Banking Activities

During our implementation process with you, and on an ongoing basis, we will ask you to provide us with access to view and download bank and credit card transaction history and statements. Your bookkeeper will not have the authority to sign checks or to initiate electronic payments that have not been pre-approved by you or a designated staff member in

Bank account activity is updated daily or weekly in your accounting file, based on our agreement with you, so that you always know your available cash balance. Transactions that appear in your bank or credit card account that the bookkeeper has no knowledge of will be posted, but the bookkeeper will inform you of these transactions and request supporting information from you by providing you with weekly “To Be Coded” and “Backup Needed” reports.

Banking, credit card, and loan accounts are reconciled to the corresponding statements each month,
and the reconciliation reports are posted to your portal.


Cash Flow

The Controller shall monitor the checking account balances and notify the CFO when fund transfers are necessary.  This includes monitoring daily balances and performing weekly/monthly cash requirements forecasting.

Bank Reconciliations

Bank statements are received unopened by the CFO/Vice President.  The receiving party reviews the contents for inconsistent check numbers, signatures, cash balances and payees and endorsements at a minimum.  The official then initials and dates the bottom, right hand corner of the first page of each bank statement reviewed.

The reviewed bank statement(s) are then forwarded to the Controller (an individual without check signing rights) to reconcile the bank accounts using the approved reconciliation form and spreadsheet.

The controller reconciles each account promptly upon receipt of the bank statements.  All accounts are reconciled no later than 7 days after receipt of the monthly bank statements.  Any alterations to this time process are documented by written memo to the President and CFO.

Bank Reconciliation Procedures

A comparison of dates and amounts to the daily deposits as shown on the bank statements and the cash receipts journal and any cash receipt logs

A comparison of inter-organization bank transfers to be certain that both sides of the transactions have been recorded on the books.

An investigation of items rejected by the bank, i.e., returned checks or deposits.

A comparison of wire transfers dates received with dates sent.

A comparison of canceled checks with the disbursement journal including check number, payee and amount

An accounting for the sequence of check runs and hand checks including both from month to month and within a month.

An examination of canceled checks for authorized signatures, irregular endorsements, and alterations.

A review and proper mutilation of void checks.

Investigate and write off checks which have been outstanding for more than six months.

The completed bank reconciliations are reviewed by the CFO/Vice President and initialed and dated.  The authorized bank reconciliations are returned to the controller for preparation of g/l adjustments.

Copies of the completed bank reconciliations are forwarded to the Treasurer for his/her review.

Reconciliations of Other General Ledger Accounts

Each month the Controller and CFO review the ending balance shown on balance sheet accounts such as the cash accounts, accounts receivable, accounts payable and deferred revenue.

The Controller and CFO review the bank reconciliations, schedules of accounts receivable and deferred revenue and the aging of accounts payable to support the balances shown on the balance sheet.

Balance Sheet Account Reconciliations

Cash including petty cash

Prepaid Expenses

Security Deposits

Property and Equipment

Liabilities including A/P, Payroll Taxes, Loans, etc.

Income Statement Reconciliations

By Revenue Type

Contracts in Progress

Payroll and Payroll Tax Reporting