1

Grants Management (GM) FocusGrants Management (GM) Focus

Monthly Accounting Monthly Accounting Reconciliation ProcessReconciliation Process

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Internal Service Providers (Cavalier Computers, P&T,etc)Demand Payment Vouchers (travel reimbursement, petty cash, utilities, etc)Invoices matching POs and LPOsP-Card TransactionsCost TransfersLabor Transactions (Pay, Fringe Benefits, Encumbrances)Purchasing Commitments (from Purchase Orders and LPOs)F&A (indirect costs) [Sponsored Program ‘G’ awards only].Expenditure CreditsRecoveries [Internal billing for services rendered]Manual Encumbrances

Types of Transactions in GM

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Reconciliation

The process of comparing the transactions entered into the Integrated System to the department's input documents or other documents, either electronic or paper, and to determine which are complete, which are outstanding and which are in error and require correction.

4

Identify projects to reconciliation

IS.GL_Revenue Project Relationships

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Purpose of monthly reconciliations

To maintain the integrity and accuracy of the University's accounting records through timely and accurate:– REVIEW of transactions and– RESOLUTION of errors and omissions.

66

Reconciliation Goals

Review: (transaction details)

To ensure accuracy, appropriateness, sufficient documentation, and to identify mistakes.

Resolution:

To correct mistakes in a timely manner.

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Review Process

The actions taken to verify that:– all transactions in your department’s accounts

are charged to correct account codes– no transactions from other departments have

been charged incorrectly to your department.– all transactions comply with university policies

and procedures, and applicable state and federal laws and regulations

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Resolution

Locate missing documentation

Take appropriate action to remove expenditures incorrectly billed to your PTA

Transfer any expenditures that may have hit your Labor or OTPS suspense projects that belong to your PTA

Complete monthly reconciliation form, indicating any outstanding expenditures not yet posted.

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Available tools and resourcesNecessary reports (Oracle and Discoverer)Comparing expenditures and commitments to budgetsTroubleshooting resourcesAudit requirementsDocument retentionStep by Step GM Project reconciliation

GM reconciliation/Resolution Section Content

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To familiarize you with the tools resources availableTo identify what to gather, and what to file according to University document retention and audit requirements To provide you with a check-list of things to reconciliation To Outline troubleshooting actions, andTo provide an instructor led step by step walk thru of an actual project reconciliation

GM reconciliation/Resolution Section Objectives

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Tools

University policies and procedures for reconciliation and reconciliationDepartmental documentationGM Reconciliation Form for Expenditure ProjectsDiscoverer ReportsIntegrated System standard reportsCurrent data in the Integrated Systemreconciliation and Reconciliation web sitehttp://www.reconcileorelse.virginia.edu

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What to gather

Prior month reconciliations with any notations for corrections, etc.

Department records/documents related to expenditures for Project/Task/Award combinations.

Standard (or departmental) Expenditure Project Review and Reconciliation Form

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Supporting Documentation(What to retain/Suggested Filing Procedure)

All original supporting documentation related to financial transactions must now be retained by the department. Exception: Accounts Payable requires originals for petty cash and travel reimbursements and departments keep copies.

Supporting documentation must be retained in such a manner as to satisfy local, state and federal audit requirements.

Because documents need to be filed in a way that they can be retrieved on request, it is recommended that they be filed by Project/Task/Award combinations and then by date.

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Supporting Documentation(Record Retention Policy and Procedure)

Supporting documentation must be retained in such a manner as to

satisfy state and federal records retention requirements.

Retention PeriodsPayroll Records = 5 years + current fiscal yearOTPS Records = 3 years + current fiscal year

Note: These records may not be destroyed until an approved “Records Retention and Disposition Schedule” (RM3 form) has been submitted and approved.

http://www.lva.lib.va.us/whatwedo/records/sched_state/gs102.htm

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Reports Needed

FM_Project BBA by Expenditure TypeFM_Expenditure Detail by Project

FM_Payroll Expenditures by Project

GM

PAY(Optional)

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Reconciliation Process

Match transaction documentation to transaction listings on the Expenditure Detail report

Make note of missing documentation

Make note of any amount discrepancies

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What to look for

Do you have the documents related to the expense (including receipts for purchases made with a Purchasing Card), and do they match the charges?

Do you have the required documentation for non-travel and non-petty cash expenditures?

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What to look for

Are there any unusually large or small expenditures in relation to the budget, prior months' trends, or other expectations?

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What to look for

Do you see any unexpected charges? If so, note follow up action required.

Are there expected charges which are NOT here? If so, note follow up action required?

Have all LPO's been recorded? If not, contact the purchaser for the information.

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What to look for

Have the correct PTAEO's been used?If not, note corrective action required.

Do you see any unallowable costs based on University procurement regulations or OMB-A21 guidelines (e.g. improper recording of equipment or salaries)? [See CAS Guidelines],=.

If so, note corrective action required.

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What to look for

Are travel expenses reasonable and allowable (e.g., pre-approved where necessary, receipts for actual expenses)?

Has all original documentation of travel expenses been sent to Procurement Services, Accounts Payable Division?

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What to look for

Are petty cash expenses reasonable and allowable? Has all original documentation been sent to Procurement Services, Accounts Payable Division?

Have appropriate credits been recorded properly (e.g., expense transfers or credits, sales of surplus property, program income)? Referred to as recoveries.

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What to look for

Have salaries been charged appropriately?If not, note corrective action required, both in the GM and LD modules.

Have charges from internal service providers been recorded properly?If not, note corrective action required.

Is the Project Manager Information correct and up to date?

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Final reconciliation Steps

Compare Budget to Actual Expenditures and commitments

Transfer information to Expenditure Project reconciliation and Reconciliation form

Note missing documentation and discrepancies for follow-up

The Reconciliation form requires the preparer and approver/reconciliationer signatures. Both parties must understand the process.

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What to look for

Is this project headed for a deficit condition?

If so, are there actions you need to take?

Is this project nearing its "close date"?If so, are there actions you need to take?

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GM GM

reconciliation reconciliation

ProcessProcess

DemonstrationDemonstration

(Step by Step)(Step by Step)