Wrong Natural Balance
Annually, Accounting will distribute a list of accounts for asset and liability object codes for balance that does not have the natural classification. The natural classification for assets is a debit balance, for liabilities it is a credit balance, therefore, the wrong natural balance for assets (with the exception of a contra asset) is a credit balance and for liabilities it is a debit balance.
- The expectation is that the account is reviewed and corrected by the responsible party within 30 business days.
- If an object code has been reviewed and all transactions and object codes used appear to be appropriate, please contact Accounting for assistance. A process review of how the activity is recorded may need to be undertaken.
Unchanged Balance
Annually, Accounting will distribute a list of accounts for which asset or liability balances have not changed since the previous year.
- Generally, accounts receivable and accounts payable/deferred revenue balances clear within 30-60 days.
- Balances at the end of the first, second, and third quarters that have not changed since the beginning of the fiscal year may indicate a potential problem.
- The expectation is that the account is reviewed and corrected by the responsible party within 30 business days.
Institutional Orgs
- Institutional Orgs are central administrative functions of the university where the underlying accounts are held in an institutional org, (orgs beginning with 90xx and 91xx). Examples include Financial Aid, Bursar, Benefits, Budget Office, Human Resources, Investments, and AA&D.
- Accounting will maintain and annually update a list of institutional org accounts, the person responsible for the reconciliation (role = account manager), frequency of reconciliation and type of reconciliation.
Audit Review
- Periodically, Accounting may randomly select reconciliations across campus for review.
- The expectation when the external auditors (PricewaterhouseCoopers), the University Audit Office, or the Office of the University Controller/Accounting requests a copy of the reconciliation, that it will be available within two business days.
