October 21, 2009 Sunflower Project Monthly Conversion Meeting – October

October 21, 2009

Sunflower Project Monthly Conversion Meeting – October

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Today’s Topics

• General Conversion Updates

• Conversion Tasks

• General Conversion Updates

• Conversion Tasks

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• The Sunflower Project will load all State agencies as interfund customers/vendors in SMART.

• A task will be distributed in November asking agencies to provide a contact (either an individual or distribution list) for each SOKI group.

General Conversion Updates Accounts Receivable/Accounts Payable

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• The Sunflower Project will not convert open transactions from SOKI into SMART.

• At the time of the cutover to SMART, agencies need to close out all pending transactions in SOKI—including open deposits/receipt vouchers and outstanding interfund transfers.

• If there are any open transactions in SOKI at the time of the cutover to SMART, agencies will enter these as new transactions in SMART after go-live.

General Conversion Updates Accounts Receivable/Accounts Payable

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Asset Cost

What amount do I put in the conversion file for donated assets? • Use the Fair Market Value (FMV) at the time of acquisition.

What amount do I put in the conversion file for assets less than $5000 that were acquired a long time ago for which there is no way to determine the actual purchase cost? • Use the Fair Market Value (FMV) at the time of acquisition.

General Conversion Updates Asset Management

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Financed Assets

• For assets acquired using some form of financing (e.g. – MLPP, FCIP, bond debt), State policy is to report the total cost of the asset in the year of acquisition.

• In the conversion file, agencies should report the entire cost amount that will ultimately be paid, even if your agency is still making payments.

• Example: An asset is acquired on 01/15/2008. Your agency is going to make five equal annual payments ($50,000/year) to pay for the asset. The asset will ultimately cost $250,000. In your SMART conversion file, the cost should be recorded as $250,000 with an In Service Date of 01/15/2008.


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Current Year Acquisitions/Retirements

• Agencies should keep their asset inventories and conversion files updated throughout FY 2010. This should include new asset acquisitions, updates to asset information, and asset disposals.

• As the DAFR8460 Capital Outlay Expenditures Report is made available throughout the year, agencies should update their asset inventories and conversion files to include new capital asset purchases.


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Leased Assets

Through Task ID 215, the Sunflower Project collected information fromagencies about whether they have leased assets. This task revealed that the following agencies have leased assets:

• 034 – Adjutant General• 100 – Kansas Board of Barbering• 105 – State Board of Healing Arts• 234 – Fire Marshal• 300 – Department of Commerce• 328 – State Board of Indigents’ Defense Services• 507 – Parsons State Hospital & Training Center• 565 – Department of Revenue• 629 – Department of Social & Rehabilitation Services• 709 – Kansas Water Office


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Leased Assets – Continued

• The Sunflower Project will send out a communication at the end of October to confirm that these are the agencies that have leased assets so that we can work with you to plan the effort for getting these into SMART.

• Leased assets should be excluded from the conversion files that are currently being sent to the Sunflower Project.


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Leased Assets – Continued

A capital lease is treated as a financial asset. It has a lease term and lease payment amount. The lease is carried on the balance sheet and is periodically depreciated. A capital lease meets the following criteria under FASB 13:

• There is an ownership transfer at the end of the lease.• The lease contains a bargain purchase option (BPO).• The lease term is 75 percent or more of the asset life.• The present value of the minimum lease payment is 90 percent or more of

the fair market value of the asset.

An operating lease is treated as a nonfinancial asset to which no cost information is associated. It is normally expensed and can include rent and monthly payments that are expensed periodically. An operating lease is any lease that does not meet the criteria under FASB 13.


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Task Due Date

Agency extracts data—or inputs it into the data entry

template— and sends initial files to Sunflower Project

for assembly testing (Task ID 23)

9/21/09

Agency cleans up data and sends complete files to the Sunflower Project for Mock Conversion #1 (Task ID 124)

11/5/09


01/18/10


03/05/10

Conversion Tasks

Task ID 23 - Assets: 49/80 agencies submitted test files- Customers:1/4 agencies submitted test files- AR Pending Items: 0/1 agency submitted a test file- Projects: 3/4 agencies submitted test files- Purchasing Contracts: 0/1 agency has submitted a test file

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• If your file passes “Mock 1” testing and there are no changes to your data before “Mock 2”, please let us know— a new file does not need to be submitted.

• If there are critical errors in your file that prevent us from loading it, we may ask you to adjust the data prior to the next due date.

• If your agency is signed up to do a flat file conversion for customers (CNV003), open receivables (CNV012), projects (CNV006), purchasing contracts (CNV008) and your plans change (i.e., you decide not to perform one of these data conversions via flat file upload), please let us know by emailing [email protected].

Conversion Tasks

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Feedback Form

Conversion Tasks

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Asset Conversion File – Common Feedback

• Value in field is too long• Description > 30 characters• Short Description > 10 characters • Model > 30 characters

• Required field left blank• Description• Asset Subtype• In Service Date• Quantity • Cost• Business Unit• Location• Serial ID: Required for IT hardware assets

Conversion Tasks

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• Tag Number: Recommended to be entered for each asset

• Invalid field value• Asset Subtype• Department• Program Code• Fund• Budget Unit• Asset Location• Area ID• Employee ID

• Invalid date format. Must be MM/DD/YYYY• Acquisition Date• In Service Date

Conversion Tasks

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• Cost: Should not have a $ sign

• Interface ID should be numbered sequentially for each asset

• Interface Line Number should be numbered sequentially for each of an asset’s funding lines

• Business Unit: Used ‘123’ instead of ‘12300’

• Split-funded assets entered incorrectly

Conversion Tasks

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How are Excel data entry template files submitted for the Assets

conversion?

• Email the file to [email protected] (Subject line: Data Conversion Test File).

• Use the following file name:

XXX_CNV009 Asset Data Entry Template_MMDDYYYY.xls(x).

Conversion Tasks

Agency #

Date you are submitting

the file

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How are flat files submitted?

• Submit the flat file to the secure locations on the DISC mainframe.

• All test files will have a “T” before the file direction.

• Use the following format: XX.TTOSMRT.CN03.XXXX.DYYMMDD.THHMMSS.IN

Conversion Tasks

Agency code

“T” for test

SMART Conversion #:• CN03: Customers• CN06: Projects• CN08: Purchasing Contracts• CN09: Assets• CN12: Pending Items

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Conversion Support

•Email [email protected] with questions. Include ‘Conversion’ in the Subject line of all emails.

• Schedule Office Hours with the SMART Conversion Team. Email [email protected] to schedule an appointment.

•Attend Monthly Conversion Meetings.

• Visit secure SMART website to obtain file layouts: http://www.da.ks.gov/smart/

Click on Technical Resources tab at top of page. Don’t have access? Email [email protected].

• Provide feedback on how we’re doing by completing the evaluation sent to you after this meeting.

• Refer to Q&A’s from this meeting on the SMART website. Click on ‘Questions & Answers’ on the home page

November’sConversion Meeting

Tuesday, November 179:00 – 10:00

LSOB Room 106

Documents

October 21, 2009 Sunflower Project Monthly Conversion Meeting – October