FY 2020

Summary: FY 2020 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 2020 at:

$ .58 per mile for privately-owned automobiles.
$ .55 per mile for privately-owned motorcycles.
$1.26 per mile for privately-owned airplanes.
$ .20 per mile for moving related mileage.

For more details on reimbursement of mileage for the use of privately-owned conveyances, please see the Employee Travel Reimbursement Handbook, Section 3100 which can be found on the Travel Center for State Employees website.

ME:te
Printable Version of 20-A-001

Summary: FY 2020 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 2020.  The Employee Travel Expense Reimbursement Handbook is updated to include policies regarding subsistence allowances for travel occurring in FY 2020.

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, 2019 and thereafter:

Meals & Incidental (M&IE) - $55.00

Lodging Allowance Rate    - $94.00

These rates were effective October 1, 2018 and remain unchanged.  The M&IE and Lodging rates are updated semi-annually each October 1 and April 1 to follow CONUS per diem rates in effect on those dates.

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.

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: https://www.gsa.gov/travel/plan-book/per-diem-rates/
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 after 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 monthly. 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 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.  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.

ME:te
Printable Version of 20-A-002

Summary: New Account Code for Employer Assessment for State Paid Family Medical Leave Programs

As a result of the implementation of state paid family medical leave programs, a new account code has been added to SMART to use for employer contribution expenditure tracking. The following account code was made effective in SMART as of January 1, 2019 and is eligible to be used starting immediately.

This account code is to be used to record employer contributions for state paid family and medical leave programs that are being implemented under new legislation in various states. At this time, the State of Kansas is subject to contributions for employees in the State of Washington and the District of Columbia. Other states may implement similar programs in the future.

NTR:abe
Printable Version of 20-A-003

As authorized by K.S.A. 75-3207a, the Secretary of Administration has fixed subsistence rates for FY 2020. The U.S. General Services (GSA) has announced a change in the CONUS standard rate for lodging and M&IE effective October 1, 2019.  The GSA standard lodging rate has been increased to $96.00. The standard M&IE rate remains $55.00.

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, 2019 and thereafter:

The Employee Travel Expense Reimbursement Handbook is updated to include this information regarding subsistence for travel occurring on and after October 1, 2019.

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.

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:
https://www.gsa.gov/travel/plan-book/per-diem-rates/

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
If you receive security warning messages or alerts when attempting to open this link, click “yes” until you reach a “This site is not secure” page. Click “More information” or “Details” and click “Go on to the webpage (not recommended)”

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 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.

JG:me:te
Printable Version of 20-A-004

Summary: Procedures for Filing Calendar Year 2019 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 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:

• 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 Accounts and Reports by January 10, 2019 to ensure the 1099s are distributed by the January 31, 2019 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 digits with leading zeros, as assigned by SMART (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 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 2019.

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:

PS_WTHD_TRAN_TBL_update_template.xlsx

Printable Version of 20-A-005

Summary: Updated FY 2020 Private Reimbursement Mileage Rates

The Internal Revenue Service (IRS) has announced changes in the standard mileage rates effective January 1, 2020.  The IRS rate for privately owned automobiles decreases to 57.5 cents per mile, while the motorcycle rate decreases to 54.5 cents per mile, and the moving reimbursement rate decreases to 17 cents per mile. The airplane reimbursement rate remains unchanged at $1.26 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 adjusted the rates for mileage reimbursement for the remainder of FY 2020, effective January 1, 2020:

• 57.5¢ per mile for privately owned automobile
• 54.5¢ per mile for privately owned motorcycle
• $1.26 per mile for privately owned airplane (based on air miles rather than highway miles)
• 17¢ per mile for moving mileage rate

NOTE: Any agency that processed a mileage reimbursement on or after January 1^st for travel that occurred on or after January 1, 2020 and used the previously published rates will need to calculate the difference and either:

• process that amount through payroll as fringe benefit income; or

• reduce that amount from future mileage reimbursements that occur in 2020

Printable Version of 20-A-006
JG:me:te

Summary: NACHA data security requirement 

In order to enhance quality and improve risk management, the National Automated Clearing House Association (NACHA) has increased the level of security measures required for large-volume processors when storing account information.  NACHA has established 2 separate phases of implementation for the new requirement based on transaction volume.  The State of Kansas must be compliant with the Phase 1 date of June 30, 2020.

The new requirement states that account information used for ACH purposes must be rendered unreadable when it is stored electronically.  This includes ACH account information stored at rest in any system or in any electronic format.  ACH account information in transit is not affected by this requirement.  Forms collected electronically (including those which are scanned and stored) are subject to the requirement.

Examples of data subject to the new NACHA security requirement:

• ACH information for any current or former employee
• ACH information for any supplier
• INF02, Inbound Voucher Interface File, retained by the agency for historical purposes
• INF67/BL67, Inbound ACH Bank File, retained by the agency for historical purposes
• DA-130, Authorization for Electronic Deposit of Supplier Payment
• DA-184, Authorization for Direct Deposit of Employee Pay and/or Travel and Expense
• Regent Pay Detail Files, retained by the agency for historical purposes
• Correspondence in e-mail or help desk that includes ACH information

Examples of data not subject to the new NACHA security requirement:

• INF02, Inbound Voucher Interface File, in transit
• INF67/BL67, Inbound ACH Bank File, in transit
• Regent Pay Detail Files, in transit

Security of ACH account information and attachments stored in SMART and SHARP will be addressed by the Department of Administration.  Each state agency retaining ACH account information and attachments in any agency system or database must adhere to the new requirement for data security on June 30, 2020.

Additional Resources
NACHA web site, Supplementing Data Security Requirements:
https://www.nacha.org/rules/supplementing-data-security-requirements

PCI DSS Requirement 9
https://www.solarwindsmsp.com/content/pci-dss-requirement-9

Attachment
Letter from Jake LaTurner dated November 26, 2019

Printable version 20-A-007

Summary: Delay of enforcement for NACHA data security requirement 

This revises Informational Circular No. 20-A-007 issued on January 16, 2020.

Background:

The National Automated Clearing House Association (NACHA) has increased the level of security measures required for large-volume processors when storing account information. The new requirement states that account information used for ACH purposes must be rendered unreadable when it is stored electronically.  This includes ACH account information stored at rest in any system or in any electronic format.  ACH account information in transit is not affected by this requirement.  Forms collected electronically (including those which are scanned and stored) are subject to the requirement.

Revised deadline:

As published in the National Association of State Auditors, Controllers and Treasurers’ (NASACT) newsletter dated January 21, 2020, NACHA will be taking the position of “no enforcement” of the new data security rule through June 30, 2021 for governmental entities that are working in good faith toward implementation and compliance.  Agencies subject to the NACHA requirement should develop and document a plan of action by June 30, 2020 that will ensure compliance with the new security requirements is achieved on or before June 30, 2021.

Security of ACH account information and attachments stored in SMART and SHARP will be addressed by the Department of Administration.  Each state agency retaining ACH account information and attachments in any agency system or database must adhere to the new requirement for data security by June 30, 2021.

Additional Resources
NACHA web site, Supplementing Data Security Requirements:
https://www.nacha.org/rules/supplementing-data-security-requirements

PCI DSS Requirement 9
https://www.solarwindsmsp.com/content/pci-dss-requirement-9

Printable version 20-A-008

Summary: Attaching Task Orders to the Header Comments Link on the Purchase Order     

This informational circular serves as notification that for any contract that is executed using the Task Order process, the Task Order documentation is required to be in SMART for all payments that exceed the agency’s delegated audit authority.

Some agencies use slightly different terminology to talk about Task Orders. Agencies may refer to these as Task Proposal Requests (TPR) or Task Requests (TR), but the purpose is the same. Generally, agencies wanting to engage a supplier will issue a Task Request or a Task Proposal Request. Suppliers wanting to be considered must respond with a Task Proposal Response.

To facilitate the processing of payment vouchers and to minimize delays, all fully executed Task Orders are to be attached to the Header Comments of the purchase order. Subsequently, each time the purchase order is pulled into a payment voucher, the Task Order information is available for review.

Without Task Orders being attached, the audit trail documentation is inadequate and cannot be reviewed for compliance with statutes, regulations, and accounting policies and standards. Further, vouchers that are submitted without the associated Task Orders attached to the PO, may be returned to the agency by Audit Services for the Task Order to be attached.

This informational circular should be used in conjunction with Informational Circular 20-A-010 Attachments in SMART (February 28, 2020).

JG:me:te
Printable Version of 20-A-009

Summary: Requirements for Attachments in SMART for Payments and Reimbursements

This informational circular serves as a reminder of the documentation required in SMART for payments/reimbursements that exceed the agency’s delegated audit authority.

For Accounts Payable (AP) Vouchers:

Vouchers without attached invoices or supporting documentation, or that lack the documentation listed below may be returned to the agency by Audit Services, which would delay the voucher approval process.

Invoices and/or supporting documentation are required to be attached in SMART for all AP vouchers, unless providing the invoice and supporting documentation violates K.S.A. 45-221 or other relevant statutes related to non-disclosure/confidential information. If the invoice cannot be attached due to such statutory exceptions, then Audit Services will check for the following within the comments section of the SMART voucher Invoice Information tab:

• Specific statute that provides the exemption of attaching an invoice (i.e. K.S.A 45-221)
• Dates of service, order date and invoice date for each of the invoiced amounts
• Description of payment (i.e. attorney fees)
• Detailed breakdown of expenses if not itemized by line on the voucher
• Other relevant invoice information (i.e. rates/hours/pricing, etc.) where applicable, for Audit Services to make a reasonable determination
• Detailed reason why the invoice or supporting documentation can’t be attached in SMART (i.e. HIPAA violation, ongoing investigation, etc.)
• Travel expense receipts (if applicable)
• Other information that may be necessary to provide sufficient audit trail documentation for Audit Services’ review for compliance with statutes, regulations, and accounting policy and standards.

For cell phone bills, Audit Services only requires the cover page/summary page that includes the supplier, amount due, and dates of service.

Audit Services does not require support documents for grant payments, refunds, or P-Card payments to be attached in SMART to the payments. The payment support documents should continue to be maintained at the agency in a file storage method other than SMART.

NOTE: If a contract does not contain a “cost sheet” or prices for what is being ordered and the agency must contact the supplier to obtain a “quote” for the goods or services, Audit Services requires the “quote” be attached to the Header Comments link on the purchase order.

For Travel and Expense (T&E) Reports:

Documents supporting travel and expense reimbursements are to be attached in SMART to the T&E report. These documents include:

• Prior authorization for travel not captured by a SMART Travel Authorization
• Required receipts which support T&E reimbursements
• Conference rate verification, i.e. conference materials
• Information that is not available in SMART

For Contracts and Purchase Orders (PO):

Agency specific contracts and all amendments to those contracts are to be uploaded to the SMART Supplier Contracts module.  If an amendment needs to be added to the contract after the contract has been created in the SMART Supplier Contracts, agencies should contact the Office of Procurement and Contracts for assistance. Attaching this information in SMART to the PO or the AP voucher is not sufficient.  Please continue to reference state contracts within the voucher when applicable. (See Procurement Informational Circular 16-04 for requirements on capturing contract spend data in SMART).

Prior Authorization (PA) forms that require hand-written approval by the Office of Procurement and Contracts, such as revised PA’s, must be attached in SMART to the Purchase Order (PO). All other PA’s must follow the Office of Procurement and Contract’s policies for attachments in SMART (See Procurement Informational Circular 11-03 for procedures on processing prior authorization requisitions).

SMART System Requirements for Attachments:

• The recommended size limit for a file being attached is 1 MB. (recommend black & white scans only, as color significantly increases the document size).
• Agencies should not attach CAD (Computer Aided Design) files or picture files (examples- .jpg, .tif, .png, or .gif).
• Excel, Word, PDF, or similar files, are appropriate.
• Multiple attachments are allowed (larger files may be broken down into multiple attachments if necessary).
• For vouchers that are interfaced, the agency must attach support documents after the voucher has been created in SMART.
• Avoid attaching documents that do not add value to the transaction.
• System retention for attachment files is expected to be 3 years. This period may be reduced if storage space becomes an issue.
• Agencies should not rely on SMART as the method for meeting record retention policies.

JG:me:te
Printable Version of 20-A-010

Summary: State Agency Guidance for Essential Transactions During the Government Shut Down

On March 17, 2020, Governor Kelly announced that the Kansas Government will shut down, performing essential functions only, beginning March 23, 2020. As a result, the Statewide Agency Audit Services Team (Audit Services) is reduced and will be working remotely to approve transactions that are deemed essential by state agencies.

Essential transactions may include statutorily required payments such as, General State-Aid, Bond Principal and Interest, and other critical transactions which may include payments for:

• grants and assistance
• services essential to public health and welfare
• lease obligations
• utilities

Other essential transactions may include wires and deposit adjustments.

Processing questions or other inquiries should be emailed to ARPreaudit@ks.gov. High-priority issues should be identified in the subject line of the email. NOTE: Agencies should expect to experience longer than normal response and processing times.

JG:me:te
Printable Version of 20-A-011

Summary: Rescinding Informational Circular 20-A-011 - State Agency Guidance for Essential Transactions.

Informational Circular 20-A-11 is rescinded effective April 6, 2020.

Even though Governor Kelly’s COVID-19 directives remain in place the Audit Services Team is now fully staffed and will be working remotely until those directives change.

Agencies may return to normal processing of vouchers and other financial transactions.

We appreciate your patience as the volume of transactions for the Audit Services Team’s approval returns to normal levels.

Processing questions or other inquiries should be emailed to ARPreaudit@ks.gov.

JG:me:te
Printable Version of 20-A-012

As first announced to the SMART user community on March 27, 2020, a new program code was added in SMART to capture all transactions related to the COVID-19 outbreak.  The addition of program code 21662, COVID-19 Transactions, will allow for reporting of the financial impact of the COVID-19 outbreak on the State of Kansas. As requested by the Governor and Secretary of Administration, this applies to all state agencies (Regents, executive, judicial, and legislative branches).  Division of the Budget and the Office of Accounts and Reports have added program code 21662, COVID-19 Transactions, with an effective date of February 1, 2020, to both IBARS and SMART.

All COVID-19 related transactions occurring during fiscal year 2020 must be properly recorded using program code 21662 by the end of the fiscal year.

• If COVID-19 related transactions have processed during February and March using a different program code, agencies are expected as soon as possible to process adjustment transactions to update/correct the program code to 21662.
• For COVID-19 related transactions that process during April and May with a program code other than 21662, adjustment transactions to update/correct the program code to 21662 are expected to process within 10 calendar days following the month in which the transactions occurred.
• For COVID-19 related transactions that process during June with a program code other than 21662, adjustment transactions to update/correct the program code to 21662 must process prior to the end of the fiscal year. SMART will be closed to agency users at 6pm on Friday, June 26, 2020 for fiscal year-end processing.

Adjustment transactions should be entered in the SMART module where the transaction originated, for example, AP transactions should be updated/corrected as an AP journal voucher and deposits shall be updated/corrected as deposit adjustments.

When considering what transactions should use the COVID-19 program code, the general guidance is to include transactions that would not normally have occurred if the virus outbreak had not happened.

Examples of transactions that should use the COVID-19 program code:

• Deposits for COVID-19 revenue
• Purchase of laptop computers so staff can work remotely 
• Meals, lodging and/or miscellaneous expenses for emergency response
• Military activation
• Supplies for disinfection (cleaners, anti-bacterial gel, etc.)
• Medical supplies (gloves, masks, thermometers, test kits, etc.)
• Salaries and wages for additional personnel or overtime costs due to outbreak response 
• Overtime costs for staff working to cover tasks when co-workers cannot report due to self-quarantine or no access to daycare for school-age kids
• Costs due to the cancellation of activities

Examples that should not use the COVID-19 program code:

• Salaries and wages for staff working remotely or performing normal tasks during the statewide office closure

Any agencies with specific questions about whether expenses or revenues should be included or excluded should contact their Division of Budget analyst.

Specific guidance regarding payroll processing related to the COVID-19 outbreak is provided in Informational Circulars:

• 20-P-031 Addition of Earnings Code for COVID-19 Related Tasks (March 17, 2020)
• 20-P-033 Update to Program Code for Funding Associated with the New CVD Earnings Code (Time Reporting Code CVTSK) (March 31, 2020)
• 20-P-034 Agency Options for Required Use of the New Program Code for Funding Related to COVID-19 Payroll Expenditures (April 1, 2020)
• 20-P-035 New Earnings Codes and Agency Guidance for Implementation of the Families First Coronavirus Relief Act (FFCRA) (April 15, 2020)

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Printable Version 20-A-013

Summary: Schedule of accounting events relevant to the closing of Fiscal Year (FY) 2020 and the opening of Fiscal Year (FY) 2021

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.  For fiscal year 2020 activity to be completed by June 30^th, the cutoff date for most agency processing will be Friday, June 26, 2020 at 6:00 PM.  

SMART will be closed to agencies from Saturday, June 27, 2020 through Tuesday, June 30, 2020, and again the morning of Wednesday, July 8, 2020.

New deadlines have been added for encumbrances using the State General Fund.   This includes all purchase requisitions over $5,000 that require prior authorization, purchase orders over $5,000, GL encumbrances over $5,000, and travel authorizations over $5,000. 

For purchase requisitions over $5,000 that require prior authorization by the Office of Procurement and Contracts, email the Prior Authorization Request Form and supporting documentation to your Division of the Budget analyst before entering in SMART.  DOB will reply with an acknowledgement which should be included in the documentation entered in SMART.  Agencies are strongly advised not to “split” transactions by generating multiple entries for the same transaction in order to avoid the $5,000 limit. 

Deadline changes as a result of this message appear in red font within this informational circular and day by day summary.  Sections with changes include: Requisitions/Purchase Orders, Travel Authorizations, and GL Encumbrances.

See attachments:
FY20_Events_to_Close_FY20_Open_FY21_REVISED
FY20_Close_Day_by_Day_Summary_REVISED

Summary: Recording COVID-19 SMART Expenditures Using New Program Codes 21662 and 97662 

As first announced to the SMART user community on March 27, 2020, a new program code was added in SMART to capture all transactions related to the COVID-19 outbreak. Informational Circular 20-A-013, published April 2, 2020, provided deadlines for adjustments and journals as well as the information regarding the use of the new code.

The Division of Budget has identified a need for the COVID-19 transactions to be separated between on-budget and off-budget program codes. Please use program code 21662 for only on-budget transactions. To capture off-budget transactions, a new program code has been added to SMART, 97662, with the description COVID 19 Off-Budget, effective February 1, 2020. This code was added only for the following agencies that normally report off-budget transactions:

If an agency was not included in the above list and has off-budget COVID-19 transactions, please log a ManageEngine Service Desk request for this program code to be added in SMART.

All COVID-19 related transactions occurring during fiscal year 2020 must be properly recorded using on-budget program code 21662 or off-budget program code 97662 by the end of the fiscal year.

• If COVID-19 related transactions have processed during February and March using a program other than 21662 or 97662, agencies are expected as soon as possible to process adjustment transactions to update/correct the program code.
• For COVID-19 related transactions that process during April and May with a program code other than 21662 or 97662, adjustment transactions to update/correct the program code are expected to be processed within 10 calendar days following the month in which the transactions occurred.
• For COVID-19 related transactions that process during June with a program code other than 21662 or 97662, adjustment transactions to update/correct the program code must be processed prior to the end of the fiscal year. SMART will be closed to agency users at 6pm on Friday, June 26, 2020 for fiscal year-end processing.

Adjustment transactions should be entered in the SMART module where the transaction originated. For example, AP transactions should be updated/corrected as an AP journal voucher and deposits should be updated/corrected as deposit adjustments.

When considering what transactions should use the COVID-19 program code, the general guidance is to include transactions that would not normally have occurred if the virus outbreak had not happened.  Please refer to Informational Circular 20-A-013 for a list of examples.

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Printable Version of 20-A-015

Summary: Agencies must have COVID-19 expenditures properly recorded to the program codes by noon on June 1, 2020

In accordance with the deadlines previously established in information circular 20-A-013, please ensure your COVID-19 expenditures are properly recorded and up to date using the SMART program code 21662 (on-budget) or 97662 (off-budget).  SMART reporting, using these program codes, will be the official source of record for eligible state expenditures considered for reimbursement.

While all COVID-19 related transactions occurring during fiscal year 2020 must be properly recorded by the end of the fiscal year, if you have not completed your adjustment transactions to update/correct the program code for eligible expenditures, you will need to do so by noon on Monday June 1, 2020 in order for those transactions to be available for consideration in the first round of reimbursements from the Coronavirus Relief Fund.

Agencies should verify the accuracy and completeness of their reporting using the results of the SMART query KS_GL_EXPS_REVS_XFERS_BY_BU, which provides transactions summarized by fund, budget unit, account, and month.  Agencies are advised to prioritize hard costs (or non-payroll related expenses), if there is not sufficient time to get all entries reclassified/recorded by noon on June 1, 2020.  Please also keep in mind that agencies will be required to certify the accuracy of the coding to receive reimbursement.

Please reference information circulars 20-A-013, 20-A-015, 20-P-031, 20-P-033, 20-P-034, and 20-P-035 for establishment of the program codes, recording deadlines, and payroll processing guidance.  Any agencies with specific questions about whether expenses or revenues should be included or excluded should contact their Division of Budget analyst.

Printable version of 20-A-016
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Summary: Agencies must process journals to record use of Coronavirus Relief Fund by June 24, 2020.

On June 16, 2020, the Strengthening People and Revitalizing Kansas (SPARK) Taskforce and Governor’s Office of Recovery approved for many state agencies to receive distributions from Coronavirus Relief Fund.  Executive Directive 20-517 was implemented and created a Coronavirus Relief Fund in each state agency.  A full list of agencies and amounts is provided as Attachment A.

A general ledger journal was processed on June 19 to transfer the total approved reimbursement amount to the agency’s Coronavirus Relief Fund.  A list of expenditures by funding source can be obtained from the agency’s Division of Budget (“DOB”) budget analyst.   Additionally, on June 19 the SMART Team will send the list to each agency through a ManageEngine Service Desk Ticket. Please review each line of expenditures to make sure that your agency agrees the amount represents expenditures qualifying for reimbursement based on the federal guidelines in the CARES Act. See 42 U.S.C. § 801(d).

Immediate action is necessary for each agency to process a general ledger journal to reduce the expenditures from the original funding source and charge the Coronavirus Relief Fund by June 24, 2020.  An example is included as Attachment B.

Upon further review by your agency, if all or part of the amounts on the list do not meet the requirements for reimbursement, the amount must be left out of the general ledger journal so that the expense amount is not transferred to the Coronavirus Relief Fund.   Then contact your DOB budget analyst to request for the amount to be returned to the Governor’s Office.

Your agency should be aware that receipt of these funds may require additional internal controls to comply with federal requirements. This includes compliance requirements that are required by Uniform Guidance (Specifically reference Subpart F section 200.501 for Audit Requirement thresholds).  Please make sure you’re familiar with the documents required to be submitted to the Office of Accounts and Reports, by August 14^th, 2020, related to the expenditure of federal funds.  

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Attachment A
Attachment B