State of Hawaii Enterprise Financial System

Money Talks is a recurring series that breaks down the basics of public sector accounting, finance, and their real-world impact on the EFS Project and the State of Hawaii. In this session, we’ll discuss invoices.

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What is an Invoice?

Before exploring invoices, the topic of purchase orders will be revisited, followed by a discussion of how they’re connected.

Regarding the State of Hawaii’s procurement process, a “purchase order” or executed contract is issued to encumber funds once an award or final approval is granted. The awarding department then issues the P.O. or contract to the vendor, authorizing the delivery of goods or services.

Once a vendor delivers goods and services, they must submit an invoice to the department. The department is then responsible for verifying that the goods and services received match the invoice and purchase order (P.O.) or contract. This process, known as “three-way matching,” requires the department to certify that the goods or services were “received in good order and condition” before approving payment to the vendor. This serves as a key internal control to ensure departments pay only for goods and services under the agreed-upon terms.

It’s important to note that the State must pay interest on invoiced amounts for satisfactorily received goods and services if payments are not made on time. For additional resources, please refer to the following:

• DAGS Accounting Manual Section 521: Interest on Delinquent Payments
• DAGS Comptroller’s Memoranda
• Hawaii Revised Statutes 103-10 Payment for Goods and Services

To learn more about the EFS Project, email [email protected].

About Anna Fonseca

With over 30 years of accounting and payroll experience in state and federal government, Anna brings a wealth of expertise to her role as a Control Accounts Bookkeeper with the Department of Accounting and General Services (DAGS), Accounting Division. In her current role, Anna maintains and reconciles financial records, ensuring accuracy and alignment between transactions and official accounts 

During her decade-long career with the State of Hawaii, Anna held roles as an Account Clerk and Pre-Audit Clerk within DAGS, Administrative Services Office, where she managed financial records, processed payroll forms, verified employee pay per State agreements, and oversaw vendor payments in compliance with procurement policies. In addition to her daily responsibilities, she served as a subject matter expert for the HawaiiPay Project, advising departmental staff on fiscal compliance. 

Before joining state government, Anna was a Payroll/Security Officer at the U.S. Department of Homeland Security, where her duties consisted of analyzing payroll data, facilitating time and leave system transitions, adapting payroll procedures to new systems, and assisting staff with troubleshooting payroll issues.  

Born and raised on Oahu, Anna graduated from Aiea High School and holds an Associate of Science (AS) in Business from Leeward Community College.