University of California
Larry L. Sautter Award Submission for Innovation in Information Technology
Project Name - UCR Ledger Reconciliation & Storage System (LRSS)
“LRSS allows campus departments to document departmental ledger reconciliation and review
in a user-friendly application [and] provides a succinct mechanism to document key
departmental controls necessary to ensure the integrity of our financial statements. LRSS
increases the transparency and accessibility to this information [and] can result in savings to the
department by avoiding printing and physical storage costs. LRSS allows for electronic storage
of departmental annotated general ledgers in a safe, secure and easily retrievable environment.
LRSS is wonderful!”
Bobbi McCracken
Asst. Vice Chancellor-Financial Services & Controller
“Alas! A ledger reconciliation process that saves resources! I love the ease of maneuverability
and simplicity of the system! Our Certifier likes the fact that the ledgers are all in one place, and
in one file, to review and that we don't have to rummage through hundreds of sheets of paper to
find information. In my position, as the reconciler, this application has saved me a lot of time!
Thanks C&C!”
Angela Calderon, Financial Analyst, A. Gary Anderson Graduate School of Management
Project Institution
University of California, Riverside
Project Team
Chuck Rowley – Associate Vice Chancellor, Computing & Communications
David Gracey – Director, Enterprise Application Development
Marla Reyes – Technical Lead
Vincent Tran – Programmer/Analyst
Rebecca Dong – Programmer/Analyst
Amber Jones – Enterprise Applications Support Specialist
Submitted by: David Gracey (davidg@ucr.edu)
Project Abstract
UCR's Ledger Reconciliation & Storage System (LRSS) is a tool that electronically records and
demonstrates that campus departments and units have appropriately reconciled financial ledgers.
The LRSS also facilitates the reconciliation process by permitting departments and units to store
reconciled ledgers electronically on secure campus servers.
The Ledger Reconciliation & Storage System was developed in response to SAS 112 auditing
requirements. The LRSS requires two electronic certifications: the first is provided by a
Reconciler, certifying that the ledger has been reconciled; the second is provided by a Certifier,
confirming the reconciliation has been appropriately completed.
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LRSS utilizes the Oracle 10g DBMS.
The software was written in Oracle PL/SQL and JavaScript.
The system is hosted by Oracle Internet Application Server (iAS).
Ledgers are generated, annotated, and stored as PDF files within the database.
The database provides an audit trail of ledgers reconciled and certified on a month-bymonth basis.
The system allows for optional storage of additional file types, and is flexible enough to
meet the highly diverse needs of campus departments ranging from Administration, to
Athletics, to Entomology.
Completely eliminates the need for paper, photocopies, and departmental shadow
systems.
For more information, please visit the Ledger Reconciliation and Storage System website at:
http://cnc.ucr.edu/lrss/
Authentication
To gain access to LRSS, a user must enter a valid UCR NetID and password. The program
authenticates against the UCR Enterprise Directory housed in LDAP via UCR’ Central
Authentication Services, CAS. The Enterprise Directory is electronically maintained by some
200 departmental administrators distributed throughout campus.
Authorization
Authorization occurs in a completely on-line, paperless environment. Systems Access
Administrators (SAAs) – distributed throughout departments/organizations across campus - grant
access to UCR’s enterprise systems via the Enterprise Access Control System (EACS). After
authentication, the LRSS application checks EACS to determine a user’s roles and
responsibilities within the application. For more information on the Enterprise Access Control
System, please visit the following site:
http://cnc.ucr.edu/eacs
User Roles and Responsibilities
Two primary roles are available within the system: Reconciler and Certifier.
RECONCILER
A UCR Financial System (UCRFS) Reconciler analyzes and reviews the completeness and
accuracy of recorded financial activity. The Reconciler also ensures that all financial transactions
can be supported with source information. The Reconciler, at a minimum, examines recorded
financial activity for:
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Accuracy of appropriate FAU distribution
Completeness of financial activity for the accounting period
Compliance of financial activity for the funding sources
Appropriateness of financial activity for the department operations
Unusual activity, errors, and omissions
CERTIFIER
A UCRFS Certifier ensures that the reconciliation has been appropriately accomplished within
the above guidelines. At a minimum, the Certifier is acknowledging that the ledgers (as
represented on the Financial Transaction Detail Report transactions) are complete, accurate, and
compliant with applicable policies.
RECONCILIATION MATRIX
After granting the Reconciler and Certifier roles, the Systems Access Administrator (SAA) must
specify which users are responsible for which FAU values by setting up a Ledger Reconciliation
Matrix in EACS. The matrix can be setup with the desired level of granularity by selecting
Activity, Account, and Fund tree node levels…
In the example above, the SAA has indicated that responsibility for reconciliation and
certification shall be broken down by Department only. The resulting matrix for this
accountability structure is shown on the next page…
ESCALATION
Additional Roles are available within the LRSS, not for using the software application per se, but
for receiving email notifications that are sent as part of the escalation system. These roles
include: Department Head, Chief Financial / Administrative Officer, and Dean / Vice Chancellor
/ Organization Head. These system generated escalation notices are meant to identify
departments that are experiencing difficulty meeting the ledger reconciliation and certification
schedule. The escalation notice schedule is as follows:
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A ledger has not been reconciled in the required timeframe
A ledger has not been certified in the required timeframe
A ledger is 7-days past due for certification
A ledger is 15-days past due for certification
A ledger is 21-days past due for certification
A ledger is 30-days past due for certification
A ledger is 45-days past due for certification
Process Flow
At the end of each accounting period, the ledgers are closed and must be reconciled and certified
based upon the responsibilities defined in the ledger reconciliation matrix. Reconcilers receive
an automated email notification indicating that the period being closed must now be reviewed.
After logging into the system, the Reconciler can see the FAU combinations that are awaiting
reconciliation on a month by month basis…
In this example, the D01263 (Center for Plant Cell Biology) accountability structure has been
selected. The following figure shows the UCRFS Reconciler Menu Option which indicates that
there are 4 un-reconciled ledgers.
The Reconcile Ledgers / Upload New Annotated Ledgers link will lead to the reconciled page
where the Reconcilers can upload the annotated reports and reconcile the ledgers.
Clicking the View Outstanding Periods button presents a window which shows the list
accounting periods in which one or more actions are outstanding. After choosing a period, a
listing of FAU combinations awaiting reconciliation is displayed (see screen image on the next
page).
The reconciliation process begins by visiting the UCR Financial System Online Reports Page at
http://ucrfsreports.ucr.edu to view and download the pre-run PDF of the Financial Transaction
Detail Report in question. The Reconciler then uses Adobe Acrobat 8 Professional to make
electronic notes and annotations to the PDF.
The image below shows the typical notes and annotations that are included on a typical PDF.
When the reconciliation is complete, the annotated PDF is uploaded and the FAU combination is
marked as reconciled within the application.
Reconcilers are prompted to certify ledger reconciliation actions per the statement below:
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In accordance with the UCRFS Ledger Review Guidelines (UCR Policy and Procedures # 20097), I attest that the Financial Transaction Detail (FTD) Reports that I am responsible for
reconciling are complete and in reportable condition. The financial activity is reasonable for the
accounting period. Unusual activity has been researched and adjustments/corrections initiated
as appropriate. Errors and omissions have been annotated on the reconciliation and the
appropriate adjustments/corrections initiated.
Transactions that have been explicitly validated have accurate FAU distributions, are in
compliance with requisite funding source, and are appropriate for the department operations. At
a minimum the following transaction have been validated against source documents:
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All transactions over $5,000
All cash collection transaction (e.g. cash, checks, credit cards, etc.)
All salary transactions have been verified through a thorough review of the Distribution
of Payroll Expense
Contract and grant expenditures
For transactions that have not been explicitly validated, a reasonableness analysis (e.g. budget to
actual comparison, fluctuation analysis by period and fiscal year, sampling) has been conducted
to ensure the FTD Reports are in reportable condition.
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With reconciliation now complete, the Certifier corresponding to the FAU in question is
immediately alerted via automated email notification that the report must be certified. The
Certifier accesses the application and is presented with a menu. In the example below, the
D01263 (Center for Plant Cell Biology) accountability structure has been selected and 2
reconciled reports are currently awaiting certification.
The Certify Ledgers / Upload New Annotated Ledgers link takes the Certifier to the page where
the certification occurs (see screen image on the next page)…
Clicking the View Outstanding Periods button presents a window which shows the list
accounting periods in which one or more certifications are outstanding. After choosing a period,
a listing of FAU combinations awaiting certification is displayed (see screen image on the next
page).
LRSS Certifiers ensure the reconciliation has been appropriately accomplished within prescribed
guidelines. At a minimum, the Certifier is acknowledging that ledger transactions are complete,
accurate, and compliant with applicable policies.
Certification of ledgers can be performed one FAU at a time or all at once. Certifiers are
permitted to upload their own copy of the annotated report to supersede the copy originally
uploaded by the Reconciler. The figure on the next page shows the Certifier’s grid after the
certification process has been completed.
Certifiers are prompted to certify ledger reconciliation actions per the statement below:
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In accordance with UCRFS Ledger Review Guidelines (UCR Policy and Procedures #200-97), I
certify that:
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These Financial Transaction Detail (FTD) Reports have been reconciled in accordance
with the minimum standards of validation (i.e. transactions over $5,000, cash, salaries
and contracts & grants) and reasonableness analysis;
The FTD are complete, accurate and compliant with applicable policies;
Financial activity is reasonable for the accounting period
Unusual activity, errors and omissions have been annotated and adjustments/corrections
initiated;
The Reconciler and Certifier is not the same person; and
At least annually, the reconciliation process is reviewed based upon the unit's current
environment in concert with a risk assessment.
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Email Notifications
Automated e-mail messages are generated within the LRSS when:
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The Accounting Office closes the monthly ledgers
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The Reconciler certifies a ledger has been reconciled
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A ledger has not been reconciled in the required timeframe
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A ledger has not been certified in the required timeframe
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A ledger is 7-days past due for certification
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A ledger is 15-days past due for certification
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A ledger is 21-days past due for certification
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A ledger is 30-days past due for certification
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A ledger is 45-days past due for certification
More information is available at http://cnc.ucr.edu/lrss/emails.html
Reports
The following reports have been made available within the LRSS:
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Ledger Reconciliation Status Report
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Outstanding Matrix Reconciliation Report
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Past Due Ledger Reconciliation Report
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Ledger Reconciliation Schedule Report
More information is available at http://cnc.ucr.edu/lrss/reports.html
Benchmarks and System Metrics
Number of UCRFS Reconciler roles established via EACS: 435
Number of UCRFS Certifier roles established via EACS: 326
Number of ledgers reconciled within the LRSS (currently awaiting certification): 225
Number of ledgers reconciled and certified within the LRSS: 1771
Objective Customer Satisfaction Data
“LRSS is simple, easy to use, and flexible plus it improves financial reporting and compliance!
LRSS allows campus departments to document departmental ledger reconciliation and review in
a user-friendly application. LRSS provides a succinct mechanism to document to our external
auditors a key departmental internal control necessary to ensure the integrity of our financial
statements. Before LRSS, in this decentralized environment, it was difficult for campus
administration to determine which units were performing their basic fiduciary responsibilities;
LRSS increases the transparency and accessibility to this information.
LRSS benefits departmental management as well. LRSS combined with PDF annotations can
result in savings to the department by avoiding printing and physical storage costs. LRSS allows
for electronic storage of departmental annotated general ledgers in a safe, secure and easily
retrievable environment. Another terrific feature of LRSS is the reports; departmental
management has ledger reconciliation status information at their fingertips.
LRSS is wonderful!”
Bobbi McCracken, Asst. Vice Chancellor-Financial Services & Controller
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“Alas! A ledger reconciliation process that saves resources! I love the ease of maneuverability
and simplicity of the system! Our Certifier likes the fact that the ledgers are all in one place, and
in one file, to review and that we don't have to rummage through hundreds of sheets of paper to
find information. In my position, as the reconciler, this application has saved me a lot of time!
Thanks C&C!”
Angela Calderon, Financial Analyst, A. Gary Anderson Graduate School of Management
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“I have been using the LRSS Application for over a year now reconciling the ledgers for Botany
& Plant Sciences. It is easy to maneuver within the application. No problems uploading the
ledgers to the system. Main menu is easy to understand. All the topics under the main menu are
very explanatory. You can search past reports. I do not have any negative comments, all
positive for the LRSS Application.”
Jodie Messin, Accounting Assistant, Botany & Plant Sciences