This issue of the Financial Management Office Newsletter includes information about the following:
- Changes to Sub-Object Code Table
- REMINDER: Policy Changes Regarding Flat Rate Per Diem for UHPA and EM Employees Effective 7/1/25
- REMINDER: eTravel Enhancements
- Payroll Department Assignments for FY2026
- Effective 8/1/25: eTravel Workflow Enhancements
- Overview of the definition of “Stipend”
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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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., 2025) and creates records for the new fiscal year (e.g., 2026). 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.
The 2025 Fiscal Year Maker job was run on June 7, 2025. If you created a new sub-object code or modified an existing sub-object code after that date but before the end of fiscal year 2025 you will also need to do the following for the new fiscal year (e.g., 2026):
- Create the new sub-object code for the new fiscal year.
- Perform a Fiscal Year 2025 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 2026
- Modify the existing sub-object code record for the new fiscal year if needed.
- Perform a Fiscal Year 2026 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 2026 record
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 did NOT exist in the new fiscal year before the KFS balance transfer jobs were run, any Encumbrance Forward entries for prior year outstanding encumbrances using the new sub-object code would have posted 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 is posted.
If you have any questions, please contact the Fiscal Services Office at fissrv@hawaii.edu.
REMINDER: Policy Changes Regarding Flat Rate Per Diem for UHPA and EM Employees Effective 7/1/25
Target Audience: Fiscal Administrators and Fiscal Support Staff
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 has increased to $30 for same-day travel effective July 1, 2025. Updates to eTravel have been made for travel dates of July 1, 2025 forward.
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.
REMINDER: eTravel Enhancements
Target Audience: Fiscal Administrators and Fiscal Support Staff
On July 1, 2025, a significant upgrade to eTravel’s core functionality was implemented. The current workflow engine has been replaced with a brand-new, modern system. This update addresses the limitations of the previous outdated engine, ensuring a more stable and efficient experience for all users.
Enhancements include:
- Intuitive Ad Hoc Routing: When entering a username, eTravel will display a dropdown of usernames to help users select the correct individual.
- Detailed Transaction Log: Contains more detail, including SKIPPED records based on the type of travel document, prior approval by the same person, and significant change.
- More Primary Category Fields, Ability to Select Multiple Categories: Additional categories have been added to the Primary Category field. In addition, the primary category section has been changed from a drop-down list to a check box list. Users can select multiple categories by clicking on multiple check boxes.
While the transition has been carefully planned to minimize disruption, you may notice subtle improvements in the overall application performance. We are confident that this upgrade will significantly enhance your workflow experience.
If there are any questions regarding these changes, please email etravel-help@lists.hawaii.edu.
Payroll Department Assignments for FY2026
Target Audience: Fiscal Administrators and Fiscal Support Staff
The Payroll Department Assignments for FY2026 have been posted to the FMO website.
For questions, please call the Payroll Office at (808) 956-7444.
Effective 8/1/25: eTravel Workflow Enhancements
Target Audience: Fiscal Administrators and Fiscal Support Staff
Per AP 8.851, no individual should approve or certify a document which is used to expend funds directly to himself/herself. Effective August 1, 2025, a new eTravel enhancement will be implemented prohibiting travelers from approving their own travel as Account Supervisor, Fiscal Authority and Adjuster. An error message will appear if the traveler tries to approve their own travel as the account supervisor, FA or Adjuster.
If a traveler receives an error message, an account delegate needs to be added to the account. Once the delegate has been added, please email etravel-help@lists.hawaii.edu so the document can be rerouted.
We strongly urge departments to review your accounts and add account delegates for those accounts that only have one approver.
If there are any questions regarding these changes, please email etravel-help@lists.hawaii.edu.
Overview of the definition of “Stipend”
Target Audience: Fiscal Administrators and Fiscal Support Staff
What is a stipend?
A stipend is a fixed sum of money paid to individuals to help offset expenses or support them while they’re engaged in service, education, or training. Unlike regular wages, stipends are typically meant to ease financial burden rather than compensate for work. Common stipends include academic fellowships that support graduate students, training allowances for medical residents and interns, research grants for scholars, and living allowances for volunteers. Some universities also offer stipends to interns or apprentices to help cover basic living expenses during their learning period.
What qualifies as a stipend?
A stipend is a predetermined payment made to support an individual during a learning, volunteer, or service period. Unlike salaries, stipends aren’t tied to hours worked or typical employment relationships. The key characteristic of a stipend is its purpose: to provide basic financial support rather than compensate for specific work performed.
Several distinguishing features separate stipends from regular wages, these include:
- Fixed payment amounts that don’t vary with hours worked
- Typically, lower than market-rate salaries
- Often temporary or for a set period
- Usually paid in lump sums rather than hourly wages
- No overtime pay or standard employee benefits
How are stipends taxed?
The IRS generally considers stipends to be taxable income, though the specific tax treatment depends on how the payment is classified and used. Unlike regular wages, stipends typically don’t have taxes withheld by the paying organization, which means recipients are responsible for calculating and paying their own income tax. Most stipends fall into one of two reporting categories:
Form 1099-MISC Reporting
- Used for non-employee compensation
- Organization reports payments of $600 or more annually
- Recipient is responsible for self-employment tax
- May be required to make quarterly estimated tax payments to avoid penalties
W-2 Reporting
- Used when stipend recipient is considered an employee
- Organization withholds payroll taxes
- Social Security and Medicare taxes are automatically deducted
- Regular income tax withholding may apply
Should you have any questions on this topic, please contact Kenneth Lum at kenlum@hawaii.edu.