Policy 3100: Fiscal Responsibility
Subject: Fiscal Responsibility
Virginia Polytechnic Institute and State University
Policy and Procedures
Date: February 28, 1999
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.
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
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.
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.
6. Approval and Revisions
Approved February 28, 1999, by Vice President for Finance and Treasurer,
Raymond D. Smoot, Jr.