The Setoff Program will once again in the Fall of 2018 provide a series of workshops across the state. The workshops are designed to provide users with a basic understanding of how the Setoff Program operates along with demonstration of the Setoff Program's web-based system KDRS (Kansas Debt Recovery System).
Due to limited seating at several locations, early registration is strongly encouraged.
Please access the link below for a listing of dates, times, and locations; along with additional registration information:
Debtors with questions regarding the setoff process may call our Customer Call Center at:
Monday through Friday, 9:00 AM to 3:00 PM
(excluding observed State holidays)
The Setoff Program uses only first names when conversing with debtors over the phone. If there is a need for a debtor to call the Setoff Program, they should use the phone number listed above.
If there is a need for a debtor to write the Setoff Program, they should use the address listed below:
PO Box 2713
Topeka, KS 66601-2713
Creditor Agency Contact
For State Agencies, District Courts, and Municipalities Only
If you would like more information about the Setoff Program and how it can work for you, please contact:
Regular office hours are Monday through Friday, 8:00 AM to 4:00 PM, excluding observed State holidays.
The Setoff Program is governed by K.S.A. 75-6201 et seq. and began in early 1981 following legislation that allowed the Department of Administration to set off monies the State of Kansas owes vendors and individuals against debts those entities owe to the State of Kansas. In 1993, this benefit also became available to municipalities and in 1996 for the district courts. Participation in the Setoff Program is voluntary. State agencies and district courts can immediately begin submitting debts while municipalities must enter into a written agreement with the Setoff Program (see Municipal Agreement below). Agencies submitting debts to Setoff are referred to as the Creditor Agencies.
Debts submitted to the Setoff Program must include debtor name, social security number or employer identification number, amount owed, and a description of the debt (see DA-56 and instructions below). Debt amount must be $25 or more and the creditor agency must make at least three attempts to collect the debt prior to submitting to Setoff. The master file of delinquent accounts called the "debtor file" is then matched by computer with state payments in process and the payments are set off against the debts. State payment files that are matched to debtor information are:
- state payroll began May 1981 (Kansas Department of Administration),
- individual income tax refunds began July 1981 (Kansas Department of Revenue),
- miscellaneous state payments began December 1982 (Kansas Department of Administration),
- Homestead tax refunds began January 1983 (Kansas Department of Revenue),
- unclaimed property began August 1987 (Kansas State Treasurer), and
- Kansas public employee retirement began July 1990 (KPERS).
State agencies issuing the payments are referred to as the payor agency. Lottery payments are issued through miscellaneous state payments.
When payment information is matched to debtor information, Setoff Program notifies the debtor via mail utilizing the address provided by the payor agency. This notification letter is referred to as the Notice of Intent (NOI) letter. The creditor agency is notified via email and has access to their accounts and can post adjustments to the debt record at their convenience. When Setoff Program notifies the creditor agency of a match, the creditor agency should immediately review both the creditor agency's system and the Setoff Program debt record. The creditor agency should immediately post any necessary adjustment to Setoff Programs' record.
Eventually, monies from the payment being setoff will be transferred from the payor agency to the Setoff Program. This time varies due to the various processes involved with each of the various paying agencies. Due to statutory requirements, the monies from the payment cannot effect final setoff until 15 days from the date of the NOI.
Transfers and Fees
After final setoff can be effected, monies can be remitted to the creditor agency. Monies are transferred the 1st and the 16th of each month or the first business day after such date. A receipt is mailed to the debtor and the creditor agency receives an email with the list of transfers. Setoff Program keeps a percentage of the amount collected and transfers the net amount to the creditor agency. State agencies receive 83% of the gross amount collected and municipalities receive 81% or 76% if the debt required Setoff Program to research debtor information. State agencies receive the monies in the form of an interfund voucher and municipalities receive an ACH deposit. Upon receipt of the net amount from Setoff Program, the municipality should credit their debtor's record account balance for the full gross amount that was setoff for that debt. State agencies should post the net amount after fees have been withheld per K.S.A. 75-6204, as amended.
- Contact the Setoff program and provide the following:
- Agency Name
- Agency Address
- Contact Name
- Phone Number
- Email Address
Each creditor agency must have at least one user that will have access to the web based Kansas Debt Recovery System (KDRS). Provide the contact name, phone number, and email address of each individual that should be established as a KDRS user for the agency.
- For municipalities, a completed municipal agreement can be faxed, mailed, or emailed. Be sure to include municipalities federal employer identification number. Later, Setoff may also request a W-9, banking information, and other information.
- Setoff will setup the agency within KDRS and assign an agency number.
- The designated user(s) will be contacted and emailed instructions on how to access the system. Each user will be able to:
- access the KDRS User Manuals in pdf format
- access their creditor agency's debtor records
- certify debts
- post adjustments to existing debt records
- perform various searches
Agencies can request some users to have view only capabilities.
- Start submitting debts via manual entry in KDRS or utilizing the DA-56.
The creditor agency is responsible for maintaining their agency's debt records within KDRS and for answering debtor questions concerning the debt. The Setoff Program does not have any detail information on the debt. All calls concerning the debt will be referred to the creditor agency.
A debt remains in the Setoff Program for as long as the referring creditor agency decides to leave the debt with Setoff.
Setoff statutes do not address any statute of limitations. The creditor agency must consult with their own counsel regarding their debts and if any statute of limitations might apply.
To assure due process, setoff statutes require that the debtor be given the opportunity to appeal the validity of the debt. The debtor initially has the right to appeal the debt amount within 15 days from the date of the notice of intent letter. If an appeal is received within 15 days, further setoff procedures are delayed until the dispute is resolved. If the Setoff Program receives an appeal request from the debtor, the Setoff Program will acknowledge the debtor and will notify the creditor agency and request that the creditor agency and debtor try to resolve the dispute. If the dispute cannot be resolved, the matter is scheduled for a formal hearing. At this formal hearing, the creditor agency is responsible for providing evidence to establish the debt's validity. The hearing officer does not have to rule on the total debt balance and can determine if the debt balance is at least the amount available for setoff.