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Fiscal Oversight and Accountability

Fiscal Oversight and Accountability. JULY 12, 2012 Business Affairs Advisory Forum . Fiscal Oversight and Accountability. Monitoring Budget to Actual Authoritative Financial Data and Importance of Reconciliation. Monitoring Budget to Actual.

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Fiscal Oversight and Accountability

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  1. Fiscal Oversight and Accountability JULY 12, 2012 Business Affairs Advisory Forum

  2. Fiscal Oversight and Accountability Monitoring Budget to Actual Authoritative Financial Data and Importance of Reconciliation

  3. Monitoring Budget to Actual Several Central Controls Exist for Budget to Actual Monitoring • Budget Control via the Development and Amendment processes • Regular review of actual Tuition and Fee Revenue vs. Budget • Quarterly reporting of budget to actual variances to BOR Office • Budget checking at the expenditure level

  4. Monitoring Budget to Actual • UGA units engage in activities which are not as closely monitored at central levels • Departmental Sales and Service • Auxiliary Enterprises • Do you have budget to actual monitoring procedures at the school/college/unit/departmental level? • Are revenue/expense budgets reviewed against actual performance? • Do you need to make adjustments to the budget based on actual performance?

  5. Monitoring Budget to Actual – Departmental Sales Example Budget 12/31/12 Actual Revenue $100,000 Expense $100,000 Budget Balance $0 Revenue $45,000 Expense $75,000 Deficit $(30,000)

  6. Monitoring Budget to Actual • Consequences of not monitoring: • Inability for other departmental sales activities to use carry forward • Unfunded deficits • Program/activity viability and continuity • Program integrity • Audit findings

  7. Authoritative Financial Data and Importance of Reconciliation • Financial Accounting System and Budget System (IMS) are “official financial data sources” • Used to prepare UGA audited financial statements • Used to prepare tax returns • Used to prepare all external financial reports • Importance of reconciliation of departmental records/systems to Financial Accounting System • Identification of errors and omissions for timely correction • Proper Accrual Accounting • Audit trail and confirmation of data – are departmental records equal to IMS or reconciling items identified?

  8. Authoritative Financial Data and Importance of Reconciliation • Consequences • Incorrect data and information in official financial reports and/or tax returns • Audit findings • Lack of review/reconciliation: • Increases likelihood of misappropriation and misuse of resources • Increases likelihood that errors are not identified • An independent and timely reconciliation is best practice • Validation of reconciling items • Validation of appropriateness of transactions

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