The University of Texas-Pan American
 
Comptroller Office
July 31, 2014

 

Accounts Reconciliation

The purpose of the Monthly reconciliation is to identify and correct mistakes in a timely manner. The timely reconciliation of transactions for all University projects and accounts is critical to maintaining the integrity of the University's accounting records. Unusual transactions should be reported promptly to the appropriate Accounting office for feedback and/or correction.

Financial activities associated with projects should be reconciled to the department’s records. This helps ensure that financial transactions recorded in the University’s Oracle E-Business Suite are accurate. By reconciling against supporting documentation, the department gains additional assurance that all financial transactions are appropriate.

All projects/accounts must be reconciled on a regular basis throughout the year, and preferably within 10 days following the official accounting period close.

With the completion of the reconciliation, the Project Manager can place a high reliance factor on the available balance reflected in General Ledger, and can proceed in transacting with confidence as applicable.

Any supporting documentation related to financial transactions must be retained by the department in such a manner as to satisfy local, state, and federal audit requirements, as well as state and federal records retention requirements. The determination as to the extent of support documentation retained is left up to the department’s discretion.

Key examples of financial transactions which require reconciliation are receipts, payroll expenses, encumbrances, etc. Why reconcile project/account financial transactions?

  • To ensure that expenditures which have been charged to the department’s projects were properly approved and charged to the correct project.
  • To ensure that revenues which have been earned/collected by the department have been credited and charged to the correct GL account.
  • To abide with regulations mandated by State Comptroller, UT System, Federal Government, etc.
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