BANK MONTHLY RECONCILIATION

Objective:

The Director of Finance & Business Support is responsible for reconciling all bank accounts monthly. The reconciliation(s) must specifically account for all differences between the bank-prepared account statement and the Hotel’s accounting records. In addition to ensuring the accuracy of bank and Hotel accounting records, the reconciliation serves as an internal control/audit review of backing transactions.

Procedure :

1.  Personnel Assignment  

The Accounting Department employee preparing the bank account reconciliation shall not:

·Prepare any deposits to bank accounts 

·Serve as custodian to any cash floats

·Have access to any cash floats

·Authorize or approve any cash or cheque disbursements 

·Approve journal entries to any general ledger account which reflects bank account balances

2.  Bank statements  

The bank statement(s) must be delivered to the DoFBS, Assistant DoFBS or the person who prepares the reconciliation.

(1) Preparation of Reconciliations

The DoFBS will use a standardized format for bank account reconciliation. This format will ensure month-to-month consistency. The following reconciling items must be listed individually and dated on the reconciliation or on the attached schedules:

· Deposits in transit 

· Outstanding cheques 

(2) Actions Required  

· Bank cheques, exchange losses, exchange gains and errors should be journalized/ corrected immediately.

· Deposits not clearing the bank and the next bank statement must be immediately reported to the DoFBS, and the bank must be notified.

· All bank disbursements must be recorded in the general ledger prior to issuance.

(3)  Review of Reconciliation  

Bank account reconciliation must be initialed each month by the Director of Finance & Business Support, as evidence of her/him review and acceptance of the status of reconciling items.

(4) Retention of Reconciliation  

·Monthly bank reconciliation must be retained at least 6 years after the end of the current fiscal year or in accordance with local laws and tax regulations (whichever is longer).

3.  Internal Control/Audit  

The following items must be reported to the DoFBS:

1. Delays in bank recording of deposits (that is, delays between deposit slip date and recording date on the bank statement.

2. Bank-corrected errors in deposits

3. Any deposits or cheques appearing on the bank statement which were not recorded on the Hotel’s accounting records.

4. Any irregularities or policy violations in amounts, authorizing  signatures or payee/endorsement  differences noted on cheques returned with the bank statement