FY 2014

As authorized by K.S.A.75-3203a, the Secretary of Administration has fixed the private vehicle maximum mileage reimbursement rates for FY 2014 at:

56¢ per mile for privately owned automobile
53¢ per mile for privately owned motorcycle
24¢ per mile for moving mileage rate
$1.33 per mile for privately owned airplane (based on air miles rather than highway miles)

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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 2014 at:

Meal Allowance:

*or actual not to exceed $105 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.

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Requirements to report payments where the 1099 data was not recorded in SMART:

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 System Management 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 the Office of System Management report to the IRS.

Below are the 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 for Aging and Disability 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 EXCEL template “PS_WTHD_TRAN_TBL_update_template” (Excel file attachment included at the bottom of this circular) for all non-SMART 1099 reportable payments.  The completed template needs to be received by the Office of System Management by January 13, 2014 to ensure the 1099s are distributed by the January 31, 2014 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”.  Note if you have leading zeros precede them with an apostrophe ‘, i.e. vendor id ‘0000123456.

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, with leading zeros.

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, with leading zeros

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 2013.

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

Additional Resources:

Training guide for setting up vendors for 1099 reporting and an account code guide:
Training Guide and Account Code Guide

IRS guide to each type of 1099, including the payments for each:
IRS Guide to Types of 1099's

Page 6 and 7 of the job aid “Create a 1099 Voucher” has Examples of payments by 1099 type and class:
Create a 1099 Voucher Job Aid

SMART withholding codes:
SMART Withholding Codes Job Aid

Attachment:  IC 14-a-003 - PS_WTHD_TRAN_TBL_update_template

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In order to record and track certain state revenues in accordance with statutory provisions, the following account code is being established in SMART effective immediately: 

412720            Commercial Vehicle Fees (Agency 565)

In addition, the following accounts are obsolete and effective immediately, these accounts will be closed:

514401            Voluntary Retirement Incentive Cash Option

514402            Voluntary Retirement Incentive Vacation Payout

514403            Voluntary Retirement Incentive Sick Leave Payout

555700            Homestead Property Tax Relief

555710            Oil Lease Operator Property Tax Payments

These changes will be updated shortly in the Uniform Receipt Classification Account Code filing (PM No. 6,002) and the Uniform Expenditure Classification Account Code filing (PM No. 7,002).

Effective July 1, 2013, House Bill 2139 of the 2013 legislative session abolished the cancelled warrants payment fund; thereby transferring the responsibility for payment of previously escheated checks (outlawed warrants) to the Unclaimed Property Division of the Kansas State Treasurer.   As a result of this legislation, Policy Manual Filing No. 11,965, Payment of Previously Outlawed Warrants is being revised.

What checks have been escheated?

• Income tax refund checks issued by the Kansas Department of Revenue with check issue dates through May 31, 2012
• SHARP Payroll checks, including regent checks, with check issue dates through June 30, 2010
• STARS miscellaneous checks with check issue dates through June 30, 2010

What checks have been transferred to unclaimed property?

• Income tax refund checks issued by the Kansas Department of Revenue with check issue dates July 1, 2008 through May 31, 2012
• SHARP Payroll checks, including regent checks, with check issue dates July 1, 2008 through June 30, 2010
• STARS miscellaneous checks with check issue dates July 1, 2008 through June 30, 2010

What happens once checks have been escheated and transferred to unclaimed property?
Once escheated checks are sent to the Unclaimed Property division of the State Treasurer's Office, the monies are held in the payees name until they are claimed by the original payee or a rightful heir.  Payees are able to search for unclaimed property by utilizing the Kansas State Treasurer's website (www.kansasstatetreasurer.com).

When will Payroll checks (including regent checks) with check issue dates after June 30, 2010 be escheated and transferred to unclaimed property?

• The Office of Systems Management is currently working with programming staff with the expectation that the Payroll escheatment process will be run prior to the end of fiscal year 2014. The transfer to unclaimed property will occur at the same time the escheatment process is run.
• The long-range plan will be to run the escheatment process on a monthly basis. In order to get caught up, several runs of the escheatment process will need to occur. Email blasts will be sent out via the SMART and SHARP listserves as escheatment processes are run.

What do agencies need to do before Payroll checks are escheated and sent to Unclaimed Property?
All agencies, including those agencies using federal awards pursuant to OMB Circular A-133 to fund administrative payments (payroll expenditures), are expected to review outstanding checks prior to the escheatment process.

Agencies have three options for handling an outstanding check:

• If it has been determined the payment is not due to the employee, the agency is responsible for canceling the payment.
• If it has been determined the payment was lost and the employee address has been verified, the agency may reissue the payment.
• If it has been determined the payment is due to the employee and such payment remains outstanding, and the agency has not cancelled or reissued the payment, the check will be escheated and transferred to unclaimed property. The employee then has the right to claim such outstanding payment from the Unclaimed Property Division of the Kansas State Treasurer.

A Job Aid has been written to provide agencies with a SMART query for reviewing outstanding payroll checks.  This Job Aid is located on the SMART Web website - Accounts Payable, Reports page: 
Using the KS_AP_PYR_EXT_CHK_TO_ESCHEAT Query.

Procedures for reissuing (reprinting) payroll checks can be found on the KDOA website - Office of Systems Management, Payroll Procedures page. Please refer to the following two items on this page:  'Paycheck Reprint Procedures(SHARP Agencies only)' and 'Paycheck Reprint Procedures for Regents Agencies'.
 

When will SMART checks be escheated and transferred to unclaimed property?

• The Office of Systems Management is currently working with programming staff with the expectation that the SMART escheatment process will be run prior to the end of fiscal year 2014. The transfer to unclaimed property will occur at the same time the escheatment process is run.
• The long-range plan will be to run the escheatment process on a monthly basis. In order to get caught up, several runs of the escheatment process will need to occur. Email blasts will be sent out via the SMART listserve as escheatment processes are run.

What do agencies need to do before SMART checks are escheated and sent to Unclaimed Property?
All agencies, including those agencies using federal awards pursuant to OMB Circular A-133, are expected to review outstanding checks prior to the escheatment process.

Agencies have three options for handling an outstanding check:

• If it has been determined the payment is not due to the vendor, the agency is responsible for canceling the payment.
• If it has been determined the payment was lost and the vendor address has been verified, the agency may reissue the payment.
• If it has been determined the payment is due to the vendor and such payment remains outstanding, and the agency has not cancelled or reissued the payment, the check will be escheated and transferred to unclaimed property. The vendor then has the right to claim such outstanding payment from the Unclaimed Property Division of the Kansas State Treasurer.

To cancel a payment with no reissue, a SMART Check Cancellation Request form will be required. The agency will need to complete and submit the DA-7CH - SMART Check Cancellation Request form. This form is located on the KDOA website, Office of Systems Management - Accounting Forms page.

To reissue a payment, a Lost Check Statement form will be required. The agency will need to complete and submit one of the following forms:
DA-6 Form - Lost Check Statement
DA-6A - Lost Check Statement - Address ID Change
DA-6B - Lost Check Statement - Return Check to Agency
DA-6C - Lost Check Statement - Return Check to Agency and Address ID Change
These forms are located on the KDOA website, Office of Systems Management - Accounting Forms page.

Agencies shall open a Service Desk Request in ManageEngine, attach the appropriate form, and submit the Service Desk Request. 

Please note: If a Setoff has been withheld pursuant to K.S.A. 75-6201 et seq. from an outstanding payment, and it has been determined the outstanding payment should be cancelled, the agency will need to make a notation on the Service Desk Request that payment being cancelled has a Setoff withheld.

SMART Job Aids have been written to provide agencies with tools for reviewing outstanding checks. These Job Aids are located on the SMART Web website - Accounts Payable - Reports page:

• Using the KS_AP_KDOR_EXT_CHK_TO_ESCHEAT Query (for use by KDOR)
• Using the KS_AP_OUTSTANDING_CHECKS Query
• Using the KS_ACCT_REGISTER Report

What about checks issued prior to July 1, 2008?

• Office of Systems Management, Central Systems Responsibilities Team will review any claim based upon a cancelled state warrant which is more than five years prior to the effective date of this legislation. If the claim is determined to be valid, the amount will be transferred to unclaimed property and the claimant then has the right to claim such outstanding payment from the Unclaimed Property Division of the Kansas State Treasurer. No claims will be accepted for checks issued prior to January 1, 1996.
• Form AR-95, Validation of Cancelled Checks for Submission to Unclaimed Property Check Issue Date January 1, 1996 through June 30, 2008, shall be completed and sent to Office of Systems Management as noted on the form.
• Form 'AR-95 - Validation of Cancelled Checks for Submission to Unclaimed Property Check Issue Date January 1, 1996 through June 30, 2008' is located on the KDOA Website, Office of Systems Management - Accounting Forms page.

How does an agency know what has been escheated?
SMART Job Aids have been written to provide agencies with tools for reviewing escheated checks. These Job Aids are located on the SMART Web website - Accounts Payable - Reports page:

• Using the KS_AP_PYR_EXT_ESCHEATED_CHK Query (to identify payroll checks)
• Using the KS_AP_STARS_EXT_ESCHEATED_CHK Query (to identify STARS Misc. checks)
• Using the KS_AP_KDOR_EXT_ESCHEATED_CHK Query (for use by KDOR)
• Using the KS_ACCT_REGISTER_ESCHEATMENT Report - 11-18-13
• An additional query will be provided to assist agencies in identifying SMART checks that have been escheated – an email blast will be sent out via the SMART listserve once this query is available

Email blasts will be sent out via the SMART listserve as additional information regarding escheatment becomes available.

PM 10,001 provides instructions for the preparation and use of Form DA-115, Authorized Agency Officials.   The DA-115 has been revised to include the authorized agency approvers for lodging up to 50% above established rates, lodging at conference rates, and out-of-state travel.

The DA-115 serves as an internal control document and the Department of Administration will rely on the DA-115 to determine the authorized agency approvers when performing audits of travel expense reports to verify that proper approval was granted for lodging up to 50% above established rates, lodging at conference rates, and out-of-state travel.

The new DA-115 must be completed by each agency prior to July 1, 2014 and submitted to the Audit Services Team, Office of the Chief Financial Officer.  In addition, a new DA-115 must be submitted whenever the agency head or other listed officials change.

The DA-115 should be submitted using one of the following three options:

Fax:  (785) 296-6841

Email:  ARPreaudit@da.ks.gov

Mail:  Department of Administration
         Office of the Chief Financial Officer
         Audit Services Team
         Eisenhower State Office Bldg., Suite 300
         700 S.W. Harrison Street
         Topeka, KS 66603    
   

Online Links:   

PM 10,001 – Authorized Agency Officials 
Form DA-115 - Authorized Agency Officials

                         
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PM 3,817 specifies prior approval requirements for (1) lodging up to 50 percent above established rates, (2) lodging at conference rates, and (3) out-of-state travel.

Informational Circular No. 14-a-007 was recently issued regarding revised PM 10,001 Authorized Agency Officials and the DA-115, Authorized Agency Officials form.  The DA-115 was revised to identify authorized agency approvers for lodging up to 50% above established rates, as well as, lodging at conference rates, and out-of-state travel. 

The two approval methods for lodging up to 50% above established rates, lodging at conference rates, and out-of-state travel include:
 

• SMART Travel Authorization -
  • Agency established SMART workflow for Travel Authorizations must include the agency head or designee and must be updated when these authorized approvers change.

• Approval Outside SMART -
  • A letter or agency travel authorization form, signed by a person authorized to approve lodging up to 50% above established rates, lodging at conference rates, and out-of-state travel; or
  • An e-mail sent from this authorized person

For approval outside SMART, approval documentation must be maintained with the travel expense report documentation for audit purposes.

The approval document (a SMART Travel Authorization, Letter, Agency Travel Authorization Form, or E-mail) must contain enough information to allow the agency to determine that the travel authorized and the travel undertaken is the same.  The minimum information to be provided in the approval document includes the traveler’s name, destination, mode of travel, purpose of travel, and dates of travel.  Complete itemization of estimated travel expenses is required.

The DA-115 serves as an internal control document and the Department of Administration will rely on the DA-115 to determine the authorized agency approvers when performing audits of travel expense reports to verify that proper approval was granted.  A new DA-115 must be submitted to the Audit Services Team, Office of the Chief Financial Officer whenever the agency head or other authorized agency officials change.

Online Links:  

PM 3,817– Agency Travel Approval - Lodging Reimbursement Rates and Out-of-State Travel 
PM 10,001 – Authorized Agency Officials 
Form DA-115- Authorized Agency Officials

                         
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