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Business and Financial Policies and Procedures

Reconcile Operating Ledger Transactions to Source Documents

Before You Begin

You will not be able to reconcile accurately unless you keep all your source documents (for example, receipts, disbursements, invoices, supporting documentation for journal vouchers). You will also need to organize these documents so you can find them easily should questions arise. Consult University Accounting and Financial Reporting (UAFR) if you need help developing a filing system that meets your unique needs.

Regularly reconciling transactions to your source documentation provides these benefits:

  • Correctly records revenue earned.
  • Charges expenses from vendors and other University units accurately.
  • Detects inappropriate transactions, such as personal, other unallowable, duplicate, or otherwise erroneous purchases.

High volume units may choose to select transactions for reconciliation on the basis of their dollar amount (materiality), likelihood of error (risk), and their past experience.

Begin

To reconcile operating ledger transactions to source documents:

  1. Retain documentation for each month's revenue, expense, and transfer transactions that post to the self-supporting fund. Obtain missing documentation from the transaction originator.
  2. Open the Revenue/Expense/Transfer Transactions report in View Direct.
  3. Compare operating ledger transactions in the statement with their corresponding source documents to verify that:
  • Documents and statement amounts agree.
  • The transaction description is appropriate.
  • The transaction was posted to the correct chart, fund, organization, account, and program codes. 
  1. Discuss and resolve discrepancies and/or questions with the source document originator.
  2. Document discrepancies, questions, and resolutions for future reference.
  3. Post corrections in Banner. 
  4. Document that:
  • Each transaction was reviewed, verified, and corrected.
  • Reconciliation was completed (for example, with initials of the reconciler and date reconciled).
  • Reconciliation received supervisory review (for example, with initials of the reviewer and date reviewed).
  1. File the completed reconciliation and related documentation in your unit for future reference, such as reconciliations, audit reviews, and follow-up on transactions to confirm they were corrected.

Related Policies and Procedures

Monitor a Self-Supporting Fund
Identify and Correct Rogue (Misclassified) C-FOAPAL Transactions
Section 10: Reconcile Cash Receipts Daily   
Section 10: Reconcile Cash Receipts Monthly

Additional Resources

Avoiding Problems with Your Self-Supporting Fund
Section 5: Policy for Managing Receivables
JV Feeder Document Prefixes
JV Rule Codes

Last Updated: March 1, 2016 | Approved: Senior Associate Vice President for Business and Finance | Effective: January 2013

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