Ledger Reconciliation Best Practices and Guidelines

Guidelines for effective ledger reconciliation, including verification of transactions, use of source documents, and completion of necessary certifications to ensure accuracy and compliance.

• Financial Management
• Accounting Procedures
• Internal Controls
• Ledger Reconciliation
• Compliance

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1. General Ledger Reconciliation Controller s Office/Quality Assurance Kim Coates

2. COURSE TOPICS Ledger Reconciliation Objective Types of Funds Printing Financials OMNI Reports OBI Reports Source Documents Omni Financials Queries Hummingbird Corrections

3. LEDGER RECONCILIATION OBJECTIVE Verifies the accuracy of the general ledger Ensures sound financial management of University resources Provides management, auditors, and other users with reliable financial information Annual Report Bond Ratings Internal Control provides assurance to auditors that our financial statements are fairly stated Results in a favorable Auditor s Opinion

4. RECONCILIATION GUIDELINES 2007 2008 Controller s Memoranda #02 Ledger Reconciliation Guidelines May 14, 2008 Controller s website http://control.vpfa.fsu.edu/memos.html Budget Manager or designee is responsible for performing the monthly reconciliation(s). Reconciliation should be performed by someone that does not originate or authorize the financial transactions

5. RECONCILIATION GUIDELINES Designated file for source documents needed for an accounting period until the ledgers have been reconciled e.g. purchase orders, invoices, deposit receipts May use Excel spreadsheet for depts. with a large volume of transactions Obtain departmental ledger reports Trace detailed transaction ledger information to supporting documentation

6. RECONCILIATION GUIDELINES In reviewing each of the transactions, the following items should be verified: Dollar amount is correct Account code charged is correct Dept ID and Fund code charged are correct Expenditure is allowable according to FSU Policies and Procedures (Expenditure Guidelines) http://control.vpfa.fsu.edu/payables.html Write your initials and the Journal ID number and date at the top of each source document The reconciliation process will identify errors and missing items.

7. RECONCILIATION GUIDELINES Make correcting journal entries Any reconciling items should be noted on the Ledger Reconciliation Certification and/or the Ledger Reconciliation Correction Record Reviewed by a Supervisor/Asst Director Complete Ledger Reconciliation Certification Should be completed by the end of the following month, and reviewed and signed off on by the end of the second succeeding month Resolve reconciling items as soon as possible, but no later than the third succeeding month

8. TYPESOF FUNDS E & G Auxiliary & Locals The Legislature appropriates money to FSU based on enrollment. Spending is limited to the budget Examples: Controller s Office, Academic depts. Self-sufficient business entities that provide a service to the campus and others for a fee. Examples: Bookstore, Computer Store, Printing and Mailing Services Spending is limited to cash Auxiliary Funds - (300 s/700 s) Current Year Funds (110, 210, etc) Carryforward Funds (140,240, etc.) Locals: Student Activities (610) Vending (620) Athletics (630)

9. OMNI MONTHLY FINANCIAL REPORTS Official University Ledgers Departmental Ledger Summary Includes actual and budget information Summarizes beginning balances, current monthly activity, and ending balances Detailed Reports Can run by department or project (C&G) Includes all University departments Use binoculars to search for your department Print only the pages for your department

10. OBI REPORTING FINANCIAL REPORTS Data warehouse tool replaces Business Objects Summary and Detail Ledgers as current as the previous day date & time stamped Wait for notification from the OMNI-Financials Listserv that the OMNI Ledgers are ready before you complete your reconciliation May want to verify that the totals match the OMNI ledgers (if you completed recon before the OMNI ledgers were released) Job aids link is located at Controller s website http://www.erp.fsu.edu/jobAids.cfm?user=obi

11. EXPENSE DETAIL REPORT Compare all expenditure source documents to the transactions listed on the report Source documents include: Invoices Travel expense reports Payment request forms Journal transfer forms Postal charge slips Telecom Charges Expense refund slips (DT 118B) Facilities Dept Charges

12. OBI REPORTS HR-GL DETAIL Provides detail of Salary and OPS expense Verify the employees listed on the HR-GL Detail Report belong in the department/fund you re reconciling Compare the Grand Totals to the Departmental Ledger for the month If it does not equal look for : AP (Accounts Payable) journals Usually an employee that paid for benefits with a personal check instead of payroll deduction May need role request to access the report

13. HUMMINGBIRD Purchasing, Accounts Payable, and Travel source documents are scanned into this program Lookup Expenses by: PO # Voucher # Invoice # Vendor # Travel Expense Report # Link on Controller s website - http://control.vpfa.fsu.edu/

14. P-CARD EXPENSE Use the approved P-card Reconciliation as backup for the P-card expenses FIA Card Services on GL Verify that the amounts and accounts charged are correct Verify department and fund charged are correct Query to look up P-card expenses FSU_PCARD_TRANS_INFO Need Employee ID numbers

15. REVENUE DETAIL REPORT Compare revenue source documents to the transactions listed on the report Source documents include: DT118 forms with receipt from Student Financial Services Revenue-to-Revenue transfer forms Florida State University Refunds Forms Sales Tax or other refunds Bank Deposit Slips SFS Cashier Receipts Returned Checks

16. ENCUMBRANCE DETAIL REPORT Encumbrance is 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

17. ENCUMBRANCE DETAIL REPORT Ensure Travel Authorizations that have been fully paid with an Expense Report no longer have remaining encumbrances Any Travel or Purchase Order encumbrances (excluding Blanket POs) that are over 90 days old should be researched and explained on the Monthly Reconciliation Certification

18. LIABILITY DETAIL REPORT Verify each liability created is cleared Research any liability that is carried forward continuously from one accounting period to another

19. CASH DETAIL REPORT Details all cash transactions for the month Generally the cash balance is checked throughout the month Controller s Office is responsible for cash reconciliations Check Cash balance on the Departmental Summary Report

20. TRANSACTION DETAILS REPORT Download Detail Departmental Ledgers to: Excel PowerPoint Excel 2000 Data Web Page Print Option

21. OMNI FINANCIALS Travel and Expense Center Lookup Travel Authorizations or Expense Reports Financials 8.9>Travel and Expenses>Travel and Expense Center>select Travel Authorization or Expense Report>View General Ledger Center Lookup Journals OMNI Financials 8.9>General Ledger>Review Financial Information>select Journals

22. QUERIES OMNI Navigation FINANCIALS 8.9>Reporting Tools>Query Viewer Useful Queries (FSU_DPT) Cash Balance (Auxiliaries) GL Journals Trial Balance GL Source Codes P-Card Transactions Complete list of FSU_DPT queries at http://control.vpfa.fsu.edu/queries.html

23. CORRECTIONS Correcting Outstanding Travel Authorizations If the travel did not occur, have the travel rep that originated the TAuth delete the Travel Authorization. If the travel did occur, but was paid from another funding source, have the travel rep that originated the TAuth cancel the Travel Authorization If the travel did occur, but the travel rep did not choose the Quick-Start option A Travel Authorization to copy- from TAuth when creating the ER, have the travel rep print/copy an Expense Receipts page for the ER, write a note to file on the blank page referencing the canceled TAuth, fax the page to Hummingbird DM, and then cancel TAuth

24. CORRECTIONS O/S Travel Auth. Continued Hummingbird Fax Travel Contact List 645-9501 If the ER references the Tauth, cancel the TAuth If the travel did occur and was never paid, have the travel rep complete an Expense Report. Encumbrance Reduction or Cancellation Purchasing Website Forms Change Request Form

25. CORRECTIONS Chartfield Error (Dept, Fund, Account, Amount) Controller s Forms Expenditure Transfer Journal Entry Form (Non- Construction) Deposit Errors Student Financial Services Forms Correction Form

26. RETAIN RECORDS Reconciliations should be retained indefinitely

27. HELPFULWEBSITES Controller s Office - http://control.vpfa.fsu.edu/ Forms Policies & Procedures Controller s Memoranda Fundamental$ Queries Budget Office - http://www.budget.fsu.edu/ Training Manuals and Policy Auxiliary Manual Auxiliary Policies

28. OMNI REPORT NAVIGATION Reporting Tools Report Search Page Input : Period Department Project # Fund Code Print Summary Ledger Print Detail Reports: Cash, Liability, Encumbrances, Expense & Revenue Use Search icon to locate your Dept and Print only the pages related to your dept

29. OBI DEPARTMENTAL LEDGER REPORTS NAVIGATION OMNI Home Page>OBI Reporting>Login FSUID and Password> Go to top Financial Reports>Select Departmental Ledger AUX, EG or CF Summary Ledger (top left tab) report default Detail Ledgers (top left tab) Job aid Enterprise Resource Planning website http://www.erp.fsu.edu/jobAids.cfm?user=obi

30. OBI REPORTS HR-GL DETAIL NAVIGATION Verify Salary & OPS OMNI Navigation > OBI Reporting > Enter FSUID and Password>Go to top HR Reports>Select HR-GL Detail Job Aid http://erp.fsu.edu/job_aids/DeptReps/JobAid_OBIHRG L_Detail.pdf May need to request role to have access to these reports. Go to: OMNI Portal Home page e-ORR Online Role Requests Request: FSU_PR_DEPARTMENT_USER

31. CONTACT INFORMATION Please contact me with any questions or suggestions. Kim Coates Controller s Office/Quality Assurance 644-9482 kcoates@admin.fsu.edu Handouts may be downloaded at .. Controller s Office Training Materials/Job Aids GL-4000 http://control.vpfa.fsu.edu/Controller-s-Office-Training- Materials-Job-Aids