|Monthly financial reports that are appropriate and accurate|
These reports must:
- Be clear, concise and detailed.
- Identify all sources of revenue and expenditure.
- Provide budget versus actual comparisons.
- Clearly identify trends and special areas of concern.
- Highlight exception items.
|A method for reviewing revenue and expenses at the end of each ledger cycle|
This method must account for the following situations:
- If such a review reveals problems or exceptions, they must be addressed in time to take appropriate action before the next cycle ends.
- If reporting exceptions continue to occur, control procedures must be implemented to correct the situation.
|A monthly sampling of financial transactions|
The sampling must be large enough to ensure:
- The proper Full Accounting Units (FAUs) are being used for posting.
- Adherence to terms, conditions and restrictions imposed by University policy or external funding sources.
- Names appearing on salary and benefit transactions are valid and appropriate.
- Salaries reconcile to time sheet records.
- Other expenditures are appropriate and include adequate supporting documentation.
|For each significant deviation, an examination to determine the cause|
This examination must include:
- Deviations from policies or regulations.
- Deliberate decisions to depart from the budget.
- Transaction errors.
- Abuse of authority.
|A method for taking corrective actions|| This method must include:|
- Revising plans or budgets to reflect changed circumstances.
- Changing or eliminating activities.
- Obtaining additional funding.
- Modifying goals or objectives.
- Correcting transaction errors.
- Altering future budget assumptions.
- Implementing new control procedures.
- Documenting managerial decisions that depart from the budget.
|Documentation of the corrective actions|
This documentation must include:
- Why the variance occurred.
- How the budget was revised.
- What accounts were affected.
- When the actions were taken.
- Who authorized the actions.