FIN-2014-02 (AS) Journal Entry Policy-Final

ROWAN UNIVERSITY POLICY

Title: Journal Entries
Subject: Accounting Services
Policy No: FIN: 2014:02
Applies: University-Wide
Issuing Authority: President
Responsible Officer: Senior Vice President for Finance and CFO
Adopted: 07/01/2014
Last Revision: 06/21/2016
Last Reviewed: 06/21/2016

1. PURPOSE

The purpose of this policy is to provide guidance to ensure journal entries are entered timely and properly reflect transactions resulting in accurate financial statements which comply with generally accepted accounting principles (GAAP).

1. ACCOUNTABILITY

Under the direction of the Senior Vice President for Finance and CFO, the Director of Accounting shall implement this policy. Each department, including the Accounting Services Office, Office of Sponsored Programs (OSP), Bursar's Office, and the Budget Office that prepare, post, approve and file entries will ensure compliance with this policy.

1. APPLICABILITY

This policy applies to all employees of the University who are involved in any financial activity on behalf of the University.

1. DEFINITIONS

1. Journal Entries: Journal entries for the purpose of this policy include all journals generated using Banner Finance Rule Classes JE15 (General Journal Entry Intra-Fund), JE16 (General Journal Entry Inter-Fund), and JEZG (Grant Office Journal Entry).

1. OSP: Office of Sponsored Programs

1. REFERENCES

1. State of New Jersey Records Manual

1. POLICY

1. The Director of Accounting Services has the responsibility for overseeing the operation and maintenance of the accounting system. The Accounting Services Office has responsibility for processing transactions, timely production of accounting reports, and submitting daily program requests.

1. Journal entries are recorded to ensure financial activity within Rowan University is reflected in the general ledger accounts that comprise the University's financial records in accordance with GAAP. All journal voucher entries are reviewed by the Accounting Services Office.

1. Journal entries are prepared for various transactions. These transactions include but not limited to student account charges, correcting entries, monthly entries, and department reimbursements, including:
   1. 1. Bursar's Office to correct student accounts/transfer receipts between accounts
      2. Budget Office to correct a posting error or divide charges
      3. Accounting Services Office for monthly journal entries and all corrections
      4. OSP Office to post grant related activity

1. Journal entries can be entered into the Banner Finance system through automated upload or by manual process completed by an individual.
   1. Journal Entry Sheet
   2. Department Charge Authorization

1. Journal entries must contain sufficient supporting documentation and follow the review/approval process described below.
2. Supporting Documentation
   1. 1. Journal entries will be supported by accurate and appropriate documentation that supports the complexity of the transaction.
      2. A journal entry based on confidential information includes supporting documentation that indicates the confidential nature of the information and the name of the person responsible for maintaining the information.
      3. Supporting documentation is auditable, well-justified, and maintained by the approving department.
   2. Journal entries prepared and posted by the:
3. OSP Accountants are to be reviewed/approved by the OSP Manager or Director prior to filing.
4. Budget Office Accountants are to be reviewed/approved by the Director of Budget or Supervisor, Manager or Director of Accounting Services prior to filing.
5. Bursar's Office are to be reviewed/approved by the Bursar's Office Supervisor, Manager or Director prior to filing.
6. Accounting Services Office accountants is to be reviewed/approved by an Accounting Services Office Supervisor, Manager or Director prior to filing.
7. Accounting Services Office manager are to be reviewed/approved by another Accounting Services Office Manager or Director prior to filing.
   1. Reviewing/Approving Managers will determine if Journal Entry support is appropriate in quality and quantity, and request additional information if needed. If the reviewing and/or approval officer discovers an issue with a Journal Entry, a reversing or correcting entry will be processed using the same approval process stated above.
   2. Maintenance of Journal Entries
      1. Journal Entries documents with appropriate support will be maintained in the Accounting Services Office for Journal Entries prepared or posted by both the Budget Office and the Accounting Services Office Staff.
      2. Journal Entries prepared in the Bursar's Office will be maintained in the Bursar's Office.
      3. Journal Entries prepared and posted by the OSP Office will be maintained in the OSP Office.

1. Access and authority to post journal entries to the Banner system is governed by security access granted through the Banner Finance Security Profile. To access the Banner Finance System to perform job duties, the department head should email a request for approval to finsecurity@rowan.edu. The e-mail should state:
   1. The name of the person who is requesting access:
   2. The title of that person:
   3. The reason access is necessary:
   4. The type of access needed:
      1. Query or read only
      2. Posting (Requisition and Budget Transfer entry)
      3. Both

1. As a public university, Rowan follows the State of New Jersey Records Retention Policy, this includes journal entry documentation.