Deltek Insight 2010: Month-End Reconciliations Made Easy

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Deltek Insight 2010: Month-End Reconciliations Made Easy

  1. 1. GCS-220 Month-EndReconciliations Made EasyPresented by: Stacey McCarver © Deltek Systems, Inc.
  2. 2. Abstract• Month-end reconciliations are a necessary evil for all accountants. Attend this session and ease your pain and stress at month-end. We will analyze the GCS Premier key reports, utilities, and a model for reconciling the Contracts module to the General Ledger.© Deltek Systems, Inc.
  3. 3. Reconciling within GCS Premier• Timing• Reports to be reconciled• Main reconciliation points• Sample reconciliation© Deltek Systems, Inc.
  4. 4. Timing IS Everything!• Reconcile on a monthly basis – Don’t wait until end of fiscal year – Accounting period closing steps – Always reconcile the YTD column© Deltek Systems, Inc.
  5. 5. Getting StartedReports to be Reconciled:• Income Statement (I/S)• Contract Revenue Summary• Contract Cost Summary• Statement of Indirect Expenses (SIE)© Deltek Systems, Inc.
  6. 6. Income Statement to Contract Revenue Summary• Tie the Gross Profit from Operations on the I/S to the year-to-date Contract Fee on the Contract Revenue Summary (A) – The contract fee should be within .005% of the gross profit• Tie revenue on the I/S to revenue on the Contract Revenue Summary (F)© Deltek Systems, Inc.
  7. 7. Answers• Item A: – Income Statement Gross Profit from Operations: $23,982.77 – Contract Revenue Summary Year to Date Fee: $23,986.46• Item F: – Income Statement Year to Date Revenue: $689,384.07 – Contract Revenue Summary Year to Date Revenue: $689,384.07© Deltek Systems, Inc.
  8. 8. Income Statement to Contract Cost Summary• Tie indirect costs on the I/S to each indirect pool amount on the YTD Contract Cost Summary (B,C,D,E) – May be off up to .005% due to rounding• Tie direct costs on the I/S to direct costs on the YTD Contract Cost Summary (H,I,J,K,L,M,N) – Can do this cost by cost or in total – Should match exactly© Deltek Systems, Inc.
  9. 9. Answers• Item B: – Income Statement Year to Date Fringe Benefits: $60,212.71 – Contract Cost Summary Year to Date Pool Amount: $60,221.00• Item C: – Income Statement Year to Date Overhead : $143,320.80 – Contract Cost Summary Year to Date Pool Amount: $143,318.00• Item D: – Income Statement Year to Date Subcontract Handling: $4,053.66 – Contract Cost Summary Year to Date Pool Amount: $4,055.00• Item E: – Income Statement Year to Date G&A : $148,213.43 – Contract Cost Summary Year to Date Pool Amount: $148,201.00© Deltek Systems, Inc.
  10. 10. Answers Income Statement Contract Cost Summary Year to Date Total Direct Costs Year to Date Total Direct Costs• Total -Item N: $411,962.37 $411,962.00• Item- Description:• H- Direct Labor: $178,857.37 $178,857.00• I- Direct Travel: $ 42,273.00 $ 42,273.00• J- Direct Consultants: $ 55,022.00 $ 55,022.00• K- Subcontracts: $ 35,500.00 $ 35,500.00• L- Direct Materials: $ 93,587.00 $ 93,587.00• M- Other Direct Costs: $ 6,723.00 $ 6,723.00© Deltek Systems, Inc.
  11. 11. Income Statement to Contract Cost Summary• Reconcile the (over)/under applied indirect cost variance on the I/S to the (over)/under applied indirect cost variance on the YTD Contract Cost Summary (G)© Deltek Systems, Inc.
  12. 12. Answer• Item G: – Income Statement Over/Under Applied Cost $102,361.67 – Contract Cost Summary Year To Date Over/Under Applied Indirect Costs $102,361.00© Deltek Systems, Inc.
  13. 13. Income Statement and Statement of Indirect Expenses• Each indirect pool on the I/S should tie back to each pool on the SIE (B,C,D,E) – If it is your policy not to post an Inter-pool entry, the individual pools will not tie; however, the total for all the pools will tie – On the SIE, the amounts being allocated to higher tiered pools will need to be subtracted from the originating pool – May be off up to .005% due to rounding – The total is reconciling answer for Item O.© Deltek Systems, Inc.
  14. 14. Answer• Item B: – Income Statement Year to Date Fringe Benefits: $60,212.71 – Statement of Indirect Expenses Fringe Pool Amount: $70,034.03 – Less the amounts moved to other pools- Tiering© Deltek Systems, Inc.
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  16. 16. Item B - Fringe Reconciliation• Item B: – Income Statement Year to Date Fringe Benefits: $60,212.71 – Statement of Indirect Expenses Fringe Pool Amount: $70,034.03Total Fringe Cost - SIE pg.5 $70,034.03Total Fringe Base – SIE pg.6Less Amounts Applied:-OH Labor (10,551.37*33.67%) pg.7 3,552.13-Subcontractor (100.00*33.67%) pg.9 33.66-G&A Labor (7,762.21*33.67%) pg.11 2,613.16-B&P Labor (9,635.06 +1,124.93)*33.67% 3,622.37 $60,212.71© Deltek Systems, Inc.
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  18. 18. Item C – Company Overhead Reconciliation• Item C: – Income Statement Year to Date Overhead : $143,320.80 – Statement of Indirect Expenses Co Overhead Pool: $151,041.50Total Overhead Cost - SIE pg.7 $151,041.50Total Overhead Base – SIE pg.8Less Amounts Applied:-B&P 39 Labor (9,635.06*80.13%)-pg.7 7,720.70 $143,320.80© Deltek Systems, Inc.
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  21. 21. Item E – G&A Reconciliation• Item E: – Income Statement Year to Date G&A : $148,213.43 – Statement of Indirect Expenses G&A : $148,213.43Total G&A Cost - SIE pg.11 $148,213.43G&A per Income Stmt pg.2 148,213.43Total Cost Base PoolDoes not Allocate to other Pools© Deltek Systems, Inc.
  22. 22. Income Statement to Statement of Indirect Expenses• Tie the direct labor on the Income Statement to the direct labor base on the SIE (H) – If you have multiple overhead pools, the bases of all the overhead pools may need to be added together – 39-42 direct labor suffixes, detailed descriptions in Suffix Account File is key.• Indirect Costs from Income Statement (O) to SIE.• Total costs less G&A from the Income Statement should equal the total base for G&A on the SIE (P)© Deltek Systems, Inc.
  23. 23. Total Base for G&A PoolItem P: Total Costs from the Income StatementIncome Statement pg.2:Total Direct Costs $411,962.37Total Indirect Costs 355,800.60Direct Consultants (55,022.00)Subcontracts (35,500.00)Subcontract Handling (4,053.66)G&A Costs (148,213.43) $524,973.88Year to Date G&A Base pg.12: $524,973.88© Deltek Systems, Inc.
  24. 24. Troubleshooting Tips• Recompute CostsPost Revenue• Recompute the Statement of Indirect Expenses – Verify your processing steps – Inter-Divisional and Inter-Pool• Ensure the Statement of Indirect Expenses is not reporting any unabsorbed amounts – “Unabsorbed” are amounts that do not get applied – Tolerance level of .005% of base© Deltek Systems, Inc.
  25. 25. Troubleshooting Tips• Review the FS-Code Account Summary Report – Verify all accounts are pointed to the correct FS-Code• An unallowable indirect pool not being allocated. – Included on the Income Statement, but not on Contract Cost Summary• Cost of Money will always be a reconciling item.© Deltek Systems, Inc.
  26. 26. Questions?© Deltek Systems, Inc.

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