This issue of the Financial Management Office Newsletter includes information about the following:
- Credit Card Services RFP – July 26, 2022 Informational Meeting
- Quantity Lines on a KFS Requisition/Purchase Order
- Use the Five Ws, and one H approach to analyze “stipends”
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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Credit Card Services RFP – July 26, 2022 Informational Meeting
Target Audience: All
The Treasury Office is currently working on the Request for Proposals (RFP) for the next credit card services contract. The current contract with Bank of Hawai‘i expires on July 31, 2023. A Zoom webinar session will be held to share information and seek feedback on the planned minimum requirements of the RFP and on a possible change in the fee structure from fixed rate pricing to a Cost Plus pricing model. Information on the Zoom session is as follows:
Date: Tuesday, July 26, 2022
Time: 1:30 p.m.
https://hawaii.zoom.us/j/95805888384?pwd=WVRab3k2blIzaUQrSlFkTGZtUGU0QT0
Password: 333186 If you have any questions, please contact Joanne Yama at jyama@hawaii.edu or (808) 956-7638.
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Quantity Lines on a KFS Requisition/Purchase Order
Target Audience: KFS Users
It is recommended that the Quantity item type only be used when purchasing tangible items which will be invoiced by quantity x unit cost. For example, purchasing 5 staplers that will be invoiced as quantity 5 @$10.00 each. If you are purchasing a service which may be partially invoiced as services are rendered or large items where freight and/or installation may be invoiced separately, it would be better to use the No Quantity item type and include the breakdown of charges in the description.
Quantity lines afford less flexibility when partial payments are made or a Purchase Order Amendment (POA) needs to be processed:
- Payments on Quantity Lines – Item Lines with Item Type=Quantity liquidate encumbrances based on Quantity invoiced x PO Unit Cost, regardless of the unit price invoiced/paid on the PREQ or credited on the CM. Each Quantity line can only be invoiced up to the ordered quantity on the PO. For example, if the Quantity=1 for a PO item line, only one payment can be made on that line.
- POA changes on Quantity Lines – It is recommended that only the quantity be edited on a quantity line, if partial payments have already been made, because the POA document does not track the quantity paid at the old unit cost vs. the quantity paid at the new unit cost. If the unit cost has changed for the remaining quantity, it’s recommended that you reduce the current quantity line to the paid quantity (leaving the unit cost unchanged) and add a new line for the remaining quantity at the new unit cost.
Please refer to the FAQs in the Purchasing section, on quantity line encumbrances for more detailed information; and contact the Fiscal Services Office at fissrv@hawaii.edu with any questions.
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Use the Five Ws, and one H approach to analyze “stipends”
Target Audience: Fiscal Administrators and Staff
Before reaching a conclusion as to the proper object code to use in KFS to process your “stipends”, it will be helpful if you gather information specific to the payment by applying the “Five Ws and one H” method to better analyze and come to a proper assessment.
The Five Ws, and one H include Who, What, When, Where, Why and How.
You should answer the following questions:
- Who was involved?
- What service or activity is generating the payment?
- When was the service or activity performed?
- Where did the service or activity occur?
- Why is the payment needed?
- How did the service or activity happen?
Once you know the answers to the above questions for your particular stipend, you should have the adequate facts to properly analyze the possible tax consequences of that payment.
Even if you are not certain and you need to seek assistance, having these answers will assist us in determining the specific facts to discuss and analyze.
Should you have any questions, please contact Kenneth Lum at kenlum@hawaii.edu.