ERROR CORRECTION

ERROR DETECTION PROCESS

1. Introduction
   
   For ease of understanding, all accounting transaction errors should be classified according to their nature and severity. The basic classification of errors is as follows:

• Accounting transaction errors directly detected by the system include transaction rejections, batching errors, table look-up exceptions, fund control and file control errors.
  
  
• Accounting transaction errors indirectly detected by the system include incorrect transaction amounts, improper use of valid mini-codes, incorrect usage of transaction codes, etc.
  

In many cases, what appears to be the first type of error is actually the second. The detection and correction process differs for the two types of accounting transaction errors. The following paragraphs describe the process for each.

2. Directly Detectable Errors
   
   This type of accounting transaction error is detected by STARS during the edit stage of system processing. This type of error has the following system characteristics:

• A series of codes and messages has been included as part of the system to permit easy identification and correction of errors.
  
  
• Error Transaction Register (CSA800) and an item correction procedure are used in correcting the majority of errors. For rejections, re- submission of the transaction is required for correction.

System detectable errors can be classified into three major categories: Rejection, Correctable and Warning. Errors within each category have common characteristics and are correctable in the same fashion. Section 12 Error Codes and Messages - Edit/Update Subsystem (STARS System Maintenance Manual) contains a complete list of the individual codes that can occur within each major category.

A further explanation of each category is presented below:

• Rejection Errors: These errors occur first in the system processing. They are the most fundamental type of error, because when they occur, the accounting transactions are rejected and are not entered into the system. To correct this type of error, the transactions must be corrected and re-entered into the system.
  
  
• Correctable Errors ('B', 'E', & 'F' Errors): These errors include Batch errors, Field and Table Look-Up errors, File and Fund Control errors, Error Correction Exceptions. A complete explanation follows.
  
  
• Batch errors (Series B): This error includes incorrect batch amounts and is the second type of check performed by the system. Transactions are not released until a batch is balanced; therefore, batch errors must be corrected in order to release the individual accounting transactions for processing.
  
  
• Field and Table Look-Up Errors (Series E): These errors involve the individual data element content of the transaction and document balancing. Where possible, the individual data elements for each transaction are edited for valid codes. In other cases, codes are field checked to ensure that they are all numeric, alphabetic, or alphanumeric.
  
  
• File and Fund Control Errors: These errors occur when the posting of an account transaction would cause a violation of a controlled amount in the appropriate master files. File control errors occur when the system can not find a record referenced by the transaction or a transaction attempts to create a record that violates file control rules.
  
  
• Warning type Errors (Series W): This type of error is not considered serious enough to reject the transaction, but should be called to management's attention.

3. Indirectly Detectable Errors
   
   Some errors are not directly detected by the system because they result from legitimate accounting codes being used incorrectly or from incorrect amounts. STARS codes such as agency code, subfund, mini-code, fiscal month, and major/minor object code are primary control elements. A transaction will be incorrectly posted to the STARS master files if a valid but inappropriate code or an incorrect amount appears on an input document. Similarly, the agency's accounting records could contain errors even if there are no errors in STARS.
   
   The only way such errors can be detected is for agency accounting personnel to perform regular monthly reconciliations between their agency's accounting records and STARS balances shown on STARS reports. Such reconciliations provide significant assurance that transactions are processed correctly both in the agency's accounting system and in STARS and that balances presented in the State's Comprehensive Annual Financial Report are proper.
   

To ensure adequate error detection and to satisfy audit requirements, such reconciliations must be:

• Performed at least monthly on a timely basis (i.e., shortly after month-end)
  
  
• Documented in writing in an easily understandable format with all supporting working papers maintained for audit purposes.
  
  
• Signed and dated by the preparer.
  
  
• Reviewed and approved in writing by an appropriate agency official other than the preparer.

Monthly reconciliations for revenues, expenditures, and ending cash balances must be performed at the level of detail in the Appropriation Act. In the past, some agencies have reconciled only ending cash balances. Reconciling only the ending cash balance does not provide sufficient assurance that receipts and disbursements were properly processed and that revenues and expenditures (or expenses) were correctly classified. Agencies with federal subfunds are required to perform monthly reconciliations between the CSA 467CM report (Trial Balance By Subfund, Project, and GLA) and the agency's records for each project and phase code.

Errors discovered through the reconciliation process must be promptly corrected in the agency's accounting records and/or in STARS as appropriate. If an error is detected in STARS, the correction will normally require that the agency prepare and submit to the Comptroller General's Office both: (a) a transaction reversal of the incorrect transaction, and (b) a corrected transaction.

Related topics:

TO: Error Correction Index