General Ledger Reconciliation BTFA03 The Florida State University Controller’s Office Presents:

Overview Ledger Reconciliation Objectives / Guidelines Departmental Ledger Reports High Level Analysis Source Documents and Corrections Reconciling Encumbrances

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 Controller’s Memoranda #02 - Ledger Reconciliation Guidelines Controller’s Memoranda #02 - Ledger Reconciliation Guidelines Reconciliations help to ensure proper internal controls and detect/prevent fraud This is a critical departmental function The Departmental Business Management Guide on the Controller’s website contains detailed information on internal controlsDepartmental Business Management Guide

Reconciliation Guidelines What should be reviewed? Obtain departmental ledger reports Trace to supporting documentation Verify: Dollar Amount Account Code charged Budget charged Allowable expenditure

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

Departmental Ledgers – OMNI Monthly Ledgers Official University Ledgers OMNI Financials > Reporting Tools > Report Search Page Reports available: Department Ledger Summary Detailed Reports (Expense, Revenue, Cash, Encumbrance, etc.) See BTFA02 materials for additional informationBTFA02 materials

Departmental Ledgers – OBI Reporting Financial Reports Data Warehouse accessed via OMNI Portal Page Reports Available: Summary and Detail Ledgers Equivalent of OMNI ledgers Transaction Details Expense, Encumbrance, Cash, Revenue, Liabilities and Other Assets transaction-level detail available Downloadable to Excel Trend Ledgers Year-by-Year Month-by-Month

Departmental Ledgers - OBI Reporting Financial Reports Timing of reports Data normally one day old Recommended that reports be run after OMNI Ledgers become available This helps to ensure data in OBI is final Job Aids available

High Level Analysis Review OMNI Summary Ledgers for: Positive/sufficient cash balances (Auxiliaries) Positive/sufficient available balances (E&G, Carryforward) Changes in OCO Any liabilities that did not clear from the previous month Tie OBI Reports to OMNI Summary Ledgers Month-by-Month Trend Ledger Useful tool for identifying charges out of line with the “norm” Pay special attention to abnormally high expenses and low revenues

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

Expense Source Documents Payroll Charges Verification of Payroll/OPS charges is somewhat cumbersome Use of the OBI HR-GL Detail report is recommended FSU_PY_FI_REP_INQUIRY security role may be needed Ensure your report matches total ‘PAY’ journals Compare to signed Payroll Certification report (Cost Center) Only verifying employees (not amounts)

Expense Source Documents Accounts Payable Charges ‘AP’ Journals Non-PCard backup available in OMNI via Document Management OMNI navigation Accounts Payable > Vouchers > Add/Update > Regular Entry > Find an Existing Value > Related Content Lookup backup invoices, POs, etc. by the Voucher # Additional Document Management information available on Payables & Disbursement Services website Payables & Disbursement Services website

Expense Source Documents Purchasing Card Charges ‘AP’ Journals to FIA CARD SERVICES Vendor FSU_DPT_PCARD_GL_DETAILS Older reconciliations available in Document Management Work with proxies to obtain most recent completed reconciliation

Expense Source Documents Facilities Charges Vendor = Facilities Detailed backup available in BlackBoard FACILITIES organization (ADM ORG) Contact Debra West to obtain Monthly file includes all University departments Via ‘Department Charges’ link Be sure to just print your department’s pages

Expense Source Documents Postage Charges ‘PST’ journals Postal Services website - chargeslip.uc.fsu.educhargeslip.uc.fsu.edu Postal Charges - SEARCH FOR COMPLETED CHARGE SLIPS link Pull up detail of charge slips entered by your department for a date range Match Order ID to JRNL LN REF field on Ledger UPS Charges

Expense Source Documents Travel & Expense Charges ‘EX’ journals OMNI Navigation – Travel and Expenses > Travel and Expense Center Search by Expense Report ID

Expense Source Documents Online Journal Entry Charges Backup available in OMNI via Journal Attachment feature General Ledger > Journals >Journal Entry > Create/Update Journal Entries Variety of Journal Sources Copy Equipment Charges from Business Services (‘BUS’) Background Checks processed by Human Resources (‘HR’) JRNL LN REF field contains date request processed This date should also appear on backup in OMNI Other online journals will normally begin with ‘0000’.

Expense Source Documents Network & Communications Charges ‘TEL’ journals Access to invoices at Budget Manager must submit a request to ITS for this access See ITS FAQ for more information at Departments Departments Monthly from when invoices are

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 Most backup will not be in OMNI; necessary to work with appropriate staff in your department

Corrections Expenditure Transfer Journal Entry Form Consult the Expense Account Lists when determining proper codingExpense Account Lists Signed form should be ed to General Accounting Revenue to Revenue Transfer Form / Student Financial Services (SFS) OMNI Correction Form Revenue to Revenue Transfer FormStudent Financial Services (SFS) OMNI Correction Form Be sure to use if correction effects revenue account(s) Instructions for forms are available

Reconciling Encumbrances Encumbrance – An allocation or reservation of funds for a particular expenditure in the future 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 T-Auths: Travel and Expenses > Travel and Expense Center > Travel Authorization > View

Reconciling Encumbrances Why would a Purchase Order no longer be needed? Vendor could not provide product/service Item paid for with PCard or via unencumbered payment Item not needed after all Cancelling a Purchase Order Issue a Change Order Form available on Purchasing WebsitePurchasing Website Detailed instructions also available on how to use this form

Reconciling Encumbrances Why would a Travel Authorization no longer be needed? Travel did not occur Travel paid from different source Expense Report not created by starting from a T-Auth, so encumbrance not cleared when ER processed Cancelling a Travel Authorization Cancellation done in OMNI Travel and Expense center Travel Rep will likely need to process

Contact Information Lauren Barrett– Quality Assurance Slides available at: