Reconciliation Overview Deb Cundiff Jennifer Young McCormick School of Engineering

Reconciliation – What you'll learn today: Why do we do it? What is it? What is your role? Process and tools

Reconciliation - When A best practice is to reconcile all of your chart strings monthly, but no less than quarterly. 2017 MAC Meeting

Reconciliation - Why Review: Allowable Allocable Right Reasonable Status of Charges

Reconciliation - Why Validate balances/monitor deficits Reduce number of 90-day journals Keep everyone informed Monitor spending rate Audit protection

REQUIRED BY NORTHWESTERN AND SPONSORS!

Reconciliation – What Official requirements by Office for Research post-award administration of research grants: Review expenses for allowability, allocability, consistency, and reasonableness of costs and work with PI to remove inappropriate or non-compliant expenses  Process, manage and monitor all financial transactions in the research portfolio, including sponsor and cost share funds as appropriate  Reconcile accounts, provide timely and accurate financial information and reports to PI, and schedule meetings to review as necessary

Reconciliation – What & What Not Reconciliation vs. Projection Reconciliation always looks backward, actual expenses that have posted Projections – look forward at anticipated expenses that have not already occurred.

Reconciliation - What The Four R's: RRRR, matey! Recognizable – we recognize that Right – It was the right thing to do Reasonable – It was done correctly Reviewed – It was complete RRRR, matey!

Reconciliation – Roles Department Staff: Run and review budget statements Check available balances Correct errors Address open encumbrances Send statements to the PI (optional - also send spreadsheets) Maintain records Chart string manager/PI: Review budget statements and spreadsheets Ensure funds are spent appropriately Respond to questions and identify concerns Meet with staff to discuss as needed Provide direction for future expenses

Reconciliation – Process and Tools Run and review budget statements in Cognos: GM045 *Use this to check available balances on sponsored accounts.

Reconciliation – Process and Tools Run and review budget statements in Cognos: GL008 *Use this to review expenses and correct errors (you may need some input from the chart string manager). Can use GM096 instead of GL008 if you prefer

Reconciliation – Process and Tools Run and review budget statements in Cognos: GM096 (optional) Run the GM096, transfer info to workbook to review in depth

Reconciliation – Process and Tools Run and review budget statements in Cognos: SC016 *Use this to address open encumbrances (you can also use the GL008)

Reconciliation – Process and Tools Run and review budget statements in Cognos: PED (Payroll Expense Distribution)

Reconciliation – Process and Tools Check available balances Correct errors Address open encumbrances Send statements and reconciliation/projections Save them as a record

Additional Information – Troubleshooting Common pitfalls: Central charges/upload journals (bypass approval workflow) Last minute purchases Open encumbrances Subaward management Lack of communication Human error

Final Thoughts There are several different tools and processes you can use to reconcile your accounts. The important thing is that you have a process in place and you reconcile on a regular basis

Questions?