This issue of the Financial Management Office Newsletter includes information about the following:
- Clean up Old KFS Pending Documents: Round Two
- eKFS - Sandbox Environment Testing
- Timely Processing of Bank of Hawaii Merchant Fee and Chargeback Invoices
- Proposed Update to AP 8.740, Dishonored Checks
- 2026 Payroll Deadlines
- 2025 W2s Distribution
- 1099 MISC and 1099 NEC Forms
- Short List of Pointers to Understand Tax Definition of "Scholarship"
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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Clean Up Old KFS Pending Documents: Round Two
Target Audience: KFS Users
As we continue preparations for the migration of KFS to the Kuali Cloud (or eKFS) in a couple of months, we will proceed with the clean-up of all remaining old pending documents on February 1, 2026, which includes automatically disapproving all ENROUTE documents that were initiated between January 1, 2024 through June 30, 2025.
To assist with this essential effort, please take action prior to January 20, 2026: Review your KFS Action List and cancel or disapprove any old documents (SAVED or ENROUTE) that are no longer required.
A list of all auto-disapproved documents will be in your PageCenterX (PCX) FOxxx folders, with an additional email from FSO for documents that could not map to your FOxxx folder.
If you have any questions, please contact the Fiscal Services Office at fissrv@hawaii.edu.
eKFS – Sandbox Environment Testing
Target Audience: KFS Users
Per the December 2025 Newsletter, the eKFS Sandbox environment was opened for user acceptance testing, and is ongoing through the end of this month. Thank you to those who reached out and are participating - we hope you had a chance to explore the new system and test all of the critical functions you handle on a daily basis. If you have any questions, feedback, issues or other findings, please email fissrv@hawaii.edu.
At the conclusion of the user acceptance testing, we will report to Kuali the results and confirm that the system is functioning as expected or identify any issues that need to be fixed. Following user acceptance testing, FSO will be sharing the updated user guides and schedule the Webinar for End User Training in February and March 2026. Dates and registration links will be provided later this month.
If you have any questions, please contact the Fiscal Services Office at fissrv@hawaii.edu.
Timely Processing of Bank of Hawaii Merchant Fee and Chargeback Invoices
This is a reminder to process payments due to Bank of Hawaii for monthly merchant fee and chargeback invoices by the due date noted on the invoice. Chargeback invoices must be paid at the time invoiced, even if the chargeback dispute is ruled in favor of UH. Should the chargeback be reversed, the UH account will be credited for the chargeback amount and the Treasury Office will inform the department if a reversal is posted.
On a weekly basis, Bank of Hawaii sends the Treasury Office a listing of past due invoices. The Treasury Office sends follow up notices to the UH merchant contacts for those invoices marked as past due. Your assistance to process payments on a timely basis and by the due date is appreciated to reduce the time and effort required to follow up on past due amounts.
Should you have any questions, please contact Joanne Yama at jyama@hawaii.edu.
Proposed Update to AP 8.740, Dishonored Checks
A proposed update to AP 8.740, Dishonored Checks, has been posted to the website.
Proposed changes include:
- Update: Reference from Cashier’s Office to Bursar’s Office for student related return payments.
- Added: Credit card payment (if department is authorized) is allowed to be processed to clear amount due. At department’s discretion, replacement payment may be made by another check.
- Update: With the upgrade to eKFS planned in the Spring 2026, the “generate billing notice” button on the Customer Invoice edoc will no longer be available. The Bill and Notice of Dishonored Check document (AP 8.740, Attachment 1), shall be completed and sent to the maker.
- Added: Debit Memo (DM) Invoice procedures as AP 8.740, Attachment 2.
The proposed effective date for the update is March 1, 2026.
Reminders:
- The campus/department receiving the notice of dishonored check via the Non-check Disbursement (ND) eDoc in KFS must update the Accounts Receivable clearing account and object code to the appropriate account and object code prior to approving the ND eDoc. The ND eDoc must be approved by the campus/department within five (5) business days.
- The DM invoice must be created in KFS within seven (7) business days of the finalization of the ND eDoc and routed to the Treasury Office for approval.
If there are any questions or comments on the proposed updates, please contact Joanne Yama (jyama@hawaii.edu) by January 31, 2026.
2026 Payroll Deadlines
Target Audience: Fiscal Administrators and Human Resources Specialists
The 2026 Payroll deadlines have been uploaded to the Payroll website, under the Overview tab - Payroll AO/PO section. To view the 2026 deadlines, please visit FMO Payroll AO/PO or click on the links below.
Pay Schedule
Payroll Calendar
Payroll Deadlines (Lag)
Payroll Deadlines (After-the-Fact)
SECE Timesheet Deadlines
TAPS Timesheet Deadlines
For more information, please contact the Payroll Office at payroll@hawaii.edu.
2025 W2s Distribution
Per DAGS, we are expecting W2s to be available by the end of January 2026. Employees who opted out of paper should be able to see their W2s online a few days in advance of paper distribution.
This year, the UH Payroll Office will be providing a listing of employees (sorted by warrant distribution codes) who received a W2 as well as employees that provided consent to opt out of paper.
For any questions, please contact the Payroll Office at payroll@hawaii.edu.
1099 MISC and 1099 NEC Forms
The 1099 MISC and 1099 NEC forms will be mailed out at the end of January 2026. Please be sure the vendor and student addresses are updated so the forms are sent to the current mailing address.
Should you have any questions, please contact Jan Murakami in Disbursing at jmura@hawaii.edu.
Short List of Pointers to Understand Tax Definition of “Scholarship”
Target Audience: Fiscal Administrators and staff
By tax law definition, scholarship to students attending educational institutions includes institutions such as primary, secondary, preparatory, or high schools and colleges and universities.
The following is a short list of distinguishing pointers to understand the possible tax impact of “scholarship” payments:
- Financial assistance to a student does NOT automatically qualify it as “scholarship”.
- “The grant allows it” does NOT automatically qualify as “scholarship”.
- If the student is required to complete tasks (or work) to obtain financial assistance this is NOT a “scholarship”.
- Direct payments to vendors for travel costs for a student may be income to the student if the travel is not business related. If travel payments are primarily benefitting the student, then such travel payment is income. For example, the University paid travel costs for a student to present his or her research achievement in recognition of award to student.
- Tuition payments for students’ non-credit classes are NOT scholarship for tax purposes.
- Payments to students for mentoring other students are NOT scholarship for tax purposes.
- Payments to students for expenses incurred for RIO (registered independent organization) is NOT scholarship.
This is only a short list to provide a glimpse of possible misinterpretations of the tax definition of scholarship. Should you have any questions on this topic, please contact Kenneth Lum at kenlum@hawaii.edu.