Reconciliation of General Ledger Liability Account for Workers' Compensation

Policy:

<<Insert how Workers' Compensation is priced and paid for here.>>

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:

Reconciliation of Workers’ Compensation Liability to General Ledger

Performed Monthly

<<Insert GL Account Number>>

Obtain General Ledger ending balance for <<GL Account Number>>
<<Insert Staff Title>> print reconciliation sheet for account found here: <<File Path>>
Enter ending balance for account
Enter sum of Workers’ Compensation liability from Payroll Journal Summary
- Ending balance and Payroll Journal Summary should match
- Research and correct any discrepancies
- Make necessary adjustments to general ledger

5. <<Insert Staff Title>> signs and dates reconciliation sheet

6. <Insert Staff Title>> passes reconciliation sheet and supporting documents to <<Staff Title>>

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

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

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 General Ledger Liability Account for Workers’ Compensation are:

Each of the supporting documents are reviewed for mathematical accuracy by each verifier
Each reconciliation document is prenumbered
Each party initials and dates each reconciliation document displaying confirmation of their review
All control documents are password protected and access is restricted to F/EA Assigned staff with responsibility for account reconciliations.