1 Grants Management (GM) Focus Monthly Accounting Reconciliation Process

2 2 Internal Service Providers (Cavalier Computers, P&T,etc) Demand Payment Vouchers (travel reimbursement, petty cash, utilities, etc) Invoices matching POs and LPOs P-Card Transactions Cost Transfers Labor Transactions (Pay, Fringe Benefits, Encumbrances) Purchasing Commitments (from Purchase Orders and LPOs) F&A (indirect costs) [Sponsored Program ‘G’ awards only]. Expenditure Credits Recoveries [Internal billing for services rendered] Manual Encumbrances Types of Transactions in GM

3 3 Reconciliation The process of comparing the transactions entered into the Integrated System to the department's input documents or other documents, either electronic or paper, and to determine which are complete, which are outstanding and which are in error and require correction.

4 Identify projects to reconciliation IS.GL_Revenue Project Relationships

5 5 Purpose of monthly reconciliations To maintain the integrity and accuracy of the University's accounting records through timely and accurate: –REVIEW of transactions and –RESOLUTION of errors and omissions.

6 6 Reconciliation Goals Review: (transaction details) To ensure accuracy, appropriateness, sufficient documentation, and to identify mistakes. Resolution: To correct mistakes in a timely manner.

7 7 Review Process The actions taken to verify that: –all transactions in your department’s accounts are charged to correct account codes –no transactions from other departments have been charged incorrectly to your department. –all transactions comply with university policies and procedures, and applicable state and federal laws and regulations

8 8 Resolution Locate missing documentation Take appropriate action to remove expenditures incorrectly billed to your PTA Transfer any expenditures that may have hit your Labor or OTPS suspense projects that belong to your PTA Complete monthly reconciliation form, indicating any outstanding expenditures not yet posted.

9 9 Available tools and resources Necessary reports (Oracle and Discoverer) Comparing expenditures and commitments to budgets Troubleshooting resources Audit requirements Document retention Step by Step GM Project reconciliation GM reconciliation/Resolution Section Content

10 To familiarize you with the tools resources available To identify what to gather, and what to file according to University document retention and audit requirements To provide you with a check-list of things to reconciliation To Outline troubleshooting actions, and To provide an instructor led step by step walk thru of an actual project reconciliation GM reconciliation/Resolution Section Objectives

11 Tools University policies and procedures for reconciliation and reconciliation Departmental documentation GM Reconciliation Form for Expenditure Projects Discoverer Reports Integrated System standard reports Current data in the Integrated System reconciliation and Reconciliation web site

12 What to gather Prior month reconciliations with any notations for corrections, etc. Department records/documents related to expenditures for Project/Task/Award combinations. Standard (or departmental) Expenditure Project Review and Reconciliation Form

13 Supporting Documentation (What to retain/Suggested Filing Procedure) All original supporting documentation related to financial transactions must now be retained by the department. Exception: Accounts Payable requires originals for petty cash and travel reimbursements and departments keep copies. Supporting documentation must be retained in such a manner as to satisfy local, state and federal audit requirements. Because documents need to be filed in a way that they can be retrieved on request, it is recommended that they be filed by Project/Task/Award combinations and then by date.

14 Supporting Documentation (Record Retention Policy and Procedure) Supporting documentation must be retained in such a manner as to satisfy state and federal records retention requirements. Retention Periods Payroll Records = 5 years + current fiscal year OTPS Records = 3 years + current fiscal year Note: These records may not be destroyed until an approved “Records Retention and Disposition Schedule” (RM3 form) has been submitted and approved.

15 Reports Needed FM_Project BBA by Expenditure Type FM_Expenditure Detail by Project FM_Payroll Expenditures by Project GM PAY (Optional)

16 Reconciliation Process Match transaction documentation to transaction listings on the Expenditure Detail report Make note of missing documentation Make note of any amount discrepancies

17 What to look for Do you have the documents related to the expense (including receipts for purchases made with a Purchasing Card), and do they match the charges? Do you have the required documentation for non-travel and non-petty cash expenditures?

18 What to look for Are there any unusually large or small expenditures in relation to the budget, prior months' trends, or other expectations?

19 What to look for Do you see any unexpected charges? If so, note follow up action required. Are there expected charges which are NOT here? If so, note follow up action required? Have all LPO's been recorded? If not, contact the purchaser for the information.

20 What to look for Have the correct PTAEO's been used? If not, note corrective action required. Do you see any unallowable costs based on University procurement regulations or OMB-A21 guidelines (e.g. improper recording of equipment or salaries)? [See CAS Guidelines],=.[See CAS Guidelines] If so, note corrective action required.

21 What to look for Are travel expenses reasonable and allowable (e.g., pre-approved where necessary, receipts for actual expenses)?travel expenses Has all original documentation of travel expenses been sent to Procurement Services, Accounts Payable Division?

22 What to look for Are petty cash expenses reasonable and allowable? Has all original documentation been sent to Procurement Services, Accounts Payable Division? Have appropriate credits been recorded properly (e.g., expense transfers or credits, sales of surplus property, program income)? Referred to as recoveries.

23 What to look for Have salaries been charged appropriately? If not, note corrective action required, both in the GM and LD modules. Have charges from internal service providers been recorded properly? If not, note corrective action required. Is the Project Manager Information correct and up to date?

24 Final reconciliation Steps Compare Budget to Actual Expenditures and commitments Transfer information to Expenditure Project reconciliation and Reconciliation form Note missing documentation and discrepancies for follow-up The Reconciliation form requires the preparer and approver/reconciliationer signatures. Both parties must understand the process.

25 What to look for Is this project headed for a deficit condition? If so, are there actions you need to take? Is this project nearing its "close date"? If so, are there actions you need to take?

26 GMreconciliationProcess Demonstration (Step by Step)