Kansas Department of Administration

FY 2017

17-A-001 FY 2017 Private Vehicle Mileage (June 28, 2016) (Supersedes 16-A-013)
Informational Circular No. 17-A-001
Supersedes Informational Circular No: 16-A-013
Effective Date: July 1, 2016
 Approval: DeAnn Hill (Original Signature on File)

 

Contact Name: Phone Number Email Address
Ginnie Schirmer (785) 296-7021 Ginnie.Schirmer@ks.gov
Brandy Wilson (785) 296-6260 Brandy.Wilson@ks.gov
Stacy Cooper (785) 296-3242 Stacy.Cooper@ks.gov
Lori Knudsen (785) 296-2707 Lori.Knudsen@ks.gov
Janette Martin (785) 296-2708 Janette.Martin@ks.gov
Summary: FY 2017 Private Vehicle Mileage Rates

As authorized by K.S.A. 75-3203a, the Secretary of Administration has fixed the private vehicle maximum mileage reimbursement rates for FY 2017 at:

54¢ per mile for privately owned automobile

51¢ per mile for privately owned motorcycle

19¢ per mile for moving mileage rate

$1.17 per mile for privately owned airplane (based on air miles rather than highway miles)

These rates were effective January 1, 2016 and remain unchanged.

 

DH:jm

Printable version of 17-A-001

17-A-002 FY 2017 Subsistence Rates (June 28, 2016) (Supersedes 16-A-011)
Informational Circular No. 17-A-002
Supersedes Informational Circular No: 16-A-011
Effective Date: July 1, 2016
Approval: DeAnn Hill (Original Signature on File)

 

Contact Name: Phone Number Email Address
Ginnie Schirmer (785) 296-7021 Ginnie.Schirmer@ks.gov
Brandy Wilson (785) 296-6260 Brandy.Wilson@ks.gov
Stacy Cooper (785) 296-3242 Stacy.Cooper@ks.gov
Lori Knudsen (785) 296-2707 Lori.Knudsen@ks.gov
Janette Martin (785) 296-2708 Janette.Martin@ks.gov

 

Summary: FY 2017 Meals and Incidental Expense (M&IE) and Lodging Rates
As authorized by K.S.A. 75-3207a, the Secretary of Administration has fixed subsistence rates for FY 2017.  The Employee Travel Expense Reimbursement Handbook is updated to include information regarding subsistence for travel which occurs during FY 2017.

For State of Kansas travel, federal subsistence rates will be followed.  Subsistence rates are based on travel location and travel dates with seasonal rates listed for many locations.  If a specific travel location isn’t listed (or within the location definition), the standard rate, or “other” location rate is used.  The following standard rates apply to many locations across the contiguous United States (CONUS).

For CONUS locations, the following standard subsistence rates apply for travel which occurs July 1, 2016 and later:

M&IE - $51

Lodging - $89

These rates were effective January 1, 2016 and remain unchanged.  The M&IE and Lodging rates are updated semi-annually each October 1 and April 1 to follow CONUS rates in effect on those dates.

SMART contains the official subsistence rates for CONUS and OCONUS travel locations and will be updated semi-annually each October 1 and April 1 for any interim rate changes which have occurred.  International subsistence rates are not loaded into SMART.  For international travel locations, employees will obtain M&IE rates directly from the U.S. Department of State (DOS) website listed below.  For international travel, payment for actual lodging expense is allowed.

Source of Subsistence Rates -

Contiguous United States (CONUS) -

The U.S. General Services Administration (GSA) maintains the M&IE rates and lodging rates for travel locations in the contiguous United States -
U.S. General Services Administration website: http://www.gsa.gov/portal/content/104877
Outside Contiguous United States (OCONUS):

(Alaska, Hawaii, and U.S. Territories/Possessions) -

The U.S. Department of Defense (DOD) maintains the M&IE rates and lodging rates for travel locations within Alaska, Hawaii and U.S. Territories/Possessions -
U.S. Department of Defense website: http://www.defensetravel.dod.mil/site/perdiemCalc.cfm


International Locations -

The U.S. Department of State (DOS) is the source for M&IE rates only for international travel locations-
U.S. Department of State website: https://aoprals.state.gov/web920/per_diem.asp
For international travel, payment for actual lodging expense is allowed.
Note for using federal websites:

For CONUS and OCONUS travel, if SMART is not accessible, employees may access subsistence rates through the federal websites. However interim federal website updates may occur subsequent to the semi-annual SMART updates each October 1 and April 1. CONUS rates are published on an annual basis but the annual file is updated periodically throughout the year with no interim files published. OCONUS and international rates are updated and published on a monthly basis. Be aware that any interim updates for CONUS or OCONUS locations are not valid until reflected in SMART. For international travel, only the October 1 and April 1 subsistence files should be used to locate the M&IE rates.

If employees utilize the federal websites to find M&IE and lodging rates, those rates should be used as follows:

Rates published October 1 - for travel occurring between October 1 and March 31 of each year.
Rates published April 1 - for travel occurring between April 1 and September 30 of each year.

Lodging Expense Limitations:
K.S.A. 75-3207a(f) provides that the daily lodging expense limitations established may be exceeded, upon approval by the agency head or designee, 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.

Conference Lodging qualified under K.A.R. 1-16-18a(c):
Agencies may authorize payment or reimbursement for actual lodging expenses when an employee is required or authorized to attend a conference, and the lodging rate exceeds the applicable lodging expense limitation (including the additional 50%).  The agency head must be provided with conference materials and rates.  These should be maintained with travel documentation.

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 provided at no cost to the employee, the daily M&IE rate for the travel location should be reduced based on the percentages listed below.  For partial days, the quarter amount is calculated first and then the reduction percentage is applied.  The M&IE reduction percentages are as follows:

Breakfast - 15%

Lunch - 35%

Dinner - 50%

 
Same Day Meal Allowance:
Reimbursement for a same day meal, in accordance with K.A.R. 1-16-18(c)(2), is calculated as a percentage of the daily M&IE rate for the travel location, based on the approved meal, as follows:

Breakfast - 15%

Lunch - 35%

Dinner - 50%

Queries in SMART to Obtain M&IE Rates and Lodging Rates:
A query “KS_EX_CONUS_RATES” is available in SMART to obtain all CONUS and OCONUS locations with the M&IE daily rates, meal reductions and lodging rates.  SMART will be updated semi-annually with the October and April 1 CONUS and OCONUS subsistence rates.  Historical locations and rates from each semi-annual update will be maintained in SMART.

 

DH:jm

Printable Version of 17-A-002

17-A-003 Updated FY 2017 Subsistence Rates (September 29, 2016) (Supersedes 17-A-002)
Informational Circular No. 17-A-003
Supersedes Informational Circular No: 17-A-002
Effective Date: October 1, 2016
Approval: DeAnn Hill (Original Signature on File)

 

Contact Name: Phone Number Email Address
Ginnie Schirmer (785) 296-7021 Ginnie.Schirmer@ks.gov
Brandy Wilson (785) 296-6260 Brandy.Wilson@ks.gov
Stacy Cooper (785) 296-3242 Stacy.Cooper@ks.gov
Brad Elkins (785) 296-3356 Bradley.Elkins@ks.gov
Janette Martin (785) 296-2708 Janette.Martin@ks.gov
Summary: Updated FY 2017 Meals and Incidental Expense (M&IE) and Lodging Rates for travel occurring on and after October 1, 2016

For State of Kansas travel, federal subsistence rates are being followed.  The M&IE and Lodging rates are updated semi-annually each October 1 and April 1 to follow CONUS rates in effect on those dates.  The U.S. General Services Administration (GSA) has announced a change in the CONUS standard rate for lodging effective October 1, 2016.  The GSA standard lodging rate has been increased to $91.  The standard M&IE rate of $51 remains unchanged.

As authorized by K.S.A. 75-3207a, the Secretary of Administration has fixed subsistence rates for travel occurring on and after October 1, 2016.  Subsistence rates are based on travel location and travel dates with seasonal rates listed for many locations.  If a specific travel location isn’t listed (or within the location definition), the standard rate, or “other” location rate is used.  The following standard rates apply to many locations across the contiguous United States (CONUS).

For CONUS locations, the following standard subsistence rates apply for travel occurring on and after October 1, 2016:

M&IE - $51

Lodging - $91

The Employee Travel Expense Reimbursement Handbook is updated to include this information regarding subsistence for travel occurring on and after October 1, 2016.

SMART contains the official subsistence rates for CONUS and OCONUS travel locations and will be updated semi-annually each October 1 and April 1 for any interim rate changes which have occurred.  International subsistence rates are not loaded into SMART.  For international travel locations, employees will obtain M&IE rates directly from the U.S. Department of State (DOS) website listed below.  For international travel, payment for actual lodging expense is allowed.

Source of Subsistence Rates -

Contiguous United States (CONUS) -

The U.S. General Services Administration (GSA) maintains the M&IE rates and lodging rates for travel locations in the contiguous United States -
U.S. General Services Administration website: http://www.gsa.gov/portal/content/104877
Outside Contiguous United States (OCONUS):

(Alaska, Hawaii, and U.S. Territories/Possessions) -

The U.S. Department of Defense (DOD) maintains the M&IE rates and lodging rates for travel locations within Alaska, Hawaii and U.S. Territories/Possessions -
U.S. Department of Defense website: http://www.defensetravel.dod.mil/site/perdiemCalc.cfm


International Locations -

The U.S. Department of State (DOS) is the source for M&IE rates only for international travel locations-
U.S. Department of State website: https://aoprals.state.gov/web920/per_diem.asp
For international travel, payment for actual lodging expense is allowed.
Note for using federal websites:

For CONUS and OCONUS travel, if SMART is not accessible, employees may access subsistence rates through the federal websites. However interim federal website updates may occur subsequent to the semi-annual SMART updates each October 1 and April 1. CONUS rates are published on an annual basis but the annual file is updated periodically throughout the year with no interim files published. OCONUS and international rates are updated and published on a monthly basis. Be aware that any interim updates for CONUS or OCONUS locations are not valid until reflected in SMART. For international travel, only the October 1 and April 1 subsistence files should be used to locate the M&IE rates.

If employees utilize the federal websites to find M&IE and lodging rates, those rates should be used as follows:

Rates published October 1 - for travel occurring between October 1 and March 31 of each year.
Rates published April 1 - for travel occurring between April 1 and September 30 of each year.

Lodging Expense Limitations:

K.S.A. 75-3207a(f) provides that the daily lodging expense limitations established may be exceeded, upon approval by the agency head or designee, 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.

Conference Lodging qualified under K.A.R. 1-16-18a(c):


Agencies may authorize payment or reimbursement for actual lodging expenses when an employee is required or authorized to attend a conference, and the lodging rate exceeds the applicable lodging expense limitation (including the additional 50%).  The agency head must be provided with conference materials and rates.  These should be maintained with travel documentation.

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 provided at no cost to the employee, the daily M&IE rate for the travel location should be reduced based on the percentages listed below.  For partial days, the quarter amount is calculated first and then the reduction percentage is applied.  The M&IE reduction percentages are as follows:

Breakfast - 15%

Lunch - 35%

Dinner - 50%

Same Day Meal Allowance:
Reimbursement for a same day meal, in accordance with K.A.R. 1-16-18(c)(2), is calculated as a percentage of the daily M&IE rate for the travel location, based on the approved meal, as follows:

Breakfast - 15%

Lunch - 35%

Dinner - 50%

 

Queries in SMART to Obtain M&IE Rates and Lodging Rates:

A query “KS_EX_CONUS_RATES” is available in SMART to obtain all CONUS and OCONUS locations with the M&IE daily rates, meal reductions and lodging rates.  SMART will be updated semi-annually with the October and April 1 CONUS and OCONUS subsistence rates.  Historical locations and rates from each semi-annual update will be maintained in SMART.

DH:jm

Printable version of 17-A-003

17-A-004 Statewide Encumbrance Policy (October 11, 2016)
Informational Circular No. 17-A-004
Effective Date: January 1, 2017
Approval: DeAnn Hill (Original Signature on File)

 

Contact Name: Phone Number Email Address
Janette Martin (785) 296-7021 janette.martin@ks.gov
Ginnie Schirmer (785) 296-7021 ginnie.schirmer@ks.gov
Brandy Wilson (785) 296-6260 brandy.wilson@ks.gov
Brad Elkins (785) 296-3356 brad.elkins@ks.gov
Stacy Cooper (785) 296-3242 stacy.cooper@ks.gov
Chuck Wilson (785) 296-6033 chuck.wilson@ks.gov
Summary: State of Kansas Encumbrance Policy

Informational Circular 17-A-004 introduces a new statewide accounting policy for encumbering agency obligations.  The three methods for encumbering in the Statewide Management, Accounting & Reporting Tool (SMART) are purchase orders, travel authorizations and General Ledger (GL) encumbrance journals.

The new encumbrance policy resides in Policy Manual (PM) Filing number 10,300 – Statewide Encumbrance Policy, and can be found at:  https://admin.ks.gov/offices/chief-financial-officer/policy-manual

PM Filing 10,300 identifies obligations that are required to be encumbered as well as obligations that are not required to be encumbered but are optional for agency budget management.  In addition, best practices are found in the attached document.

Please note:  The following payments remain under review pending a determination of any encumbrance requirement:

  • Payroll expenditures and remittance of payroll taxes, deductions and garnishments
  • Single Pay voucher payments

The provisions of PM Filing 10,300 should be followed in conjunction with all requisition and purchase order requirements issued through the Office of Procurement & Contracts.

PM Filing 10,300 will be effective January 1, 2017.

The Department of Administration recognizes the significant impact this will have on agency processing.  A six month transition period will allow agencies the opportunity to review and amend internal procedures and processes necessary for compliance with the statewide encumbrance policy.  Auditing by the Agency Audit Services Team of the Office of the Chief Financial Officer for compliance with the statewide encumbrance policy will begin July 1, 2017.

 

DH:ME

Attachment:
Best Practices – Statewide Encumbrance Policy
Printable Version of 17-A-004

17-A-005 Clarification on Agency Purchasing Authority (November 10, 2016)
Informational Circular No. 17-A-005
Effective Date: November 10, 2016
Approval: DeAnn Hill (Original Signature on File)

 

Contact Name: Phone Number Email Address
Office of Procurement and Contracts (785) 296-2376 N/A
Office of the Chief Financial Officer
    (Audit Services, SMART)
N/A SMART Service Desk -
https://dahelpdesk.ks.gov/
Summary: Clarification on Agency Purchasing Authority

This informational circular is being issued to define the basis for determining the level of authorization necessary for agency purchases from a single supplier during the budget year.

K.S.A. 75-3739(e) allows the Director of Purchases, with the approval of the Secretary of Administration, to delegate authority to any state agency to make purchases of less than $25,000.  Under this statute, the Director of Purchases has generally authorized for state agencies to spend up to $5,000 with one supplier during each fiscal year.  The fiscal year has been defined to be equivalent to the budget year.  Under this authorization, the agency has the ability to spend up to $5,000 with one supplier using their delegated purchasing authority during a budget year, in addition to any spend which occurs using a prior authorization and/or state contract.

Example:  An agency has a contract with a supplier for shoes.  The agency has already purchased $10,000 of contracted items.  With the same supplier, the agency makes a purchase of socks for $500 for which there is no contract.  The agency can use their delegated purchasing authority for the $500 purchase of socks without approval from the Office of Procurement and Contracts.  If the agency discovers later in the same budget year that they need to buy an additional $4,500 of socks, then authorization from the OPC must be attained prior to the commitment to purchase the additional socks.

Please see the chart below.
 

Amount of Allowable Agency Spend with a Supplier in a Single Budget Year
 

Prior Authorization State Contract Agency Delegated Purchasing Authority
Up to the Prior Authorization Amount Limited or Unlimited, per Contract Up To $5,000

 

For individual purchases with one supplier which are under $5,000, but total spend for the supplier is $5,000 or greater for the budget year, approval from the OPC is required unless the items for that supplier are already on state contract or a prior authorization has already been obtained.  See the attached document which provides instructions on how to obtain OPC approval.

Attachment
Printable Version of 17-A-005

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17-A-006 Procedures for Filing 2016 Form 1099 Information Returns for Non-SMART Payments (November 15, 2016)
Informational Circular No. 17-A-006
Supersedes Informational Circular No: 16-A-008
Effective Date: Immediately
Contact Name: Elaine Harris

Ph:(785) 296-7458

Email:(elaine.harris@ks.gov)

Approval: DeAnn Hill (Original Signature on File)
Summary: Procedures for Filing Calendar Year 2016 Form 1099 Information Returns for non-SMART payments and payments in SMART without the required 1099 information
  • Requirements to report payments where the 1099 data was not recorded in SMART:
    1. The supplier/client must be in the Statewide Management, Accounting and Reporting Tool (SMART) supplier table.
    2. All reportable payments must be submitted via Service Desk using the EXCEL template referenced below
    3. The Office of the Chief Financial Officer processes the payments submitted via Service Desk using SMART. SMART generates the paper 1099s which are mailed to the suppliers. The 1099 information is electronically submitted to the IRS. 

There is NO option for the agency to print the forms and have the Office of the Chief Financial Officer report to the IRS.

Policy and procedures:

While most 1099 transactions are recorded in 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.
    • Other payments such as non-employee awards not paid directly to the recipient from SMART.

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

Complete the EXCEL template “PS_WTHD_TRAN_TBL_update_template” (link to the Excel document is 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 the Chief Financial Officer by January 11, 2017 to ensure the 1099s are distributed by the January 31, 2017 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 Service Desk ticket with the heading “non-SMART 1099”. Note if you have leading zeros precede them with an apostrophe ‘, i.e. supplier id ‘0000123456.

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

WTHD_ENTITY: IRS

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

WTHD_JUR_CD: FED

WTHD_CLASS: as listed in the supplier table, with leading zeros.

WTHD_RULE: RULE0

SUPPLIER_SETID: SOKID

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

SUPPLIER_LOC: the supplier location with the appropriate 1099 type and class, usually 001, with leading zeros

ADDRESS_SEQ_NUM: 1

PYMNT_ID: Blank

SUPPLIER FEIN OR SSN: 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 2016.

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

Additional Resources:

Training guide for setting up suppliers for 1099 reporting and an account code guide:
1099 and Withholding Information Training Guide

IRS guide to each type of 1099, including instructions for each:
IRS Online Instructions for Forms

SMART withholding codes:
SMART Withholding Codes Job Aid

Excel withholding template:

IC 17-a-00X- PS_WTHD_TRAN_TBL update template

Printable version of 17-A-006

17-A-007 Addition of New Account Codes for KPERS Working After Retirement 3rd Party/Independent Contractor Expenditure Tracking (November 21, 2016)
Informational Circular No. 17-A-007
Effective Date: Month Day, Year
Approval: DeAnn Hill (Original Signature on File)

 

Contact Name: Department Phone Number Email Address
Amanda Entress SHARP - Statewide Payroll (785) 296-3887 amanda.entress@ks.gov
Nancy Haufler SMART - Statewide Accouting (785) 296-5368 nancy.haufler@ks.gov
Summary: New Account Codes for KPERS Working After Retirement 3rd Party/Independent Contractor Expenditure Tracking
As a result of the implementation of KPERS Working After Retirement (WAR) 3rd Party/Independent Contractor member contributions, a new account code has been added to SMART to use for employer contribution expenditure tracking. The following account code is eligible to be used starting immediately.

Account Code                    Description                                                   Short Description           

518101                                ER KPERS WAR 3rd PTY/CNSLNT               SHARP REQ    

This account code is to be used to track non-payroll employer contributions for KPERS WAR 3rd Party/Independent Contractor member type ACTR that are not tracked in SHARP. Agencies are reminded that they will need to work with KPERS to establish reporting procedures and billing frequencies for these members. As these member contributions are not tracked in SHARP agencies are required to be billed via a SMART interfund for amounts due to KPERS. Agencies should use SMART account code 518101(ER KPERS WAR 3rd PTY/CNSLNT) to record the expense side of the interfund.

Any interfunds that have been processed using any SMART account code other than 518101 will need to be corrected by creating a journal voucher in the Accounts Payable module, not Interfund module See the How to Enter a Journal Voucher job aid for instruction on entering the AP journal voucher. The payment method on the Payments tab of the journal voucher may need to be changed to ‘CHK’ in order to save the journal voucher. Submit a ManageEngine Service Desk ticket if you need additional assistance.


Printable Version of 17-A-007

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17-A-008 Updated FY 2017 Private Vehicle Mileage Rates (December 28, 2016) (Supersedes 17-A-001)
Informational Circular No. 17-A-008
Supersedes Informational Circular No: 17-A-001
Effective Date: January 1, 2017
Approval: DeAnn Hill (Original Signature on File)

 

Contact Name: Phone Number Email Address
Janette Martin (785) 296-2708 Janette.Martin@ks.gov
Ginnie Schirmer (785) 296-7021 Ginnie.Schirmer@ks.gov
Stacy Cooper (785) 296-3242 Stacy.Cooper@ks.gov
Brad Elkins (785) 296-3356 Bradley.Elkins@ks.gov
Brandy Wilson (785) 296-6260 Brandy.Wilson@ks.gov

 

Summary: Updated FY 2017 Private Vehicle Mileage Rates

The Internal Revenue Service (IRS) has announced changes in standard mileage rates effective January 1, 2017.  The IRS rate for privately owned automobiles decreases to 53.5 cents per mile while the moving mileage rate decreases to 17 cents per mile.

K.S.A. 75-3203a provides that the mileage reimbursement rates shall not exceed the lowest of the following:

  1. the rate allowed by the 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.

Thus, per the requirements of K.S.A. 75-3203a, the Department of Administration has reduced the rates for mileage reimbursement for the remainder of FY 2017, effective January 1, 2017:

  • 53.5¢ per mile for privately owned automobile
  • 50.5¢ per mile for privately owned motorcycle
  • $1.15 per mile for privately owned airplane (based on air miles rather than highway miles)
  • 17¢ per mile for moving mileage rate

DH:jm

Printable Version of 17-A-008

17-A-009 Revised Clarification on Agency Purchasing Authority (Replaces 17-A-005) (February 27, 2017)
Informational Circular No. 17-A-009
Effective Date: February 27, 2017
Approval: DeAnn Hill (Original Signature on File)

 

Contact Name: Phone Number Email Address
Office of Procurement and Contracts (785) 296-2376 N/A
Office of the Chief Financial Officer - (Audit Services, SMART) N/A SMART Service Desk - https://dahelpdesk.ks.gov/
Summary: Revised Clarification on Agency Purchasing Authority

This informational circular is being issued to define the basis for determining the level of authorization necessary for agency purchases from a single supplier during the budget year.

K.S.A. 75-3739(e) allows the Director of Purchases, with the approval of the Secretary of Administration, to delegate authority to any state agency to make purchases of less than $25,000.  Under this statute, the Director of Purchases has generally authorized for state agencies to spend up to $5,000 with one supplier during each fiscal year.  The fiscal year has been defined to be equivalent to the budget year.  Under this authorization, the agency has the ability to spend up to $5,000 with one supplier using their delegated purchasing authority during a budget year.   Please note that any spend which occurs using a prior authorization will also accumulate toward the $5,000 delegated purchasing authority limit.

Example A:  An agency has a contract with Payless (supplier) for shoes.  The agency has already purchased $10,000 of contracted items.  With the same supplier, the agency makes a purchase of other items for $1,000 for which there is no contract.  The agency can use their delegated purchasing authority for the $1,000 purchase of other items without approval from the Office of Procurement and Contracts (OPC).  If the agency discovers later in the same budget year that they need to buy an additional $4,500 of other non-contract items, then authorization from the OPC must be obtained prior to the commitment to purchase the additional items.  The non-contract spend (agency delegated authority) now exceeds the agency delegated purchasing authority amount.  Any further plan to purchase non-contract items from this supplier would require additional authorization from OPC.

Example B:  An agency has determined they need to purchase $10,000 of items for which there is no contract from a particular supplier.  The agency must seek Prior Authorization from OPC before a commitment is made to purchase the items.   Before submitting for the Prior Authorization, the agency should consider additional multiple purchases to this supplier during the remainder of the budget year and submit the Prior Authorization for that projected amount.  Since the Prior Authorization was equal to or greater than $5,000, the agency has no additional agency delegated purchasing authority remaining with that supplier for the budget year.  

Please see the chart below.

Amount of Allowable Agency Spend with a Supplier in a Single Budget Year

Contract Spend

Non-Contract Spend

Agency Contract

State Contract

Agency Delegated Authority up to $5,000

Unlimited or Limited, per Contract

Any additional spend requires a Prior Authorization

 

For individual purchases with one supplier which are under $5,000, but total spend for the supplier is $5,000 or greater for the budget year, approval from OPC is required unless the items purchased from that supplier are already on an OPC-approved contract.  

See the attached document which provides instructions on how to obtain OPC approval.

Attachment

Printable Version of 17-A-009

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17-A-010 Travel and Expense Payments (March 21, 2017)
Informational Circular No. 17-A-010
Effective Date: May 1, 2017
Contact Name: Office of the Chief Financial Officer (Audit Services, SMART) SMART Service Desk - https://dahelpdesk.ks.gov/
Approval: DeAnn Hill (Original Signature on File)
Summary: Travel and Expense payments must be paid using direct deposit payment method starting May 1, 2017.

As required by the Secretary of Administration’s 100% electronic payment policy issued May 21, 2010, beginning May 1, 2017, the Office of the Chief Financial Officer (OCFO) will require direct deposit for employee travel advances, travel reimbursements, and miscellaneous reimbursements generated within the SMART Travel and Expense module.

Details for Implementation

All employees must have direct deposit (ACH-Automated Clearing House) as the payment method for payments generated from the SMART Travel and Expense module.  Any travel and expense payments for employees set-up with System Check as the payment method will remain unpaid until the agency establishes the Automated Clearing House information within the employee’s profile in the Travel and Expense module.  The following steps should be taken to replace a System Check payment method with the Automated Clearing House payment method for travel and expense payments:

  • For employees who will be receiving travel and expense payments and do not have banking information established in their SMART employee profile, agencies should ask for the employee to complete Form DA-184, Authorization for Direct Deposit of Employee Pay and/or Employee Travel and Expense.  The employee must select one bank account to be used for their travel and expense payments.
    • The form can be downloaded from the Department of Administration web site: Document Center 
    • Employees have the option of using a State of Kansas Paycard as a means of receiving their travel and expense payments.  Employees can be referred to your agency’s human resource and payroll staff to obtain a paycard.  The employee can then complete the DA-184 including the paycard routing number and account number for the bank information.
  • The agency must update the employee’s SMART Travel and Expense profile.
    • For information on how to enter direct deposit information into employee profiles, please see the job aid available on SMARTWebhttp://www.smartweb.ks.gov/ .   Go to Training, Travel and Expenses, T & E Job Aids, Adding a Bank Account to an Employee Travel Profile.

A new SMART query has been created to identify active employees with ‘System Check’ as the payment method on the employee profile where the employee has been paid by check within a user-defined date range.  The query is named KS_EX_EE_CHECK_PAYMENT_LIST. 

 

Printable Version 17-A-010

17-A-011 Closing of Fiscal Year 2017 and Opening of Fiscal Year 2018 in SMART (April 4, 2017)
Informational Circular No. 17-A-011
Supersedes Informational Circular No: 16-A-019
Effective Date: Immediately
Approval: Nancy T. Ruoff (Original Signature on File)

 

Contact Name: Department Phone Number Email Address
Nancy Haufler SMART - Statewide Accounting (785) 296-5368 Nancy.Haufler@ks.gov
Amanda Entress SHARP - Statewide Payroll (785) 296-3887 amanda.entress@ks.gov
Lucinda Anstaett Office of the State Treasurer (785) 296-4151 lucinda@treasurer.ks.gov
Summary: Schedule of accounting events relevant to the closing of Fiscal Year 2017 and the opening of Fiscal Year 2018 

 

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.  In order for activity for fiscal year 2017 to be completed by June 30th, the cutoff date for most agency processing will be Tuesday, June 27, 2017 at 6:00 PM.  

SMART will be closed to agencies from Wednesday, June 28, 2017 through Friday, June 30, 2017 so the SMART Team can review and finalize all outstanding FY 2017 business.  SMART will also be closed the morning of Friday, July 7, 2017 to run the fiscal year 2017 closing processes and verify the fiscal year end journals were completed correctly.

The workload for both your agency and the SMART Team increases greatly during the fiscal year end closing period. In order to facilitate successful year end processing, reminders and guidelines for agencies are included below.

It is necessary for agency accounting staff to be available during the day Wednesday, June 28, 2017 through Friday, June 30, 2017 in case assistance is needed as the SMART Team is preparing the system for closing.

General Items

All FY 2017 transactions must be successfully edited, budget checked, matched, agency approved, dispatched, and submitted into workflow for central approval, as appropriate, by 6:00 PM on Tuesday, June 27, 2017. After this time, SMART will be closed to all agency users, and the SMART clean-up process will begin on Wednesday, June 28, 2017.

State agencies should be reviewing financial data and processing any necessary corrections before the end of the fiscal year. Please consult the month end checklists available on the SMART website, http://smartweb.ks.gov/home/month-end-checklists/, to assist with this review.  There are additional queries listed in the REFERENCES section at the end of this document that may also be helpful. The SMART Team is actively working to assist agencies in preparation for fiscal year end. Service Desk tickets will be sent to agencies as outstanding or incomplete transactions are found. The transactions identified by the SMART Team will likely be just a subset of the outstanding, incomplete or incorrect transactions agencies will identify between now and the end of the fiscal year.  

General Ledger Encumbrances (non-supplier specific encumbrances) will be used to encumber fiscal year 2017 budget in limited circumstances. The GL-F016 GL Encumbrance Request Form is located on the Department of Administration website at the following link:  Document Center

Document Center

Complete the GL-F016 GL Encumbrance Request Form and attach it (as an Excel file, not PDF) to a Service Desk Ticket by 5:00 PM on Tuesday, June 13, 2017 for an amount greater than $5,000 using State General Fund.   The agency deadline is 5:00 PM on Thursday, June 22, 2017 for an amount less than $5,000 using State General Fund and any amount using all other funds. Provide a description of the obligation and the reason the supplier is not known or the Purchase Requisition/Order process is not practical for encumbering budget. Requests will be routed to the Division of the Budget (DoB) for approval.

GL Encumbrance Journals may be keyed by the Office of the Chief Financial Officer staff into SMART prior to receiving DoB approval in order to give each agency the opportunity to review the document and its effects in SMART prior to close.  Agencies will be notified via Service Desk ticket of the Journal ID(s). In the event DoB denies the GL encumbrance, the affected agency will be notified via Service Desk ticket and the document will be deleted from SMART.

Budget Period 2017 expense, encumbrance, and revenue data from SMART Commitment Control Ledger groups (CC_IBARS_E, CC_IBARS_R) will be electronically submitted to the Division of the Budget by Tuesday, August 1, 2017 for loading into the IBARS system.

The dates provided in this document that relate to fiscal year closing and opening activities may be revised, as necessary, by the Office of the Chief Financial Officer.  Revisions to SMART processing dates will be sent via email to all users subscribed to the SMART Infolist listserv (subscribe at http://www.da.ks.gov/Gov/listserv.htm).  After issuance, SMART Announcements are also posted on the SMART Website at

http://smartweb.ks.gov/announcements/impt-announce

Any revisions to payroll processing dates will be issued as a SHARP message to subscribers of the SHARP infolist listserv (subscribe at http://www.da.ks.gov/Gov/listserv.htm).  

Accounts Payable

The final day agencies can enter a voucher in accounts payable for FY 2017 business will be Tuesday, June 27, 2017.  Here is additional information that will help you with accounts payable:

Please refer to PM 14,002 (Policy Manual) to help determine the appropriate processing period for each type of account code activity.

Interfacing agencies must have their final INF02 (Inbound Voucher) for FY 2017 business submitted by 5:00 PM on Monday, June 26, 2017.

For agencies that upload and submit vouchers via INF50 (Voucher Spreadsheet Upload), the final INF50 for FY 2017 business must be submitted by 1:00 PM on Tuesday, June 27, 2017.

In order for accounts payable transactions to complete for FY 2017, all vouchers must be entered, matched, budget checked and approved by 6:00 PM on Tuesday, June 27, 2017. The last hourly batch will run at 4:00 PM. Any transaction still in process after 4:00 PM must be manually budget checked, matched, and then approved to be postable or posted by 6:00 PM.

Any FY 2017 accounts payable transaction that cannot be entered into SMART by the cutoff date must be encumbered by using a purchase order.

Any voucher that has not been successfully edited, matched, budget checked and approved by 6:00 PM on Tuesday, June 27, 2017 will be deleted by the SMART Team.

Interfacing agencies may submit their INF02 files for FY 2018 business in advance with an accounting date on or after July 1, 2017. The files received and processed prior to July 1st will be in voucher build error until FY 2018 is opened. At that time, vouchers will be built and will be eligible for pay cycle once they are matched, budget checked, and approved.

Travel Authorizations 

K.S.A. 75-3208 requires approval for all out of state travel. One method of approval is the use of a Travel Authorization. Pursuant to PM 10,300 Statewide Encumbrance Policy, Travel Authorizations are required for all out of state travel, and international travel events, and any travel or expense reimbursement that will not be entered by the fiscal year end cutoff date. Travel Authorizations must be entered and fully approved prior to the dates of travel.

All in state and out of state travel occurring in FY 2017 must be reimbursed using FY 2017 funds. If an expense report for an amount greater than $5,000 using State General Fund will not be submitted and fully approved by 6:00 PM on Tuesday, June 27, 2017, a Travel Authorization must be entered and fully approved by 6:00 PM on Friday, June 16, 2017. If an expense report for an amount less than $5,000 using State General Fund and any amount using all other funds will not be submitted and fully approved by 6:00 PM on Tuesday, June 27, 2017, a Travel Authorization must be entered and fully approved by 6:00 PM on Tuesday, June 27, 2017.

Any travel authorization that has not been fully approved by 6:00 PM on Tuesday, June 27, 2017 will be deleted by the SMART Team.

If you need to encumber money for Prepaid expenses that will not be paid by close of FY 2017, you will need to create a purchase order for the prepaid items.

Travel Authorizations for FY 2018 shall not be entered until FY 2018 is open to agencies.

Cash Advance

Cash Advances must be reconciled by 6:00 PM on Tuesday, June 27, 2017.

Expense Reports

Expense Reports chargeable to FY 2017 must be submitted and fully approved in SMART by 6:00 PM on Tuesday, June 27, 2017.  Per PM 10, 300 Statewide Encumbrance Policy, for any travel or expense reimbursement chargeable to FY 2017 that cannot be submitted and fully approved in SMART by the 6:00 PM Tuesday, June 27, 2017 deadline, the agency must process a Travel Authorization.

Any expense report that has not been fully approved by 6:00 PM on Tuesday, June 27, 2017 will be deleted by the SMART Team.

Per K.S.A. 75-3201 and as stated in PM 3,903 --Employee Travel Expense Reimbursement Handbook, employees who travel are to submit paperwork for their expenses at least once a month.  

If agency employees have expense reports for travel occurring in FY 2017, and there is no approved travel authorization or GL encumbrance in SMART, the use of the Prior Fiscal Year Claims Process as described in PM 11,966 is required. The Policy Manual can be found here.

Imprest Funds

Expenditures paid from imprest funds dated on or before June 30, 2017 must be recorded in SMART prior to the deadline for payment voucher submission. For imprest fund expenditures not expected to be recorded in SMART by the fiscal year end cutoff for payment vouchers, a purchase order (PO) or general ledger encumbrance (GL encumbrance) must be created as appropriate using the correct budget period and funding. Prior to July 15, 2017, the agency must replenish the imprest fund and record expenditures to the appropriate suppliers (using the PO or GL encumbrance). The expenditure fiscal year determination contained in PM 14,002 also applies to imprest funds. Refer to PM 10,802 for additional information regarding imprest funds. PM 10,802 can be found here.

Petty Cash Funds

Petty cash procedures are the same as those set forth in the Imprest Funds section above. The expenditure fiscal year determination contained in PM 14,002 also applies to petty cash funds. Refer to PM 10,752 for additional information regarding petty cash funds. PM 10,752 can be found here.

Purchasing

To encumber monies for FY 2017, requisitions must be sourced to purchase orders (POs) and the purchase orders must be approved, budget checked and dispatched by 6:00 PM on Friday, June 16, 2017 for an amount greater than $5,000 using State General Fund and 6:00 PM on Tuesday, June 27, 2017 for an amount less than $5,000 using State General Fund and any amount using all other funds.

If an Agency needs to process a requisition using FY 2018 funds prior to July 1, 2017 the agency should take the following steps:

  • Starting Monday, May 1, 2017 enter the requisition and select the ‘Save for Later’ option.
  • Starting Thursday, June 1, 2017 submit a Service Desk ticket requesting the budget date on the requisition be changed to a FY 2018 date.
  • Once the budget date has been changed, select the ‘Save & submit’ button on the requisition.

The requisition will source to a PO; however, the PO will not pass budget check until the FY 2018 appropriations budget has been loaded into SMART.

Purchase orders entered after 6:00 PM on Tuesday, June 27, 2017 will NOT be back dated to a 2017 Fiscal Year budget date.

Refer to Procurement Informational Circular 17-01, Schedule for Submission of Purchases Requisitions to Close Fiscal Year 2017 and begin Fiscal Year 2018 for additional purchasing deadlines. Link to Procurement Informational Circulars:  Procurement Informational Circulars

Procurement Cards

Agencies are encouraged to reconcile P-Card transactions on a daily basis, especially during the month of June.  Final FY 2017 P-Card transactions will be available for reconciliation on Monday, June 19, 2017.  P-Card transactions must be verified and approved by 6:00 PM on Monday, June 26, 2017 to be eligible for P-Card voucher build on Tuesday, June 27, 2017. No P-Card reconciliation for FY 2017 transactions shall take place after 6:00 PM on Monday, June 26, 2017.

The P-Card voucher build process will run each day during the week beginning Monday, June 19, 2017. The final P-Card voucher build process for FY 2017 will run the morning of Tuesday, June 27, 2017.  In order for P-Card vouchers to complete for FY 2017, they must be successfully budget checked and approved by 6:00 PM on TuesdayJune 27, 2017.  The last hourly batch will run at 4:00 PM. Any P-Card voucher still in process after 4:00 PM must be manually budget checked and then approved to be postable or posted by 6:00 PM.

Any P-Card voucher that has not been successfully edited,  budget checked and approved by 6:00 PM on Tuesday, June 27, 2017 will be deleted by the SMART Team.

Asset Management

All FY 2017 asset transactions must be entered by 6:00 PM on Tuesday, June 27, 2017. This includes additions, adjustments, transfers, and retirements, as well as updating costs for CIP assets. Please see the AM Month End Checklist (linked at the end of this document) for links to applicable training materials covering these financial transactions.

Note that for new assets being entered in SMART, the Transaction Date will be the In Service Date. The KS_AM_VCHRS_WITH_54XXXX_ACCT query in the HELPFUL QUERIES section of this circular is designed to help identify vouchers processed during a specified timeframe that utilized 54xxxx (capital outlay) account codes. 

For agencies utilizing integration, all outstanding Interface ID’s for FY 2017 must be processed by 6:00 PM on Tuesday, June 27, 2017. If an asset is acquired by your agency at the end of the fiscal year and the voucher will not be posted by Thursday, June 22, 2017, please enter the asset(s) manually via Express Add. Any remaining FY 2017 Interface IDs after Tuesday, June 27, 2017 will be deleted by the SMART Team. 

Additional information can be found in the Job Aid under the Assets Month/Year End Reconciliation Section: Asset Management Preparing for Fiscal Year End at https://smartweb.ks.gov.production.premier.siteviz.com/training/asset-management

Project Costing

All billing worksheets where revenue should be recognized in FY 2017 should be approved or written-off and any related deposits completed by 6:00 PM on Tuesday, June 27, 2017.

It is recommended that all billing worksheets created prior to April 1, 2017 be reviewed and processed by Friday, May 26, 2017.  The KS_PC_BILLING_WORKSHEET query in the HELPFUL QUERIES section of this circular is designed to help identify unprocessed billing worksheets by accounting date.

Accounts Receivable

Fiscal year 2017 deposits must be entered as follows:

Deposits should be entered, agency approved, and budget checked prior to 6:00 PM on Tuesday, June 27, 2017.

Wednesday, June 28, 2017 through Friday, June 30, 2017 online entry into SMART will be closed to agencies.

Deposits received Wednesday, June 28 through Friday, June 30 shall be processed as follows:

Credit card receipts will load into SMART as scheduled at 8:00 AM each day Wednesday, June 28, 2017 through Friday, June 30, 2017. See below for instruction on Deposit Adjustments for Credit Card Clearing Funds.

For agencies that upload and submit deposits via INF43 (Excel Deposit Upload) and INF44 (Inbound Deposit) -- continue to upload and submit FY 2017 deposits via INF43 and INF44 until 11:00 AM on Friday, June 30, 2017. SMART AR Deposit jobs will run according to the regular hourly schedule.  If you process an INF43 or INF44, please e-mail the State Treasurer’s Cash Management Group at cash@treasurer.ks.gov to notify them of the Business Unit, Deposit ID (if known), and deposit total so they can approve the transaction in SMART.  STO will perform their normal approval and release at 3:00 PM Wednesday, June 28, 2017 and Thursday, June 29, 2017. STO will perform the final FY 2017 approval and release at 1:00 PM Friday, June 30, 2017.

For agencies that do not use the INF43 or INF44 processes and need to make a deposit while SMART is unavailable -- the State Treasurer’s Office has created the Temporary Deposit Form to allow you to continue to deposit funds. Using the Temporary Deposit Form is preferable to holding checks and cash at your agency, and allows you to meet the requirement to deposit funds collected each day. Please bring the completed form, along with the cash and checks (calculator tape attached) to the State Treasurer’s Office.  June 2017 Accounts Receivable will be reopened on Monday, July 3, 2017, and will remain open through Wednesday, July 5, 2017 to allow agencies to enter Deposits in transit with an accounting date of June 30, 2017 using the following instructions:

“Deposits in transit” are specifically defined as Deposits made with the State Treasurer on Wednesday, June 28, 2017, Thursday, June 29, 2017 or Friday, June 30, 2017 using the Temporary Deposit Form.

Agencies will enter deposits, for the “deposits in transit”, using an accounting date of June 30, 2017.  The accounting date of 6/30/2017 must be entered on the Totals tab in addition to being entered on the Payments tab for each deposit line. “Deposits in transit” should be recorded using a revenue account code (4XXXXX).  A “deposit in transit” cannot debit expenditures.

Please be aware that deposits with an accounting date of June 30, 2017 and processed in July 2017 will impact the General Ledger for FY 2018.

Deposits with a June 30, 2017 accounting date that have not been agency approved by 3:00 PM on Wednesday, July 5, 2017, will be deleted by the SMART Team.

Deposit Adjustments for Credit Card Clearing Funds:

Deposit adjustments are required for credit card deposits to recognize the revenue and move the monies out of the credit card clearing funds and into the appropriate funds.

All deposits received prior to June 27, 2017 that require deposit adjustments, such as those deposits into clearing funds for credit card receipts, must have deposit adjustments entered in SMART by 6:00 PM on Tuesday, June 27, 2017.

The credit card deposits will load into SMART as scheduled at 8:00 AM on Wednesday, June 28, 2017, Thursday, June 29, 2017 and Friday, June 30, 2017 when agencies do not have access to SMART.

On Monday, July 3, 2017 through Wednesday, July 5, 2017 the SMART Accounts Receivable module will be reopened to agency users to complete June 2017 (FY 2017) transactions. Use the instructions below for any remaining prior year deposit adjustments that need to be completed.  FY 2017 deposit adjustments that have not been agency approved by 3:00 PM on Wednesday, July 5, 2017 will be deleted by the SMART Team.

  1. Follow SMART job aid “Credit Card/E-Check Deposits – Revenue Only” on how to locate credit card deposits and how to complete the deposit adjustments.
  2. On the deposit adjustment Totals tab, the Accounting Date must be 6/30/2017.
  3. On the deposit adjustment Payments tab, the Accounting Date on each transaction line must be 6/30/2017
  4. The SMART Accounts Payable module for FY 2017 will be closed by July 1, 2017, preventing the use of expenditure account codes in the deposit adjustment transactions. 

Please be aware that deposit adjustments with an accounting date of June 30, 2017 and processed in July 2017 will impact the SMART General Ledger for FY 2018. This may cause reconciling items for agencies between the Accounts Receivable module and the General Ledger module.

Deposit adjustments with a June 30, 2017 accounting date that have not been agency approved by 3:00 PM on Wednesday, July 5, 2017, will be deleted by the SMART Team.

Interfunds

The accounting dates on both the interfund voucher and the interfund deposit must fall within the same fiscal year.

Both sides of the interfund must be successfully edited, matched and approved by 6:00 PM on Tuesday, June 27, 2017.   Budget checking for interfunds occurs during nightly batch.

ALL remaining FY 2017 interfund deposits and interfund vouchers that have not been successfully edited, matched and approved by 6:00 PM on Tuesday, June 27, 2017 will be deleted by the SMART Team.

Agencies with interfunds remaining due to budget check exceptions will be contacted by the SMART Team on Wednesday, June 28, 2017 in an effort to resolve the budget check exceptions. Any interfunds remaining due to an inability to resolve budget check exceptions by 6:00 PM on Wednesday, June 28, 2017 will be deleted.

Interfunds for FY 2018 shall not be entered until FY 2018 is open to agencies.

GL Journals

In order to affect fiscal year 2017, all GL Journals must be successfully edited, budget checked, agency approved, and submitted into workflow for central approval by 6:00 PM on Tuesday, June 27, 2017.

Interfacing agencies must have their final INF06 (Inbound GL Journal) for FY 2017 business submitted by 5:00 PM on Monday, June 26, 2017.

GL Spreadsheet Journals can be uploaded manually until 3:00 PM on Tuesday, June 27, 2017.  The journals must be edited, budget checked, approved and submitted for central approval by 6:00 PM on Tuesday, June 27, 2017.

Any online, spreadsheet, or interface FY 2017 GL Journals with an accounting date of 6/30/2017 or before, that do not have agency approvals by 6:00 PM on Tuesday, June 27, 2017, will be considered an abandoned transaction and will be deleted by the SMART Team.

Commitment Control

FY 2018 Budget Journals for agencies who use “Track with Budget” must be entered prior to any FY 2018 pre-encumbrance (if applicable), encumbrance, expenditure, or revenue transactions are entered into SMART.  Otherwise the transactions will fail budget check.

System Availability

Normal hours of availability are shown below.

SMART

Monday through Saturday, 7:00 AM to 6:00 PM.  The cutoff for receiving SMART interface files is 5:00 PM Monday through Friday.

Sunday, 1:00 PM through Monday, 6:00 PM.  Not all Sundays are open.  Please refer to the SMART Calendar: http://www.smartweb.ks.gov/home/calendar

SMART availability during fiscal year end processing.

Monday, June 19, 2017 through Saturday, June 24, 2017, 7:00 AM to 6:00 PM.  The cutoff for receiving SMART interface files is 5:00 PM Monday through Friday.

Sunday, June 25, 2017, 1:00 PM through Monday, June 26, 2017, 6:00 PM.

Tuesday, June 27, 2017, 7:00 AM to 6:00 PM.

SMART Closed Wednesday, June 28, 2017 through Friday, June 30, 2017.

Saturday, July 1, 2017, 7:00 AM to 6:00 PM.

Sunday, July 2, 2017, 1:00 PM through Monday, July 3, 2017, 6:00 PM. 

Tuesday, July 4, 2017, 7:00 AM to 6:00 PM.  SMART daytime and nighttime batch processes will not run.

Wednesday, July 5, 2017 through Thursday, July 6, 2017, 7:00 AM to 6:00 PM (normal availability and processing).

SMART Closed Friday, July 7, 2017, 7:00 AM to 12:00 PM – an announcement will be sent when SMART is opened to agency users.

Saturday, July 8, 2017, 7:00 AM – SMART resumes normal availability and processing.

Kansas Service Desk

Monday through Friday, 8:00 AM to 5:00 PM.
Saturdays, Sundays, and holidays, not available.

SHARP

Monday through Friday, 7:00 AM to 6:00 PM
Saturday, 1:00 PM to 9:00 PM
Sunday, 1:00 PM to 6:00 PM

Accounts Receivable (Deposit) Processing when SMART is closed to users the morning of Friday, July 7, 2017:

SMART will be closed to agency users the morning of Friday, July 7, 2017 to run the fiscal year close processes.  The following process should be followed to make FY 2018 deposits:

The State Treasurer’s Office will have limited access to SMART to allow them to process deposits during the morning hours.

If you are expecting funds to be wired to the State Treasurer on Friday, July 7, 2017, please enter and approve the appropriate deposit in SMART by 6:00 PM on Thursday, July 6, 2017. When the wire transfer arrives at the Treasurer’s Office, they will match the funds to the appropriate deposit transaction, and complete the State Treasurer Approval on the deposit.  This deposit will then be recorded in SMART as usual during the next nightly batch.  

Agencies may continue to upload and submit FY 2018 deposits via INF43 (Excel Deposit Upload) and INF44 (Inbound Deposit) on Friday, July 7, 2017.  SMART AR Deposit jobs will run at 10:00 AM, Noon and 2:00 PM.  If you process an INF43 or INF44, please e-mail the State Treasurer’s Cash Management Group at cash@treasurer.ks.gov to notify them of the Business Unit, Deposit ID (if known), and deposit total so they can approve the transaction in SMART.

For agencies that do not use the INF43 or INF44 processes and need to make a deposit during the morning of Friday, July 7, 2017 while SMART is unavailable -- the State Treasurer’s Office has created the Temporary Deposit Form to allow you to continue to deposit funds.

On Friday, July 7, 2017 (when SMART is again open for business), agencies will need to enter and approve the appropriate “temporary” Deposit.

Credit Card Receipts will load into SMART as scheduled at 8:00 AM on Friday, July 7, 2017. Agencies will be able to enter the appropriate Deposit Adjustments later in the day on Friday, July 7, 2017.

Any questions about this process should be addressed to Brenda Linder, (785) 296-4144, or e-mail brenda@treasurer.ks.gov.

REFERENCES

FY 2017 Closing and FY 2018 Opening Schedule Day by Day Summary – Attached

SMART Training Resources -- http://www.smartweb.ks.gov/home, click the Training link

Month-End Checklists:  http://smartweb.ks.gov/home/month-end-checklists/Month End Checklists
               Accounts Receivable Month End Checklist
               AP Month End Checklist (includes Travel and Expense Month End Checklist)
               Asset Management Month End Checklist
              GL Month End Checklist
              PO Month End Checklist

Forms:
Temporary Deposit Form
GL Encumbrance Request Form 

HELPFUL QUERIES: 

Navigation: Reporting Tools>Query>Query Viewer

Travel and Expense

KS_EX_UNPROCESSED_TRAVEL_AUTHS – Users will enter a date range based upon the accounting date of the Travel Authorization.  This will typically be the date the Travel Authorization was created.  The query returns all Travel Authorizations that have not fully processed in the system sorted by TA Status, Travel Date From and Travel Auth ID number.  Note** Travel Authorizations with a valid budget status have encumbered budget.

KS_EX_UNPROCESSED_EX_REPORTS – Users will enter a date range based upon when the Expense Report was created.  The query returns all unprocessed Expense Reports sorted by Status and Report ID.

Accounts Payable

KS_AP_UNPROCESSED_VOUCHERS – Users will enter a date range based upon the accounting date of the vouchers.  This will typically be the date the voucher was created.  The query returns all vouchers that have not fully processed in the system sorted by Voucher ID.

KS_AP_VOUCHERS_NOT_POSTED – Users will enter Business Unit and a date range based on the accounting date of the vouchers. This will typically be the date the voucher was created. The query returns all vouchers that have a valid budget status and therefore have impacted Commitment Control but have not posted to the GL. Provides match, budget check and approval statuses.

KS_AP_UNPROCESSED_INTRFND_VCHR – Users will enter a date range based on the accounting date of the vouchers. The query returns all interfund type vouchers that have not fully processed. This will include interfund type vouchers that are not attached to an interfund.

KS_APAR_PENDING_INTRFNDS -This query will show pending Interfunds, both Initiated and Received by your agency, that are tied to a Voucher or Deposit.

KS_INTRFNDS_APPR_NOT_POSTED - User will enter Business Unit. The query will return results for either side (deposit or voucher) to which your agency is a party, and at least one of the following is true: 1) Voucher is not posted 2) Payment is not posted 3) Deposit is not posted. This query should give you an indication of transaction exceptions that may need further review. Depending on when you run the query, you may have interfunds that were approved in the current day’s activity that have not yet posted in the nightly batch. If the deposit or voucher approval date reflects the current or previous day’s date, you can likely ignore it.  We recommend running it first thing in the morning before new approvals are registered to avoid extraneous results. We recommend running this query at least monthly and more frequently as fiscal year end close approaches.

Asset Management

KS_AM_VCHRS_WITH_54XXXX_ACCT - This query displays a list of all vouchers within a specified date range with 54XXXX account codes. You should use the Asset Inventory List report in conjunction with this query to make sure all capital assets have been added to SMART.

Project Costing

KS_PC_BILLING_WORKSHEET – This query shows a list of all unprocessed billing worksheets that can be either billed or written off to help get Federal Funds into a positive cash position by year-end.

General Ledger

KS_GL_JOURNALS_BUDGET_ERROR – This query displays any GL Journals in Budget Check error.

KS_GL_JOURNALS_ERRORS – This query will show GL Journals in Edit error and cannot be posted.

Purchasing

KS_PO_NEGATIVE_PO_LINES - This query was designed to identify those POs that have a negative PO line.  Negative PO lines create unauthorized budget.  Agencies must cancel or close any negative PO lines currently in SMART by 6:00 PM on Tuesday, June 27, 2017.

Job Aid: http://smartweb.ks.gov/docs/default-source/po---po---queries/using-the-ks_po_negative_po_lines-query.pdf?sfvrsn=2

KS_PO_PCRD_VCHR_DELETED - This query was designed to identify those P-Card vouchers/lines that have been deleted.  Agencies should not delete P-Card vouchers/lines.  The deletion of a P-Card voucher/line does not update the P-Card transaction; consequently, the P-Card transaction retains a voucher ID and voucher line number that no longer exists in SMART.  This gives the appearance that the P-Card transaction has not been paid.

Job Aid:  http://smartweb.ks.gov/docs/default-source/po---p-cards---queries/using-the-ks_po_pcrd_vchr_deleted-query.pdf?sfvrsn=4

KS_PO_REQS_OPEN_PNDNG – This query was designed to identify those requisition lines that need to have some action taken by 6:00 PM on Tuesday, June 27, 2017

Job Aid:   http://smartweb.ks.gov/docs/default-source/po---reqs---queries/using-the-ks_po_reqs_open_pndng-query.pdf?sfvrsn=6

Printable Version of 17-A-011

17-A-012 Updated Supplier Information Forms (DA-130, DA-130C, and TM-21) (May 18, 2017)
Informational Circular No. 17-A-012
Effective Date: May 17, 2017
Contact Name:
Office of the Chief Financial Officer - 
(Audit Services, SMART)
Ph:
(xxx) xxx-xxxx
SMART Service Desk - 
   https://sokdahelpdesk.ks.gov
Approval: DeAnn Hill (Original Signature on File)
Summary: Increased fraud prevention practices regarding changes to SMART supplier information. 

Fraudulent re-direction of direct deposit (ACH-Automated Clearing House) payments is a crime that targets all businesses and entities. While the Office of the Chief Financial Officer is unaware of any successful attempts at re-routing payments, fraudulent attempts to request changes to supplier ACH accounts have been reported.  These attempts have been very sophisticated.  Unauthorized individual(s) submitted information via email that contained email addresses and company logos that appeared to be from the supplier.  In addition, these unauthorized individuals may have contacted multiple state employees to obtain different pieces of information in order to not raise suspicions.

Fraud prevention tips:

  • DO NOT provide a supplier with any account or identifying information. The supplier should already have that information.
  • If the person requesting the change of supplier information is unfamiliar to you, confirm the individual requesting the form does exist at the company and is authorized to make the change requested.
    • Contact the person you normally deal with at the supplier to verify the requestor’s identity.
    • Establish a relationship with a new supplier by using a known phone number for the supplier.  Do not use a phone number submitted with the request or on the email communication.  Use the contact information from the invoice.
    • Ask the supplier/individual requesting the change to confirm the current account number and/or invoice number.  

DA-130 Authorization for Electronic Deposit of Supplier Payment form:
The DA-130 form has been updated to incorporate additional verification needed to validate banking update requests.  The DA-130 is not a public document; therefore, the DA-130 is not published on the Department of Administration’s website and should not be published on agency websites accessible to the public. Agencies acquire the DA-130 form by creating a ManageEngine Service Desk ticket. To maintain the security of the form, agencies are responsible for providing DA-130 forms directly to suppliers upon request in lieu of providing access on an agency website.

It is important that processes and procedures to reduce the risk of account fraud are developed and are put into practice both when a DA-130 form is requested and when completed DA-130 forms are received.  Do not send the DA-130 form to suppliers/individuals who cannot confirm their identity.

DA-130 form completion/submission:

  • The DA-130 form must be filled out by the supplier or an authorized representative and cannot be completed by the agency.
    • The DA-130 (Rev. 05-2017) form requires the supplier provide a recent payment amount and date. DO NOT give them this information. If they do not know, direct the supplier to the Vendor Payment Self-Service website https://admin.ks.gov/offices/chief-financial-officer/central-responsibilities/vendor-payment-self-service
    • An official bank letter, voided check, or deposit slip must accompany the completed DA-130 form.  The bank document must contain the bank name, routing number and account number as well as the supplier’s name.  A letter from the supplier with the bank information is not acceptable.
      • The bank document must be submitted with the DA-130 form as an additional attachment when creating the ManageEngine Service Desk ticket.
  • When a DA-130 form is received by your agency, review for completion.  Incomplete forms will not be accepted.
  • Verify that the request is from the supplier and complete the agency certification on the DA-130 form.
  • The updated job aid for the DA-130 form is located at: http://smartweb.ks.gov/training/accounts-payable#Suppliers

     

Adding the Supplier to SMART
Attach the DA-130 form and bank documentation to the supplier record in SMART. A hold will be placed on any new ACH information for a supplier that does not have the correct documentation attached.

DA-130C Cancellation of Electronic Deposit of Supplier Payment form:
The DA-130 form no longer contains a cancellation section.  A DA-130C form has been created to cancel an ACH payment method for a supplier.  The same level of due diligence achieved in applying fraud prevention processes and procedure in establishing or changing ACH payment information for suppliers using the DA-130 form shall also be applicable for cancellations using the DA-130C form.

TM-21 SMART Supplier Information Change Request form:
The TM-21 form has been modified to include supplier phone number and email to allow agencies to store confirmed contact information.  Changes to supplier information using this form should also be confirmed with the supplier.  Confirmation is recorded by completing the agency certification section. 

Printable version of 17-A-012

17-A-013 Increasing SMART ACH Participation Rate (May 18, 2017)
Informational Circular No. 17-A-013
Effective Date: May 17, 2017
Contact Name: Office of the Chief Financial Officer - (SMART)
SMART Service Desk - https://sokdahelpdesk.ks.gov
Approval: DeAnn Hill (Original Signature on File)vv
Summary: Increasing SMART ACH Participation Rate

In a continued effort to streamline work processes and to reduce the cost of state operations, the Department of Administration is encouraging agencies to review current business practices to increase ACH (Automated Clearing House) participation for SMART payments. ACH is the payment method whereby the payer initiates an electronic payment that is directly deposited into the payee’s bank account. This informational circular provides guidance for increasing agency ACH participation.

As detailed in Informational Circular 17-A-010, effective May 1, 2017 the required payment method for SMART Travel and Expense reimbursements is ACH. Although not required, best practice is for agencies to use ACH as the payment method for all SMART supplier payments. There are some types of agency payments that may not be easily or quickly converted to ACH payments; however, agencies should review their business process and develop a transition plan to utilize ACH as the payment method in the future.

Details for Implementation of Supplier ACH Initiatives:

New Suppliers

  • At the time an agency starts doing business with a new supplier, the agency is expected to request completion of both a Form DA-130 (Authorization for Electronic Deposit of Supplier Payment) and a Form W-9 (Request for Taxpayer Identification Number and Certification) from the supplier. The agency must enter the ACH information as the new supplier is being entered into SMART as well as attaching the DA-130, banking documentation, and W-9 to the supplier record. The ACH location should be checked as the default payment location. If the appropriate documents are not attached, the supplier or the supplier’s ACH location will be placed on hold.

Suppliers Receiving Payments from Multiple State Agencies

  • The Office of the Chief Financial Officer will contact the set of suppliers identified on Attachment A to request the supplier accept ACH payments from all state agencies. The list includes suppliers who received paper checks from more than nine agencies during the first quarter of 2017. No action is needed from agencies for the suppliers on this list.   
  • As ACH information is added to SMART for the suppliers listed on Attachment A, notification will be provided so agencies will know when they can begin using the ACH payment method.

Most Frequently Paid Suppliers Currently Receiving Checks:

  • Agencies should use the public query KS_AP_PAYMENT_CHK_COUNT to get a count of check payments by supplier for a given payment date range. The results should be used to identify which suppliers to target.  Moving the most frequently paid suppliers to ACH will yield the biggest cost savings. The following steps are recommended to transition these suppliers to ACH: 
    • View the supplier information in SMART to determine if ACH information exists:  Suppliers > Supplier Information > Add/Update > Supplier > Location tab, view all locations:
      1. If ‘SYSTEM CHECK’ is listed as the only location description, the supplier does not have ACH account information in SMART.  A DA-130 form should be sent to the supplier.  Once the form is completed and returned, the agency-verified DA-130 form and banking documentation should be submitted to the Supplier Team through the ManageEngine Service Desk. The Supplier Team will enter a new location in SMART and will designate it as the default payment method so the ACH payment method can be selected for future payments.
      2. If ‘ACH ****’ is listed in the location description, verify the effective status indicates an active account and the location is not on hold. The agency should use the last four digits of the ACH location description to confirm with the supplier that the ACH in SMART can be used for their agency payments. (The last four digit of the bank account number are always used as the last four digits in the ACH location description.) Once confirmed, the agency should begin using the ACH location for all SMART payments.
      3. If ‘ACH****’ is listed in the location description and the effective status indicates an inactive account, the location is on hold, the agency is unable to confirm the ACH information with the supplier, or the supplier is requesting use of different banking information, a DA-130 form should be sent to the supplier. Once the form is completed and returned, the agency-verified DA-130 form should be submitted to the Supplier Team through the ManageEngine Service Desk. 
      4. The agency may request maintenance to the supplier record to set the ACH location as the default by submitting a ManageEngine Service Desk ticket if the supplier has only one ACH location.

The Department of Administration provides a web page for suppliers receiving payments from the State of Kansas so details of their payments can be viewed. Payment information on the page is available for thirteen months following the issue date. Suppliers can access the self-service payment web page here.  A job aid titled “Vendor Self-Service Payment Look Up” can be provided to suppliers using this web site and is available on SMARTWebhttp://www.smartweb.ks.gov/, by going to Training > Accounts Payable > Suppliers.

 

Attachment
Printable version of 17-A-013

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17-A-014 Statewide Encumbrance Policy - Supplement (June 2, 2017)
Informational Circular No. 17-A-014 
   
Effective Date: June 2, 2017
   
 Contact Name:  Phone:  Email:
 Janette Martin (785) 296-2708  Janette.Martin@ks.gov
 Ginnie Schirmer (785) 296-7021  Ginnie.Schirmer@ks.gov
 Brad Elkins    (785) 296-3356   Bradley.Elkins@ks.gov 
 Stacy Cooper (785) 296-3242  Stacy.Cooper@ks.gov
 Jackie Craine (785) 296-2934  Jackie.Craine@ks.gov
     
Approval: DeAnn Hill
(Original Signature on File)
 
Summary:
State of Kansas Encumbrance Policy - Supplement
 

 

Informational Circular (IC) 17-A-004 was issued on October 11, 2016 to introduce the new statewide accounting policy for encumbering agency obligations effective January 1, 2017.  

The encumbrance policy resides in Policy Manual (PM) Filing 10,300 – Statewide Encumbrance Policy, and can be found here.

PM Filing 10,300 identifies obligations that are required to be encumbered as well as obligations that are not required to be encumbered but are optional for agency budget management.  In addition, best practices are found in the attached document.

As stated in the policy, the three methods for encumbering in the Statewide Management, Accounting & Reporting Tool (SMART) are purchase orders, travel authorizations and general ledger (GL) encumbrance journals.

Agencies are reminded that the Agency Audit Services Team of the Office of the Chief Financial Officer will begin auditing for compliance with the statewide encumbrance policy effective July 1, 2017.

IC 17-A-014 is issued to provide supplemental information on payments exempt from the encumbrance policy. 

Supplemental information to the encumbrance policy:

Additional obligations that are generally not required to be encumbered but are optional for agency budget management include:

  • Out-of-state travel where the supplier is not known until five business days prior to the travel occurring.
  • Recording of expenditures of a local fund (petty cash and imprest funds).
  • Inmate wages paid through agency imprest funds.

However, the above obligations are required to be encumbered at fiscal year-end, or if specifically required by the Office of Procurement and Contracts (OPC).

Canteen funds, work therapy funds, benefit funds, trust funds and employee use funds are examples of funds that have private funding which is not held in the state treasury, thus they are exempt from the encumbrance policy.

Please note:  The following payments remain under review pending a determination of any encumbrance requirement:

  • Payroll expenditures and remittance of payroll taxes, deductions and garnishments
  • Single Pay voucher payments

The provisions of PM Filing 10,300 should be followed in conjunction with all requisition and purchase order requirements issued through OPC. 

SMART vouchers without a purchase order will be pushed back to the agency for compliance.  To assist agencies as they work to educate staff for compliance with the encumbrance policy, the following dates will be used in reviewing AP vouchers:

  • Effective July 1, 2017, purchase orders with a budget date subsequent to the invoice date will result in an audit finding.  
  • Effective July 1, 2018, purchase orders with a budget date subsequent to the date of service or order/purchase will result in an audit finding.

Effective July 1, 2017, SMART expense reports with no existing travel authorization or GL encumbrance noted will be identified as an audit finding (unless exempt per PM 10,300). 

For guidance on fiscal year closing and determination for all obligations, please see PM Filing 14,002 – Fiscal Year Closing Including Fiscal Year Determination.

Attachment:

Best Practices – Statewide Encumbrance Policy

Printable version of 17-A-014 

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