FY 2026

INFORMATIONAL CIRCULAR NO.: 26-A-001         

DATE:                       June 30, 2025

SUBJECT:                 Policy Manual 11,967 and 13,001 Updates

EFFECTIVE DATE:   July 1, 2025

CONTACT:                Statewide Internal Controls and Compliance OARControls_Compliance@ks.gov

APPROVAL:              Nancy Ruoff (original signature on file)

SUMMARY:                PM 11,967 Personal Injury or Property Damage or Loss Claims

                                   PM 13,001 Capital Asset Records

This Informational Circular is to announce that the following Policy Manuals (PM) have been updated regarding inmate claim limits and capital asset thresholds.

• PM 11,967 Personal Injury or Property Damage or Loss Claims

Summary of updates – Inmate Claim payments for personal injury or personal property damage or loss claims cannot not exceed $750 (prior amount $500)

• PM 13,001 Capital Asset Records

Summary of updates – Increase statewide asset capitalization thresholds for assets

*NOTE: No changes to current capitalized thresholds are to occur, the new threshold is only for new purchases of assets.

                                    Capitalization Thresholds after July 1, 2025 (New)

The updated PMs can be obtained at the Department of Administration (DofA) website at: Policy Manual | Kansas Department of Administration

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INFORMATIONAL CIRCULAR NO.:      26-A-002                Supersedes: 25-A-008
DATE:                         July 1, 2025
SUBJECT:                    FY 2026 Private Vehicle Mileage Rates
EFFECTIVE DATE:    July 1, 2025
CONTACT: Statewide Agency Audit Services Team  ARPreaudit@ks.gov
APPROVAL:               Nancy Ruoff (original signature on file)
SUMMARY:                 FY 2026 Private Reimbursement Mileage Rates

The Internal Revenue Service (IRS) has announced the standard mileage rates effective January 1, 2025. The IRS rate for privately owned automobiles increases to 70 cents per mile, the motorcycle rate increases to 68 cents per mile, the moving reimbursement rate remains 21 cents per mile, and the airplane reimbursement rate decrease to $1.75 per air 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 published the rates for mileage reimbursement for FY 2026, effective July 1, 2025:

• $0.70 per mile for privately owned automobile
• $0.68 per mile for privately owned motorcycle
• $1.75 per mile for privately owned airplane (based on air miles rather than highway miles)
• $0.21 per mile for moving mileage rate

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INFORMATIONAL CIRCULAR NO.:      26-A-003                Supersedes: 25-A-005

DATE:                    July 1, 2025

SUBJECT:              FY 2026 Subsistence Allowances

EFFECTIVE DATE: July 1, 2025

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

APPROVAL:           Nancy Ruoff (original signature on file)

SUMMARY:            FY 2026 Meals and Incidental Expense (M&IE) and Lodging       Rates for travel occurring on and after July 1, 2025

As authorized by K.S.A. 75-3207a, the Secretary of Administration has fixed subsistence rates for FY 2025. The GSA standard lodging rate remains $110.00. The standard M&IE rate remains $68.00.

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 July 1, 2025 and thereafter:

The Employee Travel Expense Reimbursement Handbook is updated to include this information regarding subsistence for travel occurring on and after July 1, 2025.

SMART maintains the official subsistence rates for CONUS and OCONUS travel locations and will be updated as needed quarterly January 1, April 1, July 1 and October 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 quarterly update will be maintained in SMART.

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INFORMATIONAL CIRCULAR NO.: 26-A-004                         

DATE:                       July 31, 2025

SUBJECT:                 ACFR and Workiva Implementation

EFFECTIVE DATE:   July 31, 2025

CONTACT:                Financial Integrity Team  OAR-FIT@ks.gov

APPROVAL:              Nancy Ruoff (original signature on file)

SUMMARY:                Workiva Implementation

The Department of Administration, Office of Accounts and Reports (OAR) and the Financial Integrity Team (FIT) are excited to announce work to implement the Workiva solution for consolidation a of the State of Kansas Annual Comprehensive Financial Report (ACFR) has begun.

Agencies will likely see minimal impact this year as the ACFR is completed but will likely see changes in the upcoming years.

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INFORMATIONAL CIRCULAR NO.: 26-A-005         

DATE:                       August 20, 2025

SUBJECT:                 Policy Manual 6,002, 7,002, 10,054 and Updated Accounting Forms

EFFECTIVE DATE:   August 20, 2025

CONTACT:                Statewide Internal Controls and Compliance OARControls_Compliance@ks.gov

APPROVAL:              Nancy Ruoff (original signature on file)

SUMMARY:                Policy Manual Updates, Accounting Form updates and Policy Discontinue

 

This Informational Circular is to announce that the following Policy Manuals (PM) and account forms have been updated and discontinued.
          Updated Policy Manuals

• PM 6,002 – New Account Code: 462750 Work Release Reimbursement

• PM 7,002 – Capitalization Thresholds

                        Increase statewide asset capitalization thresholds for assets

*NOTE: No changes to current capitalized thresholds are to occur, the new threshold is only for new purchases of assets.

                                    Capitalization Thresholds after July 1, 2025 (New)

            Updated Accounting Forms

• New DA-6 Lost Check Statement Form and DA-7 ACH Payment Cancellation Request Form

Existing DA-6, 6A, 6B, 6C / DA-7ACH, 7CH, 7TE will be replaced with the 2 new cancellation forms  

Discontinued Policy Manual

• PM 10,754 – Prepaid Turnpike Accounts

Kansas Turnpike Authority has transitioned Kansas tolls into DriveKS Cashless Toll Payment System and no longer required prepayment of tolls for use of toll roads.

The updated PMs can be obtained at the Department of Administration (DofA) website at:

Policy Manual | Kansas Department of Administration

Accounting forms can be obtained at the DofA Website at:

Document Center | Kansas Department of Administration

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INFORMATIONAL CIRCULAR NO. 26-A-006

DATE: September 12, 2025  

SUBJECT: Federal Payment Method Changes Impacting State of Kansas Agencies

EFFECTIVE DATE:  Immediately

CONTACT: Sunni Zentner (785) 296-7058  sunni.zentner@ks.gov  

APPROVAL: Nancy Ruoff (original signature on file)

SUMMARY: Federal Payment Methods

On March 25, 2025, the Federal Executive Order 14247 was signed into law phasing out the disbursement of paper checks and acceptance of receipts by paper check effective September 30, 2025. State agencies who receive payments from or make payments to federal agencies should plan for a transition to electronic payments if the currently used pay method is paper check. 

ACH Payments to Federal Agencies

If the state needs to pay a federal agency electronically, the standard procedure for adding ACH information to a supplier in SMART should be followed. Some federal agencies may refuse to complete a DA-130 form and may provide their banking information via letter or email. Agencies should review existing supplier information in SMART to determine whether the ACH information already exists in the federal agency’s supplier record. If the ACH information needs to be added, please create a Kansas Service Desk ticket to request an exception to the DA-130 process.

Alternatively, some federal agencies may request that payment be processed as an ACH debit where the federal agency initiates the transaction and attempts to debit the state’s bank account. The federal agency may ask that the state agency log into a system hosted by the federal agency to enter banking information and provide permission to create the transaction. The state agency will need to contact the State Treasurer’s Office via email at fiscal@treasurer.ks.gov to request directions on how to process this type of transaction. Please note that ACH debit transactions will only be permitted for federal agencies.

ACH Receipts from Federal Agencies

If a federal agency requests the State of Kansas ACH information to issue an electronic payment to a state agency, please contact the State Treasurer’s Office to request the appropriate documentation. This can be requested via email at fiscal@treasurer.ks.gov.

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INFORMATIONAL CIRCULAR NO.: 26-A-007         

DATE:                       October 13^th, 2025

SUBJECT:                 Federal Reporting Guidebook

EFFECTIVE DATE:   October 13^th, 2025

CONTACT:                OAR Federal Reporting federal.reporting@ks.gov

APPROVAL:              Nancy Ruoff (original signature on file)

SUMMARY:                New Federal Reporting Guidebook to replace old circulars related to federal grant reporting

This Informational Circular is to announce that effective October 13^th, 2025, the Federal Reporting Guidebook replaces previously issued OAR Informational Circulars related to federal grant accounting and reporting (this includes circulars 01-A-010, 01-A-013, 01-A-015, 03-A-007, 04-A-006, 04-A-007, and 18-A-009).

The Federal Reporting Guidebook summarizes best practices, roles, and responsibilities relating to the Uniform Guidance, state policy and procedures, and OAR Federal Reporting team guidelines for state agencies. The guidebook was developed to ensure compliance with current regulations and policies at the federal and state level and includes information/guidance on the following:

• Contact Information & Communication-Lists the contact information for the Federal Reporting team and describes the communication methods used to disseminate information to the state agencies.

• Uniform Guidance-Highlights important sections and contains links to resources and job aids related to the Uniform Guidance (which lists the rules and regulations for federal grant funds).
• Single Audit & the Schedule of Expenditures of Federal Awards (SEFA)-Contains instructions for agencies on completing the SEFA and procedures for the agencies involved in the Single Audit.
• Fund & Account Code Guidance-Includes guidance on federal fund numbers, federal transactions and account codes, transaction coding, and treatment of federal funds.
• Cash Management Improvement Act (CMIA)-Guidance for the Treasury State Agreement (TSA) and annual report.
• U.S. Census Reporting-Describes the quarterly and annual tax surveys the Federal Reporting team completes for the U.S. Census Bureau.
• Important Definitions & Acronyms-Includes definitions and acronyms used throughout the guidebook.  
• Attachments-Includes specific guidelines and examples for federal fund transactions and information on federal fund classification and resources.

The updated guidebook can be obtained at the Department of Administration (DofA) website at: Federal Reporting Guidebook

Please contact the Federal Reporting team at federal.reporting@ks.gov with any questions.

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The IRS has redesigned the 1099 Forms for reporting of calendar year 2025 payments:

• 1099-MISC has been revised and rearranged for certain types of income. For SMART purposes the following Class and Type changes have been made:
  • 1099-MISC-14 is now 1099-NEC-03 – Large executive severance payments
  • 1099-MISC Box 14 has been removed and should not be used for any purpose.
  • 1099-NEC Box 3 has been created for large executive severance payments (also known as “Golden Parachutes”) For SMART purposes the Class and Type is now 1099N-03.
• All other 1099 Forms (S, D, G, and I) had no significant revisions

New for Calendar Year 2025 Reporting:

• The IRS has made changes to the 1099-MISC and 1099-NEC forms for Calendar Year 2025. The Office of Accounts and Reports (OAR) is configuring and implementing these changes in SMART. The values used when selecting withholding types when entering vouchers and suppliers have changed. OAR will communicate additional information regarding changes in future SMART InfoBlasts. These changes impact both voucher entry in SMART and non-SMART Payments.

• The new values for 1099M and 1099N are 2025M and 2025N. Once OAR completes the required SMART changes, agencies will see the 1099 Types shown below in the ‘CY2025’ column on the Supplier Records and Vouchers. Until these changes are announced in the SMART InfoBlast, agencies should continue to enter supplier withholding information using values shown below in the ‘CY2024 and Prior’ column. Those values will be converted to the new withholding type by OAR.

Updating voucher withholding:

• This process has not changed. Please review Classes and Types available for the Supplier. If the Class and Type needed is not available for use on the specific location, a TM-21 will need to be completed and submitted to the Supplier Team via a Kansas Service Desk ticket.
• Once the voucher has been entered, click on the Withholding link and choose the Class and Type that corresponds to the specific payment.
• Please review the updated Job Aids below.

Additional Resources:

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

Job aid for entering new suppliers:

Creating New SMART Supplier Record

Job aid for checking existing suppliers:

Check for Existing Supplier Record

IRS Guide to each Type of 1099, including instructions:

IRS Online Instructions for Forms

The State of Kansas, like all entities, is required to file all 1099s and mail them no later than January 31, 2026. Kansas is charged a fee for each incorrect or omitted 1099 (regardless of the reason).

Agencies are responsible for ensuring the data provided to OAR is accurate and complete. Late filing penalties or penalties for incorrect filings will be passed on to the Agency submitting the information, and each Agency is responsible for providing the corrected information.

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Attachment

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

Any payment occurring outside of the SMART system that is IRS reportable must be sent to the Office of Accounts and Reports (OAR) for the annual 1099 filing. These transactions include:

• Locally administered interest payments of $10.00 or more that are reported on Form 1099-INT.
  • Interest paid from trust funds to clients of institutions with either the Kansas Department for Aging and Disability Services or the Kansas Department of Corrections
• Non-employee awards not paid directly out of SMART regardless of the amount

How to report:

• To report non-SMART payments for form 1099, the agency must confirm the supplier is in the SMART supplier table with the appropriate 1099 type, 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, class, and turn withholding on. The supplier must also be in approved status.
• Complete the Excel template “PS_WTHD_TRAN_TBL_update_template” (link included at the bottom of this circular) for all non-SMART 1099 reportable payments.
• Deadline to submit the completed template: January 9, 2026

The State of Kansas, like all entities, is required to file all 1099s and mail them no later than January 31, 2026. Kansas is charged a fee for each incorrect or omitted 1099 (regardless of the reason).

Agencies are responsible for ensuring the data provided to OAR is accurate and complete. Late filing penalties or penalties for incorrect filings will be passed on to the Agency submitting the information, and each Agency is responsible for providing the corrected information.

PS_WTHD_TRAN_TBL Update Template Instructions:

• Do not insert or delete columns or rows
• Do not change the formatting
• The fields in Yellow are required to be completed by the agency
• Begin with Line 2 (replace the sample data):
  1. Complete 1 line for each payment
  2. Add lines as needed for additional withholding types/classes
  3. Gray columns are default values and should not be changed
  4. If 499 lines are not sufficient, copy line 500 down
  5. When complete, attach the spreadsheet to a Kansas Service Desk ticket with the Subject line ‘Non-SMART 1099’

Note: In Excel, if there are leading zeros in a text field (e.g. Business Unit or Supplier ID), precede the value with an apostrophe to retain the zeros (‘04600 and ‘000123456)

Excel withholding template:

PS_WTHD_TRAN_TBL_update_template

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

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Attachment

INFORMATIONAL CIRCULAR NO.:      26-A-010                Supersedes: 26-A-002

DATE:                    December 30, 2025

SUBJECT:              FY 2026 Private Vehicle Mileage Rates

EFFECTIVE DATE: January 1, 2026

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

APPROVAL:           Nancy Ruoff (original signature on file)

SUMMARY:            FY 2026 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 described in paragraph (2) as specifically directed in appropriation acts of the legislature.

The IRS established the federal standard mileage rate effective January 1, 2025, at 70 cents per mile, which was used in preparing the FY 2026 budget indices in the spring of 2025.

Most recently (December 29, 2025) the IRS announced the standard mileage rate increases to 72.5 cents per mile for 2026, however, in order to comply with K.S.A. 75-3203a (c) the state rates are limited to the cost indices represented in the governor’s budget for FY 2026.

Effective January 1, 2026, the state rates are established as

• $0.70 per mile for privately owned automobile
• $0.68 per mile for privately owned motorcycle
• $1.75 per mile for privately owned airplane (based on air miles rather than highway miles)
• $0.205 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 under K.S.A. 75-3203a.

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