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Reconciliation of Service Claim Accounts Receivable

Policy: 

F/EA reconciles the accounts receivable service claims account <<GL Account Number>> monthly. Reconciliation of this account is completed by the 10th of the month following the month for which the reconciliation is performed. 

The complete reconciliation process is the result of 6 segregated processes. A single individual does not control the entire process.
 
  1. Enter Weekly Billing to YTD Accounts Receivable, performed weekly
  2. Post Accounts Receivable to General Ledger, performed weekly
  3. Post Accruals to General Ledger, performed monthly
  4. Reconciliation of Program Payments to Billing Claims, performed weekly (or when payment is received)
  5. Post Payments to General Ledger, performed monthly
  6. Reconcile Accounts Receivable to General Ledger, performed monthly
  • Results should be escalated to Controller or CFO for stale items
These reconciliations are performed to ensure that the F/EA is appropriately submitting service claims to the participant and tracking payments and receivables. 
 
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 per File Retention Policy.
Procedure: 

Reconcile Accounts Receivable to General Ledger

Performed Monthly

Insert F/EA specific process here.

Internal Controls: 

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

 
  1. <<Staff Title>> reconciles supporting documents to ensure billing is submitted appropriately and payments are applied to claims appropriately.
  2. <<Staff Title>> creates journal entry templates.
    • Each journal entry template is used as a control document.
    • Each reconciliation document is prenumbered.
    • <<Staff Title>> signs and dates verifying accuracy.
  3. F/EA Accountant reviews supporting documents and journal entry template for completeness and mathematical accuracy.
    • F/EA Accountant signs and dates journal entry template.
  4. <<Staff Title>> reviews supporting documents and journal entry template for completeness and mathematical accuracy.
    • <<Staff Title>> signs and dates journal entry template.
  5. <<Staff Title>> posts journal entries.
  6. <<Staff Title>> reconciles General Ledger to appropriate supporting documents at each month.
  7. <<Staff Title>> produces reconciliation documents, verifies, signs and dates.
  8. <<Staff Title>> reviews, verifies, signs and dates reconciliation documents
  9. CFO or Controller reviews uncollectible items after <<Staff Title>> prepares and <<Staff Title>> verifies for accuracy.
  10. All control documents are password protected and access is restricted to F/EA Assigned staff with responsibility for account reconciliations.