FIN-023: Reconciling Departmental Accounting Records

Date: 08/11/2009 Status: Final
Last Revised: 06/30/2011
Policy Type: University
Oversight Executive: Vice President for Finance
Applies To: Academic Division and the College at Wise.
Reason for Policy:

Reconciliations of all University projects and accounts are required to maintain the integrity of the University’s accounting records and to protect the interests of the University. Reconciliations are essential for an effective internal control environment so that:

  • The information transmitted to, contained in, and reported from the University's financial systems is accurate, complete and recorded in a timely manner;
  • The information can be relied upon for making financial and administrative decisions; and
  • Irregularities are quickly detected and reported to the appropriate authorities.
Definition of Terms in Statement:
  • Approver:

    The employee who has the authority and knowledge to approve the expenditures on the account.

  • Preparer:

    The employee who performs the monthly detailed reconciliation and prepares documentation for approval.

  • Reconciliation:

    A systematic review of accounts against source documents to verify that all charges are accurate and appropriate, and to identify expected charges that have not yet occurred. 

Policy Statement:

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. (Refer to the procedure for requesting an alternate review schedule.)

  1. Reconciliation of Departmental Accounting Records to the Financial Modules of the University’s Integrated System:

    Departments must reconcile their projects each month. Both the preparer and the approver must certify that all charges to the accounts are appropriate, necessary, and supported by documentation filed in the department. Any discrepancies must be documented, including the timeframe for expected resolution. (See procedures below.)

    The timely review of transactions and reconciliation of all University projects and accounts is critical to maintaining the integrity of the University’s accounting records. Departments and activities must maintain files that are sufficient to support the accuracy and completeness of data entered into the financial modules of the University’s Integrated System. This documentation must be retained by the department in accordance with guidelines specified by the University Records Management Office to satisfy University, state and federal audit requirements, as well as state and federal records retention requirements.

The University system of record is the Integrated System and must be used for reconciling departmental accounts in accordance with University reconciliation procedures. University departments are not permitted to establish or operate independent accounting systems without approval by the University Comptroller and Chief Audit Executive. For those departments that have an approved independent system, that system can be referenced for supplemental detail in support of departmental reconciliations.

Procedures:

1-3, Requesting an Alternate Reconciliation Schedule
1-4, Monthly Review of GA Project or Award Activity
1-4A, Monthly Review and Certification of Sponsored Program Project or Award Expenditures
1-5, Monthly Review of GL Project Activity

Related Information:

Criteria for Alternate Review Schedule
FIN-021, Internal Control
IRM-017, Records Management  
University Records Management Office

Major Category: Finance and Business Operations
Approved by, Date: Policy Review Committee, 08/11/2009
Revision History: Updated 6/30/11.
Supersedes (previous policy):
II.B.2, University Reviews and Reconciliations.