Account Reconciliation

Account Reconciliation

Scope

All School of Education fiscal delegates.

Policy Statement

All University accounts should be reconciled on a monthly basis.

Reason for Policy

To ensure routine budget oversight, compliance with all University policies, and reliability of accounting records.

Procedures

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Checking the box labelled 'Include Accumulated Monthly Operating Statements in list of reports' will include these accumulated reports in list of reports returned. The Accumulated Monthly Operating Statement consolidates sub account balances up to the account level. If an account does not have sub accounts the Accumulated Monthly Operating Statement is the same as the Monthly Operating Statement.
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Use these reports to ensure all expenses and income align accurately to what is expected in all categories:

  • Operating Statement
    • Review monthly and year-to-date (YTD) actuals
    • Compare current budget to projected available balance
    • Review outstanding encumbrance amounts
  • Transaction Listing
    • Expenses and income should comply with all internal or external policies and procedures
    • All expenses should appropriately reflect items received or any services rendered
    • Investigate and resolve any erroneous items found
    • Review open encumbrances
  • Labor Detail
    • Review person and salary amounts
    • Ensure accuracy of effort charged each month
    • Investigate and resolve any erroneous items found immediately
  • Detail Inter-Departmental Billing (ID Billing)
    • All expenses should appropriately reflect items received or any services rendered
    • Investigate and resolve any erroneous items found 

Templates

Available templates to assist in the account reconciliation process:
https://iu.box.com/v/IUB-SOE-Finance

Definitions

Reconciliation: A Monthly Operating Detail (MOD) and Monthly Operating Statement (MOS) are provided to the Fiscal Officer to assist in a monthly review of the account. These statements reflect the official university records, the current budget, cash transactions to date, and accrual and encumbrance information. These statements should be reviewed, along with supporting documentation, such as payroll and purchasing documentation, to ensure that all entries recorded are accurate and appropriate to the account. The review should also include an analysis of the actual to budgeted variances to assist in determining that the activities in the account confirm to the budget.
https://policies.iu.edu/policies/fin-acc-1-role-fiscal-officer-account-manager-account-supervisor/index.html