Foundation Reconciliation
Use the OH Foundation Reconciliation page to calculate and reconcile the retirement benefit amounts paid for employees by state foundation funds. This feature compares employee SERS (School Employees Retirement System) and STRS (State Teachers Retirement System) board-share deductions from payroll with the actual foundation amounts received and automatically creates batch journal entries to correct any differences.
Menu path
From the Fund Accounting menu, select State. From the State - OH menu, select Foundation Reconciliation.
Prerequisites
Ensure that the following prerequisites are met before using the Foundation Reconciliation option:
OH Retirement Deductions
On the OH Retirement System Deductions page:
Deduction codes must be configured with B - Board Share selected in the Employee or Board field.
SERS deduction codes must be configured with 1 - SERS - School Employees Retirement System selected in the Retirement System field.
STRS deduction codes must be configured with 2 - STRS - State Teachers Retirement System selected in the Retirement System field.
Codes with Exclude From Retirement selected are excluded from calculations.
Organization Chart
Organizations on the Organization Chart page must have valid fund assignments for the current fiscal year.
Detail Distribution Records
Payroll must be processed with detail distribution records (detdist) containing the Board Share deduction amounts.
Chart of Accounts
The SERS and STRS Offset Account codes must be configured on the Funds/Accounts tab on the Fund Accounting Profile page.
Processing Logic
After selecting Create on the OH Foundation Reconciliation page, the following process is performed twice, once for SERS deduction codes and once for STRS deduction codes:
Step 1: Data Selection
The program selects records from the detail distribution table (detdist) where:
The pay date matches the entered pay end date(s).
The record type is 'F' (fringe/deduction record).
The amount is not zero.
The record is not a redistribution (redist <> 'R').
The deduction code is configured with B - Board Share selected in the Employee or Board field on the OH Retirement System Deductions page.
Voided Check Handling: The program also includes voided checks (void_man = 'V') from prior periods/years that fall within the selected pay date month. The distribution amounts for voided checks are subtracted from the current batch journal entry.
Step 2: Grouping and Calculation
The selected records are grouped by organization and account. For each unique organization/account combination, the program calculates the foundation reconciliation amount using the following formula:
Distribute Amount = (Account Total / Payroll Total) × (Payroll Total - Foundation Amount)
Where:
Account Total = Sum of Board Share deduction amounts for the specific organization/account combination.
Payroll Total = Sum of all Board Share deduction amounts for SERS or STRS.
Foundation Amount = The entered foundation amount (SERS or STRS).
Step 3: Journal Entry Creation
Based on the result of the calculation:
Condition | Result | Journal Entry |
|---|---|---|
Payroll Total = Foundation Amount | Zero | No journal entries are created. |
Payroll Total > Foundation Amount | Positive | Credit the expenditure accounts and debit the foundation offset account. |
Payroll Total < Foundation Amount | Negative | Debit the expenditure accounts and credit the foundation offset account. |
The fund for each journal entry is retrieved from the Organization Chart page based on the organization key.
Step 4: Rounding Adjustment
If the sum of the calculated distribution amounts does not equal the difference between the payroll total and the foundation amount (due to rounding), an adjustment is applied to the last record processed to ensure the totals balance exactly.
Example: Positive Result (Payroll > Foundation)
Expenditure Account | Payroll Amount |
|---|---|
Payroll Expenditure Account 1 | $500.00 |
Payroll Expenditure Account 2 | $800.00 |
Payroll Expenditure Account 3 | $200.00 |
Payroll Summed Amount | $1,500.00 |
Foundation Entered Amount | ($1,000.00) |
Result | $500.00 |
Three journal entries are created using the following calculation to credit the expenditure accounts:
Account | Calculation | Credit Amount |
|---|---|---|
Expenditure Account 1 | $500.00 / $1,500.00 × $500.00 | $166.67 |
Expenditure Account 2 | $800.00 / $1,500.00 × $500.00 | $266.67 |
Expenditure Account 3 | $200.00 / $1,500.00 × $500.00 | $66.66 (Adjusted for rounding to ensure total equals $500.00.) |
A corresponding journal entry is created to debit the foundation offset account for the total amount ($500.00).
Example: Negative Result (Foundation > Payroll)
Expenditure Account | Payroll Amount |
|---|---|
Payroll Expenditure Account 1 | $500.00 |
Payroll Expenditure Account 2 | $800.00 |
Payroll Expenditure Account 3 | $200.00 |
Payroll Summed Amount | $1,500.00 |
Foundation Entered Amount | ($2,000.00) |
Result | ($500.00) |
Three journal entries are created using the following calculation to debit the expenditure accounts:
Account | Calculation | Debit Amount |
|---|---|---|
Expenditure Account 1 | $500.00 / $1,500.00 × $500.00 | $166.67 |
Expenditure Account 2 | $800.00 / $1,500.00 × $500.00 | $266.67 |
Expenditure Account 3 | $200.00 / $1,500.00 × $500.00 | $66.66 (Adjusted for rounding to ensure total equals $500.00.) |
A corresponding journal entry is created to credit the foundation offset account for the total amount ($500.00).
Post-Processing
Journal entries are written to the djournal table. After processing completes:
The JE number is recorded in the je_nums table to prevent reuse.
A Foundation Reconciliation Detail report is generated showing:
Detail records by employee, organization, account, and deduction code.
Summary of reconciliation amounts by organization and account.
SERS and STRS totals with distributed amounts.
Notation for any voided checks included in the calculation.
Use the standard Batch Journal Entries option to review and post the journal entries created by this process.
Generate Foundation Reconciliation Journal Entries
On the OH Foundation Reconciliation page, refer to the Field descriptions and enter or select the Foundation Reconciliation criteria.
Select Create, and then Yes.
Save the file and select OK.
Navigate to the folder containing the report file.
Inspect the file and ensure that the required Foundation Reconciliation journal entries were created.
The default file name is OH Foundation Reconciliation.pdf.
Field descriptions
Depending on whether User Assigned JE Number is selected on the System Options tab of the Fund Accounting Profile page, the fields displayed on the OH Foundation Reconciliation page will differ. If the Fund Accounting Profile is not set up to auto-assign journal entry numbers, the Journal Entry Information section will include a Journal Entry Number field. If the Fund Accounting Profile is set up to auto-assign journal entry numbers, this field is not displayed, and the journal entry number will be auto-assigned.
The OH Foundation Reconciliation page consists of the following sections:
Journal Entry Information section
The following table describes the fields in the Journal Entry Information section on the OH Foundation Reconciliation page.
Field | Description |
|---|---|
Year | The fiscal year for the journal entry. Defaults to the Year on the Fund Accounting Profile page. |
Period | The accounting period for the journal entry. Defaults to the Period on the Fund Accounting Profile page. |
Journal Entry Number | The journal entry number for the reconciliation entries. Auto-generated if system-assigned JE numbers are configured. This field is displayed when the Fund Accounting Profile is not set up to auto-assign journal entry numbers. |
Control Number | The batch/control number to identify this set of journal entries. |
Description | A description for the journal entry. Defaults to YYMMFOUNDRECON format (e.g., "2601FOUNDRECON"). |
Foundation Information section
The following table describes the fields in the Foundation Information section on the OH Foundation Reconciliation page.
Field | Description |
|---|---|
Pay Ending Date(s) | The pay ending date(s) to include in the reconciliation. Supports date ranges and multiple dates. To enter multiple dates, use a colon (:). For example, 03/27/2023 : 04/28/2023. |
Check Issue Date(s) | The check issue date(s) to filter records when multiple pay runs have the same pay ending date but belong to different months. Supports date ranges and multiple dates. To enter multiple dates, use a colon (:). For example, 03/27/2023 : 04/28/2023 Voided checks are not included if they were voided in the current month. If a check from the previous month is voided in the current month, the check amount is subtracted. |
SERS Foundation Amount | The SERS foundation amount received from the state for the month being reconciled. |
SERS Offset Account | The account number used to offset the SERS adjustment (e.g., a liability or fund balance account). Must be a valid account in the Chart of Accounts. |
STRS Foundation Amount | The STRS foundation amount received from the state for the month being reconciled. |
STRS Offset Account | The account number used to offset the STRS adjustment. Must be a valid account in the Chart of Accounts. |
