To inform all University of Kentucky departments of the responsibilities, policies, and procedures related to the reconciliation of monthly ledgers. Verification of financial transactions ensures the accuracy and integrity of financial reporting records and protects University assets, serving as a key element of the University’s system of internal controls. This policy requires that monthly reconciliations are performed in a timely manner to ensure financial information accurately reflects actual activity. A timely and consistent review of account activity allows the unit to know the balances of its accounts at all times and provides information to meet reporting requirements. A proper reconciliation will ensure that unauthorized changes have not occurred to transactions during the processing. Refer to E-1-3 Fiscal Roles and Responsibilities and E-1-4 Internal Control for additional information.
Monthly reconciliations and management reviews are a key fiscal management control that ensures transactions are accurate, allowable and complete. The reconciliation process is essential to your unit’s and the University’s internal controls and integrity. Proper and timely reconciliation prevents and detects fraud and improves the accuracy of financial information. All financial activity must be monitored to ensure that all revenues earned/collected are credited to the correct account and to ensure that expenditures have a business purpose, are for the correct amount, are allowable, properly approved, and charged to the correct cost object.
Below are general guidelines for the reconciliation process. Each unit must have written procedures that document processes specific to the unit. Also, see E-1-3 Fiscal Roles and Responsibilities Section V.
Once the fiscal period has closed, the reconciler(s) should: