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KSRE Employee Resources

EXTENSION ADMINISTRATIVE HANDBOOK - USE OF EXTENSION FUNDS

Chapter 2 Section B4

B4.     Classifying Expense and Posting on KSU 8-6

The following recommendations are made for recording warrant checks under the appropriate budgeted column on KSU 8-6:

Column 1: Printing, Audit, Bonds, Liability Insurance

  1. Public notices in newspaper.
  2. Advertisements in newspapers (help wanted, etc.).
  3. Printing of newsletters and Extension newspapers.
  4. Audit of County/District Extension financial business.
  5. Treasurer’s bond (for largest amount expected to be on deposit during the year).
  6. Liability Insurance for Executive Board and Program Development Committee Members, employees, and volunteers.

Column 2: Telephone

Enter only expenses paid for telephone services, cell phone stipends, internet fees, and wireless access.

Column 3: Rent, Heat, Light

  1. Rent on Extension office space.
  2. Water, heat, electricity.
  3. Janitorial service (contracted).
  4. Rent for meeting rooms (schools, churches, public buildings, etc.).

Column 4: Supplies,Stationery,andPostage

  1. Paper, notebooks, envelopes, copy charges, and other office supplies.
  2. Film and development of film.
  3. Stamps, post office box rent, and postage meter rent.
  4. Shipping costs for supplies, etc.
  5. Other commodities and equipment costing less than $200.00.

Column 5: Equipment, including Auto Exchange

This classification is for the purchase of items costing $200.00 or more, and expected to be useful for two or more years. All equipment valued at $200 or more must be recorded on the annual inventory (except services and repairs).

  1. Office furniture and fixtures.
  2. Computers, telephone, copiers, and other duplicating machines.
  3. Typewriters, calculators, and other office equipment.
  4. Cameras, lenses, flash attachments, tripods, projectors, TV, video equipment, screens and other photographic items.
  5. Sewing machines, shears, portable scales, and other equipment.
  6. The original cost of the vehicle (may be a shared expense with column 12, Capital Outlay), less trade-in allowance.
  7. Service contracts on equipment, repair of equipment (do not show on inventory).

Column 6: Educational Program Support (Miscellaneous)

  1. Expenses for annual meetings, board meetings, and PDC meetings including meals.
  2. Subscriptions to magazines and newspapers for office use, books costing less than $200.00, and items purchased for demonstration purposes.
  3. Bank service charges, penalties, etc.
  4. Insurance on property and equipment other than automobiles.
  5. Non-travel and non-subsistence expenses of delegates and agents, judging fees and mileage.
  6. Registration fee for Extension training for county personnel.
  7. Marketing items to support the local unit marketing plan.

Column 7: Travel

  1. Vehicle operation costs, including gasoline, oil, tires, repairs, insurance.
  2. Mileage or public carrier fare for agents (claim must be submitted on KSU 8-17).

Column 8: Subsistence (meals and lodging)

Daily subsistence as provided by Kansas statutes and submitted on form KSU 8-17 can be paid only on travel away from official headquarters (must be more than 30 miles from official headquarters and stay overnight).

Column 9: Salaries

  1. Salaries of County/District Extension agents, secretaries, and others employed by local Extension units. The following should be included:
    a.   Net salaries to employees (the actual amount shown on the warrant check).
    b.   KSU checks to agents.
  2. * State and federal withholding tax, Social Security, and/or Medicare, but only the exact amount which was withheld from employees.
  3. * Kansas Public Employees Retirement Systems (KPERS), health benefits when paid, but only the exact amount which was withheld from employees.
  4. * Any other amount which has been withheld from an employee and is paid to another agency (United Way, etc.).
  5. The KSU invoice shows the portion of County/District Extension Agent’s salary which will be entered on form KSU 8-6 each month (Exhibit M). 

When items, denoted by *, are withheld from a salary which is classified non-appropriated funds, they should be recorded as non-appropriated funds when paid.

Column 10: Employer’s Contribution

  1. *All payments to Social Security and Medicare, other than the amounts withheld from employees’ salaries, excluding penalties.
  2. *All payments to KPERS, other than the amounts withheld from employees’ salaries.
  3. *Worker’s Compensation Insurance.
  4. *Unemployment taxes and insurance.
  5. *Health benefits, other than the amounts withheld from employees’ salaries.
  6. The KSU invoice will show the local Extension unit portion of Agent’s benefits

When items, denoted by *, are withheld from a salary which is classified non-appropriated funds, they should be recorded as non-appropriated funds when paid.

Column 11: Non-Appropriated Funds (Ed Services)

County/District Extension units may collect fees for specific services which require special equipment or personnel such as a soil testing service and other educational services when approved by the Director of Extension. All such receipts and expenditures must be provided for in the budget, and entered on the local Extension unit monthly financial statements.

KSU 8-9, “County/District Extension Financial Statement- Non-Appropriated Funds (Ed Services)” (Exhibit D), is to be used for the records of all non-appropriated fund accounts which are maintained locally and approved by the Director of Extension. A local unit can maintain as many different sub- accounts as desired to identify and track the various sources of non-appropriated funds being receipted into or expended out of the local Extension account.

For example, a local Extension Unit could charge a registration fee or seek donations or sponsorships

that would allow the local unit to provide program incentives/prizes for educational programs. Expenditures for such items as prizes or program incentives should then be tracked in the non- appropriated funds line item and would not fall under the spending restrictions that exist in Smith Lever or State Extension statutes for appropriated tax dollars. (There are IRS requirements for providing a 1099 form for total cumulative value of prizes/gift cards or other payments to an individual when the cumulative value exceeds $600, thus requiring individual tracking of all expenditures for prizes and gift cards during the calendar year.) If fees or sponsorships for ribbons are receipted into the non-appropriated funds line item, then purchase of ribbons would be an accepted expenditure if expended in the non-appropriated funds line item as a non-appropriated expenditure.

Extension Councils and Districts are instrumentalities of the State of Kansas and as such, are not subject to federal income tax or required to file federal income tax returns. Donations to extension councils or district to support educational programming, including the work of Master Gardeners, Master Food Volunteers, 4-H Youth Development Clubs, or other educational programming, may be tax deductible and should be deposited into the local Extension unit account in the non-appropriated funds line item.

An annual charitable donation receipt is mandatory if a donor has donated a cumulative amount above

$250 (in cash or kind), and seeks a deduction from their federal income tax for charitable contributions. Please refer to the Tax Issues document on the Employee Resources Web site for additional information.

  1. Cost Recovery: (Fee Account) Money collected to cover costs associated with educational activities (e.g., registration fees, sponsor fees, soil/forage test fees, and sales of tangible personal property to other tax exempt organizations). These monies would then be used to pay for educational expenses such as meals, speaker fees, facility and equipment rentals, handouts, reimbursements and etc.
  2. Sales: (Sales of Tangible Personal Property) Money collected from the sale of items purchased for re- sale (e.g., farm account books, Walk-Kansas t-shirts, for sale publications, radon test kits, and etc.). Note: These transactions would generally require sales tax to be collected and paid to the Kansas Department of Revenue.
  3. Grants: Generally includes program funds dedicated to a specific program or program area with expectations for certain objectives or program deliverables to be accomplished (e.g., items related to program supplies, administrative overhead, salaries and benefits included in the grant). Expenses from each grant should be tracked separately. Note: An Extramural Funds form (KSU 1-13) should be completed by the board for each grant.
  4. Gifts: Generally includes donations from individuals or businesses without expectations for specific program deliverables (e.g., individual donations, contributions from businesses) Note: Please refer to the “Tax Issues for Local Extension Offices” publication found on the Employee Resources Website for information regarding recommended practices for record keeping and acknowledgement of donations.

Sub-Accounts for Non-Appropriated Funds

Each non-appropriated fund sub-account should be in one of the four non-appropriated fund categories of Cost Recovery, Sales, Grants or Gifts and sub-accounts should be designated by the name of the sub-account, e.g.:

Cost Recovery: Health programs; 4-H Camp; Soil Tests, etc.

Sales: Radon test kits; Account Books, etc.

Grants: FNP; KidZone; TechWiz, etc.

Gifts: 4-H program; FCS program; Donations for general use, etc.

Funds deposited for non-appropriated fund accounts are to be recorded on KSU 8-7b, and 8-9 report form. The date of deposit is recorded in the date column.

Complete the necessary KSU8-7b, and 8-9 form before preparing KSU8-6 and KSU 8-7a.

Record each non-appropriated fund (ed services) expenditure on KSU 8-6 and the 8-9 form.

Column 12: Capital Outlay (Equipment Replacement)

  1. Equipment (including auto exchange) that is paid from reserve funds.
  2. Other items specifically designated by the Extension Board to be paid from Capital Outlay (Equipment Replacement) Funds.