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 accounts payable.

What are Accounts Payable?

“Accounts payable” refers to the money the State of Hawaii owes to vendors, service providers, or other entities for goods and services it has received but not yet paid for. Similar to how a patient receives a bill after visiting a doctor, government agencies receive invoices after receiving supplies or contracted services or consuming utilities essential to their operations.

Accounts payable is crucial for maintaining the State’s financial health and meeting obligations to vendors and partners. Timely payments foster good vendor relationships, prevent late fees or service interruptions, and ensure business operations continue to run smoothly.

For instance, when the State Department of Transportation hires a private company to repair a roadway, the vendor submits an invoice to the State for the work performed. The amount owed is recorded as a “liability” until the invoice is paid. After payment is made, the liability is cleared, and the transaction is recorded in the agency’s financial records.

Accounts payable is also essential for accurate financial reporting and budgeting. From an operational perspective, effective accounts payable management allows State programs to track obligations and payment schedules accurately and helps prevent service interruptions.

By tracking outstanding accounts payable, the State can assess its short-term liabilities, forecast future cash flow needs, and plan spending responsibly. This strengthens fiscal transparency and accountability in the stewardship of public funds.

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.