Reconciliation of Uncashed Checks

Submitted by admin on Tue, 05/04/2021 - 15:37
Policy: 

F/EA reviews uncashed checks monthly in conjunction with the monthly reconciliations. After one year, any checks that have not been cashed are removed from the bank reconciliation uncashed checks list (<<GL Account>>) and recorded in General Ledger account <<Account No,>>. F/EA follows unclaimed property procedures for the state in which employees being paid reside.

 
After performing the reconciliation, a reconciliation statement is prepared by the F/EA Accountant (or assigned staff) verified, reviewed by <<Staff Title>> (or assigned staff) who signs the bank statement, and stored at <<File Path>>. Signed reconciliation sheets are stored for a minimum of 7 years.
 
Procedure: 
  1. On a monthly basis, F/EA Accountant prints ending balance for account <<GL Account Number>> (uncashed checks GL account)
  2. Enter ending balance to reconciliation sheet for applicable account found here: <<File Path>>
  3. Open F/EA Uncashed Checks spreadsheet found here: <<File Path>> 
  4. Open tab for applicable month
  5. Sum uncashed checks for the month
  6. Enter sum of uncashed checks for month on reconciliation sheet
  7. Ensure the sum of uncashed checks amount matches the ending balance
    • Any discrepancies should be researched and corrected
    • Applicable adjusting entries should be posted to account

  8.  F/EA Accountant signs and dates reconciliation sheet

  9.  F/EA Accountant passes reconciliation sheet and supporting documents to <<Staff Title>>

 10. <<Staff Title>> verifies completeness and mathematical accuracy

 11. <<Staff Title>> signs and dates reconciliation sheet

 12. Signed reconciliation sheet is scanned and saved here for at least seven years: <<File Path>>

Internal Controls: 

The internal controls used by F/EA to monitor this process establish responsibility, segregate duties, document procedures and ensure independent internal verification.

 The methods of internal control utilized by F/EA in the Reconciliation of Uncashed Checks are:
  1. Each of the supporting documents are reviewed for mathematical accuracy by each verifier
  2. Each reconciliation document is prenumbered
  3. Each party initials and dates each reconciliation document displaying confirmation of their review
  4. All control documents are password protected and access is restricted to F/EA Assigned staff with responsibility for account reconciliations.