The Florida State University Controller’s Office Presents:
General Ledger Reconciliation
BTFA03
Overview
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Ledger Reconciliation Objectives / Guidelines
Departmental Ledger Reports
High Level Analysis
Source Documents and Corrections
Reconciling Encumbrances
Reconciliation Objectives
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Verify the accuracy of the General Ledger
Ensure sound financial management of University resources
Provide management, auditors, and other users with reliable
financial information.
2007-2008 Controller’s Memoranda #02 - Ledger Reconciliation
Guidelines
Reconciliations help to ensure proper internal controls and
detect/prevent fraud
• This is a critical departmental function
• The Departmental Business Management Guide on the
Controller’s website contains detailed information on internal
controls
Reconciliation Guidelines
What should be reviewed?
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Obtain departmental ledger reports
Trace to supporting documentation
Verify:
• Dollar Amount
• Account Code charged
• Budget charged
• Allowable expenditure
Reconciliation Guidelines
What are the final steps?
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Correcting Journal Entries
Finalized recon MUST include:
• GL Balance information
• Name of preparer
• Date prepared
• Name/signature & date of reviewer
• Reconciling items and notes on their resolution
• Adequate supporting documentation of all transactions
Reconciliation Guidelines
Who can perform/review?
• It is critical that proper segregation of duties is maintained
• The Budget Manager/designee should perform the
reconciliation
• Employees who originate and/or authorize transactions being
reconciled SHOULD NOT perform or review/sign off on the
reconciliation
• Preferably, review/sign off should be done by someone at the
supervisor/management level
Reconciliation Guidelines
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When is it due?
• Completed, reviewed and signed off by end of the 2nd
succeeding month
• Reconciling items resolved by the end of the 3rd succeeding
month
Retain Reconciliations 5 years
Departmental Ledgers –
OMNI Monthly Ledgers
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Official University Ledgers
OMNI Financials > Reporting Tools > Report Search Page
Reports available:
• Department Ledger Summary
• Detailed Reports (Expense, Revenue, Cash, Encumbrance,
etc.)
See BTFA02 materials for additional information
Departmental Ledgers –
OBI Reporting Financial Reports
• Data Warehouse accessed via OMNI Portal Page
• Reports Available:
• Summary and Detail Ledgers
• Equivalent of OMNI ledgers
• Transaction Details
• Expense, Encumbrance, Cash, Revenue, Liabilities and Other Assets
transaction-level detail available
• Downloadable to Excel
• Trend Ledgers
• Year-by-Year
• Month-by-Month
Departmental Ledgers OBI Reporting Financial Reports
• Timing of reports
• Data normally one day old
• Recommended that reports be run after OMNI Ledgers
become available
• This helps to ensure data in OBI is final
• Job Aids available
High Level Analysis
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Review OMNI Summary Ledgers for:
• Positive/sufficient cash balances (Auxiliaries)
• Positive/sufficient available balances (E&G, Carryforward)
• Changes in OCO
• Any liabilities that did not clear from the previous month
Tie OBI Reports to OMNI Summary Ledgers
Month-by-Month Trend Ledger
• Useful tool for identifying charges out of line with the “norm”
• Pay special attention to abnormally high expenses and low revenues
Expense and Revenue Source
Documents
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Must support all transactional information on the departmental
ledger
Most detailed work relates to Expenses
Revenue source documents will vary widely
Expense Source Documents
Payroll Charges
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Verification of Payroll/OPS charges is somewhat cumbersome
Use of the OBI HR-GL Detail report is recommended
• FSU_PY_FI_REP_INQUIRY security role may be needed
• Ensure your report matches total ‘PAY’ journals
• Compare to signed Payroll Certification report (Cost Center)
• Only verifying employees (not amounts)
Expense Source Documents
Accounts Payable Charges
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‘AP’ Journals
Non-PCard backup available in OMNI via Document Management
OMNI navigation
• Accounts Payable > Vouchers > Add/Update > Regular Entry >
Find an Existing Value > Related Content
Lookup backup invoices, POs, etc. by the Voucher #
Additional Document Management information available on
Payables & Disbursement Services website
Expense Source Documents
Purchasing Card Charges
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‘AP’ Journals to FIA CARD SERVICES Vendor
FSU_DPT_PCARD_GL_DETAILS
Older reconciliations available in Document Management
Work with proxies to obtain most recent completed reconciliation
Expense Source Documents
Facilities Charges
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Vendor = Facilities
Detailed backup available in BlackBoard
• FACILITIES organization (ADM 13122 ORG)
• Contact Debra West (ddwest@admin.fsu.edu) to obtain access
Monthly file includes all University departments
• Via ‘Department Charges’ link
• Be sure to just print your department’s pages
Expense Source Documents
Postage Charges
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‘PST’ journals
Postal Services website - chargeslip.uc.fsu.edu
• Postal Charges - SEARCH FOR COMPLETED CHARGE
SLIPS link
• Pull up detail of charge slips entered by your department for a
date range
• Match Order ID to JRNL LN REF field on Ledger
• UPS Charges
Expense Source Documents
Travel & Expense Charges
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‘EX’ journals
OMNI Navigation – Travel and Expenses > Travel and Expense
Center
Search by Expense Report ID
Expense Source Documents
Online Journal Entry Charges
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Backup available in OMNI via Journal Attachment feature
• General Ledger > Journals >Journal Entry > Create/Update
Journal Entries
Variety of Journal Sources
• Copy Equipment Charges from Business Services (‘BUS’)
• Background Checks processed by Human Resources (‘HR’)
• JRNL LN REF field contains date request processed
• This date should also appear on backup in OMNI
• Other online journals will normally begin with ‘0000’.
Expense Source Documents
Network & Communications Charges
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‘TEL’ journals
Access to invoices at http://accounts.otc.fsu.edu/
• Budget Manager must submit a request to ITS for this access
• See ITS FAQ for more information at
http://faq.its.fsu.edu/Billing-Invoices/Billing-InvoicesDepartments
Monthly email from help@otc.fsu.edu when invoices are available
Revenue Source Documents
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Will vary widely from department to department
Source Documents include:
• Revenue Deposit forms (DT118)
• Revenue-to-Revenue Transfer forms
• Departmental Refund Forms
• Bank Deposit Slips
• SFS Cashier Receipts
• Returned Checks
Most backup will not be in OMNI; necessary to work with
appropriate staff in your department
Corrections
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Expenditure Transfer Journal Entry Form
• Consult the Expense Account Lists when determining proper
coding
• Signed form should be emailed to General Accounting
Revenue to Revenue Transfer Form / Student Financial Services
(SFS) OMNI Correction Form
• Be sure to use if correction effects revenue account(s)
• Instructions for forms are available
Reconciling Encumbrances
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Encumbrance – An allocation or reservation of funds for a particular
expenditure in the future
Encumbrances are established by:
• Travel Authorizations
• Purchase Orders
• Payroll Charges
Track Encumbrances to make sure they are closed when final payment
is made
• Research encumbrances older than 90 days
• POs: Purchasing > Purchase Orders > Review PO Information > Purchase Orders
• T-Auths: Travel and Expenses > Travel and Expense Center > Travel Authorization > View
Reconciling Encumbrances
• Why would a Purchase Order no longer be needed?
• Vendor could not provide product/service
• Item paid for with PCard or via unencumbered payment
• Item not needed after all
• Cancelling a Purchase Order
• Issue a Change Order
• Form available on Purchasing Website
• Detailed instructions also available on how to use this form
Reconciling Encumbrances
• Why would a Travel Authorization no longer be needed?
• Travel did not occur
• Travel paid from different source
• Expense Report not created by starting from a T-Auth, so
encumbrance not cleared when ER processed
• Cancelling a Travel Authorization
• Cancellation done in OMNI Travel and Expense center
• Travel Rep will likely need to process
Contact Information
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Lauren Barrett– Quality Assurance
• lmbarrett@fsu.edu
• 645-8611
Slides available at: http://controller.vpfa.fsu.edu/Training-Job-Aids