soa reconciliation
DESCRIPTION
SOA Reconciliation. Financial Operations Internal Controls University Audits Information Technology Systems. December 16, 2009. SOA Reconciliation Defined. Verify transactions in the system of record (M-Pathways) Ensure transactions are accurate and appropriate - PowerPoint PPT PresentationTRANSCRIPT
SOA RECONCILIATION
Financial Operations
Internal Controls
University Audits
Information Technology Systems
December 16, 2009
SOA Reconciliation Defined
Verify transactions in the system of record (M-Pathways) Ensure transactions are accurate and appropriate Compare to original source documents Identify errors Ensure policies and procedures are being followed
Confirm approvals Ensure transactions are properly reflected in the financials
(account, class, etc) Analyze differences Correct errors Check and balance
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Why Perform SOA Reconciliation
Be good financial stewards of University resources and help maintain compliance University financial data is accurate Information can be relied upon for decision making
Important detective control Fraud, theft, compliance violations, vendor issues,
irregularities, incorrect charges – can be detected earlier
A little work now can prevent big problems later!
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Why Perform SOA Reconciliation
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Great way to support key control objectives/assertions:
Completeness All transactions are processed (once and only once)
Accuracy All transactions are processed correctly
Validity All transactions are authorized or approved by appropriate person
Restrictiveness Access to certain functions is restricted to appropriate persons
Who Can/Should Perform SOA Reconciliation
“Detective work” – not just “tick/tie” Right people doing the job – right skill set Somebody familiar with the activity/related expenses
Ensure proper separation of duties No one individual can control a transaction from
beginning to end Ensure errors do not go undetected Compensating controls
Management oversight Making sure reconciliation is being performed
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When to Perform SOA Reconciliation
Monthly Timeliness Sponsor time limits
120 days from the time the transaction hits the statement to correct any errors
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How to Perform SOA Reconciliation
No single required method Key elements
Defined, documented process that makes sense for your unit
Evidence of the review Who, when, issues noted and resolution
Charges are valid and accurate All appropriate charges are present Corrective action is taken for issues identified
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How to Perform SOA Reconciliation
Example: Reconcile supplemental pay to approved PeoplePay form Don’t reconcile GPR to SOA
Example: Reconcile a vendor charge to the vendor invoice Quantity, rate, receipt appropriate Don’t reconcile a vendor charge to the voucher line
report eReconciliation provides electronic means to
maintain evidence of reconciliation, comments, etc.
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Other Key Points
Automation, process improvement initiatives, and up front preventative controls will help e.g., self-entry time reporting eliminates the risk of
re-keying errors
If supporting documentation lives in imaging systems, then reprinting is unnecessary; but keep any supporting documentation that is not in imaging systems – doesn’t need to be duplicative
Keep supporting documents current year + 2, for Sponsored documents, 3 years from final report submission
FinOps, ITS, Office of Internal Controls, and University Audits are all willing to assist unit
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Common Audit Issues
Reconciliations not done Done by “glance-over” instead of compare to source
documents No tickmarks, corrections, or evidence of review Reconciliations not signed/initialed or dated
User ID/Updt field and Date/Last Updtd field in eReconciliation acceptable
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Common Audit Issues
Concluding that expenses are in line with budget is NOT good enough
Lack of segregation of duties Use of shadow system to reconcile and shadow
system not reconciled to M-Pathways Discrepancies not investigated/corrected (JEs)
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Reconciliation Can Find Error & Fraud
Item keyed to your account mistakenly Deposits not being made Expenses not properly approved Ordering excessive supplies/inventory Unauthorized temp employees Mistakes/miss-keys
e.g., temp paid $78.50 instead of $7.85 per hour
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New Reports Available
Activity Summary Report by Dept – Indicates chartfields within your department that have had activity and should be reconciled
New run controls for SOA reports in FINODS Reports can be run by Dept ID, Dept Manager or SAPOC
Improved Reporting Adding checkbox and notes to current SOA reports Adding the ability to print reports with or without notes
Month-end close email to all reconcilers and department managers (pushed to users, not self-subscribing email)
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