Effective Date: February 09, 2017
Expiration Date: February 09, 2025
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1.1.1 Proper preparation of and adequate support for journal vouchers (JV) are important to ensure that JVs accurately record financial events and that detailed audit trail documentation exists. These actions are the joint responsibility of the Agency Office of the Chief Financial Officer (OCFO), and Centers' OCFO personnel. The accurate and timely preparation of financial statements and other financial reports is often dependent upon accurate, timely, and fully supported JVs. NASA's Agency OCFO and each of the Centers shall fully comply with each of the following requirements:
a. Internal controls.
b. Types of JVs.
c. Supporting documentation.
d. Approval thresholds.
e. Management oversight and review.
220.127.116.11 For the purposes of this NPR, a transaction is considered to be a JV when:
a. The general ledger accounts to be debited and credited are selected and entered by the user, i.e., embedded system logic or system validations are not used to determine the general ledger accounts to be posted.
b. A transaction is corrected with a regular core financial system transaction where the general ledger accounts to be debited or credited are selected and entered by the user.
c. Transactions meeting the criteria in 18.104.22.168.a and/or 22.214.171.124.b above are reversed.
126.96.36.199 Automated distributions of summary amounts, such as the distribution of payroll charges provided by the Department of Interior based on the automated labor distribution information, are not within the scope of this chapter.
1.2.1 Operational Controls. Operational internal controls will be in place to ensure the proper recording of JVs. JVs may be prepared at the NASA Center level or at the Agency level. The Center Chief Financial Officer (CFO) and the Director of the NASA Shared Services Center (NSSC) are responsible for developing Center-level operating procedures that ensure full compliance with the requirements of this chapter.
188.8.131.52 General Requirements. All JVs will be:
a. Sequentially numbered and maintained in a summary log of all JVs that identifies the JV numbers and dollar amounts. The log will reference the core financial system document number that was recorded for the JV, the core financial system document that was corrected (where applicable), and the source document information supporting the entry.
b. Adequately documented to support the validity and amount of the JV transaction as described in Section 1.5 of this chapter.
c. Reviewed and approved before posting at the appropriate level of management by the Agency Deputy Chief Financial Officer (DCFO) or designee or Center CFO or designee, as specified in Section 1.6, to ensure proper recording of entries at the posting account, appropriation, and fund levels.
d. Annotated with the name, title, date, organization/office, and signature of both the preparer and the approver. In an electronic environment, the name, title, and organization/office may be represented by a user identification (ID). A separate table will be maintained to correlate user ID to identifying information.
184.108.40.206 Segregation of Duties. In order to maintain the proper segregation of duties, the functions of JV preparer and JV approver are required to be performed by different individuals.
1.3.1 Agency DCFO or designee shall:
a. Review and approve or disapprove all JVs over $100 million that are either generated at the Center or at the Agency level after concurrences by the Center and/or Agency officials, as established in Table 1-1, Approval Thresholds for Center Generated JVs, and Table 1-2.
b. Review and discuss with the Agency Deputy Chief Financial Officer for Finance (Agency DCFO(F)), and approve or disapprove all prior period adjustment JVs.
1.3.2 Agency OCFO, Director for Financial Management Division (FMD), or in the absence of the Director for FMD, the Deputy Director for FMD shall:
a. Review and approve or disapprove all JVs over $10 million and up to $100 million that are generated at the Agency level after applicable concurrences, as established in Table 1-2, Approval Thresholds for Agency Generated and Posted JVs.
b. Review and approve or disapprove all JVs over $50 million and up to $100 million that are prepared at the Center level, after the applicable concurrences, as established in Table 1-1.
1.3.3 Agency OCFO, FMD Branch Chiefs shall:
a. Review and approve or disapprove all JVs up to $10 million that relates to their branch only and are prepared and posted at the Agency level.
b. As needed, request Agency-level JVs and supporting documentation from the Center CFOs.
c. Review the Agency-level JVs and supporting documentation submitted by the Center CFOs that relate to their branch for completeness and accuracy.
1.3.4 Center CFO or Center DCFO(F) when acting in the Center CFO's absence shall:
a. Together with the Center Branch Chief responsible for reporting, review and concur or nonconcur on any Center JV exceeding $100 million and submit it to the Agency OCFO for approval by the DCFO or designee.
b. Together with the Center Branch Chief responsible for reporting, review and concur or nonconcur on any JV exceeding $50 million and up to $100 million and submit it to the Agency OCFO for approval by the Agency OCFO, Director for FMD, or Deputy Director for FMD.
c. Review and approve or disapprove all Center JVs exceeding $10 million and up to $50 million that have been concurred on by the Center Branch Chief responsible for reporting, in accordance with Table 1-1, Approval Thresholds for Center Generated JVs.
d. Together with the Center Branch Chief responsible for reporting, review and concur or nonconcur on all Prior Period Adjustment JVs in any amounts and submit them to the Agency OCFO for DCFO's or designee approval.
e. Together with the Center Branch Chief responsible for reporting and staff, prepare Agency-level JVs and supporting documentation as requested by the Agency OCFO, FMD Branch Chief.
1.3.5 Center Branch Chief responsible for reporting shall:
a. Review and approve or disapprove all Center JVs equal to or less than $10 million.
1.4.1 NASA has two primary types of JVs: (1) correcting entries and (2) source entries. All JV entries should be processed and recorded in the core financial system either through interfaces or using system user IDs.
1.4.2 Correcting Entries. Correcting entry JVs adjust for errors detected subsequent to posting, including errors identified during the financial statement reporting and review process. Correcting entry JVs should both reverse the incorrect entries and record the correct amount, and, where feasible, the JV entry should be linked to the original transactions that were corrected.
1.4.3 Source Entries. Source entry JVs record those accounting entries and accruals that, due to system limitations or timing differences, have not been otherwise recorded, generally at month-end closing and year-end processing, and may subsequently be reversed in the next period. Source entry JVs also may derive from information provided through data calls or from external agency sources. Sources entry transactions are not considered a JV transaction under the following circumstances.a. A transaction code in the system is used to determine the general ledger accounts to be debited/credited.
b. System validations for certain document types are in place to restrict the posting of transactions that would otherwise be classified as a JV transaction.
1.4.4 Sub-groupings. Both correcting and source entry JVs are further subdivided into audit-recommended JVs and customer-requested JVs.
220.127.116.11 Audit-Recommended JVs.
a. Management Review.
(1) If, as a result of their audit, auditors recommend a JV adjustment be made, the auditors shall provide work papers and other relevant information to support the recommended JV adjustment.
(2) The JV approving official shall perform an analysis of the recommendation using the auditors' work papers and other relevant information to determine if the recommended adjustments should be made.
(3) If the JV approving official identified in Section 1.6 determines that the auditors' recommended adjustments are required, a JV will be prepared. If the JV approving official determines that the audit recommended adjustments are not required, no adjustment will be made. All auditors recommended adjustments will be approved by the Center CFO or Center DCFO(F) and the Agency OCFO, Director for FMD.
b. Any determination regarding audit-recommended JVs discussed in 18.104.22.168a. will:
(1) Identify the audit recommendation serving as the basis for the actions taken.
(2) Document management's rational for accepting or rejecting the auditor's recommendation and include all supporting documentation.
22.214.171.124 Customer-Requested JVs. When NASA personnel prepare proposed JVs to enter adjustments or corrections, the approving officials at NASA Centers or Agency OCFO shall determine that they comply with this JV preparation guidance.
1.4.5 JV Reversal Transactions. When JVs are reversed, the transactions will be prepared, approved, recorded, and documented in accordance with all of the requirements applicable to the original JV except when the JVs are reversed automatically as part of the routine (monthly or quarterly) JV reversal process. In those instances, documentation and approval for the original JVs is considered the documentation and approval for the reversing entry.
1.5.1 Documentation. Proper documentation, in either hard copy, electronic form, or both is necessary to support all JV entries. This documentation will include all information needed for the approving official and auditors to clearly understand the reason for the JV, any applicable authoritative guidance, and relevant information and data supporting the JV entry. The supporting documentation for each JV will include the calculation of dollar amount(s) on the JV, validation of JV entries and ending balances, reference to other applicable supporting documentation, and the basis for any subsequent reversals.
1.5.2 Types of JV Supporting Documentation. The specific types of JV supporting documentation are listed as follows:
a. Correcting JVs. Evidence to support Correcting JVs discussed in 1.4.2 will include specific documentation of the original incorrect entry, an explanation for the discrepancy or error in the original entry, and documentation supporting the correct amount.
b. Source JVs. Evidence to support Source JVs discussed in 1.4.3 will include specific documentation obtained through data calls, internal-NASA data, or external sources, and a narrative explaining the basis for the JV entry.
c. Audit JVs. Evidence to support either an "authorized official" or "auditor identified" audit JV will include a detailed listing of identified errors, a narrative explanation of the errors and why the correcting entry is necessary, as well as related source data and analysis to support the JV entry.
d. Reversing Entries for Prior Reporting Period. When monthly or yearly accruals or correcting entries have been made for reporting purposes, they may need to be reversed in the following reporting period. Reversing JVs will be fully documented as required in Section 1.5.1 except for automated reversal JVs described in Section 1.4.5.
1.5.3 Approver Review.
126.96.36.199 The JV approving official shall review and perform any related analysis of supporting documentation for JVs to ensure the adjustment is fully supported and in accordance with this JV preparation and approval guidance.
188.8.131.52 When the JV approving official has identified errors through analysis, reasonableness checks, quality control procedures, subsequent activity occurring after a period closes, or other means, the JV should be returned to the preparer for correction.
1.6.1 Journal Vouchers Prepared and Posted at the Center Level.
184.108.40.206 Approval of a JV also constitutes acceptance of its supporting documentation. The organizational level within the Center or NSSC, at which JVs are approved, varies by the dollar amount of the voucher as shown by the following table.
Table 1-1, Approval Thresholds for Center Generated JVs
|JV Absolute Dollar Amount||JV Approving Official|
|0 to $10 million||Center Branch Chief (Reporting) approves.|
|Over $10 million to $50 million||Center Branch Chief (Reporting) concurs and Center CFO1 approves.|
|Over $50 million to $100 million||Center Branch Chief (Reporting) and Center CFO1 concurs. Agency OCFO Director for FMD2 approves.|
|Over $100 million||Center Branch Chief (Reporting) and Center CFO1 concurs. Agency OCFO Director for FMD2 concurs. Agency OCFO Associate Deputy CFO approves.|
|Prior period adjustments -- JVs that are adjusting beginning balances (should be rare) -- Any amounts.||Center Branch Chief (Reporting) and Center CFO1 concurs. Agency OCFO Director for FMD2 concurs. Agency Associate Deputy CFO approves.|
1 Or Center DCFO(F) when acting in the Center CFO's absence.
2 Or OCFO Deputy Director for FMD in the Director's absence.
220.127.116.11 Within each of the foregoing thresholds, other approval thresholds with lower dollar values than those specified may be established to accommodate the organizational level of those preparing the JV. The Center CFO shall designate in writing the approval threshold structure--dollar thresholds and position of approving officials within the Center. In the event that the approval authorities listed above are delegated to an individual other than the one identified, that delegation will also be documented in writing and signed by the Center CFO.
1.6.2 Journal Vouchers Posted at the Agency Level.
18.104.22.168 The Agency OCFO, FMD, Data Analysis Branch Chief in coordination with the External Reporting Branch Chief shall, as needed, request Centers CFOs submit JVs that will be posted at the Agency level. These JVs will be submitted with all applicable supporting documentation and approvals as described in Section 1.5 above.
22.214.171.124 Upon receipt of the requested JV, the FMD, Data Analysis Branch Chief in coordination with the External Reporting Branch Chief shall review the supporting documentation for completeness and the JV for accuracy. When the JV is determined to be accurate and all required documentation is present, the Branch Chiefs shall forward the JV to the FMD Director or his/her designee for concurrence and/or approval in accordance with Table 1-1, Approval Thresholds for Center Generated JVs.
1.6.3 Journal Vouchers Prepared and Posted at the Agency Level.
126.96.36.199 When JVs are prepared that are posted at the Agency level, they will be approved in accordance with the thresholds established in the Table 1-2 and supported by supporting documentation as described in Section 1.5. prior to posting. Examples of JVs prepared and posted at the Agency level include JVs to record imputed financing costs, fund balance with Treasury, and net outlays.
Table 1-2, Approval Thresholds for Agency Generated and Posted JVs
|JV Absolute Dollar Amount||JV Approving Official|
|0 to $10 million||Agency OCFO, FMD Branch Chief approves.|
|$10 million to $100 million||Agency OCFO, FMD Branch Chief concurs. Agency OCFO, Director for FMD1 approves.|
|Over $100 million||Agency OCFO, FMD Branch Chief, and Agency OCFO Director for FMD1 concurs. Agency Associate Deputy CFO approves.|
|Prior Period Adjustments -- Any amounts||Agency OCFO, FMD Branch Chief, and Agency OCFO Director for FMD1 concurs. Agency Associate Deputy CFO approves.|
1 Or OCFO Deputy Director for FMD in the Director's absence.
1.7.1 Managerial Controls. Adequate managerial internal controls will be maintained at each level of management to ensure proper oversight of JV preparation.
188.8.131.52 The Center CFOs and the Director of the NSSC shall ensure the validity and accuracy of the JVs processed as part of their normal monthly financial management monitoring process by ensuring that adequate documentation exists to support the JV entry before it is recorded.
184.108.40.206 All corrections made by the Agency Applications Office (AAO) or by the Agency OCFO on behalf of the Centers or Agency OCFO are subject to this process. The AAO and/or the Agency OCFO shall only make corrections/adjustments once this documentation is received. Copies of the documentation of the corrections will be attached to the service request and originals maintained in the Centers' logs and records. Service requests will be established for activities performed either by the AAO or the Agency OCFO.
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