NEW LEDGER REVIEW SYSTEM TRAINING MANAGEMENT LEDGER REVIEW (MLR) - - PowerPoint PPT Presentation

NEW LEDGER REVIEW SYSTEM TRAINING

JULY 2015 JIM HEWLETT ANALYST

MANAGEMENT LEDGER REVIEW (MLR)

Note on this Training

• This training module focuses on details and functionality
• f Management Ledger Review (MLR) and how to

interpret and analyze the report data

• There is a separate training module on the Analytical

Ledger Review (ALR)

High-Level Overview

• New Ledger Review System: Defining the 3

major components

• Overview of the Management Ledger

Review (MLR)

• Report Details: Section by Section
• Best Practices
• Additional Resources

3 Reports in Ledger Review System

• 1. Analytical Ledger Review (ALR)

completed MONTHLY* by Fiscal Officer

• 2. Management Ledger Review (MLR)

completed MONTHLY* by MSO (or by equivalent role; e.g., CAO, Manager, Director)

• 3. Quarterly Ledger Review completed

QUARTERLY by Dean’s Office

*Fiscal Periods of June Preliminary and June Final combined for purposes of ALR and MLR

Purpose of MLR

• The MLR is a Summary record of financial transactions for your
• rganization’s accounts; similar in structure to the FIS DS Summary

Sources and Uses of Funds (349)

• The MLR serves as a complementary check on the review being

completed by the Fiscal Officers on the Analytical Ledger Review (ALR)

• The MLR helps ensure that accounts are being properly reviewed by the

fiscal officer, makes it easy to identify accounts in overdraft, and helps identify potentially high-risk financial activity within the organization

• The MLR is a very flexible reporting tool; we encourage you to try the

various reporting options to assist with your various organizational business needs

Organization Types that Complete MLR

MLR is summarized at and completed by Organizations with Organization Type Codes

• f:
• Department (D)
• Department Group (G)

Subordinate Organization (“Reports To” Organization) information appears on the MLR, but the report is queried and reviewed at the higher level organization level (D or G)

Organization Types Completing MLR

School/College/VC (S,V,R) Level 4 Org QLR Department Group (G) Level 5 Org MLR Department (D) Level 5 Org MLR Division (N) Level 5 Org No MLR

Department Group (G) Level 6 Org MLR Department (D) Level 6 Org MLR

Where does the MSO information come from?

Organization Document in KFS for Organizations with Organization Type D or G contains an MSO/Manager Principal Name field in the Organization Management section:

• Person listed in MSO field is responsible for marking MLR as “Completed”
• MSO names pre-populated based on discussions with A&FS and

Dean/Vice Chancellor Offices

• Other users can view but not mark MLR as “reviewed”

Where does the MSO information come from?

Organization Document in KFS also contains an Organization Manager Principal Name field; this is NOT the field used for the Management Ledger Review (MLR)

• Person listed in MSO field is responsible for marking MLR as “Completed”
• Information was pre-populated based on discussions with A&FS and

Dean/Vice Chancellor Offices

• Other users can view but not mark MLR as “reviewed”

Timeline for MLR Review

• MLR is completed once per month (each Fiscal Period)

Emails Keep You in the Know!

• Automated email is sent to MSO

(person listed in the MSO field for the

• rganization) when MLR is ready for

review for each fiscal period

• Email is also sent to the MSO when a

Fiscal Officer(s) in the

• rganization/any subordinate
• rganization is more than 60 calendar

days overdue in completing the Analytical Ledger Review (ALR); email includes names of Fiscal Officers and applicable account(s)

Report 404 in FIS DS

• Management Ledger Review

(MLR) is 404 report in FIS Decision Support (DS)

• Click on the General Ledger

link, or enter 404 in the Query Jump box

What You Will See in MLR

The MLR includes the following:

• a list of unreviewed reports
• a list of accounts in overdraft
• high risk transactions
• high value transactions
• summary of revenues and expenditures
• a review button to indicate you have

reviewed the report

MLR: Query Input (top half)

Charts 3, L, and S are the charts that can be reviewed

• n the MLR

Narrow down search results (if desired) by Fiscal Officer or Principal Investigator or by Account(s) Fiscal Year and Fiscal Period default to Current period Run the MLR at your highest level Organization (Org type D or G); you will autmatically see all subordinate activity as well If you want to categorize your search results by the Sub Fund Group Types (SFGT) listed, check the applicable boxes

MLR: Query Input (bottom half)

Identify if you want your results to appear in your Internet browser or in a spreadsheet Narrow search results (if desired) by Sub Fund Group Type or UC Fund We’ll talk about the High Value Threshold field

• n the next slide

In order to mark the MLR as “completed,” the first 4 Report Options MUST be included; we’ll discuss each of these options in just a bit…

MLR Input: High Value Threshold

• Similar to the Analytical Ledger Review (ALR), there is a separate

section on the MLR titled High Value Transactions

• Default setting is $5000; report will identify all financial (non-payroll)

transactions $5000 and higher in the High Value Transactions section

• Threshold can be set higher or lower for reporting purposes, but NOT

higher than $5000 for actual review

• Set it lower if you want to see transactions less than $5000

MLR Input: Required Report Options

The first 4 Report Options are required and must be included for the MSO to mark the MLR as “completed” (These default to Include on the report)

• Unreviewed Accounts: Accounts that have not been yet

marked as “reviewed” by the Fiscal Officer on the Analytical Ledger Review (ALR)

• Overdrawn Accounts: Accounts with total spend that

exceeds established budget

• High Value Transactions: Financial (non-payroll) transactions

at/above $5K, or another (lower) amount as indicated in the High Value Threshold field

• Budget to Actuals: Comparison of how much has been spent

compared to how much has been appropriated

MLR Input: Optional Report Options

• Payroll Encumbrances: Displays Liens created by the

Payroll/Personnel System (PPS) (Defaults to Include)

• Non-Payroll Encumbrances: Displays Financial encumbrances

created in the KFS by Purchasing and Pre-Encumbrance documents (Defaults to Include)

• C&G History Balances: Recommend including this option if

your organization includes Contracts & Grants accounts (MLR will match totals on Transaction Listing (2))

• SUB3 Summary: All SUB3 (Supplies) activity in one section;

recommend including this section as supply transactions are the most common type of departmental activity, but they can include High Risk Transactions (e.g., memberships, research payments, non-cash awards)

MLR Input: Optional Report Options

• Monthly Feed Summary: Displays monthly activity for

Davis recharge units/departments by unit where expense

• riginated
• DV Summary: Displays KFS Disbursement Voucher (DV)

activity by person (payee) for high risk DV transactions; we’ll discuss what constitutes “high risk” later in the training

• TIP! If you return your results to a spreadsheet, each of

the included report options will appear as a separate TAB; the exceptions are C&G History Balance, Payroll Encumbrance, and Non-Payroll Encumbrance which are flags to determine whether or not to include/exclude encumbrances or C&G history

MLR: Report Header

Optional: Click on Organization link to access the MLR for that specific subordinate organization Refresh Page option can be helpful to click on after taking action on an account and reloading the page to see all current data Click on the Included or Excluded links to change what you see (or don’t see) on the report

MLR: Unreviewed Accounts

• Unreviewed Accounts section is the first required section of the MLR and

includes any accounts that are overdue (60 or more calendar days after the fiscal period) for review by the Fiscal Officer on the Analytical Ledger Review (ALR).

• Click on the # Accounts link to drill-down to the Analytical Ledger Review

and to view the applicable accounts.

MLR: Unreviewed Accounts

• The screen shot below is the drill-down from the Unreviewed Accounts

section on the MLR.

• Work with your Fiscal Officer(s) to have any accounts in this section

reviewed by them on the ALR as soon as possible.

MLR: Overdrawn Accounts

• Overdrawn Accounts is the second required section of the MLR and

includes Fiscal Officer name, Funding type, and the $ amount the account is in OD.

• You should contact the applicable Fiscal Officer(s) to determine why

account(s) is overdrawn and take the necessary steps to resolve the issue.

MLR: High Value Transactions

• The third required section of the MLR identifies any financial transactions at
• r above $5000 (default value)
• As previously mentioned, an amount other than $5K can be entered on the

query input screen.

• Click on the document number link in this section to access the

Transactions by Document (19) with more details

MLR: Budget to Actuals

• The fourth required section of the MLR identifies the appropriations and

expenditure/encumbrance balances and provides historical data from the same fiscal period last year; starts at the highest-level org (D or G) and then displays information for subordinate orgs

• Balances are for the Sub Fund Group Types indicated (e.g., Staff Salaries, Travel, Supplies

and Expense, etc.)

• Click on the dollar amount links to get more details on the Balance Summary (1)

MLR: SUB3 Summary

• The optional section of the MLR identifies the transactions recorded as “Supplies and

Expenditures”

• High Risk Transactions are also highlighted in this section…we’ll discuss this on the next

slide!

MLR: High Risk Transactions

The following will display as High Risk Transactions (if applicable) in the SUB3 Summary section:

• Consultants
• Gifts/Donations
• Honoraria
• Installment Payments
• Lease Payments
• Memberships
• Moving/Removal Expenses
• Non-cash awards
• Purchasing Card Billing
• Research Subjects
• Services – Casual Labor
• Services – Externally Purchased
• Services – Repairs and Maintenance
• Services – Other
• Stipends

MLR: Monthly Feed Summary

• The optional section of the MLR identifies the transactions involving campus recharge units
• Clicking on the dollar amount link accesses the Transaction Log (54) with more details

MLR: DV Summary

• This optional section of the MLR identifies High Risk KFS Disbursement Voucher (DV)

transactions.

• High Risk transactions are those DVs created with Object code 8000 or one of the

following Payment Reason codes:

• EDM (Employee Damage Payment)
• EER (Employee Reimbursement)
• HUM (Human Subject Payment)
• Payment Reason Code Trip Cash Advance (TCA) (DV auto-created by the MyTravel Pre-

Trip Request) is also included in the High Risk DV category

MLR: Acknowledge Review

Clicking the Acknowledge Review button indicates that the review has taken place and any follow-up action has been/will be addressed Report will then update to display your name (signature) and date and will display as Reviewed

MLR Best Practices

• Run the query using just the required Report

Options first (first 4 options) to keep the size of the report manageable and to keep it easier to see what needs to be reviewed.

• Once you are more familiar with the report,

experiment with Different Report Options! If you work with Contracts and Grants accounts, sorting by UC Fund, and/or Sub Fund Group/Sub Fund Group Type could assist in reviewing multiple accounts with similar “rules.”

Stay Informed!

• Visit the A&FS Ledger Review

Informational Page at:

• http://afs.ucdavis.edu/systems/ledger-

review/alr/mlr-details.html

• Sign up for the FIS user list at

http://afs.ucdavis.edu/resources/email- subscribe-form.html

Thank You for Your Time!