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Administrative Procedure 8.871 Administrative Procedure 8.871



Title

Distribution and Security of Paychecks

Header

Administrative Procedure Chapter 8, Business and Finance
Administrative Procedure AP 8.871, Distribution and Security of Paychecks
Effective Date:  April 2016
Prior Dates Amended:  July 1996, October 2015    
Responsible Office: Office of the Vice President for Budget and Finance/Chief Financial Officer
Governing Board and/or Executive Policy: EP 1.102, Authority to Manage and Control the Operations of the Campus 
Review Date:  August 2018

I. Purpose

To establish policies and procedures for distributing paychecks to employees and recovering unclaimed or undelivered paychecks.  To assure the paychecks are not lost, misdirected, or delivered to unintended payees; that the confidential and private nature of the paychecks are given due consideration; and that overpayments are avoided.

II. Definitions

No policy specific or unique definitions apply.

III. Administrative Procedure

A.    Responsibilities

    1.    Fiscal Administrators and Program Managers (Approving Authority) who approve the distribution and security of paychecks are responsible for compliance with applicable Federal and State laws, rules, regulations, University policies and procedures, and timely processing of documents for payments to employees.

B.    General Procedures

    1.    This instruction applies to all program managers responsible for distributing checks to their employees, including Board of Regents, civil service, student and casual employees.

    2.    HRS 40-53 requires employees paid by the State of Hawai’i to assign their paychecks to a financial institution.  Payroll assignments provide a convenient and efficient way of ensuring that employees receive their pay when due.

    3.    Paychecks should be given as expeditiously as possible to those individuals who are exempt from bank assignments.

    4.    Program managers are responsible for distributing checks to their employees.

    5.    Distribution may be made from a central office or from work areas.

    6.    Unclaimed or undelivered checks should be verified as to the payee’s entitlement to the check.

    7.    Paychecks should be returned immediately to the University Payroll Office if the payee is not entitled to receive a check.

    8.    Paychecks may be held for persons on vacation, etc., or for persons who have transferred to another department or unit in the University, until the individual makes arrangements to pick up.  Paychecks may be forwarded to payees through regular mail (e.g. USPS, FedEx, UPS, etc.).

    9.    Undistributed paychecks should be returned to the Payroll Office within a week of the date issued with a brief explanation of efforts made to locate the payee and other reasons, as applicable.  Any envelope returned by U.S. Postal Service should be sent to the Payroll Office with the paycheck. 

    10.    The Payroll Office should review efforts made by the unit which received the check for distribution, conduct further research if possible, and retain the check for two months from the date of issue.

    11.    After two months, the Payroll Office will return the check to the State of Hawai’i, Department of Accounting and General Services (Central Payroll) for cancellation.

    12.    Security of checks

        a.    In each agency receiving checks for distribution, one individual (with Alternate) should be identified to handle and secure checks.

        b.    Departments or units should not retain checks in their possession except as prescribed above or while attempting to locate an individual payee.

        c.    Checks should be stored in a locked drawer.

        d.    Checks sent through regular mail should be sealed in an envelope.

IV. Delegation of Authority

There is no administrative specific delegation of authority.

V. Contact Information

    
Payroll Office, 956-7444, or payroll@hawaii.edu
Website:  http://www.fmo.hawaii.edu/payroll/index.html

VI. References

    A. Link to superseded Executive Policies in old format https://www.hawaii.edu/policy/archives/ep/
    B. Link to Administrative Procedures in old format https://www.hawaii.edu/policy/archives/apm/sysap.php

VII. Exhibits and Appendices

None

Approved

    Signed    
    Kalbert Young    
    April 04, 2016    
    Date    
    Vice President for Budget and Finance/Chief Financial Officer

Topics

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