FY 2023

INFORMATIONAL CIRCULAR NO.:      23-A-001                Supersedes: 22-A-001

DATE:                          June 27, 2022

SUBJECT:                   FY 2023 Private Vehicle Mileage Rates

EFFECTIVE DATE:    July 1, 2022

APPROVAL:               Nancy Ruoff (original signature on file)

SUMMARY:                 FY 2023 Private Reimbursement Mileage Rates

In establishing private reimbursement mileage rates the state is bound by the statutory limits within K.S.A. 75-3203a (c) which states that the rates may be revised as conditions require, but shall not exceed the lowest of the following:

1. the rate allowed by the Internal Revenue Service (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.

The IRS established the federal standard mileage rate effective January 1, 2022 at 58.5 cents per mile, which was used in revising the FY 23 Budget Indices this spring. 

Most recently (June 9, 2022) the IRS announced another standard mileage rate increase for the 2^nd half of calendar year 2022, however, in order to comply with K.S.A. 75-3203a(c) the state rates are limited to the cost indices representing the revised governor’s budget for FY 2023. 

Effective July 1, 2022 the state rates are established as

• 58.5¢ per mile for privately owned automobile
• 56.5¢ per mile for privately owned motorcycle
• $1.515 per mile for privately owned airplane (based on air miles rather than highway miles)
• 18¢ per mile for moving mileage rate

The Department of Administration and the Division of Budget will be monitoring inflation, fuel prices, and IRS announcements in order to consider if any further adjustments may be available during FY 2023 under K.S.A 75-3203a.

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INFORMATIONAL CIRCULAR NO.:      23-A-002                 Supersedes: 22-A-004

DATE:                      July 1, 2022

SUBJECT:               FY 2023 Subsistence Allowances

EFFECTIVE DATE: July 1, 2022

CONTACT:              Statewide Agency Audit Services Team ARpreaudit@ks.gov

APPROVAL:           Nancy Ruoff (original signature on file)

SUMMARY:             FY 2023 Meals and Incidental Expense (M&IE) and Lodging Rates for travel occurring on and after July 1, 2022

As authorized by K.S.A. 75-3207a, the Secretary of Administration has fixed subsistence rates for FY 2023.  In 2015, a statewide policy change was made for state employee travel reimbursement.  At that time, the State of Kansas adopted the U.S. General Services Administration (GSA) rates used for federal employees.  While GSA rates are updated periodically, statewide policy utilizes only the current GSA rates updated semi-annually.

The GSA per diem rate for an area is divided into two components: the lodging allowance and the meals & incidental expense (M&IE) allowance. These per diem rates are based on travel location and travel dates (seasonal rates may be listed for some locations).  If a specific travel location is not 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 daily subsistence rates apply for travel which occurs on April 1, 2022 and thereafter:

These CONUS rates remain in effect for State of Kansas employee travel reimbursement as of July 1, 2022, as reflected within the Employee Travel Expense Reimbursement Handbook.

SMART maintains 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.

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 daily M&IE reduction percentages are as follows:

 
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:

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 daily M&IE rates, meal reductions and lodging rates. Historical locations and rates from each semi-annual update will be maintained in SMART.

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INFORMATIONAL CIRCULAR NO.:       23-A-003                    Supersedes: NA

DATE:                       July 1, 2022

EFFECTIVE DATE:  July 1, 2022

CONTACT:               Statewide Agency Audit Services (Audit Services) Team ARPreaudit@ks.gov

APPROVAL:            Nancy Ruoff (original signature on file)

SUMMARY:              Revised Policy Manual Filings 5,002, 6,002, & 7,002

This Informational Circular announces that the following Policy Manual (PM) filings have recently been reviewed and revised, with all changes effective July 1, 2022.  In addition to the updates detailed below, account code descriptions have been revised for clarity and account codes previously implemented by informational circular are now included in the appropriate PM listing.  Agencies are encouraged to closely review and reference the revised PMs to ensure consistency and accuracy in the account codes used for transactions.    

PM 5,002 Uniform General Ledger Transfer Classification Account Codes

• Addition of a SMART Transfer Account Code Pairings and Usages chart with general guidance (notes) for each pairing type

PM 6,002 Uniform General Ledger Revenue Classification Account Codes

• In order to properly record revenues in compliance with GASB Statement 87 – Leases, additional revenue account codes have been established:
  • 431800 – Capital Lease Revenue (Charges for Services)
  • 461150 – Capital Lease Gain or Loss (Other Revenues)

PM 7,002 Uniform General Ledger Expenditure Classification Account Codes

• The descriptions of various IT-related Account Codes have been updated to remove obsolete and outdated equipment terminology
• An additional “resale” account code account code has been added for internal contractual services.  SMART now includes resale account codes for contractual services, commodities, and capital outlay
  • 529980 – Other Contractual Services: Includes contractual services purchased for distribution or resale within the agency or to other state agencies.

The revised Policy Manuals can be obtained at the Department of Administration (DofA) website at: https://admin.ks.gov/offices/accounts-reports/state-agencies/finance/policy-manual.

Requests for assistance in determining appropriate account code usage should be emailed to: ARPreaudit@ks.gov.

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INFORMATIONAL CIRCULAR NO.:      23-A-004                Supersedes: 22-A-002

DATE:                      October 3, 2022

SUBJECT:               FY 2023 Subsistence Allowances

EFFECTIVE DATE: July 1, 2022

CONTACT:              Statewide Agency Audit Services Team ARpreaudit@ks.gov

APPROVAL:           Nancy Ruoff (original signature on file)

SUMMARY:             FY 2023 Meals and Incidental Expense (M&IE) and Lodging Rates for travel occurring on and after October1, 2022

As authorized by K.S.A. 75-3207a, the Secretary of Administration has fixed subsistence rates for FY 2023. The U.S. General Services (GSA) has announced the CONUS standard rate for lodging and M&IE effective October 1, 2022.  The GSA standard lodging rate increases from $96.00 to $98.00. The standard M&IE rate remains $59.00.

For State of Kansas travel, federal per diem rates are followed to determine subsistence allowances. The CONUS per diem rate for an area is divided into two components: the lodging allowance and the meals & incidental expense (M&IE) allowance. These per diem rates are based on travel location and travel dates (seasonal rates may be listed for some locations).  If a specific travel location is not 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 daily subsistence rates apply for travel which occurs on October 1, 2022 and thereafter:

The Employee Travel Expense Reimbursement Handbook is updated to include this information regarding subsistence for travel occurring on and after October 1, 2022.

SMART maintains 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.

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 daily M&IE reduction percentages are as follows:

 
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:

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 daily M&IE rates, meal reductions and lodging rates. Historical locations and rates from each semi-annual update will be maintained in SMART.

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INFORMATIONAL CIRCULAR NO.:     23-A-005                                                  Supersedes: NA

DATE:                                 November 14, 2022

EFFECTIVE DATE:            November 14, 2022

APPROVAL:                       Nancy Ruoff (original signature on file)

SUMMARY:                        Employee Travel Expense Reimbursement

                                            Handbook – Revised Section 4301

This Informational Circular announces that the following Employee Travel Expense Reimbursement Handbook section 4301 - Reduced Meals and Incidental Expenses (M&IE) Reimbursement for Meals Provided at No Cost to the Employee, has recently been reviewed and revised to define the term ‘hot complimentary breakfast’ and provide information regarding certain exceptions under the Americans with Disabilities Act.  All changes are effective November 14, 2022. 

These changes are found by navigating to section 4301 within the revised Employee Travel Expense Reimbursement Handbook accessed at the Department of Administration website at:

Employee Travel Expense Reimbursement Handbook

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

  1. The supplier/client must be in approved status 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 Accounts and Reports 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 Accounts and Reports 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:

4. 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.

5. 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. The supplier must also be in approved status.

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 Accounts and Reports by January 15, 2023 to ensure the 1099s are distributed by the January 31, 2023 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: In Excel, if you have leading zeros in a text field like Business Unit or Supplier ID, precede the value with an apostrophe (‘04600 and ‘000123456)

BUSINESS_UNIT: 5 digits with leading zeros, as assigned by SMART (agency number)

WTHD_ENTITY: IRS

WTHD_TYPE: as listed in the supplier table (1099M, 1099N, 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 1099 withholding type and class entered in column C and E, 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 2022.

DESCR100: 100 characters of your choice – alpha and numerical characters only (no punctuation, no special characters)

Additional Resources:

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

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

Excel withholding template:

2022 1099 Excel Withholding Template

INFORMATIONAL CIRCULAR NO. 23-A-007 
DATE:                         January 5, 2023
SUBJECT:                  Confirming FY 2023 Private Vehicle Mileage Rates
EFFECTIVE DATE:    January 1, 2023
CONTACT:                 Statewide Agency Audit Services Team   ARPreaudit@ks.gov  
APPROVAL:              Nancy Ruoff (original signature on file)
SUMMARY:                FY 2023 Private Reimbursement Mileage Rates

On December 29, 2022, the Internal Revenue Service (IRS) released increased standard mileage rates effective January 1, 2023.

However, 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, the Department of Administration confirms the mileage reimbursement rates established in Informational Circular 23-A-001, effective July 1, 2022, remain in effect:

• 58.5¢ per mile for privately owned automobile
• 56.5¢ per mile for privately owned motorcycle
• $1.515 per mile for privately owned airplane (based on air miles rather than highway miles)
• 18¢ per mile for moving mileage rate

The Department of Administration and the Division of Budget will be monitoring inflation, fuel prices, and IRS announcements as revised rates are proposed for FY 2024 under K.S.A 75-3203a.