FINANCIAL SERVICES OFFICE

PROCEDURES

PROCEDURE: Bank Statement Reconciliation

SUMMARY: The procedure establishes guidelines for the monthly reconciliation of the
statements from the Colleges bank account.
PROCESS:
Reconciling System Deposits to Actual Deposits
1. Download the cash transactions from the Consortium Financial Records System
(CFRS) using :RUN PHCASHEXT. This report will provide all of the cash
transactions entered into the Colleges financial system for the specified month.
2. After logging into CFRS, page down to a blank screen and at the top left hand
corner type :RUN PHCASHEXT and press the transmit (+) key.
3. Enter the beginning year and month desired in yymm format and press the
transmit key. Once the message End of Job appears log out of CFRS.
Now access Excel. From the I: Drive locate the text file CSUM and click open. A
box will appear asking to Open the file now?. Click the OK button.
4. The Text Import Wizard box will appear. Ensure that the radio button for
Delimited is highlighted and click Next.
5. For Step 2, ensure that only the Semicolon box is checked for delimiters. All
others should be blank. Click Next.
6. For Step 3, ensure the radio button for General is highlighted and click on
Finish. You information will appear on the spreadsheet page. Arrange the
information as needed.
7. Sort the file just downloaded by IDNUM. Move the transactions that are not
deposit related to a new notebook page titled Other.
8. Obtain the (Month) Deposits file from the Senior Office Assistant,
Accounting/Payroll. This is a listing of all of the bookstore deposits for the month
broken down by cash and credit cards deposited. Sort this information by
IDNUM.
9. Copy the columns IDNUM and AMT1 from the downloaded spreadsheet and
paste them into the spreadsheet of monthly
10. Using the IDNUM, match the actual deposits to the system deposits.
a. Deposits/journal entries that are prior month reconciling items are to be
posted to the bottom of the spreadsheet. These will need to be
removed from the Reconciling Items section of the bank
reconciliation.

Revised February 2, 2009

b. Insert individual deposit corrections in the row beneath the original

deposit. If a deposit correction number is not easily matched with the
original deposit number, do this step after step c.
c. Enter formulas in the columns for Total Deposit and Variance.
d. Ensure that the total line at the bottom of the spreadsheet includes all
cells in the column. The variance at the bottom of the spreadsheet
should be the sum of all the variance in the Variance column.
e. If there are any variances, provide a copy of the spreadsheet to the
Senior Office Assistant, Accounting/Payroll to research.
f. If the variances cannot be corrected in the current month, list them as
reconciling items above the TOTAL line on the bank reconciliation.
Reconciling Bank Statement Deposits to Actual Deposits
1. Data enter all the cash/check deposits from the actual bank statement for the
Cash Concentration account into the xxxx Bank spreadsheet that is titled
Deposits
a. List any deposit corrections made by the bank.
b. Identify any deposits in transit from the prior month. These will be
listed on the prior months bank reconciliation. List these deposits at
the top and sort the remaining deposits by dollar amount.
c. Sort by deposit amount.
2. From the actual deposits spreadsheet, copy the columns IDNUM, DEPOSIT
DATE, and DEPOSIT CASH/CKS and paste into the Deposits spreadsheet.
a. Sort by deposit amount.
b. Put in a Variance column and enter the formula. If there are
variances make sure all bank corrections have been listed.
c. If there are still variances, have the Senior Office Assistant,
Accounting/Payroll research.
3. Identify any current month deposits in transit and make a notation next to the
actual deposit.
4. At the bottom of the spreadsheet, total the bank and actual columns.
a. Subtract the prior month deposits in transit from the bank side and add
the current month deposits in transit. List the deposits in transit on the
Bank Reconciliation.
Reconciling Credit Card Deposits to Actual Deposits
1. Data enter all the bank card deposits from the actual bank statements for the
Cash Concentration account into the xxxx Bank spreadsheet that is titled
Credit Cards
a. List any deposit corrections made by the bank.
b. Identify any deposits in transit from the prior month. These will be
listed on the prior months bank reconciliation. List these deposits at
the top and sort the remaining deposits by dollar amount.
c. Sort by deposit amount.

Revised February 2, 2009

2. From the actual deposits spreadsheet, copy the columns IDNUM, DEPOSIT
DATE, and DEPOSIT CREDIT CARDS and paste into the Credit Cards
spreadsheet.
a. Sort by deposit amount.
b. Put in a Variance column and enter the formula. If there are
variances make sure all bank corrections have been listed.
c. If there are still variances, have the Senior Office Assistant,
Accounting/Payroll research.
3. Identify any current month deposits in transit and make a notation next to the
actual deposit.
4. At the bottom of the spreadsheet, total the bank and actual columns.
5. Subtract the prior month credit card transactions in transit from the bank side and
add the current month credit card transactions in transit. List the credit card
transactions in transit on the Bank Reconciliation.
Reconciling Other Transactions
1. Locate the Transaction Summary sheet in the xxxxBank file.
2. Enter the cash/check deposit and credit card deposit totals from the previous
spreadsheets.
3. From the Cash Concentration Account bank statement, locate the other deposit
and withdrawal items not previously accounted for and enter them into the
appropriate categories.
a. When all transactions are entered, total the deposit and withdrawal
columns and ensure that they match the amount of deposits and
withdrawals on the statement.
4. Ensure that all of the system transactions on the Other spreadsheet are
captured on the Transaction Summary spreadsheet.
5. The information from the Transaction Summary spreadsheet is entered on the
bank reconciliation form under the bank column.
6. The information from the other spreadsheet from the system is entered on the
bank reconciliation under the general ledger column.
Reconciling Outstanding Checks
1. To reconcile Accounts Payable checks, use the Bank Reconciliation report for
A/P.
a. Ensure that the ending balance from last months report equals the
beginning balance on this months report. If not, the variance will need
to be resolved
b. Make sure that the total voided checks on the BARNETBANK report
equal the total voided checks on the Bank Reconciliation report.
c. Check the Other spreadsheet from the system file to see if there were
any entries done to void accounts payable checks. If so, list these on
the Bank Reconciliation report.
d. Locate the Expense Account bank statement. Ensure that the total
Summarized Debits equals the amount of Checks Cleared on the
Bank Reconciliation report.

Revised February 2, 2009

e. Verify that the new outstanding check amount from the detail portion of
the Bank Reconciliation report equals the amount in the summary
portion. This is the amount that will be listed in the general ledger
column of the Bank Reconciliation Summary.
(1) The calculation for the detail portion is to add the totals for
the current and prior month outstanding checks.
(2) The calculation for the summary portion is to take the
beginning outstanding checks, less prior month voids, plus
current months checks written, less current months checks
cleared.
f. Verify that the total checks written plus the total checks voided equals
the warrant register amount.
2. To reconcile Payroll checks, use the Bank Reconciliation report for Payroll.
a. Ensure that the ending balance from last months report equals the
beginning balance on this months report. If not, the variance will need
to be resolved. If these variances are voided checks not removed,
please notify MIS.
b. Check the Other spreadsheet from the system file to see if there were
any entries done to void accounts payable checks. If so, list these on
the Bank Reconciliation report.
c. Locate the Payroll Account bank statement. Ensure that the total
Summarized Debits equals the amount of Checks Cleared on the
Bank Reconciliation report.
d. Verify that the new outstanding check amount from the detail portion of
the Bank Reconciliation report equals the amount in the summary
portion. This is the amount that will be listed in the general ledger
column of the Bank Reconciliation Summary.
(1) The calculation for the detail portion is to add the totals for the
current and prior month outstanding checks.
(2) The calculation for the summary portion is to take the
beginning outstanding checks, less prior month voids, plus
current months checks written, less current months checks
cleared.
Update the Bank Reconciliation Summary
1. Use the prior month Bank Reconciliation to record the beginning balances on the
bank and general ledger side.
2. Use the summary spreadsheet to update the rest of the bank information down to
the Ending Bank Balance.
3. Enter the deposits in transit and outstanding checks from the previous
calculations in the Bank Statement column.
4. Using the Other spreadsheet to complete the general ledger side of the
summary.

Revised February 2, 2009

Update the Bank Reconciliation Summary(cont.)

5. List any reconciling items, such as deposit corrections.
6. After all items are listed, the Adjusted Cash Balances for Bank and General
Ledger should tie.

Revised February 2, 2009