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
- Enter Reconcile Date
- Click on Reconcile
- 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.