Reconciliations are critical controls that ensure accuracy and completeness of transactions. They are particularly important where stand-alone subsystems exist. For example, a subsystem used to process revenue transactions should be reconciled to deposit slip totals and Financial Accounting System input documents to ensure that cash received is
(1) properly deposited in University bank accounts
(2) recorded accurately in the financial records
| Risks: |
- Problems that result from daily processing are not managed or responded to in a timely manner.
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- Additional resources and time will be spent if data errors are not corrected in a timely manner.
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- Incorrect data may be erroneously reported.
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- Recognizing revenue/expenses in the wrong period might distort financial data.
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| Controls: |
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- Departmental system reports should be reviewed for accuracy and errors should be resolved within established timeframes.
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- PeopleSoft system accounts should be properly reconciled to detail support, and reconciling items should be appropriately cleared.
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