General Instructions Balance Sheet Reconciliations Page 2
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10A.
Overview
This document outlines the requirements for reconciliation of balance sheet accounts.
Balance sheet accounts will be subject to regular review and reconciliation. Reconciliations
will be required to contain specific details, supporting documentation, analysis and planned
corrective action. For some balance sheet accounts, Department based Reviewers will
review the completed reconciliations monthly. Designated staff in the Financial Reporting
team will be receiving and reviewing all balance sheet reconciliations to ensure that
reconciliation procedures are being applied consistently, and that errors are being corrected
in a timely manner.
1) Purpose:
Effective management of balance sheet account reconciliation activities greatly
increases the University’s ability to proactively identify and resolve issues that could
result in misstatements of its financial records and lead to substantial write-offs. The
University must have a clear understanding of and be able to explain what has been
recorded within its balance sheet accounts. We must be able to state with certainty
that the amounts recorded have been reviewed and are in fact legitimate, collectible or
payable amounts.
2) Scope:
All balance sheet accounts (accounts numbered 1XXXX, 2XXXX, and 3XXXX) are subject
to these requirements for review and reconciliation. Accounts that are generally used in
day to day operations (accounts numbered 1XXXX and 2XXXX) are subject to monthly
reconciliation, and those accounts that are generally used for limited use and purpose
(accounts numbered 3XXXX) will remain subject to annual reconciliation, but must be
reviewed monthly for erroneous charges.
3) Balance Sheet Account Reconciliation Role Definitions:
Balance Sheet Account Reconciliation Preparers are required to:
♦ perform balance sheet reconciliations as the assigned “Preparer” on the
Account Reconciliation List 2013 for accounts which have a balance at period
end,
♦ obtain the necessary detailed transactions for the account, complete and submit
the reconciliation by the scheduled due date; investigate and correct reconciling
items to ensure that the balance sheet account contains only legitimate,
collectible or payable amounts, and
♦ detect all errors or omissions when reconciling, and that these are corrected
(either in the sub-system or by manual journal entry, as appropriate) in a timely
manner. Generally, correction is expected to occur during the month that errors
are detected, i.e. in the month when the reconciliation is completed.
♦ Review the account transactions monthly for those accounts that are only
reconciled annually, and take corrective action in a timely manner where errors
are detected.
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