Reconciliation Checklist and Cheat Sheet
Ledger Reconciliation in Summary:
 What is it? – Comparison of a general ledger trial balance with another source and documenting differences as
reconciling items.
 Internal Records – Subledgers
 External Sources – Bank statements, invoices
 Reconciling Items – Timing differences, errors
 When do we do it? – Control activity to be performed at the end of each month.
 Why do we do it? – Timely, accurate account reconciliations are a critical departmental internal control practice.
 Must have a process in place to detect errors and omissions
 Material misstatements or weaknesses if undetected in control process
 Audit Findings – Lack of timely reconciliations and missing evidence of or inadequate review and sign-off
 How do we do it? – Gather relevant internal and external reports, data, and documents; prepare a summary
reconciliation document identifying summary totals, tick mark verified items; document reconciling items; sign, date,
and obtain review and sign-off. Transaction verification items include salaries, expenses, encumbrances, amount,
account classification (FAU), description of expense, and accounting period.
Specific Steps
Get Data:
 Information from previous month reconciliation
 Beginning balance
 Reconciling items
 General Ledger Information
 Fund Summary
 Detail Ledger Information
 Payroll Information
 Distribution of Payroll Expense (DOPE)
 Internal Source Documents (If necessary)
 Offer Letters
 Approval Documents
 Accounts Payable Information
 Invoices
 Departmental Order Information
 Encumbrance Information – Open Commitment Subsidiary Ledger
 H&I Invoice Status Report – Items that are on Hold or Incomplete
Review Data:
 Review each transaction (D.O. and Invoice) and compare to detail G/L
 Tick mark as you verify items
 Use a different symbol for items requiring further review and follow-up
 Attach backup detail
 Payroll Steps - Reference three resources
 Compare grosses between detail and DOPE
 Reconcile pay rates and types to DOPE
 For positive pay employees, verify hours charged
 For exception pay employees, verify vacation hours reported
 Identify variances/errors (employees in wrong accounts, ghost employees
 Verify that previous month reconciling items cleared, or not
 Document reconciling items (timing differences, errors, etc.)
 Request updates/corrections
 Sign and date summary sheet
 Obtain review and sign off from supervisor or peer reviewer
 File and maintain documentation for audit purposes
Certify Reconciliation:
 Certify reconciliation on institutional reconciliation/review spreadsheet
Completed