Account Reconciliation
February 2008
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UT System Administration
Policy – UTS 142.1
• 3.2 Certifications by Account Owners
(Subcertifications). Each Account Owner should
provide a subcertification annually to the Financial
Reporting Officer. Each institution’s Financial
Reporting Officer should decide at what level the
subcertification is required (e.g. Dean, department
head, etc.). The minimum requirements of the
subcertification letter are included in Appendix 2.
• http://www.utsystem.edu/policy/policies/uts142_1.pdf
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Highlights of New Certification
Form required by UT System
• Acknowledgement of responsibility
• Certification of reconciliation and that all
transactions were appropriate
• Certification that errors were adjusted
• Certification of segregation of duties
– Enter & Approve transactions; Receive cash & reconcile
February 2008
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Highlights of New Certification
Form required by UT System
(cont)
• Certification of sound internal controls
• Certification that no misstatements or
omissions are evident on your SOA
• Fraud Certification
• Certification of compliance with Code of
Ethics related to award of contracts
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Need for reconciliations and
segregation of duties?
• Funds availability
• Exposes lack of
internal controls
• Risk management
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Compliance Quality Assurance
Review (QAR)
• Report of responses sent to Office of
Compliance and Risk Management
• Compliance may use this list to
formulate their future QAR visits to
departments
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7
Small Budgets (< $100,000)
• Compare beginning balance
• Verify each charge, deposit,
transfer and encumbrance
showing on SOA
• http://www.utsa.edu/accounting/Account
ing/ReconcilingSmall0309.htm
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ACCOUNT REVIEW PROCEDURES
Step #
1.
2.
3.
4.
5.
6.
7.
8.
February 2008
Description
Completed
(√/ Date)
Set-up a Pending File where you will file paper copies of your transaction documentation
for the month (PO’s, Petty Cash Receipts, Work Requests, Deposit Slips etc.).
Obtain the current month’s Statement of Account (the Accounting Department mails the
Statements of Account to departments between the 15th and the 20th of each month- if you
are not receiving your Statement of Account call Accounting at X4212).
Compare the beginning balance on the current month’s Statement of Account to the
ending balance on the previous month’s Statement of Account to ensure that they match.
Match each transaction listed in the Statement of Account to a document in your Pending
File. If the transaction amount on the Statement of Account is the same as the amount on
your Pending File document, put a check mark next to the item on your Statement of
Account and on your transaction document to note that it cleared. Once your paper
transaction documents are cleared they can be filed in your permanent files.
You may not have paper documentation in your Pending File for all of the transactions on
the Statement of Account, e.g., Interdepartmental Transfers (IDTs).

Mail Services- review the charges on your Statement of Account and determine
whether they are reasonable given the volume of mail your department usually
processes.

Facilities Services-match to work order in your Pending File

Telephone Services- match to phone bill in your Pending File
If you believe the IDT charges are accurate you can check them off on the Statement of
Account and consider them cleared.
After completing this process, you may have identified items in this month’s Statement of
Account that are incorrect, e.g., charges that your department did not make, charges for
the wrong amount, deposits to the wrong account. Generally, the Office of Accounting can
advise you regarding corrections (e-mail accounting.ofc@utsa.edu). Purchase Order
corrections are handled by the Purchasing Department. Always verify that errors from
previous statements have been corrected. If the correction(s) have not been made, followup with an e-mail to the individual who was handling the correction.
Place a copy of any correspondence regarding correction(s), in the department’s Pending
File as a reminder for next month’s Account Review.
The individual who performs the Account Review should sign and date the Statement of
Account. The Department Head should review, sign, and date the Statement of Account to
indicate that he/she is aware of errors that were identified and that transactions are
appropriate.
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M&O
Account No.
Account No.
Account No.
19-7026-0050
2007-2008 Budget
4,000.00
Transfers &
1,500.00
Balance Forward
0.00
Total
$5,500.00
$0.00
$0.00
$0.00
$0.00
Expenditures (per Accounting)
September
96.63
October
November
December
January
February
March
April
May
June
July
August
Total (per Accounting)
$96.63
Reconciling Items--Expenditures:
Charged to Wrong Account
Credit for Airline Ticket
Data Input error in Accounting
Total
$
-
$
-
$
-
Total Expenditures (per Dept.)
$
96.63
$
-
$
-
Encumbrances (per Accounting) '
$
-
$
-
$
-
$
-
$
-
$
-
Total Encumbrances (per Dept.)
$
-
$
-
$
-
Total Expenditures/Encumbrances
$
96.63
$
-
$
-
Reconciled Available Balance
$
5,403.37
$
-
$
-
Reconciling Items--Encumbrances:
P.O. issued Computers/Server
Travel Reimbursement:
Total
February 2008
Prepared by:
Date:
9/14/2007
Reviewed by:
Date:
9/14/2007
10
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Large Budgets (> $100,000)
• More extensive review required
• Must track pending expenses,
transfers, encumbrances & revenue
• http://www.utsa.edu/accounting/Accou
nting/reconcilinglargeaccts0309.htm
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ACCOUNT RECONCILIATION PROCEDURES
Step #
1.
2.
3.
4.
5.
Description
Completed (√/ Date)
If you are not using an electronic system, you will need to set-up a Pending File where paper copies of your transaction
documentation for the month will be filed temporarily (PO’s, Petty Cash Receipts, Work Requests, Deposit Slips etc.). If
you are using an electronic system, e.g., Excel/Quicken/QuickBooks, throughout the month enter the information from
your paper transaction documents into the system and mark each paper document with a check mark to note that it has
been entered into the system. The paper document can then be filed in your department’s permanent files.
Obtain the current month’s Statement of Account (the Accounting Department mails the Statements of Account to
th
th
departments between the 15 and the 20 of each month- if you are not getting your Statement of Account call
Accounting at X4212).
Compare the beginning balance on the current month’s Statement of Account to the ending balance on the previous
month’s Statement of Account to ensure that they match.
Match each transaction listed on the Statement of Account to a document in your Pending File or an entry in your
electronic system. If the transaction amount on the Statement of Account is the same as the amount on your Pending
File document or electronic entry, put a check mark next to the item on your Statement of Account and on your
transaction document/electronic entry to note that it reconciled. Once your paper transaction documents are reconciled
they can be filed in your permanent files.
You may not have paper documentation in your Pending File for all of the transactions on the Statement of Account,
e.g. Interdepartmental Transfers (IDTs).

6.
7.
8.
9.
10.
11.
February 2008
Mail Services- review the charges on your Statement of Account and determine whether they are
reasonable given the volume of mail your department usually processes.

Facilities Services-match to work order in your Pending File

Telephone Services- match to phone bill in your Pending File
If you believe the IDT charges are accurate you can check them off on the Statement of Account and consider them
reconciled. If you have an electronic system, you will need to enter these charges into the system (another option
would be to enter estimates of the charges into the system at the time you incur the charges- you can amend the entry
at a later date once you know the accurate charge) and then reconcile them.
Make a list of encumbrances or expenses, e.g., purchase orders, receipts that are in your records (pending file or
electronic system), but are not included in this month’s Statement of Account (step 2 on worksheet)
Make a list of transfers and deposits, e.g., deposit slips that are in your records (pending file or electronic system), but
are not included in this month’s Statement of Account (steps 3 and 4 on worksheet).
After completing this process, you may have identified items in this month’s Statement of Account that are incorrect,
e.g., charges that your department did not make, charges for the wrong amount, deposits to the wrong account.
Generally, the Office of Accounting can advise you regarding corrections (e-mail accounting.ofc@utsa.edu). Purchase
Order corrections are handled by the Purchasing Department. Always verify that errors from previous statements have
been corrected. If the correction(s) have not been made, follow-up with an e-mail to the individual who was handling
the correction. (step 5 on worksheet).
Place a copy of any correspondence regarding correction(s) in the department’s Pending File as a reminder for next
month’s Account Reconciliation. If using an electronic system enter the correction into your system.
The individual who performs the Account Reconciliation should sign and date the Statement of Account. The
Department Head should review, sign, and date the Statement of Account to indicate that he/she is aware of errors that
were identified and that transactions are appropriate.
Optional- prepare a summary document with information regarding all of the accounts under a Department Head. The
summary document may include monthly transaction totals, balances given that transactions are outstanding or
whatever information the department head needs.
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Recon Methods
• Excel spreadsheet
• Quicken
• Success stories from FAR members?
February 2008
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