Reconciliation Best Practices

The following are some examples of possible step-by-steps for reconciliation using MyFinancial.desktop. These examples are not required procedures. They may, however, be used as a resource for departments in development of reconciliation practices.

1. Review all electronic and paper source documentation in the month that transactions occur. File necessary source documents for each budget number (Keeping in mind that MyFD application will be the official copy for expense transfers processed online beginning mid-2008).
2. Monitor MyFinancial.desktop homepage or subscribe to newsletter (recommended) for month close notification.
3. After month close, log into MyFD and review the Transaction Summary report for budget to be reconciled.
4. Match each transaction on the Transaction Summary report to its corresponding source document and support and verify that it is allowable and that the quantities and amounts are correct.
5. Investigate and resolve any discrepancies as necessary.
6. Continue to retain each source document in accordance with the UW Retention Schedule (Keeping in mind that MyFD application is official copy for expense transfers processed online beginning mid-2008).
7. When finished, document for your records that reconciliation for each budget was completed for that month.

In addition to the steps above, the Grants Information Memorandum 2 states that the Principal Investigator will supervise expenditure of grant and contract funds to, among other responsibilities, assure that funds are used only for purposes directly related to the activity supported and that expenditures are consistent with all special terms, conditions, and/or limitations that apply to expenditures under the particular grant or contract. This is in compliance with federal regulations which identify the Principal investigator/Project Director (PI/PD)as the individual, designated by the recipient (or grantee), as responsible for the scientific, technical, or programmatic aspects of the grant and for day-to-day management of the project or program. The PI/PD is a member of the recipient team responsible for ensuring compliance with the financial and administrative aspects of the award.

Principal investigators may satisfy this requirement by reviewing a fiscal report for reasonableness and to detect and, if necessary, correct errors. A signed and dated report can help provide evidence that the PI has reviewed the expenditures for appropriateness. Examples of fiscal reports include:

• MyFinancial.desktop Transaction Summary Report
• UW Budget Activity Report
• Departmental report of expenditures that includes transaction detail information such as object codes, reference numbers, etc.

Suggestions for ways in which department staff can support PIs include:

• Provide assistance as needed in interpreting financial data or reports;
• Send periodic emails notifying PIs that fiscal reports are ready and available for them to review.