• First-level approvers should be validating the data entry accuracy and completeness and with no approval authority. These reviewers may be peer or subordinate to the initiator.
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Journal Entries

Journal entries are used to record activities that are not initiated by a subsidiary system. Revenues, receivables, and cash receipts should be initiated through the student- or grant-accounting modules; expenses, payables, and cash disbursements should be initiated through the purchasing and accounts payable module; fixed assets acquisitions, disposals, and depreciation should be initiated through the fixed assets module; personnel expenses, net pay and benefits payable, and payroll taxes should be initiated through the human resources and payroll module.

In general, journal entries are used to record non-cash activities related to month- and year-end closing. Templates for regular month-end closing entries should be established where practical to improve the efficiency and accuracy of recurring journal entries.

Responsible position(s):

  • Accountants, Senior Accountants, Controller (in limited circumstances)

Required documents and access:

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  • Supporting documentation

Frequency and timing:

  • Monthly, annually, and as needed

Steps:

  • Identify the transaction that needs to be recorded.
  • Collect and review sources documents to support the transaction.
  • Prepare the journal entry; use a template if available:
  • Finalize the journal entry and submit it for approval.
  • FGAJVCD
  • Transaction date
  • Accounts and amounts to be debited and credited
  • Brief explanation of the transaction

Journal Entry Review and Approvals

Journal entry approval must be explicit, i.e. if you are an approver, you cannot initiate and approve your own entry. In general, the Controller should be reviewing and approving journal entries and may delegate the Senior Accountant to review and approve journal entries by subordinate staff. Any entries prepared by the Senior Accountant must be approved by the Controller, and any entries prepared by the Controller must be reviewed and approved by the CFO.

Responsible position(s):