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Business Procedures Manual

1.7 Reconciliations

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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 system) systems. The University System requires periodic reconciliation of these external systems to the balances maintained in the financial records, as noted in the following sections.

1.7.1 Human Resources/Payroll Systems

A reconciliation should be done 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.

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.

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1.7.2 Student Information Systems

A reconciliation should be done between the various balances maintained in the Student Information System and the cumulative balances maintained in the financial records. This should include all accounts receivable balances, all scholarship disbursements, and all financial clearing accounts. Reconciliations should be done weekly, but are required no less than monthly. Documentation confirming these reconciliations should be maintained in the institution’s files for at least three (3) years.

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1.7.3 Other Systems

A reconciliation should be done between the various balances maintained in any other system and the cumulative balances maintained in the financial records. 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.

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1.7.4 Bank Accounts

A monthly reconciliation must be accomplished between the institution’s financial records and all of the institution’s bank accounts. This reconciliation should be done within fifteen (15) days of receiving the bank statement(s). In all cases, the reconciliation must be completed before the closing of the next accounting month. Reconciliation must also be accomplished prior to the final close of the fiscal year. Reconciliations must be reviewed, dated, and approved by a supervisor with the approval being documented on the reconciliation document. Supervisory approval is required within forty-five (45) days of accomplishing 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.

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1.7.5 Accounts Payable

The Accounts Payable subledger (detail) must be periodically reconciled to the corresponding balance(s) in the General ledger. A monthly reconciliation is suggested, with a quarterly reconciliation being required. Documentation confirming these reconciliations should be maintained in the institution’s files for at least three (3) years.

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1.7.6 Accounts Receivable

The Accounts Receivable subledger (detail) must be periodically reconciled to the corresponding balance(s) in the General ledger. A monthly reconciliation is suggested, with a quarterly reconciliation being required. Documentation confirming these reconciliations should be maintained in the institution’s files for at least three (3) years.

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1.7.7 Capital Assets

The Capital Assets subledger (detail) must be periodically reconciled to the corresponding balance(s) in the General ledger.* A monthly reconciliation is suggested, with a quarterly reconciliation being required. Documentation confirming these reconciliations should be maintained in the institution’s files for at least three (3) years.

* 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.

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