What should you do when you receive a payment reimbursing your entity for an expense already incurred? Kansas Statute 79-2934 allows you to record the reimbursed expenses as a reduction to the original expenditure line item. For example, what should you do if you receive a payment from a grant reimbursing you for overtime salaries you paid out of the general fund due to a storm? By statute you are able to code the grant back to the general fund salaries expense account where the original salaries were coded. By coding the reimbursement in the expense line item you reduce the expenditures for the year returning the original budget authority to the line item. The statute allows the expense account to be reimbursed as long as the expenditure was made during the current budget year. If you are reimbursed for a prior year expense you would code it to revenue in the current year.

For additional information see Budgeting for Kansas Municipalities from the Kansas Division of Accounts and Reports at http://www.da.ks.gov/ar/muniserv/Complete%20manual.pdf (pages 2, 107 and 111). You may also contact Lewis, Hooper & Dick, LLC at (620) 275-9267.

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