1. Munis Federal Reimbursement File
Kim York KDE Munis Team Analyst

2. Federal Reimbursement Process
Districts reimburse KDE for the employer portion of health insurance, life insurance, HRA costs and the administrative fee paid on behalf of school district employees whose salaries are paid from federal funds.
ONLY BASE PAY is considered for classified employees. Base and extended days are used to calculate the reimbursement for certified staff.
Extra earnings are not considered when calculating the federal portion of these costs. Payroll must be processed using the appropriate object codes for the process to work properly.
Supplemental earnings for classified employees should be paid using object code or 0132.
Supplemental earnings for certified employees should be paid using 0112, 0113 or depending on the type of supplemental pay the employee is receiving.

3. Generating the Federal Reimbursement File
Select Federal Reimbursement from the main KY Employee Benefits screen.
Select Define and enter report criteria as follows:
Billing Year=Calendar Year for the file.
Billing Month =Month for the file.
Payroll Date Range =Calendar Month; Example-March 2017 file – date range would be 03/01/ /31/2017
Excluded Payrolls =Run & Warrant of any payroll that needs to be excluded from the federal reimbursement process.
Billing Year
This is the calendar year for the file.
Billing Month
Select the month for the file.
Payroll Date Range
This range is based on a calendar month. If generating a file for March 2017, the date range would be 03/01/2017 – 03/31/2017.
Excluded Payrolls
This section is used to exclude payrolls that aren’t needed to do the calculation for the month’s federal reimbursement file. It is generally used to exclude payrolls for reimbursements processed during the summer.
Example: If six payrolls are done in June that cover June, July and August for summer payrolls health insurance, you would exclude the payrolls not needed for each month’s calculation. For instance, July’s federal reimbursement file wouldn’t use June and August payrolls so the warrants for June and August would be entered into the Excluded Payrolls section.

4. Generating the Federal Reimbursement File
Select Execute then select Yes to the Ready to Generate Reimbursements message. The execute process will overwrite previously generated records for the specified month/year. Select OK to the next message that appears.

5. Federal Reimbursement Maintain (Update-Delete-Add)
Records can be manually deleted, added or updated in the Maintain screen of the Federal Reimbursement program.
An employee can be added to the file even if an employee doesn’t have federal earnings in the specified month/year. The program looks back 12 months for federal earnings.
A record can have amounts in both HRA and Health Insurance fields.
If an employee terms BEFORE the last day of the month, the employee is not reported on the federal reimbursement file. If employee terms ON the last day of the month, employee will report on that month’s file.

6. Federal Reimbursement Maintain (Update-Delete-Add)
Example of a Manual Change:
Employee was reported in the previous month as having waived coverage with HRA but should have been reported as having health insurance coverage.
Update the Fed HRA Calculate field by inserting the amount with a negative sign in front of the number.
Then update the Fed Health Insurance field to reflect the total of the previous month and current month’s federal health insurance cost (example uses $500 per month as employer health insurance cost).

7. Federal Reimbursement G/L Post
The G/L Post step must be performed in order for the reimbursement amounts to post to the appropriate general ledger account codes. Select G/L Post from the Federal Reimbursements screen.

8. Federal Reimbursement G/L Post
Select Define and enter the criteria then click Accept. Select Output-Post and choose an output method. If no errors are received, select Yes in the Post Updates dialog box. This step creates a journal with a source code of PRK.

9. Federal Reimbursement Electronic File
When records have been created and all changes have been made, select Electronic File. This step produces the file that is submitted to KDE. Make note of the file name at the bottom of the screen. This is the file that will be submitted to KDE.

10. Federal Reimbursement Journal Entry to Post Payment to Cash Account
A journal entry is required after payment has been made.
During the federal reimbursement posting process, the insurance amounts automatically post to a salary and benefits payable account. Since payment is made electronically, a journal must be entered to post the payment. In most districts, the balance sheet object code used for federal reimbursement posting is If another balance sheet account is set up, that account will be used when posting the payment. The example below uses 7461 as the liability account and 6101 as the cash account.
Sample Journal Entry:
Debit $5,000
Credit $5,000
Note: The Fix option can be used if errors occur when posting to the G/L.

11. FEDERAL REIMBURSEMENT G/L POST – WHEN ERRORS ARE RECEIVED

12. Federal Reimbursement G/L Post- When Errors Are Received
If an error is received, the message below will display: Click Yes the produce an error listing and choose a method of output.

13. Federal Reimbursement G/L Post – When Errors Are Received
Example of error report:
The account shown on the error report doesn’t exist in the General Ledger master. There are two options.
If you feel the account is correct, consult with the appropriate person in your Finance Department to determine if the account needs to be added to Account Master.
If the account is incorrect, select Fix to change the account to the appropriate GL account for posting.

14. Federal Reimbursement G/L Post – When Errors Are Received
If the account is incorrect and changes need to be made prior to posting, select Fix on the G/L Post screen. The next screen that displays will show the accounts that are in question.

15. Federal Reimbursement G/L Post – When Errors Are Received
Select Update and enter the new Org/Object/Project for posting: Select Yes to Proceed with Update message when you’re ready to post the change. Select Return to go back to the G/L Post screen and perform the G/L Post step again. After corrections have been made and G/L Post is complete, create the electronic file and enter the journal to record the transaction.

16. GENERATING THE FEDERAL REIMBURSEMENT FILE DURING SUMMER MONTHS

17. Generating Federal Reimbursement File During Summer Months
Typically, employees who are employed less than 12 months receive multiple paychecks during the month of June.
The deductions taken in these payrolls for health and life cover premiums for June, July and, possibly, August.
During the Generate process, warrants can be excluded when generating the federal reimbursement files during the summer months.
NOTE: After each successful Generate, perform the following steps prior to generating the next June file:
G/L Post
Electronic File

18. Generating Federal Reimbursement File During Summer Months
Example District:
Pays first check of new year on September 1st to teachers, instructional assistants, bus drivers, etc.
Pay amount is divided equally between 24 pay periods
Results in six (6) checks being processed in June to pay remainder of contract and cover premiums for the summer months.
Example Warrants:
– “Normal” June Check
– “Normal” June Check
– July Check for 10 month staff
– July Check for 10 month staff
– August Check for 10 month staff
– August Check for 10 month staff

19. Generating Federal Reimbursement File During Summer Months
District chooses to pay all summer premiums in June and will need to create three separate files.
Generate Screen for June #1 (June) Federal Reimbursement – Excludes all payrolls except “Normal” June payrolls:
After generating the 1st June file,
Perform G/L Post and Create the Electronic File.

20. Generating Federal Reimbursement File During Summer Months
District chooses to pay all summer premiums in June and will need to create three separate files in June. Generate Screen for June #2 (July) Federal Reimbursement – Excludes all payrolls except July checks: After generating the 2nd June file, Perform G/L Post and Create the Electronic File.

21. Generating Federal Reimbursement File During Summer Months
District chooses to pay all summer premiums in June and will need to create three separate files in June. Generate Screen for June #3 (August) Federal Reimbursement – Excludes all payrolls except August checks: After generating the 3rd June file, Perform G/L Post and Create the Electronic File.

22. Generating Federal Reimbursement File During Summer Months
When the 10 and/or 11 month employees are all paid in June and federal reimbursement files have been created and submitted to KDE in June, the normal process is followed for July and August. Date Range on the Generate screen is set to only that month. (i.e., July or August). This will pull only the 12 month employees.

23. Items to Note: “Did I already pay that premium in June?”
Your district pays 24 checks per year on the 15th and 30th of each month. Your 10 month staff receive their first check on August 30th... pay close attention that you aren’t paying premiums a second time. Always review the Maintain screen prior to posting and creating the electronic file.
“Did I already pay that premium in June?”

24. Items to Note:
You have an employee who is transferred from a teaching position to a 12 month administrator’s position and begins work July 1 and receives a check in July. The employee will generate into the July file if his/her earnings are federal. You will need to remove this employee from the Maintain screen prior to creating the electronic file and performing G/L Post.
Bob is excited that he has been promoted to an administrator!

25. Generating Federal Reimbursement File During Summer Months
If your district chooses to not pay all July and August federal reimbursement in June, you’ll follow the same process but the date range will span multiple months on the Generate screen. (i.e., 06/01/2016 to 07/31/2016; 06/01/2016 to 08/31/2016.) Then enter the Excluded Payroll warrants for each month. Example: July Reimbursement: After generating the July file, perform G/L Post and Create the Electronic File. Same process applies for August but change the date range and enter the appropriate excluded payrolls.

26. Submitting the Federal Reimbursement File
Access the submission site by clicking this link:
Enter your User Name and Password.

27. Submitting the Federal Reimbursement File
The File Submission page should appear on the screen. If it does not appear, click the File Submission tab. Choose Browse to find the file to be uploaded.
Find the file, click on it then select Open.

28. Submitting the Federal Reimbursement File
Click the Upload button. After the file has finished uploading, a message will appear on the screen stating that the file successfully uploaded.
If an incorrect format message appears on the screen, open the file and confirm that it is in the correct format. Example:
If the file is in the correct format but does not upload, contact Gail Cox with Division of District Support at , ext or Jackie Chism at , ext

29. Questions on State Reporting?
The KDE Munis Team has two shared team boxes for support.
Questions to the team box will ensure you get a more timely response as individual team members may be in meetings or working on projects.
Questions on Health Insurance Imports, ACA, or KY Employee Benefits Program?
Any other questions?
KASBO Spring 2017

30. KDE Munis Blog
The KDE Munis Team maintains a blog with all communication that is ed.
Do you think you missed an or deleted an , check the blog!
The blog can be found here KDE Munis Blog or the support box to request the link.
KASBO Spring 2017

31. The End! Have a Great Day!!!