Monthly Reconciliation
Why do we need to reconcile?
NIH policy requires it: see Grants Policy Statement on financial
management standards (section IIA, page 98).
Allows you to create accurate financial statements so PIs can
make informed decisions about their research.
Protect yourself, the PI, the Dept & University from audit
disallowances.
Timely cost transfers/change orders/X-outs = PI has time to
spend $ on other project related expenses, instead if sending $
back to agency.
If cost transfers are processed in a timely manner (i.e. w/i 120
days): you do not need exceptional approval from EFM.
TOOL – FS0100 Ledger and/or FPM/QDB
Summary by Sub/Object & Closed Reports
Step #1 - Review Object Codes: FS0100
Sub-Object Summary
Tool - FS0100 Detail General Ledger, Expenditures: Sub-Object
Summary
Are all Object Codes allowable & applicable on this grant?
Step #2 - Review Non-Payroll Expense:
Current Month Transactions (FS0100) or Closed (QDB)
Are all expenses allowable & applicable to this grant according to agency policy &
approved budget?
Pay close attention to Recharge entries, as Recharge IDs can become blank checks if
appropriate controls are not in place.
Step #3 -Review Payroll:
Payroll Ledger (PPP5302) or PPP FAU Sum by Org (QDB)
Are all individuals actually working on the grant?
Is the percent effort appropriate according to actual effort worked
& budgeted?
If NIH, are all pay rates at or below the cap?
TOOL - SOM QDB/FPM
Step #4 Review Remaining Encumbrances (QDB)
Are all encumbrances valid, or does the PO need to be X’d out?
Step #5 -Run Warning &
Unallowable Object Code Report (QDB)
Use this tool as a
double check to your
reconciliation of the
Sub-Object Summary
ledger.
If allowable, be
prepared to provide
additional justification
and documentation to
support allowability.
Step #6 -Review Linked Accounts
(QDB Summary of Funds)
Are any linked account in overdraft?
Are funds being spent according to budget, agency policies, and how your PI
intended?
Step #7 Run F&A Reconciliation Link Report (QDB)
Is there a VARIANCE listed at the
bottom of the report?
If the variance is POSITIVE, the
fund was not charged enough 9H,
and needs to be debited.
If the variance is NEGATIVE, the
fund was charged too much 9H,
and is due a credit.
EFM will have to JOURNAL the
VARIANCE in order to debit/credit
the 9H pool.
Step #8 -Check for 9H Adjusted Needed on
Summary-By-Sub Report (QDB)
Run the report using the FULL ACCOUNTING UNIT (FAU). You will not
get correct results if you enter an “*” in the Account or Costcenter.
Is there an amount other than zero listed under 9H TOF ADJ NEEDED?
Understand WHY before processing TOF. Examples:
Was unbudgeted equipment, GSR fees, patient care purchased?
Did subawards get Object Coded correctly to reflect 9H on first $25k?
TOOL - ORA Portal
Step #9 Run Salary Cap Report
(for applicable funds)
Choose your Dept,
Salary Cap amount &
time period, and the
report will find any
salaries rates paid above
the Cap amount chosen
for funds that are flagged
in the FS system as
having a Salary Cap.
TOOL - PI Portal
Step #10 Review Payroll on Linked Accounts
You will only be able to view the name of the individual paid and the total salary charged. You will not
be able to view pay rates or percent paid.
Are all individuals actually working on the grant?
Don’t forget your PI!
•
Creating monthly financial
statements, meeting with your
PI, and providing the reports
is one of the most important
tools we can use to help us
reconcile the expenses! The
PI has the best knowledge
available to determine if
expenses benefitted the grant
charged or not.
Step #11 Action on Findings
Non-Salary Unallowables: process NPEARs to move expense to
appropriate FAU, or change Sub or Object Code if necessary.
Salary Unallowables: update EDB, process necessary UPAYs and/or
Rx/Lx's.
Close invalid POs via BruinBuy, Purchasing & Accounting to release
the money back into the FAU.
Rerun financial statements to reflect changes and new projections.