RECONCILIATIONS - ASSETS AND LIABILITIES
Effective: June 1, 2000
- After each month is closed, budget centers/ departments should run appropriate queries to identify month end balances and the monthly activity. Results of these queries should be distributed to the appropriate independent personnel for reconciliation of the University accounting records to the departments' source documents.
- Ensure that the University accounting records balance agrees to the balance per the departmental documentation.
- Common types of departmental documentation are: Inventory account: inventory listing by item, quantity and price. Receivable account: listing by customer and amount. Deposits Held for Others account: listing by individual and amount.
- If the University accounting records balance does not agree to the balance per the departmental documentation, review for transactions for which there is departmental documentation (i.e. invoice to customer, voucher for purchase of inventory, deposit, etc), but no accounting entry reflected. Also review for items that are recorded in the University accounting records but not recorded in the departmental records.
- Any differences should be noted as reconciling items. These items should be cleared or resolved as soon as possible.
- Upon completion of the reconciliation, place the following certification on the reconciliation hard copy: "Reconciled by (reconciler's name) on (date)."
- The reconciler should inform a responsible individual (Budget Center Director, Department Head, etc.) that the reconciliation(s) has been performed. This communication should be by paper copy memo or via e-mail. An example of the statement that the reconciler should make is: "The balance of the asset/liability chartfield string _________________ agrees with our departmental records as of ___(month end date)__. All reconciling items are explained and documented. Reconciler's Name _____________ and Date __________."
- University procedures do not require a review of the reconciliations, if adequate separation of duties is accomplished. However, if it is not feasible to have complete separation of duties, an authorized individual should review and approve the reconciliation. With or without complete separation of duties, as indicated in step 7 above, a responsible employee should monitor to help ensure that reconciliations are being performed in a timely manner.
Run a query to identify all asset and liability chartfield strings that contain your ORG number(s). The responsibility for reconciling these chartfield strings is assigned to your department or budget center, except for the ACCOUNT numbers listed below. The ACCOUNT numbers listed below are reconciled at an institutional level, even if they have your ORG number.
Institutional Level Accounts
1101 Cash Vendor Account
1102 Cash Payroll Account
1130 Cash State Treasurer
- Cash State Treasurer Appreciation
- Cash State Treasurer Perkins Loan
1202 Accounts Receivable Appropriations
1203 Accounts Receivable Grants and Contracts
1207 - 1229 Notes Receivable (Block)
1271-1280 SRS A/R (Block)
1601-1614 Investment in Plant (Block)
2001 Accounts Payable (Block)
2003 - 2030 Accounts Payable (Block)
2201 - 2330 Payroll Withholdings (Block)
2414 - 2429 Other Liabilities
2454 Procurement Card Clearing
Some chartfield strings have a unique ACCOUNT number that is applicable to a single department. Most of these chartfield strings should also carry your ORG number. Reconciliation of these ACCOUNTS is the departments' responsibility. These ACCOUNT numbers are listed below.
Departmental Level Accounts (in addition to those identified with the query noted above)
1103 - 1115 Cash in Bank (Block)
1133 - 1159 Cash on Deposit (Block)
1180 - 1190 Petty Cash (Block)
1230 - 1231 Post Office
1234 A/R Telecommunications
1401 - 1413 Inventories (Block)
2430 - 2450 Tax: Accommodations, Admissions, Sales (Block)