SLA Reclassification Entries - Email #1

May 16, 2017

This email summarizes information, instructions, and action plans to resolve the 11 identified Sub-Ledger Accounting (SLA) issues affecting the propriety of processing transactions between the Projects sub-ledger and the general ledger. In general, correcting these items involves following a 3-step approach for each of the 11 issues.

  1. Develop, test and implement system configuration changes to correct the processing on a go-forward basis.
  2. Develop, test, and post correcting transactions that will, in effect, nullify erroneous automated SLA system transaction processing; and post the transactions as originally intended, applying the desired configuration change logic (termed “re-class entries”).
  3. Reverse manual journal entries, if any, performed by various units as an interim work-around correction.

At this point, we have configuration fixes for the 11 SLA issues. These are in various stages of testing and implementation. Five of the SLA issues are at the implementation and re-class entry stage, and the others are soon to follow. Similar communications will be sent regarding the other six SLA issues when they are ready to be completed.

Our goal is to implement the configuration changes and post the re-class entries as soon as they are fully tested. We expect the first five, and possibly as many as seven, SLA issues will be posted for the April FY17 close scheduled for May 18. We expect the remaining 4-6 configuration changes and re-class entries to be implemented and posted within the next 7-10 days.

For public accounting and our own audit trail purposes, the re-class entries will generally be performed at a transaction level. Unfortunately, this may require subsequent re-work if you or your units took the initiative to correct any of the erroneous SLA processing. Our sincere apologies for any inconvenience this has caused. To mitigate this effort for you and your units, the Controller’s Office we will provide some assistance to reverse entries for you; especially if you have a substantial number of entries that need to be reversed. In this case, you will need to identify the entries and communicate them to us.

The Excel files provided include pivot tables, summarized by U-D-O levels, for you to evaluate the impact of the five SLA issues that are ready for completion. These are identified as SLA issues numbers 3, 4, 6, 7, and 10 (per the table included with this email). Please evaluate the impacts to your respective units and, if reversing manual journal entries are necessary, please either proceed to process these on your own with due propriety for either the April close or as soon as possible to ensure your year-to-date May results are as intended.

Actions being taken by the Controller’s Office

  • Our office needs to process the re-class entries at the transaction level to ensure we have a clean public accounting and internal audit trail.
  • To help you distinguish between journal entries made by the Controller’s Office or your unit, we will use a journal category of “RU SLA Reclass.”
  • We will host a Webinar on May 23 to review the SLA issues and corresponding re-class entries, and to answer your questions. We encourage you to join the session with other people on your team who may be responsible for making or tracking the reclassification entries. You will receive a separate email with details for the Webinar.
  • We will send separate communications with impact analyses and pivot tables detailing the journal entries for the remaining system accounting rules as we complete this work.

Action units should take

  • Review the attached files, which provide an overview of the re-class entries for SLA issue numbers 3, 4, 6, 7 and 10, and pivot tables for the correcting journal entries that the Controller’s Office will make.
  • Evaluate the impacts to your respective units. If you have already made entries to correct any of the 11 SLA items, then you will need to manually enter reverse journal entries. Please either proceed to process these on your own, with due propriety, by May 18 for either the April FY17 close or as soon as possible to ensure your year-to-date May FY17 results are as intended.
  • If you have a substantial number of entries that need to be reversed, then you will need to identify the entries by providing the unique journal batch number to the Controller’s Office. Please contact the Controller’s Office at uco@finance.rutgers.edu to request that we auto-reverse the transactions for you.

If you have questions about the attached pivot tables, please contact the Controller’s Office at uco@finance.rutgers.edu.

We appreciate your patience as we resolve this issue and thank you in advance for your assistance.

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