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Overview of Monthly Reconciliation
 

Monthly Review & Reconciliation

Everyone who authorizes the expenditure of University funds for any purpose must confirm prior to approving a transaction that the expenditures are:

  • Reasonable and necessary
  • Consistent with established University policies and practices
  • Applicable to the work of the University, including instruction, research, and public service
  • Consistent with sponsor or donor expenditure restrictions

In addition, University Policy and good business practice require departmental reconciliation and review of Expenditure Detail Reports and Revenue Detail Reports, and correction of errors in a timely manner.

What is reconciliation?

Reconciliation is the process of comparing the entries on these key reports to supporting documentation and resolving any discrepancies.

Why reconcile?
  • To ensure the accuracy and validity of the entries and balances
  • To ensure the records are accurately recorded
  • To ensure unauthorized changes/charges did not occur
  • To resolve discrepancies in a timely fashion

Internal Controls are Necessary

Internal controls are the practices performed by departments to provide management with reasonable assurance that assets are safeguarded and transactions are authorized, valid, complete and accurate.

Benefits of Internal Controls

  • Prevents errors and irregularities from occurring. If errors or irregularities do occur, they will be detected in a timely manner.
  • Ensures issues arising from reporting errors are kept to a minimum and quickly resolved.

When and how to reconcile?

Reconciliation should occur regularly, after month end close. Steps to Include:

  • Review recorded transactions and investigate those that you don't recognize or appear unusual
  • Compare transactions to source documents as needed
  • Review infrequent transactions
  • Investigate and resolve differences
  • Initial and date the reports to document that a review and reconciliation was performed

Below is a summary of key components of this internal control, Reconciliation. Your review and reconciliation process may be more or less detailed than the process listed below depending on many factors. Such factors can be up front controls, experience, knowledge, the type of transaction, and the associated risk.

Salary

Confirm:

  • The amount charged is the same as the percentage planned
  • For Hourly Employee - verify against timesheet (if not using Kronos) if amounts charged appear unusual
  • Two pay lines for each person each month (matches pay periods) unless known changes occurred
  • Correct Expenditure Type was used (based on JCC codes)

Earning Codes (for reconciliation)

Reports available in ReportMart:

  • FIN_LABOR_169_Earnings_Dist_Emp
  • FIN_LABOR_173_Susp_Charge_Reason

Reports available in PeopleSoft:

  • PS8Grosspay
  • PS8GF8Sumbymoneysrce
Benefits
Vacation/Sick

Ensure proper documentation of all leave taken by use of the Kronos time keeping system.

Reports available in Kronos:

  • Time Detail Report
  • Accrual Report
Equipment

Verify the expenditures on statement are what you expected.

Ensure:

  • Amount charged is consistent with order information if needed
  • The correct Expenditure Type was used
  • Those with multiple allocations are correctly allocated
  • If the purchase is near the start or end date of an award, confirm equipment is received in period by review of the packing slip
  • Equipment is properly recorded in SunFlower within 30 Days of receipt

Reports available in ReportMart:

  • FIN_EXP_138_Invoice_Detail_Recon
  • FIN_EXP_148_Purch_Order_Recon
Supplies

Verify the amounts charged are what you expected, and review source documents as needed to investigate unexpected amounts.

Confirm:

  • The expenditures belongs on the PTA
  • The amount charged is accurate
  • The correct Expenditure Type was used

Reports available in ReportMart:

  • FIN_EXP_138_Invoice_Detail_Recon
  • FIN_EXP_148_Purch_Order_Recon
  • FIN_PCARD_187_Transaction_Detail
Tracking Praxair Serial Numbers

Developers have not yet created a report that you can generate regarding Praxair invoices and serial numbers. However, Procurement developed a website that shows everyone's Praxair invoices by month, starting with May 2004 invoices. (prior month information is not available on this site)

Information contained on each spreadsheet includes: Invoice Number, PO Number, Inv Date, Inv Loaded, Total Amt, Rental, Serial Num, CAS Num, UN Num, Delivered, Picked Up, and Status. When you open one of the spreadsheets, orders can be found by selecting "Edit", "Find". Do NOT print the entire spreadsheet as it is very large; you should create your own spreadsheet and copy/paste only your information - then you will have a short, relevant, printable report.
Travel

Verify the amounts charged are what you expected.

Reconcile expenditures to the source documents as needed.

Confirm the correct Expenditure Type was used, considering unallowable codes as needed.

Reports available in ReportMart:

  • FIN_IOU_265_Reimbursement_Trans
  • FIN_IOU_267_Other_Check_MP_Trans
Other Expenses

Verify the amounts charged are what you expected and review source documents as needed to investigate unexpected amounts.

Confirm:

  • The expenditures belongs on the PTA
  • The amount charged is accurate
  • The correct Expenditure Type was used

Reports available in ReportMart:

  • FIN_EXP_138_Invoice_Detail_Recon
  • FIN_EXP_148_Purch_Order_Recon
  • FIN_PCARD_187_Transaction_Detail

Additional Report: For detailed information on telephone services and reports, see https://itservices.stanford.edu/ (you may require additional authority, for example STAR)

Consultant/
Subawards

Verify the amounts charged are what you expected and reconcile expenditures to the invoice submitted.

Confirm:

  • The invoice amount is within budget
  • The c orrect Expenditure Type was charged (especially after the first $25,000)
  • The subrecipient has complied with award terms

Report available in ReportMart:

  • FIN_EXP_138_Invoice_Detail_Recon
  • FIN_EXP_148_Purch_Order_Recon

Additional Information: Check the Subaward Webpage

Fringe/Indirect
Cost/Infrastructure

Ensure the correct rate is being applied (review rate posted in "dept ref" column). Do not calculate the rates only verify the correct rate is being used!

Report available in ReportMart:

  • EXP_105_Burdening_Reconciliation
Revenue

Review posted revenue and compare to expected results.

Reports available in ReportMart:

  • ARSPO_OSR_AR_Hist
  • REV_Monthly_Detail_Report_FTD
  • FIN_OP_100_Operating_Summary_FTD