RECONCILIATION OF FUNDS

Transcription

1 RECONCILIATION OF FUNDS ROLES Departmental Staff f Interest Accuntants Office Managers Business Managers Prgram Assistants OVERVIEW S why d we need t recncile? Gd general business practices determine that recnciliatin is necessary. Gd internal cntrls and sund business practices necessitate recnciliatin f funds by business staff. Regular recnciliatins prvide assurance that all USF assets are safeguarded and managed effectively. Gd management practices include a mnthly recnciliatin and review f the fficial financial reprts. Department business staff shuld be recnciling the data in Finance Mart, the fficial USF reprting tl, with departmental recrds. The recnciliatin shuld include at least expenses, revenue, and cash. Expense includes bth salary and perating expenses. PO s and requisitins shuld als be recnciled. Recnciliatin can simply be described as a cmparisn f tw independent sets f financial recrds as f the same pint in time. This pint in time is the end f an accunting perid; accunting perids at USF are the mnths f July thrugh June (ur USF fiscal year). Departments shuld recncile mnthly immediately after the fficial final reprts are created in Finance Mart. These reprts are created fllwing the clsing f the accunting perid (the mnth); ur current schedule is t clse an accunting perid within 15 days after the last day f the mnth. Hwever a recnciliatin can be dne mid-mnth. Yu might d interim, midmnth recnciliatins tward the end f the fiscal year when time and RSA (remaining spending authrity) becme critical. When yu cmpare the tw sets f financial recrds, identify any differences between what yu expected t pst t FAST vs. what actually did pst t FAST. Recnciliatin will cnfirm that: The expenses were apprpriate, meeting university, state and/r federal requirements N errrs were made when the transactins were recrded Depsits were recrded t the crrect department/cllege Updated 9/13/05 Recrd t Reprt Overview Page 1 f 10

2 Crrecting entries have been made fr prir perids The primary benefit f recnciliatin is f curse the preservatin f yur budget and cash; this is ur bligatin as managers. We need t make best use f the funding we are prvided. The cnsequences f nt fulfilling ur management bligatins can include: Financial lss: Withut recnciliatin errrs will g undetected. The department lses; the university lses. Pr decisins: Undetected errrs result in bad infrmatin. Bad infrmatin will result in pr reprting, pr recmmendatins and pr decisin making. Wasted time: If yu dn t recncile r dn t recncile n a regular basis, it can becme mre difficult t crrect errrs. Image: Managers are accuntable fr the efficient use their department s funds. Separatin f duties is a basic business principle that exists t ensure the rganizatin s financial integrity, accuntability f staff, and t prtect individuals frm the appearance f miscnduct. Ideally the persn wh recnciles shuld nt be the persn wh Creates a purchase rder r buys smething with a Pcard Apprves purchases Recrds the receipt f vendr items in FAST Apprves payrll actins Handles cash (currency, checks, etc) If a department des nt have enugh staff t clearly separate respnsibilities and the recnciler des perfrm ne f the actins abve, the recnciliatin must be reviewed by the recnciler s supervisr r a higher level authrity in the department r cllege. Departments and/r clleges may pt t require mre than ne level f review. A recnciliatin may be reviewed by department supervisrs r management, and then reviewed again by cllege business staff. Anther alternative fr departments where separatin f duties is nt pssible is t develp an arrangement with anther department within the same cllege. Tw departments with insufficient staff may agree t review each ther s recnciliatins prviding independent versight. Updated 9/13/05 Recrd t Reprt Overview Page 2 f 10

3 Fr Salary Expense verify: Fr Expenses verify: WHAT DO YOU RECONCILE Belw are a few suggested tips fr recnciling. Yur review may be mre detailed depending n the nature f the transactin r the cmplexity f yur supprt dcumentatin. The primary tls fr recnciliatin are the Finance Mart reprts and the FAST General Ledger. Fr salary expenses, the salary distributin reprt frm GEMS is als needed. The salary is charged t the crrect chart field string(s) The persn paid is ne f yur staff The amunt (r percentage) f distributin is crrect Remember that individual staff may be paid frm multiple funding surces Faculty especially may be paid frm bth grant prjects and state surces PET s (payrll expenditure transfers) t crrect errrs nted previus mnth have been psted and psted crrectly Benefits questins shuld be directed t the USF HR ffice The expense was recrded t the crrect chart field string Expenditure transfers previusly prepared have nw been charged Auxiliary verhead expense has been crrectly calculated Interdepartmental purchases have been recrded crrectly Fr PO s (Encumbrances) and Requisitins (Pre-encumbrances) verify: Fr Revenue verify: All requisitins have been prcessed with PO s issued New encumbrance amunts are crrect If partial payments have been made, the encumbrance balance is crrect Encumbrance is recrded with the crrect chart field string All change rder requests have been applied PO s fr which final vendr payments have been made have been clsed Revenue t utside custmers has been recrded t the crrect chart fields (using a GL accunt cde beginning with 44xxx) Interdepartmental revenue has been recrded t the crrect chart fields (using a GL accunt cde beginning with 74xxx) Revenue amunts are crrect, matching supprt dcuments Updated 9/13/05 Recrd t Reprt Overview Page 3 f 10

4 Fr Cash entries verify: All revenue and/r AR adjustments have been psted crrectly Revenue has been credited t bth AR mdule and General Ledger Crrecting entries frm previus recnciliatins have been psted All depsits sent by the department t the Cashier have been psted Payments received directly by Cashier were psted t crrect custmer/invice Fr cmmercial custmers, the AR balance in FAST has been adjusted Crrecting entries frm previus recnciliatins have been psted Cash transfers are psted crrectly (GL accunt cde beginning with 8xxxx) Frm anther perspective, what type f funding shuld be recnciled based n the transactin. Budget Expenditure Purchase Orders Requisitins Custmer Revenue Cash Any type f funding (state, auxiliary, research) Any type f funding (state, auxiliary, research) Any type f funding (state, auxiliary, research) Any type f funding (state, auxiliary, research) Auxiliaries Auxiliaries and prjects PRIMARY TOOLS Finance Mart Reprts ** The fficial USF financial reprts fr recnciliatin (find at RSA reprt (t recncile budget; yu will als see expenses) Financial Reprt Summary (t recncile revenue and expenses) Balance Sheet (t recncile cash and accunts receivable) Encumbrance Summary and Encumbrance Detail (t recncile PO s and requisitins) Payrll detail reprt FAST General Ledger (lkup assets, expenses, revenue and cash by chart field r jurnal ID) Public queries Cmmitment Cntrl (lkup budget infrmatin by chart field) Subsidiary mdules (lkup transactin details in Purchasing, Accunts Payable, Billing, Accunts Receivable, Pcard, Travel, and grants) Updated 9/13/05 Recrd t Reprt Overview Page 4 f 10

5 GEMS Payrll registers Public queries Departmental Recrds Yur cpies f rder frms, requisitins, PO s, invices Yur payrll recrds Yur cpies f depsits and billings t custmers Finance Mart prvides summarized and detail reprts fr a specific accunting perid (a mnth) r fr the year-t-date. Yu may chse t run a summary reprt and then drill t details f a specific accunt cde r yu may chse t run the full detail reprt. The FAST general ledger and the subsidiary mdules prvide greater detail f the transactin. In FAST GL, using a jurnal ID r a specific set f chart field values, yu can drill dwn t the basic details f an expense, an invice that has been paid, cash that has been cllected, and accunts receivable and accunts payable. Frm general ledger, it is pssible t drill t the subsidiary mdules. But remember, frm FAST it is nt pssible t drill int GEMS r OASIS fr details. GEMS and OASIS are separate systems. COMPLETING A RECONCILIATION The cncept f recnciliatin is really very simple. It is the cmparisn f tw sets f recrds and the identificatin f any differences. Once the differences are identified either track transactins that are in the prcess f being psted r take actin t make any necessary crrectins. A recnciliatin f university recrds is just what an individual wuld d with their wn checkbk; cmpare yur checkbk entries t the mnthly bank statement. In the university, the cmparisn is between the department s recrds and the fficial reprts f USF as fund n Finance Mart. There is an additinal step f dcumenting the recnciliatin and btaining acknwledgement f review frm a supervisr. This will meet standard business practices and will demnstrate cmpleteness and accurateness f the actin. Updated 9/13/05 Recrd t Reprt Overview Page 5 f 10

6 T cmplete a recnciliatin, fllw these simple steps: 1. Gather departmental surce dcuments 2. Run reprts frm Finance Mart 3. Cmpare departmental dcuments t Finance Mart 4. Review the utstanding items frm the prir mnth 5. Identify anything that did nt clear this mnth 6. Identify errrs 7. Balance yur departmental surce dcuments t the Finance Mart balances 8. Research any unexpected entries 9. Outline a plan t crrect the errrs; prepare dcuments; take actin 10. Sign and date the recnciliatin 11. Have yur supervisr review, sign, and date the recnciliatin Departmental surce dcuments are the starting pint. Gather the fllwing dcuments. Fr expense recnciliatin Start with the prir mnth s recnciliatin; this will identify the utstanding items frm the prir mnth A list f vendr payments apprved this mnth All interdepartmental charges t yur department frm ther USF departments All expenditure transfers and crrectins The payrll register with the payrll distributin Fr purchase rders and requisitins List f last mnth s utstanding requisitins Cpies f new requisitins created in the current mnth Cpies f change rders t purchase rders Vendr payments apprved this mnth Fr revenue List f all billings and sales t utside custmers All interdepartmental billings t ther USF departments Fr cash and accunts receivable payments received List f prir mnth s utstanding depsits List f current mnth depsits Payments may be received by cashier, Tuchnet, r lck bx All cash receipts crrectins dcuments Run the apprpriate reprts frm Finance Mart. Remember that n special ID r security access is needed t view and run reprts frm Finance Mart. Select the apprpriate reprt (see page 4 abve). Remember that yu may run the reprts t an Excel spreadsheet r t a printed reprt. Updated 9/13/05 Recrd t Reprt Overview Page 6 f 10

7 First examine the list f utstanding transactins frm the prir mnth s recnciliatin. Ensure that all have cleared and psted t the general ledger. It shuld be a rare event when an utstanding item carries ver t a secnd recnciliatin mnth. (Hint: instead f waiting an entire mnth until the next recnciliatin, check the status f utstanding items ne week and tw weeks after each recnciliatin). An utstanding item may nt have psted because additinal infrmatin is needed frm the department. If a prir mnth utstanding item remains unidentified, escalatin t a supervisr is recmmended. It is especially imperative t clear all utstanding items as quickly as pssible at the end f the fiscal year. Next review all current mnth transactins and actins t cnfirm that they have cleared and psted t general ledger. Make a list f all transactins that did nt clear fr fllw-up and add them t the list f utstanding items. Identify all errrs in psting. There may be chart field errrs r dllar amunt errrs. The cmbined amunt f utstanding items and errrs will represent the difference between yur departmental recrds and the ttals in Finance Mart. Fr transactins that have nt cleared and psted t the general ledger and Finance Mart in the current perid (mnth), make nte f: All apprpriate reference numbers such as: Requisitin numbers PO numbers Travel authrizatin number Travel expense reprt number Vendr ID and name Vendr invice numbers Vucher numbers Chart fields Custmer invice numbers (frm billing mdule) Custmer ID and name Depsit ID s Dllar amunt and any descriptins f the transactin Fr each f the items n the list f utstanding transactins, identify a plan f actin t either crrect and/r track the prgress f the transactins. Fr utstanding transactins, the psting may be delayed pending clarificatin r additinal supprting dcumentatin. There culd be a budget checking issue r a cmbinatin edit issue with the chart fields. Other causes fr delay culd be an incmplete chart field string r the use f a prject ID fr a grant that has reached the prject ending date. Updated 9/13/05 Recrd t Reprt Overview Page 7 f 10

8 Crrectin f errrs may require ne r mre f the fllwing actins depending n the situatin. Expense paid frm wrng chart field Budget transfer r budget allcatin Jurnal entry t change the chart field distributin Expense failed budget checking Allcate budget t the chart field Prepare jurnal entry mving expense t anther chart field Residual balance n a purchase rder Prepare a change rder t clse the PO Purchase rder recrded n the wrng chart field Prepare a change rder t crrect the chart field(s) Depsit applied t incrrect chart field Prepare a cash receipt crrectin dcument Custmer payment applied t incrrect invice Request a payment allcatin adjustment thrugh the AR mdule Never d this thrugh the general ledger Gather and clip tgether all f the recnciling dcuments, sign and date the cver sheet, and present it t yur supervisr r the next level f apprval fr review and signature. The recnciliatin packet shuld include the Finance Mart reprt, the list f utstanding items, list f errrs, and the plan fr crrectin f errrs. CHECKLIST OF TIPS Interdepartmental billings may be slw t prcess if A grant is being charged and grant has expired ending date There is insufficient budget fr the charge t be prcessed There is n budget fr the charge t be prcessed Chart field cmbinatin edit vilatins exist When running reprts in Finance Mart, avid being t specific in yur search. Yu may search fr a specific chart field string. In general search based n an fund ID, state fund ID with department ID, r a prject ID. The recnciliatin must be cumulative; each is built n the prir mnth recnciliatin. Updated 9/13/05 Recrd t Reprt Overview Page 8 f 10

9 The recnciliatin must be timely (Mnthly); set a schedule fr recnciling based n the clsing date f the accunting perid. Separatin f duties must be bserved; If separatin f duties is nt pssible, an independent higher-level review is needed. Use a standard template fr recnciliatin; when cmpleted, sign and date the recnciliatin. Remember that an entire jurnal may stall due t ne errr. Yur transactin may nt cntain errrs, but will stall if there are errrs n ther jurnal lines. Remember that the last payrll perid f June is pr-rated between tw fiscal years. This is based n the number f days in the last payrll perid that fall in each f the fiscal years. Remember t use the right tls. Recncile t Finance Mart, the fficial financial reprting tl fr USF. Remember there is a timing difference between Finance Mart and FAST general ledger. FAST GL is right nw. Finance Mart is as f the clse f business f the previus day. FOR HELP T view a very helpful web site n recnciliatin, created by the Office f Audit and Cmpliance, g t: Cnsult the University Cntrller s Office, Reprting and Technlgy Services Lisa Crley lcrley@admin.usf.edu Mark DeVre mdevre@admin.usf.edu Find helpful dcuments at the UCO training web site; this library includes training prgram dcumentatin, quick refreshers, and frms. T learn abut recrds retentin requirements, visit Cmpass at Search fr recrds retentin Updated 9/13/05 Recrd t Reprt Overview Page 9 f 10

10 T inquire abut specific transactins Check ut fr cntact infrmatin Call the Purchasing cntacts fr PO and requisitins Call the AP cntacts fr accunts payables questins Call the Billing cntacts fr utside billing questins Call the AR cntacts fr depsit questins Call Payrll cntacts fr payrll and benefits questins Call Travel cntacts fr authrizatins and expense reprts Find helpful dcuments at the UCO training web site; this library includes training prgram dcumentatin, quick refreshers, and frms. Query Name What it delivers U_FIND_MY_REQ_INFO Search by req #; find PO, vucher, check number U_FIND_MY_PO_INFO Search by PO #; find req #, vucher, check # U_CASH_BALANCE_FUND Search by fund ID; find current cash balance U_CASH_BALANCE_PROJECT Search by prject ID; find current cash balance U_PAYMENTS_BY_AMOUNT Search by amunt; find all custmer payments U_PAYMENTS_BY_DATE Search by date range; find all custmer payments U_PAYMENTS_BY_DEPOSIT Search by depsit #; find all custmer payments U_CF_ACCOUNT Find infrmatin abut general ledger accunts U_CF_FUND Find infrmatin abut fund IDs U_CF_PRODUCT Find infrmatin abut prduct cde chart fields U_LIST_DEPTID_CF Find infrmatin abut department chart fields U_LIST_INITIATIVE_CF Find infrmatin abut initiative chart fields Updated 9/13/05 Recrd t Reprt Overview Page 10 f 10