Reconciliation of Banner indexes/organizations

Purpose

A timely review of transactions and reconciliation of each Banner organization is critical to maintaining the integrity of the University’s accounting records and serves as the only way fraud, errors, and omissions may be detected for some transactions. Reconciliations are an essential part of an effective internal control environment, ensuring that:

• The information transmitted to, contained in, and reported from the Banner financial system is accurate, complete and recorded in a timely manner
• The information can be relied upon for making financial and administrative decisions
• Irregularities are quickly detected and reported to the appropriate authorities

Minimum Requirements

Departments are responsible for reviewing their Banner organizations once a month for the prior month’s transactional, encumbrance, and budget activity.

Reconciliations must:

• Be performed monthly for the prior month’s activity
• Be documented via dated signature or via Finance/Research Dashboard certification
• Be certified by two individuals:
  • Reviewer: The Reviewer reviews each transaction to evaluate accuracy and supporting documentation.
  • Approver: The Approver is responsible for verifying the legitimacy, appropriateness, and necessity of transactions posted.
• Ensure that the reported activity is accurate, complete, appropriate, and supported by adequate documentation.

The University system of record is the Banner Finance system and is used for reconciling departmental organizations. University departments are not permitted to establish or operate independent accounting systems without approval by the Senior Vice President for Finance and Administration and the Executive Director of Audit and Compliance Services. For those departments that have an approved independent system, that system can be referenced for supplemental detail in support of departmental reconciliations.

Resources for Index Reconciliation

Reconciliation of index reconciliations can be recorded within the Finance Dashboard or Research Dashboard, which show detailed transactional and encumbrance activity, including Personnel detail. This is the preferred and recommended method for recording the Reconciliation.

Other resources exist to show monthly activity and detail for index certifications:

Monthly Summary Data Reports

• Report FGRBDSC (Organization Budget Status)
• Report FGRODTA (Organization Detail Activity)

Available in ePrint and directly in Banner Administrative Pages

These reports will help you determine if the organization budget is sufficient for the current fiscal year. The Adjusted Budget shown on the report is your expenditure authority for the current year. These reports provide totals, by account, for current month activity, year to date activity, budget reservations (encumbrances) and the available balance (adjusted budget less activity, less encumbrances).

Monthly Transaction Detail Repots

Available in ePrint and directly in Banner Administrative Pages

The report includes all budget, transaction and encumbrance activity, by account, for each month (fiscal period).

• Report FGITRND (Detail Transaction Activity) in Banner Administrative Pages
• Monthly Payroll to Finance Reconciliation in VCU Reporting Center.

Enter the index and fiscal period. (Eg, October is Period 04). Export results by clicking on “Tools,” then “Export.”

This shows what individual’s personnel costs are charged to the index. Located within the Labor Distribution Folder. Fiscal administrators (FAs) who are not also HR Professionals may need to get a copy of the report from their departmental HR Professional. When salary expenses need to be moved to another index (org), departmental HR Professionals and designated Labor Distributors can key labor distribution changes (PHAREDS) in the Banner HR system.

• Purchase Card Monitoring Report available through the VCU Reporting Center
• Internal Service Charges Detail

This report lists all corporate card activity by organization code, department or major budget unit. Any corporate card expenditures that you have not allocated in Works to another account and have posted to account 620002 (Undistributed Charge Card) should be reclassified to other more specific Banner accounts using Banner form FGAJVCM. Please see also VCU’s Corporate Card Procedures.

Internal units provide monthly transaction reports to support charges posted against indexes. I.e., Mail Services, VITA (Virginia Information Technology Agency), VCU Telecommunications, VCU Parking, Event Services and Physical Plant. VCU Telephone bills are available through the VU Telecommunications Departmental Portal. VCU Parking passes are supported by current permits/parking passes requested through the office. Charges for event spaces are supported by estimates provide through Event and Conference Services. Physical Plant charges are supported with current work order requests in Customer Service Quick FM. 

• Any unfamiliar transactions should be researched using Banner Administrative Pages' FOIDOCH or FGIDOCR forms. Encumbrance detail can be viewed on Banner form FGIOENC.
• See further detail on navigating Banner on the Banner Job Aidsweb page.

Index Reconciliation Sample Checklist

This sample checklist can help ensure the reconciliation process addresses the objectives:

• Are there expected transactions which are NOT on the reports? If so, has follow up action been taken?
• Do you see any unexpected transactions? If so, has follow up action been taken?
• Have salaries been charged appropriately? If not, have corrections been initiated through labor distribution?
• Is there adequate supporting documentation on file for transactions whose support are not housed within a University System? (E.G: journal vouchers, cash/check deposits, POS deposits. Support need not be recompiled for transactions whose support is housed in RealSource, Bank of America Works, and ChromeRiver, unless department management prefers this method, or for grant compliance purposes). Documentation must be retained by the department in accordance with guidelines specified by Records Management to satisfy University, state and federal audit requirements, as well as state and federal records retention requirements. 
• Have charges from internal service providers been recorded properly? If not, have corrections been initiated?
• Have all transactions been coded to the correct Banner index/organization? If not, has follow up action been taken?
• Have all transactions been coded to the correct Banner account? If not, has follow up action been taken?
• Is the index/organization headed for a deficit condition? If so, are there actions you need to take?
• Have you removed any encumbrances that were erroneous, canceled, or that need to be manually liquidated?
• Are the transactions:
  • For official University business?
  • In the best interests of the University?
  • In compliance with applicable policies, laws, regulations, rules, contracts, grants, and donor restrictions?
  • Within the available resources of the department?
  • Directly beneficial to the unit (department) being charged?
  • Reasonable? Meaning that the quantity and quality of goods or services being purchased is sufficient to meet the University's need without exceeding it.
  • Free of actual or perceived conflict of interest?