In This Section
Because the budget process within the Berkeley Financial System does not require a second individual to review transactions before they are effected, departments are required to develop and follow a process of reviewing budget journals after they are submitted. The department's policy should be on file and should be renewed with each change in a chair or manager. The post-audit reviewer should be the person who has the authority to manage the resources of the unit, contract or grant. Reports of budget journals are available for printing, signature, and retention by the department.
Details and Guidelines
Official campus guidelines for the post audit review of temporary and permanent budget journals are available at the Budget Post Audit Guidelines page of the BFS website. Please review these guidelines carefully. The following are some highlights:
Unlike AP/PO and financial journal transactions, where distinct preparers and reviewers are required, budget journals (transfers of appropriations) in both the temporary and permanent budgets are prepared and posted on-line by a single authorized individual. Because the on-line process has only one step, an off-line post audit secondary review is required. ("Post audit" means that the secondary review will be handled after the transfer has been posted to the ledger.) Note that financial and budgetary accountability have not changed since the advent of BFS. Both departments and deans are accountable for managing and monitoring budgetary activity in accordance with University policy and procedures.
There are several reports available to facilitate the post audit review process.
Summary reports are available in BAIRS I: Reports: GL/Other Reports; TBudg Rpt: UrBudJrn-Post Aud Jrnl Act/Org. Reports can be selected by a number of criteria including a range of processing dates, the operator I.D. of the budget processor, the individual organization code or range, and the fund or range. Units with a large volume of budget transactions each day or week may find this the most useful report. These reports will soon also be available in BAIRS 2. The post audit review should take place within the month that the budget journal has been posted. This ensures that any corrections can be posted within the same month to correct the journal in error. At the end of the month, a multi-journal report can be printed and submitted for review. If there are many journals to review, departments may consider running the summary report several times a month to allow the reviewer time to examine each journal for accuracy, completeness and compliance to University, L&S, departmental or agency policy.
Single Journal Report:
Reports for single journals are available from either the BFS production system or the BAIRS I reporting system: BFS production: Reports: GL/Other Reports; TBudg Rpt: UCBT0008-Post Audit Sngl Jrnl or BAIRS I: Reports: GL/Other Reports; TBudg Rpt: UCB T0008-Post Audit Singl Jrnl. If a department processes budget journals only a few times per month or per quarter, the single journal post audit report may be more useful. As each journal is prepared, the journal preparer can print the report and immediately obtain the appropriate signature to complete the post audit review. Note the single budget journal reports will not be converting to BAIRS 2. Staff will be expected to print those reports off the BFS production database.
Departments should have on file a written, up-to-date policy stating who has been delegated authority to perform the post audit review of budget transfers and how frequently this review will occur. In a department, this reviewer will normally be the Chair, Principal Investigator, or Manager, someone who has not prepared the budget journal and who has authority and responsibility to manage the resources of the unit or the particular fund. The post audit review should take place within the month the journal has been posted to allow for a reversal before month close if such a reversal is necessary.
Following is an example of such a policy:
Policy for Post Audit Reviews of Temporary and Permanent Budget Journals Department of XXX
Before the end of each month (name of person who will produce report) will produce a summary report of temporary and permanent budget transfers (except those pertaining to contracts and grants) prepared within the department during that month to be reviewed and signed by Chairperson ___________.
For each contract and grant, a single journal report will be produced by the appropriate fund administrator at the time of its posting to be reviewed and signed by the responsible Principal Investigator. All budget journals will be reviewed by the end of the month in which they are posted.
(signed) ________________ (Chair)
Units should be aware that the Deans' Office and the Chancellor's Budget Office staff, in meeting their own accountabilities, have the authority to reverse budget journals if they determine that the activity is not in compliance with University, L&S, or agency policy.
Departments are required to keep the printed post audit reports on file for audit purposes. In general, the time period for retention will vary depending on the fund source used in the journal, e.g., state or extramural funds. For extramural funds, departments are accountable for conformance with the requirements of both the funding agencies and the University.
For further information regarding the UC policy on financial accountability, the PDF UCOP Accounting Manual, section on delegation of authority--signature authorization D-224-17 will be helpful. If you have any questions or concerns, please contact your divisional budget officer.