FY 2013

As authorized by K.S.A.75-3203a, the Secretary of Administration has fixed the private vehicle maximum mileage reimbursement rates for FY 2013 at:

55¢ per mile for privately owned automobile

47¢ per mile for privately owned motorcycle

23¢ per mile for moving mileage rate

$1.29 per mile for privately owned airplane (based on air miles rather than highway miles)

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Please see State of Kansas Travel Handbook 4100 for information on how meals are reimbursed.
As authorized by K.S.A.75-3207a, the Secretary of Administration has fixed the rates for FY 2013 at:

Meal Allowance: 

*or actual not to exceed $101 per day
 

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 supplied without cost by another party, the meal allowance should be reduced as shown in the table above.

Same Day Meal Allowance:

The rates as established in accordance with K.A.R. 1-16-18(c)(3) are the same as indicated in the table above.

Lodging Expense Limitations:

K.S.A. 75 3207a(f) provides that the daily lodging expense limitations established above may be exceeded 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.

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

1. The vendor/client must be in the SMART vendor table. 
2. All reportable payments must be submitted via the help desk using the EXCEL template referenced below
3. All payments reported through the Office of General Services will be processed through SMART.  Paper 1099s are generated and mailed to the vendors.  The 1099 information will be electronically submitted to the IRS. 

 There is NO option for the agency to print the forms and have the Office of General Services report to the IRS.

Below are the policy and procedures.

While most 1099 transactions are recorded in the Statewide Management, Accounting and Reporting Tool (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.
• State Fair premiums are to be reported on Form 1099-MISC.
• Other payments such as non-employee awards not paid directly to the recipient from SMART.
• Note that purchases of Real Property are now reported in SMART, and require the appropriate SMART preferences to record the appropriate data.

To report non-SMART payments for form 1099 purposes the agency will need to confirm the vendor is in the SMART vendor table with the appropriate 1099 type and class, and withholding is turned on.  If the vendor is not in the vendor table, the agency must add the vendor to SMART including the appropriate 1099 type and class, and turn withholding on.

Complete the attached EXCEL template PS_WTHD_TRAN_TBL_update_template for all non-SMART 1099 reportable payments.  The completed template needs to be received by the Office of General Services by January 14, 2013 to ensure the 1099s are distributed by the January 31, 2013 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 Help Ticket with the heading “non-SMART 1099”.  Note if you have leading zeros precede them with an apostrophe ‘, i.e. vendor id ‘0000123456.

BUSINESS_UNIT:  5 characters must have leading zeros (your agency number)

WTHD_ENTITY:  IRS

WTHD_TYPE:  as listed in the vendor table (1099, 1099I, 1099G, 1099D)

WTHD_JUR_CD:  FED

WTHD_CLASS:  as listed in the vendor table, with leading zeros.

WTHD_RULE:   RULE0

VENDOR_SETID: SOKID

VENDOR_ID:  10 digits with leading zeros, as assigned by SMART.

VNDR_LOC:  the vendor location with the appropriate 1099 type and class, usually 001, with leading zeros

ADDRESS_SEQ_NUM: 1  

PYMNT_ID:  Blank

VNDR_REGIST_ID:  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 2012.

DESCR100:  100 characters of your choice – no punctuation, no special characters

Additional Resources:

PowerPoint review of setting up vendors for 1099 reporting and an account code guide: http://www.da.ks.gov/ar/forum/astra/mtg2011-05-1099s.ppt 

 IRS guide to each type of 1099, including the payments for each:

http://www.irs.gov/efile/article/0,,id=98114,00.html

Page 6 and 7 of the job aid “Create a 1099 Voucher

” has Examples of payments by 1099 type and class: http://www.da.ks.gov/smart/Training/JobAid_Create_1099Voucher_Online_20100630.doc

SMART withholding codes:

http://www.da.ks.gov/smart/Training/JobAid_WithholdingCodes_20100720.ppt

Attachment: PS WTHD TRAN TBL update template XLSX 

RMK

As authorized by K.S.A.75-3203a, the Secretary of Administration has fixed the private vehicle maximum mileage reimbursement rates for FY 2013 at:

55¢ per mile for privately owned automobile

47¢ per mile for privately owned motorcycle

24¢ per mile for moving mileage rate

$1.29 per mile for privately owned airplane (based on air miles rather than highway miles)

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The Department of Administration is changing statewide accounting practice by eliminating the concurrent processing period within SMART.  This is being implemented to address audit findings and to reduce risk by improving the current level of statewide accounting system controls.  Establishing this change as a best practice will assist the state in achieving defined monthly cutoffs, thus reducing system date and timing issues in monthly reconciliations.

We understand this will require agencies to plan ahead for processing that normally occurs during the crossover period from one month end to the beginning of the new month as well as the transition from old state and federal fiscal years to new state and federal fiscal years.

This change will be effective beginning with the month end closing for May, 2013.

This change will also affect the transition from the current fiscal year (FY 2013) to the new fiscal year (FY 2014).  The annual informational circular (13-A-006) containing the fiscal year end processing instructions will be out soon and will reflect the elimination of the concurrent period within the schedule of key fiscal year closing dates. 

For July through May in fiscal year 2014, the SMART General Ledger will close when month-end processing is completed.  Generally this will be the morning of the first business day of the new month.  Once the General Ledger is closed, the new month will be open for processing.

The concurrent period processing changes will be reflected soon in Policy Manual filing 14,002 on the Department of Administration’s website:  http://www.da.ks.gov/ar/pm/pm14002.htm.  Additional instructions will be provided at a later date for the closing of September and the transition between federal fiscal years.

SUMMARY:
Schedule of accounting events relevant to the close of fiscal year 2013 and the opening of fiscal year 2014.

This is a PDF file attachment.  Please open the PDF file attachment (provided below) to view the contents of this Accounting Informational Circular.

Thank you.

IC 13-a-006 - Closing of Fiscal Year 2013 and Opening of Fiscal Year 2014

 INFORMATIONAL CIRCULAR NO. 13-A-007

PM 13,001 has been updated to require that all real property, including real property (land and buildings) with a cost under $100,000, be recorded in SMART.  This requirement applies to all agencies that own real property.  Regents universities and the Department of Transportation are excluded from this requirement.

For those agencies with real property currently in SMART, an email will be sent to your agency CFO along with real property agency records for agency verification and update.  All real property (land and buildings), regardless of the cost should be included in SMART.  Included in the agency email will also be an attachment “Instructions for Updating Land and Building Records in Response to LPA Audit”. 

For all agencies with real property, additional information on entering property assets can be reviewed at the following links: Adding an Asset Using Express Add Training Guide and the Property Assets and Related Improvements Training Guide.

ME:jmm

INFORMATIONAL CIRCULAR NO. 13-A-008 (revises 13-a-006)

As a result of unforeseen technical issues and the extended delay of opening SMART to agencies on Tuesday, June 25, 2013, the following changes have been made to the previous schedule of accounting events relevant to the close of fiscal year 2013 and the opening of fiscal year 2014.

General Items

The cutoff for interface files into SMART for fiscal year 2013 will be 5:00 PM on Thursday, June 27, 2013 for Expenditures and 5:00 PM on Friday, June 28, 2013 for Deposits.

All FY 2013 transactions must be successfully edited, budget checked, matched, agency approved, dispatched, and submitted into workflow for central approval, as appropriate, by 6:00 PM on Friday, June 28, 2013. After these dates, SMART will be closed to all agency users, and the SMART clean-up process will begin on Saturday, June 29, 2013.

Accounts Payable

The final day that agencies can enter a voucher in accounts payable for FY 2013 business will be 6:00 PM on Friday, June 28, 2013. Here is additional information that will help you with accounts payable:

• In order for accounts payable transactions to complete for FY 2013, vouchers must be entered, approved, matched, and budget checked by 6:00 PM on June 28.
• Any FY 2013 accounts payable item that cannot be entered into SMART by the cutoff date must be encumbered by using a purchase order.
• Interfacing agencies must have their final INF02 for FY 2013 business submitted by 5:00 PM on Thursday, June 27.

Expense Reports

Expense Reports chargeable to FY 2013 must be processed in SMART by Friday, June 28, 2013. For any travel that is chargeable to FY 2013 that cannot be processed by the deadline, the agency must process a Travel Authorization.

Purchasing

To encumber monies for FY 2013, requisitions must be sourced to POs and the PO must be approved, budget checked and dispatched by end of business on Friday, June 28, 2013.

The last P-Card voucher build process for FY 2013 will run the morning of Friday, June 28, 2013. The resulting P-Card vouchers must be approved and successfully budget checked prior to 3:00 PM on Friday, June 28, 2013 so they are eligible to process in pay cycle.

Asset Management

All FY 13 asset transactions must be entered by 6:00 PM on Friday, June 28, 2013. This includes additions, adjustments, transfers, and retirements, as well as updating costs for CIP assets. The Transaction Date should be the effective date of the transaction. For new assets being entered in SMART, the Transaction Date will be the In Service Date.

For agencies utilizing integration, all outstanding Interface ID’s for FY 2013 must be processed by 6:00 PM on Friday, June 28, 2013. If an asset is acquired by your agency at the end of the fiscal year and the voucher will not be posted by Wednesday, June 26, 2013, please enter the asset(s) manually via Express Add.

Project Costing

All Federal funds must be in a positive cash position by year-end close. For agencies with Federal funds tied to Project Costing and Customer Contracts, this means that FY 2013 billing worksheets should be approved or written-off and any related deposits completed by 6:00 PM on Friday, June 28, 2013.

Accounts Receivable

Fiscal year 2013 deposits must be entered as follows:

• Friday, June 28, 2013 online entry into SMART will be open to agencies.
• Friday, June 28, 2013 at 6:00 PM is the cutoff for online entry of FY13 deposits.
• SMART AR deposit jobs will run according to the regular hourly schedule.
• Friday, June 28, 2013, agencies may continue to upload and submit FY 2013 deposits via INF43 and INF44 until 5:00 PM. Only deposits approved and released by the State Treasurer’s Office by 3:00 PM on Friday, June 28 will be considered FY13 GL business. 
• Any FY13 deposits processed after 3:00 PM Friday, June 28, on Saturday, June 29 and on Sunday, June 30 will be considered deposits-in-transit with an FY13 AR date and an FY14 GL date. 

Deposits in transit are defined as:

• Agency receipts after 3:00 PM Friday, June 28, 2013.
• Agency receipts on Saturday, June 29, 2013.
• Agency receipts on Sunday, June 30, 2013.

Since SMART will be open to agencies on Friday, June 28, 2013, the Temporary Deposit Form will not be used on that day.

Interfunds

• The accounting dates on both the voucher and deposit must fall within the same fiscal year.
• Friday, June 28, 2013 6:00 PM: both sides of the interfund must be approved.  All remaining FY2013 interfund deposits and interfund vouchers will be deleted by the SMART team.

GL Journals

• In order to affect fiscal year 2013, ALL GL Journals must be successfully edited, budget checked, agency approved, and submitted into workflow for central approval by 6:00 PM on Friday, June 28, 2013.
• Interfacing agencies must have their final INF06 for FY 2013 business submitted by 5:00 PM on Thursday, June 27, 2013.
• GL Spreadsheet Journals can be uploaded manually until 3:00 PM on Friday, June 28, 2013. The journals must be approved and submitted for central approval by 6:00 PM.

Allocations

Agencies using Allocations must run their last FY 2013 allocation process on Friday, June 28, 2013. All resulting GL Journals must be posted by 5:00 PM that day.

Day by Day Summary – June 25, 2013 through June 29, 2013