Presentation on theme: "Monthly Reconciliation. Why do we need to reconcile? NIH policy requires it: see Grants Policy Statement on financial management standards (section IIA,"— Presentation transcript:
Why do we need to reconcile? NIH policy requires it: see Grants Policy Statement on financial management standards (section IIA, page 98). Allows you to create accurate financial statements so PIs can make informed decisions about their research. Protect yourself, the PI, the Dept & University from audit disallowances. Timely cost transfers/change orders/X-outs = PI has time to spend $ on other project related expenses, instead if sending $ back to agency. If cost transfers are processed in a timely manner (i.e. w/i 120 days): you do not need exceptional approval from EFM.
Step #1 - Review Object Codes: FS0100 Sub-Object Summary Tool - FS0100 Detail General Ledger, Expenditures: Sub-Object Summary Are all Object Codes allowable & applicable on this grant?
Step #2 - Review Non-Payroll Expense: Current Month Transactions (FS0100) or Closed (QDB) Are all expenses allowable & applicable to this grant according to agency policy & approved budget? Pay close attention to Recharge entries, as Recharge IDs can become blank checks if appropriate controls are not in place.
Step #3 -Review Payroll: Payroll Ledger (PPP5302) or PPP FAU Sum by Org (QDB) Are all individuals actually working on the grant? Is the percent effort appropriate according to actual effort worked & budgeted? If NIH, are all pay rates at or below the cap?
TOOL - SOM QDB/FPM
Step #4 - Review Remaining Encumbrances (QDB) Are all encumbrances valid, or does the PO need to be X’d out?
Step #5 -Run Warning & Unallowable Object Code Report (QDB) Use this tool as a double check to your reconciliation of the Sub-Object Summary ledger. If allowable, be prepared to provide additional justification and documentation to support allowability.
Step #6 -Review Linked Accounts (QDB Summary of Funds) Are any linked account in overdraft? Are funds being spent according to budget, agency policies, and how your PI intended?
Step #7 - Run F&A Reconciliation Link Report (QDB) Is there a VARIANCE listed at the bottom of the report? If the variance is POSITIVE, the fund was not charged enough 9H, and needs to be debited. If the variance is NEGATIVE, the fund was charged too much 9H, and is due a credit. EFM will have to JOURNAL the VARIANCE in order to debit/credit the 9H pool.
Step #8 -Check for 9H Adjusted Needed on Summary-By-Sub Report (QDB) Run the report using the FULL ACCOUNTING UNIT (FAU). You will not get correct results if you enter an “*” in the Account or Costcenter. Is there an amount other than zero listed under 9H TOF ADJ NEEDED? Understand WHY before processing TOF. Examples: Was unbudgeted equipment, GSR fees, patient care purchased? Did subawards get Object Coded correctly to reflect 9H on first $25k?
TOOL - ORA Portal
Step #9 - Run Salary Cap Report (for applicable funds) Choose your Dept, Salary Cap amount & time period, and the report will find any salaries rates paid above the Cap amount chosen for funds that are flagged in the FS system as having a Salary Cap.
TOOL - PI Portal
Step #10 - Review Payroll on Linked Accounts You will only be able to view the name of the individual paid and the total salary charged. You will not be able to view pay rates or percent paid. Are all individuals actually working on the grant?
Don’t forget your PI! Creating monthly financial statements, meeting with your PI, and providing the reports is one of the most important tools we can use to help us reconcile the expenses! The PI has the best knowledge available to determine if expenses benefitted the grant charged or not.
Step #11 - Action on Findings Non-Salary Unallowables: process NPEARs to move expense to appropriate FAU, or change Sub or Object Code if necessary. Salary Unallowables: update EDB, process necessary UPAYs and/or Rx/Lx's. Close invalid POs via BruinBuy, Purchasing & Accounting to release the money back into the FAU. Rerun financial statements to reflect changes and new projections.