1. Reconciliation Overview
Deb Cundiff
Jennifer Young
McCormick School of Engineering

2. Reconciliation – What you'll learn today:
Why do we do it?
What is it?
What is your role?
Process and tools

3. Reconciliation - When
A best practice is to reconcile all of your chart strings monthly, but no less than quarterly.
2017 MAC Meeting

4. Reconciliation - Why Review: Allowable Allocable Right Reasonable
Status of Charges

5. Reconciliation - Why Validate balances/monitor deficits
Reduce number of 90-day journals
Keep everyone informed
Monitor spending rate
Audit protection

6. REQUIRED BY NORTHWESTERN AND SPONSORS!

7. Reconciliation – What
Official requirements by Office for Research post-award administration of research grants:
Review expenses for allowability, allocability, consistency, and reasonableness of costs and work with PI to remove inappropriate or non-compliant expenses 
Process, manage and monitor all financial transactions in the research portfolio, including sponsor and cost share funds as appropriate 
Reconcile accounts, provide timely and accurate financial information and reports to PI, and schedule meetings to review as necessary

8. Reconciliation – What & What Not
Reconciliation vs. Projection
Reconciliation always looks backward, actual expenses that have posted
Projections – look forward at anticipated expenses that have not already occurred.

9. Reconciliation - What The Four R's: RRRR, matey!
Recognizable – we recognize that
Right – It was the right thing to do
Reasonable – It was done correctly
Reviewed – It was complete
RRRR, matey!

10. Reconciliation – Roles
Department Staff:
Run and review budget statements
Check available balances
Correct errors
Address open encumbrances
Send statements to the PI
(optional - also send spreadsheets)
Maintain records
Chart string manager/PI:
Review budget statements and spreadsheets
Ensure funds are spent appropriately
Respond to questions and identify concerns
Meet with staff to discuss as needed
Provide direction for future expenses

11. Reconciliation – Process and Tools
Run and review budget statements in Cognos: GM045
*Use this to check available balances on sponsored accounts.

12. Reconciliation – Process and Tools
Run and review budget statements in Cognos: GL008
*Use this to review expenses and correct errors (you may need some input from the chart string manager).
Can use GM096 instead of GL008 if you prefer

13. Reconciliation – Process and Tools
Run and review budget statements in Cognos:
GM096 (optional)
Run the GM096, transfer info to workbook to review in depth

14. Reconciliation – Process and Tools
Run and review budget statements in Cognos: SC016
*Use this to address open encumbrances (you can also use the GL008)

15. Reconciliation – Process and Tools
Run and review budget statements in Cognos: PED (Payroll Expense Distribution)

16. Reconciliation – Process and Tools
Check available balances
Correct errors
Address open encumbrances
Send statements and reconciliation/projections
Save them as a record

17. Additional Information – Troubleshooting
Common pitfalls:
Central charges/upload journals (bypass approval workflow)
Last minute purchases
Open encumbrances
Subaward management
Lack of communication
Human error

18. Final Thoughts
There are several different tools and processes you can use to reconcile your accounts. The important thing is that you have a process in place and you reconcile on a regular basis

19. Questions?