Skip to Search Skip to Navigation Skip to Content

Section 1: Internal Control

Monthly Financial Report Reconciliation Process

Effective Date:

05/04/11

Approved By:

Lenora Chapman, Associate Vice President, Financial Affairs

Last Revised On:

01/26/15

For Assistance Contact:

Accounting Services (financial and accounting questions)
PeopleSoft Support and Sustainment Center (technical UTShare/PeopleSoft questions)

PURPOSE/SCOPE

To assist Department Managers and Reconcilers with completion of the reconciliation of the Monthly Financial Report.

AUTHORITY

UT System Policy UTS142.1 - Policy on the Annual Financial Report


UNIVERSITY GUIDELINES

Table of Contents

A. Overview

Monthly Financial Report (Report) reconciliation is a control activity to compare departmental records to the official accounting record for the Cost Centers/Project IDs shown in the Report. The reconciliation process includes noting and correcting any reconciling items (discrepancies between the Report and departmental records).  Department Managers are required to certify annually that all Monthly Financial Reports have been reconciled.
Reconciliation helps management:

    1. Identify errors and inconsistencies
    2. Determine availability of funds
    3. Identify internal control deficiencies

For more information on reconciliations see UTSA Financial Management Operational Guideline (FMOG) - Control Activities.

Because of the importance of Monthly Financial Report reconciliation in effective internal control, completion of the monthly reconciliation and timely correction of errors and omissions are factors in Quality Assurance Reviews (QARs) performed by the Office of Institutional Compliance and Risk Services. These reviews are intended to provide management with assurance that internal controls in a department are in place and are operating effectively.

For more information on QARs see FMOG - Monitoring Plan for Segregation of Duties and Reconciliation of Accounts, and the Quality Assurance Review section of the Institutional Compliance website.

B. Responsibilities

Responsibilities related to  Report reconciliation include, but are not limited to, the following:

Department Managers

  • Stewardship of UTSA's assets including preventing overspending of departmental budgets.
  • Ensuring that Cost Centers/Project IDs are reviewed each month and accurate accounting records are maintained, and certifying that the reconciliation of all Cost Center/Project ID activity has been completed.
  • Reviewing the reconciliation and signing the Certification Statement included in the Monthly Financial Report. The Department Manager’s signature indicates approval of all activity and agreement that all financial transactions are included and appropriate, and correction of all errors has been completed or requested.

 Reconcilers

  • Keeping track of all transactions and related documents for any commitment or receipt of funds for Cost Centers/Project IDs throughout the month. This can be accomplished by keeping a detailed log and documentation for all transactions approved for a Cost Center/Project ID.
  • Completing a monthly reconciliation of departmental records against the Report for all Cost Centers/Project IDs.
  • Promptly notifying the appropriate department of errors and omissions, coordinating corrections to the university accounting records as appropriate, and following up to confirm that corrections were completed. For more detail on corrections of accounting records, see Monthly Financial Report - Corrections on the Accounting Services website.
  • Signing the Certification Statement included in the Report and obtaining the signature of the Department Manager.
  • Retaining all pages of the Report, supporting documentation and related records for the current fiscal year plus three (a total of four fiscal years).  Documentation may be paper or electronic. All documentation must be readily available for inspection for audits, Quality Assurance Reviews, and other examinations.




C. Reconciliation Process

Each month, the departmental reconciler:
1. Downloads the Report (summary and detail sections) in the UTShare/PeopleSoft system (for detailed instructions see the Accounting Services website);
2. Compares the information in the Report to departmental records;
3. Identifies and keeps a record of any reconciling items (discrepancies);
4. Initiates any corrections needed by contacting the appropriate department, and follows up to confirm that all reconciling items have been resolved; and
5. Signs the Certification Statement included in the Report and obtains the signature of the Department Manager.
Departments must retain the following documents for the current fiscal year plus three additional years:

    1. Monthly Financial Report
    2. Supporting documentation and related records, including the list of transactions in departmental records that are not included in the Report, other reconciling items, and documentation of corrections

D. Additional Resources

  • Recommended training:
    • –Monthly Financial Report Reconciliation Process Using UTShare/PeopleSoft
    • Introduction to the Chart of Accounts
    • Managing Departmental Expense and Revenue Budgets

  • Contact the PeopleSoft Support and Sustainment Center (PSSC) for assistance with UTShare/PeopleSoft technical issues such as accessing and running reports, or logging into the system:
    • Telephone: 210-458-SPOC (7762)
    • Click the “SPOC” button on the UTShare website to submit questions in the PeopleSoft Ticketing System

  • Email Accounting Services for assistance with the following:
    • Accounting corrections
    • Recording reconciling items
    • Accounting terms and definitions
    • Other matters related to financial information



DEFINITIONS

Term

Description

Department Manager

An individual with fiscal responsibility including Monthly Financial Report reconciliation and decision-making authority for UTSA resources, who has approval access to commit funding using the institutional financial accounting system.   

Reconciler

The individual assigned by the Department Manager to perform the Monthly Financial Report reconciliation (delegation of the reconciliation is not mandatory, but recommended as it provides separation of duties for internal control).

 

REFERENCES/LINKS

RELATED FORMS/WORKSHEETS

None at this time.

REVISION HISTORY

Date Description

01/26/15

Updated Statement of Accounts (SOA) to Monthly Financial Report.

07/15/14

Updated FMOG to include Statement of Accounts certification link and added Statement of Accounts certification to Related Forms/Worksheets section.

05/01/14

Updated DEFINE information for transition to PeopleSoft.

04/25/13

Updated broken link for Office of Institutional Complaince and Risk Services and Quality Assurance Review.

05/01/12

Updates published on 05/01/12 are effective immediately, however, Financial Affairs encourages users to submit comments and/or concerns regarding these updates to financialaffairs@utsa.edu within the next 60 days.

07/21/11
  • Revised SOA Reconciliation Checklist. Added link to MRAS Contact web page in step 2. Added SOA-Corrections reference in step 10. Added instructions for Certification Statement in steps 11-13.

  • Added references to the Reconciliation Worksheet section and replaced SOA correction instructions with link to Accounting Services web page in section A. Responsibilities.

  • Added instructions for Mac users to download the SOA Reconciliation Report.

  • Departments are no longer required to print a blank Reconciliation Worksheet if using another reconciliation tool, however, the Certification Statement must be copied verbatim from the Reconciliation Worksheet and pasted to the chosen reconciliation tool to obtain the required signatures.

06/29/11

Revised section title to reflect new title "Internal Control". Added reference FMOG Control Activities to section C. Reconciliation Process.

03/01/11

Published new guideline to be effective 05/04/11.


In All We Do, We Do With Excellence - Every Person - Every Day - Every Job
         

Operational Guidelines

Helpful Links