Account Reconciliation Policies

Account Reconciliation PolicyContact the Account Reconciliation Administrator

Information on College Account Reconciliation policies and procedures is provided on this page. 

Account Reconciliation Purpose

The purpose of an account reconciliation reconciliation is to confirm that the account balance is accurate, valid, and complete. By completing reconciliations for all balance sheet accounts on a regular basis assurance is obtained that College financial information is reliable and informative. Reconciliations are a critical part of the College’s financial controls framework.

Accounting principles

Completeness

Everything that should have been recorded in the account has actually been recorded.

Accuracy

The amounts relating to recorded transactions in the account been recorded appropriately.

Validity

The recorded transactions represent the events that actually occurred and have been executed in accordance with College's authorisation procedures.

Reconciliation process

Reconciliation Frequency

Reconciliations are performed as often as is required to provide assurance that the account balance is complete, accurate, and valid. The College predominately performs reconciliations quarterly with higher risk accounts reconciled more frequently. For example bank accounts and key subledger accounts such as Accounts Payable and Accounts Receivable are often reconciled daily.

Reconciliation Process

Each reconciliation is assigned a designated approver and preparer. The approver and preparer have distinct roles explained below. The approver and preparer activities may both be performed by a single individual or by a team. Segregation of duties requires that an individual cannot be both the preparer and the approver of a reconciliation. The designated approver is accountable for ensuring that the individual or team members appropriately perform the preparation and approval of the reconciliation to the required standard.

The preparer will complete each of their reconciliations in line with the College reconciliations policies by the required due date.

The preparer must ensure that:

  • The account balance is complete and that all transactions that should have been recorded are;
  • The account balance is accurate and valid;
  • Errors are identified and the required corrective action either taken or recorded as an adjustment to be made;
  • The account balance has been adequately explained with relevant supporting document attached and clear explanatory comments added.

Once the reconciliation is prepared the preparer will submit it to the approver for approval. When submitting the reconciliation the preparar is confirming that they have prepared the reconciliation in accordance 

The approver will review the submitted reconciliations and confirm that the reconciliations have been completed by the preparer in accordance with College reconciliation policies.

The approver must ensure that:

  • The account balance is complete, accurate, and valid;
  • The account balance is explained and adequetly documented;
  • Corrective actions have been identified and performed.

Reconciliation roles

Preparer

Responsible for preparing the account reconciliation and ensuring the account balance is Complete, Accurate and Valid. This includes creating and submitting an individual reconciliation on the standard template or a group reconciliation for a number of related account codes. The preparer should have sufficient knowledge and oversight over the account to prepare the reconciliation.

The Preparer responsibilities include:

  • Understand and apply the Account Reconciliation policy;
  • Ensure account reconciliations are prepared within the required timeframes.
  • Ensure each account reconciliation is prepared using the appropriate template;
  • Ensure all reconciling items are identified and correctly classified with appropriate supporting commentary and documentation attached (including award letters);
  • Ensure all adjusting items are cleared in a timely manner by processing journals or liaising with other College staff where corrections are required outside of the general ledger (for example in Accounts Payable or Accounts Receivable).
  • Escalate issues to the Approver or other responsible individual where appropriate.

Approver

Accountable for the Completeness, Accuracy, and Validity of the account. The Approver must ensure that the Preparer completes the reconciliation appropriately.

The Approver responsibilities include:

  • Understand and apply the Account Reconciliation policy;
  • Ensure account reconciliations are prepared by staff with adequate knowledge and expertise;
  • Ensure account reconciliations are approved within the required timeframes;
  • Ensure adjusting items are cleared in a timely manner;
  • Ensure the College Financial Accounting policy is adhered to;
  • Escalate issues to the Head of Financial Accounting where necessary.