Reconcile Expenditures

Reconciliation is the process of comparing the entries in the eCertification System to supporting documentation and resolving any discrepancies. Most supporting documentation can be found by drilling down on specific expenditure in the system. Reconciling accounts on a regular basis, after month-end close, will help you to manage your sponsored funds to ensure that expenditures and revenues are within appropriate limits and guidelines. Reconciliation is an internal mechanism that ensures that:

• entries and balances are accurate and valid

• records are accurately recorded

• unauthorized changes/charges did not occur

• discrepancies are resolved in a timely fashion

Steps to Reconcile

1. Review expenditures that you don't recognize or appear unusual.

2. Compare transactions to source documents as needed.

3. Review infrequent transactions.

4. Investigate and resolve differences.

Summary of Key Components of Reconciliation

The reconciliation process may be more or less detailed than the process listed below depending on many factors, such as upfront controls, experience, knowledge, the type of transaction, and the associated risk. Confirm for all expenditures that:

• the expenditures belong on the PTA

• the amount charged is accurate

• the correct Expenditure Type was used

Salary    

You must confirm:

• that the amount charged is the same as the percentage incurred

• for hourly employee, hours are correct if amounts charged appear unusual 

• the correct expenditure type was used (based on JCC codes)

• the earning codes (for reconciliation)

Benefits

Ensure proper documentation of all vacation/sick leave taken by use of the AXESS time keeping system.

Equipment 

Verify the expenditures on statement are what you expected. 

Ensure that:

• the amount charged is consistent with order information

• the correct expenditure type was used

• those with multiple allocations are correctly allocated and the rationale for allocation is documented

• equipment is received in period by reviewing the packing slip-if the purchase is near the start or end date of an award

• equipment is properly recorded in Sunflower within 30 days of receipt

Supplies

Verify the amounts charged are what you expected, and review source documents as needed to investigate unexpected amounts. 

Confirm that:

• the expenditures belong on the PTA

• the amount charged is accurate

• the correct expenditure type was used

Travel

Verify the amounts charged are what you expected. Verify the travel is allowable on the project. Reconcile expenditures to the source documents as needed. Confirm the correct expenditure type was used, considering unallowable codes as needed.

Other Expenses

Verify the amounts charged are what you expected, and review source documents as needed to investigate unexpected amounts.

Consultant/Subawards  

Verify the amounts charged are what you expected and reconcile expenditures to the invoice submitted. Confirm that:

• the invoice amount is within budget

• the correct expenditure type was charged (especially after the first $25,000 of a subaward)

• the subrecipient has complied with award terms

Fringe/Indirect Cost/Infrastructure Rates

Ensure the correct rate is being applied. Do not calculate the rates only verify the correct rate is being used.