Review and Balance Fund-Level Statements and Budgetary Schedules with Rounding Adjustments

Important: Step 1 ensures the change is as expected. Step 2 reconciles the Fund Balance/Net Position between statements. Step 3 uses a non-Equity line to balance the sheet without disturbing the Equity you just fixed. If you skip ahead, a fix in one place can undo another.

Phase 1: Balancing Fund-Level Statements Walkthrough

Select Next to move through the guide. You can also zoom in and out of the image by selecting the Magnifying Glass in the bottom right-hand corner. You can view the full guide by selecting the External Link icon. 

Step-by-Step Instructions

Step 1 - Check the Beginning Balance, Change, and Ending Balance

1. To get started, select the I - Statement of Revenues, Expenditures, and Changes in Fund Balance under Governmental Funds.
2. Near the bottom of the table, find the Beginning Balance, Net Change and Ending Balance.
   • Tip: Collapse the rows at the top to make it easier to find the Fund Balance rows.
3. Expand the Fund Balances to see the breakdown between any formula calculations and adjustments made to these funds that affect the totals.
4. Expand all Fund columns to the lowest level.
5. Look at the Beginning Balance, Net Change, and Ending Balance all match what you expect for each fund.
6. If the Net Change is off, post a rounding adjustment to the lowest-level line inside Revenues or Expenditures until the Change is correct.
7. Repeat this process for the following statements before continuing to the next step.
   1. Proprietary Funds: I - Statement of Revenues, Expenses, and Changes in Net Position
   2. Fiduciary Funds: I - Statement of Changes in Fiduciary Net Position

Step 2 - Reconcile Fund Balance between the Balance Sheet and Statement of Revenues and Expenditures

1. After reviewing the Fund Balances, navigate to the Checks table view starting with the Governmental Funds.
2. Review the Rounding Cross Check for each fund.
   1. If you see all 0's, continue to Step 3. 
   2. If you see any numbers other than 0, first confirm the difference is really rounding and not caused by unmapped accounts. Then post the rounding adjustment to the Equity accounts on the Balance Sheet.

Step 3 - Balance the Balance Sheet

1. Within the same Checks table, review the Cross Check balance sheet row.
   1. If you see any numbers other than 0, first confirm the difference is really rounding and not caused by unmapped accounts. Then post the rounding adjustment to the Equity accounts on the Balance Sheet.

Phase 2: Rounding Budgetary Schedules (Budget vs. Actual) Walkthrough

Select Next to move through the guide. You can also zoom in and out of the image by selecting the Magnifying Glass in the bottom right-hand corner. You can view the full guide by selecting the External Link icon. 

Step By Step Instructions

On Budgetary Schedules, the most important thing is knowing which column you are rounding. An adjustment in the wrong column can make one column look balanced while creating a new difference in another, or distorting the reported variance.

Step 1 - Confirm the target column before you adjust.

Before making any adjustment, identify which column or metric the check is actually tied to (Original Budget, Final Budget, or Actual) so the rounding is applied in the correct place.

1. Within the Governmental Funds data model, select 1-Budget & Actual to view the table.
2. Navigate to the Fund Balance rows within the table.
   • Tip: Collapse the rows above until you get to the Fund Balances.
3. Identify to which column the difference is tied to: Original Budget, Final Budget, or Actual for each fund. 
   • Note: As a general rule, the target for Budgetary Schedules is the Actual column.

Step 2 - Post the rounding adjustment to the target column only.

1. Click Adjust to make the adjustment.
2. Create the rounding adjustment and enter the amount in the correct column (for example, Actual) on the Adjust screen. Save the adjustment and post when ready.

Important: Don't adjust the Variance column. The Variance column should not be adjusted directly, as it is a calculated field. It will self-correct once the correct rounding adjustment has been made to the Actual column.

Troubleshooting

Issue: I need to correct the Beginning Balance from the prior year.

Solution: Don’t overwrite it. The Beginning Balance pulls from last year’s Ending Balance. Instead, create two lines within the Beginning Balance line item: one that keeps the original formula, and a second that holds only the rounding adjustment. This keeps the formula intact and leaves a clear audit trail.

Issue: The Variance column on a Budgetary Schedule is off.

Solution: Don’t adjust Variance directly. Correct the Actual column and the Variance recalculates on its own.

Frequently Asked Questions (FAQs)

Q: What about rounding for Business-Type Activities?

A: Usually no rounding is needed for Business-Type Activities if your Proprietary Funds are already balanced and reconciled. If there is still a difference, fix it in the Proprietary Funds statements, not in the Business-Type Activities column.