Patty Duvlea, Financial Services Teri Langton, OGCA

1. UAF Journal Voucher Training May 2008 Patty Duvlea, Financial Services Teri Langton, OGCA

2. Journal Entry - Remember accounting class • The basic accounting unit • When all else fails • Should be used only for adjusting, accrual, and closing entries • A negative measure of the quality and internal control of the accounting system indicative of problems which require additional action • A necessary evil and savior

3. UA Procedure - JV Initial Record • Departmental purchases from UA • Departments • Auxiliary • Recharge centers • Electronic feed by units • Large volume • Recurring transactions

4. UA Procedure - JV Initial Record • Examples of Initial Record JV • Telephone • Photocopy usage • Ship days • Mass spec • Physical plant and GI work orders • Tuition charges • Federal Work-study backcharge to depts • Revenue credit Expense debit

5. The Rest of the Story • Something has already gone wrong • Delayed fund setup • Late reconciliation of Pro Card use • Data entry error • Cost over run • Disallowed cost • Default coding inaccurate • May be correction of account code • May be same account code with org/fund change

6. The Worst • Correcting previous JV • Carelessness, inadequate training, transpositions, pro-card, travel credit card recon not done • _____ did not get corrected in time • Late payroll reconciliation • Delayed posting of recharge items • Charged to incorrect project • Wrong fund possibly wrong agency

7. Labor • Only between restricted funds (prior year only, use JPAY rule code) • Write off to unrestricted fund using over-run account code if labor is an allowable cost • If labor is an unallowable cost, must be moved by disallowed account code. Move by sum of labor & benefits and then F&A must be shown also • Submit proposed JV for review and approval with explanation

8. Justification and supporting documentation (restricted funds only) • The older the transfer the clearer the justification must be • better and more complete the documentation must be • Signature of Principle Investigator • On source documents JV or both (see exceptions) • Contemporary documents in support of transfer

9. Restricted Funds (from 2CFR220-OMB Circular A21) Are the charges: • Allowable on proposed project? • Applicable to the project? • Reasonable charge to the project? • Appropriate to restricted fund? Further: • Is it Principle Investigator approved? • Is the project still open? • Is there adequate supporting documentation?

10. Once an Indirect Cost always an indirect cost • Cost function determines whether direct or indirect (grant or unrestricted)

11. Signatures on a journal voucher • Preparer (physical preparation of JV) • PI required for JV’s with 60 day cost transfer memo • Approval (fiscal officer) • OGCA (is it allowable to the proposed project-required for JV’s with 60 day cost transfer memo) • Financial Services

12. Prior Year • No credit to current year (unrestricted) • Generally will be delay during first quarter of fiscal year • Statewide approval for prior year labor between F1 & F2

13. JV will be returned to Fiscal Officer • No signature • Inadequate backup • Prepared incorrectly • Coordinating department signature • Department responsibility to resubmit

14. Resources • http://www.alaska.edu/controller/accounting-manual/ • http://www.uaf.edu/finsvcs/AcctCodes • http://www.uaf.edu/grcon/ • http://www.whitehouse.gov/omb/circulars/index.html

15. Step by Step • Field instructions for journal voucher preparation • On JV form • If a copy of the JV is returned please review

18. Flow Chart for Journal Vouchers • http://www.uaf.edu/grcon/training/index.html