Fund Equity & Cost Center Verification (cont'd)

Purpose:  The reconciliation of department cost centers are needed to minimize the risk of unauthorized use of funds and to ensure that revenues are properly recorded. Therefore, entries in the PeopleSoft General Ledger (PSGL) must be monitored monthly. For this reason, MAPP has asked that each department develop procedures for monthly verification of each cost center in PSGL with departmental records to ensure accuracy and propriety of the entries.
References:  MAPP 05.04.02, SAM 03.G.01, SAM 03.G.03
Handouts: 
Procedures: 
PT. I: Step by Step Reconciliation Using VNet Administration Database
PT. II: Cost Sharing
PT. III: Maintaining PS Cost Centers
PT. IV: Budget Request
PT. V: Request to Budget New Revenue/Fund Balance
PT. VI: Non-Payroll Correction
PT. VII: List of Reports
PT. VIII: Reviewing Fund Equity
Review and Responsibility: 
  • Responsible Party: Director, NSM Business Operations
  • Review: Every two years, on or before August 31
Approval: 
  • Director, NSM Business Operations - Fred McGhee
  • Dean, NSM - John Bear
  • Date of Dean's Approval: 09/01/2008

VIII: Reviewing Fund Equity

Each month, Department Business Administrators (DBA) must run the UGLC016B and review it for cost centers that are in deficit. The cost centers in deficit must be identified and a reason for the deficit noted on the reconciliation report. Every effort must be made to clear the deficit. To prevent cost center deficits, the departments should transfer expenses, revenue, and/or fund equity (where appropriate and allowed) to clear deficit fund equity balances and clear deficits in cost centers on a monthly basis. One exception is a deficit in fund 5 cost centers caused by the timing or delayed awards. However, on awards that are up-to-date or have ended, the department must work with the College Business Administrator (CBA) and the Office of Contracts and Grants to clear fund 5 deficits on a monthly basis. If departments are unable to clear all deficit balances by year-end the DBA must work with the Director of NSM Business Operations and CBA to accomplish this goal. If the college is unable to clear all deficits in all department cost centers by the end of the year, a statement that explains why there is a deficit balance and how it plans to correct its fund balance in the next fiscal year must be sent to Mike Glisson (mail code 0911) by October 31st, who will then forward to Craig Ness for review.