Reconciling the BAR (Budget Activity Report)

The term "reconciling the BAR" is a misnomer. To reconcile means there is a difference that needs to be discovered and resolved. We are not looking for a difference to resolve, but instead a matching of source documents against a report that contains a listing of selected data from source documents. Nonetheless, because the term is so commonly used around our campus, we will continue to refer to the process as "reconciling the BAR"!!

BARs (and BSRs) are mailed to campus departments from Computing & Communications. They are sent to the mail box related to the budget number in the FAS record and usually arrive in departments around the 10th of each month.

Source documents arrive in many ways, each depending on the type of source document and its origin. Source documents are not always sent to the mail box linked to the budget number. Unit staff should be alerted to forward source documents to the person who is responsible for reconciling BARs.

There are several steps that need to be taken in order to reconcile a BAR. A recommended procedure is outlined below. But, it needs to be stated that different methods work better for some people and whatever works best for you is the method you should use as long as every document/transaction is accounted for. Whatever method you choose to use, it is imperative that you have a neat and well organized system.

Recommended Procedure for Reconciling the monthly BAR

1. As each source document arrives, use a highlighter (or circle with a pencil) to accent the following data elements:
   • Document Number
   • Document Date
   • Budget Number
   • Object Code(s) (Note: it is sometimes missing!)
   • Amount

2. Place documents in manila folders or file drawer folders by budget number with the documents that have been partially paid or remain encumbered from previous BARs. These files are your unpaid or outstanding documents files.
   • Retain source documents first by budget number, and second in either document number order or document type order, whichever works best for you, depending on the volume. If you are dealing with a high volume, document type and descending document number within document type usually works best.
   • Attach all Rapid Invoice Process (RIP) copies of invoices, invoice vouchers, receiving reports, and packing slips to the respective requisitions.

3. When the BAR arrives, use your outstanding documents file to begin the reconciliation by placing a check mark on the BAR next to the transaction amount for each document in your folder. The check mark indicates you have the source document on file. Verify that the data elements (see #1 above) are the same on the BAR.
   • On each source document that has "cleared the BAR" (appeared as a transaction), post the BAR date (e.g., "BAR 2'97") in a consistent location on the document itself (e.g., lower right corner).

4. Salary transactions should be checked off and noted on the reverse side of the salary PAF for each person unless you are very familiar with the names and salary amounts and do not need a source document to assure accuracy. A word of caution: salary overpayments do occur, so be certain each line item for salaries is correct.

5. For requisitions with partial payments, post the object code, amount and BAR date on the req. Requisitions that remain encumbered, or are not fully paid, should be returned to the outstanding documents file. However, if the purchase situation has changed and the requisition needs to be liquidated - in that event, submit a Status/Action form but retain the document in your outstanding documents file until it is liquidated on the BAR.

6. Go back through the BAR and create a temporary "dummy document" for each transaction amount that is not checked off. A sample "dummy document" can be found on page 5-13. Place a 'dd' next to the transaction amount on the BAR indicating that you prepared a dummy document. If you use the dummy document system, it may be helpful to use them on bright colored paper so they are easily recognizable. (If you prefer, a list of missing documents can be used instead of dummy documents.)
   • Use the temporary dummy document to maintain a record of the attempts you make to secure the original document. Retain it as a placeholder in your outstanding documents file for the budget, until the original document arrives. It never gets filed into your paid documents file.

   Once you have received the original source document, you should:

   • Match it up with the dummy document, then discard the dummy document into your recycle bin,
   • Note the BAR date in the lower right corner,
   • Go back to the BAR, cross out the 'dd' and place a check mark next to the amount. This indicates you now have the source document on file.

7. When all documents are checked off for an object code, check off the 'T' and '*' amount lines.

8. File the documents that have cleared the BAR into a different file paid documents file or cleared BAR separate from the outstanding documents file). Again, these documents should be retained by budget number, then by document type and by document number within document type, or whatever works best for you. These documents are now considered inactive and should only be needed in case of audit or if questioned internally.
   • Retain inactive documents according to the retention schedule for your unit.

9. Before documents are filed away in the paid documents file, be sure the expenditure is an authorized one. Just because it appears on your BAR doesn't necessarily mean that the person responsible for the budget authorized it.

10. You should have the PI or individual responsible for this budget indicates that he/she agrees with the expenditures on the BAR. An example of a stamp that can be used on individual documents and/or the BAR follows:

Grant and Contract Accounting
A Department of Financial Management
gcaques@u.washington.edu
Modified: July 24, 2002