Patty Duvlea, Financial Services

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UAF Journal Voucher Training May 2008

• Patty Duvlea, Financial Services
• Teri Langton, OGCA

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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

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UA Procedure - JV Initial Record

• Departmental purchases from UA
• Departments
• Auxiliary
• Recharge centers
• Electronic feed by units
• Large volume
• Recurring transactions

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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

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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

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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

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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 FA must be shown also
• Submit proposed JV for review and approval with
  explanation

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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

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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?

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Once an Indirect Cost always an indirect cost

• Cost function determines whether direct or
  indirect (grant or unrestricted)

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Signatures on a journal voucher

• Preparer (physical preparation of JV)
• PI required for JVs with 60 day cost transfer
  memo
• Approval (fiscal officer)
• OGCA (is it allowable to the proposed
  project-required for JVs with 60 day cost
  transfer memo)
• Financial Services

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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

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JV will be returned to Fiscal Officer

• No signature
• Inadequate backup
• Prepared incorrectly
• Coordinating department signature
• Department responsibility to resubmit

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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

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Step by Step

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

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Flow Chart for Journal Vouchers

• http//www.uaf.edu/grcon/training/index.html