This issue of the Financial Management Office Newsletter includes information about the following:
- KFS to Open for FY22 on July 6, 2021
- KFS Fiscal Year End Reminders
- Modified Account Delegate Listing
- New Administrative Procedure AP 8.802 – Requirement of Direct Deposit and/or ACH
- Student Employee and Graduate Assistant Summer FICA Tax Exemption Status
- eTravel Training Guide
- Quarterly Interest Rate for Late Vendor Payments
- Fiscal Year 2021 Year-End Accrual Process Information
- Treasury Operations: Fiscal Year-End Reminders and Due Dates
- Banner Baseline Project Status
- KFS Object Code 7245 to report “Other Income”
- Resources
The FMO Newsletter is distributed monthly. Should you have any questions about this newsletter, contact Amy Kunz via email at amykunz@hawaii.edu.
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KFS to Open for FY22 on July 6, 2021
Target Audience: Fiscal Administrators
KFS is expected to open two days earlier on July 6, 2021 for FY22 processing prior to the carryforward posting of account beginning balances, budgets and encumbrances. The absence of budget balances will most affect accounts with sufficient funds checking turned on (e.g., Contract and Grant accounts). Financial Processing documents initiated in the new FY using these types of accounts may receive a sufficient funds error. If you receive this type of error, save your eDoc and submit it after the carry forward balances are recorded. We are planning to record beginning balances on July 6, 2021.
If you have any questions, please send your inquiry to the General Accounting Office at uhgalc@hawaii.edu.
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KFS Fiscal Year End Reminders
Target Audience: KFS Users
Please note the following system activities during fiscal year end:
- KFS transactional eDocs (except REQS, POs, POAs) that are in ENROUTE status will be auto disapproved on 7/1.
- The list of eDocs that were auto disapproved will be distributed to the PageCenterX mailboxes in the KFS | GL folder called autoDisapprovedDocs_FOnnn.csv. The FO Code is assigned based on the primary chart-org of the initiator of the document. If these documents still require processing, please copy and resubmit for the new FY.
- KFS will be in restricted status from 7/2-5 and will only be accessible by central office staff.
- KFS will be open for FY 2022 activity without balances on 7/6/2021.
Thank you for your efforts in reviewing and processing your KFS documents in a timely manner.
Should you have any questions, please contact the Fiscal Services Office via email at fissrv@hawaii.edu.
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Modified Account Delegate Listing
Target Audience: JRS Users
In response to a user’s request, the Account Delegate Listing global report in the GL folder has been modified to include accounts that do not have delegates. The listing will return all accounts and will have a blank value in the Account Delegate columns (Doc Type, Username, Name and Primary Route). If you want a listing of account(s) that do not have delegates, you can clear out the default value in the ACCOUNT DELEGATE USERNAME Input Control field. This is an example of an Input Control with the default value (XXXXXX) removed.
We recommend that every KFS account have at least one delegate so that documents do not get stuck in ENROUTE status if the Fiscal Administrator is unable to review and approve.
If you have any questions or suggestions, please contact the Fiscal Services Office at fissrv@hawaii.edu.
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New Administrative Procedure AP 8.802 – Requirement of Direct Deposit and/or ACH
Target Audience: UH Employees
This new policy addresses direct deposit payments for payroll (HawaiiPay), employee reimbursements and allowances (ePayment), student refunds and scholarships (eRefund) and vendor payments (DISB-ACH form).
Electronic payments decrease costs to the University, increase the efficiency of processing, eliminate the risk of a mailed check being lost, altered or stolen, and take advantage of paperless and secure methods offered in today’s digital banking environment. Electronic payments, except for payroll, will be run on a more frequent basis than physical checks so enrolling in all electronic payment methods that apply will ensure prompt delivery of payments/reimbursements.
To view this new AP, please click here. For further information, please go to the Payment/Reimbursement website Direct Deposit section which contains helpful FAQs regarding this new AP.
Should there be any questions regarding this change, please call the Disbursing Office at (808) 956-5535.
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Student Employee and Graduate Assistant Summer FICA Tax Exemption Status
Target Audience: Personnel Officers, Fiscal Administrators and Student Employment Coordinators
Student employees, except graduate assistants as noted below, must be enrolled (at a minimum) in a summer session term on a half time basis (3 credits or more) to maintain and/or qualify for the FICA tax exemption. Student employees who do not qualify for the FICA tax exemption during the summer months must participate in the State of Hawaii Part-time, Temporary and Seasonal/Casual (PTS) Deferred Compensation Program. Departmental personnel are responsible to determine student employees’ FICA exemption status and update the FICA codes on applicable payroll documents.
To assist departmental personnel in determining FICA exemption status for these employees during the summer, the UH-Manoa Student Employment and Cooperative Education office (SECE) has developed a questionnaire (Attachment A ) and flowchart (Attachment B). These documents are located on the SECE website.
Changes to the FICA code for an existing student employee record must be made on-line via the SECE System. Attachment C shows UH Payroll Office guidelines and deadlines for making on-line changes for pay periods during the summer months.
Any changes to Graduate Assistant FICA codes are made via submission of an ePNF through the PeopleSoft system. Go to the Payroll AO/PO section of the FMO website for 2021 Payroll Due Dates. Documents must be submitted by appropriate deadline dates shown. Please note:
- 9-month graduate assistants are not affected and remain exempt from FICA since their compensation is prorated over 12 months.
- 11-month graduate assistants must participate in the PTS Deferred Compensation Program during the summer if they are not enrolled for at least 4 units during any summer session. If the one-month off duty period is taken during the summer, compensation received during this off-duty period would qualify for FICA tax exemption since no work is performed. If a change in the FICA code is required, prepare and submit a PNF to reflect the proper FICA code. Use action/reason “Data Change – 911” (RETIREMENT/FICA CODE).
Timely FlCA code changes in the SECE Student On-line System and ePNF document submittal to the UH Payroll Office are critical as an erroneous FICA code results in either an over-assessment or under-assessment of the employee’s PTS deferred compensation contribution and Medicare taxes. If this occurs, corrective action must be initiated by the employing department.
In the event of an over-assessment or an under-assessment, departmental administrators will be required to refund or recover the PTS Deferred Compensation amount and the Medicare tax for the student and process adjustments to the State Payroll System via the UH Payroll Office to properly correct the student’s payroll records. Fringe benefit corrections for the Medicare tax will also be required for imposed accounts.
- If a student has already left University employment, departmental administrators will be responsible for tracking the student and executing the required corrective actions
- If Medicare taxes are owed by a student and cannot be recovered, the funding source (imposed accounts) will be responsible for both the 1.45% employee assessment and the 1.45% employer assessment for a total of a 2.90% assessment.
Questions related to the timing of documents should be directed to your campus Student Employment Office or the Graduate Division, as applicable.
Questions on Graduate Assistant appointment processing and requests for forms/informational material on the PTS Deferred Compensation plan should be directed to your respective Human Resources Representative.
Questions related to payroll processing requirements are to be directed to the UH Payroll Office at payroll@hawaii.edu.
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eTravel Training Guide
Target Audience: Fiscal Administrators, Travelers
A NEW step-by-step training guide has been created to help users create Travel Requests and Completions. Sample exercises are also available for review.
Travel Request Guide
Travel Completion Guide
Sample Exercises
For questions, please email etravel-help@lists.hawaii.edu.
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Quarterly Interest Rate for Late Vendor Payments
Target Audience: Fiscal Administrators and Fiscal Suppport Staff
Pursuant to Section 103-10 of the Hawai`i Revised Statutes, the interest rate for obligations related to goods delivered or services performed remaining unpaid after 30 days is equal to the prime rate for each calendar quarter plus two percent. The interest rate is adjusted quarterly using the prime rate as posted in the Wall Street Journal on the first business day of the month preceding the calendar quarter. Please refer here for the third quarter interest rate and calculation.
Should there be any questions regarding this change, please call the Disbursing Office at (808) 956-5535.
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Fiscal Year 2021 Year-End Accrual Process Information
Target Audience: Fiscal Administrators and Staff
The Fiscal Year 2021 Year-End Accrual Process Presentation is now available for your review on the FMO website > Fiscal Administrators > Training – Fiscal Administrators > Fiscal Year End Accrual Process Presentation.
Please view the presentation to prepare for recording FY21 accrual entries. Topics covered include:
- FY21 Year-end close key milestones
- KFS Service date requirements
- Need for accounting accruals
- Types of accounting accruals and adjustments
- Fiscal Administrator initiated adjustments
- Central Office initiated adjustment
- Process for submission of JV worksheets to record accruals and adjustments
- Capital leases
If you have any questions, please contact the General Accounting Office at uhgalc@hawaii.edu.
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Treasury Operations: Fiscal Year-End Reminders and Due Dates
Target Audience: Fiscal Administrators and Fiscal Support Staff
Please refer to the Fiscal Year 2021 Year-End Closing schedule for fiscal year-end due dates related to treasury operations.
Recording Bank Deposits
Please note the following due dates for FAs to approve KFS e-docs for deposits:
| Fund Type | Due Date |
|---|---|
| G-Funds | June 10, 2021 |
| Non G-Funds | July 1, 2021 (by 5:00 p.m.) |
Please note that the last day to finalize KFS e-docs (Cash Control/Payment Applications, Advance Deposits, and Credit Card Receipts) for non G-fund deposits is Wednesday, July 1, 2021. Include only receipts received as of June 30, 2021.
Credit card transactions for Wednesday, June 30, 2021 should be recorded in KFS for fiscal year 2021, even if the settlement deposit will not be recorded in bank until July 1, 2021.
Please remind approving parties to review their KFS Action List items so that all ENROUTE e-docs are finalized for the fiscal year. Any ENROUTE deposit e-docs remaining will be disapproved once KFS is disabled for the fiscal year on July 1, 2021.
During the month of June, the Treasury staff will be working with BOH to obtain daily electronic payment information as well as debit and credit memo adjustments. When this information is provided, please record the entries in KFS. As all receipts for FY 2021 are to be recorded in KFS for the fiscal year, please start your process to review and reconcile all funds received with deposit entries recorded in KFS. The Treasury staff may be contacting you via email or phone to follow up on unrecorded items and adjustments.
Your assistance to process and record these items in a timely manner is appreciated.
Dishonored Check Invoices
Please be sure to finalize transactions for all dishonored checks for the fiscal year:
- Finalize the Non-check Disbursement (ND) e-docs initiated by the Treasury Office, and
- Create/finalize the DM invoice.
The due date to finalize all dishonored check invoices is Wednesday, June 30, 2021 (5:00 p.m.).
For questions regarding Fiscal Year-End Reminders and due dates, please contact the Treasury Office at uh-treasury@lists.hawaii.edu or by phone at (808) 956-8527.
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Banner Baseline Project Status
The implementation of Banner baseline has continued to evolve. Future effective date was put in place as a starting point last year.
Current implementations:
- Financial hold obligations to assist with past due account collections
- Past due installment plans
- E-Statements sent monthly with current balance due without including future term balance
- Updated priority coding for detail codes which allows for payments to process items to pay tuition, housing, and fees according to significance
- Uploading IDAP charges earlier in the registration process so students can see detail on STAR and MyUH portal as well as having financial aid pay for charge
- Adjusted IDAP to institutional charge to align with federal guidelines
- Update to Administrative Procedure 8.770
- Creation of a Military section in FMO site
- Creation of UH Bursar’s Office Application of Payments Procedure within Tuition and Fees Payments within the FMO site
Future implementation:
- Write-off in Banner from the approval by Board of Regents for accounts from 1997-2008
- Start the use of Banner contract for Chapter 33 Veteran Benefits in Fall 2021
- Automation of Banner financial hold obligation
- Title IV Authorization to allow students a choice in paying for non-institutional charges and past due account balances
- A system Consortium Agreement to allow for financial aid to pay across campuses, paying the home campus first then other campus or campuses by priority code and alphabetical order
- Updating Administrative Procedure 8.250 to align with new guidelines established for past due account collections
- Creation of IDAP charges to be associated with courses for all fees to be associated with course at registration
- Working to streamline refund process to become automated on a daily process
- Working on eRefund ability to process international student and parent plus refunds
Updates:
The close of fiscal 2021 is quickly nearing. The Bursar’s office has begun testing the impact on future effective dating to financial reports by working with IT to show necessary information is updating correctly and processing to KFS to assist General Accounting.
Should you have any questions, please contact Denise DeArment at dearment@hawaii.edu.
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KFS Object Code 7245 to report “Other Income”
Target Audience: Fiscal Administrators and Staff
Whenever Kuali Financial System (KFS) disbursement process occurs, fiscal administrators and staff have often engaged in frequent discussions on object code 7245. Hopefully, this article will provide adequate clarification.
Object code 7245 is used for “prizes or awards” (without UH President’s signature, whereas object code 7244 requires such). Beside reporting cash payments for prizes or award, or values of prizes or awards, this object code should also be utilized to report “any income” that are not scholarship or fellowship, independent contractor’s compensation, or payments for services as employees of the University.
There are no other object codes to report “other income”. Using object code 7245 will ensure proper reporting of the amount onto box 3 (for “other income”) on Form 1099-Misc., for recipients who are U.S. citizens or resident aliens for tax purposes.
Should you have any questions, please call or email me at kenlum@hawaii.edu.