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,
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, sign and date the ledger. Return the ledger to the staff for retention.