UH System Policies and Procedures
- Board of Regents Policies
- Executive Policies
- + 1. General Provisions
- + 2. Administration
- + 3. Organization
- + 4. Planning
- + 5. Academic Affairs
- + 6. Tuition, Financial Assistance, and Fees
- + 7. Student Affairs
8. Business and Finance
- 025. Fiscal Responsibilities within the University
- 026. Appointment of Fiscal Administrators and Assistant Fiscal Administrators
- 200. Overview
- 215. Definitions
- 220. General Principles
- 225. Limitations in Purchasing
- 230. Contracting for Services
- 235. Competitive Sealed Bidding
- 240. Competitive Sealed Proposals
- 245. Professional Services Procurement
- 246. Professional Services Procurement for Architects, Engineers, Land Surveyors, and Landscape Architects
- 250. Small Purchases
- 255. Sole Source Procurement
- 260. Emergency Procurement
- 265. Specialized Purchasing
- 266. Purchasing Cards
- 270. Types of Contracts
- 275. Contract Formation and Administration
- 281. Construction and Professional Services in Support of Construction
- 285. Cost or Price Reasonableness
- 290. Requirements of Federally Funded Purchases
- 295. Small Business and Small Disadvantaged Business Programs
- 300. Interests in Real Property
- 305. Use of Non-University Space and Facilities
- 350. Concessions
- 375. Fund Raising by a Recognized University Affiliated Volunteer Group or Non-Profit Organization
- 400. Risk Management Guidelines and Procedures
- 450. Records Management Guidelines and Procedures
- 509. Property and Equipment Overview
- 510. Loaned Property, Personally Owned Property, and Collections
- 512. Identification of Property
- 516. Property and Equipment Valuation (formerly Valuation of University Equipment)
- 521. Property and Equipment Acquisition
- 523. Receiving Property and Equipment
- 524. Property and Equipment Maintenance
- 530. Property and Equipment Storage and Movement
- 536. Subcontract Control of Government Property
- 539. Property and Equipment Record Maintenance
- 540. Physical Inventory
- 541. Property and Equipment Management Reports
- 542. Property and Equipment Utilization
- 543. Property and Equipment Transfer and Retirement
- 550. Capitalization
- 555. Impairment of Capital Assets and Retirement of Real Property
- 560. Post-Issuance Tax Compliance Procedures for Tax-Exempt and Build America Bonds
- 561. Tax Treatment of Non-Service Financial Assistance for Individuals
- 571. Administrative Procedure AP 8.571, University of Hawai‘i at Mānoa Athletics Ticket Sales for Events that are not University of Hawai‘i Athletic Competitions and that Involve Payments to Non- University of Hawai‘i Entities
- 602. General Ledger
- 611. Account Code
- 612. Establishment and Maintenance of Account Codes
- 615. Object Codes
- 617. Revenue and Higher Education Function Codes
- 619. Fund Groups
- 620. Gifts
- 621. Delinquent Financial Obligation Tax Setoff Hearings
- 622. University Endowments
- 635. Accounting For Leases
- 636. Supply Inventory
- 641. Journal Entries
- 650. Continuation Accounts
- 651. Non-Student Accounts Receivable and Delinquent Financial Obligations
- 671. Year-End Accounting Data
- 685. Cancellation or Replacement of University of Hawaii General Account Checks
- 686. Terminal Vacation Payout
- 701. Receipting and Depositing of Funds Received by the University
- 702. Administrative Procedure AP 8.702, Establishment of Electronic Funds Transfer and Receipt of Funds
- 710. Administrative Procedure AP 8.710, Credit Card Program
- 711. Administrative Procedure AP 8.711, Electronic Payments via University Websites
- 731. Student Accounts Receivable and Delinquent Financial Obligations
- 740. Dishonored Checks
- 750. Establishment and Maintenance of Change Funds
- 760. IRS Compliance for Reporting Cash Payments Over $10,000
- 770. Student Refunds
- 806. Roles and Responsibilities for Payment Transaction Processing
- 808. Bank Wire Transfer
- 851. Employee Out-of-State and Intra-State Travel
- 852. Personal Automobile Mileage Voucher
- 853. Mobile Devices and Related Communications Services Program
- 863. Relocation Allowances
- 867. Information Reporting on 1099-MISC and Backup Withholding on Payments
- 868. Reporting and Withholding on Payments to Nonresident Aliens and Foreign Corporations
- 870. Pay Types and Pay Days
- 871. Distribution and Security of Paychecks
- 872. Emergency (Priority) Payroll
- 873. Payroll Processing Cycle Deadlines
- 876. Overtime Authorization and Compensation
- 877. Salary and Wage Overpayment Recovery
- 879. Post Death Payments
- 926. Administrative Procedure, AP 8.926 Administrative and Financial Management Requirements for Extramurally Financed Research and Training Programs/Activities of the University of Hawai`i (UH
- 927. Administrative Procedure, AP 8.927 Facilities & Administrative Cost Charges in Contracts and Grants
- 951. Accounting for Federally Matching Equipment Grants
- 956. Financial Conflicts of Interest (FCOI) for Public Health Services (PHS) Grants, Cooperative Agreements and Contract
- + 9. Personnel
- + 10. Land and Physical Facilities
- + 11. Miscellaneous
- + 12. Research
- Abolished Procedures (Post Oct. 2014)
- Archived AP
UH‐Related Laws and Rules
- Hawaiʻi Revised Statutes (HRS) 304A
- Hawaiʻi Administrative Rules (HAR) Title 20
Administrative Procedure 8.877 Administrative Procedure 8.877
Salary and Wage Overpayment Recovery
Administrative Procedure Chapter 8, Business and Finance
Administrative Procedure AP 8.877, Salary and Wage Overpayment Recovery
Effective Date: April 2016
Prior Dates Amended: March 2006, November 2006
Responsible Office: Office of the Vice President for Budget and Finance/Chief Financial Officer
Governing Board and/or Executive Policy: EP 1.102, Authority to Manage and Control the Operations of the Campus
Review Date: April 2019
To establish uniform procedures and responsibilities for the recovery of salary and wage overpayments in accordance with University of Hawai‘i (UH)
No policy specific or unique definitions apply.
III. Administrative Procedure
A. General Responsibilities
1. All leaves earned and taken shall be recorded in a timely manner in accordance with applicable bargaining unit contracts so as to minimize and to prevent salary overpayments.
2. University departmental staff shall take immediate action to recover any salary and wage overpayment.
3. Employees who are erroneously overpaid should voluntarily and immediately repay the full amount of the overpayment.
4. Supervisors are responsible to monitor paid leave balances of subordinate employees to ensure that a salary overpayment does not occur for any employee whose cumulative paid leave balances fall below ten (10) working days of vacation and ten (10) working days of sick (or 160 hours).
When a salary overpayment occurs, University departmental staff shall take immediate action to recover the overpayment and place the employee on “after-the-fact payroll” if applicable.
1. Determination. Immediate supervisors are responsible to identify salary overpayments as they occur and to notify their respective human resources office within one (1) week of discovery unless the overpayment is a direct result of a pending workers’ compensation claim. For this situation, the overpayment determination must then be made within one (1) month of the workers’ compensation decision.
a. After the Fact Payroll Placement. If a salary overpayment occurs and the employee meets either of the following conditions below, the employee shall be placed on “after-the-fact payroll” schedule as a non-salaried employee. To comply with 78-13(a), HRS, which requires an employee be paid twice a month, implementation of “after-the-fact” payroll should be done over two (2) pay periods. For the first pay date following notification, the employee should be paid for half of the pay to which he is entitled for that pay period and then be paid for the remaining portion to which he is entitled the following pay date.
(1) Existing Salary Overpayment Balance. Employees who have been working for the State for at least six (6) months, have no paid leave accumulated, and have an existing salary overpayment balance will be placed on after-the-fact payroll schedule as a non-salaried employee. The employee may be paid the employees’ salary, minus any salary overpayment offset pursuant to 78-12, HRS, on the same pay dates and for the same pay periods as non-salaried employees. Upon accumulation of 80 hours of paid leave, the employee will be paid the employee’s salary on the same pay dates and for the same pay periods as salaried employees.
(2) Repeated Salary Overpayments. Employees who have been working for the State for at least six (6) months and have had at least two (2) incidents of leave which results in salary overpayment within the past six (6) months will be placed on after-the-fact payroll schedule as a non-salaried employee. The employee may be paid the employee’s salary, minus any salary overpayment offset pursuant to 78-12 HRS, on the same pay dates and for the same pay periods as non-salaried employees. If there are no incidents of leave which result in a salary overpayment for a subsequent four (4) -month period, the employee will be paid the employee’s salary on the same pay dates and for the same pay periods as salaried employees
b. Cumulative Leave Balances. If employees’ cumulative paid leave balances fall below ten (10) working days of vacation and ten (10) working days of sick (or 160 hours), departments should individually monitor and track the employees’ paid leave balances to ensure that a salary overpayment does not occur.
2. Notification. University departmental human resource specialists are responsible to immediately:
a. Prepare a Payroll Notification Form (PNF), send to Payroll, and call the University Payroll Office to report the overpayment situation.
b. Report the overpayment to the State’s Employees’ Retirement System (ERS) by accessing The ERS website. Instructions are provided on the website on how to complete and submit the appropriate form(s).
c. After receipt of the PNF, the University Payroll Office will determine the amount of the indebtedness and notify the employing department of the overpayment amount.
d. Within one (1) week of discovery of the salary overpayment, the University employing department shall notify the employee in writing of the indebtedness. The notice will advise the employee that an overpayment has occurred and to respond with a repayment option.
- To be an actionable cause of action, the determination and notice to the employee shall be made within two (2) years from the date of the salary or wage overpayment, and not after.
- If the employee does not respond, the employee will be deemed to have waived a hearing and recovery will begin immediately through payroll deductions. Additionally, the notice will notify the employee that regardless of whether a contested determination of indebtedness is pending, immediate recovery of the indebtedness by offset from the employee’s periodic payment normally due the employee will commence and continue until the total overpayment amount is recovered.
e. The University Payroll Office will generate an overpayment worksheet (Exhibit B) and assign a “SA” document number. Departments will generate an invoice in the KFS Accounts Receivable System (KFS-AR) and attach a redacted copy of the overpayment worksheet as supporting documentation to the KFS invoice.
f. Notification of Salary or Wage Overpayment – Exhibit A. The notice should be given to the employee in person or mailed to the employee’s residence by certified mail. Additional information that shall be provided is Exhibit B, Salary Overpayment Worksheet, and Exhibit C, Response to Salary or Wage Overpayment Notice.
3. Response. Employee Response to the Notification of Salary or Wage Overpayment
a. The employee should complete, sign and submit the Exhibit C, Response to Salary or Wage Overpayment Notice, to the respective departmental Human Resources Office. The departmental Human Resources Office shall forward this form to the UH Payroll Office for appropriate action.
(1) Employee Requests a Hearing. If the employee requests a hearing, a hearing must be scheduled (Exhibit G). The department and the employee will be given a notice of the hearing in writing pursuant to Chapter 91 of the Hawai‘i Revised Statutes. The purpose of the hearing is to determine whether there has been an overpayment and to determine the amount of overpayment. After the overpayment amount is determined by the hearing, the repayment amount will be determined by the table in section 4.c. below.
(2) Employee Waives Right to a Hearing. If the employee does not respond to the “Notification of Salary or Wage Overpayment” the employee will be deemed to have waived a hearing and recovery will being immediately through payroll deductions.
a. Payroll System. If the employee is still on payroll, the employee can choose to have their overpayment deducted via the payroll system. Employee signs the Exhibit C authorizing the University Payroll Office to deduct the amount of the overpayment from the next pay cycle.
b. Payment by Cash or Check. If the employee pays by cash or check (checks should be payable to the University of Hawai‘i), the department shall deposit the payment to the bank and record the deposit in KFS.
After the employee’s check has cleared the bank, the department shall then prepare a Disbursement Voucher (DV) to the Director of Finance, State of Hawai‘i (vendor code 17125-2) with an attached redacted copy of the overpayment worksheet. (Exhibit H & I)
c. Payment through Salary Assignment/Cancellation, SAFORM –D-60 (Exhibits E & F). The payroll deductions are initiated through the SAFORM D-60. This process triggers the State Payroll System at the Department of Accounting and General Services (DAGS) to generate checks payable to the University of Hawai‘i. The checks are forwarded from DAGS to the University Payroll Office for deposit into the specific department’s Accounts Receivable System (AR) accounts. Payroll deductions are accumulated in the AR accounts until the full amount of the salary overpayment is recovered.
After the full amount of the salary overpayment is recovered, the department shall prepare a Disbursement Voucher (DV) to the Director of Finance, State of Hawai‘i (vendor code 17125-2) with an attached redacted copy of the overpayment worksheet.
If an employee does not respond to the Notification of Salary or Wage Overpayment, immediate recovery via a D-60 will begin based on the table below.
d. Payment by Application of Available Leave. An employee and appointing authority may agree to offset any remaining amount of indebtedness by applying the current value of appropriate leave or compensatory time credits posted in the employee’s respective accounts as balances that would otherwise be payable in cash upon separation from service. However, such credits shall not be applied to any extent that would require a refund of any moneys already deducted or repaid or that would require the payment of any moneys to the employee equivalent to a cashing out of leave or compensatory time credits.
- The departmental Human Resources Representative shall obtain from the employee a completed and signed “Agreement to Apply Vacation and/or Compensatory Time Off Credits Value to Repay Compensation Overpayment” (Exhibit D).
- Prepare a KFS-DV made payable to the Director of Finance, State of Hawai‘i for the net amount of the employee’s overpayment. The UH Payroll Office will report the amount of the accumulated vacation and/or compensatory time credits as ‘wages in kind’ on the employee’s next paycheck. Attach all applicable documents to the KFS-DV.
e. The University Payroll Office will process the necessary documents to Director of Finance, State of Hawai‘i to adjust the proper accounts and the employee’s payroll records.
5. Transfer to Other State Department. In the event an employee leaves the employment of a University department to which they have an unpaid salary overpayment for another state department, the University department will notify the employee’s new state department of employment of the salary overpayment.
6. Recovery of Overpayment from Former Employees. Any salary overpayment should be offset by any vacation or compensatory time pay due the employee. Any remaining balance of vacation or compensatory pay due should then be paid to the employee. If the vacation or compensatory time pay due the employee does not offset the salary overpayment, the remaining salary overpayment balance should be collected from the employee which may include immediate referral to a collection agency. If the balance is determined to be uncollectible, it should be referred to the University General Counsel’s Office in accordance with instructions from the University General Counsel Office’s Guidelines.
7. Incorrect Determination of Indebtedness. If the determination of indebtedness was contested and subsequently found to be incorrect, any moneys repaid or deducted for any indebtedness in excess of the correct amount will be promptly refunded with interest specified by HRS 103-10 section; or all leave or compensatory time credits applied to offset any indebtedness in excess of the correct amount shall be re-credited to the employee’s respective leave or compensatory time accounts and shall not result in a cash payment.
8. Unlawfully Acquired Indebtedness. If the indebtedness has arisen or been incurred by reason of the employee having embezzled, stolen, or otherwise unlawfully acquired any moneys, the whole amount of the salary, wages, or compensation, or so much thereof as may be required to pay the indebtedness in full, shall be withheld.
Salary overpayment forms and exhibits are available on the University of Hawaii Payroll Office website, http://www.fmo.hawaii.edu/payroll/index.html#tab9
IV. Delegation of Authority
There is no administrative specific delegation of authority.
V. Contact Information
Payroll Office, 956-7444, or firstname.lastname@example.org
A. HRS 78-12
B. Governor’s Administrative Directive No. 12-03, dated March 30, 2012
C. SOH Comptroller’s Memorandum No. 2012-09, dated April 13, 2012
D. SOH Comptroller’s Memorandum No. 2013-02, dated January 15, 2013
E. Link to superseded Executive Policies in old format https://www.hawaii.edu/policy/archives/ep/
F. Link to Administrative Procedures in old format https://www.hawaii.edu/policy/archives/apm/sysap.php
VII. Exhibits and Appendices
Attachment 1: Exhibit A, Notification of Salary or Wage Overpayment
Attachment 2: Exhibit B, Overpayment Worksheet
Attachment 3: Exhibit C, Response to Salary or Wage Overpayment Notice
Attachment 4: Exhibit D, Agreement to Apply Vacation and/or Compensatory Time Off Credit to Repay Compensation Overpayment
Attachment 5: Exhibit E, Sample Salary Assignment/Cancellation (Set Dollar Amount)
Attachment 6: Exhibit F, Sample Salary Assignment/Cancellation (Percentage)
Attachment 7: Exhibit G, Request for Administrative Hearing for Salary Overpayment
Attachment 8: Exhibit H, Sample Disbursement Voucher to Director of Finance
Attachment 9: Exhibit I, Redacted Payroll Overpayment Worksheet to be Attached to Disbursement Voucher
Vice President for Budget and Finance/Chief Financial Officer
April 22, 2016
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