Reconciling at Mason

A reconciliation is a systematic review of Banner financial activity to verify that all charges and credits are accurate and appropriate, usually comparing to source documentation to confirm accuracy of postings and identify expected transactions that have not yet occurred. Additional detail may be found on the Reconciliation Procedures document.

Source Documents

These documents will serve as a reference point when individuals reconcile department financial information. Departments should maintain a record of any pending charges to an org or fund.

Source documents may include

  • Bills from internal vendors (i.e., Print Services receipts, Telecom Administration charges, Facilities work orders).
  • eVA purchase orders.
  • Travel vouchers.
  • P-Card receipts.
  • Approval forms.
  • Payment requests
  • Honorarium payment requests.
  • Funding change forms.
  • Journal vouchers (JVs).
  • Other types of documentation that result in financial charges to a fund or org.

Source documents must be retained and available for review. Retention period is ten years for sponsored research projects and three years for all other orgs and funds.

 

Reconciliation Timeline

George Mason University Policy 2114 requires that all organizations (orgs) and funds be reconciled in a timely manner on a monthly or bi-monthly basis (period). Monthly reconciliation is strongly encouraged.

Reconciliations must be prepared, approved and certified not later than two months after the last day of the reconciled month/period. For example, financial transactions for the month/period ended July 31 must be reconciled and approved by September 30. Earlier reconciliation and approval is encouraged.

 

Reconciliation Stages

The below are suggested reconciliation stages. Department representatives may use the suggested process and worksheets OR another reconciliation process provided a full and systematic verification and reconciliation is completed in a timely manner on a monthly or bi-monthly basis (period).

Salary Reconciliation – Beginning of Fiscal Year

It is recommended that reconcilers follow the process below at the beginning of the fiscal year. This is the suggested process.

  • Go to MicroStrategy and log in.
  • Open the MicroStrategy folder titled “Administrative”.
  • ,li>Click on “Shared Reports.”

  • Click the “Reconciliation” folder.
  • Select the “Roster for Reconciliation.”
  • Select the salary type (eg. Permanent Roster – Salaried, Temporary Roster, Wage Roster). You may need to make multiple selections.
  • Confirm that all employees listed are currently employed by the department. If the reconciler does not personally know all individuals on staff, he/she should seek assistance from a supervisor.
  • Enter salary data for all administrative faculty, faculty, classified staff and wage employees on the relevant tab in the Salary Reconciliation workbook.
  • Save the workbook for use with monthly or bi-monthly (period) labor reconciliation. (note: use of G# rather than name is encouraged).
  • Use the Salary Reconciliation workbook to record the Labor Detail of each employee as part of the monthly or bi-monthly (period).

Monthly or Bi-monthly (period) Reconciliation

Follow the steps for the appropriate reconciliation (labor, direct expenditure, revenue or sponsored project) located in the sections below to ensure accuracy of transactions entered.

Note any discrepancies on the reconciliation spreadsheet. Discrepancies should be immediately investigated and reconciling items should generally be resolved no later than three months from the last day of the reconciled month/period. Corrections of labor charges are usually completed via a Funding Change form. Corrections of direct expenditures are usually accomplished with a Journal Voucher (JV).

End of Fiscal Year Reconciliation

Fiscal year-end deadlines are posted each February on the Fiscal Services home page. The fiscal year-end memo is listed under the News section for Purchasing and Accounts Payable. Verify that all transactions are accurate and any discrepancies noted throughout the year have been resolved.

Reconcile Labor Accounts

Follow the steps below at the time of reconciliation (monthly or bi-monthly (period)/recommended monthly).

  1. Go to Microstrategy
  2. Login with your netID and password
  3. Select the “Administrative” file, then “Shared Reports”
  4. Select “Reconciliation” folder then “Reconciliation Welcome Page”
  5. Choose “Reconciliation Expense” application OR choose “Reconciliation Revenue and
    Expense” if reconciling unit revenue
  6. The page will automatically default to the current fiscal year and last closed month
  7. To change the timeframe click on the “Re-prompt” icon from the top menu bar
  8. Click on the Org that you are reconciling. This will bring up a new page titled Labor and DE Drill Document with internal tabs
  9. Choose the “Labor Detail” internal tab to view all Labor for the specified timeframe
  10. Confirm that all employees listed with current activity are actively employed by the
    department Note: If the reconciler does not personally know all individuals on staff, he/she should seek assistance from a supervisor. If no staffing changes occur and amounts remain constant, charges may be quickly reviewed.
  11. Monitor wage charges ensuring that individuals listed worked for the unit during the
    appropriate time period. Confirm that there is sustainable funding for wage employees
    until the end of the fiscal year
  12. Verification of each wage payment is not required since it is confirmed in the payroll
    approval process, but any unusual charges should be researched further
  13. Document any discrepancies, research and report to Human Resources immediately if
    error is identified
  14. The reconciler should confirm:
    • The amounts posted for faculty special payment (61130) with departmental
      records
    • That each Funding Change form has been processed as it was submitted
    • Verify Annual Leave Balances (613xx) For example: The reconciler should confirm that an Annual Leave Balance payment was made only to a department/unit employee who was, but is no longer, employed by Mason.

Reconcile Direct Expenditures

Follow the steps below at the time of reconciliation (monthly or bi-monthly (period)/recommended monthly).

  1. Go to Microstrategy
  2. Login with your netID and password
  3. Select the “Administrative” file, then “Shared Reports”
  4. Select “Reconciliation” folder then “Reconciliation Welcome Page”
  5. Choose the “Reconciliation Expense” application OR choose “Reconciliation Revenue
    and Expense” if reconciling unit revenue
  6. The page will automatically default to the current fiscal year and last closed month
  7. To change the timeframe click on the “Re-prompt” icon from the top menu bar
  8. Click on the Org that you are reconciling. This will bring up a new page titled Labor and DE Drill Document with internal tabs
  9. Choose the “Direct Exp Detail” tab
  10. The shaded column titled Actual Expense Between XXX and XXX can be used to verify
    source documents for the selected timeframe
  11. The entire report may be download to Excel or PDF and further manipulated
  12. Use the source document or other records to verify all charges to a fund or org
  13. Document any discrepancies and resolve within 30 days
  14. Click here for a list of Expenditure Account Codes

Reconcile Revenue Accounts

Revenue transactions are available in the MicroStrategy Reconciliation Revenue and Expense Report. Units collecting revenue should have an existing system to verify revenue transactions before the revenue feed is entered in Banner Finance, such as TouchNet Marketplace.

In some cases, the reconciler will match source documents such as cash receipt forms, daily credit card sales reports and revenue refund forms to Banner finance activity. You may view revenue from any of the Banner Finance reports, Banner Self-Service and e-Print, to include MicroStrategy’s Reconciliation Revenue and Expense report.

Reconcile Sponsored Research Projects

Specific instructions on reconciling grant related activity may be found on the Office of Sponsored Programs (OSP) webpage under Research Reports or PI Reports. Training is also available through OSP.

Certify the Reconciliation

Personnel Responsible for Certifying the Reconciliation

The Reconciler

An individual who performs the reconciliation and prepares documentation for approval. Reconcilers must certify that all charges and credits on the fund or organization have been reviewed and are supported by appropriate documentation.

The Approver

An approver is an individual who has the knowledge to approve that the work performed by the reconciler is adequate and the charges and credits to the fund or organization are reasonable. The approver is usually the employee who is responsible for expenditures or credits on the fund or organization. Approvers are required to review the reconciliation(s) and must certify that the work performed
by the reconciler is adequate and that the charges and credits to the fund or organization are reasonable.

The Principle Investigator (PI)

All PIs are required to ensure that their Banner funds are reconciled. PIs are required to review the reconciliation(s) and must certify that the work performed by the reconciler is adequate and that the charges and credits to the fund or organization are reasonable. The PIs’ review should include analysis of reconciling items and the appropriateness of the follow-up. The PI is further required to ensure that expenditures are made for the intended purpose of the grant or contract in accordance with sponsor requirements as well as university policies and procedures and to subsequently certify the financial reports on his/her sponsored funds.

In all situations, the PI must sign and date the reconciliation to certify that all charges and credits are allowable, allocable and reasonable. The PI may not delegate this responsibility. Electronic certification is encouraged. These certified records should be retained in the department or college and be available for auditors’ review. A sample reconciliation certification document follows, as well as on the Fiscal Services website.
Sample Reconciliation Certification