BTFA03: General Ledger Reconciliation

Overview

• Ledger Reconciliation Objectives / Guidelines• Reconciliation Demo• Reconcilation Lab• Source Documents and Corrections

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.

Reconciliation Objectives

• 2007-2008 Controller’s Memoranda #02 - Ledger Reconciliation Guidelines• Go to Controller’s webpage. http://controller.vpfa.fsu.edu/ • (on right column) Publications>Controller’s Memorandum>2007-

2008 Ledger Reconciliation Guidelines

Controller’s Memoranda #02

Reconciliation Objectives

• 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

Departmental Business Mgmt Guide

Reconciliation GuidelinesWhat should be reviewed?

• Obtain departmental ledger reports• Trace to supporting documentation• Verify:

• Dollar Amount• Account Code charged• Budget charged• Allowable expenditure

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

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

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

Departmental Ledgers - OBI Reporting Financial Reports

• Data Warehouse• Reports Available:

• Summary and Detail Ledgers• Transaction Details• Trend Ledgers

• Year-by-Year• Month-by-Month

• HR-GL Detail• Job Aids available at omni.training.fsu.edu

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

High Level Analysis

• Review OMNI Summary Ledgers for:• Positive/sufficient cash balances (Auxiliaries)• Positive/sufficient available balances (E&G,

Carryforward)• Any liabilities that did not clear from the previous

month• Tie OBI transaction details to summary ledgers

Reconciliation Demo

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 • Let’s reconcile one of your budgets….

Reconciliation Lab

Build the E-Recon• Instructions can be found on the Controller’s Sharepoint >

Document Center > Training > General Ledger > BTFA03

• Run the OBI transaction details, HR-GL Detail, Payroll Certifications. Copy into the worksheet.

• Run P-Card charges and postal charges. Copy into the worksheet.

• Run OMNI financials FSU_UBA_IMGID query for your department.

• Now you are ready to begin the reconciliation.

Expense Source DocumentsPayroll Charges

• Use OBI HR-GL Detail report to verify payroll/OPS• 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)• Use the Payroll Financial Reconciliation tab

• Only verifying employees (not amounts)

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

Expense Source DocumentsTravel & Expense Charges

• ‘EX’ journals• OMNI Navigation – Travel and Expenses > Travel and

Expense Center• Search by Expense Report ID

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

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

Expense Source DocumentsOnline Journal Entry Charges

• Backup available in OMNI via Journal Attachment feature• General Ledger > Journals >Journal Entry >

Create/Update Journal Entries (or use General Ledger > Review Financial Information > Journal)

• 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 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

Expense Source DocumentsFacilities Charges

Expense Source DocumentsFacilities Charges

Expense Source DocumentsFacilities Charges

Expense Source DocumentsFacilities Charges

Expense Source DocumentsFacilities Charges

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

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

• Departmental Online Journal Entries (DOL) Form • Find on the Controller’s webpage under General Accounting Forms

• Also covered in BTFA01• Remember:

• Consult the Expense Account Short List or Data Dictionary 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

Reconciling Encumbrances

• What is an encumbrance?• 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

• What if an encumbrance is no longer needed?• Cancelling a Purchase Order

• Issue a Change Order• Form available on Procurement Services Website• Detailed instructions also available on how to use this

form• Cancelling a Travel Authorization

• Cancellation done in OMNI Travel and Expense center• Travel Rep will likely need to process• Employee Self-Service > Travel and Expense Center >

Travel Authorization > Cancel

Questions?

Contact Information• Lauren Barrett– Quality Assurance

• lmbarrett@fsu.edu• 645-8611

• Paul Harlacher – University Business Administrators• pharlacher@admin.fsu.edu • 644-6972

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