The second important control in overseeing the department’s financial records is the review and approval of the reconciled ledgers by an authorized approver. Just as reviewing a personal bank statement is a wise practice for ensuring the accuracy of transactions listed on the statement, management’s review of the reconciled ledgers is an equally prudent business practice.
Review of the ledgers by an authorized approver for the department’s cost center/WBS element(s) ensures oversight of all department funds. Not all transactions are configured to be processed through IRIS workflow; therefore, such a review helps ensure all financial transactions are appropriate, accurately described and properly recorded. This review also provides management with information about the status of budgets under their control.
A reviewer makes sure the ledger in review has been reconciled appropriately. Click to view a properly reconciled ledger,
ZFM_UT_Ledger: Restricted Unrestricted
ZDept_Ledger: Restricted Unrestricted
Policy states approvers are to review ledgers to indicate that there are no unauthorized transactions. As the approver, consider the following when reviewing the ledger:
- According to the department’s budget, has a cost center or WBS element been overspent? If so, why?
- Do the transactions appear appropriate for departmental or university business?
- Are there any suspicious-looking transactions?
- Does it appear the ledgers have been reconciled?
- Has the reconciler explained any unrecognized transactions?
Once the review is complete, document the approval by using one of the following methods:
- An initialed and dated hard copy of the ledgers.
- A sign-off form, including date and title, attached to the ledgers.
- An electronic log for ledgers with no activity.
- Approvals must be completed no longer than 30 days after ledgers are reconciled.
Return the ledger to the staff for retention.
Utilization of the ELR tool for ledger reconciliation also permits electronic review, approval and storage of the ledger. No need to manually sign and file approved ledger.