Policy 3100: Fiscal Responsibility

No. 3100
Subject: Fiscal Responsibility
Rev.: 0
Virginia Polytechnic Institute and State University  
Policy and Procedures
Date: February 28, 1999

1. Purpose

Internal controls include organizational plans and procedures that are designed to verify the accuracy and reliability of accounting data and other management information.

Managers (including but not limited to department heads and center directors) are responsible for conducting their business activities in a manner consistent with good internal controls. Adequate discharge of this responsibility requires that managers monitor and review revenues and expenditures recorded in the funds (accounts) assigned to them.

2. Policy

As part of their responsibility to monitor and review revenues and expenditures recorded in the funds assigned to them, managers shall perform monthly reviews of financial transactions. The Controller's Office does not prescribe how the reviews are to be performed; however, a procedure must be in place to ensure the monthly reports received from the finance system reflect all items the manager authorized for payment, that no inappropriate expenditures exist, and that revenues collected for the operation have been deposited (if applicable).

Managers are strongly urged to complete their reviews soon after the close of each month so that corrections can be completed within sixty days of the original posting in the accounting system. The manager can delegate all or a portion of this monthly review to others, but the manager is responsible for the adequate performance of the monthly review.

In addition, the fact that the monthly review was performed must be documented by certifications that are signed by the person or persons who performed the initial reconciliation as well as by the manager responsible for final review of the funds.

3. Procedures

This policy applies to all units and all managers within the university regardless of the source of funds used in support of that unit. Procedures to assist in compliance with this policy can be found on the Controller's Office home page.

4. Definitions

5. References

6. Approval and Revisions

Approved February 28, 1999, by Vice President for Finance and Treasurer, Raymond D. Smoot, Jr.