Procedure: 1-5

Effective: November 12, 2001

Owner: Director, Accounting Services

Latest Revision: January 30, 2013

Scope

In accordance with University Policy FIN – 023: Reconciling Departmental Accounting Records, departments are responsible for reconciling their accounts at least once a month (by the 15th calendar day of the month) for the previous month’s activity, or as detailed in an alternate schedule approved by the University Comptroller and the Chief Audit Executive.

This procedure provides guidance for the review and certification of transactions processed against revenue projects administered through the Integrated System General Ledger module (GL).

The purpose of the monthly review is to identify and correct mistakes in a timely manner. Any unusual transactions should be reported promptly to the appropriate dean, department head, or central financial office.

Additionally, University Policy FIN – 033: Monitoring Cash Balances and Resolving Deficits in Revenue Projects requires departments to monitor revenue project balances to ensure that the cash balance is zero or greater before commitments. A deficit cash balance in a revenue project or parent is expressly prohibited unless the deficit is properly authorized.

This procedure excludes the monthly review of Projects and Awards administered through the Integrated System Grants Accounting module (GA).

System References [Top]

Integrated System Discoverer Plus
Procedure 1-3, "Requesting an Alternate Reconciliation Schedule"
Procedure 1-4, "Monthly Review of GA Project or Award Activity"
Procedure 1-4A, “Monthly Review and Certification of Sponsored Program Project or Award Expenditures”

Policy [Top]

FIN – 021, Policy: Internal Control
FIN – 023, Policy: Reconciling Departmental Accounting Records
FIN – 033: Monitoring Cash Balances and Resolving Deficits in Revenue Projects
Policy II.C.1, "Records Retention and Disposition"

Responsibility [Top]

The Project Reviewer (the Preparer) is responsible for reviewing each transaction (deposit or transfer journal entry) posted to a GL account string in the University's Integrated System to ensure its accuracy, and to ensure that sufficient source documentation is available.

The Project Manager (the Approver) is responsible for verifying the legitimacy, appropriateness and necessity of transactions recorded in the GL module of the University's Integrated System.

Distribution [Top]

Project Reviewer
Project Manager

Ownership [Top]

The Senior Associate Comptroller of Accounting Services is responsible for ensuring that this procedure is necessary, reflects actual practice, and supports University policy.

Activity Preface

These reviews should be performed at least once a month, by the 15th calendar day of each month, for the previous month's activity, or by the date of the approved alternate schedule (must be approved by the University Comptroller and the Chief Audit Executive). The review should be conducted for each GL project for which you are responsible.

Once the review is completed, the report(s) and supporting documentation should be assembled and filed by project, or in such a manner that all material relating to a particular transaction, or accounting period, can be readily retrieved and presented when requested for audit review. These records should be maintained in accordance with the University's record retention policy.

Project Reviewer (the Preparer)

1. Gather and review the following information:

• prior month activity reports with any notations for corrections, etc.
• department records related to deposits or transfers for this GL project

2. Log on to Discoverer Plus and run the following reports:

• GL_Revenue Reconciliation Reports: GL Only Project Activity Detail tab
  
  This report shows transactions for a specified acccounting period (MMM-YY) that were entered in the GL module or are non-PTAEO type transactions (such as SIS transactions).

There is a page item on this report entitled "Funds an Award?”. If the answer is "N", the associated project is not a revenue project and any transactions recorded need to be reversed and re-entered to an appropriate revenue project. Cash deposited to projects that do not fund an award, will not be included in the UVA Cash Balance by Project report.

Additionally, any GL journals entered using a GM Only object code must be corrected.  These journals will not be included in the calculation of cash.  Please contact Accounting Services for assistance in correcting this type of journal. 

Note:  Closing a project to prevent charges from processing in GA does not prevent activity in the GL, so all non-revenue projects should be reviewed monthly.

• GL_Revenue Reconciliation Reports: Cash Balance by Project tab

This report shows the cash available in a revenue project.  Cash is calculated by determining the net amount of revenue less expenditures and changes in assets and liabilities for the project-to-date. 

• GL_Revenue Reconciliation Reports: GL_Only Activity Detail by Date Range

This report shows transactions for a specified date range that were entered in the GL module or are non-PTAEO type transactions (such as SIS transactions).

There is a page item on this report entitled "Funds an Award?”. If the answer is "N", the associated project is not a revenue project and any transactions recorded need to be reversed and re-entered to an appropriate revenue project. Cash deposited to projects that do not fund an award, will not be included in the UVA Cash Balance by Project report.

Additionally, any GL journals entered using a GM Only object code must be corrected.  These journals will not be included in the calculation of cash.  Please contact Accounting Services for assistance in correcting this type of journal. 

Note:  Closing a project to prevent charges from processing in GA does not prevent activity in the GL, so all non-revenue projects should be reviewed monthly.

• AP Transactions without PTAEO

This report shows AP transactions that were coded with a GL String instead of a PTAEO.  These transactions must be reversed in GL and entered correctly with a PTAEO so the expense is correctly reflected in the project budget balance available calculations.

Note: This is the minimum number of reports needed to conduct the review activity. Additional Database Reports are available in Discoverer Plus to assist in conducting further activity analysis.

3. The checklist below is provided as a resource to organize your review. It does not need to be completed for each GL Project, nor does it need to be signed. It is recommended that one printed copy be kept each month for all projects in an area, but this is not required. If some checklist questions do not apply, simply mark them as n/a.  A printer-friendly version of this checklist is also available.

4. When conducting a review, the Discoverer reports should be printed, and all detail transactions should be checked for appropriateness, accuracy, and the existence of supporting documentation. The Reviewer should verify that all transactions are correct and sign and date the GL Only Project Activity Detail report.  The Reviewer is also responsible for following up on any transactions that remain outstanding for more than one accounting period. Note: In some departments, different people may be responsible for different aspects of this review. Where appropriate, more than one person may sign off on the detail transactions by initialing the report next to the line item(s) they reviewed.  

Project Manager (the Approver)

1. University policy requires that a separate individual (the Approver), who has authority and responsibility for the funds, also sign and date the GL Only Project Activity Detail report to certify that the reports are accurate, and that the transactions are reasonable and necessary.


2. If a revenue project has a cash balance less than zero that will not be resolved by the end of the current accounting quarter, the Project Manager (the Approver) should notify the appropriate Dean or department head, and the Office of Treasury Management with a plan to resolve the deficit.