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
- 250. Small Purchase – Goods and Services
- 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
- 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
- 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 and General Clearing 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. Establishment of Electronic Funds Transfer and Receipt of Funds
- 710. Credit Card Administration
- 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
- 802. Requirement of Direct Deposit and/or ACH
- 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, 1099-NEC 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 on Security of Paychecks
- 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
- + 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 8.740 Administrative Procedure 8.740
Administrative Procedure Chapter 8, Business and Finance
Administrative Procedure AP 8.740, Dishonored Checks
Effective Date: May 2019
Prior Dates Amended: October 1995, January 1999, April 2006, July 2007, May 2015
Responsible Office: Office of the Vice President for Budget and Finance/Chief Financial Officer
Governing Board and/or Executive Policy: EP 1.102, General Provisions
Review Date: May 2021
To provide procedures for the processing of checks which have been returned unpaid by the maker's bank. This procedure is based on Chapter 2010, Delinquent Financial Obligations, Hawai‘i Administrative Rules adopted by the University of Hawai‘i (UH) Board of Regents on December 12, 1974, and amended as of December 12, 2002; and Section 40-35.5, Hawai‘i Revised Statutes.
To assure that all dishonored checks are recorded properly in the University’s Kuali Financial System (KFS), makers of returned checks receive proper notification, and the dishonored check is repaid.
A. Dishonored check - A paper or electronic check, which the University has received and deposited, and is subsequently returned unpaid to the University by the maker's bank. For purposes of this administrative procedure, dishonored check also includes any rejected Automated Clearing House (ACH) transaction related to scheduled payments to the University due to account closure, incorrect account, insufficient funds, etc. A dishonored check is a financial obligation due to the University and must be held for safekeeping until it is repaid by the student or maker.
B. Sanctions - The range of penalties which the University may invoke if a dishonored check is not repaid.
C. Service charge - An amount assessed by the State of Hawai‘i in accordance with §40-35.5 HRS for a check that is dishonored for any reason. The service charge cannot be waived and is deposited to the State general fund.
III. Administrative Procedure
A. Action to be taken when a check is dishonored and returned by the bank.
1. Treasury Office
a. Identify the University department that originally accepted the check and the
campus/department /fiscal administrator responsible for contacting the student or maker of
the check to have the check repaid. Note: The standard UH Endorsement Stamp will usually
indicate the name of the receiving department.
b. Upon receipt of a returned check for a non-student account payment, the UH Treasury
Office will process a non‐check disbursement (ND) document in KFS. The ND is charged to
the campus/department’s AR clearing account, object code 9239 and is routed to the
campus/departmental fiscal administrator.
2. University Cashier’s Office upon receiving notice of a dishonored check or rejected ACH payment
for student account transactions will:
a. Post the returned item and dishonored check fee to the student’s account.
b. Place a financial hold on the account.
c. Notify the student of the dishonored check.
d. Maintain a chronological record of all collection efforts.
e. Post the payment to the account and clear the hold when the dishonored check is repaid.
Note: Any dishonored check posted to a student account in the student information system shall be handled centrally by the University Cashier’s Office for processing, regardless of which campus originally accepted the payment.
3. Campus/department upon receiving notice of a dishonored check and ND document in KFS
workflow for non-student account transactions will:
a. Change the AR clearing account and object code on the ND to the appropriate account and
object code. Approve and route the ND in KFS to General Accounting.
b. Create a Debit Memo (DM) invoice in KFS and route to Treasury. Refer to KFS process
documentation – DM Invoice Procedures.
c. Notify the maker of the check (see Attachment 1 for sample notification).
d. Maintain a chronological record of all collection efforts.
e. Prepare and process a Cash Control (CTRL) in KFS when the dishonored check is repaid.
Refer to KFS process documentation - DM Invoice Procedures.
B. Sanctions are imposed when a dishonored check is not repaid and the maker of the check and/or the student incurs a delinquent financial obligation with the University. Sanctions are administered in accordance with A8.731, section 7.
C. University departments reserve the right to refuse further check payments for any University receivable where three (3) or more checks have been returned for any reason.
IV. Delegation of Authority
There is no administrative specific delegation of authority.
V. Contact Information
Treasury Office, 956-8527, or email@example.com
Chapter 20-10, Hawaii Administrative Rules, Delinquent Financial Obligations may be viewed at: http://www.hawaii.edu/offices/bor/adminrules/chapter10.pdf
Section 40-35.5, Hawai‘i Revised Statutes may be viewed at: http://www.capitol.hawaii.gov/hrscurrent/Vol01_Ch0001-0042F/HRS0040/HRS_0040-0035_0005.HTM
KFS process documentation – DM Invoice Procedures http://www.hawaii.edu/kualifinancial/docs/DM%20procedures.pdf
VII. Exhibits and Appendices
Attachment 1: UH Bill and Notice of Dishonored Check
Vice President for Budget and Finance/Chief Financial Officer
June 12, 2019
Topicsdishonored check; sanctions; service charge