Transcript Review and Reconciliation

Fund Accounting and
Reconciliation Process
University of Virginia
Welcome!
Fund accounting and how we use it
Expenditure reconciliations
Revenue reconciliations
Cash reconciliations
Appendix of Sponsored Programs
reference material
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What is Fund Accounting?
A method of segregating resources (i.e.,
funds) into categories to identify both the
source of funds and the use of funds.
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Sources of Funds
Tuition
and Fees
Commonwealth
of Virginia
Patient
Services
Gifts
Grants
Sales and Services
Investment
Income
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Awards
Installment
Award
SG, LG
G_
Installments should not
exceed the amount of
revenue collected
(except for Sponsored
Programs and Sales and
Service)
DR, DU
FA
SS, LS
YY
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Uses of Funds
University’s
mission
Instruction
Research
Public service
Patient Services
Also…
Academic support
Institutional support
Student Services
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Projects
Project
#1
Award
Budgets are established
when projects have been
funded
Project
#2
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PTAEO
GA Charging Instruction
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Transaction Flow
Accounts
Receivable
Grants
Accounting
PTAEO – COA
Detail Summary
Internal Service
Providers (isp)
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2 Basic Types of Projects
Expenditure
Expenditure projects can be identified as
projects linked to, and funded by an award
Revenue
Revenue projects provide and identify the
funds that back up award installments
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GL
P102003
Revenue
ADR01340
GA
SA – UCS Gifts
SA – UCS Gifts
Expenditures
P102003
SA – UCS
Gifts
P107165
P107168
SA – UCS
SA – UCS
Employer Svc CLAS Svs
P107173
P117976
P11797
SA – UCS
Library
SA – UCS
NYRA
SA – UCS
Resume
Marathon
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Sponsored Program Awards
(Awards that start with a “G”)
Sponsored Programs DO NOT have an
associated revenue project
Sponsors’ awards provide spending
authority via letter of credit (LOC) cash, or
other means
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YOU ARE HERE
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Identify Projects to Reconcile
IS.GL_Revenue Project Relationships
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Reconciliation
Compare transactions in the Integrated
System to the department's documents
Determine if transactions are accurate and
complete
Identify outstanding transactions and those
that need correction
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Supporting Documentation
All original supporting documentation related to
financial transactions must be retained by the
department
Exception for petty cash and travel
reimbursements
•Original documents to Accounts Payable
•Copy for the department
Provide source documentation in a timely manner, if
requested by a central financial office or an internal or
external auditor
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Timeliness
Financial Procedure 1.4.
http://www.virginia.edu/finance/polproc/proc/1- 4.html
Complete reconciliation by the 10th working
day of the month
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Review
Are all transactions charged or credited to
the correct account codes (PTAEO or COA)?
Were any transactions from other
departments charged/credited incorrectly to
your PTA?
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Review
Do all transactions have supporting
documentation (as required)?
Do all transactions comply with University
policies and procedures, and applicable state
and federal laws and regulations?
Note discrepancies, and have both the reconciler and
approver sign and date the monthly transaction detail report
or optional standard reconciliation form
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Additional Review for Grants/Contracts
Review Notices of Award (NOA) and verify accuracy
of data
Sponsor NOA
OSP NOA
Understand the difference between direct and
indirect costs
Direct: Expenditures for payroll, supplies, etc.
Indirect: F&A rate negotiated between UVA and
the Federal Government applied to direct
expenditures
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Resolution
Locate missing documentation
Remove transactions that don’t belong on
your PTA/COA
Note outstanding expenses/revenues
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Resolution
Move expenditures in your suspense projects
(Labor/OTPS) to your PTA
Additional policies and procedures may apply for
Sponsored Program projects and awards
Optional: complete Standard Expenditure Project Review
and Reconciliation Form
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Record Retention Policy and
Procedure
University record retention website:
http://www.lib.virginia.edu/speccol/about/records_mgt.html
Supporting documentation must be retained in
such a manner as to satisfy state and federal
records retention requirements (or until the
Institution has been audited)
State Retention Periods
Payroll Records = 5 years + current fiscal year
OTPS Records = 3 years + current fiscal year
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Record Retention Policy and
Procedure
For the Health Sciences Center record
retention policy contact:
John Redmond, Administrative Services: 982-3452
Abraham Segres, Risk Management: 924-5595
Sponsored Program Retention Periods
7 years for Grants (or until audited by the Sponsor)
Life for Contracts
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Reconciliation Links website
http://www.virginia.edu/finance/reconlinks.html
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Time for a break?
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Monthly Account
Reconciliation
Expenditure Focus
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What to gather
Prior month reconciliations and notes
Department records/documents related to
expenditures for PTA or PA combinations
Optional: Standard Expenditure Project Review
and Reconciliation Form
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Reports Needed
Required:
FM_Project BBA by Expenditure Type
FM_Expenditure Detail by Project
Recommended:
GL_Only Project Activity Detail
Optional:
FM_Payroll Expenditures by Project
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“O” in the
PTAEO
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Reconciliation Lab
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Troubleshooting Expenditures
Actions:
Seek missing documents
Gather information about transaction
discrepancies
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Troubleshooting Expenditures
Actions (cont’d):
Finalize transactions on projects/awards to be
closed
Close completed POs if there are no pending
invoices
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Additional Reports
Discoverer
IS.LD_Labor Suspense Project Balance Report
IS.FM_OTPS Suspense Project Balance Report
Discoverer
PDW4X.PS.AP 110 Held Payment Vouchers
PDW4X.PS.AP 120 Held Invoices on Receiving Hold
PDW4X.PS.AP 130 Held Invoices With No Valid PO
Oracle Standard Report
UVA PA Installment vs. Funding vs. Expenditures
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Award Management
IS.FM_Award BBA by Award Manager
Review budget and actual totals and take
corrective action as necessary
Note: This is not a mandated activity, but Award
Managers are expected to monitor their awards and
to manage to established budgets
UVA Installment vs. Funding vs. Budget vs.
Actual (Oracle Standard Report-optional)
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Monthly Account
Reconciliation
Revenue Focus
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GA to GL mapping
GL Chart of Accounts (COA)
one
to
one
Many awards to one entity
Many
awards
to one
fund
source
Many
expend
types to
one object
code
one
to
one
GA PTAEO
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Transaction Flow
Accounts
Receivable
Revenue
Budget
(sales and
services
Bank Deposits
Cashier’s Office
Credit Card Receipts
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What to Gather
Prior month reconciliations and notes
Department records/documents related to
deposits or transfers for this GL project
combination
Optional: Standard Revenue Reconciliation Form
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Needed Report
IS.GL_Only Project Activity Detail
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This deposit slip
contains items for two
projects. Item #3
relates to project
114977
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Troubleshooting
Take needed actions:
Seek missing documents
Track down transaction discrepancies
Make correcting entries, or get the
appropriate central office to make them for
you
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Cash Reconciliation
Not applicable to all revenue projects
Schools and departments that reconcile to
cash (vs. budget) should review and
reconcile net cash
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Needed Reports
Required:
UVA Cash Balance By Project (Oracle standard report)
or
GL_Cash Balance by Project (Discoverer report)
Recommended:
BU_Budget to Actual by Revenue Project
Optional:
UVA PA Revenue vs Installment vs. Funding vs
Expenditures (Oracle standard report)
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Questions ??
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Accounting Services
Training and Outreach
Lynn Galasso
Lynne Hancock
Devin Herod
[email protected]
[email protected]
[email protected]
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Sponsored Programs
Appendix of
Reference Materials
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What is a Sponsored Program?
Awards that start with a “G”
Funds provided by an external sponsor in
the form of a Grant or Contract
Each Grant or Contract has a Principal
Investigator who has the overall
responsibility for award expenditures.
Each Grant or Contract has its own Notice
of Award that sets out contractual terms
and conditions.
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Know your grant!
Review Sponsor’s Notice of Award (NOA) and
the OSP NOA.
Verify that all data on both are accurate
Direct & Indirect (F&A) dollar amounts
Begin, End, and Close dates
Verify Grant dollar Amount is the same as the
budget
Verify F&A / Indirect Cost rate is correct
Familiarize yourself with the Terms and
Conditions
Know whether award has cost-sharing or not
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Sponsored Programs
Reference Appendix Content
Award Prefix Definitions
Federal Regulations
How is your award funded?
Cost Sharing
Direct Costs
Cost Transfers
Retro Cost Transfers
F&A Costs
Subcontracts
Required Actions
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Sponsored Program
Award Prefixes
GA
GB
National Science Foundation - Letter of Credit
Department of Energy – Letter of Credit
GC
GD
GE
GF
GG
Department of Health & Human Services – Letter of Credit
NASA, Langley – Letter of Credit
Center for Innovative Technology – Letter of Credit
Foundations
Other Federal Government (non-Letter of Credit) such as DOD
GH
GI
GJ
National Endowment for Humanities – Letter of Credit
Industry
National Endowment for the Humanities (VA Foundation for the Humanities) – Letter of Credit
GK
Environmental Protection Agency – Letter of Credit
GL
Department of Commerce (National Oceanic Atmospheric Administration) – Letter of Credit
GM
Department of Education – Letter of Credit
GN
GO
GP
GQ
GR
GS
GW
NASA, Headquarter – Letter of Credit
Other… such as other institutions, or other government bodies
NASA, Goddard – Letter of Credit
Department of Energy, Chicago – Letter of Credit
NASA, Glenn – Letter of Credit
State
Department of Education College at Wise – Letter of Credit
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Additional Regulations
Know which Federal and Institutional
regulations and policies apply.
http://www.virginia.edu/sponsoredprograms/
All Federal Grants are governed by cost
accounting standards (CAS) set out in
the Federal OMB Circular A-21.
http://www.virginia.edu/sponsoredprograms/casguidelines.pdf
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How is your award funded?
Event Based Billing
Sponsor invoiced based on a particular event
(eg, time period, specific event such as a
conducting a clinical trial, etc)
Cost Based Billing
Sponsor invoiced at the end of each period
based on actual costs incurred during the
preceding period.
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Cost Sharing
When UVA contributes faculty time, money, or
other items of value toward the cost of the
project
May be required by the sponsor, may be
committed by the PI in the proposal, or may be
‘voluntary’ on the part of the institution
More than a nominal amount
More commonly found on grants and
cooperative agreements than on contracts
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Methods of Cost Sharing
Effort
percentage of Salary & Wage for
specified individuals
fringe benefits
Cash (direct expenditure costs)
Equipment
Un-recovered Facilities and
Administrative Costs
F&A Costs
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Direct Costs Must Be:
Allowable
Under the provisions of OMB Circular A-21
And under the terms of the particular award.
Allocable
The project must directly benefit from the
expense.
Reasonable
In that a “prudent person” would have paid the
same price.
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Direct Costs: What to look for
Have expenditures been incurred
during the grant period?
Are there any unallowable
expenditures?
Are Payroll charges accurate and
appropriate?
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Cost Transfers
Governed by the same costing principles as direct costs:
Allowable
Allocable
Reasonable
UVA policy: Section VIII.8-20 of UVA Procedures
http://www.virginia.edu/finance/polproc/proc/8-20.html#top
Requires knowledge and approval of PI
Subject to OSP review
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Retro Cost Transfers
Applies to transfer of any grant expenditures over 90
days old, including labor distribution or awards
where the end/close date is in the past.
Complete OSP Retro Request Form and send to
[email protected]
Requires OSP retro approval number
UVA policy: Section VIII.8-21 of UVA Procedures
http://www.virginia.edu/finance/polproc/proc/8-21.html
Requires knowledge and approval of PI
OSP responsible for approving or rejecting
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F&A Costs
Two basic types:
Total Direct Costs (TDC)
Modified Total Direct Costs (MTDC)
Basic rates:
On-Grounds Research
On-Grounds Public Service
Off-Grounds Research
Off-Grounds Public Service
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Review Indirect Costs (F&A)
F&A accrued each day on which there
are applicable direct cost expenditures.
Cumulative, that is, one F&A calculation
for all expenditures on a given day.
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Indirect Costs: What to Look For
Were correct Expenditure Types used
on subcontract invoices?
Svcs, Subcontracts, SPON PRGM [first
$25,000 each subaward]
Svcs, Subcontracts, OSP, No F&A [all
payments above the $25,000 thresh hold]
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30 Days prior to end of Grant Period
If appropriate and at the request of the PI, file
necessary paperwork with OSP to set up new
preliminary (at risk) extension of the account.
At PI request, file necessary paper work with
OSP/Sponsor for no cost extensions.
If project is in deficit, take actions to clear deficit.
Notify OSP Accountant (Project Manager) if you
anticipate cost overruns.
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Actions at end of Grant Period
If cost sharing on the award – file report with
OSP. (Note:NOA terms and conditions may dictate more frequent
reporting of Cost Sharing information)
Clear out all commitments
Make sure all POs are finally closed
Make sure all Subcontractor invoices have been
received and paid.
Make sure all P-card expenditures are included.
If project is in deficit, take actions to clear deficit.
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Questions ??
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Accounting Services
Training and Outreach
Lynn Galasso
Lynne Hancock
Devin Herod
[email protected]
[email protected]
[email protected]
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