General description
Each month all cash receipts and disbursements transactions booked in the general ledger account <<GL Account Number>> will be compared with the details reported on the bank statement of the program operating account.
Unmatched and mismatched transactions are used to reconcile the book and bank balance.
Data or records required to perform this reconciliation:
- The bank activities for the month including the ending bank balance on the last day of the month.
- The check file for all checks processed from the program operating account
- A copy of the detailed General ledger Account <<GL Account Number>> for the month.
Preparing the Bank Reconciliation
1. Obtain monthly bank statement for program operating account
2. Transactions will have been downloaded from bank into a csv file on a daily basis for the month and saved
3. Sort the daily bank transactions using the <<template>>
4. Identify and obtain transaction totals for
- Automatic transfers to payroll account
- Checks cashed
- Funds transfers (if any) from F/EA corporate account
- Payments from participant
- Interest received
- Any other check deposits
- Bank service charges or fees
5. <<Staff title>> prepares the journal entry to record the transfers to the workers
F/EA Payroll Account and the interest earned.
6. F/EA Accountant posts the entries to the general ledger and prints the Detailed General Ledger Account after entries are posted.
7. Obtain the monthly check file for all checks processed from the participant direction program perating account
8. The check file includes the payments from account workers
F/EA Operating Bank Account (Trust Account) for the month, sorted by check number and check amount.
9. Compare the check file to the general ledger account
10. Create list of outstanding/uncashed checks
Completing the Bank Reconciliation Form
This is the summary form for the Bank Reconciliation
Enter General Ledger Balance as at end of month
Enter Bank Statement Ending Balance
Enter outstanding checks amount
- Any discrepancies on the amount is researched and correctly booked
- If a discrepancy is determined to be a bank error, the bank must be notified
- The error must be recorded on the bank balance side of the reconciliation form
- If an error is found to be F/EA’s, it is recorded on the general ledger balance side of the reconciliation form with an appropriate adjusting entry in the General Ledger as needed
- Any debit or credit memoranda on the bank statement are identified.
- These charges and credits are recorded as adjustments to the general ledger of the bank reconciliation form.
5. The reconciliation form is printed.
- The <<staff title>> reviews the sheet and verifies that all entries and mathematical calculations are correct.
- After verifying, the <<staff title>> signs and dates the reconciliation sheet.
- The <<staff title>> provides the reconciliation sheet, bank statement, check file and daily bank downloads to <<Staff Title>>
- <<Staff Title>> reviews all documents for completeness and mathematical accuracy.
- After verifying, <<Staff Title>> signs and dates the reconciliation sheet.
- <<Staff Title>> stores this reconciliation in applicable file folder.