Download - General Ledger Reconciliation BTFA03 The Florida State University Controller’s Office Presents:
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General Ledger ReconciliationBTFA03
The Florida State University Controller’s Office Presents:
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Overview
• Ledger Reconciliation Objectives / Guidelines• Departmental Ledger Reports• High Level Analysis• Source Documents and Corrections• Reconciling Encumbrances
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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.• 2007-2008 Controller’s Memoranda #02 - Ledger Reconcili
ation 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 controls
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Reconciliation Guidelines
What should be reviewed?
• Obtain departmental ledger reports• Trace to supporting documentation• Verify:
• Dollar Amount• Account Code charged• Budget charged• Allowable expenditure
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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
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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
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Reconciliation Guidelines
• When is it due?• Completed, reviewed and signed off by end of the 2nd
succeeding month• Reconciling items resolved by the end of the 3rd
succeeding month• Retain Reconciliations 5 years
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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 information
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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
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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
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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
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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
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Expense Source DocumentsPayroll 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)
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Expense Source DocumentsAccounts 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
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Expense Source DocumentsPurchasing 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
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Expense Source DocumentsFacilities Charges
• Vendor = Facilities• Detailed backup available in BlackBoard
• FACILITIES organization (ADM 13122 ORG)• Contact Debra West ([email protected]) to obtain
access• Monthly file includes all University departments
• Via ‘Department Charges’ link• Be sure to just print your department’s pages
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Expense Source DocumentsPostage Charges
• ‘PST’ journals• Postal Services website - chargeslip.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
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Expense Source DocumentsTravel & Expense Charges
• ‘EX’ journals• OMNI Navigation – Travel and Expenses > Travel and
Expense Center• Search by Expense Report ID
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Expense Source DocumentsOnline 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’.
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Expense Source DocumentsNetwork & Communications
Charges• ‘TEL’ journals• Access to invoices at http://accounts.otc.fsu.edu/
• Budget Manager must submit a request to ITS for this access
• See ITS FAQ for more information at http://faq.its.fsu.edu/Billing-Invoices/Billing-Invoices-Departments
• Monthly email from [email protected] when invoices are available
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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
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Corrections
• Expenditure Transfer Journal Entry Form• Consult the Expense Account Lists when determining
proper coding• Signed form should be emailed 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
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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
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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 Website• Detailed instructions also available on how to use this
form
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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
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Contact Information• Lauren Barrett– Quality Assurance
• [email protected] • 645-8611
• Slides available at: http://controller.vpfa.fsu.edu/Training-Job-Aids