Monitoring & Evaluating Financial Data

All systems for monitoring and evaluating financial data must include the following items:
 
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.