GUIDELINES FOR REVIEWING/RECONCILING BUDGET GROUPS (EXCLUDING SALARIES AND BENEFITS SUB-ACCOUNTS) WITH TOTAL ANNUAL BUDGETS
LESS THAN $100,000

UTSA’s managers serve as stewards of the university’s assets.  As leaders, we are expected to guide, direct, and diligently protect these resources.  The Regents’ Rules and Regulations, Part Two, Chapter 2, Section 2.6 states the following:

“Statements of department or other administrative unit accounts shall be prepared monthly by the business office and shall be sent periodically to the department heads who will compare their records with those of the business office and report any differences promptly to the business office.” 

Required procedures for Budget Groups (excluding salaries and benefits sub-accounts) with total annual budgets less than $100,000 

 NOTE:  An Account Review is the minimal action required, however, it is not ideal for all Budget Groups with total annual budgets less than $100,000. Account administrators should evaluate the complexity of their operation, e.g., number and types of transactions and determine whether an Account Review or an Account Reconciliation provides them with the appropriate degree of assurance that their accounts are being appropriately administered.  Account administrators should also follow the requirements set forth by their particular vice presidential area. 

Recommended procedures for Budget Groups (excluding salaries and benefits sub-accounts) with total annual budgets less than $100,000 

While not required for operating accounts under $100,000, a full Account Reconciliation (ACCOUNT RECONCILIATION PROCEDURES ) is highly recommended. An Account Reconciliation takes the Account Review a step further by providing information regarding the funds available for the remainder of the fiscal year.   

NOTE:  Step by step procedures for performing an Account Review and an Account Reconciliation are provided on the following pages.

ACCOUNT REVIEW PROCEDURES

Step # Description

Completed
(√/ Date)
1. Set-up a Pending File where you will file paper copies of your transaction documentation for the month (PO’s, Petty Cash Receipts, Work Requests, Deposit Slips etc.).  
2. Obtain the current month’s Statement of Account (the Accounting Department mails the Statements of Account to departments between the 15th and the 20th of each month- if you are not receiving your Statement of Account call Accounting at X4212).  
3. Compare the beginning balance on the current month’s Statement of Account to the ending balance on the previous month’s Statement of Account to ensure that they match.  
4. Match each transaction listed in the Statement of Account to a document in your Pending File. If the transaction amount on the Statement of Account is the same as the amount on your Pending File document, put a check mark next to the item on your Statement of Account and on your transaction document to note that it cleared. Once your paper transaction documents are cleared they can be filed in your permanent files.  
5.

You may not have paper documentation in your Pending File for all of the transactions on the Statement of Account, e.g., Interdepartmental Transfers (IDTs).   

§       Mail Services- review the charges on your Statement of Account and determine whether they are reasonable given the volume of mail your department usually processes. 

§      Facilities Services-match to work order in your Pending File 

§      Telephone Services- match to phone bill in your Pending File 

If you believe the IDT charges are accurate you can check them off on the Statement of Account and consider them cleared.		  
6. After completing this process, you may have identified items in this month’s Statement of Account that are incorrect, e.g., charges that your department did not make, charges for the wrong amount, deposits to the wrong account.  Generally, the Office of Accounting can advise you regarding corrections (e-mail Benga Adeeko or Ramon Vazquez).  Purchase Order corrections are handled by the Purchasing Department. Always verify that errors from previous statements have been corrected.  If the correction(s) have not been made, follow-up with an e-mail to the individual who was handling the correction.  
7. Place a copy of any correspondence regarding correction(s), in the department’s Pending File as a reminder for next month’s Account Review.  
8. The individual who performs the Account Review should sign and date the Statement of Account. The Department Head should review, sign, and date the Statement of Account to indicate that he/she is aware of errors that were identified and that transactions are appropriate.  

ACCOUNT RECONCILIATION PROCEDURES 

Step # Description Completed (√/ Date)
1. If you are not using an electronic system, you will need to set-up a Pending File where paper copies of your transaction documentation for the month will be filed temporarily (PO’s, Petty Cash Receipts, Work Requests, Deposit Slips etc.). If you are using an electronic system, e.g., Excel/Quicken/QuickBooks, throughout the month enter the information from your paper transaction documents into the system and mark each paper document with a check mark to note that it has been entered into the system. The paper document can then be filed in your department’s permanent files.  
2. Obtain the current month’s Statement of Account (the Accounting Department mails the Statements of Account to departments between the 15th and the 20th of each month- if you are not getting your Statement of Account call Accounting at X4217).  
3. Compare the beginning balance on the current month’s Statement of Account to the ending balance on the previous month’s Statement of Account to ensure that they match.  
4. Match each transaction listed on the Statement of Account to a document in your Pending File or an entry in your electronic system. If the transaction amount on the Statement of Account is the same as the amount on your Pending File document or electronic entry, put a check mark next to the item on your Statement of Account and on your transaction document/electronic entry to note that it reconciled. Once your paper transaction documents are reconciled they can be filed in your permanent files.  
5.

You may not have paper documentation in your Pending File for all of the transactions on the Statement of Account, e.g. Interdepartmental Transfers (IDTs).   

§         Mail Services- review the charges on your Statement of Account and determine whether they are reasonable given the volume of mail your department usually processes.

§          Facilities Services-match to work order in your Pending File 

§         Telephone Services- match to phone bill in your Pending File

If you believe the IDT charges are accurate you can check them off on the Statement of Account and consider them reconciled.  If you have an electronic system, you will need to enter these charges into the system (another option would be to enter estimates of the charges into the system at the time you incur the charges- you can amend the entry at a later date once you know the accurate charge) and then reconcile them.		  
6. Make a list of encumbrances or expenses, e.g., purchase orders, receipts that are in your records (pending file or electronic system), but are not included in this month’s Statement of Account (step 2 on worksheet)  
7. Make a list of transfers and deposits, e.g., deposit slips that are in your records (pending file or electronic system), but are not included in this month’s Statement of Account (steps 3 and 4 on worksheet).   
8. After completing this process, you may have identified items in this month’s Statement of Account that are incorrect, e.g., charges that your department did not make, charges for the wrong amount, deposits to the wrong account.  Generally, the Office of Accounting can advise you regarding corrections (e-mail Benga Adeeko or Ramon Vazquez).  Purchase Order corrections are handled by the Purchasing Department. Always verify that errors from previous statements have been corrected.  If the correction(s) have not been made, follow-up with an e-mail to the individual who was handling the correction. (step 5 on worksheet).  
9. Place a copy of any correspondence regarding correction(s) in the department’s Pending File as a reminder for next month’s Account Reconciliation. If using an electronic system enter the correction into your system.  
10. The individual who performs the Account Reconciliation should sign and date the Statement of Account. The Department Head should review, sign, and date the Statement of Account to indicate that he/she is aware of errors that were identified and that transactions are appropriate.  
11. Optional- prepare a summary document with information regarding all of the accounts under a Department Head.  The summary document may include monthly transaction totals, balances given that transactions are outstanding or whatever information the department head needs.  

Use the worksheet below in conjunction with the reconciling procedures to determine your “bottom line” at the end of every month.

 ACCOUNT RECONCILIATION WORKSHEET