It is time to close another fiscal year and we are asking for your cooperation to help ensure a successful
and timely closing of FY 98 and opening of FY 99. Information concerning closing is contained in the Division
of Accounts and Reports Policy and Procedure Manual filing no. 14,002 which is also in the General Accounting
Services section of the Division of Accounts and Reports web site at: http://www.ink.org/public/da/ar/genacct/ppm/PPM_OVER.html.
K.S.A. 75-3002 establishes the state's 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. However, to allow state agencies
time to process as much old year business as possible, the old year records remain open through the
second Monday of July (PPM No. 14,002). During this period the Statewide Accounting and Reporting
System (STARS) processes old and new fiscal year business concurrently.
During this concurrent processing period, FY 98 documents receive a higher processing priority than do
FY 99 documents. This, and the large volume of last minute old year business received for processing, can
cause delays in the processing of FY 99 business. There is a period (usually three or four days) after
the third Monday in July in which no daily transactions are processed. During this period, total effort
is directed to processing transactions necessary to complete the transition from FY 98 to FY 99. These
delays are an inherent part of the fiscal year closing process.
Your understanding of the unique circumstances encountered during the fiscal year transition period will
help to reduce the number of delays experienced during fiscal year closing. Obviously, the workload both
at your agency and the Division of Accounts and Reports is greatly increased during this period; therefore,
following certain guidelines will result in a smoother flow of transactions.
FY 98 business should be processed in a timely manner at both the agency level and the central level.
This will relieve some delays caused by the multitude of last minute vouchers received by the Division
of Accounts and Reports. Some degree of relief can also be realized by state agencies reviewing the May
monthly reports and submitting necessary requests for corrections before June 30. This will significantly
reduce the volume of last minute journal entries.
All transactions submitted during the concurrent processing period should be carefully reviewed for accurate
and complete coding, authorized signature, sufficient unencumbered balances, and any potential errors that
may require additional processing time. Transaction year 98 and 99 documents should be batched separately.
During concurrent processing STARS batch sheets for 98 transaction year should have a batch date of 06-30-98,
an effective date of 06-30-98, and BFY of 98. Keeping the exceptions to a minimum during this period will
result in more efficient and timely processing of transactions.
During the concurrent processing period, special attention should be given by agencies to the unencumbered
balances of those funds whose budget units are classified as "expenditure only". To make "carry
forward" balances available as of July 1 for use by state agencies, STARS has been programmed to allow
new year transactions charged to "expenditure only" accounts to edit against fund-level (both
FY 98 and FY 99) receipts. However, during this period, FY 98 transactions only edit against FY 98 receipts.
During the concurrent period, those state agencies having accounts structured as "receipt and expenditure" must ensure that FY 99 receipts are available to cover FY 99 expenditures from budget units classified as both receipt and expenditure. The available cash in prior fiscal year receipt and expenditure budget
units will not be available to fund FY 99 expenditures until FY 98 is closed and balances carried forward.
During the concurrent transition period, personnel at all levels are subjected to increased workloads
and pressures. Errors will be resolved in the most efficient and timely manner possible. Emergency situations
will be reviewed and acted upon as soon as possible. Transactions categorized as emergency payments should
be batched separately and sent to the attention of Jerry Serk, Central Accounting Services Section, Division
of Accounts and Reports, 900 S.W. Jackson Street, Room 351-S, Topeka, Kansas.
Every effort must be made to ensure that payment of legal obligations to vendors are not delayed. With
your proactive support and assistance, we look forward to a timely year-end transition. A schedule of events
concerning the closing of Fiscal Year 1998 and the opening of Fiscal Year 1999 has been prepared to identify
certain functions and events of mutual interest to state agencies and the Division of Accounts and Reports.
These items and dates are as follows:
| DATE |
ITEM |
| April 17 |
Letter Advising Agencies to Prepare Real Estate Encumbrance Renewals (Affected Agencies Only)
|
| May 4 |
Letter Requesting Agencies to Review Outstanding Encumbrances
|
| May 18 |
Letter to Agencies Transmitting List of Outstanding Obligations (DA-118) Instructions
|
| May 21 |
Year-End Closing Information at ASTRA meeting
|
| June 1 |
Annual Review of Housing, Food Service and Other Employee Maintenance Rates (DA-171)
|
| June 17 |
Fiscal Year 1999 Valid Funds Tape and Valid PCA Tape Sent to State Treasurer
|
| June 18 |
Preliminary Fiscal Year 1999 Central Chart of Accounts Mailed to State Agencies
|
| June 18 |
Informational Circular to All State Agencies Regarding Fiscal Year Rate Changes in Payroll Deductions
and Contributions
|
| June 22 |
Review Any Outstanding Checks and Process Paycheck Reversals Prior to June 24, 1998 Which is the
Last Off -Cycle Payroll Charged To Fiscal Year 1998. Any Checks Issued in This Cycle Will Be Dated
June 29, 1998 and Charged to Fiscal Year 1998
|
| June 29 |
Updates to Payroll Funding Group Definitions for Fiscal Year 1999 Must be Entered into SHARP by 5:00
P.M. in Order to be Reflected in the Charges for Any Paychecks Resulting from the KA3 Off-Cycle for
the Period Ending June 13, 1998 (First Off- Cycle Payroll Charged to Fiscal Year 1999)
|
| June 30 |
Regents Establish Payroll Clearing Fund Indexes in STARS for Fiscal Year 1999
|
| July 1 |
Fiscal Year 1999 Transactions Accepted for Processing: Also Commencement of Concurrent Processing
Period for Final Fiscal Year 1998 Transactions
|
| July 2 |
Updates to Payroll Funding Group Definitions for Fiscal Year 1999 Must be Entered into SHARP by 5:00
P.M. in Order to be Reflected in the Charges for the On-Cycle Paychecks Dated July 10, 1998 (First
On-Cycle Paychecks Charged to Fiscal Year 1999)
|
| July 6 |
DA-35 Electronic Files (Prior Period Funding Payroll Adjustments) Must be Received by 5:00 P.M.
|
| July 13 |
State Treasurer Accepts Final Fiscal Year 1998 Receipts Vouchers from State Agencies up to 3:00 P.M.
|
| July 13 |
Central Accounting Services Section Accepts Final Expenditure and Encumbrance Batches from State
Agencies for Fiscal Year 1998 Until 5:00 P.M.
|
| July 13 |
Agencies Entering STARS Payment Vouchers On-Line Must Have Final Documents for Fiscal Year 1998 Entered
by 5:00 P.M.
|
| July 14 |
Agencies Entering Payment Vouchers On-Line in STARS With a June Effective Date Must Have Paper Documents
into the Central Accounting Services Section by 12:00 Noon to Avoid Transactions Being Deleted from
the System
|
| July 15 |
Agencies May Enter DA-118's On-Line Until 5:00 P.M.
|
| July 16 |
Agencies Entering DA-118's On-Line Must Have Paper Documents delivered to the Accounting Services
Section By 12:00 Noon to Avoid Transactions Being Deleted from the System
|
| July 21 |
Final Processing of June 1998 Transactions Expected; End of Concurrent Processing
|
| July 22 |
Commencement of Processing for Monthly and Annual Reports and Statements: Also, Processing of Closing
and Opening Entries and Preparation of Opening and Closing Transaction Statements
|
| July 27 |
June 1998 Monthly STARS Statements Expected to be Mailed to Agencies
|
| July 27 |
Resume Processing of July 1998 (Fiscal Year 1999) Transactions
|
| July 29 |
Fiscal Year 1998 Closing Statements and Fiscal Year 1999 Opening Statements Expected to be Mailed
to Agencies
|
| August 5 |
DA-404, DA-406 and DA-410 Budget Worksheets Expected to be Distributed |
SAM:pk
Oh No, Not Year-end Again!
 Are
you dreading the approaching end of fiscal year 1998? You are probably not alone.
The successful closing of a fiscal year and the opening of the subsequent fiscal year requires cooperation
between agencies and central services personnel. This year, as a supplement to the enclosed year-end
schedule informational circular, the Agency STARS Rapport Association (ASTRA) has invited Department
of Administration and other central service providers to speak on the subject of year-end policies,
procedures and schedules at their May 21, 1998 meeting. This unique opportunity will let you, our
customer, hear first-hand how the various individual processes fit together to form the overall year-end
closing process. There will be a high-level presentation, followed by focus groups on selected processes.
A detailed agenda will be issued by ASTRA at the end of April, or early in May. Contact your agency
ASTRA representative for additional information, or call Fran Wilbrant (KSU) at 785-532-4341, Susan
Duffy (Historical Society) at 785-272-8681 extension 204, or Ruth Scott (Corporation Commission)
785-271-3274 for registration information.
 In
view of the increased workloads, shortened time frames, and other complex issues associated with
the year-end process, it is doubtful that any of us will ever place it on our top ten list of "Things
I Most Enjoy about Summer." However, by working together and sharing knowledge and experience,
we might be able to remove it from our list of "Things I Least Enjoy about Summer."
Be sure to read the Informational Circular thoroughly and bring it, along with questions, comments
or suggestions to the ASTRA meeting on May 21st! |
