Correcting Unknown Variances

Unknown variances typically are discovered while reconciling asset (other than accounts receivable) or liability object codes. Typically variances are errors that may have accumulated over several years or the object code has not been reconciled. Making corrections may have material impacts to the university's financial statements and could be an indication that the process needs to be revised. Please consult with Accounting for guidance in establishing a new procedures.

Authorization for Corrections

Requests for documentation should include:

• A brief narrative of the correction.
• The account number that will fund the correction.
• Email confirmation from the unit’s financial manager or BSC director stating that they agree with the correction.

Authorization Limits:

• Unit level authorization is required for corrections less than $50,000.
• Authorization is required for corrections greater than $50,000. Send requests to Accounting.

• Requests greater than $50,000 and less than $100,000 will be approved by University Accounting.
• Requests greater or equal to $100,000: Will be forwarded to the university controller for approval.

Correcting Entry

Do not use the write-off object code 6330. Instead, use the appropriate object code, which could be a different asset or liability object code, or a revenue or expense object code. The object code will depend on the type of correction being made. For example, if revenue was previous overstated, then the correction should be made on the same revenue object code. As a reminder, use the General Ledger Transfer (GLT) e-doc where possible.