Financial reconciliations and reviews are internal control procedures designed to verify the accuracy and reliability of accounting data and other management information.
- University policy requires managers to perform monthly reviews of financial transactions. A procedure must be in place to ensure the monthly reports received from the finance system reflect all items the manager authorized for payment, that no inappropriate expenditures exist, and that revenues collected for the operation have been deposited (if applicable).
- The manager can delegate all or a portion of this monthly review to others, but the manager is responsible for the adequate performance of the monthly review. In addition, the fact that the monthly review was performed must be documented by certifications that are signed by the person or persons who performed the initial reconciliation as well as by the manager responsible for final review of the funds.
- Completing reviews in a timely manner after the close of each month so that corrections can be completed within 60 days of the original posting in the accounting system
- Ensuring any portions of this monthly review and reconciliation process delegated to employees have been adequately performed
- Ensuring monthly reconciliation is signed and documented by the person or persons who performed the initial reconciliation
- Performing monthly reviews of financial transactions in funds assigned to the department head.
- Ensuring monthly reports obtained from the Banner Finance system reflect all items the department head authorized for payment, no inappropriate expenditures exist, and that revenues collected for the operation have been deposited (if applicable).
- The department head is responsible for signing the certification on the Banner Finance Snapshot by Organization report indicating final review and approval.
- Reviewing the spending rate by major source of funds as shown by the percentage of budget balance available on the Snapshot by Organization report to detect unusual trends for the department.
- The Snapshot by Organization report should be run at the four-digit department code level to enable the report to break by major source of funds (E&G, overhead, sponsored programs, auxiliaries, etc…).
- The department head or designee should review the detail of the monthly purchase card charges to ensure that all charges are appropriate expenses for the department.