BTFA03: General Ledger Reconciliation

Overview Ledger Reconciliation Objectives / Guidelines Reconciliation Demo Reconcilation Lab Source Documents and Corrections

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.

Reconciliation Objectives Controller’s Memoranda #02 - Ledger Reconciliation Guidelines Controller’s Memoranda #02 - Ledger Reconciliation Guidelines Go to Controller’s webpage. (on right column) Publications>Controller’s Memorandum> Ledger Reconciliation Guidelines

Controller’s Memoranda #02

Reconciliation Objectives 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

Departmental Business Mgmt 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 Timing of reconciliations 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 - OBI Reporting Financial Reports Data Warehouse Reports Available: Summary and Detail Ledgers Transaction Details Trend Ledgers Year-by-Year Month-by-Month HR-GL Detail Job Aids available at omni.training.fsu.edu

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

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

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….

Build the E-Recon Instructions can be found on the Controller’s Sharepoint > Document Center > Training > General Ledger > BTFA03 Run the OBI transaction details, HR-GL Detail, Payroll Certifications. Copy into the worksheet. Run P-Card charges and postal charges. Copy into the worksheet. Run OMNI financials FSU_UBA_IMGID query for your department. Now you are ready to begin the reconciliation.

Expense Source Documents Payroll Charges Use OBI HR-GL Detail report to verify payroll/OPS 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) Use the Payroll Financial Reconciliation tab 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 Travel & Expense Charges ‘EX’ journals OMNI Navigation – Travel and Expenses > Travel and Expense Center Search by Expense Report ID

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

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 Online Journal Entry Charges Backup available in OMNI via Journal Attachment feature General Ledger > Journals >Journal Entry > Create/Update Journal Entries (or use General Ledger > Review Financial Information > Journal) 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 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 Facilities Charges

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 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 codingExpense Account Short ListData Dictionary Signed form should be ed 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 T-Auths: Travel and Expenses > Travel and Expense Center > Travel Authorization > View

Reconciling Encumbrances What if an encumbrance is no longer needed? Cancelling a Purchase Order Issue a Change Order Form available on Procurement Services WebsiteProcurement Services Website Detailed instructions also available on how to use this form Cancelling a Travel Authorization Cancellation done in OMNI Travel and Expense center Travel Rep will likely need to process Employee Self-Service > Travel and Expense Center > Travel Authorization > Cancel

Questions?

Contact Information Lauren Barrett– Quality Assurance Paul Harlacher – University Business Administrators Slides available at: