Monitoring & Evaluating Financial Data

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.

  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.

 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.

This examination must include:

• Deviations from policies or regulations.
• Deliberate decisions to depart from the budget.
• Transaction errors.
• Abuse of authority.

• 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.

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.