PAP.10.10.040 Bank Reconciliations

The following will apply to bank reconciliations:

(a) Bank statements must be picked up at the bank by an authorized employee, received via US mail, or printed off from the online banking website.

(b) Reconciled deposits recorded on the bank statement to the cash receipts must be recorded in the cash receipts journal. Any deposit-in-transit from the prior month's reconciliation to the bank statement must be traced and the date these deposits were credited to the bank must be indicated.

(c) Any deposits not clearing the bank statement will represent deposits-in-transit on the current month's reconciliation. Deposits which have not cleared the bank within a week of the date deposited should be brought to the attention of the Chief Financial Officer.

(d) The prior month's reconciliation must be matched to the cancelled checks against those listed as outstanding. Any checks still outstanding should be listed on the current month's outstanding check list.

(e) Each cancelled check must be compared with the entry in the cash disbursements journal and place a check mark by the entry. Those entries not checked off will make up the current month's outstanding check list. Checks outstanding for a period of more than sixty (60) days should be brought to the attention of the Chief Financial Officer.

(f) Any other transaction appearing on the bank statement which will be recorded on the books by journal entry must be noted, including:

(1) Returned checks;

(2) Bank service charge;

(3) Wire transfer of funds; and

(4) Stop payment checks.

(g) The monthly bank statement must be reconciled to the balance shown in the general ledger account for cash on deposit. Since the balance in the general ledger account for cash on deposit controls the accuracy of the books, it is essential that the figure be reconciled with the balances shown by the bank statement.