The general ledger is where all of the business's financial transactions are recorded. Good accounting practice requires that the general ledger be reconciled, or reviewed on a regular basis. This key internal control is performed to confirm the accuracy and integrity of the University’s financial statements. If not performed, unsatisfactory financial statements, misstatements and material weaknesses can directly impact our reputation and the level of research funding received by the university. Visit the Terms & Definitions page for more information on what this all means.
Effective for audits of financial statements for periods ending on or after December 15, 2009, the Statement of Auditing Standards No. 115 (SAS 115) (formally SAS 112) was incorporated into UCI's external financial audit. SAS 115 establishes standards and provides guidance on communicating matters related to an entity's internal control over financial reporting identified in an audit of financial statements. It is applicable whenever an auditor expresses an opinion on financial statements (including a disclaimer of opinion).
SAS 115 has important implications for all campus departments, not just those in the central offices. While campus departments should already be incorporating these reviews and controls in their financial processes, effective immediately, departments are responsible for documenting key controls in the following areas:
- General Ledger Reconciliation and Approval
- Distribution of Payroll Expense Review
- Payroll Certification Reporting
- Physical Inventory
- Purchasing and Payables Invoices
Ledger Reconciliation Certification Process Overview
UCI’s Ledger Reconciliation Certification (LRC) application facilitates a consistent ledger review by campus departments and units and provides transparency over the process for audit and financial management purposes. Reconciliation documents are generated at the month-end close date based on the Reconciliation Group(s) defined by the Department.
The LRC requires two electronic certifications: the first is provided by a Reconciler, certifying that the ledger has been reconciled; the second is provided by a Certifier, confirming the reconciliation has been appropriately completed. The ledger reconciliation history is stored in the KFS document and can be viewed through the custom document search.
The Ledger Reconciliation Application has seven main components used to perform a reconciliation:
For More Help
For assistance with the Ledger Reconciliation Certification Application, please contact your financial manager or Julie Snyder at 949-824-3595.