Bank Reconciliation

Quick Tips

• Brief Overview 3. Outstanding warrants

• The following are suggested procedures to use • Cash Journal – Print current month and compare
when your bank reconciliation does not balance. line by line with a copy of the bank statement:
1. Make sure that the reconciliation date is the 1. Deposits
same date being used on the bank statement 2. Warrants
(which should be the last day of the month). 3. Bank service charges for fees for deposit slips,
2. Print out the prior month’s bank reconciliation NSF fees, or EFT’s
report and compare it to the current bank 4. Interest postings
statement. Verify that any prior deposits in 5. Adjustments and corrections
transit are posted at the bank; that any prior • System postings – Verify all entries for:
outstanding warrants cleared the bank; and that 1. Interest, if not posting, use as other adjusting
any prior adjustments or corrections were factor (deposits not recorded in the system).
posted in the system or at the bank. 2. Bank fees are charged as charges
3. Print out the current month’s cash journal and • Posting errors – receipts posted in error entered in
make a copy of the bank statement. Do not use the current month.
check stubs or deposit tickets to reconcile. • Investments – Investment accounts setup in the
Only the bank statement and the cash journal system:
will be needed unless a posting error was made 1. Verify if investment interest receipts are
by the clerk or the bank. reinvested or not (Investment Activity report).
4. Make sure that the bank interest has been
posted as an interest receipt in the system Screen Tabs
during the month being reconciled. Verify that • Statement Tab
the interest receipt was reinvested. If not, the
interest is a negative other adjusting factor
(deposits not recorded in the system).
5. Make sure that all fees or withdraws are posted
as charges in the system during the month
being reconciled. If not, carry the amount as a
positive other adjusting factor (charges not
recorded in the system). Fees or withdraws
may include service charges, fees for deposit
services, NSF charges or EFT’s.
6. Make sure that any posting errors not caught
before the month was advanced in the system
are carried as other adjusting factors.
7. Investment accounts should be set up in the
• Bank Reconciliation As Of:
system. If the investment is not setup and/or
1. Enter the Statement Date from the bank
the balances are not correct, the bank
statement.
reconciliation will not balance. Until the issue
• Primary Checking Account Balance:
is corrected use an other adjusting factor
1. Enter the Statement Balance from the bank
(system investment less/greater than bank
statement.
investments).
• Deposit In Transit:
1. The system automatically pulls the ‘Total
• Checklist for Bank Reconciliation
Deposit in Transit’ balance from the DIT tab.
• Reconciliation Date – make sure it is the same date
• Other Adjusting Factors:
used on the bank statement (which should be the
1. The system automatically pulls the ‘Total’
last day of the month).
balance from the OAF tab.
• Prior month - Verify as cleared or posted:
1. Other adjusting factors
2. Deposit in transit
Revised 11/06
 Bank Reconciliation
Quick Tips

• Warrants Tab • Receipt Tab (Optional)

• List all outstanding warrants: Note: The Receipt tab is an optional tab that was
1. When warrants are cleared in the bank added to the software in 2007. This tab is optional
reconciliation the warrant’s line will be because all receipts will appear as cleared;
highlighted in blue. therefore, if you do not want to use this
2. If a warrant is voided prior to the ‘Bank functionality when reconciling your bank account,
Reconciliation As Of’ date the warrant will you can skip this tab and continue posting your
not appear on the list of outstanding bank reconciliation as usual.
warrants. • List all outstanding receipts:
3. If a warrant if voided after the ‘Bank 1. Standard and Primary Checking Account
Reconciliation As Of’ date the warrant will Interest Receipts will automatically be
be marked as ‘voided’ in the cleared check marked as cleared. When Standard and
box field. Primary Checking Account Interest Receipts
• Void a Prior Year Warrant: are cleared, the receipts will be highlighted.
1. Go to Accounting Menu, Accounting A total for Standard and Primary Checking
Transactions, Accounting Utilities, and Funds. Account Interest Receipts that are not cleared
Click on the Record function button and select will appear on the Statement tab as ‘Deposit
Prior Year Warrant Adjustment. The in Transit’, and these receipts will carry
adjustment amount will be positive number. forward to the next bank reconciliation until
2. Once the adjustment has been posted, the they are cleared
warrant will need to be flagged as ‘Void’ on Note: After a Standard and Primary Checking
the Warrants Tab. Account Interest Receipts have been cleared on
the bank reconciliation, the receipts cannot be
voided. Changes will have to be posted as
adjustments or reallocations.
2. Memo Receipts and Investment Interest
Receipts not reinvested will be highlighted in
gray and cannot be unmarked as cleared.
3. Investment Interest Receipts with reinvested
interest will not appear on the list of
outstanding receipts.
• Ticket Number:
1. Receipts which contain the same Deposit
Ticket Number will be group and totaled
together. The Deposit Ticket Number field is
Revised 11/06
 Bank Reconciliation
Quick Tips

optional and it can be utilized when a receipt is 4. Posting error (check under posted, receipt over
recorded. posted) at bank
• Positive Other Adjusting Factors:
• Deposit in Transit Tab 1. Charges not recorded in the system
2. System investments less than Bank
investments
3. Posting error (check over posted, receipt under
posted) at bank

• Reconciliation Tab

• Standard Receipts and Primary Interest Receipts -

Calculated:
1. Total of Standard and Primary Checking
Account Interest receipts unmarked as cleared
from the Receipts tab
• Memo Receipts and Investment Interest Receipts
not reinvested – Input: • System Balance:
1. Used when a Memo or Investment Interest 1. Total Fund Cash Balance for all funds as of the
Receipt not reinvested has been recorded and ‘Bank Reconciliation As Of’ date recorded at
posted, but the receipts (deposits) do not the Statement tab.
appeared on the bank statement • Less Investment Balance:
1. Investment Balance for all funds as of the ‘Bank
• Other Adjusting Factors Reconciliation As Of’ date recorded at the
Statement tab.
• Less Secondary Balance:
1. Secondary Checking Balance for all funds as of
‘Bank Reconciliation As Of’ date record at the
Statement tab.
• System Balance For Primary Account As Of:
1. Total of the System Balance, Less Investment
Balance and Less Secondary Balance.
• Primary Checking Balance As Of:
1. Statement Balance from the bank statement
recorded at the Statement tab
• Deposit in Transit:
1. Total of any receipts unmarked as cleared from
the Receipts tab, and the total of Memo
• Negative Other Adjusting Factors: Receipts and Interest Receipt not reinvested
1. Deposits not recorded in the system recorded at the DIT tab.
2. System investments greater than Bank • Outstanding Checks:
investments 1. Total of any warrants not cleared from the
3. Outstanding warrants not listed in system Warrants tab.
Revised 11/06
 Bank Reconciliation
Quick Tips

• Other Adjusting Factors:

1. Total Other Adjusting Factors from the OAF
tab.
• Calculated Primary Account Balance as Of:
1. Total of the Primary Checking Balance, Deposit
in Transit, Outstanding Checks, and Other
Adjusting Factors
Note: If the balances are not reconciled, please refer
to the Brief Overview at the beginning of this quick
tips for guidance.

Revised 11/06