This issue of the Financial Management Office Newsletter includes information about the following:
- Treasury Operations: Fiscal Year-End Reminders and Due Dates
- Reminder: How to Properly Disencumber a Pre-Encumbrance (PE)
- Effective 7/1/25: Policy Changes Regarding Flat Rate Per Diem for UHPA and EM Employees
- Disbursing Department Assignments for FY2026
- Quarterly Interest Rate for Late Vendor Payments
- 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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Treasury Operations: Fiscal Year-End Reminders and Due Dates
Target Audience: Fiscal Administrators and Fiscal Support Staff
Please refer to the Fiscal Year 2025 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 | June 12, 2025 |
| Non G-Funds | Tuesday, July 1, 2025 (by 4:30 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 Tuesday, July 1, 2025. Include only receipts received as of June 30, 2025.
Credit card transactions for Monday, June 30, 2025 should be recorded in KFS for fiscal year 2025, even if the settlement deposit will not be recorded in bank until July 1, 2025.
Please remind approving parties to review their KFS Action List items and coordinate approvals that are necessary 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, 2025 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 2025 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 Monday, June 30, 2025 (4:30 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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Reminder: How to Properly Disencumber a Pre-Encumbrance (PE)
Target Audience: KFS Users
As we approach the end of FY2025, we’d like to share tips on how to avoid negative PE balances resulting from incorrectly processed disencumbrance PEs.
Reminders for disencumbrance PEs:
- If an auto-reversal date was entered on the encumbrance PE, a manual disencumbrance PE is NOT needed.
- Only encumbrances for extramurally funded accounts administered by the Office of Research Services, otherwise known as Contracts and Grants (CG) accounts are carried forward to the next Fiscal Year. Do not disencumber amounts from prior Fiscal Years for non-CG accounts.
- Enter the information in the Disencumbrance section of the PE.
- The disencumbrance amount cannot exceed the encumbrance amount.
- The Reference Number should be the original PE document number.
- The accounting line information (account, sub-account, object code and sub-object code) must match the encumbrance PE accounting line information.
- A disencumbrance PE is tied to the original encumbrance PE (by the Reference Number field). Processing a new encumbrance PE will NOT offset a negative PE balance.
- Negative PE balances can only be cleared by a Journal Voucher (JV). Please submit a KFS Trouble Ticket to clear negative balances.
There are several FAQs on how to properly disencumber PEs on the Financial Systems FAQs page, in the Financial Processing section. There is also a Pre-Encumbrance User Guide. Please take the time to review the FAQs and User Guide to ensure your department is processing disencumbrance PEs properly. Please also share these resources with anyone in your department who submits or approves PEs.
Should you have any questions, please contact the Fiscal Services Office via email at fissrv@hawaii.edu.
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Effective 7/1/25: Policy Changes Regarding Flat Rate Per Diem for UHPA and EM Employees
Target Audience: All
Pursuant to RP 9.216 and recent changes to Article VIII of the UHPA contract, the flat rate per diem for UHPA and EM employees will increase to $30 for same-day travel effective July 1, 2025. Updates to eTravel have been made for travel dates of July 1, 2025 and beyond.
All other bargaining units will remain unchanged until 2026 in alignment with those contracts.
Should you have any questions regarding this change, please email travel-help@lists.hawaii.edu.
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Disbursing Department Assignments for FY2026
Target Audience: All
The department assignments for FY2026 have been posted to the FMO website.
For questions, please call the Disbursing Office at (808) 956-5535.
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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 to the Comptroller Memo 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.