FAQs for State Agencies Receiving Coronavirus Relief Funds

Please see below for the information from the original FAQ document from the Office of Accounts and Reports for agencies receiving Coronavirus Relief Funds, as of October 19, 2020.

Question numbers 15-17 have been added since it was last distributed on September 29, 2020.

Thank you,
Office of Accounts and Reports

 

FAQs for state agencies receiving Coronavirus Relief Funds

Common Name for CRF Distribution	Description	Date Approved by State Finance Council	Total Approximate Amount of Distribution	Fund and Budget Unit
FY20 State Agency Reimbursement in June 2020	Reimbursements of FY 20 Expenses reported using the COVID program code through June 12, 2020	June 16, 2020	$16 Million	3753 - 3753
Round 1 Awards	Awards made to county governments across Kansas	June 16, 2020	$400 Million	N/A
FY20 State Agency Reimbursement in August 2020	Reimbursements of FY 20 expenses reported using the COVID program code through June 30, 2020, and not previously transferred to the CRF.	August 10, 2020	$4 Million	3753 – 3753
Round 2 Awards	Seven state agencies were awarded funds based on proposals submitted to the SPARK Task Force	July 29 and August 10, 2020	$314 Million	3753 – 3771
Round 3 Awards	Awards to state agencies based on proposals of operational and project spending due on September 4, 2020	September 17, 2020	$290 Million	3753 - 3772

 

1. How will the agency receive the funds from the Governor’s Coronavirus Relief Fund (CRF)?

a. Your agency will be receiving the approved amount by a transfer GL journal in SMART.  The money will be placed in your CRF 3753.  The budget unit will be based on the distribution of funds:

 i.  Round 2 Awards will use budget unit 3771.

 ii.  Round 3 Awards will use budget unit 3772.

iii.  NOTE: For Round 2 Awards, this budget unit is different than what was included in your agency’s executed MOA but has been updated due to system availability of the budget unit.  3771 is the budget unit that should be used.

 

2.  How will the agency distribute funds to another State of Kansas (SOK) agency and how does the processing of grants differ from the processing of expenditures?

a.  Distributions should be made directly out of the CRF 3753 using the budget unit corresponding to the award.

b.  For any distribution of a grant/award that will be paid to another SOK agency (when the payment is not in exchange for goods or services), an interfund should be processed using account code 773100 – Federal Subgrant Transfer Out.  Chartfield 2 should not be used on the accounting rows. 

c.  For any distribution that will be paid to another SOK agency in exchange for goods or services, an interfund should be processed using an appropriate expense account code. Chartfield 2 must be used on the accounting rows to define the appropriate federal category for the expenses. (See the table after FAQ #6b for ChartField2 values to be for federal reporting requirements.)

3.  How will the agency distribute funds to non-state governmental entity and how does the processing of grants differ from the processing of expenditures?

a.  For any distribution of a grant/award to any non-state governmental entity (when the payment is not in exchange for goods and services), process a payment using Account Code 550100 – Federal Aid to Local Government.  Only include a value for Chartfield 2 on the accounting rows, to define the appropriate federal category, if you know for sure how the final expenditure for goods and services will be categorized.  Your agency must collect the federal reporting information directly from the recipient.  

b.  For any distribution that will be paid to any non-state governmental entity in exchange for goods and services, process a payment using an appropriate expense account code.  Chartfield 2 must be used on the accounting rows to define the appropriate federal category for the expenses. 
 

c.  Best practice would be for the payment to be processed as an ACH payment.  Many local units of government are already included as suppliers in SMART with ACH information.   Please look for the Supplier ID in SMART based on the entity name, and then verify that information and the appropriate payment location with the recipient.

d.  Continue to use the On-Budget Program Code Account 21662 for all COVID-19 spending so the total state impact can be captured, regardless of funding source.

4.  How will the agency distribute the funds to a non-governmental entity?

a.  Taxability.  Since these payments are taxable, we have to assume that a 1099 needs to be issued for these payments.  (Sometimes 1099s are not necessary for corporations and LLC since they must report the income themselves. However, we need to proceed as if a 1099 must be issued since we do not know the status of each recipient.)  In order to process 1099 forms, every recipient must be added to SMART as a Supplier, if they are not already in the system.

b.  W-9 forms must be collected from the recipient.  

i.  The W-9 information can then be used to look up the Taxpayer Identification Number (TIN) number in SMART to determine if the recipient is already in the system as a Supplier.

ii.  If no record is found for the TIN, add the recipient to SMART and attach the W-9 to the Supplier record.  

iii.  On the Witholding Supplier Information page in SMART, the type is 1099G and the Default Class is 06. If the recipient is already in SMART, check to see if 1099G-06 has been set up as an available type/class. If not, complete a TM-21 and attach to a Manage Engine Service Desk ticket to have it added to the supplier.

c.  ACH information should be collected from the recipient if possible, so that the payment can be processed electronically. 

i.  The DA-130 form can be used to collect the recipients banking information. The bank account information should be entered at the time the supplier is being entered in SMART and the DA-130 form should be attached.

ii.  For recipients that are already in SMART, they may already have ACH information in the system.  The completed DA-130 can be used to verify the bank account to be used by comparing the information on the form to the last four digits of the bank account in SMART.

iii.If the bank account on the DA-130 is not in SMART, a ManageEngine Service Desk ticket must be created to request for the update to the Supplier record.

iv.  Please do not post the DA-130 to a public web site.  E-mail is an acceptable method for sending and receiving a DA-130, but the e-mail should be deleted once it is no longer needed.

d.  Payments.  

i.  Payments cannot be processed as ‘single pay’ vouchers since the payments are taxable to the recipients.

ii.  The best practice would be to process payments as ACH.

iii.  The payments should be paid directly out of the CRF 3753 using the budget unit corresponding to the award.

1.  For Sub-recipient grants/awards      

a.  Use account code 550600 – Federal Aid to Qualified Non-State Entity.  

b.  Only include a value for Chartfield 2 on the accounting rows, to define the appropriate federal category, if you know for sure how the final expenditure for goods and services will be categorized.    Your agency must collect the federal reporting information from the recipient who ultimately expends the funds.

2.  For payment in exchange for goods or services

a.  Use the appropriate expense account code.

b.  A value must be used for Chartfield 2 for the federal category that aligns with the expense.

iv.  Continue to use the On-Budget Program Code Account 21662 for all COVID-19 spending so the total state impact can be captured, regardless of funding source.

5.  What if our agency receives a distribution from another SOK agency?

a.  When receiving a subrecipient grant/award

i.  Receipt the funds into the CRF 3753 using the budget unit corresponding to the award  and account code 766050 - Federal Subgrant Transfer In

ii.  ChartField 2 should not be used on transfer accounting rows.

b.  When receiving payment in exchange for goods or services

i.  Receipt the funds into the appropriate state fund and record the appropriate revenue account code.

6.  What if our agency receives a distribution of CRF funds from a local governmental entity?

a.  When receiving a subrecipient grant/award

i.  Receipt the funds into an appropriate federal fund, but not the CRF 3753 as fund 3753 should only be used for CRF funds received from the SOK.  Please submit a ManageEngine Service Desk ticket for assistance in appropriately segregating these funds/funding sources.

ii.  As the funds are spent on qualifying expenses, ChartField 2 may be used to help with reporting that will be required by the local governmental entity.

b.  When receiving payment in exchange for goods or services

i.  Receipt the funds into the appropriate state fund and record the appropriate revenue account code.

ChartField 2	Description
CRFADMN	Administrative Expenses
CRFPERS	Budgeted Personnel and Services Diverted to a Substantially Different Use
CRFTSTT	COVID-19 Testing and Contact Tracing
CRFECON	Economic Support (other than Small Business, Housing, and Food Assistance)
CRFETAN	Expenses Associated with the Issuance of Tax Anticipation Notes
CRFDSLN	Facilitating Distance Learning
CRFFOOD	Food Programs
CRFHOUS	Housing Support
CRFTELE	Improve Telework Capabilities of Public Employees
CRFMEDE	Medical Expenses
CRFNURS	Nursing Home Assistance
CRFPHSE	Payroll for Public Health and Safety Employees
CRFPPEQ	Personal Protective Equipment
CRFPHEX	Public Health Expenses
CRFSBAS	Small Business Assistance
CRFUEMB	Unemployment Benefits
CRFWCMP	Workers' Compensation
CRFOTHR	Items Not Listed Above

7.  SEFA and other Sub-Recipient Reminders specific to COVID-19 and CRF

a.  Follow grantor best practices in providing CFDA# for CRF funds at the time of the award agreement

b.  Please pass on guidance herein to sub-recipients within the SOK so they are clear on how to receive and expend those monies

c.  Distribution of CRF awards from the SOK to sub-recipients in FY21 will be included in the FY21 SEFA, regardless of the date associated with the eligible expenditures for sub-recipients receiving these awards

d.  Agencies are responsible for executing some form of a certification or MOA with all sub-recipients who will receive a grant directly from the agency

8.  CAFR Reminders specific to COVID-19 and CRF

a.  The Office of Accounts and Reports will reconcile the CRF funds and eliminate any duplication of expenditures if CRF funds have been both transferred to sub-recipients and spent as a sub-recipient of funds from counties

b.  The Office of Accounts and Reports will adjust the statewide FY20 expenditures to reflect the reimbursements from CRF funds processed in FY21 when the FY20 general ledger had already been closed.  If you record a receivable (between funds) for those reimbursements within your individual financial statements, please let OAR know so we can take that entry into account when booking these adjustments.

 

9.  When can agencies begin processing transactions in fund 3753?

a.  This fund will not be set up to allow the balance to go negative.  As such, expenditures cannot be processed until funds are transferred into the appropriate budget unit. 

b.  As of 9/28/20, budget unit 3772 will have appropriation authority.  As such, requisitions and PO’s can be initiated using the proper funding string. 

10.  When/how should we continue using program code 21662 in SMART for COVID-19 Transactions?

a.  It is advised that all spending on COVID-19 Transactions continue to include this program code so that we have a mechanism for capturing the total impact to the state across various funding sources.

11.  What is the deadline for spending the CRF funds

a.  Goods and services must have been received with related invoice dates on or before 12/30/20 for all spending of CRF funds.

b.  However, you may have an earlier deadline based on the reporting requirements from the Recovery Office as they will need to claw back and re-apply unused funds with sufficient time for the state to meet this final deadline.  Refer to reporting deadlines in the reporting memos from the Recovery Office for more information.

12.  What is the best practice for ensuring the proper funding source is assigned to each round of CRF funding?

a.  Receipt - If receipt was deposited in a different funding string, process a deposit adjustment to correct the funding source.

b.       Purchase Order

i.  If a PO has already been approved with a different funding source and has had no vouchers processed, cancel the PO and create a new requisition with the correct funding source. 

ii.  If a PO has already been approved with a different funding source and has had a voucher processed against it, reduce the PO to the vouchered amount, close the PO, and create a new requisition with the correct funding source for the remaining balance.

1.  In this scenario, please make a note on the new PO referencing the original PO so they can be easily identified in an audit review.

c.  Voucher - If a voucher has already been processed using a different funding source, process an AP journal voucher to correct the funding source. See job aid: Creating a Journal Voucher

d.  Corrections to the new funding source must be processed after funds have been transferred into the appropriate budget unit.

13.  How should payroll expenditures be processed to utilize reporting mechanisms in SMART?

Continue to follow the guidance in the Payroll Information Circulars (20-P-31, 20-P-33, 20-P-34, 20-P-38) for appropriately identifying COVID-19 related payroll expenditures.  For round 2 and round 3 reporting of these expenditures, agencies must process a GL journal entry in SMART to move the expenditures into the correct funding source, utilizing Chartfield2 to identify the appropriate federal reporting category.  Please reach out to the Heather DeBusk on the SHARP systems team for guidance on using task groups and task profiles in SHARP which can assist in using delivered payroll reports to complete the appropriate journals to charge the Chartfield2 values in SMART.

14.  How can agencies pull the information out of SMART to populate the required reporting templates?

a.       The SMART Team has provided three queries to assist agencies with completing the reporting template when fund 3753 was used on the original transaction

i.  KS_COVID_RPT_FUND_3753_AP  (Accounts Payable Module)

1.  This will include all AP vouchers using fund 3753.   The result includes information needed for the reporting template, like Chartfield 2, Supplier ID, Supplier Name, Voucher ID, Amount, and Contract ID.

ii.  KS_COVID_RPT_FUND_3753_EX  (Expenses Module)

1.  This will include all Expense Reports using fund 3753.  The result includes information needed for the reporting template, like Chartfield 2, Payee, ER ID, and Amount.

iii.  KS_COVID_RPT_FUND_3753_AR  (Accounts Receivable Module)

1.  This will include all deposits using fund 3753 in case your agency has received funds from another agency or has received a refund from a supplier.  The result includes information needed for the reporting template, like Chartfield 2, Deposit ID, Amount, Customer ID, and Customer Name.

b.  Additional SMART Instructions:

i.  SMART Prompt: Agency Business Unit

ii.  There is no date range limitation, so all transactions using fund 3753 are included in the result.

iii.  The best option for executing would be to use Schedule Query.

c.  To identify original transactions that used other funding and subsequently were corrected to fund 3753, use the GL Actuals query, KS_GL_ACTUALS_DETAIL_ALL_DT.

i.  The original expenditure accounting date, vs. the date of the correcting entry, should be used when determining which expenditure to include in the required reporting template.

ii.  The best option for executing would be to use Schedule Query.

d.  Utilizing query results:

i.  Review the data and populate the reporting template to account for the transactions your agency processed within the time period directed in the instructions.  

ii.  Transfers to and from the Governor’s Office should not be included on the reporting template.

iii.  The total amount of expenses should tie to the distribution amount your agency received, net of returns.

15.  Our agency’s procurement card transactions do not have a supplier ID or supplier name.  If a CFR expense was included in our procurement card bill, do we leave those fields blank on the CRF report?

If you don't have a Supplier ID you cannot complete that, but you should include the actual Supplier/Vendor/Merchant Name (not UMB).  If the expenses are related to a contract, you must complete the Supplier Name, Supplier ID, and Contract ID.

16.  If we’ve paid with our procurement card bill to UMB and it includes a CRF expense, what transaction number should be used on the CRF report:  Voucher # to UMB, or journal number when charges were posted to departments? 

Voucher ID should be the voucher to UMB as it would contain the most information about the transaction.

17.  If we’ve paid with a CRF expense with our procurement card, what transaction date should be used in the CRF report:  date we paid UMB, date we paid vendor with credit card, or date the charge was allocated to the department?

The date to be used on the CRF report would be the date the credit card was used to pay the supplier.