General Ledger Reconciliation

1/06/2016 1

Why do we reconcile? • To ensure that all revenues and expenses are correct and properly accounted for as

required by the UCSF Controller’s Office.

What if we didn’t reconcile?

• Overcharged for goods or services. • Pay for people you didn’t hire. • Do not receive expected transfers or revenues. • Over or under spend your budget. • Negative audit findings.

1/06/2016 2

Reconciliation – Folder location

Reconciliations are sorted by fiscal year.

File path where the reconciliation should be located: \\radfiles.radiology.ucsf.edu\groups\Reconciliation\Clinical_Sections-Other

1/06/2016 3

Reconciliation – Naming Convention The naming convention for each month’s reconciliation can be found at: \\radfiles.radiology.ucsf.edu\groups\Reconciliation\Naming Convention_reconciliations.xlsx

Each reconciliation folder should look like this:

1/06/2016 4

Reconciliation Step-by-Step Step 1: Review GL Transaction Detail Step 2: Review Distribution of Payroll Expense Step 3: Review Monthly Report (optional for monthly comparison)Step 4: Resolve errors and missing documentation Step 5: GL Verification Checklist Acknowledgement (SAS) FormStep 6: Site Manager Review

1/06/2016 5

GL Verification Checklist Run Transaction Detail to review monthly transactions—check for unusual, non-

recurring transactions, overcharges on goods and services. Review for sales tax discrepancies.

Review chartstring is correct for each transaction.

Verify transactions have appropriate exceptional expense approvals (P-Cards).

Review outstanding liens for PO/Voucher payments and amounts unpaid.

Review recharges, verify charges are appropriate for communications, service centers, Campus Life Services, IT Recharges.

Follow-up on previous month’s action items to ensure corrections are completed.

1/06/2016 6

Review journals, check for validity, check expected transfers or revenues posted, and attach backup emails as needed.

Verify receipts are redacted and required information logged.

Check budget spending (if applicable).

Run DPE Payroll report to confirm employees listed are correct.

Step 1: GL Transaction Detail Report

1. Run GL Transaction Detail Report in MyReports with the DepID and Project as

criteria. Note: Having a broad report criteria will ensure that you are reconciling all

transactions for your section’s discretionary. Use the same search criteria for DPE and

Monthly reports

2. Download to Excel, clean up and review the excel file

3. Click on the second tab for the report.

4. Delete the rows above the column headings.

5. Unmerge the column headers and copy and paste or retype them as

necessary so that they are all in one row.

6. Turn on filters and sort by transaction type.

7. Add comments to the right for unusual or unexpected transactions.

1/06/2016 7

1/06/2016 8

Transaction Detail Report Example

1/06/2016 9

Unmerge the column headers

1/06/2016 10

Move all column headers to the top row

1/06/2016 11

Delete the unneeded rows in the header.

1/06/2016 12

Turn on filters and review by transaction type

1/06/2016 13

Review transactions line-by-line

1/06/2016 14

Add explanations if Description is not clear

1/06/2016 15

What transactions need special attention?

1. P-card transactions. Back-up should always be saved in the P-card folder with date and vendor in filename.

2. Accounts Payable expenses > $5K. 3. Connexus travel expenses 4. Bearbuy and MyExpense should be reviewed for reasonableness

only. They do not need special review since they go through a thorough approval process.

5. If the GL line description is not clear, add an explanation of the nature of the expense to the excel file. Also save email justifications with the reconciliation files.

1/06/2016 16

What special documentation is needed?

1. Save P-card back-up immediately after purchase in the P-card folder (use a subfolder with your name), (\\radfiles.radiology.ucsf.edu\groups\PCard). Save each receipt as a separate pdf and follow the department naming convention to label each one.

2. For any transaction with an undescriptive GL line description, add an explanation of the nature of the expense to the excel file.

3. Save email justifications from faculty with the reconciliation files.

1/06/2016 17

Resource for obtaining backup documentation. Use these reports to audit telephone numbers, employees, long distance charges,

conference calls, ITFS recharges. Include these reports by saving as sheets into the monthly reconciliation transaction details workbook.

• Go to MyAccess and scroll through the list and click on “ITS Recharge System”. • On the left hand column click on “Reports” which opens further into an

extended list of reports (Department Report, Monthly Recharge, Conference Plus,,.). Search by date range, DepID + Project to view details for telephone, Voip, and conference calls, ITFS, Network, and other recharges.

1/06/2016 18

Resource for obtaining backup documentation.

1/06/2016 19

Resource for obtaining backup documentation. Websites for Distribution, Storage, & Mail and Campus Life Services charges.

• Supply Chain Management Online Warehouse: https://scmb2b.ucsf.edu/Index.aspx

• Campus Life Services website: http://campuslifeservices.ucsf.edu/facilities/information/resources/costs_and_billing1

1/06/2016 20

Run Distribution of Payroll Expense report to review salary, benefits, time, and

adjustments with DepID and Project as the criteria for the month and save as an excel

sheet.

Verify all new hires and terminations are valid and were processed correctly.

Review the % and Hours for reasonableness.

Review overtime worked is correct.

Review one-time payments are reasonable and correct.

Run HR Monthly review report for appointment changes, distribution changes,

distribution anomalies.

Payroll Review Checklist

Step 2: Distribution of Payroll Expense • This step is only required if there are salary and benefits expenses on the

Transaction Detail. • Does not apply to most section funds, but there could be people charged

incorrectly to your section!

1/06/2016 21

Step 2: Distribution of Payroll Expense

1/06/2016 22

Here is the empty DPE…

But we knew it would be empty because there was no salary on the GL Transaction Detail:

1/06/2016 23

Step 3: Monthly Report • Run Monthly Report with DepID and Project as criteria, download as PDF. • Review for unusual trends and add comments if needed. • Save it in the same reconciliations folder.

1/06/2016 24

Download to pdf and add comments to pdf file if needed

1/06/2016 25

Monthly Report

1/06/2016 26

Step 4: Resolve any errors

Who can help you resolve errors? • Business Office Contacts: Christina Chen, Cecille Vicencio, or

Malena Ryan (for help researching an expense or if you need to transfer an expense to a department fund or another section fund)

• Research Administration Contact: Katherine Diaz (if you need to transfer an expense to a sponsored fund, gift fund, discretionary fund, or start-up).

1/06/2016 27

Step 5: GL Verification Checklist/ SAS 115

• Fill out the GL Verification Checklist, print, sign and present to reviewer with the monthly report.

• Forms are located in the shared Reconciliation Folder: \\radfiles.radiology.ucsf.edu\groups\Reconciliation

1/06/2016 28

Enter ledger month (Month-YY)

Enter comments and actions items.

Sign and Date

Enter DepID and Project reconciled

1/06/2016 29

Step 6: Site Manager Review

• Review Monthly Report for appropriate revenue and expense categories and appropriate trends

• Review explanations of unusual activity and request additional information if needed.

• Sign off on GL Verification Checklist/SAS 115 monthly and return to reconciler for electronic filing.

1/06/2016 30

Filing Requirements

Where to save: 1. “Reconciliations” folder on the shared drive for all Radiology reconciliations.

\\radfiles.radiology.ucsf.edu\groups\Reconciliation\Clinical_Sections-Other 2. Organize Subfolders by Clinical Section, Fiscal Year, and Month.

What to save:

1. GL Transaction Detail excel file with comments (REQUIRED) 2. Distribution of Payroll Expense (only if salaries are paid) 3. Monthly Report pdf with comments (REQUIRED) 4. SIGNED GL Verification Checklist/SAS 115 (REQUIRED) 5. Any back-up documentation not easily accessible through Bearbuy, MyExpense,

WebNow, PeopleSoft, P-Card folder, etc. This may include justifications for unusual expenses.

1/06/2016 31

Reconciliation Timeline • Required monthly within 30 days of the previous month-end close. The month

closes on the 5th business day of the month. • Review GL Monthly schedule for month close dates, especially June fiscal end. • The GL Monthly schedule is available at

• http://controller.ucsf.edu/calendar.asp • Start early so you have time to ask questions and gather missing back-up

documents.

1/06/2016 32

If you’re catching up…

• Reconcile for several months or even a full year at once… just run the GL Transaction Detail for the entire period.

• Only one GL Verification Checklist/SAS 115 is needed for each year.

• Then get back on track and reconcile monthly to avoid audit findings.

1/06/2016 33

MD FACULTY ALLOWANCE TRACKING

1/06/2016 34

Allowance Basics

• Annual allocation of $5,000 per faculty FTE and $1,800 per fellow FTE

• Recall faculty are not eligible • Less than full-time = pro-rated allowance • Mid-year start date = pro-rated allowance • Expenses must be incurred by June 30 of the following year. • Okay to submit for reimbursement for a few weeks after that

date.

1/06/2016 35

Guidelines for Use • Purpose: To support travel and professional development

activities in support of individual faculty member’s academic responsibilities.

• Examples of allowed expenses: Travel to conferences Professional society memberships Laptop and peripherals Licenses Equipment

• Section Chief should have oversight of expenses to ensure they support the faculty member’s academic responsibilities, but should not restrict reasonable use.

1/06/2016 36

A Note About Purchasing/Reimbursement

• Always use the speedtype if possible to avoid coding errors. • If speedtype is not accepted, provide the FULL chartstring

including the recommended function code. • The function code can change depending on the purpose of the

expense, but we recommend using the default function code provided by the Business Office.

1/06/2016 37

Why track allowances

• Section chief may ask: How each MD spent their allowance? What each MD’s balance is? If anyone has not used their allowance? The total remaining balance for all MDs for the year?

• Section faculty may ask: What’s my balance? What can I use my allowance for? What’s the last day I can spend it? What happens if I don’t spend it all?

1/06/2016 38

What happens to unspent allowances?

• Unspent balances at the end of the year become part of the section discretionary fund, and no longer belong to the individual faculty member.

• Section Chief may approve spending above and beyond the allowance. In this case, do not deduct it from the individual allowance!

1/06/2016 39

Allowance Tracking Worksheet

1/06/2016 40

Instructions

1. Fill in columns A-D with the name, section, appt type (MD, Fellow or Clinical Instructor) and % time. Faculty who work in Radiology for a partial year will receive a reduced allowance.

2. When you process an expense, add it in one of the columns E through J. More columns may be added if needed. The unused balances are automatically calculated at the right.

3. As you reconcile the section fund, check that the actual amounts charged on the GL are the same as the log and update the log if needed.

1/06/2016 41

FAQ

Q: When can faculty start using allowances? A: At the start of the fiscal year, July 1st. Q: If an MD works in two sections, is the allowance split? A: No. The allowance and all reimbursements flow through the home section. Q: How do I know the home section? A: It’s generally the section the MD spends more time in. Check with the Business Office for a list of faculty, home sections, and allowance amounts in early September. If you need to know sooner, just ask the MD.

1/06/2016 42

SECTION FUND REPORTING

1/06/2016 43

Section Chief Relationship Ask… • What reports the chief would like and how often

Monthly Report with your comments? Allowance Tracking Worksheet? Just balances and newsworthy items?

• What types of allowance usage they would like you to check with

them on before processing. What are the grey areas?

1/06/2016 44

1/06/2016 45