The University of Texas at
San Antonio
Training Class - Understanding the
Statement of Account and
Reconciliation (AM506)
Presented by
Accounting Services
1
Understanding the Statement of
Account and Reconciliation
• The University of Texas operates on a 12
month fiscal year which runs from
September 1 to August 31.
• Budgets, appointments and external reporting
are all done for this 12 month period.
• A lot of accounting activity takes place as the
old fiscal year ends and the new fiscal year
begins.
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Account Structure
•
Account number
– The account number is a 10-digit number used for
recording accounting transactions. The account
number is broken down into three parts, fund
group, budget group and budget category.
UTSA Account Structure
Budget Group
Budget Category
(Sub-Account)
Fund Group
14
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Budget Group
023300
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Account Structure
•
Fund Group – The first two digits of the account number specifies the source of
funds. Below is a list of fund groups:
– 12 / 14 – Educational & General (E & G Funds)
– 18 – Service Centers
– 19 – Designated Funds
– 26 – Grants & Contracts
– 29 – Auxiliary Enterprise Funds
– 30 – Gift Funds
– 32 – Loan Funds
– 36 – Plant Funds
– 41 – Agency Accounts
•
Budget Group – The first 8 digits of an account number represent a Budget
Group. Each department or academic entity may have several budget groups.
•
Budget Category – The last two digits of the account number specifies the
purpose of funds. A Budget Group could have multiple categories.
•
Unit Code – The unit code determines the department, division or college an
account belongs to. Typically the unit code is the same across fund groups. The
unit code was once embedded in the 10-digit account number. This does not
apply to the following fund groups, 26, 32, 36 and 41.
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Account Structure
• For additional information on the Chart
of Accounts, refer to Operational
Guidelines: Chart of Accounts at:
http://www.utsa.edu/financialaffairs/opguidelines/0114.html
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Electronic Statement of Account
• The Statement of Account is disbursed
electronically for each unit code.
• Consists of five reports:
–
–
–
–
–
Transactional Detail Report
Balances by Budget Group and Subaccount
Balances by Budget Group
Monthly Income and Expenses Workbook
Reconciliation Workbook
• The reports can be accessed as a PDF or
excel file
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Statement of Account - Detail
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8
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10
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14
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Encumbrance Example
A.
A department with a $7,000 budget
B.
Orders a $1,500 computer and that amount is encumbered on a
Purchase Order (PBO document). The ‘free balance’ (DEFINE
terminology = budget balance available) is reduced by $1,500, to
a new total of $5,500.
C.
The computer is received and a payment voucher (VP1
document) is prepared. A disencumbrance entry is created after
the payment voucher is created. $1,500 is disencumbered and
increases the ‘free balance’ by $1,500. The free balance is now
$7,000.
D.
Although not encumbered on the PO, the vendor has invoiced for
$100 in freight charges that are owed. A check is therefore
issued to the vendor in the amount of $1,600. The ‘free balance’
now shows as $5,400.
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Encumbrance Example
DESCRIPTION
EXP/INC
ENC/INV
a) Budget balance
before Purchase
Order
FREE
BALANCE
7,000.00
b) Encumbrance
created by Purchase
Order
1,500.00-
5,500.00
c) Disencumbrance
after the Payment
Voucher
1,500.00
7,000.00
d) Approved Payment
Voucher creates an
expenditure
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1,600.00-
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5,400.00
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18
19
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Balance Available
1. Each budget category in a budget group is assigned
to a budget pool.
2. Budget categories within a budget group may be
assigned to the same budget pool. In these
instances the system combines (pools) the balance
available of the different budget categories into one
balance (pool balance).
3. When the system audits an account for funds it reads
the pool balance, not the balance available.
4. Pooling accounts can reduce the number of routine
budget transfers that might normally be required.
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Balance Available
In the example below, although the balance available in
budget category is negative, the pool balance is positive
and a transaction for $5,000 or less will process.
Budget
Group
19-XXXX-XX
19-XXXX-XX
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Budget
Category
50
95
Budget
Pool
01
Free
Balance
-5,000
Pool
Balance
5,000
01
10,000
5,000
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Sub-Certification Process and
Account Reconciliation
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UT System Administration
Policy – UTS 142.1
• 3.2 Certifications by Account Owners (SubCertifications). Each Account Owner should provide
a sub-certification annually to the Financial Reporting
Officer-the Associate Vice President for Financial
Affairs. Each institution’s Financial Reporting Officer
should decide at what level the sub-certification is
required (e.g. Dean, department head, etc.). The
minimum requirements of the sub-certification letter
are included in Appendix 2.
• http://www.utsystem.edu/policy/policies/uts142_1.pdf
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Sub-Certification Process
• Electronic sub-certification conducted
through the Office of Institutional
Compliance & Risk Services at the
beginning of each fiscal year.
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Sub-Certification Process
The sub-certification certifies that, among
other items, their accounts are being
reconciled timely, duties are properly
segregated and no material weakness exists
relative to their internal control.
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Highlights of Sub-Certification
required by UT System
• Acknowledgement of responsibility
• Sub-Certification of reconciliation and that all
transactions were appropriate
• Sub-Certification that errors were adjusted
• Sub-Certification that transactions were
reviewed and approved.
• Sub-Certification of segregation of duties
– Enter & Approve transactions; Receive cash & reconcile
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Highlights of Sub-Certification
required by UT System (cont)
• Sub-Certification of sound internal controls
• Sub-Certification that no misstatements or
omissions are evident on your SOA
• Fraud Sub-Certification
• Sub-Certification of compliance with Code
of Ethics related to award of contracts
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Need for reconciliations and
segregation of duties?
• Funds availability
• Exposes lack of
internal controls
• Risk management
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Office of Institutional Compliance &
Risk Services Quality Assurance
Review (QAR)
• Reports of Account administrators failing to
complete the sub-certification are reported to
their respective Vice President, Auditing &
Consulting Services, & Asst. VP/Controller.
• Compliance utilizes administrator responses
(or lack thereof) when performing the annual
risk assessment to determine account
administrators selected for QAR
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Reconciliation Workbook
• The Reconciliation Workbook includes the Certification
Worksheet and Supplemental Information Report.
• Certification Worksheet: Provides year-to-date balances of all
active budget groups within a unit. It also includes the official
certification statement to be signed by the Account Administrator
and Reconciler.
• NOTE: This worksheet is provided as an optional tool that the
Reconciler can use to show total reconciling items and compute
the balance available per department. Departments may use
other tools (such as Quicken®) for this purpose, but they must
have a formal reconciliation process in place.
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Reconciliation Workbook
IMPORTANT:
• The certification statement and Account Administrator
and Reconciler signatures are required even if there
are no reconciling items or the department uses
another reconciliation method.
• If the Certification Worksheet is not used, the
certification statement must be copied verbatim from
the Certification Worksheet onto the last page of the
departmental reconciliation document and signed by
the Account Administrator and Reconciler.
• Retain reconciliation for FE+3
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Who Do You Call ???
• Contact Management Reporting and Administrative Systems
MRAS@utsa.edu for assistance with:
– Appropriate personnel are not receiving the SOA reports
– Accessing the SOA reports
– Other technical issues
• Contact Accounting Services at accounting.ofc@utsa.edu for
assistance with:
–
–
–
–
Accounting corrections
Recording reconciling items
Accounting terms and definitions
Other matters related to financial information
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NACUBO Program Codes
• Definition – Functional classification of
expenses
• Classification is assigned to a budget group
or individual sub-account
• Accounts should be reviewed for appropriate
NACUBO program codes
• Purpose of a new account is important for
determining appropriate code
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NACUBO Program Codes
Functional Classification List
Expense categories adopted by Higher Ed for
grouping budget & expenditures
02 – Instruction
06 – Research
12 – Public Service
14 – Academic Support
16 – Student Services
20 – Institutional Support
22 – Operational & Maintenance of Plant
48 – Scholarships & Fellowships
70 – Auxiliary Enterprises
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