Units must regularly monitor and reconcile their financial activity within Banner to ensure accurate financial reporting for the University of Illinois System’s audited financial statements and to safeguard system resources. See below for a few tips to keep in mind when performing these reconciliations:
- Reconciliations should be performed by someone knowledgeable about the unit’s operations to the extent that they can identify and communicate problems that may arise.
- Segregation of duties is also an important concept to remember when assigning reconciliation responsibilities. For example, the person reconciling expense transactions should not be the same person who is making the purchases that are being reconciled.
- Reconciliations should be performed on a regular, ongoing basis. Most good business practices recommend monthly reconciliations, but the nature of the activities and the risks involved may require more frequent (such as daily) or less frequent (such as quarterly) reconciliations. It is up to you to decide what is best for your unique scenarios.
- Reconciliations should be clearly documented to provide evidence that the reconciliation was properly completed and reviewed. This will be helpful in situations where you may be audited or where senior executives want to see results of past reconciliations.
- If shadow systems are used, remember that it is essential to reconcile the shadow system to Banner, which is our official system of record. All transactions within the shadow system must eventually reconcile to Banner.
- It is important to reconcile not only the revenue, expense, and fund transfer activity within the operating ledger (OL), but also the asset and liability activity within the general ledger (GL). This is especially helpful when reconciling fund types that commonly have GL activity, such as self-supporting funds or service plan funds. The omission of a GL reconciliation could potentially lead to stagnant and incorrect balances within the GL.
While these are just a few tips to help get you started, a more detailed analysis of the reconciliation process is available within UAFR’s Reconciliation of Financial Activities webpage. In addition to the text within this webpage, there are also helpful job aids and resources linked under the Reporting Reference Materials and Resources sections on the right-hand side of the page.
Contact
If you’d like further tips on effective reconciliation processes, feel free to reach out to UAFR via email or phone at uas@uillinois.edu or (217) 333-4568, respectively.
