Business Procedures Manual

Essential business procedural components for University System of Georgia institutions.

1.9 Reconciliations

(Last Modified on February 25, 2016)

Data is generally provided to an institution’s financial records from multiple external sources, which may include Human Resources/Payroll, Student Information, and Cash Receipting (if not part of the financial application) systems. The USG requires periodic reconciliation of these external systems to the balances maintained in the financial records, as noted in the following sections.

1.9.1 Human Resources/Payroll Systems

(Last Modified on February 25, 2016)

A reconciliation should be performed between the various balances maintained in the Human Resources/Payroll System and the cumulative balances maintained in the financial records. This should include all salaries and payroll deductions. The reconciliation should be done at least quarterly. Documentation confirming these reconciliations should be maintained in the institution’s files for at least three (3) years and include all relevant supporting documentation, including prepared by, prepared date, reviewed by, and reviewed date.

Care should be exercised to insure that balances in payroll deduction agency accounts in financials do not become debit balances by disbursing more than is delivered from the deductions transmitted from the payroll system. Prior to fiscal year end, analysis with appropriate action must be accomplished to prevent debit balances from occurring in agency accounts on the Annual Financial Reports.


1.9.2 Student Information Systems

(Last Modified on February 25, 2016)

A reconciliation should be performed between the various balances maintained in the Student Information System (generally Banner) and the cumulative balances maintained in the financial records. This should include all accounts receivable balances, all scholarship disbursements, and all financial clearing accounts. Banner feeds should be reconciled daily, but are required no less than weekly. The TGRRECON report (Banner report) must be reconciled at least monthly, as it provides the detailed activity of accounts receivable supporting the general ledger. Documentation confirming these reconciliations should be maintained in the institution’s files for at least three (3) years and include all relevant supporting documentation, including prepared by, prepared date, reviewed by, and reviewed date.


1.9.3 Other Systems

(Last Modified on February 25, 2016)

A reconciliation should be performed between the various balances maintained in any other system and the cumulative balances maintained in the financial records. The reconciliation should be performed at least quarterly. Documentation confirming these reconciliations should be maintained in the institution’s files for at least three (3) years and include all relevant supporting documentation, including prepared by, prepared date, reviewed by, and reviewed date.


1.9.4 Bank Accounts

(Last Modified on February 25, 2016)

A monthly reconciliation must be accomplished between the institution’s financial records and all of the institution’s bank accounts. This reconciliation should be completed within thirty (30) days of receiving the bank statement(s). In all cases, the reconciliation must be completed before the closing of the next accounting month. Each reconciliation must include evidence of the preparer and date prepared. Reconciliation must also be accomplished prior to the final close of the fiscal year. Reconciliations must be reviewed, dated, and approved by a supervisor, and the approval documented on the reconciliation document. Supervisory approval is required within forty-five (45) days of performing the reconciliation.

A review of old outstanding checks must be accomplished during each reconciliation process. Checks that have not cleared within the time limit printed on the face of the check, normally ninety (90) days, should be considered potential “unclaimed property.” See Section 19.2, Unclaimed Property, for additional information and the required reporting of unclaimed property to the Commissioner of the Department of Revenue.

The payee of the outstanding check should be contacted in writing to facilitate delivery of the amount owed. To comply with state law, the write-off of old outstanding checks should not be made to a net asset account for “surplus” for return to the State Treasurer, but must be done via the Unclaimed Property Report so that the State of Georgia has a centralized pool of information about unclaimed property from all sources.


1.9.5 Accounts Payable

(Last Modified on February 25, 2016)

The Accounts Payable sub-ledger (detail) must be periodically reconciled to the corresponding balance(s) in the general ledger. A monthly reconciliation is suggested; a quarterly reconciliation is required. Documentation confirming these reconciliations should be maintained in the institution’s files for at least three (3) years and include all relevant supporting documentation, including prepared by, prepared date, reviewed by, and reviewed date.


1.9.6 Accounts Receivable

(Last Modified on February 25, 2016)

The Accounts Receivable sub-ledger (detail) must be periodically reconciled to the corresponding balance(s) in the General ledger. A monthly reconciliation is suggested; a quarterly reconciliation is required. Documentation confirming these reconciliations should be maintained in the institution’s files for at least three (3) years and include all relevant supporting documentation, including prepared by, prepared date, reviewed by, and reviewed date.


1.9.7 Capital Assets

(Last Modified on February 25, 2016)

The Capital Assets sub-ledger (detail) must be periodically reconciled to the corresponding balance(s) in the general ledger.* In addition, capital outlay expenses must be reconciled to additions to the Capital Asset sub-ledger. This should be done in conjunction with reviewing repairs and maintenance expense accounts for omissions to the Capital Asset sub-ledger.

A monthly reconciliation is suggested; a quarterly reconciliation is required.

Documentation confirming these reconciliations should be maintained in the institution’s files for at least three (3) years and include all relevant supporting documentation, including prepared by, prepared date, reviewed by, and reviewed date.

* Note: Institutions using the GeorgiaFIRST model of the PeopleSoft Financials software should reconcile both the Asset Management module to the Capital Ledger, as well as the Capital Ledger to the Actuals Ledger.


1.9.8 Other Balance Sheet Accounts

(Last Modified on February 25, 2016)

Institutions must periodically reconcile other general ledger balance sheet accounts not previously mentioned in the abovesections to detailed subsidiary listings. Detailed subsidiary listings should include relevant information about individual transactions, such as vendor/customer, transaction date, and amount, which would allow a user to trace the transaction to the underlying good/service provided.

The reconciliation should be done at least quarterly.

Documentation confirming these reconciliations should be maintained in the institution’s files for at least three (3) years and include all relevant supporting documentation, including prepared by, prepared date, reviewed by, and reviewed date.


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