2. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 1 Online Training for Georgia State University Expenditure Review

3. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 2 About this Online Training… 1.You may progress through the presentation by using the mouse to click on the NEXT button. 2.All Definitions, Forms and Spectrum Report Instructions may be obtained from Web site http://www.gsu.edu/spectrum/. http://www.gsu.edu/spectrum/ 3.To EXIT the training at any time, press ESC.

4. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 3 About this Online Training… Throughout this online training are links to written documents that may be shown as either: an icon or a hyperlink Click here to view Document Expenditure Document NOTE: EXITING the secondary document will return you to this training

5. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 4 Introduction And Overview

6. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 5 What is an Expenditure Review? Expenditure Review is…… a review conducted after the close of the month to ensure that expenditures were authorized and posted. Introduction

7. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 6 Why do an Expenditure Review? Routinely performing an Expenditure Review is part of good Internal Controls. Introduction  IMPORTANT NOTE:  This training provides GUIDELINES that, if followed, result in satisfactory levels of compliance. Vice Presidents and Deans determine what the actual practices will be in their areas and may opt to adopt some or all of what is recommended in this training.

8. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 7 Why do an Expenditure Review? Routinely performing an Expenditure Review is part of Good Accounting Practices. Introduction  IMPORTANT NOTE:  If you see this symbol, the action is HIGHLY RECOMMENDED

9. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 8 Why do an Expenditure Review? Introduction Click here to review the document. “Exit” to return to this training. The Expenditure Review Process was initiated in response to a Presidential Internal Control Memo Presidential Internal Control Memo addressed to the Vice Presidents and Deans, dated March 3, 2005 The relevant section is: 1. Review of Expenditures.

10. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 9 Learning Objectives By completing this training, you will understand… the Steps to perform an Expenditure Review Who is responsible for each part of the Expenditure Review Introduction

11. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 10 OVERVIEW brief quizzes There are brief quizzes interspersed between and within the sections PART I –Section 1: Process Overview –Section 2: Roles and Responsibilities –Section 3: Job Descriptions PART II –Section 4: Navigating the Reports –Section 5: Expenditure Review - Concepts –Section 6: Expenditure Review – Applied ( How-to ) –Section 7: Other Spectrum Reports –Section 8: Resources/ References Introduction

12. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 11 Part 1

13. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 12 Expenditure Review Process – The BIG Picture Overview

14. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 13 The BIG Picture Overview of the Expenditure Review Process Close of Month Expenditure Review Performed Certification of Review End Discussed in this section

15. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 14 Expenditure Review Process – The BIG Picture Process Overview Trigger At the close of each month, a GroupWise email is sent to all authorized Spectrum users as a signal to begin the Expenditure Review Process. Exception: If you are not on GroupWise, you can find the month end date at http://www.gsu.edu/spectrum/ http://www.gsu.edu/spectrum/

16. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 15 Expenditure Review Process – The BIG Picture Process Overview Review of Expenditures An inspection of expenditure details that takes place monthly including… personal services (payroll) expenditures non-personal services (supplies, equipment, travel, etc.) expenditures all fund types including sponsored research

17. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 16 Expenditure Review Process – The BIG Picture Process Overview Review of Expenditures Ideally, each VP/Dean will determine the intensity of review performed in their areas. The intensity may range from: –an overview with attention given to those items appearing out-of-the-ordinary (recommended) to –a detailed review of a random sampling of expenditures to –a detailed review of all expenditures.

18. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 17 Expenditure Review Process – The BIG Picture Process Overview Certification of Review Certification of the review simply means that there is a monitoring system in place that involves Reviewers attesting to the fact that the expenditure review was performed.

19. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 18 Expenditure Review Process – The BIG Picture Process Overview Certification of Review It is recommended that the certification be written. Certification documentation may be: a standardized form, an email or other notation as prescribed by your VP/Dean

20. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 19 Expenditure Review Process – The BIG Picture Process Overview Certification of Review This suggested monitoring system involves reviewers attesting, in writing, that the Expenditure Review was performed. Certification documentation should include: -Name of person completing the review -Date review was performed -Speedtype(s) reviewed (NOTE: Ensure ALL applicable speedtypes are included.)

21. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 20 Expenditure Review Process – The BIG Picture Sample Certification Form Sample Certification Form Click here to download this Document. NOTE: Exit secondary application by clicking on top X to return to this training

22. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 21 Expenditure Review Process – The BIG Picture Process Overview Expenditure Review Summary Units should: –Certify performance of their Expenditure Review –Follow the documentation format/process prescribed by their VP/Dean. –Retain documentation for 24 months.

23. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 22 Use Mouse to click on answer buttons. After answering the questions, you must click on NEXT arrow to continue

24. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 23 1.The Trigger to begin the Expenditure Review is…. A.The last day of the current calendar month B.The 5 th day of the new calendar month C. The last day of each fiscal quarter D. When you get an email telling you that the previous month has been closed 2.What item does not need to be included in the Expenditure Review Certification Documentation? a.Date b.Name of VP/Dean c.Speedtypes that were reviewed d.Name of Reviewer Expenditure Review Process – The BIG Picture A C D C B A B D

25. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 24 3.Documents should be retained for …. a. 24 months b.Until completion of the following month’s review c.6 months d.None of the above 4.The units are free to use whatever format is approved by their VP/Dean to certify their review. a.True b.False Expenditure Review Process – The BIG Picture B D C B A A

26. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 25 Key People in the Expenditure Review Process Roles and Responsibilities

27. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 26 There are three Roles involved in the Expenditure Review Process: 1.The Initiator 2.The Approver 3.The Reviewer Key People in the Expenditure Review Process

28. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 27 Roles and Responsibilities Initiator: prepares a transaction for approval either in Spectrum or hardcopy Key People in the Expenditure Review Process

29. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 28 Roles and Responsibilities Approver: approves financial transactions in Spectrum or hardcopy. Approval means being able to affirm the business integrity of the transaction. Key People in the Expenditure Review Process

30. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 29 Roles and Responsibilities Approver Under the SPECTRUM system restrictions, the Approver… –May NOT initiate and approve the same transaction –May NOT allow others to sign Approver's name or use Approver’s Spectrum password to approve transactions Key People in the Expenditure Review Process

31. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 30 Roles and Responsibilities Reviewer: reviews financial transactions after they have posted to Spectrum to ensure appropriate use of funds. Key People in the Expenditure Review Process

32. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 31 Roles and Responsibilities Reviewer: To ensure segregation of duties, a Reviewer may also serve as Initiator OR Approver but ONLY one or the other. Key People in the Expenditure Review Process

33. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 32 Your Speedtype Roles assignments are based upon speedtype, thus your role can vary with speedtype. For example: For speedtype 0001,you may be assigned as the Initiator and at the same time, for speedtype 0004 you may be assigned as the Approver. Each speedtype has a single reviewer, but a single reviewer may be responsible for multiple speedtypes. Key People in the Expenditure Review Process

34. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 33 Search for your Speedtype To ensure you are reviewing all speedtypes “owned” by your area, click here for directions to access the Speedtype by Owner Query The Speedtype By Owner Query will give you a listing of all speedtypes within a –College, –Department, –Center, or –Unit. Key People in the Expenditure Review Process

35. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 34 Search for your Speedtype NOTE: Agency Funds and Technology Funds are not included in the Speedtype by Owner Query. To obtain a list of your speedtypes within these funds contact: –Accounting Services for Agency Funds –Information Systems and Technology for Technology Fee Funds Key People in the Expenditure Review Process

36. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 35 The Reviewer’s Responsibilities Performing your reviews on a monthly basis allows you to make corrections in a timely manner. Key People in the Expenditure Review Process

37. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 36 The Reviewer’s Responsibilities WHY should I do a review monthly? To “Manage” your budget more effectively. Consistent and timely reviews will help your area to proactively resolve irregularities and errors. Key People in the Expenditure Review Process

38. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 37 Management’s Responsibilities Keeping track of who’s who Use of good accounting practices includes maintaining up-to-date, written departmental documentation listing who performs which role for which speedtype. A Sample Form follows Key People in the Expenditure Review Process

39. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 38 SAMPLE FORM Expenditure/Payroll Transaction Responsibilities Form Download this Recommended Form NOTE: Exit secondary application by clicking top X to return to this training Key People in the Expenditure Review Process

40. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 39 Use Mouse to click on answer buttons. After answering the questions, you must click on NEXT arrow to continue

41. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 40 1.The Reviewer may also take on what other role? a.The Initiator b. The Approver c. Either, but ONLY one or the other d.Both 2.Assignment of roles is speedtype specific. a.True b.False C A B D A B Key People in the Expenditure Review Process

42. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 41 It IS in your Job Description Compliance Risk Job Description Updates Requirements for Persons with Budgetary Authority Faculty and Staff members with budgetary responsibilities are to adhere to these internal control policies.

43. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 42 It IS in Your Job Description Compliance Risk The guidelines/ monitoring system presented in this online training were developed to minimize the risk of being in non- compliance. The risks are real.

44. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 43 It IS in Your Job Description Compliance Risk Audits –To ensure compliance, University Auditing and Advisory Services periodically performs compliance audits; the results of which are forwarded to the Board of Regents. –Also performing compliance checks might be auditors from: the State the Board of Regents the Sponsoring Agencies (including the Federal Government)

45. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 44 It IS in Your Job Description It is highly recommended that expenditure review responsibilities are a part of the job descriptions/ job duties and that expenditure review is a part of annual performance evaluations of ALL persons who have budgetary responsibility. As the Person with AUTHORITY over a Budget

46. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 45 It IS in Your Job Description Human Resources & University Auditing and Advisory Services collaborated to create documents that assist with defining Job Expectations/Job Duties. Following are some helpful hints to use when you link to these documents……

47. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 46 It IS in Your Job Description Job Expectations for …. Persons with Budgetary Responsibility (including persons engaged in management of sponsored projects.) Click here to view Document. NOTE: Exit secondary application by clicking on top X to return to this training Please pay close attention to the sections on: - Payroll / Personnel Practices: Explicit Job Descriptions - Payroll / Personnel Practices: Employment Screening

48. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 47 It IS in Your Job Description Job Expectations for… Employees Engaged in Management of Sponsored Projects please note…… Ultimate responsibility cannot be delegated; as the Principal Investigator, you are responsible for all expenditures made from your budget. The best way to accomplish this is hands-on involvement in the management of your expenditures..

49. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 48 Use Mouse to click on answer buttons. After answering the questions, you must click on NEXT arrow to continue

50. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 49 1.It is recommended that persons with expenditure review responsibilities, have these responsibilities included in job description/job duties. a.True b. False 2.Which of the following entities may assist in ensuring compliance… a.University Auditing and Advisory Services b.The State Auditors c.The Board of Regents d.Sponsoring Agencies (including the Federal Government) e.Any of the above It IS in Your Job Description A A C D E B B

51. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 50 Part 2

52. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 51 The Data The Spectrum System has a consolidated report that displays, in a single table, the data necessary to perform an Expenditure Review. There are four versions of this consolidated report Actuals Drilldown Report nVision Actuals Drilldown nVision Project Drilldown Navigating the Reports

53. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 52 The Data Data in the Drill Down Reports are derived from the Actuals Ledger (also called General Ledger). Transactions listed have been approved and posted. (does NOT include pending transactions) Is the OFFICIAL financial record for the University Navigating the Reports

54. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 53 The Data NOTE: The Drill-down reports DO NOT apply to Agency Funds. For instructions on obtaining detailed expenditures for an Agency Fund, see http://www2.gsu.edu/~wwwspc/Reports/SpectrumPlusGeneralLedgerActivityReport- AgencyAcco.pdf http://www2.gsu.edu/~wwwspc/Reports/SpectrumPlusGeneralLedgerActivityReport- AgencyAcco.pdf Navigating the Reports

55. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 54 Working in the Spectrum Environment A link to the full, detailed written instructions for both reports is located in the RESOURCES / REFERENCES section at the end of this training. If you desire more instructions on the Spectrum System, www.gsu.edu/spectrumwww.gsu.edu/spectrum or for more extensive assistance please call the Spectrum office. Navigating the Reports

56. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 55 The Actuals Drill Down Report Actuals DrillDown Report include summarized and detailed financial transactions. This report can also be run for Sponsored Projects. This report applies to all fund types except Capital Projects and Agency Funds. Navigating the Reports

57. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 56 The nVision Drilldowns The nVision Actuals Drilldown & the nVision Project Drilldown include summarized and detailed financial transactions. The nVision Actuals Drilldown can only be run using Non- Project Speedtypes and the nVision Project Drilldown can only be run using Sponsored Project Speedtypes. NOTE: For Agency Funds, refer to information on Accounting Services Web site (http://www.gsu.edu/~wwwfas/AccountingServices/AgencyPresentation.pdf)http://www.gsu.edu/~wwwfas/AccountingServices/AgencyPresentation.pdf Navigating the Reports

58. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 57 Drilldown Training Guides Actuals Drilldown Report http://www2.gsu.edu/~wwwspc/Reports/ActualsDrillDownReport.pdf nVision Actuals Drilldown http://www.gsu.edu/images/SpectrumImages/nVisionActualsDrilldownReportTrainingGuide.pdf nVision Project Drilldown http://www.gsu.edu/images/SpectrumImages/nVisionProjectDrilldownReportTrainingGuide.pdf Navigating the Reports

59. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 58 Example: Actuals DrillDown Report – Summary Navigation: GSU> GSU Reports> Actuals Drilldown Report Navigating the Reports

60. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 59 Example: nVision Actuals Drilldown – Summary Navigation: GSU> GSU Reports> nVision Actuals Drilldown Navigating the Reports

61. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 60 Example: nVision Project Drilldown – Summary Navigation: GSU> GSU Reports> nVision Project Drilldown Navigating the Reports

62. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 61 REMEMBER: -Are used to review detailed financial transactions after approval/posting -Based on Actuals Ledger -Include both summarized and detailed financial information -Provide both monthly and cumulative financial transactions The Actuals Drilldown Report Navigating the Reports

63. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 62 Use Mouse to click on answer buttons. After answering the questions, you must click on NEXT arrow to continue

64. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 63 1.The Drill Down Reports open in the “SUMMARY” tab view. a. True b.False 2.To Print the prior month’s detail only, simply click the print icon. a.True b.False A B A B

65. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 64 Okay, just what exactly does an Expenditure Review entail??? What the Reviewer is Looking For Part A: Underlying Concepts Part B: “How-to”

66. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 65 What the Reviewer is Looking For Part A: Underlying Concepts Definitions

67. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 66 What the Reviewer is Looking For In General, What Should a Reviewer Look for? Purpose Do charges pertain to the purpose of the department or of the sponsored project?

68. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 67 What the Reviewer is Looking For In General, What Should a Reviewer Look for? Accuracy Are the charges familiar? Do they appear to be accurate as to : - Payee - Amount - Account

69. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 68 What the Reviewer is Looking For In General, What Should a Reviewer Look for? Completeness Do all payroll expenses for active employees and non-personal services transactions appear to be charged? Do any omissions stand out?

70. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 69 Summary of the Underlying Concepts of Expenditure Review Purpose Accuracy Completeness What the Reviewer is Looking For

71. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 70 Use Mouse to click on answer buttons. After answering the questions, you must click on NEXT arrow to continue

72. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 71 1.The Reviewer should review for… A.Purpose, Validity, Inclusion/Exclusions B.Accuracy, Materiality, Appropriateness C.Accuracy, Appropriateness, Accountability C.Purpose, Accuracy, Completeness D.Appropriateness, Purpose, Expenditure Volume What the Reviewer is Looking For D E C B A

73. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 72 What the Reviewer is Looking For Part B: “How-To” Beginning the Review Review Categories Red Flags

74. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 73 What the Reviewer is Looking For YOUR FIRST STEPS IN THE PROCESS 1.What you need to have physically in front of you: On Screen –The Drill Down report for the month under review On Paper –Your tickler file of significant or unusual expenditures

75. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 74 Expenditures Two (2) main categories –Personal Services Salaries (i.e., payroll) –Non-Personal Services P-Card transactions, Equipment, Phone Charges, Postage fees, Petty Cash,Travel, and Consultants’ fees What the Reviewer is Looking For

76. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 75 When Reviewing Personal Services, verify: All active employees are paid Only active employees are paid Terminated employees are not being paid Are the salary amounts reasonable? Are funding sources based on effort? Any new hires? Any terminations? Got QUESTIONS: Refer to payroll action forms and timesheets. If you do not have the documentation you need, these items are obtainable from the Payroll Office What the Reviewer is Looking For

77. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 76 When Reviewing Non-Personal Services verify: 1. P-Card charges Ensure that entries are consistent with your department’s P-Card Log activities On-line P-Card Training is available at http://www2.gsu.edu/~wwwpch/fordepartments.htm or http://www.gsu.edu/finance/44871.html Any additional questions regarding P-card activities should be addressed to Business Services What the Reviewer is Looking For

78. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 77 When Reviewing Non-Personal Services verify: 2. Equipment charges Ensure that purchases are for authorized business purposes and for your department. All questions regarding equipment purchases should be referred to Business Services (Purchasing Department). What the Reviewer is Looking For

79. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 78 When Reviewing Non-Personal Services verify: 3. Phone charges Refer to and cross-reference the Phone Bills sent to your department. Verify that long distance calls are for business purposes. All questions regarding phone charges should be referred to Telecommunications in IS&T What the Reviewer is Looking For

80. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 79 When Reviewing Non-Personal Services verify: 4. Postage charges Ask: Is the amount reasonable? All questions regarding postage charges need to be addressed (NOTE: All transactions should be documented with receipts and filed in your Tickler Files) to the reconciler and/or the individual incurring the postage charges. What the Reviewer is Looking For

81. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 80 When Reviewing Non-Personal Services verify: 5. Petty Cash transactions Check transactions for reasonableness. What the Reviewer is Looking For

82. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 81 When Reviewing Non-Personal Services verify: 6. Travel payments Verify the person traveling. Ask: What is the business purpose? Ask: Is the cost reasonable? For appropriate forms go to: http://www.gsu.edu/spectrum/38158.html What the Reviewer is Looking For

83. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 82 When Reviewing Non-Personal Services verify: 7. Payments to Consultants Make sure that: Only active consultants are paid The consultant amount is reasonable The funding source is appropriate For appropriate forms go to: http://www2.gsu.edu/~wwwfas/FinancialOperation/consultingcontract_new.html What the Reviewer is Looking For

84. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 83 NOTE: When reviewing Non-Personal Services charges, verify that documentation exists that can confirm or dispute all charges. Also consider maintaining a good Tickler file system for your bookkeeping records. What the Reviewer is Looking For

85. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 84 Use Mouse to click on answer buttons. After answering the questions, you must click on NEXT arrow to continue

86. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 85 1.Expenditures fall into which two categories? a.Exempt and Non-Exempt b.Cash in and Cash out c.Personal Services and Non-Personal Services d.None of the above 2.Non-Personal Services includes… a.Consultant fees b. Postage & P-Card Charges c.Travel charges d.All of the above What the Reviewer is Looking For C D D B C B A A

87. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 86 Be on the Lookout for…… Watch out for RED Flags to cut through the RED tape RED Flags such as: High Dollar Transactions New or Unknown Vendors Inappropriate Vendors Unusual Patterns in Spending Changes in Repetitive Transactions What the Reviewer is Looking For

88. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 87 Be on the Lookout for…… RED Flags High Dollar Transactions –Charges that are EXTREMELY high –Charges that are costly that are not your bills What the Reviewer is Looking For

89. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 88 Be on the Lookout for…… RED Flags New or Unknown Vendors -If you’re not sure, make sure! -Verify whether the vendor is associated with a service rendered to your department What the Reviewer is Looking For

90. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 89 Be on the Lookout for…… RED Flags Inappropriate Vendors –Ask “Is this item something that should be purchased from this vendor?” (i.e., payments to a restaurant may indicate a food purchase, which is generally not allowed) What the Reviewer is Looking For

91. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 90 Be on the Lookout for…… RED Flags Changes in Repetitive Transactions (Unusual changes to usual patterns of charges) –Look for obvious changes in transactions that normally are consistent (i.e. Salaries, Telephone charges, Copier rental fees, etc.) What the Reviewer is Looking For

92. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 91 Use Mouse to click on answer buttons. After answering the questions, you must click on NEXT arrow to continue

93. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 92 1.The following item(s) should be a red flag to Reviewers… a.High Dollar Transactions b.New or Unknown Vendors c.Inappropriate Vendors d.All of the above 2.A Reviewer should always question if an item is an appropriate purchase from that particular vendor. a.True b. False What the Reviewer is Looking For C B B A D A

94. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 93 What the Reviewer is Looking For Departmental OPTIONS Options to consider when designing YOUR department’s expenditure review procedures are: –Expenditure Volume –Materiality –Tickler File –Optional Review Steps

95. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 94 What the Reviewer is looking for Departmental OPTIONS Expenditure Volume What if my department has a high volume of monthly expenditures? You may decide to: –Only review those transactions over a certain dollar amount or –Take a random sample and review those transactions thoroughly or – a combination of the above

96. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 95 What the Reviewer is Looking for Departmental OPTIONS Materiality A department can determine at what level expenses are MATERIAL enough to warrant review. Some areas may opt to set a lower dollar limit under which the transaction does not have to be reviewed in detail if it appears to be legitimate.

97. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 96 The Reviewer’s Responsibilities Departmental OPTIONS Tickler Files Consider maintaining a tickler file of significant or unusual expenditures. This will consist of all hardcopies of expenditure documentation (Invoices, Purchase Orders, spreadsheets, etc.) Refer to this file during the next month’s review.

98. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 97 It IS in your Job Description Departmental OPTIONS You may decide in your area, to add additional review points to ensure that the expenditures are monitored as effectively as possible. If so, include these steps in your departmental procedures manual and in applicable job descriptions. Optional Review Steps

99. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 98 Use Mouse to click on answer buttons. After answering the questions, you must click on NEXT arrow to continue

100. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 99 1.Areas that routinely experience a high volume of expenditures VPs/Deans may opt to have their areas do one or more of these. A.Review every single one B.Review a random sampling C.Review only those above a certain dollar threshold D.All of the Above E. None of the above 2. To effectively monitor your expenditures, it is good practice to maintain a Tickler File with hardcopies of Invoices, Purchase Orders, etc. a.True b.False What the Reviewer is Looking For D A A B C E B

101. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 100 How to Get Questions Answered and Errors Corrected The Reviewer ensures corrections are made in a timely manner. –Preferably prior to the close of the month following the error occurrence. Making Corrections

102. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 101 How to Get Questions Answered and Errors Corrected Transfers/corrections made to –Expenditures for personal services are done by the Human Resource Officer in each college or VP area –Expenditures for non-personal services are done by journal, usually at the department or college level For more information regarding corrections done by Journal, Please contact Accounting Services. For questions on Interdepartmental Charges or Corrections, see the Interdepartmental Charges Contact List in the Reference section Making Corrections

103. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 102 How to Get Questions Answered and Errors Corrected If a questionable expenditure appears to be Fraud, Waste or Abuse, report it promptly to: 1.Your supervisor or other official within your organization, and/or 2.University Auditing and Advisory Services Making Corrections

104. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 103 Resources & References Fund Codes Helpful Web sites and Links

105. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 104 Resources & References Fund – an entity with a self-balancing set of accounts for recording assets, liabilities, fund balance, and changes in fund balance. Fund Code or Type – A budgetary distinction of funding by source/use of funds.

106. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 105 Resources & References List of all Fund Codes/Types Click here to download this Document. NOTE: Exit secondary application by clicking on top X to return to this training

107. BACKNEXT Georgia State University --- Expenditure Review -- Online Training 106 Resources & References Some Helpful Links: – Websites of some helpful links – Definitions – Contact List (Departments to contact with questions) – Spectrum Financial Reports – Preparation Instructions (consolidated in a single Excel Spreadsheet; prints in legal size) Exit secondary applications to return to this training

108. Expenditure Review Online Training Congratulations! You have learned about: Roles and Responsibilities of persons involved in the Expenditure Review process The underlying concepts and “how-to” steps of the Expenditure Review Process To EXIT please press ESC.