The Florida State University Controller’s Office Presents:

General Ledger Reconciliation

BTFA03

Overview • • • • • Ledger Reconciliation Objectives / Guidelines Departmental Ledger Reports High Level Analysis Source Documents and Corrections Reconciling Encumbrances

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 Reconciliation Guidelines Reconciliations help to ensure proper internal controls and detect/prevent fraud • • This is a critical departmental function The Departmental Business Management Guide Controller’s website contains detailed information on internal controls on the

Reconciliation Guidelines What should be reviewed?

• • • Obtain departmental ledger reports Trace to supporting documentation Verify: • Dollar Amount • • Account Code charged Budget charged • Allowable expenditure

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

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

Reconciliation Guidelines • • When is it due?

• Completed, reviewed and signed off by end of the 2 succeeding month nd • Reconciling items resolved by the end of the 3 month rd succeeding Retain Reconciliations 5 years

• • • • 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

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

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

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

• • • 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

• • Expense Source Documents Payroll 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)

• • • • • Expense Source Documents Accounts 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

• • • • Expense Source Documents Purchasing 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

• • • Expense Source Documents Facilities 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

• • • Expense Source Documents Postage Charges ‘PST’ journals Postal Services website chargeslip.uc.fsu.edu • Postal Charges -

SLIPS

link

SEARCH FOR COMPLETED CHARGE

• 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

• • • Expense Source Documents Travel & Expense Charges ‘EX’ journals OMNI Navigation – Travel and Expenses > Travel and Expense Center Search by Expense Report ID

• • Expense Source Documents Online 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’.

• • • Expense Source Documents Network & 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

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

Corrections • • Expenditure Transfer Journal Entry Form • Consult the coding Expense Account Lists when determining proper • Signed form should be emailed to General Accounting Revenue to Revenue Transfer Form (SFS) OMNI Correction Form / Student Financial Services • • Be sure to use if correction effects revenue account(s) Instructions for forms are available

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

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

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

Contact Information

• • Lauren Barrett – Quality Assurance • [email protected]

• 645-8611 Slides available at: http://controller.vpfa.fsu.edu/Training-Job-Aids