To ensure accurate financial reporting for the University of Illinois System’s audited financial statements and to help safeguard system resources, units must regularly monitor and reconcile their financial activity within Banner. See below for a few tips to keep in mind when performing these reconciliations:
- Reconciliations should be completed by someone familiar with the unit’s operations who can identify, address, and correct any reconciliation errors identified during the process.
- Segregation of duties is an essential part of the reconciliation process. For example, a person reconciling expense transactions should not be the same person making the purchases which are being reconciled.
- Reconciliations should be performed on a consistent basis. While monthly reconciliations are typically recommended, the nature of the activities may require more frequent (such as daily) or less frequent (such as quarterly) reconciliations.
- Reconciliations should be clearly documented to provide evidence of both completion and review. Proper documentation is especially helpful during audits or when management requests financial updates.
- If your unit uses a shadow system, you must ensure that all transactions within the shadow system ultimately reconcile to Banner.
- In addition to reconciling revenue, expenses, and fund transfers within the Operating Ledger (OL), remember to also reconcile activities within the General Ledger (GL) as well. This is especially important for fund types which commonly maintain balances on the GL (such as self-supporting funds), as unreconciled transactions can lead to stagnant or incorrect balances.
For a deeper dive into the reconciliation process, visit UAFR’s Reconciliation of Financial Activities webpage, as well as Section 13.2 (Reconciliation of Financial Activities) within the Business & Finance Policies & Procedures.
Contact
If you have questions or would like further guidance, feel free to contact UAFR at uas@uillinois.edu or (217) 333-4568.
