Objective

This procedure outlines the reconciliation, review, and approval process for departmental ledgers, establishing key definitions and parameters in alignment with the applicable fiscal policy.

Scope

This procedure applies to Department Heads and designated employees responsible for performance ledger reconciliation and approvals.

Procedure

1. Reconciling, Reviewing and Approving Ledgers
   1. Employees designated as a Monthly Ledger Reconciler must complete their specified tasks per the applicable fiscal policy within 45 days after official notice of the close of the accounting period.
   2. Employees designated as a Monthly Ledger Approver must complete the tasks specified in the applicable fiscal policy within 30 days of receiving the reconciled ledger from the Reconciler.
2. Auditable Record of Monthly Ledger Reconciliation and Approval
   1. For purposes of this procedure, an “auditable record certifying completion of the ledger reconciliation process” consists of an electronic or written record approved or signed by the Reconciler acknowledging that the Reconciler has completed each stated requirement in Section II Reconciling Ledgers of the applicable policy.
   2. For purposes of this procedure, an “auditable record certifying completion of the ledger approval process” consists of an electronic or written record approved or signed by the Approver acknowledging that the Approver has completed each stated requirement in Section III Reviewing and Approving Ledgers.
3. Monthly Ledger
   1. For purposes of this procedure, a “ledger” is a summary of financial activity related to a distinct department, fund, or project that is budgeted or managed, or both, for a specific purpose. The exact definition of what constitutes a ledger depends on the type of funding involved as described below.
      1. Monthly Ledgers for Unrestricted Current Funds (Educational & General and Auxiliary; fund groups F_11 and F_13) include DASH reports for unique Department/Fund combination under this policy. Departments with high levels of financial activity may choose to review separate ledgers for more detailed COA combination sets such as Department/Fund/Program or Department/Fund/Program/Activity. Current DASH reports available for reconciliation, review, and approval include GL Budget vs Actual and Department All Postings – Source Detail.
      2. Monthly Ledgers for Sponsored Projects include DASH reports for each sponsored project. Current DASH reports available for reconciliation, review, and approval include Project Budget vs Actual and Project Detail Report.
      3. Monthly Ledgers for Other Project Types (Internal and Capital) include DASH reports for non-sponsored projects. Current DASH reports available for reconciliation, review, and approval include Project Budget vs Actual and Project Detail Report.
      4. Monthly Ledgers for Other Current Operating Funds, such as gift and current endowment funds, with a unique fund value in the chart of accounts, constitute a separate ledger. Current DASH reports available for reconciliation, review, and approval include Department All Postings – Source Detail.

Penalties/Disciplinary Action for Non-Compliance

Violations of this procedure might result in progressive disciplinary action, up to and including termination. The University will follow all applicable University policies and procedures, as well as comply with applicable laws and regulations, regarding any potential human resources actions.

Responsible Official & Additional Contacts

Subject Matter	Office Name	Telephone Number	Email/Web Address
Policy Clarification and Interpretation	Jennifer Easley	865-974-3590	jennifer.easley@tennessee.edu

Related Policies/Guidance Documents

FI0115—Reconciling and Reviewing Departmental Ledgers