Reconciliation, on a regular basis of bank statements, is imperative for good financial management of a school district. One method for performing a bank statement reconciliation is outlined below.
- 1. Obtain Bank Statement(s) from your financial institution
- 2. To auto-reconcile checks with a file from the bank:
- Go to Transactions/Disbursements and click on Auto-Reconcile
- Enter Reconciliation Date for reconciliation
- Select Auto-Rec Format
- Select Bank Account
- Choose file and click UPLOAD
- 3. To reconcile checks manually:
- Go to Transactions/Disbursements
- Use Grid to filter the status of “Outstanding”
- Click the box next to the checks you want to reconcile
- Click on Reconcile
- A box will then pop up for you to enter a reconciliation date
- If errors, Unreconcile any check by clicking the box for that check and then clicking on the Unreconcile button
- 4. To get list of outstanding checks:
- Generate
the Disbursement Summary Report - Enter a Status of 'Outstanding'
- Leave the Transaction Start Date and Transaction End Date blank to select all checks through the current date.
- Select desired report format options (i.e. PDF or EXCEL-data) and click GENERATE REPORT
- The options selected on this report should show only those checks which are still outstanding, (i.e.-- checks issued, but not yet cleared through the banking institutions).
- Generate
- 5. Generate
a Cash Summary Report
- Select desired report format and click on GENERATE REPORT
6. Add to the fund balance from the Cash Summary Report, the total of the outstanding checks from the outstanding Disbursement Summary Report, (Step #4). Subtract from this total any deposits posted to the system that have not been credited to your account by the banking institution.
This last item would typically be due to a deposit made late in the month that was posted on the computer, but was not posted by the bank on the current bank statement- 7. Compute the total of all bank statements, change funds, petty cash funds, and investments.
- 8. Compare the total from Step #6 with the total from Step #7. If they are identical, the banks statements agree, (i.e.---are reconciled) to the financial statement from the computer system. If this is the case, you are finished with this procedure.
For reconciliation issues, please see the Identifying Reconciliation Errors.