.  If 499 lines are not sufficient, copy line 500 down.  When completed, attach the EXCEL spreadsheet to a Help Ticket with the heading “non-SMART 1099”

BUSINESS_UNIT:  5 characters must have leading zeros (your agency number)

WTHD_ENTITY:  IRS

WTHD_TYPE:  as listed in the vendor table (1099, 1099I, 1099G, 1099D)

WTHD_JUR_CD:  FED

WTHD_CLASS:  as listed in the vendor table

WTHD_RULE:   RULE0

VENDOR_SETID: SOKID

VENDOR_ID:  10 digits with leading zeros, as assigned by SMART.

VNDR_LOC:  the vendor location with the appropriate 1099 type and class, usually 001.

ADDRESS_SEQ_NUM: 1  

PYMNT_ID:  Blank

VNDR_REGIST_ID:  SSN or FEIN, 9 digits including leading zeros

PYMNT_DT:   date of payment, mm/dd/yyyy format        

WTHD_DECL_DATE:  Same as date of payment

WTHD_BASIS_AMT:   The taxable amount for this 1099 type and class for 2012.

DESCR100:  100 characters of your choice – no punctuation, no special characters

Additional Resources:

PowerPoint review of setting up vendors for 1099 reporting and an account code guide: http://www.da.ks.gov/ar/forum/astra/mtg2011-05-1099s.ppt 

 IRS guide to each type of 1099, including the payments for each:
http://www.irs.gov/efile/article/0,,id=98114,00.html

Page 6 and 7 of the job aid “Create a 1099 Voucher” has Examples of payments by 1099 type and class:  http://www.da.ks.gov/smart/Training/JobAid_Create_1099Voucher_Online_20100630.doc

SMART withholding codes:  http://www.da.ks.gov/smart/Training/JobAid_WithholdingCodes_20100720.ppt

Attachment: IC 12-a-003 - PS WTHD TRAN TBL update template

AW:rmk

We have mailed IRS forms 1099-MISC, 1099-INT, 1099-G, 1099-S, and 1099-DIV for SMART based transactions to vendors (including those transactions submitted in accordance with Informational Circular No. 12-A-003).  If you receive a call from a vendor regarding these forms and you are unable to provide the information the vendor needs, please refer them to the following secure internet site to record their question:

 https://da.ks.gov/ar/1099/

The site will allow the vendor to log their identifying information and question regarding the 1099 received.  We will then respond to those inquiries in the order received, usually the next business day.

Other state agencies also issue various 1099’s.  Contacts for those other 1099’s may be found at: http://www.da.ks.gov/ar/genacct/1099info.htm.

 AW:rk

As authorized under the Voluntary Retirement Incentive Program (VRIP), employees retiring under the program were able to choose either a one-time lump sum payment of $6,500 or a Health Insurance Benefit equal to the employer’s share of the active State employee rates for the coverage and plan in which the employee was enrolled on August 1, 2011.

The United States Department of Health & Human Services’ Division of Cost Allocation (DCA) is currently evaluating the VRIP program for indirect cost allocation eligibility. If approved, agencies with qualifying indirect cost allocation plans will be able to charge some of the program costs to their federal grant awards.

For the Health Insurance Benefit, agencies are to be billed via a SMART interfund on a monthly basis for amounts due to the Division of Health Care Finance, Department of Health and Environment. Until a determination is received from DCA, agencies should not charge federal funds for the costs of the Health Insurance Benefit amounts. Agencies should use SMART account code 559600 (Voluntary Retirement Incentive GHI coverage) to record the expense side of the interfund.

The first interfund billings were entered in SMART in January, 2012. Unfortunately we did not have this Informational Circular distributed prior to the initial billing as we intended. Any interfunds that processed using an expense account code other than 559600, should be corrected to this code. We regret any inconvenience this may have caused.

If you need assistance identifying federal funds that have been charged for expenditures, please contact Janette Martin.

Any questions regarding this agency correspondence should be directed to:

Guidance on use of federal funds and correcting entries    

• Office of Management Analysis and Standards
• Dept of Administration
• Janette Martin
• (785) 296-2708
• Janette.Martin@da.ks.gov

Interfund billings for the Health Insurance Benefit    

• Division of Health Care Finance
• Department of Health and Environment
• Mike Michael
• MMichael@kdheks.gov
• (785) 296-0221

Effective July 1, 2010, the following account code was established in SMART:

526610            Job Related Training and Conference Registration

This expenditure account code was created to capture educational or job related training type expenditures together in this one account code.  This was a change in definition and shifted the coding use for conference registrations and training from the “travel” account Code series 525x90 into account code 526610. 

The account code default values in the SMART Travel and Expense Module for conference meeting registrations as well as training costs have been updated to reflect this account code change.

Use of account code 526610 is effective immediately as follows:

• FY 2012 – Use of account code 526610 is recommended for the remainder of FY 2012 but not required.  Journal Expense Report adjustments are not necessary for training and conference registration payments already made during FY 2012 using the 525x90 account code series rather than the 526610 account code.

• FY 2013 - Use of account code 526610 will be required effective July 1, 2012.

This account count is reflected in the Uniform Expenditure Account Classification filing (PM No. 7,002) on the Division of Accounts and Reports web site: http://www.da.ks.gov/ar/pm/Pm07002.pdf.

 ME:jmm

For central reporting purposes, the following new expenditure account code has been established to record health insurance premiums for graduate teaching assistants not paid through Sharp.  This code will be effective April 23, 2012:   

519250              Graduate Assistant Group Health Insurance

This addition will be reflected in the Uniform Expenditure Account Classification filing (PM No.7,002) at http://www.da.ks.gov/ar/pm/Pm07002.pdf. 

ME:gb