Guide to Reconciliation
The purpose of this manual is to provide best practice suggestions to help guide you through the monthly financial reconciliation and review process. The first three sections provide background information to set a foundation of understanding about your reconciliations and Monthly Financial Reports (also called departmental ledgers). The Departmental Ledgers reconciliation and review is a key fiscal management control ensuring University financial transactions are accurate, allowable and complete.
It is important to understand the information below before you begin the reconciliation and review process. The later sections provide a more detailed guide on suggested steps to complete the monthly reconciliation and review, and offer additional resources that may be helpful to you throughout this process.
Note: The guide is not meant to be prescriptive in nature or dictate a process that must be followed by every department. The University is made up of a variety of departments and one size does not fit all. Instead, the guide is meant to provide best practice suggestions, tips, and reminders – especially for those who are new at the reconciliation and review process. Ultimately, the Vice President, Dean, Director, or Department Head is accountable for the department’s financial activities and will decide on the reconciliation and review process that is best for each department.
If you are responsible for completing reconciliations, please make sure you are subscribed to the UFACC listserv, which alerts subscribers when the Monthly Financial Reports are available. Click here: http://www.fa.ufl.edu/departments/general-accounting/staying-informed/ to find out how to be added to this listserv.
Reconciliations are required monthly, and best practice is to complete the reconciliation as soon as the reports for that month are available. This practice provides the opportunity to correct errors as quickly as possible.
The reconciliation process may feel tedious but is essential to your department and the University’s internal controls and integrity. Proper and timely reconciliation prevents and detects fraud, assists in assigning employee accountability and improves the accuracy of financial information.
- Quick Guide to Obtaining the Monthly Reports for Tier 3
- Quick Guide to Spot-Checking the Transaction Detail for Tier 3
- Quick Guide to Spot-Checking Payroll for Tier 3
- Checklist – Payroll Detail Spot-Check for Tier 3
- Checklist – Transaction Detail Spot-Check for Tier 3
- Tier 1 Reconciliation Checklist