These pages contain guidelines for reconciling asset and liability object codes and monitoring revenue and expense activity.
Why reconcile asset and liability object codes and monitor operating balances (revenue and expense) object codes?
- To ensure Cornell's financial integrity by producing accurate external financial statements.
- The outcome of the financial statements audit can directly impact the level of research funding received by the university.
- Reconciliations and monitoring activity must be completed as an internal control to discover any mistakes or issues with internal procedures.
- Reconciliations and monitoring activity must be completed as an internal control to discover any misstatements and material weaknesses before the external auditors find them.
- The annual Operating Unit Internal Control Certification (OUICC) requires the highest level of management to attest to reconciling unit level activities to ensure that source documents and subsidiary ledgers agree to the general ledger, reconciling items have been resolved and adjustments made to the general ledger if required.
- Management relies on accurate financial data to manage resources and operation of the university. Financial data is used to analyze business trends and guide future planning such as capital projects, investment strategy and budgets.