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Monthly Cost Center Verifications

 

Step One:

Run the 1074 Verification Worksheet

Recommended Steps for Running the 1074 Verification Worksheet

Run the 1074 by selecting “Only Print Active Cost Centers” for your department (or range of cost centers to be verified).  This will ensure that you verify any cost centers with activity.  See example below.

Quick Tip: It is only necessary to check the “Verification Worksheet” and “Separate” boxes to generate the Verification Worksheet.  It is not necessary to check other sections of the 1074 (Summary by Budget Node Only, etc.) to generate the Verification Worksheet.  However, other sections must be selected if you want to view the report in .pdf format.

Click the “XML_Verification_Worksheet.xls” link to create the Verification Worksheet.

Open each sheet within the Verification Worksheet (Asset/Liability/Fund Equity, Revenue/Expense, Budget Journals, Open Commitments, and Soft Commitments) to see if there are any transactions.

Step Two:

Review Assets, Liabilities, and Fund Equity

Verify department-initiated transactions by typing “X” in the Verified column if the amounts shown match supporting documentation.

Deposits held for others, disbursements made for others, retainage, pre-paid expense, inventory, accounts receivable and fund equity transfers.

Departments do not need to verify the following system-generated accounts:

Account

Account Description

10711

UHS PAYROLL

10714

UHS PAYROLL DD SETTLEMENT

20100

ACCOUNTS PAYABLE

20616

STATE TAX WITHOLDING

20999

RESERVE FOR ENCUMBRANCES

21100

PAYROLL CLEARING

21104

TRS FEE (CHARTER)

21106

TRS - CARE (CHARTER)

21107

EMPLOYEE MEDICARE TAX DEDUCTIO

21108

TX STUDENT LOAN DEDUCTION

21109

EARNED INCOME CREDIT

21111

UNION MEMBERSHIP FEE DEDUCTION

21112

PAYRL DED FED INC TX

21113

PAYROLL DEDUCT FICA

21114

ORP DEDUCT

21115

PAYRL DED TX DEF ANN

21117

PAYRL DED HOSP INS

21118

PAYROLL DED LTD INS

21119

PAYROLL DED LIFE INS

21120

DCP DEDUCT

21121

TRS DEDUCT

21124

RET BENEFIT ORP 7.31%

21125

EMP FICA MATCHING

21127

HOSPITAL BENEFIT

21128

LTD INS BENEFIT

21129

LIFE INS BENEFIT

21130

DEPENDENT LIFE DED

21131

EMPLOYER MEDICARE TAX LIABILIT

21132

RET BENEFIT TRS

21133

OTHER DEDUCTIONS

21136

CHILD SUPPORT

21137

BANKRUPTCY

21139

CHILD CARE DEPENDENT DED

21141

HEALTH CARE DEDUCTION

21143

IRS LEVY

21144

CHARITABLE CONTRIBUTION DEDUCT

21145

P/R PREPAID TUITION CONTRACTED

21146

PRETAX PARKING DEDUCTIONS

21152

CAMPUS RECREATION CTR DEDUCT

21153

ERS OPT OUT EMPLOYER LIABILITY

21154

GARNISHMENT OF EMPLOYEE WAGES

21155

ROTH 403B PAYROLL DEDUCTION

21163

RET BEN TRS 90-DAY ENROLLMENT

21164

RET BEN TRS SURCHARGE RETIREE

21165

RET BEN TRS TRS-CARE PREMIUM

23121

DEPOSITS -FAC/STAFF MEAL PLAN

You can also use the Balance Sheet to verify asset, liability, and fund equity account balances.

Refer to Cost Center Verification Procedures for more on documenting verification and steps for correcting errors.

Step Three:

Verify Revenue and Expense Transactions

Verify department-initiated transactions by typing “X” in the Verified column if the amounts shown match supporting documentation.

Refer to Cost Center Verification Procedures for more on documenting verification and steps for correcting errors.

Refer to procedures below addressing the BOB report for verifying payroll entries.

Navigation in HR System: UHS HRMS Budget > Reports > BOB Report

Create a run control (the first time only)

Key in fields as listed below. (The “Department” is the DeptID of the cost center where payroll is charged.)

Click Run

Click Process Monitor

Click Details

Click View Log/Trace

Click ubud022 .pdf link

Review the BOB report for the following:

In the month of September verify that the budget has loaded correctly by position number using the budget reports containing your new fiscal year’s budget

Each employee’s actual expenditure and encumbrance are listed on the correct position number within the correct cost center

If any position number is unreasonable negative check the employees FTE, pay rate and termination dates (if applicable)

Prepare PRs as needed to change funding for future pay periods or add budget to a position. Make sure payroll reallocations are prepared as necessary to move payroll expenditures already paid to a different position number and/or a different cost center.

Identify the totals for the cost center for each column (Base Budget, Final Budget, Current Month Actual, FYTD Actual Encumbrance Amount, BBA). Trace the totals to the amounts for Salary and Wages in Section 1 of the 1074 report for each column—they should be the same.

Document your comparison my marking the same letter for each total that matches. For example, if the total for the column Base Budget on the BOB report matches the Salary and Wages amount under the column Base on the 1074 report, put an ‘A’ by the amount on each report. Do that for each column.

After you complete the above processes, you must document your verification on the Verification Worksheet generated in the PeopleSoft Financial database. If there are no exceptions identified in the above steps, mark an ‘X’ in the ‘Verified’ column for all transactions relating to salaries/wages.

If you are unsure of how to implement any of the above steps, make sure to attend Cost Center Verification training.

Step Four:

Verify Budget Journals, Open Commitments and Soft Commitments

Verify department-initiated transactions by typing “X” in the Verified column if the amounts shown match supporting documentation.

Refer to Cost Center Verification Procedures for more on documenting verification and steps on correcting errors.

Keep these questions in mind:

  • Did Budget Journals have the appropriate affect on your cost center’s spending plan?
  • Are the open commitments on your cost center still valid?
  • Are the soft commitments on your cost center valid?

Delete/cancel any transactions that will not be processed.

Quick Tips: If there are out-of-the-ordinary transactions in a month – a fund equity journal, budget journal, or an expense transaction that someone from another department is processing on your cost centers, keep documentation in your shared drive or cost center folder (e-mails, invoices, memos) to help you when verifying cost centers. 

Step Five:

Document Needed Corrections

Run the following queries to identify any transactions that should have posted, but did not:
UHS_WF_AP_NOT_POSTED – Vouchers not posted
UHS_WF_BUD_NOT_POST – Budget Journals not posted
UHS_WF_SC_NOT_POSTED – SC Vouchers not posted
UHS_WF_REQ_NOT_APPROVED – Requisitions not approved
Are there any transactions that posted incorrectly?
Operator not authorized to process expense transactions for department
Payroll not posted to correct cost center
Note corrections in an action/correction form and make sure to follow up on these when verifying the next month’s transactions.

Quick Tips: For cost center corrections, keep track of the actions, how to correct the problems and the responsible person for correcting the problem in accordance with the Cost Center Verification procedures (see Cost Center Verification procedures). When you begin verifying the next accounting month transactions, make sure these corrections are the first part of the verification process.

The Transaction Correction Request form can be found in Policy Statement 05.A.12, Expenditure Allocations and Adjustments Policy at http://www.uhd.edu/about/hr/PS05A12.pdf

Step Six:

Review of Verifications by Cost Center Manager (or Designee)

Options for sending verification information to the cost center manager:

E-mail verification worksheets, including summary sheets and transaction sheets, and action/correction items to the cost center manager. Cost center manager forwards email with files attached and indicates that worksheets have been received.  Retain email forwarded by cost center manager with verification documentation.

E-mail verification worksheets, including summary sheets and transaction sheets, and action/correction items to cost center manager. Use Read Receipt in Outlook to confirm receipt by cost center manager. Retain Read Receipt email and email with verification documentation.

Save verification worksheets, including summary sheets and transaction sheets, and action/correction items in shared drive and notify cost center manager via e-mail. Save email from cost center manager or Read Receipt verifying that the email was received.

Print cost center verification summary sheets, detailed transactions (1074 PDF file is best format for printing detail), action/corrections items needed, and obtain cost center manager’s signature on the individual verification summary sheets (or a coversheet attached to the verification summary sheets). – This method is not recommended for large numbers of cost centers.

Step Seven:

Monthly verifications, including summary and detailed verification worksheets, a list of needed corrections, and confirmation that the cost center manager (or designee) received this information, must be retained for each month in the current fiscal year, plus the last verification from the previous fiscal year.

That’s a Wrap

Please be sure to attend the Cost Center Verification training provided by Business Affairs. 
You may register at http://www.uh.edu/hrms/DTFIN-Training.htm.

Please review the Administrative Reference Manual at http://www.uhd.edu/facultyandstaff/administrativereferencemanual/index.html.

Need help with the verification process?
Call Accounting at Ex. 8604

Each month print out your department’s BOB report once you receive notification from the Budget Office that the report is available for that month. The BOB report is maintained in the PeopleSoft Human Resources database.


Last updated or reviewed on 7/26/11

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