Presenter:Emilia Tito

Staff AccountantAuditing & Property Records

Revised November16

To have good internal control over the school assets, the

preparer and reviewer are asked to attend the Bank

Reconciliation Class. They are responsible for either

preparing or reviewing, understanding, verifying and signing

the Bank Reconciliation Statement, as well as, the

Principal’s Monthly Financial Report.

The purpose of attending class is to be knowledgeable of

the monthly bank reconciliation and the school’s internal

funds financials in general.

• A bank reconciliation is the process of matching

balances in the financial accounting records (General

Ledger, Trial Balance, Principal’s Monthly) and

transactions (checks, deposits and adjustments) to the

corresponding information on the Bank Statement.

• The goal of this process is to determine the differences

between the two and note on the Bank Reconciliation

Statement.

1. To know the processes used to post interest and service

charges as adjustments monthly.

2. Be familiar with the reports required to prepare the Bank

Reconciliation Statements.

3. Learn the processes used for outstanding checks, cash

back, voided checks and NSF checks.

4. As an administrator know what questions to ask and what

to look for.

5. Know what to look for when not in balance.

• Principal’s Monthly Financial Report• Trial Balance• Bank Statement• Bank Reconciliation Statement with adding machine tape• General Ledger - cash accounts only

See Chapter 10 of the Manual of Internal Fund Accounting book for more information.

Reviewer- QUESTIONS to Ask

• Are the prior month’s “other adjustments” getting fixed

with either an adjustment in MANATEE or a bank

correction or do they need to be carried over?

• Are service charges being posted to the GL as an

adjustment each month or carried for several months?

• What are the “other adjustments” on the bank

reconciliation there for? Need a detailed explanation.

• Are deposits in transit on the next month’s bank

statement or is it being carried over month to month?

+++++++++++++++++++++++++++++++++++++++++++++

• Principals must contact the Director of Auditing if youwould like to change banks (needs to be on the QualifiedPublic Depository list).

• If a Principal or an administrator is moving to anotherschool or department, prior to leaving write a letter to theDirector of Auditing on letterhead with the name of yourcurrent school; check signers of your current school (old);ask to delete your name from the list of school signersand add the new principal or administrator (only if name isavailable); list your account number and sign with youroriginal signature.

• NEVER “pre-sign” checks• Checks should be stored in the safe when not in use.• Voided checks should be put with the disbursement

packets in check number order.• Unused bank bags and voided bank bags should be in a

locked cabinet.• A school can have only one checking account.• All BOA users must have on line access to statements and

transaction information on Cash Pro. It may bechallenging to pick up your certificate or reset yourpassword, but we will work with you. Please contact EmiliaTito in Auditing if you need access.

• Your check stock should state the following:• Void after 6 months• Two signatures required (cannot be two support

personnel).

• If you need any checks, deposit slips or a deposit stampsplease contact:

• Harland Clarke 877-202-8972 ordedicatedservice101@bankofamerica.com

• Every school should be getting a faxed confirmation withevery deposit made to your bank.

• Can get more MANIFESTS from your courier.• Can get more bank bags or money straps from Maureen

Wilson in Auditing.• If you have any problems with your bank statement, a deposit

or a check that has cleared:• Research deposit image on CashPro first.• If you get no results then e-mail:

dedicatedservice101@bankofamerica.com• Lastly phone the bank.

- See additional information in Chapter 3 Manual of Internal Fund Accounting book.

• Make sure when collecting checks you have a name,address, phone number and Florida driver’s license orstate identification number.

OR………………………• Full name, address, telephone number, business

telephone number, place of employment, gender, date ofbirth and height.

• We know it may be impossible to get all of this informationon the check(s), but at least, get the name of the studenton the information line.

• Also discuss with principal cash only for fundraisers, bookfairs and field trips.

See Chapter 832 Florida Statutes

• Checks should be cleared in MANATEE each month using

the bank statement- this should be part of the monthly

Bank Reconciliation process.

• Go in MANATEE: Disbursement > Bank Reconciliation >

Edit/clear checks

• Never change the amount of the check in MANATEE

during the clearing check process, may have to fix with an

adjustment afterwards.

• Not clearing your checks is an audit item and can cause

problems when you back up daily and monthly.

• If a check has not cleared the bank in 2 – 3 months, contact

the company or individual to whom the check was written to

and inquire if the check has been lost or misplaced.

• If the check is under $10.00 (and over 360 days old) the

principal may approve the check to be voided in the

MANATEE system.

• If the check is $10.00 or more, a disbursement packet needs

to be completed, sent to the Cash Management Department

and the check needs to be voided.

• Stale dated checks not processed in a timely manner is an

audit item.

• Do not alter or hand write on any check(s)

• Write VOID across the spoiled check.

• Physically cut out the signature area of the check

• Keep voided checks with disbursement packets in

check number order.• On the General Ledger, a voided check has

brackets around it on the disbursement side.

• First start a “No check list” for repeat offenders.

• Do not collect another check but get cash or a money orderfrom the individual who bounced the check.

• Use the Deposits not Receipted Log # 3-3191.• Handwrite the collected NSF amount on the Cash Receipt

Register report below the total when preparing your deposit.• On the Bank Reconciliation Statement (left side) where it

says name of maker - list last name of the check owner andthe amount.

• Not following up on your NSF checks in a timely manner isan audit item.

• Collecting service charges for the bounced check is totally upto the Principal...need to discuss.

• Statute of limitations- it is imperative that all worthless check complaints be received by State Attorney’s Office no later than six months prior to the statute of limitations expiration.

• Three forms needed by State Attorney’s Office: Worthless Check Referral Sheet Worthless Check Affidavit Worthless Check Witness Form

• If a check is less than $150 - no more than two years from the date of the check.

• If the check is greater than or equal to $150 – no more than three years from the date of the check.

• Make sure you send checks for $50.00 or more to the State Attorney’s Office for collection.

Refer to Chapter 3 and Chapter 13 Manual of Internal Fund

Process an adjustment to record the NSF check as an accounts receivable in the $ 1130.00 account.

Procedures for un-collected returned checks state that if

the check has not been redeemed and re deposited by

the end of the following month an adjustment must be

made to reclassify as an accounts receivable prior to

preparing the bank reconciliation.

• Make sure you use the proper codes…3431-interest,0720-service charges , 0950 transfers, etc.

• Make sure you post the service charges and interest tothe correct account: 7-0350.05.

• May combine service charges and interest into oneadjustment - the adjustment will have at least four lines ofcoding.

• On your Bank Reconciliation Statement make sure to fillout a detailed explanation as to why there is a reconcilingitem (adjustment).

• Post the service charges & interest (if you have anyeach month) or else it’s an audit item if you carry it onemonth to another.

• Adjustments should have their own folder - signed, innumerical order and with backup attached.

• Adjustments should be signed by both the administratorand the bookkeeper with supporting documentationattached to it.

• Post the adjustment(s) for cash back within the samemonth of the transaction. This will make balancingeasier.

See Chapter 13 of the Manual of InternalFund Accounting

When an individual takes a check to a local vendor for a

purchase, it is not uncommon for a check to clear the

bank for a lesser amount or for the individual to receive

cash back on a check. An adjustment must be made in

MANATEE.

A check should never clear for MORE than it is written

for. Instruct the individual to spend equal to or less than

the check amount.

There are times when a check goes to the vendor and there is cash back.

One of several scenarios - Sponsor takes a school check in the amount of $100 to

Walmart (the amount in MANATEE), and the vendor processes the check electronically

through their register for the actual amount of the purchase, which is $95.00 (the

amount that will be on the bank statement). There is no cash back. The check was

written for $100 but clears the bank for $95.00. The teacher submits the signed receipt

to the bookkeeper. How do I get the money back into the general ledger accounts?

To correct the $5.00 to the Manatee records, see adjustment below:Acct Sub Acct Account Name

(increase) (decrease)

$1111.xx N/A Checking (5.00)

6-xxxx.xx xxxx Adopt-a-Class (5.00)

The -$5.00 adjustment is placed under the disbursements column to show it was a

disbursement but… a credit (use of brackets) of $5.00 is being returned from that

disbursement. You can also look at it as lowering the amount of the check by

decreasing it with minus signs. Should another scenario occur with the physical cash

back, make sure to include the $5.00 on the Deposits not Receipted Log #3-3191

and also process the adjustment as it is in the above example.

• Print the General Ledger for only the cash accounts.• Make sure the service charges and interest were posted

properly. You will need your previous month’s bank statementand previous month’s bank reconciliation and a currentmonth’s general ledger with the adjustments highlighted.

• Were the other adjustments (reconciling items) on theprevious month’s Bank Reconciliation either posted toMANATEE or adjusted by the bank? If not, they will need tobe brought over to the current month’s reconciliation.

• Use the General Ledger to obtain:• Deposits not credited amount.• To identify and compare all deposit amounts.• To identify disbursement amounts to the bank statement.• To identify any adjustments made.

• Make sure to run the Trial Balance and Principals Monthly FinancialReports on the same date/time and make sure that the reports all havethe same totals.

• Transpositions - divisible by 9• Make sure you are carrying over outstanding checks from the previous

month if they have not cleared the bank.• The bank reconciliation reviewer (Principal or another administrator

assigned) needs to double check each figure on the bank reconciliationstatement to the supporting documentation reports.

• Send required reports (Trial Balance and Principal’s Monthly FinancialReport) on time every month with a copy of the bank statement toAuditing by the 12th of the month. If the Bank ReconciliationStatement is not completed or not balanced attach a note statingthat the Bank Reconciliation Statement will be sent in later whenbalanced.

• Information available on our website:

• Clearing checks, check off list of what to send in monthly,

NSF packets, adjustments for service charges/interest,

transaction codes or outstanding check packets.

• Remember if you have any trouble balancing your Bank

Reconciliation first ask your reviewer to double check your

figures, then balance using the General Ledger and lastly

read the instructions carefully on the back of the Bank

Reconciliation Statement before calling

the Auditing department.