Page 50 - Participant Guide - Unanet GovCon Closing a Fiscal Period (2)

Troubleshooting Variances

If variances are found, then a more detailed reconciliation should be performed by
project. Run the Project Summary by Cost Element report which will show the data by
project. Use the same criteria described above for running this report. Compare this
report to the GL Summary (Trial Balance) report by Project, by selecting this option.
Possible Causes of Variances
• An INDIRECT GL account is mapped on a DIRECT Project Type (or vice versa).
• There are unmapped Expense Types to Cost Elements.
• Projects are missing a Cost Structure.
• The Cost Pool Calculation does not match Cost Structure indirect rate
formula/application.
• The calculated actual rates are not current/correct.
Revenue
In rare instances, journal entries to revenue may be made. As a best practice, revenue
GL accounts should be marked to require projects. If there are any Journal Entries
made to revenue, this is a potential opportunity for a reconciliation issue.

Direct Costs
Any journal entries or AP vouchers posted with no project associated will lead to a
reconciling item between the Project Ledger and the Income Statement.

Unallowable Direct Costs
Best practice is to create a Direct Unallowable Cost Element to map these expense
types into. This Cost Element should be presented separately on the JSR for ease of
reconciliation. In the Income Statement, these costs would be presented in an
"Unallowable Direct Cost" heading above gross margin as well.

Indirect Costs
Indirect costs, such as Fringe, Overhead and G&A are reconciled generally in total and
on a year-to-date basis each month. Make sure to run the JSR on actual rates.

LESSON 6: RECONCILIATIONS
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