Ledger Review

GLRS - Statistical Sampling

Note: This page discusses the General Ledger Review System, which is the system being used by UC Davis for ledger review through June 2015.  Starting with the July 2015 ledgers, a new Ledger Review process will be used at UC Davis.

Statistical Sampling is a tool that takes all transactions less than $5000, randomly selects a portion of that population, and requires only that portion be reviewed, rather than requiring a full review of all items under $5000. An option is provided to specify document types, origin codes, or object codes that could be excluded from statistical sampling (see Plans for details).

Departments should not use statistical sampling if they feel that their internal controls are not adequate to ensure accuracy, appropriateness and compliance when processing transactions. Instead, a full review of the general ledger should be performed.

Statistical sampling can reduce the time needed to review ledgers. The larger the population of transactions under $5000, the fewer the transactions in proportion to that population that are required for review. For example, if your ledger has 300 transactions under $5000, statistical sampling selects 156 transactions. If your ledger has 1,500 transactions under $5000, statistical sampling selects 186 transactions.

All transactions greater than or equal to $5000 and those excluded from statistical sampling require a full review.

It is a good idea to exclude from statistical sampling those transactions that are likely to be invalid or that should be reviewed more closely (e.g., General Ledger Interdepartmental Bill, or GLIB, feed transactions). If not, and you mark more than 5% of your monthly transactions as invalid, you will have to perform a full review during finalization.

NOTE: Prior to the January 2013 fiscal period, the statistical sampling dollar threshold was $2500, and the allowable error rate was 3%. The amounts were changed in order to reduce the workload required for General Ledger Review, while allowing departments to focus on transactions with higher dollar amounts.

Supplemental content

General Ledger Review Menu