We are using audio during this session, so please dial in to our conference line… • Phone number: 877-322-9648 • Participant code: 182500 FastFactsFeature Presentation May 8th, 2008
Today’s Topic • We’ll be taking a look at… • Monthly Account Reconciliation Guidelines • Records Retention
Today’s Presenter • Shari SwisherManager of Special Projects and Training, Financial Systems Administration, Controller’s Office
Session Segments • Presentation • Shari will provide an overview of account reconciliation processes since the implementation of HopkinsOne SAP. • During Shari’s presentation, your phone will be muted. • Q&A • After the presentation, we’ll hold a Q&A session. • We’ll open up the phone lines, and you’ll be able to ask questions. • Shari will answer as many of your questions as time allows.
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Survey • Survey • At the end of this FastFacts session, we’ll ask you to complete a short survey. • Your honest comments will help us to enhance and improve future FastFacts sessions.
Agenda Today, we’ll be taking a look at: • The purpose of Account Reconciliation • Why we reconcile • Who is responsible • Records Retention guidelines • Using the Account Reconciliation Guide • Identifying business processes and transactions for reconciliation • Risk based approaches to reconciliation
Why Should You Reconcile? • Reconciliation is a critical internal control measure. • Our goal is to assure that expenditures are: • Correctly charged • Allowable for the cost object • Allocable to the cost object • Appropriately approved and documented • Accomplish timely corrections of errors.
Who Is Responsible? • Administrative review • Reconcile sponsored and non-sponsored accounts monthly • Review control salary cost objects after each semi-monthly pay • Include actuals and commitments • Document the review process • Principal Investigator review • Review account activity after reconciliation is completed • Quarterly review is suggested
Records Retention Requirements • Financial records (electronic and paper), supporting documents, statistical records, and all other records pertinent to a sponsored award or tax return, shall be retained for a period of seven years from the date of submission of all deliverables. • Financial reports, patent reports, technical reports, and equipment reports are all examples of deliverables. Next we’ll look at the responsibility of the Controller’s Office, Research Administration, and the Department.
Controller’s Office • Documents maintained by the Controller’s Office include: • Expenditure statements • Validated deposit documents • Journal vouchers • Approved cost transfers, payroll and non-payroll • Supporting documents for disbursements • Effort reports • Financial reports and invoices sent to Sponsors • Scanned copies of documents residing in SAP: • Online payment requests for non-purchase order payments • Recurring payments
Research Administration Offices • The Research Administration Offices retain records that include: • Original award documentation • All award modifications • Prior approval documentation
Departments • Departments must retain: • Original proposals and budgets • Technical reports submitted to the Sponsor • Evidence of monthly reconciliation • Original documentation (packing slips and receipts) supporting all Procurement Card and American Express expenditures • Evidences of goods receipt (packing slips and receipts) for all non-Procurement Card expenses • Original documentation for travel expenses
Become Familiar with Resources • Controller’s Office Website • Quick Reference Guide • Links to BW Reports templates located under HopkinsOne Information • Shared Services Websites Click here to access the Guide. www.controller.jhu.edu
Account Reconciliation Guide • Review the Account Reconciliation Guide. • Processes are listed by chapter. • Includes view of reports in BW and transactions in R/3. • Helpful appendices.
Topics include: Payroll Supply Chain Procurement Cards Non-purchase Order Payments Travel & Expense Reimbursements Cost Transfers E210 Vacation Credits Revenue Internal Cost Allocations Net Assets & Fund Balance Carryover What Is Covered in the Guide?
Review What to Reconcile • Payroll and Fringe Benefits, Fellowships • Procurement Card Postings • Online Payment Requests • Travel Reimbursements and Advances • Internal Cost Allocations • Service Centers • Master Data- F&A, Budgets • Revenue http://www.controller.jhu.edu/acct_recon/acct_reconciliation_guide/Appdx_2_Reconciliation_Quick_Ref.pdf
Gather Materials • Review the prior month’s reconciliation. • Print the pertinent BW reports. • Use the statements received by email. • Run reports in BW. • Use pre-formatted reports available online: www.controller.jhu.edu
Review Postings • Review postings and match to back up documentation. • Check off each line item and attach necessary receipts and documentation. • Research discrepancies and missing documentation. • Initiate and document corrections (cost transfers, etc.) as necessary.
Final Steps • Document the completed reconciliation. • Signoff should include: • Listing of cost objects reviewed • Transactions reviewed (when responsibility is shared with someone else) • Month being reviewed • Corrective actions taken—cost transfers, etc. • Date completed • Save documentation for reference. • Discuss the reconciliation with the Principal Investigator. This process will vary by department.
Looking Forward • Our approach becomes more risk based. • Transactions with stronger internal controls require less scrutiny. • Workflow helps to validate expenses before they are incurred. • As improvements and enhancements are developed, reconciliation processes will be modified and streamlined.
Q&A • We’re going to open the phone lines now! • There will be a slight pause, and then a recorded voice will provide instructions on how to ask questions over this conference call line. • We’ll be answering questions in the order that we receive them. • We’ll also be answering the questions that were emailed to us during the presentation. • If there’s a question that we can’t answer, we’ll do some research after this session, and then email the answer to all participants.
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