This issue of the Financial Management Office Newsletter includes information about the following:
The Financial Management Office Newsletter is distributed monthly. Should you have any questions about this newsletter, contact Amy Kunz via email: amykunz@hawaii.edu.
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Change Funds – Shortage or Overage
Target Audience: All
In accordance with AP 8.750, Establishment and Maintenance of Change Funds, any cash shortage and/or overage shall be reported on Form CF-3, Change Fund Cash Overage/Shortage Report.
- Form CF-3 must be completed immediately for any cash overage or shortage of $25.00 or more from a single incident.
- For all other incidents less than $25.00, the cumulative net cash shortage or overage shall be reported on Form CF-3 (at a minimum) on a monthly basis.
As a reminder, all KFS edoc related to a cash fund shortage or overage shall be adhoc routed to the Treasury Officer (KFS username jyama) for approval.
See AP 8.750, Appendix A – Change Fund Procedures – Tasks and Responsibilities for procedures related to maintaining change funds, including reporting a cash fund shortage or overage.
Please evaluate if the Change Funds being held by your office are still necessary in your current business operations and take the time to either close the fund or review the overall procedures to ensure the proper handling of those funds.
If there are any questions, please contact Joanne Yama at jyama@hawaii.edu.
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Continuation on the definition of Stipend…
Target Audience: Fiscal Administrators and Staff
As previously written in other newsletters, the word “stipend” does NOT mean scholarship. From the tax perspective, stipend only means payment. In order to determine if a payment should be classified as income or scholarship, it needs to be determined if there are any obligations required from persons receiving stipends. Examples of “obligations” could include mentoring other students, doing research work in labs, as well as doing various tasks for a department on a part-time basis.
If obligations are required from the stipend recipients to receive payment, the value of those stipends would be classified as income and would be taxable to the recipient. In addition, if recipients are foreign students who are nonresident aliens for tax purposes, there will probably be federal tax withholding, which the department may need to pay for.
Should you have any questions on this topic and want to review specific situations for an analysis of taxability, please contact Kenneth Lum at kenlum@hawaii.edu.