General Ledger (GL) verification is a key control of UCSF and is a requirement per Campus Administrative Policies. It is the responsibility of each department to verify the financial transactions recorded in the general ledger are in accordance with all relevant policies, regulations, and sponsor or donor terms and conditions.
GL verification consists of the following activities:
- Verification: Examining detailed transactions in the GL to ensure transactions are expected to appear. Look for any suspicious transactions or abrupt changes from an established trend. Any errors that are identified, including transactions that contain incorrect or inappropriate chartfields must be corrected. Typically, this activity is conducted by the Department’s financial administrator.
- Review: Examining management GL trend reports for perceived anomalies and errors of substance, based on the reviewer’s experience and knowledge of the Department’s operations. This activity is at a summarized level compared to the detailed transaction reconciliation discussed above. It is expected that someone familiar with the financial activities of the Department performs the ledger review, such as the Business Officer.
- Acknowledgement: Attestation by the Reconciler and Reviewer that they reviewed the financial information, corrected errors, and can provide reasonable assurance of the validity of the information. GL Verification needs to be acknowledged by an MSO, Department Head or designee for non-sponsored funds and the Principal Investigator (PI) or designee for sponsored funds; if the Review has not been completed by one of these individuals, then a third acknowledgement on the checklist is needed.
Use the General Ledger Verification Checklist and Acknowledgement form to record the attestation by the department Reconciler and Reviewer, and refer to the General Ledger Verification Procedures for detailed step-by-step instructions on how to perform the verification.
The GL verification process must be complete in a timely manner: within 30 days of the previous month-end close. For example, the verification process for transactions recorded during the month of August must be complete by October 5th (30 days after the month of August was closed in the GL).