Department Key Controls
All campus departments are required, at the L4 level, to perform certain key controls over financial reporting. They must also document the fact that they performed the key controls. This requirement to perform and document key controls does not obviate the need to perform all other existing departmental internal controls over financial reporting.
A "key" control is a control that, if other controls fail, can be relied upon to detect or prevent a material misstatement of the financial statements. The key controls for the Berkeley campus that must be carried out by all departments at the L4 level are:
- General Ledger Verification
- Overdraft Fund Review
- Payroll Expense Review
- Identity Management (User System Access) Review
- Physical Inventory
To help departments document the performance of the key controls, the Controller's Office has developed a Key Controls Checklist. Learn how to obtain and use the checklist.
General Ledger Verification (All Funds)
Each month actual revenues and expenses are monitored against budgets via BAIRS summary reports, and the GL Transaction Verification detail report is reviewed by the department.
General Ledger Summary Review
Actual revenues and expenses are monitored against budgets via BAIRS Summary Reports, such as the GL Sum by Account L4 Budsum, GL Sum Monthly Expense, or GL Sum Two Year Actuals Comparison. Department reviews reports monthly for general propriety and accuracy. On comparison reports (monthly or annual), unexplained variances based on expectations (e.g. budget or prior period) are investigated to ensure accuracy.
General Ledger Transaction Verification Review
Department reviews the GL Detail Transaction Verification report (e.g. cash deposits, bluCard, etc.) on a monthly basis for general propriety and accuracy. Department follows up on unusual items including verifying amounts to supporting documentation and resolving exceptions.
Overdraft Fund Review
Department reviews funds in overdraft status (expense > authorized budget) via BAIRS Summary Reports, such as GL Sum Fund Overdraft, and takes follow-up action.
Payroll Expense Review
Detailed payroll expenses (PPP5302 in PageCenter, BAIRS GL Customer Report account codes 50000-51999, or BIS PPS Expense Detail Curr) are reviewed each month by the department for general propriety and to validate the accuracy of the charges. For example, departments review the accuracy of employee names and pay rates, and/or for possible other key entry errors.
Identity Management (User System Access) Review
Department reviews system access reports quarterly. Department determines if an employee's access and roles are appropriate for his or her current job responsibilities and provides for the proper segregation of duties within the unit. Department follows-up on deletions or other updates as needed via the Systems Access Request Application (SARA). The control should be completed within 30 days from the date of report issuance.
Physical Inventory is conducted by the department every two years. After the inventory is performed, the BET920 is signed and returned to Equipment Management.