General Ledger Reconciliation BTFA03

1. The Florida State University Controller’s Office Presents: General Ledger ReconciliationBTFA03

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

3. 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 on the Controller’s website contains detailed information on internal controls

4. Reconciliation GuidelinesWhat should be reviewed? • Obtain departmental ledger reports • Trace to supporting documentation • Verify: • Dollar Amount • Account Code charged • Budget charged • Allowable expenditure

5. Reconciliation GuidelinesWhat 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

6. Reconciliation GuidelinesWho 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

7. Reconciliation GuidelinesTiming of reconciliations • 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

8. 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

9. 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

10. 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

11. 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

12. 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

13. 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)

14. 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

15. Expense Source DocumentsPurchasing Card Charges ‘AP’ Journals to FIA CARD SERVICES Vendor FSU_DPT_PCARD_GL_DETAILS Source document is completed, signed PCard Reconciliation Older reconciliations available in Document Management Work with proxies to obtain most recent completed reconciliation

16. Expense Source DocumentsFacilities Charges • Vendor = Facilities • Detailed backup available in BlackBoard • FACILITIES organization (ADM 13122 ORG) • Contact Debra West (ddwest@admin.fsu.edu) to obtain access • Monthly file includes all University departments • Via ‘Department Charges’ link • Be sure to just print your department’s pages

17. 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

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

19. 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’.

20. 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 help@otc.fsu.edu when invoices are available

21. 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

22. 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

23. 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

24. 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

25. 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

26. Contact Information • Samantha Myrick– Quality Assurance • smyrick@admin.fsu.edu • 645-8611 • Slides available at: http://controller.vpfa.fsu.edu/Training-Job-Aids