This issue of the Financial Management Office Newsletter includes information about the following:
- KFS Fiscal Year End Reminders
- Changes to Sub-Object Code Table
- Treasury Operations: Fiscal Year-End Reminders and Due Dates
- Quarterly Interest Rate for Late Vendor Payments
- Clearing Accounts
- Resources
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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KFS Fiscal Year End Reminders
Target Audience: KFS Users
Please note the following system activities during fiscal year end:
- Fiscal Year Maker is scheduled to run on 6/10/2023. This batch job copies table values that are specific to a fiscal year into the new upcoming fiscal year. Included in this process is the Sub-Object Code table. Please refer to newsletter article “Changes to Sub-Object Code Table” for more information regarding new sub-object code created or existing sub-object code modified after the Fiscal Year Maker job is run.
- 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 document initiator’s primary chart-org. If these documents still require processing, please copy and resubmit them in 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 2024 activity without balances on 7/6/2023.
Thank you for your efforts in reviewing and processing your KFS documents in a timely manner.
Should you have any questions, please contact Fiscal Services via email at fissrv@hawaii.edu.
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Changes to Sub-Object Code Table
Target Audience: Fiscal Administrators
Every Fiscal Year End, the KFS Fiscal Year Maker job is run to set up tables for the new fiscal year. The Fiscal Year Maker job copies table values specific to the current fiscal year (e.g., 2023) and creates records for the new fiscal year (e.g., 2024). The tables that are affected include the Sub-Object Code table. If a new sub-object code is created or an existing sub-object code is modified after the Fiscal Year Maker job is run, the new sub-object code or modifications to the existing sub-object code will not be included in the new fiscal year table.
This fiscal year the Fiscal Year Maker job is scheduled to run on June 10, 2023. If you create a new sub-object code or modify an existing sub-object code after that date but before the end of the current fiscal year, you will also need to do the following for the new fiscal year (e.g., 2024):
- Create the new sub-object code for the new fiscal year.
- Perform a Fiscal Year 2023 Sub-Object Code Lookup (search) for the new sub-object code
- Use the “copy” feature to create a copy and change the fiscal year to 2024
- Modify the existing sub-object code record for the new fiscal year if needed.
- Perform a Fiscal Year 2024 Sub-Object Code Lookup (search) for the existing sub-object code
- Use the “edit” feature to apply the same modifications to the new Fiscal Year 2024 record
Copy or edit actions should be done prior to June 30, 2023.
If the new sub-object code is not created for the new fiscal year, transactions using the sub-object code will be rejected.
- For batch feeds (e.g., Banner or KFS balance transfers), the rejected transaction will post to the main object code.
- If the new sub-object code does NOT exist in the new fiscal year before the KFS balance transfer jobs are run, the Encumbrance Forward entries for prior year outstanding encumbrances using the new sub-object code will post to the main object code in the new fiscal year; NOT to the new sub-object code.
- If the encumbrance balances are not posted to the correct sub-object code, there will be a mismatch between the Purchasing module and the General Ledger which will result in Open Encumbrance balance discrepancies when PO payments are processed.
- Please submit a KFS trouble ticket to request assistance with correcting the encumbrance balance if the new sub-object code is created in the new fiscal year after the encumbrance forward entries are posted.
If you have any questions, please contact the Fiscal Services Office at fissrv@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 2023 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:
| G-Funds | Thursday, June 15, 2023 |
| Non G-Funds | Saturday, July 1, 2023 (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 Saturday, July 1, 2023. Include only receipts received as of June 30, 2023.
Credit card transactions for Friday, June 30, 2023 should be recorded in KFS for fiscal year 2023, even if the settlement deposit will not be recorded in bank until July 3, 2023.
Although the due date to complete KFS deposit e-docs is Saturday, July 1, 2023, please finalize by Friday, June 30, 2023 if staff will not be working on Saturday. Please also remind approving parties to review their KFS Action List items and coordinate approvals that are necessary on Saturday 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, 2023 at 7:00 p.m.
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 2023 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:
- Update the Account and Object Code information and 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 Friday, June 30, 2023 (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) 956-7638.
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Quarterly Interest Rate for Late Vendor Payments
Target Audience: Fiscal Administrators and Fiscal Support 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 3rd 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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Clearing Accounts
Target Audience: Fiscal Administrators
Clearing accounts are intended to be used in KFS as a means to temporarily hold financial transactions while permanent accounting treatment is being determined. Balances may need to be allocated or transferred as a result of an automated or manual process.
There are two main types of clearing accounts in KFS:
- Continuation Clearing Accounts – Used to receive transactions initially coded to an expired account. Frequently needed for extramural project accounts because the accounts are period specific and have expiration dates.
- General Clearing Accounts – Accounts established to accept posting from automated or manual processes when the target account or object code is invalid, not yet determined or not yet ready for posting. Examples include: Banner Clearing, D-71 Clearing, A/R Clearing, C/S Source “Clearing” accounts.
- AP 8.650 – Continuation and General Clearing Accounts
Monitoring of clearing accounts:
- Clearing accounts should be monitored on a monthly basis by the assigned FA.
- Transactions should be cleared to the appropriate operating account or reconciled if pending additional information. For continuation clearing accounts, transfers to the appropriate extramural projects are to be done timely, generally within 30 days of posting to the continuation account, if not required earlier, i.e. prior to award closeout, or prior to each fiscal year end.
- Chart managers shall monitor new clearing account creation and account modifications to ensure that appropriate attributes are assigned to the accounts.
- FA shall monitor clearing accounts and update responsible individuals in the event of staffing changes.
As fiscal year end approaches, please be reminded to monitor and appropriately reallocate transactions in your department clearing accounts.
Please submit clearing account questions to: uhgalc@hawaii.edu for non-extramural accounts and orscomp@hawaii.edu for extramural accounts.