SECTION 1: Accounting for Departmental Transactions

The Controller’s Office urges each department to keep a bookkeeping record on each account for which it is responsible. This would enable the department to verify that the balance shown on the ledger statement (received each month from the Accounting Department) is correct. Any errors that might arise in posting would be discovered and could be corrected. Such records would allow the department to know the balance in its accounts at all times and provide information to meet any reporting requirements.

Depending on what types of accounts you are responsible for and the complexity of the activity, there are many methods available to track the financial information. In some cases, something as simple as a manual multi-column accounting work paper is sufficient to track the activity. Predominantly, however, computerized methods are utilized by departments. These range from using spreadsheets to purchasing PC-based accounting systems that track activity and produce subsequent reports.

Additionally, various departments on campus have collaborated to write a customized PC-based accounting system (named DEPACT) that addresses the specific needs of departments. It is distributed free of charge and software support is provided by AIS. DEPACT has many useful budgeting and accounting features specific to departments and incorporates many of the forms necessary to conduct business on campus. Because of its many MSU specific features, we endorse the use of this program. Departments interested in installing and using DEPACT should contact AIS Help and Support at 353-4420 ext. 311 for details.

Regardless of the method you select for maintaining the accounting records in your department, there are a number of forms used on campus to execute various types of transactions. Although some of the forms mentioned are available through University Stores, most have been re-created electronically for ease of use (this will be discussed later in this section). For purposes of this discussion, the forms will be presented by accounting function. This listing does not address all forms used on campus but includes the forms most commonly used by campus accounting personnel.

Each of the above forms is discussed in detail in the respective sections noted above.

The monthly cut-off policy that is applied by the Accounting Department in processing transactions is that any non-check transaction that arrives in Accounting by 5:00 p.m. on the last business day of the month shall be processed and included on that month’s fund ledger statement. The only exception to this is when the transaction is lacking proper authorization and/or sufficient supporting documentation. It is important to note that when initiating any transaction that affects the accounting records of another department you must provide that department with sufficient documentation as to the nature of the transaction (e.g. copy of Journal Voucher Form, invoice, monthly statement, etc.)

In addition to maintaining the daily accounting activity, each department has many other reporting requirements (both internal and external) that your accounting data is used to satisfy. As a helpful resource, we have accumulated a battery of electronic information to assist you in reconciling and analyzing your accounting data. Although we are always working on more effective ways to distribute accounting information, the following is our current list of resources available.

The University accounting system is the official financial record for Michigan State University. Therefore, it is important that departments reconcile their records to the University accounting system at least monthly. Each month the Accounting Department prepares ledger sheets for each account available through DocViewer. There will be entries on the ledger sheet which do not appear on the departmental bookkeeping record and the departmental bookkeeping record will have entries which are not yet on the ledger sheet. This will most likely be due to either a timing difference in the posting of the transactions or an error that has occurred on one of the systems that needs to be corrected. To ensure the timely resolution of any mistakes, it is necessary to reconcile the two systems. In the event that any question arises or assistance is needed, call the Accounting Department, telephone number: 355-5000. The preparation of a reconciliation statement each month provides for a check on the University’s accounting system and can assist the Accounting Department in locating errors.