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Business and Financial Policies and Procedures

Monitor a Self-Supporting Fund

Before You Begin

Financial activity recorded in a self-supporting fund must be monitored to ensure the Banner record accurately reflects the activity's financial position, and ensure that its financial position is sound. Self-supporting funds financial activity is included in the University's annual financial statements and is subject to annual external audit.

Failure to adequately monitor and reconcile your unit's self-supporting funds can result in erroneous financial reports which misstate your unit's and the University's financial position. Therefore, units must regularly, and at fiscal year-end:

  • Reconcile operating ledger details to fund balances.
  • Identify transactions assigned to rogue (misclassified segments) Banner C-FOAPAL accounting strings.
  • Verify that transactions are properly classified and recorded at correct amounts.
  • Review and modify, or eliminate encumbrances.
  • Assess cash and fund balance levels to identify and reduce risk related to deficits or inappropriate surplus balances.

Performing these tasks monthly makes it easier because you have less data to review at one time. Errors can be discovered and corrected while they are current, which results in more accurate financial information and allows you to answer questions regarding transactions more easily.

Units must establish proper segregation of reconciliation duties as an internal control. Consult the Office of Internal Audits Website.

To understand more about this process, complete these two training courses:

Begin

To monitor a self-supporting fund, you must complete the following procedures:
    Reconcile General Ledger (GL) and Operating Ledger (OL) Balances
    Identify and Correct Rogue (Misclassified) C-FOAPAL Transactions
    Reconcile Operating Ledger Transactions to Source Documents
    Reconcile Encumbrance Balances
    Address a Self-Supporting Fund Deficit
    Address a Self-Supporting Fund Surplus
    Avoid a Build-up of Excess Cash Balances

Additional Resources

Avoiding Problems with Your Self-Supporting Fund
Understanding University Financial Statements & the Reconciliation Process (GL 104) 
Introduction to Self-Supporting Funds (GL 105) 
Office of University Audits Website
Debits and Credits, Understanding
Guide to Finding Your "Accounting String" Balance (Portrait)

Last Updated: January 1, 2013 | Approved: Senior Associate Vice President for Business and Finance | Effective: January 2013

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