Summary

The opportunity exists for budget centres to input their own journals direct into the FMIS.

Whilst responsibility for the posting of journals will remain with Financial Services, the benefits of allowing budget centres to input journals can be summarised as:

• Journals can be entered in a format relevant and understandable to the budget centre.

• Journal descriptions will not be mispunched/incorrect.

• Budget centres can enter journals when required.

• Duplication of entry and re-processing is removed.

• Account codes will be correct and valid, as they will be checked within the budget centre at the entry stage.

• Considerable timesavings will be realised in the journal process, resulting in quicker posting times.

• Data transfer, or misread handwriting errors are removed.

 

General Procedure

The broad procedure for journal processing in a devolved environment is (note all attachments referred to below can be found on the Financial Services Web Site):

 

Budget Centres

1. Prepare Journal - all relevant supporting documentation is attached to the General Journal form (copy attached)

2. Check Account coding - see attachment 'FMIS Chart of Accounts'

3. Prepare Batch Header - used for authorisation, plus batching a range of journals (copy attached)

4. Obtain Authorisation - Refer attachment "Framework for the Delegation of Signing Authorities"

5. Key Journal - Refer attached "Journal Entry Cheat Sheets"

6. File Documentation - Documentation must be filed in Batch Number Order and kept in line with University Policy 21.3 "Retention of Financial Records"

Financial Services

1. Post Journals - Journals entered and ready for posting will be reviewed on a daily basis. In some cases this may require viewing of the source documentation.

2. Any corrections necessary to unposted journals will be referred to the Budget Centre to be rectified

3. Initially Financial Services will need to review certain documents prior to Posting Journals. This will be scaled back as Budget centres become used to the new procedures.
   

 

Business Rules

Several rules have been developed to ensure that journal entry by budget centres maintains the University's system of internal control. These rules are to be followed in conjunction with existing University policies and procedures.

The business rules are:

• All budget journals will be entered and posted in Financial Services. Budget centres are encouraged to submit budget journals to Financial Services electronically.

• The initiator of the journal will be responsible for obtaining the relevant authorisation in accordance with the University's Authorities framework.

• No cross-faculty transfers will be permitted, except where the "other" faculty's accounts are being credited.

• The onus is on budget centres to keep track of their funds and to ensure that no accounts remain in deficit without appropriate and timely follow-up action.

• There are several protocols and guidelines that must be followed before a journal is postable. These will be explained to budget centres during the journal entry training.

• Financial Services retains the right to view any supporting documentation and/or evidence of appropriate authorisation prior to posting any journal.

• Budget centres are responsible for retaining source documentation to meet audit compliance.

 

Other Issues

• The onus is on budget centres to ensure that journals are authorised and entered correctly. Financial Services main function in this process is to ensure the integrity of the FMIS and that only legitimate transfers are posted.

• As the flow of source documentation is within the budget centre, the business rules must be followed and the necessary records kept. With the implementation of the FMIS, the focus of Internal Audit is increasingly on budget centre activity to ensure compliance of the internal controls.