Financial reporting and system access reviews are important control activities required for external and internal audits. They provide assurance that operating results are complete, accurate, and valid, and that there are no material misstatements to the financial statements. Key controls are to be performed at the division level on a quarterly basis.
A CalPlanning Reporting report (GL Summary Monthly Comparative Actuals) and a Cal Answers General Ledger Compensation by Accounting Period Report should be used in performing the financial reporting review.
System access review (Identity Management) is to be performed within BFS.
Division Finance Leaders (DFLs) are required to:
- For the financial reporting review, upload the reports with explanations and comments to a Box share site by the end of the month following the previous quarter end. We will keep you posted on the due dates via the DFL weekly update email.
- For the system access review, approve system access reports in BFS by the end of the month following the previous quarter end. The due date will be included in the DFL weekly update message when the reports are available.
We will notify you when it’s time to perform this quarter’s controls via our regular weekly DFL Update email. It is required that all DFLs complete their review by the due date. There will be an escalation process which includes three email reminders and will ultimately result in the loss of BFS access for all employees within your division. To avoid unnecessary interruptions to your business process, please make sure to complete your reviews by the due date.
- Financial reporting review instructions
- System access review instructions
- Review escalation process information (PDF)
Relationship to other compliance and financial reviews
Separate from monthly compliance review
Financial reporting and system access reviews are separate functions from the monthly compliance review of individual contract and grant awards by research administrators and principal investigators in PI Portfolio and cannot substitute for the compliance review.
Separate from quarterly variance analysis and flash forecast
They are also different from the quarterly variance analysis and flash forecast processes facilitated by the Financial Planning & Analysis team.
The financial reporting review provides assurance that financial reporting of actual results is complete, accurate and valid, detects material misstatements for correction. The quarterly variance analysis and flash forecast allow divisions to course correct throughout the year, deliver transparent reporting, and improve the quality of actual, budget, and forecast data.
Learn more in the slides that Financial Accounting & Controls Director, Lisa Vanderfin shared at the June 2017 DFL Forum.
Questions about the financial reporting review controls should be emailed to the Financial Accounting & Controls team at firstname.lastname@example.org.
Questions about the system access review controls should be emailed to the BFS System Access team at email@example.com.