October 21, 2009 Sunflower Project Monthly Conversion Meeting – October

2 Today’s Topics General Conversion Updates Conversion Tasks General Conversion Updates Conversion Tasks

3 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

4 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

5 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

6 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. General Conversion Updates Asset Management

7 Current Year Acquisitions/Retirements Agencies should keep their asset inventories and conversion files updated throughout FY 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. General Conversion Updates Asset Management

8 Leased Assets Through Task ID 215, the Sunflower Project collected information from agencies 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 General Conversion Updates Asset Management

9 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. General Conversion Updates Asset Management

10 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. General Conversion Updates Asset Management

11 TaskDue 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 Agency cleans up data and sends complete files to the Sunflower Project for Mock Conversion #2 (Task ID 25) 01/18/10 Agency cleans up data and sends complete files to the Sunflower Project for Mock Conversion #3 (Task ID 224) 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

12 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 ing Conversion Tasks

13 Feedback Form Conversion Tasks

14 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

15 Asset Conversion File – Common Feedback 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

16 Asset Conversion File – Common Feedback 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

17 How are Excel data entry template files submitted for the Assets conversion? the file to (Subject line: Data Conversion Test Use the following file name: XXX_CNV009 Asset Data Entry Template_MMDDYYYY.xls(x). Conversion Tasks Agency # Date you are submitting the file

18 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

19 Conversion Support with  Include ‘Conversion’ in the Subject line of all s. Schedule Office Hours with the SMART Conversion Team.  to schedule an Attend Monthly Conversion Meetings. Visit secure SMART website to obtain file layouts:  Click on Technical Resources tab at top of page.  Don’t have access? 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’s Conversion Meeting Tuesday, November 17 9:00 – 10:00 LSOB Room 106