Patty Duvlea, Financial Services Teri Langton, OGCA UAF Journal Voucher Training May 2008

Journal Entry - Remember accounting class n The basic accounting unit n When all else fails n Should be used only for adjusting, accrual, and closing entries n A negative measure of the quality and internal control of the accounting system indicative of problems which require additional action n A necessary evil and savior

UA Procedure - JV Initial Record n Departmental purchases from UA –Departments –Auxiliary –Recharge centers n Electronic feed by units –Large volume –Recurring transactions

n Examples of Initial Record JV –Telephone –Photocopy usage –Ship days –Mass spec –Physical plant and GI work orders –Tuition charges –Federal Work-study backcharge to depts n Revenue credit Expense debit UA Procedure - JV Initial Record

The Rest of the Story n Something has already gone wrong –Delayed fund setup –Late reconciliation of Pro Card use –Data entry error –Cost over run –Disallowed cost –Default coding inaccurate n May be correction of account code n May be same account code with org/fund change

The Worst n Correcting previous JV –Carelessness, inadequate training, transpositions, pro-card, travel credit card recon not done n _____ did not get corrected in time –Late payroll reconciliation –Delayed posting of recharge items n Charged to incorrect project –Wrong fund possibly wrong agency

Labor n Only between restricted funds (prior year only, use JPAY rule code) n Write off to unrestricted fund using over-run account code if labor is an allowable cost n If labor is an unallowable cost, must be moved by disallowed account code. Move by sum of labor & benefits and then F&A must be shown also n Submit proposed JV for review and approval with explanation

Justification and supporting documentation (restricted funds only) n The older the transfer the clearer the justification must be –better and more complete the documentation must be n Signature of Principle Investigator –On source documents JV or both (see exceptions) n Contemporary documents in support of transfer

Restricted Funds (from 2CFR220-OMB Circular A21) Are the charges: n Allowable on proposed project? n Applicable to the project? n Reasonable charge to the project? n Appropriate to restricted fund? Further: n Is it Principle Investigator approved? n Is the project still open? n Is there adequate supporting documentation?

Once an Indirect Cost always an indirect cost n Cost function determines whether direct or indirect (grant or unrestricted)

Signatures on a journal voucher n Preparer (physical preparation of JV) n PI required for JV’s with 60 day cost transfer memo n Approval (fiscal officer) n OGCA (is it allowable to the proposed project-required for JV’s with 60 day cost transfer memo) n Financial Services

Prior Year n No credit to current year (unrestricted) n Generally will be delay during first quarter of fiscal year n Statewide approval for prior year labor between F1 & F2

JV will be returned to Fiscal Officer n No signature n Inadequate backup n Prepared incorrectly n Coordinating department signature n Department responsibility to resubmit

Resources n counting-manual/ n es es n n culars/index.html

Step by Step n Field instructions for journal voucher preparation n On JV form n If a copy of the JV is returned please review

Flow Chart for Journal Vouchers n dex.html dex.html