General Ledger Reconciliation (BTFA03) Presented by the FSU Controller’s Office

Reconciliation Objectives Verify the accuracy of the General Ledger Ensure sound financial management of University resources Provide management, auditors, and other users with reliable financial information. Reconciliations help to ensure proper internal controls and detect/prevent fraud- this is a critical departmental function The Business Management Guide on the Controller’s website contains detailed information on internal controls

Reconciliation Guidelines 07-08 Ledger Reconciliation Guidelines Go to Controller’s webpage. http://controller.vpfa.fsu.edu/ Look on the Resources menu to your right, and click on the link “Controller’s Memoranda” Scroll down to find the 07-08 Ledger Reconciliation Guidelines

Reconciliation Guidelines What should be reviewed? Obtain departmental ledger reports Trace to supporting documentation Verify: Dollar Amount Account Code charged Budget charged Allowable expenditure Expenditure Guidelines located: http://controller.vpfa.fsu.edu/services/accounts-payable First listed resource on the right side of the page

Reconciliation Guidelines What are the final steps? Correcting Journal Entries Finalized recon MUST include: GL Balance information Name of preparer Date prepared Name/signature & date of reviewer Reconciling items and notes on their resolution Adequate supporting documentation of all transactions

Reconciliation Guidelines Who can perform/review? It is critical that proper segregation of duties is maintained The Budget Manager/designee should perform the reconciliation Employees who originate and/or authorize transactions being reconciled SHOULD NOT perform or review/sign off on the reconciliation Preferably, review/sign off should be done by someone at the supervisor/management level

Reconciliation Guidelines Timing of reconciliations When is it due? Completed, reviewed and signed off by end of the 2nd succeeding month Reconciling items resolved by the end of the 3rd succeeding month Retain Reconciliations 5 years

High Level Analysis Review OMNI Summary Ledgers for: Positive/sufficient cash balances (Auxiliaries) Positive/sufficient available balances (E&G, Carryforward) Any liabilities that did not clear from the previous month Tie OBI transaction details to summary ledgers

Reconciliation Demo

Expense and Revenue Source Documents Must support all transactional information on the departmental ledger Most detailed work relates to Expenses Revenue source documents will vary widely Let’s reconcile one of your budgets….

Reconciliation Lab

Build the E-Recon Full step-by-step instructions can be found on the Controller’s Sharepoint Controller's Office SharePoint Link > Training > BTFA03 GL Recon

Revenue Source Documents Will vary widely from department to department Source Documents include: Revenue Deposit forms (DT118) Revenue-to-Revenue Transfer forms Departmental Refund Forms Bank Deposit Slips SFS Cashier Receipts Returned Checks Auxiliary AR/Billing Activity (BI journals) for auxiliaries using this system; see AR/Billing training guides Most backup will not be in OMNI; necessary to work with appropriate staff in your department

Corrections Departmental Online Journal Entries (DOL) Form Find on the Controller’s webpage under General Accounting Forms Also covered in BTFA01 Remember: Consult the Expense Account Short List or Data Dictionary when determining proper coding Signed form should be emailed to General Accounting Revenue to Revenue Transfer Form / Student Financial Services (SFS) OMNI Correction Form Be sure to use if correction effects revenue account(s) Instructions for forms are available

Reconciling Encumbrances What is an encumbrance? Encumbrances are established by: Travel Authorizations Purchase Orders Payroll Charges Track Encumbrances to make sure they are closed when final payment is made Research encumbrances older than 90 days POs: Purchasing > Purchase Orders > Review PO Information > Purchase Orders Travel Requests: Within Concur

Reconciling Encumbrances What if an encumbrance is no longer needed? Cancelling a Purchase Order Issue a Change Order Cancelling a Travel Request Cancellation done in Concur

Contact Information Quality Assurance QualityAssurance@admin.fsu.edu Josh Miller – UBA jmm07g@fsu.edu Slides available at: http://controller.vpfa.fsu.edu/training Located under “General Ledger training materials”