Departmental Bookkeeping

Policy 501.7

Introduction

The purpose of this policy is to provide administrative direction and to implement a formal process for Appalachian State University (“Appalachian”) for reconciling department funds.

Scope

The policy applies to any employee who has been designated as a financial manager, reconciler or approver involved in the monthly department fund reconciliation process.

Policy and Procedure Statements

Departmental Monthly Reconciliation

4.1.1 In January 2009, The University of North Carolina (UNC) General Administration began the UNC Finance Improvement and Transformation Initiative (UNC-FIT). The UNC-FIT task force was given the assignment of strengthening internal accounting controls and aligning processes and technology among the UNC constituent institutions. As a result, Appalachian State University and other UNC System institutions were required to implement a formal process for reconciling all departmental funds.

4.1.2 As such, any employee who has been designated as the financial manager of a departmental fund must identify both a reconciler and approver who will be responsible for completing the monthly department fund reconciliation process. An employee may not reconcile and approve the monthly fund reconciliation, however, the financial manager may also serve as the approver.

The reconciler must complete the following activities within 30 days of the end of each month: (1) Review monthly financial reports in detail; (2) complete the electronic Departmental Fund Activity Reconciliation form (accessed via Self-Service Banner) and submit the form to the designated approver; (3) retain any backup documentation associated with the monthly reconciliation(s) in the event that University or State Auditor(s) need to review the funds' financial transactions. A listing of reports to aid in the reconciliation entitled, "E-Print - The Right Report for the Job", can also be found on the Budget Office website.

The designated approver must review and approve the Departmental Fund Activity Reconciliation form in Self-Service Banner within 45 days of the end of each month.

Reconciliation and Over Budget Memoranda

4.2.1 Those responsible for managing all fund types of university resources (ie. deparment heads or their designees, principal investigators,etc...) must complete the following activities each month: (1) review monthly financial reports in detail; (2) complete the university Controller's Office Departmental Fund Activity Reconciliation Form and print a copy. This form is found at http://www.appleap.appstate.edu/finance_over.html; (3) sign the copy of the form; (4) obtain the supervisor's approving signature; and (5) retain a file with the approved monthly reconciliation(s) in the event the university or State Auditor(s) need to review the funds' financial transactions. A listing of e-print reports to aid in the reconciliation entitled, "E-Print - The Right Report for the Job", can also be found at http://www.appleap.appstate.edu/finance_over.html.

4.2.2 Over budget memoranda for State Funds have been placed in E-Print with the report name fzrabudget-notice. Personnel shall access the report, view the over budget items and process any necessary budget transfers via the Banner Finance Self-Service module or Request for Budget Revision Form. If the fund has all positive account balances, no over budget memo will be found. Any person with E-Print and fund security may access a particular fund to view the over budget memoranda.

Reminders

1. All budget entries must be processed with even dollar amounts (no cents);
2. The budget period on the Banner Self-Service entry should always be 01 (regardless of the fiscal month);
3. The report has not been programmed to include encumbrances (since that total could change because of shipping, taxes, etc...). Estimate the total and include the item in the budget transfers to properly align departmental funds; and
4. In order to be posted to the Banner Finance System before the month is closed, the approved request(s) for budget revision(s) must be in the university Budget Office by the third working day from the current month-end.