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Procedure: 1-4

Effective: August 1, 2001

Owner: Accounting Services

Latest Revision: March 20, 2014

Procedure 1-4a (a supplement to this procedure) covers Sponsored Program Project or Award Expenditures

Monthly Review of GA Project Activity

Procedure Steps

Scope | System References | Policy | Responsibility | Distribution | Ownership

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 Non-sponsored Projects administered through the Integrated System Grants Accounting module (GA). Additionally, this review includes analysis of Non-sponsored Projects budgeted and actual expenditures-to-date. 

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

This procedure excludes the monthly review of:

1.    Sponsored Program Project or Award expenditures. (See Financial Procedure 1-4a, a supplement to this procedure)

2.    Revenue Projects administered through the Integrated System General Ledger module. (See Financial Procedure 1-5, "Monthly Review of GL Project Activity" ** under revision **).

System References [Top]

Recon@UVa is the University’s electronic reconciliation system and is the required method of reconciling Projects and Awards. The system facilitates the timely on-line review of monthly transactions and balances and documents the review and approval of each Project-Award combination. 

Departments are no longer required to print reports for review and certification, however these reports and other informational reports are available in the Integrated System reporting tool Discoverer Plus. 

Link to Recon@UVa

Integrated System Discoverer Plus

Policy [Top]

FIN – 021, Policy:  Internal Control

FIN – 023, Policy:  Reconciling Departmental Accounting Records

Policy II.C.1, "Records Retention and Disposition"

Procedure [Top]

Procedure 1-3, "Requesting an Alternate Reconciliation Schedule"

Procedure 1-4a, “Monthly Review and Certification of Sponsored Program Project or Award Expenditures

Responsibility [Top]

Each Project in the system contains roles specific to the reconciliation process.  These roles are assigned to department personnel who are responsible for the completion of the review and approval of expenditures, and ensuring that the work is completed in a timely manner. 

Each of the roles defined below can be assigned to one or more alternates to facilitate the reconciliation process. Alternates must have the appropriate knowledge and authority to fulfill their role.

Preparer:  responsible for reviewing each expenditure transaction charged to the assigned Project/Task/Award combinations (PTA) to ensure its accuracy, and to ensure that sufficient source documentation is available.  Source documentation can be in the form of paper, or data residing in the Integrated System or its supporting systems. 

Fiscal Examiner (an optional role):  responsible for examining and verifying the work of the Preparer. 


Approver:  responsible for verifying the legitimacy, appropriateness and necessity of transactions recorded against their Project/Award (PA) combinations

Fiscal Officer:  responsible for verifying that expenditures for the assigned PA combinations have been reconciled within the specified time constraints and according to University Policies and Procedures. 

Distribution [Top]

Preparer

Fiscal Examiner

Approver

Fiscal Officer

Ownership [Top]

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

Activity Preface 

These reviews must be performed at least once a month, by the 15th calendar day, 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).  A detailed review of transactions must be conducted for each PTA combination.  A summary review of budgeted and actual expenditures-to-date must be conducted for each PA combination.  The review of the PTA and the certification of the PA is documented within the system. 

Preparer

University policy requires that an individual (the Preparer) perform a detailed reconciliation of each PTA combination assigned to them.

1.    For each PTA combination, gather and review supporting documentation for expenditure transactions.

2.    Log on to Recon@UVa and review each expenditure transaction charged to a PTA combination to ensure accuracy.

3.    Determine that sufficient source documentation exists for the transaction.

4.    Verify there are no unusual or unanticipated charges.

5.    Flag issues and record comments, if appropriate

6.    Update reconciling items, if appropriate.

7.    When the review is complete, route the work to the next level.  This step records the Preparer’s signature and date.   

8.    Follow up on any transactions that remain outstanding for more than one accounting period.

The Preparer should resolve as many accounting errors as possible.  Any questions about the appropriateness of particular expenses should be brought to the immediate attention of the Approver for clarification and/or correction. Cost transfers should be initiated as soon as the error is identified. Preparers should take extra care to verify that the expenditure type charged is appropriate and accurately reflects the item or service that is identified in the supporting documentation.

Supporting documentation must be filed by PTA, or in such a manner that allows the documents to be readily retrieved and presented when requested for audit review. These records must be maintained in accordance with the University record retention policy.

Fiscal Examiner

A department may require an interim review prior to the Approver certification.  This is an optional step.    

1.    Examine the work of the Preparers.

2.    Review issues and record comments, if appropriate.

3.    Update reconciling items, if appropriate.

4.    When the review is complete, route the work to the next level, or return to Preparer for rework.

Approver

University policy requires that a separate individual (the Approver), who has authority and responsibility for the funds, certify that the review is complete and that the transactions are reasonable and necessary.

1.    Examine the work of the Preparers and/or Fiscal Examiners.

2.    Review issues and record comments, if appropriate.

3.    Update reconciling items, if appropriate.

4.    Certify and approve PA expenditures (this step records the Approver’s signature and date), or return to Preparer for rework.

Fiscal Officer

Verify that expenditures have been reconciled within the specified time constraints and according to University Policies and Procedures.

Notes:

The system documents the time periods required for record retention.

Projects that have no activity (meaning no transactions) during the current fiscal year are available for review, but do not require a signature.

Award Management

Award management is not a mandated activity, however, Award Managers are encouraged to monitor their awards and to manage to established budgets. 

At this time, the monthly review of Awards is performed outside of the RS.

1.    Gather and review any documentation for deposits or other transactions which may require adjustments to award budgets or installments.

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

Workbook:  GA_Award Review Reports

Worksheet:  BBA by Awd Manager

This report contains current budgeted amounts compared to actual expenditures and commitments for all projects funded by an Award, and can be run for a specified period and award manager.  This report may be run for any "Closed" (History) accounting period range.

Note: Additional pre-defined reports are available in Discoverer to assist in conducting further activity analysis.

3.    Review budget and actual totals and take corrective action as necessary


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