KTOP Frequently Asked Questions

KTOP is a web-based application developed to record the interaction between the State of Kansas and the Treasury Offset Program (TOP).

TOP maintains a database that contains debts owed to the United States and debts owed to states with a reciprocal agreement with the U.S. Treasury. Those debts are matched to payments made by the U.S. Treasury. When a match is found, an offset occurs.

The State of Kansas entered into a reciprocal agreement with TOP that allows the state to send debts to TOP for inclusion in the matching and offset process. In return, state payments are offset against federal debts.

Treasury Offset Program (TOP)

Federal Level   A centralized debt collection tool for the United States federal government. Kansas Treasury Offset Program (KTOP)
State Level   A centralized debt collection tool for the State of Kansas to record interaction with TOP.

Creditor agencies that participate in KTOP will never need to interact directly with TOP as all debt and payment information is contained in KTOP.

The Setoff Program utilizes the Kansas Debt Recovery System (KDRS) to match eligible payments issued by the State of Kansas to debts owed to state agencies, district courts, municipalities, and other states that have entered into a reciprocal agreement with Kansas.

KTOP matches eligible payments issued by the U.S. Treasury to debts owed to state agencies and district courts. Currently, municipalities are not eligible to participate in KTOP.

Debtors with questions regarding their debt should contact the creditor agency to which the debt is owed. This information can be found on the notice you received.

Make check or money order payable to the Department of Administration and mail to the Kansas Treasury Offset Program, PO Box 2484, Topeka, KS 66601.  Include the agency owed and debt account number or the last four digits of your social security number or taxpayer identification number.

Yes, debtors can request copies of notices previously mailed to them by contacting KTOP at (785) 296-4500 Monday through Friday from 9:00 AM to 3:00 PM (excluding observed State holidays). Debtors will be required to verify their name and TIN, as well as provide a current mailing address.

KTOP is unable to provide copies of receipts for collections or payments that were previously mailed to debtors.

No, submitting a debt to TOP through KTOP does not impact the debtor's credit report.

In order to have enough time to send data back and forth with the federal government, a voucher must be matched, budget checked, and approved by 10:00 AM for the possibility of same day processing. If a debt is not found for that vendor in KDRS or TOP, the voucher will be released for PayCyle that same day. If a debt is found in either system, the voucher will be delayed by 2-4 business days. A voucher that becomes eligible for PayCycle after 10:00 AM will not be subject to the new offset process until the following day. Click here for a step by step process involved in the debt collection analysis process. Also, refer to the SMART info blast announcement emailed to agencies on February 19 and March 2, 2015 titled Kansas Treasury Offset Program (KTOP) Impact on SMART Processing. SMART announcements can also be located at: http://www.smartweb.ks.gov/announcements/impt-announce/general-system-news

Only miscellaneous vendor payments will be provided to TOP for matching against federal debts. Payroll, reimbursements processed through the SMART Travel & Expense module, and single payment vouchers without TINs will not be eligible for offset.

When a voucher is entered in SMART, it will begin in a “Not Processed by Collections” status.  The information can be located on the Summary tab of the payment voucher in the Setoff Status field.

At 10 a.m. daily, all payments scheduled to pay that day, aside from a small list of exceptions, are sent to KTOP for analysis to determine if there is a debt match.  At this point, the voucher Setoff Status value will either be set to “Exempt from Collections” or “In Collection Eligiblty Analys.”  This does NOT mean the payment is being offset.

By 2 p.m., any payment without a debt match is released for paycycle and will show a Setoff Status of “No Credit memo created.”  Payments that have a debt match will continue to be in a “In Collection Eligiblty Analys” status until the debt offset occurs.  When that process is complete, the voucher will then have a status of “Collections Complete.”

In addition, a SMART user can also identify if an offset was made by going to the Payments tab on the SMART voucher and looking at the Message field under the Payment Options section.  Federal debts are identified with the following verbiage in the payment Message field of the voucher:  OFFSET PER K.S.A. 75-6201 ET SEQ  QUESTIONS CALL 785-296-4500.

When a State of Kansas payment is intercepted and sent to TOP to be applied to a federal debt, the state agency that made the payment (known as the "payor agency") will receive a notice via email. To view a sample of the notice sent to payor agencies, please click here.

In addition, a notice will be sent to the debtor informing them of the offset and instructing them to give the payor agency full credit for the transaction. The notice sent to the debtor will also provide the debtor with the name and phone number of both the federal creditor agency and the state payor agency. To view a sample of the letter sent to debtors, please click here.

Payor agencies should receive a notice via email when a payment is offset. If the email is not received, the agency should contact KTOP at ktop@ks.gov or (785) 296-4500 and request an update to their accounts payable contact information.

The offset notices that are sent by KTOP are very similar to the setoff notices that are sent by KDRS. The differences between the two notices are listed below:

Offsets occur immediately after a voucher is matched to debt. Reversals are accepted or declined at TOP's discretion, so it is possible that funds may not be recoverable. Therefore, if a payor agency believes that a payment should be exempt from offset, they should contact KTOP prior to entering the voucher into SMART.

The payor agency will need to send documentation supporting the exemption to KTOP for review. If it is determined those types of payments should not be subject to offset, the payor agency will need to provide the funding distribution line(s) specific to the payments. Any voucher entered with the indicated funding distribution line(s) would then be excluded from offset.

Payment auto-release rules that existed in KDRS prior to December 1, 2014 have been loaded into KTOP. Payor agencies that have arranged additional payment exceptions with the Setoff Program on or after December 1, 2014 should notify KTOP immediately.

In an attempt to match federal non-tax payments to debts, the TOP program searches for matches utilizing a debtor's Tax Identification Number (TIN) and name.  If TOP is able to match a payment to the debtor's TIN, but not the name; it results in a 'partial match'.   In this instance, an offset will NOT occur for these debtors.  If this occurs, KTOP will provide the payor agency via email with an attachment listing the partial matches found.  In order for KTOP to ensure that an offset occurs if a future payment is made to that TIN, the agency will need to verify the mismatched payee name from the list that was sent to the agency.  The agency will need to inform KTOP if the alias list on the partial match list should be added to the debtor.

On April 7, 2015, a SMART info blast was emailed to agencies with the subject line of SMART Voucher Setoff Status Field Updated.  The email contained the definition for each SMART collection status transaction indicated on a SMART payment voucher.  The setoff status can be viewed on the voucher Summary tab and on the voucher Payment tab.  The values in SMART are as follows:

Since the reciprocal agreement is between TOP and the State of Kansas, all state agencies can submit debts to TOP through KTOP. District courts are defined as state agencies by K.S.A. 75-6202(e). Municipal courts are not included in this definition.

No, state agencies are not required to use KTOP, though it is strongly encouraged. Utilizing the program increases the opportunity for state agencies to collect on debts by giving them access to payments not available to KDRS.

Yes, samples of each of the letters sent to debtors are available on KTOP's homepage. Scroll down to the Documents and Forms heading in the left sidebar.

Creditor agencies must respond to debtor questions regarding debts. The following information may be provided to debtors if they have questions regarding the offset process.

Email: ktop@ks.gov
Phone: (785) 296-4500
Fax: Attn KTOP (785) 296-2697
Mail: PO Box 2484 Topeka, KS 66601-2484

Each agency has detailed record information in KTOP.  An agency can request modification of their agency record any time there is a change to their name, sub-department, website, general contact information, notification contact information, and/or transfer contact information, a user with permission to view the agency can request a modification.  Agencies can use the same person for all three contacts, or different people for each.  For additional instructions, reference the Creditor Agency Profile Updating in the KTOP User Manual.

No, federal income tax refunds are not currently matched against debts in KTOP. However, it is possible that federal regulations could change in the future, allowing KTOP to match debts against tax refunds.

Currently, the federal statutes governing the reciprocal program only allow TOP to match State debts against federal vendor payments. Federal payments that do not qualify for offset include income tax refunds, salaries, railroad retirement benefits, and social security benefits.

For a full list of exempt payments, please click here.

When a collection is made on a debt, the reduction will automatically be posted in KTOP. In KDRS, the reduction will appear with a Transaction Type of "KTOPRED".

KTOP will perform transfers of funds to creditor agencies each Friday. (If a state observed holiday falls on a Friday, the transfer will occur on the first business day thereafter.) Prior to the interfund being created, the creditor agency's transfer contact will receive an email with an attachment listing all the collections made that will be included in the transfer.

Alternately, at any time creditor agencies can view collections that have not yet been transferred by following the "Verify Upcoming Transfers" instructions in the KTOP User Manual.

Collection transfers are made to payor agencies every Friday. (If a State observed holiday falls on a Friday, the transfer occurs on the first business day thereafter.) On the following Monday, KTOP staff will email the creditor agency transfer contact with the SMART Interfund ID associated to the transfer.

The creditor agency transfer contact is responsible for notifying the appropriate individual within their agency to complete and approve the accounts receivable portion of the interfund. If this is not done within a week, the creditor agency transfer contact will receive an "Outstanding Unconfirmed Transfer Notification" email daily until the interfund is completed.

“Debt” means: (1) Any liquidated sum due and owing to the State of Kansas, or any state agency, municipality, or foreign state agency which has accrued through contract, subrogation, tort, operation of law, or any other legal theory regardless of whether there is an outstanding judgment for that sum.  A debt shall not include special assessments except when the owner of the property assessed petitioned for the improvement and any successor in interest of such owner of property; or child support (see K.S.A. 75‐6202(b)(2)).  Click here for Examples of debts

For a debt to be eligible for submission to TOP through KTOP, the debt balance must be $25 or more and a due diligence letter must have been sent to the debtor (see next topic regarding due diligence letter). Also, a debt can only legally be sent to TOP for up to 10 years after the date on which it became delinquent.

In order for a debt to be legally enforceable past the standard 10 year period, an order must be in place allowing collection beyond 10 years delinquent. KTOP will automatically stop sending a debt to TOP once it has hit the 10 years delinquent mark, unless the debt has been flagged as being legally enforceable beyond that point.

Yes, debts for non-Kansas residents can be sent to TOP through KTOP. A debtor's current address has no bearing on whether or not their debt is eligible for the program.

A due diligence letter is a notice sent to a debtor informing them of the creditor agency's intention to refer their debt to TOP for offset against federal payments. The letter contains specific language informing the debtor of their options and rights. Debts cannot be sent to TOP until 60 days after due diligence has been performed (which is the date of the letter, and also the date the letter was mailed).

Performing due diligence is a federal requirement for submitting a debt to TOP. In order to ensure this requirement is met, KTOP is currently offering to provide this service on behalf of creditor agencies at no cost to them. However, creditor agencies are encouraged to begin including due diligence language as part of their three initial collection attempts. This can usually be accomplished by modifying a collection letter that is currently in use by the creditor agency.

To view a sample due diligence letter, please click here.

There is no deadline for loading debts into KTOP. Creditor agencies can send debts already existing in KDRS to KTOP at their discretion and add new debts as they occur. However, KTOP will not submit a debt to TOP until 60 days after due diligence has been performed.

No, creditor agencies do not have to double-enter their debts.

KDRS has been programmed with the ability to pass debts through to KTOP. The debts are then synced between the two systems so that any changes made in one (i.e. collections or increases) are reflected in the other. Creditor agencies should continue to submit debts and post adjustments through KDRS.

Yes, creditor agencies will be required to enter additional information for a debt in order to submit it to TOP through KTOP.

In order for a debt to be submitted to TOP, the debtor's TIN, the delinquency and due diligence dates, and the debtor's debt address must be entered into the debt record in KDRS. It is very important that the debtor's name and TIN are entered correctly as that is what TOP uses to match debts against payments. If either contain a typo, a match (and subsequent offset) will not occur.

Yes, eligible debts that exist in KDRS can be added to KTOP for submission to TOP at any time by following these instructions.

Yes, KTOP is capable of doing a mass transfer of a creditor agency's eligible debts from KDRS. Creditor agencies interested in this service must complete the Delinquency Date Agreement form and email it to ktop@ks.gov or fax it to "Attn KTOP" at (785) 296-2697. KTOP will send a confirmation email once the transfer is complete.

To view a list of debts that are being synced with KTOP, creditor agencies can download a master listing of their debts from KDRS. Master listings now contain a column that indicates whether or not a debt has been sent to KTOP.

If the result list is being viewed in KDRS, the T column will have a "T" in the field if the debt is syncing with KTOP. Results can be sorted by clicking on the column header.

If the result list is downloaded to a spreadsheet, column Z (TO TOP?) will have a "YES" in the field if the debt is syncing with KTOP.

For debts that have been sent to KTOP, detailed TOP information is located on the debt record in KDRS under the General Information section.

Yes, creditor agencies can enter into a payment agreement with a debtor at any time. However, the debt will still be eligible for offset unless the creditor agency inactivates the debt. To do so:

1. Login to KDRS and navigate to the debt.
2. Under Available Options on the right side of the DEBT RECORD DETAILS screen, click on "Request modification of debt information".
3. Change Debt Active in TOP? to "No".
4. Click "Request Mod".

The debt will still sync between KDRS and KTOP, but it will no longer be sent to TOP for collection against federal payments. If at any point the debtor defaults on their payment plan, the creditor agency can resume sending the debt to TOP by following the same steps listed above and selecting "Yes" for step 3.

No, write-offs are not eligible for submission to TOP.

The debtor record is the history of the individual or business.  A debt record is specific to one debt.  For additional information, please reference Debtor vs Debt Records in the KTOP User Manual.

KTOP currently has a purge process built into the database which completely deletes debts and their corresponding debtors if no other debts for the debtor exist.  Purging happens for debtors and debts where the current balance of the debt has fallen to zero and there has been no system activity of any kind in the last month and there has been no KTOP business activity against the debt ever.

Child support debts have priority and will be paid first, followed by non-tax federal debts.  Succeeding that are state debts, which are determined by the date of delinquency on the debts.  The oldest debt, regardless of the date uploaded, will be paid next, and so forth.

Yes, a master listing of debts can be generated from KTOP.  To create a master listing of debts, reference the Master Listing of Debts in the KTOP User Manual for detailed instructions.

No, KTOP does not charge a fee to creditor agencies. However, TOP does charge a $15 collection fee for each payment it intercepts and sends to KTOP.

Example 1: The debt balance is $100. TOP intercepts a payment of $100. TOP keeps $15 sends $85 to KTOP, which KTOP forwards on to the creditor agency.
Example 2: The debt balance is $100. TOP intercepts two payments of $50 each. TOP keeps $15 for each payment ($30 total) and sends $70 to KTOP, which KTOP forwards on to the creditor agency.

Any fees charged to creditor agencies by the Setoff Program when a collection is made in KDRS will not be changed by the agency's participation in KTOP.

Yes. Per K.S.A. 75-6204, as amended, the Kansas Treasury Offset Program is authorized by law (HB 2111) to pass on TOP collection fees to the debtor.

Example 1 above: The debtor would receive credit for only $85 to be applied to their $100 debt. The $15 collection fee is passed onto the debtor; leaving the debtor with a remaining $15 debt balance.
Example 2 above: The debtor would receive credit for only $70 to be applied to their $100 debt. The $30 collection fee ($15 per payment interception) is passed onto the debtor; leaving the debtor with a remaining $30 debt balance.

KTOP has dual-layer security which requires the entry of two sets of operator IDs and passwords for entry. The first set is used by the entire community of system users while the second set defines an individual user's permissions in the system. Please be sure you are entering the correct user/password combination in the correct screen.

If you continue to have issues, please contact KTOP at ktop@ks.gov or (785) 296-4500.

Some users accessing the system via Internet Explorer experience poor system response time. Completing the following steps may speed system usage.

Please note that users should consult with their agency's computer staff before changing any browser settings, as changes could adversely affect computer security.

In Internet Explorer:

1. Click on Tools or the gear in the top right corner.
2. Click on Internet Options.
3. Click on the Advanced tab.
4. Scroll down to "Security".
5. Remove the check mark from "Enable Integrated Windows Authentication".
6. Click Apply.
7. Click OK.
8. Close all open browsers.
9. Open a new browser.

Users that are unable to open the latest version of a document from KTOP's website may need to clear their internet browser's cache in order to refresh the download. Click on the appropriate browser below for instructions:

Google Chrome

Internet Explorer 7 or 8

Internet Explorer 9

Mozilla Firefox