This policy governs reconciling, verifying, and substantiating financial information used by University personnel for administrative and programmatic decision-making.
- Review monetary and non-monetary financial information on a regular and timely basis, monthly (at a minimum) by using reports to verify revenue and expense transactions, payroll transactions, and other financial transactions for accuracy and completeness. Several reports are available in MyU Reporting Center to aid the review process; and
- reconcile balance sheet accounts quarterly (at a minimum) on a timely basis. Balance sheet account reconciliations must have both a preparer and approver review to ensure the transactions are reconciled and appropriate for the account.
Units must assign accountability to unit employees and procedures must be in place in each unit to reconcile, verify, and substantiate financial information. Units are responsible for investigating and correcting any inaccuracies or incomplete financial information identified during the reconciliation or verification process in a timely manner in accordance with the Processing Accounting Transactions policy guidelines.
Units must consider significance of activity, compliance risk, transaction detail volume, knowledge, and experience of personnel performing analyses, in the design and implementation of account reconciliations and the subsequent review process.
Reason for Policy
University personnel must comply with the requirements of this policy to ensure that an effective internal control environment is maintained. Reconciliation, verification, and substantiation are essential for an effective internal control environment to ensure that:
- the financial information transmitted to, contained in, and reported from the University's financial systems is accurate, complete and recorded in a timely manner;
- the financial information can be relied upon for making financial and administrative decisions; and
- units can identify and quickly report fraud, theft, compliance violations, and other irregularities to the appropriate authorities.