IU Financial System Reports and Procedures
Review the below IU financial system reports and procedures related to account stale and negative balances:
Account Stale Balance Report and Instructions
The account stale balance report was introduced to help locate and investigate potential stale asset and liability balances within the financial statements. Stale balance analysis is an important process because it helps fiscal officers and users of the financial statement pinpoint and isolate issues on the balance sheet which have a direct impact on the income statement and cause a misrepresentation of the overall financial position of the entity. As a general overview, stale balances are assets or liabilities whose balances have not changed for an extended period of time. The account stale balance report looks at all assets and liabilities. Stale balances must be researched, investigated, explained, and adjusted to ensure the balance sheet accurately reflects assets and liabilities. Review the account stale balance report instructions prior to running the report. Both the instructions and the report can be found by clicking the below links:
Account Negative Balance Report and Instructions
The account negative balance report was introduced to help locate and investigate negative asset, liability, revenue, and expense balances within financial statements. Negative balance analysis is an important process because it helps fiscal officers and users of the financial statement pinpoint and isolate issues on the balance sheet and income statement. Without reviewing for negative balances, both the income statement and the balance sheet may include balances that misrepresent the overall financial position of the entity. Reviewing for negative balances also assists entities to identify potential issues such as negative cash flows, non-collection on receivables, etc. Negative balances need to be investigated and adjusted to ensure assets and liabilities are properly and accurately reported on the balance sheet according to Generally Accepted Accounting Principles (GAAP). Review the account negative balance report instructions prior to running the report. Both the instructions and the report can be found by clicking the below links: