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An expenditure report detailing the activities within departmental accounts including grant accounts is distributed monthly. It contains a summary of expenditures by object and a detailed summary of items paid during the month.
5.2 Reconciliation of Report Required
This report must be checked each month and the necessary adjustments made.
5.3 Reconciliation of Requisition Balance to Expenditure Report
To reconcile the expenditure report, the following procedures should be followed in reconciling supplies and expenses. Similar procedures should be followed for reconciling travel, equipment and other unrestricted line items. Restricted accounts should be reconciled in total and not by line item.
5.3.1 Determine Expenditure Report Balance
A. Begin with the free balance of supplies and expense.
B. Add total supply and expense encumbrances outstanding.
C. Subtract all outstanding requisitions. (Amounts of requisitions issued in or prior to the month being reconciled which have not been paid.) This results in an adjusted balance.
5.3.2 Determine Requisition Balances
A. Begin with the ending balance on the last supply requisition for the month.
B. Add or subtract any adjustments (difference in amount of requisition and amount paid such as discounts, freight or interdepartmental transfers processed).
5.3.3 Compare Requisition Balance to Expenditure Report Balance
A. Compare balance of expenditure report to the developed requisition balance. They should equal.
B. Notify the Supervisor, Accounts Payable (or Grant Accountant, in case of restricted accounts) of any correction to be made to the expenditure report or other corrections the Business Office should make which the reconciling process reveals.