Monthly Financial Reconciliation

Per the Spending Guidelines:

The project custodians, individuals responsible for the funds in a project, are responsible for ensuring that proper documentation procedures are followed…and that only authorized expenditures are charged to the project.  

Further, the project custodians are responsible for ensuring any project, which they may control, are reviewed at least monthly and any incorrect or inappropriate transactions are reported to the Controller’s office.

At the beginning of each month, each department receives a Financial Reconciliation list of all the projects that department is responsible for. The assigned reconciler and responsible person will need to review each transaction in each project to confirm that they have all posted to the correct project and account. To review these transactions you will want to use the WolfPack Reporting System, specifically Reports P1 and P3.

Review, if applicable, all revenue and expense transactions (Personnel and Operating) and confirm they are correct and have been posted to the correct project and account.

Review any encumbrances and be sure they are correct.   If there is an item or order from Marketplace that is showing as encumbered but that has been cancelled, call the help desk and have them assist with removing the encumbrance.  If there is a large purchase requisition that came in under the original amount and there is still a balance encumbered even through the order has been received send and email, that includes the PO number, project and account code, to and ask that the encumbrance be zeroed out and the PO closed.

And lastly, look at the spending to date as compared to the budget to be sure your department is “on track” with spending.  For instance, at the end of December, we are 50% of the way through the fiscal year.  Where is your spending at?  Have you used about 50% of your budget?  Perhaps you had a large purchase budgeted and that happened at the beginning of the year so you are now over 50%.  Or perhaps that large purchase hasn’t happened yet and you are under 50%.   It is OK if you are over or under budget as long as you know why and you know you will be on track by the end of the fiscal year.

NOTE: Be sure to confirm that no food was charged to a project that it is not allowed on.  This includes food for student programming, student employee trainings, workshops or for any other reason.  For more information regarding allowable and unallowable charges on each fund type see the State Spending Guidelines.

On the form itself, please either check the box or write “NA” in the box if that particular item doesn’t apply to that project.  For instance, you might not have any encumbrances or payroll on a project.  You would then write NA in those two boxes and, after reviewing the revenue, operating and PR (personnel) expenses, you would check those boxes.

Once all transactions for the month have been verified and the form completed,  the Financial Reconciliation form will need to be signed by both the reconciler (departmental bookkeeper) and the director/department head and returned to the Finance Office by the given deadline.

If any errors are found, a Journal Voucher (JV) form will need to be completed and submitted, to the Finance office, along with the required back up documentation.  Corrections need to be requested and processed within 30 days of the end of the month they are for.

Once a JV has been processed you will receive a copy of it with the JV number.  Please allow two weeks for your JV to be processed.